Oil & Gas Leaders Magazine: Sustainability Through Innovation in UAE's Oil and Gas Industry
Exclusive: H.E. Saif Humaid Al Falasi, Group CEO of Emirates National Oil Company (ENOC). Stories from Saudi Aramco, Rosneft, Jacobs, ADNOC, Exxon Mobil, KBR, Qatar Petroleum, Chevron, McDermott.
Special Feature Stories: Chemical, Drilling, Exploration, Offshore, Onshore, Petroleum, Energy Storage, Oil Transport, Refinery, Upstream, Midstream, Energy, Downstream, Sustainability
Country Focus: United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia.
More engineering stories at https://www.gineersnow.com/topics/magazines
Exclusive: H.E. Saif Humaid Al Falasi, Group CEO of Emirates National Oil Company (ENOC). Stories from Saudi Aramco, Rosneft, Jacobs, ADNOC, Exxon Mobil, KBR, Qatar Petroleum, Chevron, McDermott.
Special Feature Stories: Chemical, Drilling, Exploration, Offshore, Onshore, Petroleum, Energy Storage, Oil Transport, Refinery, Upstream, Midstream, Energy, Downstream, Sustainability
Country Focus: United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia.
More engineering stories at https://www.gineersnow.com/topics/magazines
OIL & GAS LEADERS Chemical | Drilling | Exploration | Finance | Offshore-Onshore | Petroleum | Storage | Refinery | Up-Mid-Downstream Sustainability Through Innovation in UAE’s Oil and Gas Industry His Excellency Saif Humaid Al Falasi Group CEO, ENOC Special Features: Hilti: Moving Away From A Price-Driven Battle How McDermott’s Head of Engineering Inspires Young Female Engineers To Lead and Succeed Catch Up On The Latest News: ExxonMobil and Synthetic Genomics Report Breakthrough in Algae Biofuel Research India Asks Qatar To Invest in Power Plants as Condition For LNG Deals Qatar Petroleum Announces New Fuel-Oil Bunkering Solutions in Qatar JULY 2017 ISSUE NO. 004
- Page 4 and 5: Sponsored Article MadTree Brewing C
- Page 7 and 8: CREATING VALUE FOR INDUSTRY 21 Spon
- Page 9 and 10: Behind every powerful industry are
- Page 11 and 12: Over 1,100 Kilometers of Power of S
- Page 13 and 14: the plant species that exist in eac
- Page 15 and 16: w w w . r e c a p e t r o l e u m .
- Page 17 and 18: advantages over traditional biofuel
- Page 19 and 20: Saudi Aramco and Jacobs Create Join
- Page 21 and 22: and elevators based on 3 pillars: S
- Page 24 and 25: ADNOC Opens North Depot Fuelling Fa
- Page 27: Qatar’s Emir Meets Exxon Mobil Co
- Page 30 and 31: • Products - ENOC trades in sever
- Page 32 and 33: At ENOC, our vision is to be an inn
- Page 34: Hedge Funds Hold Near-Record Short
- Page 37: China’s 2017 Crude Oil Quotas Exc
- Page 40 and 41: “Plant 4.0” Start-Up Incubator:
- Page 42 and 43: NIOC Includes 4 More Russian Oil Co
- Page 44: UAE’s ENOC Group and US’s Chevr
- Page 48 and 49: Detailing Office, Production Engine
- Page 50: commissioning for complex Offshore
OIL & GAS LEADERS<br />
Chemical | Drill<strong>in</strong>g | Exploration | F<strong>in</strong>ance | Offshore-Onshore | Petroleum | Storage | Ref<strong>in</strong>ery | Up-Mid-Downstream<br />
<strong>Susta<strong>in</strong>ability</strong><br />
<strong>Through</strong><br />
<strong>Innovation</strong><br />
<strong>in</strong> UAE’s <strong>Oil</strong><br />
<strong>and</strong> <strong>Gas</strong> <strong>Industry</strong><br />
His Excellency<br />
Saif Humaid Al Falasi<br />
Group CEO, ENOC<br />
Special Features:<br />
Hilti: Mov<strong>in</strong>g Away From<br />
A Price-Driven Battle<br />
How McDermott’s Head of<br />
Eng<strong>in</strong>eer<strong>in</strong>g Inspires Young Female<br />
Eng<strong>in</strong>eers To Lead <strong>and</strong> Succeed<br />
Catch Up On The Latest News:<br />
ExxonMobil <strong>and</strong> Synthetic Genomics<br />
Report Breakthrough <strong>in</strong> Algae Biofuel<br />
Research<br />
India Asks Qatar To Invest <strong>in</strong> Power<br />
Plants as Condition For LNG Deals<br />
Qatar Petroleum Announces New<br />
Fuel-<strong>Oil</strong> Bunker<strong>in</strong>g Solutions <strong>in</strong> Qatar<br />
JULY 2017<br />
ISSUE NO. 004
Sponsored Article<br />
MadTree Brew<strong>in</strong>g<br />
Craft brewer to <strong>in</strong>corporate<br />
Veolia’s Sirion Mega technology<br />
to produce high purity water<br />
MAINTAIN<br />
PRODUCT<br />
QUALITY<br />
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C<strong>in</strong>c<strong>in</strong>nati craft brewer MadTree<br />
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The 100 GPM (gallons per m<strong>in</strong>ute) RO unit<br />
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Currently produc<strong>in</strong>g approximately 25,000<br />
barrels of beer a year, the brewery expansion<br />
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annually. Furthermore there is enough<br />
room to support future growth by add<strong>in</strong>g<br />
potential capacity to boost output to<br />
180,000 barrels.<br />
consistent quality <strong>and</strong> taste of the beers. As<br />
such, we didn't want a st<strong>and</strong>ard RO unit.”<br />
Hunt cont<strong>in</strong>ued: “What we found most<br />
appeal<strong>in</strong>g about Veolia's RO technology was<br />
its ability to provide feedback, which will<br />
allow us to f<strong>in</strong>e-tune the <strong>in</strong>com<strong>in</strong>g water as<br />
needed to be able to produce the high quality<br />
of beers our customers expect. Mov<strong>in</strong>g ahead<br />
we are fortunate to be able to call upon<br />
Veolia's <strong>in</strong>dustry experience <strong>and</strong> technological<br />
expertise to help make sure we ma<strong>in</strong>ta<strong>in</strong> the<br />
high quality st<strong>and</strong>ards that have fueled our<br />
growth.”<br />
As part of the largest water company <strong>in</strong> the<br />
world, Veolia Water Technologies enjoys a<br />
comm<strong>and</strong><strong>in</strong>g presence <strong>in</strong> the beer brew<strong>in</strong>g<br />
<strong>in</strong>dustry with more than 150 – <strong>and</strong> grow<strong>in</strong>g<br />
– brewery customers globally. Veolia’s more<br />
than 350 proprietary technologies support<br />
its solutions <strong>and</strong> service value across the<br />
entire spectrum of the brew<strong>in</strong>g process<br />
– from product & process water, to water<br />
recycl<strong>in</strong>g <strong>and</strong> wastewater solutions.<br />
Accord<strong>in</strong>g to co-founder Jeff Hunt,<br />
ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g product quality was the<br />
brewer’s over-rid<strong>in</strong>g objective when it<br />
contemplated exp<strong>and</strong><strong>in</strong>g production to<br />
meet <strong>in</strong>creased customer dem<strong>and</strong>. "S<strong>in</strong>ce<br />
water makes up 95% of beer, water quality<br />
plays an important part <strong>in</strong>fluenc<strong>in</strong>g our beer’s<br />
flavor profile. As we planned for our new,<br />
exp<strong>and</strong>ed production facility it was critical to<br />
us to be able to control the <strong>in</strong>com<strong>in</strong>g water of<br />
our brew<strong>in</strong>g process to <strong>in</strong>sure we ma<strong>in</strong>ta<strong>in</strong>ed<br />
“We’ve seen the explosive growth <strong>in</strong> the craft<br />
brew<strong>in</strong>g sector of the market, particularly <strong>in</strong><br />
the U.S.,” said Ted Lawson, Market<strong>in</strong>g Director<br />
for Veolia Water Technologies, “<strong>and</strong> we<br />
recognize the grow<strong>in</strong>g needs these brewers<br />
have for improv<strong>in</strong>g both process water <strong>and</strong><br />
wastewater treatment. We are committed<br />
to leverag<strong>in</strong>g our technical knowledge <strong>and</strong><br />
experience to add value by help<strong>in</strong>g emerg<strong>in</strong>g<br />
brewers grow <strong>and</strong> succeed.”
Sponsored Article<br />
Paulaner<br />
brewery<br />
Environmentally friendly<br />
wastewater treatment<br />
The Paulaner brewery is one of the bestknown<br />
German breweries, with a long<br />
tradition of the f<strong>in</strong>est Munich art of brew<strong>in</strong>g.<br />
The annual production exceeds 2 million<br />
hectoliters. The popularity of Paulaner beer<br />
has always extended beyond the city limits of<br />
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Paulaner beer is enjoyed <strong>in</strong> more than 70<br />
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The challenge<br />
Due to the <strong>in</strong>creas<strong>in</strong>g popularity<br />
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The new brewery had to be built with an<br />
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The solution<br />
The beer production process generates<br />
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are easily biodegradable. With conventional<br />
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achieved by us<strong>in</strong>g aerobic organisms. These,<br />
however, need to be fed with oxygen, result<strong>in</strong>g<br />
<strong>in</strong> high operat<strong>in</strong>g costs <strong>and</strong> CO 2<br />
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Paulaner selected an environmentally friendly<br />
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To ensure a high level of operational<br />
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wastewater treatment, Paulaner<br />
chose the proven Biobed® system<br />
supplied by Aquantis, a German<br />
subsidiary of the lead<strong>in</strong>g Veolia<br />
Water Technologies group. <br />
Key Figures<br />
• Wastewater volume:<br />
2,800 m³/d<br />
• Load:<br />
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• Biogas production:<br />
385 Nm³/h
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Beh<strong>in</strong>d every powerful <strong>in</strong>dustry are people who make the most<br />
<strong>in</strong>credible th<strong>in</strong>gs happen. In the oil <strong>and</strong> gas sector, different<br />
companies with different sets of leaders, researchers, staff <strong>and</strong><br />
eng<strong>in</strong>eers are f<strong>in</strong>d<strong>in</strong>g the best possible way to progress with<br />
susta<strong>in</strong>ability <strong>in</strong> m<strong>in</strong>d.<br />
In this month’s cover story, learn more about how the Emirates<br />
National <strong>Oil</strong> Company (ENOC) became one of the largest oil <strong>and</strong><br />
gas players <strong>in</strong> the UAE. With a vision to be an <strong>in</strong>novative energy<br />
partner with a foundation on susta<strong>in</strong>ability, ENOC succeeded <strong>in</strong><br />
its ambitious plan to start dom<strong>in</strong>at<strong>in</strong>g <strong>in</strong> the market. Now, <strong>in</strong> this<br />
exclusive <strong>in</strong>terview with ENOC Group’s CEO, His Excellency<br />
Saif Humaid Al Falasi, learn more about the company’s history,<br />
ambitions <strong>and</strong> its current performance as he shares the<br />
company’s operations <strong>in</strong> the Middle East, its recent product<br />
<strong>in</strong>novations, eng<strong>in</strong>eer<strong>in</strong>g <strong>and</strong> technology to meet the dem<strong>and</strong>s<br />
<strong>in</strong> l<strong>in</strong>e with projections for EXPO 2020.<br />
EDITOR’S<br />
NOTE<br />
We are also featur<strong>in</strong>g a special <strong>in</strong>terview with Mam<strong>in</strong>a Radu-<br />
Bogdan, Head of Energy <strong>and</strong> <strong>Industry</strong> META at Hilti Middle<br />
East. He discusses the importance of Energy <strong>and</strong> <strong>Industry</strong> (E&I),<br />
the department’s strategic position<strong>in</strong>g with the <strong>in</strong>tegration of<br />
Champion 2020 as well as their improved bus<strong>in</strong>ess strategy <strong>and</strong><br />
changes with<strong>in</strong> the <strong>in</strong>dustry based on new market trends.<br />
Lastly, read our exclusive story on how McDermott’s Head<br />
of Eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong>spires young female eng<strong>in</strong>eers to lead <strong>and</strong><br />
succeed <strong>in</strong> a male-dom<strong>in</strong>ated <strong>in</strong>dustry. Be<strong>in</strong>g the first female<br />
production eng<strong>in</strong>eer when she entered McDermott, Elviana<br />
Sari (Vivi) did not only encounter challenges at work as an<br />
eng<strong>in</strong>eer, she also had to deal with how be<strong>in</strong>g a woman affects<br />
her relationship with her co-workers. Learn more about Vivi’s<br />
humble beg<strong>in</strong>n<strong>in</strong>gs as a student who aspired to be an eng<strong>in</strong>eer<br />
<strong>and</strong> f<strong>in</strong>d out how be<strong>in</strong>g a female eng<strong>in</strong>eer didn’t stop her from<br />
climb<strong>in</strong>g up the career ladder despite the several pressures <strong>and</strong><br />
problems she encountered along the way. She also shares the<br />
common misconceptions she had to deal with at work <strong>and</strong> her<br />
advice to female eng<strong>in</strong>eer<strong>in</strong>g students who want to pursue a<br />
career <strong>in</strong> the <strong>in</strong>dustry.<br />
So, get excited for this month’s amaz<strong>in</strong>g news <strong>and</strong> stories <strong>in</strong> the<br />
oil <strong>and</strong> gas <strong>in</strong>dustry! Sit back <strong>and</strong> learn someth<strong>in</strong>g new today.<br />
Keep up with the latest trends on the <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> <strong>Industry</strong> with<br />
G<strong>in</strong>eersNow: <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> <strong>Leaders</strong>.<br />
Engr. Alice Hern<strong>and</strong>ez<br />
Senior Editor-at-Large
Contents<br />
Over 1,100 Kilometers of Power of Siberia<br />
<strong>Gas</strong> Pipel<strong>in</strong>e To Be Completed By Late 2017<br />
Japanese Dryl<strong>and</strong> Researchers<br />
Visit Saudi Aramco<br />
Iran Still World’s Largest Natural <strong>Gas</strong> Player 12<br />
