< Previous30 THOUGHT LEADER - DIGITAL oilandgasmiddleeast.com FEBRUARY 2020 Klaus Schwab, who coined the term 4IR (the fourth industrial revolution), describes it as the first shift in which technologies actually intersect the physical, digital, and biological spheres. This exchange of information among machines, systems, and people changes everything – but so does the exponential speed of disruption, and the integration of multiple game-changers defining this new era. From artificial intelligence (AI) enabling machines to learn and adapt to robotics that free up people from repetitive or risky tasks, 4IR technologies can inform decision- making, enhance efficiency, and save capital and operational costs like never before. The question is knowing which ones to adopt and how – before it is too late. The urgency of reinvention Many industries –and governments– are experiencing a disconnect between their deep investments in 4IR and the timely scale-up of viable technologies. According to McKinsey & Company, more than two-thirds of surveyed industries around the globe said digitalisation was a top operational priority, with most identifying at least eight solutions across their operations. Yet three-quarters of those businesses were in “pilot purgatory”, stuck between implementation and deployment, in danger of being left behind. With 4IR is expected to create some $3.7 trillion in global manufacturing, that is a big risk to take. All signs point to a fully digitalised, automated future, so it is important to determine which technologies can bring the greatest value to our work, and how to unleash their potential. For real traction, strategy must drive technology – not vice versa. A case study in 4IR strategy Saudi Aramco’s goal to be the leading digitalised energy company by 2022 acknowledges that helping meet the world’s energy needs while shrinking the environmental imprint of the hydrocarbons shouldering much of that rising demand depends on advanced, integrated technologies and analytics. A few years ago, we launched the Engineering Solutions Centre (ESC), which became a launch pad for new predictive and analytics solutions covering a wide area of the company’s operations. This year, the ESC was transformed to meet that innovation ecosystem goal, becoming our 4th Industrial Revolution Centre, or 4IRC. Game-changers Data has been called this century’s raw material, as central to economic growth as oil. In this industry, which generates massive quantities of highly detailed traditional and digital information, data is integral to finding and maintaining long-term energy supplies, integrating refining and chemicals, and making energy more sustainable at every stage. With digitalisation taking place across the company’s different businesses, this volume is expected to increase exponentially. Each day the 4IRC, which works with above-the-surface businesses, connects to more than five million real-time data points, and records five billion events. Our digital strategy is based on key technologies that, integrated with big data, can shine a light on unseen oil and gas resources for better decisions on the fly, optimise operations across the entire value chain, enhance safety – and drastically save money and time. AI, arguably the most critical 4IR technology, can predictively process data for better energy efficiency, product quality and yield. At the 4IRC, AI makes use of operational big data from all facilities, with advanced analytics allowing us to generate value from the massive amounts of data generated in real time. AI’s pre- emptive capabilities are equally valuable, anticipating critical asset and machinery issues before they happen, preventing down-time that can run into hundreds of thousands of dollars. AI can also be embedded in edge control devices and instrumentation, allowing them to make timely decisions based on operating parameters for a real impact on reliable operations. Additive manufacturing’s ability to craft bespoke solutions is another cost- saver; but the economics are just part of the story. The technology makes it possible to reverse-engineer obsolete WORDS: AHMAD A. AL SA’ADI, SENIOR VICE PRESIDENT OF TECHNICAL SERVICES AT SAUDI ARAMCO DIGITAL REALITY As the oil & gas industry continues to digitalise, these are the technologies and strategies Saudi Aramco is leveraging as it aims to become the leading digitalised energy company by 2022 The VR hub allows people to navigate and explore Saudi Aramco’s major areas of operation (Photos: Musleh Al-Khathami/Aramco) oilandgasmiddleeast.com31 THOUGHT LEADER - DIGITAL oilandgasmiddleeast.com FEBRUARY 2020 oilandgasmiddleeast.com FEBRUARY 202032 THOUGHT LEADER - DIGITAL oilandgasmiddleeast.com FEBRUARY 2020 components, scan existing components for redesign, and model completely new concepts for production. Rethinking