ITP MEDIA GROUP / BUSINESS SEPTEMBER 2021 • VOL. 17, ISSUE 09 W A K E-U P C A L L W A K E-U P C A L L W E ’R E R U N N IN G OU T OF TIME FOR THE EN ER G Y TR A N S IT IO NThe maximum on eight axles. The LTM 1650-8.1 A lifting capacity of 700 tonnes with either a 54 or 80 metre telescopic boom. Global mobility and convenience thanks to Hillstart Aid, ECOmode, ECOdrive, VarioBase and hydraulic VarioBallast. Nothing more is possible on eight axles. www.liebherr.com Mobile and crawler cranes 2008-501_109 LWE_041_LTM_1650-8-1_2021_OilGasME_GB.indd 12008-501_109 LWE_041_LTM_1650-8-1_2021_OilGasME_GB.indd 117.06.21 09:4317.06.21 09:43SEPTEMBER 2021 / Volume 17 Issue 09 30 Project focus: KOC Jurassic Everything you need to know about Kuwait Oil Company’s Jurassic Pro- duction Facilities project (4 and 5) planned to close in Q2 2022, with an estimated budget of $980 million 42 Last word: CCS for LNG How carbon capture, utilisation and sequestra- tion is linked to LNG and the wider decarbonisation initiative in the oil and gas sector as it moves into the energy transition 26 Middle East Energy Awards As we look ahead to the close of nominations on 23 September, we run through the categories and encourage everyone read- ing to consider nominating themselves today! 14 On the cover: Energy transition Our cover story this month is a seris of articles on the energy transition, climate change, and the steps the oil and gas industry is taking (and must take) to fuel the transition Highlights in this issue: 14 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com SEPTEMBER 20214 IN THIS ISSUE oilandgasmiddleeast.com SEPTEMBER 2021 DOWNLOAD IT TODAY ON YOUR iOS, ANDROID OR KINDLE Also inside: App 30 06 / Editor’s letter Carla Sertin comments on the IPCC report and decarbonisation 13 / Interview We learn about HYTORC’s plans for the future and the company’s strategy 42 / Last word Learn about the impact of carbon capture on LNG 26 / Awards update Awards nominations will close at the end of the month; don’t wait, nominate now! 08 / News Update The latest news from across the Middle East upstream sector 13 06 14 08 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 30 / Project focus Everything you need to know about the KOC Jurassic Production Facilities 14 / Cover: Energy Transition A series of articles about the energy transition, climate change and decarbonisation in the oil and gas sector 26 Last month 42• Electric and Pneumatic Torque Tools • Online Flange Management System • Custom Engineering • Hydraulic Pumps • Augmented/Virtual Reality Support • HY-CARE • The HYTORC Standard INDUSTRIAL BOLTING 4.0 SAFER, FASTER, MORE INTELLIGENT +97148886211 • MENA@HYTORC.COM HYTORC.COM/HYTORC-MIDDLE-EAST6 oilandgasmiddleeast.com SEPTEMBER 2021 EDITOR’S LETTER Carla Sertin Editor Oil & Gas Middle East There is no more time to delay, we have to push the energy transition forward at full speed. Transformation rush SUBSCRIBETo subscribe to Oil & Gas Middle East, or other ITP Business titles, go to: www.itp.com/subscriptions. PO Box 500024, Dubai, UAE Tel: 00 971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP Media Group CEO: Ali Akawi Managing Director: Alex Reeve Editorial Editor: Carla Sertin Tel: +971 4444 3265 email: carla.sertin@itp.com Advertising Group Sales Manager: Mark Grennell Tel: +971 4444 3202 email: mark.grennell@itp.com Photography Senior Photographers: Efraim Evidor, Adel Rashid Staff Photographers: Aasiya Jagadeesh, Yuliya Petrovich, Jessica Samson, Fritz John Asuro, Ajith Narendra Production & Distribution Group Production & Distribution Director: Kyle Smith Production Manager: Basel Al Kassem Production Coordinator: Manoj Mahadevan Senior Image Editor: Emmalyn Robles Circulation Distribution & Circulation Manager: Evijin Pathrose Circulation Executive: Rajesh Pillai Distribution Coordinator: Avinash Pereira Marketing Director of Awards & Marketing: Daniel Fewtrell ITP Group CEO: Ali Akawi CFO: Toby Jay Spencer-Davies The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Published by and © 2021 ITP MEDIA Group FZ-LLC. THIS ISSUE: We look at the energy transition from multiple angles, and consider some lower-carbon solutions (p14) I’m not much of an alarmist, and believe that change comes in waves. Still, the recent IPCC report has stirred some sense of urgency within people across the globe and across industries. I also feel the call of that urgency, and believe the oil and gas industry is absolutely integral to the energy transition. I’ve seen major oil and gas companies trying to find their place in a lower-carbon future, investing into renewables and clean energy, finding new revenue streams, and invest- ing into lowering the carbon emissions of their own op- erations. But we need to push this ahead; we must double down on our efforts and find avenues to decarbonise. One way to reduce emissions is by increasing efficiency; on 27 September we’ll be discussing the impact of digitali- sation on decarbonisation with technology experts and a senior digital export from ADNOC Group. Join us to learn from the experts and improve your own operations. Check our website for more details; this isn’t one to miss. This is our planet and it is our fight.Neotor Lost Circulation Material8 NEWS UPDATE oilandgasmiddleeast.com SEPTEMBER 2021 • Current cybersecurity measures deepwater offshore ‘out of step’ The minimum industry guidelines, regulations and security techniques are out of step with current platform technology, connectivity requirements and cyber-attack methodology. • Blockchain could be instrumental in cutting oil and gas operational costs Leading players are seeking to simplify transaction processing using blockchain to boost operational efficiency and minimize compliance issues, and companies have identified practical use cases. Siemens Energy to support Egypt’s