AN ITP MEDIA GROUP PUBLICATION SEPTEMBER 2023 • VOL. 19, ISSUE 09 MEET THE TOP CONTRACTORS IN THE MIDDLE EASTConnects worlds, unifies types The LR 1700-1.0 combines the transport advantages of the 600-ton crawler crane class with the performance of the 750-ton class. It has the latest innovations of the Liebherr crawler crane portfolio. The high performance level is based on the statically new base machine with up to 15 percent more load capacity. The modern derrick system comes with V-frame, VarioTray and modular M-Wagon ballast trailer. Perfect for wind power, infrastructure and industry. www.liebherr.com LR 1700-1.0 2008-501_069 LWE_053_LR_1700-1.0_2023_Oil & Gas MidEast_MidEast_GB.indd 114.07.23 12:07SEPTEMBER 2023 / Volume 19 / Issue 09 32 Interview: UAE’s Future of Energy 36 Opinion: Climate Tech Innovation 14 List: Top 25 EPC Contractors 6 Aramco Project Update Highlights in this issue: 14 COVER STORY 3 IN THIS ISSUE oilandgasmiddleeast.comSeptember 20234 IN THIS ISSUE oilandgasmiddleeast.comSeptember 2023 Scan the QR code and subscribe for full access to our website, monthly issues, and magazine archive. Also inside: Subscribe now 36 06 /Project Update Aramco steadily progressing on major upstream projects 08 / Technology Advancing digitalisation with real-time downhole data 14 / List A ranking of the top EPC contractors in the Middle East 26/ Report LNG exports or blue ammonia? Gas producers must decide 32/ Interview Sustainability expert discusses UAE’s future of energy 36 / Opinion A closer look at the Middle East’s journey to climate tech innovation 50 / Quote-worthy What leaders are saying about the oil and gas industry 40 / Project focus Aramco’s Jafurah Gas Development 08 6 26 32 Last month KEEP UP-TO-DATE For all the latest news, check out www. oilandgasmiddleeast .com5 EDITOR’S LETTER oilandgasmiddleeast.comSeptember 2023 A fter the roaring success of the top EPC contractors’ list last year, I’m thrilled to present the latest edition of our highly-acclaimed ranking. As our team took up the daunting task of identifying the crème de la crème of the oil and gas engineering business, we faced a remarkable challenge: distilling the multitude of exceptional talent into a concise list of 25. Like each year, the judging process was more than just evaluating technical expertise; it included a deep dive into innovation, leadership, safety practices, and of course, sustainability initiatives. Our team takes great pride in recognising the work of the contractors, who I believe, are the backbone of the energy industry. They are the architects who transform project blueprints into reality, navigating complex challenges with expertise and precision. From conceptualisation to execution, these contractors design, procure, and construct the intricate web of infrastructure that fuels our world. If you ask me, the ranking is a celebration of the top contractors who are forging ahead with new capabilities, new human capital, and a strong focus on developing sustainable projects in a dynamic and fast-paced industry. Each of the profiled contractors on our list has a unique story to share – a story of resilience, innovation, and unwavering dedication. The power-packed edition also features a special report on LNG [p6], in-depth articles on drilling technologies [p8], and an exclusive interview on UAE’s energy strategy as the nation accelerates its push towards clean energy [ p32 ]. Until next time, happy reading! Faiza Rizvi Rahman Editor Honoring the best of the best To subscribe to Oil & Gas Middle East, or other ITP Business titles, go to: www.itp.com/subscriptions. P O 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: Alex Reeve Editorial Group Editor: Kate-Lynne Wolmarans Editor: Faiza Rizvi Rahman Tel: 00 971 4 444 3248 | Email: faiza.rahman@itp.com Art Art Director: Amjad Ayche Designer: Tofiq Memon Advertising Group Commercial Director: Anup Nagpurkar Tel: 00 971 4 444 3573 | Email: anup.nagpurkar@itp.com Commercial Manager: Andrea Mocay Tel: 009 71 52 329 3301 | Email: andrea.mocay@itp.com Photography Chief Photographer: Rajesh Raghav Videographer: Muhammad Kaleem Video Editor: Liju Cheruvathur Multimedia Producer: Mina Vucic Group Social Media Manager: Andy Ruedas Production Production Manager: Denny Kollannoor Production Coordinator: Manoj Mahadevan Senior Image Editor: Emmalyn Robles Distribution Circulation Executive: Rajesh Pillai Distribution Coordinator: Avinash Pereira Marketing Director of Awards & Marketing: Daniel