THE OIL & GAS YEAR ABU DHABI 2015staging.togy.dmz.stde.sqli.com/content/uploads/2015/01/Preview_T… · THE OIL & GAS YEAR ISBN 978-1-78302-092-8 9781783020928 ... ber of rigs available

ABU DHABI 2015

ABU

DH

ABI

2015TH

EO

IL&

GA

SYEA

R

ww

w.t

heoi

land

gasy

ear.c

om

9781783020928

ISBN 978-1-78302-092-8

A sustainable futureH.E. Suhail Mohamed Faraj AL MAZROUEIMinister of Energy

Global connectionH.E. Abdulla Nasser AL SUWAIDIDirector GeneralABU DHABI NATIONAL OIL COMPANY

The age of gasH.E. Sultan AL JABERCEO of EnergyMUBADALA DEVELOPMENT COMPANY

ARTICLES | INTERVIEWS | VIEWPOINTS | MARKET ANALYSIS | RESOURCES | PROJECTS | MAPS | INVESTOR SPOTLIGHTS

THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry

00A_COVER_ABUDHABI_2015.qxp_Layout 1 05/01/15 17:16 Page 1

00A_COVER_ABUDHABI_2015.qxp_Layout 1 05/01/15 17:16 Page 2

01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 1






12 THE YEAR IN REVIEW

13 INTERVIEW: H.E. Suhail Mohamed Faraj Al Mazrouei, Minister of Energy

16 INTERVIEW: H.E. Abdullah Nasser Al Suwaidi, ADNOC18 VIEWPOINT: The age of gas. H.E. Sultan Al Jaber, Abu

Dhabi Future Energy Company, Mubadala Development Company

19 THE YEAR’S AWARDS20 ABU DHABI AT A GLANCE21 THE INVESTORS INDEX22 THE YEAR IN ENERGY

24 DIPLOMACY & POLITICS

25 ARTICLE: Beacon of stability, beacon of change. Abu Dhabi is diversifying its economy to ensure sustainability

26 IN POPULATION: GCC population growth, 1995-201327 INTERVIEW: H.E. Sheikha Lubna bint Khalid Al Qasimi,

Minister of International Co-operation and Development28 VIEWPOINT: An optimal mix. Adnan Z Amin, IRENA29 INTERVIEW: H.E. Abdalla Salem El Badri, OPEC30 ARTICLE: 2030 vision. The emirate’s 15-year targets30 IN COMPARISON: Abu Dhabi's oil and non-oil GDP, 201331 INTERVIEW: H.E. Ali Majed Al Mansoori, ADDED32 MARKET ANALYSIS: Market evolution. H.E. Mohamed

Helal Al Muhairi, Abu Dhabi Chamber of Commerce and Industry

FOLDOUT MAP: Abu Dhabi’s sphere of influence33 INTERVIEW: H.E. Fahad Saeed Al Raqbani, ADCED

34 EXPLORATION & PRODUCTION

35 ARTICLE: A new dawn for maturing fields. The expiry of a key onshore concession means big changes ahead

35 IN RATIO: Reserves-to-production ratio, 201338 INTERVIEW: Al Rashid Al Jarwan, Adma-Opco39 COMMENT: The future looks bright. Umm Lulu developed40 INTERVIEW: Hatem Nusaibeh, Total E&P UAE41 PULLOUT MAP: Oil and gas concessions, 201542 VIEWPOINT: Capture and storage. Neri Askland, Statoil43 INTERVIEW: Abdulkarim Al Mazmi, BP44 MARKET ANALYSIS: Mature prospects. Amer Yahya

Al Shaikh Ali, Total Abu Al Bukhoosh45 COMPANY PROFILE: ADCO

45 IN PRODUCTION: New field startups in Abu Dhabi46 INTERVIEW: Richard Doidge, Maersk Oil47 GEOLOGY REPORT: What lies beneath48 COMPANY PROFILE: Wintershall Middle EastFOLDOUT MAP: Zadco and Adma-Opco offshore operations49 MARKET ANALYSIS: New technology on the horizon.

