< PreviousINTERVIEW oilandgasmiddleeast.comSeptemper 2023 I n the heart of Saudi Arabia’s dynamic energy landscape, Tristar Group’s strategic manoeuvres are rewriting the playbook for sustainable logistics. As the kingdom diversifies its economy, Tristar Group emerges as a prominent player, pioneering innovative solutions aligned with Vision 2030. In an exclusive interview with Tristar Group’s CEO, Eugene Mayne and United Stars KSA Country Manager, Aous Al Ali, the company’s journey and its central role in Saudi Arabia’s energy transition comes to the forefront. At the very core of Tristar’s operations lies a steadfast commitment to harmonise with the kingdom’s vision of a diversified future. By forging robust partnerships with industry titans like Linde Global Helium, Saudi Aramco, SABIC, Shell, Gulf Cryo, Nalco, Baker Hughes, SLB, Petromin, ChampionX, Nalco, Air Products and others, Tristar has strategically positioned itself within Saudi Arabia’s oil and gas sector. Furthermore, the company actively collaborates with the Saudi government, supporting Vision 2030, especially the National Industrial Development and Logistics Program, which aims to transform Saudi Arabia into a global logistics hub. When asked about the twofold approach, Mayne emphasises the company’s ethos, “Our integrated multi-modal logistics model is built around customers, and our expansion plans, whether organic or by acquisition, will revolve around their interests in the nation.” He also notes that Tristar’s longstanding partnerships with major players underscore the company’s steady growth to meet their demands, adapt to industry trends, and expand their service portfolio. One emblematic testament to Tristar’s dedication is its strategic partnership with Saudi Aramco. In the waning months of 2022, Tristar collaborated on an agreement to facilitate the transport of diesel and gasoline to Aramco’s sprawling bulk plants, a project also poised to bolster local employment opportunities within Tristar’s JV in the kingdom, United Stars. This contract is expected to run until 2025 with a five-year extension option. Similarly, Mayne adds that Tristar’s agreement with Baker Hughes for the transportation of different chemicals to Aramco’s rig site and the pioneering use of hydrolytic pumps – instead of diesel pumps – as a safer option in chemical bulk transportation shows the company’s long-term alignment with the Saudi government on various initiatives, notably safety and sustainability. Amidst KSA’s transition from hydrocarbon- centricity to a sustainable economic model lies United Stars – Tristar’s JV in Saudi Arabia – firmly on the frontlines, supporting Vision 2030 and its multifaceted initiatives. A brainchild of Tristar Group and Emirates National Oil Company (ENOC), United Stars was established in 2013 to provide specialised logistics services to Saudi Arabia’s petroleum and petrochemical sectors. Since then, it has A SUSTAINABLE COURSE IN SAUDI ARABIA’S ENERGY TRANSITION Oil & Gas Middle East speaks to Tristar Group’s CEO, Eugene Mayne, and United Stars KSA Country Manager, Aous Al Ali, to uncover the group’s game- changing partnerships and pivotal strides in cryogenic gas transport in KSA By Angitha Pradeep 1011 INTERVIEW oilandgasmiddleeast.comSeptemper 2023 He also reveals that United Stars secured a three-year contract with SABIC in 2023, to transport liquid gases like liquid nitrogen, carbon dioxide, and liquid argon within Saudi Arabia, Jordan, and throughout the GCC. GREEN LEADERSHIP AND COMMITMENT Safety and sustainability converge harmoniously within the ethos of United Stars. Possessing a variety of ISO certifications and a stringent safety programme, the company boasts an astounding feat: eight consecutive years with zero lost time injuries. Mayne asserts, “We run a behaviour-based safety programme across our operations that reinforces interaction between all involved parties. In road transport, this includes a positive influence on driver behaviour through coaching, communication and one-on-one interaction, and eliminating any unsafe conditions during filling, decanting or driving.” Within the realm of eco-conscious practices, Tristar and United Stars stand as pioneering exemplars, with a formidable 40% reduction in fuel consumption across its Saudi operations in 2022, achieved through strategic route burgeoned from a self-contained logistics facility operating 50 vehicles into a fleet boasting over 200 vehicles, offices and yard locations peppered across the kingdom, and a 10,000 sqm. warehouse for dangerous goods (DG) in Dammam. Furthermore, a new warehouse is under construction, that will be the first LEED-certified DG facility. In similar vein, Tristar introduced