twitter linkedinfacebookacp contact us

Read the Digital Magazine

Top Stories

Grid List

QatarEnergy is acquiring an interest in two exploration blocks offshore Egypt. (Image source: Adobe Stock)

Exploration & Production

QatarEnergy is expanding its presence in Egypt with the signing of an agreement with ExxonMobil to acquire a 40% participating interest in two exploration blocks offshore Egypt

Under the terms of the agreement, QatarEnergy will acquire a 40% working interest in each of the “Cairo” and “Masry” Offshore Concession Agreements, while operator ExxonMobil will retain the remaining 60% working interest.

The Cairo and Masry offshore exploration blocks were awarded to ExxonMobil in January 2023 and cover an area of approximately 11,400 sq km in water depths of 2,000 to 3,000 metres.

His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy said, “I am pleased with our entry into the Cairo and Masry offshore exploration blocks as they expand QatarEnergy’s presence in the Arab Republic of Egypt and extend our ambitious exploration programme in-country.”

QatarEnergy has been expanding its overseas upstream portfolio in recent years, entering Egypt’s upstream sector in 2021 with the acquisition of interests in two offshore exploration blocks in the Egyptian side of the Red Sea from operator Shell. It has also made recent acquisitions in Mauritania and Lebanon.

Aramco was the top issuer of oil and gas contracts worldwide in Q1 2024, according to GlobalData’s latest Oil and Gas Industry Contracts Review

The leading data and analytics company highlights the award of Tecnicas Reunidas and Sinopec Engineering Group’s two lumpsum contracts combined worth approximately US$3.3bn from Saudi Aramco for the EPC of the Riyas Natural Gas Liquids (NGL) fractionation facility in Saudi Arabia

However, the GlobalData report reveals that the value of oil and gas contracts globally declined in value by 37% quarter-on-quarter in Q1 2024, from US$50.2bn in Q4 2023 to US$31.4bn in Q1 2024, with overall contract volume decreasing from 1,346 in Q4 2023 to 1,142 in Q1 2024.

Contract scopes

Operation and Maintenance (O&M) represented 59% of the total contracts in Q1 2024, followed by procurement with 16%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement accounted for 13%. The O&M scope is primarily dominated by upstream sector contracts, with a significant focus on chartering jack-up rigs, onshore rigs, drillships, and support vessels. In Q1 2024, offshore terrains accounted for the market’s highest share in the oil and gas industry contracts landscape.

Other notable contracts highlighted during the quarter include Samsung Heavy Industries’ US$3.44bn construction contract for 15 LNG carriers, each of 174,000 m3 capacity, and Tecnimont’s approximately US$1.1bn contract from Sonatrach for the Engineering, Procurement, Construction, and Commissioning (EPCC) of a new Linear Alkyl Benzene (LAB) plant with a capacity of 100,000 tons per annum (tpa) and utilities infrastructure in east Algeria. HD Hyundai accounted for the highest share of the oil and gas industry contracts landscape in terms of value during the quarter.

Pritam Kad, Oil and Gas analyst at GlobalData, commented, “Many traditional oil and gas industry projects are getting delayed or postponed due to concerns over demand outlook in oil and gas consuming countries amid the looming recession and high inflation, which is clearly evidenced by the decrease in both contract value and volume.”

"Contrarily, oil prices are anticipated to be favourable for producers due to potential supply disruptions arising from geopolitical risks. GlobalData expects that delayed or near completion projects are likely to be pushed forward in the mid-term."

See also https://oilreviewmiddleeast.com/industry/middle-east-contracts-drive-increase-in-global-oil-and-gas-contract-value-in-q4-2023

The new process will improve efficiency and reduce carbon footprint. (Image source: Honeywell)

Petrochemicals

Honeywell has launched a new process to improve the efficiency and sustainability of light olefin production

The naphtha to ethane and propane (NEP) technology generates a tunable amount of ethane and propane from naphtha and/or LPG feedstocks, generating more high-value ethylene and propylene with reduced production of lower-value by-products compared to a traditional mixed-feed steam cracking unit and resulting in net cash margin increases. An NEP-based olefins complex also reduces CO2 intensity per metric ton of light olefins produced by 5 to 50% versus a traditional mixed-feed steam cracker.

More efficient production

“The petrochemical industry faces strong competition and challenges in obtaining raw materials globally,” said Matt Spalding, vice president and general manager of Honeywell Energy and Sustainability Solutions in MENA. “Our technology helps to enable more efficient production of ethylene and propylene, two chemicals which are in high demand, while also helping our customers lower their carbon emissions.”

The new solution is a part of Honeywell’s Integrated Olefin Suite technology portfolio to enhance the production of light olefins.