ExxonMobil <strong>and</strong> Synthetic Genomics Report<br />
Breakthrough <strong>in</strong> Algae Biofuel Research<br />
Rosneft Discovers Hydrocarbon Deposits<br />
on Eastern Arctic Shelf<br />
Saudi Aramco <strong>and</strong> Jacobs Create Jo<strong>in</strong>t<br />
Venture for Social Infrastructure Program<br />
Management <strong>Through</strong>out Saudi Arabia <strong>and</strong><br />
Across Region<br />
Mov<strong>in</strong>g Away From A Price Driven Battle. 18<br />
ADNOC Opens North Depot Fuell<strong>in</strong>g Facility<br />
at Abu Dhabi International Airport<br />
Qatar’s Emir Meets Exxon Mobil Corp CEO 25<br />
KBR Awarded FEED For Oman LNG 25<br />
9<br />
10<br />
14<br />
16<br />
17<br />
22<br />
<strong>Susta<strong>in</strong>ability</strong> <strong>Through</strong> <strong>Innovation</strong> - How<br />
ENOC Became One of the Largest <strong>Oil</strong> <strong>and</strong><br />
<strong>Gas</strong> Players <strong>in</strong> the UAE<br />
Hedge Funds Hold Near-Record Short<br />
Positions <strong>in</strong> Petroleum<br />
Qatar Petroleum Announces New Fuel-<strong>Oil</strong><br />
Bunker<strong>in</strong>g Solutions <strong>in</strong> Qatar<br />
Ch<strong>in</strong>a’s 2017 Crude <strong>Oil</strong> Quotas Exceed Last<br />
Year’s, Teapots Take A Cut<br />
India Asks Qatar to Invest <strong>in</strong> Power Plants<br />
as Condition for LNG Deals<br />
“Plant 4.0” Start-Up Incubator: a 2nd<br />
Edition on IoT With Five New Partners<br />
NIOC Includes 4 More Russian <strong>Oil</strong><br />
Companies, Azeri Socar Prequalified<br />
for Iran Projects<br />
UAE’s ENOC Group <strong>and</strong> US’s Chevron<br />
Explore Long-Term Strategic<br />
Collaboration <strong>in</strong> <strong>Oil</strong> & <strong>Gas</strong><br />
How McDermott’s Head of Eng<strong>in</strong>eer<strong>in</strong>g<br />
Inspires Young Female Eng<strong>in</strong>eers To Lead<br />
<strong>and</strong> Succeed<br />
26<br />
32<br />
34<br />
35<br />
37<br />
38<br />
40<br />
42<br />
44
Over 1,100 Kilometers of Power of Siberia<br />
<strong>Gas</strong> Pipel<strong>in</strong>e To Be Completed By Late 2017<br />
The Gazprom <strong>in</strong> Eastern Russia, Entry <strong>in</strong>to Asia-<br />
Pacific Markets Press Conference was held <strong>in</strong><br />
Moscow <strong>in</strong> the lead-up to the annual General<br />
Shareholders Meet<strong>in</strong>g. The Press Conference<br />
featured Vitaly Markelov <strong>and</strong> Alex<strong>and</strong>er<br />
Medvedev, Deputy Chairmen of the Management<br />
Committee, Vyacheslav Mikhalenko <strong>and</strong><br />
Sergey Prozorov, Members of the Management<br />
Committee <strong>and</strong> Heads of Departments, Pavel<br />
Oderov, Head of Department, Alex<strong>and</strong>er Kal<strong>in</strong>k<strong>in</strong><br />
<strong>and</strong> Vasily Petlichenko, Deputy Heads of<br />
Departments, <strong>and</strong> Elena Burmistrova, Director<br />
General of Gazprom Export.<br />
It was noted that Gazprom cont<strong>in</strong>ued its active<br />
efforts with<strong>in</strong> the projects under the Eastern <strong>Gas</strong><br />
Program.<br />
Particular attention at the Press Conference<br />
was paid to Russian gas supplies to Ch<strong>in</strong>a via<br />
the eastern route. The construction project for<br />
the Power of Siberia gas trunkl<strong>in</strong>e is ahead of<br />
schedule. By 2017, 445 kilometers of its l<strong>in</strong>ear<br />
part were built. As of early June 2017, some<br />
774 kilometers were ready. Before the end of<br />
the year, it is planned to complete over 1,100<br />
kilometers of the pipel<strong>in</strong>e, which translates <strong>in</strong>to<br />
about a half of Power of Siberia’s priority section<br />
stretch<strong>in</strong>g from the Chay<strong>and</strong><strong>in</strong>skoye field <strong>in</strong><br />
Yakutia to the Russian-Ch<strong>in</strong>ese border.<br />
In accordance with the contract signed between<br />
Gazprom <strong>and</strong> CNPC, gas supplies to Ch<strong>in</strong>a via<br />
the eastern route will start <strong>in</strong> the period from<br />
May 2019 through May 2021. In May 2017, the<br />
parties began to negotiate the exact start<strong>in</strong>g<br />
dates for the said gas deliveries.<br />
Discussions cont<strong>in</strong>ue over gas to be supplied to<br />
Ch<strong>in</strong>a via the western route <strong>and</strong> from Russia’s<br />
Far East.<br />
It was also noted that the Asia-Pacific region<br />
was a traditional LNG market for Gazprom.<br />
Between 2005 <strong>and</strong> 2016, over 75 per cent of the<br />
Group’s LNG was shipped to the region. In 2016,<br />
the Company supplied 2.8 million tons of LNG to<br />
Asia-Pacific.<br />
One of Gazprom’s top priorities is to ramp up<br />
gas sales <strong>in</strong> Asia-Pacific with the help of a third<br />
tra<strong>in</strong> of the LNG plant with<strong>in</strong> the Sakhal<strong>in</strong> II<br />
project. It is planned to build a new production<br />
tra<strong>in</strong> similar to the two exist<strong>in</strong>g tra<strong>in</strong>s, with an<br />
annual capacity of up to 5.4 million tons of LNG.<br />
Design documentation for the construction<br />
project is be<strong>in</strong>g f<strong>in</strong>alized as part of FEED.<br />
The Press Conference also touched upon other<br />
issues related to Gazprom’s eastern projects.<br />
<strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017<br />
9
Japanese Dryl<strong>and</strong> Researchers<br />
Visit Saudi Aramco<br />
As part of Saudi Aramco’s corporate social responsibility (CSR), Aramco Asia-<br />
Japan (AAJ) has partnered with Japan’s Arid L<strong>and</strong> Research Center (ALRC), Tottori<br />
University to support their dryl<strong>and</strong> research efforts.<br />
ALRC is the only <strong>in</strong>stitute <strong>in</strong> Japan specializ<strong>in</strong>g <strong>in</strong> dryl<strong>and</strong>-related research, with<br />
some of their works receiv<strong>in</strong>g recognition globally. <strong>Through</strong> AAJ, the center has<br />
established contact with the Environment Protection Department (EPD) at Saudi<br />
Aramco — a unit that has a long <strong>and</strong> established track record <strong>in</strong> the areas of<br />
effective management of s<strong>and</strong> <strong>and</strong> desert animals <strong>in</strong> the K<strong>in</strong>gdom.<br />
See<strong>in</strong>g is believ<strong>in</strong>g<br />
A three-day program to Saudi Arabia,<br />
organized by EPD, began with the hosts<br />
present<strong>in</strong>g their biodiversity protection <strong>and</strong><br />
enhancement program while Yamanaka<br />
Norikazu, head of ALRC, described his project<br />
on afforestation along the roads <strong>in</strong> Ch<strong>in</strong>a,<br />
a subject of much <strong>in</strong>terest for EPD as the<br />
K<strong>in</strong>gdom is fac<strong>in</strong>g similar challenges.<br />
The EPD team headed by terrestrial ecologist<br />
Chris Bol<strong>and</strong> organized field trips for the<br />
visit<strong>in</strong>g Japanese delegation with the first trip<br />
to the recently <strong>in</strong>augurated Shaybah Wildlife<br />
Sanctuary. Three endangered species —<br />
Arabian oryx, Arabian s<strong>and</strong> gazelles, <strong>and</strong><br />
ostriches — have been re<strong>in</strong>troduced at the<br />
sanctuary to help restore these animals<br />
with<strong>in</strong> the K<strong>in</strong>gdom. “As an oil <strong>and</strong> gas<br />
company, Saudi Aramco’s commitment to the<br />
environment is truly impressive,” Yamanaka<br />
said.<br />
EPD also took the Japanese visitors to<br />
the mounta<strong>in</strong>ous area of Abha to observe<br />
traditional wheat production. Tsujimoto Hisashi<br />
of ALRC, a specialist <strong>in</strong> wheat production,<br />
had opportunities to <strong>in</strong>terview local farmers<br />
<strong>and</strong> exam<strong>in</strong>ed the local species. “I had been<br />
<strong>in</strong>terested <strong>in</strong> how the Middle East orig<strong>in</strong><br />
crops had propagated to East Africa. Our<br />
visit this time to the traditional cereal culture<br />
<strong>in</strong> Abha was out of the cultivation season,<br />
but I managed to f<strong>in</strong>d oats, bread wheat, <strong>and</strong><br />
macaroni wheat — many of which the genetic<br />
types seem <strong>in</strong>digenous,” said Tsujimoto.<br />
“I should be able to collect further <strong>in</strong>formation<br />
by revisit<strong>in</strong>g the area dur<strong>in</strong>g the high season.<br />
I hope to build more knowledge on the<br />
K<strong>in</strong>gdom’s agricultural policy to search for<br />
common ground that would lead us to some<br />
jo<strong>in</strong>t research <strong>in</strong> future.”<br />
For ALRC, <strong>in</strong> spite of numerous studies<br />
overseas us<strong>in</strong>g their well-established network,<br />
Saudi Arabia was one place left unexplored<br />
until now, mak<strong>in</strong>g this visit extremely special.<br />
“See<strong>in</strong>g the red s<strong>and</strong> dunes of Shaybah, the<br />
vegetated valleys of the Asir Mounta<strong>in</strong>s, <strong>and</strong><br />
the salty sabkhas was a dream come true …<br />
10 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
the plant species that exist <strong>in</strong> each location<br />
differed greatly. But there were also some<br />
familiar plants that I had seen before <strong>in</strong> the<br />
deserts of Asia, so I felt the connection between<br />
the K<strong>in</strong>gdom <strong>and</strong> East Asia through our deserts,”<br />
Yamanaka said.<br />
“Combatt<strong>in</strong>g desertification is one of the<br />
greatest challenges fac<strong>in</strong>g people <strong>and</strong><br />
companies <strong>in</strong> arid regions of the world. It is<br />
a global issue <strong>and</strong> requires a global effort to<br />
address it, so it is very valuable to learn from<br />
the experiences of the ALRC, which has been<br />
study<strong>in</strong>g desertification for decades across Asia<br />
<strong>and</strong> Africa,” said Chris Bol<strong>and</strong>.<br />
Shar<strong>in</strong>g knowledge for tomorrow<br />
Both ALRC <strong>and</strong> Saudi Aramco EPD hope to<br />
ma<strong>in</strong>ta<strong>in</strong> this newly fostered relationship. <br />
“I was pleased to hear that Saudi Aramco is<br />
th<strong>in</strong>k<strong>in</strong>g of critical issues such as green<strong>in</strong>g<br />
along roads, <strong>and</strong> that idea is to plant local<br />
plant species, which is the modern global trend<br />
<strong>in</strong> restor<strong>in</strong>g the natural environment,” said<br />
Tsujimoto.<br />
“At ALRC, we have solid experience <strong>in</strong> data<br />
collection us<strong>in</strong>g drones, monitor<strong>in</strong>g the activities<br />
of large animals, <strong>and</strong> us<strong>in</strong>g plants to manage<br />
mov<strong>in</strong>g desert s<strong>and</strong>s. Some of these methods<br />
could be applied on a large-scale at particular<br />
Saudi Aramco projects to assist monitor<strong>in</strong>g <strong>and</strong><br />
management of the ecosystem,” Yamanaka said<br />
after his return to Japan.<br />
“I am delighted <strong>and</strong> thrilled to see this bond<br />
between ALRC <strong>and</strong> AAJ, <strong>in</strong>itiated <strong>in</strong> Japan,<br />
is now tak<strong>in</strong>g some potential shape <strong>and</strong><br />
connect<strong>in</strong>g its scope with the K<strong>in</strong>gdom. I am<br />
look<strong>in</strong>g forward to see<strong>in</strong>g some form of a jo<strong>in</strong>t<br />
research materialized <strong>in</strong> the future by those<br />
professionals from both ends of Asia,” said AAJ<br />
representative director Anwar Hejazi.
Iran Still World’s<br />
Largest Natural<br />
<strong>Gas</strong> Player<br />
A new report shows Iran still has the world’s largest<br />
reserves of natural gas <strong>and</strong> is closely followed by<br />
market rivals Russia <strong>and</strong> then Qatar.<br />
The global energy giant British Petroleum (BP) <strong>in</strong> its<br />
annual report on world energy reserves put Iran’s<br />
natural gas reserves at 33.5 trillion cubic meters<br />
(tcm).<br />
The figure was obta<strong>in</strong>ed as a result of estimates<br />
obta<strong>in</strong>ed at the end of 2016 <strong>and</strong> BP said <strong>in</strong> its report<br />
– named “Statistical Review of World Energy 2017”<br />
– that Iran’s reserves had rema<strong>in</strong>ed unchanged from<br />
last year.<br />
BP further put the reserves of Russia – Iran’s closest<br />
rival <strong>in</strong> terms of gas reserves - at 32.3 tcm.<br />
The world’s third largest reserves at 24.3 tcm belong<br />
to Qatar with which Iran’s shares its huge South Pars<br />
gas field.<br />
Iran’s gas reserves account for 18 percent of world’s<br />
total. The reserves of Russia <strong>and</strong> Qatar account<br />
for 17.3 percent <strong>and</strong> 13 percent of the global total,<br />
respectively.<br />
In terms of production, the United States ma<strong>in</strong>ta<strong>in</strong>ed<br />
its market supremacy <strong>in</strong> 2016 by produc<strong>in</strong>g around<br />
750 billion cubic meters (bcm) of gas.<br />
Russia came next with about 580 bcm <strong>and</strong> was<br />
followed by Iran at 202.4 bcm.<br />
The next biggest producers were Qatar (181.2 bcm),<br />
Canada (152 bcm), Ch<strong>in</strong>a (139 bcm), Norway (116<br />
bcm) <strong>and</strong> Saudi Arabia (109 bcm).<br />
Accord<strong>in</strong>g to the BP report, Iran also has the world’s<br />
fourth largest reserves of crude oil at 158.4 billion<br />
barrels (bbl).<br />
At the top of the list st<strong>and</strong>s Venezuela with 300 bbl<br />
<strong>and</strong> is followed by Saudi Arabia (266.5 bbl) <strong>and</strong><br />
Canada (171.5 bbl).<br />
Iran is followed by Iraq (153 bbl), Russia (109 bbl),<br />
