AN ITP MEDIA GROUP PUBLICATION JULY 2023 • VOL. 19, ISSUE 07 FROM QATAR TO THE WORLD Inside the nation’s mission to boost gas production and dominate global LNG exportsEmail - 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)JULY 2023 / Volume 19 / Issue 07 20 Technology: Metaverse and the energy sector 40 Project Focus: Aramco’s Marjan field expansion 14 Cover Story: Inside Qatar’s LNG expansion 8 Face to Face: Petrofac Highlights in this issue: 14 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.com JULY 20234 IN THIS ISSUE oilandgasmiddleeast.com JULY 2023 Scan the QR code and subscribe for full access to our website, monthly issues, and magazine archive. Also inside: Subscribe now 34 06 /In Numbers Oil and gas companies need $600 billion to cut emissions 08 /Face to Face In conversation with Des Thurlby, Petrofac’s Group Director of Human Resources 14 /Cover Story An inside look at how gas-rich Qatar doubled down on LNG 20/Technology How industrial Metaverse is reshaping the energy industry 30/Energy Transition On the road to COP28: Energy companies’ integral role in the global climate fight 34 /Opinion The only chemistry that matters for a sustainable future 50 /Quote-worthy What leaders are saying about the oil and gas industry 40 /Project focus A detailed look at Aramco’s Marjan Field Expansion project 08 30 06 KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com 20 Last month5 oilandgasmiddleeast.com JULY 2023 EDITOR’S LETTER T here is never a dull moment in the oil and gas sector, especially now as the energy landscape of the Middle East is undergoing a profound transformation. For decades, the region has been synonymous with oil and gas, fueling the global economy and driving progress. But today, we find ourselves at a crossroads, seeking a more sustainable and cleaner future. Interestingly, at the heart of this quest is the rise of our very own transition fuel, Liquefied Natural Gas, also known as LNG. In this issue of Oil & Gas Middle East, the cover story [p14] delves into the remarkable journey of Qatar’s LNG output growth and the subsequent ramp up of exports, especially to European nations. Qatar has been the indisputable leader of LNG for the last fifteen years without any infrastructure expansion. However, in April 2017, Qatar surprised the LNG markets by ending a 12-year-long moratorium on the North Gas Field reserves, the world’s largest natural gas field. Ever since, there has been no looking back for the gas-rich nation. Moreover, the war in Ukraine, by tightening the LNG supply-demand balance and increasing uncertainty over supply, has highlighted Qatar’s leading role in the LNG market and boosted its clout. In this issue, we also bring to you an exclusive interview with Petrofac’s head of Human Resources [p8], who highlights the company’s recruitment drive, the qualities Petrofac is looking for in candidates, and the reasons why people should consider applying. That’s not all. We also have several exciting tech-focused features that explore hot topics ranging from Metaverse to remote operations for subsea. Until next time, happy reading! Faiza Rizvi Rahman Editor LNG-ing the right way 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 EditoOIL AND GAS INDUSTRY NEEDS $600 BILLION TO CUT EMISSIONS THIS DECADE A new IEA report shows the oil and gas sector, which emitted 5.1 billion tonnes of CO2 in 2022, needs to take immediate steps to slash emissions O il and gas producers have a clear opportunity to address the problem of emissions from their activities through a series of ready- to-implement and cost effective measures, according to the International Energy Agency (IEA). Around $600 billion upfront spending is required until 2030 to achieve the full 50% reduction in the emissions intensity of oil and gas operations. This is 15% of the windfall net income the industry received in 2022. Many of the measures also lead to additional income streams by avoiding the use or waste of gas meaning they can quickly recoup the upfront spending required. For facilities implementing these measures, the average cost of producing oil and gas would increase by less than $2 per barrel of oil equivalent (boe). The Paris-based organisation in a new report noted that oil and gas operations accounted for about 15% of energy- related greenhouse gas emissions in 2022, equivalent to 5.1 billion tonnes of CO2, and the industry has the ability and resources to cut them quickly and cost effectively. In the IEA’s net zero emissions by 2050 scenario, the emissions intensity of these activities falls 50% by the end of the decade. Combined with the reductions in oil and gas 6 IN NUMBERS oilandgasmiddleeast.com JULY 2023Figure 1 shows cumulative cost and savings of deploying these measures from 2022 to 2030 Figure 2 shows emissions intensities of oil and gas operations in the net zero emissions scenario between 2022 to 2030 and storage; and expanding the use of low- emissions hydrogen in refineries. “Tackling methane emissions is the most important measure to limit emissions from the industry›s operations,” said the agency led by executive director Fatih Birol. Tackling methane emissions is the single most important measure that contributes to the overall fall in emissions from oil and gas operations, followed by eliminating flaring and electrification. Scaling up CCUS and expanding the use of lower emissions hydrogen play complementary roles but have significant potential for positive spillovers into other aspects of energy transitions, by accelerating deployment and technology learning for these technologies. Reductions in emissions from oil and gas operations in 2030 in the net-zero emission scenario and cumulative cost and savings of deploying these measures from 2022 to 2030. consumption in this scenario, this results in a 