[English]

[English]
Kingdom of Saudi Arabia
Environment
Water
Information Technology
ECP
Nanotechnology
Math and Physics
Petrochemicals
Advanced Materials
Biotechnology
Energy
Space and Aeronautics
Oil and Gas
Strategic Priorities for Oil and Gas Technology Program
King Abdulaziz City for Science and Technology
Kingdom of Saudi Arabia
Ministry of Economy and Planning
http://www.mep.gov.sa
Kingdom of Saudi Arabia
King Abdulaziz City for Science and Technology
Ministry of Economy and Planning
Strategic Priorities for Oil and Gas Technology Program
Contents
Executive Summary
4
Introduction
6
Stakeholders
6
Strategy Development
9
Strategy Timeframe
10
Analysis of Oil and Gas Publications and Patents
11
Strategic Components
20
Vision
20
Mission
20
Values
20
Strategic Objectives
21
Challenges
21
Technology Areas
22
Technology Target Areas
22
Technology Initiatives and Priorities
25
Key Technologies
26
Strategic Initiatives
32
Infrastructure
32
Finance
32
Human Resources
33
Coordination and Cooperation
34
Strategic Priorities for Oil and Gas Technology Program
Contents
Laws and Regulations
34
Localization
34
Strategy Oversight and Management
36
Exploration and Production Technologies 2025
36
Mandate
36
Organization and Implementation of the Strategy
37
Strategy Review
38
Funding
38
Project Evaluation
40
Final Remarks
42
Appendix A: SWOT Analysis
44
Appendix B: Proposed Organizational Structure
48
Appendix C: Strategic Initiatives Process
49
Primary Initiatives
52
Appendix D: Stakeholders and Participants
54
Stakeholders
54
Workshop Participants
55
Participants in SWOT Analysis Forum
55
Strategic Priorities for Oil and Gas Technology Program
Executive summary
This document outlines a strategy
has a set of performance measures
that will guide oil and gas research
that will help gauge the success of
and development in the Kingdom
the Kingdom in implementing this
of Saudi Arabia for the next twenty
strategy.
years. Its development required the
cooperation of many stakeholders
in the exploration and production
industry. These stakeholders helped
to establish a vision, a mission,
values, and strategic objectives
that will focus oil and gas research
and development in the Kingdom.
Each of the strategic objectives
Technology target areas were defined using a strengths, weaknesses,
opportunities, and threats (SWOT) analysis. This analysis took inputs from
many professionals representing nearly all of the oil and gas companies and
universities in the Kingdom of Saudi Arabia. These individuals helped define
the technology target areas by outlining the challenges that the Kingdom faces
and expects to face in the future.
Figure 1 shows the vision, mission, challenges, and resulting technology target
areas. For each technology target area, groups of professionals were selected
to carry out more detailed planning.
Strategic Priorities for Oil and Gas Technology Program
Executive summary
Figure 1: Vision, Mission, Challenges, and Technology Target Areas
Achieving the technical competence to
find and produce every drop of oil and
natural gas resources in the Kingdom
territories
VISION
MISSION
Higher sulfur content
Slow information gathering including
survey and seismic acquisition in land
Acquisition seismic Sand near surface
and multiples
Reservoir characterization and
monitoring
Data sharing and availability
Drilling cost and efficiency
Environmental technology and Zero
emission in Red Sea production
Identification, mapping and
understanding of source rocks and
petroleum system in the region including
the red sea
Basement dept and mapping
CHALLENGES
TECHNOLOGY
TARGETS
Creating an effective research and
development environment for Oil and
Natural Gas E & P technologies through:
Building an R & D infrastructure with
qualified professionals.
Drafting technology policies
and procedures and activating the
cooperation and collaboration
Localization and development of oil
and Natural Gas E & P technologies.
An advanced and integrated database
with high end visualization and
communication tools for Oil and Gas
information
Completion of the petroleum geological
information
Enhanced oil recovery and oil reserves
Improved reservoir monitoring and
management
Improved Oil and Gas exploration
and success rates Enhanced Natural Gas
Production
Enhanced Gas Production
Improved drilling quality and effeciency
Protecting the environment
In order to ensure the successful implementation of
value within the Kingdom and the vision is to excel in
this strategy, a system was designed to monitor its
technologies that will help discover and produce every
implementation and to allow for periodic updates.
drop of oil and gas within the Kingdom of Saudi Arabia
All components of this strategy are aimed at creating
in an environmentally friendly manner.
Strategic Priorities for Oil and Gas Technology Program
Introduction
The development of this strategic
second, emphasizing its importance
plan began following the approval
to the future of the Saudi economy.
of a national plan for science and
technology in the Kingdom of Saudi
Arabia (KSA). The King Abdulaziz
City of Science and Technology
(KACST) was directed to manage
this national plan and it covered
many different technology areas.
Specifically, the plan focused on 11
strategic and advanced technologies
ranked
in
the
order
of
their
importance. Oil and gas was ranked
Stakeholders
for upstream oil and gas sectors. The planning process
Many stakeholders were involved in the development
provided all stakeholders with an opportunity to
of this strategic plan. Key stakeholders include Saudi
share their ideas. Figure 2 is a schematic showing the
Aramco, the Ministry of Petroleum and Mineral
relationships among the stakeholders.
Resources (MoPM), gas ventures, and service companies
Figure 2: Relationships among Oil and Gas Stakeholders
The Steering Chain
PLAN & ORGANIZATION
International
Universities
&
Research
Agencies
Strategic Priorities for Oil and Gas Technology Program
ARAMCO’S
R&D
STRATEGY
FUNDING
STRATEGY
Local
Universities
R&D
FUNDS
Local Research
KACST
Saudi Aramco
BENEFITS
BENEFITS & LOCAL
TECHNICAL SERVICES
MOPM
COORDINATION
Gas
Ventures
+
Companies
KACST
Service
Companies
MOPM
Stakeholder
&
Driver
Introduction
To encourage stakeholder participation, a website for the
directing the development of the oil and gas strategic
plan was constructed.
plan. The team met six times for a full day meetings
The website address is: http://www.ept2025.com
and discussed a wide range of issues. The team also
communicated with each other by e-mail and the chat
The oil and gas program formed a strategy team with
room available at the plan web page. The strategy team
representatives from Saudi Aramco, KACST, MoPM,
is listed in table 1.
and several universities. The team was responsible for
Table 1: Strategy Team
Name
Institution
Position
Tariq AlKhalifah
KACST
Director
Abdulrahman AlQuraishi
KACST
Assistant Director
Abdulaziz AlKaabi
Saudi Aramco
Member
Saleh Almulhim
Saudi Aramco
Member
Iessa Mahfis
MOPM, Eastern Branch
Member
Majed Badah
MOPM, Eastern Branch
Member
Abdulaziz AlMajed
King Fahad University for Petroleum and Minerals
Member
Abdulaziz ibn Laboun
King Saud University
Member
Emad AlHomadhi
King Saud University
Member
Hassan Naji
King Abdulaziz University
Member
Mahmoud AlOsaimi
MOPM, headquarter
Member
Abdullah AlSabti
KACST
Project Manager
Emad AlMushaqigh
KACST
Team Secretary
Strategic Priorities for Oil and Gas Technology Program
Introduction
Strategy Development
mature countries such as Norway and Canada. Some
The strategy development process began with a review
of the references analyzed in this review are shown in
of the oil and gas R&D experiences of technologically
Figure 3.
Figure 3: Oil and Gas Strategy References
Following a review of other countries initiatives, the
SWOT analysis. The head of the Norwegian Oil and Gas
status of oil and gas R&D in the Kingdom of Saudi
technology strategy (OG21) attended this workshop to
Arabia was analyzed. SRI international was contracted
provide additional insights based on their experience.
to benchmark worldwide institutions in upstream oil and
gas and to provide an analysis of the relative standing of
This workshop included more than 40 people representing
the KSA in oil and gas R&D as measured by publications
nearly all companies, research institutes, and universities
and patents status.
working in upstream oil and gas R&D in Saudi Arabia.
Later, an additional questionnaire was distributed to
The oil and gas program next carried out a strengths,
specify the latest technologies and projects needed for
weakness, opportunities, and threats (SWOT) analysis.
the kingdom.
The program distributed a questionnaire requesting
information on strengths, weakness, opportunities,
This was followed by another workshop that defined the
and threats to a large number of professionals in the
technology target areas of importance and discussed the
Kingdom. A workshop was then held dedicated to the
attendees willingness to participate in technology target
Strategic Priorities for Oil and Gas Technology Program
Introduction
groups responsible for preparing the detailed technology
this plan develops a vision for the next 100 years. It
target areas plans.
is important to look out this far because, as shown in
Figure 4, value from oil and gas production will diminish
This process led to the development of this document,
without the added value from enhanced recovery, new
which outlines the strategy for upstream oil and natural
discoveries of oil and natural gas, and the supporting
gas technology development and localization. This
industry. New technologies supporting these potential
strategic plan describes the initiatives needed to achieve
added values include focusing efforts on the refining and
the strategic goals and discusses the implementation
petrochemical industries as we expect that Saudi Arabia
process of the plan.
will dominate the oil business for a significant period
of time to come. However, refining and petrochemicals
Strategy Timeframe
R&D is covered by another strategy that was developed
Although this strategy concentrates on the next 20 years,
by the petrochemical institute at KACST.