<strong>and</strong> Kuwait (101.5 bbl) <strong>in</strong> the league of countries<br />
with triple digit oil reserves.<br />
12 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
w w w . r e c a p e t r o l e u m . c o m
ExxonMobil <strong>and</strong> Synthetic<br />
Genomics Report Breakthrough<br />
<strong>in</strong> Algae Biofuel Research<br />
ExxonMobil <strong>and</strong> Synthetic Genomics Inc. today<br />
announced a breakthrough <strong>in</strong> jo<strong>in</strong>t research <strong>in</strong>to<br />
advanced biofuels <strong>in</strong>volv<strong>in</strong>g the modification of an<br />
algae stra<strong>in</strong> that more than doubled its oil content<br />
without significantly <strong>in</strong>hibit<strong>in</strong>g the stra<strong>in</strong>’s growth.<br />
Us<strong>in</strong>g advanced cell eng<strong>in</strong>eer<strong>in</strong>g technologies at<br />
Synthetic Genomics, the ExxonMobil-Synthetic<br />
Genomics research team modified an algae<br />
stra<strong>in</strong> to enhance the algae’s oil content from<br />
20 percent to more than 40 percent. Results<br />
of the research were published today <strong>in</strong> the<br />
peer-reviewed journal Nature Biotechnology by<br />
lead authors Imad Ajjawi <strong>and</strong> Eric Moeller<strong>in</strong>g of<br />
Synthetic Genomics.<br />
Researchers at Synthetic Genomics’ laboratory<br />
<strong>in</strong> La Jolla discovered a new process for<br />
<strong>in</strong>creas<strong>in</strong>g oil production by identify<strong>in</strong>g a genetic<br />
switch that could be f<strong>in</strong>e-tuned to regulate the<br />
conversion of carbon to oil <strong>in</strong> the algae species,<br />
Nannochloropsis gaditana. The team established<br />
a proof-of-concept approach that resulted <strong>in</strong> the<br />
algae doubl<strong>in</strong>g its lipid fraction of cellular carbon<br />
compared to the parent – while susta<strong>in</strong><strong>in</strong>g growth.<br />
“This key milestone <strong>in</strong> our advanced biofuels<br />
program confirms our belief that algae can be<br />
<strong>in</strong>credibly productive as a renewable energy<br />
source with a correspond<strong>in</strong>g positive contribution<br />
to our environment,” said Vijay Swarup, vice<br />
president for research <strong>and</strong> development at<br />
ExxonMobil Research <strong>and</strong> Eng<strong>in</strong>eer<strong>in</strong>g Company.<br />
“Our work with Synthetic Genomics cont<strong>in</strong>ues to<br />
be an important part of our broader research <strong>in</strong>to<br />
lower-emission technologies to reduce the risk of<br />
climate change.”<br />
“The major <strong>in</strong>puts for phototropic algae<br />
production are sunlight <strong>and</strong> carbon dioxide, two<br />
resources that are abundant, susta<strong>in</strong>able <strong>and</strong><br />
free,” said Oliver Fetzer, Ph.D., chief executive<br />
officer at Synthetic Genomics. “Discoveries<br />
made through our partnership with ExxonMobil<br />
demonstrate how advanced cell eng<strong>in</strong>eer<strong>in</strong>g<br />
capabilities at Synthetic Genomics can unlock<br />
biology to optimize how we use these resources<br />
<strong>and</strong> create solutions for many of today’s<br />
susta<strong>in</strong>ability challenges – from renewable energy<br />
to nutrition <strong>and</strong> human health.”<br />
Algae has been regarded as a potential<br />
susta<strong>in</strong>able fuel option, but researchers have<br />
been h<strong>in</strong>dered for the past decade <strong>in</strong> develop<strong>in</strong>g<br />
a stra<strong>in</strong> that is high <strong>in</strong> oil content <strong>and</strong> grows<br />
quickly – two critical characteristics for scalable<br />
<strong>and</strong> cost-efficient oil production. Slower growth<br />
has been an adverse effect of previous attempts<br />
to <strong>in</strong>crease algae oil production volume.<br />
A key objective of the ExxonMobil-Synthetic<br />
Genomics collaboration has been to <strong>in</strong>crease the<br />
lipid content of algae while decreas<strong>in</strong>g the starch<br />
<strong>and</strong> prote<strong>in</strong> components without <strong>in</strong>hibit<strong>in</strong>g the<br />
algae’s growth. Limit<strong>in</strong>g availability of nutrients<br />
such as nitrogen is one way to <strong>in</strong>crease oil<br />
production <strong>in</strong> algae, but it can also dramatically<br />
<strong>in</strong>hibit or even stop photosynthesis, stunt<strong>in</strong>g<br />
algae growth <strong>and</strong> ultimately the volume of oil<br />
produced.<br />
The ability to susta<strong>in</strong> growth while <strong>in</strong>creas<strong>in</strong>g oil<br />
content is an important advance. Algae has other<br />
14 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
advantages over traditional biofuels because<br />
it can grow <strong>in</strong> salt water <strong>and</strong> thrive <strong>in</strong> harsh<br />
environmental conditions, therefore limit<strong>in</strong>g stress<br />
on food <strong>and</strong> fresh water supplies.<br />
<strong>Oil</strong> from algae can also potentially be processed<br />
<strong>in</strong> conventional ref<strong>in</strong>eries, produc<strong>in</strong>g fuels no<br />
different from convenient, energy-dense diesel.<br />
<strong>Oil</strong> produced from algae also holds promise as a<br />
potential feedstock for chemical manufactur<strong>in</strong>g.<br />
“The SGI-ExxonMobil science teams have made<br />
significant advances over the last several years <strong>in</strong><br />
efforts to optimize lipid production <strong>in</strong> algae. This<br />
important publication today is evidence of this<br />
work, <strong>and</strong> we rema<strong>in</strong> conv<strong>in</strong>ced that synthetic<br />
biology holds crucial answers to unlock<strong>in</strong>g the<br />
potential of algae as a renewable energy source,”<br />
said J. Craig Venter, Ph.D., Synthetic Genomics<br />
co-founder <strong>and</strong> chairman. “We look forward<br />
to cont<strong>in</strong>ued work with ExxonMobil so that<br />
eventually we will <strong>in</strong>deed have a viable alternative<br />
energy source.”<br />
S<strong>in</strong>ce 2009, ExxonMobil <strong>and</strong> Synthetic Genomics<br />
have been partners <strong>in</strong> research<strong>in</strong>g <strong>and</strong> develop<strong>in</strong>g<br />
oil from algae to be used as a renewable, loweremission<br />
alternative to traditional transportation<br />
fuels. Swarup said that while the breakthrough<br />
is an important step, the technology is still many<br />
years from potentially reach<strong>in</strong>g the commercial<br />
market.<br />
“Advancements as potentially important as this<br />
require significant time <strong>and</strong> effort, as is the case<br />
with any research <strong>and</strong> development project,”<br />
Swarup said. “Each phase of our algae research,<br />
or any other similar project <strong>in</strong> the area of<br />
advanced biofuels, requires test<strong>in</strong>g <strong>and</strong> analysis<br />
to confirm that we’re proceed<strong>in</strong>g down a path<br />
toward scale <strong>and</strong> commercial viability.”<br />
ExxonMobil is engaged <strong>in</strong> a wide range of<br />
research on advanced biofuels, partner<strong>in</strong>g with<br />
universities, government laboratories, <strong>and</strong> other<br />
companies. Global dem<strong>and</strong> for transportationrelated<br />
energy is projected to <strong>in</strong>crease by about<br />
25 percent through 2040, <strong>and</strong> accelerat<strong>in</strong>g the<br />
reduction <strong>in</strong> emissions from the transportation<br />
sector will play a critical role <strong>in</strong> reduc<strong>in</strong>g global<br />
greenhouse gas emissions.<br />
ExxonMobil is also actively research<strong>in</strong>g other<br />
emission-reduc<strong>in</strong>g technologies, <strong>in</strong>clud<strong>in</strong>g carbon<br />
capture <strong>and</strong> sequestration. In 2016, ExxonMobil<br />
announced its partnership with Connecticutbased<br />
FuelCell Energy, Inc. to advance the use<br />
of carbonate fuel cells to economically capture<br />
carbon emissions from power plants while<br />
generat<strong>in</strong>g hydrogen <strong>and</strong> additional electricity.<br />
S<strong>in</strong>ce 2000, ExxonMobil has spent about $8<br />
billion to develop <strong>and</strong> deploy lower-emission<br />
energy solutions across its operations.
Rosneft Discovers Hydrocarbon<br />
Deposits on Eastern Arctic Shelf<br />
Rosneft is perform<strong>in</strong>g the drill<strong>in</strong>g of the<br />
northernmost exploratory well on the Eastern<br />
Arctic shelf follow<strong>in</strong>g a comprehensive geological<br />
study. Dur<strong>in</strong>g the drill<strong>in</strong>g of the Tsentralno-<br />
Olg<strong>in</strong>skaya-1 well from the shore of the Khara-<br />
Tumus Pen<strong>in</strong>sula on the shelf of the Khatanga<br />
Bay of the Laptev Sea, three core samples were<br />
taken from depths of 2305 to 2363 m, which<br />
showed high oil saturation dom<strong>in</strong>ated with light<br />
oily fractions. On the basis of primary studies<br />
already, it can be concluded that a new oil field<br />
has been discovered, the volume of the resource<br />
potential of which is <strong>in</strong>creas<strong>in</strong>g as the drill<strong>in</strong>g<br />
cont<strong>in</strong>ues. Core sampl<strong>in</strong>g cont<strong>in</strong>ues at the<br />
moment.<br />
Hydrocarbon saturation of the core samples<br />
proves the geological model developed by<br />
Rosneft experts. The obta<strong>in</strong>ed result of the drill<strong>in</strong>g<br />
at the Khatanga licenced area allows Rosneft to<br />
be considered a pioneer of deposit discoveries on<br />
the Eastern Arctic shelf.<br />
Russian president Vladimir Put<strong>in</strong>’s comm<strong>and</strong><br />
Rosneft embarked on drill<strong>in</strong>g of the Tsentralno-<br />
Olg<strong>in</strong>skaya-1 well. The significance of Rosneft<br />
project was emphasised by the Russian president<br />
dur<strong>in</strong>g a video conference on the drill<strong>in</strong>g start.<br />
“In fact, work on the whole petroleum prov<strong>in</strong>ce<br />
has been started, which, even accord<strong>in</strong>g to<br />
prelim<strong>in</strong>ary data, conta<strong>in</strong>s millions of tons of<br />
oil equivalent. Horizontal drill<strong>in</strong>g is a complex<br />
<strong>and</strong> high-tech operation. This is just the first<br />
well. There is much more work ahead. I would<br />
like to wish you good luck <strong>and</strong> I hope for this<br />
undertak<strong>in</strong>g’s success” - the President of Russia<br />
said.<br />
In April Rosneft Head reported to Vladimir<br />
Put<strong>in</strong> that the preparation for drill<strong>in</strong>g had been<br />
completed <strong>in</strong> record-break<strong>in</strong>g time. “With your<br />
support, we ga<strong>in</strong>ed the right to work on the<br />
Khatanga block just over a year ago.”<br />
The Company was awarded the licence for<br />
Khatanga development <strong>in</strong> November 2015.<br />
Gather<strong>in</strong>g <strong>and</strong> set-up of drill<strong>in</strong>g equipment were<br />
carried out <strong>in</strong> the shortest time possible ow<strong>in</strong>g<br />
to harsh weather conditions. On April 3, at the
Saudi Aramco <strong>and</strong> Jacobs Create Jo<strong>in</strong>t<br />
Venture for Social Infrastructure Program<br />
Management <strong>Through</strong>out Saudi Arabia <strong>and</strong><br />
Across Region<br />
Saudi Aramco entered <strong>in</strong>to an agreement with<br />
Jacobs (NYSE:JEC) to form a Saudi Arabiabased<br />
jo<strong>in</strong>t venture company to provide<br />
professional program <strong>and</strong> construction<br />
management (PMCM) services for social<br />
<strong>in</strong>frastructure projects throughout the K<strong>in</strong>gdom<br />
<strong>and</strong> across the Middle East <strong>and</strong> North Africa.<br />
Jacobs’ presence <strong>in</strong> Saudi Arabia spans more<br />
than 40 years.<br />
“Our jo<strong>in</strong>t venture exemplifies the power of<br />
br<strong>in</strong>g<strong>in</strong>g together Saudi Aramco <strong>and</strong> Jacobs<br />
as an effective economic catalyst to support<br />
the K<strong>in</strong>gdom’s Vision 2030. The new company<br />
comb<strong>in</strong>es Jacobs’ <strong>in</strong>dustry-lead<strong>in</strong>g capabilities<br />
<strong>and</strong> our jo<strong>in</strong>t project delivery skills to help<br />
transform social <strong>in</strong>frastructure <strong>in</strong> this rapidly<br />
chang<strong>in</strong>g region.”<br />
Jacobs Chairman <strong>and</strong> CEO Steve Demetriou<br />
said, “Our jo<strong>in</strong>t venture exemplifies the power<br />
of br<strong>in</strong>g<strong>in</strong>g together Saudi Aramco <strong>and</strong> Jacobs<br />
as an effective economic catalyst to support<br />
the K<strong>in</strong>gdom’s Vision 2030. The new company<br />
comb<strong>in</strong>es Jacobs’ <strong>in</strong>dustry-lead<strong>in</strong>g capabilities<br />
<strong>and</strong> our jo<strong>in</strong>t project delivery skills to help<br />
transform social <strong>in</strong>frastructure <strong>in</strong> this rapidly<br />
chang<strong>in</strong>g region.”<br />
The new company’s services will <strong>in</strong>clude a<br />
full-spectrum of professional PMCM activities,<br />
with expertise <strong>in</strong> support<strong>in</strong>g all phases of<br />
the project lifecycle for social <strong>in</strong>frastructure<br />
projects. The company will advance tra<strong>in</strong><strong>in</strong>g<br />
<strong>and</strong> help create quality jobs for Saudi nationals<br />
through the development of a susta<strong>in</strong>able <strong>and</strong><br />
competitive program.
