Global oil consumption is estimated to be 98 million barrels (bbl) per day (Q3 2017), and is forecast to reach over 100 million bbl per day by Q3 2018. Oil and gas production is determined by fluctuating prices, demand and investment. The agreement between the Organization of Petroleum Exporting Countries (OPEC) and Russia to reduce output by 1.2 million bbl per day, together with Russia’s reduction by 600,000 bbl per day has helped to rebalance supply and demand and has revitalized investment in the oil and gas industry. Oil prices have risen to reach US$56.6/bbl West Texas Intermediate (WTI) in mid-November 2017, from a low of US$26.21/bbl in February 2016.

The number of global rigs declined from 3,600 in mid-2014 to fewer than 1,500 in mid-2016. According to the International Energy Agency (IEA), global investment in oil and gas reduced from US$873 billion in 2015 to US$649 billion in 2016, during the period mid-2014 to mid-2016 of reduced oil and gas prices.

The traditional oil and gas producers in the Middle East, represented by the Gulf Cooperation Council (GCC) countries and headed by Saudi Arabia, are no longer the leaders in investment in the sector. Indeed, the top ten global countries for oil and gas construction project investment, as tracked by the CIC, do not include any Middle East countries, with only Nigeria representing the Middle East and Africa (MEA).

In terms of global consumption, the US is the largest consumer of both oil and gas, with 796.4 millions of tonnes of oil equivalent (mtoe) for oil and 635.86mtoe for gas in 2015, according to the IEA. China is second for oil consumption with 535.9mtoe, and is behind Russia for natural gas consumption with 159.2mtoe.

CIC analysis shows the Americas to have the highest value of oil and gas construction projects, with US$1.28 trillion. Canada leads with US$532.9 billion, followed by the US with US$405.7 billion, meaning both countries are responsible for 73% of the region’s output for oil and gas projects.

The global oil and gas projects pipeline is well advanced, with projects at the execution stage valued at US$1.45 trillion, compared with US$1.24 trillion in planning. Projects in the pre-execution stage amount to US$784.3 billion, while those at the pre-planning stage have a value of US$534.1 billion.

Private investment is responsible for the funding of the highest proportion of projects, with 56%, with joint public and private funding at 27%, and the remaining 17% of projects financed solely by public funding.

Assuming all projects tracked go ahead as planned, annual spending will reach US$819.9 billion in 2019, and reduce to US$447.4 billion in 2021. The highest value of completions for the projects will occur in 2020, with a value of US$812.5 billion.

Globally, refinery buildings is the highest value category, based on CIC tracked projects with a value of US$1.27 trillion, followed by production facilities with a value of US$1.23 trillion. Liquefaction plants follow, with projects valued at US$761.0 billion, followed by pipelines with a value of US$598.0 billion. The two lowest value categories in the sector are storage tanks with projects with a value of US$86.9 billion, and regasification plants with US$57.2 billion.

Asia-Pacific has the highest value of refinery buildings projects, with a value of US$574.8 billion, while the Middle East and Africa has the highest value of production facilities, with a value of US$444.9 billion. The Americas dominates for the value of liquefaction plants, with projects valued at US$484.3 billion.

The highest valued project is in Brazil: the US$80.0 billion Libra Offshore Oil Field Development

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BP’s West Nile project, which produces gas from the Giza and Fayoum fields, was developed as a deepwater, long-distance tie-back to an existing onshore plant and is expected to record peak production levels of roughly 700m cubic feet of gas per day.

Chief executive Bob Dudley, who praised the Egyptian government for its support in bringing the project to life, said: “With the second stage of West Nile Delta now online, BP has now safely brought 21 new upstream major projects into production over the last three years, keeping us on track to deliver 900,000 barrels of oil equivalent per day by 2021.”

The 82.75% owned West Nile project, which follows the launch of BP’s Anadarko-operated Constellation oil project in the Gulf of Mexico back in January, is made up of a total of five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks.

BP had originally planned to develop the fields as two separate projects but said it had “realised the opportunity to deliver it in three stages”, accelerating the delivery of its gas production commitments in Egypt.

Regional president Hesham Mekawi said: “Our story in Egypt now stretches back for more than half a century and, thanks to projects like this, it has a bright future.”

