ABU DHABIRises to the challenge and aims to boost production from 2.82 to 3.5 million bpd

A good example is Statoil which is a

new contender to the concessions. The

Norwegian Ambassador Anders Berge

explains, “Statoil brings the experience

of working in extreme conditions.

This has sharpened our technological

edge and has been a catalyst to spin-

off technology.” Another international

company Maersk, also operates

as a lead technical player in the

region thanks to its experience with

carbonates. This is a valuable asset for

Abu Dhabi.

As niche expertise remains a

priority, Abu Dhabi is focused on

the continued development of its

research centers which include the

Glenelg School, the Petroleum Institute and the Masdar Institute. These

institutions, along with the support of the IOCs and service companies,

create an environment that enables innovation and continuously

regenerates the industry. As Minister Al Mazrouei explains, “we are not

just targeting production, but also how to achieve sustainability and

maximize resources for future generations.”

Innovative partnerships, exchange of expertise, workforce development

and a drive towards sustainability are the pillars guiding Abu Dhabi as

its oil industry settles into the next chapter and sets new goals.

To reach the target of 3.5 million bpd by 2017 more than US$25

billion will be invested in Abu Dhabi National Oil Company (ADNOC)

and Abu Dhabi Company for Onshore Oil Operations (ADCO) over

the next five years.

Concerns that UAE would change the structure of its partnerships

have passed. Instead, ADNOC is harnessing the experience of IOCs

to create dynamic partnerships that can handle future production

challenges. “It’s up to us to choose who is best and who can add

value,” said HE Suhail Mohamed Faraj Al Mazrouei, the UAE’s

Minister for Energy. “What matters for this government is the

positive opportunities we create for the next generation,” he added.

The family of oilfields, which include Bab, Asab and Bu Hasa, are

together responsible for half of the emirate’s almost 3 million bpd

output and hold more than 100 billion barrels of oil in one of the

most politically stable parts of the world. ADNOC also aims to boost

the capacity of the Lower Zakum offshore field to 425,000 bpd in

2016, by adding 100,000 bpd.

Flexibility is key for any partner in Abu Dhabi. Since concessions

expired in January 2014 the industry recognizes the value of

niche technical expertise and is building partnerships accordingly.

Produced by Elite Reports www.elitereports.net

“Part of our strategy is to be more open which is making UAE a hub for energy.”

H.E. Suhail Al Mazrouei UAE Minister of Energy

Mubadala Petroleum has operated the Ruby gas field in Indonesia since 2013

Statoil has through management focus and innovative use of technology recovered an additional 2 billion barrels of oil from five mature fields in Norway, with recovery rates up to 70 percent.

Statoil Abu Dhabi B.V. – Abu Dhabi3, Mireekh StreetAl Nahyan Commercial Bldg , Al Nahyan DistrictP.O. Box: 127376www.statoil.com Tel.: +971 26572222

2,000,000,000 barrels of oil with recovery rates up to 70%

Abu Dhabi has come a long way since its original concessions

were first agreed in 1939. Today, as its oil fields mature and

concession agreements are revised, shifts are taking place such as the

move towards gas development and the entry of Asian international oil

companies (IOCs) into the UAE marketplace. The terms for the new

bids were challenging when they were issued in 2013. Bidders were

asked to present plans to attain a 70% recovery rate, almost double the

previous quota of 40%, over a 40-year concession in return for a 5%

to 10% stake.

The first of the traditional partners to sign a new concession

was Total. The French company won the bid due to the scope of its

technical and commercial offer. As well as receiving a 10% stake, Total

was appointed asset leader for the South East, including the fields

Sahil, Asab, Shah, Qusahwira and Mender, described as “technically

challenging,” by Total and Bu Hasa, which is Abu Dhabi Company

for Onshore Oil Operation’s (ADCO) largest field. Hatem Nuseibeh,

President of Total UAE, attributes Total’s selection to the company’s

long history in the UAE along with its “large footprint” in the region,

its geology expertise and its interest in developing local talent. “It is

truly a partnership and not a concession agreement,” Nuseibeh said.

While no one was surprised to see the renewal of Total’s

concession or the increased collaboration between the partners,

the contracts signed with Korea and Japan represent an unexpected

turn for Abu Dhabi. On March 4th 2015, Abu Dhabi National Oil

Company (ADNOC) signed a Memorandum of Understanding

with Korea National Oil Corporation (KNOC) and Korea Institute

of Geoscience and Mineral Resources (KIGAM). The memorandum

provides for cooperation in research and development activities for

oil field development in UAE. In April JODCO, a group company

of Japan’s Inpex was awarded a 5% stake in ADCO’s onshore oil

concession for the next forty years.

Similar to the deal with Total, the agreements with KNOC, KIGAM

and JODCO will be collaborative in nature. As well as sharing technical

expertise ADNOC, KNOC and KIGAM plan to promote joint research,

implement expert exchange programs and host seminars. What was

most surprising about the announcement of JODCO as partner was

that it came before other contenders such as BP, Shell, Occidental

Petroleum, Statoil and Rosneft. This

is an important collaboration for a

Japanese company in the Middle East,

where it can secure shipments without

having to pass the Strait of Hormuz.

With Japan relying on around 83%

of its total crude imports from the

Middle East, this can only enhance

the country’s energy security.

Abu Dhabi’s relationship with Asia

is mutually beneficial. “Most of our oil

goes to the Asian market,” explained

HE Suhail Al Mazrouei, Abu Dhabi’s

Minister for Energy. “They are more

than consumers because they are

growing and building companies.

