The funding is for research that aims to deliver environmental and commercial benefits. (Image source: KAUST)

Aramco has signed a Memorandum of Understanding (MoU) with King Abdullah University of Science and Technology (KAUST) to fund up to US$100mn in research and development projects over the next 10 years

The funding will support a wide range of initiatives, from essential research to applied technologies. Areas of collaboration include energy transition, sustainability, materials transition, upstream technologies and digital solutions, with an emphasis on developing commercially viable outcomes.

Topics identified within the energy transition field include liquids-to-chemicals conversion and future refineries research, as well as low-carbon aviation fuels. Sustainability research will include hydrogen, carbon capture and storage, renewables and energy storage solutions. Additional projects are expected to focus on advanced carbon materials and geothermal energy, among other things.

Deepening the relationship

Amin H. Nasser, Aramco president & CEO, said, “This collaboration will further deepen Aramco’s relationship with KAUST, and we look forward to exploring new possibilities and frontiers with a strong focus on R&D and technology development, reflecting our firm belief in the importance of innovation across industries and applications.”

ATony Chan, KAUST president, said, “The partnership exemplifies KAUST's dedication to fostering impactful research that drives technological advancements and addresses real-world challenges. Our collaboration with Aramco will leverage our combined expertise to develop innovative solutions for a sustainable future."

ADNOC Gas has reported an increase in profits and revenues. (Image source: ADNOC gas)

ADNOC Gas plc and its subsidiaries have recorded an adjusted net income of US$1,190mn for Q2 2024, a 21% year-on-year (y-o-y) improvement

Revenues for the Q2 period of US$6,076mn represent an increase of 13% y-o-y. Within the UAE, increased population and industrial growth have contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.

Highlights of the quarter include the announcement in July that ADNOC Gas will transfer ownership of the US$2.4bn gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. ADNOC Gas will continue to manage and operate the project.

In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais LNG project, following which Mitsui & Co, Shell, bp, and TotalEnergies were announced as equity partners. ADNOC also awarded an EPC contract valued at over US$5.5bn. ADNOC Gas is managing the design and construction and is looking to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake.

Focus on AI, digitalisation and technology

The focus on AI, digitalisation and technology has paid off for the company, with US$1bn in value realised since 2016 as a result, and a further US$2bn expected over the next five years.

Dr. Ahmed Alebri, chief executive officer of ADNOC Gas, said, “Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin. The 21% improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”

The announcement follows healthy revenues and profits recorded at other ADNOC divisions, such as ADNOC Drilling.

Expanding networks are offering big opportunities in the region. (Image source: Adobe Stock)

Expanding pipeline networks in the Middle East are offering fertile opportunities for contractors and technology providers

Data from Global Energy Monitor’s Global Oil Infrastructure Tracker shows the Middle East leading the continuing global expansion of crude oil transmission pipelines, as countries maintain and expanding their production and export facilities. Around 7,073 km of crude oil pipelines are under development (proposed and under construction) in the region, at an estimated capex of US$49.7bn, with Iraq and Iran topping the list.

Data in the Global Gas Infrastructure Tracker shows that 8,169 km of gas pipelines are under development in the Middle East at a cost of US$67.9bn, with Iran and Saudi Arabia leading the ranking. In Iran, new pipelines will help to meet high domestic demand from its industrial petrochemicals and residential sectors, while in Saudi Arabia and other Gulf states gas pipelines will support a shift to gas as a result of energy transition strategies and plans to develop global gas businesses.

Gas pipeline networks

Saudi Arabia’s Jafurah unconventional gas development for example involves a network of around 1,500 km of main transfer pipelines, flowlines and gas gathering pipelines; while contracts have recently been awarded for the Phase 3 expansion of the Master Gas System, which involves the installation of around 4,000 km pipelines. Sinopec and L&T Energy Hydrocarbon (LTEH) are among the beneficiaries, with the LTEH contract reported to be the largest cross-country pipeline EPC project awarded to the company to date.

