With around 85% of global oil & gas reserves being under the direct control of NOC’s, Martin Bachmann, head of exploration and production at Honeywell believes that they will increasingly look to the IOCs for innovative technologies to increase the efficiency of their operations.
“It used to be financial strength that was the entry ticket for the IOCs to do business with the NOCs, today it is technological competence and the ability to form comprehensive stable partnerships,” said Bachmann at the 5th Gulf Intelligence conference in Abu Dhabi.
A report published by the International Energy Agency shows energy consumption in the Middle East has tripled in the last 20 years to 640 million tons in 2011. That figure could rise again to 900 million tons by 2030, raising the question of how the region will cope with the increased demand.
In the United Arab Emirates, Wintershall is working with Adnoc on the technical appraisal of the sour gas and condensate field at Shuwaihat.
In Libya, the company has recently completed the building of a new transportation pipeline.
“Never before had a foreign operator carried out pipeline construction for the Libyan NOC,” said Bachmann.
Bachmann believes that a culture of mutual success will prevail should the NOCs seek to maximise their reserves by utilising the technological advances made by the IOCs.
“NOCs have some fields they can only make limited use of with conventional technology. We need partnerships that create win-win situations for NOCs and IOCs,” said Bachmann.
