Colin Chapman, President, Euro Petroleum Consultants (EPC)
How do the Oil & Gas Middle East and Refining and Petrochemicals Middle East Awards benefit the industry?
They give recognition to the many individuals involved at all levels in the different companies in the region for their efforts, ideas and successes during the year. It is also a real opportunity to gain insight into what other companies have achieved in the different sectors.
This year we have introduced two new downstream categories: Downstream Project of the Year and Plastics Innovation of the Year. Why is recognition in these segments so important?
Downstream Project of the Year is a very important category because we are living in challenging times and all investment projects have to be carefully considered to take into account the present market conditions. When selecting the winner, we should consider the impact such a project will have on the business. It will be important to see how the project was implemented as compared to the initial plan, and so on.
Plastics Innovation of the Year is also a very important category. Competition between petrochemical producers, in this region and globally, is always very fierce, and this is why companies that can differentiate themselves by producing niche products that fit the market demands will have a real advantage.
We have also introduced an award for Sustainability Initiative of the Year, which is open to both downstream and upstream entries. Why is the topic of sustainability so important for the GCC’s oil and gas industry?
I think this is very important. One real example of this is in the area of bunker fuels. Regulations are changing and the market is becoming limited now for high-sulphur bunker fuels. This means that refiners will need to upgrade their residues to comply with the new specifications. This will benefit the environment and should also improve the economics of the refinery.
Last year you sponsored our Operational Excellence category. Do you expect Opex to remain a key trend?
If companies wish to remain competitive it is essential that they implement continuous improvement programmes. Areas to focus on are people and asset management, systems and processes, and technology. We consider it very important to train staff continuously to better understand the new systems and technologies installed in new or revamped facilities. We also consider safety to be of paramount importance and this should be an integral part of all continuous improvement programmes.
What would you say makes for a winning entry?
Projects that make a difference to the company and the wider industry. Such projects may be big or small but should have a real impact on profitability and also on the working environment.
Abhay Bhargava
How do these awards benefit the region’s industry?
Participants attribute high value to being recognised for their performance, since this is a step above being lauded by customers. The Oil & Gas and Refining & Petrochemicals Middle East Awards are a vital motivator for the industry. They also provide a benchmarking platform for the participants.
Why are this year’s new categories – Downstream Project of the Year, Plastics Innovation of the Year, and Sustainability Initiative of the Year – so important?
As crude oil prices settle into a relatively low price bracket, we are seeing an increased focus on gaining more value from each barrel of oil through refining and processing. This can be seen in the move by the GCC oil majors towards setting up downstream complexes that can provide added revenue. Given the industry shift towards the downstream side, these categories reflect an alignment of the awards with the changing shape of the industry.
Looking at this from another perspective, the downstream industry is highly commoditised and differentiation is not so easily attainable. Awards are a great way for participants to showcase their abilities and achievements to the rest of the industry.
In addition, sustainability is here to stay and is gaining immense traction globally. However, this is still not holding the level of importance that it ideally should. The award for sustainability provides recognition to the organisations that have gone that extra mile to reduce their impact on the environment. The recognition, in turn, motivates others to stretch themselves to do more than the industry norm.
The O&GME and R&PME Awards also acknowledge the localisation efforts of energy industry players through the ICV Strategy of the Year category. How important is it for the regional energy sector to train and employ the local workforce?
In my opinion, localisation as a definition is incomplete if we look at it only from an employment/ services point of view. To see it in a complete manner, it is vital to also take into account manufacturing while considering awards for localisation/ ICV. In this context, localisation is critical for the region, which has traditionally been catering to the majority of procurement needs through imports.
This formula made sense when the industrialisation levels in the region were low. In the current scenario, the local population has grown (especially in the age bracket that is eligible to work), and industrialisation has gained a strong foothold (especially in sectors like metals and heavy manufacturing). So, the region now has a base that it can capitalise on, while emphasising localisation. One of the key benefits is attaining higher skills for the local workforce, in turn increasing the GDP contribution per capita, and also attaining higher satisfaction within the population (on account of attaining higher capabilities and contributing more). The other benefit is of reducing the risks that come from dependency on imports, like erratic supplies and fluctuations in prices that cannot be controlled or predicted. The localisation initiatives provide for greater predictability and control over procurement, which is a critical benefit in planning and operating assets that are of national importance.
What advice would you give to those hoping to secure an award?
