Dockwise magazine

MECCA OF WORLD OIL & GASMIDDLE EAST

2 0 1 4 I I S S U E 1 3

Growing Offshore Business

Focus. Reliability.Relationships.INTERVIEW WITH DAVID MULLEN,CEO AT SHELF DRILLING

INTERVIEW WITH JAAP MEIJ,VP SALES OFFSHORE PROJECTS AT DOCKWISE

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DOCKWISER DOCKWISER2 3

DOCKWISE SUCCESSFULLY TRANSPORTS SECOND AIRCRAFT CARRIER HULL

Second of two Canberra class Amphibious Landing Helicopter Dock (ALHD) hulls, the Adelaide was loaded onto the Blue Marlin at the Vigo inlet in Spain. The hull was built by Navantia for the Royal Australian Navy measuring 230 m long.

The Adelaide was transported to BAE System Australia’s shipyards at Williamstown, where it will be completed and delivered to the Commonwealth of Australia. •

DOCKWISER 5

FROM THE CEODockwise commences 2014 on a positive note following a successful year highlighted by winning its largest contract ever (Wheatstone) and the transport of the Concordia. With the global economy showing signs of recovery combined with a relatively stable oil and gas industry, the outlook for the year provides a platform on which we can continue to enhance our market position.

From an organizational perspective it is safe to say that Dockwise has become a solid part of the Boskalis Offshore organization. The coming years will continue to be exciting and at the same time challenging for our staff as Boskalis Offshore expands its position in the industry.

The Middle East is an attractive region with opportunities for service companies active in the oil and gas industry. In the region, we continue to witness an increase of offshore exploration activities. With unique assets and a standing track record, we have much to offer clients operating in the Middle East, particularly with installation projects and jack-up rig transports. Historically, Dockwise has had success in the region transporting a tremendous amount of rigs and plans to maintain its presence.

Through Boskalis’ established relationships dating back more than 40 years, we will be able to further strengthen our market

position and network. We intend to deepen our relationships with the larger EPC contractors active in the region and continue to cooperate with manufacturers in the Far East. With these strategic relationships, we will be able to collectively better serve and surpass end customer expectations.

In all, we fi rmly believe the Middle East is and will continue to be an attractive region with plenty of growth and opportunities. •

FOREWORDThe Middle East is home to nearly half of the world’s oil and gas reserves with nations such as Saudi Arabia, Qatar and Iran leading in pole position. The feature, Mecca of World Oil & Gas (12-23), covers the history of Middle Eastern oil spanning 100 years, review of top oil and gas players, world oil and gas landscape, countries leading the offshore pack and offshore drilling hotspots.

Next to the feature, you will explore various sections including DockTalk, where Pushing Limits (24-25) and Arabian Float-over (34-35) articles cover recent installation projects. We also provide you with two different Industry Perspectives from the CEO of Shelf Drilling (30-31) and Dutch Ambassador to the UAE (36-37). In the Creating New Horizons section, seasoned managers from Dockwise and Boskalis provide an insight of doing business in the region as they focus on Growing Offshore Business (26-27) and Understanding Customer Needs (32-33). In the Technology Focus section, we describe the phases of an Offshore Float-over installation (28-29) whereby semi-submersible heavy transport vessels are used to transport and install offshore topsides. Next to the oil and gas focus, we included a leisure article covering travel in beautiful Abu Dhabi (8-10).

Enjoy the read.

Editorial Team

REGARDS,

ANDRÉ GOEDÉECEO DOCKWISE

CONTENTSDOCKNEWS 6 - 7

ABU DHABI 8 - 10

INDUSTRY PERSPECTIVEFOCUS. RELIABILITY. RELATIONSHIPS. 30 - 31STRONGER TRADE RELATIONS 36 - 37

DOCKSHOT 2 - 3

STRONGER TRADE RELATIONS 36 - 37

MECCA OF WORLD OIL & GAS MIDDLE EASTFEATURE

100 YEARS OF MIDDLE EASTERN OIL 14 - 15TOP OIL & GAS PLAYERS 16 - 17WORLD OIL & GAS 18 - 19LEADING THE OFFSHORE PACK 20 - 21OFFSHORE DRILLING HOTSPOT 22 - 23

DOCKTALKPUSHING LIMITS 24 - 25ARABIAN FLOAT-OVER 34 - 35

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CREATING NEW HORIZONS TOGETHERGROWING OFFSHORE BUSINESS 26 - 27UNDERSTANDING CUSTOMER NEEDS 32 - 33

TECHNOLOGY FOCUSOFFSHORE FLOAT-OVER INSTALLATION 28 - 29 Boskalis is strategically positioned to add signi� cant

value for our relationships in the Middle East.

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DOCKWISER 7

WHEATSTONE MARKS DOCKWISE'S LARGEST CONTRACT EVER

DOCKWISE TO TRANSPORT THE WORLD'S LARGESTAND HEAVIEST JACK-UP RIGS

SUCCESSFULLUNCH & LEARNSESSIONS

TOURFOR LIFE

TEAM BOSKALIS/DOCKWISE AT'RACE OF THE CLASSICS'An enthusiastic team of 36 young professionals forming team Boskalis/Dockwise competed in the 8th edition of the Race of the Classics, a major regatta in the North Sea - bringing together 24 classic sailing ships - at which more than six hundred Young Professionals lock horns. •

Dockwise has been conducting ‘Lunch & Learn’ sessions successfully for many years. These informal sessions are designed to better inform relationships about our service capabilities in a relaxed and informal environment and at the same time better understand customer needs and challenges. A small team of Dockwise experts explain the services offered to a broad group of management, engineering, logistics and procurement professionals with attendance around 40 participants. The cross functional approach has had great results and has been instrumental for a holistic understanding of logistics for large modular projects or heavy marine transport services. Should you be interested in participating in an upcoming session, [email protected] •

Last year Boskalis participated in the Tour for Life 2013, an 8-day cycling tour from Italy to the Netherlands covering 1,250 km. The event is characterized by fundraising to support Doctors Without Borders, an organization that provides emergency medical relief to victims of disasters, confl icts and epidemics. The team was composed of 10 employees from various Boskalis divisions. The philanthropic athletes are now preparing for the upcoming 2014 challenge taking place from August 31 to September 7. For more information, visit:www.tourforlife.nl/en/ •

UPCOMING EVENTS

OTC May 5-8, 2014Houston, USA www.otcnet.org/2014/

Rio Oil & Gas September 15-18, 2014Rio de Janeiro, Brazil www.ibp.org.br

APPEA April 6-9, 2014Perth, Western Australia www.appeaconference.com.au

Mexican Petroleum Congress June 4-7, 2014Acapulco, Mexico www.congresomexicanodelpetroleo.com

Canada LNG Export September 16-18, 2014Calgary, Canada www.canadalngexport.com

ADIPEC November 10-13, 2014Abu Dhabi, UAE www.adipec.com

MCE Deepwater Development April 8-10, 2014Madrid, Spain www.mcedd.com

ONS August 25-28, 2014Stavanger, Norway www.ons.no

Offshore Energy October 28-29, 2014Amsterdam, The Netherlands www.offshore-energy.biz

OSEA December 2-5, 2014Singapore www.osea-asia.com

Dockwise has been awarded a contract by Bechtel for module transport services, for the Chevron-operated Wheatstone Project in Western Australia. The contract value is estimated at approximately USD 275 million, making it the largest contract ever for Dockwise and work has commenced early 2014.