Marc Durandeau, PI50 COMPANY PROFILE: OMV Group51 ARTICLE: Carbon dioxide from steel to field. Carbon

capture, use and storage programmes52 COMPANY PROFILE: Zakum Development Company53 MARKET ANALYSIS: Adopt new techniques. Yosuke

Ueda, Jodco54 COMPANY PROFILE: Jogmec54 IN EXPORT: Top petroleum export destinations55 COMMENT: ADIPEC at 30. The annual event is an

important part of the industry’s calendar56 MARKET ANALYSIS: Seismic and reservoir

characterisation. José Pereira, Partex Oil and Gas57 ARTICLE: Southeastern promise. Outlook for ADCOs fields58 INVESTOR SPOTLIGHTS: Bunduq Company, ADOC 59 INVESTOR SPOTLIGHTS: Al Yasat Company for

Petroleum Operations, Al Dhafra Petroleum Operations, Mubadala Petroleum

60 THE GAS YEAR

61 ARTICLE: Reply with supply. Projects to reduce Abu Dhabi’sdependence on gas imports

62 IN RESERVES: Natural gas reserves, 2003 and 201363 INTERVIEW: Saif Sultan Al Nasseri, ADNOC64 INTERVIEW: Abdul Aziz Al Ameri, Gasco65 PROJECT HIGHLIGHT: Integrated Gas Development

phase one66 INTERVIEW: Fahim Kazim, Adgas67 PROJECT HIGHLIGHT: EmiratesLNG terminal68 INTERVIEW: Ibrahim Al Ansaari, Dolphin Energy69 MARKET ANALYSIS: Industrial gas supply. Salem

Al Mansoori, Elixier70 MARKET ANALYSIS: Old gas, new methods. Vipin Sher,

Praxair Gulf Industrial Gases71 COMMENT: Break convention. Developing sour gas72 INTERVIEW: Naji Skaf, Gulf Cryo73 INVESTOR SPOTLIGHTS: Air Liquide, Gulf Industrial

Gases

CON

TEN

TSA

BU D

HA

BI 2

015

7

ABU DHABI 2015

The Who’s Who of the Global Energy Industry

In partnership with:

Co-Published with:

24Diplomacy & PoliticsThe UAE is diversifying its economy to addresssurging energy demand. Through downstreamdiversification, more efficient hydrocarbons ex-traction and processing and cleaner, more sus-tainable power generation, the country hopesto add value to its hydrocarbons resources. Pos-sessing nearly 6 percent of global oil reservesand 3 percent of the world’s gas supplies al-lowed it to weather the global financial crisis.

34Exploration & ProductionOnshore concessions accounting for productionof nearly 1.61 million barrels of crude per day ex-pired in 2014 and Abu Dhabi’s oil and gas industrychanged trajectory. Maintenance of assets andcutting-edge technology for production enhance-ment could help the emirate export 3.5 millionbarrels of oil per day by 2017. For renewed con-cessions, 11 international oil companies are nowpre-qualified to place bids, with further interna-tional participation of industry players expected.

The Who’s Who of the Global Energy Industry

THE OIL & GAS YEAR

www.theoilandgasyear.com

Financial content partner:

THE OIL & GAS YEAR | ABU DHABI 2015



xx74The Year’s Focus: Bab & ShahSour Gas ProjectsExploitation of Abu Dhabi’s large sour gasfieldsis underway, as the emirate requires increasingamounts of natural gas to sustain swelling de-mand for power generation, water desalinationand industry. Two billion-dollar extraction, pro-cessing and delivery projects that were previ-ously too expensive and risky to consider areunderway, the first to start producing in 2015.

86Oilfield ServicesAbu Dhabi is in need of oilfield services com-panies able to locate and develop new hydro-carbons pockets for its numerous large-scaleprojects. To achieve these goals services firmsare offering advanced technology, such as seis-mic surveying and extended-reach drilling,that target hard-to-reach deposits. Abu Dhabiis also investing heavily in enhancing the num-ber of rigs available for upstream operations.

60The Gas YearThe UAE is a net importer of natural gas andis considering looking as far away as the USto satisfy demand for natural gas imports.New gas projects are underway to provideenough energy for the growing economy, en-ergy-intensive industries and the overallneeds of the population, along with upgradesto older infrastructure. Replacing reinjectionof associated gas with carbon dioxide, nitro-gen, chemical or water injection is a priority.