We are taking risks together and they

help us in other sectors. For example,

the Japanese are our partners in

Mubadala,” he said. The Minister is confident that Abu Dhabi’s

“excellent partnerships” between IOCs and NOCs will be as successful

as the old ones, which enabled UAE to lead one of the most efficient

exploration programs in the industry and to become one of the world’s

major oil producers. In short, despite the changes, it is business as usual

for Abu Dhabi’s oil and gas industry.

UAE’s partnerships continue but will interest in Asia transform the market?Business as usual for the UAE’s oil industry

“The development of local talent is at the heart of all our programs.”

Aqeel Madhi CEO NPCC

The principals of safety and quality continue to drive growth at NPCC

Established in 1973, NPCC is an Abu Dhabi engineering,

procurement and construction (EPC) company with

operations in the Arabian Gulf, South and South East Asia and

plans to expand its activities to Africa and the Caspian region.

Despite the fall in oil prices, the company is keeping pace with

the current trend towards consolidation in the global oilfield

sector by pursuing a policy of “premium acquisitions and

collaborations,” according to company CEO, Aqeel Madhi.

“NPCC has grown to a large, fully integrated EPC solutions

provider, acquiring assets, talent and capabilities over four

decades of executing challenging work in the region,” Madhi

said. “We are proud of maintaining one of the best safety

statistics in the industry and our project performance records

are impressive, irrespective of working in collaborations or as a

single entity.”

NPCC’s current offshore projects in Abu Dhabi include the

Umm Lulu, Umm Shaif and Al-Nasr oil fields where it operates

as a strategic partner. Because of the scale and capabilities of the

company’s services, it acts as a one-stop solutions provider for oil

and gas projects both in the upstream and downstream sectors.

NPCC continuously works to develop strategic partnerships with

local contractors, vendors, manufacturers and service providers

to ensure it can provide “in-country value” wherever it operates.

The company owns 22 vessels and has yard capabilities that span

more than one million square meters of seafront. It boasts a loyal

workforce, most of whom have been with the company for two

decades.

Looking to the future, Madhi is optimistic. “We are expanding

our client base offering quality services driven by cost efficiencies.

There are plans to acquire technology through collaborations,

mergers and acquisitions, so that we service niche markets such

as EOR and Deepwater. At the same time we continue to exceed

the expectations of our existing customers through the time-

tested principles of safety, quality and timely delivery.”

For more information please visit mubadalapetroleum.com

Mubadala Petroleum is an Abu Dhabi-based international, upstream oil and gas exploration and production company. We were established as a wholly-owned subsidiary of Mubadala Development Company in June 2012, incorporating and building on the success and materiality of Mubadala’s existing investments in the oil and gas sector.

We manage assets and operations spanning the Eastern Hemisphere, and our success is built on a clear purpose, strong partnerships, the passion and capability of our people, and our focus on performance.

Explore. Develop.Produce.

The central theme set by the UAE government for 2015 is innovation. How does this apply to the en-ergy sector?

An important driver is that we want to reduce our de-pendency on oil revenues and gas imports. This is why very early in the de-velopment of our country, the government cre-ated the Abu Dhabi Invest-ment Authority (ADIA) and helped to se-cure other sources of in-

Innovation is not a project, it is a journeySuhail Al Mazrouei, Minister for Energy, UAE

Keen to diversify their oil-dependent economy, the United Arab Emirates

invest in innovation, science and technology to secure a sustainable

future. Minister for Energy, Suhail Al Mazrouei outlines the emirate’s main

areas of research, in particular renewable energies and water.

come for the future. At the time, we created a struc-tured scholarship program so that our best and bright-est could study in the lead-ing universities in the

world. Those early graduates helped build our oil & gas sector. Both the Abu Dhabi National Oil Company (ADNOC) and ADIA have since worked together to develop tal-ent and invest-ments in Abu

Dhabi.We are a $400 billion

“We have

among the

best standards

in the world

in terms of

preserving the

environment.”

economy but we are a small country with a small popu-lation. The oil industry was our foundation and we are still keen to excel in it and maintain our role as a reli-able supplier to the world and a reliable OPEC mem-ber, but it is not our only focus.

Do you include the protec-tion of the environment in this push for innovation?

Indeed, it is a key part of many of our innovation projects. I’ll give you the example of flared gas. Up until the mid-1990s, many oil producers, including us, flared the associated gas because it had little com-mercial value. But given the impact on the environ-ment, Sheikh Zayed, the founder of the UAE, set the objective of zero flare. It was a bold decision that re-quired huge capital expen-ditures. As it turned out, not only did it contribute significantly to reducing CO2 emissions, but it also saved vast quantities of gas. Today, we push oil and gas companies to protect the environment and ma-rine life, and we take this responsibility everywhere we operate. We have among the best standards in the world.

What are the UAE’s main areas of investment in terms of innovation?

Water is very important to us, it even is more im-portant than oil. So finding a sustainable source of wa-ter is a priority and we

want to excel at this. The Masdar Institute of Tech-nology is focused on this issue right now.

Renewable energy is an-other area, which interests us as demonstrated by our projects and investments abroad. Certain industrial areas interest us too, such as the production and use of aluminum. We are the world’s second or third largest producer of semi-conductors. We are interested in medicine, and in genetics in relation to ag-riculture.

The cabinet of Ministers declared 2015 to be the Year of Innovation and chartered a ministerial committee to design a structured policy for inno-vation that the whole gov-ernment will adopt. We as-pire to promote creativity and innovation among all the population of the UAE, whether they are nationals or expatriates. We aspire to start from the early years of school to the highest levels of R&D facilities. Today, the UAE has really become a land of opportunity par-ticularly for young and in-novative people.

Innovation is not just a project, it is rather a jour-ney.

