AN ITP MEDIA GROUP PUBLICATION JUNE 2023 • VOL. 19, ISSUE 06 STRATEGIC TRANSITION Dietsmann CEO Cesare Canevese on the company’s 45- year energy journeyEmail - snarula@dmsglobal.net UAE Cell & +97150 6518010 CONTACT Sundeep Narula Chief Commercial Officer +971 249 161 71 (UAE Office) +973 17 405 590 (Bahrain Office)JUNE 2023 / Volume 19 / Issue 06 14 Cover Story: Strategic transition 32 Qatar’s North Field Expansion Project 12 Brand View: Solar-powered Hydropanels 10 Interview: Saudi Aramco Highlights in this issue: 18 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com JUNE 20234 IN THIS ISSUE oilandgasmiddleeast.com JUNE 2023 Scan the QR code and subscribe for full access to our website, monthly issues, and magazine archive. Also inside: Subscribe now 20 06 /In Numbers Middle East to spend $120 billion on gas production increase 08 /Face to Face In conversation with Mohammed Al Beloushi, Deputy CEO of geo- intelligence company Urbi 10 /Interview Aramco VP and Chief Loss Prevention Engineer discusses Aramco’s strategic approach to risk management 12/Brand view Creating renewable water using infrastructure-free Hydropanels 14/On the cover Dietsmann CEO Cesare Canevese shares his success story on navigating the energy industry 20 /Drilling An exclusive interview with Abdulrahman AlSeiari, CEO of ADNOC Drilling 42 /Quote-worthy What leaders are saying about the oil and gas industry 32 /Project focus Qatar’s North Field expansion project 08 12 06 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 10 Last month5 oilandgasmiddleeast.com JUNE 2023 EDITOR’S LETTER U AE’s President His Highness Sheikh Mohamed bin Zayed Al Nahyan kicked off the year by declaring 2023 as the Year of Sustainability for the UAE, primarily aimed at promoting a nationwide commitment towards sustainable practices and collaboration to address environmental challenges. “Effective climate action requires a shared vision and collective will,” Sheikh Mohammed said at the time of the announcement. The decision was timely as the nation prepares to welcome the world as the host of this year’s UN climate conference, popularly known as COP28. Half way through the year, the UAE seems to be going full throttle to show the world how sustainability is done. Examples are many. UAE’s Abu Dhabi Future Energy Co (Masdar) has nearly doubled its clean energy capacity and CO2 displacement in just two years. The company is on track to fulfil its ambition of becoming one of the world’s largest renewable energy companies by 2030. Additionally, Abu Dhabi’s state-owned energy giant ADNOC is on track to achieve its ambitious target to reduce its greenhouse gas emissions intensity by 25% by 2030. The company has also launched projects for clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on the company’s long-standing policy of zero routine gas flaring. Our cover story this month [p14] features Dietsmann, a company that is supporting energy businesses to eliminate methane emissions by 2030. Dietsmann CEO Cesare Canevese discusses the company’s commitment to sustainability and its journey of navigating the ups and downs of the ever-changing energy industry landscape. The issue also features two exclusive interviews with state-owned energy giants. We interviewed Aramco’s VP of loss prevention to discuss the company’s safety management [p10] and the CEO of ADNOC Drilling [p20], who spoke about the company’s fleet expansion and its focus on decarbonising operations. Until next time, happy reading! Faiza Rizvi Rahman Editor Half way through the year of sustainability SUBSCRIBETo subscribe to Oil & Gas Middle East, or other ITP Business titles, go to: www.itp.com/subscriptions. 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Published by and © 2023 ITP MEDIA Group FZ-LLC. izviRahman EditoMIDDLE EAST EYES $120 BILLION SPEND TO INCREASE GAS PRODUCTION Around half of the increase will be made available for export, which could have a game-changing effect on the global gas markets 6 IN NUMBERS oilandgasmiddleeast.com JUNE 2023Source: Wood Mackenzie The Middle East is set to spend as much as $120 billion to increase gas production by 14 billion standard cubic feet a day (bcfd) to 86 bcfd by 2030, according to a report by Wood Mackenzie. The report titled ‘The Middle East steps on the gas’ shows gas supply growth in the Middle East is a compelling opportunity amid competition to supply Europe with the volumes lost from Russia since the Ukraine invasion. The expected uptick in production is equivalent to the gas consumption of the entire European power sector and could help energy companies solve the energy trilemma of sustainability, security and affordability. Around half of the 14 bcfd increase will be made available for export, which could have a game-changing effect on the global gas markets, especially as the LNG liquefaction capacity in the Middle East keeps growing. The other half will be absorbed by domestic demand growth. “The Middle East can be part of the solution for the global gas