< PreviousCOVER STORY oilandgasmiddleeast.com50 November 2024 AI-driven robots autonomously maintaining oil plants, reducing human error and improving operational safety by less-experienced employees, thanks to AI’s ability to simplify workflows and automate complex processes. For younger professionals, this is an opportunity to step into roles that were previously out of reach. For the industry’s veterans, it’s a bitter pill to swallow — watching machines take over tasks they once mastered through hard- earned experience. While AI is helping bridge the knowledge gap, it’s also reshaping what it means to work in oil and gas. Automation is replacing routine, labor- intensive jobs with data-driven roles. In offshore drilling, for example, autonomous rigs are becoming a reality, with AI systems managing everything from real-time drilling adjustments to production optimization. For companies like Nabors Industries, AI is taking over repetitive tasks, freeing up human workers to focus on higher-level decision-making. But not everyone is convinced that this shift is entirely positive. Critics argue that while AI makes operations more efficient, it could alienate workers who spent years honing their skills. The question lingers: Will AI create more opportunities for human workers, or will it render many roles obsolete? For now, companies seem optimistic about AI’s potential to augment human expertise, but the real test will come as automation becomes more widespread. One thing is clear: AI is changing the workforce. The balance between human skill and machine intelligence is shifting, and the oil and gas industry, like many others, must navigate the complexities of this transformation. Will AI be a liberator, freeing workers from tedious tasks, or will it usher in a new era where machines overshadow human expertise? The answer may depend on how companies and workers adapt to this rapidly changing landscape. AI AND SUSTAINABILITY The oil and gas industry has long been criticized for its environmental impact. From oil spills to carbon emissions, the sector is synonymous with ecological risk. In recent years, however, the industry has come under increasing pressure to not only extract resources efficiently but also to operate in a more sustainable and environmentally responsible way. This is where AI steps in once again, offering the industry a way to reconcile profitability with environmental stewardship. One of AI’s most promising applications in oil and ExxonMobil’s partnership with MIT unleashes AI-powered ocean exploration robots, enhancing deep-sea monitoring and resource discovery OAG_Nov2024_46-53_Cover Story_13417485.indd 5029/10/2024 17:55COVER STORY oilandgasmiddleeast.comNovember 2024 51 AI algorithms process vast amounts of data to predict equipment failure and optimize production gas is in helping companies reduce their carbon footprint. By optimizing production processes, AI can minimize energy waste, lower emissions, and reduce the overall environmental impact of extraction. Saudi Aramco has been at the forefront of this shift. The company is using AI and big data to monitor flaring—one of the most harmful practices in the industry, where excess gas is burned off, releasing large amounts of CO2. Through its digital twin technology, Aramco is able to predict when and where flaring is likely to occur, allowing engineers to take preventative measures. Since implementing AI-driven flaring management, Aramco has reduced its flaring by over 50% in the past decade. In the U.S., ExxonMobil is also deploying AI to combat emissions. Working in partnership with MIT, the company has developed AI-powered robots to detect natural oil seeps from the seafloor. These seeps are significant sources of oil entering the ocean, and detecting them early helps reduce environmental damage. AI algorithms are also being used to optimize the operation of Exxon’s fluid catalytic crackers, equipment that refines crude oil into gasoline. By improving the efficiency of this process, Exxon has significantly lowered its greenhouse gas emissions while maintaining high levels of production. While AI offers these practical solutions, it’s also helping companies comply with increasingly strict environmental regulations. AI’s ability to analyze vast amounts of data in real-time allows companies to stay ahead of compliance issues, adjusting operations to meet environmental standards before costly penalties arise. In fact, AI’s role in regulatory compliance has become so significant that many companies are now investing heavily in AI not just to avoid fines, but to position themselves as leaders in sustainable energy. But for all its promise, AI is not a cure-all. Critics argue that while AI can help reduce emissions and waste, it doesn’t address the root issue: the reliance on fossil fuels. Some environmentalists suggest that the industry’s embrace of AI is merely a way to “greenwash” its image, using technology to deflect attention from the