Oil & Gas Opportunities in the GCC nations Neil Golding Head of Oil & Gas The EIC
Introduction Five year review of contracting activity in the GCC - Where the contracts have been awarded - Companies being awarded work, review of activity and recent trends - Impact of oil price on each of the sectors Where is the money being spent currently and by who? - Overview of projects currently under development - Upcoming EPC contract awards Where will the opportunities be in the future? - Proposed CAPEX by country and operator Where next for the region? - Overview of opportunities and challenges
Five year review of contracting activity - Upstream 25 Galfar E&C Mott MacDonald Punj Lloyd 20 Samsung Engineering CCC SNC Lavalin Inc. 15 CH2M Hill Larsen & Toubro (L&T) Fluor Corporation 10 Amec Foster Wheeler Saipem SpA Petrofac 5 NPCC McDermott International Inc Technip 0 2010 2011 2012 2013 2014 2015 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates WorleyParsons 0 5 10 15 20 Award As part of JV
Five year review of contracting activity - Midstream Tecnicas Reunidas SA 20 Essar Group KBR 18 Punj Lloyd 16 Saipem SpA Archirodon Group N.V. 14 Petrojet CCC 12 Petrofac 10 Fluor Corporation Dodsal Group 8 Tebodin Consulting Engineers 6 CB&I NPCC 4 Larsen & Toubro (L&T) 2 Amec Foster Wheeler Technip 0 2010 2011 2012 2013 2014 2015 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates WorleyParsons 0 1 2 3 4 5 6 7 Award As part of JV
Five year review of contracting activity - Downstream 45 40 35 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 2015 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates Maire Tecnimont Foster Wheeler Linde Group UOP Chiyoda Corporation Bechtel Corporation Daewoo E&C SK E&C KBR Saipem SpA Hanwha E&C Kentz E&C CTCI Corporation GS E&C Samsung Engineering Petrofac Tecnicas Reunidas SA JGC Fluor Corporation CB&I Technip Jacobs Engineering Group Inc. Amec Foster Wheeler Daelim Industrial Co Ltd 0 2 4 6 8 10 12 14 16 18 Downstream As part of JV
Where is the money being spent currently and by who? ESTIMATED CAPEX ($ MILLION) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 PDO BAPCO ORPIC Ma'aden Petro-Rabigh Al Hosn Gas Shell RasGas Company SABIC Zadco Gasco ADCO Duqm Refinery BP Takreer Kuwait Oil Company (KOC) Sadara Chemical Company Qatar Petroleum (QP) KNPC Saudi Aramco 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 ESTIMATED CAPEX ($MILLION) Downstream Midstream Upstream Downstream Midstream Upstream
Major projects currently under development Project Name CAPEX ($M) Start-up Year Country Sector Operator Project Stage/Status Khazzan and Makarem Gas Fields 16,000 2017 Oman Upstream BP EPC/Tendering & Bidding Al-Zour Refinery (aka New Refinery Project) 15,000 2019 Kuwait Downstream Kuwait National Petroleum Company (KNPC) EPC/Tendering & Bidding Duqm Refinery 15,000 2019 Oman Downstream Duqm Refinery EPC/ Prequalification Zakum Facilities Build-up (Upper Zakum Major Projects) 12,000 2017 UAE Upstream Zakum Development Company (Zadco) EPC/Contract Bul Hanine Oil Field Redevelopment 11,000 2022 Qatar Upstream Qatar Petroleum (QP) EPC/Contract Abu Dhabi Onshore and Offshore Sour Gas Development Programme, Bab Field 10,000 2020 UAE Upstream Shell FEED/Contract Mina Al-Ahmadi Refinery Clean Fuels Project (KNPC) 9,000 2017 Kuwait Downstream Kuwait National Petroleum Company (KNPC) EPC/Contract Mina Abdulla Refinery Clean Fuels Project (KNPC) 9,000 2018 Kuwait Downstream Kuwait National Petroleum Company (KNPC) EPC/Contract Jizan (Jazan) Grassroots Export Refinery 9,000 2018 Saudi Arabia Downstream Saudi Aramco EPC/Contract Abu Dhabi Onshore Oil Production Capacity Increase 7,500 2017 UAE Upstream Abu Dhabi Company for Onshore EPC/Contract Project (aka The 1.8 Million Project) Oil Operations (ADCO) Al Fadhili Gas Plant 6,500 2018 Saudi Arabia Downstream Saudi Aramco EPC/Tendering & Bidding Northern Fields Development Project (Ratqa and Abdali fields) 5,300 2017 Kuwait Upstream Kuwait Oil Company (KOC) EPC/Contract Sitra Refinery Upgrade 5,000 2019 Bahrain Downstream Bahrain Petroleum Company (BAPCO) FEED/Contract