Figure 4: Future Challenges as Value from the Oil and Gas Sector Increases
Petroleum industry
Added value from gas
Discoveries
Enhanced
Recovery
Producing Fields
2008
2025
Strategic Priorities for Oil and Gas Technology Program
Introduction
Analysis of Oil and Gas Publications and Patents
Oil and gas exploration and production is a multidisciplinary field that relies
on devices, instruments, and materials developed in fields such as information
technology, electronics, mechanics, and advanced materials. The overall field,
“oil and gas,” as well as sub-topics, were defined in close consultation with
KACST researchers and other KSA stakeholders.
The KSA oil and gas program identifies three sub-topics-petroleum geology,
petroleum engineering, and geophysics-relevant to KSA strategic priorities.
KACST researchers provided detailed lists of keyword terms that were used
to develop search queries for publication and patent databases.1 The scope
of this study was restricted to only recent publication (2002-2006) and patent
(2002-2006) activity in these fields.
There is general agreement that publications and patents strongly correlate with
scientific research capacity, although publication and patent counts alone do
not fully represent the quality or scope of research. Nonetheless, publication
and patent activity have long been used as indicators for knowledge creation
and research output.2 Several indicators are presented below, including
forward citations (the frequency at which publications and patents are cited
by others), which is as a measure of impact, and co-authoring relationships,
which are an indicator of scientific collaboration. Together, these indicators
provide measures of collaboration, globalization, and the impact of science
and technology research in fields related to the KSA oil and gas program.
1 ISI Web of Science and Delphion were queried for scientific publication and U.S. patent application data,
respectively. The ISI Web of Science is a database of peer-reviewed articles in major scientific journals from around
the world. Delphion is a searchable database of global patent activity, including the U.S. Patent and Trademark
Office (USPTO). The USPTO is one of the world’s major granters of patents and it has been argued that the U.S.
market is so large that most important inventions from around the world are patented there.
2 Seminal research in the use of publications as a measure of scientific productivity includes A.J. Lotka, “The
frequency distribution of scientific productivity,” Journal of the Washington Academy of Sciences, vol 16 (1926);
D. Price, Little Science, Big Science, (New York: Columbia university Press, 1963); J.R. Cole and S Cole, Social
Stratification in Science, (Chicago: The University of Chicago Press, 1973); J. Gaston, The reward system in British
and American science, (New York: John Wiley (1978); and M.F. Fox, “Publication productivity among scientists: a
critical review,” Social Studies of Science, vol 13, 1983.
10
Strategic Priorities for Oil and Gas Technology Program
Introduction
Global Oil and Gas Publication Activity
articles, generating 1137 articles over this time period.
Between 2002 and 2006, there were 3523 articles
The United Kingdom was second, producing 428 articles
published worldwide in oil and gas fields related to KSA
followed by Canada and Italy with 307 and 258 articles
oil and gas research priorities. As shown in Figure 6, the
respectively. Saudi Arabia was the 21st largest producer
United States was the world’s largest producer of related
of publications, producing 33 articles.4
3
Figure 5: Oil and Gas Publication (2002-2006)
Poland
Spain
Norway
Japan
Russia
India
Australia
Germany
Brazil
United States
France
Italy
Canada
United Kingdom
China
Saudi Arabia
3 Throughout this section, “oil and gas” refers only to the subset of oil and gas-related research defined by the KSA oil and gas program.
4 A publication is assigned to a country if any of the publication’s author’s affiliations are located in that country. Because publications often have multiple authors, a single
publication may be assigned to multiple countries. Aggregate figures, such as total global publication output, count each publication only once, but adding up sub-totals may
yield a result larger than the reported total due to multiple counting.
Strategic Priorities for Oil and Gas Technology Program
11
Introduction
As shown in table 2, Petroleum Geology accounts for more than half of oil and gas publications from 2002 to 2006,
with Petroleum Engineering (889) and Geophysics (803) splitting the remainder.
Table 2: Oil and Gas Sub-Topics (2002-2006)
Sub - Topic
Publications
Petroleum Geology
1867
Petroleum Engineering
889
Geophysics
803
Benchmark Country Publication Impact
and citation counts for benchmark countries.5 Between
Average publication impact is calculated as the number
2002 and 2006, Australia had the highest average
of citations of articles from a particular country divided
publication impact of all countries at 5.10 followed
by the total number of articles published by authors from
by Germany (4.71), and the United States (4.44). The
that country. For instance, a country that published 50
average publication impact for Saudi Arabia was 0.61
articles that were cited 100 times would have an average
with 20 citations of 33 articles.
publication impact of two. Table 3 presents publication
5 Benchmark countries include global leaders in terms of total petrochemical technologies publication output in addition to a list of specific countries provided by KACST.ISI
Web of Science and Delphion were queried for scientific.
12
Strategic Priorities for Oil and Gas Technology Program
Introduction
Table 3: Oil and Gas Publication Impact (2002-2006)
Country
Publications
Total Citations
Average Impact
Australia
150
765
5.10
Germany
253
1191
4.71
USA
1137
5049
4.44
Netherlands
90
365
4.06
New Zealand
100
392
3.92
Spain
97
380
3.92
Japan
131
512
3.91
UK
428
1607
3.75
Norway
123
432
3.51
Canada
307
1043
3.40
France
235
757
3.22
Italy
258
730
2.83
Peoples R China
239
627
2.62
Russia
182
260
1.43
Saudi Arabia
33
20
0.61
Oil and Gas Research Organizations
are Stanford University, Institut Français du Pétrole (IFP)
Oil and gas R&D publications are produced at more than
and University of Calgary. In geophysics, the top three
a thousand research institutions in nearly 100 countries.
organizations are the U.S. Geological Survey (USGS), the
As shown in table 4, the three institutions producing
University of Texas, and the Russian Academy of Science.
the largest number of publications related to oil and
Finally, in geology, the top three organizations are the
gas R&D are the Russian Academy of Sciences (131),
Russian Academy of Science, the Chinese Academy of
Stanford University (94), and the University of Texas (79).
Science and the USGS.
In petroleum engineering, the top three organizations
Strategic Priorities for Oil and Gas Technology Program
13
Introduction
Table 4: Global Oil & Gas R&D Organizations (2002-2006)
Publications
Total Citations
Average
Impact
Geology
Petroleum
Engineering
Geophysics
Russian Acad Sci
131
186
1.42
103
5
23
Stanford Univ
94
340
3.62
31
54
10
Univ Texas
79
273
3.46
28
28
25
US Geol Survey
79
571
7.23
43
4
32
Chinese Acad Sci
74
245
3.31
55
0
19
CNR
53
109
2.06
42
0
11
Univ Alberta
50
109
2.18
20
30
1
Inst Francais Petr
45
59
1.31
9
36
1
Univ Calgary
44
88
2.00
4
33
7
Univ London Imperial
Coll Sci Technol & Med
43
129
3.00
11
25
7
Texas A&M Univ
38
82
2.16
14
29
2
Inst Geol & Nucl Sci
37
158
4.27
31
0
6
Univ Tokyo
33
189
5.73
10
2
21
China Univ Geosci
33
119
3.61
28
1
4
Heriot Watt Univ
32
52
1.63
0
0
Organization
14
Strategic Priorities for Oil and Gas Technology Program
Introduction
International Collaboration and Publication Impact
show significant international collaborative activity, also
For countries with a similar level of publication activity,
tend to produce papers with a higher average impact.
those with a high level of international collaboration also
tend to produce publications with a high level of impact.
KSA Collaboration Activity
In this study, international collaboration is calculated
As shown in table 5, authors affiliated with KSA institutions
as the average number of countries represented per
collaborated on more than one article with authors from:
publication, based on authors’ addresses. Figure 6 plots a
the United States (5 publications) and France (2). KSA-
country’s level of international collaboration (horizontal
affiliated authors collaborated on individual publications
axis) against the average impact of its publications (vertical
with authors from: Australia, Canada, Malaysia, Norway,
axis). Australia, Germany and the Netherlands, which
UAE, and the United Kingdom.
Figure 6: Oil and Gas Collaboration and Publication Impact (2002-2006)
Average Publication Impact
Australia
Germany
United States
United States
New UK
Zealand
Japan
Nether
lands
United Kingdom
Spain
Canada
Italy
Canada
Norway
France
Italy
China
Germany
China
France
Russia
Australia
Japan
Norway
Russia
New Zealand
Spain
Saudi Arabia
Netherlands
Saudi Arabia
Average Level of International Collaboration
Strategic Priorities for Oil and Gas Technology Program
15
Introduction
Table 5: KSA Publication Collaborators (2002-2006)
Country
Name of Publications
United States
5
France
2
Australia
1
Canada
1
Malaysia
1
Norway
1
United Arab Emirates
1
United Kingdom
1
Oil and Gas Journals
Table 6 presents journals with a significant level of publication activity related to KSA oil and gas sub-fields from 20022006.