fundamental environmental problems inherent in oil and gas extraction. However, AI’s role in sustainability is not limited to oil and gas production alone. The technology is also being used to support the industry’s transition to renewable energy. Companies like BP and Shell are investing heavily in AI-driven energy management systems that integrate renewable energy sources, like wind and solar, into their portfolios. AI helps balance the energy grid, ensuring that renewables are used as efficiently as possible and reducing reliance on fossil fuels. INDUSTRY TRANSFORMATION The evidence is clear: AI has already reshaped parts of the oil and gas industry. From faster drilling to improved safety and reduced emissions, artificial intelligence is pushing the sector toward greater efficiency and more sustainable operations. But for “For an industry as entrenched in tradition as oil and gas, AI is the shockwave pushing it into a data-driven future” An advanced underwater vehicle deployed to ensure the safety and maintenance of offshore structures OAG_Nov2024_46-53_Cover Story_13417485.indd 5129/10/2024 17:55COVER STORY oilandgasmiddleeast.com52 November 2024 IMPACT OF AI ACROSS THE OIL & GAS VALUE CHAIN Smarter Discovery AI is reducing exploration timelines by analyzing seismic data at speeds humans simply can’t match. Machine learning algorithms pinpoint optimal drilling locations, increasing accuracy while minimizing risk. Automated Precision AI-powered platforms like Halliburton’s LOGIX continuously optimize drilling operations. The result? Fewer delays, reduced costs, and maximized production output from new and mature wells alike. Predicting Problems Before They Happen Predictive maintenance systems use AI to monitor equipment health and forecast potential failures. By avoiding costly breakdowns, companies save millions in downtime and repairs, while boosting safety. Proactive Risk Management AI-driven safety systems can monitor human fatigue, detect anomalies in real- time, and even flag dangerous conditions before they escalate. The result is fewer accidents and safer working conditions on offshore platforms and refineries. Reducing Emissions, Optimising Resources AI is playing a critical role in helping companies like Saudi Aramco and ExxonMobil reduce flaring and emissions. By fine-tuning operations, AI minimizes environmental damage while keeping production efficient. all the headlines and ambitious projects, there’s still an elephant in the room: has AI truly transformed the industry, or are we witnessing incremental improvements disguised as revolutionary change? On one hand, AI’s influence is undeniable. The technology’s ability to process and interpret vast datasets has led to tangible benefits, particularly in upstream exploration and production. In fields like seismic data analysis and predictive maintenance, AI has replaced time- consuming, labor-intensive processes with faster, more accurate alternatives. The result? Significant cost savings and higher production efficiency. In this sense, AI has become a critical tool in helping companies navigate the volatile oil markets, where every extra barrel counts. But is AI the transformative force the industry has been waiting for? Critics argue that AI’s current impact, while impressive, is largely confined to optimization rather than innovation. Many of the gains made by AI — automating drilling decisions, preventing equipment failure, or improving safety protocols—are incremental improvements on processes that were already in place. For now, AI is acting more as a powerful assistant than as a fundamental disruptor. And then there’s the challenge of scale. Many of the AI solutions we’ve seen so far have been piloted on a relatively small scale—an offshore rig here, a refinery there. While the results have been promising, the industry still faces significant hurdles when it comes to rolling out AI across its global operations. The complexity of integrating AI systems into the diverse and sprawling operations of major oil companies means that, for many, the technology remains in the experimental phase. Then there’s the question of whether AI can address the deeper, structural challenges facing the oil and gas industry, especially in terms of sustainability. While AI helps reduce emissions and optimize resource use, it doesn’t eliminate the industry’s reliance on fossil fuels. At the end of the day, the world is still burning oil, and AI is simply making that process more efficient. True transformation may require a broader shift, one that sees the industry moving away from oil and gas altogether, toward renewable energy sources where AI could play an even larger role. For now, AI remains a critical part of the oil and gas sector’s toolkit. It’s driving efficiency, improving safety, and helping the industry respond to environmental pressures. But whether AI will fundamentally transform the industry remains an open question. To truly revolutionize oil