OGIB Update on the Middle East oil & gas markets for OGIB 2013

Transcription

1 Update on the Middle East oil & gas markets for

2 Update on the Middle East oil & gas markets for To strengthen and support the Danish offshore sector and its continued efforts towards being competitive in a global world. Offshorenergy.dk Jens Bollerup Project Coordinator DK UAE jb@offshoreenergy.dk 2

3 Global top 20 on proven oil reserves 1 Saudi Arabia 262,600,000,000 (ca. 18%) 2 Venezuela 211,200,000,000 (ca. 14%) 3 Canada 175,200,000,000 (ca. 13%) 4 Iran 137,000,000,000 (ca. 9%) 5 Iraq 115,000,000,000 (ca. 8%) 6 Kuwait 104,000,000,000 7 United Arab Emirates 97,800,000,000 8 Russia 60,000,000,000 9 Libya 46,420,000, Nigeria 37,200,000, Kazakhstan Qatar 25,380,000, United States 20,680,000, China 14,800,000, Brazil 12,860,000, Algeria 12,200,000, Mexico 10,420,000, Angola 9,500,000, Azerbaijan 7,000,000, Ecuador 6,510,000, European Union 5,544,000,000 Source: CIA 3

4 Some actual production volumes in the Middle East oil & gas markets - Qatar: Al Shaheen bopd by APM - Qatar: 3rd largest gas reserves, 12th in oil - Kuwait: actually 3 mbopd rising to 4 in Iran: 4,3 mbopd reserves 137 bill. (9%) - Iraq: potentially 7-10 mbopd Maersk present - Saudi Arabia (KSA): actually 10,8 mbopd - Safaniya Oil Field, KSA, 1,2 mbopd - Oman has a strategic position vs. Iran - Lebanon and Cypern emerging oil & gas - Libya (no. 9) - strong restructuring potential - UAE (Abu Dhabi) worlds 7 th greatest oil reserves (97,8 bio.. barrels) and the worlds 7 th largest gas reserves (7 bio. m3). 4

5 Some important locations in the Gulf area Ex.locations of; - Dubai hub for international oil & gas - Bahrain shipping oil from KSA (Saudi) - Umm Qasar main port for Iraq - Basra oil & gas centre Southern Iraq - Erbil center in Kurdistan, Northern Iraq - Doha center for Qatar Petroleum - Fujairah refinaries and shipping - Abu Dhabi center for oil & gas in UAE 5

6 Al Shaheen offshore Qatar operated by Maersk Oil had been a success Qatar is probably most well known in Denmark for Maersk Oils operation of the Al Shaheen oil field producing app bpd of crude oil. Al Shaheen is situated north of Qatar close to the Iranian border. 6

7 Qatar a star in the Gulf Area of km2 (ca. 1/4 of Denmark - 40% of Jutland) Population of 0,25 mio. Qataris and 1 mio. expats Time zone UTC +3 hours Independency from UK in 1971 GDP per capita exceed USD in 2010 Member of the GCC free trade zone (GCC; Gulf Countries Council) Ruled by his Royal Highness Sheikh Hamad Bin Khalifa Al Thani, who seized power from his father in a peacefull coupe d`ètat back in Since the Gulf War in 1991 Qatar has built intimate military ties to USA and is now the location for the US Forces air operation centre in the Gulf area. USA s 5 th largest export market in the Middle East next to UAE, Israel, Saudi and Egypt Increasing political influence and responsibility in the Middle East Hosts for the football world championship in

8 Qatar a modern dessert state keeping up traditions 8

9 Abu Dhabi in UAE is still developing at a high level UAE reserves about 1 billion barrels of oil, ranking UAE as no. 7 on proven oil reserves. New licences will be provided in 2014 Maersk Oil is running up for this UAE investments in CleanTech, Green Village, AD Petroleum University etc. Abu Dhabi just 1 ½ hours drive from Dubai being a hub for major oil and gas companies from Europe, USA, Russia, Asia and Africa. Developed infrastructure and support functions Business friendly and stable environment The offshore industry is still developing A wide range of Danes and Scandinavians present Abu Dhabi hosting ADIPEC - international oil & gas event on 11 th -14 th November

10 Libya will be a market of particular interest Libya has reserves of bcm gas and 46 bb of oil (9 th largest reserves). Natural gas export will increase rapidly. Depends on infrastructure to Egypt and Tunisia. Possible gas production increase from 17 bcm in 2013 to 50 bcm in Own domestic consumption goes from 8 bcm in 2013 to 17 bcm in billion USD expected invested in oil & gas in (50% of total inv. In Libya). Libya is a fast growing economy after the revolution. Growth in GDP estimated to 17 pct. in 2013 and remaining at an average of 7 pct. Annually Libya is a cross over between suffering private economies and international investments. Danish companies are already looking into business opportunities in Libya. Ex. Nagtoraliq of Maniitsoq, Greenland today fishing offshore Libya as Misurata. Build at Semco Maritime (former Esmadan) in Esbjerg 1978 and serviced in 2012 by the Danish Grenaa Motorfabrik providing generators. 10

11 Other Middle East markets to look up for MENA oil producers GDP Growth is expected to stabilize at the level of 6-7 percent in 2013 and remain robust. Investments in oil & gas will continue. Kingdom of Saudi Arabia (KSA) is developed but still growing and fine tuning. Hard to get into, but having the right services and products vendors may gain success. Iraq is investing heavily in North (Erbil region) and South (Basra region). Maersk Oil is present in Kurdistan (North) expanding on-shore activities. Oman is developing and extending infrastructure for oil & gas. Planning for a pipeline to the Fujairah bunker port and oil terminal on the East coast of UAE to the Indian Ocean. Lebanon has some offshore fields. May be influenced by the actual political situation. Licenses will be provided by tenders in 2013/14. Maersk Oil was pre-qualified in May Egypt has some resources, and provides infrastructure. For Danish companies there may be some inroads by EDC (Egyptian Drilling Company) being 50% Maersk owned. Kuwait expanding by 1/3 from 3 to 4 mpd in 2020 even it is recognized as mature market. 11

12 Challenges by the Middel East Business Culture In general Qatar and UAE has a friendly business environment characterized by some typical Middle East trading opportunities and challenges to overcome; - International and competitive environment headed by expats - Personal relations are of great importance - Time consuming market entrance and negotiations - Difficulties by approaching responsible decision takers - Some market becomes mature, but new submarkets raises but very promising business opportunities by - Strong market demands - Increasing focus on quality, services and HSEQ in general - Financing is not an issue, even terms of payment will be discussed - Support can be achieved by local representatives 12

13 Update on the Middle East oil & gas markets for Offshoreenergy.dk (former Offshore Center Danmark) was present at ADIPEC November th ADIPEC 2013 takes place on November th in Abu Dhabi The Danish oil & gas industry will in 2013 be present by Dansk Eksportforening and Jens Bollerup representing Offshoreenergy.dk members. Please take contact if you have any interest in ADIPEC

14 Update on the Middle East oil & gas markets for To strengthen and support the Danish offshore sector and its continued efforts towards being competitive in a global world. Offshoreenergy.dk Jens Bollerup Project Coordinator DK UAE jb@offshoreenergy.dk 14