Table 6: Oil and Gas Journals (2002-2006)
Geophysics
Journal
16
Publications
Geophysics
108
Earth And Planetary Science Letters
73
Geochimica Et Cosmochimica Acta
60
Journal Of Geophysical Research-Solid Earth
51
Organic Geochemistry
34
Chemical Geology
34
Geophysical Prospecting
31
Geophysical Journal International
30
Tectonophysics
29
Chinese Journal Of Geophysics-Chinese Edition
27
Strategic Priorities for Oil and Gas Technology Program
Introduction
Petroleum Engineering
Geology
Journal
Publications
Sedimentary Geology
246
Geology
170
Journal Of Sedimentary Research
143
Geomorphology
132
Acta Petrologica Sinica
107
Sedimentology
105
New Zealand Journal Of Geology And Geophysics
70
Stratigraphy And Geological Correlation
69
Cretaceous Research
66
Rivista Italiana Di Paleontologia E Stratigrafia
57
Journal Of Petroleum Science And Engineering
188
Journal Of Canadian Petroleum Technology
136
Spe Reservoir Evaluation & Engineering
115
Spe Journal
86
AAPG Bulletin
65
Petroleum Science And Technology
57
Spe Drilling & Completion
42
Oil & Gas Science And Technology-Revue De L’Institut Français Du Petrole
42
Petroleum Geoscience
40
Spe Production & Operations
21
Regional Publication Trends
analysis, all articles in ISI-indexed journals related to oil
The previous subsections examined publication data
and gas R&D were included. This analysis compared the
using a keyword-based approach. SRI International
number of oil and gas publications that are focused on
also performed an analysis of regional oil and gas
three regions: the Arabian Gulf, the Gulf of Mexico, and
publications using a journal based approach. For this
the North Sea. The results are shown in Figure 7.
Strategic Priorities for Oil and Gas Technology Program
17
Introduction
Arabian Gulf
North Sea
Gulf of Mexico
Global
Petroleum Engineering
339
650
652
27.142
Petroleum Geophysics
855
2638
3341
93.981
Total
1194
3288
3993
121.123
Figure 7: Oil and Gas Publication Trends 1200
1000
800
North Sea
600
400
Gulf of Mexico
200
06
20
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
05
Arabian Gulf
0
Despite the fact that the Arabian Peninsula contains the
Gulf countries, and specifically Saudi Arabia, to develop
majority of the world’s oil reserves, oil and gas research,
new technologies.
as measured by the number of publications, focuses less
on the Arabian Gulf than on the North Sea and the Gulf
Oil and Gas Patent Activity
of Mexico. This is particularly noticeable in the fields of
Between 2002 and 2006, there were 461 oil and gas
petroleum geology and geophysics in which the Arabian
related patent applications filed with the United States
Gulf produces less than one percent of global R&D
Patent Office. As shown in table 7, the majority of these
publications.
(327) listed at least one inventor from the United States.
Other countries with a significant number of inventors
The challenges in the Arabian Gulf region are as
include: Japan (60 patents), the Netherlands (34 patents),
significant, if not more significant, than those faced by
and the United Kingdom (27 patents). Two oil and gas
the Gulf of Mexico and North Sea. The relatively poor
related patent applications listed an inventor from Saudi
quality of seismic data and the highly fractured and
Arabia. These patent applications are not cited by any
complex reservoirs in the region pose major challenges.
other patent applications.
These challenges present opportunities for the Arabian
18
Strategic Priorities for Oil and Gas Technology Program
Introduction
Table 7: Oil and Gas Patents (2002-2006)
Rank
Country
Petroleum
Engineering
Geophysics
Petroleum
Geology
Total
1
United States
56
240
31
327
2
Japan
8
51
1
60
3
Netherlands
2
31
1
34
4
United Kingdom
2
25
0
27
5
Germany
1
21
1
23
6
France
0
19
2
21
7
Canada
1
14
4
19
8
Italy
1
6
0
7
9
Norway
0
4
0
4
10
Australia
0
3
0
3
10
Russia
0
3
0
3
10
Ukraine
0
3
0
3
13
Brazil
0
2
0
2
13
China
0
2
0
2
13
Israel
0
2
0
2
13
Republic of Korea
0
2
0
2
13
Saudi Arabia
0
1
1
2
Strategic Priorities for Oil and Gas Technology Program
19
Strategic Components
This strategy includes a vision, a
mission, values, strategic objectives,
and
challenges. Together
these
components will guide the future of
the local oil and gas R&D program.
Vision
Achieving the technical competence and superiority to find and produce all
the oil and natural gas resources in the Kingdom’s territories.
Mission
Creating an effective research and development environment for oil and
natural gas exploration and production technologies through:
An R&D infrastructure with qualified professionals.
Policies and procedures facilitating the collaboration between research
institutes (universities and industry).
Localization and development of oil and natural gas exploration and
production technologies to solve problems, improve quality, and reduce
cost.
Values
Openness: open and shared information environment.
Cooperation: exchange information and ideas through cooperative work.
Humbleness:
recognizing
that
what
you
have
always
requires
improvement.
Truth: delivering accurate and precise information.
Dedication: to follow tasks to the end.
Competition: the kind that promotes the work spirit and enthusiasm.
20
Strategic Priorities for Oil and Gas Technology Program
Strategic Components
Strategic Objectives
Challenges
The following objectives were designed so that the KSA
The following is a list of some challenges identified by
will be able to achieve the strategic vision and mission
stakeholders:
by 2025. Each objective is followed by a corresponding
performance measure.
Education of young people on the importance of oil
and gas technologies.
1. Improved data availability, openness, visualization,
Higher sulfur content in petroleum.
and access for research
High water-to-oil ratio.
The availability of all acquired geological, geophysical
and petroleum informations digitally with instant access.
2. Improved human resources quality, quantity, and
education
Slow information gathering, including survey and
seismic acquisition in land.
Seismic acquisition in areas covered with sand and
characterized by near surface complexities and multiples.
Increase in local Ph.D. holders in E&P disciplines by
Reservoir characterization and monitoring.
1000 percent (or 1000).
Data sharing and availability.
3. Improve oil recovery and proven reserves
Subsalt exploration and production.
Increase oil in place to 900 billion barrels and obtain a
Drilling in deep water and old and complicated formations.
recovery rate of 70 percent by 2025 (Aramco objective).
Environmental and zero emission technologies.
4. Reduced exploration and production cost
Identification, mapping, and understanding of source rocks
Reduce the cost of onshore barrel by 20 percent and
and petroleum system in the region, including the Red Sea.
offshore barrel by 50 percent.
Basement depth and mapping.
5. Improve and increase efficiency of oil and natural gas
Unayzah formation heterogeneity.
exploration and drilling operations
Improved oil recovery.
Cut the time needed for land acquisition and drilling
operations by a 50 percent.
Exploration in new frontier areas such as the Red Sea
and Rubaii alkhali.
Mapping the top of large reservoirs.
6. Reduced well pollution and emission
No harmful pollutants emission from Red Sea wells
Detection and mapping of fractures in carbonate reservoirs.
and reduce emission from onshore and gulf wells to a
Deep inter-well resistivity measurements.
minimum.
In-situe wettability characterization.
7. Complete the geological information needed for oil
The problem of condensate banking in gas wells.
and gas upstream R&D
Oily water disposal.
Complete all missing petroleum geology information.
Upstream waste management.
8. Development and localization of technology services
Water down hole and online separation.
for oil and gas
Pore network modeling.
The availability of at least 50 percent of the technology
Well monitoring systems.
services (i.e. software) locally.
Well testing analysis in highly permeable layers.
The performance measures were developed so that
Sand production from unconsolidated formations.
projects can be easily evaluated in regards to how they
Dealing with reservoirs characterized with high
contribute to the strategic objectives.
salinity and temperature.
Strategic Priorities for Oil and Gas Technology Program
21
Technology Areas
Technology Target Areas
The oil and gas program, together
with stakeholders, identified eight
technology target areas (TTAs) that
will be the focus of Saudi Arabian
oil and gas R&D in the future. These
technology targets were developed
by
identifying
technology
gaps
in high-priority areas. The eight
technology target areas and more
focused secondary technology areas
are listed below.
An advanced and integrated database with high end visualization and
communication tools for oil and gas information:
- Development of data storage, compression, and monitoring capabilities
(i.e. database).
- Capabilities in data format upgrade and adaptation to our needs (i.e. new
data formats).
- Development of analysis, visualization, and integration tools (i.e. user
interface).
- Improved data accessibility through better communication and structure
(i.e. internet access).
- Advancements in data openness and sharing systems (i.e. access
regulations).
Completion of the petroleum geological information:
- Mapping, modeling, and describing the sedimentary basement (i.e.,
improved gravity interpretation)
- Better understanding and characterization of the petroleum systems
including the source rock (i.e., seismic data interpretation).
- Improved description of important and complicated formations including
onaiyza formation (i.e., improved well information).
- Improved fault and fracture description and direction in carbonate
formations (i.e., azimuthal anisotropy).
22
Strategic Priorities for Oil and Gas Technology Program
Technology Areas
- Completion of the geological maps and their integration and coherency
(i.e., remote sensing interpretation).
Enhanced oil recovery (EOR):
- Improved injection and production systems in carbonate reservoir.
- Determine the proper enhance recovery methods for existing reservoirs.
- Reduce water-oil ratio.
Reservoir modeling, monitoring and management:
- Improved reservoir modeling and simulation (i.e. parallel simulation),
modeling and simulation tools.
