LONDON: Buoyed by the success of seismic imaging that found an extra billion barrels of oil in the Gulf of Mexico, BP is looking to take its latest technology to Angola and Brazil.
The software used in the Gulf, based on an algorithm created by Xukai Shen, a geophysicist straight out of Stanford University, led to BP discovering the crude in an area where it had long thought there was none to be found.
Industry experts said the scale of the discovery 8 km below BP’s Thunder Horse field, announced last week, marked a major leap forward for deepwater exploration — a costly business known for its low success rate and high risk. It is an example of how technology is helping deepwater make a comeback after a decade when the industry has focused on advances in onshore shale.
The new deposit was found with software known as Full Waveform Inversion (FWI), which is run on a super-computer and analyzes reverberations of seismic soundwaves to produce high-resolution 3D images of ancient layers of rock thousands of meters under the sea bed, helping geologists locate oil and gas.
It is more accurate than previous surveying methods, BP said, and processes data in a matter of days, compared with months or years previously.
While the discovery marked the biggest industry success for digital seismic imaging, the British oil major’s rivals are hot on its heel with similar techniques.
BP scientist John Etgen, the company’s top adviser on seismic imaging, said it aimed to retain its edge with a new machine it has developed, Wolfspar, to be used alongside FWI.
The submarine-like Wolfspar is dragged by a ship through the ocean and emits very low frequency soundwaves, which are particularly effective for penetrating thick salt layers that lie above rocks containing fossil fuels, he added.
Etgen told Reuters that BP planned to roll out Wolfspar alongside FWI in the second half of this year at the Atlantis field in the Gulf of Mexico, where a large salt layer still hides parts of the site. The company plans to expand the use of the technology to other big oil and gas basins, including Brazil next year and Angola at a later stage, he said.
“Seeing through very complex, very distorted salt bodies was the hardest problem we had, the most challenging,” the Houston-based scientist said in an interview.
In both Brazil and Angola, oil deposits are locked under thick salt layers. Brazil’s deepwater oil fields comprise one of the world’s fastest-growing basins in terms of production. BP last year signed a partnership with Brazil’s national oil company Petrobras to develop resources there.
Billion-barrel oil finds are rare, particularly in mature basins like the Gulf of Mexico. But the scale of output from deepwater wells means they can compete with the most low-cost basins in the world, in particular US shale.
BP is far from alone in focusing on technology; all big oil companies have put a growing emphasis on digitalization to reduce costs following the oil price collapse of 2014.
In fact, BP’s spend on R&D was the third lowest among the world’s top publicly traded oil companies in 2017 at $391 million, compared with Exxon Mobil’s $1.1 billion and Royal Dutch Shell’s and Total’s budgets of over $900 million.
Other majors have also made advances. Italy’s Eni has launched the world’s most powerful industrial computer to process seismic data, for example, while France’s Total is using drones to carry out seismic mapping in dense forests such as in Papua New Guinea.
However Barclays analysts said in a report last year that BP and Norway’s Equinor had the most advanced deployment of technology among oil majors.
The seismic breakthrough for BP came when Xukai Shen tested a new idea he had for the FWI algorithm in 2016.
“What happened was magic — the pieces came together,” recalled Etgen. “We finally had the right algorithm with the right data set to create the model of the salt formation and use the model to remove distortion.”
BP says its new seismic technology could save it hundreds of millions of dollars in exploration hours by pinpointing the location of the most promising deposits.
“It allows us to drill the right wells, drill wells at lower costs, drill wells in the best part of the reservoir, drill fewer wells,” Etgen said.
The costs of the technology are a fraction of BP’s oil and gas production budget of around $12 billion per year.
An FWI survey costs up to $20 million to carry out, while processing the data costs up to $10 million, Etgen told Reuters. The annual spend on the super-computer that runs the software is about $20 million.
“The companies that are investing in technology are coming through and winning the race,” Henry Morris, technical director at independent North Sea-focused explorer Azinor Catalyst.
“That’s where BP are doing a good job. It’s working.”
Seeing through salt layers with confidence “adds real value” and saves companies the premiums they must pay to acquire resources through acquisitions, according to Bernstein analysts.
“With high-performance computing, the seismic processing and interpretations are being done in two weeks rather than 1,000 years, as it would have been if they still used 20th century computers,” they said.