and gas, AI will need to break beyond incremental gains and tackle the deeper, systemic challenges the sector faces—both in terms of operational scale and environmental impact. “The question is no longer if AI will change the industry, but whether it will be enough to meet the challenges ahead” OAG_Nov2024_46-53_Cover Story_13417485.indd 5228/10/2024 21:54COVER STORY oilandgasmiddleeast.comNovember 2024 53 A BRAVE NEW WORLD OR BUSINESS AS USUAL? So, will AI truly transform oil and gas? The answer, for now, is both yes and no. AI is undoubtedly reshaping how companies operate, making processes faster, cheaper, and safer. The ability of AI to optimize everything from exploration to emissions management has proven to be a game- changer in an industry that thrives on efficiency. For a sector that has long been defined by its reliance on human expertise and heavy machinery, AI offers a glimpse into a future where data and algorithms take the lead. But the transformation has its limits. While AI excels at improving existing systems, it has yet to redefine the industry’s core business model. Oil and gas companies are still extracting, refining, and selling fossil fuels - and AI, for all its power - is still working within that framework. As global pressure mounts to transition toward cleaner energy, the true test for AI will be how it helps the industry navigate this shift. Will AI push oil and gas companies to embrace renewables, or will it merely make the extraction of oil more efficient as the world demands something different? In the end, AI is less of a revolution and more of an evolution for oil and gas, at least for now. The future remains wide open, and as AI continues to evolve, so too will its role in shaping the fate of one of the world’s most powerful industries. Drones equipped with AI monitor rigs from above, helping oil companies streamline maintenance and detect early signs of operational issues Saudi Aramco’s control center leverages big data and AI to optimize resource use OAG_Nov2024_46-53_Cover Story_13417485.indd 5329/10/2024 17:55TOP LIST oilandgasmiddleeast.com54 November 2024 From cutting-edge drilling technologies to massive EPC projects, these oilfield service leaders are driving innovation and efficiency across the Middle East TOP OILFIELD SERVICE GIANTS OF 2024 OAG_Nov2024_54-59_OFS List_13421428.indd 5428/10/2024 21:55TOP LIST oilandgasmiddleeast.comNovember 2024 55 Abr a j Energy Ser vi c e s Al Masa ood Energy ABB Al Ga ith Oi lfi eld Su ppl ies a n d Ser vi c es Co Abraj Energy Services is Oman’s leading drilling company, boasting one of the youngest and most advanced fleets in the GCC. As the first Omani company to introduce semi-automated rigs, Abraj is pioneering unconventional gas development in the region. In 2023, the company secured a five-year strategic partnership with Kuwait Gulf Oil Co. and Saudi Arabian Chevron to construct drilling platforms in the Wafra oilfield. Abraj’s IPO saw overwhelming demand, positioning it as a key player in the Middle Eastern energy market. Founded in 1971, Al Masaood Energy is one of the UAE’s longest-standing oil and gas suppliers. With operations across the Middle East, North Africa, and South Asia, Al Masaood provides advanced energy services and is a key local sponsor for multinational contractors. In 2023, the company won a three-year contract from ADNOC for welding habitats on 36 offshore platforms and four major onshore facilities. Al Masaood’s strategic partnerships continue to drive its growth and strengthen its role in regional energy development. ABB supports the oil and gas industry by delivering electrification and optimising operations across the entire value chain. In 2023, ABB signed a major agreement with Samsung Engineering in Saudi Arabia to provide complete analytics solutions to the local market. The deal positions ABB as a single-source vendor for gas analyzer system integration. Additionally, ABB is building a state-of-the-art integration facility in Dammam to lead the production of analytical systems for the region, furthering their commitment to innovation in the Saudi oil and gas sector. ADE S Hold in g A D N O C D rilling ADES Holding is one of the largest offshore drilling service providers globally, backed by Saudi Arabia’s Public Investment Fund (PIF). The company operates 36 land rigs and 49 offshore assets across seven countries. ADES has secured major contracts with clients like Saudi Aramco and Kuwait Oil Co. The company’s resilient business model has driven growth, with recent acquisitions bolstering its position in the offshore drilling space. ADES is expected to go public in 2024, marking one of the year’s largest IPOs in Saudi Arabia. As a key enabler of Abu Dhabi’s upstream activities, ADNOC Drilling leads the region’s oilfield services sector. With 116 rigs and plans to expand to 142 by the end of 2024, the company plays a pivotal role in boosting ADNOC’s production capacity. In 2023, ADNOC Drilling secured