- Enhanced reservoir monitoring and attributes extraction (i.e. 4-D seismics,
deep diagnostics and sensing).
- Enhancements in real-time and remote monitoring of changes in giant
reservoirs (i.e. passive seismic, nanotechnology, wireless technology).
- Improved information and attribute integration for reservoir simulation
(i.e. well-seismic integration), modeling and simulation input data.
- Fracture and fault detection and mapping in carbonate reservoir (i.e.
azimuth anisotropy).
Improved oil and gas exploration success rates especially in the Rubaii
Alkhali and the Red Sea:
- Improved efficiency and quality of land acquisition (i.e., land streamers).
- Solving near surface seismic problems (i.e., datuming and inversion).
- Solving seismic multiple related problems (i.e., full waveform inversion).
- Improved seismic imaging (i.e., prestack depth migration).
- Development of unconventional methods for exploration and data
integration (i.e., remote sensing).
Oil and natural gas production:
- Solving the problem of gas condensate in producing wells.
- Oil and gas reservoir stimulation.
- Production free of pollutants.
Improved drilling operations (quality and efficiency):
- Reduce drilling cost and drilling completion through developing efficient
drilling systems (i.e., new cutting methods and drilling fluids).
- Complete drilling and consequences monitoring systems (i.e., drilling
sensors and advanced drilling components).
Strategic Priorities for Oil and Gas Technology Program
23
Technology Areas
- Improved drilling in deep water and through formations in old and hard
layers (i.e., ultra extended reach drilling).
- Improved drilling in high temperature, high pressure and high productivity
formations.
Protecting the environment:
- Improved monitoring systems and methods for emission from wells (i.e.,
water real-time sensors).
- Enhanced production standards to avoid emission.
- Improved carbon dioxide capture, and sequestration.
- Production and injection related hazard assessment (i.e., passive seismic,
InSAR).
The technology target areas were defined to provide guidance to those
implementing the oil and gas strategic plan. Each technology target area
includes an objective, a background and a description. The phases of
implementation for a technology target area are:
Theoretical development.
Laboratory testing and modifications.
Development/further development of equipment.
Testing of prototypes.
Qualification.
Pilot/demonstration.
The time required to develop a technology target is estimated to be six to
ten years. Therefore, secondary goals (technologies) have been identified
under each technology target area. Where technology development is
fairly advanced, the demonstration phase may be the only one remaining.
Secondary goals can be developed considerably earlier, possibly within two
years for some technologies.
The technology target areas have not been ranked by priority, but it is
assumed that a plan of execution will contain criteria for ranking based on
the contribution of each technology target to the strategic objectives.
Additionally, eight technology target teams will be formed comprised of three
to five professionals from both industry and academia to draft a detailed
24
Strategic Priorities for Oil and Gas Technology Program
Technology Areas
plan for each target area and to lead the technology
Figure 8: Basic/Applied Research Technology Transfer
development during the plan execution phase in these
t
en
em
gre
Funds
en
t
em
g re
on
A
bo
rat
i
nA
Project
Co
lla
prioritization and technology transfer.
io
rat
strategic objectives fall into two categories: technology
bo
lla
The technology initiatives required to meet this plan’s
Co
Technology Initiatives and Priorities
Management
KACST
EPT2025
areas.
Technology Prioritization
Following a model used by Saudi Aramco, technologies
will be prioritized according to their compliance with
Local
Universities
and Research
Centers
the strategic objectives (impact), to their probability of
Exchange
Professor
and Students
International
Universities
and Research
Centers
success, and to their required resources. While Saudi
Aramco>s objectives are focused on oil in place and
recovery, the objectives in this plan include elements
related to enhancing local content. Therefore, the oil and
gas program weighs the criteria with impact weighted
The second model is concerned with transferring
more heavily than the probability of success and required
developed technologies or products that require minimal
resources as follows:
to moderate development for application locally. As a
Impact (50 percent).
result, it includes an additional component corresponding
Probability of success (25 percent).
to the end user. (Figure 9)
Required resources (25 percent).
Figure 9: Developed Technologies/Products Technology
Technology Transfer Models
Transfer
We use two models for technology transfer, both of which
entity. The first model applies to the case of transferring
Ventures
and Oil
Companies
that allow Saudi graduate students and scientists to join
Agreement
research center. In this model, KACST funds projects
Service
The receiving party in this case is a local university or
s
nd
Fu tion
rec
Di
basic or applied research that is of strategic importance.
Collaboration
Agreement
Project
KACST
EPT2025
IP Agreement
between the technology owner or developer and a local
F
Ma und
s
na
ge
me
nt
include the exchange of professionals and students
international institutions. (Figure 8)
Local Labs and
Technology
Companies
Exchange
Professonals
and
Instruments
Strategic Priorities for Oil and Gas Technology Program
International
Technology
Owner or
Developer
25
Technology Areas
Like the first model, the project is managed and funded
which provides the local entity with the right to locally
by KACST. However, there is also a collaboration
use and develop the technology.
agreement between KACST and the end user (e.g.
Aramco, SRAK, TAQA). The end user may also contribute
Key Technologies
funds and provide direction for the project. In return,
Table 8 lists some specific technologies within each
the end user gets a preferential service agreement that
technology target area. The technologies and target
guarantees access to the developed product or service.
areas in this table are not ranked but will be prioritized
An IP agreement is arranged between KACST and the
according to the methodology discussed previously.
international owner or developer of the technology,
Table 8: Technology Target Areas and Underlying Technologies
Technology Target Area (TTA)
26
Technologies
TTA1 -
An advanced and integrated database with high end visualization and communication tools for oil and
gas information
TTA1-1
Development of data storage, compression, and
monitoring capabilities
Wavelet transform and wave packet technology
Integrated Databases
TTA1-2
Capabilities in data format upgrade and adaptation
to our needs
CFP format and HDF format
New data formats
Coherency cubes
e-drilling
Rate of penetration (ROP) modeling and
optimization
Data integration
3-D visualization and rendering
User interface
TTA1-3
Development of analysis, visualization, and
integration tools
TTA1-4
Improved data accessibility through better
communication and structure
Data bank technologies
Internet access
TTA1-5
Advancements in data openness and sharing
systems
Internet friendly access regulations
Access regulations
TTA2 -
Completion of the petroleum geological information
TTA2-1
Mapping, modeling, and describing the
Sedimentary basement
Improved Gravity interpretation
Deep seismics
Regional earthquake seismology
Basin modeling
TTA2-2
Better understanding and characterization of the
petroleum systems including the source rock
Seismic data interpretation
Seismic while drilling
Managed pressure drilling
Strategic Priorities for Oil and Gas Technology Program
Technology Areas
Technology Target Area (TTA)
Technologies
TTA2-3
Improved description of important and
complicated formations including Onaiyza
formation
Logging at bit
Seismic while drilling
Improved well information
Data integration for high resolution modeling
TTA2-4
Improved Fault and fracture description and
direction in Carbonate formations
Azimuthal anisotropy
Seismic while drilling
TTA2-5
Completion of the geological maps and their
integration and coherency
Remote sensing interpretation
TTA3 -
Enhanced oil recovery (EOR)
TTA3-1
Improved injection and production systems in
carbonate reservoir
TTA3-2
Determine the proper enhance recovery methods
for existing reservoirs
Smart fluids
Water/CO2 injectivity pilot
CO2 flooding
Wettability characterization and alteration
Smart proppant
Non-damaging stimulation fluids
Acoustic energy for heavy oil production
Cost efficient chemicals
Field screening for proper enhance recovery
methods
Gas based EOR
Water based EOR
Thermal
Microbial
TTA3-4
Reduce water-oil ratio
In well separation methods
Chemical and microbial polymer shutoff
Smart fluids
Down hole water control
Smart wells
TTA4 -
Reservoir modeling, monitoring and management
TTA3-3
TTA4-1
Improved reservoir modeling and simulation
Finite difference and finite element modeling
Advanced computing and Linux clusters
Parallel simulation
Pore scale modeling
Virtual intelligence
Near borehole mechanics simulation
Fluid flow modeling
Basin modeling
Strategic Priorities for Oil and Gas Technology Program
27
Technology Areas
Technology Target Area (TTA)
Enhanced reservoir monitoring and attributes
extraction
4-D seismic
Deep diagnostics and sensing
Tracers
Enhancements in real-time and remote monitoring
of changes in giant reservoirs
Passive seismic
Wireless technology
Intellipipe
Nanoscope concept
Down hole robotics and sensors
Nanotechnology
Down hole fluid analyzer
Multi phase flow metering
TTA4-4
Improved information and attribute integration for
reservoir simulation and modeling
Well-seismic integration
Seismic while drilling
Borehole seismic integration
Integrated modeling
3-D visualization
TTA4-5
Fracture and fault detection and mapping in
Carbonate reservoir
TTA5 -
Improved oil and gas exploration and success rates especially in the Rubaii alkhali and Red Sea
TTA5-1
Improved efficiency and quality of land
acquisition
TTA4-2
TTA4-3
28
Technologies
Azimuth anisotropy
Coupled geo-mechanical and reservoir
simulation of naturally fractured reservoirs
Land streamers
Wave-equation Datuming and near surface
modeling
High resolution seismic
Radar technology
TTA5-2
Solving near surface seismic problems
TTA5-3
Solving seismic multiple related problems
Wave equation inversion
SMRE
TTA5-4
Improved seismic imaging
Wave equation migration and velocity estimation
Prestack depth migration
TTA5-5
Development of unconventional methods for
exploration and data integration
Remote sensing based mapping
TTA6 -
Oil and Natural Gas Production
