Shell has a long history in Iraq which began via a partnership with the Iraq Petroleum Company (IPC) during the 1920s. Since re-entering the country in September 2008 we have made extensive progress in several areas by first signing a Heads of Agreement to start midstream activities.
This involves gathering, treating and processing natural and associated gas that is currently being flared from three oil fields in southern Iraq – Rumaila, West Qurna1 and Zubair, for future domestic use.
The initiative was formally ratified by the Council of Ministers and as a result of the agreement between the South Gas Company, Shell and Mitsubishi, the country will benefit from the world’s largest gas flaring reduction project – the Basrah Gas Company (BGC).
The South Gas Company is the 51% majority shareholder in BGC, with Shell holding 44% and Mitsubishi Corporation the remaining 5%. Operations officially commenced on 1 May, 2013.
In January 2010, the Ministry of Oil and Shell signed a contract to develop the Majnoon oil field. Shell was awarded a 45% shareholding as lead operator and Petronas 30% with the remaining 25% going to the Iraqi State Partner (Missan Oil Company).
Shell and our partners successfully recommenced production from Majnoon in September 2013.
In May 2012 Shell signed a memorandum of understanding on a petrochemicals project called Nebras with Iraq’s Ministry of Industry & Minerals and work continues towards a Heads of Agreement.
Like many other IOCs, we have been able to make tangible progress by building on a solid foundation of local content strategy benefitting the local communities in and around the areas we operate.
Encouraging local content in areas such as Basrah, where we are the lead operator in Majnoon, is key to future development as the communities historically suffer from high unemployment rates combined with a young population lacking in key skills.
Our involvement develops supply chains to encourage the procurement of products and services provided by local companies. Local content also stimulates productivity creating a mutually beneficial and sustainable business environment for us to work in.
As Iraq continues to take significant strides forward in its rebuilding process, local content is the key to unlocking the potential of the country’s future generations as it encourages knowledge transfer and the sharing of best practices to deliver opportunities.
Iran has discovered a considerable amount of oil and gas reserves at its territory in the Caspian Sea. The reserves are estimated to contain of about 10 billion barrel of crude oil and 50 trillion cubic feet of natural gas. After some exploration studies, Iran may start production from the said resources.
In this article, after reviewing the petroleum activities of the Caspian Sea region, some conceptual approaches have been made on production, refining, and distribution of the above reserves as follows:
–It is estimated that priority will be given to the four Iranian coastal provinces at Caspian Sea to be fed from the above sources. Therefore, an oil and gas refinery will be constructed at one of these states.
–In case of higher oil production rate, the excess of extracted oil may be sent to Tehran and Tabriz refineries for supplying to other parts of Iran.
–Ultimately, the surplus of higher rate will be available for export.
However, construction of a large terminal including an oil & gas refinery and a petrochemical complex at Caspian Sea coast is proposed for all activities.
The environment impact of the said changes shall also briefly be described. Author: Farrokh Kamali, Advisor at Iran LNG Company (ILC), Iran
At present, the requirements of petroleum products and natural gas of Northern states of Iran near the Caspian Sea are being provided from oil and gas supplied from South fields of Iran. The crude oil is refined in Tehran and Tabriz refinery and natural gas is processed in Bidbolad and Hasheminejad gas refinery and supplied to the Northern states.
However, providing the petroleum products from these refineries and natural gas from far away gas fields are very costly because of consuming energy and heavy investments for transferring installations. Iran recent discoveries at Caspian Sea are an opportunity for the Northern states of Iran because of receiving petroleum products at low cost and being ensured of supply security.
The estimated rates of productions, the required facilities for installations, environment impacts of changes and mitigation measures for environment protection are described in this article.
Alumina supported CoMo has been mainly used as a commercial hydrodesulfurization(HDS) catalyst. On the other hand, since the HDS activity per unit surface area of the titania catalyst is significantly high, the potential of titania as a carrier for the HDS catalyst was considered. However, the titania catalyst has not been industrialized, because it had been technically difficult to boost the specific surface area of the catalyst to the same level as that of the alumina catalyst.