over $2.4 billion in contracts and continues to integrate hybrid power technology, reducing rig emissions by up to 15%. The company’s focus on innovation and expansion aligns with ADNOC’s goal of reaching 5 million barrels per day by 2027. Al Gaith Energy has grown from a single unit in 1966 to a key player in the UAE’s oilfield services sector. In 2022, the company secured a significant contract from ADNOC for directional drilling and logging- while-drilling (LWD). The contract covers both onshore and offshore operations and is expected to inject over 75% of the award value into the UAE economy through ADNOC’s In-Country Value program. Al Gaith continues to support ADNOC’s efforts to expand production capacity and meet growing energy demands. OAG_Nov2024_54-59_OFS List_13421428.indd 5528/10/2024 21:55TOP LIST oilandgasmiddleeast.com56 November 2024 Ba k e r Hug h e s A rabian D rilling E x pro G roup Baker Hughes remains a major player in the oilfield services industry, with its recent Middle East contracts underscoring its market strength. The company secured significant offshore contracts, including the supply of subsea trees for Eni’s Baleine project in West Africa and equipment for the largest gas discovery in the Black Sea. Baker Hughes also introduced rigless electrical submersible pumps (ESP) to the Middle East market, with contracts highlighting its focus on expanding rigless solutions across the region. Houston-based Forum Energy Technologies (FET) provides specialized solutions to the oil and gas industry, focusing on technology for drilling, production, and processing. In 2023, FET secured a $25 million contract to supply electrostatic desalter systems for Saudi Aramco’s Safaniyah oil field. The deal includes FET’s cutting-edge desalting and multiphase mixing technologies, which are manufactured at their Dammam facility. With a strong presence in Saudi Arabia, FET continues to deliver key solutions to the region’s energy sector, bolstering its role in the Middle Eastern market. Established in 1964, Saudi-listed Arabian Drilling continues to secure key contracts with Saudi Aramco. In 2023, the company extended onshore and offshore rig contracts worth nearly $800 million, furthering its position as a leader in drilling services. Arabian Drilling also won a major contract to supply 10 new land rigs for Aramco’s unconventional gas program, increasing its fleet by 26%. With these wins, the company is set to boost revenue and maintain its strong presence in Saudi Arabia’s expanding energy sector. Champion X COSL is China’s leading offshore drilling contractor, offering services across the exploration, development, and production phases. In 2023, COSL secured long- term contracts worth $1.9 billion with international oil companies in the Middle East, cementing its position in the region. The contracts are set to enhance COSL’s deepwater capabilities and support Saudi Arabia’s growing demand for advanced drilling technologies. COSL is focused on scaling its operations across the Gulf, bringing its expertise in large-scale offshore drilling projects. ChampionX is a global leader in chemical solutions and artificial lift systems, providing technologies to enhance oil production safely and sustainably. In the Middle East, the company secured contracts for its corrosion inhibition chemistries and advanced chemical dosing technologies, helping support field development projects. ChampionX’s Ichem technology is widely deployed in the region, extending mean time between failure for various well types and significantly reducing downtime and operational risks. Expro Group specializes in well flow management services, including well testing, subsea completion, and intervention. With a strong focus on safety and efficiency, Expro operates across the Middle East, delivering solutions to improve well performance and operational reliability. The company’s expertise in well intervention and testing has made it a key partner for major players in Saudi Arabia and Qatar. Expro’s services help operators manage the lifecycle of wells, enhancing productivity and safety in both onshore and offshore environments. C h in a Oi lfi eld Ser vi c es L imited ( C OS L ) For um Energy T e c h nologies (F ET ) OAG_Nov2024_54-59_OFS List_13421428.indd 5628/10/2024 21:55TOP LIST oilandgasmiddleeast.comNovember 2024 57 Hel mer ic h a n d P a yne (H&P ) Na bors Ind u str ie s H a llibur ton C o mpan y N E SR (Na ti ona l Energy Ser vi c es R e un ited Cor p .) Helmerich & Payne (H&P) is a leading contract drilling company known for its advanced land rig technologies. The company’s international strategy includes expanding its footprint in the Middle East, particularly in Saudi Arabia. In partnership with ADNOC, H&P has provided eight world-class rigs and is now focused on developing an updated version of its FlexRig tailored to the region. This rig design emphasizes mobility and agility for Middle Eastern terrain while maintaining high