00A_COVER_ABUDHABI_2015.qxp_Layout 1 05/01/15 17:16 Page 1 THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry ARTICLES | INTERVIEWS | VIEWPOINTS | MARKET ANALYSIS | RESOURCES | PROJECTS | MAPS | INVESTOR SPOTLIGHTS THE OIL & GAS YEAR ABU DHABI 2015 9 781783 020928 ISBN 978-1-78302-092-8 2015 www.theoilandgasyear.com ABU DHABI A sustainable future H.E. Suhail Mohamed Faraj AL MAZROUEI Minister of Energy Global connection H.E. Abdulla Nasser AL SUWAIDI Director General ABU DHABI NATIONAL OIL COMPANY The age of gas H.E. Sultan AL JABER CEO of Energy MUBADALA DEVELOPMENT COMPANY 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 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 2 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 3 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 4 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 5 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 6 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 7 ABU DHABI 2015 THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry Financial content partner: 24 34 Diplomacy & Politics Exploration & Production The UAE is diversifying its economy to address surging energy demand. Through downstream diversification, more efficient hydrocarbons extraction and processing and cleaner, more sustainable power generation, the country hopes to add value to its hydrocarbons resources. Possessing nearly 6 percent of global oil reserves and 3 percent of the world’s gas supplies allowed it to weather the global financial crisis. Onshore concessions accounting for production of nearly 1.61 million barrels of crude per day expired in 2014 and Abu Dhabi’s oil and gas industry changed trajectory. Maintenance of assets and cutting-edge technology for production enhancement could help the emirate export 3.5 million barrels of oil per day by 2017. For renewed concessions, 11 international oil companies are now pre-qualified to place bids, with further international participation of industry players expected. 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, ADNOC 18 VIEWPOINT: The age of gas. H.E. Sultan Al Jaber, Abu Dhabi Future Energy Company, Mubadala Development Company 19 THE YEAR’S AWARDS 20 ABU DHABI AT A GLANCE 21 THE INVESTORS INDEX 22 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, 1995-2013 27 INTERVIEW: H.E. Sheikha Lubna bint Khalid Al Qasimi, Minister of International Co-operation and Development 28 VIEWPOINT: An optimal mix. Adnan Z Amin, IRENA 29 INTERVIEW: H.E. Abdalla Salem El Badri, OPEC 30 ARTICLE: 2030 vision. The emirate’s 15-year targets 30 IN COMPARISON: Abu Dhabi's oil and non-oil GDP, 2013 31 INTERVIEW: H.E. Ali Majed Al Mansoori, ADDED 32 MARKET ANALYSIS: Market evolution. H.E. Mohamed Helal Al Muhairi, Abu Dhabi Chamber of Commerce and Industry FOLDOUT MAP: Abu Dhabi’s sphere of influence 33 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, 2013 38 INTERVIEW: Al Rashid Al Jarwan, Adma-Opco 39 COMMENT: The future looks bright. Umm Lulu developed 40 INTERVIEW: Hatem Nusaibeh, Total E&P UAE 41 PULLOUT MAP: Oil and gas concessions, 2015 42 VIEWPOINT: Capture and storage. Neri Askland, Statoil 43 INTERVIEW: Abdulkarim Al Mazmi, BP 44 MARKET ANALYSIS: Mature prospects. Amer Yahya Al Shaikh Ali, Total Abu Al Bukhoosh 45 COMPANY PROFILE: ADCO The Who’s Who of the Global Energy Industry 45 IN PRODUCTION: New field startups in Abu Dhabi 46 INTERVIEW: Richard Doidge, Maersk Oil 47 GEOLOGY REPORT: What lies beneath 48 COMPANY PROFILE: Wintershall Middle East FOLDOUT MAP: Zadco and Adma-Opco offshore operations 49 MARKET ANALYSIS: New technology on the horizon. Marc Durandeau, PI 50 COMPANY PROFILE: OMV Group 51 ARTICLE: Carbon dioxide from steel to field. Carbon capture, use and storage programmes 52 COMPANY PROFILE: Zakum Development Company 53 MARKET ANALYSIS: Adopt new techniques. Yosuke Ueda, Jodco 54 COMPANY PROFILE: Jogmec 54 IN EXPORT: Top petroleum export destinations 55 COMMENT: ADIPEC at 30. The annual event is an important part of the industry’s calendar 56 MARKET ANALYSIS: Seismic and reservoir characterisation. José Pereira, Partex Oil and Gas 57 ARTICLE: Southeastern promise. Outlook for ADCOs fields 58 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’s dependence on gas imports 62 IN RESERVES: Natural gas reserves, 2003 and 2013 63 INTERVIEW: Saif Sultan Al Nasseri, ADNOC 64 INTERVIEW: Abdul Aziz Al Ameri, Gasco 65 PROJECT HIGHLIGHT: Integrated Gas Development phase one 66 INTERVIEW: Fahim Kazim, Adgas 67 PROJECT HIGHLIGHT: EmiratesLNG terminal 68 INTERVIEW: Ibrahim Al Ansaari, Dolphin Energy 69 MARKET ANALYSIS: Industrial gas supply. Salem Al Mansoori, Elixier 70 MARKET ANALYSIS: Old gas, new methods. Vipin Sher, Praxair Gulf Industrial Gases 71 