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Pipe Line Magazine Dec 2014

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www.pipelineme.comPipeline MARCH/20154

[EGYPT]

Dana Gas outlines

growth strategy

in EgyptSharjah-based Dana Gas has outlined its growth strategy in Egypt for the medium and long-term as the gas producer looks to take advantage of growth opportunities in the country. A part of the strategy has come about with the firm receiving US$60 million from the Egyptian government in December towards outstanding receivables which allow Dana Gas to fund future investment opportunities and address operational expenses in Egypt. The company is seeking to expand its acreage, operatorship and production in Egypt.

[ALGERIA]

Drilling begins at

Algeria’s Reggane

Nord gas projectDrilling at Algeria’s Reggane Nord gas project has begun and gas production is set for mid-2017, according to one of the consortium partners, RWE Dea. The Reggane Nord project comprises the gas fields of Reggane, Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Tiouliline and Sali in Algeria’s Sahara desert. The first drilling campaign comprises of 26 development wells. The first development well, KL-39, was spudded at the end of January. Further production wells are foreseen in the course of the development of this project. Among the 26 development wells 21 wells are expected to be drilled, completed and put on production until the first gas date. Another five wells are planned to be drilled and added to production afterwards. The production phase of the project is expected to span more than 25 years.

[TUNISIA]

Firms settle

Tunisian permit

disputeAustralia’s ADX Energy has announced that a dispute with London-listed Gulfsands Petroleum over ADX’s remaining interests in onshore Chorbane permit in Tunisia has been settled. Gulfsands is operator of the Chorbane permit which covers an area of 1,940 sq km. According to ADX, “Gulfsands Petroleum has agreed to pay ADX US$1.5 million and ADX has agreed to provide certain additional documentation by the end of February 2015. As a result of the settlement, the proceedings before the English High Court will be discontinued.”

NEWS: Regional

www.pipelineme.com

[IRAQ]

Basrah Gas Co. awards West Qurna compressor rehab work

Basrah Gas Company (BGC) has awarded a contract to rehabilitate its West Qurna compressors stations CS7 and CS8 in West Qurna, southern Iraq. The project awarded to UnaE&C Iraq, an engineering and construction subsidiary of Monaco based energy services company, Unaoil Group, will enable flared associated gas generated from degassing stations DGS7 and DGS8 in West Qurna to be collected, compressed and dehydrated prior to being sent via pipeline to the downstream gas treatment plant at North Rumaila NGL Plant for further processing. UnaE&C’s scope of work includes project management, procurement, fabrication, installation and construction of the related works. Unaoil’s operating centres in Dubai and Basrah will support the project execution at West Qurna.

[KUWAIT]

Kuwait outlines massive $100bn oil & gas budget

Kuwait has laid out plans to invest US$100 billion over the coming five years in its oil industry, the country’s oil minister revealed recently. Although he dismissed concerns over weaker oil prices, in a thinly-veiled reference to slowing Asian demand led by China, Dr Ali Al-Omair acknowledged that lower demand from emerging markets coupled with a supply glut are proving to be ‘major challenges’ for oil producers like Kuwait. He highlighted the importance of Kuwait’s hydrocarbon sector in playing a major role as feedstock in the country’s development and consumer industries such as automobiles, medical equipment, tyres and plastic products. “We consider it a succor to achieve our ambitions and aspirations of the Kuwaiti people locally, regionally and globally,” said Dr Al-Omair.

[UAE]

ADNOC signs $1.6bn in deals to boost Abu Dhabi gas output

ADNOC subsidiaries Abu Dhabi Gas Industries Ltd. (GASCO) and Abu Dhabi Gas Liquefaction Company Ltd (ADGAS), have awarded EPC (engineering, procurement, and construction) contracts for their Integrated Gas Development Expansion (IGD-E) to the value of US$1.6 billion. The Front End Engineering Design (FEED) for the IGD-E Project was completed in April 2014. This first phase of the project which has been earmarked as a priority undertaking by state-owned ADNOC to satisfy the UAE’s growing domestic demand for natural gas, consists of three separate contract packages. The entire first phase of the IGD-E is expected to be completed on a lump sum turnkey basis, ADNOC said in a statement.

[BAHRAIN]

First office outside N. America for Canadian oil service firm

Canadian firm Katch Kan Holdings has opened its first office outside of Canada and the US in Bahrain, the company announced. The new office aims to strengthen the company’s presence in the Middle East region and help customers expand their global business reach. Katch Kan offers a wide range of innovative products to companies in the oil and gas industry as well as drilling contractors to “ensure access to tangible, efficient, safe and proactive solutions to prevent work-related injuries and improve operations productivity while protecting the environment.”

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For information on submissions, please contactthe editorial team at the address above.

As we come to the end of the first quarter

of 2015 the oil and gas sector is still gripped

by oil price volatility but the last two weeks

of February have seen both Brent and US

crude record the largest percentage gains

this year. Brent, as we went to press, was

US$61 which is 30 per cent higher than its

low of $46 in mid January.

The continued fluctuating price could

see OPEC call an emergency meeting in

the six to eight weeks if comments by

the Nigeria’s oil minister and the current

president of the organisation, Diezani

Alison-Madueke, to the press are to be

taken seriously.

February saw British oil giant BP warn

in its annual energy outlook report that weak oil prices are set to be the norm for

several years.

“The current weakness in the oil market, which stems in large part from strong

growth in tight oil production in the US, is likely to take several years to work through,”

the report stated.

We have insight exclusively from IHS’s chief upstream strategist on the possible

drivers behind the oil slump on p22.

Our cover story this month looks at the impact of the oil price on the UAE as I sat

down with one of the major family run companies in Abu Dhabi, Ali & Sons, and spoke

to the influential managing director of the oil and gas business about his strategy for

the year and how the current business environment could lead to possible acquisitions.

The ADNOC Group of Companies were extremely active this month and signed a

number of major deals that we cover in our regional news section. The most significant

deal was Total’s signing of a new 40-year ADCO concession. We speak to Total’s UAE

President (p10) about the importance of the deal for Abu Dhabi and Total.

We have a rare interview (p42) with the chairman of Libya’s NOC who gives an

insight into how the country’s oil industry tries to keep out of the growing fighting

engulfing the country but is getting sucked into the conflict more and more.

We were also lucky to speak to Mexico’s head of exploration and policies at the

Ministry of Energy who gave us a detailed account of the potential opportunities for

investment in the country’s vast offshore fields. We also hear about the impact falling

crude prices are having on Mexico’s energy reform programme.

We have a busy March with the annual Oil Barons Charity Ball taking place once

again at Meydan racecourse on Friday 6th March. We look forward to seeing you there.g y

Julian WalkerEditor

:: INFORMING ENGINEERS. SUPPORTINGPROCUREMENT. SERVING THE ENERGY INDUSTRY ::

Audited by: BPA WorldwideAudited Average MonthlyCirculation: 7,997October - December 2012

For the latest industry news, features and interviews please check out the Pipeline website. Also do subscribe to our twice-weekly e-newsletter. We are also on social media through LinkedInat Pipeline Magazine Group and onTwitter- details below:

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© Copyright 2015. All rights reserved.Reproduction without permission is prohibited.

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Publisher:Nick Ornstien

Sales Director: Scott Woodall

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www.pipelineme.com

ENERGY IN FOCUS

8 Pipeline MARCH/2015

NEWS: Regional

10 www.pipelineme.comPipeline MARCH/2015

French oil giant Total has signed a new40-year onshore concession agreementwith ADNOC granting Total a 10 per centparticipating interest in ADCO onshoreoilfields. We speak exclusively to HatemNuseibeh, Total’s UAE president aboutwhat makes the deal so unique.

Total are the first stakeholder to be

awarded a concession interest by the

Supreme Petroleum Council of Abu Dhabi

with Total receiving the maximum available

10 per cent participating interest, effective

January 2015.

“Total’s entry into the new ADCO

concession is a major milestone in the

history of the Group’s 75-year partnership

with the Emirate of Abu Dhabi, we are

honoured to be the first international oil

company to be chosen by the government

of Abu Dhabi and ADNOC to participate

in this new onshore concession and to be

entrusted with the mission of technical

leader on two major groups of fields,”

outlined Patrick Pouyanné, chief executive

officer of Total.

The Abu Dhabi onshore oil concession,

known as the new ADCO onshore

concession, will be operated by the Abu

Dhabi Company for Onshore Petroleum

Operations Limited (ADCO), a new

operating company in which Total will be a

10 per cent shareholder.

The concession covers the fifteen

principal onshore oilfields of Abu Dhabi and

Total has also been appointed asset leader

for the Bu Hasa and Southeast (Sahil, Asab,

Shah, Qusahwira and Mender fields) fields,

which collectively represent approximately

two-thirds of ADCO’s production.

Nuseibeh said: “Our CEO said it

best when he described this win as

a blockbuster. This deal is extremely

important for Total in Abu Dhabi in particular

but also for Total in general. We really

wanted to be part of the new concessions

and we really wanted to have 10 per cent.

We are very glad that we have these two.

In addition to these we are asset leaders on

both Bu Hasa and Southeast.”

In a press statement, ADNOC said that

Total “presented the best technical and

commercial offers.” Abu Dhabi’s national oil

company noted that additional companies

will be added soon. In 2015, ADCO’s

expected production is around 1.6 million

bpd, with an objective to increase output to

1.8 million bpd.

The concession, Abu Dhabi’s largest and

oldest, covers the Emirate’s fifteen principal

onshore oil fields and represents more than

half of Abu Dhabi’s production. The new

ADCO concession is a historic reallocation

of partnerships between some of the

world’s largest oil companies and state-run

ADNOC following the expiry of the original

concession in 2014.

“The deal is all about a new kind of

cooperation which was not there in the

old concessions. They are expecting more

technology transfer and more involvement

from the IOC in the ADCO concessions.

This does not change anything regarding

ADCO operating the fields. One of the

exciting points about the new concessions

is that it involves the creation of a

technology hub, where Total knowhow and

technology will be available immediately to

ADCO. This is a new way of doing things,”

Hatem added.

The law firm Dentons advised Total on

its successful bid. Andrew Ward, managing

partner, Abu Dhabi at Dentons, commented:

“This is a very significant win for Total. They

have not just been first out of the blocks

but have been appointed as Asset Leader

for a large proportion of the fields within

the concession which is a tribute to the

quality of the management and technological

capability which they have demonstrated.”

He added: “This is a significant milestone

for the emirate’s oil industry. The selection

of partners for the new 40-year concession

represents one of the most important

developments for Abu Dhabi’s upstream

sector for many years.”

Hatem ended: “We really tried in our

offer to show how committed we are to

Abu Dhabi. Our new corporate logo says

‘Total committed to better energy.’ But we

could easily say Total is committed to Abu

Dhabi. We have used our experience on

Total’s ABK to show what we can do in

terms of reservoirs that are in ADCO and

maximising recovery.”

Total signs new 40 year ADCO concession

AL DAL DAL DAL DA ABBABBIABBA YAYA

Abu DhabiJUMAJUMAAYYYLYLALAH

BABBABABBBBSHANNAYEYELLYE

RUMAITHATHAA

ARJAN

SAHIL

ASAB

SHAH QUSAHWIRA

MENDER

OMAN

SAUDI ARABIA

Perrsssiian Gn GGuulff

000 50 km500 km

UWAISA

BU HASA

BIDA ALQERNZAN

New ADCO concession area

Asset leader

The signing of the new concession agreement in Abu Dhabi

A map showing ADCO’s onshore fields within the new concession

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NEWS: Regional

12 www.pipelineme.comPipeline MARCH/2015

NEWS IN BRIEF

ADNOC and Occidental Petroleum (Oxy) have signed a US$500 milliontechnical evaluation agreement for the development of the Hail and Ghasha oil fields which lie offshore Abu Dhabi.

The agreement which allows the Houston

based company to take a 30 per cent stake

in the project, covers 3D seismic surveys,

drilling of appraisal wells and the conducting

of engineering studies necessary for the

fields’ development.

According to the plan the necessary

evaluation studies and the desired goals of

the developmental project is expected to be

realised by 2017, ADNOC said.

The agreement was signed by

Mohammed Butti Al Qubaisi director,

Exploration and Production at ADNOC and

Edward Lowe, president of Occidental Oil

and Gas International.

Saoud Mubarak Al Mehairbi, Manager of

Exploration Division at ADNOC, said: “Under

this agreement, Oxy will provide manpower

support in the form of secondees to ADNOC

for short, mid and long terms to be agreed

between the parties for the development of

ADNOC human capabilities and will organise

a number of training courses to provide

human resources development opportunities

to ADNOC staff focusing on selected areas

such as geology and technical areas.”

In January France’s Total which has been

already been a long-standing partner in

developing the emirate’s oil and gas industry,

was the first foreign company to be awarded

a share in a new 40-year concession for its

largest onshore oil fields. Since its expiry

in January last year, the new onshore

concession has garnered interest from at

least 11 companies of which Oxy is one.

Oxy signs $500m oil exploration deal with ADNOC

Arabtec, the UAE based engineering andconstruction firm has won contracts worth over a quarter of a billion dollarsin Saudi Arabia’s oil and gas sector.

Company subsidiary, Target Engineering

Construction Company won the contracts

from Saudi Aramco worth a combined

US$253 million.

The contracts include seven projects

mostly in the Saudi refining sector which

are earmarked to help “improve and

increase the productive capability of some

oil and gas stations for Saudi Aramco,”

Arabtec said in a statement.

The biggest single project award valued

at $74 million involves Target improving the

liquefied petroleum drainage system at

Saudi Aramco’s largest refinery in Abqaiq.

The second project, valued at$64 million

is geared towards reducing the water

content of liquefied gas produced at the

Shadqam and Al Othmania plants.

In two separate smaller contracts, Target

will also change motors for the liquefied

gas compressors at the gas stations at the

Shaqdam and Al Othmania facilities while

also replacing high-voltage distribution

boards at these stations.

Saudi Aramco’s Yanbu refinery liquefied

gas facilities will be expanded by Target for

$37 million.

Target,will upgrade the electricity loads

in the power distribution network at the

Tanajib oil and gas complex about 200 km

north of Dammam.

$32 million will be involved in the

construction of two buildings for Saudi Aramco

operations and management personnel at the

company’s Ras Tanura terminal.

Arabtec scoops crucial SaudiAramco refining upgrade deals

The contracts total about US$253 million

APICORP aids $200mrefinance of Natl Petroleum ServicesThe Arab Petroleum Investments

Corporation (APICORP), an investment

company focused on the energy sector

in the Arab world, has come to a

US$200 million refinancing arrangement

for Dubai based National Petroleum

Services (NPS). The refinancing, done

through HSBC, Emirates NBD and Al

Hilal Bank, was for a $150 million fixed

rate Islamic facility and a working capital

facility of $50 million. NPS will use the

refinancing to restructure its existing

debt and working capital facilities, in line

with its five-year growth strategy. The

arrangement is said to offer the company

better terms and would “positively

impact the company’s bottom line”.

NPCC receives $600m loanto build offshore assets, modernise facilitiesNational Petroleum Construction

Company (NPCC) has secured a

new syndicated finance facility of

AED2.2 billion (approximately US$600

million) for eight years, the company

announced. Abu Dhabi Commercial

Bank, First Gulf Bank, National Bank of

Abu Dhabi and Union National Bank,

along with Islamic institutions Abu

Dhabi Islamic Bank, Al Hilal Bank and

Dubai Islamic Bank provided the loan.

Gulf Keystone stops oil exports from Iraqi KurdistanGulf Keystone Petroleum has

temporarily suspended oil exports

from the Kurdistan Region of Iraq

through Turkey by truck as it tries to

settle outstanding payments from the

Kurdistan Regional Government. The

firm said that it was halting exports in

order to “establish a stable payment

cycle for export crude oil sales in the

future.” The decision was also made

to maintain cash flow, the company

said. In the short-term oil supply from

its key producing asset in the area,

Shaikan, will now be only for local

domestic use.

[US]

E.ON in 20-year deals to bring N. American gas to the worldEuropean energy firm, E.ON has signed 20-year agreements with Houston based Gulf South Pipeline Company and Japanese shipping firm MOL (Mitsui O.S.K. Lines) to ship shale-derived natural gas from North America to Europe and other international markets.

NEWS: International

[MAURITANIA]

Chevron acquires Mauritania stakeChevron’s wholly-owned subsidiary Chevron Mauritania Exploration has acquired a 30 per cent non-operated working interest in three blocks offshore Mauritania from Kosmos Energy. Blocks C8, C12 and C13 cover a contiguous area of approximately 6.6 million gross acres in water depths ranging between 1,600-3,000m.Following any commercial discovery after the exploration phase, Chevron will become the operator maintaining a 30 percent working interest - Kosmos Energy is currently the operator.

[COLOMBIA]

Canacol flows gas onshore Colombia

Canacol Energy has flowed gas at its Clarinete 1 well onshore Colombia at a test rate of more than 20.6 million (MMSCFPD). The first well drilled in its recently acquired VIM 5 exploration and production contract, has tested dry gas with no water in the first of two planned production tests over two separate reservoir intervals. The firm said that the Clarinete 1 well encountered 149 feet of gas pay with average porosity of 26 per cent within the CDO sandstone reservoir based upon an evaluation of the open hole logs. The company believes that the Clarinete discovery will open up new sales opportunities. The company is currently negotiating a new take or pay gas sales contract associated with the discovery.

[AUSTRIA]

OMV and Gazprom amend gas supply contract

Austria’s OMV and Russia’s Gazprom have agreed to amend their long-term existing gas supply contract to reflect changing market conditions. OMV did not disclose what the amendments were but it certainly seen as a reaction to falling crude oil prices, which have fallen more than 50 percent since last June. OMV through its subsidiary, EconGas, in which OMV holds a 64.3 per cent stake, is the counterparty in the contract. OMV has been buying natural gas from Russia since 1968. The current deal runs until 2027.

www.pipelineme.com14 Pipeline MARCH/2015

[KAZAKHSTAN]

Saipem secures $1.8bn Kashagan pipeline deal

Italy’s Saipem has been awarded a US$1.8 billion contract to construct two 95 km pipelines at the giant Kashagan project in Kazakhstan’s Caspian Sea region. Saipem won the new pipeline deal through its subsidiary ERSAI Caspian Contractor LLC, which is co-owned by Kazak company ERC Holdings. The contract was awarded by the North Caspian Operating Company (NCOC). Saipem will construct two pipelines to connect an onshore plant in Kazakhstan with an artificial island built in the Caspian Sea. The work includes the engineering; welding materials; conversion and preparation of vessels; dredging; installation; burial and pre-commissioning of the two 28-inch diameter pipelines. The firm said that construction will be completed by end of 2016.