markets as the region continues to ramp up production from its gigantic gas reserves,” says Alexandre Araman, principal analyst for Middle East Upstream at Wood Mackenzie. “To fulfil the level of production growth that we have predicted, investments in non-associated gas projects are set to reach a record US$25 billion this year and a cumulative total of US$120 billion by the end of the decade.” UAE AND QATAR Qatar’s LNG exports should reach 126 million tonnes per annum (mtpa) by 2030, while Abu Dhabi should be able to export 15.4 mmtpa after its new LNG facility comes onstream in 2028. ADNOC Gas, a unit of ADNOC, has access to 95% of the UAE’s natural gas reserves, estimated to be the world’s seventh largest. It also supplies more than 60% of the country’s gas needs. In February, the state-owned energy company and Germany’s RWE announced the delivery of the first LNG shipment from the UAE to Germany. Last year, QatarEnergy signed two sales and purchase agreements with ConocoPhillips to deliver up to 2 mtpa of LNG to Germany. The report adds that for international companies, gas projects in the region present attractive opportunities. Gas accounts for barely 35% of their Middle East production mix but generates more than 70% of the value. 50% of the value figure is created in the global LNG powerhouse of Qatar by three companies: ExxonMobil, Shell, and TotalEnergies. 7 IN NUMBERS oilandgasmiddleeast.com JUNE 20238 FACE TO FACE oilandgasmiddleeast.com JUNE 2023 addition, the industry has been investing in digital technologies to increase efficiency, reduce costs, and enhance safety. Many Middle Eastern countries have been working on diversifying their economies to reduce their reliance on oil revenues. To stay competitive in a market marked by fluctuations in oil prices and increased competition from renewable energy sources, oil and gas companies have been focusing on cost reduction and improving operational efficiency, leading to consolidation, strategic partnerships, and the adoption of innovative technologies. How is geospatial information system (GIS) playing a role in shaping the industry, and what specific advancements do you see as game-changers? Geospatial technology has become an essential tool in the oil and gas industry, allowing for the collection, analysis, and visualisation of spatial data to aid in decision-making. The technology has played a significant role in various aspects of the industry. Some specific advancements considered game-changers include exploration and site selection, enhanced oil recovery techniques, environmental impact assessment, pipeline network design and management, asset management, emergency response and risk management, and integration with other technologies such as artificial intelligence, machine learning, and the Internet of Things. These advancements have the potential to revolutionise the industry by enhancing decision-making, improving operational efficiency, and reducing environmental impact. As geospatial continues to evolve and integrate with other cutting- edge technologies, it will play a more critical role in shaping the industry’s future. In light of the ongoing shift towards higher petrol costs per barrel in the region and renewable energy, how do you see the role of traditional fossil fuels evolving in the coming years? The ongoing shift towards higher petrol costs per barrel and renewable energy will have a significant impact on the role of traditional fossil fuels in the coming years. The demand for oil may decline as renewable energy sources and electric vehicles gain more prominence, requiring traditional fossil fuel companies to adapt and focus on operational efficiency, cost reduction, and optimisation of existing assets to ensure profitability and sustainability. Oil and gas companies are also likely to continue investing in renewable energy projects to remain relevant in the changing energy landscape, and carbon capture and storage technologies will be necessary to mitigate the environmental impact of fossil fuel operations. The role of traditional fossil fuels will continue to evolve as the industry adapts to changing market conditions and technologies. What major trends are you seeing in the oil and gas industry, both in the Middle East and globally? The oil and gas industry is experiencing significant shifts due to global trends. Governments, companies, and investors are increasingly focused on cleaner and more sustainable energy sources to reduce carbon emissions, which has led to a gradual shift away from fossil fuels. In Mohammed Al Beloushi, deputy CEO of geo-intelligence company Urbi, shares insights into the future of the gas and oil industry and the Middle East’s changing energy landscape. THE FUTURE OF OIL AND GAS IN THE MIDDLE EAST MANY MIDDLE EASTERN COUNTRIES HAVE BEEN WORKING ON DIVERSIFYING THEIR ECONOMIES TO REDUCE THEIR RELIANCE ON OIL REVENUES9 FACE TO FACE oilandgasmiddleeast.com JUNE 2023 Mohammed Al Beloushi, deputy CEO of geo-intelligence company UrbiNext >