Mena Oil and Gas Projects Market 2015

www.meedinsight.com Mena Oil and Gas Projects Market 2015 A comprehensive overview of the Mena upstream oil and gas, downstream refining and petrochemical sectors, with a particular focus on the projects market A MEED Insight report

Table of contents Table of contents... 2 List of tables... 7 List of figures... 9 1. Preface... 12 2. Executive summary... 13 3. Introduction... 16 3.1 Future projects and forecasts...25 4. Algeria... 29 4.1 Overview...29 4.2 Sonatrach...31 4.3 Regulatory environment...32 4.4 Licensing rounds...32 4.5 Upstream oil...34 4.5.1 Overview... 34 4.5.2 Oil projects... 36 4.6 Upstream gas...37 4.6.1 Major gas projects... 40 4.7 Refining...43 4.7.1 Overview... 43 4.7.2 Grassroots refinery programme... 43 4.7.3 Butane storage... 44 4.8 LNG...45 4.9 Pipelines...46 4.9.1 Domestic network... 46 4.9.2 International network... 48 4.10 Petrochemicals...50 4.11 Projects...51 5. Bahrain... 53 5.1 Overview...53 5.2 Structure...53 5.3 Upstream oil...55 5.4 Gas...56 5.5 Refining...58 5.6 Petrochemicals...60 5.7 Projects market...60 5.8 Contractors...63 6. Egypt... 64 6.1 Overview...64 6.2 Organisation...65 6.3 Oil and gas hierarchy...66 6.4 Oil production...68 6.5 Natural gas production...69 The Mena Oil & Gas Market 2015 2

6.6 Exploration and development terms...72 6.7 Main players...76 6.7.1 BP... 76 6.7.2 Eni... 78 6.7.3 BG... 78 6.7.4 Shell... 80 6.7.5 Smaller operators... 80 6.7.6 Upstream project work... 80 6.8 Refining...82 6.9 Petrochemicals...84 6.9.1 Olefins... 84 6.9.2 Petrochemical project pipeline... 87 6.9.3 Tahrir Petrochemicals... 88 6.10 Fertilisers...89 6.10.1 The Mopco case... 90 6.11 Egypt s oil and gas projects market...92 6.12 Contractors...93 7. Iraq... 95 7.1 Overview...95 7.2 Structure...95 7.3 Upstream oil...98 7.4 Bid rounds... 100 7.5 Future production scenarios... 104 7.6 Gas... 105 7.7 Gas processing... 109 7.8 Midstream projects... 111 7.9 Export terminals... 111 7.10 Jordan export pipeline... 113 7.11 Refining... 115 7.12 Refinery projects... 118 7.13 Petrochemicals... 121 7.14 Projects market... 124 7.15 Contractors... 128 8. Jordan... 132 8.1 Overview... 132 8.2 Structure... 134 8.3 Upstream oil... 135 8.3.1 Oil shale... 135 8.4 Upstream gas... 136 8.4.1 Gas imports... 137 8.4.2 Aqaba LNG terminal... 137 8.5 Refining/storage... 138 8.6 Projects... 139 9. Kuwait... 140 9.1 Overview... 140 9.2 Structure... 142 The Mena Oil & Gas Market 2015 3

9.3 Upstream oil... 144 9.3.1 Export facilities... 145 9.3.2 Upstream projects... 145 9.3.3 Other projects... 150 9.4 Gas... 150 9.5 Refining... 152 9.5.1 New refinery project... 153 9.5.2 Clean fuels project... 154 9.5.3 Other projects... 155 9.6 Petrochemicals... 156 9.6.1 Future plans... 157 9.7 Projects market... 158 9.8 Contractors... 161 10. Libya... 162 10.1 Overview... 162 10.2 Civil war... 164 10.3 Structure... 165 10.4 Upstream oil... 169 10.5 Gas... 173 10.6 Refining... 175 10.7 Petrochemicals... 177 10.8 Projects market... 179 11. Morocco... 183 11.1 Overview... 183 11.2 Licensing regime... 183 11.3 Upstream oil... 184 11.3.1 Oil shale... 184 11.4 Gas... 185 11.5 Upstream... 186 11.6 LNG... 188 11.7 Refining... 189 11.8 Projects market... 190 12. Oman... 191 12.1 Overview... 191 12.2 Structure... 192 12.1 Upstream oil... 194 12.1 Gas... 200 12.1.1 Oman Gas Company spending... 203 12.1.2 The Khazzan project... 204 12.2 Refining... 208 12.2.1 Sohar refinery expansion... 209 12.2.2 Duqm refinery and petrochemical complex... 209 12.3 Petrochemicals... 210 12.3.1 Liwa Plastics... 212 12.3.2 Sohar... 213 12.3.3 Salalah... 214 The Mena Oil & Gas Market 2015 4

