July-2013-Arabian Oil & Gas - AES Arabia Ltd
July-2013-Arabian Oil & Gas - AES Arabia Ltd
July-2013-Arabian Oil & Gas - AES Arabia Ltd
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Upstream Partners<br />
Water<br />
Champions<br />
<strong>AES</strong> <strong>Arabia</strong> has been pioneering high-end water<br />
treatment for the major oil and gas players in Saudi<br />
<strong>Arabia</strong> and the wider Middle East. We meet CEO Fawaz<br />
Malki and find that upstream and downstream firms<br />
have become customers of choice<br />
<strong>AES</strong> <strong>Arabia</strong> has been working in the water and wastewater<br />
treatment industry since 1985, developing<br />
wide-ranging expertise across a number of sectors<br />
such as power generation and refining. The firm’s<br />
CEO, Fawaz Malki, says that <strong>AES</strong> pushed into the oil and gas<br />
business following rising numbers of competitors in other<br />
areas.<br />
“In the late nineties, as a result of the mounting competition<br />
in [other sectors], and a trend of decline in quality, we<br />
were compelled to take our high standard to new frontiers.<br />
The oil & gas and petrochemical industries presented a challenge<br />
– in terms of high standards and quality that only companies<br />
like <strong>AES</strong> can meet, and are well equipped to enter.<br />
Since then, we embarked on a journey which has led us to<br />
become one of the leading O&G water and wastewater treatment<br />
providers; serving some of the largest regional and<br />
international energy giants successfully,” he explains.<br />
Since establishing itself in the sector, <strong>AES</strong> has worked<br />
with a raft of the major oil and gas companies around the<br />
world – including Saudi Aramco, ADNOC, Petronas, Shell<br />
and Total. In addition, the firm has been kept busy working<br />
with international EPC firms such as Technip, Bechtel and<br />
Samsung.<br />
“The major share of the projects we executed is from<br />
downstream – mainly because of the high standard processes,<br />
such as process water requirements, wastewater and<br />
oily water requirements. The upstream share is also considerable<br />
for the enhanced recovery application,” Malki says.<br />
<strong>AES</strong> <strong>Arabia</strong> CEO Fawaz Malki.<br />
www.arabianoilandgas.com<br />
November 2012 <strong>Oil</strong>&<strong>Gas</strong> Middle East 143
Upstream Partners<br />
Fawaz Malki, <strong>AES</strong> <strong>Arabia</strong>’s chief executive said that a flight from quality in non-energy sectors encouraged the firm to pitch for upstream oil and gas work.<br />
<strong>AES</strong> says that standards<br />
in the industry are becoming<br />
ever more sophisticated, as<br />
water resource issues become<br />
increasingly challenging and<br />
require advanced technologies<br />
to ensure efficient processes.<br />
“That’s why <strong>AES</strong> provides<br />
total water management for all<br />
waters used by, generated by, or<br />
emanating from, the petroleum<br />
and petrochemical industries.<br />
No matter what the application<br />
or global location, we have the<br />
experience and expertise to<br />
resolve water issues. The group<br />
catering to oil and gas and petrochemicals<br />
comprises some 300<br />
dedicated professionals in the<br />
design and execution office,”<br />
he says.<br />
The advantages, Malki<br />
believes, of firms’ focusing<br />
more on their water processes<br />
are improved efficiency gains<br />
and water sustainability.<br />
“The energy sector in general<br />
and the petroleum industry<br />
in particular, is one of the largest<br />
users of water in the manufacturing<br />
process. The complete<br />
process depends on water. In the<br />
Middle East, water resources<br />
are considered to be scarce and<br />
expensive. Alternative water<br />
sources – such as wastewater<br />
and produced water – can provide<br />
an economical, ecologically<br />
friendly option towards water<br />
sustainability.<br />
“In addition to that, the ever<br />
evolving and maturing environmental<br />
discharge standards and<br />
regulations have driven the use<br />
of technologies and solutions to<br />
keep producers competitive,”<br />
he adds.<br />
One challenge still facing the<br />
industry that Malki identifies is<br />
a rising trend for EPC companies<br />
to more forcefully pursue<br />
the region’s largest projects.<br />
“EPC companies are becoming<br />
increasingly aggressive in<br />
grabbing the mega energy projects<br />
in the region. Among them<br />
are several competitive Asian<br />
companies whose lower prices<br />
are putting an increasing pressure<br />
on the fair value of the technology<br />
packages suppliers like<br />
<strong>AES</strong> are offering. However, we<br />
consider this to be a temporary<br />
phase and are accordingly putting<br />
up a strategy to cope with<br />
it,” he states.<br />
In terms of future plans,<br />
Malki says that there is a “very<br />
ambitious plan” that <strong>AES</strong> is currently<br />
implementing, with particular<br />
growth of note in the<br />
business’ North African activity.<br />
In addition, the firm is looking<br />
to expand its product range,<br />
and is also moving into the<br />
Iraqi market.<br />
“We started offering our services<br />
to Iraq even at the time<br />
when security was a real concern.<br />
We completed a contract<br />
for DIFID (UN) to design, manufacture<br />
and install a 24,000<br />
cubic metres/day desalination<br />
plant for Zubair Petrochemicals.<br />
We successfully commissioned<br />
and installed the plant remotely<br />
from Kuwait for security reasons.<br />
We are very well prepared<br />
to go into the Iraq market<br />
aggressively once again, knowing<br />
the potential in the energy<br />
sector. In fact, we have started<br />
pursuing some specific opportunities<br />
with a few of the world’s<br />
top EPC contractors,” Malki<br />
concludes.<br />
<strong>AES</strong> <strong>Arabia</strong> is one of the best prepared firms in Iraq to work with O&G needs.<br />
144 <strong>Oil</strong>&<strong>Gas</strong> Middle East November 2012 www.arabianoilandgas.com