40%The percentage of the UAE’s gross domestic

product directly based on oil and gas output.

What will be the impact of the fall in the oil price on the diversification of the UAE economy?

We have been able to miti-gate the impact because of our vision set out decades ago to diversify our econo-my. In order to do so, we have invested for years in education because there is a critical link between eco-nomic growth and invest-ment to develop a highly skilled and productive workforce. The Masdar In-stitute is training the UAE’s future energy leaders and pushes the boundaries of technological innovation and R&D.

What are Mubadala and Masdar doing to encourage

We are pushing the boundaries of technological innovationDr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar

The Masdar Institute plays a key role in training the future generation

of business executives and policy makers that will move the UAE’s

economy forward.

and stimulate innovation? For example the team at

Masdar, in collaboration with the Masdar Institute, is advancing CCUS technology to in-crease hydrocar-bon production while reducing carbon emis-sions. They are also researching how to combine renewable ener-gy and cut-ting-edge desali-n a t i o n technologies.

Through Masdar, we’re also making an impact in renewables – from the Shams 1 solar power plant in Abu Dhabi, to the Lon-don Array in the United

1 %This is the estimated

reduction in GDP for the UAE due to the fall in oil prices, compared with

an estimated 3.5 percent for other hydrocarbon dependent economies.

16,000 This is the number of homes in Oman that will be supplied with

wind energy, thanks to a project led by Masdar.

Kingdom, which are two of the world’s largest and most sophisticated renew-able energy projects. An im-portant element of our en-ergy portfolio’s strategy is to maintain Abu Dhabi’s leadership in future energy markets. By developing re-newable energy projects domestically and interna-tionally through Masdar, we are extending our lead-ership beyond hydrocar-bons and ensuring we play a significant role in the growing share of renewable energy globally. We are also sharing experience and best practices with other coun-tries in the region – Jordan, Oman and Saudi Arabia.

The Masdar Institute has five main research areas: water, innovation, energy, microsystems and smart and sustainable systems. More generally, we are in-vesting heavily across key sectors, many of which are knowledge driven, such as

energy, trans-port, educa-tion, health care, technol-ogy, water, space, de-fense, real es-tate, metals and mining and financial services.

What are your plans for developing renewable energy projects outside the UAE?

We are continuously look-ing for opportunities to ex-tend our leadership and share our knowledge with

other countries, so they, too, can work toward ensuring sustainable access to ener-gy.

For example, in Oman, Masdar is delivering the GCC’s first large-scale wind farm, which will generate power for 16,000 homes.

In Jordan, Masdar is de-veloping the 117 MW Tafila wind farm, which will pow-er more than 80,000 homes.

In Afghanistan, Masdar installed solar home sys-tems in about two dozen villages, giving access to electricity to more than 3,000 people.

The UAE-Pacific Partner-ship Fund, a US$50 million initiative, is developing grant-funded renewable energy projects, which Mas-dar is implementing in the South Pacific.

“By developing

renewable

energy projects,

we are extending

our leadership

beyond

hydrocarbons.”

UAE’s oil companies harness years of experience to develop new market opportunities UAE’s newest export is local expertise

an MIT counterpart. To develop ties with local industry, the Institute

has put an innovative program in place, signing Abu Dhabi-based

companies up to sponsorship contracts. To date, Masdar has signed

contracts with 40 companies.

Though this is a new program for Masdar, the culture of

knowledge sharing to improve local expertise in Abu Dhabi has been

part of the partnership programs for decades but its importance has

been heightened with the government’s new focus on sustainability.

For example, Mubadala Petroleum was established in 2012 as a

subsidiary of Mubadala, incorporating and building on the success of

Mubadala’s Oil & Gas business unit. The company is active in three

core geographical areas, the Middle East, Africa and Southeast Asia.

Its goal is to create a footprint of skilled Emirati people in the oil

and gas community on a worldwide level. “As Mubadala Petroleum we

want to create and develop strong leaders,” said Mussabeh Al Kaabi,

CEO of Mubadala Petroluem, “not just for the UAE, but also in the

countries where we operate. In Abu Dhabi, we think it is an excellent

opportunity for UAE nationals to be exposed to the international oil

and gas industry.” Al Kaabi also credited the 10-year-old Petroleum

Institute for providing the industry with qualified graduates who are

primed to handle the challenging conditions of fields in both the

UAE and abroad.

T he key word for Abu Dhabi’s oil and gas industry today is

sustainability. As the historical period of concessions ends and

new partnerships begin to emerge, Abu Dhabi remains focused on a

visionary goal, creating opportunities for its next generation. This goal

means creating the ideal environment for growth and ensuring that

technology and talent are available to overcome challenges. To achieve

this, Abu Dhabi takes the dual approach of educating domestic talent

in a research community focused on

developing cutting edge solutions

whilst also deepening its markets

abroad by expanding the range of

services offered to clients in foreign

countries.

Falling oil prices may have

slowed the industry but they haven’t

depleted Abu Dhabi’s reserves. Abu

Dhabi holds 95% of the UAE’s crude

oil reserves and 92% of gas reserves.

It has proven reserves of 1.3 trillion

barrels of conventional oil with

possible resources of 2.7 trillion

barrels. However, 60% of the regions’

fields are carbonates, which demands

both enhanced oil recovery (EOR)

technology and skilled technical

teams to safeguard efficient recovery.

To ensure Abu Dhabi can

provide skilled technicians and engineers, the Masdar Institute was

established in 2009 as a research-driven graduate-level university

focusing on advanced energy and sustainable technologies. “Our

concern is to develop human capital by giving them an education that

is on par with the best in the world. That is why we work very closely

with MIT,” said Dr. Fred Moavenzadeh, the Institute’s President. To

emulate MIT standards, all of the Institute’s faculty members have

spent at least one year on a MIT research project or working with

“Abu Dhabi has invested in education so the industry has the right resources.”