TTA6-1
Solving the problem of gas condensate in
producing wells
Smart fluids
Strategic Priorities for Oil and Gas Technology Program
Technology Areas
Technology Target Area (TTA)
Technologies
Oil and gas reservoir stimulation
Acidizing
Hydraulic fracturing
Non-damaging stimulation fluids
Smart fluids and proppants
TTA6-3
Production free of pollutants
Oil in water acoustic monitoring
Down hole water control
Down hole gas oil separation process (GOSP)
TTA7 -
Improved drilling operations
TTA6-2
TTA7-1
TTA7-2
Reduce drilling cost and drilling completion
through developing efficient drilling systems
Complete drilling and consequences monitoring
systems
Advanced drilling fluids (smart fluids)
Microholes
GEOSTEERING - Low cost 3D rotary steerable
systems
Logging at bit
Novel drill bits
Slim hole drilling
Down hole sand control
Nano composite materials for drill pipe and bit
construction
Intelligent completion applications
Drilling Micro sensors
Advanced drilling components
Intellipipe wireless transmission
Mud logging sensors
e-drilling
ROP modeling
Inclination and logging at bit
Electrical drill pipe
Leak detection tools
Strategic Priorities for Oil and Gas Technology Program
29
Technology Areas
Technology Target Area (TTA)
TTA7-3
30
Improved drilling in deep water and through
formations in old and hard layers
TTA7-4
Improved drilling in high temperature, high
pressure and high productivity formations
TTA8 -
Protecting the environment
TTA8-1
Improved monitoring systems and methods for
emission from wells
TTA8-2
Enhanced production standards to avoid emission
TTA8-3
Improved carbon dioxide capture and
sequestration
Technologies
Ultra extended reach drilling
Managed pressure drilling
Lightweight drilling fluids and cement,
Lightweight risers
Torque reduction
Through tubing rotary drilling
Slim hole re-entry
Coiled tubing (CT) drilling
Flexible composite drill pipe
Laser drilling and perforation
Slim hole drilling
Managed pressure drilling
Lightweight drilling incompressible fluids and
cement
Lightweight risers
Torque reduction
Through tubing rotary drilling
Slim hole re-entry
CT drilling
Multi-lateral drilling and completion
Precise pore pressure prediction
Well testing while drilling
Smart wells
Real-time sensor systems
Cuttings management
Water treatment and water based fluids
Sonic leak detection systems for oil and gas
pipelines
Photo acoustic oil in water monitoring
Microorganisms for oil spill removal
Microbial desulphurization
Advanced capturing and compression
technologies
Local sources and sinks screening
Monitoring for leak detection
Strategic Priorities for Oil and Gas Technology Program
Technology Areas
TTA8-4
Technology Target Area (TTA)
Technologies
Production and injection related hazard
assessment
Passive seismic
DINSAR
Integrated geo-mechanical and fluid flow
modeling
Strategic Priorities for Oil and Gas Technology Program
31
Strategic Initiatives
This section describes the initiatives
that will be undertaken to achieve
the
strategic
objectives.
These
initiatives fall into seven categories:
infrastructure,
resources,
finance,
human
coordination
and
cooperation, laws and regulations,
strategic
research
trends,
and
localization. These were obtained
based on the output of the conducted
SWOT analysis (see appendix C).
Infrastructure
This initiative will develop the KSA R&D infrastructure to support the strategic
objectives by:
Initiating new outstanding academic programs and developing current
available ones (graduate and under-graduate programs).
Establishing centers of excellence in universities and research institutes.
Starting and supporting incubators that find and commercialize innovative
technologies.
Starting and developing advanced specialized laboratories.
Constructing an organizational structure that will manage and guide R&D
operations on the national level.
Developing a national database for oil and gas exploration and production
technical data to support R&D activities.
Finance
There are two kinds of financial initiatives that will be undertaken. First, there
are those that deal with how existing money is spent. Second, are those that
deal with securing future funds.
Efficiently Using Existing Funds
Initiatives that deal with how existing money is distributed include:
Utilizing current assigned budget in developing infrastructure (buildings,
32
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
laboratories, equipments, academic chairs…etc).
Utilizing current assigned budget in the quantitative and qualitative
development of human resources through recruitment, financial motivations,
fellowships for students and researchers, and supporting training and
qualification programs for the R&D staff.
Supporting and funding activities that assist R&D activities (data bases,
periodical meetings, workshops, societies…etc).
Securing Future Funds
Initiatives that deal with securing future funds include:
Proposing allocating part of foreign investments taxes in oil and gas
industry to national R&D activities in the same field.
Enhancing financial returns from studies and consultation that are provided
to beneficiaries.
Proposing a way to benefit from private grants and donations.
Encouraging national mega companies that could benefit from R&D in oil
and gas to take part in funding these activities.
Securing continuous governmental funding.
Human Resources
There are three types of human resources initiatives that will be undertaken.
The first relates to filling current shortages by attracting foreign researchers.
The second aims to attract local manpower over the medium term. The
final type of initiative aims to improve educational opportunities for future
researchers. Individual initiatives are listed by type below.
1. Compensating current shortages in research staff by attracting outstanding
foreign researchers by:
Providing an attractive research environment and financial motivations.
Exploiting the conservative environment of the kingdom to attract regional
researchers.
Supporting academic programs and accepting foreign students in graduate
studies
Proposing amendments to immigration and foreign recruitment laws to
eliminate any obstacles to attracting foreign researchers.
2. Attracting local manpower to oil and gas R&D activities by:
Arranging educatory programs for talented students.
Strategic Priorities for Oil and Gas Technology Program
33
Strategic Initiatives
Providing financial awards for outstanding students
in related academic fields.
Coordination and cooperation between industry and
research sectors:
Approving a new attractive salary structure for
- Enhancing the established cooperation between the
researchers that ensure keeping outstanding staff from
industry and some research institutes and encouraging
moving to another industry sector.
the same for other institutes.
Adopting new laws and regulations that ensure high
- Encouraging the industrial sector to participate in
quality R&D activities and providing financial incentives
funding R&D activities.
for outstanding researchers.
- Exploiting the similarities in the gulf environment to
Attracting local researchers from other fields (math,
promote cooperation of the industry and research sectors
physics, and engineering) to participate in oil and gas
and to create a future market for R&D products in the
R&D activities.
gulf.
Supporting current academic programs and starting
new programs (in other universities).
- Utilizing the presence and interest of international oil
companies and laboratories in the region to establish an
internal and external R&D alliance through which funds
3. Developing current and future human resources by:
and profits are shared.
Providing enough scholarships for graduate students
Laws and Regulations
in local and international universities.
Establishing
specialized
training
programs
for
researchers and research assistants and technician.
Providing fellowship for highly performing researchers
in outstanding research institutes.
Improving academic and graduate programs.
Initiatives will be undertaken that will propose
amendments to laws and regulations that obstruct R&D
activities related to:
Researcher’s salary structure.
Immigration, foreign recruitment and foreigner salary
structure.
Coordination and Cooperation
Performance evaluation and quality control.
To ensure a successful R&D program, there has to be
Rights and laws governing intellectual property.
an effective system for coordination and cooperation
Industry support of local R&D activities through funds
between the industry and research sectors and between
research entities themselves. The following two types of
initiatives will be undertaken to achieve this.
and information.
Removal of unjustified or unnecessary confidentiality
on technical data.
Coordination and cooperation among research
entities:
- Conducting joint research projects.
- Exchange of experience and expertise.
- Establishing periodic meetings, workshops and
conferences.
- Enhancing the role of current scientific societies and
establishing new ones.
34
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Localization
This initiative will direct and concentrate localization efforts in:
Technologies stated in the research trends.
Services of a technology nature.
Products.
Knowledge and consultation capabilities.
Advanced education and training capabilities.
Strategic Priorities for Oil and Gas Technology Program
35
Strategy Oversight and Management
Exploration and Production
Technologies 2025
Within KACST, a department will be
created called the Saudi Exploration
and
Production
Technologies
2025 (EPT2025) that will manage,
oversee, revise, and organize the
implementation of this strategy.
EPT2025 will have a manager and
a secretariat.
Mandate
EPT2025 will be a KACST department that facilitates innovation, technology
development, technology transfer and research & development to solve
existing problems, and improve the financial, environmental, and quality
performance of the Saudi Arabian upstream oil and gas industry. EPT2025
will facilitate collaboration in all aspects of oil and gas R&D. EPT2025’s role
includes:
Facilitating the localization and transfer of new technology for application
in the Saudi upstream oil and gas industry.
Acting as a matchmaker between those that have problems or opportunities
and those that have potential technology or research solutions.
Bringing stakeholders together to identify areas where technology or
research will make a difference and launching specific projects to address
those challenges.
Promoting industry participation in the resulting initiatives and assisting
with securing funding from a variety of sources.
Providing a forum for the exchange of information and the creation of
partnerships that are of mutual benefit to all involved and improve industry
performance.