its Cryogenic Gas Transport division in 2020. Subsequently, in 2022, the company established a 1,000 sqm. cryogenic facility in Dammam to ensure the safe and reliable transportation of cryogenic gases. Discussing the cryogenic facility, Al Ali highlights that it is managed by teams proficient in cryogenic vessels and vacuum systems. “While meeting the growing demand for cryogenic transportation, the facility also strengthens Saudi Arabia’s resources and capabilities for gas logistics. To bolster sectoral growth, Tristar’s Cryogenic Gas Transport division serves its own fleet as well as cryogenic carriers of several other companies, alongside existing contracts with major industrial gas clients,” he explains. Al Ali says services include fleet maintenance for cryogenic vehicles, both preventive and corrective maintenance for vacuum-insulated containers, and extensive repair, evacuation, and refurbishment of vessels and tanks. In addition, United Stars played a significant role in the historic shipment of blue ammonia to Japan. Elaborating on this, Al Ali says, “The team was instrumental in the design and supply of a cryogenic skid, and in transporting cryogenic liquid from SABIC’s United Petrochemical plant in Jubail to Saudi Aramco’s Hawiyah facility, which later became the first shipment of blue ammonia from Saudi Arabia to Japan.” optimisation. Mayne states there are plans to reduce electricity consumption, deploy solar panels at warehouses, and achieve even more efficiency in energy, water, and waste management. Tristar is also planning a phased adoption of eco-friendly technologies within the fleet, underscoring its relentless pursuit of sustainability. As Tristar Group navigates its trajectory, its accomplishments unfurl as milestones. From clinching substantial agreements with industry stalwarts like Saudi Aramco and SABIC to playing an instrumental role in the historic shipment of blue ammonia to Japan, United Stars’ influence is both tangible and transformative. In May, United Stars won 69% in Aramco’s iktva (In Kingdom Total Value Add) programme, the highest score among multinational firms in Saudi Arabia. As a badge of innovation and industry collaboration, this facilitates preferred access to upcoming private and public sector contracts. Looking ahead, Tristar’s sights remain firmly fixed on diversification, localisation, and sustainability, with Mayne asserting, “In Saudi Arabia, United Stars flies the Tristar flag.” He adds, “We have a strong position in the global energy logistics arena as a fully integrated solutions provider with proven capabilities, and in Saudi Arabia, our accomplishments give us fresh impetus to build on our advantages, provide superior value, and reinforce our position as a pillar of the kingdom’s oil and gas industry.” With the Saudi Green Initiative and the Middle East Green Initiative as guiding constellations, Tristar envisions a future where it continues to be an anchor of innovation and progress for Saudi Arabia and the region’s ever-evolving energy landscape. Tristar Group CEO Eugene Mayne (second from right) signs contract with Saudi Aramco offcials with United Stars’ KSA Country Manager Aous Al Ali (middle) United Starsr road tanker TECHNOLOGY oilandgasmiddleeast.comSeptember 2023 T AQA Well Intervention Center of Excellence is specialised in designing and implementing electrically operated Coiled Tubing (CT) downhole systems, which at present, do not exist in the marketplace. One of such key technologies developed by TAQA in co-operation with its clients is the electric straddle packer system, also referred to as the CHALLENGER™ system. THE CHALLENGER™ SYSTEM – A DIFFERENTIATING ENABLER The CHALLENGER™ straddle packer system is designed for through-tubing services and is conveyed on Coiled Tubing (CT). Utilising mechanical packers, it is used to provide pressure isolation across zones of interest, therefore allowing selective fluid placement. This way, perforations, inflow control devices (ICDs), screens, and other zones of interest can be treated to enhance production, provide injection of water control chemicals, scale treatments, and other similar operations. REVOLUTIONISING OILFIELD OPERATIONS TAQA’s downhole system offers unique benefits over conventional systems 1213 TECHNOLOGY oilandgasmiddleeast.comSeptember 2023 two packers can be adjusted, and fluid pumped through the CT exits between them. Pressure and temperature sensors are installed above, in between and below the packers, and provide continuous real- time information to surface. The combination of electric activation of the packers and the placement of the specific sensors provides unique benefits over conventional systems, such as: • Undisturbed downhole pressure diagnostics in between the packers, as pumping through the CT is not required for the activation of the packers. • Packers stay set when pumping through the CT is stopped, allowing the monitoring of pressure decline curves, indicating the reservoir’s response to the treatment. • Individual activation of one mechanical packer or both for increased operational flexibility. • Manipulation of the CT from surface is not required for setting and un-setting of the packers, which extends the horizontal reach of the system. •The pressure or temperature sensor below the packers can be used to identify pressure breakthrough during a treatment, typically caused by insufficient cement quality around the casing. • Due to the selective application of the treatment fluids and pressure monitoring while pumping, the fluid volumes are typically smaller and hence more The integral downhole system consists of several modules, such as two packer elements, valves, a tension/compression sub, an electronics module and a CCPL for detection of casing collars and perforations. All functions are controlled electrically from surface via the CT internal cable, which is resistant to acid. The length between the economical as with conventional systems. During one operation, the CHALLENGER™ system was used to acid-stimulate 7 perforations in a carbonate reservoir, all in a single run. Exceptional depth control for setting the packers was required, since the blank pipe sections in between the perforation intervals were as short as 2 ft. In another application, the position (open or close) of ten ICDs was to be investigated. The ability to hold the packers in the set- position without pumping through the CT was critical to determining the ICDs position by monitoring the trapped pressure between the packers. The position of all ten ICDs was confirmed in one run. Due to the long horizontal section of the well the CHALLENGER™ system was well suited for the operation since no additional force manipulation from surface was required to set and unset the packers. In addition, the packers had to be set in different internal diameters above and below the ICDs, creating additional hydraulic forces on the CHALLENGER™ system. The built-in tension/compression sub was critical to the success of the operation, since monitoring of those forces was possible, avoiding unintentional downhole movement and hence damage to the packers. Today, the CHALLENGER™ system is available for 4.5” tubing/casing, downhole ambient pressures of up to 10,000 psi and temperatures of 320 0F (160 0C). Revolutionising downhole isolationTOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 2023A s the region’s definitive ranking of excellence and innovation, Oil & Gas Middle East’s Top 25 EPC Contractors list showcases the top- performing companies that have demonstrated excellence in the field of Engineering, Procurement, and Construction. The Middle East region has established itself as a global powerhouse in the oil and gas sector, fueling economies and driving progress worldwide. Behind the massive scale and intricate operations of energy projects lie the EPC contractors who possess the skills to turn ambitious visions of oil and gas producers into reality. This list is a tribute to the contributions of the contractors and a celebration of their engineering expertise. As the word seeks low-carbon energy sources, we shine a spotlight through this list on the EPC contractors who struck the right balance between conventional and decarbonisation opportunities while allocating their resources accordingly. Methodology: While formulating the list, the Oil & Gas Middle East team took into account financial reports, current and completed projects, project backlog, sustainability initiatives, and the company’s overall impact in the energy sector along with the future potential in the Middle East. MEET THE MIDDLE EAST’S TOP 25 EPC CONTRACTORS Unveiling the list of the top players who have navigated market turbulence to deliver exceptional results 15 TOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 202316 TOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 2023 1NPCC U AE-based NPCC has secured the top spot again this year thanks to its steady stream of new contracts and execution of mega project developments. As of Q3 2023, NPCC’s total contract value stood at over $4.63 billion. The state- owned contracting giant secured key contracts including ADNOC’s Hail & Ghasha Pre-Construction Service Agreement and the EPC works for the Main Oil Line from Umm Lulu to Zirku Island. In 2022, NPCC was awarded contracts worth $3.54 billion in the Middle East including work at Aramco’s Jafurah development