74 THE YEAR’S FOCUS: Bab & Shah Sour Gas Projects

75 ARTICLE: Risk and reward. Mega-projects worth billions of dollars are in the works to increase gas supply

78 INTERVIEW: Saif Ahmed Al Ghafli, Al Hosn Gas78 COMMENT: Where there’s a will. Developing sour gas79 RESOURCE: Shah Processing Plant80 RESOURCE: What is sour gas?FOLDOUT MAP: Sour gas world map81 RESOURCE: The evolution of sour gas82 INTERVIEW: Andrew Vaughan, Shell83 MAP: Abu Dhabi gas distribution network84 PROJECT HIGHLIGHT: Etihad Rail network84 MAP: Etihad Rail network85 MARKET ANALYSIS: The sour endeavour

86 OILFIELD SERVICES

87 ARTICLE: Against the trend. Oilfield services companies can boost production in both new and maturing fields

88 IN ACTIVITY: Rig count for Abu Dhabi and Middle East89 INTERVIEW: Hussein Fouad El Ghazzawy, Schlumberger

UAE90 COMPANY PROFILE: National Drilling Company92 MARKET ANALYSIS: Innovation and co-operation. Nabil

Al Alawi, AlMansoori Specialized Engineering93 INTERVIEW: Rami Qasem, GE Oil & Gas94 VIEWPOINT: Shared interests. Osama Amir Fadhel, TPI95 INTERVIEW: Atif Arikat, Al Ghaith Oilfield Supplies &

Services96 MARKET ANALYSIS: Regulatory standards. Akram Tamari,

Atlas Copco Rental97 INTERVIEW: Charlie Sinclair, Interwell98 VIEWPOINT: Partnered production. Iain Morrison, AGR99 MARKET ANALYSIS: An energy-efficient oasis. Benoit

Dubarle, Schneider Electric100 INVESTOR SPOTLIGHTS: Weatherford, Tenaris Global

Services, National Oilwell Varco, Welltec101 COMPANY PROFILE: Veolia Water Solutions

102 DOWNSTREAM, POWER & INDUSTRY

103 ARTICLE: Take stock of expansion. The government aims to boost competition in the downstream sector

106 INTERVIEW: Jasem Ali Al Sayegh, Takreer

106 IN REFINING: Regional refining capacity, 2004 and 2013107 PROJECT HIGHLIGHT: Ruwais carbon black and

delayed coker project108 PROJECT HIGHLIGHT: Borouge 3 plant expansion109 ARTICLE: Fujairah emerges as a downstream centre.

The port is a key exit and entry point for Abu Dhabi’s hydrocarbons, circumventing the Straight of Hormuz

110 COMPANY PROFILE: ADWEA110 IN FINANCING: ADWEA Mirfa independent water and

power project financiers by country111 IN ELECTRICITY: ADWEC electricity production111 IN CONSUMPTION: Abu Dhabi electricity demand111 IN CAPACITY: UAE power generation capacity112 MAP: ADWEC electricity and water networks113 COMPANY PROFILE: Emirates Steel Industries114 PROJECT HIGHLIGHT: ADCO Rumaitha and Bab

CO2 Injection Project115 COMPANY PROFILE: ADNOC Distribution116 INVESTOR SPOTLIGHTS: Cummins Middle East, Ruwais

Fertilizer Industries, Emirates Global Aluminium, Abu Dhabi National Chemicals Company

118 ENGINEERING & CONSTRUCTION

119 ARTICLE: Engineering for expansion. Abu Dhabi safeguards itself from over-reliance on the upstream sector

120 IN CONTRACTS: EPC contract awards by sector, 2013121 VIEWPOINT: FEED for thought. Vaseem Khan, Technip122 INTERVIEW: James Voskamp, WorleyParsons123 VIEWPOINT: Facilities for growth. Ali Vezvaei, Linde

Engineering124 INTERVIEW: Rajagopalan Srivatsan, Larsen & Toubro125 COMPANY PROFILE: NPCC126 INTERVIEW: Jesper Thomsen, Ramboll Oil & Gas127 COMPANY PROFILE: Mott MacDonald128 COMMENT: Full hail. Bringing the Hail field on line129 PROJECT HIGHLIGHT: North East Bab phase three131 MARKET ANALYSIS: Local and international competition.

