ITP MEDIA GROUP / BUSINESS OCTOBER 2020 • VOL. 16, ISSUE 10 RANKING: THE TOP 30 EPC COMPANIES OF 2020 TAREQ KAWASH, SENIOR VICE PRESIDENT OF MCDERMOTT’S RECENTLY FORMED EMEA REGION, DISCUSSES MAJOR CHANGES AT THE COMPANY AS IT ADAPTS TO A CHANGING EPC LANDSCAPE ESS 10 COOCTOBER 2020 / Volume 16 Issue 10 18 Ranking: Top 30 EPC Companies This month, we release our annual ranking of the Top 30 EPC Companies in the region, analysing the work they have done to build up the industry in this unpre- cendented crisis. 28 Qatar LNG expansion S&P Global Platts consid- ers Qatar’s plans for LNG expansion, the progress it has made, as well as the challenges and opportuni- ties that it will likely face along the way. 12 McDermott in transformation Tareq Kawash, Senior Vice President of McDermott’s newly formed EMEA region, comments on the company’s ongoing trans- formation and the state of the EPC market. 11 Setting the standard We explore the need for standardisation in the growth, development, and transformation of the sector in an article co-written with SAI Global Standards. Highlights in this issue: 12 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com OCTOBER 20204 IN THIS ISSUE oilandgasmiddleeast.com OCTOBER 2020 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 POWERING 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 27 42 06 / In numbers British Petroleum says that oil demand might never return to 2019 levels 10 / Oil & Gas Future Forum The editor releases an announcement about the upcoming forum 42 / One minute with Honeywell discusses cybersecurity during and after coronavirus 18 / Ranking: Top 30 EPC companies In our annual ranking, we consider the top 30 engineering, procurement, and construction companies of the year 09 / Clad to endure Fronius comments on high quality cladding for the oil and gas industry www.oilandgasmiddleeast.com 10 9 12 6 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 27 / Special focus: LNG The head of S&P Global Platts LNG Analytics considers if Qatar’s LNG expansion is a smart bet. 12 / Cover interview: McDermott McDermott’s regional SVP comments on the company’s transformation 18 Online5 oilandgasmiddleeast.com OCTOBER 2020 EDITOR’S LETTER T he EPC sector has not been immune to oil price volatility and the general crisis that has swept the globe, but in this issue, we consider the successes of the year, and the resilience of companies in this industry. The Top 30 EPC companies of 2020 recognises the achievements of engineering, procurement, and construction firms, within the context of the coronavirus pandemic. Certainly, many companies have emerged battered from the crisis, but undeterred in their vi- sion for further growth and development. One excellent example from this industry vertical is McDermott, the subject of our cover this month. In the cover story, Tareq Ka- wash, SVP for EMEA, discusses the company’s transformation in a shifting market landscape, perhaps an indication of the next steps for this the EPC market in the oil and gas industry. Carla Sertin Editor Oil & Gas Middle East As the oil and gas industry grapples with the ongoing crisis, we consider the future of the sector What’s next? SUBSCRIBETo subscribe to Oil & Gas Middle East, or other ITP Business titles, go to: www.itp.com/subscriptions. 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THIS ISSUE: We rank the Top 30 EPC companies of 2020, looking back at the industry this year (p18)WE HAVE REACHED PEAK OIL: BP The most bullish scenario it outlined still saw demand remain “broadly flat” in the next two decades as the world moves towards lower-carbon energy. 6 IN NUMBERS oilandgasmiddleeast.com OCTOBER 2020In its annual report on the oil indus- try, BP outlined potential scenarios for the future of oil and gas. The oil major wrote that the continuous growth of oil demand would end, and oil production might not ever return to pre-coronavirus levels. The most bullish scenario it outlined still saw demand remain “broadly flat” in the next two decades as the world moves towards lower-carbon energy. Other oil and gas leaders have said that “peak oil” predictions are exag- gerated, so BP’s statement breaks from the norm. BP has made large steps towards cleaner energy, with CEO Bernard Looney saying that he would slash oil and gas output by 40% in the next ten years. He also commit- ted to spending up to $5 bllion per year building up its renewable power business. The report considered three future scenarios. In the “Rapid” scenario, new policies would lead to a quick increase in carbon prices. The “Net Zero” scenario also sees big shifts in societal behavior. Meanwhile, its “Business as usual” scenario assumes that policies, social preferences, and technology continue evolving at their current pace and trajectory. In the first two scenarios, “[oil demand] subsequently recovers but never back to pre-covid levels,” wrote Spencer Dale, BP’s chief economist. “... oil demand peaks to 2019.” It sees oil demand falling for the next three decades, citing the scale and pace of that decline based on growing efficiency and electrification of road transportation. 