15 - 17 april 2019 · • creating a long-term strategy to promote investment to oman and...
TRANSCRIPT
www.downstream-oman.com
Organized by
www.downstream-oman.com
Under the auspices of
15 - 17 APRIL 2019Oman Convention & Exhibition CentreMuscat, Oman
6th September 2018, Kempinski Hotel, Muscat
www.downstream-oman.com
Shaping ODEC 2019
In preparation for the highly anticipated 3rd edition of the Oman Downstream Exhibition & Conference (ODEC) on 15-17 April 2019, the WRA and Oman Expo gathered senior stakeholders from the Sultanate’s downstream industry including the Omani Ministry of Oil and Gas to formulate the topics shaping the conference and address the pressing challenges for the country.
In this exclusive closed-door meeting an array of key themes were covered including:
• Futureoutlookfortherefininglandscapefrom2019-2030 • Thepotentialoffullvaluechainintegrationbetweenupstream,midstreamanddownstreamsectors • Creatingalong-termstrategytopromoteinvestmenttoOmananddifferentiateitfromitsGCC neighbours • MovingtowardsincreasedpetrochemicalproductioninordertosupportthedemandseeninChina as well as India and Africa • TheallocationofgasfromtherecentdiscoverybyPetroleumDevelopmentOman(PDO) intheMabroukgasfield • CapitalisingontheIndustry4.0wavetooptimiseandmaximiseOman’stechnologicalcapacity • DevelopmentoftalenttosupportOman’sdownstreamsector
Throughinterestinginsightsanddiscussions,itwasconcludedthattherewasagreatopportunityforOmanto showcase itself to the global downstream community next year and there was reason to be optimistic. Read on further to see the key takeaways from this leading board meeting.
We look forward to welcoming you in Oman next year.
Sandil Sanmugam
Conference Manager World Refining Association
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Advisory Board Members
Chair:
Advisors:
Sanjay SharmaVicePresident - MDE & India
IHS Chemical
Saleh Al AmriGeneral ManagerEPCPackage2
Duqm Refinery Project
Andrew Carne-RossVPCommercialOnshore,
MENA, McDermott
Christiaan van der WoudenChiefOperatingOfficer
Orpic
Dr. Shanmugam BalajiHeadofPlanning
&BusinessDevelopmentOman Oil Company
Jamal QakeeshRegionalVPBusinessSolutions
KBC
Dr. Hilal Al HinaiGeneral Manager
CorporateSupportServices Orpic
Hilal Al KharusiExecutiveManagingDirector
Oman Oil Company
Dr. Saleh Al AnbooriDirector General of Management
ofPetroleumInvestments Ministry of Oil & Gas
Erwin Mortelmans Commercial Director
Port of Duqm
Mai Al EisaDeputyChiefExecutiveOfficer
Duqm
Lee Chee KhianChiefExecutiveOfficer
Duqm Special EconomicZone Authority (SEZAD)
Colin CrowleyVicePresidentBusiness
DevelopmentandSales-AfricaUAE and Oman, SNC-Lavalin
Nathan WaldronOman General Manager
Wood
Vikas UpadhyaySenior Engagement Manager
McKinsey & Company
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Petrochemicals Pave the Way Ahead For Oman Downstream
Tokick thingsoff theODECboardmembersassessed today’sglobalmacroeconomicclimate.Theyidentifiedthevarioustrendsthat could influence the road ahead for the Omani downstream industry particularly the current period of geopolitical instability andtheriseindemandforelectricvehicles.
Seniorconsultantsandrefinersnotedthattheglobalshifttowardsan all-electric economy especially within western countries could have an impact on Oman’s overall downstream strategy.Withfuel demand set to decrease, the board concluded that the use of Oman’s crude and gas would need to be put to better commercial use in the form of petrochemicals production. Some Omani companies have already begun their strategy includingOrpic who will increase their polypropylene and polyethylene production volumes to1.5million tonnesby2020and look tospreadtheirinternationalpresencetoover100countries.
ThisviewparalleledwiththeInternationalEnergyAgency’srecentreportwhich identifiedpetrochemicalsas theprincipaldriver inlong-term oil demand. Board members suggested that Oman should focus its increased domestic oil output on international markets including South East Asia, Africa and India whilst the OmaniGovernmentcontinuestodevelopitslocaldemand.
Even though itwasconcludedasapositivemove therewasawordofcautionaboutthecurrentnegativesocietalandregulatoryperception of plastics. The board noted, however, that bysupportingplasticsadvocacy,recyclingplasticsandencouragingeconomic growth in emerging economies the benefits wouldoutweigh the costs.
As such, identifying ways to support the petrochemical industry in Omanwasviewedasatopprioritybyadvisorstobeaddressedat ODEC in April.
