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Opinion

Thought Thought ThoughtStream

Hugh Fraser, Andrews Kurth (Middle East) JLT (ETSA) contract models, as a partial solu-

Intelligent energy tion to this challenge, such as the ETSA

Kuwait Oil Co. placed with Shell to develop its tight gas Jurassic Field in the in the Middle East north of the country.

he Middle East has long been associ- projects market in the region in the next A further drive to advanced technology

T ated with “easy oil” and “low tech, ? ve years, but Saudi Arabia and Abu will follow if the current and prospective low cost” production models. But the Dhabi will continue to attract huge capi- Red Sea and East Mediterranean explora- volume, scale and complexity of energy tal intensive projects. This represents a tion and appraisal programs bear fruit projects across the region are creating major prize for EPC contractors and their and bring deepwater ? elds into play in a increasing demand for advanced technol- supply chain. region dominated by onshore and shal- ogy and expertise. low water production.

This rapidly changing scenario is being While clearly a region of opportunity,

While clearly a driven by factors including the accel- those seeking to play to their innova- erating need for enhanced oil recovery, tive technology strengths will have sour gas, heavy oil, tight gas, LNG, to minimize the risks that proprietary region of opportunity,

GTL, “clean fuels” re? neries, carbon technology and knowledge is exploited capture and storage, nuclear, and solar by others.

those seeking to play technologies. Conventional thinking has been

This intelligent energy trend, which to focus IP protection in the US and to their innovative can be evidenced by Saudi Aramco’s Europe, but the Middle East provides drive towards high technology solutions, unique protection for technology, technology strengths presents major opportunities and chal- brands, engineering designs, and soft- lenges for international companies, in ware. There are a range of options avail- will have to minimize relation to intellectual property acquisi- able within the six Gulf Cooperation tion, transfer, and protection, across the Council countries and the position is the risks that region. improving in Iran.

The scope and scale of opportunity in As the technology needs across the proprietary technology the region is exercising a signi? cant pull region become increasingly complex, it for IOCs and the global supply chain. will incumbent on companies to ensure and knowledge is

Just over half of the world’s proven that they have the appropriate strate- conventional oil reserves and 42% of the gies and protections in place for their IP, exploited by others.

world’s proven conventional gas reserves as part of their overall risk and reward are in the Middle East and North Africa assessments. (MENA). The region has 13 of the world’s The retreat of IOCs from the region, 20 giant oil? elds, as well as the largest seen in the 1970s, when a major nation- Hugh Fraser is managing Partner at gas ? eld in the world. alization program pushed them out, has Andrews Kurth (Middle East) JLT, in There is an estimated US$3 trillion been reversed. Perhaps the most impor- Dubai. He is a Scottish corporate lawyer, of projects underway or planned in the tant development anticipated in the from Aberdeen, and based in the Middle six Gulf Cooperation Council countries region in a generation is the expiration East for 10 years, and with 25 years of (Saudi Arabia, United Arab Emirates, and replacement of the ADCO onshore experience in the international energy

Kuwait, Oman, Bahrain and Qatar) plus concessions in Abu Dhabi, which could industry. He was the founder and manag-

Iraq and Iran. The majority of these relate bring in a host of new IOC operators, ing partner of Hugh Fraser International to upstream oil and gas, downstream including Statoil. The petroleum indus- Legal Consultancy (2003-2013) and (including re? neries, LNG and GTL), try is balancing the politics of “resource the former group head of legal at John petrochemicals and related infrastructure nationalism” with the need for IOCs Wood Group PLC (1996-2003). Houston- projects. and their technology. It can be expected headquartered Andrews Kurth pro-

Industry watchers anticipate that Iraq that there will be an increasing use of vides legal services to the global energy will overtake Saudi Arabia as the biggest enhanced technical services agreement industry.

March 2014 | OE oedigital.com 12 000_OE0314_ThoughtStream.indd 12 2/21/14 9:03 AM