7 IN NUMBERS oilandgasmiddleeast.com OCTOBER 2020ADVERTORIAL 8 oilandgasmiddleeast.com OCTOBER 2020 Alipour Kaveh, international cladding manager for Fronius International GmbH, explains why the deposition rate is not the only important factor when selecting a new cladding system is not the only important factor when choosing a cladding system. I have 20 years of professional experience in the oil and gas industry, and I started working with the fi rst Endless Torch Rotation Cladding System from Fronius in 2006. Last year I started a cooperation with Fronius to support them in the development of new cladding systems and validate all cladding processes based on the requirements of API 5LD and ARAMCO specifi cations. For overlay welding, the mechanical properties of the backing steel should be maintained aft er the cladding process as well as the quality of the deposited weld metal as per requirements of API 5 LD, API 6A, and also NACE. In order to achieve proper weld metal along with maintaining mechanical properties of backing material, therefore the heat input formula will be the main player in the overlay cladding process (ASME Sec. IX; QW-409): Heat Input = Voltage x Ampere x 60 / welding speed. As per the above formula, if welding speed increased up to 5 times because of obtaining a high deposition rate, therefore Voltage and Amperage should be increased at the same time otherwise Fronius has been supplying high-quality cladding systems for decades and has become a technology leader in the oil and gas industry. An overlay welding system of the latest generation is the High-Performance Pipe Cladding System, launched in 2018, which allows welding speeds up to 170 cm/min, depending on diff erent values. Its speed is four times faster than the previous Fronius Pipe Cladding system. Some technicians believe the deposition rate is the major value when selecting a cladding system. However, the deposition rate CLAD FOR ENDURANCE High Performance Pipe Cladding System, side viewADVERTORIAL 9 oilandgasmiddleeast.com OCTOBER 2020 Side Bend Test (Checking open defect on Base Metal, HAZ, and Weld Metal and bonds integrity), Hardness Test as per the requirement of API 5LD and NACE, Charpy Impact Test (Base Metal, HAZ and Weld Metal), Flattening Test (Checking Ductility, Soundness of Weld Metal and Bonds Integrity), Tensile Test (Checking Tensile of Base Metal after Cladding Process) and last but not least Inspection Report of Penetrant Test on As-Welded surface. DNV.GL. supervised all these tests. The approved test results are available upon request. Fronius is the technology leader in cladding. Over the years, Fronius sold mainly the products, including the best after-sales service to its customers, but the parameters had to be found by the customer. Today´s customers expect more support than at any time before. Therefore Fronius decided to act as a solution provider focusing on customers´ needs and delivering innovative overall solutions. Regarding my experience in cladding and standards, I can provide Fronius with optimum support. It is important to provide comprehensive welding and cladding procedures for each machine according to the requirement of customers and submitting approved documents along with the machines. Fronius is starting a new era of customer support now. The future of the oil and gas market in the Middle East will be dependent on the Gas export instead of oil export in the new decade. Therefore major players in the oil and gas industry decided to take gas from off shore within the next ten years to become market leaders in the gas export business. As per the above discerption and because of sour gas in this region, there are huge demands for cladding and spooling activities, and this opportunity is the future of Fronius for acting and securing cladding and welding market at least for the next ten years. I do not yet see the end of the line for possible innovations. suffi cient bond integrity cannot be achieved with low heat input. In this case, if Amperage or Voltage increases to maintain the amount of heat input, then penetration will be extremely high during the cladding process. Therefore, the deposition rate is not a major item of evaluating and selecting a cladding machine because it is to achieve per high-speed cladding without suffi cient bond integrity. But other parameters and related proportions are to be considered as well. Fronius Welding Automation developed and manufactured the High-Performance cladding system based on the concept of the heat input formula to increase the deposition rate along with increasing the welding speed, current, voltage and maintaining suffi cient heat input during the cladding process with a special gas mixture and a unique shape of the tungsten electrode. The company developed a cladding procedure with this concept as per the requirement of API 5LD to achieve minimum clad thickness in two layers (3.4 mm) and increasing deposition rate more than three times with two torches and twin wire. The welding speed increased from 40 Cm/min to 170 Cm/min (4.25X), heat input in the first layer is 315 J/ mm, Hardness of HAZ is equal to the Hardness of base metal, Fe content is less than 5% on 1.5 mm below minimum overlay thickness for Alloy 625. After the cladding process, the mechanical properties of the backing material remain unchanged. When selecting cladding systems, it is not the deposition rate, but the system´s true performance which is the most important and comprehensive point. This performance is to evaluate by the results of Destructive Tests and Inspection Report (PT) on the test coupon cladded with this cladding machine. Fronius did the following tests: Macro Examination (Checking Base Metal, HAZ and Weld Metal), Chemical Analysis (Base Metal and Weld Metal), Corrosion Test (Detecting Susceptibility to Intergranular Corrosion in Weld Metal), High-Performance Pipe Cladding Cell: Inside pipe cladding High-Performance Pipe Cladding Cell, front viewNext >