[CHINA]

CNOOC starts production at offshore fieldChina National Offshore Oil Ltd. (CNOOC) said that oil production from the comprehensive adjustment project Jinzhou 9-3 in Bohai offshore China has begun. The independent oilfield is located in the North Liaodong Bay in Bohai. CNOOC holds a 100 per cent stake and is the operator.Currently there are 15 wells producing approximately 7,600 bpd. The field will reach its peak production of 12,000 bpd sometime this year.

NEWS: International

[AUSTRALIA]

AWE begins test at onshore gas well in Perth

AWE Ltd. has started a limited flow testing programme to further appraise the promising Waitsia gas discovery in the onshore Perth Basin, Western Australia. The Waitsia discovery is about 350 km north of Perth. It has Best Estimate Contingent Resources of 290 billion cubic feet. The test for the Senecio-3 well follows the end of drilling operations in September last year and is designed to determine well deliverability from two conventional reservoir zones and to collect gas samples for compositional analysis, according to AWE.

[NAMIBIA]

Chariot begins seismic survey in NamibiaLondon-listed Chariot Oil & Gas has announced that it and its partners have started a 2D seismic acquisition survey offshore Namibia. The survey covers over 1,000 miles in Central Blocks 2312 and 2412SA and is being conducted by SeaBird Exploration. The survey will infill an existing grid of data in order to gain a better understanding of the regional prospectivity of this large licence area. According to a statement from Chariot the survey will help it optimise the design of the location and size of the 3D seismic programme required as a commitment during this current phase of exploration.

15Pipeline MARCH/2015www.pipelineme.com

NEWS: International

16 www.pipelineme.comPipeline MARCH/2015

Japan’s INPEX has announced thatdrilling at its operated Ichthys LNG project has commenced at the Ichthysgas-condensate field, about 200 km off the Western Australian coast.

The first development well was

spudded on February 3.

Managing director Ichthys LNG Project Louis

Bon said the start to the drilling campaign was

a major milestone for the project.

“This campaign will target the Brewster

reservoir with 20 production wells. The

wells will be drilled into reservoirs about

4,000 to 4,500 metres beneath the

seabed,” he added.

The project will use directional drilling

technology and the wells will be grouped

around five drill centres, each designed to

accommodate 4-6 wells.

According to INPEX the next milestone

will occur in the coming weeks with the

start of the deepwater pipelay for the

project’s 889 km-long gas export pipeline.

The project will pipe gas off western

Australia to two LNG trains and other

infrastructure near Darwin in Australia’s

Northern Territory.

The LNG project is set to produce

8.4 million tonnes of LNG a year and

production should begin in 2016.

The Ichthys LNG project is a joint venture

between INPEX who has a 62 per cent

stake, Total, CPC Corporation and the

Australian subsidiaries of Tokyo Gas, Osaka

Gas, Chubu Electric Power and Toho Gas.

Drilling at Ichthys LNG project begins

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FEATURE: International

17www.pipelineme.com Pipeline MARCH/2015

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Chevron, BP and Conoco-Phillips collaborate onGoM projectChevron has said that it will work with BP and ConocoPhillipsto explore and appraise 24 jointly-held offshore leases in the northwest portion of Keathley Canyon in the deepwater Gulf of Mexico.

The deal encompasses BP’s Tiber and Gila discoveries, and

the Gibson exploratory prospect. Chevron, will be the operator,

recently acquired around about half of BP’s equity interest in

Tiber and Gila fields. Conoco-Phillips also sold 5 per cent of its

ownership in Gila to Chevron.

The collaboration deal is a sign of the times ahead for the

industry as low crude prices are forcing companies to pare capital

budgets for new exploration projects. This way all three firms

could “achieve efficiencies in schedule, realise cost savings,

and optimise the use of human resources,” Chevron said in a

statement.

Jeff Shellebarger, president of Chevron North America

Exploration and Production Company commented: “By

collaborating across several prospects and discoveries, and

incorporating the technologies and experience of the three

companies, we expect to develop these fields in the most cost

effective way and shorten the time to final investment decision and

first production.”

The scope of the collaboration between the companies also

includes evaluating the potential of a centralised production

facility, which would provide improved capital efficiency, similar to

Chevron’s Jack/St. Malo project.

The recently-announced discovery at Guadalupe, located

next to Keathley Canyon, could also be developed by utilising

the centralised production facility. Chevron, BP, and Venari, the

Guadalupe co-owners, will evaluate this possibility during the

upcoming appraisal phase of that discovery.

18 www.pipelineme.com

INTERVIEW: Ali & Sons

Ali & Sons is taking a pragmaticapproach to the current oil pricefluctuation and as the group’s

managing director of the oil and gas arm, Shamis bin Ali Khalfan Al Dhaherispoke at length about the current marketconditions and why a drop in the pricemight lend itself to potential acquisitionopportunities.

The oil and gas division typically grows

around ten per cent every year, explains Al

Dhaheri. Last year it contributed nearly 20

per cent of the bottom line of the whole

group. In fact over the last 12 months the

oil and gas division of Ali & Sons achieved

double what it was budgeted for.

“It plays an important role within the

whole company,” he says.

Even with the fall in crude prices and any

potential halting of projects he is confident

that the company will still have a good 2015.

“Overall it is business as usual for Ali &

Sons. Companies just need to find a way to

tighten their belts,” he comments.

Some of Ali & Sons major oil and gas

clients remain on course for a strong

2015. National Drilling Company (NDC) for

example are still looking to grow their fleet

and are set to go up to 68-70 rigs very soon.

The company has already begun feeling the

trickledown effect of this.

“We have also been able to fix and provide

top drive installations and full commission

and testing on four rigs for NDC.”

Al Dhaheri says he was not surprised by

the growth of his company’s oil and gas

business but he thought a part of it had to

do with luck.

One reason for the growth last year was

the increasing importance of the offshore

and marine side of the business.

“This year we have handled the upgrade

of two jack-up rigs. One of them is a 1967

class that has been re-classed to 2013.

While the other rig is a 1972 class that has

been upgraded to 2014,” he said.

Al Dhaheri believes that the volume on

the marine side is there and he doesn’t

see a challenge in terms of projects on

the offshore side.

“We still have projects ongoing. It is

going to more difficult for the end user to

just switch off the button.”

Focus on serviceHe explained how the firm is now

shifting its focus towards the service side

of the industry rather than the supply side.

“We continue to investigate what other

drilling services we could provide. We are

also looking at possible acquisitions of

service providing companies in the future.

Regarding acquisitions we would be more

interested in something locally focused

STRATEGIC GROWTH ON THE HORIZONShamis bin Ali Khalfan Al Dhaheri, group managing director of Ali & Sons talks exclusively to Pipeline Magazine’s Julian Walker about how the current sclimate in the oil and gas industry is impacting the Abu Dhabi based family run company and what it’s growth strategy is, going forward

Pipeline MARCH/2015

Ali & Son’s shipyard facility

Shamis bin Ali Khalfan Al Dhaheri,Ali & Sons

Overall it is business as

usual for Ali & Sons. Companies just need to find a way to tighten their belts

in the GCC region as we would prefer

to operate from nearby, nevertheless if

there is something offered that has some

international exposure we would certainly

consider it.

The strategic shift, Al Dhaheri believes,

has helped the company secure a

chemical contract with ADCO and ZADCO.

They have also won a three year aerated

drilling service contract with ADCO.

A key project for Ali & Sons this year is

the provision of the catalyst for Takreer’s

RFCC project, which is the biggest refinery

of its kind in the world.

Al Dhaheri discussed what markets the

firm might be looking to expand into in the

near future.

“Saudi Arabia is very interesting for us,

especially dealing with Saudi Aramco. While,

Kuwait and KOC are squarely on our radar.

The UAE remains our biggest and most

important market. We have very strong

relationships across the whole breadth of

the ADNOC Group of Companies.”

He says that Iraq remains a challenge,

despite the fact the firm has been

working there since 2005.

“We also operate in Indonesia , since

2006/7, which as a business had been in

a slump for four to five years but we are

now seeing things picking up again. This

is because the country is the biggest geo-

thermal producer in the world and there

is a lot of things happening in the geo-

thermal sphere,” he adds.

Oil speculationAl Dhaheri then talks about the impact

falling oil prices have been having and the

cascading effect they could have on the

whole oil sector.

“Everyone is speculating about what

is going to happen to the price of oil. We

INTERVIEW: Ali & Sons

19www.pipelineme.com Pipeline MARCH/2015

Ali & Sons also works in the downstream sector

are already seeing the impact of the oil

prices quite quickly in fact. I think everyone

thought we are going to ride the wave for

3-6 months and then see an impact but we

already see end users and service providers

requesting us to drop our prices. Everyone

knows that Saudi Aramco has asked rig

charterers to drop their prices by 20 per

cent,” he explains.

“We see it as a pure demand issue.

China’s demand has just dropped

significantly. I think the oil price will be

between $40-65 and will be maintained at

this level for quite some time.”

Al Dhaheri was quite frank in saying that at

the end of the day for a family run company

like Ali & Sons it is all about your leverage

strategy. If a firm has a low liability structure

then it will be able to continue. Whoever is

highly leveraged will have a problem.

“We are a family business so by nature

we are very conservative and we are not

very highly leveraged. We build our business

to develop our profits in a gradual growth.”

Still, he is confident that Ail & Sons will

be able to fend off any sustained drop in

oil prices.

“As a service provider I don’t see a

challenge in achieving revenues but I see a

struggle to maintain margins. There will be

a drop in margins for the industry. In terms

of oilfield supplies there is no country more

active than those in the GCC region. So we

have to maintain our presence and sustain

that wave for a certain period of time.”

The managing director believes that the

new market conditions created by the fall

in oil prices also represents an opportunity

as it allows firms to look at potentially high

leveraged companies who are being offered

up for sale that could allow companies like

Ali & Sons to develop their services and

technologies within the company. We could

also look at purchasing new opportunities.

As he puts it: “It is an opportunity to

position ourselves even further in the market.”

He touched on another aspect that

the local family business is looking at

seriously, the environmental aspect of the

oil and gas industry.

“This is an interesting space for us

and the environmental requirements and

international mandates are becoming

more and more demanding, especially in

the UAE. The government here wants to

make a big effort to develop a minimal

environmental impact from the oil sector

and the UAE wants to be a market leader

in environmental practices in the oil and

gas sector.”

One of the jack-up rigs re-classed by Ali & Sons

We are a family business so by

nature we are very conservative and we are not very highly leveraged. We build our business to develop our profits in a gradual growth

20 www.pipelineme.comPipeline MARCH/2015

INTERVIEW: Ali & Sons

The precipitous fall in oil prices during the last few months has seen the various actors in the

oil and gas industry react differently Bob Fryklund from IHS Energy, delvesinto the different responses from a viewpoint of an NOC, and an IOC, versus a pure-play American company.

“NOC’s will continue to move forward

with their plans because of their overall

need to balance funding of the social

economic programmes within their

countries,” Fryklund said. “Whereas, the

IOCs are tied to Wall Street and are going

to be shaping their rate of return, which is

why we are seeing them dropping back on

capex spending and looking at other ways

to cut expenses and be more efficient.

Finally, the pure-play American companies

are fine tuning the processes of cost

containment and efficiency optimisation

with a sharper knife, but there are still

plenty of plays in the US that are still

economically viable at US$35 a barrel,

while there are others that will struggle at

anything less than $65/70.”

Some of the drivers for the oil price

drop have to do with a shift to a new

equilibrium and a tighter market share.

One of the key drivers has been a growing

oversupply that has come as result of a

slowing global demand for oil and North

America’s unprecedented production

growth. The two main actors behind this

slowdown are China and India, who are

not going at the same pace.

Fryklund said: “We need to go back to

where we re-set the entire market for

oil, when the US drastically reduced its

need for imported oil (down to around 30

per cent). The US and China have flipped

roles, with China now importing as much

as 60 per cent of oil, which is where the

US was 10 years ago.”

The US has effectively emerged as

a new swing supplier of oil and has a

similar capacity to produce as some of

the biggest OPEC producers. This means

that for the oil markets to be balanced

today, it will need more than just OPEC to

cuts its production. To look at the future

of upstream, Fryklund said it is helpful to

view it from both a short-term and long-

term perspective. In the short-term, it is

all about a company’s earning’s to debt

ratio, and cost cutting.

“We were already going through this

re-order if you look at 2010-2013, when

www.pipelineme.comPipeline MARCH/201522

FEATURE: Oil Price

The long-term will be about

smart capital allocation and portfolio management

Bob Fryklund, chief upstream oil and gas strategist at IHS Energy, spoke exclusively to Julian Walker about the drivers behind the oil price fall and the impact it could have on the Middle East region

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www.pipelineme.comPipeline MARCH/201524

FEATURE: Oil Price

With the lack of supplyWWadjustments from OPEC keeping WWoil prices lower and providing aWWbackdrop for further price extremes over the next few months. The report indicates that over the first half of 2015 oil oversupply is expected to hit between 1–1.5mbpd.Although the oil market is rebalancing, as seen by the considerable curtailments incapital spending, there will be a lag in the impact on supply.

Mark Haefele, Global chief investment

officer of UBS Wealth Management,

said: “The outlook for oil in the first half

this year remains negative, amid the lack

of immediate supply adjustments in an

oversupplied market. That said, with non-

OPEC supply growth decelerating and

UBS Wealth Management’s latest research forecasts further short-term weakness in the price of crude oil, but indicates that gains in the latter half of the year will take the price to between US$67-72 per barrel by the end of 2015

CRUDE OILE :SEAREE CHING FOR EXTREE EMES

the small pure-play American operators

were outspending cash by 150 per cent,”

Fryklund said. ”They were already putting

their houses in order financially when the

precipitous fall in oil prices (60 per cent

drop) hit. This fact is accelerating the rush

to the bottom for some of the smaller

companies, who didn’t have their financial

house in order and additionally, either had

the wrong rocks or potentially the wrong

business model,” he argued.

For NOCs, Fryklund said, they are still

involved in cost containment efforts, but a

key driver for many of them, are additional

employment issues.”

These short-term factors all lead to

an imbalance in the market. “The US

production levels are still going to grow

this year, which is phenomenal,” Fryklund

said. “But if you look closely, you will see

a supply overhang of approximately million

bpd, which has to be reduced either via a

production drop or demand increase. This

will take time to work through,” he said.

The market is looking for clues in either

direction, but the fundamentals have not

b, and that is where we have to look to for

any long-term indicators, he said. “We have

to wait for demand to pick up, or supply to

drop, or a combination. In the IHS forecast,

we do see global demand starting to pick up

later in the year, but at a much slower pace

as the main actors – China and India- have

reset their growth paths.”

Fryklund did say that this market

landscape is opportunistic for some,

since it means that predators will be on

the prowl for distressed companies or

will see it as a chance to enter into a

certain area. “The long-term will be about

smart capital allocation and portfolio

management,” he said.

Middle East responseAccording to Fryklund, the Middle East

region will be looking for cross synergies.

“They are hoping to capitalise on cost

savings, which IHS predicts could be as

much as 14 per cent in some regions and

down as low as 8 per cent in others. The

Middle East is somewhere in the middle,”

he said.

The low oil price environment, he noted,

will force some companies to divest assets

and this “could be an opportune time for

Middle East players with international arms

to pursue new opportunities and pick up

interesting international assets in choice

areas that were previously too expensive

or unavailable.”

Additionally, he said, this will also be an

opportune time to secure some additional

talent, as some companies around the

world will be going into a period of non-

growth and cost cutting. “ This could lead

to talent moving to the region,” he added.

As for production in the region, Fryklund

expects that will largely remain intact as

regional governments will not want to give

away any market share during this period.

“There is a little bit of status quo on that

front,” he said.

Fryklund ended by stressing: “The

winners will be those with the good cash

position and spend through the cycle,

and the losers will be those companies

that are highly leveraged and in debt and

contract.”

FEATURE: Oil Price

www.pipelineme.comPipeline MARCH/201526

demand for oil improving in the second half

of 2015, we expect oil prices to rise and

trade around the $70 dollar per barrel mark

as we head in to 2016.”

The bank’s 12-month forecasts, which

still signal a recovery in crude oil prices, are

lower than previous estimates, at $72 per

barrel and $67 per barrel respectively for

Brent and West Texas crude.

Haefele said: “A central theme of

our recently published CIO Year Aheadinvestment outlook was the risk inherent

in an increasingly diverging world, and that

risk includes oil. We also urged caution for

a number of other reasons including the

return of geopolitical tension, misalignment

in central bank strategies and uneven global

GDP growth to name a few.

“However, a diverging world also brings

opportunities. We see the magnitude and

frequency of turbulent market events likely

to rise in 2015, but with global growth still

apparent overall, our base case is still one of

positive overall financial asset returns.”

In its search for a new equilibrium

price, the crude oil market seems to be

increasingly willing to push prices deeper

into the cost curve of supply. By testing

producers with the highest operating

costs in North America such as Canadian

oil sand mining operations (in the range

of $30-42/bbl [WTI prices]), the market

is accelerating the necessary supply

adjustments. Going down this path is a

dangerous road, as forcing the needed

supply adjustments over a shorter time

span comes with higher dislocation risks in

the upstream sector – bankruptcy – that is

not necessarily needed in the longer run.

2016 is a different story UBS said in their report that the

equilibrium price in the short run, which

requires curbing excess supply, is much

lower than what the world economy needs

in the long run. Long term, supply needs to

grow to meet rising fuel demand. Already

for 2016, supply needs to expand by about

1.2 million bpd to meet the steady rise oil

consumption. Although fuel efficiency will

be a drag on future demand, especially in

the developed world, the structural catchup

in energy consumption from emerging

markets should not be underestimated.

And for this and next year, the recent drop

in prices should add to firmer crude oil

consumption, especially in the developed

world (e.g. US +0.3mbpd y/y growth in

2015, making the country the second-

strongest growth market).

UBS listed some downside and upside risks:

Downside:

resilient, benefiting from further cost

reductions, efficiency gains and industry

consolidation. Furthermore, some

US producers might still try to keep

producing to service oil debts, which

ballooned over the last years.

bpd of spare capacity. While we have

not seen any indication that the country

wants to increase production, in the

absence of an oil cartel it is questionable

if it is rationale to leave this spare

capacity unused.

Upside:

highly dependent on oil revenues,

triggering more outages and steeper

capex cuts. Stronger investments cuts

would pave the ground for a stronger

price rebound in 1–2 years.

economics might result in a quicker and

more pronounced adjustment in US

production already at the end of 1H15.

Wellhead prices for crude oil in North

Dakota are already below $30/bbl.

