ITP MEDIA GROUP / BUSINESS MARCH 2020 • VOL. 16, ISSUE 03 The novel coronavirus has restrained China’s voracious hunger for oil, leaving Middle East producers with too much on their plates LOST APPETITEAriel has standardized the majority of our product line with the CP / CPs valve. Upgrade your fleet with field-proven technology, OEM quality, and a wide range of support options that deliver the operational efficiency you demand. Contact your preferred Ariel Distributor today and start measuring reliability in years with the CP / CPs valve. www.arielcorp.com/cpvalvesMARCH 2020 / Volume 16 Issue 03 26 Winners speak out Winners from last year’s edition of the Middle East Energy Awards speak out about their winning contributions in a preview of this year’s awards ceremony! 30 Algeria’s upstream crisis An in-depth feature about Algeria’s ongoing upstream crisis, as it struggles to find investors, and grapples with maturing facilities. Can the new Hydrocarbon Law change its fortune? 18 China loses its appetite As the coronavirus outbreak continues to spread, China has lost its massive appetite for oil amid travel restrictions and factories lying idle. 10 News update A look at the latest developments in the regional upstream sector, with the most important news of the month from around the GCC. Highlights in this issue: IN PHOTOS: Take a look at the new facility at the Kuwait College of Engineering and Petroleum 18 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com MARCH 20204 IN THIS ISSUE oilandgasmiddleeast.com MARCH 2020 10 Editor’s choice: • Video: What is prescriptive maintenance? • Oil & Gas Middle East Power 50 list 2020 • Video playlist: O&GME and Honey well SPS host roundtable • Video: O&GME and R&PME Awards 2019 achievers DOWNLOAD IT TODAY ON YOUR iOS, ANDROID OR KINDLE Also inside: App 30 36 06 / Editor’s letter Carla Sertin with her thoughts on climate change 10 / News update The latest upstream news from around the region 18 / On the cover The novel coronavirus outbreak has curbed China’s hunger for oil in a volatile market 14 / Industry outlook How to leverage data analytics and create the biggest impact for your company 36 / SOGAT preview A preview of the latest sour gas technology, ahead of SOGAT 26 / Awards coverage Past winners at the Middle East Energy Awards speak out about the flagship event 30 / Algeria focus How Algeria plans to revitalise its lagging upstream sector 08 / In numbers Rystad Energy maps out global high impact wells www.oilandgasmiddleeast.com 24 16 18 14 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 16 / Face to face One-on-one with the recently appointed CEO of Alderley 24 / Dubai gas find ADNOC has discovered gas in Dubai. What does this mean for the emirate? 26 Online2020 SAVE THE DATE Tuesday 30th June 2020 #MEEner gyAwar ds Visit www.oildandgasmiddleeast.com/awards for more information or contact one of our team today FOR SPONSORSHIP ENQUIRIES Mark Grennel Group Sales Manager Tel +971 4 444 3202 Email: mark.grennel@itp.com Pankaj Sharma Senior Sales Manager Tel: +971 4 444 510 Email: Pankaj.sharma@itp.com FOR NOMINATION ENQUIRIES Carla Sertin Editor, Oil and Gas Middle East Tel: +971 4 444 3265 Email: carla.sertin@itp.com Martin Menacery Editor, Refining & Petrochemicals Tel: +971 4 444 3192 Email: martin.menachery@itp.com FOR EVENT ENQUIRIES Teri Dunstan Events Manager Tel: +971 4 444 3227 E-mail: teri.dunstan@itp.com Anthony Chandran Table Sales Executive Tel: +971 4 444 3685 E-mail: anthony.chandran@itp.com6 oilandgasmiddleeast.com MARCH 2020 EDITOR’S LETTER The need to act on climate change has never felt so urgent. However, when publications like The Guardian decide they will no longer accept advertising from oil & gas companies, it keeps us at a standstill. There is no possibility of reversing climate change without involving oil and gas companies. This is not the time for silos and for silencing producers. Cooperation and common goals are the only way forward. Demonstrating progress, UK oil major BP has incredible changes in store. Gone are the verticals of “upstream” & “downstream”, and so too will the company’s carbon emissions disappear by 2050, if it is able to hit its ambi- tious goal. BP CEO Bernard Looney said that quickly transitioning the world to net zero emissions will require “reimagining energy as we know it”. He is correct—the vast, complex energy system that keeps the world running will have to change. But this cannot happen overnight, and it most importantly requires the buy-in and involvement of oil and gas companies. “…the whole energy system has to be transformed and everyone has a contribution to make—producers and sellers of energy, policy makers and everyone who uses energy,” Looney said. Amin Nasser has been vocal in the past year about the industry’s “crisis of perception”, and the need for realistic energy transition policies that have a deeper understanding of the industry’s complexities. The International Energy Agency also found that global energy-related carbon dioxide emissions stopped growing in 2019, despite global economic growth of 2.9%. This is attributed to increasing use renewable energy and nuclear power generation, and switch from coal to natural gas as a fuel. There is an opportunity to make this a turning point and to continue to de- crease emissions, to improve the reputation of oil and gas as a contributor to sustainability and a key contributor to climate recovery efforts. As global heating continues, perception of the oil and gas industry grows cooler—but we have a great opportunity to change. A climate of change 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: Sue Holt Deputy Managing Director: Anil Bhoyrul Editorial Editor: Carla Sertin Tel: +971 4444 3265 email: carla.sertin@itp.com Advertising Senior Sales Manager: Pankaj Sharma Tel: +971 4444 3510 email: pankaj.sharma@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: Mahendra Pawar Senior Image Editor: Emmalyn Robles Circulation Distribution & Warehouse Manager: Praveen Nair Circulation Executive: Loreta Regencia Marketing Director of Awards & Marketing: Daniel Fewtrell Events Manager, Business Events: Teri Dunstan 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. 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THIS ISSUE: We explore the long-term impact of coronavirus on the oil and gas industry (p18).Rystad Energy says that most of the world’s top 30 high- impact wells for 2020 are in Africa and the Americas, although three are in the Middle East Although 2019 was a disappoint- ing year in terms of high- impact well (HIW) drilling in the oil and gas sector, com- paratively stable market conditions are favoring new exploration activity in 2020 for areas that combine high risk and high rewards. Rystad Energy, the independent energy research and consulting firm headquartered in Norway with offices across the globe, identified what it considers the top 30 high impact wells that will be drilled this year, with the lion’s share located in The Americas and Africa. Five of the wells are located in North America, seven in South America and six in Africa. Of the remaining wells, four are scheduled to be drilled in Asia, three each in Oceania and the Middle East, and two in Europe. Rystad Energy classifies wells as high-impact through an assessment of number of key factors, including the size of the prospects, whether they could open new hydrocarbon plays in 30 HIGH- IMPACT WELLS IN 2020 8 IN NUMBERS oilandgasmiddleeast.com MARCH 2020frontier or emerging basins, and their significance to the operator. Shell and Eni will drill the Chibu and Ehecatl prospects in their re- spective blocks in Mexico, targeting a collective 350 million barrels of oil equivalent (boe) of gross unrisked resources. The seven HIWs scheduled to be drilled in South America this year will target gross predrill resources of over 5 billion boe. Among Africa’s HIWs, Guinea Bissau’s deepwater Atum well will target a potential 470 million boe. During the past three years, 95 HIWs have been drilled globally, with 40 of them resulting in discover- ies – equating to a 42% success rate. Looking solely at 2019, however, the success rate of the 35 HIWs drilled was only 31%. 9 IN NUMBERS oilandgasmiddleeast.com MARCH 2020Next >