12.4 Projects market... 215 12.5 Contractors... 217 13. Qatar... 220 13.1 Overview... 220 13.2 Structure... 220 13.3 Upstream oil... 221 13.4 Gas... 225 13.5 LNG... 227 13.5.1 Dolphin gas... 229 13.5.2 Al-Khalij and Barzan gas developments... 229 13.5.3 GTL... 229 13.5.4 NGL... 230 13.6 Refining... 231 13.7 Petrochemicals... 232 13.7.1 Overview... 232 13.7.2 Future petrochemical projects... 235 13.8 Projects market... 237 13.9 Contractors... 239 14. Saudi Arabia... 240 14.1 Overview... 240 14.2 Structure... 240 14.3 Upstream oil... 242 14.4 Natural gas... 247 14.5 Refining... 251 14.6 Petrochemicals... 255 14.7 Issues... 257 14.8 Outlook... 258 14.9 Refining petrochemicals integration initiative... 258 14.10 Key companies... 259 14.10.1 Sabic... 259 14.10.2 Saudi Aramco... 261 14.10.3 Sadara Chemical Company... 262 14.10.4 PetroRabigh... 263 14.10.5 Other major producers... 263 14.11 Projects market... 264 14.12 Contractors... 267 15. Tunisia... 270 15.1 Overview... 270 15.2 Structure... 272 15.3 Oil and gas production... 272 15.4 Refining... 276 15.5 Projects market... 276 16. UAE... 278 16.1 Overview... 278 16.2 Structure... 280 16.2.1 Supreme Petroleum Council... 281 The Mena Oil & Gas Market 2015 5

16.2.2 Abu Dhabi National Oil Company (Adnoc)... 281 16.2.3 Non-Adnoc subsidiaries... 284 16.2.4 Dubai and the Northern Emirates... 285 16.3 Upstream oil... 287 16.3.1 Onshore... 288 16.3.2 Offshore... 289 16.4 Gas... 292 16.4.1 Offshore gas and LNG... 295 16.4.2 Dolphin Energy... 297 16.5 Refining... 298 16.5.1 Other refiners... 301 16.5.2 Oil storage... 302 16.6 Petrochemicals... 302 16.6.1 Abu Dhabi Polymers Company (Borouge)... 303 16.6.2 Abu Dhabi Chemicals Company (Chemaweyaat)... 305 16.7 Projects market... 305 16.8 Contractors... 309 The Mena Oil & Gas Market 2015 6