Source: BP, IMF, UBS, as of 14 January 2015

Sensitivity of oil demand growth to global GDP growth

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

-0.2%

-0.4%1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

3-year rolling window until 2014

Oil demand growth for 1% of global GDP growth

Source: IEA, EIA, UBS, as of 14 January 2015Note: call on OPEC = how much oil the world needs for supply to be balanced with demand

Crude oil market likely to be oversupplied by 1.0-1.5mbpd in 1H15 by 1.0-1.5mbpd in 1H15

Values are in mbpd

32.0

31.0

30.0

29.0

28.01Q

2013

2Q20

13

3Q20

13

4Q20

13

1Q20

14

2Q20

14

3Q20

14

4Q20

14

1Q20

15

2Q20

15

3Q20

15

4Q20

15

OPEC supply Demand for OPEC crude (’call on OPEC’)

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Pipeline Magazine: Mexico’s new energy reforms encourage the involvement of international partners particularly with Pemex – can you describe the progress being made in this area and talk about which organisations or countries Mexico has invited or is working with?

One of the guiding principles of Mexico’s

Energy Reform is to promote free market

access and a levelled playing field amongst

state owned productive enterprises and

private companies. Under this new scheme,

Pemex will be another player in the bidding

processes from Round One onwards,

without privileges of any kind.

Pemex will participate in the bidding

processes by itself or in a joint venture, but

this is not compulsory. Starting with Round

One and thereafter, the Mexican State

will sign contracts through the National

Commission of Hydrocarbons with private

companies on their own, with Pemex or

with Pemex in joint ventures.

All the contracts for exploration or

extraction will be awarded through public

international bidding processes and the

invitations to participate are open to all

the companies that comply with the

prequalification requirements. All oil

companies are welcome.

There is another opportunity to participate

in the Mexican market as a partner of

Pemex. The Entitlements awarded to Pemex

in Round Zero can be migrated to contracts.

In this case Pemex will choose the areas

and the partner will be selected through a

bidding process conducted by the National

Commission of Hydrocarbons.

In December 2014 the first invitation

to bid for 14 exploration areas in shallow

waters was published. Up to this day

24 interested companies have paid the

necessary fees and thus have gained access

to the Data Room. The contracts for these

areas will be awarded in July 15, 2015. In

the following weeks the second invitation to

bid for extraction areas in shallow waters is

scheduled to be published.

On the midstream and downstream

there are also interesting investment

opportunities. The reform allows the free

participation of national and international

MEXICO’S GREAT POTENTIAL Mexico has a large amount of reserves and has great potential to develop new projects, even in a low oil price environment. Pipeline Magazine speaks exclusively to Guillermo García Alcocer Head of Policies for Exploration and Extraction of Hydrocarbons at Mexico’s Ministry of Energy

GEO FOCUS: Mexico

Guillermo García Alcocer from Mexico’s Ministry of Energy

GEO FOCUS: Mexico

30 www.pipelineme.comPipeline MARCH/201530 www.pipelineme.com

companies through permits. Having an

important presence nationwide, Pemex will

be looking for partners to capitalise some of

its industrial and logistic facilities.

PM: What obstacles, challenges and/or bottlenecks are you experiencing in implementing Mexico’s new energy reform?

The Reform is aimed to promote

free market access and direct and fair

competition amongst the companies that

participate in the energy sector through

the entire value chain, from exploration

and extraction, to transportation, storage,

refining, distribution and final sales of

hydrocarbons and oil products.

In order to carry out this fundamental

transformation, the energy reform is

based on the principals of transparency

and accountability, on institutional

checks and balances, in industrial

safety, environmental protection and on

maximising State’s revenues.

The main challenges in the short and

medium term in order to successfully

implement the Energy Reform are the

following:

decreasing attractiveness to investors;

production to meet domestic demand;

sustainable regulation that is friendly to

the environment and that respects human

and community rights;

diversified industry with a wide range

of technologies and companies with

different expertise that will allow the state

to maximise oil revenues and offer lower

fuel and electricity costs;

be able not only to provide for the needs

of the major oil companies working

Mexico’s offshore opportunities are vast

GEO FOCUS: Mexico

31Pipeline MARCH/2015www.pipelineme.com

in our country, but also to participate

directly in the different stages of the

energy value chain;

Owned Productive Enterprises) so they

can operate in this competitive industry

just as the private companies do; and

PM:What impact will lower oil prices have on Mexico’s future exploration strategy?

Projects in this industry are long term

and therefore the price level in the short

run is not as important as the expected

future prices. Although the price of the

Mexican oil mix has decreased nearly 56 per

cent since June, there are 42 companies

interested in the first stage of the Round

One bidding process, and 24 of them have

gained access to the Data Room of the 14

exploration areas in shallow water.

Due to the long term outlook of the

industry and the number of companies

interested so far, a major adjustment of

Round One is currently not on the table. The

portfolio to be offered consists of a balanced

selection of areas with diverse types of

resources. In this first open bidding round

companies will gain the right to explore

areas which are already in the production

phase, as well as to study relatively new

and unexplored areas. Likewise, there

are opportunities for both conventional

and unconventional resources with a high

prospective potential.

We are currently reviewing the

composition of areas to be offered in each

tender so that the grouping maximises

economies of scale, and thus retain

attractiveness in a volatile oil market.

In August 13, 2014 the government

announced the first approach to Round

One and in the next month the final

schedule was put forward.

The Bicentennial rig exploring the

VASTO well in deep waters of the

Northern Gulf of Mexico

The Reform is aimed to

promote free market access and direct and fair competition amongst the companies that participate in the energy sector

32 www.pipelineme.comPipeline MARCH/2015

PM: What are the current top priorities for Mexico’s oil and gas industry e.g. restructuring of the industry’s various organisations: creating new companies and industry sectors?

The Energy Reform provided for the

creation of new and specialised agencies,

strengthened the existing ones, and

enacted clear rules and specific mandates

for each one and for their interactions in

order to ensure a framework of checks

and balances.

To promote an efficient and

continuing coordination in the sector

The Coordinating Council of the Energy

Sector was established by Law. This

new mechanism is presided by the

Energy Minister and composed by

the Undersecretaries of the Ministry,

the Chairpersons of the National

Hydrocarbons Commission and the Energy

Regulatory Commission, as well as by the

General Directors of Cenagas and Cenace,

the entities created to promote new

markets in natural gas and electricity.

One of our main priorities is to aid in the

institutional formation and development

of the new agencies, that is the before

mentioned ISO´s, as well as for the

Mexican Petroleum Fund for Stabilization

and Development and the National Agency

of Industrial Safety and Environmental

Protection of the Hydrocarbon industry.

A second priority is to oversee the

reengineering process of both Pemex

and CFE. The Reform provides for a

new corporate governance, including

independent board members, budget

autonomy and operational flexibility.

PM: How much effort and consideration is being given to diversifying Mexico’s energy sector?

The Energy Reform aims to implement

the highest standards of industrial safety

and environmental protection according to

international best practices, as well as to

promote the use of renewables and cleaner

fuels, and thus reduce polluting emissions

from the electric power industry.

Five key measures are being

implemented in order to promote the use of

cleaner technologies:

A. Eliminating barriers to the development

of renewable energies and the creation of

an independent operator that determines

the requirements for the expansion and

interconnection of the transmission lines.

B. Facilitate the commercialisation of

renewable sources of energy by creating a

regulated energy market so the producer

will have ready access to more clients

interested in purchasing clean energy.

C. Mechanisms to promote and

interconnect the electricity generated

with these sources.

D. New mechanism to finance renewable

energy projects and increase its demand.

E. A regulatory framework to evaluate

the social impact of the projects in

order to promote a sustainable regional

development.

PM: Are there plans to encourage more students to take up careers in the energy industry in Mexico, if so, how is this being facilitated?

The Reform recognises the increasing need

for a highly educated human capital in order

to successfully implement this new industrial

scheme. So it is stated in our Constitution

that a percentage of the revenues coming

from the entitlements awarded to Pemex

and from the new contracts for exploration

and extraction, will be used for scholarships

in universities and postgraduate programmes

and in projects. A programme to promote

human resources in the energy sector was

also announced recently.

Guillermo Ignacio García Alcocer is, since June 2014, Head of Policies for Exploration and Extraction of Hydrocarbons at the Ministry of Energy. His expertise spans across a wide range of areas within the Mexican hydrocarbon industry, including economic and technical regulation, public policy design and business evaluation and development.

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FEATURE: Metering

34 www.pipelineme.comPipeline MARCH/2015

Lars Anders Ruden & Svein Erik Gregersen of Emerson Process Management discuss growing wet gas challenges in the region

REDUCING RISK IN THEMIDDLE EAST’S WE ET GAS FIEE ELDS

Some of the world’s mostchallenging environments for oil and gas production measurement

today are in offshore wet gas fields. The increased demand for gas has

seen operators develop fields that cover

a wider range of operating conditions

than previously the case. New technology

developments have also enabled facilities

to handle more liquid resulting in more

water and condensate being produced.

This leads to an increased operating

range, fast changing fluid compositions

and a need for even more accurate and

sensitive measurements over the lifetime

of the field.

The need to measure water salinity has

also become increasingly important, due to

salinity being a key operational parameter

for reservoir management and flow

assurance. Salinity provides the reservoir

engineer with the necessary information

on whether formation water is entering

the flow and whether injection rates of

scale and corrosion inhibitors need to be

changed accordingly.

Furthermore, with the current low

oil prices, the presence of undetected

formation water and water coning, and

the dangers of hydrates, scale, corrosion,

and - in worst case scenarios - well

shutdowns can have a highly negative

impact on the field’s economics. There

is subsequently little room for error or

production slow-down due to the fast

declining profit margins.

Today, the Middle East along with other

parts of the world, such as the North Sea

and Gulf of Mexico, face many of these

challenges.

The Khuff reservoir, offshore Abu Dhabi,

for example, contains a mixture of dry and

wet gas and there is also Abu Dhabi’s giant

Shah field that has high and fluctuating

H2S concentrations, making it difficult to

accurately measure the flow rates of oil,

water and gas in the well streams.

Other wet gas fields include Qatar’s Al

Khaleej Gas Project; and in North Africa,

Morocco’s largest wet gas field, Meskala

A new subsea wet gas meter

FEATURE: Metering

36 www.pipelineme.comPipeline MARCH/2015

and the In Amenas wet gas field, onshore

Algeria – a partnership between Algerian

state oil company Sonatrach, BP and

Statoil. It’s clear that there’s a need for a

new risk-based flow assurance strategy for

these and other wet gas fields.

It’s with these issues in mind that

Emerson has developed new technologies

around its Roxar Subsea Wetgas Meter

that improve measurement uncertainty and

salinity measurement as well as extend the

operating range for wet gas meters.

Improving measurement uncertaintyNew developments by Emerson in

the microwave electronics behind wet

gas meters, for example, have made

a significant impact on measurement

uncertainty.

The growth in digital frequency

measurements has allowed for improved

stability and time resolution and

more accurate and sensitive wet gas

measurements, where the microwave system

is able to clearly differentiate between very

small amounts of water content

A new multivariate analysis function

has also been introduced giving true

PVT (Pressure, Volume, Temperature)

independency on water fractions,

especially in high GVF flows. The

multivariate analysis functionality is the

result of the extensive analysis of raw data

from several flow loop tests performed

at Statoil’s K-lab in Norway and CEESI

(Colorado Experiment Engineering Station

Inc.) in the United States.

It is this combination of the new

microwave system with multivariate

analysis that allows for an improved

uncertainty specification of ±0.01 per cent

abs WVF (Water Volume Fraction) at GVF

(Gas Void Fraction) 99-100 per cent and the

detection of changes in the water content

of the flowing well at as as little as 0.2 ppm

(parts per million). Such sensitivity has

never been reached before and represents

significantly less than a droplet of water.

Salinity measurementAs mentioned previously, salinity

measurement has also become

increasingly important in managing wet

gas fields and in determining risk mitigation

strategies, such as chemical injection to

prevent scaling and corrosion.

Recent technological developments in

wet gas metering allows for the direct

FEATURE: Metering

37Pipeline MARCH/2015www.pipelineme.com

measurement of salinity via a new ceramic

microwave based sensor.

The new sensor developed by Emerson

is a dielectric cavity resonator mounted

flush in the wall of the meter body, with

one end facing the flow. The sensor is

extremely sensitive to saline water on

the sensor surface and is also highly

predictable when faced with increasing

salinities and water levels.

The ceramic salinity sensor, combined

with cone resonance frequency

measurements provided by the meter,

allows for the seamless measurement of

produced water salinity over the entire

operating range of the wet gas meter. The

system will output the salinity and the

conductivity, in addition to providing a flag/

alarm indication of the onset of formation

water. If the salinity of the formation water

is known, the actual formation water flow

rate can also be provided as an output.

The introduction of new microwave

electronics and the salinity sensor also allows

for the salinity measurement of the dispersed

water droplets in the flow, further improving

formation water detection features.

Extending the operating rangeFinally, another key development in wet

gas metering and which is addressing

many of the challenges described earlier is

the extension of the operating range.

While the main focus of the new wet

gas metering developments is in the 98–

100 per cent GVF range, where improved

measurement uncertainty is being seen,

progress is also taking place in the lower

GVF as well.

As the liquid content and water content

increases in the wet gas flow, the medium

absorbs more and more of the microwave

energy, limiting the operating range of the

microwave resonance measurements.

By introducing new microwave electronics

that allows for transmission-based

measurements in addition to resonance,

this limitation can be overcome. With this

in mind, Emerson has introduced a new

three-pin microwave probe to allow for water

fraction measurements, even in the case of

a high loss medium (high liquid and water

content) flowing through the meter.

One pin transmits while the other two,

placed at slightly different distances from

the transmitting pin, receive the microwave

signal. The phase and amplitude of the

received signal at the two receiving pins

are then used to derive the permittivity

of the medium, which corresponds to the

water fraction of the flow. Together with

the gamma measurements, this enables

the expansion of the operating range down

to 80 per cent GVF.

In addition to increasing the operating

range with regards to liquid and water

content, the operating range vis a vis

pressure and temperature is also extended

with the new meter qualified up to 15,000

psi and 180 °C respectively.

Rising to the challengeNew technology developments in wet

gas meters and effective water detection

in wet gas fields are central to risk-based

flow assurance strategies today, and in

delivering increased production.

It’s encouraging that at a time where

increased production and flow assurance

needs to be more effective than ever,

metering technologies are rising to the

challenge in the Middle East’s wet gas fields.

FEATURE: Metering

38 www.pipelineme.comPipeline MARCH/2015

Alderley FZE are currently executing a contract awarded for the engineering, design and manufacture of fiscal metering systems for Qatar Petroleum

FISCAL METERING SYSTEMSDESIGNED FOR QATAQR R

The three metering systems have been engineered to measurea specific natural gas liquid:

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MIC is located approximately 40

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coast of Qatar. The city has transformed

itself over the years from a single port

facility exporting crude oil into Qatar’s

main industrial city and centre for

petrochemical and oil refining activities.

The project had many technical

considerations factored into the design

of each metering system. Alderley’s

proven experience in the design of low

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as knowledge regarding the optimal

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The butane and propane metering

systems have both being designed with

FEATURE: Metering

40 www.pipelineme.comPipeline MARCH/2015

two operation modes, circulation and

loading mode. Designed to take into

account the low temperatures of the

liquids it has been integrated into the

metering systems reducing the capital

cost to the client. The requirement

of the circulation mode is to maintain

a consistent low temperature in the

metering skid throughout the streams at

all times. This ensures there is no sudden

expansion of liquid to gas which would

damage the system. No metering will

take place during this operation.

It should be noted that the sun

radiation temperature in this region

would be around 84ºC.

A cooling operation will be performed

prior to loading, in order to the cool the

outlet line and loading arm near the ship.

This is necessary in order avoid boil off

gas into the skid. During the loading

mode, fiscal metering will be taking place.

All the metering systems are supplied

with common redundant supervisory

computers. The systems are being

manufactured at Alderley’s Middle East

facilities in Jebel Ali, UAE just a short sea

crossing to Mesaieed. They are expected

to be delivered in June 2015.

Alderley has been committed to

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covering the measurement of crude oil,

cryogenic LNG, helium gas, selexol, ethane,

butane, propane and condensate.

Butane metering & Prover-101

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Alderley has been committed

to supporting the Middle East for the past 15 years and in the Qatar region alone has delivered over 46 metering systems covering the measurement of crude oil, cryogenic LNG, helium gas, selexol, ethane, butane, propane and condensate

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FEATURE: Libya

42 www.pipelineme.comPipeline MARCH/2015

Libya analyst, Valerie Stocker, had a rare interview with the chairman of Libya’s National Oil Corporation Mustafa Sanallah in Tripoli who explained why the oil industry tries to stay above the political infighting

THE LIBYAN CONFLICT ISTSUFFOCATAA ING THE COUNTRY’S OIL

Any interviews with the top management of Libya’s oil industry has been difficult but

Stocker found herself in Sanallah’s officein Tripoli in late December where hegave a rare insight into running Libya’snational oil company during very toughtimes as the Libyan state is falling apart.

Since the Ghaddafi-days, much has

changed for Libya’s oil industry, which

accounts for around 95 per cent of total

state revenue. Libya used to produce

up to 1.7 million barrels of oil a day, of

which it exported over 80 per cent, from

nine onshore terminals and two offshore

platforms. As of February 2015, exports

have slumped to less than 200,000 barrels

per day and the main oil ports are closed

or non-operational. In the power vacuum

that followed the 2011 revolution, Libya

first saw a surge in oil sector blockades

as all sorts of protest groups took to the

facilities, knowing that hindering the oil

flow was the one thing that the authorities

would not tolerate. From mid-2013 until

2014, four of five export terminals in

Libya’s eastern region – which features the

country’s most prolific oil fields – lay idle

after Ibrahim Jadhran, a military commander

gone rogue, turned a part of the national oil

guard against the central government and

declared the eastern region autonomous.

The blockade was eventually lifted after

leaders in Tripoli agreed to pay millions

in compensation and make some largely

symbolic concessions to the federalists,

failing to address the underlying grievances.

Just as oil output started rising again, the

industry was faced with a new challenge.

In the summer of 2014 Libya’s troublesome

democratic transition came to a standstill

as the fragile balance between political

factions collapsed. Two rival camps, roughly

defined as “Islamist-revolutionary” and

“Liberal-reactionary” but in fact based on

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FEATURE: Libya

44 www.pipelineme.comPipeline MARCH/2015

circumstantial alliances between tribes,

cities and political movements, took their

quarrels from the congress hall to the

streets. In July, militias fighting over control

of the capital destroyed the country’s main

airport. In August, the newly elected and

internationally recognised legislature failed

to take over power from the outgoing

General National Congress or GNC in

Tripoli and instead settled in Tobruk, over a

thousand kilometres further east near the

border to Egypt, basing its government

in nearby al-Baidha. The choice was not

random. In May 2014 retired general Khalifa

Haftar had launched a military campaign –

dubbed Operation Dignity – against radical

Islamist groups that had benefited from

the security vacuum to gain a foothold in

eastern Libya. Backed by leading tribes in

the east, Haftar managed to recruit most of

what remained of the Libyan army, including

the airforce, and to convince liberals that

he was the lesser of two evils. Though

reluctantly, the new parliament took his

side. In Tripoli, a coalition of Islamist-leaning

forces known as Libya Dawn took over with

the blessing of the GNC, establishing its

own government. As the two coalitions,

now referred to as Dignity and Dawn,

consolidated their hold, Libya was divided

in two.