Facilitating consensus for input to government on strategy and priorities
regarding innovation, technology development and research in upstream oil
and gas.
36
Strategic Priorities for Oil and Gas Technology Program
Strategic Oversight
Strategy
Initiatives and Management
Organization and Implementation of the
Strategy
established networks (like those in the universities) and
The strategy outlined in this document provides direction
will link these structures, ensure cooperation, and provide
and focus. However, successful implementation of the
overall coordination of technology development in the
technology strategy requires:
oil and gas sector to maximize return on investment.
organizational structures (like that in Aramco). EPT2025
Sufficient support in the industry and the public
Organization
sector.
A plan of action.
EPT2025 will be organized through a secretariat/working
Sufficient human and financial resources to implement
group and a board that has a direct link to KACST. Its
connection to the oil and gas sector will be through the
proposed measures, and to follow up the strategy.
EPT2025 Forum. A schematic form of the organization is
A capable follow up structure.
illustrated in Figure 10.
Thus, to implement this strategy, it is important to establish
a single organization to develop and improve already
Figure 10: Schematic Oil and Gas Organization
KACST
Ministry of Petroleum
and
Mineral Resources
EPT 2025
Board
EPT 2025
Forum
EPT 2025
Secretariat
EPT 2025
Technical Committes
Project 1
Technology Strategy
Project 2
Information / Web
Project 3
Follow up
Strategic Priorities for Oil and Gas Technology Program
Project 4
xxxx
37
Strategy Oversight and Management
EPT2025 will serve as a catalyst for initiating R&D
group/technical committee. The participants in this core
projects in time-critical areas with relevant participants
group will be responsible for:
from the sector.
Surveying
relevant
technological
developments
in the areas in question, from strategic research to
Implementation
demonstration.
EPT2025’s implementation of the technology strategy
will be aided by the strong support it enjoys among
stakeholders. This support will be gathered by allowing
a broad representation of stakeholders on the EPT2025
Board, and by allowing a comprehensive round of
comments on drafts of this strategy document. KACST
and MOPM resources will ensure top-level support from
the oil companies.
Surveying the technology gaps and research needs in
the area in consultation with the oil and gas sector.
Drawing up action plans for technology development
in the area.
Initiating and promoting technology development
projects in the area.
Being a driving force behind the funding of relevant
technology development projects.
Keeping track of technological developments in the
The strategy will be introduced through the various
area, following up the strategy and informing relevant
research programs under the direction of KACST and
participants in the sector.
through its use in the development of technology
strategies by companies and universities. Publicity for
the technology strategy and information about activities
related to EPT2025 will primarily be disseminated
Ensuring the co-ordination of overlapping activities,
and exploiting synergies.
Establishing and operating an electronic meeting
place in the relevant area.
through the website at http://www.ognpksa.org.
EPT2025 will provide strategic input to the program
The stakeholders will work together to define secondary
committees.
goals and plans under each technology target area and
to identify in more detail the technology gaps and needs
Strategy Review
that can help achieve their overall objectives. Proposals
This strategy and corresponding implementation plans
for projects may be submitted by one or more research/
will be reviewed and updated annually. A comprehensive
academic institutes in co-operation with one or more
review will take place every five years. This update will
oil companies to bridge the gap between academia and
require the same amount of effort needed to develop this
industry.
initial strategy. Updates will be suggested and studied
by the EPT2025 Forum and must be approved by the
To achieve an efficient, powerful system for implementing
EPT2025 Board.
and following up the strategy, and for EPT2025 to be more
38
of significant contributor, it has been proposed that the
Funding
major oil companies be responsible for co-ordinating one
Implementing the strategy described in this document
or more of the technology target areas. The oil companies
will require considerable effort over a period of five to
would work with the EPT2025 secretariat, forming a core
ten years. This will only be the beginning of long-term
Strategic Priorities for Oil and Gas Technology Program
Strategic Oversight
Strategy
Initiatives and Management
efforts as it is expected that initiatives undertaken in this strategy will last
beyond 2025. KACST, the oil companies, and the supplier industry must work
together to support these efforts.
The formation of EPT2025 will allow existing oil and gas R&D funding to be
used more effectively. However, more government funding is necessary as a
catalyst to achieve the desired <push>. Without the government funding and
incentives, it is doubtful that the industry will be able to develop technology
fast enough to take advantage of the window of opportunity presented by the
challenges in oil and gas R&D.
The supplier industry has fewer funds available for R&D investment than
the oil companies due to lower profitability. At the same time, considerable
technology development tasks should be transferred to the local supplier
industry. As oil prices are high, local oil companies are executing larger and
larger projects requiring quick supplier response, which increases the cost of
supplier services. This creates an opportunity to develop technology enhanced
local suppliers at a lower cost.
The local supplier industry has limited opportunities to strengthen its R&D
efforts and should focus on enhancing its competitiveness. This is largely
taking place today as markets and technological needs are shifting away
from Saudi Arabian needs. The supplier industry cannot handle long-term
R&D needs specific to the KSA. This strengthens the argument for doing
research and development in supplier activities and to help develop these
technologies for new supplier companies. Funding and guidance for this will
be predominantly provided by the government through KACST. However, we
envision that this strategy will also help direct funding that oil companies and
other entities may wish to provide.
Strategic Priorities for Oil and Gas Technology Program
39
Project Evaluation
Projects that support this strategy
The technology target groups will
will be considered through a yearly
evaluate the received proposals. The
request for proposals (RFP) that
evaluation will be based on how
will be distributed and announced
much each proposal contributes to
on the EPT2025 website every
the strategic objectives outlined in
September. Proposals will be due
this document.
in January of the following year. The
technology target groups for each
technology target area will develop
the request for proposals for their
relevant areas. The RFP should fit
the vision and objectives developed
for each technology target area.
Table 9: Strategic Objectives, Technology Target Areas, and Stakeholder Support
Type
Objective
Technology
Target Areas
The availability of all acquired
DataAvailability and Access geological, geophysical and Petroleum
info digitally with instant access
1
Ministry of Petroleum and
Minerals, KACST, and the Saudi
Geological society
Human Resources
Increase in local Ph.D. holders in E&P
disciplines by 1000 percent (or 1000)
All
EPT2025, KACST, the ministry of
higher education, and universities
Enhanced Oil Recovery
Increase Oil in place to 900 billion
barrels and obtain a recovery rate of
70 percent by 2025
3, 4
EPT2025, Aramco, MoPM, and
the universities
Reduced Cost of Exploring
and Production
Reduce the cost of an onshore barrel
by 20 percent and an offshore barrel
by 50 percent
3, 5
EPT2025, Aramco, service
companies, and universities
Efficient and Improved
Exploration and Drilling
Cut the time needed for land
acquisition and drilling by a 50 percent
5, 7
EPT2025, Aramco, service
companies, and universities
Eliminate emissions from Red Sea
Reduced Well Pollution and
wells and reduce emissions from
Emissions
onshore and gulf wells
8
EPT2025, Aramco, MoMP, and
universities
Geological Information for
Upstream R&D
1
EPT2025, MoMP, and universities
Complete all missing Petroleum
geology information
Technology Services for Oil The availability of at least 50 percent of the
and Gas
technology (i.e. software) services locally
40
Stakeholder Support
Strategic Priorities for Oil and Gas Technology Program
All
EPT2025 and KACST
StrategicEvaluation
Project
Initiatives
As an example, three oil and gas projects were
evaluated:
Human development: a project to develop ten
graduates in the field of petroleum geology.
Advanced Imaging dedicated to advanced processing
and imaging of seismic data for better exploration and
The evaluation of these three projects with regards to
reservoir description. This project would help four
each strategic objective is shown in Figure 11. Each of
potential scientists obtain their PhD in advanced imaging
the three projects was weighted based on how much
from abroad.
they contribute to each objective.
A purely scientific project on Smart Fluids.
Figure 11: Example Evaluation of Three Projects with Regards to Strategic Objectives
Information
Human
Recovery
Cost
Efficient
Position
Geology
Services
0
2
4
6
8
10
12
Human Development
Smart Fluids
Advanced imaging
Strategic Priorities for Oil and Gas Technology Program
41
Final remarks
The development of this plan has
been a joint effort with companies
like Saudi Aramco, SRAK, LUKSAR
providing significant contributions.
This strategic plan will be followed
by
an
implementation
plan
describing how to achieve the stated
objectives. The plan will detail
spending and project priorities as
well as a structure for quality control
and risk management.