program and EPC work for ADNOC’s New Main Gas Line Project at Lower Zakum. In the coming year, NPCC plans to consolidate its position in the core market and segments by tendering and executing mega-project developments for its clients in the oil and gas sector. The company is also exploring project developments in the New Energies sector, working closely in partnerships on related projects. Currently, NPCC is executing ADNOC LNG’s Ruwais LNG and LNG 2.0 projects through a partnering strategy with Technip Energies. Amid massive investments in green hydrogen and CCS prospects in the MENA Region, NPCC is actively engaging in discussions with major stakeholders and technology providers to support the reduction of CO2 emissions. Sustainable development and preservation of biodiversity are integral elements of NPCC’s operations. The contractor implements sustainability measures depending on the type and location of the project and its impact on biodiversity. In 2022, NPCC ensured zero spills and environmental incidents with a robust waste management plan in place to ensure the movement towards a more circular economy and to reduce its waste generation rate.17 TOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 2023 2Petrofac T his year, Petrofac has moved up to the second spot on the top contractors list. The first half of 2023 was Petrofac’s strongest period for new awards in many years. The company’s E&C business nearly tripled its backlog in the first half of this year, securing $3.4 billion worth of new awards in both its core markets with long-standing clients and in new energies. This high-quality backlog along with future opportunities and a growing talented team provides Petrofac with a strong base from which to move forward. In the coming months, Petrofac will continue selective bidding to continue to grow its high-quality backlog. The company is also well-positioned to continue backlog growth in both E&C and Asset Solutions, with a healthy pipeline scheduled for award in the next 16 months of $60 billion. In May 2023, Petrofac, leading a joint venture with petrochemical industry specialist, China Huanqiu Contracting & Engineering Corp, received an award from STEP Polymers SPA (a Sonatrach subsidiary) to execute a significant petrochemical project in Algeria. The total contract value is approximately $1.5 billion, with Petrofac’s share valued at over $1 billion. More recently, Petrofac secured an EPC contract from ADNOC Gas Processing for its Habshan Complex, West of Abu Dhabi. The contract, awarded to Petrofac Emirates, is valued at approximately $700 million and involves the Engineering, Procurement, and Construction of a new gas compressor plant. Petrofac works with its clients to reduce the carbon intensity of existing oil and gas facilities, design and build lower-intensity facilities, and deliver on the potential of new energies. The contractor was recently awarded the Gold Impact Seal for delivering on its sustainability strategy in the UAE, which is the country’s official federal recognition that certifies, measures, and rewards entities’ leading sustainable impact practices.18 TOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 2023 3 4 Samsung Engineering Technip Energies South Korean contractor Samsung Engineering, a leading engineering, procurement, construction, and project management company with a strong presence in the Middle East, has moved up several spots on our list this year. The company kicked off the year to a great start, securing an award, alongside its joint venture with Taiwan’s CTCI, for a portion of QatarEnergy’s Ras Laffan Petrochemicals Project. Once completed, the ethylene plant will be one of the largest in the world by capacity. The total cost of the project is $6 billion and the project start-up is anticipated in late 2026. In 2022, the contractor completed massive projects including packages for Oman’s OQ Duqm Refinery and Kuwait’s Clean Fuel Project. Samsung Engineering is also executing several major projects including Oman’s Green Ammonia Project, ADNOC Refining’s Crude Flexibility Project, and Saudi Aramco’s Jafurah Gas Process Project. Technip Energies ranks higher on our list this year after its order backlog hit a record high of $21 billion, the highest since the company’s inception, after securing a landmark award for the North Field South LNG project from QatarEnergy. Technip Energies is a leading engineering and technology company for the energy transition, with growing market positions in blue and green hydrogen, sustainable chemistry, and CO2 management. In May 2023, QatarEnergy awarded a $10 billion engineering, procurement, construction, and commissioning contract to a group including Technip