eage newsletter middle east issue 2 2014

16
EAGE NEWSLETTER Issue 2 2014 MIDDLE EAST Trivia Question 1. The Udden scale is a logarithmic scale for the size of what? 2. What term is given to the systematic interpretation of geology from aerial photographs? 3. What term is used for the difference be- tween true north and magnetic north? Answers on p. 8 What's inside Madrid meeting excitement builds 3 New workshop app! 4 Young talent show in Dubai 7 Industry News 13 And more... P hilip Ringrose, EAGE President writes: In my free time, I relax by playing the clari- net and the cello and this musical back- ground has inspired me to bring harmony during my presidential year, which started at the EAGE Annual Conference in Amsterdam in June. My main aim is to persuade the membership, con- siderably enlarged during Gladys Gonzalez’s year at the helm, to sing from the same hymn sheet when it comes to sustainability. There is a lot of good work to build on and there will be plenty of continuity with what Gladys has been doing. She has put in a huge amount of effort and hats off to her because we have grown a great deal in places such as Dubai, Kuala Lumpur and most recently Latin America. I want to ensure that that growth is sustainable. In tough economic times, we need to ensure that we offer value for money Looking to orchestrate greater sustainability Read more on page 2 Read more on page 2 Thinking caps on for EAGE’s Geo-Creativity Prize to our members. Many people join the EAGE but let their membership slip after a year. We need to explain better how the Association will sus- tain members over the course of their careers. To that end we must offer continued focus and new agenda-setting workshops. In particular, I want to grow the Near Surface Geoscience division, which currently accounts for about 10% of the membership. We want this di- vision to grow and represent around 20-30% of members in the next five years and to do that the organisation must put more focus on sustainable use of the Earth’s resources and particularly car- bon capture and storage. Two other challenges the industry has to face, and our Association must offer new insights on, are unconvention- als and deepwater exploration. Shale exploration obviously involves the specifics of fracturing tech- nology and we need to create a better learning environment because the technology is moving all the time. We should develop new geome- chanical models of how rocks deform to inform well optimisation, surface management technol- ogy and to answer the question: can it be done safely? We need to demonstrate that the Associa- tion is not just concerned with getting oil and gas out of the ground but with the bigger picture. T here’s still time to enter the EAGE’s newly introduced Geo-Creativity Prize which focuses on computa- tional geosciences. Ideas under the title of Computational Technologies in Geosci- ences have to be in by 31 August 2014, so no time to lose. The topic was selected by the Committee as computational geosciences play a major role in reservoir modelling, simulation and vi- sualization. In the effort to build knowledge from measurement, automate processes and improve efficiency, and reduce natural hu- man bias and error, experimenting with new approaches, algorithms, and programming concepts is needed. Computational geosci- ences are also integral to issues related to environmental hazards in the oil industry, geological modelling of basins, geophysical exploration for new potentials, and for en- hanced oil (and gas) recovery. Prize Committee member Mohamed Had- idi (ADCO) said: ‘Geoscience, comprising Philip Ringrose EAGE president 2014-2015 In tough economic times we need to ensure that we offer value for money to our members

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The Regional Newsletter Middle East focuses on geoscientific issues in this specific region. The 8-20 page newsletters contain local industry news and are also used to promote local EAGE activities.

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Page 1: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER

Issue 2 2014MIDDLE EAST

Trivia Question1. The Udden scale is a logarithmic scale for

the size of what?

2. What term is given to the systematic

interpretation of geology from aerial

photographs?

3. What term is used for the difference be-

tween true north and magnetic north?

Answers on p. 8

What's inside

Madrid meeting

excitement builds 3

New workshop app! 4

Young talent show in Dubai 7

Industry News 13

And more...

Philip Ringrose, EAGE President writes:

In my free time, I relax by playing the clari-

net and the cello and this musical back-

ground has inspired me to bring harmony during

my presidential year, which started at the EAGE

Annual Conference in Amsterdam in June. My

main aim is to persuade the membership, con-

siderably enlarged during Gladys Gonzalez’s year

at the helm, to sing from the same hymn sheet

when it comes to sustainability. There is a lot of

good work to build on and there will be plenty

of continuity with what Gladys has been doing.

She has put in a huge amount of effort and hats

off to her because we have grown a great deal

in places such as Dubai, Kuala Lumpur and most

recently Latin America. I want to ensure that that

growth is sustainable. In tough economic times,

we need to ensure that we offer value for money

Looking to orchestrate greater sustainability

Read more on page 2 ➤

Read more on page 2 ➤

Thinking caps on for EAGE’s Geo-Creativity Prizeto our members. Many people join the EAGE but

let their membership slip after a year. We need

to explain better how the Association will sus-

tain members over the course of their careers. To

that end we must offer continued focus and new

agenda-setting workshops.

In particular, I want to grow the Near Surface

Geoscience division, which currently accounts for

about 10% of the membership. We want this di-

vision to grow and represent around 20-30% of

members in the next fi ve years and to do that the

organisation must put more focus on sustainable

use of the Earth’s resources and particularly car-

bon capture and storage. Two other challenges

the industry has to face, and our Association

must offer new insights on, are unconvention-

als and deepwater exploration. Shale exploration

obviously involves the specifi cs of fracturing tech-

nology and we need to create a better learning

environment because the technology is moving

all the time. We should develop new geome-

chanical models of how rocks deform to inform

well optimisation, surface management technol-

ogy and to answer the question: can it be done

safely? We need to demonstrate that the Associa-

tion is not just concerned with getting oil and gas

out of the ground but with the bigger picture.

There’s still time to enter the EAGE’s

newly introduced Geo-Creativity

Prize which focuses on computa-

tional geosciences. Ideas under the title of

Computational Technologies in Geosci-

ences have to be in by 31 August 2014, so

no time to lose.

The topic was selected by the Committee

as computational geosciences play a major

role in reservoir modelling, simulation and vi-

sualization. In the effort to build knowledge

from measurement, automate processes and

improve effi ciency, and reduce natural hu-

man bias and error, experimenting with new

approaches, algorithms, and programming

concepts is needed. Computational geosci-

ences are also integral to issues related to

environmental hazards in the oil industry,

geological modelling of basins, geophysical

exploration for new potentials, and for en-

hanced oil (and gas) recovery.

Prize Committee member Mohamed Had-

idi (ADCO) said: ‘Geoscience, comprising

Philip Ringrose

EAGE president

2014-2015

In tough economic times we need to ensure that we offer value for money to our members

Page 2: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 20142

EAGE UPDATE

Thinking caps on for EAGE’s Geo-Creativity Prize

EAGE Newsletter Middle East

Publications & Communications ManagerMarcel Van Loon ([email protected])

Regional Manager Middle EastRaymond Cahill ([email protected])

Publications CoordinatorMarjolein van Kraanen ([email protected])

Account Manager AdvertisingPeter Leitner ([email protected])

ProductionCo Productions bv ([email protected])

EAGE Middle East Offi ceEAGE Middle East FZ-LLCDubai Knowledge VillageBlock 13 Offi ce F-25PO Box 501711Dubai, United Arab EmiratesTel.: +971 4 369 3897Fax: +971 4 360 4702E-mail: [email protected]: www.eage.org

Submission of articles([email protected])

Newsletter on the Web(www.eage.org)

geology and geophysics, is playing a key role in

what is currently, and for the foreseeable future

Continued from p.1.

Looking to orchestrate greater sustainability

The Geo-Creativity Prize, an initiative to pro-

mote creativity in geoscience, and the Students

and Young Professionals Forum, are examples

of the out-of-the-box events we have planned.

