Page 47 - Industrial Plants

as a gas hub, and Tarek El-Molla confirmed that his new architectures allowing the exchange of data and a
country is looking strategically to integrate with fair allocation of risks and rewards between sponsors
neighbouring states, through talks with Cyprus, Israel, and contractors.
Lebanon and Jordan. Rita Marino (EVP Procurement, Eni), has focused on
Cyprus, in particular, is focusing on export, as how Eni has faced the phase of market downturn by
underlined by Yiorgos Lakkotrypis (Minister of Energy, streamlining costs: in particular, the insourcing of
Cyprus), since the Country has a very small domestic engineering skills has allowed to cut contractors
market and for this reason the reserves of Aphrodite contingencies by internalizing design phases that in the
past were included in the EPC contracts.
Aphrodite reserves will be almost Standardization of design and design-to-cost have
entirely earmarked for export” (Yiorgos allowed additional substantial savings.
Lakkatrypis, Minister of Energy, Cyprus) Antonio Careddu (Director Strategies, Innovation & ICT,
Saipem) and Paolo Ruggeri (General Manager for
Turbomachinery Solutions, GE Europe) have both
will be almost entirely earmarked for export. highlighted the great potential of digitalization,
The issue of how the Oil & Gas industry can enhance collaborative environments and standardization in
its ability to withstand external shocks, such as the
volatility of oil prices, has been discussed in the Panel
“The resilient Oil & Gas industry: staying competitive at
low oil prices”.
Judson Jacobs (Senior Director Upstream, IHS Markit)
has discussed the outlook of the industry in the years
to come.
The sentiment, among experts and operators, is that
oil prices will stay at the current level for a few years:
for this reason a number of regions will be challenged,
due to the cost of production higher than current
market prices.
According to IHS Markit estimate, by 2030 30 million
barrels of oil per day will have to be added to the
current production: only the Middle East and Russia
have now competitive cost of production compared to

Exploration of the East Mediterranean Roberto Cimino, Chairman of the Programme Committee OMC2017
has not finished: a lot has still to be (left), Innocenzo Titone, Chairman OMC2017 (center), awarding the best
found” (Luca Bertelli, Chief Officer stand design award to Marco Mosconi, CEO Pneumax (right)
Exploration, Eni)

today oil prices (50-60 $US/bbl).
Technology will have to play a key role to allow
competition in a low price environment and E&P
players are already adjusting technology priorities,
focusing on facilities and especially on digitalization
and automation: technology can drive capital efficiency
gains upwards 10-20%.
Luigi Chiolini (Partner, Boston Consulting Group) has
focused the role of technology in decreasing costs in
upstream projects by changing relationships between
companies and contractors.
The digitalization of the industry might allow the set up
of collaborative design environments, avoiding reworks
and compressing project schedules and overall costs.
Technology progress has, in this case, to go hand in
hand with change in contractual frameworks: current Elizabeth Torstad, CEO of DNV GL Oil&Gas delivering a lecture
lump sum turn key contracts should be replaced by leading to a panel discussion

IndustrIal Plants - May 2017
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