A winning entry would be one that reflects a clear differentiation over the rest of the industry and, of course, other contenders. It would also need to be one that reflects achievements, processes, attitudes, and efforts to go beyond the norm. My advice would be to try to clearly showcase what the norm was, and how the organisation – or a specific individual – strived to go beyond it. This should be coupled with an illustration of the impact or end-result attained, and how this was an improvement. It is critical to showcase the effort-impact combination.
Vinodkumar Raghothamarao
Why is it important to celebrate success in the oil and gas and refining and petrochemicals industries?
The O&GME and R&PME Awards act as a springboard platform to recognise the achievements of the various players within the energy industry. It helps the industry players to make better-informed decisions and also benchmark themselves against their peers and competitors, and raise the bar in the process. It also promotes a healthy and competitive collaboration culture.
It is imperative that deserving companies and teams are recognised and acknowledged for their achievements despite the turbulence and challenges in the current energy market. This recognition will pave the way for motivation and drive a hunger for excellence in the industry, thereby raising the overall competitiveness of the industry.
This year we introduced two new downstream categories: Downstream Project of the Year and Plastics Innovation of the Year. Why is recognition important in these sectors?
With the momentum of refinery and petrochemicals gaining upward traction in the GCC, it is vital to recognise downstream projects. In addition, rising demand for low-grade fuels and improved operational efficiency have led to an uptick in greenfield refinery projects, with a focus on plant modernisation and integration. So this downstream project category helps to separate the wheat from the chaff.
Companies that have innovation as the core pillar in their strategy are the ones that prove to be the bellwether of the industry in the future. Plastics have steadily generated progress by saving energy and other valuable resources through their attributes of lightness and insulation. Continuous innovation, fuelling international competitiveness and sustainable growth, is the key success driver for the plastics industry, so it is necessary to recognise this.
We have introduced a Sustainability Initiative of the Year award, which is open to both downstream and upstream entrants. As regulations to make businesses more sustainable and reduce their impact on the environment become more stringent, do you view the topic as particularly important for the GCC’s oil and gas industry?
Sustainability, the industry’s buzzword, has found its way across industries and geographies, especially with today’s companies focusing on the triple bottom line. Within the oil and gas and refining industries, sustainability has become the crux of the business strategy. The goal of reducing environmental emission footprints coupled with the task of developing low-carbon energy sources and at the same time promoting efficiency in energy management, have all led to sustainability being embraced as a key initiative of strategic importance to the GCC oil, gas and refining industries. In order to stay relevant, the need of the hour for the industry is to embrace sustainability initiatives.
The O&GME and R&PME Awards acknowledge the localisation efforts of energy industry players – the ICV Strategy of theYear category is a testament to this. How important do you believe training and employing the local workforce is for the regional energy sector?
In-country value strategy is of utmost importance for the regional energy sector for a couple of reasons. First and foremost, there is the advantage of home-grown talent, which can be tapped to bridge the workforce gap by proper training and empowerment, so that there is no need to look elsewhere for talent. Secondly, it goes way beyond tapping local employees, by utilising local services and products for executing operations within the regional energy sector. This will definitely help local SMEs and MSMEs get business, create jobs and propel the economy forward.
What was it that prompted you to be part of the jury for our awards?
Having worked in the energy industry across the globe as a management and strategy consultant for more than 13 years, I am pleased to be able to tap my industry knowledge and consulting experience to help assess, evaluate and benchmark the award nominees with an independent and unbiased view, and also share my thought-leadership during the process. In addition, in the past, I have attended the Oil & Gas Middle East and Refining & Petrochemicals Middle East Awards ceremony and it is a real pleasure to be associated with it, especially this time, as a jury member.
Nizar Jichi
How do the Oil & Gas Middle East and Refining and Petrochemicals Middle East Awards benefit the industry?
The energy sector, including oil and gas, has been a principal driving force for economies across the world. The UAE possesses nearly 10% of the world’s total hydrocarbon reserves, and oil and gas revenue will continue to fuel both national economic growth and social infrastructure development for the medium term. Therefore, it is apt that these awards are held to encourage and reward achievements in this sector.
Why is it important to celebrate success in our industry?
It is important to celebrate success in any industry and not just in the oil and gas sector. These are challenging times for the global economy and several industries – whether financial services, real estate, retail or energy – have fought some very tough battles before they were able to bounce back. I believe this calls for some introspection and a bit of celebration.
This year we’ve introduced two new, exclusively downstream categories: Downstream Project of the Year and Plastics Innovation of the Year. What makes recognition in these sectors so important?
