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XRG, ADNOC’s energy investment company, and bp, have established a new regional gas platform, Arcius Energy, which will initially focus on gas development in Egypt

Arcius Energy will focus on natural gas growth to meet growing regional demand, while supporting Egyptian energy security and economic development. It includes the Shorouk concession (bp 10% interest), which contains the producing Zohr field; North Damietta concession (bp 100% interest), which contains the producing Atoll field; and North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

Arcius Energy is 51% owned by bp and 49% by XRG and will be headed by Naser Saif Al Yafei, from ADNOC, who was appointed as chief executive officer while Katerina Papalexandri, from bp, was appointed as chief financial officer.

Exciting new chapter

H.E. Dr. Sultan Ahmed Al Jaber, executive chairman of XRG said, “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp, and fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand. This progressive partnership will unlock a lower-carbon transition fuel to build a future where smarter, cleaner and more affordable energy is accessible for Egypt and the world."

Murray Auchincloss, chief executive of bp, added, “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region. Together, we can continue to build on bp’s 60 years of technical expertise and delivery of safe and efficient operations in Egypt – a hub for new opportunities to build out a highly competitive gas portfolio in the region.”

 bp, along with its partners, currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.

ADNOC Gas plc has awarded three contracts worth US$2.1bn for an LNG pre-conditioning plant (LPP), compression facilities and transmission pipelines to supply feedstock to the Ruwais LNG Project

The LPP and compression facilities will be located within ADNOC Gas’ Habshan 5 plant, part of one of the world’s largest integrated gas processing complexes. The five plants of the Habshan Complex have a combined capacity to process 6.1bn standard cubic feet of gas per day. The newly awarded transmission pipelines will connect the Habshan Complex with the Ruwais LNG facility.

A contract valued at US$1.24bn for the LPP, was awarded to a consortium consisting of Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet. A US$514mn contract for transmission pipelines was awarded to the China Petroleum Pipeline Engineering Company, while Petrofac Emirates LLC scooped a US$335mn contract to develop the new compression facilities. The third EPC contract awarded to Petrofac at the Habshan Complex, this includes the EPC of two gas compressor trains, associated utilities and power systems.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said, “These contract awards reaffirm ADNOC Gas’ commitment to delivering sustainable growth and maximising shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player.”

ADNOC Gas is developing the Ruwais LNG project on behalf of ADNOC. When fully operational, the Ruwais LNG plant will more than double ADNOC Gas’ current LNG production capacity to more than 15 million tonnes per annum (mtpa). The export facility will feature two liquefaction trains, each with a processing capacity of 4.8 mtpa, powered by clean grid electricity.

Upon completion, Ruwais LNG will be one of the lowest-carbon intensity LNG plants in the world, utilising artificial intelligence and other advanced digital technologies to enhance safety, minimise emissions and drive efficiency. The project is set to advance ADNOC’s LNG leadership ambitions, with more than 7MTPA of its production capacity already committed to international customers under long-term agreements, as well as furthering its energy transition objectives.

SAMSUNG E&A has been awarded a contract with Ras Laffan Petrochemicals (RLP) for the Qatar RLP Ethylene Storage Plant, to be executed as a joint venture with CTCI of Taiwan

The total contract amount of the project is around US$418mn, with SAMSUNG E&A's share being about US$215mn, and the contract period is estimated to be 34 months. The client, Ras Laffan Petrochemicals, is a joint venture between Qatar Energy, Qatar's state-run energy company, and a subsidiary of Chevron Phillips Chemical Company LLC.

This project includes the construction of a 30,000-metric-ton ethylene storage facilities and associated utility infrastructure at an industrial complex in Ras Laffan, 80 km north of Doha, Qatar's capital. It is located within the same complex as the RLP ethylene project awarded to SAMSUNG E&A and CTCI in 2023 and is currently under execution. Its purpose is to store ethylene during the plant's maintenance and repair periods, ensuring availability in case of an emergency, while allowing flexible handling of ethylene from both upstream and dowonstream suppliers. SAMSUNG E&A is responsible for the engineering, procurement, and construction (EPC) of key equipment, including 30,000 metric ton storage tanks, compressors, and pumps.