List of tables Table 1: Selected future oil, gas and chemicals projects in Mena... 28 Table 2: Residential and commercial natural gas prices... 71 Table 3: Awards stemming from the 2011 Egas bid round... 75 Table 4: Blocks offered by EGPC in the Gulf of Suez and Western Desert... 76 Table 5: Selected upstream projects in Egypt, 2009-present... 81 Table 6: Local refineries, 2013... 82 Table 7: Planned and recently commissioned petrochemical and fertiliser projects... 91 Table 8: Selected major planned oil and gas projects... 93 Table 9: EPC contractor ranking by value of contracts won, 2009-14 ($m)... 94 Table 10: Key NOCs... 97 Table 11: Distribution of oil reserves, 2010... 98 Table 12: Licensing round one... 101 Table 13: Summary of oil field licences... 102 Table 14: Summary of the fourth licensing round... 103 Table 15: Gas fields signed under the third licensing round... 108 Table 16: Iraq-Jordan export pipeline infrastructure project... 115 Table 17: Current installed refineries... 116 Table 18: Refinery upgrade programme, 2012-19... 118 Table 19: Announced grassroots refinery projects... 119 Table 20: Petrochemical plants... 121 Table 21: Fertiliser plants... 122 Table 22: Pre-construction phase projects planned in Iraq... 125 Table 23: Selected contract awards, 2009-14... 129 Table 24: Cost of consumed energy... 132 Table 25: Jordan s production of crude oil and natural gas, 2009-13... 134 Table 26: Jordan oil refinery production, 2009-13 ( 000 tonnes)... 138 Table 27: Imports of crude oil and oil products, 2009-13 ( 000 tonnes)... 138 Table 28: KOC drilling programme... 150 Table 29: Kuwait projects forecast by status... 160 Table 30: Selected Libya oil fields... 165 Table 31: Libya oil producing fields... 171 Table 32: Downstream facilities... 175 Table 33: Export terminals... 176 Table 34: Petrochemicals plants... 177 Table 35: Libya major oil and gas projects, October 2014... 181 Table 36: Oman oil and gas blocks... 195 Table 37: Output by producer, 2011-13 ( 000 b/d)... 197 Table 38: Oil sector contract awards... 198 Table 39: Major planned and unawarded oil projects... 199 Table 40: Major gas project awards... 202 Table 41: Major planned or unawarded gas projects... 207 Table 42: Selected Oman petrochemicals projects... 214 Table 43: QP board members, September 2012... 221 Table 44: Mesaieed and Laffan refineries... 232 Table 45: Qatar ethylene producers... 232 Table 46: Saudi Aramco domestic refining joint ventures... 252 Table 47: International joint ventures... 252 Table 48: Saudi Arabia major refinery projects... 255 Table 49: Selected Saudi Arabia petrochemicals projects... 256 The Mena Oil & Gas Market 2015 7

Table 50: Oil and gas concessions, without Etap... 275 Table 51: Supreme Petroleum Council, June 2011... 281 Table 52: Major oil and gas operating companies... 286 Table 53: Abu Dhabi oil producers... 291 Table 54: Refineries, October 2014... 299 Table 55: Existing and planned oil storage capacity in Fujairah, 2012-14 ( 000 cubic metres)... 302 Table 56: Main construction packages on the Borouge 3 expansion... 304 Table 57: Selected major planned oil and gas projects... 309 Table 58: The 10 largest oil and gas contract awards under execution... 311 The Mena Oil & Gas Market 2015 8