efficiency in unconventional drilling, reinforcing H&P’s commitment to the region. NESR, a NASDAQ-listed oilfield services provider, is one of the largest in the MENA region. In the past year, NESR secured over $175 million in contracts across the GCC and North Africa, highlighting its growing influence. Notable wins include a three- year $300 million rigless stimulation contract in Saudi Arabia and a $658 million contract for cementing services with ADNOC. NESR’s diverse portfolio of services positions it as a regional leader in well intervention, stimulation, and integrated oilfield services. Halliburton has maintained a dominant presence in the Middle East for over 75 years, delivering drilling, completion, and production services. In 2023, the company’s Middle East and Asia revenues hit $1.4 billion, driven by increased demand in Saudi Arabia for wireline services, fluid solutions, and drilling tools. Halliburton’s ongoing partnership with Nabors Industries in Iraq focuses on deploying advanced well construction automation solutions. With dual headquarters in Houston and Dubai, Halliburton remains a major player in Middle Eastern oilfield services, driven by innovation and strategic partnerships. McDer mot t Inter nati onal KC A D e u ta g McDermott International provides engineering, procurement, construction, and installation services to the oil and gas industry, with a particular focus on offshore and subsea projects. The company has a significant footprint in the Middle East, where it partners with ADNOC and Saudi Aramco on large- scale offshore development projects. McDermott’s integrated approach, from concept to completion, helps regional players optimize performance and reduce costs, positioning the company as a trusted provider of innovative solutions in the Middle Eastern market. KCA Deutag, a UK-based oilfield services firm, has strengthened its presence in the Middle East with the acquisition of Saipem’s onshore drilling unit. The integration, completed in 2023, has enhanced KCA Deutag’s footprint across key Middle Eastern markets, particularly in Oman and Iraq. The company has secured multiple contracts in the region, including a $60 million one-year extension for offshore services in Angola. KCA Deutag’s focus on customer-centricity continues to drive growth in its core Middle East operations, with a strong order backlog. Nabors Industries is at the forefront of drilling technology, robotics, and automation in the Middle East. In 2023, the company expanded its SmartROS and RigCLOUD solutions, automating workflows and improving efficiency for operators in the region. Nabors continues to lead in process automation and drilling technology, helping companies reduce operational costs and boost safety. Its advanced modular solutions, which can be installed on any rig, allow Nabors to innovate drilling operations across the Middle East, focusing on low-carbon energy production. OAG_Nov2024_54-59_OFS List_13421428.indd 5728/10/2024 21:56TOP LIST oilandgasmiddleeast.com58 November 2024 Pe tr o fa c NO V (Na ti ona l Oi lw el l V a rc o ) Sa ipem Petrofac, headquartered in the UAE, is a major EPC services provider with a strong presence across the Middle East. The company is involved in delivering large-scale projects for oil and gas processing, both onshore and offshore. In recent years, Petrofac has secured significant contracts in Iraq, Oman, and Saudi Arabia, particularly for gas processing plants and offshore platform construction. With a focus on operational efficiency and safety, Petrofac continues to play a vital role in the region’s energy development. Seadrill, a leading offshore drilling contractor, reported strong revenues of $329 million in Q2 2023, reflecting increased activity in the Middle East. The company is focused on expanding its floater segment, having completed several key divestitures and acquisitions, including the sale of jack-up rigs in Qatar. Seadrill’s order backlog stands at $2.6 billion, with recent contract wins for deepwater projects across the Arabian Peninsula. With a strategic focus on the Middle East, Seadrill continues to be a dominant player in the offshore drilling market. Houston-based NOV continues to play a significant role in the Middle East’s oilfield services sector, with strong year-on-year revenue growth. In 2023, NOV reported $1.96 billion in first-quarter revenue, driven by a steady increase in tendering activity and demand for its advanced drill pipe technologies. NOV also secured large tenders in the Middle East for its Viper™ Connectors and composite piping systems. The company remains a trusted partner for national oil companies, providing equipment for projects in Saudi Arabia, the UAE, and Oman. Pre cision D rilling Proserv, a leading controls technology company, is expanding its operations in Saudi Arabia with the opening of a new state-of-the-art facility in Dammam. This strategic move is aimed at enhancing Proserv’s capabilities in real-time