We developed a first generation titania supported CoMo catalyst (titania catalyst), which has a high specific surface area using the original preparation technology. The first generation titania catalyst not only has a high HDS activity, but also a high selectivity for the denitrogenation reaction, moreover, the consumed hydrogen amount during the process was lower in comparison to the alumina catalysts. However, the material cost and compact bulk density of the first generation titania catalyst was higher than the conventional alumina catalysts, therefore, it was not commercialized.
Based on the technology of the first generation titania catalyst, we have successfully developed the Hybrid Titania catalyst by combining the advantages of the titania and alumina carriers. The shortcomings of the first generation titania catalyst were successfully overcome by the Hybrid Titania catalyst, which also exhibited a more significant improvement in the HDS activity.
We have already industrialized the production of the Hybrid Titania catalyst and established the supply system. We have installed it in a commercial HDS unit in a certain refinery in Japan as the first commercial product of this catalyst, and the production of sulfur-free diesel oil from a mixture of straight run gas oil and FCC-LCO began in 2014. The Hybrid Titania catalyst is applicable to HDS processes with a feed of kerosene, thermal cracked oil, vacuum gas oil as well as diesel oil.
Oil & Gas Industry today touches lives in various forms; whether it is through reducing time-horizons by energizing our vehicles or through paints which add colours to our lives. Today’s life is impossible without Oil & Gas Industry. Interestingly, it’s also one of the most unpopular industries. Although Oil & Gas companies widely proclaim their primary mission as “Energizing Lives of People” but still a large chunk of population continues to reel under “Energy Poverty”. This disconnect with society is more evident in developing countries. Globally, nearly 1.3 billion people remain without access to electricity and 2.6 billion still do not have access to clean cooking facilities. These people are mainly in either developing Asia or sub-Saharan Africa. There is tremendous energy that Oil & Gas Companies can unleash for “Energy-Poor” populations through integrating their CSR strategies with their Mission.
The CSR programs of Oil & Gas companies in India are centred on classical strategies of doing social good and realizing Government mandate of investment in CSR. The recent economic turmoil coupled with increasing emphasis on inclusive & conscious capitalism around the world has fuelled a rigorous re-thinking on the underlying principles of Business. Even the purpose & understanding of CSR is changing. Business Gurus like C.K. Prahlad & Michael Porter have emphasized paradigm shift and idea of co-creating social value especially at the bottom of the pyramid.
This paper analyses the CSR strategies of Oil majors in India in the light of recent advancements in business understanding. We explore how can Oil & Gas companies in India take lead & involve various stakeholders to enable ‘Energy access to all’ and co-creating business & social value simultaneously. Our paper chalks out a holistic strategic roadmap to facilitate metamorphosis of an unpopular industry to a heroic saviour.
In overseas E&P projects local content issues become essential quite often. While the company has available resources to finance a new project; it may be faced with local problems of different character slowing or hindering the project. Middle East; South Asia; Latin America and CIS countries have their own particular features and problems. The companies are obliged to use local services and local labor; while at the same time they need to ensure project feasibility and perform in compliance with the best world practices.
Fundamentals of Local Content
In the last 10 years the concept of Local content has been gaining more ground and attracting increasing attention in the oil and gas industry. What started off as a vague definition of a particular form of regional development is now finding its way into the legislation of a great number of countries. Governments of many resource-rich developing countries are increasingly adopting local content rules aimed at boosting local participation of domestic firms in every stage of resource development. Historically, International oil companies (IOCs) have sought to maximize their economic outcomes, which have included some local spending in areas such as health, education and the environment, but nowadays delivering local benefits in the communities where extractive industries operate is no longer voluntary, in an increasingly big number of cases it is mandated by law. IOCs must now move beyond a philanthropic model.