60% reduction in emissions from oil and gas operations in 2030. The report Emissions from Oil and Gas Operations in Net Zero Transitions identified five key levers to achieve this reduction: Tackling methane emissions; eliminating all non-emergency flaring; powering upstream facilities with low- emissions electricity; equipping oil and gas processes with carbon capture, utilisation 7 IN NUMBERS oilandgasmiddleeast.com JULY 20238 FACE TO FACE oilandgasmiddleeast.com JULY 2023 like supply chain and logistics, project controls, finance, IT, and HR. We want people with demonstrable experience. But we also want these people to be as excited about the future as we are, who want to grow with us and share our client-centric, problem-solving ethos. How do you ensure diversity and inclusion in your recruitment process? What efforts are being made to attract a diverse talent pool? As a company, we care deeply about diversity and inclusion. As well as attracting more women candidates, we are keen to attract more nationals where we operate. Our recruitment processes, along with our wider HR initiatives, reflect these objectives. And, although we still have some way to go, we have been successful in nurturing one of the most diverse workforces in the EPC sector. So, we advertise all vacancies at www. petrofac.com/careers, we have several active employee network groups and mentoring programmes, and we aim to be sensitive to peoples’ personal circumstances. For example, we support flexible working where practicable, and many employees work a day or two a week from home. In terms of local hires, we now have 70 Emirati employees in the UAE, and recently appointed our first Emiratisation manager. Oman is also a big engineering hub for us, where we have 260 Omani employees, and we have also been hiring local nationals to support our operations in markets like Algeria and Libya. Can you tell us about the current recruitment drive at Petrofac and the key projects you are focusing on in the Middle East? After a period of retrenchment across the energy industry, we are back on a growth trajectory - gearing up to deliver and support a new generation of energy facilities. Recent awards for our Engineering and Construction business include a multi- year, $14 billion framework agreement for TenneT, a European transmission system operator, covering HVDC platforms and grid connections for a vast offshore wind grid expansion; the modernisation and environmental upgrade of a refinery in Lithuania; and a major new petrochemicals facility for Sonatrach in Algeria. We execute most EPC projects from our Sharjah hub and, with bidding activity at record levels, we are hopeful of more upcoming awards. Meanwhile, in our Asset Solutions business, we continue to win new operations and maintenance awards across the MENA region. As a consequence, we are busy recruiting. Right now, we have 272 open vacancies across our UAE offices, and I expect many more to follow. What specific skill sets and qualifications are you looking for in candidates for these key projects? It is primarily engineers, and we are recruiting in all disciplines, including civil, electrical, piping, process, mechanical, instrumentation, and more. But we also have vacancies in several support functions, With the award of several large projects and a busy bidding pipeline, EPC giant Petrofac is on a concerted recruitment drive. We speak to Des Thurlby, Petrofac’s Group Director of Human Resources, about the type of roles involved, the qualities Petrofac is looking for in candidates, and the reasons why people should consider applying PETROFAC’S HR BOSS TALKS RECRUITMENT DRIVE FOR KEY PROJECTS WE ARE BUSY RECRUITING. RIGHT NOW, WE HAVE 272 OPEN VACANCIES ACROSS OUR UAE OFFICES, AND I EXPECT MANY MORE TO FOLLOW9 FACE TO FACE oilandgasmiddleeast.com JULY 2023 Meanwhile, women now make up 16% of our workforce worldwide, which is up more than a third in five years. The number of women in middle management is up 50% and, at senior levels, we benefit from some formidable female leaders, such as the Head of our Engineering Centre in Chennai, our Head of Communications, Head of Legal, Head of Sustainability, Head of Quality and many more positions. In what ways does Petrofac support the professional development and growth of its employees? Are there any unique programmes or initiatives in place? Through our own training business - Petrofac Training Services - we advise and provide training to many of the world’s most respected energy companies. So, as you would expect, we pride ourselves on the quantity and quality of our own in- house training. That includes subject matter training, such as our Project Management Pathway and Petrofac Academy programmes, which enable people to hone their skills. It also covers professional development through our Leadership Pathways programme, which covers supervisory skills, financial management and leadership. And an important part of my team’s mandate is to work on career paths and identify training needs. What challenges do you anticipate in recruiting top talent for the oil and gas industry? How do you plan to overcome these challenges? In this industry, people tend to move around quite a lot and, right now, we are facing a tight labour market with intense competition for skills and experience. At Petrofac, we are fortunate to have built a strong reputation. We have been in the UAE for more than 30 years, we see it as home territory, the MENA region has always been the focus of our operations, and we are generally regarded as a good, long-term employer. As a result, we tend to receive massive interest in our vacancies. There are many figures to illustrate this point. This year, for instance, we have already received more than 6,000 Des Thurlby, Group Director of Human Resources, PetrofacNext >