42
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
A: SWOT Analysis
Table A-1: Policy Related SWOT Analysis Table 1
Strengths:
Weaknesses:
1. The current availability of funds and support
1. Lack of long term funding commitment and
2. Increased focus on upstream R&D strategic
well structured support for R&D activities
planning
2. Lack of focus and direction
3. Underutilized local university professors in
3. Inefficient and insufficient infrastructure to
R&D
support research activities
4. Insufficient cooperation and coordination
between involved sectors and researchers
5. Shortage of qualified specialists (quality and
quantity)
6. Departure of scientists to better pay jobs (inside
& outside)
7. Weak academic and research programs
8. Shortage of young researchers and technicians
9. Weak incentives for R&D professionals
10. Lack of accountability and quality control in
R&D activities
11. Lack of international R&D alliances
12. Lack of technology incubators to transform
innovations to commercial realities
13. Nonexistent or insufficient number of centers
of excellence
Strategic Priorities for Oil and Gas Technology Program
43
Appendix A: SWOT Analysis
Threats:
1. Committed ongoing funding resources for R&D
activities
2. Government regulations and strict immigration laws
3. Confidentiality policy set by data owners limiting
information and raw data sharing
4. Lack of confidence in national researchers and
national research centers
5. Instability of oil and gas prices and the consequent
affect on R&D funding and interest
6. Low interest by students in joining the related fields
7. Seeking investment return in a short period by oil
companies
8. Inadequate enforcement of intellectual property
regulations
Initiative #
Factors
Initiative #
1
S1 S2 T5
21
2
S1 S2 T6
22
W2 W7 / T3
3
S1 T7
23
W10 / T4
4
S2 T1
24
W1 / T5
5
S2 T2
25
W11 W9 / T8
6
S1 S2 T3
26
W4 W12 W13 / T9
7
S2 T8
27
W2 W
ً 7/T11
8
S3 T4
28
O9 /T3 T4
9. Technology monopoly and secrecy
10. The increasing interest in alternative fuels
11. International environmental policy and regulations
12. The international geopolitics
44
Strategic Priorities for Oil and Gas Technology Program
Factors
W3 W5 W6 W7
W8 W9 W10/ T2
Strategic Initiatives
Appendix
A: SWOT Analysis
Initiative #
Factors
Initiative #
Factors
9
S1 S3 O4 O5 O6
O7 O12
13
W1 W3 W5 W8
W9 W12 W13 /
O1 O2 O3
10
S1 S2 O13
14
W2/O4 O5 O6
O7
11
S3 O11
15
W2/ O8
12
S1 S2 S3 O8 O9
16
W5 W6 W7 W8
/ O13
13
S1 O14
17
W11 / O14
18
W4 / O9
7. New exploration activities for free gas by
19
W14 / O7
international companies
20
W12 W13 / O8
Opportunities:
1. Government Interest and public appetite for
scientific development and achievement
2. HC being the main national income
3. The position of Kingdom as a leading oil
producer
4. Presence of vast amount of upstream E&P data
and cases (onshore, offshore)
5. Huge current and unexplored potential oil and
gas reserves with desire and need to improve
reserves and recovery
6. New exploration activities targeting new
frontier areas
8. Industry eagerness for using and applying the
latest upstream technologies
9. Recent industry desire to cooperate with local
R&D centers
10. Presence of promising current and future
markets for R&D products in the gulf countries
11. General lack of focus and investment on
onshore technologies
12. Underpaid and underappreciated scientists in
third world countries
13. Stable oil and gas governmental policy
14. Easily accessible excellent outcrop geological
information
Strategic Priorities for Oil and Gas Technology Program
45
Appendix A: SWOT Analysis
Table A-2: Technical SWOT Analysis Table 2
Strengths:
Weaknesses:
1. Good modeling tools and computer capabilities 1. Higher sulfur content
2. Oil recovery as compared to others
2. Water production
3. Number of wells and possible info
3. Slow information gathering including survey
4. Long history of exploration and production
and seismic acquisition in land
5. Low relief and simple structure at depth
4. Acquisition seismic sand and near surface and
6. Oil in shallow waters, no deep drilling
multiples
7. Generally highly porous reservoirs
5. Reservoir characterization and monitoring
8. Generally large oil fields
6. Data sharing and availability
9. Oil production and examples
7. Subsalt exploration and production
10. Amount of oil exploration and seismic data
8. Drilling cost and efficiency
11. The latest software and solutions are present
9. Environmental technology and zero emission in
12. Available funds
Red Sea production
10. Identification, mapping and understanding of
source rocks and petroleum system in the region
including the red sea
11. Basement depth and mapping
12. Onaiza formation heterogeneity
13. Red Sea and Rubaii alkhali Exploration
14. Gas exploration and production
15. Mapping the top of large reservoirs
16. Detection and mapping of fractures in carbonate
reservoirs
17. Deep inter-well resistivity measurements
18. In-situe wet-ability characterization
19. The problem of condensate banking in Gas
wells
20. Oily water disposal
21. Upstream waste management
22. Water downhole and online separation
23. Pore network modeling
24. Well monitoring systems
46
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
A: SWOT Analysis
Threats:
1. Technology monopoly and secrecy
2. International environmental policy and
regulations
3. Lack of scientists in some technologies
4. Lack of continuity of funding resources for
R&D activities
5. Hiring regulations
Opportunities:
Initiative #
Factors
Initiative #
Factors
1
S1 S3 S8 S12 T1
T3
15
W1-W24/ T1 T3
T5
2
S8 T4
16
W1 W2 W3 W4
W8/ T2
3
S4 S5 S6 T2
17
W1-W24 / T4
Initiative #
Factors
Initiative #
Factors
4
S1 S2 O8 O10
O12 O15
9
W1 W2 W22/ O1
O4 O8 O10 O12
O13
5
S5 S6
O15
7
W6/O1 O2 O3
O5 O6 O11 O14
6
S8 S9 S10 O12
O14 O15
8
W10 W11 W12/
O1 O2 O3 O6
O7 O12 O14
11
W3 W4 W7 W13
/ O1 O3 O10
O12 O13
10
W5 W15 W16
W18 W23/ O1
O2 O4 O6 O8
O9 O12 O13
13
W8 W22 W24/
O1 O2 O7 O14
O15
12
W14 W19/ O1
O12
14
W9 W20 W21/
O1 O11 O12
O14
1. Available funds for research
2. High number of wells and corresponding info
3. Good coverage of exploration data
4. Weak environmental regulations
5. Presence of vast amount of data and examples
6. Good modeling tools and computer
capabilities
7. Easily accessible excellent outcrop geological
S7
O7
information
8. Significant hydrocarbon reserves
9. Coordination between various local entities
10. Collaboration with international research
entities
11. A plan to organize efforts
12. University research capability
13. Aramco facilities and researches
14. Ministry support
15. Collaboration with service companies
Strategic Priorities for Oil and Gas Technology Program
47
Strategic Initiatives
Appendix
B: Proposed Organizational Structure
Figure B-1: Proposed Organizational Structure
KACST
Steering
Consultant
Program
Management
Support
48
Research
Human
TTA1
Procurement
TTA2
Training
TTA3
Financial
TTA4
Project
TTA5
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
C: Strategic Initiatives Process
This appendix explains the process that was undertaken
according to administrative themes (HR, coordination
to develop the strategic initiatives. The process involved
& cooperation, etc.). Primary initiatives were then
extracting primary initiatives after performing the SWOT
rephrased in order to consolidate initiatives.
analysis (Table A-1) and categorizing these initiatives
Table C-1: Strategic Initiative, SWOT, and Themes
#
ST
Initiative
Themes
1
S1 S2 T5
Utilizing current assigned budget to make plans for a
sustainable funding
Financial
2
S1 S2 T6
Providing financial and mental motivators to attract students
to relevant fields of studies and developing a strategy to
attract students
Financial, HR
3
S1 T7
Concentrating on long term researches and limiting funds of
short term research to benefiting companies
Financial, Coordination
4
S2 T1
Utilizing current interest in R&D and strategic planning to
secure a continued future funding
Financial
5
S2 T2
Proposing the change of recruitment and procurement laws
and regulations utilizing current interest in R&D strategic
planning
Laws
6
S1 S2 T3
Utilizing financial funding and interest in R&D to establish a
data base that support research activities
Coordination
7
S2 T8
Providing proposals that address intellectual property rights
and enforcement
Laws
8
S3 T4
Utilizing currently wasted manpower in the researchers
sector to accomplish outstanding researches and increase the
confidence in local researchers
Laws, Coordination, HR
#
SO
Initiative
9
S1 S3 O4 O5
O6 O7 O12
Utilizing current assigned funds and available manpower to
benefit from available data in performing research projects
in new frontier area exploration (onshore and offshore), gas
exploration and enhanced recovery
Res. Trends
10
S1 S2 O10
O13
Utilizing current assigned funds to develop a detailed long
term plan to exploit researchers from developing countries
and those who want to live in the Kingdom
HR, Laws
S3 O11
Exploiting the resemblance of geological conditions of the
Gulf in conducting joint researches and creating a local
future market for advanced E&P technologies
Coordination
11
Strategic Priorities for Oil and Gas Technology Program
49
Appendix C: Strategic Initiatives Process
50
12
S1 S2 S3 O8
O9
Directing resources within a long term plan to produce
advanced technologies that support increasing demands of
oil industry
#
WO
Initiative
13
W1 W3 W5
W8 W9 W12
W13 / O1 O2
O3
Having oil and gas as the primary resource for the country
and being the greatest producer and exporter in the world
imply a greater concern in developing infra structure of R&D
in oil and gas E&P (funding, HR, infrastructure)
Infrastructure,
Financial, HR
14
W2/O4 O5
O6 O7
Directing researches towards exploration and production
technologies in new frontier areas (Red Sea & Rub Alkhali)
while concentrating on discovery of new fields and enhancing
available ones
Res. Trends
15
W2/ O8
Exploiting current industry interest in applying state of the arts
technologies to direct R&D activities to fill future demands of
industry
Res. Trends
16
W5 W6 W7
W8 / O10
O13
Utilizing the attracting environment of the Kingdom to
Muslims to attract outstanding researchers to support R&D
and academic activities
HR, Laws
17
W11 / O14
Utilizing the stability of oil industry policy of the Kingdom in
establishing international R&D alliance
Coordination
18
W4 / O9
Utilizing the current cooperation between the industry and
specific research entities to enhance cooperation between
research centers and researchers
Coordination
19
W14 / O7
Utilizing the presence of international gas ventures to
enhance international cooperation in R&D activities
Coordination
20
W12 W13 /
O8
#
WT
Initiative
21
W3 W5 W6
W7 W8 W9
W10/ T2
Proposing the amendments of laws and policies that obstruct
developing scientific research as foreign recruitment and
administrative laws
Laws
22
W2 W7 / T3
Re-evaluating the confidentiality of technical data in the
industry to help in the formulation of the strategy and to
enhance research and academic programs
Coordination, Laws
Res. Trends
Exploiting current industry interest in applying state of the arts
Coordination, Infrastructure
technologies to establish excellent centers and incubators
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
C: Strategic Initiatives Process
23
W10 / T4
Establishing standards for quality assurance in the research
to gain more confidence from the industry in local R&D
activities
Laws, HR
24
W1 / T5
Securing a sustainable and continued funding of the R&D
sector mitigating the instability in oil prices
Financial
25
W11 W9 / T8
Enhancing and enforcing IP laws to motivate researchers and
cooperate with international entities
Laws, Coordination, HR
26
W4 W12
W13 / T9
Enhancing cooperative research activities to produce
technologies that will break monopoly
Coordination
27
W2 /T11
Directing R&D activities to environmentally friendly
technologies. (CO2 sequestration, waste water management…
etc)
Res. Trends
#
OT
Initiative
O9/ T3 T4
Utilizing the current cooperation between industry and
specific research institutes to break down confidentiality and
enhance confidence in local researches
28
Strategic Priorities for Oil and Gas Technology Program
Coordination
51
Appendix C: Strategic Initiatives Process
Primary Initiatives
The following is the formulation of the initiatives after rephrasing:
Infrastructure
Extracted from (20+13): Having oil and gas as the primary resource for the
country and being the greatest producer and exporter in the world imply a greater
concern in developing infrastructure of R&D in oil and gas E&P including:
- Academic programs (graduate and undergraduate).