Khalid Al Jabri, General Petroleum Services132 COMPANY PROFILE: Voith Middle East133 ARTICLE: Future fields. New technology for data systems134 MARKET ANALYSIS: Hi-tech oilfields. Carlos Marques,

Control & Applications Emirates135 INVESTOR SPOTLIGHTS: Aveva, Butec, Penspen

International, Petrofac Emirates

CON

TEN

TSA

BU D

HA

BI 2

015

9

ABU DHABI 2015

The Who’s Who of the Global Energy Industry THE OIL & GAS YEAR | ABU DHABI 2015www.theoilandgasyear.com

The Oil & Gas Year is audited by BPA Worldwide


136 MARINE & LOGISTICS

137 ARTICLE: Growth for all to sea. Abu Dhabi is investing in offshore projects and relying on marine transport

138 INTERVIEW: Martijn Van de Linde, Abu Dhabi Terminals139 COMPANY PROFILE: ADNATCO & NGSCO140 INTERVIEW: Jamal Abki, Grandweld Shipyards141 COMPANY PROFILE: Irshad142 INTERVIEW: Samer Qiblawi, Marine Capabilities143 VIEWPOINT: Mix it up. Ronnie Knowles, GAC Abu Dhabi144 COMPANY PROFILE: NMDC144 IN CONSUMPTION: Regional oil consumption145 MARKET ANALYSIS: Marine pollution reduction. Tom

Boyle, Goltens UAE146 COMMENT: A new crude. Das crude ensures efficiency 147 MARKET ANALYSIS: Offshore support vessel evolution.

Joseph Brincat, ABS148 RESOURCE: Abu Dhabi oil and gas industry emissions149 INTERVIEW: Mahmoud Ismael, Falcon Aviation Services

150 FINANCE, CONSULTANCY & LEGAL

151 ARTICLE: Prepared to weather the storm. UAE investment prospects will survive low oil prices

151 IN CONTRIBUTION: GDP sources, 2005 and 2013152 IN BUDGET: Oil price needed to balance national

budgets, OPEC members153 INTERVIEW: André Sayegh, FGB154 MARKET ANALYSIS: The Norwegian model. Neri Askland,

Statoil

155 INTERVIEW: Marc Mollema, NBAD156 VIEWPOINT: A transparent energy market. Paul

Navratil, Michael Hurley, PwC157 INTERVIEW: David Cynamon, Christopher Gunson,

Pillsbury Winthrop Shaw Pittman

158 ASSOCIATED SERVICES

159 ARTICLE: Study, survey and secure. Research and development in the spotlight

159 IN INNOVATION: Global Innovation Index research and development rankings, 2014

160 INTERVIEW: Thomas Hochstettler, PI161 MARKET ANALYSIS: Offshore survey technology. Matt

Suchley, Horizon Geosciences162 INTERVIEW: Edward Talbot, ALE163 MARKET ANALYSIS: Lift and learn. Gary Mahoney,

Dutest 164 INTERVIEW: Karim Sabet, United Safety166 MARKET ANALYSIS: Inspection and maintenance. Stuart