Upcoming EPC contract awards Project Name CAPEX ($) Operator Number of EPC Country Sector million contracts Khazzan and Makarem Gas Fields 16,000 BP 2 Oman Upstream Al-Zour Refinery (aka New Refinery Project) 15,000 KNPC 5 Kuwait Downstream Abu Dhabi Onshore and Offshore Sour Gas Development Programme, Bab Field 10,000 ADNOC Unknown UAE Upstream Al Fadhili Gas Plant 6,500 Saudi Aramco 3 Saudi Arabia Downstream Tacaamol Aromatics Complex - ChemaWEyaat 4,500 Tacaamol 2 UAE Downstream Liwa Plastics Project 3,600 ORPIC 4 Oman Downstream Idd el-shargi North Dome, Phase 5 3,000 Occidental Petroleum 2 Qatar Upstream Empty Quarter, South Ghawar & Jafurah Tight Gas Development 3,000 Saudi Aramco 2 Saudi Arabia Upstream Bab Integrated Facilities Projects 2,000 ADCO Unknown UAE Upstream Saudi Aramco Master Gas System Expansion - Phase 2 1,700 Saudi Aramco 4 Saudi Arabia Midstream Hail Gas Development 1,600 Gasco Unknown UAE Upstream
Where will the opportunities be in the coming years ESTIMATED CAPEX ($MILLION) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Kuwait National Petroleum Company (KNPC) Occidental Petroleum Corp. (Oxy) China Sonangol International Holding Limited Abu Dhabi Polymers Company (Borouge) BP Total Qurain Petrochemical Industries Company (QPIC) Petrixo Petroleum Development Oman (PDO) Gulf Petrochemical Industries Co. (GPIC) Kuwait Finance House (KFH) Crescent Petroleum Saudi Aramco Kuwait Gulf Oil Company (KGOC) Petrochemicals Industries Co (PIC) Qatar Petroleum (QP) South Rub Al-Khali Company Limited (SRAK) South Asia Gas Enterprise Pvt Ltd (SAGE) Abu Dhabi National Oil Co (ADNOC) SABIC (Saudi Basic Industries Corporation) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 ESTIMATED CAPEX ($MILLION) Downstream Midstream Upstream Downstream Midstream Upstream
Where next for the GCC region? OPEC influence on the oil price / market share Iran additional oil into the open market? Offshore Red Sea Unconventional hydrocarbons Saudi Arabia Enhanced Oil Recovery Growing demand for LNG?
Power, Nuclear and Renewables Opportunities in the GCC nations Thomas Hoefling Regional Analyst The EIC
Introduction Five year review of contracting activity in the GCC - Where the contracts have been awarded - Companies being awarded work, review of activity and recent trends Projects currently under development Where will the opportunities be in the next 5 years? - Proposed CAPEX by country Where next for the region? - Overview of opportunities for Power, Nuclear and Renewables
CONTRACTS AWARDED Five year review of contracting activity Power, Nuclear & Renewables 25 20 15 10 5 0 2010 2011 2012 2013 2014 2015 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates
Five year review of contracting activity Power, Nuclear & Renewables Alstom Siemens GE OEM Supply Rotating Equipment 0 5 10 15 20 Al-Toukhi Daewoo Engineering & Construction Bahwan Engineering Group Jacobs Engineering Group Inc. SEPCO Electric Power Construction Mott MacDonald Pöyry Group Alstom Arabian Bemco Contracting Co Hyundai Heavy Industries (HHI) Larsen & Toubro (L&T) ABB Siemens PMC, FEED, EPC 0 2 4 6 8 10 Award As Part of JV
ESTIMATED CAPEX $MILLIONS NO. OF PROJECTS Projects currently under development 25,000 20 18 20,000 16 14 15,000 12 10 10,000 8 6 5,000 4 2 0 0 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab CAPEX Power Projects CAPEX Renewables Projects Emirates CAPEX Nuclear Projects No. of Power Projects No. of Renewables Projects No. of Nuclear Projects
Major projects currently under development - Power Project Name CAPEX ($M) Start-up Year Country Sector Operator Jazan (Jizan) IGCC Power Plant 7,600 2018 Saudi Arabia Power Saudi Aramco Shuqaiq Power Plant 3,300 2017 Saudi Arabia Power Saudi Electricity Company (SEC) Jeddah South Power Plant 3,120 2017 Saudi Arabia Power Saudi Electricity Company (SEC) Abu Dhabi Hydrogen Power & CCS Project (Carbon Capture & Storage) 2,200 2018 UAE Power Masdar, ADNOC Mirfa IWPP 1,800 2017 UAE Power Engie Rabigh IPP Phase II 1,360 2017 Saudi Arabia Power Qatar Economic Zone Power and Water Plant Al Mourjan for Electricity Production Company (ACWA, Samsung C&T, SEC) 1,090 2018 Qatar Power Qatar Electricity & Water Company (QEWC) Salalah 2 IPP 630 2018 Oman Power ACWA Power, Mitsui & Co, SEPCO III Duba 1 (Dibba, Dhuba) Integrated Solar and Gas Power Plant 600 2017 Saudi Arabia Power Saudi Electricity Company (SEC) Project Stage/Status EPC/Contract EPC/Contract EPC/Contract EPC/Tendering & Bidding EPC/Contract EPC/Contract EPC/Tendering & Bidding EPC/Contract EPC/Tendering & Bidding