COMMENT: Break convention. Developing sour gas 72 INTERVIEW: Naji Skaf, Gulf Cryo 73 INVESTOR SPOTLIGHTS: Air Liquide, Gulf Industrial Gases www.theoilandgasyear.com THE OIL & GAS YEAR | ABU DHABI 2015 7 ABU DHABI 2015 Co-Published with: CONTENTS In partnership with: 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 8 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 9 ABU DHABI 2015 The Gas Year The UAE is a net importer of natural gas and is considering looking as far away as the US to satisfy demand for natural gas imports. New gas projects are underway to provide enough energy for the growing economy, energy-intensive industries and the overall needs of the population, along with upgrades to older infrastructure. Replacing reinjection of associated gas with carbon dioxide, nitrogen, chemical or water injection is a priority. 74 86 The Year’s Focus: Bab & Shah Sour Gas Projects Exploitation of Abu Dhabi’s large sour gasfields is underway, as the emirate requires increasing amounts of natural gas to sustain swelling demand for power generation, water desalination and industry. Two billion-dollar extraction, processing and delivery projects that were previously too expensive and risky to consider are underway, the first to start producing in 2015. 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 Gas 78 COMMENT: Where there’s a will. Developing sour gas 79 RESOURCE: Shah Processing Plant 80 RESOURCE: What is sour gas? FOLDOUT MAP: Sour gas world map 81 RESOURCE: The evolution of sour gas 82 INTERVIEW: Andrew Vaughan, Shell 83 MAP: Abu Dhabi gas distribution network 84 PROJECT HIGHLIGHT: Etihad Rail network 84 MAP: Etihad Rail network 85 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 East 89 INTERVIEW: Hussein Fouad El Ghazzawy, Schlumberger UAE 90 COMPANY PROFILE: National Drilling Company 92 MARKET ANALYSIS: Innovation and co-operation. Nabil Al Alawi, AlMansoori Specialized Engineering 93 INTERVIEW: Rami Qasem, GE Oil & Gas 94 VIEWPOINT: Shared interests. Osama Amir Fadhel, TPI 95 INTERVIEW: Atif Arikat, Al Ghaith Oilfield Supplies & Services 96 MARKET ANALYSIS: Regulatory standards. Akram Tamari, Atlas Copco Rental 97 INTERVIEW: Charlie Sinclair, Interwell 98 VIEWPOINT: Partnered production. Iain Morrison, AGR 99 MARKET ANALYSIS: An energy-efficient oasis. Benoit Dubarle, Schneider Electric 100 INVESTOR SPOTLIGHTS: Weatherford, Tenaris Global Services, National Oilwell Varco, Welltec 101 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 The Who’s Who of the Global Energy Industry xx Oilfield Services Abu Dhabi is in need of oilfield services companies able to locate and develop new hydrocarbons pockets for its numerous large-scale projects. To achieve these goals services firms are offering advanced technology, such as seismic surveying and extended-reach drilling, that target hard-to-reach deposits. Abu Dhabi is also investing heavily in enhancing the number of rigs available for upstream operations. 106 IN REFINING: Regional refining capacity, 2004 and 2013 107 PROJECT HIGHLIGHT: Ruwais carbon black and delayed coker project 108 PROJECT HIGHLIGHT: Borouge 3 plant expansion 109 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: ADWEA 110 IN FINANCING: ADWEA Mirfa independent water and power project financiers by country 111 IN ELECTRICITY: ADWEC electricity production 111 IN CONSUMPTION: Abu Dhabi electricity demand 111 IN CAPACITY: UAE power generation capacity 112 MAP: ADWEC electricity and water networks 113 COMPANY PROFILE: Emirates Steel Industries 114 PROJECT HIGHLIGHT: ADCO Rumaitha and Bab CO2 Injection Project 115 COMPANY PROFILE: ADNOC Distribution 116 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, 2013 121 VIEWPOINT: FEED for thought. Vaseem Khan, Technip 122 INTERVIEW: James Voskamp, WorleyParsons 123 VIEWPOINT: Facilities for growth. Ali Vezvaei, Linde Engineering 124 INTERVIEW: Rajagopalan Srivatsan, Larsen & Toubro 125 COMPANY PROFILE: NPCC 126 INTERVIEW: Jesper Thomsen, Ramboll Oil & Gas 127 COMPANY PROFILE: Mott MacDonald 128 COMMENT: Full hail. Bringing the Hail field on line 129 PROJECT HIGHLIGHT: North East Bab phase three 131 MARKET ANALYSIS: Local and international competition. Khalid Al Jabri, General Petroleum Services 132 COMPANY PROFILE: Voith Middle East 133 ARTICLE: Future fields. New technology for data systems 134 MARKET ANALYSIS: Hi-tech oilfields. Carlos Marques, Control & Applications Emirates 135 INVESTOR SPOTLIGHTS: Aveva, Butec, Penspen International, Petrofac Emirates www.theoilandgasyear.com THE OIL & GAS YEAR | ABU DHABI 2015 9 ABU DHABI 2015 60 CONTENTS The Oil & Gas Year is audited by BPA Worldwide 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 10 ABU DHABI 2015 THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry CONTENTS 10 102 Downstream, Power & Industry ABU DHABI 2015 Six years after the initiation of Abu Dhabi’s Economic Vision 2030, the global price of Brent crude fell below $60 per barrel in December 2014. The government is focused on enhancing the downstream sector to boost economic stability along with energy security. Further decreasing the UAE’s oil dependence will require the expansion of renewable energy resources and heavy industries, as well as the integration of plants and facilities. 