Cooperations with local societies in the Middle

East allow us to broaden the scope of topics

on offer, like the EAGE/SEG/AAPG Shale Gas

in the Middle East Workshop, or ADIPEC’s 30th

anniversary in 2014. Other upcoming events

are a special EET lecture series on new tech-

nologies for (InSAR) satellite monitoring and

on how the ground source responds to pro-

duction and injection technology. If we are

active in these frontier areas our membership

will grow.

I joined the Association after becoming a re-

search fellow at Heriot-Watt University in Edin-

burgh in 1990 and having been very active at

EAGE workshops and conferences, I was invited

to join the EAGE Board three years ago. EAGE

is about co-operation between many different

nationalities to bring the profession forward –

it’s a great model. I know I only have one year

to make an impact as EAGE president, but I am

confi dent that we can make some big steps to

achieve our goals for the benefi t of the Associa-

tion and the environment.

Continued from p.1. the primary economic activity in the Gulf region,

namely the oil and gas industry. This industry is

not only of crucial importance to the region, but

is indispensable to meeting the energy demands

of the entire world for decades to come. This

initiative to promote creativity in geoscience,

will contribute to ensuring the continued health

of this critical endeavour, and do so in a sus-

tainable manner that safeguards our environ-

ment. More broadly, it will hopefully contribute

to the success of the concerted efforts currently

underway in the Gulf Region to transform its

economies to knowledge-based economies of

the future.’

We encourage you to submit your ideas and

concepts to help improve our computational

capability and results. These can include new

algorithms, innovative approaches, new appli-

cations, and improvement in visualization and

interpretation. Your entry should numerically or

computationally address one or more of the fol-

lowing subtopics:

• Geological modelling

• Seismic data imaging and inversion

• Reservoir modelling, simulation,

and monitoring

• Quantitative reservoir mineralogy

• Environmental issues

• Carbon dioxide monitoring, modelling,

and sequestration

• Visualization

Entries are open to industry professionals, uni-

versity students and academia as a team or

individual entry. From the submissions fi ve fi -

nalists will be chosen to prepare and deliver a

detailed presentation of their ideas to our panel

of distinguished judges. A winner will be se-

lected and presented with the EAGE Geo-Cre-

ativity Prize 2014 at a Gala Dinner which will

be held in Muscat on the evening of Monday

8 December 2014.

You can enter now via the web-

site at www.eage.org.

Philip Ringrose in action at Amsterdam ’14.

Page 3: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 3

Spanish capital Madrid.

EAGE UPDATE

If you want to get to know more about ‘Earth

Science for Energy and Environment’ there is

no better way than coming to Madrid in June

next year for our Annual Meeting. Adopting this

theme for EAGE’s 77th Conference & Exhibition

is an invitation to meet fellow professionals,

catch up with old friends, share experiences,

and at the same time appreciate and learn from

the breadth and depth of geoscience and engi-

neering activities around the world. The event

(main sponsors Repsol, Saudi Aramco, KPC,

ExxonMobil) includes a large conference - more

than 1000 technical oral and poster presenta-

tions - and a technical exhibition presenting the

latest developments in geophysics, geology and

reservoir/petroleum engineering on 22,000 m2

gross exhibition space. And what location could

be more convivial than Madrid, one of our most

popular conference destinations.

The main business of the meeting is of course

how the multi-disciplinary approach to oil and

gas exploration and production fostered by

EAGE can contribute to meeting the energy de-

mands of the future. Because, what if effi cient

alternatives take longer than expected? What

if fi ne tuning of global climate models indicates

more complex interactions between natural and

man-made effects than currently accepted? The

only answer to both a belief or denial position

is a deeper scientifi c understanding and further

technology development. A scientifi c debate is

required to better understand the key underly-

ing issues and technology advance to continue

providing the energy resources needed: without

compromising our future energy needs as well as

assuring our communities the smallest possible

negative impact.

A major priority is to build on the experience

of our current workforce and sharing this experi-

ence with new generations of professionals who

need to be brought up to speed as rapidly as

possible. It is already very clear that manpower

shortage could be a major issue in the years to

come, which is why we put such an emphasis on

the Student Programme and associated activities

to encourage new recruits the industry. The Call

for Papers is open now, so submit your paper on

www.eage.org/events/madrid-2015

Student Programme

After the success of Amsterdam ‘14, expecta-

tions are high for the Madrid 2015 Student

Programme. With ‘Earth Science for Energy and

Environment’ as an overall theme for the confer-

ence, the Student Programme promises some

interesting activities and challenges in order to

complement this theme. The Student Programme

will include the Geo-Quiz, a workshop, a fi eld

trip, short courses, the Recruitment Café, trial

interviews, poster presentations, the student eve-

ning and much more. Travel grants will be avail-

able. For more information, see www.eage.org.

Excitement already building for next year’s Madrid Annual Meeting

Our workshop on Arabian plate geology is back for the fi fth

time, and there is still time to submit a paper! The focus will

be on the Lower Triassic to Middle Jurassic (Sudair to Dhruma

and time equivalent) interval characterized by under-explored siliciclas-

tic, carbonate reservoirs and evaporite seal/reservoir sequences.

The workshop scheduled for 9-11 February 2015 in Kuwait City aims

to formulate a unifi ed regional stratigraphic nomenclature, propose a

time-based sequence stratigraphic framework, produce updated re-

gional palaeogeographical maps, and identify common stratigraphic

markers. It will fl ag tools and methods that are particularly effective in

studying complex, mixed sedimentary systems, and will enhance our

ability to predict reservoir presence, distribution and quality.

The ultimate goal is to defi ne the stratigraphic sequences and their

boundaries for the benefi t of the entire Arabian Gulf Region. Delegates

will benefi t from the workshop through direct learnings and interac-

tions gained from the core workshop and/or the fi eld trip.

The workshop will comprise oral and poster presentations, invited

keynote speakers, a core workshop and an optional geological fi eld

trip to Oman.

The core workshop is one of the highlights of the event with the dis-

play of core materials from a number of producing fi elds spanning the

entire Gulf region, and the possibility of virtual reality outcrop presenta-

tions. The main emphasis is to provide an overview of the stratigraphy

and show lateral changes.

The Call for Papers is open until 1 September on the following top-

ics: Regional framework and controls; Local frameworks and controls;

and Exploration and development concepts. To submit abstracts and

for more details on the workshop, visit www.eage.org.

Deadline closing for Arabian plate geology workshop paper submissions

Cores on display at the 4th Arabian Plate Geology Workshop.

Page 4: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 20144

EAGE UPDATE

Introducing a mobile app to navigate upcoming passive seismic workshop in Lisbon

EAGE is trying out a better way to fi nd out everything you need to

know about an upcoming workshop. It comes in the form of a mo-

bile app, and will be trialled at the 5th EAGE Passive Seismic Work-

shop due to be held on 28 September to 1 October in Lisbon. The app is

intended to enhance your attendee experience.

This highly interactive workshop aims to bring together a broad spec-

trum of researchers and users of passive seismic technologies to discuss

its current status and future steps necessary to advance the application

and perceived value of microseismic and other passive seismic technolo-

gies. Although it is expected that recent developments and advances in

the acquisition and processing of passive seismic data will be discussed,

the main focus of the workshop is to exchange information with respect

EAGE’s Third Borehole Geophysics Work-

shop is to be staged in Athens on 19-22

April 2015. What better setting than the

ancient Greek capital to problem solve the thorny

issue of ‘Unlocking the Potential of 3DVSP’, the

theme of the meeting!

