Industry

Technowrap has been a global success for ICR Group. (Image source: ICR Group)

Aberdeen-based ICR Group, a global leader in maintenance and integrity solutions, together with its regional partners, has secured US$3.5mn (£2.67m) in contracts in the Middle East over the past four months, due to demand for its Technowrap composite repair technology

Technowrap can be used to repair a wide range of infrastructure, including pipelines, pipework, tanks, vessels and structural components, both onshore and offshore. Technowrap provides a long-term alternative to traditional steel replacement, often with a design life of up to 20 years. The quick application can significantly reduce downtime, leading to cost savings, while offering up to a 66% reduction in carbon emissions. Recent projects in the Middle East have included work on offshore and onshore installations for operators and engineering contractors repairing pipelines, pressure systems and structures.

ICR also offers non-destructive composite inspection technique called INSONO, and Quickflange, permanent flange-to-pipe connectors, for use where traditional welding solutions are impractical due to hot work constraints or time limitations.

ICR’s operations are supported by its Abu Dhabi office and strategic partner agreements, enabling local service delivery of the product range across the Middle East.

Jim Beveridge, CEO of ICR, said, “Our recent success in the Middle East is a testament to the expertise of our team and local partners. The proven reliability of our products and services positions ICR to enhance operational efficiency and protect critical infrastructure, all while minimising environmental impact. I am confident in our ongoing success in the region as demand continues to grow.”

Aftab Shaikh, business development manager at ICR, based in Abu Dhabi, added, “The suite of ICR products continue to generate significant interest due to their ability to support production uptime. Our local partners help us to leverage regional expertise and market knowledge, ensuring tailored solutions and faster service delivery each time.”

ICR will be exhibiting at ADIPEC from 4-7 November, stand 6210.

Keel laying of Bapco barges. (Image source: ASRY)

The Arab Shipbuilding and Repair Yard Company (ASRY), the Bahrain-based ship and rig repair yard, has recently announced the launch of the first phase of the Bapco Refining Self-Propelled Fuel Oil Bunker Barges Project

The project, scheduled for execution in the final quarter of 2024, was announced during an official launch ceremony held at the company’s headquarters in Hidd, in the presence of senior officials from both companies, led by Dr. Ahmed Al-Abri, chief executive officer of ASRY, and Bapco Refining representatives.

This strategic project comes as part of a strategic alliance between ASRY and Bapco Refining, with a view to positioning the Kingdom of Bahrain as a key maritime hub in the region. The project consists of the delivery of two self-propelled fuel oil bunker barges to one of the biggest national industrial corporations.

Extensive experience

ASRY's extensive experience and high competency in the field of marine asset optimisation, being a leading maritime repair and fabrication facility in the region, were key factors in being awarded the project. ASRY operates in four sectors – Ship Repair & Conversion, Rig Repair & Conversion, Naval Repair & Conversion, and Fabrication & Engineering – which together cover all types of vessel repair including jack-up rigs and other offshore assets, as well as fabrication of onshore and offshore industrial components.

Dr. Abdulrahman Jawahery, chief executive officer of Bapco Refining, stated, "We acknowledge the advantages of leveraging the distinguished expertise at ASRY in executing this strategic project. This approach will allow us to meet the advanced and diverse requirements of the energy sector in alignment with international standards and specifications, ensuring compliance with the dual framework of the International Maritime Organization (IMO) MARPOL agreements."

Dr. Ahmed Al-Abri, chief executive officer of ASRY, commented, “Bapco Refining’s Fuel Barges Project is one of the largest projects secured for implementation by ASRY for one of its most important national clients in the regional energy sector. Efforts are devoted to completing this project and ensuring smooth operations, where the long-standing expertise of the company will undoubtedly contribute to the project’s success and the achievement of its desired goals.”

"Our ongoing commitment to delivering high-quality work on schedule while maintaining safety reinforces our position as the preferred global yard of call for ship, rig, and naval ship repair and maintenance, along with being a destination for engineering, industrial construction, and fabrication projects.”