118 136 Engineering & Construction Marine & Logistics Abu Dhabi seeks to prolong the life of its hydrocarbons resource base and looks to projects that will diversify and enlarge its energy industry. Emphasis is placed on accuracy in project bids, seeing front-end engineering and design become clearer and projects more integrated. Many companies hoping to participate in engineering and construction tenders will upgrade their capabilities to remain competitive. Abu Dhabi invested heavily in upstream infrastructure since 2006 to increase its hydrocarbons output. As oil and gas production enhancement moves offshore, artificial islands are under construction in two large fields. Expanded port capabilities have further increased capacity. The hydrocarbons industry depends more on marine transport every year, requiring equipment and training upgrades to ensure people and materials reach their intended destinations efficiently. 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 Terminals 139 COMPANY PROFILE: ADNATCO & NGSCO 140 INTERVIEW: Jamal Abki, Grandweld Shipyards 141 COMPANY PROFILE: Irshad 142 INTERVIEW: Samer Qiblawi, Marine Capabilities 143 VIEWPOINT: Mix it up. Ronnie Knowles, GAC Abu Dhabi 144 COMPANY PROFILE: NMDC 144 IN CONSUMPTION: Regional oil consumption 145 MARKET ANALYSIS: Marine pollution reduction. Tom Boyle, Goltens UAE 146 COMMENT: A new crude. Das crude ensures efficiency 147 MARKET ANALYSIS: Offshore support vessel evolution. Joseph Brincat, ABS 148 RESOURCE: Abu Dhabi oil and gas industry emissions 149 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 2013 152 IN BUDGET: Oil price needed to balance national budgets, OPEC members 153 INTERVIEW: André Sayegh, FGB 154 MARKET ANALYSIS: The Norwegian model. Neri Askland, Statoil 155 INTERVIEW: Marc Mollema, NBAD 156 VIEWPOINT: A transparent energy market. Paul Navratil, Michael Hurley, PwC 157 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, PI 161 MARKET ANALYSIS: Offshore survey technology. Matt Suchley, Horizon Geosciences 162 INTERVIEW: Edward Talbot, ALE 163 MARKET ANALYSIS: Lift and learn. Gary Mahoney, Dutest 164 INTERVIEW: Karim Sabet, United Safety 166 MARKET ANALYSIS: Inspection and maintenance. Stuart Bell, Totus Energy 167 INVESTOR SPOTLIGHTS: Statistics Centre - Abu Dhabi, Applus+ Velosi, Abela & Co 168 EXECUTIVE GUIDE 169 ACCOMMODATION 173 CALENDER 178 ACKNOWLEDGMENTS|ADVERTISERS 180 IN BRIEF Publisher: Emmanuelle Berthemet Editor-in-Chief: Gilles Valentin COO: Aslı Konyalı Regional Director: Jack Miller Country Director: Şerife Atıcı Country Editor: Benedick Gibson Managing Editor: Simon Johns Production Manager: Alex Mazonowicz Chief Sub-Editor: Amanda Towle Deputy Chief Sub-Editor: Suzanne Carlson News Editor: Nick Augusteijn Web 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, Daniel Rosinsky-Larsson, Oliver Tree, Martin Vladimirov Creative Director: Begüm Alpay Co-ordinating Art Director: Melis Tüzün Art Directors: Javier González, Ahmet Sağır, Didem Tereyağoğlu General Manager: Eda Nuhoğlu Director of Global Circulation: Ebru Ak Human Resources: Serra Pelit CFO: Hasan Meric Printing: APA Uniprint Production: Wildcat International FZLLC 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 part of 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 has made every effort to ensure that the content of this publication is accurate at the time of printing. However, Wildcat International FZ-LLC makes no warranty, representation or undertaking, whether expressed or implied, nor does it assume any legal liability, direct or indirect, or responsibility for the accuracy, completeness or usefulness of any information contained in this publication. THE OIL & GAS YEAR | ABU DHABI 2015 www.theoilandgasyear.com INTERNATIONAL Exploring knowledge Extracting intelligence Refining communication The Who’s Who of the Global Energy Industry 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 11 THE YEAR IN REVIEW 13 A Sustainable future H.E. Suhail Mohamed Faraj AL MAZROUEI Minister of Energy 16 Global connection H.E. Abdulla Nasser AL SUWAIDI Director General ABU DHABI NATIONAL OIL COMPANY photo courtesy of ADNOC 01_CONTENTS_ABUDHABI_2015.qxp 05/01/15 18:07 Page 12 02_THE YEAR IN REVIEW_ABUDHABI_2015.qxp 