Rami Qasem, President, MENAT & India, BHGE talked to Pipeline Magazine about expanding its Middle East presence and looking to the downstream sector for growth
Are you looking to expand your footprint in the Middle East region?
Yes, our focus is to strengthen our footprint in the region. Our competencies are an ideal fi t – which are focused on strengthening the efficiency of the energy sector. Our business model is to build local capability inside a global footprint; this means, to redefine the industry and better partner with the local economy and drive local value. At BHGE, we have had a presence in the region for more than 80 years; as such, we understand the region, the industry and the requirements of our customers.
As a full-stream company, we offer what no others can: deep industry insights and cutting-edge technologies for upstream, downstream and midstream sectors, thereby creating incremental value for the economy and achieve higher levels of efficiency. We are there to meet the needs of our partners – and this is reflected in our new strategic partnership agreement with ADNOC to support the growth of its subsidiary, ADNOC Drilling into a fully integrated drilling and well construction provider.
We will be the sole provider of proprietary technology that will help deliver more competitive well completion times, greater drilling efficiency and better well economics. We also see strong opportunity in Liquified Petroleum Gas (LPG), gas processing and gas capture; in fact, in Iraq, we are working with South Gas Company to fast track solutions to recover flared gas in the Nassiriya and Al Gharraf oilfields that will recover 200 MMSCFD of dry gas, LPG and condensate. With this, we are adding even greater value to the economy, as the surplus LPG and condensate can be exported, supporting state revenues.
Are you looking to target the region’s downstream/petrochemical industry more?
Of course; we want to be closer to our customers across the entire value chain of the industry, and we believe that only Baker Hughes, a GE company (BHGE) has the full-stream capability that can help our partners achieve transformational growth. Petrochemicals are, in fact, fundamental to daily life and daily business – and therefore central to positive growth in national economies. They are part of the value chain of almost any industry sector with a manufacturing component. Over the last decade, this rising prosperity, coupled with population growth, has pushed up global demand for petrochemicals faster than the growth in GDP. And the ‘push’ is expected to continue. Global demand for petrochemicals in 2030 could be twice what it was in 2010. We can support the industry through our comprehensive portfolio of process chemicals, plant equipment and services. These have been proved to be efficient across all types of plants and under extremely difficult environment and harsh weathers worldwide. And what gives us an edge is our strength in digital technology, which helps our customers gain real-time insights that are extremely valuable in strengthening the downstream sector.
How important is your offering across the whole oil and gas value chain?
As I mentioned, we are a fullstream services and technology provider. This means, we provide solutions across the energy value chain: from the reservoir to the refinery, from upstream to midstream to downstream. Our technology is important for the value chain because it helps our customers achieve higher levels of efficiency and productivity, while reducing costs and risks. The market provides us with an opportunity to capitalise on our advanced fullstream technologies and powerful digital tools to optimise performance and maintain the highest safety and environmental standards. Some examples include our ultra-reliable rotating machinery, efficiency boosting flow and process technologies and value-focused chemical solutions. With over 80 years of heritage and a deep presence in the region, there is no other company like BHGE that has the same capabilities to offer fullstream services. We combine in-depth technology and expertise with a start-up mindset. We ensure the continuity of customer businesses, address any challenges they face, and exceed the desired performance objectives.
Are you bullish about the drilling opportunities in the region?
Yes, we are. While there are changing market realities, we have a positive outlook for the region. The industry continues to show positive signs of recovery, and our strategy is in a strong position. We’re winning more deals, and customers are signalling increased spending, as demonstrated by some of the more positive news we’re hearing on investment decisions on large projects. We are here to help our customers unlock the true potential of our operations. Our outcome-based solutions mean, we can go any length with the customer in exploring and executing drilling opportunities. We also have a major drilling contract that includes directional drilling, logging tools, and Rotary Steerable Technology for precise steering control, underlining our leadership in the execution of drilling services in the region. We see significant opportunities in UAE, Saudi Arabia, Iraq, Algeria, Turkey and beyond – where we are building our market presence further.
How is BHGE taking advantage of the growing digitalisation in the energy sector?
Driving the digitalization of the oil and gas sector in the region is absolutely key. Despite strong advances in digital, the oil and gas industry has been lagging in digital transformation. Only 3 to 5 percent of oil and gas equipment are connected and there is so much opportunity to do more. Why is digitalisation important? It helps increase the operational efficiency and productivity of existing and new wells – precisely the challenges that the region faces today. For businesses focused on improving asset reliability and integrity, our Asset Performance Management (APM) software can support our customers in helping achieve significant savings by increasing maintenance efficiency and effectiveness. APM also provides a mechanism to reduce regulatory compliance cost and effort and minimise the risk of non-compliance. For businesses aiming to improve understanding of the subsurface faster to improve time to value, our JewelSuite reservoir and well modelling software can reduce modelling time by more than half of traditional solutions. In 2017, we introduced IntelliStream, a production optimisation software to give full field visibility for operators and improve production outcomes.
What are your aims at this year’s ADIPEC?
We are extremely proud and honoured to be at ADIPEC, an event that we regularly participate in. It is a delight to meet with industry experts and peers, and to discuss the new trends and opportunities at ADIPEC.
BHGE will have a strong presence at ADIPEC this year. Of course, we will highlight our ability to work fullstream, which is our differentiator. We want to demonstrate to the visitors – our customers and potential customers - that we are not constrained by traditional industry barriers. Our technology helps to break down silos in every segment and sector – upstream, midstream and downstream, brownfield and greenfield, onshore and offshore.
And that is what makes a preferred partner in the region. We will present our services and solutions that are designed to help lower costs, and make things faster, simpler and more productive, delivering the radical improvements in productivity, reliability, flexibility and efficiency that the industry needs.