The workshop will the third in a successful

series which began in Istanbul, 2011 and con-

tinued in Malta, 2013. The Athens workshop

will be a forum for operators, contractors and

academics to share their recent technological

progress and experience, in order to better un-

derstanding of the possibilities of the data.

For more than 80 years, electric logging of

boreholes has been yielding detailed measure-

ments of the physical properties of the earth.

Borehole seismic on wireline remains one of the

most commonly used of these techniques, but

modern technologies are enabling deployment

of sensors in new environments; these, and

other advances, may change the economics of

borehole seismic exploration.

The previous workshops defi ned the vision for

the industry, with the potential and the challeng-

es of 3DVSP being the key topics for discussion.

Focusing on ‘Unlocking the Potential ’ is recogni-

tion of the fact that borehole seismic and 3DVSP

in particular, can offer signifi cant benefi ts in im-

proved understanding of the reservoir, if only the

technological challenges can be overcome.

Whilst the technical sessions will be built

around borehole seismic, there will also be an

opportunity for presentation and discussion on

any recent/ongoing technology development re-

lated to borehole geophysics.

Call for Papers is open for the workshop and

the technical committee invite submissions in

seven broad categories, namely: deployment

methods, monitoring, reservoir characterisation,

innovative processing, advances in 3DVSP, inte-

gration with other data types, and closing the

loop (relating the geophysical solutions to the

economics of well or fi eld development).

We would like to invite participants to share

with us their case studies in which their bore-

hole geophysics studies impacted the production

operation by delineating faults, geological fea-

tures, or detecting changes in the reservoir due

to injection or production or other uses. A com-

parison between borehole geophysics and other

technology showing the added benefi ts would

be highly desirable. Case studies of successful

projects should allow others to follow suit, and

that would indeed help all participants in direct-

ing the results towards specifi c objectives. The

case studies could help geoscientists in justifying

the need for further development of the tech-

nology to enhance the results.

If you are interested in presenting a paper at

the workshop, you are encouraged to submit an

abstract, four pages maximum, by 31 October

2014. Submission of abstracts will be accepted

online at the workshop page on www.eage.org.

Please review the ‘Abstract Guidelines’ before

submitting an abstract.

As with the previous Borehole Geophysics

Workshops we will also run an advanced short

course details of which will be announced short-

ly via the website.

Athens borehole geophysics workshop to focus on classic issue

to the impact of this data on decisions regarding public safety, completion

optimization, reservoir modeling, etc.

With the Passive Seismic Workshop mobile app, users can network with

fellow attendees, post comments, give feedback; browse presenters and

bookmark sessions; reference all kinds of helpful local area resources, even

interactively link to Google maps in order to fi nd a place for dinner!

Downloading the app is easy. Search iTunes and Google Play for ‘Passive

Seismic 2014’. For other web-enabled devices, including Blackberry, enter

m.core-apps.com/passive_seismic14 to be automatically directed to the

proper download version for your phone.

After you have downloaded the app, enter your email address and the

password PS2014 in order to access the app content. It’s as simple as that!

A must visit: Parthenon, Athens.

Group photo during Malta workshop.

Page 5: EAGE Newsletter Middle East Issue 2 2014

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Page 6: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 20146

There will be plenty to learn from the

EAGE’s second Integrated Reservoir

Modelling Conference taking place at

The Address, Dubai Marina (UAE) on 16-19

November 2014. That’s because the event

theme is ‘Uncertainties Management: Are

we doing it right?’. Set to follow the success

of the inaugural event, many companies will

be presenting the benefi ts and also the cur-

rent challenges associated with integrated

reservoir modelling.

The three-day conference offers an op-

portunity to discuss and learn from the ex-

periences of operators, service companies

and academia with sessions on uncertainty

identifi cation, quantifi cation and manage-

ment along with integrated case studies.

The technical programme also features key-

note presentations from uncertainty experts

such as Pierre Biver from Total, Prof Klaus

Mosegaard from the University of Copenha-

gen and John Linderman of ExxonMobil.

Oral and poster presentations are to be

expected along with coffee-table style dis-

cussions allowing more interactive sessions

for all delegates with dialogues on the suc-

time domain, structure, complexity and di-

mensionality. The link between uncertainty

quantifi cation and decision-making will be

introduced through decision-making theory.

Lectures will include demonstrations of the

methodologies on real case applications.

Sponsors of the conference include Total,

BP, CGG and Saudi Aramco. For more infor-

mation on the conference and short course

and to register, please visit the event website

on www.eage.org .

Calling all geoscientists currently involved in exploring in a basin for

conventional or unconventional resources, or developing a reser-

voir that is strongly affected by processes at the basin scale! There

is a workshop coming that will be of great interest to you.

From 19-22 October 2014 EAGE will host the First Workshop on Basin

& Petroleum Systems Modelling, to be held at The Address, Dubai Mall,

Dubai.

The aim of this workshop is to provide a forum for the exchange of ideas

and encourage cooperation among specialists from industry, academia, re-

search institutes and developers to advance basin and petroleum systems

modelling.

The steering committee has put together an excellent technical pro-

gramme, including an opening address from Ibrahim Assa’adan (vice-pres-

ident exploration, Saudi Aramco) and technical keynotes from Johannes

Wendebourg (Total), who will present on ‘The Role of Petroleum Systems

Modelling in Exploration: Current Use and Future Needs’; Pierre Van Laer

(ADCO) on ‘Basin Modelling for Reservoir Prediction and Field Development’

and Francois Lorant (Total) on ‘How Petroleum Systems modelling can help

in Risking and Resource Assessment of Unconventional Gas and Liquids’.

The workshop format is designed to encourage the maximum amount of

discussion and networking opportunities, with each speaker being asked to

prepare a short poster showing the highlights and key discussion areas from

their presentation. At the end of each session an hour will be dedicated to

discussion on the posters.

Alongside the workshop EAGE will run two short courses. Brian Hosfi eld

(GFZ German Research Centre) will lead a one-day course pre-workshop

examining how gas and oil charge volumes may be predicted in time and

space by integrating the latest advances in kinetics, phase behaviour and

basin modelling. The course, entitled ‘Fluid Compositional Prediction in

Resource Assessment’ is intended for explorationists and academics alike,

and is taught via lectures, discussions and, if practicable, hands-on com-

puter time.

On 23 October Dr Cedric Griffths (CSIRO) will also be conducting his

one day course on ‘Practical Stratigraphic Forward Modelling’. The goal of

the class is to teach the use of stratigraphic forward modelling on realistic

geological problems at a variety of scales.

Registration for the workshop and short courses is now open via the

website www.eage.org/events/basin-modeling-2014.

Be sure to attend conference on uncertainties in reservoir modelling

Basin modelling is target for Dubai workshop

cesses, failures and issues associated with the

uncertainties and their impact at all stages of a

fi eld’s lifespan.

Prior to the conference a one-day short course

will be presented by Dario Grana, assistant pro-

fessor of rock physics and reservoir characterisa-

tion, University of Wyoming (USA). The course

will focus on the quantifi cation of uncertainty

in the data, in the physical models and in the

predictions in reservoir modelling workfl ows.

Topics covered include uncertainty in spatial and

EAGE UPDATE

Delegates at the first reservoir modelling conference.