condition monitoring and industrial automation, both for traditional energy operations and renewables. With proximity to Aramco’s headquarters, Proserv is well-positioned to grow its footprint in the Kingdom, delivering digital and automation solutions to support Saudi Arabia’s energy transition and sustainability goals. Canada’s Precision Drilling Corp continues its strong performance in the Middle East, securing multiple long-term contracts in Kuwait and Saudi Arabia in 2023. Precision now has five rigs operating in Kuwait and three in Saudi Arabia, representing a significant portion of its international operations. The company’s success in the region is built on its advanced AC Super Triple rigs, which offer greater efficiency and safety in harsh environments. With a backlog of $600 million, Precision Drilling remains a key player in Middle Eastern drilling services. Saipem is a global leader in drilling and engineering services, with a strong presence in the Middle East, particularly in Saudi Arabia and the UAE. The company specializes in both offshore and onshore oilfield services, including complex EPC projects. Saipem’s expertise in environmentally friendly technologies has positioned it as a key player in the region’s push toward more sustainable energy production. Recent projects include major contracts with Saudi Aramco for offshore development and partnerships in renewable energy integration. Prose rv Seadr il l OAG_Nov2024_54-59_OFS List_13421428.indd 5828/10/2024 21:56TOP LIST oilandgasmiddleeast.comNovember 2024 59 SL B Va ll o u re c Shel f D rilling We a th e rf o rd SLB’s Middle East operations saw substantial growth in 2023, with revenue from the region rising by 10% to $2.642 billion. Major contract wins, such as Saudi Aramco’s award for directional and digital drilling solutions, highlight SLB’s strong foothold in the region. SLB also secured a five-year contract with Qatargas for the provision of unitized Cameron wellhead and tree systems, which will be used in Qatar’s North Field South project. SLB remains a key player in the Middle Eastern oilfield services landscape, leading the way with advanced technologies. Weatherford remains one of the top oilfield service providers in the Middle East, with a strong focus on directional drilling, completions, and well stimulation services. In 2023, the company secured a five-year, $1.83 billion contract with ADNOC for directional drilling and logging-while-drilling solutions. Weatherford also extended its contract with Petroleum Development Oman, covering 700 wells. With an emphasis on automation and real-time data analysis, Weatherford continues to innovate its services in the region, contributing to the Middle East’s growing oil production capacity. Dubai-based Shelf Drilling continues to grow its presence in the Middle East, securing significant contract extensions in Egypt and India. In 2023, the company won a $236 million contract for its newly acquired Shelf Drilling Victory jack-up rig in the Arabian Peninsula. Shelf Drilling also extended contracts for its jack-up rigs with Chevron in Angola and ONGC in India. With growing demand for offshore rigs, Shelf Drilling is well-positioned to benefit from the region’s increasing offshore exploration and production activities. Te c h n ip F M C TA Q A TechnipFMC is a global leader in subsea, onshore, and surface technologies, providing integrated solutions to the energy sector. With significant operations in the Middle East, the company is known for its subsea production systems and integrated EPCI services, which are crucial for offshore projects in the region. TechnipFMC’s work with major players like ADNOC and Qatar Petroleum has cemented its role in supporting the region’s growing demand for advanced oil and gas technologies, especially in offshore development. Saudi-based TAQA continues to grow as a leading energy services provider with a strong focus on well solutions. In January 2023, TAQA acquired Al Mansoori Petroleum Services, expanding its international reach and reinforcing its position in the MENA region. With over 5,500 employees and operations in 20 countries, TAQA’s integrated well solutions portfolio is a key driver of growth. The company is also committed to expanding geothermal energy in Saudi Arabia, as part of its broader strategy to innovate and diversify its energy offerings. French tubular solutions provider Vallourec has been a key partner in the Middle East for over 40 years. In 2023, the company signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Ministry of Investment to expand its activities in the Kingdom. Vallourec is supplying premium casing tubes to Saudi Aramco under a 10-year contract, solidifying its presence in the region. The company is also focused on supporting Saudi Arabia’s energy transition, providing solutions for carbon capture, hydrogen storage, and circular economy initiatives. OAG_Nov2024_54-59_OFS List_13421428.indd 5928/10/2024 21:56Next >