Due to the fact that this concept is not yet fully established there are different definitions of local content. We refer to Local Content as a set of actions aimed at maximizing national value creation along the petroleum value chain through workforce development, value-addition, and the transfer of technology and knowledge. Such actions are designed to develop the industrial infrastructure and skills of the people in countries that host oil and gas projects. The regulatory environment in such countries is being readjusted to increase economic derivatives from the energy sector.
In light of this, there have been some changes on the global energy scene. In particular the relations between major resource holders and international oil companies have been changing. Host nations are seeking to maximize the overall economic benefits for their citizens, to create social and commercial benefits that progress economic growth and contribute to sustainable development. Therefore, National oil companies (NOCs) are reevaluating and setting new objectives and partnership roles to define participation in joint ventures and productionsharing agreements in their countries, and in doing so are emerging as relatively new change agents on the global energy scene.
The topic of the Collaborative EU-Project NEXT-GTL was the production of liquid fuels from natural gas. Novel and innovative routes were explored. Besides non-conventional routes for the catalytic formation of synthesis gas including membranes and direct catalytic conversion of methane to methanol, it encompassed the conversion of methane to aromatics followed by upgrading of the products by alkylation with ethane/propane. The aim of the upgrading discussed in this contribution was to avoid the toxicity of benzene as liquid fuel and to increase the research octane number (RON) by producing primarily ethylbenzene, n-propylbenzene and cumene as products of the alkylation reaction. Experiments were performed in a flow-type reactor at a pressure of approximately 6 bar, a reaction temperature of 350 °C and a reactant stream composed of ethane, propane and benzene. The catalyst with the best performance was found to be the bifunctional zeolite catalyst 1.7Pt-H-ZSM-5 with an nSi/nAl ratio of 35. The reaction yielded at least 35 wt.-% alkylaromatics after 5 h on stream. The mixture had a RON of at least 105. The RON was calculated by multiplying the molar fraction of each compound in the liquid phase with the corresponding blending RON value of the pure compound and adding the results to the final blending RON. After 70 h on stream, the yield of alkylaromatics was around 24 wt.-% with a RON of 103. The catalyst could be regenerated in hydrogen, and the long-term performance was reproduced after regeneration.
Zhang, Hualin (CNPC) | He, Xinchun (CNPC) | Pan, Tao (CNPC) | Pei, Yong (CNPC) | Wu, Kewei (Research Institute of Petroleum Exploration & Development, CNPC) | Zhu, Kaicheng (Research Institute of Petroleum Exploration & Development, CNPC) | Xu, Bin (Research Institute of Petroleum Exploration & Development, CNPC)
Throughout history, global oil and gas industry has been driven by innovation. Especially since the 21st century, innovation-driven development has become the strategic choice for oil and gas companies throughout the world to enhance their core competitiveness, strengthen their comprehensive strength, and achieve sustainable development. In this paper, both theoretical research and case study, as well as qualitative and quantitative analysis are applied, and the innovation-driven development cases of 10 major oil and gas companies at home and abroad are studied. Based on the analysis and study, we summarize the features of innovation-driven development in the oil and gas industry, build the index system and “wheel” model for innovation-driven development capacities in terms of technology, management, talent and culture in the oil and gas industry, conduct enterprise case study, and provide a theoretical basis and data method for oil and gas industry to achieve innovation-driven development in a more efficient way.
The concept of “innovation-driven” development was first established by Michael Porter, a famous management scientist, as a country’s development stage in the 1980s. It is mainly defined as a power-driven economic growth driven by innovation elements and investment. At present, it has become a development model generally recognized by countries, sectors and enterprises. Through analyzing a large number of domestic and foreign literatures and examining the current development of the oil and gas industry, we believe that we should study innovationdriven development by understanding both innovation and driving, namely, through innovation, we will drive development. In the oil and gas industry, to promote innovation-driven development, we must give full play to the role of innovation elements, enhance innovation-driven development capacities, help make more innovative achievements and apply them widely in production and commerce, keep generating new growth momentums, and achieve sustainable business development.