Major projects currently under development Nuclear & Renewables Project Name CAPEX ($M) Start-up Year Country Sector Operator Project Stage/Status Barakah Nuclear Power Project (ENEC) 20,000 2017 UAE Power KEPCO, HHI, Doosan Heavy Industries & Construction; Samsung Engineering EPC/Contract Project Name CAPEX ($M) Start-up Year Country Sector Operator Project Stage/Status Masdar - Noor 1 Solar Power Plant 750 2017 UAE Renewables Masdar Prequalification Contract Kuwait Ministry of Electricity & Water (MEW), Kuwait, Shagaya Renewable Energy Complex 600 2017 Kuwait Renewables Institute for Scientific Research (KISR) Tendering & Bidding Sharjah Waste-to-Energy Plant 500 2017 UAE Renewables Bee ah Mohammed bin Rashid al-maktoum Solar Park (Phase II) 400 2017 UAE Renewables ACWA, TSK Dhofar Onshore Windfarm (RAECO) 200 2017 Oman Renewables Rural Areas Electricity Company Saoc (RAECO) Contract Contract Tendering & Bidding
ESTIMATED CAPEX $MILLIONS Where will the opportunities be in the next 5 years? 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates CAPEX Future Power Projects CAPEX Future Renewables Projects CAPEX Future Nuclear Projects
Upcoming projects Power, Nuclear & Renewables Project Name CAPEX ($M) Start-up Year Country Sector Client/Operator Project Stage/Status Facility D - IWPP 3,000 2019 Qatar Power Mitsubishi Corp. & Tepco BOO/Contract awarded Al-Zour IWPP Phase II 2,500 2018 Kuwait Power Hassyan Clean Coal IPP - (Dubai Coal Fired Power Plant) Kuwait Authority for Partnership Projects (KAPP) 2,000 2020 UAE Power Dubai Electricity & Water Authority (DEWA) Sohar 3 and Ibri IPP 2,000 2018 Oman Power Al Abdaliyah ISCC Plant 771 2017 Kuwait Power Oman Power and Water Procurement Company Kuwait Authority for Partnership Projects (KAPP) Jebel Ali K Station Expansion (Phase III) 400 2019 UAE Power Dubai Electricity & Water Authority (DEWA) BOO/Prequalification BOO/Bids under Evaluation BOO/Prequalification BOT/Prequalification Feasibility/Tendering & Bidding Project Name CAPEX ($M) Start-up Year Saudi Nuclear Power Programme 5,000 2022 Country Sector Client/Operator Project Stage/Status Saudi Arabia Power King Abdullah City for Atomic & Renewable Energy (KACARE) Feasibility Study Project Name CAPEX ($M) Start-up Year Country Sector Client/Operator Project Stage/Status Mohammed bin Rashid al-maktoum Solar Park (Phase III) 1,500 2020 UAE Renewables Dubai Electricity & Water Authority (DEWA) Bahrain Waste-to-Energy Plant 1,000 2018 Bahrain Renewables Bahrain Ministry of Works, Municipalities Affairs and Urban Planning Kabd Energy from Waste Project 880 2019 Kuwait Renewables Kuwait Authority for Partnership Projects (KAPP) Consultancy/Tendering & Bidding Bids under Evaluation BOT/Prequalification
Where next for the region? Recognised growth in population and industrialisation lead to increasing energy demand. Increasing installed capacity to cover energy demand Enhancing efficiency of energy production facilities Diversifying energy mix to reduce dependency on feedstock imports Redefining policies and reallocating subsidies to benefit clean energy
Nuclear power perspective UAE Construction of Barakah Nuclear Power Project currently underway First unit to come online in 2017, 5.6GW installed capacity by 2020 No further developments proposed Saudi Arabia Plans to construct 16 nuclear reactors until 2035 (estimated CAPEX $80bn) First unit expected to be operational by 2022 Bahrain, Kuwait, Oman and Qatar Currently not pursuing any civil nuclear programmes
Clean energy perspective Solar energy Dropping solar PV system prices facilitate viability and lower tariffs ISCC (integrated solar combined-cycle technology) facilitates combination with other feedstock Waste-to-Energy GCC countries among the world s largest waste producers WtE represents a win-win situation energy production and economisation of landfill capacity CCS Carbon Capture and Storage GCC countries heavily dependent on conventional power generation resulting in extensive CO 2 production Potential to improve carbon footprint of hydrocarbon-driven economies Utilisation of captured CO 2 for EOR
Conventional power perspective CCGT (combined-cycle gas turbine) the predominant technology for proposed and future projects No major oil-fired power plant developments expected Clean coal-fired power plants to gain in importance in order to diversify energy mix Conversion of existing facilities to combined-cycle systems in order to increase power generation efficiency Utilities tend to develop new projects as IPP (independent power projects)
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Neil Golding Head of Oil and Gas neil.golding@the-eic.com Thomas Hoefling Regional Analyst - Middle East thomas.hoefling@the-eic.com