As of 1000 GMT, BP shares had picked up 0.86% to 548.70p.

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This production train at the Corpus Christi project is the latest of six trains that Bechtel has delivered with Cheniere at two sites on the U.S. Gulf Coast. The Sabine Pass Liquefaction project in Louisiana produced the first LNG from that site’s fifth train last week.

“These achievements further highlight the value this ongoing successful partnership with Cheniere brings for both of us,” said Bechtel Oil, Gas, and Chemicals President Alasdair Cathcart. “We are proud to have contributed to Cheniere’s success by collaboratively delivering these LNG trains ahead of schedule and with cost certainty through our lump sum approach.”

Cheniere recently announced it had also awarded Bechtel the engineering, procurement, and construction contract for the planned sixth train at the Sabine Pass liquefaction facility.

Since 2015, Bechtel has delivered an unprecedented 14 large-scale LNG production trains for customers around the world, including eight trains in Australia. These facilities are now supplying about 61 million tonnes of LNG each year to global energy markets, or enough energy to power more than 85 million homes.

About Bechtel
Bechtel is one of the most respected global engineering, construction, and project management companies. Together with our customers, we deliver landmark projects that foster long-term progress and economic growth. Since 1898, we’ve completed more than 25,000 extraordinary projects across 160 countries on all seven continents. We operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals. Our company and our culture are built on more than a century of leadership and a relentless adherence to our values, the core of which are safety, quality, ethics, and integrity. These values are what we believe, what we expect, what we deliver, and what we live. www.bechtel.com

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Spanning 1,200 square kilometers, Bab is the largest onshore oil field in Abu Dhabi. State-owned Abu Dhabi National Oil Company (ADNOC) has identified the potential to increase output from 420,000 to 450,000 barrels of oil per day (bpd) at the field by 2020. In 2015, ADNOC Onshore awarded the engineering, procurement and construction (EPC) contract to CPECC to upgrade the field.

The upgrade will include a fully integrated ABB Electrical, Control and Telecommunication (ECT) solution with 45 power and capacitor bank skids, as well as centralized and localized automation systems. ABB AbilityTM digital oilfield technology will further enhance the ECT solution to remotely monitor and analyze field performance where multiple oil wells will be co-located in one place. Once installed, it is expected to reduce the oilfield’s operating expenditures by 10 to 15 percent.

Peter Terwiesch, President, ABB’s Industrial Automation division said: “We are very proud to have won the contract on the basis of our ability to provide a fully integrated solution that leverages our industry-leading ABB AbilityTM process control system. In addition, we demonstrated the strongest local footprint, with our equipment being built or assembled in the UAE and our services delivered by locally-based staff.”

The level of In Country Value (ICV) offered when tendering for industrial projects in the UAE has become increasingly important over recent years since the UAE Government announced its policy to enhance the role of private sector in appointing and training nationals.

Terwiesch adds, “Hiring and training Emiratis to become high-performing employees has been a focus for us in the United Arab Emirates in recent years. I am very pleased that our efforts were recognized by the UAE government in October 2018, when we received an UAE Emiratization Award.”

The digital technology deployed at the facility will leverage ABB AbilityTM, the company’s unified, cross-industry, digital offering, connecting devices, systems, solutions and services to help ADNOC improve operational performance.

ABB provides integrated products, services and solutions to help customers in the oil, gas and chemicals industry optimize their safety, productivity and energy efficiency while minimizing cost, schedule and risk.

ABB is a pioneering technology leader in power grids, electrification products, industrial automation and robotics and motion, serving customers in utilities, industry and transport & infrastructure globally. Continuing a history of innovation spanning more than 130 years, ABB today is writing the future of industrial digitalization with two clear value propositions: bringing electricity from any power plant to any plug and automating industries from natural resources to finished products. As title partner in ABB Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 147,000 employees. www.abb.com.

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Phillips 66 also announces an open season for the proposed Red Oak Pipeline, which will provide shippers the opportunity to secure crude oil transportation service from Cushing, Oklahoma, to Corpus Christi, Houston and Beaumont, Texas. The Red Oak Pipeline is expected to have an initial throughput capacity of 400,000 BPD with the ability to expand further depending on shipper interest in the open season. The pipeline is anticipated to be placed in service in the fourth quarter of 2020.