Page 7: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 7

On the heels of the successful inaugural

Students and Young Professionals Fo-

rum, held in Abu Dhabi in 2012, EAGE

is announcing the second edition of this popu-

lar and well-attended event. It will take place at

Sultan Qaboos University in Muscat, Oman, from

7-9 December 2014.

The event, themed ‘Empowering and Devel-

oping Young Talents’, is recognition that the

current generation of industry professionals is

getting more than a little grey around the edges.

It means that the recruitment and development

of young talent is becoming a critical focus area

for many companies. The forum also deals with

the separate issue of how students and young

professionals are often troubled by the transi-

tion between the routine of university and the

demands of industry. Any occasion that brings

the two together for dialogue and discussion is

generally a welcome opportunity.

In order to facilitate the critical student-in-

dustry interactions that made the previous fo-

rum so successful, a wide-ranging, exciting and

informative programme has been devised. The

sessions are all designed to maximize the expo-

sure of students and young professionals to the

experiences and expertise of key regional con-

tributors and recent graduates from all facets of

industry and academia.

Discussion panel topics will include ‘Mentor-

ing Young Talents’, ‘Building Bridges Between

Academia and Industry’ and ‘Interview and CV

Skills’. Interactive participation will be key for a

session on ‘Assessment Schemes’, which will of-

fer opportunities for mock interviews. High pro-

fi le management from an assortment of national

and independent oil companies and service com-

panies will form an executive managers’ panel to

discuss the topic of ‘Staff Retention’.

Students and young professionals will also

get a chance to display their talents in two com-

petitions. A best poster competition will allow

them to put their technical work in front of a

panel of judges, with a variety of prizes at stake.

There will also be another edition of the incred-

ibly popular and always enjoyable Geo-Quiz,

where teams of students will put their geophysi-

cal acumen to the test in a serious but friendly

competition. Contact us now to secure your

team’s place!

Another highlight at this forum will be the

fi eld trip in concert with the Geological Society

of Oman which will be held on the fi rst date of

the event, Sunday 7 December. Students and

young professionals will journey into the wadis

of northern Oman to experience fi rst-hand the

amazing outcrops and formations that make

Oman a geological wonderland.

As with the previous event, participation will

be key to making the forum a success. Students

and young professionals are strongly encouraged

to register and take part. The discussion panels,

interactive sessions and competitions all repre-

sent excellent opportunities to network with in-

dustry professionals and to learn more about the

intricacies of navigating a career in geoscience.

The forum offers young professionals with a few

years of industry experience, information, career

guidance and the opportunity to share their ex-

periences with the next wave. For the industry

the forum represents an occasion to meet and

inspire the next generation.

The best posters for the students and young

professionals competition will be accepted un-

til 1 August. Registration will be accepted from

1  September. Please visit the forum page at

www.eage.org for more information.

Workshop makes young talent the priority

Buzzers ready for the Geo-Quiz!As part of the second edition of the Students & Young Professionals Forum, the prestigious EAGE

Geo-Quiz will be held on Tuesday 9 December 2014. Students will have the opportunity to put

their geoscience knowledge to the test in this ever popular quiz that is not only fun, but also an

interactive way to test your knowledge against your fellow students from all over the region.

The Geo-Quiz was fi rst held in 2007 in London, and since then it has always been one

of the highlights of EAGE’s Annual Meetings. Most recently it was launched in the Middle

East for the fi rst time ever at the GEO 2014 Conference & Exhibition in Bahrain, attracting

25 teams and more than 75 participants. The winning team walked away with the grand

prize of travel grants to the 76th EAGE Conference & Exhibition 2014 (16-19 June, Amster-

dam, The Netherlands).

This time round the grand prize is three student travel grants to Madrid, two nights’ ac-

commodation and free registration to the 77th EAGE Conference & Exhibition 2015 (1-4 June,

Madrid, Spain) for the winning team. Details on how the quiz will run and how to enter are on

www.eage.org.

Winning team from GEO 2014 ‘Bingo!’ with Gladys Gonzales, EAGE president 2013-14.

EAGE UPDATE

Page 8: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 20148

EAGE has launched Permo-Triassic Khuff

sequence of the Arabian Plate, a new

publication with contributions from ex-

perts around the world. The volume has been

edited by Prof. Michael Pöppelreiter, a carbon-

ates specialist with Shell and an honorary pro-

fessor at the University of Tubingen. It is based

on the best papers from the Third Arabian Plate

Geology Workshop held in Kuwait and invited

contributions from subject matter experts. The

work of some 64 industry and academic au-

thors and co-authors, from 17 nations across

three continents, is represented in this special

collection.

The Khuff sequence is very signifi cant as it is

estimated to contain some 25% of the global

conventional gas reserves. Latest concepts on

stratigraphy, reservoir architecture and explo-

ration techniques are discussed in the publica-

tion which focuses on the Khuff formation from

an integrated petroleum-systems perspective:

source, reservoir and seal across the platform

from landward margin to open marine environ-

ments.

The Khuff is analyzed across six countries hi-

erarchically from basin, play, environment, body

and grain scale in 15 chapters and a total of 400

pages. Emphasis has been placed on 229 high-

quality, full-colour large fi gures, generously sup-

ported by the Kuwait Oil Company.

The Permo-Triassic Khuff Formation is a geo-

logical layer of extremes: dimensions, architec-

ture, depositional environmental conditions, and

resources. The break-up of Pangaea, the largest

landmass ever assembled and the related open-

ing of the Neo-Tethys Ocean, led to the birth of

the Khuff platform. Covering some 3.7 million

km2, it is one of the largest of its kind in earth

history. It exhibits geometries fl atter and laterally

more extensive than almost any geological layer

in the stratigraphic record. The thickness to width

ratio of some beds is in the order of 1:200,000.

The Khuff Formation was deposited in a shal-

low epeiric sea migrating over a peneplain-like

surface, dipping less than 0.001°. The basin to-

pography resembled a “rippled” surface with

subtle highs and lows. This paleo-topography,

controlled by structural elements, had a pro-

found infl uence on distribution of source, reser-

voir and seal facies. The shallow-marine platform

was particularly susceptible to changes in relative

sea-level and ocean water geochemistry. A lean

carbonate factory produced mostly ooids and

peloids, and minor skeletal components in ar-

eas of higher wave energy. A signifi cant volume

of grainstone was accumulated during about

20 million years of Khuff deposition, with an ac-

cumulation rate of less than 50m /million years.

Successful exploration and development of the

Khuff primarily hinges on the prediction of such

permeable grainstone. Quieter platform regions

accumulated mud and ubiquitously occurring

microbiolites. Thin but extensive anhydrite layers

and cement are interbedded in the carbonate

platform.

The Khuff is not only one of the largest res-

ervoirs, but also hosts records of exceptional

environmental conditions. Sustained global en-

vironmental changes, as recorded in the fossil

and geochemical record, led to a series of envi-

ronmental crises. These culminated in the largest

mass extinction in earth history at the Paleozoic-

Mesozoic boundary which cuts right across the

formation.

Evolving models of the Permo-Triassic epi-

continental Arabian platforms are not only

essential for exploration and development suc-

cess, but also contribute to the understanding of

epi-continental basins globally. The publication

emphasizes the importance of subtle tectonics

on all elements of the petroleum system.

The book is available as a hard copy

and ebook in the EAGE Bookshop at

www.bookshop.eage.org.