List of figures Figure 1: Mena proven oil reserves, 31 December 2013... 16 Figure 2: Mena oil production*, 2013 (actual output)... 17 Figure 3: Mena gas reserves, 31 December 2013... 17 Figure 4: Mena gas production, 31 December 2013 (actual)... 18 Figure 5: Mena oil and gas contract awards, 2009-14... 19 Figure 6: Mena contract awards by state, 2009-14 ($m)... 20 Figure 7: Oil and gas contract awards by country, 2009-14... 21 Figure 8: EPC awards by subsector, 2009-14 ($m)... 22 Figure 9: Contract awards by client, 2009-14... 23 Figure 10: The 20 largest contractors in Mena, 2009-14... 24 Figure 11: Unawarded major oil and gas projects in Mena, October 2014... 26 Figure 12: Breakdown of Mena planned and unawarded oil and gas projects by subsector ($m)... 26 Figure 13: Indicative value of major oil and gas awards in Mena, 2014-17... 27 Figure 14: Algeria oil and gas facilities... 30 Figure 15: Sonatrach subsidiaries and shareholdings... 31 Figure 16: Algeria bid round... 33 Figure 17: Algeria oil consumption, 2009-13... 35 Figure 18: Algeria s oil and gas fields... 35 Figure 19: Algeria gas production, 2009-13... 37 Figure 20: Algeria 2013 LNG exports (billion cubic metres)... 38 Figure 21: Algeria 2013 gas exports via pipeline (billion cubic metres)... 38 Figure 22: Gas export routes... 39 Figure 23: Algeria gas consumption... 40 Figure 24: Downstream oil and gas infrastructure... 45 Figure 25: Algeria pipeline network... 47 Figure 26: Galsi pipeline route... 49 Figure 27: TSGP route... 50 Figure 28: Algeria project awards, 2009-14... 51 Figure 29: Algeria project awards by sector, 2009-14 ($m)... 51 Figure 30: Algeria projects forecast by status... 52 Figure 31: Algeria projects forecast by sector... 52 Figure 32: Bahrain s oil production and consumption, 2009-13... 56 Figure 33: Bahrain gas reserves, 1993-2013... 56 Figure 34: Bahrain gas production, 2009-13... 57 Figure 35: Bahrain project awards, 2010-13... 61 Figure 36: Bahrain projects awards by sector, 2010-13 ($m)... 62 Figure 37: Bahrain projects forecast by status... 62 Figure 38: Bahrain projects forecast by sector ($m)... 63 Figure 39: Egypt oil and gas fields and discoveries... 64 Figure 40: Structure of the oil and gas sector... 65 Figure 41: Egypt petroleum exports, 2003-13... 67 Figure 42: Oil and gas trade, 2012-13... 68 Figure 43: Egyptian crude output/consumption, 2003-13... 69 Figure 44: Egypt oil production and demand, 1970-2013... 69 Figure 45: Gas output/consumption, 2003-13... 71 Figure 46: Gas production and demand, 1986-2014... 72 Figure 47: Overdue payments from EGPC to IOCs, 2004/05-Dec 2013... 73 Figure 48: Acreage covered by Egas 2012 bid round... 75 Figure 49: BP s oil and gas interests... 77 Figure 50: BG s oil and gas interests... 79 The Mena Oil & Gas Market 2015 9

Figure 51: Proposed sites for Echem s 20-year masterplan... 85 Figure 52: Petrochemical output and sales, 2000/01-2010/11... 86 Figure 53: Echem spending, 2004/05-11/12... 88 Figure 54: Egypt oil, gas and chemical contracts, 2009-14... 92 Figure 55: Awards by project type, 2009-14 (% - total $10.57bn)... 92 Figure 56: Iraq crude production, 1965-2013... 99 Figure 57: Iraq crude production, 2003-13... 99 Figure 58: Crude oil production scenarios, 2010-30... 104 Figure 59: Total gas reserves (%)... 106 Figure 60: Major gas fields... 106 Figure 61: Gas field licensing auction... 107 Figure 62: Projected gas volumes from licensed oil and gas fields, 2010-16... 109 Figure 63: Southern oil export terminal expansion... 112 Figure 64: Proposed Iraq-Jordan crude oil export project... 114 Figure 65: Oil products supply/demand, 2009-13... 118 Figure 66: Contract awards, 2009-14... 124 Figure 67: Contract awards by type, 2009-14 (% - total $26.45bn)... 125 Figure 68: Planned projects by status (% - total $68.42bn)... 127 Figure 69: Future projects by type (% - total $68.42bn)... 127 Figure 70: Contract awards forecast, 2014-17... 130 Figure 71: Contract wins, 2009-Oct 2014... 131 Figure 72: Jordan forecasted energy mix 2020 (%)... 133 Figure 73: Jordan s percentage ratio of final energy distribution, 2013 (%)... 133 Figure 74: Kuwait oil production and consumption, 2009-13... 146 Figure 75: Kuwait s gas consumption and production, 2009-13... 151 Figure 76: Kuwait project awards, 2009-14... 159 Figure 77: Kuwait project awards by sector, 2009-14 ($m)... 159 Figure 78: Kuwait projects forecast by sector ($m)... 160 Figure 79: Libya oil output, 1965-2013... 169 Figure 80: Libyan oil output, 2003-13... 170 Figure 81: Major oil producing basins... 170 Figure 82: Production facilities, pipelines, export facilities, refineries and petrochemical plants... 172 Figure 83: Libyan gas output, 1971-2013... 173 Figure 84: Libyan gas output, 2003-13... 174 Figure 85: Western Libya gas project facilities and pipelines... 174 Figure 86: Morocco crude oil consumption, 2009-13... 183 Figure 87: Natural gas consumption, 2008-12... 186 Figure 88: Oman oil and gas blocks... 194 Figure 89: Average oil production*, 2000-13... 197 Figure 90: Gas production, 2000-13... 201 Figure 91: LNG exports, 2000-13... 202 Figure 92: Khazzan gas reserves... 204 Figure 93: Gas supply outlook, 2009-25... 206 Figure 94: Refined products, production and consumption, 2006-13... 208 Figure 95: EPC awards in Oman by year and sector, 2009-14... 215 Figure 96: EPC contracts by sector (% - total $8.96m)... 216 Figure 97: Average daily gas production, 2007-12... 220 Figure 98: Qatar oil/condensate reserves, 1992-2013... 222 Figure 99: Qatar oil and gas fields... 223 Figure 100: Qatar oil production*, 2009-13... 224 Figure 101: North field wellhead gas production, 1995-2015... 225 Figure 102: Qatar proven gas reserves, 1992-2013... 225 The Mena Oil & Gas Market 2015 10