Musabbeh Al Kaabi CEO Mubadala Petroleum

Abu Dhabi’s technical students are amongst the industry’s finest

term mutual value and in the process offering genuine “In Country

Value” in the areas of operations,” explained Ageel A. Madhi,

CEO of NPCC.

Demand for quality talent is high. As well as the various NOCs

and IOCs operating there, Abu Dhabi’s service industry is growing at

a fast pace. Established in 1977, AlMansoori Specialized Engineering

is a pioneer as a local provider in the Abu Dhabi service sector. It has

grown in that time to become an international provider with more

than 2,000 employees in 24 countries and branches in 15 countries.

“When I started in the industry there was a lot of nationalism in the

oil companies,” said Ibrahim Alalawi, deputy CEO of AlMansoori

Specialized Engineering. “I have seen a full 180 degree turn. Now,

the NOCs are partnering with the IOCs to get the benefits. I have

seen that the IOCs do not have all the answers and they are learning

from the NOCs. In the oil company-service company relationship, I

am seeing it move towards a more collaborative environment. That

is where I see the future heading: more collaboration between NOCs

and IOCs and more collaboration between oil companies and service

companies,” he added.

Big Data technology is driving the push towards collaboration for

many companies including AlMansoori. The engineering specialist

has recently launched a new technology, the multiphase flow meter,

which is designed to cause less disruption to the flow of the oil by

offering real-time data. “As the fields in the region are aging, we are

seeing more demand for data. Many of our services are related to

capturing data, whether it is well testing, logging or running gauges.

We expect that trend to increase in the future,” said Alalawi.

Mubadala Petroleum is an example of another Abu Dhabi company

that is using its technical expertise to grow foreign markets. As well

as having strong operations in Oman,

Qatar and Bahrain, the company is

active in Africa and has signed an

agreement with Somalia. Al Kaabi

believes that Mubadala has developed

assets, which can be leveraged to

develop the company’s operations

abroad. “We have developed very

strong capabilities in the exploration

side and in the mid to small field oil

and gas operations. We have a strong

alliance with companies who are

strong in EOR and have experience

in terms of execution, technical

resources and capital investment

required in these projects. In Abu

Dhabi we have many complex and

challenging projects starting from

ultra sour gas development all the

way to very exotic chemical EOR

projects in offshore. We want to build on the strong relationship

with ADNOC and try to export some part of that knowledge through

Mubadala Petroleum elsewhere in the world.” Al Kaabi sees an oil and

gas industry that shares knowledge from region to region as viable

and expects the industry to follow that trend in the future. With

a planned investment of $25 billion in the industry over the next

five years and a growing number of bases in foreign countries, Abu

Dhabi is harnessing the expertise developed from that investment and

creating a valuable exportable commodity.

Because of its long history and the many challenges presented by its

fields, Abu Dhabi has an established research and development

community that is producing some of the finest engineers and techni-

cians in the industry. The IOCs oper-

ating in Abu Dhabi also play a role in

the culture of technology and talent

transfer. “It goes hand-in-hand with a

proper NOC-IOC partnership,” said

Richard Doidge who heads Maersk

Oil’s business development activities

in Abu Dhabi. He believes Maersk’s

reputation as “a long-term partner

and a responsible corporate citizen,”

is an asset that the company can bring

to the UAE.

“Total has made a big effort of

‘Emiratizing’ its workforce in this

country,” said Hatem Nuseibeh,

President of Total UAE. The IOC

set up the Total Abu Al Bukhoosh

Academy (Total ABK) in 1974 to

train the mechanics, electricians,

engineers and higher management needed to run the country’s fields.

“Many people working today in key postings have gone through

Total ABK,” said Nuseibeh. Meanwhile companies such as NPCC are

increasing market share abroad by harnessing its UAE experience.

“We continuously work to develop strategic partnerships with local

contractors, vendors, fabricators and service providers to derive long

“As the regions’ fields age, we are seeing an increased demand for data.”

Ibrahim Al-Alawi Deputy CEO AlMansoori Petroleum Services

“In 2011 we opened an Abu Dhabi office to show our long-term commitment.”

Richard Doidge Managing Director Maersk Oil

The skilled workforce sets Abu Dhabi apart

In what regions is Al Man-soori focusing its develop-ment?

Our focus and priority is the MENA region. From time to time, we get unsolic-ited offers to work in other c o u n t r i e s , which is why we have some operations in Gabon, Congo, Uganda, Kenya and Tanzania. We are also looking at Madagascar. We have done work in Ethiopia and Soma-lia, some of the Caspian countries, as well as Bangla-desh and Myanmar.

East Africa is very promis-

Our priority is the MENA regionIbrahim Alalawi, Deputy CEO, Al Mansoori Specialized Engineering

Created in 1977, Al Mansoori Specialized Engineering is one of the few

Emirati companies operating in the oil & gas sector. As a provider of oil

and gas services, Al Mansoori has gained international recognition.

ing. Whether the low oil price will affect exploration activity remains to be seen, but when we see a new market developing, we do

not want to miss out on that.

With maturing oil fields throughout the region, En-hanced Oil Re-covery is becom-ing key. How are you positioned in this area?

Indeed, as fields mature and pro-

ductivity rates go down, we are going to see more EOR projects. We are actively keeping abreast of the latest technology in EOR as well as other aspects of the busi-

15The number of countries where Al Mansoori has

branches

24The number of countries

where the company operates

2,000Is the number of

employees worldwide

“Inactive wells

are one of

the biggest

challenges

facing GCC

countries”

ness to see what might be suitable to be applied.

