The 16th Society of Petroleum Engineers (SPE) Middle East Oil and Gas Show (MEOS 2009) was welcomed to the Kingdom of Bahrain last month. Although only coming in eleventh place for proven oil reserves in the Middle East (CIA World Factbook, 2007), its close proximity to GCC countries, such as Saudi Arabia, Qatar and the UAE, makes it an ideal location for the industry to congregate.
With over 290 exhibitors from 35 countries covering 14000m2 of the Bahrain International Exhibition Centre, under the patronage of His Highness Shaikh Khalifa bin Salman Al Khalifa, Prime Minister of the Kingdom of Bahrain, the event was all set to be a fulcrum of industry activity.
The theme for MEOS 2009 was ‘People, Demand, Technology: Bridging the Gaps’, and included for the first time a Women’s Workshop, focusing on issues facing female professionals and increasing female positions in the energy sector. There was also a dedicated session looking at the future outlook of the energy industry, featuring speakers from many of the IOCs and local NOCs.
“Since its inception in 1979, the MEOS series has grown rapidly in size, global representation and importance, and at MEOS 2009 we welcome the participation of over 290 companies from 35 countries. We are also honoured by the presence of all the GCC’s major national oil companies,” says Dr Abdul-Hussein bin Ali Mirza, Bahrain’s Minister of Oil and Gas Affairs and chairman of the National Gas Authority (NOGA).
“MEOS 2009 offers a business platform for experts, researchers and leaders of industry to discuss and share technical and industrial information and contributes to the growth of our industry and the development of our resources,” adds Leo Roodhart, president of SPE.
“Building on our past successes, the SPE will definately continue to offer more high quality events that will benefit its members and all the professionals drawn from the oil and gas, and associated supporting industries,” concluded Roodhart.
Energy Industries Council (EIC)
The United Kingdom’s trade association for companies in the energy industry, the Energy Industries Council (EIC), was representing companies attending under the British Pavilion at this year’s MEOS.
With the UK economy continuing to falter at present, and depleting reserves in the UK’s North Sea, it was a good opportunity to gain insight into how the EIC’s member companies were faring.
“We have 585 companies, with at least 220 of those operating in the Middle East and a core of about 20 more in different stages of setting up out here. We provide them with information to help them make the best decision on which route and model to take,” states Terry Willis, managing director, EIC.
“I think there is a lot of pain in the UK, but I think this pain is being dissipated by recognising there is a harvest to be ploughed here in the Middle East, and you can’t plough a field from 3000 miles away.”
When it comes to supporting the British companies who wish to move their business into the Middle East market, Willis is quick to assert that the EIC’s role is not to make suggestions on where and how to do such a task, but to provide all the options and the benefits each provides.
“Nobody knows your business better than you, so I’m not going to tell you the best way to do something. All I can say is here are the options; whether it is free zones, logistical location, business partnerships or customer location, there are ways of doing things to suit each business and business model,” he explains.
“This is where we can give them guidance, by visiting locations, and compiling information – we are like a counselling service.”
Saudi Arabian Chevron
The Saudi arm of US major Chevron was on hand to tell Oil and Gas Middle East all about their latest US$340 million steam injection project being conducted in conjunction with the Kuwait Gulf Oil Company (KGOC).
The ongoing large scale pilot (LSP) – Chevron’s Steamflood Project – is being conducted at the onshore Partitioned Neutral Zone (PNZ) that lies between Saudi Arabia and Kuwait.
“The Steamflood Project in the PNZ, jointly operated by Saudi Arabian Chevron and KGOC, is the largest steamflood project in the world targeting carbonate reservoirs. We hope to have it fully operational in the second quarter of 2009,” said Falah Al-Yami, superintendent for technical support, LSP, Saudi Arabian Chevron.
“As a company Chevron is leading the world in steamflood thermo EOR [enhanced oil recovery], which specifically target heavy oils with APIs of 8-12. Viscous oils such as these cannot be lifted by conventional means, so we inject the steam into the ground, reducing the oils viscosity and allowing it to be lifted.”
Depending on the success of the LSP, such steamflood projects in carbonate reservoirs could be expected within five to seven years time. Al-Yami and the company are very confident that the pilot will prove to be just that, and the region may reap the rewards in due course.
