The Middle East holds approximately 40 per cent of the world’s proven natural gas reserves, a fact that will support both the region’s growing need for cleaner domestic fuel as well as its exports to overseas markets, industry experts said at ADIPEC 2013.
This was among the key messages that emerged from the preliminary sessions of the Business Conference at ADIPEC 2013, a four day event focused on the gas and oil industry in the Middle East and the largest of its kind in the region.
Running from November 10 – 13, the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) was themed “Energy for all in a Changing World” and takes place at the Abu Dhabi National Exhibition Centre (ADNEC).
The challenges and opportunities around unconventional gas have increasingly come under the event’s spotlight, as significant gas reserves found in North America, the Middle East, and East Africa are rapidly redrawing the global energy map.
Session 3 on Day 1 of the event was entitled “Successful Development and Monetisation of New Global Frontiers: Gas”, where experts from leading oil and gas and service-related companies such as GASGO, Petrofac, Partex and Mitusi & Co. deliberated on emerging energy frontiers, with a special focus on the opportunities and challenges in the unconventional gas sector.
Speaking during this session, Abdul Aziz Al Ameri, CEO, Abu Dhabi Gas Industries Ltd. (GASCO), said,“The UAE is already in the process of exploring its unconventional natural gas deposits to boost output of fuel to meet rising domestic demand.
“Sour gas exploration is a big challenge, but because the need of tapping unconventional fuel is so essential, we are prepared to manage it in association with our partners.” HRH Prince Andrew, The Duke of York, delivered the opening address on the second day.
Applauding the decades-long partnership between the UAE and the UK in the field of energy, he said: “As the energy requirements of the world increase, the challenge and the opportunity before us is to look into a mix of conventional and unconventional energy sources.
It is encouraging that Abu Dhabi and ADIPEC are keen to invest in young people, as they are the ones who will need to take up the scientific and engineering skills required for the energy industry of tomorrow.”
The fourth session on Day 2 considered the question “Gas vs. Oil: which of the two markets has the most attractive opportunities?”
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Participants included senior executives from industry giants ZADCO, Weatherford, Schlumberger, Jogmec and OMV.
Addressing the audience, Ali Hassan Al Marzooqi, senior vice president, ZADCO presented updates on the Upper Zakum, the largest oil field in Abu Dhabi, including work on the creation of four artificial islands that will ultimately make space for more than a thousand new world-class wells.
He said: “Current production in Upper Zakum is around 585,000 BPOD, and this is projected to increase to 750,000 BOPD by 2017, and 1+ million BOPD by 2024.”
Elaborating on the advantages of creating the four artificial islands, which will be handed over in April 2014, he added: “The islands will accrue $5 billion capex savings in the short term, and savings of $40 to $50 billion in the long term. Most crucially, they are also environmentally superior, operationally efficient and sustainable.”
Session 5 of the Business Conference, entitled “Successful Development and Monetisation of New Global Frontiers: Oil” provided a forum for delegates views on the success factors crucial for new territories for exploration.
Speakers included Nick Maden,senior vice president International Exploration, Statoil, Omar Suwaina Al Suwaidi, deputy director, Strategy and Coordination, Abu Dhabi National Oil Company (ADNOC) and Andrew Yakubu, group managing director, Nigerian National Petroleum Company (NNPC) among others.
Maden of Statoil touched on the success factors behind exploration in new markets, noting that for successful exploration, a clear, robust strategy, cutting edge technology and a well-trained team of experts are indispensable. In addition, learning from failure and the preparation to take risks are of crucial importance.
Omar Suwaina Al Suwaidi, deputy director, strategy and coordination, Abu Dhabi National Oil Company (ADNOC), spoke about the different stages of growth ADNOC has undergone since establishment.
With regard to the exploration of new territories, he cited a focus on leadership and people development as well as the introduction of new, environmentally friendly practices as crucial success factors for future activities.
The 16th edition of ADIPEC, spread over 33,000 sq m played host to more than 1,400 oil and gas companies from around the world, expecting more than 50,000 visitors, with 256 international experts debating the present and future of the industry.
The event was supported by the Ministry of Energy, Abu Dhabi National Oil Company (ADNOC), and the Abu Dhabi Chamber.