Now more broadly, in terms of E&P, one of the biggest challenges for the GCC countries is that there are many inactive wells, for many different reasons. Ageing facilities and declin-ing productivity are also challenges. This has led our customers in the region to take a more collaborative approach; they are sharing their challenges with us.

Given the fact that there are not many indigenous oil and gas service compa-nies in the UAE, how do explain Al Mansoori’s suc-cess and longevity?

Because our traditional economy was based on ag-riculture, fisheries, pearls, and trading, a lot of local businesses founded here at the start of the e c o n o m i c growth were trading com-panies. The advantage of Al Mansoori at the time was that it was founded by engineers. Our technical capabi l i t i e s gave us a head start in the oil and gas business.

Nowadays, we have a very well educat-ed generation of Emiratis who are just as competent as any other worker in the world. In the company, we pride ourselves for having

some of the best, highly trained people. It must be

said that the UAE have done an ex-cellent job in estab-lishing the Petro-leum Institute. It works very closely with ADNOC and its group of com-panies to produce the graduates our industry needs.

Would you consid-er Al Mansoori go-ing public in thefuture? As the stock markets here

mature and investors become more educated and knowledgeable, we might see more stability in the markets and it could be attractive for us.

“We have

a very well

educated

generation of

Emiratis

who are just

as competent

as any other

workers in the

world.”

How are you responding to the current low oil price environment?

It is without doubt a major issue and as expected, we have seen sever-al large projects either shelved or cancelled.

At NPCC, we seek a solution in the fundamen-tals. While re-duced commodi-ty prices have enhanced our price competitiveness, we endeavor to further en-hance the robustness of our project execution and im-prove our costs by weeding

We have ambitious plans to grow in the GCC regionAqeel Madhi, CEO of National Petroleum Construction Company (NPCC)

NPCC is the UAE’s national engineering, procurement and construction

company providing EPC solutions to the offshore and onshore oil & gas

sector. CEO Aqeel Madhi outlines how the company is adapting to the

new environment of low oil prices, and its development objectives.

out inefficiencies in the business process.

This said, we have a ro-bust balance sheet and we are at full capacity for this

year. In addition, we are optimistic about future projects we have bidden for. Al-though the in-dustry outlook tends to be cau-tious, we believe

that the working relation-ships we have developed with NOCs and IOCs in the past decades will continue to foster our growth pros-pects.

22

It is the number of vessels fully owned by

NPCC

9,000 The number of

employees at NPCC

1 billion dollars

Is the total amount of investment made by NPCC in the past few

years

What differentiates NPCC from its competitors?

NPCC has grown to a large, fully Integrated EPC solutions provider, acquir-ing assets, talent and capa-bilities over four decades of executing challenging work in the region. The project performance records are impressive, irrespective of working in collaborations or as a single entity. Very few companies can boast of yard capabilities spanning over one million square me-ters of seafront land and a fleet of 22 fully owned ves-sels.

We lay great emphasis on creating an employ-ee-friendly and safe envi-ronment. Most of our em-ployees have been with us for over two decades. This ensures continuity of expe-rience and fosters loyalty.

We provide “One Stop Solutions” for O&G Proj-ects both on the upstream and downstream sectors. We continuously work to develop strategic partner-ships with local contractors, vendors, fabricators and service providers. Our re-cent projects have success-fully demonstrated how we can build on our core set of skills and capabilities.

What are you doing to in-crease your market share in the region?

We have ambitious plans to grow in the GCC region. We are expanding our client base by offering quality ser-vices driven by cost effi-ciencies. There are plans to acquire technology through

collaborations and the M&A route, so that we ser-vice niche markets such as EOR and Deepwater. At the same time we continue to exceed the expectations of our existing customers through the time-tested principles of safety, quality and timely delivery.

We have invested over a billion dollar in the past few years with the main objec-tive of strategically posi-tioning NPCC to capitalize on targeted opportunities. Further efforts were also di-rected towards enhancing internal capabilities through a combination of organic and inorganic activ-ities. Another major asset is our multicultural work-force in excess of 9,000 em-ployees.

“Our project

performance

records are

impressive.”

“IOR and EOR are key for countries and companies working with mature resources.”

Neri Askland, Statoil’s VP Middle East & Country Manager Abu Dhabi

Statoil’s experience with mature fields offers value to Abu Dhabi

Last year Statoil opened

an improved oil recovery

(IOR) center in Trondheim,

Norway, one of the largest of its

kind in the world. For countries

working with mature fields,

improved oil recovery (IOR)

and enhanced oil recovery

(EOR) are vital. “In Norway,

Statoil has achieved over 70%

recovery rate in some of the

country’s oldest producing

reservoirs,” said Mr. Neri

Askland, Statoil’s Middle East

VP and Abu Dhabi Country

Manager. “This is achieved

through systemically working

closely with contractors and

production data, applying

new technologies, and imple-

menting and monitoring EOR

techniques,” he said.

Because of this experience

with processes and technology,

Statoil is in a strategic position

vis-à-vis Abu Dhabi where oil

and gas fields are mature and

demand EOR expertise. “In

addition, Statoil has much

experience with CO2 capture

and storage, which is relevant

if a CO2 for EOR strategy is

applied in the Middle East,”

Askland said, adding that

the company also has a track

record in biologically sensitive

areas. Now that the Mongstad

project in Norway has been

completed, Statoil is in a

position to offer that expertise

to Abu Dhabi and is keen to

work in the region. As Askland

explained, “ADNOC is already

deploying CO2 for EOR,

which is an important project

to follow. Statoil has extensive

experience dealing with the

CO2 value chain and we are

ready to share any relevant

learning with Abu Dhabi.”