The scope of work includes logistical management and transportation of over 100 modules from the Wheatstone Project module yards in China and Malaysia to the Wheatstone Project site located at Ashburton North,12 kilometers west of Onslow in Western Australia.

To complete its scope the full breadth of heavy marine transport assets including an expected total of six

Dockwise was awarded a contract from Statoil Petroleum AS for the transportation of two large newbuild jack-up drilling rigs. The two Cat-J rigs will be the largest and heaviest jack-up rigs ever to be transported on a heavy transport vessel. The rigs are on order with a South Korean yard and are scheduled to be transported to

Dockwise Heavy Transport Vessels (HTVs) ranging in size from T-Class to Type III open stern vessels, barges, Floating Super Pallets (FSPs), two new SMIT Giant barges and Anchor Handling Tugs (AHTs) will be used.

The HTVs will provide on-deck stowage for modules, as well as piggy back capacity for barges/FSPs also carrying modules, whilst the SMIT Giant barge and AHT combination will be used as a towage solution. By combining the comparative advantage of each transport solution and using the broad expertise across the Boskalis group, a total logistical management and transportation package has been put together. •

Norway between the second half 2016 and the second half 2017. Dockwise will deploy two of its largest vessels: the Blue Marlin and her sister vessel the newbuild White Marlin, which will be put into service later this year. •

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DOCKWISER8 DOCKWISER 9

Abu Dhabi is one of the fastest growing visitor destinations in the Middle East region, offering a vast array of tourism activities, from those seeking religious knowledge and experiences to those simply looking for thrills.

In 2012, Abu Dhabi welcomed 2,388,023 guests to its 136 hotels and hotel/apartments – a 13% rise on its 2011 performance and surpassing its target of 2.3 million guests for the year, chalking up a record for Abu Dhabi’s hospitality sector according to the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi). Hotel revenues for the period were also up - this time by 6% - to Dh4.6bn ($1.261bn). The target for 2013 has been set at 2.5 million visitors.

Abu Dhabi has a rich past evidenced by scores of restored mud fortresses

Dhabi, it is open daily to visitors, except on Friday morning, which is for worshippers only.

The complex features 82 domes, over 1,000 columns, 24 carat gold chandeliers and the world’s largest hand knotted carpet. The main prayer hall is dominated by one of the world’s largest chandeliers – 10 meters in diameter, 15 meters in height and weighing 12 tons. The mosque’s fi rst ceremony was the funeral of its namesake, Sheikh Zayed, who is buried at the site. Refl ective pools surround the mosque, amplifying its beauty. The striking white and gold colors that shine in the sun are transformed at night by a unique lightning system that refl ects the phases of the moon. During the holy month of Ramadan, the mosque hosts vast Iftar meals for the local population, where all are welcome to join together for the breaking of the daily fast.

Abu Dhabi’s coastline (more than 400kms) is one of its major natural attractions, that range from a stroll on the Corniche in the evening to diving and sailing, Abu Dhabi offers a plethora of water related activities; it boasts fi ve marinas including the Emirates Palace Marina, the Al Bandar Marina, Ghantoot Marina, the intercontinental marina as well as the Yas Marina.

Yas MarinaYas Marina with its 175 berths gives access to Yas Island, home to Yas Marina circuit, where the world famous Formula One motor racing events are held. Visitors also have the opportunity of driving the circuit as part of the program on offer at the Ferrari Formula One Experience. The Yas Viceroy hotel offers fi rst class facilities on the Island, with direct access from the Marina.

Another slightly more esoteric pastime is camel racing. The annual Abu Dhabi International Hunting and Equestrian Exhibition (Adihex) is home to the annual camel auction, which attracts locals and tourists alike. This year’s reserve price for a young camel is AED25, 000 ($6,800), a 20% increase from 2012. The record auction price however, is AED6m ($1.6m), but AED2m ($550,000) is considered a good price. The Camel Race Track offers races on Thursday and Friday in the winter. Not only can you watch the races, but you’ll have the opportunity to visit the paddocks; the town of Shweihan, in the eastern part of Abu Dhabi emirate is well known for its races, and Liwa also has an annual event.

2000 Green spacesAbu Dhabi offers many green spaces, about 2000. The Khalifa Park, built at a cost of $50 million, has its own aquarium, museum, train play park and formal gardens. As well as its well-maintained green spaces, spacious, modern and air conditioned malls are a welcome escape from the summer heat and a world of choice when itcomes to shopping. In Abu Dhabi, malls are a place to catch up with friends or for a family outing. With their imaginative designs and wide range of outlets, shopping malls, of which there are currently 12, are extremely popular. The bigger malls

across the emirate and the remains of an underground irrigation system in Al-Ain oasis, a site that has been continuously inhabited for more than 4,000 years. The emirate’s cultural life is rooted in a long tradition of literary work, camel and horseback riding, falconry, traditional artwork and the cultural exchanges brought about by trade. It is the largest and most populated of the seven emirates that make up the UAE, with over 80% of its landmass. The emirate’s population, now over 1.6 million, is expected to reach 3 million by 2030.

Sheikh Zayed Grand MosqueOne of Abu Dhabi’s most popular tourist attractions is the Sheikh Zayed Grand Mosque. This architectural work of art is one the world’s largest mosques, with a capacity of over 40,000 worshippers. Unlike other mosques in Abu

A RISING STAR IN THEREGIONAL FIRMAMENT

THE ABU DHABI MALL, WITH OVER 200 SHOPS AND ANAVERAGE OF 40,000 VISITORS A DAY, IS MORE THANJUST A SHOPPING DESTINATION.

BY RHONA WELLS

DOCKWISER10

NAME YOUR CHALLENGE.TOGETHER WE'LLACHIEVE IT.

REALIZINGTHE INCONCEIVABLE

TOGETHER

Nothing is impossible when we put our minds to it. With the right people and passion we can move mountains. At Dockwise, we provide reliable and trusted services our customers have come to expect. We take pride working together with our clients and partners to deliver one of a kind projects in the oil and gas, mining, renewable, port and marine industries for more than 30 years. We provide exceptional ocean transport, offshore installation and logistical management solutions unlike any other. Our unique fl eet of 23 semi-submersible heavy transport vessels in combination with our multidisciplinary engineering hubs enables us to meet your local needs. Being part of Boskalis, the global dredging and marine expert, opens up a world of even more opportunities for our customers.A journey of a thousand miles starts with a single step. Let’s take it together.