“Investors should therefore expect more from BP with this edge.”
After billion-barrel bonanza, BP goes global with seismic tech
After billion-barrel bonanza, BP goes global with seismic tech
- New algorithm allows quicker and cheaper exploration of the most promising oil deposits
- Industry experts said the scale of the discovery 8 km below BP’s Thunder Horse field marked a major leap forward for deepwater exploration
New service at Jeddah port to boost Saudi-India trade
RIYADH: Saudi and Indian traders are set to benefit from Jeddah Islamic Port’s new service, bolstering trade connectivity between the nations.
The Saudi Ports Authority, also known as Mawani, on Thursday said that Unifeeder, a Danish logistics company, has introduced the “RGI” shipping service at the Saudi port. This initiative connects the Kingdom to Indian checkpoints, facilitating trade between the two nations and offering expedited and secure solutions for exporters and suppliers.
In a statement, Mawani affirmed that this undertaking showcases investors’ confidence in the Kingdom’s terminals, bolsters maritime transport and logistics services, and solidifies Jeddah Islamic Port’s status.
It added that the seaport is the Kingdom’s first dock for exports and imports, and the first re-export point in the Red Sea, with 62 multipurpose berths and a capacity of 130 million tonnes.
The new shipping service connects the Jeddah terminal to the ports of Mundra and Nhava Sheva in India, Jebel Ali in the UAE, and Sokhna in Egypt through regular weekly trips, with a capacity of up to 2,824 twenty-foot equivalent units, Mawani noted.
Mideast sets record in renewable energy capacity, Saudi Arabia reaches 2.6 GW: IRENA
RIYADH: Renewable energy capacity in the Middle East soared to a record high in 2023, with the addition of 5.1 gigawatts, marking a 16.6 percent increase from the previous year.
According to the latest data released by the International Renewable Energy Agency, this new addition brought the region’s total renewable energy capacity to 35.54 GW, with Saudi Arabia accounting for 2.68 GW.
The data showed that global green power capacity reached 3,870 GW in 2023, marking a 13.9 percent increase over the previous year. This represents the largest surge in sustainable energy capacity to date, with the addition of 473 GW.
Green sources constituted a record-breaking 86 percent of global power additions, primarily driven by substantial expansions in solar and wind energy.
Solar power alone contributed nearly three-quarters of renewable additions, totaling a record 346 GW, while an additional 116 GW of wind energy was incorporated, the report added.
Francesco La Camera, director general of IRENA, said: “Despite these unprecedented renewable additions in 2023, the world is still falling short of what is required to achieve the goal adopted at COP28 to triple installed renewable power capacity by 2030 to reach 11 TW.”
With one less year to meet the goal, he emphasized that the world now requires additions of approximately 1,050 GW each year for the remainder of this decade to align with the World Energy Transitions Outlook scenario and maintain a trajectory toward limiting global warming to 1.5 degrees Celsius.
The growth of sustainable energy is unevenly distributed globally, with Asia leading the expansion with a 473 GW increase, primarily propelled by China’s 63 percent surge to 297.6 GW. This highlights a notable discrepancy with other regions, particularly developing countries. While Africa saw some growth, it was modest at 4.6 percent, reaching 62 GW.
By the end of 2023, Camera said, renewable energy sources comprised 43 percent of the global installed power capacity.
“Yet, as we draw closer to a world in which renewable energy accounts for half of total capacity, many energy planning questions still need to be addressed to establish renewables as the most significant source of electricity generation - including in the context of grid flexibility and adaptation to variable renewable power,” he added.
ACWA Power signs $800m water purchase agreement with Senegal
RIYADH: Saudi energy giant ACWA Power has signed an SR3 billion ($800 million) agreement with Senegal’s Ministry of Water to develop a desalination plant.
The company, partly owned by the Public Investment Fund, announced the inking of a water purchase agreement for the construction of the facility in Dakar, Senegal in a statement on the Saudi Stock Exchange, Tadawul.
ACWA Power will be responsible for the infrastructure, design and financing as well as construction, operation and maintenance of the Grande Cote seawater desalination plant in the West African country.
The project will have a production capacity of 400,000 cubic meters per day, the statement said.
Its first phase and financial impact are expected to materialize by the first quarter of 2028, with a contract duration of 32 years.