- Excellence centers.
- Incubators.
- Well equipped laboratories.
Financial
Extracted from (2+13): Utilizing current assigned funds to support R&D by:
- Motivating researchers.
- Fellowship and scholarship to students.
- Equipping laboratories.
- Funding high priority researches.
- Training.
- Funding academic programs (research chairs…etc).
Extracted from (1+4+24): Making a plan for securing a sustainable funding
through:
- Available governmental funds.
- Grants and donations.
- Financial returns from studies and consultation that are provided to
beneficiaries.
- Foreign investments taxes in oil and gas industry.
Future Research Trends
Extracted from (27+15+14+12+9): Directing researches and current and
future resources through:
- Coordination and cooperation with industry to define research trends.
- Concentrate on technologies that suit our local conditions and needs.
- Concentrate on non-traditional new frontiers (Red Sea and Rub Alkhali).
- Gas exploration and production technologies.
- Environmentally friendly technologies (CO2 sequestration, waste water
management…etc).
52
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
C: Strategic Initiatives Process
Human Resources
through:
Extracted from (2): Enhance the enrolment of talent
- Utilizing what currently is available of cooperation
gifted students to academic fields related to oil and gas
between industry and some research institutes and
E&P technologies through:
spreading the experience to other institutes.
- Arranging educatory and public awareness programs.
- Exploiting the resemblance of research environment
- Industry provided scholarship.
of the Gulf in conducting joint researches and creating a
- Allocating enough opportunities of scholarship for
local future.
graduate studies.
- Utilizing the presence and interest of international oil
- Improving the salaries and compensations for
companies and laboratories in the region to establish an
researchers and R&D staff.
internal and external R&D alliance through which funds
Extracted from (13): Utilizing available funds in
and profits are shared.
developing HR through:
Laws and Regulations
- Training and scholarship.
- Fellowship.
Extracted
from
(5+7+8+21+23+25):
Proposing
- Attracting salaries.
amendments of laws and regulations that obstruct R&D
- Financially motivating outstanding researchers.
activities that are elated to recruitment:
Extracted from (10+16): Compensate the shortage of
- Immigration, foreign recruitment and foreigner salary
manpower by foreign recruitment through:
structure.
- Amendment of recruitment laws.
- Performance evaluation and quality control.
- Good salaries and attracting research environment.
- Procurement.
- Enhancing graduate studies in universities and
- Rights and laws governing intellectual property.
providing seats for foreign students.
- Industry support of local R&D activities by funds
Extracted from (8+23): Establishing standard and
regulations for R&D activities and exploiting wasted
and information and removal of unjustified or necessary
confidentiality on technical data.
human resources by applying standards to control
quality.
Coordination and Cooperation
Extracted from (3): Coordination with industry in
sharing the support of research.
Extracted from (6+22+28): Establishing a technical
database that includes all information needed to support
researchers while taking in account confidentiality of
some information.
Extracted from (11+17+18+19+26+28): Establish
local and international R&D alliance through which
support and benefits are shared between all parties
Strategic Priorities for Oil and Gas Technology Program
53
Appendix D: Stakeholders and Participants
Stakeholders
Private Sector
Table D-1: Private Sector Stakeholders
Department
Company
Comments
EXPEC-ARC
Saudi Aramco
Dedicated to advanced research
and development in exploration and
production
The exploration divisions
The four Gas ventures
Development divisions
Services companies, ARGAS,
Schulumberger, and more
Development divisions
Alkhafji joint operations
Development divisions
Saudi Chevron Company
Carbonate research center, Dhahran
Universities
Table D-2: University Stakeholders
Department
University
Petroleum Engineering and Earth Sciences Departments
King Fahad University for Petroleum and Minerals
Petroleum Engineering and Geology Departments
King Saud University
Earth Sciences College
King Abdulaziz University
Ministries and Agencies
Table D-3: University Stakeholders
Department
Organization
The Ministry branch in the Eastern region
Ministry of Petroleum and Mineral Resources
Research Centers and Institutions
Table D-4: Research Center and Institution Stakeholders
54
Department
Center and Institute
Oil and Gas Center
Research Institute at King Fahad University
Dhahran Carbonate Research Center
Schulumberger
Strategic Priorities for Oil and Gas Technology Program
Strategic Initiatives
Appendix
D: Stakeholders and Participants
Workshop Participants
Participants in SWOT Analysis Forum
Dr. Salih Saner
Mr. Moujahed Al-Husseini GEOARABIA, Dubai
Dr. Ali Sahin
Dr. Adel Fawzy Douban KSU, Riyadh
Dr. Emad A. El-Sebakhy
Dr.Abdullatif Al-Shuhail, KFUPM, Dhahran
Dr. Abdulaziz M. Al-shaibani
Dr. Adnan Alhashem,
Dr. Abdullatif Abdulrahman Al-Shuhail
Dr. Hassan Salman Al-Hashim
Dr. Mustafa M. Hariri
Dr. Mohammed Emera
Dr. Tarek Sheltami
Mr. Abdulbari Arefi
Dr. Hasan Yousef Al-Yousef
Dr. Ahmed Gawish
Dr. Hassan Salman Al-Hashim
Dr. Eissa Shokir
Dr. Muhammad Ali Al-Marhoun
Dr. Mohammed M. Amro
Dr. M. R. Awal
Mr. Mohammed Badri, DRC, Dhahran
Dr. Oguz Irtem
Dr. Ali Sahin
Dr. Abdulwahab A. Abokhodair
Mr. Yahya Shinawi, MOPM, Dhahran
Dr. Adel Fawzy Douban
Mr. Saleh A. Al-Maghlouth, SSG, Khobar
Mr. Abdulmohsin Al Dulaijan
Mr. Abdulmohsin Al Dulaijan, SRAK, Khobar
Mohammed Badri
Mr. Claudio Bagaini, Schulmberger, UK
Mr. Akhat Khakimov
Abdulbari Arefi
Mr. Abdulaziz S. Al-Issa
Saud Al-Haluli
Dr. Harry W. Mueller
Dr. Dhafer A. Al-Shehri
Sami Al-Neaim
SUSHANTA MOHAPATRA
Jan Erik Strand
Dr. Tariq Alkhalifah
Dr. Abdulaziz A. Al-Majed
Dr. Emad S. El-Homadhi
Dr. Abdulrahman Al-Quraishi
Dr. Abdulaziz Ibn laboun
Dr. Abdulaziz Kaabi
Mr. Abdallah Alsabti
Mr. Emad Al-Mushaigeh
Strategic Priorities for Oil and Gas Technology Program
55
www.kacst.edu.sa
King Abdulaziz City for Science and Technology
Doc. No. 13P0001-PLN-0001-ER01
DAKKIN 01 478 8584
Tel 488 3555 - 488 3444
Fax 488 3756
P.O. Box 6086 Riyadh 11442
Kingdom of Saudi Arabia
www.kacst.edu.sa
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