New publication features Permo-Triassic Sequence of the Arabian Plate

Permo-Triassic Sequence of the Arabian Plate

Edited by Michael C. Pöppelreiter

The Permo-Triassic Khuff Formation is a geological layer of extremes: dimensions, architecture, depositional environmental conditions and resources. The break-up of Pangaea, the largest landmass ever assembled and the related opening of the Neo-Tethys Ocean, led to the birth of the Khuff platform. The Khuff platform, covering some 3.7 million km2, is one of the largest of its kind in the Earth’s history. It exhibits geometries fl atter and laterally more extensive than almost any geological layer in stratigraphic records. The thickness-to-width ratio of some beds is in the order of 1:200,000. The Khuff Formation was deposited in a shallow epeiric sea migrating over a peneplain-like surface, dipping less than 0.001°.The basin topography resembles a rippled surface with subtle highs and lows. This palaeo-topography, controlled by structural elements, had a profound infl uence on distribution of source, reservoir and seal facies. However, the Khuff is not only one of the largest reservoirs but also hosts records of exceptional environmental conditions. Sustained global environmental changes, as recorded in fossil and geochemical records, led to a series of environmental crises. They culminated in the largest mass extinction in the Earth’s history at the Palaeozoic-Mesozoic boundary that cuts right across the formation.

The Khuff is estimated to contain some 25% of global conventional gas reserves. Successful exploration and development of the Khuff hinges primarily on the prediction of permeable grainstone. This publication portrays the Permo-Triassic Sequence of the Arabian Plate from an integrated petroleum-systems perspective: structure, reservoir, source and seal.

Permo-Triassic Sequence of the Arabian Plate

15674-Khuff omslag 11-16.indd Alle pagina's

16-12-13 11:48

Trivia answers1. Sediments.

2. Photogeology.

3. Magnetic Declination (Variation).

EAGE UPDATE

The publication emphasizes the impor-tance of subtle tectonics on all elements of the petroleum system

Successful exploration and developmentof the Khuff primarily hinges on the predictionof such permeable grainstone

Page 9: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 9

What needs to be done to increase our

ability to build well-calibrated, and

hence reliable, static and dynamic

models for naturally fractured reservoirs? That’s

the question that will be discussed at the 3rd

EAGE Workshop on Naturally Fractured Reser-

voirs (1-4 November 2015, UAE)

Naturally fractured reservoirs contain a ma-

jor part of the world’s remaining hydrocarbon

reserves, but their successful characterisation

and development remains very challenging. Dif-

fi culties when characterising naturally fractured

reservoirs are encountered across the entire

G&G domain and include, but are not limited

to, developing conceptual models for fracture

formation, using appropriate seismic attributes,

obtaining 3D fracture statistics from well logs,

selecting adequate outcrop analogues, or build-

ing representative models for the rock matrix.

The workshop will focus on the static and dy-

namic calibration of fractured reservoir models

to reduce model uncertainty. The aim is to in-

troduce a variety of case studies from geophys-

ics, geology, and reservoir engineering. These

examples are intended to support the existing

and emerging calibration techniques presented,

review appropriate data sets, outline lessons

learned and defi ne best practices for model

calibration. The workshop will therefore provide

an overview of the current state of the art and

indicate areas for future improvement. In this

context, the workshop will also try to translate

academic research in the relevant fi elds to indus-

try applications and ensure that information and

insights from independent studies can be placed

into a relevant framework or global context.

To complement the technical programme

Professor Giovanni Bertotti (Delft University) is

working alongside experts in the UAE to orga-

nise a one-day fi eld trip to visit outcrops in Ras

Al Khaimah, details of which will be announced

in the New Year.

The Call for Papers opens via the EAGE website

on 1 October 2014, however to register your early

interest please email us at [email protected].

Time to tackle ‘calibration challenges’

Learning from experiences worldwide will pla y a big part in the dis-

cussion at the ‘Shale Gas in the Middle East’ workshop being held

on 19-22 September 2014 at The Address, Dubai Marina (UAE).

Once again a collaboration between EAGE, SPE and AAPG will provide

an unparalleled opportunity to understand the complexities and challeng-

es of shale gas, particularly in the Middle East. By leveraging worldwide

analogues, the workshop aims to apply global lessons to the Middle East

shale gas setting. Additionally, the workshop intends to spotlight and ad-

dress aspects of these plays that are unique to the region.

The technical programme features oral and poster sessions to cover

key facets of the process – from fi nding, to appraisal, to pilot, through

to development and production. The two and a half-day workshop

features a number of sessions which offer the opportunity to discuss

and address issues faced by operators, service companies, academia

and other G&G professionals. These include: Shale evaluation strate-

gies; Seismic for shale gas; Rock mechanics; Geochemistry of shale gas;

Reservoir engineering; Well delivery and completions; Shale gas break-

throughs; and Case studies and integrated shale gas projects.

Keynote presentations are also expected from Khalid Abdulqader,

general manager of unconventional resources, Saudi Aramco; Mussa-

beh Al-Kaabi, chief growth offi cer, Mubadala Petroleum; Rick Lewis,

petrophysics technical manager, unconventional reservoirs, Schlum-

berger Oilfi eld Services; Chad Hartman, chief technical advisor, Weath-

erford Laboratories; and Philippe Charlez, development manager of

unconventional resources for Total group focusing on shale oil and gas.

The workshop is particularly aimed at attracting professionals from

North America where shale gas changed the energy landscape. It

should highlight the knowledge and best practices that will benefi t the

early exploitation of these natural resources in the Middle East.

Platinum sponsors for the event include Saudi Aramco, Schlum-

berger and Baker Hughes. Other sponsors of the workshop include

Halliburton and ADMA-OPCO.

A one-day short course presented by Dr Dilhan Ilk titled ‘Shale Gas

Overview – Characterisation to Development’, will also be available. To

register for the short course and/or the workshop, please visit the event

website at www.eage.org.

Lessons from shale gas development worldwide to feature at workshop

EAGE UPDATE

The Musandam Peninsula.

Page 10: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 201410

professionals from the GCC, Africa, Europe

and Asian Sub-Continent. Growth and success

go hand in hand with longevity and this year’s

event will mark 30 years of service to the oil and

gas industry across the world.

In addition to participation from high profi le

international companies and individuals, ADI-

PEC is also a historic host of specialist suppli-

ers and distributors, large national groups from

North America and the UK to compliment an

impressive line-up of 1,500+ exhibitors from

over 100 countries.

With over 60,000 visitors expected at the

exhibition in 2014, and the technical confer-

ence programme promising to be the biggest

in ADIPEC’s history with over 80 sessions, this

year’s event is expected to attract over 6500

delegates, making it the largest knowledge ex-

change opportunity outside of North America. 

The multi-disciplinary ADIPEC Conference

themed ‘Challenges and Opportunities for the

Next 30 Years’ aims to bring together some of

the world’s thought leaders, analysts and deci-

sion makers in a frank and open environment to

discuss some of the major issues. It is intended

for international and regional Oil and Gas pro-

fessionals, who are involved in both the tech-

nical and non-technical functions within the

industry and will cover the following categories:

• E&P Geoscience

• Unconventional Resources

• Field Development

• Drilling and Completion Technology

• Projects Engineering and Management

• Operational Excellence

• HSE

• Gas Technology

• People & Talents

The technical programme and conference reg-

istration is now available online. For more infor-

mation and details on the features for ADIPEC

2014 please visit www.adipec.com/confreg

Workshop launches search for fresh insight into borehole geology

Borehole imaging is fi nally coming

of age, according to the organis-

ers of the EAGE Borehole Geol-

ogy Workshop on 12-15 October 2014

in Dubai, who highlight the advent of

high-resolution LWD imaging as a major

factor. It is said to bring unrivalled detail

and insights into reservoir characterisa-

tion and modelling.