Figure 103: Qatar natural gas production, 2009-13... 226 Figure 104: Qatar s utilisation of gas production (%)... 226 Figure 105: Qatar LNG exports, 2005-15... 228 Figure 106: Qatar LNG exports, 2013... 228 Figure 107: QP s NGL production, 2012... 230 Figure 108: Qatar oil/condensate and NGLs mix, 2012-16... 231 Figure 109: Share of petrochemicals and fertilisers in Qatar's overall exports... 235 Figure 110: Proposed layout of the QP/Shell petrochemical complex... 236 Figure 111: Qatar projects awarded by sector, 2009-14 ($m)... 238 Figure 112: Qatar projects awarded by sector ($m)... 238 Figure 113: Saudi Arabia crude oil production, 2010-14... 242 Figure 114: Saudi Arabia oil consumption, 2009-13... 246 Figure 115: Saudi Arabia recoverable crude oil, 2009-13... 246 Figure 116: Saudi Arabia recoverable gas, 2009-13... 247 Figure 117: Saudi Aramco raw gas to gas plants, 2009-13... 248 Figure 118: Exports by region, 2013 (%)... 253 Figure 119: Oil to chemical production... 256 Figure 120: Saudi Aramco delivered sales gas and ethane gas to gas plants, 2009-13... 262 Figure 121: Saudi Arabia projects awarded by sector, 2009-14... 267 Figure 122: Saudi Arabia projects awarded by sector ($m)... 267 Figure 123: Tunisia crude output, 1965-2013... 270 Figure 124: Tunisia crude output, 2003-13... 271 Figure 125: Tunisia gas production/consumption, 2003-12... 271 Figure 126: Tunisia energy assets... 273 Figure 127: UAE oil and gas fields... 279 Figure 128: Structure of Abu Dhabi s oil and gas industry... 280 Figure 129: Crude output, 2009-13... 287 Figure 130: Abu Dhabi oil production by field, 2013 (b/d)... 289 Figure 131: Blocks covered by the Korean/Adnoc concession agreement... 292 Figure 132: Gas production/consumption, 2003-13... 293 Figure 133: Gasco s gas processing plants (t/d)... 294 Figure 134: LNG exports/imports, 2010-19... 297 Figure 135: Dolphin gas pipeline network... 298 Figure 136: UAE refining capacity, 2010-18... 300 Figure 137: Borouge expansion programmes, 1-3... 304 Figure 138: Oil and gas contract awards, 2009-14... 306 Figure 139: Contract awards by sector, 2009-14... 306 Figure 140: Contract awards by sector, 2009-14 (%)... 307 Figure 141: Forecast EPC awards, 2014-16... 308 Figure 142: EPC contracts under execution by contractor... 312 Copyright 2014 MEED Media FZ LLC All rights reserved. No part of this publication may be reproduced, stored in any retrieval system, or transmitted in any form, by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the copyright owner. While every care has been taken in completing this report, no responsibility can be accepted for any errors or omissions that may occur. The Mena Oil & Gas Market 2015 11