Page 42: of Offshore Engineer Magazine (Jan/Feb 2018)
Middle East and Caspian
EPIC activity unconventional gas resources. The ? rm is also looking into in-
Saudi Aramco has been driving novation, technology and collaboration with nine other oil and gas companies in ? nding low-emissions solutions to provide the highest amount of EPCI clean energy as part of its commitment to the $1 billion Oil and
Gas Climate Initiative (OGCI) investment fund.
activity in the Middle East in
EPCI awards 2017. IHS Markit’s Mirzi Moralde
From 2015 to November 2017, 18 offshore EPCI projects were awarded by Saudi Aramco, after the price of oil plummeted. takes a look at the region,
Coming in second to Saudi Aramco in the contracting front in the Middle East Gulf region are Abu Dhabi National Oil history and context for OE.
Co. (ADNOC) subsidiaries Abu Dhabi Marine Operating Co. (ADMA-OPCO), Zakum Development Co. (ZADCO) and Abu audi Arabia’s state-owned oil company, Saudi Aramco audi Arabia’s state-owned oil company, Saudi Aramco Dhabi Gas Industries (GASCO), which are now collectively has been leading the way in the tendering and contracting has been leading the way in the tendering and contracting known under one brand identity, ADNOC. It awarded seven
SS activities in the Middle East Gulf offshore construction activities in the Middle East Gulf offshore construction EPCI offshore contracts from 2014 until 2016, involving the market in the current low oil price environment. market in the current low oil price environment. Zakum, Nasr, Bu Haseer and Dalma ? elds. This is in line
Seven offshore engineering, procurement, construction and Seven offshore engineering, procurement, construction and with Abu Dhabi’s goal of increasing production capacity to installation (EPCI) projects were awarded by Saudi Aramco, installation (EPCI) projects were awarded by Saudi Aramco, 3.5 MMb/d by 2018, in anticipation of a future hike in energy between January and November 2017, covering the Safaniya, demand.
Zuluf, Marjan, Berri and Manifa oil ? elds, as well as the non- Looking back to 2H 2008, oil demand dropped at the onset associated Hasbah gas ? eld. It is the highest number of EPCI of the global ? nancial crisis, which also resulted in a low oil contracts awarded since the market downturn in 2H 2014. price environment until the global economy slowly showed
Saudi Aramco has the highest number of EPCI tenders signs of recovery by 2011, coupled with global disruption in released and projects awarded in 2017, which are under its supply in 2012, that brought back the oil price up again to over offshore Maintain Potential Programme (MPP), compared to $100/bbl in 1H 2014. Thereafter, the oil price began its sudden other operators in the region. Rolling out MPP will aid in sus- taining and maintaining Saudi Aramco’s production capac- ity, which is at maximum around 12 MMb/d. In 2016, Saudi
Aramco produced 10.5 MMb/d.
Urbanization in developing countries and rapid growth in global population in the decades ahead are expected to result in increased demand for reliable energy sources, like oil and gas, until a long-term transition to alternative energy sources to counter climate change could possibly meet a portion of fu- ture energy needs. Total primary energy demand is expected to increase by 35% in the period to 2040, and oil is expected to have the largest share in the energy mix in the forecast period, based on the Organization of the Petroleum Exporting
Countries (OPEC) World Oil Outlook 2017.
Through the implementation of the MPP, Saudi Aramco will be able to readily respond to demand. It has earmarked around
US$300 billion over the coming decade to secure its eminent position. A part of the investment plan aims to sustain Saudi
Aramco’s spare oil production capacity as well as to carry out exploration and production focused on conventional and oedigital.com
January 2018 | OE 44 044_OE0118_Geo1_IHS.indd 44 12/27/17 8:14 PM