< PreviousBRAND VIEW required. What’s more, installation and commissioning is much faster, and even factors such as noise level are markedly lower. There is one obvious requirement: access to sufficient supplies of reliable grid electricity. To maximise the decarbonisation effect, the electricity that runs the electric motors should come from renewable sources. In the Middle East, solar power comes to mind as a viable renewable energy source for most locations. The challenge is how to transmit this electricity from the onshore grid to oil rigs out in the ocean? The solution is a long-established, proven technology: High Voltage Direct Current (HVDC) transmission. HVDC allows transmission with much higher efficiency than conventional power transmission, again contributing to the decarbonisation efforts of the oil and gas industry. SEAMLESS REPLACEMENT Perhaps most significantly to operators fearful that the transition could result in lost production time, conversions can be planned for the next major maintenance shutdown, meaning no lost revenue, especially given that replacements can take less time than a conventional turbine outage. The reality is that the greatest obstacle to making big strides in this area is not the technology, which can match gas or steam turbines one-for-one up to even the largest 100MW capacities. Nor is it the impact on operations, as illustrated above. Rather, the biggest challenge is that in such a complex, highly regulated and capital-intensive industry, implementing significant operational changes is no simple process – even when it’s toward a well-proven technology. THE HEART OF THE FACILITY At GE Vernova, we fully understand this caution of oil and gas companies. Rotating equipment is at the heart of their production facilities. The performance of these assets determines production reliability and ultimately profitability – deliverables that can have national security and market implications locally and globally. For massive operations like multi-train LNG liquefaction plants, an unplanned shutdown can mean millions of dollars a day in lost revenue and penalties. Even sub-optimal operations can be costly. Happily, what we’ve seen in dozens of replacement projects around the world – including at multi-train LNG plants – is that the new electric motors with VSDs fit seamlessly into existing operations, whether brownfield or greenfield operations. They deliver the same performance and reliability as gas or steam, while offering a much lower carbon footprint, particularly when fed by renewable energy. Improved efficiencies and lower operating and maintenance costs come as additional benefits. And also in the GCC we are seeing examples: ADNOC is currently driving the Lightning project that aims at decarbonising offshore operations, by connecting offshore production operations with lower carbon onshore electricity, using HVDC. ADNOC is also exploring the replacement of steam and gas turbines with electric motors. With the region’s ambitious embrace of decarbonisation and a net-zero future, transitioning to electric motors and variable speed drives is a win-win proposition for companies operating in the Gulf ’s oil and gas sector, and they should add it to the top of their priority list. Representing a cost-effective big leap forward for decarbonisation, electrification is no buzzword – it can generate real benefits for the net-zero strategies of oil and gas companies and for governments alike. oilandgasmiddleeast.com40 November 2024 As part of a Variable-Speed Drive System (VSDS), medium voltage drives like GE Vernova’s MV7000 can help to significantly reduce carbon emissions in oil and gas operations “At GE Vernova, we have extensive experience with ‘eLNG’ retrofitting and greenfield development, and we have seen eLNG solutions deliver emission reductions of 13%-20%, especially in combination with zero-carbon power or high-efficiency gas power” OAG_Nov2024_38-40_GE Vernova_13434869.indd 4029/10/2024 20:00Presented by Official Sponsor Scan For More Information 23 & 24 November 2024 | Hudayriyat Island تﺎـــــﻳﺮـــــﻳﺪـــــﳊا ةﺮـــــﻳﺰـــــﺟ | 2024 ﱪـــــﻤــــــﻓﻮـــــﻧ 24 و 23 Untitled-11 123/10/2024 09:45COUNTRY FOCUS oilandgasmiddleeast.com42 November 2024 THE UAE’S ENERGY EVOLUTION Balancing Tradition and Innovation By: Pooja Kapoor COUNTRY FOCUS OAG_Nov2024_42-45_UAE_13416441.indd 4228/10/2024 21:52COUNTRY FOCUS oilandgasmiddleeast.comNovember 2024 43 With nearly 10% of the world’s proven crude oil reserves, the United Arab Emirates (UAE) is a key player in global energy markets. Oil exports contribute around 30% to the UAE’s economy, and the country has taken significant steps to ensure the secure delivery of hydrocarbons worldwide, including the construction of the Abu Dhabi Crude Oil Pipeline, which enables oil to bypass the Strait of Hormuz. In recent years, the UAE has implemented major reforms in its oil and gas sector, aiming to