Fewtrell 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. The opinions and views contained in this publica- tion are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Published by and © 2023 ITP MEDIA Group FZ-LLC. izviRahman Edito SUBSCRIBEoilandgasmiddleeast.comSeptember 2023 S audi Arabia’s state-owned giant Aramco is increasing its maximum sustained oil production capacity to 13 million barrels per day (b/d) by 2027, up from the existing 12 million b/d level. In line with this target, the company is greatly expanding the capacity of its offshore oilfields, which is a crucial element ARAMCO STEADILY PROGRESSING ON MAJOR UPSTREAM PROJECTS The company is forging ahead with Marjan, Berri, Dammam, and Zuluf crude increments as part of broader capacity growth of its strategy to boost the country’s crude oil production. The company recently announced that its “upstream oil and gas developments are on track, including the Marjan, Berri, Dammam, and Zuluf crude oil increments, as part of broader capacity expansions”. Aramco also said earlier that capital expenditure this year is expected to be between $45 billion and $55 billion, including external investments, which is double the capital expenditure planned by Europe’s biggest oil company Shell. In no particular order, below are the company’s biggest projects that are currently under execution: Aramco’s Manifa offshore field (Source: Aramco) 6 PROJECT 7 PROJECT oilandgasmiddleeast.comSeptember 2023 HAWIYAH GAS PLANT EXPANSION Hawiyah Gas Plant expansion, part of the Haradh gas increment programme, continues to progress with its commissioning activities and is expected to be onstream during 2023. The project will provide additional gas processing facilities to process 1,070 million standard cubic feet of raw sweet gas per day to meet the Kingdom’s energy demand. Hawiyah expansion includes the development of 9 gas compression plants and associated infrastructure to improve the reservoir recovery rate and extend the production plateau of both gas fields by reducing the wellhead pressure. Once completed, the contractors will have installed 2,900 km of pipelines, which include construction and modification of multiple associated facilities. Aramco reported in its latest financial results that the commissioning of compression projects at the Haradh and Hawiyah fields are on track with both initial production and full capacity expected to be achieved during 2023. MARJAN AND BERRI CRUDE INCREMENTS The Marjan and Berri crude oil increments are expected to add production capacity of 300 MMbbl/d and 250 MMbll/d, respectively, by 2025. The Marjan increment program is an integrated development project for oil, associated gas, non-associated gas, and cap gas from the Marjan offshore field. This development program includes a new offshore gas oil separation plant and 24 offshore oil, gas, and water injection platforms. The company also plans to expand its Tanajib onshore oil facilities and construct a new gas plant, to include gas treatment and processing, NGL recovery and fractionation, and gas compression facilities. A cogeneration facility will be developed, in addition to a water desalination facility and new transfer pipelines. Construction and procurement activities are progressing at the Tanajib Gas Plant, part of the Marjan development program. The plant is expected to be onstream by 2025. JAFURAH GAS PLANT Last year, Saudi Aramco confirmed a phased development approach for its $100 billion-plus Jafurah unconventional onshore gas project, which is expected to produce up to 2 billion cubic feet per day of gas by 2030. Design and construction activities are progressing on the Jafurah Gas Plant, part of the Jafurah unconventional gas field, which is expected to commence production in 2025. The huge Jafurah project “will provide feedstock for hydrogen and ammonia production and will help meet expected growing local energy demand”, Aramco noted. The unconventional gas project is part of the country’s long-term strategy, which aims to boost gas production to free up almost 1 million barrels per day of oil from domestic use, boosting export capacity. LEADER IN TORQUE INNOVATION Contact us for demos www.radtorque.com Now in Dubai8 REPORT oilandgasmiddleeast.comSeptember 2023 A t the start of this century, our internet options were limited to dial-up connections. Despite this, we utilised it to communicate with friends, transmit documents, upload photos, and even stream videos. However, the video was