Energies and Middle East-based Consolidated Contractors Company. Technip Energies’ chief executive Arnaud Pieton said the North Field South award “provides excellent multi-year visibility, equivalent to approximately three times our annual revenues”. The company’s net profits for Q2 2023 surged to $195.2 million for the second quarter, while its revenue hit $2.2 billion, thus continuing its solid performance. On its future growth plans, Samsung Engineering said it plans to continuously implement the FEED-to-EPC strategy to secure stable profits while continuing to receive new orders by participating in overseas tenders in the Middle East and Asia. The company has also been actively preparing Besides the QatarEnergy deal, Technip Energies also secured major deals in Europe and a project management consultancy contract with Saudi Aramco for the master planning of a new industrial city in Saudi Arabia during the first half of this year. The for the future by accelerating innovation in its business execution, investing in strategic technology and partnerships, specifically designed to address societal challenges, while proactively sustaining a consistent trajectory of growth. In addition, Samsung Engineering established the Environmental, Social and Governance (ESG) Committee within the Board of Directors in March 2022 to enhance its ESG management efforts. contract includes a number of PMC studies for the execution of the Liquid-to-Chemical Program, an ambitious initiative by the Kingdom to transform a significant portion of its oil and gas production into valuable chemical products.19 TOP 25 EPC CONTRACTORS oilandgasmiddleeast.comSeptember 2023 5 6 7 McDermott L&T Saipem Offshore engineering and construction firm McDermott is back on our list this year after securing a massive EPCI contract from QatarGas for the North Field Production Sustainability (NFPS) offshore fuel gas pipeline and COMP1, a subsea cables project. The EPCI contract was categorised as ‘major’ by McDermott, meaning it is valued between $750 million and $1.5 billion. Under the contract, McDermott will install subsea pipelines, subsea composite cables, fiber- optic cables, and onshore pipelines. This contract comes after the North Field Expansion Project (NFXP) contract that L&T is one of the largest oil and gas engineering, procurement, and construction contractors in South Asia and the Middle East and has reported almost $1.8 billion worth of new awards from Saudi Aramco alone this year. The company is a key member of Saudi Aramco’s lucrative long-term agreement (LTA) with international contracting giants and has a strong foothold in the Indian and Middle East markets. Italian contractor Saipem is back on our list this year after maintaining its steady flow of contracts in the Middle East. In June 2023, Saipem reported a major EPCI contract for offshore activities in the Middle East under the existing long-term agreement (LTA) between the Italian company and Aramco. The scope of work includes the EPCI of five platforms and associated subsea pipelines, flowlines, and cables in the Marjan field which is located offshore Saudi Arabia, featuring an entirely in-Kingdom fabrication project. Last year, Saipem won five offshore drilling contracts in the Middle East and West Africa worth about $800 million. McDermott received in 2022. In October 2022, the Houston-based contractor also partnered with Saudi Aramco and NPCC to establish two offshore L&T Group revealed in its latest quarterly results that its order book increased sharply to $50 billion, led by improved market Saipem posted a net profit of $44.4 million in the second quarter of 2023, compared to a net loss of $35 million during the same period last year, driven by the acquisition of new contracts, and growth in revenues and margins. fabrication yards in Ras Al Khair. The new yards will fabricate and assemble offshore platforms, jackets, and structures for subsea pipelines. fundamentals and increased contracting activity. The company’s energy projects segment secured orders valued at $88 million during the quarter that ended 30 June 2023, registering substantial growth of 66% year-on-year with the receipt of orders in the onshore and offshore vertical of the hydrocarbon business. L&T is diversified across several verticals that include onshore and offshore hydrocarbons, renewables, transmission and distribution, civil infrastructure, and information technology, which together contribute to its mammoth order backlog. Saipem, headed by chief executive Alessandro Puliti, won new contracts worth $7.36 billion in the first six months of 2023, which is nearly double compared to $4.61 billion in the corresponding period last year.Next >