DISCOVER YOUR JOURNEY AT WWW.DOCKWISE.COM

buzz with activity as people meet, eat, pose and parade. During festive occasions such as Eid or Ramadan, malls are venues for special events such as dance or cultural shows, often featuring international acts. The Abu Dhabi Mall, with over 200 shops and an average of 40,000 visitors a day, is more than just a shopping destination. The Mall offers a selection of restaurants, coffee shops, a children’s play area as well as a Cineplex cinema. The Marina Mall features a 100 meter high viewing platform, an ice rink, a bowling alley, a Cineplex, musical fountains and hundreds of big name brands and stores; it has become an Abu Dhabi landmark. A new addition to the mall is CityStore the region’s fi rst stand-alone store of an English Premium League team. The Manchester City FC outlet features a full range of club merchandise,

of the desert, Beit Al Bahr, the original houses of Emirati sea-dwellers which are made from palm fronds, and Beit Shaar, or woven tents. There are no televisions on-site, encouraging the guests to enjoy an authentic desert experience.

Another exciting green destination is Masdar city, which can be visited daily, a city designed to rely entirely on solar energy and other renewable energy sources, with zero-waste. It initially aims to be a sustainable zero-carbon car free city and is already well on track to achieving its aims.

From green credentials to exhilarating experiences and super slick hotels, with new inspiring museums underway, Abu Dhabi has something for all discerning travelers of the 21st century. •

including a shirt printing service to create personalized items.

Desert experiencesMaking the most of its geographic location and desert heritage, Abu Dhabi also offers a variety of desert experiences, which include the ubiquitous dune bashing, sand boarding, skiing and desert camps. In Al Ain, deep in Abu Dhabi’s heritage heartland Al Khatem, the Arabian Nights Village harnesses the soul and essence of old Arabia. Conceived to give visitors a chance to experience the timeless and ethereal beauty of the desert as well as traditional Emirati life, the Arabian Nights Village is not a hotel, but by no means is it rough camping either. The site is powered by four sound-proofed generators and there are three types of room available, Beit Al Barr, traditional mud houses

This article is reprinted with kind permission from ‘The Middle East Magazine’. It fi rst appeared in October 2013 of said magazine.

14 - 15100 YEARS OF MIDDLE EASTERN OIL

16 - 17

TOP OIL & GAS PLAYERS

18 - 19

WORLD OIL & GAS

22 - 23

OFFSHORE DRILLING HOTSPOT20 - 21

LEADING THE OFFSHORE PACK

DOCKWISER 13DOCKWISER12

MIDDLE EAST FEATURE

OF MIDDLE EASTERN OIL

MIDDLE EAST FEATURE


would be not only the deciding factor in countless confrontations, but vital to strategic decision making for both the Axis and Allied powers. After World War II, the majority of oil consumption has been until recently, primarily in Europe, North America and East Asia, despite the largest concentration of oil reserves located in the gulf region. Numerous foreign policy debacles resulted in repeated world oil crises following attempts to colonize or control oil producing nations in the Middle East.

Oil crisesMohammed Mossadegh nationalizing the Anglo-Iranian Oil Company in Iran was the commencement of the fi rst crisis in 1951. The United States and Great Britain responded in 1953 by initiating a coup, infamous Operation Ajax, resulting in the fall of Mossadegh and the return of the Shah. There was also growing sentiment in the Middle East that Western oil companies were taking too large a share of the revenues, while the oil exporting countries were keeping only a fraction of what they were entitled. This imbalance among other aspects led to the creation of the Organization of Petroleum Exporting Countries (OPEC) by Saudi Arabia, Iran, Iraq, Kuwait and Venezuela.

The next oil crisis would begin with the nationalization of the Suez Canal by Egypt. This oil crisis began in 1967 when Egypt, Jordan and Syria attacked Israel in what would come to be known as the Six-Day War, resulting in an Arab oil embargo that temporarily crippled the American Economy. This encouraged signifi cant energy and monetary policy changes in

Oil has had a signifi cant impact on humanity. The impact, however, on today’s Middle East has questionably been even greater. The age of oil in the region started in 1901, when William Knox D’Arcy, a British businessman, obtained a signifi cant oil concession from the Shah of Persia, which covered much of modern day Iran. The entrepreneur was at the brink of bankruptcy when he discovered oil in 1908 which would later be managed by the Anglo-Persian Oil Company, predecessor to today’s British Petroleum. The discovery of oil and subsequent quantities played a signifi cant role in the dispute for its control leading toward and after the world wars.

World warsSoon the Middle East would be involved in World War I. The British formed an alliance with Sharif Hussein of Mecca against the Ottomans who were ordered by Enver Pasha. The formed alliance attempted to fuel Arab nationalism against the Turks. After the war, the British failed to support Arab independence as promised. The Ottoman lands would be divided into French and British protectorates with political boundaries that gave little regard to the division of people and groups. This division of land is for the most part still with us to this day.

Despite early oil discovery in Persia, the age of oil in the Middle East

would not seriously begin until well after the end of World War I. The global economy continued to rely on coal during the interwar period. After a wave of discoveries of major reserves through the Middle East before and shortly after World War II, coal slowly began to give way to the up and coming oil boom. Of those discoveries, the most signifi cant fi ndings were found in Iraq, Bahrain, Saudi Arabia and Kuwait. Creation and independence of many of the new Middle East states strongly coincide with the infl ux of oil revenues. Iraq and Saudi Arabia acquired their independence in 1932 followed much later by Kuwait in 1961.

Access to oil during World War II

Oman, Jordan, Kuwait and Bahrain. Minor protests have been seen in Saudi Arabia, whereas major protests have been witnessed in Iraq and Lebanon. Many of these countries continue to experience unrest, while others have managed to subside tensions.

The next 100 yearsOil sourced from the Middle East has played an important role in molding the 20th century. Oil discoveries of vast quantities, world wars and crises have all contributed in sculpting today’s global oil and gas landscape.

Today, the Middle East accounts for nearly half of the world’s proven oil and gas reserves. In spite of signifi cant worldwide shifts and technological advancements in production and exploration, it will likely be many decades before the world economy stops relying on Middle Eastern oil and gas to fuel the demands of a growing global economy.

The world’s dependence on fossil fuels is expected to curb in the next 100 years. Technological advancements in alternative energy, peak oil theories and population growth will all play a vital role on global energy supply and demand. Middle Eastern oil and gas reserves will gradually taper off forcing countries in the region to diversify their economy to avoid possible stagnation. A post-oil economy will signifi cant impact humanity, but may potentially have an even greater impact in the Middle East. •

the West, particularly a renewed search for other sources of supply and a move to alternative energy sources. Worldwide oil exploration and advances in alternative energy continued to the 1979 Iranian Revolution, resulting in the overthrow of Shah by the dissident Ayatollah Khomeini and establishment of his vision for a Shia Islamic Republic.

OPEC’s control and infl uence over the global oil market reached a crossroad as high oil prices of the 70s resulted in major new oil discoveries in Alaska, Caucasus, the Caspian Sea and North Sea all of which began to undermine OPEC’s dominance. The mid-80s witnessed a collapse in oil prices forcing OPEC to undertake a shift from deliberate price controls to an indirect infl uence on prices based on member quotas.