Maersk Oil, keen to export its technical know-how to Abu Dhabi

Maersk Oil produces oil

from the Danish and

UK sectors of the North Sea,

Algeria, Kazakhstan and the

US Gulf of Mexico. The Middle

East is a key region for Maersk

Oil, with Qatar contributing an

important part of the company’s

global production. Exploration

and development projects are

also underway in Kurdistan.

To build on this, Maersk Oil

is interested in extending its

offshore activities in Abu Dhabi.

“Qatar represents close to

half of our global production,

so the fact that there are

potential opportunities for us

to secure field development

and production projects in Abu

Dhabi, where we could deploy

our core competencies in

developing these difficult and

complex carbonate reservoirs,

would be a compelling reason to

focus on business development

here,” said Richard Doidge,

who heads Maersk Oil’s

business development activities

in Abu Dhabi.

Maersk Oil could potentially

fit into the Abu Dhabi joint

operating model, since IOC

partners with niche expertise

are being asked by ADNOC to

serve as lead technical advisors

on specific assets. “Traditionally,

we are a company that has

been very technically focused,”

Doidge said. “We are good at

identifying the right technology

for the best technical challenge in

terms of reservoir development,

deploying and optimization.”

He is confident that Maersk

Oil’s experience from the Al

Shaheen Field in Qatar is

exportable to Abu Dhabi which

lies in the same geological

basin with similar reservoirs.

“We have pushed the limits of

horizontal well technology, not

just to maximize recovery and

production, but to drive down

corresponding per-barrel costs,”

Doidge explained. To show its

long-term commitment to the

region, Maersk Oil established

an office in Abu Dhabi in

2011 and has been developing

its relationship with ADNOC.

“We believe that the potential

opportunities arising from the

eventual offshore relicensing

could be a good match to our

core competencies. We hope

that ADNOC understands this,”

said Doidge.

Maersk Oil Qatar (MOQ), operator of Qatar’s largest offshore oil field - Al Shaheen

NPCC, a world class EPC company provides total EPC solutions to both Offshore and Onshore in the Oil & Gas sector.With headquarters in Abu Dhabi, NPCC operates in the Arabian Gulf, South Asia and South East Asia, and has plans to expand its operations to Africa and the Caspian region. NPCC with its state-of-the-art fabrication facilities in Mussafah, Abu Dhabi spreads over an area of 1.3 million sq. meters. NPCC has the capacity to fabricate up to 100,000 MT of structural steel every year.

What would the UAE add to Maersk Oil’s portfolio?

Qatar represents almost half of our glob-al production so it is an im-portant part of our portfolio. Now the fact that there are potential op-portunities for us to secure field develop-ment and pro-duction proj-ects in Abu Dhabi, where we could de-ploy our core competencies in developing these diffi-cult and complex carbonate

We are good at identifying and deploying the right technologyRichard Doidge, Head of Maersk Oil’s business development in the Middle East

Denmark’s Maersk Oil is present in Qatar since 1992, where it has been

developing the Al Shaheen field. The company is now ready to invest in

new projects.

reservoirs, is a compelling reason to focus on business development here.

Traditionally, Maersk Oil is very technically focused. We are good at identi-fying the right technology for the right techni-cal challenge in terms of reser-voir develop-ment and then deploying and optimizing that technology.

In Qatar, we have developed the Al Sha-heen field since 1992, which is now a major producing

“We have

produced over

1.4 billion

barrels from

the Al Shaheen

field, with a

cumulative

investment of

more than $9

billion.”

asset at some 300,000 bar-rels per day. In total, we have produced over 1.4 bil-lion barrels from this field, with a cumulative invest-ment of more than $9 bil-lion. This is the kind of ex-perience and expertise we can offer Abu Dhabi. For example, there is scope for some reservoirs within the major fields to be more opti-mally developed, as well as some of the smaller fields and discoveries. Our tech-nical niche lies in being able to tackle the kind of reser-voirs and fields that are considered more marginal, and turning them into com-mercial success stories.

How is the current slump in oil prices affecting Maersk’s R&D?

We have pushed the lim-its of horizontal well tech-nology, not just to maxi-mize recovery and production, but also to drive down corresponding per barrel development costs. For example, by de-

veloping the Al Shaheen field with ultra-long hori-zontal wells, we have man-aged to limit the number of wells, and the number of wellhead platforms.

In Doha, Qatar, we are in-vesting $100 million over 10 years in the Maersk Oil Research & Technology Centre, with particular em-phasis on well technology, Enhanced Oil Recovery, and the offshore environ-ment and habitat of the Arabian Gulf. All this is in partnership with Qatar Pe-troleum, and focused on technological and environ-mental developments that can enhance success and sustainability. This charac-terizes the way we work: being a long-term partner and a responsible corpo-rate citizen. We believe this is another important aspect that we can bring to the UAE.

We have been developing our relationship with Abu Dhabi National Oil Com-pany (ADNOC) here for some time. Setting up an office in Abu Dhabi in 2011 was an important part of showing our long-term commitment.

We have been doing a lot to make sure that ADNOC and other important stake-holders here understand who we are, what we have done, how we have done it, why we are different, and how we could partner here to do something similar. Eventually we hope that all of this will come together to translate into real busi-ness opportunities for us.

“We have been

developing our

relationship with

Abu Dhabi National

Oil Company here

for some time.

Setting up an office

in Abu Dhabi

in 2011 was an

important part of

showing our long-

term commitment.”

What advantages do you bring to the UAE as a new entrant?