MOVING AWAY FROM A PRICE<br />
DRIVEN BATTLE<br />
Hilti is a global leader <strong>in</strong> provid<strong>in</strong>g cutt<strong>in</strong>g-edge<br />
products, systems <strong>and</strong> services to professionals <strong>in</strong><br />
the construction <strong>and</strong> energy sectors. From design<br />
to demolition, Hilti supports customers with expert<br />
technical advice, reliable products, prompt delivery<br />
<strong>and</strong> outst<strong>and</strong><strong>in</strong>g service. The product range<br />
covers drill<strong>in</strong>g <strong>and</strong> demolition, direct fasten<strong>in</strong>g,<br />
diamond <strong>and</strong> anchor<strong>in</strong>g systems, firestop <strong>and</strong><br />
foam systems, <strong>in</strong>stallation, measur<strong>in</strong>g <strong>and</strong> screw<br />
fasten<strong>in</strong>g systems, as well as cutt<strong>in</strong>g <strong>and</strong> s<strong>and</strong><strong>in</strong>g<br />
systems. As a result of this, Hilti’s portfolio helps<br />
construction professionals through every step of<br />
the construction journey. A direct-sell<strong>in</strong>g company,<br />
Hilti generates over 200,000 customer <strong>in</strong>teractions<br />
per day, provid<strong>in</strong>g it with superior <strong>in</strong>sight <strong>in</strong>to<br />
company <strong>and</strong> market dem<strong>and</strong>s. Hilti Emirates LLC<br />
<strong>and</strong> Hilti Middle East FZE have been operat<strong>in</strong>g<br />
<strong>in</strong> the UAE s<strong>in</strong>ce 1991. Today, Hilti Emirates has<br />
more than 200 employees, its own warehous<strong>in</strong>g<br />
facility <strong>and</strong> a state-of-the-art repair center.<br />
Thomas Stumpp is Head of Market Region Middle<br />
East Turkey & Africa; while Mutaz Almaani is Head<br />
of Sub Region Gulf.<br />
For more <strong>in</strong>formation, please call Hilti Emirates at<br />
800-Hilti (44584) or visit www.hilti.ae.<br />
Hilti Middle East’s Energy <strong>and</strong> <strong>Industry</strong><br />
department shifts from project focused scope<br />
to becom<strong>in</strong>g a relevant <strong>in</strong>tegrated bus<strong>in</strong>ess<br />
partner.<br />
18 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
<strong>and</strong> elevators based on 3 pillars: Segment<br />
Management, Account Development <strong>and</strong><br />
Professional Project Management. This setup<br />
allowed the department to underst<strong>and</strong>, build<br />
<strong>and</strong> communicate specific value propositions.<br />
The Segment Managers are responsible for<br />
strategic steer<strong>in</strong>g, product development to close<br />
application gaps <strong>and</strong> build<strong>in</strong>g a strong value<br />
proposition. META Bus<strong>in</strong>ess Developers <strong>in</strong> E&I<br />
are represent<strong>in</strong>g the <strong>in</strong>terface for global accounts<br />
at local levels. They are lias<strong>in</strong>g with accounts they<br />
h<strong>and</strong>le (through their needs, visions <strong>and</strong> strategy),<br />
<strong>and</strong> cooperat<strong>in</strong>g with the local Hilti project support.<br />
What does your bus<strong>in</strong>ess model focus on?<br />
A professional approach to key stakeholders,<br />
<strong>in</strong>clud<strong>in</strong>g owners <strong>and</strong> customers through a tailormade<br />
value proposition <strong>in</strong> perfect synergy <strong>and</strong><br />
approach towards headquarter offices <strong>and</strong> project<br />
sites.<br />
Mam<strong>in</strong>a Radu-Bogdan<br />
Head of Energy <strong>and</strong> <strong>Industry</strong><br />
META at Hilti Middle East<br />
Mam<strong>in</strong>a Radu-Bogdan, Head of Energy <strong>and</strong><br />
<strong>Industry</strong> META at Hilti Middle East; discusses<br />
the importance of Energy <strong>and</strong> <strong>Industry</strong> (E&I),<br />
the department’s strategic position<strong>in</strong>g with the<br />
<strong>in</strong>tegration of Champion 2020 (aims to achieve<br />
susta<strong>in</strong>able value creation through leadership<br />
<strong>and</strong> differentiation. Market leadership through<br />
added value for our customers offers products,<br />
services <strong>and</strong> software that provide superior<br />
productivity <strong>and</strong> safety to our customers <strong>and</strong><br />
differentiate from the offer<strong>in</strong>g of our competitors),<br />
as well as their improved bus<strong>in</strong>ess strategy<br />
<strong>and</strong> changes with<strong>in</strong> the <strong>in</strong>dustry based on new<br />
market trends.<br />
When was the META department established?<br />
What was the department’s focus?<br />
The E&I META department was established<br />
<strong>in</strong> January 2016 - an energy <strong>and</strong> <strong>in</strong>dustry<br />
regional structure with focus on power, oil<br />
<strong>and</strong> gas, decommission<strong>in</strong>g, <strong>in</strong>dustry, facade,<br />
Few years ago, the E&I segment was strongly<br />
dom<strong>in</strong>ated by mega projects with extensive<br />
budgets; where the cost of build<strong>in</strong>g was less<br />
important given the potential output of the facility<br />
where each oil barrel was 100 US Dollars.<br />
When did you feel there was a need for change<br />
<strong>in</strong> your strategy?<br />
Hilti’s <strong>in</strong>novation was a great fit <strong>in</strong> this k<strong>in</strong>d of<br />
environment <strong>and</strong> Hilti X-BT Grat<strong>in</strong>g Fasten<strong>in</strong>g<br />
solution soon became a st<strong>and</strong>ard of build<strong>in</strong>g for<br />
many important players. While Hilti was widely<br />
recognized as the problem solver especially <strong>in</strong><br />
grat<strong>in</strong>g applications <strong>in</strong> offshore environment, we<br />
understood that we were heavily depend<strong>in</strong>g on<br />
our “one trick pony show”, thus be<strong>in</strong>g vulnerable.<br />
We needed to make the change towards a more<br />
susta<strong>in</strong>able model.<br />
How did you adjust your approach to fit the<br />
economical change that heavily affected the<br />
E&I sector?<br />
The 100 US Dollars price per oil barrel will not<br />
come back aga<strong>in</strong>. Instead, adjust<strong>in</strong>g ourselves to<br />
fit these economical changes is critical - a modest<br />
approach is visible already today <strong>in</strong> the energy<br />
sector amongst developers <strong>and</strong> <strong>in</strong>vestors. We
should engage stronger with key players <strong>and</strong><br />
<strong>in</strong>crease our relevance. We have to move away<br />
from a price-driven battle <strong>and</strong> <strong>in</strong>stead leverage<br />
a service driven value proposition built around<br />
eng<strong>in</strong>eer<strong>in</strong>g.<br />
With <strong>in</strong>evitable competition, how does E&I<br />
st<strong>and</strong>out?<br />
It is our duty to learn from what the market is<br />
tell<strong>in</strong>g us <strong>and</strong> adapt our model to w<strong>in</strong>. We need<br />
to see the change, move with it <strong>and</strong> f<strong>in</strong>ish the<br />
learn<strong>in</strong>g curve, even if that means re<strong>in</strong>vent<strong>in</strong>g<br />
ourselves aga<strong>in</strong>st what made us successful till<br />
now.<br />
In order to outplay competition, E&I thought<br />
of ISB (Integrated System Bus<strong>in</strong>ess) - build a<br />
customized value proposition on eng<strong>in</strong>eer<strong>in</strong>g,<br />
logistic services, special product solutions, site<br />
support <strong>and</strong> price agreements to go h<strong>and</strong> <strong>in</strong> h<strong>and</strong><br />
with the customer’s specific requirements. Part of<br />
the execution is also the Total Solution Warehouse<br />
where the E&I META team is able to provide<br />
logistic related services such as cut to length,<br />
kitt<strong>in</strong>g, pack<strong>in</strong>g, shipp<strong>in</strong>g <strong>and</strong> full size mock ups for<br />
required approvals.<br />
Today, ISB (Integrated System Bus<strong>in</strong>ess) is a<br />
unique step change. A great advantage <strong>in</strong> the way<br />
Hilti does bus<strong>in</strong>ess globally <strong>and</strong> provides access to<br />
all levels of stakeholders <strong>in</strong> owners structures <strong>and</strong><br />
high level decision makers <strong>in</strong> our focus accounts.<br />
How do would you react to change <strong>in</strong><br />
develop<strong>in</strong>g the company’s value proposition?<br />
20 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
ADNOC Opens North Depot Fuell<strong>in</strong>g<br />
Facility at Abu Dhabi International Airport<br />
Abu Dhabi National <strong>Oil</strong> Company (ADNOC), with<br />
its subsidiary company ADNOC Distribution,<br />
hosted an official open<strong>in</strong>g ceremony for its new<br />
state of the art ‘North Depot’ aviation fuel facility<br />
at Abu Dhabi International Airport.<br />
The ceremony was overseen by Abdulla Salem Al<br />
Dhaheri, Director of Market<strong>in</strong>g, Sales <strong>and</strong> Trad<strong>in</strong>g<br />
for ADNOC, <strong>and</strong> Saeed Mubarak Al Rashdi, Act<strong>in</strong>g<br />
Chief Executive Officer of ADNOC Distribution.<br />
It was attended by senior ADNOC <strong>and</strong> ADNOC<br />
Distribution executives <strong>and</strong> key stakeholders,<br />
<strong>in</strong>clud<strong>in</strong>g Abdul Majeed Al Khoori, Act<strong>in</strong>g Chief<br />
Executive Officer of Abu Dhabi Airport.<br />
Abdulla Salem Al Dhaheri, Director of Market<strong>in</strong>g,<br />
Sales <strong>and</strong> Trad<strong>in</strong>g for ADNOC, said: “The open<strong>in</strong>g<br />
of the North Depot at Abu Dhabi International<br />
Airport’s new Midfield Term<strong>in</strong>al represents the<br />
latest stage <strong>in</strong> our growth <strong>and</strong> expansion strategy<br />
to meet the needs of aviation customers. <strong>Through</strong><br />
ADNOC Group, we now refuel as many as 34<br />
aircraft per hour at 26 fuel depots across the UAE.<br />
More than 200 customers <strong>in</strong> the civil <strong>and</strong> military<br />
sectors rely on our high st<strong>and</strong>ard products <strong>and</strong><br />
services, distributed through state-of-the-art<br />
fuell<strong>in</strong>g facilities, <strong>and</strong> with health, safety, <strong>and</strong> the<br />
environment (HSE) at the core of all operations.”<br />
Some Dh750 million (over $200 million USD) was<br />
<strong>in</strong>vested <strong>in</strong> the fuel depot at the new Midfield<br />
term<strong>in</strong>al to meet an anticipated significant<br />
<strong>in</strong>crease <strong>in</strong> dem<strong>and</strong> for aviation fuel from Etihad<br />
Airways <strong>and</strong> its associated airl<strong>in</strong>es. With a fuel<br />
storage capacity of 96 million litres - comparable<br />
to the amount of water needed to fill 38 Olympic<br />
22 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
size swimm<strong>in</strong>g pools - the North Depot will<br />
be the airport’s exclusive provider of Jet A1, a<br />
fuel manufactured to meet the most str<strong>in</strong>gent<br />
st<strong>and</strong>ards <strong>and</strong> specifications as recognised by<br />
its <strong>in</strong>ternational validation.<br />
“ADNOC’s sophisticated systems <strong>and</strong><br />
operational processes are <strong>in</strong>ternationally<br />
recognised as deliver<strong>in</strong>g <strong>in</strong>creased reliability,<br />
elim<strong>in</strong>ation of delays, lower rates of accidents<br />
<strong>and</strong> <strong>in</strong>cidents, <strong>and</strong> reduced overall costs. Our<br />
equipment <strong>and</strong> facilities compete with the very<br />
best available among the world’s aviation fuel<br />
providers”, added Al Dhaheri.<br />
Abdul Majeed Al Khoori, Abu Dhabi Airports<br />
Act<strong>in</strong>g Chief Executive Officer, commented<br />
“We are delighted that ADNOC has opened this<br />
new facility, which is another milestone towards<br />
the completion of the iconic Midfield Term<strong>in</strong>al<br />
Complex. Work<strong>in</strong>g <strong>in</strong> close cooperation with key<br />
stakeholders, such as ADNOC, will enable us<br />
to deliver one of the best airport term<strong>in</strong>als ever<br />
seen, mov<strong>in</strong>g Abu Dhabi Airports closer towards<br />
its vision of be<strong>in</strong>g the world’s lead<strong>in</strong>g airports<br />
group.”<br />
The North Depot will provide up to 6.5 million<br />
litres of fuel per hour through a battery of 24<br />
pumps controlled by a Basic Process Control<br />
System with sophisticated gaug<strong>in</strong>g mechanisms<br />
to monitor the level of fuel <strong>in</strong> the depot’s tanks:<br />
the facility will be capable of fuell<strong>in</strong>g more<br />
than 100 aircraft simultaneously as a result. To<br />
ensure the highest safety levels, the depot is<br />
equipped with advanced fire detection <strong>and</strong> fire<br />
suppression/firefight<strong>in</strong>g systems. Cont<strong>in</strong>uity of<br />
service is ensured by a full generator backup<br />
facility to power the depot <strong>and</strong> its pumps <strong>in</strong> the<br />
event of a cut <strong>in</strong> electric power from the public<br />
grid.<br />
A key element <strong>in</strong> the realisation of Abu Dhabi<br />
Vision 2030, Abu Dhabi International Airport’s<br />
new Midfield Term<strong>in</strong>al, which will be served by<br />
the North Depot, has the capacity to h<strong>and</strong>le<br />
more than 30 million passengers annually after it<br />
becomes fully operational.<br />
<strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017<br />
23
Qatar’s Emir Meets Exxon Mobil Corp CEO<br />
The emir of Qatar met with Exxon Mobil Corp chairman<br />
<strong>and</strong> CEO Darren Woods <strong>in</strong> Doha on Saturday for talks<br />
on “cooperation,” state news agency QNA reported,<br />
follow<strong>in</strong>g a rift between four Gulf states <strong>and</strong> Qatar that<br />
has raised worries about energy supplies.<br />
Saudi Arabia, the United Arab Emirates, Bahra<strong>in</strong> <strong>and</strong><br />
Egypt on Monday cut ties with Qatar, accus<strong>in</strong>g the<br />
country of support<strong>in</strong>g extremism. Qatar denies the<br />
allegations.<br />
QNA said the Emir, Sheikh Tamim b<strong>in</strong> Hamad al-<br />
Thani, met with Woods <strong>and</strong> ExxonMobil Qatar General<br />
Manager Alistair Routledge at the Al-Bahar Palace.<br />
“Dur<strong>in</strong>g the meet<strong>in</strong>g, they discussed bilateral cooperation relations <strong>and</strong> means to develop them <strong>in</strong><br />
addition to the latest developments <strong>in</strong> the energy sector,” the agency said.<br />
Qatar <strong>and</strong> Exxon have had development agreements for more than a decade, with Exxon help<strong>in</strong>g<br />
Qatar to become the world’s largest LNG exporter. Exxon, work<strong>in</strong>g with government-controlled<br />
energy company Qatar Petroleum , has <strong>in</strong>vested <strong>in</strong> LNG-process<strong>in</strong>g plants, transport ships <strong>and</strong><br />
related <strong>in</strong>frastructure.<br />
Exxon said earlier this month that production <strong>and</strong> exports of liquefied natural gas from Qatar have<br />
not been affected by the row.<br />
The grow<strong>in</strong>g diplomatic dispute has raised concerns about global access to Qatar’s LNG,<br />
especially after some regional ports <strong>in</strong> the Gulf said they would not accept Qatari-flagged vessels.<br />
KBR Awarded FEED For Oman LNG<br />
KBR, Inc. (NYSE: KBR) announced that it has<br />
been awarded a Front-End Eng<strong>in</strong>eer<strong>in</strong>g Design<br />
(FEED) <strong>and</strong> project management services contract<br />
for Oman Liquefied Natural <strong>Gas</strong> LLC (Oman LNG)<br />
<strong>in</strong> Qalhat, Oman. Oman LNG operates three<br />
liquefaction tra<strong>in</strong>s with a total nameplate capacity<br />
of 10.4 million tonnes per annum (mtpa).<br />
KBR is a recognized leader <strong>in</strong> LNG with over<br />
40 years of cont<strong>in</strong>uous experience <strong>and</strong> depth<br />
of capability, know-how <strong>and</strong> eng<strong>in</strong>eer<strong>in</strong>g talent<br />
that is unmatched <strong>in</strong> the <strong>in</strong>dustry. This project<br />
represents KBR’s reentry <strong>in</strong>to the Oman market<br />
<strong>and</strong> supports our strategic focus on gas<br />
monetization <strong>in</strong> the Middle East region.<br />
“This contract confirms KBR’s strong reputation<br />
as one of the world’s preem<strong>in</strong>ent leaders <strong>in</strong><br />
LNG facilities <strong>and</strong> demonstrates the trust that<br />
Oman LNG has placed <strong>in</strong> KBR follow<strong>in</strong>g the<br />
successful development of the orig<strong>in</strong>al Front-End<br />
Eng<strong>in</strong>eer<strong>in</strong>g Design (FEED) of this world-class<br />
LNG facility,” said Jay Ibrahim, KBR President:<br />
Europe, Middle East & Africa. “We are committed<br />
to exp<strong>and</strong><strong>in</strong>g our footpr<strong>in</strong>t <strong>in</strong> the Middle East <strong>and</strong><br />
are delighted at this opportunity to reestablish<br />
KBR <strong>in</strong> Oman <strong>and</strong> contribute to Oman’s In-<br />
Country Value (ICV) <strong>in</strong>itiatives.”<br />
Revenue associated with this contract was<br />
undisclosed <strong>and</strong> will be booked <strong>in</strong>to backlog<br />
of unfilled orders for KBR’s Eng<strong>in</strong>eer<strong>in</strong>g &<br />
Construction bus<strong>in</strong>ess segment <strong>in</strong> the second<br />
quarter of 2017.<br />
<strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017<br />
25
