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The new company will focus initially on Egypt.

Exploration & Production

XRG and bp establish Arcius Energy

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.

The Hydrogen Council Board is driven by global CEOs. (Image source: Adobe Stock)

Industry

Masdar joins Hydrogen Council as board member

Masdar, Siemens Energy and Yara Clean Ammonia has joined the Hydrogen Council as board members, effective as of 1 January 2025

The Hydrogen Council Board is driven by global CEOs working to advance visionary ideas to leverage hydrogen as the means for the energy transition. The first board member from the Middle East, Masdar will bring valuable insights on the ambition and investment progress in the region, while Siemens Energy and Yara Clean Ammonia bring expertise in electrolysers and ammonia production respectively.

Welcoming the new members, Jaehoon Chang, CEO of Hyundai and Sanjiv Lamba, CEO of Linde, co-chairs of the Hydrogen Council, said, ‘We are pleased to welcome Masdar, Siemens Energy and Yara Clean Ammonia to the Board and work together as we guide the sector through a pivotal time for the energy transition. Hydrogen has made encouraging progress, with record levels of committed capital and projects past Final Investment Decision reported globally in 2024. However, over the next two years, regulatory stability, clear demand signals and global standardisation will be key to maintaining a robust scale-up trajectory and unlocking hydrogen’s full economic and societal benefits. We look forward to collaborating with the entire Board to tackle these challenges and driving the hydrogen industry forward together."

Mohamed Jameel Al Ramahi, CEO of Masdar, said, "The Hydrogen Council is central to advancing hydrogen as a key component in the transformation of the energy system and uniting our sector’s expertise has never been more critical. I am honoured to join the Council’s Board and work with global leaders to drive innovation, shape policies, and accelerate large-scale hydrogen deployment worldwide."

 

This project includes the construction of a 30,000-metric-ton ethylene storage facilities and associated utility infrastructure. (Image source: Adobe Stock)

Petrochemicals

Samsung E&A awarded Qatar contract

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.”

Virtual reality has emerged as a cost-effective option. (Image source: Adobe Stock)

Technology

Oil & gas majors are deploying VR for training: GlobalData

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.”

The webinar highlighted SAFEEN Green - a revolutionary new USV. (Image source: AD Ports Group)

Webinar

SAFEEN Group webinar addresses future of offshore operations

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

 

The project will support Aramco's emissions reduction objectives. (Image source: Adobe Stock)

Energy Transition

Aramco progresses carbon capture hub

Aramco is significantly advancing its net-zero ambitions with the signing of a shareholders’ agreement with Linde and SLB to progress the development of a Carbon Capture and Storage (CCS) hub at Jubail, set to become one of the largest globally

Under the terms of the shareholders’ agreement Aramco will take a 60% equity interest in the CCS hub, with Linde and SLB each owning a 20% stake.

The first phase of the hub, due for completion by late 2027, will have the capacity to capture nine million metric tons of CO2 from three Aramco gas plants and other industrial sources, with the potential for expansion in later phases. The captured CO2 will be transported through a pipeline network and stored below ground in a saline aquifer sink, leveraging the Kingdom’s geological potential for CO2 storage.

Net-zero ambitions

The project will support Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. It also complements the company’s blue hydrogen and ammonia initiatives.

Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development, said, “CCS plays a critical role in furthering our sustainability ambitions and our new energies business. This announcement represents a step forward in delivering on our strategy to contribute to global carbon management solutions and achieve our emission mitigation goals. Aramco’s collaboration with SLB and Linde demonstrates the importance of global partnerships in driving technological innovation, reducing emissions from conventional energy sources and enabling new, lower-carbon energy solutions. This CCS hub is among several programmes that will enable us to meet rising demand for affordable, reliable, and more sustainable energy.”

Oliver Pfann, Linde EVP EMEA, added, “Carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets. Linde is proud to collaborate with Aramco and SLB, contributing Linde’s innovative technology and experience in delivering world-scale decarbonization projects.”

Gavin Rennick, SLB president, New Energy, said, “Leveraging our proven portfolio of CCS technologies and extensive experience in complex CCS projects around the world, we are confident that SLB will play a critical role in advancing this important initiative. This project aligns perfectly with our commitment to industrial decarbonisation, and we look forward to collaborating closely with Aramco and Linde to make it a success.”

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