increase oil production from 3 million barrels per day (bpd) to 5 million bpd by 2030. It also seeks to achieve self-sufficiency in gas production and expand its refining and petrochemical operations. State-owned Abu Dhabi National Oil Company (ADNOC) has also introduced the In-Country Value program, which is generating economic benefits beyond the energy sector and supporting national development goals. According to an ADNOC spokesperson, “ADNOC is investing to decarbonise our operations, including through the electrification of our onshore and offshore operations using nuclear and solar energy sources, targeting net zero across our operations by 2045, reducing our carbon intensity by 25% and aiming for near zero methane emissions by 2030. Our targets are underpinned by a $23 billion allocation to decarbonisation and the latest climate technologies. We are also driving the growth of renewables through our shareholding in Masdar and expanding low-carbon ammonia and hydrogen production which have the potential to play very important roles in decarbonizing hard-to-abate sectors.” The UAE also has a longstanding history of encouraging private and foreign investment in its oil and gas exploration and production. Leading U.S. companies, including ExxonMobil and Occidental Petroleum, have established partnerships with Abu Dhabi to strengthen this collaboration. Simultaneously, in 2021, the UAE launched its Net Zero 2050 Strategic Initiative, a $162 billion approx plan to invest in clean and renewable energy over the next three decades. It was the first Gulf nation to commit to achieving net-zero emissions by 2050. Between 2019 and 2022, the UAE successfully doubled its renewable energy capacity as part of the UAE Energy Strategy 2050, which aims to triple installed capacity by 2030. According to Suhail Al Mazrouei, UAE Energy and Infrastructure Minister, in 2022, the UAE saw a 70% increase in renewable energy capacity, reaching 6.1 “ADNOC is investing to decarbonise our operations, including through the electrification of our onshore and offshore operations using nuclear and solar energy sources, targeting net zero across our operations by 2045” UAE’s ambitious goal to boost oil production to 5 million barrels per day by 2030 OAG_Nov2024_42-45_UAE_13416441.indd 4328/10/2024 21:52COUNTRY FOCUS oilandgasmiddleeast.com44 November 2024 gigawatts. The UAE has also invested heavily in clean energy projects, from nuclear to solar, in pursuit of its net-zero emissions target by 2050. Clean Energy accounted for 27.83% of the UAE’s total energy mix in 2023, marking a significant milestone in the country’s efforts to meet its climate goals. The UAE aims to increase this figure to 30% by 2030. Major projects contributing to these goals include the 1.8 GW Phase VI of the Mohammed bin Rashid Al Maktoum Solar Park, Dubai’s second phase of its waste- to-energy project, and two significant photovoltaic projects – the 1.5 GW Al Ajban and Al Khazna in Abu Dhabi. A hydroelectric power plant in Hatta and the recently commissioned fourth reactor at the Barakah nuclear plant will also play pivotal roles. THE HISTORY OF ENERGY IN THE UAE In the early 1930s, oil company teams began conducting geological surveys in the UAE, paving the way for the country’s energy sector. The first commercial oil discovery occurred in 1958, both onshore at the Bab-2 well and offshore at Umm Shaif. By 1962, Abu Dhabi exported its first cargo of crude oil, marking the UAE’s entry into the global oil market. In 1971, ADNOC was formally established, now a leading diversified energy group, fully owned by the Abu Dhabi Government, responsible for managing the nation’s oil and gas resources. ADNOC also established itself as a global leader in environmental sustainability by becoming the first company to capture carbon from the iron and steel industry. Its Carbon Capture, Utilisation, and Storage (CCUS) facility at Al Reyadah captures 800,000 tonnes of CO2 annually from Emirates Steel The UAE’s strategic position in the global energy market continues to evolve The UAE is commited to achieving net-zero emissions by 2050 OAG_Nov2024_42-45_UAE_13416441.indd 4428/10/2024 21:52COUNTRY FOCUS oilandgasmiddleeast.comNovember 2024 45 Industries (ESI), which is used in the Bab and Rumaitha oil fields to support Enhanced Oil Recovery (EOR). This facility is integral to ADNOC’s 2030 sustainability goals. THE PRESENT SITUATION ADNOC produces 4 million barrels of oil and 10.5 billion cubic feet of natural gas per day, while also making notable advancements in renewable energy. UAE’s benchmark Murban crude oil has also made remarkable progress, achieving record trading activity in 2024. The UAE, through ADNOC, has significantly expanded its petrochemical operations. ADNOC acquired German chemicals maker Covestro for $16.3 billion earlier this year. This acquisition marks the largest in ADNOC’s history and stands as one of the most significant