Both the Liberty Pipeline and the Red Oak Pipeline open seasons will commence at 12 p.m. CST on Nov. 12, 2018. Prior to participating in the open seasons, interested parties must execute a confidentiality agreement to govern the receipt of the open season documentation. For a form of confidentiality agreement and additional information regarding the Liberty Pipeline, please contact Blake Hotzel at Blake.R.Hotzel@p66.com or Barry Oakes at Barry.Oakes@truecos.com. For a form of confidentiality agreement and additional information regarding the Red Oak Pipeline

About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,200 employees committed to safety and operating excellence. Phillips 66 had $56 billion of assets as of Sept. 30, 2018. For more information, visit www.phillips66.com

About Bridger Pipeline LLC and its affiliated pipeline companies
Bridger Pipeline LLC, Belle Fourche Pipeline Company, and Butte Pipe Line Company are part of True companies and are based in Casper, WY. Bridger Pipeline LLC owns and operates the Poplar System in eastern Montana, the Four Bears Pipeline System in North Dakota, the Parshall Gathering System and the Powder River System in Wyoming. Belle Fourche Pipeline Company gathers and transports crude oil in the Williston Basin of western North Dakota and the Powder River Basin of Wyoming, and Butte Pipe Line Company owns the transmission line from Baker, Montana to Guernsey, Wyoming. For more information visit www.truecos.com.

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Steve Pastor, BHP President Operations Petroleum, said the successful bids are an exciting opportunity for BHP to explore for world class conventional oil assets as an early mover in this prospective region.

“This frontier opportunity has large oil resource potential which we identified through our Global Petroleum Endowment Study in 2016 and is in a low risk country, with competitive fiscal terms” Mr Pastor said.

“This opportunity delivers on our exploration focus in conventional petroleum and will leverage our global deep-water development and operational expertise.”

BHP’s aggregate bid amount of US$625 million covers the drilling and seismic work required by the exploration work programs under the licence agreements over the six year term. BHP’s minimum commitment under the licence agreements is for US$157 million.

Should BHP decide to progress the exploration program beyond this initial phase, a decision in relation to further capital expenditure to drill the first appraisal well is expected to be made in FY2022.

BHP’s initial planned capital expenditure on the exploration work programs for blocks 8 and 12 is US$140 million up to FY2021, and is within BHP’s current exploration budget.

Subject to satisfaction of conditions outlined by the Canada Newfoundland and Labrador Offshore Petroleum Board, it is anticipated that the licence agreements would be issued in December 2018 and would be effective in January 2019.

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Operators need to increase their margins and tightly control costs, whilst ensuring that safety and reliability are not compromised. Effective leadership is essential in managing the process of continuous improvement and ensuring that employees are empowered with data, information and procedures transparently in a role-based manner to assist in fast, accurate actions which lead to consistently good decisions.

It is also widely acknowledged that organisations must develop their technical safety path, focusing on their plant, safety, reliability and human interfaces in order to achieve the target of no surprises and zero accidents. A focus on safety is the number one priority for companies, with operators, manufacturers, suppliers and consultants developing innovative and effective solutions in these areas.

With these challenges in mind, key players are meeting in London for Euro Petroleum Consultants’ International OpEx& Safety Forum (IOSF).

On the 15^th and 16^th January, participants will discuss case studies that outline their challenges, successes and key learnings as well as the latest trends, tools and techniques that will help drive us to achieve even greater levels of operational excellence improvements, allowing companies to innovate in the areas of ‘people’, ‘process’, ‘assets’ and ‘technology’.IOSF will include presentations by leading operators Essar Oil UK, ENOC, Saudi Aramco as well as cutting-edge consultants and service providers such as Aveva, Solomon Associates, DEKRA,KBR Consulting, and Emerson Process Management amongst others.

Solomon Associates,who are holding a pre-conference workshop at IOSF, believe that as the world becomes a global marketplace, market forces will lead to an unprecedented focus on controllable costs and this will require a change in philosophy.  “Successful companies will be prepared for change management and the remainder will try to react.  Investment in maximisation of value through effective use of management systems and reliability agendas will grow substantially” says Kevin McQuillan, Senior consultant at Solomon Associates. Colin Chapman, President of Euro Petroleum Consultants adds “ahigh level of operational efficiency has always been of great importance for oil, gas and petrochemical industries. Companies invest billions of dollars in high-quality assets acquisition, while the return on investment is only possible if plants are operated safely and efficiently. In recent years we have witnessed high volatility in oil and gas prices, so the importance of operational excellence is higher than ever”.