green hydrogen industry Siemens Energy signed an MoU with the Egyptian Electricity Holding Com- pany (EEHC) to develop hydrogen-based industry in Egypt with export capability. They will jointly promote investment, technology transfer, and implementation of hydrogen projects based on renewable energy. “The development of a home- grown hydrogen ecosystem and value chain in Egypt has the potential to deliver a more sustainable and prosperous future for Egyptians,” said Christian Bruch, President and CEO of Siemens Energy. “Together, we will seek to benefit from our human resources, our trained cadres, and our abundant natural re- sources of renewable energy in establishing an industrial sec- tor based on green hydrogen in Egypt,” said H.E. Mohamed Shaker. Siemens Energy and EEHC are planning a pilot project with 100 to 200 MW of electrolyzer capacity, which will help to drive early tech- nology deployment, establish a partner landscape, test regula- tory environment and certifi- cation, setup off-take relations, and define logistic concepts. IN BRIEF HYDROGEN RAINBOW? Green hydrogen refers specifically to hydrogen production that is powered by renewable energy, and there are several other hydrogen ‘types’. /08 News in brief /09 Play/Pause /10 #Trending For the latest news and analysis, visit oilandgasmiddleeast.com Coming up: The company plans to explore hydrogen production, storage, transportation and trading, and expanding its renewable energy sector SAUDI ARABIA QATAR UAE KUWAIT OMAN BAHRAIN KSA oil exports increased 126.1% in Q2 2021, rising by $25.7 billion compared to the same period in 2020. The total value of Saudi exports in Q2 2021 reached $63.6 billion. Offshore drilling company Vantage Drilling has been awarded three-year contracts for two of its jack-up drilling rigs to work offshore Qatar, starting in the first quarter of 2022. ADNOC has signed $1 billion in engineering framework agreements with eight contractors covering concept and FEED for major Abu Dhabi projects across the value chain. Kuwait National Petroleum Company is partnering with VMware for its digital transformation, taking a ‘cloud-first’ approach which it says will boost its agility and allow it to deliver new megaprojects. Petrofac appointed Dr. Khalid Al Jahwari as its country manager for Oman, and will work across the company’s portfolio to develop its capability offering and operations in the nation. The value of tenders issued by Bahrain in the first half of 2021 has increased by 60% compared to H1 2020, reaching $3.4 billion across industries, with oil leading the highest value of tenders. AROUND THE REGION9 NEWS UPDATE oilandgasmiddleeast.com SEPTEMBER 2021 In January 2021, Cummins announced the addition of Cummins Kuwait to its distribution network. Cummins Kuwait is a subsidiary of Cummins Arabia, a joint venture between Cummins Inc., USA and the Olayan Group of Companies, Saudi Arabia, the official distributor of Cummins products and solutions in the GCC coun- tries of Kuwait, Saudi Arabia and the UAE. Through the partnership with the Olayan Group, established in 2016, Cummins has demonstrated its commitment to the re- gion, and a focus on bringing best-in-class distribution support infrastructure for its solutions closer to its customers. Cummins has been well-represented in Kuwait through its partner General Transportation & Equipment (GTE), part Cummins Kuwait relocates to modern, purpose-built facility of the Olayan Group. With the establish- ment of Cummins Kuwait, Cummins as- pires to continue this journey and further strengthen its scale and capabilities to bring best-in-class engineering solutions, parts availability, and product support for its customers in Kuwait. Cummins Kuwait has been working closely with GTE to transition business responsibilities associ- ated with Cummins in the region. In August, Cummins Kuwait celebrated a milestone after relocating. Conveniently located close to the GTE facility in East Ahmadi Industrial Area, the state-of-the- art facility includes a workshop area and a warehouse as well as increased office space to provide a holistic environment for customers and employees. Amit Deshpande, Managing Director of Cummins Arabia, commented: “We feel incredibly fortunate to have the trust and opportunity to serve the business needs of our customers in Kuwait. The larger, modern facility will allow us to continue delivering the best-in-class products, parts, and quality service to our customers, and provide an improved working environ- ment to our employees.” OIL AND GAS CONTRACTS FALL The number of oil and gas contracts fell by 7% y-o-y in Q2 2021, and the value of those con- tracts also decreased by $18.8 billion compared to Q1 2021. CURBING GLOBAL GAS FLARING International oil and gas companies must cooperate and work with global platforms to properly address gas flaring and expedite its reduction. WOOD SECURES 30 HYDROGEN AWARDS Wood has secured more than 30 separate hydrogen awards in the first half of 2021, span- ning green, blue and bio-hydrogen projects, including with ADNOC. ARAMCO BACKS $906MN SOLAR An Aramco subsidiary has joined a consortium led by ACWA Power and Badeel on the $906 mn Sudair Solar PV project, the first under the PIF renewable programme. PLAY/PAUSE: Who’s moving up in the oil and gas world this month, and who’s falling away? “... We are very optimistic about the potential to unlock significant value with all our partners in this second competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources...” Sultan Al Jaber, CEO, ADNOC Group IN QUOTES “...with SABIC now a part of Aramco’s global enterprise, we see a game-changer in Downstream opportunities, with a scale and mix of products to expand our investments and partnerships in China....” Mohammed Al Qahtani, Senior Vice President, Downstream, Saudi AramcoNext >