The last crisis of the twentieth century originated from the fi rst Gulf War and Iraq’s attempted annexation of Kuwait. The combined reserves of Iraq and Kuwait during this period was estimated upwards to almost 70 percent of the world’s known oil reserves. This war ended with the fall of the Saddam Hussein regime followed by a decade of relative stability in Middle Eastern oil states until the events of 11 September 2001, which would upset this balance in a dramatic way.

The most recent crisis, the Arab Spring, a revolutionary wave of demonstrations, protests and civil wars, has had a signifi cant impact in the Arab world since 2010. Civil unrest has led to overthrown regimes in Libya, Yemen and Egypt as well as governmental changes in

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

20

0

40

60

80

100

120

Fears of shortage USIranian revolution

Iraq invaded KuwaitInvasion of Iraq

Growth of Venezuelanproduction Post-war reconstruction

Suez crisis Arab Spring

USD PER BARREL, 2012

IRAQRes

Pro

Res

Pro

150

3,115

9%

3.7%

3.6

0.8

1.9%

n/a

IRANRes

Pro

Res

Pro

157

3,680

9.4%

4.2%

33.6

160.5

18%

4.8%

KUWAITRes

Pro

Res

Pro

101.5

3,127

6,1%

3,7%

1.8

14.5

1,0%

0,4%

SAUDI ARABIARes

Pro

Res

Pro

266

11,530

15.9%

13.3%

8.2

102.8

4.4%

3.0%

UAERes

Pro

Res

Pro

97.8

3,380

5.9%

3.7%

6.1

51.7

3.3%

1.5%

QATAR

Res

Pro

Res

Pro

23.9

1,996

1.4%

2.0%

25.1

157

13.4%

4.7%

The Middle East is the mecca of oil and gas. With estimated 48 and 43 percent of the world’s oil and gas reserves respectively, the region is by a long shot ahead of the rest of the world. South and Central America are a distant second place with 20 percent proven oil reserves whereas Europe and Eurasia hold 31 percent of the world’s gas reserves.

The Middle East is home to oil and gas heavyweights. In total, the region holds nearly half of world oil and gas reserves of which Saudi Arabia holds 15.9% - nearly a sixth - or a whopping 266 billion barrels of oil lying under its territory along with 8.2 trillion cubic meters of gas reserves.

Iran boasts 9.4% of the world’s oil reserves and the lion’s share 18 percent of the world’s gas reserves. The Persian nation is

The United Arab Emirates ranks high in the region and holds a 5.9 percent of global oil reserves with 97.8 billion barrels at its disposal. The Gulf state is capable of producing nearly 3.3 million bpd. It also has the second-highest production to consumption ratio in the world after Iraq.

Though tiny in comparison to its neighbors, Kuwait boasts 6.1 percent of global oil reserves which translates into 101.5 billion barrels of oil. In terms of its production potential, Kuwait pumps out around 3.1 million bpd.

Qatar compensates its lack of oil by claiming the world’s second largest gas reserves at 13.4 percent. Second only to Iran, Qatar produces a staggering 157 billion cubic meters of gas. •

capable of producing 102 billion cubic meters of gas. Were it not for the numerous trade sanctions imposed on it—a major hindrance to the development of its oil and gas infrastructure—the Islamic Republic could potentially fi nd its production to be many orders of magnitude higher. Recent developments surrounding sanctions placed on Iran may alter the production capabilities of this oil and gas rich nation.

Iraq’s oil and gas reserves are estimated at 150 billion barrels and 3.6 trillion cubic meters respectively. The country is currently faced with instability and the slow recovery of its oil and gas industry. Production fi gures are expected to increase quite rapidly as investment in modernizing its energy infrastructure and fi eld development gathers pace.

TOP OIL & GAS PLAYERSMIDDLE EASTLEADING THE WORLD


MIDDLE EAST FEATURE

ReservesTHOUSAND MILLION BARRELS

ReservesTRILLION CUBIC METERS

ProductionTHOUSAND BARRELS DAILY

ProductionBILLION CUBIC METERS

Figures shown as percentage of world total.Source: IEA, BP Statistical Review of World Energy 2013.

437.7

5.8 4.1

31

8.3

Gas

Middle East

Total Africa

Asia Pacifi c

North America

South & Central America

Europe & Eurasia

48

7.8 13

208.4

2.5

ReservesOil

3311

9.6 18

8.520

Production

166.

4

275.3

31

15

Production


MIDDLE EAST FEATURE

WORLDThe Middle East holds nearly half of world’s oil and gas reserves and ranks high in the production of these precious fossil fuels, but how do other regions compare?

Oil ComparisonThe South & Central America region has the second highest oil reserves (20%) followed by North America (13%), Europe & Eurasia (8.4%), Africa (7.8%) and Asia Pacifi c (2.5%). The top three oil producing regions are led by the Middle East which produces 33 percent of world output followed by Europe & Eurasia (20%) and North America (18%).

Gas ComparisonSecond only to the Middle East, the Europe & Eurasia region has a sizable amount of gas reserves at 31 percent of the world’s total. Collectively, the Middle East and Europe & Eurasia regions account for nearly 74 percent of the world’s known reserves. The Asia Pacifi c region has the third largest gas reserves at 8.3 percent followed by Africa (7.7%), North America (5.8%) and South & Central America (4.1%). Europe & Eurasia tops the chart as the highest gas producing region with 31 percent of world’s output followed by North America (27%), Middle East (16%), Asia Pacifi c (15%), Africa (6.4%) and South & Central America (5.3%). •

Figures shown as percentage of world total.Source: IEA, BP Statistical Review of World Energy 2013.

Reserves Production

Oil 13% 18%

Gas 5.8% 27%

NORTH AMERICA

Reserves Production

Oil 20% 8.5%

Gas 4.1% 5.3%

SOUTH & CENTRAL AMERICA

Reserves Production

Oil 8.4% 20%

Gas 31% 31%

EUROPE & EURASIA

Reserves Production

Oil 2.5% 9.6%

Gas 8.3% 15%

ASIA PACIFIC

Reserves Production

Oil 48% 33%

Gas 43% 16%

MIDDLE EAST

Reserves Production

Oil 7.8% 11%

Gas 7.7% 6.4%

TOTAL AFRICA

Reserves

OFFSHORE PACK

MIDDLE EAST FEATURE

Safaniya Oil FieldSaudi AramcoRecoverable Reserves:36 billion barrelsDaily Production:1,500,000 barrels

Upper Zakum Oil FieldZakum Development CompanyRecoverable Reserves:21 billion barrelsDaily Production:500,000 barrels

Manifa Oil FieldSaudi AramcoRecoverable Reserves:13 billion barrelsDaily Production:500,000 barrels


Offshore oil and gas reserves are found throughout the world with the greatest

share concentrated in the Arabian Gulf. The three largest offshore oil fi elds are

located off the coasts of Saudi Arabia and the United Arab Emirates (UAE). The

combined reserves are estimated well above 100 billion barrels of which an

estimated 70 billion barrels are recoverable.