In the UAE, ADNOC Gas awarded contracts to expand the natural gas pipeline network in 2023, and recently awarded contracts to NMDC Energy P.J. S.C and Galfar Engineering Contracting W.L.L. Emirates for the next phase of the ESTIDAMA project, which will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 km to more than 3,500 km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates.

Find out more in the latest issue of Oil Review Middle East, https://oilreviewmiddleeast.com/magazines/orme_2024_07_31/spread/?page=22

PIcture of oil workers with a laptop

Ali Haider, regional director, Nomadic and Nadeem Ahmed, senior manager, Nomadic discuss the need for oil and gas operators to adopt measures to proactively manage their workforce needs

The International Labour Organization (ILO) estimates that nearly six million people are directly employed by the petroleum industry and over 60 million jobs are indirectly created by the industry. As governments around the world look to implement key directives from COP 28, including those emerging from the completion of the first ever ‘global stocktake’ to review global efforts for addressing climate change, skilled individuals who can help businesses navigate the complexities of emerging technologies, ensure operational efficiency, and foster continuous innovation will play an increasingly important role.

Meeting workforce demands amid regulatory changes

The International Monetary Fund (IMF) predicts a robust 4.0% GDP growth in the UAE, pointing to a rising demand for skilled workers in the oil and gas industry. In order to successfully facilitate the influx of skilled professionals who will sustain and support the expansion of the industry, there is a need for a holistic approach towards managing their mobility and deployment. The diverse talent pool in the UAE, encompassing over 200 nationalities, further highlights the necessity of such strategic management.

As the oil and gas industry evolves, so do the laws and regulations governing the UAE's talent pool, such as further enhancements to the country’s various Emiratization initiatives and its very successful Golden Visa and Virtual Working Programs, as well as the evolving self-sponsorship framework that underpins them. The implications of compliantly navigating the UAE’s immigration landscape are paramount and add an additional layer of complexity to workforce management.

For the energy sector, there are several strategies that can be adopted to ensure that there are effective measures in place for strategic workforce planning, talent pool structuring, rotation management, and contingency planning for placements or projects that may extended. Implementing these measures will require businesses to remain abreast of key developments in the immigration landscape and to be able to count upon actionable intelligence related to their workforce – both areas that require a holistic approach towards immigration and mobility.

Automation and compliance for workforce mobility

Oversight of business visits and cross-border moves is now more than ever, a technically challenging, pressing need for companies and their travelling workforces. Unexpected travel restrictions, border digitalisation, and other regulatory changes have seen travel become an area of compliance risk. In addition to staying informed and anticipating changes, businesses should look to professional guidance to ensure smooth operations amidst an evolving immigration landscape. Today, advancements in technology allow forward-thinking companies to streamline these processes, saving time and operational costs. Solutions like those offered by Nomadic play a crucial role in ensuring compliance across the entire workforce through automation and offer a streamlined approach to short-term immigration in the dynamic oil and gas industry.

Non-compliance with these evolving regulations can have severe consequences, with a wide spectrum of sanctions outlined in the UAE immigration and labour laws. These sanctions range from monetary penalties to various types (and levels) of operational sanctions. Penalties may be multiplied for each instance of non-compliance or if there is a history of non-compliance.

A resilient framework for oil and gas sustainability

The evolution of the oil and gas industry demands compliance with sector-specific regulations for operational success. Those operating in the sector need to adopt measures for proactively managing their workforce needs, including seeking professional counsel and leveraging technological solutions to assess and anticipate regulatory changes. The impact these changes can have on operations, costs, and compliance is too significant to ignore.

Energy companies must make informed decisions about operational strategies, resource allocation, and workforce management. Businesses that seamlessly integrate regulatory compliance and workforce planning into their operational framework ensure long-term sustainability and growth while avoiding potential financial setbacks due to compliance issues or failures in procuring the correct visas or permits for their employees.