When I spoke to Mustafa Sanallah, who

became chairman of NOC in May 2014 , the

Baidha-Government had just declared the

formation of its own NOC and appointed the

virtually unknown Mustafa Mabruk Buseif

as its new chairman. The NOC’s head office

in Tripoli learnt of the new appointment from

the news. Mashallah Zway, oil minister of

the Tripoli-Government, was fuming when,

for its annual summit on November 27,

OPEC invited a delegation from al-Baidha

to Vienna. He even threatened to take legal

action against OPEC if the organisation

did not recognise his as the legitimate

government. Sanallah appeared to stand

above the political quarrels.

“Libya is one of the founders of OPEC

and should definitely remain a member

of the organisation,” he said without a

hint of doubt. But he also made it clear as

to who he thought was in charge: “The

legal residence of the NOC is in Tripoli –

Bashir Saadawi Street P.O.Box 2655 – and

all our contracts with all our customers

and shareholders are done here,” he

emphasised.

The impression Sanallah tried to convey

was that his industry was affected very little

by the political turmoil.

“The corporation is strong by law and

relatively independent from the political

authorities. The law gives the NOC all

authority for preserving the oil wealth of the

country, and also for signing contracts to

import fuel and export crude,” he explained.

What now plays in the corporation’s

favour is that Libya had no oil ministry

under Ghaddafi, who preferred to keep the

industry under his direct oversight. The post-

revolutionary authorities created a ministry

but the legal framework is still in flux and

the respective areas of responsibility are

unclear. As a result, the NOC goes about its

business seemingly undisturbed, keeping

up its routine reporting on board meetings

and field maintenance, spiked with the

occasional report of a new oil discovery that

no one currently cares to explore.

Behind the scenes, tensions are tangible,

however. A senior NOC official privately told

me that the corporation was struggling to

stay out of the conflict. “When Libya Dawn

entered Tripoli things weren’t clear about

who was running what. Some managers

started taking sides. (Mashallah) Zway tried

to exert control in the beginning, but at

some point he gave up.” After a few weeks,

the official said, things have settled down,

as most NOC officials wanted to remain

neutral and focus on the technical side of

their work. Also, the Libya Dawn takeover

did not result in any managerial reshuffles in

the public oil sector.

Falling productionDespite the reassuring messages from

the NOC, the oil industry is by no means

shielded from the trouble Libya is going

through. The main issue is dwindling

production. As a result of deteriorating

security, the NOC’s several dozen foreign

partners pulled out virtually all of their

expatriates, leaving operations to the

Libyans and managing business from

neighboring Tunisia or Malta. The withdrawal

came in stages. First from remote drilling

sites, which were at the mercy of a

patchwork army of former revolutionary

brigades collectively referred to as

Petroleum Facilities Guard (PFG). The PFG

is meant to protect oil sites on behalf of the

Libyan state but often enough became a

problem in itself, blockading facilities to be

paid on time or getting into violent quarrels

over security assignments. With the rise of

urban crime and political violence, including

An oil tanker at the Hariga Berths in Libya

Mustafa Sanallah, NOC chairman

Looking for Sales Associates/Agents

FEATURE: Libya

47Pipeline MARCH/2015www.pipelineme.com

frequent carjackings and kidnappings,

oil companies then cleared their country

offices of all but essential staff. When the

airport was destroyed last summer even the

last hard-boiled executives were evacuated

from their high-security condominiums.

Now, those with commercial interests in

Libya look on the Libyan chaos from abroad,

wondering how much worse it is going to

get before it gets better. After having stayed

put for four years since the outbreak of the

revolution, companies are starting to turn

away for good.

“Oil companies are reducing their Libya

staff by 60 or 70 per cent. Qualified people

are relocated elsewhere, while most local

staff are let go. Everything is going to

collapse,” a friend who used to work in the

oil sector told Stocker. For the NOC and

its subsidiaries, managing their business

across the political and territorial divide has

become a challenge. “Managers based

in the east can no longer come to Tripoli.

Corporate decisions have to be taken by

mail and phone,” explained the NOC official.

Scramble for oilFor a while, there seemed to be some

kind of unspoken agreement between

Dawn and Dignity that the country’s oil

would remain untouched. Both sides

have an interest to keep the oil flowing:

the revenue goes to the Libyan Central

Bank, and the Central Bank continues to

pay out public salaries and funding both

rival governments in an attempt to stay

out of the conflict. But late last year the

scramble for oil began. On December 15

Libya Dawn launched Operation Sunrise

to free the eastern oil terminals from the

grip of “criminal gangs”, a reference to

Ibrahim Jadhran and the oil guards loyal

to him. By then, Jadhran had become

a key ally for the Dignity Coalition, and

the Libyan airforce came to his support,

bombing Dawn forces. The oil crescent,

with Libya’s main oil terminals, Sidra and

Ras Lanuf, has since become a battlefield

reminiscent of the trench warfare during the

revolution. In addition to the great human

losses, material damages are believed to

be substantial. When a rocket set the oil

tank farm at Sidra ablaze on December 25,

the fire burned for nine days and destroyed

an estimated 1.48 million barrels of oil

worth over US$80 million. While the United

Nations desperately tries to bring the rival

camps to the negotiating table, the fighting

and destruction continues. Many of those

involved, including commanders on the

ground, say they are eager to withdraw, but

what was set in motion is now hard to stop.

As if this was not enough, the oil industry

is now faced with a new and hitherto

unknown danger: terrorism. From within

the emergent radical Islamist scene,

jihadist splinter groups have declared their

allegiance with the Islamic State in Iraq

and Syria (ISIS) and brought entire areas

under their control. They seek not only

to implement a literal interpretation of

Sharia, Islamic law, but also to combat the

fledgling Libyan state and any remaining

Western presence. Soon after it claimed

its first attacks, the Libyan Islamic State

branch turned towards the oil sector. On

February 3, militants presumed to belong to

the IS-Group raided an oil field in the Sirte

Basin operated by NOC-Total joint venture

Mabruk Oil Operations. After brutally

killing ten guards and taking three Philipino

employees hostage, the assailants lectured

the remaining Libyan staff on Islam and the

sin of working with infidels. Although it was

denied by Total, some in Libya maintain that

a French citizen was also abducted from

the site. Ten days later, another attack on a

nearby field was repelled. A day after, a 516

km long oil pipeline that carries crude from

Sarir, Libya’s largest oil field, to Tobruk was

blown up. Outraged at these attacks, the

NOC has declared it may have to pull out all

staff from the Sirte Basin, halting production

entirely in this region.

For now there is little reason for

optimism. The Libyan authorities do not

know how to deal with the new threat

posed by armed groups whose rationale is

to spread terror rather than obtain benefits.

The political leadership is too divided to

pursue a coherent strategy, aggravated

by the fact that Libya Dawn refuses to

recognise the existence of the Libyan IS

branch. Some put all their hopes in Khalifa

Haftar’s war, despite fears that the General

may try to seize power once his adversaries

are defeated. Others continue to support

the UN-sponsored national dialogue, hoping

that a consensus government will isolate

radicals on both sides. In the middle, the

NOC is trying to respect its commitments

and reassure foreign partners and investors

that Libya is still worth believing in.

Valerie Stocker is a freelance journalist and

researcher specialised on Libya. Previously

based in Tripoli, she is now a frequent visitor

to the country and regularly reports on

Libyan affairs for international media, as well

as conducting investigations on behalf of

consultancies and think tanks.

Valerie Stocker

The Marsa al-Hariga port facilities

World Heavy Oil Congress(WHOC) this year is movingback home to Edmonton in

March 2015. Between March 24-26, the global heavy oil community will convene on the Canadian city to discuss the industry in 2015 and beyond. Fittingly, with the low dollar environment, andthe global energy focus shifting towardsenhanced oil recovery and lowering the cost of production, the theme of WHOC2015 is ‘Producing More with Less’.

The International Energy Agency (IEA)

forecasts a 35 per cent energy demand

increase over the next 20 years. The IEA

also estimates that while the share of

renewables will grow, fossil fuels will

remain the dominant energy source at 76

percent of the energy mix. This is good

news for the hydrocarbon industry in

general, but there is a lot of work ahead in

order to remain competitive, manage costs

and to build a sustainable heavy oil industry.

WHOC 2015 is busier than ever, with

more than 20 countries represented, 70

exhibitors, one business day, two technical

days with five concurrent streams, three

technical tours, four short courses and

poster sessions on the exhibition floor, as

well as numerous networking opportunities

such as the opening night party.

The business conference programmmme will

explore worldwide development of heavy

oil through keynotes, panels, and cassse

studies presented by major players frrrom

both emerging and established markeeets. On

the technical front the programme wwill look

at the advancements and developmeeents in

production, drilling, refining, and learnnn from

some of the key people in the heavy oil

community today.

Some of the highlights of this year’s

event includes, Ali Moshiri, Presidenttt

of Chevron Africa and Latin America

giving the Keynote Speech on ‘The

Future Role of Heavy Oil in the

Energy Equation’; a technical tour toto

Schlumberger’s Artificial Lift facilityty

in Nisku, 120 cutting edge and

innovative technical presentations.

The Congress chairman for this year’s

event is Mark Little, EVP Upstream at

Suncor Energy. He will be giving the

welcoming address.

Little is optimistic that “despite all of

these challenges ahead, we can advance

technology to drive down the cost of

production and reduce our environmental

footprint. We can find better ways to get

things done, to optimise our business and

become more efficient and disciplined.

All parts of the energy value chain –

producers, refiners, shippers, suppliers and

vendors – need to manage costs, reduce

expenses and help improve our industry’s

competitiveness and profitability. We can

work together to build healthy communities

and foster social well-being wherever we

operate. And we can collaborate with one

another and with stakeholders to advance

the industry’s environmental, economic and

social performance.”

WHOC this year is set to see an even greater attendance

World Heavy Oil Congress (WHOC) this year is moving back home to Edmonton, Canada in March. The event is bigger than ever and has a timely theme of ‘Producing More with Less’

WORLD HEAVY OIL CONGRESSRETURNS HOME BUSIER THAN EVER

FEATURE: Heavy Oil

www.pipelineme.comPipeline MARCH/201548

Mark Little, Congress Chairman, WHOC

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FEATURE: Logistics and Transportation

51Pipeline MARCH/2015www.pipelineme.com

Iraq may well be experiencing a very trying period in its post-Saddam history and with the added background noise of an uncertain oil market, it is indeed challenging to maintain ones composure when asked to plan for the future. But the country seems far too important for the world to not notice, writes Emran Hussain

ALL EYES ON IRARR Q

The sheer enormity of Iraq’s hydrocarbon wealth potential more than overshadows the

current security challenges the country isgoing through. And even in this climate,there are a vast number of opportunities to be had especially if you are in the logistics business.

Although low global oil prices are on the

mind of just about anyone in the industry,

there is a rather buoyant mood among

those in the business of moving oil and

gas assets such as pipes, valves and entire

drill packages in and out of OPEC’s second

largest oil producer.

“For Iraq, its vast reserves of oil and

gas - much of which is in the early stages

of development or has not been developed

at all - serves as this country’s economic

engine,” says Eric Clark senior vice

president for NAWAH Supply & Distribution.

“Given that economic dynamic, the Iraq

government is poised to ensure that the

development here doesn’t slow. NAWAH’s

ability to service the oil and gas industry in

Iraq will only continue to grow in parallel,”

he tells Pipeline Magazine.

Dubai based NAWAH, an acronym for

North America Western Asia Holdings, is

the division’s parent company which was

founded in 2011 primarily to drive strategic

business investments in the Middle East,

Central Asia and North Africa.

NAWAH Supply & Distribution and

NAWAH Port Management are the two main

businesses that are run specifically in Iraq –

essentially forming a beachhead for NAWAH

in the country’s burgeoning logistics sector.

Iraq revised its output targets last

September from a wildly ambitious 12

million bpd by 2020 to 8.5 – 9 million bpd

due to major IOC partners BP and CNPC of

China reducing their production targets from

southern oilfields. BP lowered its planned

plateau from the supermajor Rumaila field

from 2.85 million bpd to 2.1 million bpd while

CNPC agreed to a drop in its final output

from the nearby Halfaya field to 400,000

bpd from 535,000 bpd - aging existing

infrastructure and government red tape are

thought to have been the main culprits.

Given such a backdrop and with the

added burden of low oil prices - at the time

of going to print Brent stood at just over

US$61, Clark, who was on the road in Iraq,

remains quite bullish.

“The forecasting that we have been

closely monitoring indicates that the current

dip in price per barrel will rebound in late

2015, early 2016. We have already seen

the slight rebounding of prices after the

past two months of plummeting prices

and we are confident that that rebound will

slowly continue. Another important market

reality for NAWAH is that we are focused

upon supporting the oil and gas sector in

FEATURE: Logistics and Transportation

52 www.pipelineme.comPipeline MARCH/2015

southern Iraq,” he adds.

As if to back up Clark’s upbeat remarks,

and adding to NAWAH’s fortunes, the

company struck a major strategic deal to

jointly pursue development projects in Iraq’s

energy sector in early February with China

Petroleum Pipeline (CPP).

This is in line with NAWAH’s existing line

of business where it currently specialises

in handling mainly pipes, valves and fittings

through its Iraq warehousing facilities.

The vast majority of these products, Clark

explains, originate in North America,

Europe, Australia as well the Far East.

With projections calling for $48 billion

of infrastructure investment to meet

Iraq’s production targets, the country is

experiencing unprecedented demand for

international partners like CPP and NAWAH

to help accelerate development of new

pipelines, refineries and export facilities.

CPP, which has over the past 15 years laid

more than 40 long-distance pipelines totalling

50,000 km from West Africa and throughout

Asia, is the third major international partner

and client in the PVF (pipe, valve and fittings)

business for Nawah along with its existing

agreement with US PVF distributor MRC,

said to be the world’s biggest.

“As exclusive Iraq distributors for MRC

Global - the world’s largest provider of PVF

to the international oil and gas industry - we

have global suppliers who aid us in bringing

the highest quality products into Iraq at the

most competitive pricing. We also supply

Iraq with American-made products from US

Steel, most notably in down-well products,”

explains Clark.

NAWAH, through both its supply

and distribution and port management

businesses services a full spectrum of

clients, Clark highlights.

“We supply and service large, international

oil and gas companies, along with their

contracted engineering, procurement and

construction firms. We also enjoy deep

relationships with smaller, more regional and

local firms that are endeavored to support

the mammoth efforts to tap into Iraq’s natural

resource wealth.”

Turning to automation, a subject which

has caught the imagination of many an

industrialist with its promise of cutting down

on labour costs and transit times through

its efficiency, we wondered how effective it

would be in streamlining a logistics business

as crucial and time-critical as NAWAH’s.

“NAWAH’s operation is fully automated,”

Clark proclaims. “We have enterprise

resource management systems that are

integrated with our global supply partners

- namely MRC Global and US Steel - and

which provide us the full supply-chain

lifecycle visibility across our entire shipping,

port management, warehousing, trucking

and door-delivery services for our IOC and

EPC customers.

“From inventory control in our

warehousing and laydown yards to real-

time visibility of our customers’ products,

we have leveraged technology to its fullest

extent since launching our business lines.

And, our Western, Asian and Iraqi staff

members are all trained and technologically

adept, furthering our market differentiation

in Iraq,” he proudly adds.

Iraq may well be experiencing a very

trying period in its post-Saddam history

and with the added background noise of an

uncertain oil market, it is indeed challenging

to maintain ones composure when asked to

plan for the future. But the country seems

far too important for the world to not notice.

“We are confident that the current

downturn dynamics that the industry has

been facing in the past 45 to 60 days

will self-correct by late 2015, early 2016,”

Clark reiterates. “And, given the fact that

Iraq’s economy depends heavily upon

the extraction of these vital and strategic

resources, the pace of development, we

feel, will not slow. That steady oil and gas

development gives us great confidence in

Iraq’s market viability to both our shipping

and supply and distribution business lines,

which service the oil and gas industry in

southern Iraq.”

NAWAH is an exclusive distributor in Iraq of pipes, valves and fittings for MRC, the

world’s biggest PVF distributor

A NAWAH employee inspects some

newly arrived piping destined for a

nearby oilfield

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s t ss t ss t s

TAKREER Research Centre (TRC) started its research activities in2009 in a purpose built premises

located in Sas Al Nakhl, Abu Dhabi. Thecentre is the first applied research entity within the UAE in the field of oil and gas.

The centre has been developed by the Abu

Dhabi Oil refining company (TAKREER), one

of Abu Dhabi National Oil Company (ADNOC)

Group of companies with the support of

Japan Cooperation Centre, Petroleum (JCCP),

and Idemitsu Kosan Co.,Ltd. (Idemitsu).

“A special tribute must be paid to the

speakers and participants who make

this annual gathering a success and a

platform for shedding light on recent issues

pertaining to R&D in the refining sector,”

said Jasem Ali Al Sayegh, TAKREER CEO

during the workshop’s opening ceremony.

TRC stands as a testament to the

strong ties between Japan and the UAE

and the annual workshop always has a

strong Japanese presence. This year the

Japanese Ambassador to the UAE HE

Yoshihiko Kamo attended and spoke at the

opening ceremony.

“I believe that the TAKREER Research

Centre has become one of the most

successful models of cooperation

between the two countries. Since the

inauguration of the first round of the

workshop, collaboration has expanded

The TAKREER Research Centre (TRC) – JCCP/Idemitsu annual workshop had a very successful fifth outing this year which saw top international speakers and attendees coming for the two-day workshop

TAKREER RESEARCH CENTREWORKSHOP GETS BIGGER AND BETTER

www.pipelineme.comPipeline MARCH/201554

FEATURE: TRC 5th Workshop

Jasem Ali Al Sayegh, TAKREER CEO

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focusing on the exchange of technical

knowledge between TAKREER, Idemitsu

and the Centre,” he said.

The first TRC – JCCP/Idemitsu annual

workshop was held in 2011 and has

since grown in stature to become a truly

international event.

“This joint annual workshop is a testament

to the collaboration between TAKREER,

JCCP and Idemitsu which has recently been

enjoying new horizons,” Al Sayegh said.

Dr. Mabruk Issa Suleiman, Deputy TRC

Manager expressed his satisfaction with the

quality and standard of the two day workshop.

He said: “This year was a turning

point for the annual TRC JCCP/Idemitsuworkshop, and it is going to be a challenge

for us to build on it.”

He reiterated that this year’s workshop

would not have been possible without

the support and encouragement of

TAKREER’s management and the hard

work, professionalism and dedication of all

TRC staff throughout the nine months of

preparations, in particular the steering and

technical committee members.

Growth and ExpansionThe annual TRC JCCP/Idemitsu workshop

has shown clear growth over the five years

since it was launched in 2011 as a one-day

event with nine speakers and 36 attendees.