SafaniyaSafaniya field in the Arabian Gulf, Saudi Arabia, is the world’s largest offshore field. It is owned and operated by Saudi Aramco, the national oil and natural gas company of Saudi Arabia. The field is believed to contain an estimated total reserve of more than 50 billion barrels. The recoverable oil reserves at the field are estimated to be up to 36 billion barrels.

Safaniya was discovered in 1951 and has been in production since 1957. It is operated with more than 624 production wells and a series of different platforms. Daily production

capacity of the heavy crude oil producing field is up to 1.5 million bpd.

Saudi Aramco is currently implementing a Master Development Plan to sustain the production capability of the ageing field. The development plan includes expansion and upgrade of the field’s crude-gathering and transport capacity, and the installation of electric submersible pumps (ESPs) for artificial lifting of crude.

Upper ZakumUpper Zakum oil field, located 84 km north-west of Abu Dhabi

Islands, UAE, in the Arabian Gulf, is the second largest offshore oil field in the world. The offshore oil field reportedly contains around 50 billion barrels of oil in total with an estimated recoverable oil reserve of up to 21 billion barrels.

The Upper Zakum field was discovered in 1963 and brought on stream in 1967. It is owned and operated by Zakum Development Company (ZADCO), which is a joint venture of Abu Dhabi National Oil Company (ADNOC-60%), ExxonMobil (28%) and Japan Oil Development Company (JODCO-12%).

The current production capacity of the field is 500,000 bpd. The crude oil from Upper Zakum is sent for further processing, storage and export to the Zirku Island located 140 km north-west of Abu Dhabi. The oil field is currently undergoing an upgrade worth more than USD 10 billion to increase its daily production to 750,000 bpd by 2015 and expected to sustain the same volume for 25 years.

ManifaManifa oil field, located south-east of the Safaniya field in the shallow waters of the Arabian Gulf

is reported to contain an estimated recoverable oil reserve of up to 13 billion barrels, making it the third largest offshore oil field. It is a heavy crude oil producing offshore field owned and operated by Saudi Aramco.

Manifa field was discovered in 1957. It started production in 1964 with daily capacity of 200,000 bpd. It was brought offline in 1984 due to reduced demand for its heavy crude. Saudi Aramco made an investment decision in 2007 to restart production with increased capacity as the oil price exceeded USD 70 per barrel.

The front-end engineering and design (FEED) for the Manifa crude oil field development was completed by the end of 2007. The first phase of production started in April 2013, and by the end of the year, production reached 500,000 bpd and is expected to increase to 900,000 bpd by the end of 2014. •

1 2 3

1

2

3

TOP THREE FIELDS LOCATEDIN ARABIAN GULF


The offshore landscape in the Middle East has seen a considerable degree of drilling activity. High oil prices and development of advanced technologies have led to an increase in the number of offshore drilling projects.

The offshore drilling hotspot shows no sign of slowing. In spite of all the challenges, the market for offshore drilling in Middle East is one of the fastest growing in the world. An estimated 307 wells were drilled in the region during 2013 and expected to reach 364 by 2020.

The Middle East is attracting a great deal of investment from oil majors such as BP and Total. Offshore drilling expenditure has grown across the region reaching nearly USD 65 billion between 2006 and 2012.

High rig countIt comes as no surprise for the oil and gas industry that the offshore arena in the Middle East is keeping international and regional drilling companies busy as

� e region has an estimated 138 rigs in total of which 108 are actively drilling,while the remaining30 rigs are cold/hot stacked, en route or are under construction.

the region has the highest rig count in the world. The region has an estimated 138 rigs in total of which 108 are actively drilling, while the remaining 30 rigs are cold/hot stacked, en route or are under construction. The top fi ve rig managers - Noble, National Drilling, Rowan, Ensco and Shelf Drilling - account for nearly half of the active rigs.

Growing exploration activitiesSaudi Arabia tops the chart with a sizable 46 offshore rigs operating within its territory. The oil and gas giant has over the past year signifi cantly increased exploration activities. Iran and United Arab Emirates are also very active offshore. Iran accounts for 28 offshore rigs while the United Arab Emirates accounts for 21. Qatar follows closely with 11 offshore rigs to further production aspirations.

As these offshore drilling trends continue, we can expect sustained investments to support offshore fi eld development in the Middle East. •

MIDDLE EAST FEATURE

Source: RigBase, Petrodata 2014; Morgan Stanley 2014

OFFSHOREDRILLING

QATAR11

UAE21

OMAN2

SAUDI ARABIA46

IRAN28

OFFSHORE RIGS COUNT


The start of the Ofon2 project goes a long way back. It all started in 2007, when Dockwise

received a commitment letter from Technip France, resulting in a contract for the transport

of a topside weighing almost 14,000 mt.

Next to a safe delivery of the topside, the project team had to deal with another challenge, the rapidly increasing risk of piracy at the topside discharge location in the Gulf of Guinea.

Closely following instructions and recommendations given by the Dockwise Security Council, Total/Technip security advisors and a third party assessor, Drum Cussac was called to transform the Transshelf into an impregnable fortress. “At Dockwise, we take safety seriously. Protecting the crew, cargo and the vessel is etched into our company culture and we do not compromise on safety,” comments Bas Polkamp, Project Manager at Dockwise

Meanwhile, Dockwise matured from a heavy marine transport company to a full transport and installation contractor. Dockwise’s extended capabilities had quite an impact on the Ofon2 contract resulting in a few variation orders following Dockwise’s expressed ambition to take on additional scope. Next to transportation, Dockwise was also assisting with the fl oat-over installation of the now16,000 mt topside.

Enduring hurdlesIn 2011, the ultimate client Total managed and took the next steps required to progress with the project by contracting Saipem-Nigeria for the fabrication of the Ofon2 jacket. Next to this, the Dockwise Ofon2 project team being kept to skeleton-crew had a green light to scale up to a full team in order to prepare engineering, procurement and subcontracting, QHSES, project control, logistics and operations.

Pushing limitsThe Dockwise team faced the challenge to push the Transshelf to her very limits due to the cargo weight increase to 16,000 mt.

Substantial underdeck reinforcements and additional buoyancy realized by two big tanks on the stern of the vessel did the trick in order for the Transshelf to safely transport and install her heaviest cargo ever.

Flawless executionExecution of the project commenced on 22 August 2013, when the vessel was mobilized from Bahrain to the project equipment supply base in Singapore.

With the majority of project equipment carried on deck, Transshelf arrived at the Cosco Dalian Yard in China for outfi tting on 17 September 2013. In a period of 6 weeks, the full deck of Transshelf was covered with steel and equipment as every square meter of the deck was used.

Upon completion of the outfi tting phase, the vessel sailed to the Hyundai Heavy Industry offshore

yard in Ulsan, Korea to load the topside by means of a skid operation. With the topside safely sea-fastened, the Transshelf commenced her 40 day voyage to OML-102 on 26 November 2013.