The catch is that extracting and syn-

thesizing the information in a format

that can be readily used in geological

model building is still a challenge. This

is why the focus of the workshop will

be on maximizing the value of bore-

hole images in geological modelling in

a number of areas (structural, textural,

sedimentological, petrophysical).

Information from image logs often

bridges the very important scale gap

between the detailed core-based (grain

and pore-scale) and larger scale seismic

observations. However, correct upscal-

ing of image log-based interpretations

is fundamental to realizing their value in

reservoir modelling.

In the keynote address Dr David A.

Lawrence (Al Hosn Gas) will explore

some of the methodologies and limi-

tations of upscaling borehole image

results for reservoir modelling draw-

ing on examples from a wide variety of

geological settings (fractured reservoirs,

compound barforms in carbonate grain-

stone shoals, soft sediment deformation

fabrics, and deep-water clastic).

Registration for the Borehole Geology

Workshop is open now, please visit the

website www.eage.org for more infor-

mation .

Exhibition floor at ADIPEC 2013.

EAGE lends its support to ADIPEC

EAGE has entered into an agree-

ment to promote to its members the

Abu Dhabi International Petroleum

Exhibition & Conference (ADIPEC) being

held at the Abu Dhabi National Exhibition

Centre, UAE on 10-13 November 2014. As well

as taking a booth at the event, it is EAGE’s di-

rective to support all geoscience activities and

be part of ADIPEC for 2014 and future years.

From its inception in 1984, ADIPEC has

grown with and for the industry. Year after year

ADIPEC strives to deliver results for exhibitors,

sponsors, delegates and visitors alike, through

a world class exhibition and conference.  In

2013, a record 51,435 oil and gas profession-

als attended ADIPEC while exhibitors and spon-

sors achieved their objectives of generating

new sales leads, increasing brand and product

awareness, meeting and selling to new custom-

er and developing new industry partners.

The event now ranks amongst the top 3 oil

and gas events globally and is unquestionably

the leading exhibition and conference for oil

and gas professionals attracting oil and gas

EAGE UPDATE /COMMUNITY NEWS

Page 11: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 11

EAGE is actively looking to support and en-

gage its Lebanese members by partnering with

LPA and SPE in order to bring all of our geosci-

ence and engineering expertise to help develop

the potentially exciting Lebanese market. More

information at www.lipec-lpa.org.

As a key international event on oil and gas exploration and produc-

tion in Iraq, the 5th Basra Oil & Gas Exhibition and Conference is an

important platform for establishing and building business relations as

well as discussing recent developments and experiences in Iraq.

Since the fi rst edition in 2010, the Basra Oil & Gas Exhibition and

Conference with offi cial support from the Ministry of Oil has estab-

lished itself as the largest show of its kind in Iraq.

The conference is an opportunity for delegates to hear keynote

speeches from offi cials of state companies and ministries (Ministry of

Oil and State Company for Oil Projects) in addition to senior level man-

agers of the international and local O&G industry who put forward

their views on their current operations in Iraq, technology and many

other topics related to the conference theme. This important summit

also provides an opportunity to meet top decision-makers from major

companies in the business.

The accompanying exhibition provides an interactive business plat-

form for senior-level decision-making buyers to network with hun-

dreds of local and international professionals offering the latest tech-

nologies, solutions and products. See www.basraoilgas.com for more

information.

EAGE has been appointed as the offi cial technical programme

coordinator for the 5th Basra Oil & Gas International Confer-

ence & Exhibition being held on 4-7 December 2014 at the

Basra International Fairground.

The oil and gas opportunities offered by

Lebanon have still to be fully realised. This

is why the Lebanon International Petro-

leum Exhibition and Conference (LIPEC) on 21-

22 October 2014 at the Hilton Beirut Habtoor

Grand Hotel should provide a unique platform

to explore the Lebanese petroleum sector and

generate new business for Lebanon and the re-

gion with the presence of leading regional and

international exhibitors.

The Lebanese Petroleum Administration (LPA)

will be organising LIPEC in partnership with Pin-

nacle Events, SPE and EAGE, under the patron-

EAGE and SPE collaborate to promote Lebanon petroleum event

Keynote session: Marc Hornbrook, general manager, Rumaila.

A unique platform to explore the Lebanese petroleum sector ...

age of the Ministry of Energy and Water and

the LPA. The event should offer an outstanding

forum to engage with industry leaders and to

share views on the sector’s strategic challenges

and opportunities.

With the theme ‘Unlock opportunities, Ex-

plore challenges – Lebanon Oil and Gas’, the

conference will offer a comprehensive tech-

nical programme on the development of the

petroleum sector in Lebanon. Parallel sessions

will give attention to student-centric topics in-

cluding the labour market opportunities and

capabilities development, as well as the uni-

versity programmes offered by local universi-

ties and vocational education and training

programmes.

The exhibition held alongside the conference

offers a platform for over 50 exhibitors to show-

case oil and gas related technologies, products

and services as well as network with industry

leaders, professionals and regulators in one

venue.

EAGE to co-ordinate technical programme for major Basra event

The Pigeons’ Rock in Beirut, Lebanon.

COMMUNITY NEWS

Page 12: EAGE Newsletter Middle East Issue 2 2014

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14AD-UL-367-V2_UltraSeis_EAGE_MERN_Q3.indd 1 02/07/14 18:431-1 bleed.indd 1 07-07-14 16:36

Page 13: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 13

Saudi Aramco had plenty to report about

its upstream activities in its 2013 annual

review published recently. The company

said that signifi cant progress had been made on

two offshore developments: Manifa, the world’s

fi fth largest oil fi eld, and Karan, the Kingdom’s

fi rst non-associated offshore gas fi eld. The de-

velopments form part of the largest exploration

programme in the company’s history.

The company confi rmed that three oil and two

gas discoveries had been added to its portfolio,

bringing the total number of discovered fi elds to

121. This included exploration and drilling oper-

ations in the deep waters of the Red Sea, where

a new oilfi eld discovery was made at Al Haryd, in

addition to the previous gas fi nd at Shaur within

the frontier region.

In the company’s core operational areas, oil

was found in Duhul and Salsal, along with con-

ventional gas fi elds at Turayqa in the Rub’ al-Kh-

ali and at Mihwaz in central Saudi Arabia. These

discoveries are regarded as integral to support-

ing Saudi Aramco’s gas business, which is geared

toward meeting the Kingdom’s domestic energy

needs and powering industrial development.

Saudi Aramco’s unconventional gas programme

also became fully operational in 2013, said to of-

fer a promising new resource for the Kingdom’s

energy needs. Research and development is play-

ing an important role, according to the company,

citing its innovative work on improving hydraulic

fracturing (fracking) technologies focused on cost

effi ciency, increasing recovery rates, reducing en-

vironmental impact and enhancing well produc-

tivity across shale, deep sandstones and carbon-

ate formations in the Kingdom.

Work is ongoing on a number of promising

avenues: pulsed gas fracturing to improve well-

to-reservoir connectivity by generating a fracture

network near the wellbore by using a propellant;

plasma technology uses high-electric discharge

to generate supersonic stress waves to induce

fracture in the reservoir; and CO2-based fractur-

ing fl uid may meet the water supply challenge in

large scale fracturing jobs.

Staged fracturing is also evolving into cost-ef-

fective techniques by creating multiple hydraulic

fractures in horizontal wells without using me-

chanical isolation tools. Research and develop-

ment collaboration between Saudi Aramco and

Schlumberger has evolved methods to control si-

multaneous fracture initiation, marking the fi rst

multiple fracture initiation research in the oil and

gas industry.