The joint venture plans to deliver exceptional schedule management for the client by applying innovative strategies in project execution. This includes a pioneering approach to procurement, with key equipment and materials being purchased before the engineering process is finalised.

Hong Namkoong, president and CEO of SAMSUNG E&A said, “As we have secured a linked order with Ras Laffan Petrochemicals, we will successfully carry out the project based on our performance experience and innovation strategy and strengthen our position in the Qatari market.”

Michael Yang, chairman of CTCI, said, “We appreciate Ras Laffan Petrochemicals’ continued trust in offering this opportunity to our team. We will continue to deliver high-quality engineering and safety management to ensure the project is completed on time and up to standard.”

Industry leaders such as Shell, and ExxonMobil are using VR simulations to train their employees in critical operations. This provides a highly safe and cost-efficient approach to introduce personnel to a new facility in both offshore and onshore terrains, says GlobalData, a leading data and analytics company.

GlobalData has released its strategic intelligence report, titled, 'Virtual Reality in Oil and Gas' that looks into areas of application of virtual reality in the industry, from rigs and pipelines to refineries. Oil and companies are now investing on training modules for the workforce and visualising the asset under consideration for planning and decision making.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, said, "VR enhances the operational safety through immersive training programmes. It can help develop safety procedures at production facilities to address smaller accidents as well as for emergency response."

Leading oil and gas companies such as Shell, bp, Chevron, and ExxonMobil, have adopted VR to train as well as aid regular workflows in operations. It offers a cost-effective means to acclimatise the workforce to various environments through immersive training programmes. It also offers safe environment for the workforce to understand the workflows by participating in virtual walk-throughs, without being in proximity of heavy industrial equipment.

Puranik continues, “Industry technicians work in hazardous environments, such as offshore rigs or at a densely packed equipment maze in a refinery. VR can be used to relay important information and instructions to the technician onsite, without the need to fly out experts to that location or carrying detailed instruction manuals for referencing.”

VR plays a key role in the digital twin set up, helping companies recreate scenarios through detailed simulations. During planning and development, the collaborating teams can share information using VR to simulate various scenarios. It is useful in optimizing equipment performance and maximizing the asset life. Digital twins help to design workflows and identify bottlenecks to optimize a plant’s performance. Twins also help to create a 3D visualization of the seismic data using VR simulations.

Puranik concludes: “Various aspects of a production platform can be modeled through VR simulations to enhance the understanding of personnel for on-field tasks. They can simulate the processes using VR before implementing on the operational floor. It thus reduces the scope for human errors during critical operations. Besides, designers and engineers can better visualize the layout under development using VR technology. This can potentially help to improve designs, and carefully plan its execution to optimize the project costs.”

Oil Review Middle East hosted a very well-attended webinar on 20 November on the future of offshore operations, in association with SAFEEN Group, part of AD Ports Group

The webinar explored the latest trends and challenges in the rapidly evolving world of offshore operations, focusing on groundbreaking innovations that are driving sustainable and efficient practices. In particular, it highlighted SAFEEN Green – a revolutionary unmanned surface vessel (USV), setting new benchmarks for sustainable and efficient maritime operations.

Erik Tonne, MD and head of Market Analysis at Clarksons, gave an overview of the offshore market, highlighting that current oil price levels are supportive for offshore developments, and global offshore capex is increasing strongly. The Middle East region will see significant capex increase over the coming years, with the need for rigs and vessels likely to remain high. Offshore wind is also seeing increased spending. Global rig activity is growing, while the subsea EPC backlog has never been higher, with regional EPC contracts seeing very high activity. Tonne forecast that demand for subsea vessels and other support vessels will continue to increase.