fabrication allows a 360 degree view of possible microstructures and chemical composition that can make totally new specs of previously existing parts. The cyber-physical realm also boosts productivity, making plants increasingly self-monitoring, self-learning and self- optimising. Augmented reality/virtual reality (AR/VR) lets users visualise process equipment, field instruments, piping and other systems for mission- critical procedures. Our Uthmaniyah Gas Plant’s “digital lighthouse” designation by the WEF is in large part due to wearable technologies like digital helmets that capture video images and glasses that load information directly onto the lens. The ability to simulate the live plant experience makes AR/VR a training boon, helping workers hit the ground running on emergency scenarios, repair procedures, engineering parameters and installations. AR/VR allows the training asset to be visualised and felt in any class, anywhere around our facilities. This capability is especially helpful for coordinating with field personnel various activities such as equipment inspection. Blockchain presents a new paradigm for cross-organisation transaction processing. The technology allows partners in a business network to work with one system of records or Distributed Ledger, enabling transparency and real-time settlement. At Saudi Aramco, the use of this technology in relationship with government agencies, suppliers, contractors, customers, banks, universities, and others will enable real-time, automated, trusted, and inexpensive transactional visibility. 4IR technologies require higher security for integrating operational technology with IT to exchange valuable data assets more freely across the full spectrum. Cloud computing is seen as an enabler for reliable, secure, scalable and dynamic deployment of solutions utilising the above technologies. The investment and time required to pilot new solutions can be reduced significantly. Solutions that pass pilot stage can be scaled up and down based on need, and can be integrated with other solutions that are deployed on the cloud more efficiently. One of the most impactful 4IR technologies, robotics is becoming mainstream in manufacturing-intensive uses. But industries like ours are using the technology both to automate tasks and reduce risk in extreme environments – such as crawler robots to inspect pipes and other subsea structures. SWIM-R, Saudi Aramco’s proprietary shallow-water pipeline inspection and modeling innovation, and other remotely operated robots can also perform asset predictive analytics and optimise performance. Drones, or Unmanned Aerial Vehicles, are used for automated tasks and for preventive measures such as gas-leakage detection, allowing the scanning of entire facilities much faster than a visual check during workarounds. Their use in security surveillance lowers risks for personnel, and provides real- time visuals and better monitoring of conditions for emergency support – for example, on-ground robots and drones used in firefighting and inspection of alleviated equipment. In addition, fixed- wing drones can cover long distances, such as pipeline inspection. Moreover, we are using drones to easily gather vital oil and gas exploration data from high cliffs and other geological obstacles. Digital use cases at Saudi Aramco 4IRC also demonstrate an investment in protecting the environment, such as preventive technologies that can predict possible marine flaring or hydrocarbon leakage; drones for monitoring company wildlife sanctuaries; and VR/AR use to raise environmental awareness as part of our mission. But the real beauty of digitalisation is how it creates synergies for organisational objectives. If a failing part is the problem, AI and data analytics can reveal the root cause. Additive manufacturing can uncover a possible redesign. AR/VR can trouble-shoot the issue, and a drone dispatched to the plant can provide real-time visuals. Thanks to this level of efficiency, integration spells the end of the silo where studies show that three times the benefits can be achieved when technologies are combined. 