Industry

Three companies will start production at the Park this year. (Image source: OQ)

OQ, the Oman-based energy investment group, has announced that three companies will start production in early 2025 at Ladayn Polymer Park, representing a combined investment of US$42mn

They include Oman’s Madayn Plastic Company (MAPCO), which will produce Form Fill Seal (FFS) bags; M.A.K Sohar, a German company renowned for their expertise in developing high-performance chemical solutions which will focus on TPE and engineering compounds designed to meet the evolving needs of polymer manufacturers; and Multibond Metal LLC, a Chinese-Indian joint venture which will focus on advanced polymer solutions for heat resistance and surface protection.

Ladayn Polymer Park, established two years ago with the aim of bolstering Oman’s position as a regional leader in plastics manufacturing, has now secured 16 agreements valued at almost US$155mn, across various applications in packaging, construction and advanced polymer solutions.

“This milestone demonstrates the transformative potential of Ladayn Polymer Park in fostering local manufacturing, creating jobs, and driving Oman’s economic growth. By enabling the production of finished plastic products locally, we are not only reducing our reliance on imports but also positioning Oman as a regional hub for innovation and sustainability in the polymer industry,” said Sadiq Hassan Al-Lawati, managing director of OQ Marketing.

“Our partnerships with investors like MAPCO, M.A.K Sohar, and Multibond Metal LLC highlight the strategic importance of Ladayn Polymer Park in the region. Through initiatives like these, we are creating an integrated ecosystem that supports value-added manufacturing, addresses global challenges, and enhances Oman’s industrial capabilities,” said Mundhar Al Rawahi, Ladayn Park program leader.

Supply contracts

The companies have established supply contracts with OQ, ensuring consistent access to high-quality raw materials at competitive prices which, along with the strategic geographical advantage to markets through Sohar Port and the economic incentives of Sohar Freezone, have made Ladayn Polymer Park an attractive location for companies looking to expand in the region.

“We are strategically positioned with access to emerging markets in West Asia and Africa. In addition, the park’s bespoke incentives, advanced infrastructure, and dependable raw material supply from OQ create a thriving environment for businesses to succeed,” added Al-Lawati. “We look forward to welcoming more investors and partners to the park in 2025.”

Located in Sohar Industrial City, Ladayn Polymer Park spans an area of more than one million square metres, and is a joint initiative between OQ, the Public Establishment for Industrial Estates (Madayn), the National Programme for Investment and Export Development (Nazdaher) and the Ministry of Commerce, Industry, and Investment Promotion. It is designed to support economic diversification policies and attract investment, in line with the objectives of Oman Vision 2040, develop local industries and promote Omani goods and services, thereby boosting job creation and skills development, especially in the plastics industry, and creating new opportunities for small and medium enterprises (SMEs).

Osama Oulabi, general manager, KSA and Middle East, Speedcast. (Image source: Speedcast)

Osama Oulabi, general manager, KSA and Middle East, Speedcast, discusses how the company is addressing Saudi Arabia's evolving communications needs

The oil and gas sector in Saudi Arabia invests billions every year in the infrastructure and complex processes needed to pull hydrocarbons from the Earth. But now more than ever, the success of these operations depends on the communications and information technology that connects, monitors and manages it.

Saudi Arabia has become one of the world’s fastest-growing economies – yet the growth in demand for communications and IT services is outpacing it. As the Kingdom keeps investing in supplying the world’s energy needs, Speedcast is growing its operations and bringing expertise gained from every corner of the oil-producing world to benefit organisations operating in KSA.

Connecting exploration everywhere

Oil exploration vessels and platforms are some of the most sophisticated operational assets to ever exist. While operating, they must mitigate the changing conditions at sea and overcome the many challenges of drilling into high-pressure areas at immense depths, ensuring that their communications and technologies seamlessly maintain their roles without interruption or failure. Remarkable technology helps them achieve this at the site, but they also depend on connectivity to the home office, where teams of engineers, geologists and technicians monitor their progress and provide decision support in real-time. These operations require the ability to transmit high volumes of data with extreme reliability.