<strong>Susta<strong>in</strong>ability</strong> <strong>Through</strong> <strong>Innovation</strong>:<br />
How ENOC Became One<br />
of the Largest <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong><br />
Players <strong>in</strong> the UAE<br />
With a vision to be an <strong>in</strong>novative energy<br />
partner with a foundation on susta<strong>in</strong>ability,<br />
the Emirates National <strong>Oil</strong> Company (ENOC<br />
Group) succeeded <strong>in</strong> its ambitious plan to<br />
start dom<strong>in</strong>at<strong>in</strong>g <strong>in</strong> the oil <strong>and</strong> gas <strong>in</strong>dustry<br />
<strong>and</strong> play an <strong>in</strong>tegral role <strong>in</strong> empower<strong>in</strong>g the<br />
UAE’s social <strong>and</strong> economic development.<br />
Now, ENOC is work<strong>in</strong>g on achiev<strong>in</strong>g<br />
its aggressive growth plan to meet the<br />
dem<strong>and</strong>s <strong>in</strong> l<strong>in</strong>e with projections for<br />
EXPO 2020 <strong>and</strong> become the leader <strong>in</strong> the<br />
domestic market.<br />
In this exclusive <strong>in</strong>terview with ENOC<br />
Group’s CEO, His Excellency Saif<br />
Humaid Al Falasi, learn more about<br />
the company’s history, ambitions <strong>and</strong><br />
its current performance as he shares<br />
ENOC’s operations <strong>in</strong> the Middle East, its<br />
recent product <strong>in</strong>novations, eng<strong>in</strong>eer<strong>in</strong>g,<br />
technology or st<strong>and</strong>ards <strong>and</strong> the future<br />
goals of the company.<br />
Describe ENOC’s operations <strong>in</strong> the<br />
Middle East.<br />
ENOC is a lead<strong>in</strong>g <strong>in</strong>tegrated <strong>in</strong>ternational<br />
oil <strong>and</strong> gas player operat<strong>in</strong>g across the<br />
energy value cha<strong>in</strong>, with operations rang<strong>in</strong>g<br />
from upstream to downstream. As a whollyowned<br />
entity of the Government of Dubai,<br />
<strong>and</strong> <strong>in</strong>tegral to the Emirate’s success,<br />
ENOC owns <strong>and</strong> operates assets <strong>in</strong> the<br />
fields of exploration & production, supply<br />
& operations, term<strong>in</strong>als, fuel retail, aviation<br />
fuel <strong>and</strong> petroleum products for commercial<br />
& <strong>in</strong>dustrial use.<br />
Servic<strong>in</strong>g thous<strong>and</strong>s of customers <strong>in</strong> over<br />
60 markets, the Group employs a workforce<br />
of over 9,000 employees <strong>and</strong> is deploy<strong>in</strong>g<br />
its world-class customer service, latest<br />
<strong>in</strong>novations <strong>and</strong> technologies <strong>and</strong> best<br />
practices to empower the UAE’s social <strong>and</strong><br />
economic development.<br />
Broadly speak<strong>in</strong>g however, ENOC operates<br />
across two major bus<strong>in</strong>ess streams: Energy<br />
bus<strong>in</strong>ess <strong>and</strong> General bus<strong>in</strong>ess<br />
Energy Bus<strong>in</strong>ess:<br />
• Supply, Trad<strong>in</strong>g <strong>and</strong> Process<strong>in</strong>g - ENOC<br />
owns, operates <strong>and</strong> manages a<br />
ref<strong>in</strong>ery, an MTBE Plant <strong>and</strong> also trades <strong>in</strong><br />
a diversified portfolio of products<br />
<strong>in</strong>clud<strong>in</strong>g petroleum, as well as soft<br />
commodities. STP operates <strong>in</strong> the UAE,<br />
S<strong>in</strong>gapore <strong>and</strong> London.<br />
• Term<strong>in</strong>als - ENOC manages <strong>and</strong><br />
operates Horizon Term<strong>in</strong>als - 11 term<strong>in</strong>als<br />
<strong>in</strong> Morocco, Djibouti, Saudi Arabia, the<br />
United Arab Emirates, South Korea <strong>and</strong><br />
S<strong>in</strong>gapore<br />
• Exploration <strong>and</strong> Production – this arm<br />
of ENOC ma<strong>in</strong>ly has Dragon <strong>Oil</strong> which has<br />
exploration assets <strong>in</strong> Turkmenistan, Iraq,<br />
Algeria, Tunisia, Afghanistan <strong>and</strong> Egypt.<br />
• Fuel retail - ENOC manages <strong>and</strong><br />
operates 116 service stations <strong>in</strong> United<br />
Arab Emirates <strong>and</strong> six <strong>in</strong> Saudi Arabia<br />
<strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017<br />
27
• Products – ENOC trades <strong>in</strong> several<br />
petroleum products such as lubricants, <strong>and</strong><br />
products for the automotive <strong>in</strong>dustry,<br />
aviation sector, mar<strong>in</strong>e <strong>in</strong>dustry <strong>and</strong><br />
<strong>in</strong>dustrial products<br />
General Bus<strong>in</strong>ess:<br />
• Automotive services - ENOC owns,<br />
operates <strong>and</strong> manages several vehicle<br />
related services such as Autopro for vehicle<br />
ma<strong>in</strong>tenance <strong>and</strong> Tasjeel for<br />
vehicle test<strong>in</strong>g <strong>and</strong> registration.<br />
• Non-Fuel retail such as ZOOM,<br />
Paavo’s Pizza<br />
• A Fabrication subsidiary – Cyl<strong>in</strong>gas which<br />
provides design, eng<strong>in</strong>eer<strong>in</strong>g, project<br />
management <strong>and</strong> construction services<br />
for process plants, oil & storage term<strong>in</strong>als at<br />
airports <strong>and</strong> power plants.<br />
What recent product <strong>in</strong>novations,<br />
eng<strong>in</strong>eer<strong>in</strong>g, technology or st<strong>and</strong>ards<br />
have you <strong>in</strong>troduced lately?<br />
<strong>Innovation</strong> is a key component that drives the<br />
growth of our operations, particularly <strong>in</strong> fuel<br />
retail.<br />
ENOC has <strong>in</strong>troduced a number of <strong>in</strong>novative<br />
technologies to facilitate payments <strong>and</strong><br />
enhance customer experiences at our service<br />
station network:<br />
• Known as ViP (Vehicle Identification Pass),<br />
it is a completely automated <strong>and</strong><br />
paperless system without the need for<br />
cash, fuel cards or receipts. All vehicle<br />
owners have to do is drive <strong>in</strong>to the service<br />
station, refuel with the help of an attendant<br />
<strong>and</strong> drive off.<br />
His Excellency<br />
Saif Humaid Al Falasi<br />
Group CEO, ENOC<br />
• Vehicle Identification Pass (ViP) for both<br />
commercial <strong>and</strong> <strong>in</strong>dividual use to speed<br />
up the refuell<strong>in</strong>g process. The automated<br />
<strong>and</strong> paperless system elim<strong>in</strong>ates the need<br />
for cash, fuel cards or credit/debit cards.<br />
The ViP system uses an <strong>in</strong>novative<br />
technology which consists of a securely<br />
encoded electronic security tag mounted<br />
near the fuel tanks. This allows the<br />
nozzle to automatically recognize the
fuel<strong>in</strong>g preferences <strong>in</strong>dividuals have set<br />
for their car, calculate the amount of fuel<br />
filled from the dispenser <strong>and</strong> deducts the<br />
money automatically from the <strong>in</strong>dividual’s<br />
VIP account. This speeds up the refuel<strong>in</strong>g<br />
process <strong>and</strong> enables customers to better<br />
manage their accounts <strong>and</strong> set budgets<br />
for each fuel<strong>in</strong>g transaction.<br />
• We have recently signed a partnership<br />
agreement with Network International <strong>and</strong><br />
<strong>in</strong>troduced PIN-less <strong>and</strong> paperless debit<br />
<strong>and</strong> credit card transactions <strong>in</strong> the<br />
forecourts of its service station network.<br />
The new <strong>in</strong>itiative enables customers to<br />
make purchases at convenience stores,<br />
<strong>and</strong> pay for fuel without enter<strong>in</strong>g their PIN<br />
numbers. This reduces wait<strong>in</strong>g times<br />
at ENOC service stations. The <strong>in</strong>itiative<br />
also fulfills customer dem<strong>and</strong>s to stay<br />
<strong>in</strong> the car dur<strong>in</strong>g card payments <strong>and</strong> reta<strong>in</strong><br />
confidentiality of their PIN numbers.<br />
Other recent <strong>in</strong>novations <strong>in</strong>clude the launch of<br />
the UAE’s first solar-powered service station.<br />
The station, which is located at the Dubai<br />
Internet City entrance, uses PhotoVoltaic (PV)<br />
solar panels on the roof of the canopy that can<br />
produce a peak capacity of 120kWh (Kilowatt<br />
per hour) energy on an ideal day, generat<strong>in</strong>g<br />
approximately 30 percent more than the<br />
average energy required to run the station. The<br />
excess power generated is transmitted back to<br />
DEWA’s ma<strong>in</strong> grid through a DEWA solar metre<br />
that tracks the power <strong>in</strong>jected to the power<br />
grid.<br />
The DIC service station will reduce the<br />
network’s carbon footpr<strong>in</strong>t by 195 equivalent<br />
tons of carbon dioxide (CO 2 ) per year.<br />
Discuss the company’s history,<br />
current performance, vision <strong>and</strong><br />
ambitions.<br />
Emirates National <strong>Oil</strong> Company (ENOC Group)<br />
is a lead<strong>in</strong>g <strong>in</strong>tegrated global oil & gas player<br />
operat<strong>in</strong>g across the energy sector value cha<strong>in</strong>.<br />
A wholly-owned company of the Government<br />
of Dubai, ENOC was <strong>in</strong>itially established <strong>in</strong><br />
1993. S<strong>in</strong>ce our formation, we have made<br />
significant contributions to Dubai’s cont<strong>in</strong>ued<br />
drive towards economic diversification <strong>and</strong><br />
susta<strong>in</strong>able development.
At ENOC, our vision is to be an <strong>in</strong>novative<br />
energy partner, deliver<strong>in</strong>g susta<strong>in</strong>able<br />
value <strong>and</strong> <strong>in</strong>dustry-lead<strong>in</strong>g performance.<br />
To accomplish this, we’ve built ENOC’s<br />
foundation on susta<strong>in</strong>ability, which<br />
dist<strong>in</strong>guishes <strong>and</strong> guides us <strong>in</strong> all our<br />
operations.<br />
Earlier this year, we announced a record<br />
volume of sales of petroleum products of<br />
245 million barrels, reflect<strong>in</strong>g a 5-year roll<strong>in</strong>g<br />
average growth of 9 percent, despite the<br />
challeng<strong>in</strong>g macroeconomic situation. As part<br />
of the five-year strategy, ENOC will focus its<br />
efforts <strong>and</strong> <strong>in</strong>vestments on fulfill<strong>in</strong>g Dubai’s<br />
energy needs through the expansion of its<br />
ref<strong>in</strong>ery <strong>and</strong> service station network, build<strong>in</strong>g<br />
term<strong>in</strong>als storage capacity, <strong>and</strong> <strong>in</strong>creas<strong>in</strong>g its<br />
market share <strong>in</strong> the market<strong>in</strong>g of diesel, jet<br />
fuel <strong>and</strong> Liquefied Petroleum <strong>Gas</strong> (LPG).<br />
For 2017 <strong>and</strong> beyond, we <strong>in</strong>tend to build upon<br />
our successes by exp<strong>and</strong><strong>in</strong>g our regional <strong>and</strong><br />
<strong>in</strong>ternational footpr<strong>in</strong>t. The focus will be to<br />
cont<strong>in</strong>ue diversify<strong>in</strong>g our revenue streams by<br />
<strong>in</strong>vest<strong>in</strong>g <strong>in</strong> operations that are well positioned<br />
to generate profitable susta<strong>in</strong>able growth.<br />
We <strong>in</strong>tend to achieve this by strategically<br />
position<strong>in</strong>g ourselves <strong>and</strong> our portfolio, <strong>and</strong><br />
by attract<strong>in</strong>g <strong>and</strong> reta<strong>in</strong><strong>in</strong>g the right talent.<br />
Describe the company’s past<br />
achievements.<br />
Be<strong>in</strong>g a group with such a diversified portfolio,<br />
our achievements are many. However, one of<br />
our biggest achievements for the first half of<br />
this year was the Dubai Internet City service<br />
station, as mentioned earlier.<br />
Last year, we launched the Vehicle<br />
Identification Pass (ViP), a cashless <strong>and</strong><br />
cardless system of payment, for our retail<br />
customers across our service station network.<br />
For two years prior to that, we had huge<br />
success with ViP for our corporate customers.<br />
We also embarked on the expansion of the<br />
ENOC Process<strong>in</strong>g Company Limited’s (EPCL)<br />
ref<strong>in</strong>ery <strong>in</strong> Jebel Ali, a project that is valued at<br />
over US$1billion. When complete <strong>in</strong> 2019, the<br />
ref<strong>in</strong>ery’s capacity will <strong>in</strong>crease by 50 percent.<br />
Last year, we also commissioned “Black<br />
Pearl”, a project that <strong>in</strong>volved the expansion<br />
of Vopak Horizon Fujairah Limited, which<br />
30 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
added 478,000 cubic meters (cbm) of crude oil<br />
storage capacity to <strong>in</strong>crease the facility’s total<br />
capacity to 2.6 million cbm.<br />
What projects are you currently<br />
work<strong>in</strong>g on?<br />
We have an aggressive growth plan to exp<strong>and</strong><br />
the network <strong>in</strong> Dubai to reduce congestion <strong>and</strong><br />
meet the dem<strong>and</strong>s <strong>in</strong> l<strong>in</strong>e with projections for<br />
EXPO 2020 <strong>and</strong> beyond. We have plans to grow<br />
our service station network by 40 percent until<br />
2020. These plans <strong>in</strong>clude the construction of<br />
54 more <strong>in</strong> Dubai <strong>and</strong> the ongo<strong>in</strong>g renovation<br />
of major service stations such as the stations <strong>in</strong><br />
Dubai Internet City which is up <strong>and</strong> runn<strong>in</strong>g now<br />
<strong>and</strong> Oud Metha is expected to open later this<br />
year.<br />
Additionally, we will commence construction of<br />
Project Falcon’s phase 2, which is a 16km jet<br />
fuel pipel<strong>in</strong>e connect<strong>in</strong>g our ref<strong>in</strong>eries <strong>in</strong> Jebel<br />
Ali to Al Maktoum International Airport <strong>in</strong> Dubai<br />
South. Phase 1 connected Jebel Ali to Dubai<br />
International Airport. The Dragon <strong>Oil</strong> acquisition<br />
transformed the company <strong>in</strong>to a fully <strong>in</strong>tegrated<br />
oil <strong>and</strong> gas bus<strong>in</strong>ess. These achievements are<br />
aligned with the Group’s strategic direction to<br />
meet the energy needs of the UAE, exp<strong>and</strong><br />
its operations <strong>and</strong> <strong>in</strong>vest <strong>in</strong> the <strong>in</strong>frastructure<br />
required to facilitate Dubai’s growth.<br />
What are the future goals of the<br />
company?<br />
At ENOC, we aim to be a leader <strong>in</strong> the domestic<br />
market <strong>and</strong> gradually exp<strong>and</strong> our operations<br />
<strong>in</strong>ternationally. We have a clear strategy <strong>and</strong><br />
roadmap for the next five years which we<br />
cont<strong>in</strong>uously monitor <strong>and</strong> adjust <strong>in</strong> l<strong>in</strong>e with a<br />
chang<strong>in</strong>g bus<strong>in</strong>ess environment. Our current<br />
focus is to enhance customer experience <strong>in</strong> l<strong>in</strong>e<br />
with EXPO 2020 <strong>and</strong> Dubai Plan 2021 <strong>in</strong> the<br />
local market.<br />
We are one of the largest players <strong>in</strong> the UAE<br />
<strong>and</strong> we <strong>in</strong>tend to further enhance our market<br />
position<strong>in</strong>g. At the same time, we <strong>in</strong>tend<br />
to exp<strong>and</strong> <strong>in</strong>to new markets with complete<br />
offer<strong>in</strong>gs of products <strong>and</strong> services across the<br />
energy value cha<strong>in</strong>.
Hedge Funds Hold Near-Record<br />
Short Positions <strong>in</strong> Petroleum<br />
<strong>Oil</strong> prices have been ris<strong>in</strong>g gently dur<strong>in</strong>g the<br />
past four trad<strong>in</strong>g sessions despite concerns<br />
about the cont<strong>in</strong>ued rise <strong>in</strong> the U.S. rig count<br />
<strong>and</strong> enormous excess <strong>in</strong>ventories.<br />
Front-month Brent futures prices are up by<br />
about $2 a barrel s<strong>in</strong>ce touch<strong>in</strong>g a low of $44<br />
on June 21, which could herald a break <strong>in</strong> the<br />
downtrend that had been <strong>in</strong> place s<strong>in</strong>ce late<br />
May.<br />
Ris<strong>in</strong>g prices most likely reflect hedge funds<br />
cover<strong>in</strong>g some short positions rather than a<br />
fundamental reappraisal of the outlook for<br />
supply, dem<strong>and</strong> <strong>and</strong> <strong>in</strong>ventories.<br />
Hedge fund managers have become<br />
progressively more bearish about petroleum<br />
prices <strong>in</strong> recent weeks.<br />
By June 20 hedge funds had amassed 480<br />
million barrels of short positions <strong>in</strong> the five ma<strong>in</strong><br />
futures <strong>and</strong> options contracts l<strong>in</strong>ked to crude,<br />
gasol<strong>in</strong>e <strong>and</strong> heat<strong>in</strong>g oil, up from only 350<br />
million barrels on June 6.<br />
Fund managers have only held a larger number<br />
of short positions <strong>in</strong> petroleum once before, <strong>in</strong><br />
January 2016, when their comb<strong>in</strong>ed shorts <strong>in</strong><br />
the five contracts totalled 484 million barrels.<br />
The position <strong>in</strong> January 2016 co<strong>in</strong>cided with<br />
the trough of the oil price cycle <strong>and</strong> marked the<br />
start of the recovery.<br />
The question is whether the large number of<br />
shorts now will mark a similar turn<strong>in</strong>g po<strong>in</strong>t.