After a project life of eight years, the Ofon2 fl oat-over project was completed safely in 13.5 hours. The successful installation of the Ofon2 deck was executed on7 January 2014. •

LIMITSOFON2 FLOAT-OVER

DOCKTALK

DOCKTALK WITHBAS POLKAMP

Project Manager at Dockwise


What is your role at Dockwise?As VP Sales Offshore Projects, I have global commercial responsibility for all offshore related transportation and installation contracts. In doing so, I ensure strategic and fi nancial objectives set by the company are met. Next to this, I closely liaise with the regional managers on their individual prospects and assist in our search to identify and collaborate with strategic partners for larger projects that go beyond our existing capabilities. Other responsibilities include membership of the Dockwise Proposals and Project Board and key account management responsibilities for some key clients.

Now that Dockwise is a wholly owned subsidiary of Boskalis,

we closely work together with other business units to ensure we capitalize on the potential synergies of identifi ed opportunities. Furthermore, we feel responsible to make sure communication between the various business units is optimal.

How does Dockwise stand to benefi t from the growing offshore market?The Middle East is a growing but volatile market infl uenced by a large number of external and cultural factors. In the region, we foresee a tremendous boost in capital expenditure (CAPEX) in the coming decade. These investments ultimately result in fi eld developments that will require services provided by Dockwise and Boskalis Offshore.

In the near future, we foresee very large offshore developments in the Arabian Gulf and more specifi cally the United Arab Emirates. With our unique assets and established service track record, we can provide value added activities for the various clients managing these mega development projects. In the long term, a serious number of potential prospects have been identifi ed which require early infl uencing and positioning to ensure future development concepts match our capabilities. Local visibility and presence are key in this process.

At the same time, the Middle East oil and gas market is considered to be a relatively closed market where large local contractors dominate the playing fi eld. Creating

or building a new market position requires the right network, local support, persistence and a business proposition that cannot be ignored. The remaining cultural differences can be bridged with local presence and partners, which are instrumental for growth.

Can you describe Dockwise’s competitive environment in this region?Competition mainly comes from the established larger Engineering, Procurement, Installation and Construction (EPIC) contractors that offer transport and installation services as leverage to win full EPIC contracts. For this reason, we focus on (inter)national Engineering, Procurement and Construction (EPC) contractors as they are keen

to team up with Dockwise and Boskalis Offshore.

Given the public bidding process for large projects, governed by local laws, price will ultimately be the major differentiator in deciding who will win the job. The value proposition currently offered by Dockwise and Boskalis allows us to be competitive without compromising our margins. With support of Boskalis Middle East, a local entity with more than 40 years’ experience in the region, we will be able to further our ability to win projects of this scale. •

OFFSHOREBUSINESS

CREATING NEW HORIZONS TOGETHER

INTERVIEW WITH JAAP MEIJ, VP SALES OFFSHORE PROJECTS AT DOCKWISE

Jaap Meij, VP Sales Offshore Projects

at Dockwise, has more than 20 years’

experience in the offshore industry. Prior

to Dockwise, he has worked for Heerema

Marine Contractors in various management

functions. Mr. Meij holds an Executive MBA

from Business School Netherlands.

OFFSHOREFLOAT-OVER

BIGGER AND HEAVIER DECKS ON THE HORIZON

TECHNOLOGY FOCUS


An offshore installation method that is more than three decades old is generating renewed interest from many operators who are challenged with designing heavy-lift crane installations. Float-over installation has become a cost-effective alternative to lift installation for offshore construction, as ever-increasing size and weight of decks constantly exceed the lifting capacity of fl oating cranes.

Exploration of oil and gas in more remote offshore fields is driving the increasing demand for larger offshore units along with float-over installations. In the coming four years, an estimated 660 offshore production platforms are expected to be constructed worldwide of which 180 weigh more than 12,000 tons.

Float-over strengthsFloat-over installations have innate benefits due to the installation approach. One of the key strengths of the float-over is the lack of rendez-vous risk, which is the schedule risk resulting from the need to have the crane and vessel in the field at the same time. In principle, float-over installations do not have a weight limitation as today’s heavy transport vessels (HTVs) are capable to transport and install mega sized topsides. In addition, integrated platform installation eliminates extensive offshore hook-up and commissioning resulting in limited overall offshore exposure.

Float-over phasesThere are several phases involved

when installing a deck with a semisubmersible HTV. The first is the standby phase where the HTV is at a safe distance from the jacket but connected to the mooring system. Last minute arrangements such as preparing the vessel’s ballast system or the hydraulic jacks are under way.

The second is the docking phase where the vessel carefully enters the jacket slot, the distance between the jacket legs. Winches or tugs are used to pull the HTV carefully into position.

In the third phase, pre-mating, the vessel positions the deck directly above the jacket. Once positioned, the HTV ballasts to match the leg mating unit (LMU) with the receptors on top of the jacket legs. During this phase, it is critical that the vessel

motions be limited to suit the chosen LMU geometry. No weight transfer yet occurs.

For a successful float-over operation, countless hours of preparation come down to the exact moment when the deck makes contact with the jacket. The fourth phase is the most critical point of the installation leaving no room for uncertainty in the functionality of the load transferring equipment.

In the mating phase, the deck is lowered onto the jacket by the vessel’s rapid ballasting system where large quantities of water enter the ballast tanks, which enable the HTV to submerge. During this phase, the deck’s weight is completely transferred from the

vessel onto the jacket. Custom engineered elastomer is used in the design of the LMUs to dampen the friction during load transfer.

In the post-mating phase, the deck sits secure on top of the jacket and a gap is created between the deck support unit (DSU) and the HTV to ensure vessel motions will not cause contact between the two.

In the exit phase, the vessel departs from the jacket slot on its own propulsion or with assistance from tugs. These five phases may slightly differ depending on equipment and installation approach.

Float-over requirementsThere are three essential specifications required for an HTV

to perform a float-over. The first is the HTV’s width being the right size. The vessel must be narrow enough to fit inside the jacket slot. Secondly, the vessel must be designed with an open stern and equipped with movable casings. The open stern enables the HTV to exit the jacket slot during the last phase of an installation. To ensure the deck is perfectly positioned onboard the vessel, casings, which facilitate balance and ballasting, can be moved to best accommodate the cargo. Lastly, HTVs must have sufficient strength and stability to carry and transport heavy decks. •


Shelf Drilling is working closely with Transocean under a transition services agreement. Is the transition coming along as planned?Achieving independence from Transocean was a challenging and complex undertaking. Although the transition of the 38 rigs in 12 different countries has thrown many obstacles in our way, today we are substantially independent and managed to achieve this within the projected timeframe. The Transaction required that Shelf Drilling establish it own entities in each area of operation with all the prerequisites to operate as an independent company. Shelf Drilling developed and built a fi t for purpose ERP system and an IT supporting infrastructure that was

easy to maintain. The ERP system was intentionally not customized to a high degree.

What regional opportunities do you see in the Middle East?The Middle East is a fast growing market and I expect it will continue to be as Saudi Arabia, Qatar and UAE continues to look to increase their production or productive capacity. The customer break-even costs in the Arabian Sea are among the lowest in the offshore sector and compare reasonably well with onshore Middle East.