The project consists of 57 wells: 25 producers, 16 injectors and 16 observation wells, found at the PNZ’s Wafra field.
According to Al-Yami, the recovery benefits of the steamflood EOR could be substantial.
“We have tremendous oil in place, with about 17 billion barrels. Up to now, our recovery from the reservoir has been at about 2.5%, and will reach 5% if we continue operating as normal. However, with steamflood we can lift this up to 60% – a big prize if this is a success,” he says.
“Based from the results from the initial small scale tests we think there is many reasons to be optimistic. If we can show how to do this in the carbonate reservoirs, it will have huge implications across the Middle East, with hundreds or even thousands of additional productive oil wells.”
COLFAX
The secondary role usually proscribed to positive displacement pumps is set to change, according to the US firm Colfax – the world’s largest provider of rotary positive displacement pumps.
“Historically, positive displacement pumps have been looked as a secondary role, but they have now become much more visible and accepted as process pumps. We have just recently formed the oil and gas team to provide more tactical and strategic focus to being able to promote our products into the crude oil market – particularly the Middle East,” says Mike Moore, director of global oil and gas marketing, Colfax.
In terms of the technology, Moore firmly believes that Colfax’s range of pumps can deliver greater versatility and efficiency to a customer’s pumping needs.
“With this type of pump used in upstream the technology is there for handling multi-phase fluids, where we have a three phase flow. We are able to take this from the wellhead through one piping system, boosting it back to a central processing facility in lieu of having to do separation and having two separate networks, eliminating the need for flaring,” he explains.
“There is a tendency to perpetuate designs in this industry because of the comfort zone factor. In reality designs become static and new technologies are ignores, leaving the customer with equipment that costs more to operate, could be much more complicated and creates more downtime.”
The message the company will now put time and effort into spreading across the region is the benefits their range of rotary positive displacement pumps can provide.
“The companies that tend to get the message loud and clear are the ones who have been in the industry the longest, who have been working with centrifugal pumps for years. We now have presentations planned for the United Arab Emirates and Kuwait, and later for Saudi Arabia, and it is going to be a continuing process to stimulate activity and build our brand here in the Middle East,” concludes Moore.
T3 Energy Services
US-based T3 Energy Services, the pressure control, wellhead and production systems, and pipeline valve specialists, are focused at the moment on getting Saudi Aramco approval for their range of service chokes and blowout preventers (BOP).
“We are doing a lot of work to get approval in the next two weeks from Saudi Aramco on two new chokes we have developed and tested. On top of that we have been developing our BOP, with equally stringent tests from Aramco, which has taken two years of research and development,” says Bill Crighton, Middle East sales and business development manager for T3.
“The significance of this work is recognition within the GCC region. Saudi Aramco are the biggest oil company in the world, and there is no bigger market than there is for us here.”
“Ultimately, the long term plan for T3 is to build on the fact we have a service facility and joint venture company in Dubai. We are looking at developing centres in Kuwait, Oman and Saudi Arabia and stock facilities throughout the region – the aim is very much to be thought of as a regional company,” explains Crighton.
Calder
Among the guests at the Calder stand, the UK-based high pressure pump service provider, was His Highness Prince Andrew, the Duke of York, on his visit to MEOS 2009 and in particular the British Pavilion at this year’s event.
It was a highlight for the company, who were promoting their successful deployment of the high pressure injection well pump in Kuwait.
“What led us to the Middle East was a project we did with Kuwait Oil Company (KOC) two years ago, which has been hugely successful. It is the highest pressure injection well in the Middle East and the second highest in the world measuring at 6000 psi,” says Ian Calder-Potts, chairman, Calder Pressure Systems.
“What makes this company unique is the type of pump used. It is made by Hammelmann, a German company who are the Mercedes Benz of the pump industry,” he continues.
“The pumps are hermetically sealed and can handle up to 60 000 psi. They are vertical reciprocating pumps and our sealed using metal, completely eradicating any leaking. With these products we are looking for opportunities in the Middle East, and we have identified some key areas, including Saudi Arabia.”