The tablet is suitable for use in demanding and hazardous applications. (Image source: Pepperl+Fuchs)

Technology

Pepperl+Fuchs has launched the Pad-Ex 01 P12, a new tablet for professional use in hazardous areas in Zone 2/22, Division 2

The tablet is equipped with the Windows 11 Pro 64-bit operating system and 12th generation Intel Core i5 processor and Intel Iris Xe graphics, offering maximum efficiency for demanding tasks. With its robust, compact and lightweight design, the device is ideal for outdoor use.

The Pad-Ex 01 P12 is certified to protection class IP64, thereby protected against the ingress of dust and splash water on all sides. It offers battery life of up to 14 hours. Featuring a capacitive 11.6-inch FHD display with a resolution of 1920 x 1080 pixels and DynaVue technology as well as a brightness of up to 1,000 cd/m², it offers exceptional readability even in direct sunlight. In addition, the model offers four modern touch modes – glove, pen, water, and finger, making it suitable for both indoor and outdoor applications.

The tablet has an optional desktop docking interface, so it can be quickly and easily transformed into a PC and seamlessly integrated into office and corporate networks.

Designed for demanding and hazardous environments

The Pad-Ex 01 P12 is ideal for use in highly demanding sectors such as warehousing, field service and logistics, as well as in particularly hazardous areas and sectors such as hydrogen production, the chemical, oil and gas industries and for the mobile management of large-scale facilities, including inspection, maintenance and operation.

“With the Pad-Ex 01 P12, we are providing the world's first fully ruggedised 11.6-inch ATEX/IECEx tablet with a 12th generation Intel processor. It is characterised by its slim and compact design for the modern mobile workforce. The combination of durability, outstanding performance and a large display makes the device an ideal complement to desktop PCs, laptops or wall-mounted displays and can even replace them completely. This makes the Pad-Ex® 01 P12 a solid, reliable, and indispensable companion for mobile, computer-supported work in hazardous areas,” explained Joerg Hartleb, head of Product Management at Pepperl+Fuchs subsidiary ECOM Instruments.

More than 175 people, including senior representatives of the region's leading oil and gas companies, attended a very topical and engaging live webinar hosted by Oil Review Middle East entitled “Beyond Boundaries: Advanced Surveillance for Oil and Gas Remote Facilities”

The GCC countries have the potential to become leading clean energy hubs. (Image source: Adobe Stock)

Energy Transition

The GCC countries are strategically positioned to become leading global clean energy hubs, according to the latest report in MUFG's ESG series

With global efforts towards the energy transition increasingly being recognised, regulators and policymakers in the GCC economies have incorporated decarbonisation plans into their national vision transformation programmes.

To achieve net zero targets across the region, extensive investments are being undertaken to decarbonise high-carbon emitting sectors in hydrocarbon production, power generation and industrial production, with the speed of execution contingent on technological advancement and availability, as well as an increase in the private sector participation.

Having said that, a recalibration of the energy trilemma post-COVID from sustainability towards energy security and affordability, is witnessing GCC transition targets take a pragmatic approach that is pro-growth and pro-climate. This approach recognises that sustainable systems are more value creating than traditional ones, but shutting down the old conventional economy too quickly threatens to push the price of building a cleaner new economy out of reach. This two-pronged approach of addressing the energy transition and safeguarding energy security recognises the sheer complexity of ecosystems, demanding greater alignment and collaboration on everything from capital allocation to product design, public policy as well as behavioural changes on the demand-side of the equation.

MUFG argues that the GCC region remains well positioned to capitalise on its comparative advantages of low-cost positioning across the energy value chain, geographical proximity to key import markets and its constructive regulatory backdrop to become a vital global decarbonisation vanguard. These favourable characteristics, combined with a constructive macro backdrop, will enable these economies to strengthen their pedigree beyond conventional fossil fuel energy sources in becoming a global hub for both clean electrons (solar, wind, EVs and energy storage) and clean molecules (hydrogen, carbon capture and bioenergy).

More than US$630bn of investments will be required through to 2035 for the region to achieve its ambitious decarbonisation targets, MUFG says, led by four strategic areas, namely, (1) the burgeoning role of natural gas as a transition fuel; (2) the development of attractive renewables capacities; (3) an expansion in carbon sequestration and clean fuel offerings through a rising focus on clean technology investments; and (4) investments in critical infrastructure and logistics to support the transition.

To read the full report, go to https://www.mufgresearch.com//commodities-esg/esg-series-gcc-region-and-the-energy-transition-strategically-positioned-to-become-a-vital-global-decarbonisation-vanguard/?utm_source=email&utm_medium=publication&utm_campaign=ESG+Series:+GCC+region+and+the+energy+transition

Latest news