This marks a continued partnership between the company and Senegal, as it has previously signed a memorandum of understanding with the Senegalese National Water Co. and the country’s National Electricity Co. in September 2022.
The MoU entailed the development of a 300,000 cubic meters per day seawater reverse osmosis plant in Grande Cote, located about 40 km north of the nation’s capital.
The development was the first desalination project in the country to be facilitated through a public-private partnership and the largest treatment initiative of its kind in Sub-Saharan Africa.
NEOM CEO lands in top 3 of Forbes’ Real Estate Leaders list
RIYADH: NEOM CEO Nadhmi Al-Nasr has been ranked third in Forbes Middle East’s “Most Impactful Real Estate Leaders” list, underlining the Kingdom’s prominence in the sector.
The giga-project chief was placed beneath Mohamed Alabbar from UAE-based Emaar Properties and Talal Al-Dhiyebi, CEO of Abu Dhabi-headquartered Aldar Properties.
The Kingdom had the second-most entries on the list, with 23 Saudis appearing in the publication’s rankings.
This is a testament to the major investments the nation has made in its real estate sector, a statement from Forbes noted.
“Governments, corporates, and semi-government developers are investing in real estate projects throughout the region, particularly in Saudi Arabia, Egypt, and the UAE. These projects are giving a huge boost to the regional construction sector, which also has a positive outlook over the next few years,” the statement said.
Demonstrating this, several leading Saudi companies landed within the top 20 of the list.
Among them was David Grover, the CEO of Saudi Arabia’s Public Investment Fund subsidiary, ROSHN Group, who ranked eighth place.
This is a testament to the giga-project’s vital role in enabling the achievement of Vision 2030 through the expansion of the private sector and the creation of job opportunities.
Similarly, the CEO of the Kingdom’s National Housing Co., Mohammad Al-Buty, ranked 13th, while the founder of Dar Al-Arkan Saudi Development Co., Yousef Al-Shelash, was placed 14th in an evaluation of 100 regional companies.
The criteria for the rating system are based on the company’s financials, value of projects completed, and reputation of project delivery, as well as the land bank units held by the developer.
Entities featured on the list based on this methodology include nine countries in the region. The UAE leads with 33 companies named, six of which are in the top 10.
Saudi Arabia followed with 23 companies, while Egypt came third, with 20 companies in the ranking.
This is driven by the fact that real estate sale transactions in the nations of the Gulf Cooperation Council between January and October 2023 reached $171.6 billion, up 21.1 percent year-on-year, according to a report by Kamco Invest.
In 2024, the property sector continues to have promising long-term potential. Robust economic growth, expanding population, and government investment could all contribute to increasing demand for real estate, the statement by Forbes highlighted.
UAE, Japan to develop industrial steam and electricity cogeneration plant in Saudi Arabia
Abu Dhabi National Energy Co., also known as TAQA, together with JERA Co., Inc, Japan’s largest power generation company, announced Thursday that they have entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Co., or SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies.
According to the Emirates News Agency, they will develop a greenfield industrial steam and electricity cogeneration plant that will produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in the Eastern Province of Saudi Arabia.
The Amiral petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.
The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections while meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre.
The project also provides for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring, WAM reported.
The Amiral cogeneration plant will be developed by a special purpose entity owned by TAQA, holding 51 percent, and JERA, holding 49 percent. It will operate on a build, own, and operate basis for 25 years, with the possibility of extension by five years upon mutual agreement.
TAQA and JERA will also undertake the operation and maintenance of the plant through an O&M special purpose entity.
Farid Al Awlaqi, CEO of TAQA Generation, said: “The signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility, a key downstream project being developed by two of the world’s leading energy companies, demonstrates the confidence in TAQA’s ability to deliver critical utilities, including power and steam effectively.
Together with our partner JERA, TAQA is looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonization program. The agreement will bolster TAQA’s efforts in building on our growth and executing our 2030 goals.”
Steven Winn, chief global strategist of JERA, said: “We will be providing stable, highly efficient, clean and reliable power and steam to our customer SATORP. The Amiral Cogeneration plant will not only enhance the Amiral Complex’s operational efficiency, but also demonstrate our commitment to environmental stewardship and our growth ambitions for sustainable power generation solutions in the Kingdom of Saudi Arabia and the region.”