IOSF will provide opportunities for one-to-one discussions with leading experts thus providing a platform for gaining and sharing knowledge related to improving operational efficiency and safety, both at leadership level and in manufacturing operations.

For more information about the conference, please visit www.iosf.biz or contact the organiser directly at victoria_pope@europetro.com

Euro Petroleum Consultants [EPC] is an independent consulting group formed in London in 1996. We act as Client Project Engineer [CPE] for oil, gas and petrochemical producers by supporting the Client’s team through all stages of project development. EPC has offices in London, Dubai, Moscow, Sofia and Kuala Lumpur. In addition to our consulting activities, EPC organises high-level conferences and training courses for the oil, gas and petrochemicals sector. Our in-depth knowledge of the industry combined with extensive technical and commercial experience enables us to guarantee that our events are delivered to the very highest standards.

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It was stressed that over the years the Company had sustained a comprehensive approach to cost reduction. The work in this area involves a number of main activities.

One of those activities is cost optimization at the budgeting stage, which is achieved by, inter alia, seeking additional cost reduction opportunities. A conservative approach to budget planning helps restrain cost escalation and ensure excellent financial stability.

When drafting its investment program, Gazprom performs a thorough assessment of the cost efficiency of its projects and the initial need i for investment. The investment portfolio is managed in such a way so as to ensure the timely implementation of all major projects and the fulfillment of obligations for reliable gas supplies during peak demand in winter.

Gazprom and its subsidiaries achieve significant additional savings through cost optimization in individual business segments. At present, Gazprom is implementing the Operational Efficiency and Cost Reduction Program for 2018, which contains a list of specific measures in such fields as FEED, non-core asset optimization, energy saving and energy efficiency, and procurement.

The Gazprom Group places special emphasis on procurement planning and implementation. Careful analysis and monitoring is performed at every stage, from determining the need for goods, works and services to executing contracts. This allows the Company to find additional options for cost reduction with regard to both current expenses and investment projects.

The Management Committee was instructed to carry on with the cost optimization efforts in 2018 and to report the results of those efforts to the Board of Directors in the second quarter of 2019.

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Permitting of the survey has already commenced and data acquisition is expected to begin in second-quarter 2018, with preliminary data available during fourth-quarter 2018 and final data during first-quarter 2019. The data will be processed by TGS utilizing its modern land imaging technology to provide clients with high resolution imaging of prospective reservoir intervals.

The seismic survey is complemented by TGS’ extensive geologic products database in the SCOOP/STACK, comprising data from over 100,000 wells and multiple interpretive products including Basin Temperature Modeling.

“TGS continues to see momentum in our onshore seismic business. The Anadarko basin is recognized as a top U.S. shale play and it is generating high interest from producers nationwide.

This new survey helps to strengthen our leading position in the SCOOP/STACK play fairway and demonstrates continued support from our customers as they pursue exploration and development targets using our data. Along with the recently announced Hackberry Complex and existing Loyal Complex surveys, TGS now offers contiguous modern seismic data coverage in this prolific area,” commented Kristian Johansen, TGS CEO.

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The recreation area with a view of the sea spans about 280,000 square meters and includes five children’s playgrounds, four outdoor gyms, and two large synthetic turf soccer fields with seating for spectators serves as an example of the company’s efforts to fulfill its citizenship responsibilities.

At the heart of the park’s central plaza is a spectacular beach-front facility with an upscale family restaurant. Evenings over the area are mesmerizing and offer the entire family a truly eco-friendly experience. At a once seemingly unassuming location and built amid a cluster of diverse industry within a 30-mile radius, the facility now becomes a mini tourist attraction.

The park provides lifeguards through five of its watch towers that overlook the entire stretch of the resort. There is also a first-aid facility at one of the buildings.

A green belt along the cornice gives visitors a feeling of being on a green beach. The traditional date palm trees and grassy surfaces throughout the area are other added attractions.

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