The use of microseismic fracturing has also

proved to be a valuable tool in the company’s

fi rst northwest shale gas well to assess the ef-

fi ciency of the fracture network generated

through hydraulic fracture treatments. It was the

fi rst time this technology was deployed to assess

four different fracturing technologies. The tech-

nology provided a better understanding of the

geometry and complexity of the fractures gener-

ated for each type of fracture design.

An innovative fracture propping concept is be-

ing developed by the Advanced Research Centre

of the Exploration and Petroleum Engineering

Centre (EXPEC ARC) to chemically convert frac-

turing fl uid into solids in situ. The fracturing fl uid

will be a system containing multiple liquid and/

or gas components. Upon being catalyzed by the

reservoir temperature, the fl uid is set into a po-

rous medium to keep the fracture open while at

the same time providing high conductivity.

Discoveries and unconventional fi eld technology advances highlighted in Saudi Aramco 2013 review

A Middle East-based group of hackers is threatening cyber at-

tacks against oil, gas and energy companies in the Middle East,

according to security fi rm Symantec.

An activist group Anonymous was said to be planning disruption

during and after 20 June this year, apparently in protest at the US dollar

being used as the currency to buy and sell oil. Governments that may

be affected include those in Saudi Arabia, Kuwait and Qatar, according

to the security fi rm. Possible company targets include Kuwait Oil Com-

pany, Petroleum Development Oman, Qatar Petroleum, Saudi Aramco,

ADNOC, ENOC and Bahrain Petroleum Company.

Limited details are available regarding the tools that might be

used. Based on previous observations, Symantec said the attacks

will most likely include distributed denial of service (DDoS) attacks,

phishing/spear-phishing emails, intrusion and data-theft attempts,

vulnerable software exploration, web application exploits and web-

site defacement.

‘Public announcements by these groups are often used as a means

to gain notoriety or media attention and can be of highly volatile cred-

ibility,’ Symantec said. However, the Middle East’s petrochemical in-

dustry has been vulnerable to cyber attacks over the last few years.

Security experts have warned that the region is not well-prepared to

deal with cyber crime and is susceptible to attacks.

Industry warned on cyber attacks

Manifa development.

Kuwait spends bigon hydrocarbons

Kuwait is expected to approve hydro-

carbon projects worth between $3.9

and $5.3 billion for its 2015-2016

fi scal year, it has been reported by the news-

paper Al Rai.

The state-owned Kuwait Oil Company

(KOC) is drafting a budget for projects dur-

ing that period and will soon present it to its

parent company, the Kuwait National Petro-

leum Company (KNPC), the paper said.

INDUSTRY NEWS

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14AD-UL-367-V2_UltraSeis_EAGE_MERN_Q3.indd 1 02/07/14 18:431-1 bleed.indd 1 07-07-14 16:36

Page 14: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 201414

International ratings agency Standard & Poor is warning about the

over-dependence of Gulf Cooperation Council (GCC) countries

on its hydrocarbons revenues. Commenting on a report entitled

‘Hooked on hydrocarbons: how susceptible are gulf sovereigns

to concentration risk?, Mike Wilkins, a managing director, infrastruc-

ture fi nance ratings group, Standard & Poor’s ratings service, said: ‘The

Gulf countries’ signifi cant oil and gas reserves are a key strength of

their sovereign credit ratings. Yet, the concentration of their economies

on the hydrocarbon sector could potentially become a signifi cant vul-

nerability, in Standard & Poor’s Ratings Services view.’

The high income that the oil and gas sector generates, results in

general government surpluses, low government fi nancing needs,

and net external asset positions for most Gulf Cooperation Council

(GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and

the United Arab Emirates (UAE).Yet, S&P states that an economy’s

S&P fears Gulf state economies may be too reliant on hydrocarbons

AAAAAABBBBBBCCC

concentration on one sector, especially one that is subject to signifi -

cant cyclicality of prices or volumes, can be a negative rating fac-

tor if sovereigns don’t have substantial fi nancial buffers against a

cyclical downturn. A diversifi ed economy is more likely to be able to

withstand a downturn in any one sector. As a result, policymaking

would likely be more effective, economic growth more sustainable,

and government and external balances and monetary policy more

stable. Diversifi cation would also likely reduce the risk of a signifi cant

depletion of existing fi nancial buffers in the event of a sharp decline

in prices or volumes.

On average, hydrocarbon revenues constitute 46% of nominal

GDP and three-quarters of total exports of the six GCC countries. This

strong dependence on hydrocarbon revenues appears to be increasing.

This is partly a result of high oil prices feeding through to the national

accounts data. In S&P’s view, the fact that countries have made only

marginal progress in diversifying their economies away from hydro-

carbons is also a reason. A sharp and sustained fall in the oil price, to

which the majority of liquid natural gas price contracts are also linked,

or in hydrocarbon export volumes, would signifi cantly dent their eco-

nomic and fi nancial indicators.

Nevertheless, some GCC countries appear more vulnerable than

others to a drop in oil prices, according to the analysis of certain eco-

nomic, external, and fi scal risk indicators. Based on these measures, as

well as the sustainability of their current hydrocarbon production lev-

els, S&P calculates that Bahrain and Oman would be highly vulnerable

to a sharp decline in the hydrocarbons market, while Qatar and UAE

would be the least vulnerable among the GCC countries.

Atlas of S&P country ratings worldwide.

Latest exploration drilling in Oman looks promising

In 2013, 33 exploration wells were drilled in

Oman by various companies. The results ap-

pear to be promising according to the Central

Bank of Oman annual report.

PDO drilled 15 wells, resulting in new oil dis-

coveries in fi ve of them. The discoveries have

added approximately 348 million barrels of stock

tank oil initially in place. Occidental Oman drilled

11 wells, six of which pointed to promising re-

sults. Masirah Oil said that the test fl ow rates of

the discovery at the second exploration well in

Block 50 were very encouraging. This was the

fi rst offshore oil discovery in the east of Oman

after more than 30 years of exploration activities.

Oil companies also initiated a number of new

projects during the year, not only to increase

crude oil and gas production but also to boost

existing hydrocarbon reserves. The major pro-

ducer, PDO, has 317 million barrels of hydro-

carbon resources under development across a

number of major projects. In 2013, there were

four major EOR fi eld development projects at

Marmul, Qarn Alam, Harweel-2AB, and the

Amal West steam project.

Not surprisingly hydrocarbon operations re-

main the dominant economic sector accounting

for 49.7 per cent of the nominal GDP in 2013

compared with 51.6% in 2012. Last year the

government continued to pursue a developmen-

tal and economic diversifi cation policy where

more hydrocarbon resources were being utilised

to develop value-added hydrocarbon-based in-

dustries, including petrochemical and energy-

intensive industries. The Ministry of Oil and Gas

invited companies to participate in bid rounds

to explore for hydrocarbons in 12 blocks, both

offshore and onshore, on a production-sharing

basis. Oil production rose to a daily average of

941,900 barrels during 2013.

Action offshore Oman.

INDUSTRY NEWS

Page 15: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 2014 15

were progressing likely resulting in further sales

agreements this year.

Noble Energy operates Leviathan with a

39.66% working interest.  Other interest own-

ers are Delek Drilling (22.67%), Avner Oil Ex-

ploration (22.67%), and Ratio Oil Exploration

(1992) with the remaining 15%. 