Qatar Petroleum Announces New<br />
Fuel-<strong>Oil</strong> Bunker<strong>in</strong>g Solutions <strong>in</strong> Qatar<br />
<strong>Oil</strong> prices have been ris<strong>in</strong>g gently dur<strong>in</strong>g the past four trad<strong>in</strong>g sessions despite concerns<br />
about the cont<strong>in</strong>ued rise <strong>in</strong> the U.S. rig count <strong>and</strong> enormous excess <strong>in</strong>ventories.<br />
Front-month Brent futures prices are up by about $2 a barrel s<strong>in</strong>ce touch<strong>in</strong>g a low of $44<br />
on June 21, which could herald a break <strong>in</strong> the downtrend that had been <strong>in</strong> place s<strong>in</strong>ce<br />
late May.<br />
Ris<strong>in</strong>g prices most likely reflect hedge funds cover<strong>in</strong>g some short positions rather than a<br />
fundamental reappraisal of the outlook for supply, dem<strong>and</strong> <strong>and</strong> <strong>in</strong>ventories.<br />
Hedge fund managers have become progressively more bearish about petroleum prices<br />
<strong>in</strong> recent weeks.<br />
By June 20 hedge funds had amassed 480 million barrels of short positions <strong>in</strong> the five<br />
ma<strong>in</strong> futures <strong>and</strong> options contracts l<strong>in</strong>ked to crude, gasol<strong>in</strong>e <strong>and</strong> heat<strong>in</strong>g oil, up from only<br />
350 million barrels on June 6.<br />
Fund managers have only held a larger number of short positions <strong>in</strong> petroleum once<br />
before, <strong>in</strong> January 2016, when their comb<strong>in</strong>ed shorts <strong>in</strong> the five contracts totalled 484<br />
million barrels.<br />
The position <strong>in</strong> January 2016 co<strong>in</strong>cided with the trough of the oil price cycle <strong>and</strong> marked<br />
the start of the recovery.<br />
The question is whether the large number of shorts now will mark a similar turn<strong>in</strong>g po<strong>in</strong>t.<br />
34 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
Ch<strong>in</strong>a’s 2017 Crude <strong>Oil</strong> Quotas Exceed<br />
Last Year’s, Teapots Take A Cut<br />
Ch<strong>in</strong>a issued a second batch of crude oil import<br />
quotas under the so-called “non-state trade” that<br />
is higher than for all of the allowances <strong>in</strong> 2016,<br />
but allotments to <strong>in</strong>dependent ref<strong>in</strong>eries were<br />
lower than a year earlier.<br />
The lower grants to the <strong>in</strong>dependents dealt<br />
the new group of crude oil buyers another<br />
blow because they were already barred from<br />
export<strong>in</strong>g ref<strong>in</strong>ed fuel, squeez<strong>in</strong>g marg<strong>in</strong>s <strong>in</strong> an<br />
oversupplied domestic fuel market.<br />
The M<strong>in</strong>istry of Commerce approved 22.92<br />
million tonnes to 32 companies, aga<strong>in</strong>st 29<br />
recipients <strong>in</strong> the first issue for 2017, accord<strong>in</strong>g<br />
to a document dated June 14 <strong>and</strong> viewed by<br />
Reuters on Monday.<br />
The 32 companies <strong>in</strong>cluded mostly <strong>in</strong>dependent<br />
oil ref<strong>in</strong>eries, also known as teapots, <strong>and</strong> some<br />
state-run companies.<br />
That latest quotas take the total issued this year<br />
to 91.73 million tonnes, compared with 87.6<br />
million tonnes <strong>in</strong> 2016. The second batch will be<br />
valid until year-end.<br />
Volumes for the 19 <strong>in</strong>dependent oil plants that<br />
make up two thirds of the total issues for 2017<br />
dropped by 12.36 million tonnes, or nearly 17<br />
percent, from last 2016.<br />
“The message is pretty clear: the government is<br />
tighten<strong>in</strong>g the screws as the <strong>in</strong>dustry is heavily<br />
oversupplied,” said a Beij<strong>in</strong>g-based trad<strong>in</strong>g<br />
executive who deals with <strong>in</strong>dependents.<br />
“Those who have not played by the rules, underus<strong>in</strong>g<br />
quotas for <strong>in</strong>stance, are tak<strong>in</strong>g a bigger<br />
cut.”<br />
Four <strong>in</strong>dependents -- Baota Petrochemical,<br />
Wonfull Petrochemical, Haiyou <strong>and</strong> Chambroad<br />
-- took the deepest cuts, between 43 percent<br />
<strong>and</strong> 90 percent, accord<strong>in</strong>g to data Reuters<br />
compiled based on official documents.<br />
Uncerta<strong>in</strong>ties over the time <strong>and</strong> the size of issues<br />
have led some <strong>in</strong>dependents to scramble for<br />
purchases, result<strong>in</strong>g <strong>in</strong> brimm<strong>in</strong>g fuel stocks <strong>and</strong><br />
port congestion.<br />
“We are rush<strong>in</strong>g to buy as much crude as we can<br />
because we thought the government is go<strong>in</strong>g<br />
to issue second batch of quotas based on the<br />
volumes (used) <strong>in</strong> the first half of the year,” said<br />
a trader with Sh<strong>and</strong>ong W<strong>and</strong>a Group, owner of<br />
Tianhong Chemical.<br />
“That led to higher runn<strong>in</strong>g rate as we don’t have<br />
enough storage ... <strong>and</strong> <strong>in</strong> turn a glut of ref<strong>in</strong>ed<br />
products.”<br />
The M<strong>in</strong>istry of Commerce did not immediately<br />
respond to request for comment.<br />
Company officials at five <strong>in</strong>dependent ref<strong>in</strong>ers<br />
told Reuters that they have received a second<br />
batch of crude import quotas.<br />
Beij<strong>in</strong>g approved the oil quotas under the “nonstate<br />
trade” designation, so they do not <strong>in</strong>clude<br />
state-owned oil companies S<strong>in</strong>opec, Ch<strong>in</strong>a<br />
National Petroleum Corp, S<strong>in</strong>ochem Group,<br />
Ch<strong>in</strong>a National Offshore <strong>Oil</strong> Corp <strong>and</strong> Zhuhai<br />
Zhenrong Corp<br />
The <strong>in</strong>creased quotas buoyed the price of Oman<br />
crude on the Dubai Mercantile Exchange to its<br />
narrowest discount aga<strong>in</strong>st Dubai swaps <strong>in</strong> four<br />
sessions. Ch<strong>in</strong>a buys most of Oman’s crude<br />
output.
India Asks<br />
Qatar to Invest<br />
<strong>in</strong> Power Plants<br />
as Condition for LNG Deals<br />
India said it would sign future long-term liquefied<br />
natural gas (LNG) purchase deals with Qatar<br />
if only Doha agrees to acquire stakes <strong>in</strong> the<br />
South Asian nation’s power plants, oil m<strong>in</strong>ister<br />
Dharmendra Pradhan said.<br />
India is the latest major LNG buyer to seek<br />
concessions from Qatar, the world’s biggest LNG<br />
exporter, <strong>in</strong> order to re-sign long-term supply<br />
contracts. Amid a global glut of LNG <strong>and</strong> a slump<br />
<strong>in</strong> prices, other buyers have sought more flexible<br />
contracts, <strong>in</strong>clud<strong>in</strong>g clauses that would allow<br />
them to resell gas they do not consume.<br />
“Yesterday, we have given a firm proposal to<br />
Qatar. If they want to have a long-term off-take<br />
assurance, there is a w<strong>in</strong>dow. They can deal with<br />
our str<strong>and</strong>ed power plants, from end to end they<br />
can give some solution,” Pradhan told Reuters on<br />
Tuesday.<br />
India is suffer<strong>in</strong>g from natural gas shortages that<br />
have required power plants with capacity of as<br />
much as 25,000 megawatts to shut down or run<br />
as lower rates. Qatar’s Ras<strong>Gas</strong> is India’s biggest<br />
LNG supplier.<br />
“It won’t be quid pro quo but mutual <strong>in</strong>terest...<br />
They can share the profit of those power plants,”<br />
said Pradhan, add<strong>in</strong>g New Delhi wants to exp<strong>and</strong><br />
its ties with Doha beyond simply buyer <strong>and</strong><br />
supplier.<br />
India wants to gradually move to a gas-based<br />
economy <strong>and</strong> has plans to raise its annual LNG<br />
import capacity to 50 million tonnes <strong>in</strong> the next<br />
few years from 21 million tonnes now.<br />
India is also open to grant<strong>in</strong>g stakes to Qatar<br />
<strong>in</strong> local oil <strong>and</strong> gas companies <strong>and</strong> LNG<br />
term<strong>in</strong>als, should the Gulf emirate make such<br />
a proposal, said Pradhan. India’s biggest gas<br />
importer Petronet LNG annually buys 8.5 million<br />
tonnes under a long-term contract. It also buys<br />
additional volumes from Qatar under spot deals.<br />
Prabhat S<strong>in</strong>gh, chief executive of Petronet, said<br />
the Gulf nation needed to decide quickly on the<br />
Indian proposal. He said India could be a stable<br />
outlet for Qatar’s LNG.
“Plant 4.0” Start-Up Incubator: a 2nd<br />
Edition on IoT With Five New Partners<br />
Total is today launch<strong>in</strong>g its second Plant 4.0<br />
start-up <strong>in</strong>cubator, jo<strong>in</strong>ed this year by Air<br />
Liquide, AREVA, Eiffage, Solvay <strong>and</strong> VINCI<br />
Energies. This is the very first multicorporate<br />
Plant 4.0 start-up <strong>in</strong>cubator <strong>in</strong> the world. The<br />
partners’ common goal is to accelerate the<br />
deployment of digital technology <strong>in</strong> <strong>in</strong>dustry.<br />
Buoyed by the success of the Plant 4.0 start-up<br />
<strong>in</strong>cubator launched by Total <strong>in</strong> 2016, the Group<br />
decided to repeat the experience, this time<br />
open<strong>in</strong>g up the project to <strong>in</strong>clude other <strong>in</strong>dustry<br />
partners, on the narrower theme of <strong>in</strong>novative<br />
solutions offered by the <strong>in</strong>dustrial Internet of<br />
Th<strong>in</strong>gs (IoT).<br />
This open <strong>in</strong>novation approach aims to identify<br />
the start-ups that offer practical, relatively<br />
mature <strong>in</strong>dustrial solutions to meet specialized<br />
operational requirements. The fledgl<strong>in</strong>g<br />
companies can test their technology, product<br />
or service directly with their potential customers<br />
<strong>and</strong> are put <strong>in</strong> contact with the <strong>in</strong>cubator’s<br />
manufactur<strong>in</strong>g partners <strong>and</strong> their start-up<br />
ecosystems. Total <strong>and</strong> the other partners will<br />
also share their expertise with the successful<br />
c<strong>and</strong>idates.<br />
With the spread of sensors <strong>and</strong> new<br />
developments <strong>in</strong> data collection <strong>and</strong><br />
management, <strong>in</strong>novative solutions can improve<br />
the efficiency <strong>and</strong> boost the performance of<br />
plants <strong>and</strong> different <strong>in</strong>dustries. This <strong>in</strong>ternational<br />
call for projects focuses on connected objects<br />
<strong>in</strong> <strong>in</strong>dustry <strong>in</strong> four areas:<br />
Acoustic detection of leaks or anomalies.<br />
Corrosion monitor<strong>in</strong>g.<br />
Non-<strong>in</strong>vasive flow measurement.<br />
Manual valve position displays.<br />
“Total works <strong>in</strong> an open <strong>in</strong>novation process<br />
with start-ups <strong>and</strong> manufactur<strong>in</strong>g partners<br />
because we all face the same challenges.<br />
Build<strong>in</strong>g digital solutions together speeds up<br />
their deployment <strong>in</strong> our plants <strong>and</strong> <strong>in</strong>dustrial<br />
facilities,” says Gilles Cochevelou, Chief Digital<br />
Officer at Total. “Digital tech improves safety<br />
<strong>and</strong> efficiency, while reduc<strong>in</strong>g costs. It offers<br />
a world of opportunities <strong>and</strong> could <strong>in</strong>crease<br />
competitiveness <strong>in</strong> <strong>in</strong>dustry <strong>and</strong> for start-ups.”<br />
For the first <strong>in</strong>cubator, all <strong>in</strong>dustrial digital tech<br />
fields were covered by Total, from robotics,<br />
transportation, IoT, cybersecurity <strong>and</strong> remote<br />
diagnostics to augmented reality, drones <strong>and</strong><br />
artificial <strong>in</strong>telligence. Out of 150 submissions,<br />
24 start-ups were shortlisted <strong>and</strong> 9 selected<br />
for <strong>in</strong>cubation periods of about 6 months.<br />
Total <strong>in</strong>troduced streaml<strong>in</strong>ed processes for<br />
collaboration with the start-ups, for example<br />
by hav<strong>in</strong>g a s<strong>in</strong>gle contact person. Proofs of<br />
38 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017
concept (pilots) were conducted at production<br />
facilities <strong>and</strong> some of the start-ups cont<strong>in</strong>ue to<br />
work with Total today.<br />
Why participate <strong>in</strong> a multicorporate <strong>in</strong>cubator?<br />
“Our <strong>in</strong>volvement <strong>in</strong> the” Plant 4.0” <strong>in</strong>cubator<br />
reflects our Digital Transformation strategy,<br />
whose management of ecosystems is a<br />
major axis,” underl<strong>in</strong>es Olivier Delabroy, VP<br />
Digital Transformation, Air Liquide. “The<br />
relationships we have built <strong>and</strong> cont<strong>in</strong>ue to<br />
enhance with start-ups are a critical part of<br />
our open <strong>in</strong>novation approach. It is a longterm,<br />
partnership-based approach aim<strong>in</strong>g<br />
at accelerat<strong>in</strong>g <strong>in</strong>novation <strong>and</strong> our Digital<br />
Transformation, focused on usages <strong>and</strong> design,<br />
serv<strong>in</strong>g the customer experience. This proximity<br />
with start-ups helps us to <strong>in</strong>crease our agility<br />
<strong>and</strong> to re<strong>in</strong>force the expertise required to carry<br />
out projects <strong>in</strong> various fields, <strong>in</strong>clud<strong>in</strong>g IoT. In<br />
this respect, we look forward to jo<strong>in</strong><strong>in</strong>g this<br />
<strong>in</strong>cubator that Total is open<strong>in</strong>g for the first time<br />
to external partners.”<br />
“<strong>Industry</strong> 4.0 concepts, <strong>in</strong>clud<strong>in</strong>g IoT, are the<br />
first pillar of our digital transformation program.<br />
We have over three years of experience with<br />
Open <strong>Innovation</strong> <strong>and</strong> are very pleased with<br />
the results. For New AREVA, jo<strong>in</strong><strong>in</strong>g the Plant<br />
4.0 <strong>in</strong>cubator is <strong>in</strong> l<strong>in</strong>e with this <strong>and</strong> reflects<br />
our will<strong>in</strong>gness to enhance our <strong>in</strong>volvement <strong>in</strong><br />
<strong>in</strong>dustrial collaboration programs,” commented<br />
Jean-Luc Delcuvellerie, Digital Transformation<br />
Program Manager, New AREVA.<br />
“The participation <strong>in</strong> Total’s “Plant 4.0” <strong>in</strong>cubator<br />
with key <strong>in</strong>dustrial players is a way for Eiffage<br />
to work with<strong>in</strong> a strong dynamic of open<br />
<strong>in</strong>novation, on the issues already identified. The<br />
pool of qualified start-ups <strong>and</strong> the identified<br />
uses will allow us to support the deployment of<br />
digital technologies <strong>in</strong> our <strong>in</strong>dustrial activities to<br />
improve our performance, also accompany<strong>in</strong>g<br />
the Group itself <strong>in</strong> the digital transformation”<br />
stated Valérie David, Susta<strong>in</strong>able development<br />
<strong>and</strong> transversal <strong>in</strong>novation Director, Eiffage.<br />
