Industry

The Fulkrum team in the new office. (Image source: Fulkrum)

Aberdeen-headquartered Fulkrum, a leader in inspection, expediting, auditing, and technical staffing services, has opened a new regional support centre in Abu Dhabi, anticipating strong growth in its business in the region

The decision to relocate to a larger office space follows a series of significant project wins, including major contracts in Saudi Arabia, Qatar, Iraq, and the UAE, and the establishment of an office in Iraq. As a result of these successes, Abu Dhabi has become a critical hub for Fulkrum’s regional operations, and the team in Abu Dhabi has grown to 19 members, with an additional four staff members set to join in October. The new office will support Fulkrum's ongoing regional growth strategy and allow for further expansion over the next five years.

Muhammad Tayyab, regional manager at Fulkrum, said, "Our growth in the Middle East has been tremendous, with a projected 50% increase this year following a 27% rise in 2023. The opening of our new regional support centre in Abu Dhabi reflects our commitment to supporting this momentum. With the anticipation of a 200% growth in the Middle East over the next five years, this new office will enable us to expand our capabilities and better serve our clients across the region."

Seadrill will equip its fleet of floating drilling vessels with Oil States' MPD technologies. (Image source: Oil States)

Seadrill, a global leader in oil and gas offshore drilling, is to equip its high-spec fleet of floating drilling vessels with Oil States' managed pressure drilling (MPD) technologies, in a new collaboration aimed at enhancing safety and efficiency while simplifying and standardising MPD systems in offshore operations

Oil States’ field-proven MPD Integrated Riser Joint (IRJ) improves the safe handling of gas influx while significantly reducing nonproductive (NPT) time typically encountered with deepwater MPD operations, and is specifically designed to enhance MPD operational efficiency. This riser joint is more compact, allowing for safer and easier handling with greater functionality, which enables the rig to remain over the well while testing the retrievable seals within the joint. All features of the IRJ can be function and pressure tested while on deck. The IRJ is equipped with twin retrievable annular seals, a passive rotating control device (RCD) bearing assembly and hard-faced bore that eliminates the need for a wear sleeve. Together, these advances reduce NPT and unnecessary trips while promoting longer bearing and seal life. This contributes to seamless and streamlined MPD operations, supporting Seadrill’s MPD standardisation efforts while delivering safer, more efficient operations to their customers.

Oil States president and CEO, Cindy Taylor commented, “We look forward to a long-term relationship with Seadrill as we supply them with multiple MPD IRJs for their fleet of high-performance vessels. While supporting Seadrill’s adoption and integration of our MPD system, we endeavour to optimise our equipment to allow for oil and gas reserves to be unlocked safely and efficiently to meet growing global energy demands.”

Samir Ali, executive vice president, chief commercial officer, Seadrill commented, “This technology places Seadrill at the forefront of safe, cost-effective deepwater MPD services, offering our customers an unrivalled simplicity of MPD drilling while providing the highest levels of drilling efficiency and safety.”

Kevin Franklin, CEO of 3t (left) with Mario Nahas, CEO of GTSC. (Image source: 3t)

3t, the UK-headquartered training provider for safety-critical industries, is bolstering its presence in the UAE, Saudi Arabia and Egypt with the acquisition of GTSC, the largest energy training business in the Middle East

In its seventh acquisition since 2017, 3t, which has longstanding relationships in the region, has acquired GTSC from Al Mansoori Specialized Engineering, with more than 100 GTSC employees and several purpose-built training facilities. It runs an extensive array of industry-accredited technical, offshore survival, HSE, firefighting and road safety training courses.

With its recent acquisitions, 3t is set to see its revenue top US$100mn in 2024, following strong profitability and growth in 2023. 3t provides more than 600 different training courses at 11 global centres, training more than 100,000 people every year to the highest industry standards. Its training provision is marked by a strong learning technology offering which includes its world-leading simulators, state-of-the-art virtual reality and digital twin technology, as well as a host of digital learning solutions and programmes. 

With the training and development of skilled local workforces a high priority, the acquisition will ensure personnel in the Middle East in safety critical roles across sectors including renewables and oil and gas meet the highest levels of safety, compliance and competence. 

Kevin Franklin, CEO of 3t, said, “The Middle East is booming with projects across the whole energy spectrum; demand for world-class training and skilled workforce is high. Our offer of exceptional quality training and technology has proved compelling. The GTSC team has developed a strong business that is highly respected, with a track record that speaks for itself – we complement each other well, allowing us to invest and build a stronger service for our customers.”

Hanadi Khalife, head of Middle East, ICAEW. (Image source: ICAEW)

Economic growth in the Middle East is projected to rise to 3.5% in 2025, up from at 2.1% in 2024, according to the latest ICAEW Economic Insight report for the region, driven by the expected unwinding of oil production cuts by OPEC+ and continued strength in non-energy sectors

The extension of oil production cuts by OPEC+ has led to a slight downward revision of the GCC's 2024 growth forecast to 2.1% from 2.2% three months ago. While this reflects the temporary impact on the region’s energy sector, the outlook for 2025 remains optimistic as oil production increases, providing a strong boost to the region's economies. The GCC region is poised for a significant rebound, with growth projected to more than double to 4.4% in 2025 as oil production cuts are gradually phased out.

Resilient non-energy sectors

The report, prepared by Oxford Economics, highlights the resilience of the GCC's non-energy sectors, which are expected to expand by 4.4% in 2025. Strong domestic momentum, along with anticipated interest rate reductions, is expected to boost consumption and private investment, while non-oil sectors including tourism, trade, and finance, are becoming crucial growth drivers in the region’s economic diversification efforts.

Kuwait's economy is forecast to grow by only 0.5% due to ongoing oil production cuts, but is expected to rebound to 2.5% in 2025-26. The recent discovery of the Al-Nokhatha oil field, with estimated reserves of 3.2bn barrels, will have a positive impact on the oil sector, supporting Kuwait's aim to expand production output to 4mn barrels per day by 2035.

Oman's economy is projected to achieve a growth rate of 1.5% in 2024, supported by a resilient non-energy sector, rising to 2.3% in 2025, as oil production restrictions are eased. Oman's public finances remain robust, and the country's commitment to fiscal reforms and diversification efforts has resulted in Moody's upgrading Oman's Ba1 credit rating to positive.

Hanadi Khalife, head of Middle East, ICAEW, said, “The report underscores the importance of resilience in navigating global economic and regional geopolitical headwinds. We are confident that the Middle East's business community, supported by the expertise of the accountancy profession, will continue to demonstrate its ability to innovate and thrive amid these challenges.”

Scott Livermore, ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East, said, “The GCC’s proactive and strategic investment in non-oil sectors, alongside the gradual recovery of oil production, is paving the way for robust growth in 2025. In a global environment of slowing economic growth, the resilience of the GCC stands out. The region’s strong performance across both energy and non-energy sectors – particularly in tourism, trade, and finance – positions it for sustained success in the coming year.”