Energy companies with global footprints such as Seadrill and Halliburton depend on Speedcast to provide the reliability expected to successfully operate in all major energy regions. The core of these networks is a fully managed VSAT service provided over global satellite, teleport, and fiber capacity. Wherever adequate LTE or line-of-sight microwave connectivity to the shore is available, the onboard systems can default to these lower-cost paths if operational requirements allow. Speedcast also installs and manages onboard equipment to provide wide-area and local-area networking as well as PBX service.

Embracing new technologies

With the introduction of Low Earth Orbit (LEO) constellations, there are now more satellite service options than ever, along with new, exciting players slated to join the fold soon. Embracing the hybrid network model to ensure that the best options are being used at the most opportune times is now of utmost importance, along with the ability to seamlessly connect to different paths without operational disruption.

Speedcast helps energy customers both onshore and offshore integrate LEO services into existing managed solutions across thousands of remote sites every day. It leverages the latest network management solutions to seamlessly blends multiple connectivity paths –a mix of LEO, GEO VSAT, L-band and cellular, into a single, wide-area network that continuously monitors each connectivity path and dynamically orchestrates traffic in the best paths. The platform can also prioritise critical traffic for paths offering CIR and SLAs, while routing lower-priority traffic to connections that don’t and managing seamless hand-offs between services and satellites based on their performance and cost. It also makes the choices based on rules established by the customer or site – and delivers very high uptime, QoS, and bandwidth optimisation in the process. This allows for continuous integration of the latest and greatest technologies with little to no disruption in the operations and minimised risk of failure.

Critical comms during all phases

During the construction phase of oil and gas infrastructure projects, the integration and installation of seamless IT and telecom systems are paramount to efficiency.  Speedcast systems integration teams specialise in connecting the critical communications infrastructure with technologies such as intrusion detection, access control and CCTV systems for security, and Wi-Fi and IPTV networks for both work and recreation. For construction offices, we build voice, data and vehicle tracking as well as push-to-talk radio communications and handheld terminals.  Local networks connect to the rest of the world via multipath networks that seamlessly combine VSAT, cellular, microwave and fiber on the Speedcast network.  In addition to installation, Speedcast provides 24/7 maintenance and IT support services for these mission-critical facilities.

Once wells are producing, whether onshore or offshore, they continue to require technology to monitor hundreds of performance indicators and environmental risks. Reliable connectivity remains just as important, and advanced connectivity offers opportunities to optimise operations. One customer used a network created by Speedcast to link all its client’s offshore rigs to a single global service center, and in return the company estimates that centralising support for the rigs reduced overall costs by 30%.

Connectivity is equally important for attracting and retaining qualified staff at the wellhead. Speedcast develops Wi-Fi networks and provides fully managed services for access to the internet, entertainment, and news. They allow crew members to subscribe and pay for the services they want. We manage bandwidth by downloading licensed popular content to a local server when activity on the network is low, so that users can access entertainment and news without accessing a remote server. The same platform can deliver video-based training content and monitor its consumption for compliance purposes.

To complement the network solution and support needed for the expected growth in the Kingdom, Speedcast is well-versed in managing unique licensing and regulatory requirements, having infrastructure in over 60 countries, and supporting customers in over 150 countries. With its licenses and Newtec hub now in-country, Speedcast Saudi is positioned for rapid growth and development with superior support capabilities and our focus on leveraging innovative solutions to deliver 100% uptime from site to shore.

See also the exclusive interview with Speedcast's Richard Begnaud, vice president of operations for Saudi Arabia, here

PTTEP focused on international investment expansion in 2024. (Image source: PTTEP)

PTTEP reported its operational performance for 2024, highlighting the successful production ramp-up of the G1/61 Project and its investment expansion in the UAE and Algeria

As part of international investment expansion, PTTEP acquired a 10% participating interest in the Ghasha Concession Project, one of the largest offshore natural gas fields in the United Arab Emirates (UAE), with gas production set to commence in 2025. Additionally, in September 2024, PTTEP obtained government approval for the field development plan of the Abu Dhabi Offshore 2 Project and is on track to finalise the investment decision (FID) within this year.

In Algeria, PTTEP acquired a 34% of the share capital in E&E Algeria Touat B.V., with the transaction expected to be completed within 2025. Upon the completion, PTTEP will indirectly hold 22.1% investment in Touat Project, which is an onshore natural gas producing field with a production capacity of approximately 435 MMSCFD. This acquisition will immediately enhance the company’s revenue, sales volume, and petroleum reserves.

