António Costa Silva, management commission chairman, Partex Oil and Gas, shares his insights on the important role the Middle East plays for international energy companies and discusses the Portuguese upstream operator’s biggest regional partnerships and projects
How important is the Middle East to Partex, and is it becoming an area of increasing focus for you in the near future?
The Middle East is a key region for Partex, with the region linked to the inception of Partex, a company created by Mr. Calouste Gulbenkian more than 70 years ago. We are genetically linked to the start-up of the oil industry in the region, and in the first decades of the 21st century our business model relies on a close working relationship with the local authorities and with our partners here to establish sound and solid alliances.
I understand Partex has a number of partnerships with companies in the region – can you provide some detail around who these partners are and what operations you are involved in across the Gulf?
In Abu Dhabi, Partex has participating interests in GASCO and ADCO. Our partners in GASCO are ADNOC, Shell and TOTAL, while Our partners in ADCO are ADNOC, BP,Exxon, Shell and TOTAL. In Oman, we have participating interests in PDO, Oman LNG and Mukhaizna, with our partners being the Government of Oman, Shell and Total in PDO. In OLNG, we are partners with the Government of Oman, Shell, Total,Korea LNG,Mitsui and Itochu, while in the Mukhaizna project, we have partnered with the Government of Oman, Occidental ,Oman Oil Company, Liwa Energy, Shell and Total.
What activities are you undertaking in Oman, and are you also looking at expanding into other countries of the Gulf region? Where would you be looking next, and what do you see as the prime opportunities?
“Partex’s activities in Oman are related to the operating companies PDO, OLNG and Mukhaizna, encompassing the provision of human resources, technology, execution of technical services, identification of key business needs of the operating companies and the provision of technical answers through a focused and dedicated research and development programme.
“We have a couple of R&D initiatives involving Universities and Research Centers in areas like seismic inversion, enhanced models for reservoir characterisation, fractured carbonate reservoirs, field development optimisation and efficiency and enhanced oil recovery.
Is the difficult economic situation in Europe, with Portugal among countries in the last 12 to 18 monthsto be hit by recession, increasing the extent of outbound investment into areas such as the Middle East?
“Partex has its broad operations outside of Portugal, and the Middle East has been a core area for a long time. We have a long term vision for the countries we are in and our investment in the Middle East is permanent and very focused, not dependent on specific events or crises.
What do you see as some of the challenges presented by the Gulf region, particularly for a European company looking to gain a foothold?
“The main Challenges for the Gulf Region are related to the perspectives opened by an extraordinary period of growth and the expectations this has created, especially for the younger generations.
“The response to these expectations in terms of education, employment and better living conditions will be very important to ensure a sustainable future. Partex pays considerable attention to its social responsibility role, because it is owned by the Gulbenkian Foundation and [part of] the revenues generated from the oil and gas activities go to the Foundation, which develops activities in benefit of mankind in areas like education, culture, arts, social projects, science and medical research.
“Partex and the Foundation support projects in these areas in the Middle East and cooperate with Abu Dhabi’s Emirates Foundation.
Many international E&P oil & gas companies, particularly those with critical mass, are looking to Iraq as a massive potential market in the coming years. Is this a country Partex is looking to expand into, and if so, where and in which areas of the industry?
We are are following the situation in Iraq very closely, but no decision has yet been taken to come back to this country, where Partex had operations some decades ago.
What are some of the most exciting projects Partex is currently involved in around the world?
“Among some of the most exciting projects where we are is involved are the production expansion of ADCO and GASCO in Abu Dhabi and the implementation of major EOR projects in Oman.
“In addition, I would highlight the optimisation of the development plan for a field in Central Asia, the development of a huge gas field in Algeria and two deepwater offshore exploration projects, one each in Brazil and Angola.”
Costa Silva recently delivered a presentation at dmg Events’ Middle East Gas Forum, held in Abu Dhabi from October 30 to November 3, 2011. Titled ‘Strategic and Structural Changes in the World Energy Markets and the role of Gas’, he addressed current and future trends in energy markets, key game changers, the role of conventional and unconventional gas and changes in the gas trade pattern.
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