Up to 25% of OQEP's share capital will be offered on the MSX. (Image source: Adobe Stock)

OQ Exploration and Production (OQEP), the wholly-Government owned upstream oil and gas operator, intends to launch an initial public offering (IPO) of up to 25% of total issued share capital on the Muscat Stock Exchange

The Offering will be offered in two tranches to eligible investors in Oman and qualified institutional and other investors in a number of countries and retail investors in Oman. The subscription period is expected to commence in September 2024, on receipt of required approval from the Financial Services Authority (FSA) of the Sultanate of Oman, with the listing expected to take place in October 2024.

OQEP is Oman’s largest pure-play oil and gas exploration and production company and its only upstream oil and gas operator wholly owned by the Government of Oman. Founded in 2009, it currently ranks among the top three oil and gas producers and is one of the largest holders of oil and gas reserves in Oman. Since inception, it has witnessed significant growth, expanding its average daily production nearly 14 times, and averaging 249,000 boe/d on a working interest basis by 2023, contributing around 14% of Oman’s total oil, condensate and gas production.

Fundamental advantages

An official statement highlights that OQEP benefits from Oman’s fundamental advantages, including:
(i) strategic location in a prolific hydrocarbon province with direct access to global shipping routes and logistics hubs;
(ii) well developed oil and gas sector;
(iii) stable and highly prospective oil and gas operating environment;
(iv) the Government of Oman’s encouragement of investment in gas-intensive industries to support economic diversification and hydrocarbon value optimisation;
(v) established and competitive regulatory and fiscal framework for the hydrocarbon sector.

It also notes the company’s strong cashflows and optimal capital structure.

Ashraf Hamed Al Mamari, group CEO of OQ, said, “Today marks a significant milestone in our journey towards enhancing the value of OQ’s portfolio through strategic divestments. The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the Sultanate of Oman. OQ Exploration and Production, with its leading position in maximising Oman's natural resources, underscores our focus on sustainable development and local value creation. By empowering local communities and supporting small and medium-sized enterprises, we not only maximise local value but also contribute to the long-term economic stability of Oman.”

OQEP chief executive officer, Ahmed Al-Azkawi, added, “Since our inception in 2009, we have worked tirelessly to pursue growth opportunities and strengthen our market position. OQEP is a reliable partner for 13 reputable international companies owing to our significant growth trajectory, robust portfolio of assets, and record-breaking production of nearly 14 times higher since inception. Our strategic goals, aligned with Oman’s Vision 2040, focus on monetising the country’s hydrocarbon resources while supporting the energy transition. Additionally, stimulating the local economy is central to our sustainability initiatives, which includes developing local talent and supporting our CSI projects to increase our contributions to In-Country Value. We continue to build on our success and invite investors to be part of this unique opportunity and successful journey.”

The oil price is at its lowest level for around 14 months. (Image source: Adobe Stock)

OPEC+ members Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman have agreed to extend their additional voluntary production cuts

The eight OPEC+ member countries, which previously announced additional voluntary cuts in April and November 2023, have agreed to extend their additional voluntary production cuts of 2.2mn bpd for two months until the end of November 2024, after which these cuts will be gradually phased out on a monthly basis starting 1st December, 2024, with the flexibility to pause or reverse the adjustments as necessary.

The cuts were originally planned to be phased out from the beginning of October.

The eight countries held a virtual meeting on 5 September 2024, during which they emphasised their collective resolve to ensure full compliance with the voluntary production adjustments. The group includes Iraq and Kazakhstan, who have overproduced since January 2024, but have strongly reaffirmed their commitment to the agreement. The two over-producing countries have also committed to meet compensation schedules for any over produced volumes and to compensate for the entire overproduced volume by September 2025.

The decision to delay unwinding production cuts comes as weak demand growth, ample supply and the prospect of increased Libya supplies have put a damper on the oil price, which currently stands at around US$73/bbl, its lowest level for 14 months.