Technological innovation and international cooperation key to regional oil & gas growth
The application of innovative technologies and cooperation between governments, national oil companies and international oil companies will be crucial if GCC oil and gas producers are to succeed with ambitious plans to expand capacity over the next 10-15 years.
The major Gulf producers have announced plans to increase capacity by more than 50% by 2020, equivalent to an unprecedented average of 1 million barrels/day of net productive capacity per year. These plans take on new significance in light of increasing global energy demand and domestic and international economic growth.
“According to the latest BP Statistical Review of World Energy, some 60% of global oil reserves and 40% of global gas reserves are located in the Middle East. With global energy demand rising fast, and domestic demand spurred by economic growth and large scale commercial and industrial projects, the world, as well as this region, is relying on the Middle East’s ability to expand production,” explained Steve Peacock, President, Exploration & Production, BP Middle East & South Asia.
Speaking at the Middle East Petroleum and Gas Conference held recently in Dubai, Peacock emphasized that capacity growth is not only about developing new projects, but also maximising recovery from existing fields with the aid of technology. “Achieving capacity growth is of course a function of bringing new projects on-stream whilst at the same time mitigating the decline of a mature base and maximising the field’s ultimate recovery.”
International oil companies have significant experience in these areas, and the challenge of bringing more oil to market presents an opportunity for governments and industry to work in partnership in applying best practice and transferring knowledge gained by the international oil companies around the world.
BP, for instance, has significantly increased recovery factors from its fields around the world through the application of leading edge technologies and field management processes. One example is BP’s Prudhoe Bay field in Alaska which, given it’s characteristics, would normally yield a ‘standard’ recovery of less than 40%, whereas in reality the field is set to recover around 65% of in-place reserves.
“Technology and reservoir management has been essential to the progress of BP over the past five years, enabling us to add around 8 billion barrels of oil equivalent to our resource base through exploration, an additional 8 billion barrels from appraisal and revisions and to shift some 9 billion barrels of oil equivalent from non-proved to proved reserves,” Peacock explained.
BP has a long history of strategic partnerships with GCC governments and NOCs and anticipates that these relationships will continue as BP supports the region in its aims.
“The partnership between public and private enterprise is essential for oil producing nations in realising their ambitions. BP fosters long term relationships through which it can apply its expertise gained from doing business around the world. Regionally, Oman’s recent tight gas offering and Abu Dhabi’s current sour gas tender are two clear examples of far sighted leadership that recognises that you can progress the national agenda without relinquishing control of the national resources,” Peacock concluded.
BP is one of the world's largest companies with nearly 100,000 employees and operations in more than 100 countries on six continents. The company’s main activities are oil & gas exploration and production, refining, marketing and supply & transportation.
The company’s regional exploration and production operations are headquartered in Abu Dhabi, with a wide-ranging portfolio of activities across the region. Dubai is the regional hub for BP’s refining and marketing businesses. The Dubai-based businesses include Air BP, BP Middle East Lubricants, BP Marine and Integrated Supply & Trading.
For further information please contact:
Fares Ghneim, BP International, Abu Dhabi: +971 2 632 3999