foreign takeovers by a Gulf state. Alongside the Covestro deal, ADNOC has been actively pursuing other strategic ventures in Europe. The company has engaged in discussions with Austria’s OMV to merge their petrochemical joint ventures, Borealis and Borouge. Earlier in the year, ADNOC acquired a 24.9% stake in OMV from Abu Dhabi sovereign fund Mubadala in February. Additionally, ADNOC concluded 2023 by finalising an agreement to acquire OCI’s entire stake in Fertiglobe for $3.62 billion, further advancing its chemicals growth strategy and plans to establish a global platform for ammonia. On the renewables front, the country’s investment in clean energy projects has surpassed AED 45 billion, led by key initiatives such as the 1.8 GW Phase VI of the Mohammed bin Rashid Al Maktoum Solar Park, the second phase of Dubai’s waste-to-energy project, and significant photovoltaic projects in Abu Dhabi. The UAE has also made significant strides in green hydrogen production and carbon management. ADNOC is set to expand its carbon capture capacity to 10 million tonnes annually by 2030. THE WAY AHEAD Launched by ADNOC in June 2024, the Ruwais LNG project is a groundbreaking facility in Abu Dhabi’s Al Ruwais Industrial City. Featuring two liquefaction trains with a combined capacity of 9.6 million tons per year, it is set to begin operations in late 2028. As the first LNG export facility in the Middle East and Africa powered by clean energy, Ruwais LNG will more than double ADNOC’s output to meet growing global demand. A consortium, including bp, Mitsui & Co., Shell, and TotalEnergies, has acquired a 40% stake. Speaking on the significance of the project, ADNOC said, “ADNOC’s recent investments in natural gas, including the Ruwais LNG project, will ensure we are well positioned to respond to increasing demand for this important transition fuel which generates lower carbon emissions compared to other fossil fuels. The Ruwais LNG project will more than double our existing UAE LNG production capacity to around 15 mtpa, Internationally, we are complementing this domestic growth on a similar scale, targeting 10 to 15 mtpa of natural gas and LNG equivalent.” In parallel to the Ruwais LNG project, ADNOC has reached a significant milestone at its multibillion-dollar Hail & Ghasha offshore development project, marking the first cut of steel for the project’s subsea structures. As the largest gas project in ADNOC’s history, Hail & Ghasha is part of the Ghasha Concession and is set to produce over 1.5 billion cubic feet of gas per day by the end of the decade. In a further push for renewable energy in the UAE, the Dubai Electricity and Water Authority recently awarded a contract worth US$3 million for the construction of a glass-reinforced epoxy water pipeline to support a pumped storage hydro plant in Hatta, upon completion, the 250 MW pumped storage hydroelectric station will provide a storage capacity of 1,500 MWh and is designed to last up to 80 years. On other major projects that will impact the future of the country’s energy industry, ADNOC said, “We see artificial intelligence as one of the key megatrends that will shape human progress and revolutionise global prosperity over the next decade. It can also play a crucial role in accelerating a just, orderly and equitable energy transition. ADNOC is well positioned at the forefront of AI adoption and deployment and we are further embedding AI from the control room to the board room to empower our people, create more value and reduce emissions.” With these efforts, the UAE is solidifying its position as a global energy leader through a balanced approach that integrates both traditional and renewable energy sources reflecting the nation’s long-term vision for sustainability. ADNOC plays a pivotal role in the UAE’s energy transition OAG_Nov2024_42-45_UAE_13416441.indd 4528/10/2024 21:52COVER STORY oilandgasmiddleeast.com46 November 2024 AI STRIKES OIL: CAN ALGORITHMS POWER THE NEXT ENERGY REVOLUTION? From exploration to sustainability, AI promises to reshape oil and gas — if the industry is ready that is... OAG_Nov2024_46-53_Cover Story_13417485.indd 4628/10/2024 21:53COVER STORY oilandgasmiddleeast.comNovember 2024 47 data-driven assistant that can predict the location of untapped oil and gas reserves with unprecedented accuracy. For companies like Halliburton and SLB, the days of painstaking seismic data analysis by hand are numbered. AI has stepped into the role of geologist, analyzing millions of data points in seconds, revealing patterns and anomalies hidden deep beneath the earth’s surface. Take ADNOC’s North East Bab asset, where AIQ’s AI-powered well- control solution, known as RoboWell, autonomously adjusts gas-lifted wells in real time. The AI algorithms constantly analyze data and make adjustments to optimize production, all while ensuring safety standards. The result? More oil, less risk, and a lot fewer human errors. This approach