4IR technologies will not impact Saudi Aramco core businesses only, but other The AI zone develops and monitors AI solutions related to engineering, predictive maintenance, environment, enterprise, among others33 THOUGHT LEADER - DIGITAL oilandgasmiddleeast.com FEBRUARY 2020 areas of business such as procurement, sales, finance, transportation, and more. Brave new digital world With the world’s shift to all things digital, many business processes are becoming obsolete. Innovation commentator Tom Goodwin captured the essence of this disruption when he observed that “Uber, the world’s largest taxi company, owns no vehicles; Facebook, the world’s most popular media owner, creates no content; Alibaba, the most valuable retailer, has no inventory; and Airbnb, the world’s largest accommodation provider, owns no real estate.” In short, new and evolving models born of integrated technologies are redefining not just the nature of how the world works, but how we live. And thus global industries stand at a crossroads. Digitalisation can be the key to reinvention, affording greater resilience in changing times, and a better bottom line. It can train a more capable workforce, and create new jobs. It can spur innovation, taking core-domain solutions from idea, prototype and pilot to full-scale development. But to fully realise these outcomes, strategy must map the path. How? Comprehensive study of the organisation and its ecosystems; 4IR training and curricula; and change- management communication are key enablers. From there, benchmarked 4IR use cases can transform a digital vision into tangible applications for working faster, smarter, safer and greener. Strategic partnerships can multiply strengths toward shared goals, and an innovation culture can ensure digital readiness and spark human creativity. In sum: venturing, investments in disruptive startups, and partnerships with leading technology providers and industry peers are key digital enablers. Such collaboration will not only accelerate the digital transformation journey, it will also generate new revenue streams. However, technical advancement should be followed with regulatory advancement that will enable collaboration between private and public sectors and organisations for cross-organisational/cross-national solutions with greater impact on multiple industries and regions. The winners in this Fourth Industrial Revolution will be those who push new technological boundaries for added value, navigating from investment to roll-out to full implementation. In this disruptive new normal, there is no time to waste. The future of work is now. The AI Hub’s massive video screen displays over 20 operational solutions Khalid Abusalem, chairman of UAV and Robotics, operates a drone pilot simulator in the Immersive Zones Hub at the 4IR Center, while Osama Bahwal instructs34 COUNTRY FOCUS oilandgasmiddleeast.com FEBRUARY 202035 COUNTRY FOCUS oilandgasmiddleeast.com FEBRUARY 2020 AFTER EGYPT’S RED SEA EXPLORATION BIDDING ROUND, THE COUNTRY’S OFFSHORE SEGMENT APPEARS POISED FOR MORE GROWTH HIGH TIDE36 COUNTRY FOCUS oilandgasmiddleeast.com FEBRUARY 2020 At the close of Egypt’s Red Sea bidding round, it is clear that international oil companies see opportunity in the country, and its growth is just beginning to swell. Egypt awarded Shell, Mubadala, and Chevron exploration rights in the Red Sea. Chevron and Shell each won one block, and a third block was awarded to Shell and Mubadala. The three concessions cover a com- bined 10,000sqkm, and will require a minimum investment of $326mn. The li- censing round started in February, follow- ing Egypt’s gas boom in multiple regions. The Red Sea bidding round included ten exploration blocks, each approximately 3,000sqkm. Saudi Arabia has also dis- covered large amounts of gas in the Red Sea, and is planning to conduct feasibility studies. It will use its autonomous subsea seismic acquisition fleet for its Red Sea exploration efforts, which are expected to intensify in the next two years. Meanwhile, oil major ExxonMobil has acquired approximately 6,900sqkm off- shore Egypt in the Eastern Mediterranean for exploration activities. The acquisition mostly includes acreage in the North Marakia Offshore block, which is located approximately five miles offshore Egypt’s northern coast in the Herodotus basin. The remainder is in the North East El Am- riya Offshore block in the Nile Delta. “These awards strengthen our explo- ration portfolio in the Eastern Mediter- ranean,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “We look forward to work- ing with the government and deploy- ing our proven expertise and advanced technology.” ExxonMobil will operate both blocks and hold 100% interest. Operations, including acquisition of seismic data, are scheduled to begin in 2020. “ExxonMobil has been a partner in Egypt’s growth for more than 115 years, and these awards reaffirm our commitment to pursuing high-quality op- portunities in the country,” said Hesham Elamroussy, chairman and managing director of ExxonMobil Egypt. The awards add upstream interests to ExxonMobil’s long-standing downstream presence in Egypt, where it has been a leading fuels, lubricants and specialties marketer since 1902. Meanwhile, ENI discovered resources in the Abu Rudeis Sidri development lease in the Gulf of Suez, where operating compa- ny Petrobel, equally held by ENI and by the Egyptian General Petroleum Corporation (EGPC), drilled an appraisal well following the discovery of Sidri South. The Sidri 36 appraisal well, drilled to