PTTEP is spearheading a digital revolution in the energy sector through the innovative DigitalX project. By harnessing the power of Artificial Intelligence (AI) and Machine Learning (ML), the company has established a data-driven ecosystem that enhances exploration and production operations. Our standardised data foundation fosters greater integration and collaboration across all business units. The AI-driven X.brain engine empowers staff to make faster, more informed decisions. To fully capitalize on these advancements, the company is investing in the workforce, equipping them with the skills to become digital-savvy innovators who drive efficiency, cultivate creativity and accelerate task completion. PTTEP remains committed to leading technological advancements, leveraging digital solutions to unlock new opportunities.

OPEC+ is likely to follow through on its plan of unwinding barrels in the second quarter of the year. (Image source: Adobe Stock)

US President Donald Trump's tariffs are expected to be short-lived and the best course of action for OPEC+ would be to go ahead with the plan of unwinding supply in the second quarter of the year, according to new research from Rystad Energy

The impact of tariffs is likely to result in crude and product surpluses in Canada and Mexico while driving shortages for both in the US system, sending an overall bullish signal to the market.
Oil prices touched a high of near US$82 per barrel by mid-January on tighter Russian sanctions.

With these tariffs emerging – 25% on Canada and Mexico and 10% on China – prices are expected to stay around the US$75 range, assuming OPEC takes action to maintain market stability in response to the tariffs.

Global head of Commodity Markets - Oil, Mukesh Sahdev said, “OPEC+ is facing a new challenge with President Trump’s tariffs on major crude suppliers, which could disrupt global oil demand and production. While the group may unwind its production cuts as announced in the second quarter to manage market stability, tariffs on Canada and Mexico could force both countries to redirect crude, impacting US refineries and leading to potential price hikes.

Acting cautiously

"OPEC+ is likely to act cautiously, balancing its efforts to stabilise prices while also dealing with geopolitical tensions. As Canada heads into an election, its likely hard stance in retaliation could further complicate efforts, requiring OPEC+ to put in extra effort to ensure balance in the market.”

Currently, OPEC+ is primarily addressing the challenge of surplus supply by implementing cuts, while hoping for a recovery in demand that will allow for the reversal of these cuts. However, this seems less likely, with China delivering a much lower-than-expected recovery for several quarters. The tariffs implemented by the Trump administration will negatively affect demand, not only for the target countries but also globally, including the US.

Despite potential risks to demand from the new US administration's measures, OPEC, the US Energy Information Administration (EIA) and the International Energy Agency (IEA) all project global oil demand growth to exceed 1mn bpd in 2025, Rystad points out. The signal is that tariffs, if kept for long, have the potential to cause production losses in Canada and Mexico, which could help OPEC+ to unwind barrels. There is scope to bring back an average of 5.8mn bpd of extra crude from OPEC+ in case of significant loss from Canada and Mexico, says Rystad. The signal is that OPEC+ is likely to bring supply back only to keep a ceiling on prices, and is unlikely to act to lower prices as per Trump’s call.

While President Donald Trump’s return to the White House is thought to provide an upside to oil and gas activity, given his “Drill, baby, drill” initiative, it is likely to have a limited impact on oil and gas production and activity levels, while a more conducive regulatory environment is expected in relation to permits for liquefied natural gas (LNG) terminals, according to the energy consultancy.

The current sanctions and the loss of heavy barrels will also affect the blending of light barrels with heavy barrels to produce Middle Eastern crude grades, adversely affecting light-sweet US shale production. The signal is that the US must plan to source medium-sour crude barrels from other destinations, mainly the Middle East, rather than try to solve any shortages by increasing its light-sweet production. OPEC+ unwinding and offering incremental supply to the US cannot be ruled out.

“All these insights point toward a higher probability of OPEC+ following through on its plan of unwinding barrels in the second quarter of the year,” concludes Rystad.

“The key issues surrounding the Russia-Ukraine conflict, tightening Iran sanctions and European sanctions are likely to take a backseat as Trump seeks to navigate his way through the sanctions, expecting support from OPEC+. Once again, the supplier group finds itself caught between a rock and a hard place as its fights to ensure market stability.”