I understand that the Downstream Project of the Year will award the most ambitious project in the refining and petrochemical industries in the GCC, while the Plastic Innovation of the Year award recognises innovation in new product development and application in the plastics sector in the region and globally. I believe both of these awards recognise long-term sustainable development in the region.
We have also introduced a Sustainability Initiative of the Year award, which is open to both downstream and upstream entries. As regulations to make businesses more sustainable while reducing their impact on the environment become ever more stringent, why do you believe that the topic is a particularly important one for the GCC’s oil and gas industries?
An increasing number of organisations in the Lower Gulf are making sustainability a key part of their business agenda – and a recently published report from KPMG on the subject affirmed this. I believe that the topic is of great importance for the GCC’s oil and gas industry due to regulatory requirements, brand enhancement, risk management and cost-reduction considerations.
The O&GME and R&PME Awards also acknowledge the localisation efforts of energy industry players. The ICV strategy of the year category is testament to this. How important do you think it is for the regional energy sector to train and employ the local workforce?
It is crucial to motivate the local workforce in the public and private sectors. For instance, KPMG’s on-the-job training programmes are designed to address the Emiratisation agenda, highlighting our commitment to work closely with the community and support the UAE government’s nationalisation programme. I believe it is as relevant to the regional energy sector – especially as it is one of the key contributors for economic growth in the region.
The oil and gas industry has experienced some significant challenges in the past couple of years. With the $100 barrel of crude now seemingly history, what challenges and opportunities are the industry likely to see going forward?
In terms of challenges, there will be reduction of capital expenditures, loss of talent, and loss of cash liquidity. In terms of opportunities, there will be lots of focus on doing work more efficiently and on cost optimisations, such as IT transformation and sustainability.
Richard Devine
How do the Oil & Gas Middle East and Refining & Petrochemicals Middle East Awards benefit the industry?
Oil & Gas Middle East and Refining & Petrochemicals Middle East are important publications and the industry takes note of what they say. What I like about the awards is that they really demonstrate the depth and breadth of issues facing the sector. It is great to see an awards programme that reflects all of the things that make the industry tick, and for achievements in innovation, HSE and sustainability all to be recognised. I think one of the key ways in which the awards benefit the industry is by showing its focus goes way beyond the oil price.
Why do you feel it is important to celebrate success in our industry?
It is difficult to overestimate the importance of oil and gas globally. And the industry has been responsible for most of the Middle East’s economic development and growth. Hydrocarbons play a major part in sustaining the lifestyle so many people enjoy, and yet the industry is more often subject to criticism than praise. The awards are an opportunity to highlight the positive contributions within the industry, and a chance to celebrate the accomplishments of unsung individuals that would otherwise go unmarked.
This year we introduced two new, exclusively downstream categories: Downstream Project of the Year and Plastics Innovation of the Year. Why do you believe recognition in these sectors is so important?
Downstream projects are important for delivering on GCC governments’ employment goals. In addition, the market for oil and its by-products is not growing at the moment and the Middle East faces increasing competition to maintain its market share. Recognising the development and innovation in these sectors is very important as a result.
We have also introduced a Sustainability Initiative of the Year award, which is open to both downstream and upstream entries. As regulations to make businesses more sustainable while reducing their impact on the environment become ever more stringent, why do you feel this topic is a particularly important one for the GCC’s oil and gas industry?
The topic is a vital one. One of the most important policy goals for governments across the GCC is inter-generational equity and, in particular, ensuring that the windfalls from oil and gas create a positive and lasting legacy for the future. This is also the theme of sustainability, which is about meeting the needs of the present without compromising the ability of future societies to meet their own needs. Any award that recognises and incentivises leadership in sustainable initiatives is timely and welcome.
The O&GME and R&PME Awards seek to acknowledge the localisation efforts of energy industry players, and the ICV Strategy of the Year category is a testament to this. How important do you think it is for the regional energy sector to train and employ the local workforce?
People, not oil and gas, are the Middle East’s most valuable resource. Developing and training the local workforce is crucial. Moreover, an ICV strategy that is well thought-out and implemented benefits the local workforce – and the companies making that investment – in terms of technology and skills transfer, productivity, and efficiency.
What prompted you to want to be part of the jury for our awards?
I have dedicated my entire career to advising E&P companies, oilfield service companies and governments. I have focused on the Middle East throughout and have been fortunate enough to have spent the last 11 years living in the UAE. It is a great opportunity and a privilege to be part of the jury, and I am excited to deliberate over who is best-in-class. I expect that the quality of submissions this year will be exceptional.
