EBC Regional Director Adrian Phillips looks at the opportunities for energy sector business in The Middle East: the forces at work; key regions; top line statistics; getting started in Iran. Go to www.ebcatalyst.com for more

1. Winning in the Middle East

2. • Energy Business Catalyst
• The Middle East – Forces at Work
• Key regions
• Top line statistics
• Getting started in Iran
Agenda

3. The Middle East

4. EBC Services
Supporting Leadership Teams – Develop & Deliver the Plan
Opportunities
and Threats
Strengths
and Weaknesses
Organisation and Stakeholder Expectations
Forces at work in the
Middle East
Your
Oil and Gas
Capabilities
NOC, IOC, EPC …
JV, Agency, LLC, Branch
Performance
Industry Analysis
-
Competition
Sales Effectiveness
-
Execution Efficiency
Course of Action

5. The Opportunity: Forces at Work
• Demographic & Industrial growth
– Power & LNG
– Offshore
– Petrochemicals
– Refined product
• Fiscal reserves under pressure
– Defence
– Education
– Subsidies
• Privatisation of Aramco – Economic & energy
diversification
• Leadership change in ADNOC, KPC, QP and Saudi
Aramco
• Award delays and existing projects moving slowly,
budget squeeze and discounts
• World cup and Expo 2020
Source: SNC Lavalin
oil price
@ $40

6. The Opportunity: Forces at Work

7. Projects
• NOC monopoly
• Lump sum/turn key
• Low price wins
• Onerous T&Cs taken by EPC
contractors wary of the risk in KSA
• 9 coms and AVLs
• IKTVA and local content
• Larger scale projects
– Gas
– Refining
– Petrochemical
– Power

8. Future Projects (Q2)
• Raising production in Kuwait, Abu Dhabi
and Oman. Maintaining in KSA & Qatar
• Increase gas production everywhere
except Qatar
• Unconventional (tight gas) & renewable
energy
• Focus on offshore in KSA, Abu Dhabi,
Qatar

9. EPC contractors – way to market
• Heavy losses faced by Korean EPC
now looking at Iran
• Resurgence of Technip, Saipem,
Bechtel and Fluor and Technicas
Reunidas – often in JVs with Korean
EPC
• Develop local engineering and
contracting capability through
IKTVA, KSA and Oman

11. KSA = Aramco & Petrochem JVs Kuwait = KPC, KOC (up), KNPC (down)
Oil Capacity: 12.5 million b/d
Gas capacity: 15.5 -> 23 billion cf/d
Refining capacity: 4 million b/d
Capex: $10bn a year
Population: 30 million
Largest econ in the arab world. 25% world’s res, 4th gas. LTA (McD, Saipem,
L&T/EMAS, DI/COEC)
Existing Projects: Jizan, Fadhili, Wasit, Midyan, Master Gas, Shale & BAPCO pipeline
Future: LTA green/brown, Hasbah exp, Satorp, Sadara upgrades, Yanbu petrochem &
refinery
Oil Capacity: 3.2 -> 4 million b/d by 2022
Gas capacity: negligible
Refining capacity: 0.8 -> 1.4 million b/d 2018
Capex: $25 bn a year
Population: 3.4 million
23% of Kuwait’s exports, refined products. PMCs (AMEC, WP, Fluor & Technip) & ETSA
(BP, Shell, Chevron)
Existing Projects: MAA & MAB Clean fuels
Future: New refinery ZOR, LNG terminal, Jurassic, gathering centres
UAE = ADNOC & 19 subsids Qatar = QP, Rasgas, GatarGas & PSAs
Oil Capacity: 3 -> 3.5 million b/d by 2020
Gas capacity: Hail and Bab sour field dev
Refining capacity: 1.08 million b/d
Capex: $4-6 bn a year
Population: 6 million with 85% expat
London considered 8th Emirate
Existing Projects: Upper Zakum, Haliba
Future: Al Dabbiya, Hail & Ghasha, LNG importation terminal, Takreer upgrade, Bab
sour (shell out), Fujeira
Oil capacity: 0.95 million b/d
Gas -> LNG capacity: 17.5 billion cf/d
Refining capacity: 0.3 b/d
Capex: $1-3bn a year
Population: 2.3 million
Highest GDP per capita in the world and largest exporter of LNG
Existing projects: Very little
Future: Bul Hanine, Al Shaheen & Barzan

12. Iran
• Large market
– Greenfield
– Brownfield
• Post sanctions gap filled by
Korea, China and GCC
• Sanctions
◦ Banks
◦ Germany and France
◦ Marketing
◦ Relationships
• Visas and infrastructure
• Annual International Oil Show
• Choosing a partner

13. Conclusion
• Gulf oil production at highest
ever level
• $500 bn of projects over the next
10 years
• Not an easy market to penetrate
– patience and strategy required
• Local partner needed
– Active or passive
• Make or break through AVLs
1. Matching Opportunity to
capability
2. Bridgehead BD & pipeline –
NOC, IOC, EPC
3. Registrations
4. Set-up – Agency to LLC
5. Developing your network
6. Execution models along with
tackling onerous T&Cs

14. EBC offers specialist leadership support to the boards of companies in the
Oil & Gas and Offshore Wind (renewable) sectors – www.ebcatalyst.com
About us
Patrick Phelan is a successful leader of engineering and manufacturing
companies, with 25 years’ experience as a Managing Director. He led the rapid
growth of JDR Cable Systems over a 12-year period, including the creation of
JDR’s Hartlepool factory and their entry to the offshore wind industry. He has
opened branches in Norway, USA, Thailand, Malaysia, Egypt and UAE.
In 2015, he founded EBC, to provide leadership support and advice to other
companies in the sector, and invited Adrian Philips to join as Regional Director.
Adrian Phillips is based in UAE. He is a highly experienced business leader,
with a background in project driven, engineered metering, water treatment,
subsea, oil & gas, industrial systems. He has held senior roles at GE Oil &
Gas, Aker Solutions, FMC Technologies and Alderley FZE.
Supported by a network of experienced associates, Adrian provides
specialist advice and assistance to businesses, helping them to capture
opportunity in the Middle East Oil & Gas and Renewable Energy sectors.