05/01/15 17:30 Page 13 A sustainable future What is driving the decision to increase crude production capacity to 3.5 million barrels of oil per day (bopd) by 2017? Our growing economy requires more resources year after year. Abu Dhabi has made the decision to increase its hydrocarbons output in response to growing demand from the UAE. Part of that increase will be made by the ongoing 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 new fields and ADNOC has signed exploration agreements at new concessions with the China National Petroleum Corporation and the Korea National Oil Company. In addition to developing more resources, ADNOC is targeting production of 1.8 million bopd from onshore fields, an increase from the current 1.6 million bopd. Our offshore production is also being increased. One of our offshore operators, the Abu Dhabi Marine Operating Company, is raising its production target to 1 million boepd. The other, the Zakum Development Company, is close to its targeted 750,000 bopd. With these increases, we hope to attain a production capacity of 3.5 million bopd by 2017. We believe that this capacity will be needed, though not necessarily by 2017. The International Energy Agency has forecasted that demand for crude from OPEC members will not exceed 30 million bopd before 2017. However, Abu Dhabi is expecting requests from its trading partners to increase their oil allocations by 2020. We envision increased demand for our crude from both our trading partners and the UAE, and that is why these production targets have been set. What additional resources are available for Abu Dhabi to use in order to meet the UAE’s increasing electricity demand? The UAE imports almost half of the natural gas it requires for power generation in the form of LNG. This is because most of the gas produced from our own reserves is reinjected into our fields to maintain pressure. In order to secure more gas for generation feedstock we, along with ADNOC and its partners, have moved ahead with plans to further The Who’s Who of the Global Energy Industry develop additional resources, including sour and tight gas, which will also result in the additional production of condensates. In addition to this, we are engaging with international oil companies that possess a high level of technological proficiency in order to find ways of reducing or replacing the reinjected gas and freeing it for power generation, consumption and alternative uses, such as carbon capture and underground storage and gaseous nitrogen capture. Even though these projects will enhance Abu Dhabi’s gas supply chain, the UAE is still expecting to import more natural gas in the future to meet domestic demand. EmiratesLNG, which is a joint venture developing a regasification facility in Fujairah, will import close to 9 million tonnes per year of LNG for power generation and regasification. The more we develop our domestic gas resources, the cheaper LNG imports will become, so it is economic for us to do this despite the large capital expenditure it requires. How much progress has Abu Dhabi made in the replacement of associated gas for reinjection into mature reservoirs? We commissioned a nitrogen plant at Mirfa, which is operated by the ADNOC Linde Industrial Gases Company. This company supplies nitrogen to the Habshan onshore processing complex for compression and injection into the nearby Thammama gas reservoirs. The ministry has also sanctioned a joint venture between ADNOC and the Abu Dhabi Future Energy Company to capture carbon dioxide from the steel plant operated by stateowned Emirates Steel Industries and inject it into the Thammama reservoirs via Habshan. We expect to commission more of these kinds of projects in the future to boost gas production, but we are looking for the best reservoirs to target for injection. How does the ministry’s relations with ADNOC complement its role in retaining market stability and supply security? Managing market dynamics is best achieved by sharing all the information received from the various bodies upon which the Ministry H.E. Suhail Mohamed Faraj AL MAZROUEI Minister of Energy 13 We are engaging with international oil companies that possess a high level of technological proficiency in order to find ways of reducing or replacing the reinjected gas. IN FIGURES Crude production as of November 2014 3 million bopd 2017 crude production target 3.5 million bopd THE OIL & GAS YEAR | ABU DHABI 2015 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 Al Mazrouei talks to TOGY about developing new oil, gas and alternative resources to ensure long-term sustainability and reinforce the country’s energy security. THE YEAR IN REVIEW INTERVIEW
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