Dr Mikael Berthod, TRC Manager said: “At

that time the main purpose was to develop

technical exchange between TRC and

Idemistu engineers.”

In the second round the number of

attendees and speakers had gone up

slightly and in 2013 the workshop had

significant turn out in the number of

speakers and participating delegates.

Last year saw an increase in the number

of speakers which reached 12 while the

delegates number was 93.

Dr. Berthod said: “The 5th TRC JCCP/Idemitsu annual workshop went very well. Our Workshop had a new and bigger dimension. Speakers came from 22 different institutions.”

This year’s workshop saw a large

number of presentations, 37 in total, held

in two parallel sessions through eight

topics (Materials and Corrosion, Pilot

Testing, Computational Fluid Dynamics,

Sustainability and Asset Integrity, Catalysis,

Process Engineering, Process Modelling

& Simulation, Characterisation & Analysis)

reflecting TRC’s interests in variety of areas.

According to Dr. Berthod the quality

of the technical presentations and the

debate this year indicated that the 2015

round of the workshop has “reached an

excellent international level”.

“The Excellent case studies shown

taught all of us how collaboration could

be one of the keys to success in our

industry” he added.

There were four high level plenary

speakers that spoke at the first day. Dr.

Halim Hamid Redhwi, CEO of Dhahran

Techno-Valley Company and a professor in

the Chemical Engineering department of

KFUPM opened the plenary sessions.

Dr. Halim’s presentation demonstrated

how international collaboration between

academic and industrial entities is crucial in

bringing a process from the laboratory to

the commercial stage. Dr. Alejandro Rios

G. Professor of practice at Masdar Institute

of Science and Technology, provided an

impressive example of how collaboration

can lead to success in the development of

a new biojet fuel which has been recently

used for a demonstration flight by Etihad

airways in Abu Dhabi.

In the same development, Itaru

Matsuhiro, Executive Officer and General

Manager, Manufacturing & Technology

Dept. at Idemitsu Kosan Company and

Omar Al Hamed, Process Assurance

and Quality Department Manager at

TAKREER Ruwais Refinery, highlighted

the needs and expectations of refineries

from a Research & Development (R&D)

perspective. These two visions from Japan

and the UAE clearly demonstrate how

R&D is a key component for the future

development of a mature yet very active

refining industry.

Al Sayegh said: “TRC is of a strategic

importance to the evolution of our

refineries as it effectively contributes to the

advancement, optimisation and excellence

of refining technology and operations via

provision of support and expertise.”

FEATURE: TRC 5th Workshop

57Pipeline MARCH/2015www.pipelineme.com

n his role as vice president of business development with LUX Assure, Hesham El-Brollosy will

be leading the company’s continued Middle Eastern growth.Pipeline Magazine:Why is the Middle East region such an important area for Lux?

The Middle East region is vast with great

potential for growth, but is yet to apply the

latest technologies to serve its needs and

solve its existing problems. Bearing that in

mind when talking to the right audience will

generate great opportunities. We intend to

grow our Middle East business by focusing

on specific operators that set the standard

for the rest of the GCC companies.

PM: What are the opportunities in oil and gas industry?

Oil producers are the main focus, and

production optimisation and integrity

management play a significant role within

the organisations here. Getting LUX

Assure involved in their daily operations,

delivering regular monitoring and real time

information, which allows the operator’s

management to make informed decisions in

relation to the condition of their most critical

assets, would be the main target to achieve.

PM:What do you see as the main challenges facing the industry? Will lower oil prices impact LUX’s business?

The main challenges would be reaching the

right people to address technology issues.

Oil prices shouldn’t affect LUX

Assure’s plans for the region as operators

are spending more on existing asset

integrity to ensure production uptime

is maintained, while cutting costs and

shelving new developments.

PM: Are you seeing an increased demand for corrosion technologies in the Middle East?

Transmission systems are aged in

the Middle East; oil demand is so high

that operators cannot afford unplanned

shutdowns due to any corrosion/erosion

caused failure. So yes, plans to

implement corrosion inhibitors to

prevent these failures are in place.

I think the industry is facing a

corrosion crisis and there is a

definite focus on maintaining

existing assets rather than

investing in new ones.

PM: What innovations have you brought in terms of

corrosion products?LUX Assure has

and will continue to

develop cutting edge

unique technologies in the field of corrosion/

integrity management. These game changing

technologies provide cost effective vital

information to operators, whilst optimising

the use of expensive chemical inhibitors with

the potential for significant cost savings.

PM: Where are your main target markets?National Oil Companies, major

International Oil Companies and

independents currently operating within the

GCC countries such as Saudi Arabia, Kuwait,

Qatar, UAE, and Oman.

PM: How important will the newly launched Dubai office play in the firm’s expansion?

The establishment of our Dubai office

has been a significant development in

our plans for the Middle East region. The

office’s primary function will be to focus on

business development, however over time

as the region develops, we would not rule

out the establishment of other strategic

technical support centres within the area.

Once the Dubai office has achieved the

expansion planned, yes, the plan is to

operationally localise more into the main

countries mentioned above. Dubai is

considered a hub for sales in the Middle

East, so we will look to localise specific

account managers and operational

facilities for highly focused customer

commitment.

The significant investment in

establishing our new office in Dubai shows

commitment to clients within the Middle

East region. It confirms our ambitious

growth plans for the region and working

closely with our partners in UAE, KSA,

Kuwait, Oman and Qatar gives LUX Assure

an exciting opportunity to build a strong

sustainable business within the region.

We have seen significant growth recently

within the Middle East and earlier this year

appointed three Middle East agents, in

Muscat, Kuwait and Abu Dhabi.

The UK’s LUX Assure is targeting the Middle East region as a real area for growth, we speak to the firm’s new Middle East vice president of business development Hesham El-Brollosy about the firm’s regional strategy

www.pipelineme.comPipeline MARCH/201558

FEATURE: Q&A

wgpsn.com

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We are Wood Group PSNAnd, we are ready to help you get the best from your assets

The oil and gas industry has an image of being a male-dominated work place. OilCareers.com and Air

Energi’s 2014 H2 Global Workforce Survey recently looked into the oil and gas market with a particular focus on gender imbalance within the industry. More than4,300 employees and hiring managers took part in the survey, including a large number of respondents from the Middle East, which looked at the issues surrounding the lack of women taking onkey roles in the sector.

The survey reinforced the general

perception of the global oil and gas industry

as a male-dominated environment, indeed

88 per cent of employee and 68 per cent of

hiring manager respondents were male.

However, it is encouraging that a large

proportion of these recognised the positive

benefits that closing the gender imbalance

could make to the industry and participants

expressed a strong desire for change.

Fifty-nine per cent of respondents felt the

industry would gain access to a wider talent

pool at all levels if the gender gap was

addressed. Thirty-four per cent also felt it

would reduce the skills gap within the oil

and gas industry.

Mark Guest, managing director of

OilCareers.com said: “The results suggest

the issue is manifest by the lack of female

role models in senior and leadership

positions, and in the pressing need to

encourage more young women to take

up Science, Technology, Engineering and

Mathematics (STEM) subjects in higher

education. In the Middle East in particular,

there are very small numbers of females

working on rigs and in the offshore

environment in general.”

Mark Guest, OilCareers.com

FEATURE: Workforce Survey

61Pipeline MARCH/2015www.pipelineme.com

A new Global Workforce Survey evaluates the gender imbalance in the oil and gas sector, with a focus on the Middle East

GENDER IMBALANCE IN THEREGION’S ENERGY SECTORGG

The survey showed there are a large

proportion of respondents in the Middle

East who recognise the imbalance as a

concern with 52 per cent agreeing it is an

issue. In the oil and gas market, where a

lack of personnel in key disciplines is widely

acknowledged, increasing the number of

women in geophysics and engineering

could provide a competitive advantage for

any company that is willing to support them.

The survey assessed which factors

contribute to the gender gap. In the Middle

East, 55 per cent stated that HSE risks

associated with the physical working

environment played a key role in deterring

women from entering the industry. Forty-

nine per cent also stated that the industry

culture created by a male dominated

environment contributed to the imbalance.

Guest commented: “These findings

suggest that the imbalance is something of

a self-fulfilling prophecy. Industry culture is

much harder to change when there is a lack

of women entering the workplace, in turn

this is reflected in the greater proportion of

males applying for jobs within the industry

compared to females.

“This is exacerbated by the lack of

young women currently studying Science,

Technology, Engineering and Mathematics

(STEM) subjects in higher education in all

regions around the world.”

A step in the right directionThe 2014 ADIPEC conference in Abu

Dhabi addressed the issue through a series

of “Women in Industry’ events dedicated

to women in the oil and gas industry.

The events, including one sponsored by

OilCareers.com, featured panel discussions

with women leaders in the industry

including Lubna Bint Khalid Al Qasimi,

UAE Minister of international cooperation

and development and Kathy Pepper,

vice president Middle East and Russia at

ExxonMobil.

The panels covered topics including the role

of women in the energy industry; advancing

up the career ladder; balancing work and

family commitments and ensuring equal

opportunities for women in the workplace.

The issue has already gained attention in

the Middle East with high profile women

speaking out to encourage the education of

young girls. In Qatar for example, Sheikha

Mozah, wife of the former emir of Qatar and

a prominent member of the Royal Family,

has been extremely vocal in the area of

educating women.

There has also been significant success

in promoting the equality of women

through the region. Saba Al-Tukmachy,

career development manager at the

Emirates National Oil Company (ENOC)

recently spoke at the Leaders of the Future

Summit: Bridging the Gender Gap in Oil

and Gas detailing her personal journey in

the oil and gas industry and dispelling the

misconceptions of prejudice in the Middle

East oil sector.

The summit involved key players from

the GCC and MENA region coming

together to focus on the importance of

incorporating women in to the oil and gas

sector. The presentations included insights

into the most effective recruitment and

HR strategies to hire, train and retain more

women in a bid to bridge the gender gap.

Guest stated: “There are positive signs

that the gender imbalance in oil and gas is

recognised in the Middle East. In a region

of many cultures, it is clear that attitudes are

changing, resulting in more opportunities for

women and that can only be a good thing for

all of us in the industry.”

www.pipelineme.comPipeline MARCH/201562

FEATURE: Workforce Survey

The phrase ‘never put all youreggs in one basket’ has neverbeen as apt as it is now for many

in the oil industry reeling from thetumble in the price for a barrel of oil.

But not everyone is glum, just ask

the people at 3M. The multi-disciplined

Fortune 500 company famous for Scotch

tape and Post-it notes has hardly noticed

a bump from the dip in oil prices.

In fact, the only real worries that

plague 3M these days – if its 2014

earnings are anything to go by – tend

to be the mundanities of currency

fluctuations and the company’s own rate

of organic growth.

With an enviable position like that, it

is no wonder the Minnesota, US based

company just splurged a US$1 billion on

acquiring the ultrafiltration business of a

company that specialises in microporous

membranes and filters which remove

or separate microscopic particles from

any liquid from water to blood. The deal

is 3M’s largest in nearly a decade and is

all in the hope of raking back over $200

million in annual sales from a wide range

of markets and industries which has been

the company tradition.

It is just another example of how being

able to produce anything from reflective

safety clothing to downhole oil and gas

products such as its patented Glass

Bubbles technology have helped 3M,

From the Post-it note to the oil well, 3M is a company that has perfected the art of being in every part of your life without you knowing it – this is a mixed blessing when you’re also directly dealing with the oil and gas industry, discovers Emran Hussain

HIDDEN IN PLAIN SIGHT

FEATURE: 3M

65Pipeline MARCH/2015www.pipelineme.com

Wajid Abbas, Leader of 3M Gulf Oil and Gas Division

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FEATURE: 3M

67Pipeline MARCH/2015www.pipelineme.com

with its 46 technology platforms, weather

many uneasy market conditions to date.

3M’s oil and gas business is relatively

new, starting up in 2004 and divided

into four business segments: Upstream,

Midstream, Downstream and Retail and

Marketing. To help further cement its place

in the hydrocarbons industry, the company

recently opened an office under its relatively

new Mining, Oil and Gas Solutions Division

in Abu Dhabi, in order to serve the lucrative

UAE, Qatar and Kuwait markets.

The decision to open the division in the

UAE capital was clear for Wajid Abbas,

head or ‘Leader’ for the Gulf region for

the division.

“In addition to the UAE’s rich reserves

and solid production, our desire to be on

a short proximity to our customers, offer

them customised products and solutions,

as well as expand and strengthen our

operations in the Gulf region were the

main reasons behind this opening.

“We see the Middle East oil and gas

market being largely unaffected by the

oil price trend. ADNOC has reiterated its

commitment to the planned increase in

investment and production.”

“Additionally, companies realise and

value the measurable and unequivocal

positive impact 3M’s products add

to their operations and people and

therefore, we see our solutions doing

well,” he reiterates.

Diversifying into international markets

like the Middle East is nothing new for

the $31 billion company where some

65 per cent of its sales originate. The

company is heavily invested in R&D, says

Abbas as it ploughed $1.7 billion of its

2014 net income of $4.7 billion back into

its R&D division.

The sheer ubiquity of 3M products is

further exemplified in even this industry.

It is estimated that some 10,000 different

3M products are destined for the

upstream, downstream oil and gas sector

and everything in between.

“Although we are not known as an oil

and gas player we have about 10,000 of

3M products which end up in the oil and

gas segment, somehow.” Abbas claims.

With the growing sophistication of

the region’s oil and gas industry and in

line with international standards and

practices, there is an overall consensus

for health and safety, and with this

comes the need to acquire the latest

hardware which Abbas believes is a need

that will only grow.

“We have pipe coating products which

3M actually invented – the fusion bonded

epoxy coating,” he adds.

Abbas highlighted 3M’s Glass Bubbles

technology as being at the forefront

of upstream oil and gas applications

with their ability to be used in both

drilling fluids and downhole cementing

operations in order to reduce and control

bottom hole pressure.

“These products present exciting

opportunities for us,” he says but admits

that because these products are primarily

used by service companies such as

Schlumberger and Halliburton serving their

NOC customers, the fact that 3M is a raw

material provider is not always clear – a

status that Abbas would like to see change.

“Many of the end-users aren’t aware

that a lot of the products they use are

actually 3M products. So we want them

to learn about our offerings and raise their

awareness for our oil and gas solutions.”

“Since we have started focusing into

oil and gas, we are trying to get as much

data from our customers to find out

where their pain points are.”

As an example of this, Abbas describes

how 3M is working with ExxonMobil to

discover some groundbreaking solutions

to some regular problems the offshore oil

and gas industry experiences but he was

not at liberty to explain further.

“The Exxon Project is currently under

Research & Development. We’re working

closely with Exxon to develop some

revolutionary solutions to critical issues faced

on offshore sites. We will be able to disclose

more details at a later stage though.”

For many product and service

providers like 3M, corrosion protection,

particularly in the oil and gas sector is

a major area of growth in the region – a

side-effect of years of relentless pursuit

for hydrocarbons. Abbas tells Pipeline Magazine that although 3M already has

several solutions at hand to combat

corrosion, they may not be used to

their maximum benefit. He points to

existing products and technologies like

those used for well stimulation, pumps

and turbine coatings that 3M already

provides, as having a lot more mileage

left in terms of their applications.

“The Gulf region is a top priority market

for 3M globally and the launch of this new

Mining, Oil and Gas Solutions division

complements our objectives,” he explains.

“Our market-focused efforts give us

a coordinated approach to directly reach

out to the oil and gas customers and help

them obtain products that can withstand

the harsh environments and lifecycle

management challenges the oil and gas

industry faces.

“We need to up our game in terms

of [market] engagement, I still see lots

of growth that we can achieve [here] by

leveraging what we have already under

our belt,” he reiterates.

Although we are not known

as an oil and gas player we have about 10,000 of 3M products which end up in the oil and gas segment, somehow

©:

Sh

ell

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69Pipeline MARCH/2015

NEWS IN BRIEF

Metering specialist, Alderley has delivered a crude oil bi-direction proverand analysers for the Gazprom Neft run Badra Oilfield Development Phase II Project in Iraq’s Wasit’s province.

The scope covers the sales contract

for oil fiscal measurement using a

bi-directional prover. The system

includes an inbuilt proving tank for

in-house calibration. The crude oil quality

measurement unit comes complete with

a H2S Analyser, Reid Vapor Pressure

(RVP) Analyser, Pour Point Analyser and a

Salt in Crude Analyser.

Adrian Philips, managing director at

Alderley FZE commented: “This is the

second contract we have supplied for

the Badra Oil Field, both measuring the

fiscal transfer of oil. We are proud to be

working again with Gazprom in Iraq.”

The systems were engineered,

designed and manufactured at Alderley’s

Jebel Ali, Dubai, facilities.

Alderley FZE is part of the Alderley

Group and is the firm’s largest operating

company overseas. Alderley FZE provides

the full range of services for engineering,

supply and operation of bespoke metering

and produced water treatment solutions

to the oil and gas industry.

Alderley delivers oil measurementequipment to Badra field

Russia’s Lukoil has awarded a consortiumheaded by South Korea’s Hyundai Engineering a contract, worth US$2.66 billion, for the construction of the KandymGas Processing Plant in Uzbekistan.

The facility will have an annual capacity

of 8.1 billion cubic metres of gas and

will process sour natural gas from the

Kandym gas fields located in the Bukhara

Region of Uzbekistan to produce treated

natural gas and stable gas condensate, as

well as solid and granulated sulfur.

It is scheduled to be completed by the

second half of 2018.

Lukoil said in a statement that

the construction of the Kandym Gas

Processing Plant is the Russian firm’s

largest investment in Uzbekistan.

Lukoil has been implementing the

Kandym project in partnership with the

National Holding Company Uzbekneftegaz

since 2004 as part of the Kandym-

Khauzak-Shady-Kungrad PSA. The Kandym

group consists of 6 gas condensate

fields – Kandym, Kuvachi-Alat, Akkum,

Parsankul, Khoji and West Khoji.

Hyundai awarded Kandym gas deal in Uzbekistan

Project Update

Production at the Badra oil field is expected to reach 170 thousand bpd by 2017

Subsea 7 wins AussiePersephone contractOslo-listed Subsea 7 has announced

that it won a new subsea contract on

Woodside Petroleum’s Persephone

development off the coast of Western

Australia. The Persephone Project

consists of two wells tied into a subsea

production manifold with production

fluids transported to the existing North

Rankin Complex (NRC). The contract

comprises fabrication, transportation,

installation and pre-commissioning

activities. The firm’s Seven Eagle

vessel will perform all of the offshore

activities. The deal also includes

subsea installation and diving services.

GeoPark finds oil in ColombiaThe Santiago-based GeoPark has found

oil after drilling its exploration well Tilo

onshore Colombia’s Llanos basin. The

Tilo 1 well is located on the Llanos

34 Block in Colombia. The prospect

targeted two principal productive

reservoirs of the Block: Guadalupe

(main target) and Mirador (secondary

target) sandstones. GeoPark drilled

and completed the Tilo 1 exploratory

well to a total depth of 11,293 feet.