choppy, connectivity would drop out, and the internet’s true power could not be fully realised. This relates to the oil and gas industry and its reliance on mud pulse telemetry (MPT) as the primary method for bi-directional communication downhole. MPT uses pressure pulses in the fluid column to send data, and just like dial- up, it has very limited bandwidth (5-40 bits per second (bps)). Bandwidth and transmission speed limitations and mud flow requirements for communication restrict the amount of information available to make timely, informed decisions. Whether that results in reliance on modelled data instead of actual downhole conditions or restricting the quantity and quality of logs, which impacts geo-steering and hitting the sweet spot, the amount of data you can access in real- time impacts drilling efficiency, safety, and wellbore placement. Just like the introduction of broadband to the internet removed data bandwidth barriers, enabling us to stream 4K videos or download that important document instantly, Downhole Broadband Solutions (DBS) gives the industry unprecedented access to high-resolution downhole data in real-time. Knowing actual downhole conditions along the drillstring shortens response times and enables confident decisions for improved performance, risk mitigation, and increased production. ADVANCING DIGITALISATION WITH REAL-TIME DOWNHOLE DATA NOV’s MEA Drilling Optimisation SME Mahmoud M Nasef details how Downhole Broadband Solutions gives the oil and gas industry unprecedented access to high-resolution downhole data in real time DBS CONSISTS OF THREE COMPONENTS: Broadband network: The backbone of the network is wired drill pipe, enabling real- time downhole data, up to 57,600 bps, to be transmitted at the speed of light from the bottom of the hole to the surface. Tools: Use bottomhole assembly (BHA) or specialised tools (NOV or third party) to enhance understanding of downhole dynamics while drilling, tripping, cementing, and during liner runs. Apps: Turn data into insights with specialised applications that provide a critical understanding of downhole conditions for informed real-time decisions both at the wellsite and in the office. Our proven technology has been used to drill more than 300 wells in eight countries and 35 basins with benefits across four primary categories: 1. Decreased drilling days Safely push the performance envelope with multiple high-frequency vibration and pressure sensors along the drillstring and instantaneous downhole weight on bit and torque measurements. Using DBS, an operator in the Middle East broke multiple rate of penetration (ROP) and interval records. One of these records was in a highly abrasive sandstone. With visibility into downhole conditions and dysfunction, the operator effectively managed parameters and mitigated vibrations to extend the drill bit life. This resulted in the longest interval drilled in that formation in a single run, saving both bit trips and the need for additional BHAs. 2. Risk mitigation Measurements along the drillstring provide real-time insights into wellbore conditions to avoid costly events. Whether it’s reducing stuck pipe events with clear visibility into hole condition and cuttings buildup or mitigating well control incidents by monitoring annular pressure along the string (even with flow off), real-time downhole information is critical to avoiding costly unplanned events. Equivalent Fluid Density (EFD) Viewer provides critical real-time insights for managing pressures for hole cleaning and wellbore stability9 REPORT oilandgasmiddleeast.comSeptember 2023 company in the Middle East increased reservoir contact compared to all nearby offset-producing wells by using multiple images in real-time to achieve optimal wellbore placement. 4. Reduced carbon footprint Through optimisation and cutting well delivery times, the use of wired drill pipe 3. Production enhancement When bandwidth limits are removed, operators no longer have to prioritise what logs to transmit. This removal enables accurate formation characterisation and determination of formation dips so they not only hit the pay zone but also avoid unintended reservoir exits. A national oil technologies could reduce CO2 emissions by 7%, according to Rystad Energy. As the industry embraces digitalisation to improve efficiencies and profitability, moving from ‘dial-up’ to broadband is a key enabler that eliminates barriers to access to real-time high-resolution and high-speed downhole data. Next >