The Saudi Arabian market is experiencing increased domestic demand and increasing natural decline on the large prolifi c onshore mature fi elds. Offshore production

is projected to continue to increase; all the signifi cant discoveries are in the shallow water of the Arabian Gulf such as Safaniya and Manifa fi eld with 36 and 16 billion barrels of recoverable oil. Currently almost 25 percent of the country’s production is coming from offshore production.

The United Arab Emirates (UAE) is the home of the second largest offshore fi eld “Upper Zakum” with 50 billion barrels of oil in place and 21 billion barrels of recoverable. National Drilling Company (NDC) provide rigs to the parent ADNOC group of companies and also looks to the international contractors for the additional rig capacity to meet the current rig demand. UAE has aggressive production targets and consequently and progressively

increasing rig requirements over the next 5 years.

Qatar has clear targets to increase liquid hydrocarbon production as a result of signifi cant near shore exploration success in recent years. Qatar is the home of the largest offshore gas fi eld, the North Field, and I expect we will see a gradual lifting of the gas moratorium on drilling which will further enhance drilling activity in the outer years.

Which industry trends in the Middle East impact Shelf Drilling’s growth strategy?The Middle East macro environment is supportive of the current activity trends and will likely continue to support growth. The Middle East is currently the largest jack-up

market and the prolifi c nature of the near shore fi elds and low customer break-even economics will continue to fuel growth. In addition the near shore fi elds will provide a buffer against the natural decline of some of the large on shore fi elds. The Kingdom of Saudi Arabia has a rapidly growing population where approximately 50% of the population are below 25 years of age, the kingdom currently consumes approximately 4 million barrels of oil per day and this trend will likely continue to grow with the increasing demand within the kingdom.

The newbuild supply is not a threat to our activity in the Middle East, as the rigs working in Saudi Arabia are very fi t for purpose for what they do, conforming with “Schedule G” and

having a shallow draft capability to work in work-over and development drilling on the very shallow water areas of the Safaniya and Manifa fi elds offshore Saudi Arabia.

We are however also looking at newbuilds, with the difference that the Shelf Drilling newbuilds design will be fi t for purpose for our geographies with technical specifi cations that will provide greater effi ciency while drilling and during rig moves. We also believe that we can build new rigs, which are fi t for purpose and more effi cient and that are substantially less expensive than the newbuilds in the market today. •

FOCUS. RELIABILITY. INDUSTRY PERSPECTIVE

Shelf Drilling Holdings Limited is a private

company which owns and operates

independent catilever jack-up drillng rigs

headquartered in Dubai with operations

in Southeast Asia, Middle East, India,

Mediterranean, North Africa and

West Africa. The company is

solely focused on shallow water

drilling and currently active in

12 countries. Shelf Drilling

is led by David Mullen and

supported by approximately

4,000 employees and

contractors.

Jack-up rig ‘Key Hawaii’ on board the Transshelf

OFFSHORE DRILLING ACTIVITIES SOAR

INTERVIEW WITH DAVID MULLEN, CEO AT SHELF DRILLING


What is your joint responsibility in the Middle East?We are responsible for dredging activities in the Middle East such as building ports and channels and land reclamation. We also support the intergroup companies in the Middle East. For example, we are expanding our activities to areas where we see increased added value, both for our customers and indirectly for Boskalis Offshore and Dockwise who are active in the offshore industry. In doing so, we make use of our network, which dates back to the 1970s, to broaden the services offered to our customers.

How important is the Middle East for Boskalis?The Middle East is a strategic region for

us. We have offi ces in Bahrain, Oman, Saudi Arabia and the United Arab Emirates. This network allows us to stay close to our customers and further grow our presence in the region.

There are projects in this region which run into the billions. A few years back, we won two such projects within a three year period with turnover upward of two billion euros. These mega projects come along once in a while, and some of them are so complex that we are one of the few players who can provide a solution.

For example, the Ras Laffan project in Qatar, one of the largest maritime engineering projects in the world, was a port expansion over a period of three years where more than 3,000

specialists worked to create the largest LNG harbor in the world. In total, 29 million cubic meters of sand was used for land reclamation for LNG tank storage, container handling and future docks and 24 million cubic meters was dredged to widen the waterways. In addition, 33 kilometers of breakwaters were constructed, requiring 40 million tons of rock.

The Khalifa Port and Industrial Zone (KPIZ) project in United Arab Emirates is another example of a large scale project. The KPIZ is one of the world’s largest greenfi eld development projects and is part of Abu Dhabi’s major diversifi cation plan to develop various sectors. In total, Boskalis dredged 46 million cubic meters from the access channel and harbor basin.

What is important to get business done locally?Understanding customers’ needs is important. Projects can at times be extremely complex while others are fairly simple. We take every project seriously and always provide the high quality service our customers have come to expect, regardless of whether the project is worth fi ve or 500 million euros. We are always available for our customers and strive to help them growtheir business.

It is also important to keep our customers abreast of latest technology and capabilities. For example, we recently learned that one of our key customers wanted to conduct Inspection, Repair and Maintenance (IRM) services on two

of their Floating, Production, Storage and Offl oading (FPSO) vessels. At that time, they were not aware of the existence of onsite dry-docking services for their IRM needs. We explained to them how the world’s largest heavy transport vessel, the Dockwise Vanguard, is able to dry-dock an FPSO onboard for IRM services. This is an example of how we keep our customers connected to the very latest technology available at Boskalis.

How is Boskalis positioned to help organizations in the Middle East grow their offshore ambitions?We are strategically positioned to support regional organizations in growing their offshore ambitions. Boskalis Offshore offers the total marine scope for energy solutions.

We can now use our extensive network and established reputation in the region to extend the scope of services offered to our customers, primarily through our offshore division which includes Dockwise, the newly acquired heavy transport and installation specialist. With Dockwise, we are able to strengthen our solutions for the energy market. •

Ko de Blaeij and Kyriakos Vakanas are seasoned

managers at Boskalis with more than 80 years

of combined experience serving the Dutch

multinational in various management functions.

Mr. De Blaeij, currently Director Middle East,

is responsible for the dredging business in the

region and holds a Civil and Environmental

Engineering degree. Mr. Vakanas, currently

General Manager Middle East, is responsible for

growing business in the region and holds a Civil

Engineering and Architecture degree.

UNDERSTANDING

NEEDSKYRIAKOS VAKANAS, GENERAL MANAGER MIDDLE EAST AT BOSKALIS

CREATING NEW HORIZONS TOGETHER

INTERVIEW WITH KO DE BLAEIJ, DIRECTOR MIDDLE EAST AT BOSKALIS AND

Port expansion project, Ras Laffan, Qatar


Dockwise recently completed the transport and fl oat-over installation of one of the largest integrated decks

in the Middle East. The 7,700 mt Central Metering and Manifold Platform (CMMP) was built for the South Oil

Company (SOC), Iraq’s Ministry of Oil. The unit will be used for the Iraq Crude Oil Export Expansion Project -

Phase 2, within the framework of the expansion of the Al Basra Oil Terminal (ABOT), aimed to improve and

modernize Iraq’s oil export infrastructure. Foster Wheeler developed the front-end engineering design for the

complete project and is currently acting as PMC managing the execution phase on behalf of the SOC.

using a semi-submersible heavy transport vessel (HTV) or barge. For the CMMP float-over, an HTV was chosen as it better accommodates adverse weather conditions (e.g. typhoon risk) when compared toa barge. Before the installation, the Finesse vessel was modified to accommodate the CMMP unit and subsequent installation. The vessel was equipped with skid beams, surge stoppers, a stern entry guide, boarding ladders, winches and a transom fender.