isn’t limited to just one region. Globally, oil majors are embracing AI. In Saudi Arabia, Halliburton has partnered with the Saudi Data and Artificial Intelligence Authority (SDAIA) to develop AI tools that improve underground drilling workflows, further reducing the costs and environmental impact of exploration. Yet, with all its promise, there are questions. Artificial intelligence has already begun to transform industries — from finance to healthcare — with the promise of optimizing processes, reducing costs, and, in some cases, completely reshape the way businesses operate. Yet, in the oil and gas sector, an industry famously steeped in tradition and manual labor, AI is making a different kind of entrance. For decades, oil and gas companies have been at the forefront of technological advancement, from the first seismic surveys to complex offshore drilling platforms. But now, the industry is on the precipice of a new kind of innovation: one driven by algorithms and data streams rather than physical labor. The big question on everyone’s mind: Can AI truly live up to the hype in a world defined by drills, pipelines, and centuries of expertise? OPTIMISING EXPLORATION AND DRILLING Imagine a world where the hunt for new oil reserves doesn’t rely on human intuition or decades of experience, but on the precise calculations of a machine. That’s the vision AI brings to oilfields, an automated, ADNOC’s digital control room streamlines operations and boosts efficiency with real-time data OAG_Nov2024_46-53_Cover Story_13417485.indd 4729/10/2024 17:54COVER STORY oilandgasmiddleeast.com48 November 2024 For all the hype, AI’s success in exploration is still heavily dependent on the quality of the data it processes. As one anonymous industry insider points out, “AI is only as good as the data we feed it. There’s still a long way to go before we can fully trust it to replace human oversight.” Despite this, the potential is undeniable. AI is enabling companies to extract valuable resources faster and more cost-effectively than ever before. But the question remains: is this the breakthrough the industry has been waiting for, or just another tool in a long history of technological evolution? SUPERCHARGING PRODUCTION AND EFFICIENCY Once the oil is located and extracted, the real work begins. Managing production and ensuring that every barrel of oil is efficiently processed is where companies make or lose billions. Enter artificial intelligence, now stepping in to do the heavy lifting, not just in locating reserves but also in streamlining production. AI’s power lies in its ability to process vast amounts of operational data - everything from machinery health to market conditions - and make real-time adjustments to keep the wheels turning smoothly. In the past, predictive maintenance was a dream for oil companies. Today, it’s a reality. By analyzing historical performance data, AI can predict when critical equipment is likely to fail, allowing operators to service machinery before an expensive processes, there is a looming question about scalability. How easily can AI-driven solutions that work on a pilot scale be implemented across global operations? For now, early successes in specific areas are promising, but the jury is still out on how fully AI can transform oil and gas production on a global scale. SAFETY AND ENVIRONMENTAL PROTECTION While efficiency is king in the oil and gas world, safety is a close second. The very nature of the industry - working with volatile substances in challenging environments — means that accidents can be costly, both in terms of lives and money. This is where AI offers a unique double advantage: not only does it enhance safety, but it also plays a key role in reducing the environmental impact of oil and gas operations. Accidents on oil rigs are often triggered by human error or equipment failure. With AI, companies can minimize both. Advanced analytics and machine learning models allow AI to monitor equipment in real time, identifying subtle signs of wear or stress long before they become dangerous. In the North Sea, AI-enabled systems on offshore platforms now continuously track equipment conditions, ensuring that even minor anomalies are flagged for maintenance. In doing so, AI is preventing breakdowns that could lead to spills, fires, or explosions. Beyond machinery, AI also keeps a close eye on human operators. In the Gulf of Mexico, BP has begun using AI-driven safety systems that monitor crew fatigue levels and alert supervisors when workers are at risk of making dangerous errors. This proactive approach to safety, powered by AI, has already reduced the number of accidents on BP’s offshore rigs by more than 30%. But AI’s impact isn’t just about avoiding accidents, it’s also helping companies tackle one of the industry’s biggest challenges: environmental protection. In and time-consuming breakdown occurs. For companies like Aker BP, a Norwegian oil