“The team<strong>in</strong>g up of this group of <strong>in</strong>dustrial<br />
companies with specialized start-ups will help to<br />
efficiently identify <strong>and</strong> address the digital needs<br />
of the <strong>in</strong>dustry. The cutt<strong>in</strong>g-edge solutions these<br />
start-up companies can br<strong>in</strong>g will accelerate the<br />
digital revolution that will transform our <strong>in</strong>dustrial<br />
sites,” said Ala<strong>in</strong> Faessler, Solvay Group General<br />
Manager Industrial.<br />
For Olivier Albessard, Br<strong>and</strong> director of<br />
Actemium, the VINCI Energies br<strong>and</strong><br />
dedicated to the <strong>in</strong>dustrial process: “Partner<strong>in</strong>g<br />
with startups <strong>and</strong> niche experts allows<br />
agility, creativity <strong>and</strong> a degree of solutions<br />
customization that accelerate our capacity to<br />
design <strong>in</strong>novative offers for the <strong>in</strong>dustry of the<br />
future. We develop our ability to respond as well<br />
as our relevance, while the startup conquers<br />
difficult markets to reach on her own. Our<br />
contribution to the Total <strong>in</strong>cubator, one of our<br />
major <strong>in</strong>dustrial partners, will allow us to go<br />
even further <strong>in</strong> this operational approach of co<strong>in</strong>novation,<br />
improv<strong>in</strong>g the <strong>in</strong>dustrial performance<br />
of our client.”<br />
TO PARTICIPATE<br />
• Register at: www.plant4-0-startup-<strong>in</strong>cubator.com.<br />
• The clos<strong>in</strong>g sate for submissions is September 2, 2017.<br />
• Shortlisted projects will be presented to the panel of judges.<br />
• The selection committee will reveal the names of the first start-ups selected<br />
<strong>in</strong> the fourth quarter of 2017.<br />
• The successful start-ups may be <strong>in</strong>cubated for several months.<br />
The judges will <strong>in</strong>clude managers <strong>and</strong> experts from Total, Air Liquide, AREVA,<br />
Eiffage, Solvay, VINCI Energies <strong>and</strong> their partner Impulse Labs, which<br />
specializes <strong>in</strong> accelerat<strong>in</strong>g energy- <strong>and</strong> <strong>in</strong>dustry-related start-ups.<br />
<strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017<br />
39
NIOC Includes 4 More Russian <strong>Oil</strong> Companies,<br />
Azeri Socar Prequalified for Iran Projects<br />
The National Iranian <strong>Oil</strong> Company has added<br />
five more <strong>in</strong>ternational oil companies <strong>in</strong> its list<br />
of prequalified companies for Irans oil <strong>and</strong> gas<br />
upstream projects, just days before the June<br />
19 deadl<strong>in</strong>e for the Azadegan oil field tender<br />
consortia, Platts reported.<br />
NIOC has added Russia’s Gazprom Neft, Rosneft,<br />
Tatneft <strong>and</strong> Zarubezhneft <strong>and</strong> Azerbaijan’s<br />
state-owned Socar, tak<strong>in</strong>g its list of prequalified<br />
companies to a total of 34.<br />
Russia now has six companies with Gazprom<br />
<strong>and</strong> Lukoil <strong>in</strong> the list, the s<strong>in</strong>gle largest number<br />
of prequalified companies for Iran’s upstream<br />
projects, followed by five companies from Japan.<br />
Officials at Russian companies have said they<br />
are potentially <strong>in</strong>terested <strong>in</strong> projects <strong>in</strong> Iran but<br />
the companies are wait<strong>in</strong>g for a f<strong>in</strong>al contract<br />
to evaluate the economics <strong>and</strong> decide whether<br />
they are to take part <strong>in</strong> them <strong>and</strong> <strong>in</strong> which form,<br />
<strong>in</strong>dividually or via consortia.<br />
NIOC’s updated prequalified list of companies<br />
comes as Tehran is gear<strong>in</strong>g up for the biggest test<br />
of <strong>in</strong>terest <strong>in</strong> the country’s oil sector <strong>in</strong> years, as<br />
major <strong>in</strong>ternational oil companies prepare to bid<br />
for the right to develop the Azadegan oil field, one<br />
of its most prized assets.<br />
The prequalified oil companies have been<br />
asked to provide details of their planned<br />
consortium partners by Monday, as<br />
part of NIOC’s planned tender<br />
to develop the giant onshore<br />
Azadegan oil field.<br />
NIOC has also asked prequalified companies to<br />
seek its approval if they are select<strong>in</strong>g partners that<br />
have not been prequalified for Iran’s upstream<br />
bidd<strong>in</strong>g rounds.<br />
It plans to distribute detailed tender documents to<br />
the companies <strong>in</strong> July.<br />
The tender will be Iran’s first bidd<strong>in</strong>g round for a<br />
major oil field, hav<strong>in</strong>g previously relied on bilateral<br />
negotiations to award development contracts. It<br />
is also the first to be launched under Iran’s new<br />
model contract, the Iran Petroleum Contract,<br />
which is yet to be published.<br />
This replaces the buyback contract, which<br />
was not successful enough to attract<br />
sufficient <strong>in</strong>vestor <strong>in</strong>terest due to its tough<br />
terms.<br />
NEW CONTRACT<br />
The delay <strong>in</strong> launch<strong>in</strong>g the new<br />
contract has held up Iran’s ambitious<br />
plans to br<strong>in</strong>g <strong>in</strong> new <strong>in</strong>ternational<br />
oil companies <strong>and</strong> restore its oil<br />
production to pre-sanctions levels of<br />
around 4 million barrel per day.<br />
“Azadegan is the core of Iran’s<br />
upstream development plans,<br />
<strong>and</strong> accounts for most of Iran’s<br />
target for oil production capacity<br />
<strong>in</strong>crease. Hence, the upcom<strong>in</strong>g<br />
tender is perhaps the most<br />
important event the government<br />
has been look<strong>in</strong>g forward to for<br />
a while.
The tender covers the development of the entire Azadegan<br />
field. Azadegan currently produces around 125,000 b/d, with<br />
75,000 b/d from the northern portion <strong>and</strong> 50,000 b/d from the<br />
south. NIOC plans to raise production to 150,000 b/d <strong>in</strong> the<br />
north <strong>and</strong> as much as 600,000 b/d <strong>in</strong> two phases from South<br />
Azadegan.<br />
At the start of June, Gazprom Neft <strong>and</strong> Austria’s OMV, which<br />
is also a prequalified company, signed an agreement on<br />
cooperation on projects <strong>in</strong> Iran.Gazprom Neft was “study<strong>in</strong>g<br />
the possibility of participat<strong>in</strong>g <strong>in</strong> the development of two<br />
blocks <strong>in</strong> Iran” <strong>and</strong> given OMV’s experience <strong>in</strong> Iran <strong>and</strong> the<br />
Middle East, “jo<strong>in</strong>t geological assessment of blocks will be<br />
most effective.”<br />
Gazprom Neft earlier said it was look<strong>in</strong>g at the Changouleh<br />
<strong>and</strong> Cheshmeh Khosh oil fields.<br />
Iran has already <strong>in</strong>vited OMV to participate <strong>in</strong> an imm<strong>in</strong>ent<br />
tender to develop the Azadegan oil field.<br />
Malaysia’s state-owned Petronas <strong>and</strong> Royal Dutch Shell have<br />
h<strong>and</strong>ed over their technical studies report on the Azadegan<br />
oil field to NIOC.France’s Total <strong>and</strong> Japan’s Inpex Corp. have<br />
also offered their surveys on Iran’s largest crude reserves,<br />
Nouredd<strong>in</strong> Shahnazizadeh, the manag<strong>in</strong>g director of Iran’s<br />
Petroleum Eng<strong>in</strong>eer<strong>in</strong>g <strong>and</strong> Development Company said.<br />
Total, Shell, Inpex <strong>and</strong> Petronas are among the prequalified<br />
companies to bid for the Azadegan field.
UAE’s ENOC Group <strong>and</strong><br />
US’s Chevron Explore<br />
Long-Term Strategic<br />
Collaboration <strong>in</strong> <strong>Oil</strong> & <strong>Gas</strong><br />
Senior officials of the ENOC Group <strong>and</strong><br />
Chevron met recently to discuss exist<strong>in</strong>g<br />
<strong>and</strong> potential bus<strong>in</strong>ess opportunities.<br />
The meet<strong>in</strong>g between Saeed Al Tayer, Vice<br />
Chairman of ENOC Group, Saif Humaid<br />
Al Falasi, Chief Executive Officer of ENOC<br />
Group, Michael Wirth, Vice Chairman of<br />
the Board <strong>and</strong> Executive Vice President,<br />
Midstream <strong>and</strong> Development for Chevron<br />
Corporation, <strong>and</strong> Jay Pryor, Vice President<br />
of Bus<strong>in</strong>ess Development at Chevron,<br />
comes at a time when the ENOC Group is<br />
cont<strong>in</strong>u<strong>in</strong>g to exp<strong>and</strong> its bus<strong>in</strong>esses across<br />
the energy value cha<strong>in</strong>.<br />
“ENOC <strong>and</strong> Chevron have had a successful<br />
long-term collaboration for nearly two<br />
decades <strong>and</strong> it is based on this foundation<br />
that we cont<strong>in</strong>ue to look at future<br />
collaborations that are mutually beneficial<br />
to both parties. We hope to build on our<br />
mutual track record <strong>and</strong> explore new<br />
bus<strong>in</strong>ess opportunities,” Al Tayer said.<br />
Welcom<strong>in</strong>g the opportunity to meet ENOC<br />
leaders, Wirth said, “Chevron <strong>and</strong> ENOC<br />
have had a strong partnership for nearly<br />
two decades <strong>and</strong> we rema<strong>in</strong> committed<br />
to ongo<strong>in</strong>g collaboration.” The alliance<br />
between Chevron <strong>and</strong> ENOC extends<br />
across various aspects of downstream<br />
operations rang<strong>in</strong>g from lubricant market<strong>in</strong>g<br />
to aviation refuell<strong>in</strong>g.
How McDermott’s Head of Eng<strong>in</strong>eer<strong>in</strong>g<br />
For Batam Inspires Young Female<br />
Eng<strong>in</strong>eers To Lead <strong>and</strong> Succeed<br />
If there’s one th<strong>in</strong>g every female eng<strong>in</strong>eer has<br />
<strong>in</strong> common at work, it’s hav<strong>in</strong>g to deal with the<br />
misconceptions of be<strong>in</strong>g a woman <strong>in</strong> eng<strong>in</strong>eer<strong>in</strong>g.<br />
From lead<strong>in</strong>g a team to be<strong>in</strong>g “emotional”, every<br />
female eng<strong>in</strong>eer has to work twice as hard as the<br />
men just to prove that they are capable of do<strong>in</strong>g<br />
the work, climb up one’s career ladder <strong>and</strong> earn the<br />
respect of the people they work with. For Elviana<br />
Sari (Vivi), becom<strong>in</strong>g the McDermott International,<br />
Inc. Head of Eng<strong>in</strong>eer<strong>in</strong>g for the Batam fabrication<br />
yard meant go<strong>in</strong>g through several challenges to<br />
reach this po<strong>in</strong>t <strong>in</strong> her eng<strong>in</strong>eer<strong>in</strong>g career.<br />
Be<strong>in</strong>g the first female production eng<strong>in</strong>eer<br />
when she entered McDermott, she did not only<br />
encounter challenges at work as an eng<strong>in</strong>eer, she<br />
also had to deal with how be<strong>in</strong>g a woman <strong>in</strong> a<br />
male-dom<strong>in</strong>ated <strong>in</strong>dustry affects her relationship<br />
with her co-workers. As the Head of Eng<strong>in</strong>eer<strong>in</strong>g<br />
for McDermott <strong>in</strong> Batam, she manages five<br />
departments: Construction Eng<strong>in</strong>eer<strong>in</strong>g, Detail<strong>in</strong>g<br />
Office, Production Eng<strong>in</strong>eer<strong>in</strong>g, Document Control<br />
<strong>and</strong> Completion Eng<strong>in</strong>eer<strong>in</strong>g. Her work also<br />
<strong>in</strong>cludes bidd<strong>in</strong>g, safety <strong>and</strong> quality commitment,<br />
presentation for bid proposal, <strong>and</strong> staff<br />
development <strong>and</strong> <strong>in</strong>itiatives.<br />
In this exclusive <strong>in</strong>terview, learn more about Vivi’s<br />
humble beg<strong>in</strong>n<strong>in</strong>gs as a student who aspired to<br />
be an eng<strong>in</strong>eer <strong>and</strong> f<strong>in</strong>d out how be<strong>in</strong>g a female<br />
eng<strong>in</strong>eer didn’t stop her from climb<strong>in</strong>g up the<br />
career ladder despite the several pressures <strong>and</strong><br />
problems she encountered along the way. She<br />
also shares the common misconceptions she<br />
had to deal with at work <strong>and</strong> her advice to female<br />
eng<strong>in</strong>eer<strong>in</strong>g students who want to pursue a career<br />
<strong>in</strong> the <strong>in</strong>dustry.<br />
Meet Elviana Sari<br />
Family<br />
Elviana Sari (Vivi), who hails from Medan,<br />
Indonesia, is the eldest among four sibl<strong>in</strong>gs <strong>in</strong><br />
her family. She has two younger sisters, one a<br />
pediatrician <strong>and</strong> the other an accountant; <strong>and</strong><br />
a younger brother who works as a market<strong>in</strong>g<br />
manager for a shipp<strong>in</strong>g company <strong>in</strong> Medan. Both<br />
her parents were teachers who retired as the<br />
pr<strong>in</strong>cipals of two local schools.<br />
Vivi was married <strong>in</strong> 2006 to her co-worker, an<br />
American expatriate who worked <strong>in</strong> McDermott <strong>in</strong><br />
Indonesia. They went separate ways <strong>in</strong> 2014. Vivi<br />
<strong>and</strong> her ex-husb<strong>and</strong> rema<strong>in</strong>ed committed to the<br />
education <strong>and</strong> co-parent<strong>in</strong>g of their two children.<br />
Work experience<br />
• January 2001 – November 2004:<br />
Jo<strong>in</strong>ed McDermott as Structural<br />
Production Eng<strong>in</strong>eer<br />
• December 2004 – April 2005:<br />
Retrenched from McDermott <strong>and</strong> jo<strong>in</strong>ed a<br />
contact lenses manufacturer as Equipment<br />
<strong>and</strong> Facility Eng<strong>in</strong>eer<br />
• May 2005 - May 2007:<br />
Rehired by McDermott as Lead Structural<br />
Production Eng<strong>in</strong>eer<br />
• June 2007 – September 2009:<br />
Fabrication Coord<strong>in</strong>ator – manage structural<br />
<strong>and</strong> other discipl<strong>in</strong>es such as pip<strong>in</strong>g,<br />
mechanical, coat<strong>in</strong>g, electrical <strong>and</strong><br />
<strong>in</strong>strumentation<br />
• October 2009 – July 2010:<br />
Followed husb<strong>and</strong> back to US <strong>and</strong> then<br />
subsequently moved to Nigeria before<br />
relocated back to Asia to deliver her second<br />
baby <strong>in</strong> S<strong>in</strong>gapore by the same gynecologist of<br />
her first born child.<br />
• September 2010–February 2014:<br />
Deputy Construction Manager<br />
• March 2014 – February 2016:<br />
Deputy Fabrication Manager<br />
• February 2016 – current:<br />
Head of Eng<strong>in</strong>eer<strong>in</strong>g – manages five<br />
departments i.e. Construction Eng<strong>in</strong>eer<strong>in</strong>g,
Detail<strong>in</strong>g Office, Production Eng<strong>in</strong>eer<strong>in</strong>g,<br />
Document Control <strong>and</strong> Completion<br />
Eng<strong>in</strong>eer<strong>in</strong>g. Other roles <strong>in</strong>clude bidd<strong>in</strong>g,<br />
safety <strong>and</strong> quality commitment, presentation<br />
for bid proposal, <strong>and</strong> staff development <strong>and</strong><br />
<strong>in</strong>itiatives.<br />
What motivated her to pursue eng<strong>in</strong>eer<strong>in</strong>g?<br />