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Allocating Oman’s Gas Discovery tothe Downstream Sector Will Differentiate the Country from its Regional Competitors
Asasmoothtransitionfromthediscussionsaroundpetrochemicalfeedstock,conversationscentredonthelatestdiscoveryintheMabroukgasfield.Withtherecoverableamountbeingestimatedatmorethan4trillioncubicfeet(TCF)and112millionbarrelsofcondensate,OmanhasakeydifferentiatorintheregionwithTotalandShellalreadybeinginvolvedingasprojectsintheBarikarea.ThequestionattheheartoftheadvisoryboardwashowgascouldbeusedandhowtheOmaniGovernmentcouldallocatesharestovariousdownstreamplayers.
OnesuggestionwastheuseofLNGasabunkerfueltoovercomethechallengesfromthependingIMO2020regulations;anotherwasforOmantodifferentiateitselfgloballybyinvestingingas-to-liquidsespeciallyasthereareonlythreealternativeinternationallocations,Nigeria,QatarandMalaysia.
Alternatively,therewastheproposedgastoaromaticswhichwasalsoviewedasawaytodifferentiatefromthetraditionalcrude-to-chemicalsprojectsseenintheMiddleEast.
IdentifyingthebestuseofgasanddefiningtheMinistry’sallocationstrategywasalsoofinterestfortheboard.As such, at ODEC2019 there will be leading keynote panel including the Ministry of Oil and Gas as well as other national and international gas stakeholders.
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Developing Oman’s In-Country Valueis Essential to the Country’s Progression
AquestionthatresonatedwiththegroupwashowOmancanbeanattractivedestinationforthedownstreamsectorwhenthereislimitedlocaldemandforrefineryproducts.Boththeinternationalandlocalboardmembersdiscussed this at length identifying three core issues for Oman to address: infrastructure, technological capabilities and talent.
LogisticsSeniorrepresentativesfromOman’skeyinfrastructurebasesincludingSEZADandthePortofDuqmemphasisedtheimportanceofthefree-flowofgoodswhichwouldgeneratefurtherinternationalinvestmentandsubsequentlyencouragelocalgrowthbyimprovedaccesstomaterials.Inaddition,manyraisedthechallengeforinvestorswhen operating in Oman posed by the multiple companies currently operating across the national oil chain. It wassuggestedthatintegrationorJVsacrossupstreamanddownstreamwouldbemoreeffectiveandwouldfollow the simpler models seen in other countries.
Technological capabilitiesDigitalisationandIndustry4.0hasbeenintegratedintobusinessesstrategiesacrossallsectorsglobally.ItwassuggestedthatOmancouldjump-startitsdownstreamindustrybyinvestingheavilyintonewdigitaltechnologiestosupportitsgoalofincreasedproduction.Thiscouldalsohelpcutoperationalexpenditure,improvesafetyandmakeprocessesmoreefficient.Refinersmentionedthatinnovatingtherefinerycontrolroomsandaccessinglargedatasetswithaclickofabuttonwouldhelpimproveturnaroundstimesandtroubleshootingatamuchfasterrate.OtherformsofinvestmentmentionedtohelpimproveOman’sdownstreamwereintothedigitaltwinaswellasresearchanddevelopment.IfOmanweretobecometheindustryleaderindigitalisationintheregion,itcouldallow for new educational opportunities for young engineers, in turn helping the on-going talent challenge.
Talent Forlogisticsandtechnologytowork,itreliesentirelyonthehumancapitalrunningtheoperations.Formanythisiswhere Oman is struggling and the country needs to support young talent in preparing them for a career in process and chemical engineering. Thereweremany anecdotal remarks aboutmanpower capacity as the key issuehindering the business capabilities in Oman. As a solution, many spoke of international and national downstream businessescollaboratingandprovidetrainingthroughincubatorsandotherstudentengagementprograms.
To address these three issues we have added digitalisation and infrastructure panel discussions; youth-engagement programmes including our Rising Stars initiative; and dedicated consultancy-led workshopssupportingOman’slong-termin-countryvalueinitiatives.
These takeaways have shaped the agenda for 2019’s Oman Downstream Exhibition and Conference which will be taking place on 15-17 April in Muscat.
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Join us at ODEC 2019on 15th – 17th April 2019
Visit downstream-oman.com for more information.
For sponsorship opportunities contact:
Max Michaud-Daniel +44 207384 7983
Satyam Chopra +96899344198
For speaking opportunities contact:
Sandil Sanmugam +44(0) 207384 7744
For Media Partnerships or press contact:
Melissa Daleja +968 24660122 +968 99471704
Delegate Registrations contact:
Emma Dinwoodie +44 (0)207 384 7978