producer, AI-driven predictive maintenance has been a game changer. On their offshore platforms, AI identifies potential failures before they happen, helping avoid millions in lost production. At the heart of this transformation is AI’s ability to manage vast streams of data from sensors placed across oil rigs, refineries, and pipelines. Take, for example, Halliburton’s LOGIX Autonomous Drilling Platform. By utilizing AI to analyze real-time drilling data, the platform continuously optimizes operations, cutting down on the time and cost required to drill new wells. In Saudi Arabia, this same technology is helping to redevelop aging brownfield sites, where AI is being used to squeeze more oil out of declining wells. The numbers speak for themselves. According to a recent EY survey, over 92% of global oil and gas companies are either already investing in AI or plan to in the near future. From back-office automation to frontline operations, AI is being integrated into every aspect of the oil supply chain. And the results? Reduced costs, faster production times, and safer working environments. Yet, challenges remain. While AI has made enormous strides in automating “AI isn’t just tweaking the rules, it’s rewriting the playbook for how oil and gas companies find, produce, and deliver energy” Engineers manage critical underwater systems, powered by AI for precise monitoring OAG_Nov2024_46-53_Cover Story_13417485.indd 4829/10/2024 17:54COVER STORY oilandgasmiddleeast.comNovember 2024 49 as good as the data it’s fed. For AI to truly revolutionize safety and sustainability, companies will need to make massive investments not just in AI tools, but in the underlying infrastructure that collects and processes the data AI relies on. As the oil and gas industry grapples with this dual challenge of staying profitable while reducing its environmental impact, AI seems to be the only tool powerful enough to deliver on both fronts. The question is: Will companies go all in, or will AI’s full potential remain untapped? THE WORKFORCE TRANSFORMATION For all the technological marvels AI offers, there’s an unavoidable truth: it changes the nature of work. In an industry like oil and gas, where expertise is passed down through decades of hands-on experience, AI presents both an opportunity and a threat. For some, it’s the promise of a more efficient, streamlined future. For others, it represents the beginning of the end of traditional roles that have defined the sector for generations. The oil and gas industry has long been aware of the the past, managing oil spills or emissions was reactive, companies responded only after a spill or excessive flaring occurred. Today, AI is flipping that model. Using satellite imagery and machine learning, AI systems can detect oil spills almost instantly, allowing for quicker response times. AI models also help optimize production to minimize flaring, reducing the release of harmful gases into the atmosphere. Take SLB’s (formerly Schlumberger) partnership with Saudi Aramco’s Geminus AI, which uses a mix of AI and physics- based models to reduce emissions while optimizing operations at natural gas plants. This AI technology has helped plants evaluate thousands of operational scenarios in real time, reducing their carbon footprint while maintaining high levels of production efficiency. It’s a solution that meets both economic and environmental goals, a rare win-win for an industry under increasing pressure to “go green.” Yet, despite AI’s potential to drive a cleaner, safer industry, critics argue that AI is not a silver bullet. The technology’s ability to predict and prevent issues is only ADNOC’s AIQ platform revolutionizes well-control with real-time data analytics, ensuring safe and optimized production across oil fields looming “great crew change.” As veteran engineers, geologists, and technicians retire in droves, companies are scrambling to fill the knowledge gap left behind. But where will the next generation of talent come from? Fewer young professionals are entering the field, particularly in areas like petroleum engineering and geology, leaving companies facing a significant skills shortage. Enter AI. Jimmy Fortuna, Chief Product Officer at Enverus, a major provider of oil and gas data analytics, sees AI as a bridge between the retiring workforce and the new generation of workers. “AI can preserve institutional knowledge that would otherwise be lost,” he says. With AI-driven tools like Enverus’ Instant Analyst, employees no longer need to be “power users” of complex software systems. Instead, AI handles the heavy lifting, sifting through millions of data points and decades of proprietary research to provide actionable insights. In other words, AI doesn’t just fill gaps in manpower — it democratizes expertise. Tasks that once required years of specialized training can now be performed OAG_Nov2024_46-53_Cover Story_13417485.indd 4929/10/2024 17:55Next >