The CMMP float-over installation was executed in four phases. The first phase involved mooring the HTV in front of the jacket by connecting

As a project manager, what was your responsibility for CMMP installation?Saipem, contracted by the SOC, was responsible for building and commissioning the topside and reached out to us to provide an outfitted vessel for the load-out from the quayside onto the vessel along with the ocean transport from the yard to the discharge location offshore Iraq.

My role as project manager was to make sure all the boxes were ticked and ensure a safe and successful project execution which included outfitting, transport and installation. The CMMP deck was transported 3,900 nautical miles through a course of 14 days from Saipem’s yard in Karimun, Indonesia to the Arabian Gulf, about 550 kilometers south-east of Baghdad. The float-over was conducted in 28 m of water

near the Al Faw Peninsula.

Can you describe the process involved for the CMMP float-over installation?There are two methods to install topsides offshore. Operators can choose to lift or float-over topsides onto the substructure. The float-over is an alternative installation method to the conventional heavy-lift crane. A float-over installation is executed

the vessel in an anchor spread consisting of four anchor points of which two connected the jacket. In the second phase, the vessel was positioned directly above the jacket. Winches onboard the HTV reeled steel wires, which were connected to the jacket, to pull the vessel into the slot. In the third phase, the deck was carefully lowered onto the jacket by the vessel’s ballasting system where large quantities of water entered the ballast tanks, enabling the HTV to submerge. During this phase, the deck’s weight was completely transferred from the vessel onto the jacket. Lastly, a gap was created between the deck support system and the vessel to avoid collision while the vessel slowly exited the slot.

The Arabian Gulf is a known high risk area. What measures does Dockwise take to mitigatesecurity risks? Safety of our crew, cargo andvessel is important. That is why when a vessel is required to sail through a high risk area, the Security Council at Dockwise has to approve. For this project, we received the approval with accompanying measures that had to be taken into account to ensure safety. The most impactfulmeasure was the decision to man the Finesse with a vesselprotection detachment (VPD) from the Royal Dutch Navy. Next to the VPD, we had regular communications with the IraqiNavy who was patrolling the area. •

ARABIAN

CMMP DECK INSTALLATION

DOCKTALK WITHDANIEL VAN DER BEEK

Project Manager at Dockwise

DOCKTALK

STRONGER TRADE INDUSTRY PERSPECTIVE


The Netherlands Ministry of Economic Affairs and representatives of the UAE government agreed in November 2013 to further strengthen trade relations between the two countries, with better protection of mutual investments and cooperation in the energy sector. Has this agreement materialized into recent or upcoming initiatives?

The official visit to the United Arab Emirates (UAE) by Minister Henk Kamp in November 2013 has boosted our bilateral ties in these areas. Both the Treaty on Investment Protection and the Memorandum of Understanding (MoU) on Energy Cooperation are important steppingstones. The agreement signed between Minister Kamp and the UAE Minister of

Finance encompasses investment activity between both countries outside the field of energy. We’re very excited about the increased scope of commercial opportunities this offers to companies from both countries now that the protection of investments is sealed in this treaty.

At the moment, the treaty is going through the parliamentary ratification process, after which it will enter into force. We’re planning, together with the Netherlands Foreign Investment Agency (NFIA), to organize an information session on this topic for UAE companies to fully understand and utilize the added opportunities of the treaty.

For the MoU on Energy Cooperation we have identified a number of key topics where we can add value.

We’re working closely with the UAE Ministry of Energy and key parties in the Netherlands to bring the MoU to life. We’ll start with gas technologies, renewables and energy saving. In the latter, there is enormous potential in the Emirates. The opportunities are tremendous for both countries and we do look forward to learn from each other and complement one another.

What offshore energy developmentsdo you see impacting the UAE?The oil and gas industry is looking further and deeper offshore, as the projects continue to expand in size and capital spending. The driving forces behind regional offshore projects are Saudi Arabia, Qatar and the UAE, where energy and infrastructure projects on a world-leading scale continue to forge ahead.

As for Abu Dhabi, it’s clear that Abu Dhabi Marine Operating Company (ADMA-OPCO), major producer of oil and gas from the offshore areas of the Emirate of Abu Dhabi, is taking the development of offshore projects very seriously. The Sarb Full Field Development, Umm Al Lulu and Al Nasr projects when combined are expected to increase the Emirate’s production capacity by 300,000 bpd, with a projected combined spending of over USD 10 billion.

ADMA-OPCO operates the main offshore assets in Abu Dhabi, which have been in redevelopment to maximize output. The Umm Shaif and Lower Zakum offshore oil fields have a capacity of 520,000 bpd combined, although after an expansion at each they will have a production capacity of 425,000

bpd and 300,000 bpd, respectively. Initiatives such as the introduction of zero gas flaring in the Zakum fields by ADMA-OPCO are promising and show the eagerness to employ new technologies that are less harmful for the environment and maximize usable energy output. The UAE’s position as a regional hub for upstream companies is thanks to a fairly open market and its attributes as a logistical and commercial hub, the location of choice for many firms with regional aspirations.

The UAE has ambitious targets to increase offshore oil and gas production. What role do Dutch companies play in supporting the UAE’s offshore initiatives?We are confident we can make significant contributions to energy

projects in the UAE based on Dutch technological and innovative expertise and experience. Energy efficiency, effective safety- and risk-management programs, developing the workforce, developing new technology, and ensuring competency across the organization have become a focus for major oil and gas companies in the Gulf Cooperation Council region (GCC-region) and provide additional scope for Dutch companies. •

INTERVIEW WITH GERARD MICHELS, DUTCH AMBASSADOR TO THE UNITED ARAB EMIRATES

THE NETHERLANDS AND UAEEXPAND MUTUAL INTERESTS

Gerard Michels is the Dutch Ambassador to the United Arab Emirates since 2010.

In this capacity he is responsible for both the Embassy in Abu Dhabi and for the

Consulate General in Dubai. Prior to his current assignment, Mr. Michels has held

various positions in the Dutch Foreign Service including Brussels and Tokyo. He

holds a degree in social and economic history.

MASTHEADWORLDWIDEOFFICES

The Dockwiser is a publication of Dockwise.For more information, please contact:+31 (0)76-548 41 00 | [email protected] | www.dockwise.com

Project ManagementDaniëlle BiermansHead EditorJonathan MartinezArt Direction / RealizationCanday | Creative agency for interactive brand communicationPrinted by Bek | VeghelContributorsShelf Drilling, Dutch Embassy in the United Arab Emirates,The Middle East MagazinePhotographyBart Lommes, Joe Lynch of One Degree North Photography (Singapore), Santiago Domínguez, Foto’s & Friends, iStockphoto, Shutterstock

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