ITP MEDIA GROUP / BUSINESS SEPTEMBER 2020 • VOL. 16, ISSUE 09 SPSP CEO BASSAM AL-BOKHARI TALKS ABOUT TRAINING AND EMPOWERING THE NEXT GENERATION OF OIL AND GAS LEADERS AND THE PLAN TO TRANSFORM AND EXPAND THE INSTITUTE THE FUTURE POWERINGSEPTEMBER 2020 / Volume 16 Issue 09 18 Cover: Teaching innovation SPSP CEO Bassam Al-Bokhari explains the importance of training the future leader of the oil and gas industry, innovations at the institute, and the plan to expand internationally. 26 Project focus: Yibal This month, take a deep dive into the Yibal rejuve- nation project by Petro- leum Development Oman, with a detailed timeline of all of the work accom- plished and planned. 16 3D printed industry The founder of Immensaa talks to us about additive manufacturing, the impact that the pandemic had on this burgeoning technol- ogy, and how it is poised to reshape our industry. 14 Awards update The editors of the hosting publications for the Middle East Energy Awards make an important announcement about the flagship event’s much anticipated 2020 edition. Highlights in this issue: 18 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com SEPTEMBER 20204 IN THIS ISSUE oilandgasmiddleeast.com SEPTEMBER 2020 COULD DIGITAL TECHNOLOGY SMOOTH OUT THE BUMPY ROAD AHEAD? ITP MEDIA GROUP / BUSINESS JULY/AUGUST 2020 • VOL. 16, ISSUE 07 Editor’s choice: • Video: Who wins in Saudi Ara mco’s SABIC deal? • Oil & Gas Middle East Top 30 EPC Contractors • Video playlist: O&GME and Honey well SPS host roundtable • Video: O&GME and R&PME Awards achievers DOWNLOAD IT TODAY ON YOUR iOS, ANDROID OR KINDLE Also inside: App 26 06 / Editor’s letter Carla Sertin with her thoughts on the path to recovery 10 / News update The latest news from across the oil and gas industry throughout the GCC region 26 / Project focus Everything you need to know about PDO’s Yibal rejuvenation project 18 / On the cover Bassam Al-Bokhari, CEO of SPSP, talks about teaching youth in the oil and gas industry, and the future for training 08 / In numbers The oilfield services headcount is falling, and revenue per employee is hard hit www.oilandgasmiddleeast.com 14 10 18 08 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 25 / Technology focus: Interoperability Technology is more useful if it is able to communicate with other systems, SAI Global comments on interoperability 14 / Awards update The editor releases an important announcement about the Middle East Energy Awards 2020 edition 25 OnlineFor our customers, compression is critical – always. So when they need us, we spring into action. Ariel works to build and maintain a trusting relationship that grows stronger with time. We look at everything from our customers’ perspective, so we can truly understand the best ways to make their operations more successful. Compression you can count on, now and always. www.arielcorp.com6 oilandgasmiddleeast.com SEPTEMBER 2020 EDITOR’S LETTER This year has been whirlwind so far. Too much has happened for us to continue as though things are just ‘business as usual’... so we decided that we needed to talk about it with the experts. We are introduc- ing the Middle East Energy Conference (p24) this year on 28 September, a virtual event which will consider the most important topics in the energy industry. Join us for three panel discussions, which will bring experts from around the world to dive into key topics including the importance of digital technol- ogy in the oil and gas recovery process, OPEC’s role in the 2020s, and the way the oil and gas industry can fit into the energy transition. But it isn’t enough to talk about the future, we want to celebrate the people making it happen; the Middle East Energy Awards are back! We’ll gather in Abu Dhabi this year to recognize achievements from across the energy sector (p14 for more details), so don’t miss your chance to be part of the flagship event. Carla Sertin Editor Oil & Gas Middle East We need to talk... SUBSCRIBETo subscribe to Oil & Gas Middle East, or other ITP Business titles, go to: www.itp.com/subscriptions. 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THIS ISSUE: SPSP CEO comments on training the future leaders of the oil and gas industry (p18).MATCHING BUYERS WITH SUPPLIERS AND GROWING BUSINESSES OILANDGASMIDDLEEAST.COMOFS HEADCOUNT PLUMMETS COVID-19 has forced OFS headcount to the lowest level in a decade, and revenue per employee is set to decline 8 IN NUMBERS oilandgasmiddleeast.com SEPTEMBER 2020The oil market turmoil brought on by COVID-19 has led to lower-than-anticipated activity and delayed projects, forcing the industry to deploy cost-cutting measures. A Rystad Energy analysis of the top 50 oilfield service (OFS) firms shows that staffing is set to reach its lowest level in more than 10 years, with revenue per employee also declining towards the previous downturn’s level. Rystad Energy tracked the per- manent employee count of the top service companies at year-end. The reduced staff levels in the OFS in- dustry seen in 2016 have mostly been maintained since then at just over 760,000 employees. The downsizing expected this year is likely to result in the lowest total headcount in over a decade, estimated at about 610,000 employees. The report calculated revenue per employee as a company’s total yearly revenue divided by the number of employees by year-end. They consid- ered this metric on a weighted average basis for the top service companies, which earned a total of over $200 bil- lion in 2019. When Brent oil prices were above $100 a barrel, companies earned about $300,000 or more per employee. When prices fell, revenue per employ- ee dipped to as low as $250,000 per employee. Revenue per employee is expected to dive to around $260,000 per employee as revenues from the largest OFS companies plummet quicker than their respective head- counts. Companies reacted early with layoffs and furloughs, and this time there are fewer redundancies in terms of human capital investment. Schlumberger, for example, recently announced that it will lay off 21,000 employees – equal to 20% of its workforce – and is expected to have a 25% year-on-year revenue decrease in 2020. This will bring its revenue per employee to $290,000, more than a 7% decline compared to last year. “OFS employment is now heading for the lowest numbers in the past decade as the Covid-19 pandemic continues to impact ongoing work and the frequency of new awards, both of which could take years to fully recov- er. Nevertheless, some companies saw a bountiful 2019 in terms of inbound orders, and 1H20 numbers show that these companies have been more resilient,“ said Rystad Energy’s Energy Service Analyst Lein Mann Hansen. Time will tell whether massive backlogs will be enough to bolster revenues. New contract awards are poised to pick up towards the end of 2021 and 2022, but until then, OFS companies must continue cutting costs, fighting for the few awards available, and diversifying into new markets. Emergency Mobile No: 00971 50 3752010 Plot No S-50807, Jebel Ali, Free Zone (South), P.O. BOX 17729, Dubai-United Arab Emirates Telephone: +9714-8865119 Fax: +9714-8865118 Email: sales@sso.ae | info@sso.ae www. shreesteeloverseas.com Branches: • SHREE OILFIELD SUPPLY LLC MUSAFFAH - ABUDHABI - UAE TEL: +971 2 6214290, FAX: +971 2 6214289 • STEEL PIPING SOLUTIONS LLC GHALA - MUSCAT - OMAN TEL: +968 24230900, MOBILE: +968 92292370 9 IN NUMBERS oilandgasmiddleeast.com SEPTEMBER 2020Next >