The Middle East is a vast resource base but gradually, producing here will be more de-manding and more technology will be needed to ensure maxi-mum recovery. Statoil has a strong track re-cord in IOR (In-creased Oil Recovery) and we can bring here our ex-perience, processes and technology.

In addition, Statoil has a

We can bring to the UAE our experience and technologyNeri Askland, Vice-President Middle East & Country Manager of Abu Dhabi at Statoil

One of the most prominent oil companies in the world specialized in off

shore, Norway’s Statoil is ready to invest in the UAE.

strong experience in CO2 capture and storage. Also, some countries have re-sources situated in biologi-

cally sensitive areas and Statoil has a long expe-rience in this field. Other countries are short of free gas, and alternative gas value chains and energy mix-es are needed. Statoil has also a

track record in establishing such value chains.

The UAE will balance our offshore portfolio. We are looking to establish a long

term, strategic partnership with Abu Dhabi. The Mid-dle East holds some of the low-est cost per bar-rel resources in the world, which means the re-gion can resist the slump in oil prices. Abu Dha-bi is a stable country for in-vestors, and it can contribute to strengthening our portfolio against geopolitical risk fluctuations in oil prices.

What are Statoil’s main achievements in EOR?

IOR and EOR are of ut-most importance for coun-tries and companies work-ing with mature resources. In Norway, Statoil has achieved recovery rates of over 70% in some of its old-est producing reservoirs.

Statoil is a technology driven energy company. We spend 50% of our R&D funds on R&D and 50% through contractors and suppliers. Statoil believes in a joint effort with suppliers and partners in developing the best technology to achieve ultimate recovery. Our technology encom-passes the whole oil and gas industry value chain from subsurface to trans-portation technologies.

How does Statoil’s use technology and proce-dures formanaging envi-ronmentally sensitive oil fields?

The Norwegian Conti-

nental Shelf has some of the strictest frame condi-

tions in the world. As the largest operator in Norway, Sta-toil has devel-oped a careful approach to en-sure no harm is made to the en-vironment. We have also devel-oped technolo-gies for environ-

mental monitoring, and we are leading in technologies that improve the capture and storage of CO2.

Carbon Capture Storage (CCS) is one of the most important technologies in the efforts to reduce carbon emissions. Our experience at Mongstad shows that it is necessary to further de-velop this technology and reduce costs.

The Abu Dhabi National Oil Company (ADNOC) is already deploying CO2 for EOR, a very interesting and important project. Sta-toil has a long experience in dealing with the CO2 value chain and we are ready to share any relevant insight with Abu Dhabi. The UAE will have to com-pete for capital with many other Statoil projects around the world. Why in-vest here?

Abu Dhabi represents a stable country for inves-tors, and I believe it can contribute to strengthening our portfolio towards geo-political risk as well as cre-ating economic robustness including oil price.

“Statoil has

developed

a careful

approach to

preserve the

environment.”

“We are

leaders in

technologies

that improve

the capture

and storage of

CO2.”

Low oil prices put pressure on the industry to grow petrochemical sectorPetrochemical sector buoys UAE oil industry

creation to continue despite of

the gas crunch,” Vezvaei said.

Because of Linde’s experience in

Europe, the company offers the

region key expertise to sustain

profitability and efficiency. “Linde

has had decades of experience

not only in design and execution

of technologies but also in

enhancement and optimization

of the process around it so

clients have a better return on

investment and an optimized

product slate. Linde’s innovative

solution, “Value-Cracking,” is

focused on the streams and the

process, to optimize the value

chain from molecules to money.”

Moving forward Vezvaei believes

that the sector’s competitiveness depends on how technology

is used. Linde is innovating to meet the challenges of the new

petrochemical landscape by implementing a target of “operational

excellence” along with a “different level of performance indicators

such as energy efficiency and sustainability,” Vezvaei said.

Along with decreasing feedstock, the region faces another

challenge as more global petrochemical production moves to the

US in the wake of the trend towards shale gas where the “shale

revolution” has stimulated a tremendous production of oil and

natural gas. Advances in oil and natural gas production technology,

such as hydraulic fracturing, are fueling this revolution. Alhajri

is confident that Borouge’s three world-scale ethane crackers in

Ruwais, which can “process ethane and turn it into ethylene in

a very competitive and cost effective way,” will allow the region

to retain its market leader share. There is no question that the

petrochemical landscape is changing, but Abu Dhabi is meeting

those challenges head-on with a proactive policy of technological

innovation, efficiency and sustainability, policies that will not only

benefit the UAE but are setting standards worldwide.

T hanks to its location, which gives the UAE access to the Middle

East, Africa and Asia, its established ties to Europe and East

Asia, and its substantial reserves of oil and gas, the petrochemi-

cals industry is the manufacturing segment in which Abu Dhabi

has the most apparent competitive advantages. It is not surprising

then that it has become one of the most important drivers of eco-

nomic diversification for the country. The availability of expertise

and advanced technology means that the country’s petrochemical

company, Borouge, continues to be a key player despite the region’s

changing landscape.

Established in 1998, Borouge grew its capacity by 700% in

the period from 2010 to 2014 and is expanding its markets for

polyolefin products, particularly in the Middle East, where there is a

demand for infrastructure materials such as industrial piping, wire

and cable systems. To meet growing demand in the Middle East

and Asia, Borouge has expanded its plant to create an additional

350,000 tons per year of low-density polyethylene. Working with

Borealis in Sweden, the company produces highly specialized and

super clean products for the wire and cable industry in order to

retain its market leader position. “With Borstar® and the Borlink™

Supercure technology, the product range of both companies is able

to meet the industry’s most stringent needs,” said Abdulaziz Alhajri,

CEO of Abu Dhabi Polymers Company, a subsidiary of Borouge.