The looming talent gap in the oil and gas industry has been widely discussed. The new generation entering the workforce that could fill the talent gap is a different generation. The so called generation Y, those born between the early 80s and late 90s, has different views and approaches to work. If companies want to be successful in the long-run, the new generation needs to be successfully integrated into companies and companies will have to adapt to the new generation. But what is so different about this new generation?
This talk will highlight the main opportunities and challenges going forward, using firsthand experience of generation Ys working in the industry or taking their career choices now: Next to the differing attitudes and approaches, the image of the oil industry is a main challenge.
The oil and gas industry has one of the oldest workforces in the world1. The imminent retirement of the baby boom generation predominantly making up this workforce is referred to as the “big crew change”. A larger part of these jobs will need to be filled by young professionals of the incoming generation y, born between 1980s and mid 1990s. As this new generation enters the labour market with different values and expectations, companies will need to adapt their recruitment and retention strategies. Notably corporate social responsibility plays a crucial role in generation y employer decisions. This paper examines some of the characteristics of generation y and the expectations this generation has of its future employer.
The paper is structured as follows. First some of the consequences following the big crew change are examined. Second, the characteristics of generation Y will analysed. Third, employee preferences are looked at in more detail, especially with regards to the oil and gas industry. The paper draws to a close by highlighting the main opportunities and challenges going forward.
Across the world the “new resource” owners are looking for significant investments from joint venture partners in the broader development of their economies. The expectation is evident in the following examples:
Brazil – “Contractual commitment of purchasing local goods and services on a competitive basis with the objective of developing local suppliers and technology and increasing employment and income growth.”
Nigeria – “ Nigerian content means the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.”
Saudi Arabia – LC is defined as the value added or created in the Saudi economy through the utilization of in- Kingdom human and material resources in the provision of goods and/or services.
In bidding for and executing the capital project joint venture partners’ seek to fulfil local content expectations through a variety of opportunities. These include the use of local workforce, local suppliers for goods and services, and investments into the social infrastructure e.g. schools, roads, hospitals, railways etc.
Based on Accenture’s capital project research, experiences and roles in supporting clients in the execution of capital projects, Accenture has developed a Local Content framework which spans strategy definition to implementation. Using this framework Accenture will share with the audience its perspectives on the maturity of local content capability, the value orientation of local content programs and the performance of contractors in meeting local content expectations and hence securing the supply of equipment, materials and local content infrastructure. Accenture will be able to draw examples from the Middle East, Nigeria, Canada, Australia, Brazil and South Africa.
This paper is aimed at oil and gas senior executives that are responsible for the defining, implementing and monitoring local content strategies.
The report is based on the data obtained as a result of consultancy services providing and Energy Management Systems development in accordance with the ISO 50001:2011 “Energy Management System requirements and guidance for use”. We would like to note that the standard was introduced in 2011.
The report is presented by a leading specialist in EnMS development and implementation. The author’s point of view is based on international experience in diagnostic audits of EnMS, the system elements development and implementation, trainings carrying out for top managers and employees of several industrial enterprises. The report has been developed under the case study principle, considering particular difficulties which can appear while EnMS implementation.
The author provides a brief insight into the history of ISO 50001 development, investigates the evolution of normative regulations, which have influenced EnMS implementation practice. The major part of the report is dedicated to the analysis of practical results for the problems solving, which occur before the system implementation. The author proves basing on the practical experience, that one of the most significant problems is related to the fact that Energy Efficiency is not integrated to the practice of day-to-day management in the enterprises.
Several years of experience in terms of EnMS implementation gives an opportunity to share the results of achieved economic effect, identify the most successful sectors and enterprises, which base their activity on systematic Energy Efficiency advancement. The author analyses the drawbacks, which did not allow other companies achieve meaningful results. The experience of Russian refineries and petrochemical companies shows that it is possible to decrease annual energy consumption by 2-5%. Such energy Efficiency values are quite comparable with the EU ones (2-3&$37;). To end up the report, the author provides information about perspectives for the 50000 series of standards development, stating targets and required changes in the area of energy management.