Bell, Totus Energy167 INVESTOR SPOTLIGHTS: Statistics Centre - Abu

Dhabi, Applus+ Velosi, Abela & Co

168 EXECUTIVE GUIDE

169 ACCOMMODATION173 CALENDER178 ACKNOWLEDGMENTS|ADVERTISERS180 IN BRIEF

Publisher: Emmanuelle Berthemet Editor-in-Chief: Gilles Valentin COO: Aslı Konyalı Regional Director: Jack Miller Country Director: Şerife Atıcı Country Editor: Benedick GibsonManaging Editor: Simon Johns Production Manager: Alex Mazonowicz Chief Sub-Editor: Amanda Towle Deputy Chief Sub-Editor: Suzanne Carlson News Editor: Nick AugusteijnWeb Editor: Angus Foggie Co-ordinating Sub-Editor: John Houghton-Brown Sub-Editors: Sibel Akbay, Jessenia Chapman, James Kiger, Laura Moth, Daniel Salinas, Jordan Schultz,Christina St. John Editorial Intern: Faustine Deffobis Contributors: Ian Ackerman, Dan Brookes, Aylin Erman, Max Harwood, Jon Hemming, Joseph Logan, Samantha North, DanielRosinsky-Larsson, Oliver Tree, Martin Vladimirov Creative Director: Begüm Alpay Co-ordinating Art Director: Melis Tüzün Art Directors: Javier González, Ahmet Sağır, Didem TereyağoğluGeneral Manager: Eda Nuhoğlu Director of Global Circulation: Ebru Ak Human Resources: Serra Pelit CFO: Hasan Meric Printing: APA Uniprint Production: Wildcat International FZ-LLC ISBN 978-1-78302-092-8 E-mail [email protected] visit www.theoilandgasyear.com Cover: photograph courtesy of the National Marine Dredging Company

The Oil & Gas Year is a trading name of Wildcat International FZ-LLC. Copyright Wildcat International FZ-LLC 2014. All rights reserved. No partof this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical,photocopied, facsimiled, recorded or otherwise, without the prior permission of Wildcat International FZ-LLC. Wildcat International FZ-LLC hasmade every effort to ensure that the content of this publication is accurate at the time of printing. However, Wildcat International FZ-LLC makesno warranty, representation or undertaking, whether expressed or implied, nor does it assume any legal liability, direct or indirect, orresponsibility for the accuracy, completeness or usefulness of any information contained in this publication.

Exploring knowledgeExtracting intelligenceRefining communicationINTERNATIONAL

CON

TENTS

ABU

DH

ABI 2015

10

ABU DHABI 2015The Who’s Who of the Global Energy Industry

THE OIL & GAS YEAR

The Who’s Who of the Global Energy IndustryTHE OIL & GAS YEAR | ABU DHABI 2015

118Engineering & ConstructionAbu Dhabi seeks to prolong the life of its hy-drocarbons resource base and looks to projectsthat will diversify and enlarge its energy indus-try. Emphasis is placed on accuracy in projectbids, seeing front-end engineering and designbecome clearer and projects more integrated.Many companies hoping to participate in en-gineering and construction tenders will up-grade their capabilities to remain competitive.

136Marine & LogisticsAbu Dhabi invested heavily in upstream infra-structure since 2006 to increase its hydrocarbonsoutput. As oil and gas production enhancementmoves offshore, artificial islands are under con-struction in two large fields. Expanded port ca-pabilities have further increased capacity. Thehydrocarbons industry depends more on marinetransport every year, requiring equipment andtraining upgrades to ensure people and mate-rials reach their intended destinations efficiently.

102Downstream, Power &IndustrySix years after the initiation of Abu Dhabi’s Eco-nomic Vision 2030, the global price of Brent crudefell below $60 per barrel in December 2014. Thegovernment is focused on enhancing the down-stream sector to boost economic stability alongwith energy security. Further decreasing the UAE’soil dependence will require the expansion of re-newable energy resources and heavy industries,as well as the integration of plants and facilities.

www.theoilandgasyear.com



13 A Sustainable futureH.E. Suhail Mohamed Faraj AL MAZROUEIMinister of Energy

16 Global connection H.E. Abdulla Nasser AL SUWAIDIDirector GeneralABU DHABI NATIONAL OIL COMPANY

THE YEAR IN REVIEWph

oto

cour

tesy

of A

DN

OC


The Who’s Who of the Global Energy Industry THE OIL & GAS YEAR | ABU DHABI 2015

THE

YEA

R IN

REV

IEW

13

INTE

RVIE

W

INTERVIEW

The UAE’s Ministry of Energy works with the Abu Dhabi National Oil Company(ADNOC) and Abu Dhabi’s Supreme Petroleum Council to meet production and distribution targets. Minister of Energy H.E. Suhail Mohamed Faraj AlMazrouei talks to TOGY about developing new oil, gas and alternative resourcesto ensure long-term sustainability and reinforce the country’s energy security.