assess the field continuity westward in a down dip position with respect to Sidri-23 discovery well, encountered an impor- tant hydrocarbon column in the clastic sequences of the Nubia Formation (200 meters of hydrocarbon column). This continues ENI’s positive track record in “near field” exploration in Egypt. In a press release, ENI noted that this demonstrates how the use of new play concepts and advancements in technol- ogy has allowed the company to re- evaluate potential reserves. The well will be completed and put into production in the next few days with an expected initial 37 COUNTRY FOCUS oilandgasmiddleeast.com FEBRUARY 2020 flow rate of about 5,000 barrels per day. Petrobel immediately conceived a rapid development plan for the new discovery with a “fast-track” approach, leveraging on existing infrastructures in the vicinity of the well and maximizing facilities syn- ergies; this strategy will be applied also in future activities in the Sidri area with the next delineation and development wells connected to the production in a short time. The Sidri South discovery, which is estimated to contain about 200 million barrels of oil in place, will be reassessed following these new results. Meanwhile, Shell Egypt has announced that it will sell its onshore assets in the Western Desert as it focuses on offshore exploration and its integrated gas busi- ness in the country. “Shell is proud to have worked in Egypt for over 100 years,” said Wael Sawan, Shell’s upstream director. “We remain committed to Egypt and see our future in supporting the Government’s energy hub vision by growing Shell posi- tions across the offshore and LNG value chain. This is where we can best leverage our expertise, deliver the strongest added value to Egypt, and optimise our portfolio to ensure the company delivers a world class investment case.” Khaled Kacem, Shell Egypt country chair, said: “Shell companies are progress- ing with new offshore activities, including our West Delta Deep Marine (WDDM) Phase 9B project, which involves eight new development wells, and exploration in WDDM, for which a 2nd offshore rig has been recently mobilised, that will be followed up with exploration in Rosetta as well as the recently awarded Blocks 4 and 6” “We anticipate the start of active engagement with potential buyers in Q4 2019. During the divestment process we remain committed to ensure continued safe and reliable operations, and will keep our stakeholders regularly informed.” Zohr gas field, the largest in the Medi- terranean, produced 11.3bn cubic metres of gas in H1 2019, 3.6 times more than it did in the same period last year, according to a statement by Rosneft. Production is being undertaken by a consortium led by ENI, which holds a 50% stake, as well as Rosneft (30%), BP (10%) and Mubadala Petroleum (10%). By the end of 2019, gas output is expected to hit 76mn cubic metres of gas per day; it currently produced 68mn cubic metres of gas per day. Rosneft said that development of the field is “ahead of schedule,” with onshore gas treat- ment capacity increasing. Additionally, 11 production wells, three offshore pipelines, an offshore management platform, and all eight production trains of the gas treat- ment plant have been commissioned. In early 2018, Wintershall Dea an- nounced the start of an extensive work program in all own-operated Egyptian assets. The company is currently invest- ing more than $500mn over three years (2018-2020), aiming to significantly boost its gas and oil production in the country. “We look back on very active 18 months in Egypt”, said Mario Mehren, CEO of Wintershall Dea. “We have already realized a good part of the upside potential in our own-operated assets Disouq and in the Gulf of Suez. Furthermore, the West Nile Delta project is progressing towards com- pleting the development of the five fields by end of this year. These achievements are indicative of our lasting and sustain- able commitment to Egypt. “We look forward to making further contributions to the development of the Egyptian energy sector, supporting the country on its way to become an energy hub for the region,” he added. Wintershall Dea is currently conduct- ing a comprehensive work program for its Disouq onshore gas development project and the offshore oil fields in the Gulf of Suez. To achieve a significant ramp-up of production from the seven gas fields in Di- souq, Wintershall Dea started a re-devel- opment program. It includes the comple- tion and connection of nine existing wells to production, the drilling, completion and connection of new development and exploratory wells and the development of a new field in the north western part. To increase production from the mature oil fields in the Gulf of Suez, Wintershall Dea is currently carrying out a workover of existing wells, drilling side tracks and