A production rate of approximately

1,000 barrels of oil per day was found.

Wood Group Kenny wins FEED contract for offshoregas project in AustraliaWoodside has awarded Wood Group

Kenny a FEED contract of the flowline

system for its Greater Western Flank

Phase 2 (GWF-2) development for the

North West Shelf Project, offshore

Western Australia. The scope of work

includes engineering and procurement

support services for the 16” GWF-2

corrosion resistant alloy rigid flowline

system, flowline end termination

structures, inline tee assembly

structures, mid connection structure

and subsea tie-in spools.

NEWS IN BRIEF

German soil compaction specialist WeberMT has partnered with GENAVCO by appointing the latter as their exclusive distributor for the UAE. Weber MTmanufactures state of the art, premiumquality Compaction Equipment madein Germany. The product range includesWalk behind Rollers, Plate Compactors, Vibratory Tampers, Pavement Saws andConcrete Compaction Equipment.

GENAVCO, teamed up with Weber MT

to complement its product range to fill

the gap of light compaction equipment.

“We put quality, service and the

satisfaction of our customers on the

top priority. Our partnership with Weber

MT puts us in a position where we can

offer to our customers a reliable product

packed with innovation that will allow

them to get the job done faster with high

productivity”, described Isam Abu Nabah,

president of GENAVCO.

A good example of Weber MT’s

innovations is COMPATROL, the first

compaction control system for reversible

soil compactors. The system developed by

Weber MT provides uniform compaction

of the soil and cuts the number of

unnecessary, redundant compacting passes

by up to 25 per cent.

GENAVCO introduces German soilcompaction technology to UAE

New Honeywell UniSim improves operator competency

Honeywell Process Solutions (HPS) has

announced its new UniSim Competency

Suite, which is claimed to improve

operator competency and help prepare

them faster through realistic training

experiences for console and field

operators in the process industries.

“In the near future, many operators at

industrial plants in developed countries

will retire, while process industries in

emerging economies will continue to face

the challenge of critical skill shortages,”

said Ali Raza, vice president and

general manager for Honeywell Process

Solutions’ Advanced Solutions business.

“The expanded UniSim Competency

Suite helps our customers train its

workforce faster in a more realistic

environment to drive safe, incident-free,

efficient startups and ongoing operations.”

LoneStar awardedagreement by Shell GlobalSolutionsThe LoneStar Group has recently been

awarded a five-year global Enterprise

Framework Agreement (EFA) with Shell

Global Solutions International B.V. for

the supply of stud bolts and fasteners.

The contract includes an option for a

five-year extension. The global EFA has

been signed with LoneStar Group, a

manufacturer and supplier of special

nuts, bolts, machined components,

gaskets and seals to the energy sectors

globally. As detailed in the contract, the

scope of supply will focus on Shell’s

activities in North America, Middle

East, Asia, Europe and Australia. This

contract further strengthens our long-

standing relationship with Shell, their

EPC contractors and supply chain

companies worldwide.

NEWS: InternationalTOOLS & TECHNOLOGY

70 www.pipelineme.com

Saudi Aramco has been named asa benefactor in a US$7.7 million investment in Scotland based drillingand intervention technology specialist, Paradigm Drilling Services to help it broaden its product portfolio and extend its geographical activity.

The investment by Saudi Aramco Energy

Ventures (SAEV), the corporate venture

subsidiary of the Saudi oil giant, made in

partnership with London based investment

firm Buckthorn Partners, will also allow

Paradigm to bolster its research and

development (R&D) activities.

The deal also allows Paradigm to

potentially receive additional finance to

fund acquisitions with further money made

available as the business looks to expand

its portfolio of technology.

The business has a number of new

tools in the development stage, with

a particular focus upon technology to

enhance the industry’s capability in

extended reach drilling.

Fraser Innes, managing director of

Paradigm Drilling Services, said: Despite

the gloomy market conditions at present,

we have an exciting range of growth

opportunities ahead in technical and

geographic terms. “With the support of

our new investors we will also accelerate

the development of our Horizontal Drilling

System which has the potential to change

the way that all horizontal wells are drilled.

Technology like this will be essential to

improve the economics of drilling horizontal

and extended reach wells and this is more

relevant today than ever.”

Saudi Aramco invests in Scottish drilling technology group

Pipeline MARCH/2015

www.pipelineme.com

TOOLS & TECHNOLOGY

NEWS IN BRIEF

Emerson Process Management has introduced the compact 1410D Smart Wireless Gateway for wireless networkapplications where gateway installation locations are limited, in difficult safe areas that must connect to distantwireless application networks.

Wireless Gateway installations can be

difficult when antenna distances are limited

and there are few safe locations. The 1410D

Gateway uses the Smart Wireless 781

Field Link to enable flexible remote antenna

location up to 200 meters, and the separate

possibility of connection to hazardous areas

with intrinsic safety protection.

“The new Gateway allows users

with limited safe locations to quickly

and easily add to and strengthen their

wireless network,” said Bob Karschnia,

vice president of wireless for Emerson.

“Smart Wireless Gateways empower Smart

Wireless networks to supply better data,

enabling process manufacturers to increase

safety, environmental accountability and

process performance.”

A smaller size and DIN-Rail mount

capability makes the 1410D is ideal for

limited cabinet space requirements. The

built-in layered security functions ensure

that the network stays protected at all

times. Additional devices can be added

quickly and easily without the need to

configure the communication paths. The

Gateway manages the wireless network

automatically and delivers greater than 99.9

per cent data reliability.

Emerson’s new wireless gateway

A new information hub has beenlaunched to showcase best practice in sealing technology in a bid to provide“solutions for tomorrow’s engineering”.

The Knowledge Center by Trelleborg

Sealing Solutions aims to bridge the gap

between design engineers’ needs and

standard technology documentation,

bringing useful information together as part

of one digital portal.

It is aimed at design engineers working

in industries that require sealing technology,

including fluid power, the chemical

processing industry, oil and gas, automotive

design and life sciences.

The website is fully compatible

across all platforms including tablets and

smartphones – a response to the latest

trends, with engineers increasingly turning

to mobile devices to find technical support

and solutions.

The online tool contains ‘bite size’

information, including technical articles

and sealing advice – with the option to

download extended articles and white

papers. There is also an ‘ask the experts’

section where people can send questions

directly to Trelleborg’s technical team.

David Brown, managing director for

Trelleborg Sealing Solutions in the UK, said:

“The Knowledge Center is about providing

solutions for tomorrow’s engineering.

“This isn’t about us showcasing our

products, far from it, the Knowledge Center

is non-promotional; it is a resource tool for

engineers working in highly-technical fields

related to sealing.

“We are a world leader in engineered

polymer solutions that seal, damp and

protect critical applications in demanding

environments. This positions us perfectly to

share both useful and essential information

with engineers working in the same

industries as us.

“We have built up a significant amount

of knowledge and information and this is a

way of sharing it.”

New online sealing technology resource centre for engineers

The online hub can be accessed anywhere

71Pipeline MARCH/2015

Eversendai Offshoreselects AVEVA Marine forIntegrated Engineering &DesignAVEVA announced that Eversendai

Offshore, a brand new customer,

has made a significant investment

in AVEVA’s Integrated Engineering

& Design solutions through its

deployment of AVEVA Marine. The

agreement includes the full suite

of AVEVA Marine engineering and

design applications that will be

used on a series of new marine and

offshore projects, including topsides,

platforms and ships. Rapid installation

and minimal training requirements

have allowed Eversendai Offshore

to immediately begin using AVEVA

Marine on major new contracts.

The software was up and running

in a matter of days with minimum

disruption to engineering and business

processes. Eversendai will operate

AVEVA’s software across a number of

offices in the Middle East and Asia.

Joint study on sour oil/gas effect on polymer lined pipelines launched A 30-month joint study project (JIP)

involving Saudi Aramco has been

launched to examine the extent

of corrosion damage from sour

hydrocarbon fluids in polymer lined

carbon steel pipelines. Scotland-based

Swagelining Limited and The Welding

Institute (TWI) which registers and

certifies welding personnel around the

world are the other study partners. A

total of around US$462,000 has been

invested between the three parties in

the project which began in October

last year. Dr Steve Brogden, technical

engineering manager at Swagelining

Limited, said: “We are delighted to

be working closely with Saudi Aramco

and TWI on this JIP. When compared

with corrosion resistant alloys,

polymer lining systems are attracting

growing interest within the pipeline

industry. This comes as a result of

significant cost advantages, increased

corrosion prevention.”

www.pipelineme.com

PEOPLE

72

NEW APPOINTMENTS

New Apache CEO takes over from Farris

John J.

Christmann, IV,

48, executive

vice president

and chief

operating officer,

North America at

Apache Corporation succeeded

longstanding president and CEO G. Steven

Farris who announced his immediate

retirement in January. Christmann has

been with Apache for 18 years and has

served in a variety of leadership roles.

Most recently, he served as executive vice

president and chief operating officer - North

America, where he has been focused on

aligning the right people, acreage and

strategy to ensure Apache’s future growth

and success in North America. As the

region vice president - Permian Region,

from 2010 through 2013, he established

Apache’s Midland office and oversaw a

doubling of production during his tenure.

Golar LNG brings backprevious CEO Golar LNG Limited has appointed Gary

Smith, who has previously been CEO of

the company to take over once again as

the company’s head. His appointment

comes in light of the stepping down

of Doug Arnell who made the decision

due to family reasons. Smith is well

known to Golar and who brings with

him a track record of leadership and

operational management success in the

mid-stream oil and gas, shipping and

LNG businesses. Smith’s career spans

35 years, including 25 years with Shell

and Caltex Australia (a Chevron affiliate)

in roles including general manager LNG

Shipping for Shell (STASCO) and general

manager Refining, Supply and Distribution

for Caltex Australia. In the period between

March 2006 and September 2009 he

was CEO of the then smaller Golar LNG

Ltd, a position he relinquished to return

to his native Australia for family reasons.

Since May 2014 Smith has worked

as a consultant for Golar with special

emphasis on increasing the utilisation of

the shipping fleet.

Wood Group moves UK CFO to group CFO spotSteve Nicol has been appointed as chief

financial officer (CFO) of Wood Group PSN

(WGPSN). Effective February 2015, Nicol

moves into the role from his previous

position as CFO of WGPSN’s UK operations.

Steve succeeds David Kemp in the role

of CFO of WGPSN. Kemp will take up the

post of CFO of Wood Group following the

retirement of Alan Semple in May this year.

Nicol has more than 17 years’ oil and gas

experience, joining the business in 1997. He

has gained in-depth experience of reporting,

auditing, mergers and acquisitions, and

financial management and has been a key

member of the WGPSN UK management

team. In his new position, Nicol will focus on

supporting WGPSN’s growth plans and look

to deliver efficiencies across the business.

Former Foster Wheeler exec joins KBR board

KBR, Inc.

announced the

appointment of

Umberto della

Sala as a

member of the

KBR Board of

Directors. Della Sala retired from Foster

Wheeler AG., a global engineering,

procurement and construction company, on

December 21, 2013. Della Sala spent his

entire career with Foster Wheeler starting

in 1973 and enjoying positions of increasing

responsibility culminating in his serving as

its president and chief operating officer

from 2007 until his retirement and as its

interim Chief Executive Officer from

October 2010 through September 2011. He

also served on the Foster Wheeler Board of

Directors from 2011 to May 2014.

Topaz appoints new CFOTopaz Energy and Marine, an international

offshore support vessel owner with

operations in the Middle East, Caspian and

West Africa has appointed Jay Daga as

chief financial officer. Daga has been with

Topaz for 15 years, holding a number of

finance positions of increasing responsibility,

most recently as deputy CFO. He has

successfully led Topaz’s two latest capital

raising initiatives: one being the company’s

US$350 million corporate bond issue in 2013

and its recent $75 million equity injection by

Standard Chartered Private Equity.

Alderley appoints new sales manager for Iraq

Alderley FZE, a

subsidiary of

Alderley plc, has

appointed Ra’ed

Muayad Mahdi as

Sales manager to

support Alderley’s

business and clients in Iraq. Mahdi has a B.

Sc. in Chemical Process Engineering and

joins the Alderley team with over 15 years’

experience working within the oil and gas

Industry in the Middle East region. He will be

based in Jebel Ali, Dubai and concentrate on

the promotion of Alderley’s metering and

controls systems business. Alderley FZE is

part of the Alderley Group and is the firm’s

largest operating company overseas. Alderley

FZE provides the full range of services for

engineering, supply and operation of bespoke

metering and produced water treatment

solutions to the oil and gas industry.

New business development manager for Camcon OilIntelligent gas lift solutions provider

Camcon Oil announced the appointment

of Abdel Ben Amara as Business

Development manager for the Middle

East and North Africa (MENA) region.

Based in Dubai, he will report to the

Camcon CEO. Amara will be responsible

for leading the development and sales

of Camcon’s groundbreaking Digital

Intelligent Artificial Lift (DIAL) solutions

portfolio to oil operators in the region and

for building and managing a distribution

network. Amara joins Camcon with over

11 years’ experience in the oil, gas and

manufacturing industries. He has spent the

last year as head of Business Development

& Engineering Services at World Petroleum

Partnership, preceded by senior roles for

PCM and Piolax. He has a Masters Degree

in Engineering from the Ecole Nationale

d’Ingénieur de Metz in France.

Pipeline MARCH/2015

73Pipeline MARCH/2015SPONSORED BY SEMCO MARITIME

PREPARED BY: Ian Anderson, Semco Maritime [email protected] For updates, comments and corrections - Tel (Mob): 971 50 6463350

Rigs UpdateCOMPANY RIG TYPE MAX.WD MAX.DD OPERATOR LOCATION CONTRACT STATUS OP. STATUS TOP DRIVE

ABAN LLOYD ABAN 2 BETH.250MS 270 25000 ONGC INDIA RAVVA FIELD Q2/2016 DRILLING TDS 11 SAABAN LLOYD ABAN 3 (IDA) LeT 53SC 300 20000 ONGC INDIA (IOC) Q1/2018 DRILLING TDS 11 SAABAN LLOYD ABAN 4 (HITDRILL 1) BMC 300IC 300 21000 ONGC INDIA Q1/2018 DRILLING CANRIG 1050E-2SPABAN LLOYD ABAN 5 F&G L 780 MOD 2. 300 25000 NONE SHARJAH .UAE IDLE VARCOABAN LLOYD ABAN 6 JUBILEE CLASS 250 IOOC IRAN FEB.2015 DRILLING VARCOABAN LLOYD ABAN 7 (ROWAN TEX) LeT 52 250 20000 NONE SHARJAH .UAE IDLE VARCOABAN LLOYD ABAN 8 BMC PACIFIC 375 375 35000 PETROPARS IRAN - SOUTH PARS 12. DRILLING VARCO TDS 85A

ABAN LLOYD DEEP DRILLER 1 BAKER 375 PACIFIC 375 30000 PEMEX MEXICO Q3 - 2016 DRILLING VARCO HPS-800-E-DC-2S-SG

ABAN LLOYD DEEP DRILLER 2 KFELS MOD V B 350 35000 IRANIAN CONTRACT IRAN OCT.2015 DRILLING VARCO HPS-1000-2E-AC-KT

ABAN LLOYD DEEP DRILLER 3 KFELS MOD V B 350 35000 PETRONASCARIGALI MALAYSIA Q4/2015 DRILLING VARCO HPS-1000-2E-AC-KT

ABAN LLOYD DEEP DRILLER 4 BAKER 375 PACIFIC 375 30000 IRANIAN CONTRACT IRAN OCT.2015 DRILLING VARCO -HPS 800-E-DC-

ABAN LLOYD DEEP DRILLER 5 KFELS MOD V B 350 35000 PV DRILLING VIETNAM Q2 - 2015 DRILLING VARCO HPS-1000-2E-AC-KT

ABAN LLOYD DEEP DRILLER 6 KFELS MOD V B 350 35000 PETROPARS IRAN - SOUTH PARS 12. AUG.2015 DRILLING VARCO HPS-1000-2E-AC-KT

ABAN LLOYD DEEP DRILLER 7 BAKER 375PACIFIC 375 30000 PEMEX MEXICO DRILLING VARCO -HPS 800-E-DC-

ABAN LLOYD DEEP DRILLER 8 BAKER 375PACIFIC 375 30000 SHELL BRUNEI BRUNEI DRILLING VARCO - HPS 1000-2E-AC-KT

ADC ARABDRILL 17 LeT 82 SC 300 20000 ARAMCO KSA LAMPRELL SHARJAH YARD YARDSTAY VARCO TDS -3ADC ARABDRILL 20 MPSV (UTILITY) 135 N/A KJO AL KHAFJI , KSA ONGOING WORKING N/ADELTA MARINE SERVICES DELTA 22 BMC 150 L/Q 200 N/A BUNDUQ OIL ASRY - BAHRAIN L/Q PLATFORM WORKING N/AADC ARABDRILL 8 BMC 150 150 20000 KJO AL KHAFJI , KSA JULY 2017 DRILLING VARCO TDS -3