A sustainable future

H.E. Suhail Mohamed Faraj AL MAZROUEI Minister of Energy

What is driving the decision to increasecrude production capacity to 3.5 million bar-rels of oil per day (bopd) by 2017?Our growing economy requires more resourcesyear after year. Abu Dhabi has made the deci-sion to increase its hydrocarbons output inresponse to growing demand from the UAE.Part of that increase will be made by the on-going expansion of the UAE’s refining capacity,from 500,000 barrels of oil equivalent per day(boepd) up to 920,000 boepd.

We decided to develop some of our newfields and ADNOC has signed exploration agree-ments at new concessions with the China Na-tional Petroleum Corporation and the KoreaNational Oil Company. In addition to developingmore resources, ADNOC is targeting productionof 1.8 million bopd from onshore fields, an in-crease from the current 1.6 million bopd.

Our offshore production is also being in-creased. One of our offshore operators, theAbu Dhabi Marine Operating Company, is rais-ing its production target to 1 million boepd.The other, the Zakum Development Company,is close to its targeted 750,000 bopd. Withthese increases, we hope to attain a productioncapacity of 3.5 million bopd by 2017. Webelieve that this capacity will be needed,though not necessarily by 2017.

The International Energy Agency has fore-casted that demand for crude from OPECmembers will not exceed 30 million bopd be-fore 2017. However, Abu Dhabi is expectingrequests from its trading partners to increasetheir oil allocations by 2020. We envision in-creased demand for our crude from both ourtrading partners and the UAE, and that is whythese production targets have been set.

What additional resources are available forAbu Dhabi to use in order to meet the UAE’sincreasing electricity demand?The UAE imports almost half of the naturalgas it requires for power generation in theform of LNG. This is because most of the gasproduced from our own reserves is reinjectedinto our fields to maintain pressure.

In order to secure more gas for generationfeedstock we, along with ADNOC and its part-ners, have moved ahead with plans to further

develop additional resources, including sourand tight gas, which will also result in the ad-ditional production of condensates.

In addition to this, we are engaging withinternational oil companies that possess ahigh level of technological proficiency in orderto find ways of reducing or replacing the rein-jected gas and freeing it for power generation,consumption and alternative uses, such ascarbon capture and underground storage andgaseous nitrogen capture.

Even though these projects will enhanceAbu Dhabi’s gas supply chain, the UAE is stillexpecting to import more natural gas in thefuture to meet domestic demand.

EmiratesLNG, which is a joint venture de-veloping a regasification facility in Fujairah,will import close to 9 million tonnes per yearof LNG for power generation and regasification.The more we develop our domestic gas re-sources, the cheaper LNG imports will become,so it is economic for us to do this despite thelarge capital expenditure it requires.

How much progress has Abu Dhabi made inthe replacement of associated gas for rein-jection into mature reservoirs?We commissioned a nitrogen plant at Mirfa,which is operated by the ADNOC Linde In-dustrial Gases Company. This company suppliesnitrogen to the Habshan onshore processingcomplex for compression and injection intothe nearby Thammama gas reservoirs.

The ministry has also sanctioned a jointventure between ADNOC and the Abu DhabiFuture Energy Company to capture carbondioxide from the steel plant operated by state-owned Emirates Steel Industries and inject itinto the Thammama reservoirs via Habshan.

We expect to commission more of thesekinds of projects in the future to boost gasproduction, but we are looking for the bestreservoirs to target for injection.

How does the ministry’s relations with ADNOCcomplement its role in retaining market sta-bility and supply security?Managing market dynamics is best achievedby sharing all the information received fromthe various bodies upon which the Ministry

We areengaging with

international oilcompanies that

possess a high levelof technological

proficiency in orderto find ways of

reducing orreplacing the

reinjected gas.

IN FIGURES

Crude production as ofNovember 2014

3 million bopd2017 crude production target

3.5 million bopd

02_THE YEAR IN REVIEW_ABUDHABI_2015.qxp 05/01/15 17:30 Page 13

THE OIL & GAS YEAR ABU DHABI 2015staging.togy.dmz.stde.sqli.com/content/uploads/2015/01/Preview_T… · THE OIL & GAS YEAR ISBN 978-1-78302-092-8 9781783020928 ... ber of rigs available

Documents