The estimated size of natural gas reserves

in the Leviathan fi eld has been lifted by 16%,

according to partners in the fi eld. Production

is slated to begin in 2017. Based on updated

analysis by consultant Netherland Sewall &

Associates (NSAI), the reserves estimate was

increased to 21.93 trillion cubic feet (620 bil-

lion cubic metres - bcm) from 18.91 tcf. The

high estimate was raised by 10% to 26.52 tcf,

while the low estimate was increased by 11%

to 16.58 tcf. NSAI estimates that the fi eld holds

39.4 million barrels of condensate, up from

34.1 million.

The increases follow expansion of Levia-

than’s database, including 3D seismic surveys

and laboratory analysis. Delek Drilling said the

higher reserves ensure Israel’s energy indepen-

dence for decades to come. CEO Yossi Abu

said: ‘The dramatic increase in Leviathan’s gas

reserves gives a wide range of export options

and bases Israel’s position as a leading player in

the international energy map with gas reserves

of 1000 bcm’.

Along with Leviathan’s 620 bcm, the Tamar

fi eld - which started production last year - has

303 bcm, while two smaller sites hold 58 bcm.

The Israeli government is to allow exports of up

to 40% of the gas reserves.

Noble Energy and its partners in the

Leviathan fi eld offshore Israel have

signed a non-binding letter of intent

(LOI) with BG International (BG) for the supply

of natural gas to BG’s existing natural gas liq-

uefaction (LNG) facilities in Egypt.  The LOI con-

templates a total gross sales quantity of up to

3.75 trillion cubic feet (tcf) of natural gas over

a 15-year period, or the equivalent of approxi-

mately 700 million cf/d over the term. Delivery

of the natural gas to BG is expected at the

outlet of the Leviathan fl oating, production,

storage and offl oading vessel with planned

connection to the LNG facilities by way of sub-

sea pipeline.

Keith Elliott, Noble Energy’s senior vice presi-

dent, Eastern Mediterranean, said: ‘The LOI for

the export of natural gas from Leviathan is a

very positive development for the project and

continues to evidence the strong demand for

our discovered resources.  Phase 1 of the Levia-

than project is designed to provide signifi cant

quantities of natural gas to Israel and regional

markets.  This transaction, in combination with

regional cooperation, will also provide access for

Eastern Mediterranean gas into global markets.’ 

Elliott added that negotiations with other

potential customers for Leviathan natural gas Drilling offshore Israel.

BG bids for Leviathan gas

Shell drops out of Kidan gas development

Shell says it is ending its investments in the Kidan gas develop-

ment project in the so-called Empty Quarter in the south east

of Saudi Arabia. No offi cial reason has been given for the

withdrawal, but the emergence of more attractive shale gas invest-

ment opportunities elsewhere may have been a factor. Total, ENI

and Repsol have already abandoned their exploration campaigns in

the area.

Shell was involved in the South Rub al-Khali Co (SRAK) project with

state-run Saudi Aramco and had identifi ed small quantities of gas.

Kidan is said to be rich in sour gas and is near the 750,000 barrels per

day (bpd) Shaybah oilfi eld, one of the biggest in the country. Sour gas

has high levels of potentially deadly hydrogen sulphide and therefore is

tougher to produce than conventional gas reserves.

Reports speculated that the relatively high cost of developing these

challenging deposits could have discouraged the supermajor.

Shell insists that it remains committed to the Kingdom and is keen to

grow its investments, both in upstream and downstream.

LUKOIL on target for Iraq oil production revenues

LUKOIL, operator of the West Qur-

na-2 project in Iraq, said it success-

fully maintained an average daily

production of at least 120,000 b/d of oil

for 90 days, entitling it to begin recov-

ering costs and receive remuneration. 

Daily oil production at West Qurna-2 is

currently above 200,000 b/d.

Andrey Kuzyaev, president of LUKOIL

Overseas, said: ‘The West-Qurna-2 proj-

ect is developing at a fast pace, and production is going up. Timely

cost recovery for the early oil phase will enable the operator to

proceed to active implementation of the subsequent phases of the

fi eld development.

LUKOIL’s Andrey Kuzyaev.

INDUSTRY NEWS

Page 16: EAGE Newsletter Middle East Issue 2 2014

EAGE NEWSLETTER MIDDLE EAST ISSUE 2 201416

September 20147-10 SeptemberEAGE • Workshop on High Performance Computing for Upstream Crete, Greece | www.eage.org

21-24 September 2014EAGE/AAPG/SPE • Second Shale Gas Workshop in the Middle EastDubai, UAE | www.eage.org

28 September – 1 October 2014EAGE • Fifth Passive Seismic WorkshopLisbon, Portugal | www.eage.org

October 201412-15 October 2014EAGE • Borehole Geology WorkshopDubai, UAE | www.eage.org

19-22 October 2014EAGE • First Basin & Petroleum Systems Modeling WorkshopDubai, UAE | www.eage.org

21-22 OctoberLebanon International Petroleum Exhibition & Conference Beirut, Lebanon | www.eage.org

November 201416-19 November 2014EAGE • Second Integrated Reservoir Modelling ConferenceDubai, UAE | www.eage.org

December 20144-7 December 2014Fifth Basra Oil & Gas International Conference & Exhibition Basra, Iraq | www.basraoilgas.com/

7-9 December 2014EAGE • Second Forum for Students & Young ProfessionalsMuscat, Oman | www.eage.org

8 December 2014Geo-Creativity PrizeMuscat, Oman | www.eage.org

February 20158-11 February 2015EAGE • Fifth Arabian Plate Geology Workshop Kuwait City, Kuwait | www.eage.org

10-12 February 2015SPE/EAGE • Reservoir Life Cycle ManagementAbu Dhabi, UAE | www.eage.org

March 20159-11 March 2015EAGE • Second Workshop on Petroleum Play Assessment 2015Antalya, Turkey | www.eage.org

30 March - 2 April 2015EAGE • First Workshop on Well Injectivity & Productivity in CarbonatesDoha, Qatar | www.eage.org

April 201519 -22 AprilEAGE • Third Workshop on Borehole Geophysics Athens, Greece | www.eage.org

June 20151-4 June 2015EAGE • 77th EAGE Conference & Exhibition 2015 - Madrid 2015Madrid, Spain | www.eage.org

EAGE Middle East Event Calendar

Output progress in Kurdistanervoirs with a maximum sustained natural fl ow

rate of approximately 700 b/d of oil using a

16/64-in choke. Similar crude qualities were en-

countered as tested in the Cretaceous reservoirs

at other Demir Dagh wells.

Meantime the Demir Dagh-7 well is to be

spudded in the coming weeks and is expected to

reach a total depth in Q3 2014. Three additional

development wells are to be drilled in 2014 as

deviated wells to Lower Cretaceous reservoirs -

Preparation work for the acquisition of 440 km2

of 3D seismic data over the Demir Dagh, Banan

and Zey Gawra discoveries began in June 2014

Oryx Petroleum has provided a produc-

tion and drilling update for the Demir

Dagh fi eld in the Hawler license area in

the Kurdistan Region of Iraq, where operations

are said to have been largely unaffected by secu-

rity issues in northern Iraq.

Oryx Petroleum is operator and has a 65%

participating and working interest in the Hawler

licence area. It says gross (100%) production at

the Demir Dagh fi eld is currently approximately

4000 b/d.

Two cased-hole drill stem tests were success-

fully conducted at DD-6 in the Cretaceous res-

INDUSTRY NEWS