Tareq Abdulla Al Marzooqi, CEO SAFEEN Subsea, AD Ports Group, introduced SAFEEN Subsea, a joint venture with NMDC, which offers reliable and innovative survey, subsea and offshore solutions to support major offshore and EPC projects across the region. He highlighted the company’s commitment to sustainability, internationalisation and local content, and how it is a hub for innovations and new ideas, taking conceptual designs and converting them to commercial projects. A key project is SAFEEN Green, which offers an optimised inspection and survey solution.

Tareq Al Marzooqi and Ronald J Kraft, CTO, Sovereign Global Solutions ME and RC Dock Engineering BV. outlined the benefits and capabilities of SAFEEN Green as compared with commercial vessels, in terms of safety, efficiency, profitability and sustainability. It is 30-40% more efficient through the use of advanced technologies, provides a safer working environment given it is operated 24/7 remotely from a control centre, and offers swappable payload capacity. Vessels are containerised and can be transported easily to other regions. In terms of fuel consumption, the vessel is environment-friendly and highly competitive, reducing emissions by 90% compared with conventional vessels, with the ability to operate on 100% biofuel.

As for future plans, SAFEEN Green 2.0 is under development, which will be capable of carrying two inspection work-class ROVs simultaneously. A priority will be to collect data to create functional AI models for vessels and operations, with the first agent-controlled payload systems in prospect by around 2027.

To view the webinar, go to https://alaincharles.zoom.us/rec/share/mNHjZhAhQzn1sPzmFWZCgrq7_SckfLRcSb4w81I7aVlokO9sgHM_zVeOqgN3DgJS.bO4OIRqNeFP09SPu?startTime=1732095689000

Miro Cavkov, technical director – downstream & energy advisory, Euro Petroleum Consultants, addresses some of the safety challenges associated with hydrogen development

Hydrogen is widely regarded as the "fuel of the future," playing a critical role in global decarbonisation efforts. As industries transition toward cleaner energy systems, hydrogen is emerging as a versatile and efficient alternative fuel source. However, while hydrogen offers immense potential to transform energy systems, its unique properties require a heightened focus on safety during production, storage, and transportation.

Understanding and addressing these safety challenges are critical to realising the full potential of hydrogen in a sustainable and secure energy ecosystem.

Hydrogen is the most abundant chemical molecule in the universe, and as a fuel, it possesses many desirable traits: it is nontoxic, colourless, odorless, and highly combustible, enabling it to serve as a clean and efficient energy source. However, these same properties pose challenges when it comes to handling, storing, and transporting hydrogen safely. Its flammability, extremely low density, and small molecular size make it prone to leaks, which can lead to safety hazards if not properly managed.

In its natural state, hydrogen is relatively benign and is typically produced at low pressures (20–30 bar) with minimal associated risks. However, the real safety concerns arise post-production when hydrogen must be stored and transported. To ensure efficiency and profitability, hydrogen must often be compressed or liquefied, which introduces significant technical and logistical challenges.

As hydrogen becomes a key energy carrier for industrial and commercial applications, safe and effective storage and transport mechanisms are crucial. These methods vary depending on hydrogen's physical state (gaseous, liquid, or chemically bound) and the specific requirements of end users.

As the demand for hydrogen grows, technological innovations are emerging to address the safety and operational challenges associated with its use. For instance, advancements in materials science are enabling the development of hydrogen-compatible pipelines, storage tanks, and compression systems. Digital tools, such as real-time leak detection sensors and predictive maintenance algorithms, are further enhancing safety in hydrogen infrastructure.

Hydrogen safety is not a one-size-fits-all challenge. Each industry, company, and application must evaluate the most suitable approach based on specific operational requirements and risk profiles. Achieving safe and sustainable hydrogen systems will require a combination of innovative technologies, stringent safety standards, and cross-industry collaboration.

By addressing these challenges proactively, hydrogen can fulfill its potential as a cornerstone of the global energy transition, enabling industries to reduce their carbon footprint while meeting growing energy demands.

You can read the full article in the latest edition of Oil Review Middle East, at https://oilreviewmiddleeast.com/magazines/orme_2024_12_20/spread/?page=18