Ali Vezvaei, President of Linde AG Engineering for the MENA

region, agrees that Borouge’s plant offers key advantages to the

sector due to its economies of scale and progressive technology.

Abu Dhabi’s Borouge 3, the world’s largest gas-based ethylene

cracker, is a solid pillar within Linde’s engineering portfolio, one

that has become a benchmark in the industry for safety thanks

to Linde’s in-house technologies. As the world’s biggest industrial

gas company with a history that goes back almost 140 years and

a dedicated technology arm, Linde Engineering is a key player in

Abu Dhabi’s petrochemical sector. “In the petrochemical sector, our

story goes beyond building complex plants. We are also focused

on developing innovative solutions in view of regional super

trends like natural gas availability and feed stock flexibility. Our

efforts in Borouge have been focused on developing commercially

viable solutions to allow the much needed regional growth and job

“We are focused on developing much needed regional growth despite the gas crunch.”

Ali Vezvaei President Middle East & North Africa, Linde

Borouge: renowned for housing the world’s largest ethane crackers in Ruwais, Abu Dhabi

As the Abu Dhabi International Petroleum Exhibition &

Conference (ADIPEC) is set to open on 9 November, the emirate

is getting ready to welcome some 85,000 conference goers. Hosted

by the Abu Dhabi National Oil Company (ADNOC), the show will

also gather 7,000 delegates and 2,000 exhibitors from more than

120 countries.

This type of global event and others have made of Abu Dhabi a

prime destination for MICE (meetings, incentives, conferencing,

exhibition) tourism. But the emirate is also

developing tourism as a whole, although

with a different view from its glitzy

neighbor, Dubai. Here, visitors are invited

to taste the proverbial Arabian hospitality

and discover a city that, although dotted

with skyscrapers, has kept and enhanced

its heritage.

Dubbed ‘The Arabian Jewel’, Abu

Dhabi is a discreetly spectacular city that

combines the grandeur of monuments

such as the immaculate Sheikh Zayed

Mosque, one of the largest in the world

with a capacity of 40,000, the much

talked about Saadiyat cultural island,

which will host the Louvre Abu Dhabi

and the Guggenheim, currently under

construction, but also the Abu Dhabi Heritage Village, which recreates

the pearling village it used to be up until the 1970s.

With the rise of Abu Dhabi as a tourism destination, combined

with the expansion of the international airport and the growth of

the national Etihad airline, the hospitality sector is thriving. The

number of hotel guests for the first four months of 2015 was up

by 20% compared to last year, according to the Abu Dhabi Tourism

and Culture Authority, which expects the total number to reach 3.9

million this year.

This upward trend has spurred home grown hotel chains such as

Jannah Hotels & Resorts, which owns three hotels in Abu Dhabi and two

in Dubai. Meaning both ‘paradise’ and ‘garden’ in Arabic, Jannah offers

its guests the genuine Arabian hospitality. “Bedouin hospitality is the very

soul of Jannah Hotels & Resorts,” says CEO Nehme Imad Darwiche,

adding that he has learned “the best lesson in hospitality while staying

with the noble Bedouins of the Liwa Desert in the Empty Quarter.”

A similar notion of genuine, heartfelt hospitality is put forward by

the General Manager of one of Abu Dhabi’s finest hotels, the Shangri-La

hotel Qaryat Al Beri. “Shangri-La is about luxury and only few can claim

this. But beyond, there is also a notion of sincerity and humility. The

atmosphere here is about creating a serene environment for our guests,

and engaging with them straight from our heart,” explains Thomas Guss,

General Manager of Shangri-La hotel, Qaryat Al Beri, Abu Dhabi.

But all the words are not enough to describe Bedouin hospitality, or

karam. It has been for centuries one of the pillars of life here. And you

just have to live it to believe it.

Luxury hoteliers in Abu Dhabi rise to the challenge of serving ADIPEC Taking hospitality to the next level

“Shangri-La is about luxury but also about engaging with our guests straight from our hearts.”

THOMAS GUSSGeneral ManagerShangri-La Hotel Qaryat Al Beri Abu Dhabi

Top chef delightShangri-La philosophy sets new standards

T his is the final touch that

confirms Abu Dhabi’s rise

as a top tourism destination:

world-class gastronomy. One

of the most brilliant chefs in

the world, Spain’s wunderkind

Sergi Arola (two Michelin

stars), recently opened his own

tapas restaurant at the former

Pearls & Caviar at the Shangri-

La, now named P&C by Sergi

Arola. “It will be a sharing menu

– tapas and variations on paella

with different kinds of rice. The

food will be rich in flavor and

quality. I have taken my favorite

We all have an inner

Shangri-La, don’t we?

A heavenly place where life

unfolds happily and peacefully,

forever youthful. Few know

that this mythical place situated

somewhere in the Himalayas

comes from a 1930s novel,

Lost Horizon, by British author

James Hilton.

The name was chosen by

the hotel chain for its first

luxury hotel in Singapore,

in 1971. Since then, it has

become synonymous with

utmost luxury. But not the

bling type, rather the most

refined, discreet and elegant

one. Today, Hong Kong-based

Shangri-La Hotels and Resorts

is Asia Pacific’s leading luxury

hotel group (over 38,000

rooms in total), regarded as

one of the world’s finest hotel

management companies. dishes from across the world to

create the menu,” he recently

declared in an interview with

the local press. The restaurant

P&C by Sergi Arola at Shangri-

La Qaryat Al Beri, Abu Dhabi,

is the Spanish chef’s first

venture in the Middle East.

Sheikh Zayed grand mosque seen from Shangri-La Hotel Qaryat Al Beri