S<strong>in</strong>ce she was young, Vivi had a clear vision of<br />
her choice of career. She aspired to be either a<br />
doctor, to care for her mother who was always<br />
sick back then, or an eng<strong>in</strong>eer as she had always<br />
been captivated by pictures of flares emitt<strong>in</strong>g from<br />
oil rigs, people wear<strong>in</strong>g safety helmets, glasses<br />
<strong>and</strong> coveralls – someth<strong>in</strong>g that she was exposed<br />
to due to the calendars that her PERTAMINAemployed<br />
uncle brought home every year.<br />
“I thought it was cool to be able to work on a<br />
mega structure out there <strong>in</strong> the big blue sea<br />
<strong>and</strong> produce the energy that power the nation’s<br />
growth,” she said.<br />
To Vivi, becom<strong>in</strong>g a doctor was <strong>in</strong>itially her first<br />
choice. It was family before everyth<strong>in</strong>g else as she<br />
felt compelled to fulfill her filial responsibility to<br />
cure her sick mother. She was already study<strong>in</strong>g<br />
science <strong>and</strong> biology <strong>in</strong> senior high school to<br />
build her foundation for the eventual medical<br />
studies but when her mother’s health improved<br />
<strong>and</strong> became better, she f<strong>in</strong>ally chose eng<strong>in</strong>eer<strong>in</strong>g<br />
as her personal career choice. “The <strong>Industry</strong><br />
bus<strong>in</strong>ess was boom<strong>in</strong>g <strong>in</strong> Indonesia so I chose<br />
Industrial Eng<strong>in</strong>eer<strong>in</strong>g studies,” she said.<br />
With her targets set to either own an eng<strong>in</strong>eer<strong>in</strong>g<br />
firm or be employed by an eng<strong>in</strong>eer<strong>in</strong>g company,<br />
<strong>in</strong> 1995 Vivi enrolled <strong>in</strong>to two different colleges at<br />
the same time i.e. University of North Sumatera<br />
(UNS) <strong>and</strong> Medan Institute of Technology (MIT).<br />
Both colleges were offer<strong>in</strong>g Industrial Eng<strong>in</strong>eer<strong>in</strong>g<br />
Degree course but vary <strong>in</strong> terms of focus <strong>and</strong><br />
applications. UNS focused more on eng<strong>in</strong>eer<strong>in</strong>g<br />
management, theories <strong>and</strong> pr<strong>in</strong>ciples whereas<br />
MIT focused more on the technical aspect of the<br />
discipl<strong>in</strong>e. To be accepted <strong>in</strong>to UNS, a public<br />
university was not easy as they impose strict<br />
enrollment criteria that require students to score<br />
first rank <strong>in</strong> pre-university studies cover<strong>in</strong>g six<br />
different subjects i.e. biology, chemistry, physics,<br />
mathematics, English <strong>and</strong> Indonesian language.<br />
“I was determ<strong>in</strong>ed to be an eng<strong>in</strong>eer. I told<br />
myself back then that theories <strong>and</strong> management<br />
pr<strong>in</strong>ciples were not enough. I needed a technical<br />
background so I enrolled <strong>in</strong>to two colleges. It<br />
was madness come to th<strong>in</strong>k of it now. I had to<br />
juggle between lectures, tuitions <strong>and</strong> assignments<br />
from two colleges. I made a conscious choice<br />
of study<strong>in</strong>g the same discipl<strong>in</strong>e so I was able to<br />
apply the knowledge from one college to another.<br />
I’m glad I pulled that through.” Vivi successfully<br />
completed her bachelor’s degrees by end of 1999<br />
<strong>and</strong> graduated from UNS <strong>and</strong> MIT <strong>in</strong> 2000.<br />
Even as a fresh graduate <strong>in</strong> the employment<br />
market, Vivi didn’t want to settle for the norm.<br />
Unlike her peers that sought employment closer<br />
to home, she chose to start her career <strong>in</strong> Batam<br />
Isl<strong>and</strong>, some 800km from Medan. She knew back<br />
then that if she wanted to work <strong>in</strong> the oil <strong>and</strong> gas<br />
<strong>in</strong>dustry, Batam is the right place to start. Batam<br />
back then was an upcom<strong>in</strong>g <strong>in</strong>dustry estate with<br />
mult<strong>in</strong>ational oil <strong>and</strong> gas firms such as Kvaerner<br />
<strong>and</strong> McDermott already operat<strong>in</strong>g there.<br />
Vivi utilized the balance of her education<br />
scholarship while search<strong>in</strong>g for jobs <strong>in</strong> Batam.<br />
She did not rely on any f<strong>in</strong>ancial support from her<br />
parents.<br />
What were the challenges that she<br />
encountered dur<strong>in</strong>g her eng<strong>in</strong>eer<strong>in</strong>g<br />
career?<br />
There were many ups <strong>and</strong> downs <strong>in</strong> Vivi’s career.<br />
One of the most memorable lessons that she<br />
learnt was never to proceed with work until it is<br />
absolutely confirmed. She recalls an <strong>in</strong>cident<br />
where her boss requested that she proceed<br />
with the purchase of construction materials.<br />
Unfortunately when the materials were purchased<br />
the design draw<strong>in</strong>g was revised, render<strong>in</strong>g the<br />
materials unusable that resulted <strong>in</strong> <strong>in</strong>creased<br />
production cost.<br />
The other challenge was manag<strong>in</strong>g up.<br />
<strong>Through</strong>out her career, Vivi has come across 12<br />
different supervisors, all with different styles <strong>and</strong><br />
temperaments. “Even though we have people<br />
under our supervision, work<strong>in</strong>g <strong>in</strong> a company is<br />
not always about manag<strong>in</strong>g your downl<strong>in</strong>e. It is<br />
equally important to manage your supervisors as<br />
well,” she said.
Be<strong>in</strong>g the first female production eng<strong>in</strong>eer was<br />
also not easy, especially when she first took<br />
on the job back <strong>in</strong> 2001. “When I first made my<br />
rounds at the fabrication yard, people stopped<br />
their work <strong>and</strong> looked at me <strong>in</strong> a weird way as if<br />
the workshop is not a place for women. Some<br />
even had a problem hav<strong>in</strong>g a woman as their<br />
supervisor. I proved them wrong by go<strong>in</strong>g down<br />
to their level to underst<strong>and</strong> their jobs, tell<strong>in</strong>g them<br />
we can learn from each other. I also did my job<br />
as a production eng<strong>in</strong>eer to prove my capability<br />
<strong>and</strong> that earned their trust. I review, approve <strong>and</strong><br />
simplify the design draw<strong>in</strong>gs <strong>in</strong>to shop draw<strong>in</strong>gs<br />
for production l<strong>in</strong>e, ensure that the construction<br />
materials are procured correctly, issue to shop<br />
floor as per schedule, monitor <strong>and</strong> collect<br />
progress updates, report completion status <strong>and</strong><br />
<strong>in</strong>terface with clients <strong>and</strong> workers on fabrication<br />
problems based on the project <strong>and</strong> construction<br />
specification <strong>and</strong> st<strong>and</strong>ard.”<br />
Did the double degrees (theories <strong>and</strong><br />
technical) prove useful <strong>in</strong> h<strong>and</strong>l<strong>in</strong>g the<br />
<strong>in</strong>itial challenges? Which one was more<br />
useful at the beg<strong>in</strong>n<strong>in</strong>g? What about now?<br />
“The theories that I learnt <strong>in</strong> university was not<br />
entirely useful <strong>in</strong> the beg<strong>in</strong>n<strong>in</strong>g as there were gaps<br />
between the education system <strong>in</strong> Indonesia <strong>and</strong><br />
the <strong>in</strong>dustry <strong>in</strong> general. Will<strong>in</strong>gness to learn <strong>and</strong><br />
stay<strong>in</strong>g motivated played a big part <strong>in</strong> help<strong>in</strong>g me<br />
to adapt <strong>in</strong>to the work<strong>in</strong>g world.<br />
Based on my studies <strong>in</strong> Industrial Eng<strong>in</strong>eer<strong>in</strong>g, I<br />
also noticed plenty of room for improvements at<br />
the yard such as how the plates are stored, cut<br />
till f<strong>in</strong>ish to avoid double h<strong>and</strong>l<strong>in</strong>g etc. I provided<br />
<strong>in</strong>put to help make improvements to the work<strong>in</strong>g<br />
processes at the yard.<br />
Certa<strong>in</strong> subjects such as psychology that I learnt<br />
does help a lot <strong>in</strong> meet<strong>in</strong>g <strong>and</strong> connect<strong>in</strong>g with<br />
people of different backgrounds. This has made it<br />
easier to get the job done. Now that I have moved<br />
up the career ladder with greater responsibilities,<br />
the theories <strong>and</strong> technical knowledge are<br />
beg<strong>in</strong>n<strong>in</strong>g to be more useful such as plann<strong>in</strong>g <strong>and</strong><br />
ensur<strong>in</strong>g optimization of resources, <strong>in</strong>teract<strong>in</strong>g with<br />
people, coach<strong>in</strong>g my subord<strong>in</strong>ates <strong>and</strong> improv<strong>in</strong>g<br />
the eng<strong>in</strong>eer<strong>in</strong>g team.”<br />
What are her achievements, successes<br />
<strong>and</strong> accomplishments so far?<br />
Vivi was <strong>in</strong>-charge of Gorgon Upstream project<br />
from 2010-2014. It was the first subsea project<br />
for McDermott’s Batam yard. She worked with<br />
a client to establish new fabrication methods<br />
for various subsea structures <strong>and</strong> assisted the<br />
team <strong>in</strong> deliver<strong>in</strong>g the project with zero Lost Time<br />
Incident record, on schedule <strong>and</strong> with<strong>in</strong> budget.<br />
The other mega project that Vivi was <strong>in</strong>volved<br />
<strong>in</strong> was the Ichthys project, where Batam yard<br />
successfully delivered its biggest lifted structures,<br />
i.e. MEG Distribution Manifold, Production Riser<br />
Base <strong>and</strong> <strong>Gas</strong> Export Riser Base (at 1000 tones)<br />
on Feb 2016.<br />
What are her current duties <strong>and</strong><br />
responsibilities <strong>in</strong> McDermott?<br />
Vivi’s current responsibilities as the head of<br />
eng<strong>in</strong>eer<strong>in</strong>g for Batam yard <strong>in</strong>clude manag<strong>in</strong>g<br />
five departments i.e. Construction Eng<strong>in</strong>eer<strong>in</strong>g,<br />
Detail<strong>in</strong>g Office, Production Eng<strong>in</strong>eer<strong>in</strong>g,<br />
Document Control <strong>and</strong> Completion Eng<strong>in</strong>eer<strong>in</strong>g.<br />
Other roles <strong>in</strong>clude bidd<strong>in</strong>g, safety <strong>and</strong> quality<br />
commitment, presentation for bid proposal, <strong>and</strong><br />
staff development.<br />
Batam yard, which was established back <strong>in</strong> 1970,<br />
is the largest yard by size with<strong>in</strong> McDermott,<br />
measur<strong>in</strong>g at 110 hectares. The facility serves<br />
both traditional <strong>and</strong> float<strong>in</strong>g offshore construction,<br />
the grow<strong>in</strong>g onshore LNG module market <strong>and</strong><br />
subsea structure fabrication markets.<br />
The yard is equipped with more than 20 facilities,<br />
<strong>in</strong>clud<strong>in</strong>g a craft tra<strong>in</strong><strong>in</strong>g center, carbon steel <strong>and</strong><br />
alloy workshops, pipe roll<strong>in</strong>g mills, fabrication<br />
shop, tub<strong>in</strong>g shop, pa<strong>in</strong>t<strong>in</strong>g <strong>and</strong> blast<strong>in</strong>g shops,<br />
thermal spray alum<strong>in</strong>um shop, sub-assembly<br />
deck build<strong>in</strong>g shop, assembly areas, NDT test<strong>in</strong>g<br />
etc.<br />
McDermott is a lead<strong>in</strong>g provider of <strong>in</strong>tegrated<br />
eng<strong>in</strong>eer<strong>in</strong>g, procurement, construction <strong>and</strong><br />
<strong>in</strong>stallation (EPCI) services for upstream field<br />
developments worldwide. The Company<br />
delivers fixed <strong>and</strong> float<strong>in</strong>g production facilities,<br />
pipel<strong>in</strong>es <strong>and</strong> subsea systems from concept to
commission<strong>in</strong>g for complex Offshore <strong>and</strong> Subsea<br />
oil <strong>and</strong> gas projects to help oil companies safely<br />
produce <strong>and</strong> transport hydrocarbons.<br />
What are the misconceptions of be<strong>in</strong>g a<br />
female eng<strong>in</strong>eer?<br />
a) Women can’t st<strong>and</strong> the heat <strong>and</strong> pressure of<br />
field work, <strong>and</strong> that their commitment to work<br />
will be affected once they get married <strong>and</strong> start<br />
a family life.<br />
“I had no issue go<strong>in</strong>g about my rout<strong>in</strong>e work.<br />
I climbed ladders, travelled <strong>in</strong> a four wheeleddrive<br />
(the yard is 110 hectares, equivalent to 177<br />
soccer fields, thus site visits require a vehicle to<br />
move about), <strong>and</strong> managed my family <strong>and</strong> career<br />
without any issue,” she said.<br />
b) Women cannot lead.<br />
I overcame this misconception by speak<strong>in</strong>g with<br />
the co-workers, underst<strong>and</strong><strong>in</strong>g their background<br />
<strong>and</strong> was not hesitant to learn from them on<br />
th<strong>in</strong>gs that I did not know. Speak<strong>in</strong>g confidently<br />
among the male colleagues also helped exert the<br />
po<strong>in</strong>t that I am on top of th<strong>in</strong>gs, which helped<br />
ga<strong>in</strong> respect from the team.<br />
c) Women are emotionally weak<br />
Vivi is highly <strong>in</strong>dependent. She travelled <strong>and</strong><br />
stayed <strong>in</strong> Batam all by herself fresh out of<br />
university. In 2014, she was dealt with a difficult<br />
blow – an impend<strong>in</strong>g divorce <strong>and</strong> the demise<br />
of her father – all happened almost at the same<br />
time while still rema<strong>in</strong><strong>in</strong>g 100% committed to her<br />
work <strong>and</strong> car<strong>in</strong>g for her two children.<br />
Advice to the young female eng<strong>in</strong>eer<strong>in</strong>g<br />
students who are th<strong>in</strong>k<strong>in</strong>g of pursu<strong>in</strong>g<br />
eng<strong>in</strong>eer<strong>in</strong>g<br />
Don’t ever give up on your dream simply because<br />
someone says you can’t do it. Learn<strong>in</strong>g by<br />
experience is the best lesson. Don’t be afraid to<br />
make mistakes. They make you a better person.<br />
Lastly, st<strong>and</strong> up for what you th<strong>in</strong>k is right.<br />
Family support was vitally important. “My parents were very supportive of my choice of career.<br />
They did not stop me from leav<strong>in</strong>g my hometown after graduation to seek employment <strong>in</strong> Batam<br />
even though they were like helicopter parents <strong>and</strong> did not allow me to leave Medan to attend a<br />
more famous university/<strong>in</strong>stitute <strong>in</strong> other isl<strong>and</strong>s. I would also like to thank the previous<br />
supervisors who hired <strong>and</strong> rehired me for hav<strong>in</strong>g the trust <strong>in</strong> a female to take on the job as a<br />
production eng<strong>in</strong>eer <strong>in</strong> a great company like McDermott.<br />
48 <strong>Oil</strong> & <strong>Gas</strong> <strong>Leaders</strong> • July 2017