ADC (EX BIMA) ARABDRILL 40 MSC 4 LEGS 160 N/A AL KHAFJI KSA QI/2016 NON DRILLING SUPPORT N/A

ADC ARABDRILL 50 KFELS MOD V B 300 30000 ARAMCO KSA JULY 2017 DRILLING VARCO TDS 8-AADC ARABDRILL 60 KFELS B CLASS 400 35000 ARAMCO AL KHAFJI , KSA DRILLINMG VARCO TDS 8ADC ARABDRILL 70 KFELSBCLASS 400 35000 ARAMCO / KJO SINGAPORE YARD UNDER CONSTRUCTION DELIVERY END 2015 VARCO TDS 8ADC (WEST CERES) ARABDRILL 30 KFELS MOD V B 300 30000 KJO AL KHAFJI , KSA EXTENSION PENDING DRILLING VARCO TDS 8AAMS/EZION TRANSOCEAN 136 F&G L780 MOD2 300 25000 SOLD TO ATLANTIC - EZIONAMS/EZION TIBERON 1 CFEM T-2600 C1 300 SOLD TO ATLANTIC - EZION CONVERT TO L/QAMS/EZION TIBERON 2 F&G L70 MOD 2 300 25000 SOLD TO ATLANTIC - EZIONAMS/EZION SHELF EXPLORER CFEM T-2005-C 300 MAERSK OIL DK. DENMARK SOLD TO ATLANTIC - EZION CONVERT TO L/QANADARKO EPU AL MORJAN SELF.EL. (EPU) ANADARKO AL RAYAN - QATAR IN SERVICE N/AARAMCO SAR 201 (SAMDP3) BAKER 200 200 25000 ARAMCO KSA-TANAJIB ON CONTRACT ARAMCO DRILLING VARCO TDS -3ARAMCO SAR 202 KFELS SUPER B 450 35000 ARAMCO KSA ON CONTRACT ARAMCO DRILLING VARCOCOSL COSL CRAFT KFELS MOD V B 400 30000 GLOBAL PETROTEK IRAN END 2014 DRILLING NOV TDS - 8SACOSL COSL FORCE BAKER PACIFIC 375 30000 GLOBAL PETROTEK IRAN END 2014 DRILLING NOV HPS 750-E-AC-SGCOSL COSL POWER BAKER 375 FREEDO 375 30000 PTTEP,THAILAND THAILAND Q3/2015 DRILLING VARCO HPS - 800COSL COSL STRIKE KFELS MOD V B 400 30000 GLOBAL PETROTEK IRAN - DANA DRILLING DRILLING NOV TDS - 8SACOSL COSL SUPERIOR BAKER PACIFIC 375 30000 CNOOC BLOCK C, QATAR MID 2015 DRILLING NOV HPS 750-E-AC-SGEGYPTIAN DC EL QAHER 1 BAKER 375 PACIFIC 375 30000 PETROBEL EGYPT - MED AUGUST 2015 DRILLING VARCO HPS 800EGYPTIAN DC EL QAHER 2 BAKER 375 PACIFIC 375 30000 PETROBEL EGYPT - MED DRILLING VARCO HPS 800EGYPTIAN DC KAMOSE (FD 3) LEV.111C 300 20000 EGYPT OPTION PENDING DRILLING VARCO IDSEGYPTIAN DC SENUSRET MODEC 200C-45 180 20000 ARAMCO KSA Jul-16 DRILLING VARCO TDS -3EGYPTIAN DC SNEFERU (NEWBUILD) BAKER 375 375 30000 ARAMCO KSA AUG 2015 + I YEAR OPTION DRILLING NOV HPS 750-E-AC-SGEGYPTIAN DC ZOSER HITACHI ZOSEN 250 20000 SUCO GULF SUEZ DRILLING VARCO TDS -3ENSCO ENSCO 54 F&G L780 MOD2 300 25000 ARAMCO KSA 3 YEARS PLUS OPTIONS DRILLING VARCO TDS - 4HENSCO ENSCO 58 F&G L 780 MOD 2. 300 25000 ARAMCO KSA JAN.2015 DRILLING MH - DDM650CENSCO ENSCO 76 LeT S116C 300 25000 ARAMCO RED SEA NOV.2018 DRILLING VARCO TDS 8SAENSCO ENSCO 84 LeT 82 -SD-C 250 20000 ARAMCO KSA NOV.2018 DRILLING VARCO TDS 4HENSCO ENSCO 88 Let 82 SD 250 20000 ARAMCO KSA Q2/ 2016 DRILLING VARCO TDS 4HENSCO ENSCO 91 HITACHI C-150 270 20000 ARAMCO KSA JAN.2015 DRILLING VARCO TDS-100ENSCO ENSCO 94 HITACHI ZOSEN 250 20000 ARAMCO KSA OPTION PENDING DRILLING VARCO TDS -4HENSCO ENSCO 96 HIT.ZOSEN C-250 250 25000 ARAMCO KSA NOV.2018 DRILLING VARCO TDS -3ENSCO ENSCO 97 LeT 82 SCD 250 25000 ARAMCO KSA NOV.2018 DRILLING VARCO TDS -3EURASIA DRILLING CO. NEPTUNE LET 116E 350 30000 DRAGON OIL CASPIAN CASPIAN SEA DRILLING LEWCO 750 TONEURASIA DRILLING CO. MERCURY LET 116E 350 30000 DRAGON OIL LAMPRELL HAMRIYAH UNDER CONSTRUCTION DELIVERY NOV.2014 LEWCO 750 TONGLOBAL PETRO TECH GLOBAL PEARL LeT 82 SD - C 250 20000 NONE STACKED SHJ PORT GLOBAL PETRO TECH STACKED VARCO TDS 3HGREAT OFFSHORE KEDARNATH LeT 84S 300 20000 ONGC INDIA NOV. 2015 DRILLING NO INFO

GREATSHIP GREATDRILL CHAARU LET SUPER 116E 350 30000 NEWBUILD LAMPRELL HAMRIYAH ONGC TO 2020 ON DELIVERY DELIVERY Q3/2015 LEWCO 750 TON A/C DIRECT

GREAT SHIP GREATDRILL CHAAYA LET SUPER116E 350 30000 ONGC INDIA DELIVERED JAN.7TH. DRILLING LEWCO 750 TON A/C DIRECT

GREATSHIP CHETNA KFELS MOD V B 300 30000 BRITISH GAS INDIA DRILLING VARCO TDS 4H.GULF DRILLING CO QATAR AL DOHA (GULF 1) MD -T-76J8 250 20000 QATAR PETROLEUM DOHA JUNE 2018 DRILLING VARCO TDS 4GULF DRILLING CO QATAR AL KHOR (GULF 4) KFELS MOD V B 300 30000 SHELL QATAR QATAR - BLOCK D Apr-15 DRILLING VARCO TDS 8GULF DRILLING CO QATAR AL RAYAN (GULF 2) F&G L780 MOD2 300 25000 OXY QATAR IDD EL SHARGI RO6 MARCH 2015 DRILLING VARCO TDS 4.GULF DRILLING CO QATAR AL WAJBAH (GULF 3) LET 82 IC 275 25000 OXY QATAR ISS-34B IDD EL SHARGI MAY 2018 DRILLING VARCO TDS 4.NOV. 2015 AL ZUBARAH (GULF 5) KFELS MOD V B 300 30000 QATAR PETROLEUM QATAR Q1/2018 DRILLING VARCO TDS 8GULF DRILLING CO QATAR AL JASSRA PACIFIC 400 CLASS 400 30000 MAERSK OIL QATAR AL SHAHEEN FIELD JUNE 2016 DRILLINGGULF DRILLING CO QATAR ZIKREET (ENSCO 95) HIT.ZOSEN C-250 250 25000 RAS GAS L/Q JOB QATAR JUNE 2018 L/Q RIG VARCO TDS 4-HGULF DRILLING CO QATAR HALUL KFELS MOD V B 300 30000 QATAR PETROLEUM QATAR Q4 2019 STILL UNDER BUILD DELIVCERY Q4/2014GULF DRILLING CO QATAR DUKHAN KFELS MOD V B 300 30000 QATAR PETROLEUM QATAR Q4 2019 MOBILIZING VARCO TDS 8GULF DRILLING CO QATAR MSHEIREB(VICKSBURG) LeT 116C 300 25000 OXY, QATAR. IDD EL SHARGI RO6 JULY 2018 MOBILIZING VARCO TDS 4SGULF PETROLEUM INVEST. TRANSOCEAN NORDIC CFEM-T-2601-C 300 25000 NONE UAE WATERS UPGRADE AWAITED STACKEDHARRINGTON WEST JANUS GUSTO(FEMCO) 330 30000 IRAN DOCKED HAMRIYAHHALLWORTHY (FORESIGHT) FORESIGHT D.5. (144) FELS 160 12000 IOOC IRAN DRILLING NOHALLWORTHY (FORESIGHT) FORESIGHT D.7 LeT 116C 350 20000 NONE STACKED MIDDLEEAST YARDWORKS VARCO TDS 4H.

Working status of Jack-up rigs Middle East, India & Egypt

74 Pipeline MARCH/2015 SPONSORED BY SEMCO MARITIME

Working status of Jack-up rigs Middle East, India & Egypt

Rigs Update

COMPANY RIG TYPE MAX.WD MAX.DD OPERATOR LOCATION CONTRACT STATUS OP. STATUS TOP DRIVE

SOLD TO FOCUS ENERGY HERCULES 170 SONAT-C 170 16000 ASRY YARD BAHRAIN BOUGHT BY FOCUS ENERGY RE-ACTIVATION VARCO TDS 3HERCULES DRILLING AMBERJACK LIFTBOAT STANDBYE RAK N/AHERCULES DRILLING HERCULES 156 BMC 200 IC 170 16000 ASRY YARD BAHRAIN STACKED VARCO TDS 1HERCULES DRILLING HERCULES 261 LeT 82 - SD-C 250 25000 ARAMCO KSA LONG TERM ARAMCO MOBILIZING VARCO TDS 3HHERCULES DRILLING HERCULES 262 LeT 82 - SD-C 250 25000 ARAMCO KSA Q4/2019 DRILLING VARCO TDS 3HHERCULES DRILLING HERCULES 266 LeT 82 - SD-C 250 25000 ARAMCO KSA UNTIL Q1/2016 DRILLING VARCO TDS-3HERCULES DRILLING WHALESHARK LIFTBOAT ARAMCO KSA WORKING N/AIOOC AL BORZ LeT42 250 20000 PEDCO ABUZAR - IRAN DRILLINGIOOC SHAHID REJAIA HITACHI ZOSEN-C 300 25000 IRAN - KISH STACKED TESCO 1350HP 500ELIJAGSON DEEP SEA MATDRILL BMC 250M 250 20000 ONGC INDIA DRILLING NOJAGSON DEEPSEA FOSSIL F&G L780 MOD2 300 25000 INDIA Q1/ 2018 DRILLINGJAGSON DEEPSEA FORTUNE F&G L780 MOD2 300 25000 INDIA Q1/ 2018 DRILLINGJAGSON DEEPSEA TREASURE LEV 111C. 300 20000 INDIA IDLEKS DRILLING KS JAVA STAR 2 F&G SUPER M2 300 30000 ENDING VIETSOPET VIETNAM VUNG TAU RIG SERVICES YARDSTAY VARCO TDS 8SAKS ENERGY/ATLANTIC KS MEDSTAR 1. MODEC 200C-45 225 25000 PETROBEL EGYPT SUEZ MAY 2015 (1 YEAR OPTION) DRILLING VARCO TDS -3JINDAL PIPES JINDAL PIONEER LET SUPER 116E 350 30000 NEWBUILD LAMPRELL HAMRIYAH DELIVERY Q1/2015 VARCO TDS 8SAJINDAL PIPES JINDAL STAR LET SUPER 116E 350 30000 ONGC INDIA CONTRACTED DRILLING VARCO TDS 8SAMENA DRILL MENADRILL 2. F&G SUPER M2 300 30000 PEMEX MEXICO MOBILIZING TRIALS VARCO TDS 8SAMILLENIUM OFFSHORE SERVICES AHMED LeT 40 L/Q 300 N/A GUPCO EGYPT SUEZ EN ROUTE UAE - YARDSTAY ACCOMODATION N/A

MILLENIUM OFFSHORE SERVICES DEEMA LeT 150 L/Q 170 N/A HYUNDAI /RAS GAS QATAR UAE - SHARJAH PORT YARDWORKS N/A

MILLENIUM OFFSHORE SERVICES LEEN SE.UTILITY L/Q 140 N/A ZADCO ABU DHABI OPTION EXCERCISED ACCOMODATION N/A

MILLENIUM OFFSHORE SERVICES MARINIA SE.UTILITY L/Q 160 N/A OXY QATAR QATAR UAE - SHARJAH PORT YARDWORKS N/A

MILLENIUM OFFSHORE SERVICES FRONTIER (TRID IV) L/Q PLATFORM 300 N/A AUSTRALIA MOBILIZING ON CONTRACT ACCOMODATION N/A

MILLENIUM OFFSHORE SERVICES BURJ LeT Class 53 350 25000 UAE UAE - SHARJAH PORT YARDWORKS N/A

MILLENIUM OFFSHORE SERVICES TRIDENT 1 SE.UTILITY L/Q 200 N/A UNDER CONTRACT ACCOMODATION N/A

NABORS NABORS 240 (OM 8) BMC 150-IC 160 20000 NONE ABU DHABI STACKED AND AVAILABLE CANRIG 1050E 500TNABORS NABORS 655 (143) FELS 160 12000 ARAMCO ASRY YARD BAHRAIN CONTRACT TO 2017 YARD -BACK TO KSA CANRIG 8035ENABORS NABORS 656 (KEY VIC) LeT 80 250 25000 ARAMCO KSA CONTRACT TO 2017 DRILLING CANRIG 1050ENABORS NABORS 657 MITSUI F550 250 20000 ARAMCO KSA CONTRACT TO 2015 DRILLING NAT. PS 2-500NABORS NABORS 867 (145) FELS C 150 12000 NONE ABU DHABI YARD SOLD TO AL ZAKHER MAR. CONVERT TO L/Q NEW NAME - REALM 1NABORS (OCEAN WARWICK) NABORS 660 LEV 111 300 20000 ARAMCO KSA Q4/2016 DRILLING VARCO TDS-3

NDC AL BZOOM BMC 160-C 110 18000 ADMA-OPCO ABU DHABI ONGOING CONTRACT DRILLING LEWCO DDTD-500TONS

NDC AL GHALLAN LeT 82 S 150 20000 ZADCO UAE, ABU DHABI ONGOING CONTRACT DRILLING NONDC AL HAIL KFELS MOD V B 350 30000 ADMA-OPCO UAE, ABU DHABI ONGOING CONTRACT DRILLING VARCONDC AL ITTIHAD LeT 82 S 150 20000 ADMA-OPCO UAE, ABU DHABI ONGOING CONTRACT DRILLING NONDC AL YASAT HITACHI ZOSEN-C 180 20000 ABU DHABI YARD UAE, ABU DHABI ONGOING CONTRACT DRILLING NAT. PS 2-500NDC BEYNOUNA BMC 160-C 150 18000 ZADCO UPPER ZAKUM AD. ONGOING CONTRACT DRILLING TESCO 500 HSNDC BRAKAH BMC 150-C 150 18000 ADMA-OPCO ABU DHABI ONGOING CONTRACT DRILLING TESCO 1350HP 650ELINDC DELMA BMC 150-C 150 18000 ADMA-OPCO ABU DHABI ONGOING CONTRACT DRILLING NONDC DIYINA HITACHI ZOSEN-C 180 20000 ADMA-OPCO UPPER ZAKUM UZ 416 RIAP PLANNED DRILLING NAT. PS 2-500NDC JUNANA HITACHI ZOSEN-S 150 20000 ZADCO ABU DHABI ONGOING CONTRACT DRILLING VARCO TDS-4 NDC AL GHWEIFAT BARGE ADMA-OPCO ABU DHABI ONGOING CONTRACT

NDC (RIG 1) NDC MAKHASIB LeT SUPER 116E 200 30000 ADMA-OPCO ABU DHABI DEC. 2015 DRILLING LEWCO 750 TON A/C DIRECT

NDC (RIG 2) NDC MUHAIYIMAT LeT SUPER 116E 200 30000 ADMA-OPCO ABU DHABI UNDER CONTRACT DRILLING LEWCO 750 TON A/C DIRECT

NDC (RIG 3) QUARNIN LeT SUPER 116E 200 30000 ADMA-OPCO ABU DHABI UNDER CONTRACT DRILLING LEWCO 750 TON A/C DIRECT

NDC (RIG 4) MARAWAH LeT SUPER 116E 200 30000 ADMA-OPCO ABU DHABI UNDER CONTRACT DRILLING LEWCO 750 TON A/C DIRECT

NDC (RIG 5) BUTINAH LET SUPER 116E 200 30000 ADMA-OPCO LAMPRELL HAMRIYAH NEWBUILD - UNDERWAY DELIVERY Q4/2014 LEWCO 750 TON A/C DIRECT

NDC (RIG 6) AL SHUWEHAT LET SUPER 116E 200 30000 ADMA-OPCO LAMPRELL HAMRIYAH NEWBUILD - UNDERWAY DELIVERY Q1/2015 LEWCO 750 TON A/C DIRECT

NDC YEMILAH HITACHI ZOSEN-C 200 18000 ADMA-OPCO U.SHAIF US 262 RIAP PLANNED DRILLING TESCO 1350HP 650ELINIDC SHAHID MODARRES BETH.250C MS 210 20000 IOOC IRAN REPAIRS AT ISOICO YARD NONIOC AL VAND (SCAN BAY) BETH.250C 250 20000 OYSTER GROUP DUBAI MARITIMECITY STACKED NONIOC IRAN KHAZAR F&G L780 MOD2 300 20000 PETRONAS IRAN NO NEWS ! DRILLING TESCO 500 ECNOBLE ALAN HAY LEV.111C 300 25000 DUBAI PETROLEUM DUBAI Q4/2016 DRILLING VARCO TDS - 5HNOBLE CHARLES COPELAND LeT 82 S-D-C 280 20000 ARAMCO KSA SEPT.2015 DRILLING VARCO TDS 4SHNOBLE CHARLIE YESTER PARAGON M 1161 LeT 116C 300 25000 ONGC INDIA Q4/ 2018 DRILLING VARCO TDS-3HENOBLE CHUCK SYRINGE SOLD LeT 82C 250 20000 STACKED VARCO TDS 5HNOBLE DAVID TINSLEY MODEC 300C-38 300 25000 TBA LAMPRELL HAMRIYAH STACKED VARCO TDS - 5HNOBLE DHABI 2 BMC 150 160 20000 ADOC ABU DHABI JULY 2015 DRILLING VARCO TDS - 3NOBLE DICK FAVOR PARAGON B152 BMC -150 IC 150 20000 NDC (ADOC) ABU DHABI NOV.2015 DRILLING VARCO TDS 5HNOBLE ED HOLT PARAGON L 785 LEV.111C 300 25000 ONGC INDIA BOMBAY HIGH DRILLING VARCO TDS 4SHNOBLE GENE HOUSE MODEC 300C-38 300 25000 ARAMCO KSA TO END NOVEMBER 2015 DRILLING VARCO TDS 5HNOBLE GEORGE MCLEOD PARAGON L 785 F&G L780 MOD2 300 20000 TALISMAN MALAYSIA ON CONTRACT DRILLING VARCO - TDS 3-SHNOBLE GUS ANDROES PARAGON L 1111 LEV.111C 300 30000 TBA LAMPRELL HAMRIYAH STACKED STACKED NOV PS-2 750 ANOBLE JIMMY PUCKETT PARAGON L784 F &G L780 MOD2 300 25000 HAMRIYAH PORT STACKED VARCO TDS-4SHNOBLE JOE BEALL MODEC 300C-38 300 25000 ARAMCO KSA NOV. 2018 DRILLING NOV PS-2 750 ANOBLE KENNETH DELANEY PARAGON L 786 F &G L780 MOD2 300 25000 ONGC INDIA Q4/2018 DRILLING VARCO TDS-3SHNOBLE ROGER LEWIS F&G JU 2000E 400 30000 ARAMCO KSA Q2/2017 DRILLING NOV HYDRALIFT 750NOBLE ROY RHODES PARAGON M 1162 LeT 116C 328 30000 ADMA OPCO ABU DHABI ADMA OPCO DRILLING NOV PS-2 750 ANOBLE SCOTT MARKS F&G JU 2000E 400 30000 ARAMCO KSA Q2/2017 DRILLING NAT.HPS-750-E-ACNOBLE MICK O'BRIAN F&G JU 3000N 400 30000 DPA OFFSHORE DUBAI NOV PS2 750 ANOBLE HARVEY DUHANEY PARAGON L 1115 LEV.111C 300 20000 VARCO TDS - 5HTWIN FOUNTAINS (KS) THULE POWER (AD19) BMC 200H 250 21000 INCOMPLETE HAMRIYAH PORT SOLD TO TWIN FOUNTAINSONGC SAGAR BHUSHAN DRILL DHIP 1000 20000 ONGC BOMBAY HIGH ONGOING CONTRACT DRILLING NOONGC SAGAR GAURAV ROBCO 350 300 20000 ONGC INDIA-BOMBAY HIGH, N-7 ONGOING CONTRACT DRILLING NOONGC SAGAR JYOTI HITACHI ZOSEN 300 20000 ONGC INDIA - TAPTI, SD6. ONGOING CONTRACT DRILLING NOONGC SAGAR KIRAN HITACHI K 1045 300 20000 ONGC INDIA-BOMBAY - NO ONGOING CONTRACT DRILLING NO

