By The Gulf Intelligence
H.H. Sheikh Dr. Rashid Bin Hamad Al Sharqi, Deputy Chairman, Fujairah Oil Industry Zone, will Head the Delegation from the UAE’s Emirate of Fujairah, at the Middle East Energy Summit under the Auspices of The Energy Institute’s International Petroleum Week in London on Feb. 22nd.
Dubai – Feb. 15, 2017– His Highness Sheikh Dr. Rashid Bin Hamad Al Sharqi, Deputy Chairman, Fujairah Oil Industry Zone shall lead the Fujairah Delegation in London (Feb.20-23). He shall be accompanied by His Highness Sheikh Sultan bin Saleh Al Sharqi, the Vice Chairman of the UAE’s Fujairah National Group.
Dr. Salem Abdo Khalil, Technical Advisor, Government of Fujairah will give the Welcome Note on how national oil companies (NOCs) in the Gulf are finding their feet after decades of relying on the financial and technical expertise of international oil companies (IOCs). The NOCs historically enjoyed easy and cheap access to energy reserves, which created operational inefficiencies. Now, a 70% decline in oil prices since mid-2014 to today’s $55/bl have spurred NOCs to swiftly and smartly demonstrate unprecedented efforts to improve their commercial efficiency while safeguarding national energy security.
“The current era of low oil prices and rising energy demand means NOCs are undergoing unprecedented change since their inception more than seventy years ago. Today, NOCs must balance a three-point agenda; commercial success, social responsibilities and national energy security,” said Dr. Salem, a member of FOIZ Development Committee. FOIZ is also a Gold Sponsor of the Gulf Intelligence Middle East Energy Summit at IP Week. “Accordingly, the relationships between NOCs, IOCs and service companies are evolving and bringing more changes this year. The energy industry in the Gulf that we know today will have a different face this time next year. The ever-growing range of sophisticated infrastructure, storage, and trading facilities at the Fujairah Oil Industry Zone, Port of Fujairah and Fujairah Free Zone will play a crucial enabling role for Gulf-based NOCs, IOCs and service companies to expand their footprint at home and abroad,” Dr. Salem added.
Fujairah’s location to the south of the Straits of Hormuz – through which around 40% of seaborne oil passes – makes it a strategic location from which the Gulf’s energy entities can expand their commercial footprints. The Port of Fujairah is already the world’s second largest bunkering hub and in the last year alone, the Port has launched a $175m very large crude carrier (VLCC jetty). The weekly release of oil inventory data by FOIZ spearheaded market discussions on how best to launch the Middle East’s first independent pricing benchmark for oil products. Part of Fujairah’s growing popularity is that it offers a one-stop shop, with the Port being able to provide supplies, bunkering, crews and so on. Furthermore, the goal of FOIZ to increase petroleum storage capacity by 75% to 14 million cubic meters by 2020 is well underway and a second VLCC jetty may be built in the medium-term.
As well as leveraging the opportunities offered by the Port, NOCs must also ramp up their technical expertise to be commercially competitive on the global energy stage. NOCs have fallen behind IOCs when it comes to being tech-savvy and thinking outside the box to maximize the potential from more mature and challenging assets.
NOCs’ transformation into more independent entities is well-timed, as the populations and energy demand across the region swells. Dubai’s population is forecast to double to 5m by 2030 and Qatar’s population of 2.6m is expected to grow eight-fold by 2050, for example. BP’s Energy Outlook anticipates a 49% increase in the Middle East’s energy demand by 2035, with gas demand accounting for almost half the growth.
About IP Week:
The Energy Institute is the largest Royal Charter international professional membership organization and learned society concerned solely with energy, with Her Majesty the Queen as its Patron. IP Week is recognized as one of the major international oil and gas events, where senior leaders, policy makers, and academics gather to share, learn and shape the future direction of the industry. IP Week has a global appeal, attracting delegates from over 50 countries and it is one of the major events in the Energy Institute's annual program.
About Gulf Intelligence:
Gulf Intelligence is a UAE-based strategic communications consultancy that facilitates critical Knowledge Exchange and Networking between stakeholders operating across the South-South Corridor – connecting Government Related Entities in the Middle East and their International Partners trading across this New Silk-Road passageway from Asia to Africa.