replacing existing pipelines with new ones with greater capacity. Additionally, Wintershall Dea is implementing a plan to maintain the assets integrity through an active maintenance and replacement program. While some assets are being divested, international oil companies appear to be swarming to Egypt’s vastly untapped po- tential offshore and onshore, having seen the success of the giant Zohr gas field.38 THE MIDDLE EAST ENERGY AWARDS oilandgasmiddleeast.com FEBRUARY 2020 THE MIDDLE EAST ENERGY AWARDS ARE BACK! For the first time, the awards will recognise achievements among EPC companies and providers of technology! Oil & Gas Middle East and Refi ning & Petrochemicals Middle East are excited to bring back the Middle East Energy Awards, where industry leaders will gather to celebrate at an aft ernoon awards ceremony on 30 June 2020! The awards will recognise achievements of the entire oil & gas value chain, covering upstream, midstream, and downstream. Following the success of last year’s ceremony, this year, we have expanded categories, which for the fi rst time include the EPC Company of the Year and the Technology Provider of the Year, rounding out our industry awards. 2019 While nominees and winners for all 15 categories will be selected by the editors of the two hosting publications, we highly encourage anyone who believes they should be considered for any of the categories to contact one of the editors at the earliest opportunity, detailing the category and why they wish to be nominated. The awards ceremony is a great occasion to recognise the progress that the oil and gas industry has made in the past year, and to award the people, projects, and companies that stand out in the industry, but it is an equally strong opportunity to catch up with colleagues and peers in the industry, and to meet and network with industry leaders from across the value chain. The guest of honour at last year’s event was ENOC CEO Saif Humaid Al Falasi, who received the inaugural Lifetime Achievement Award. Our awards ceremony attracts decision- makers and professionals from leading oil and gas firms, including ADNOC, Saudi Aramco, Halliburton, McDermott, Sipchem, Kuwait Oil Company, ENOC, and more! Look through some of our photos on the following page for a sneak peek into the 2019 edition of the awards. To enquire about seat & table sales, please contact Mark Grennell (mark. grennell@itp. com). To enquire about nominations, please contact Carla Sertin (carla.sertin@itp.com).39 THE MIDDLE EAST ENERGY AWARDS oilandgasmiddleeast.com FEBRUARY 2020 The categories CSR Initiative of the Year A CSR programme that has provided demon- strable and lasting benefits to its targeted beneficiaries. Digital Enabler of the Year A company which has made an outstanding contribution to the digital transformation of an energy firm through its products/services. Downstream Project of the Year The most ambitious, game-changing project in the regional refining and petrochemicals industry. Oil & Gas Woman of the Year An outstanding female achiever who has a successful track record and has made a tell- ing contribution to the energy industry. HSE Initiative of the Year A specific initiative that has demonstrably helped to reduce accidents & problems in the workplace, and has improved safety. Logistics Service Provider of the Year A logistics company offering innovative solutions that ease the logistics process and create value for energy companies. Oilfield Services Company of the Year The most successful, innovative OFS com- pany in the region over the last 18 months, showcasing interesting solutions. EPC Company of the Year The most successful, innovative, and ambitious EPC company in the region over the last 18 month. Technical Innovation of the Year A project that demonstrates an innovative technical solution which has solved a seri- ous problem faced by the energy industry. Talent Development Initiative of the Year An initiative that has made a difference by training the next generation of profession- als, or upskilling the existing workforce. Upstream Project of the Year An ambitious, innovative project that opti- mises or streamlines upstream operations, reflecting leading behaviour in the market. Young Oil & Gas Professional of the Year An employee, 30 or younger, whose work has had an exceptionally positive impact on their company in the past 18 months. Oil & Gas Executive of the Year An executive who has made a visible impact on the regional industry & fosters growth through innovation. Clean Energy Initiative of the Year This initiative demonstrates a strategic ap- proach to lowering a firm’s carbon footprint through the use of alternative energy. Technology Provider of the Year A provider of operational or process tech- nology that is ambitious and innovative, as showcased by its latest products.Next >