75Pipeline MARCH/2015SPONSORED BY SEMCO MARITIME

Working status of Jack-up rigs Middle East, India & Egypt

Rigs Update

COMPANY RIG TYPE MAX.WD MAX.DD OPERATOR LOCATION CONTRACT STATUS OP. STATUS TOP DRIVE

ONGC SAGAR PRAGATI CFEM - T- 2000C 300 20000 ONGC INDIA-BOMBAY H. CONVERSION YARD TO PRODUCTION NO

ONGC SAGAR RATNA HITACHI ZOSEN 300 20000 ONGC HINDUSTAN SHIPYARD YARDWORKS NO

ONGC SAGAR SAMRAT OFFSHORE DESIGN S/P 250 18000 ONGC INDIA-BASSEIN, S-12 ONGOING CONTRACT DRILLING NO

ONGC SAGAR SHAKTI ROBCO 350 300 20000 ONGC INDIA-BOMBAY, W1-7 ONGOING CONTRACT DRILLING NOONGC SAGAR UDAY HITACHI K 1045 300 20000 ONGC L&T YARD OMAN YARD WORKS YARDWORKS NOONGC SAGAR WIJAY DRILL DHIP 2953 20000 ONGC INDIAN WATERS HOT STACKED STACKED NOPEMSA HAFFAR 2. (HULL 108) F&G SUPER M2 300 30000 PEMEX LAMPRELL SHARJAH DELIVERED DRILLING VARCO TDS 8SAPEMSA HAFFARI (Hull 106) F&G SUPER M2 300 30000 PEMEX DOS BOCAS, MEXICO DRILLING VARCO TDS 8SAPETROGREEN ARMANATH F&G L780 MOD2 300 25000 IRAN ? NO INFO DRILLINGEZION NOAH'S ARK LeT 43 SC 300 20000 QATAR OPERATOR QATAR ON TRIALS MOBILIZING TDS MSPYRAMID DRILLING BENNEVIS ORION TYPE 250 20000 GUPCO GULF SUEZ DRILLING NOQUEST ENERGY WAVE SIERRA Lev.MSC CJ 50 325 25000 NONE HAMRIYAH DOCK AVAILABLE Ex. WEST LARISSA VARCO TDS 8SAROWAN CO. INC. ARCH ROWAN LeT 116C 350 25000 ARAMCO KSA - ABU SAFAH NOV.2015 DRILLING VARCO ROWAN CO. INC. BOB KELLER LeT Tarzan Class 300 40000 ARAMCO KSA - HASBAH MAY 2024 DRILLING VARCOROWAN CO. INC. BOB PALMER LeT Tarzan Class 300 40000 ARAMCO KSA - HASBAH AUGUST 2015 DRILLING VARCOROWAN CO. INC. CHARLES ROWAN LeT 116C 300 25000 ARAMCO KSA - MANIFA NOV.2015 DRILLING VARCO ROWAN CO. INC. GILBERT ROWE LeT 116C 350 25000 ARAMCO KSA - SAFANIYA MARCH 2015 DRILLING VARCO TDS-4ROWAN CO. INC. HANK BOSEWELL LeT Tarzan Class 300 40000 ARAMCO KSA - KARAN AUGUST 2015 DRILLING VARCOROWAN CO. INC. RALPH COFFMAN LeT Workhorse 400 35000 GALP ENERGIA CYPRUS DRIILLING LEWCO 750 A/C DRIVEROWAN CO. INC. ROWAN CALIFORNIA LeT 116C 300 25000 MAERSK OIL QATAR Q3/2016 DRILLING VARCO ROWAN CO. INC. ROWAN MIDDLETOWN LeT 116C 350 25000 ARAMCO KSA - MARJAN 434 APRIL 2015 DRILLING VARCO ROWAN CO. INC. ROWAN MISSISSIPPI LeT Workhorse 400 35000 ARAMCO KSA - ARABIYAH DECEMBER 2015 DRILLING LEWCO 750 A/C DRIVETERRAS OFFSHORE (EZION) TERAS TITANIUM LeT 116C 350 25000 (EX PARIS) ABU DHABI YARD DELAYED DELIVERY VARCOROWAN CO. INC. SCOOTER YEARGAIN LeT Tarzan Class 300 40000 ARAMCO KSA NOVEMBER 2015 DRILLING VARCOSAGADRIL, INC. SAGADRIL 1 (HAK 9) MD J - 300E 300 20000 DEPARTS YARD MID OCT. VARCO TDS-3HSAGADRIL, INC. SAGADRIL 2 (HAK 7) MD J - 300E 300 20000 UAE - HAMRIYAH YARDWORKS VARCO TDS-4 HSAIPEM PERRO NEGRO 2 LeT 116C 300 21000 TOTAL ABU AL BKS ABU DHABI, UAE DEC.2014 DRILLING VARCO TDS-4SAIPEM PERRO NEGRO 3 F &G L780 MOD2 300 20000 ADMA OPCO ABU DHABI, UAE ONGOING CONTRACT DRILLING VARCO TDS-3SAIPEM PERRO NEGRO 4 LeT 150-44 150 16000 PETROBEL EGYPT Q1/2015 DRILLING NOSAIPEM PERRO NEGRO 5 Lev. 111. 300 25000 ARAMCO KSA / BAHRAIN Q4 / 2014 DRILLING VARCO TDS-3

SAIPEM PERRO NEGRO 7 BMC PACIFIC CLASS 375 30000 ARAMCO KSA Q4/2015 YARD NAT HPS 750-E-AC SG 750K

SEADRILL AOD - 1 KFELS MOD VB 300 30000 ARAMCO KSA 3 YEARS DRILLING VARCO TDS 8SASEADRILL AOD - 2 KFELSMODVB 300 30000 ARAMCO KSA CONTRACT TO JUNE 2016 DRILLING VARCO TDS 8SASEADRILL AOD - 3 KFELS MOD VB 300 30000 ARAMCO KSA ON CONTRACT - 3 YEARS DRILLING VARCO TDS 8SASEADRILL WEST CALLISTO KFELS ModVB 300 30000 ARAMCO KSA OCTOBER 2016 DRILLING VARCO TDS 8SASEADRILL WEST FREEDOM LeT SUPER 116E 350 30000 VENEZUALA DRILLING LEWCO 750 A/C DRIVESEADRILL WEST INTREPID LeT SUPER 116E 350 30000 MEXICO DRILLING LEWCO 750 A/C DRIVESEADRILL WEST MISCHIEF LeT SUPER 116E 350 30000 AFRICA CONGO DRILLING LEWCO 750 A/C DRIVE

SEADRILL WEST RESOLUTE LeT SUPER 116E 350 30000 KJO KSA OCTOBER 2015 + I YEAR OPT. DRILLING LEWCO 750 A/C DRIVE

SEADRILL WEST TRITON BMC 375 PACIFIC 375 30000 KHAFJI JOINT OPS. KSA IDLE VARCO TDS -8SASEADRILL WEST TUCANA JU 2000E 400 30000 PVEP - VIETNAM VIETNAM MAY 2017 DRILLINGSEADRILL WEST CASTOR JU 2000E 400 30000 JURONG YARD SINGAPORESEADRILL WEST TELESTO JU 2000E 400 30000 PREMIER - VIETNAM DALIAN YARD MOBILIZINGSEADRILL WEST OBERON JU 2000E 400 30000 DSIC DALIAN CHINASeaDrill/PT Apex RANI WORO BMC 300IC 320 20000 CRESCENT PET SHARJAH .UAE DRILLING VARCO TDS 3SHIV - VANI SHIVANI HERITAGE F&G L 780 MOD 2. 300 20000 GUPCO RAS GHARIB, SUEZGULF DRILLING VARCO BJSHELF DRILLING HIGH ISLAND 7 LET.82-SD-C 250 20000 QPD (AFTER YARD) NKOM YARD, DOHA DRILLING VARCO TDS 3HSHELF DRILLING RIG 105 LeT 52-C 250 20000 PETROBEL GULF SUEZ DRILLING VARCO TDS-3SHELF DRILLING RIG 124 MODEC 200C-45 250 20000 AL AMAL PC GULF SUEZ JULY 2015 DRILLING NAT. PS 2-500SHELF DRILLING RIG 141 LeT 82C 250 25000 GUPCO GULF SUEZ SEPT 2015 DRILLING NAT. PS 2-500SHELF DRILLING C.E. THORNTON LeT 53 300 29000 ONGC INDIA DOCKING Q2/2015 DRILLING VARCO TDS 3SHELF DRILLING TRANSOCEAN COMET SONAT-C 250 20000 PETRO GULF GULF SUEZ UNTIL JAN. 2016 DRILLING VARCO TDS 3SHELF DRILLING F.G. McLINTOCK LeT 53C 300 29000 ONGC INDIA DOCKING Q2/2015 DRILLING VARCO TDS 3SHELF DRILLING HIGH ISLAND 4 LeT 82-SD-C 280 20000 ARAMCO KSA Q4/2014 (Q4/2019) DRILLING NAT.PS 2-500SHELF DRILLING HIGH ISLAND 9 LeT 82-SD-C 280 20000 ARAMCO KSA AUGUST 2015 DRILLING VARCO TDS 4-SSHELF DRILLING HIGH ISLAND II LeT 82-SD-C 280 20000 ARAMCO KSA Q4/2014 (Q4/2019) DRILLING VARCO TDS-3HSHELF DRILLING J.T. ANGEL F &G L780 MOD2 300 25000 ONGC INDIA Q1/2017 DRILLING VARCO TDS 4-HSHELF DRILLING KEY HAWAII MITSUI JC300 300 25000 (MAERSK OIL QATAR QATAR DEC.2016 DRILLING VARCO TDS-4HSHELF DRILLING KEY SINGAPORE LeT 116C 350 25000 TBA SINGAPORE REACTIVATION YARDWORKS VARCO TDS-3SHELF DRILLING MAIN PASS I F&G L780 MOD2 300 25000 ARAMCO KSA Q4/2014 (Q4/2019) DRILLING VARCO TDS 4-SSHELF DRILLING MAIN PASS IV F&G L780 MOD2 300 25000 ARAMCO KSA Q4/2014 (Q4/2019) DRILLING VARCO TDS-3HSHELF DRILLING COMET JUBILEE CLASS 250 20000 GUPCO OCTOBER FIELD GOS JULY 2016 DRILLING VARCO TDS 3SHELF DRILLING TRIDENT XV MODEC 300 C-38 300 25000 CHEVRON-THAILAND BENCHAMAS E UNTIL Q1/2016 DRILLING VARCO TDS 3-HSHELF DRILLING GALVESTON KEY LeT 116CS 300 25000 CUU LONG JOC VIETNAM DRILLING NOV PS 2SHELF DRILLING KEY GIBRALTER LeT 84 (116C in 1996) 300 20000 PVEP POC VIETNAM END 2014 DRILLING VARCO TDS 8-SASHELF DRILLING TRIDENT XVI MODEC 300-C-38 300 25000 PVEP POC VIETNAM Q2 - 2015 DRILLING VARCO TDS - 3SSHELF DRILLING GSF ADRIATIC X LET 116C 300 25000 ADDAX NIGERIA DRILLING VARCO TDS-3SHELF DRILLING RANDOLPH YOST LeT 116C 300 25000 CHEVRON INDONES INDONESIA JULY 15 , + 1 YEAR OPTION DRILLING VARCO TDS 4-SSHELF DRILLING HARVEY H.WARD F&G L780 MOD2 300 25000 ONGC INDIA Q1/2017 DRILLING VARCO TDS-4HSHELF DRILLING RON TAPPMEYER LeT 116C 300 25000 ONGC INDIA Q1/2017 DRILLING VARCO TDS-3SHELF DRILLING TRIDENT XIV BMC-300-IC 300 29000 ADDAX WEST AFRICA DRILLING VARCO TDS-3HSHELF DRILLING TRIDENT 12 BMC 300 IC 300 29000 ONGC INDIA NEW CONTRACT ? YARD VARCO TDS -3HSHELF DRILLING ADRIATIC 5 LeT 116C 300 25000 ARAMCO DUBAI DRY DOCKS STACKED VARCO TDS 4SSHELF DRILLING HIGH ISLAND V. LeT 82 SDC 270 20000 ARAMCO Q4/2013 KSA UNTIL OCT.2018 REACTIVATION ? VARCO TDS - 3HSHELF DRILLING TRIDENT 2 LeT 53-SC 300 25000 ONGC INDIA - NEELAM Mar-15 DRILLING VARCO TDS 4SUMW NAGA 6 BAKER 400 375 30000 PETRONAS CARIGALI VIETNAM END Q2 - 2015 DRILLING VARCO TDS-4TRANSOCEAN INTEROCEAN III SONAT ORION C 300 20000 ASRY YARD BAHRAIN NONE STACKED TDS - 4SGSP ROMANIA GSF MAGELLAN F&G L780 MOD2 300 25000 WEST AFRICA SOLD TO GSP ROMANIA DESTINATION BRAZIL VARCO TDS - 4HTRANSOCEAN CONSTELLATION II F&G JU 2000 400 30000 TOTAL E&P GABON, WEST AFRICA DRILLING NAT. PS 2-650/750TRANSOCEAN TRIDENT VI MODEC-300-C35 220 21000 NONE EN RUTE - MID.EAST SOLD VARCO TDS-3HTRANSOCEAN RIG 134 F&G L780 MOD2 300 20000 NONE STACKED - HAMRIYAH PORT VARCO TDS-4US CONSORTIUM DIXIE PATRIOT LIFT BOAT GDI & DOLPHIN QAT. QATAR WORKING ACCOMODATION N/A

CLASSIFIEDS

77Pipeline MARCH/2015www.pipelineme.com

ESMA INDUSTRIAL ENTERPRISESP.O. Box 18356, JAFZ, Dubai - U.A.E. Tel: +971 4 883 9100, Fax : +971 4 883 9495

E-mail: [email protected], Web: www.esmagroup.comESMA

Abu Dhabi Aktau Almaty Baku Dubai Jebel Ali

Automation Chemicals

Engineering Services Filtration

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Flow Control Valves Tubes & Pipes Hyd. Cylinders Tube / Hose Fittings

Clamps/Couplings Hyd. / Ind. Hoses Quick Couplers Tube Clamps

Ball / Check Valves Industrial Hoses Hand Tools Tube / Hose Fittings

Automation Inst. Panel Comp. Instrument Tubings Lifting Equip.

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Middle East’s leading supplier and stockiest of bulk piping material for more than 30 years.

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P.O. Box: 261815, Jebel Ali Free Zone, Dubai - United Arab EmiratesTEL: +971 48860777, FAX: +971 48862727 / 8862961Email: [email protected]

PIPES FITTINGS FLANGES VALVES ACCESSORIES

www.i-m-s.ae

RBV Energy Middle East FZCWarehouse No: Q4-011

SAIF Zone

P.O. Box 122355

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T : +971 (0)6 5528 150

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F : +971 (0)6 5528 160

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Advertising Contact: Rafiq SayyadContact no.: +971 (4) 445 3655Email: [email protected]

Reach over 8,500Oil and gas professionals

SUPPLIER FOCUS: NES Global Talent

How long has your business provided services / solutions for the oil & gas sector?

Established in 1978, NES Global Talent

has been providing solutions for the oil and

gas sector worldwide for 37 years.

Where are you located within the Middle East / GCC region – how many divisions do you have in the region? How important is this part of the world to your overall business?

The Middle East is a key region within

our business. We have seven offices

across the region in Abu Dhabi and Dubai

in UAE, Al Khobar in Saudi Arabia, Basrah

and Erbil in Iraq, Muscat in Oman, and

Doha in Qatar.

Are there any standout projects within the region on which your company has worked, preferably within the last 6-12 months?

Over the past year, we have been heavily

focused on sourcing local talent for the

super-giant Rumaila field in south Iraq. We

have also been closely involved with the

Upper Zakum development offshore Abu

Dhabi, tapping into our global talent pool to

find the necessary talent to help drive the

project forward.

What is the competitive advantage your business has over others providing similar services / solutions to the oil & gas industry?

NES Global Talent has worked in the

Middle East for about 16 years. We

are here on the ground, in locations

across the Middle East, meaning we

can fully support our clients, contractors

and candidates in country rather than

remotely.

We pride ourselves on the depth of

our global and local pool and the long-

standing partnerships we have with the

largest global international oil companies

and service companies.

What has been the highlight of the last 12 months for your company?

In the last year, NES Global Talent

secured a new manpower contract with

the Abu Dhabi National Oil Company

(ADNOC) in Abu Dhabi, allowing access

to the 17 companies under the ADNOC

umbrella. Abu Dhabi is looking to increase

its oil production from 2.7 million barrels

per day to 3.5 million barrels per day by

the end of 2020 so the ADNOC contract

provides the perfect opportunity for

growth of contractor numbers in the UAE.

What are you most excited about for the coming year, in terms of your business outlook?

As the UAE looks to reduce its reliance

on importing gas and also meeting the

needs of the local growing economy,

there are a number of gas projects

being sanctioned across the UAE in

the Emirates of Abu Dhabi, Dubai and

Fujairah. Abu Dhabi is looking to develop

its sour gas reserves both onshore and

offshore with projects such as Shah

and Bab with companies also looking at

exploration wells as part of projects at

Hail and Shuweihat.

Are there any new facility openings in this region planned for the next 1-2 years?

Over the last year we have invested and

physically staffed new operations in Muscat

in Oman and Erbil in Iraqi-Kurdistan. We

are investigating a number of new office

openings over the next couple of years.

NES Global Talent has provided talent to the oil and gas market for decades. We hear from Darren Grainger, Middle East Regional Director at NES Global Talent, about its focus on local talent

FINDING TALENT IN THE REGION

The Dubai operations of NES Global Talent

www.pipelineme.comPipeline MARCH/201578