As petroleum companies compete to drive down unit costs, their exploration and production businesses increasingly look to the Middle East in hope.
While E&P regions such as the North Sea yield oil at a cost of typically $10-14/bbl, the Middle East`s reserves can be lifted for about $4-5/bbl in the region`s more complex plays and for less than $1/bbl in the best.
Some Middle Eastern countries have long encouraged foreign firms to invest and participate in their petroleum projects, but others-notably those with the largest and choicest reserves-have closed their doors to outsiders for many years.
However, the late 1990s brought a thaw in attitudes. Middle Eastern governments increasingly looked to outsiders as a potential source of new methods of exploiting resources, new techniques for squeezing more oil out of aging fields, and in some cases as a means of funding.
The Middle East`s major oil producers-Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates-and Libya in northern Africa are all members of the Organization of Petroleum Exporting Countries.
While OPEC had been a dwindling force in controlling the world oil market since the price crises of the 1970s, the organization bounced back in 1999. Many pundits viewed OPEC, and therefore the Persian Gulf oil producers, as a potentially dominant force once more.
Writing in the OPEC Bulletin in June 1999, OPEC Sec. Gen. Rilwanu Lukman said that the organization had come through tough times stronger and more capable, and was well-equipped to handle the rigors of the 21st Century. He backed his confidence with reserves and production estimates, and his comments showed why foreign investors were so keen to get into the Middle East in particular.
"OPEC holds about 77% of global proven crude oil reserves and produces more than 40% of the world`s output of crude oil," said Lukman. "The organization actually supplies about 60% of the internationally traded crude oil, since many oil producing countries consume most of their domestic output.
"At the current rate of depletion, OPEC`s crude oil reserves, currently at about 800 billion bbl out of a global total of 1.03 trillion bbl, are expected to last for about 80 years.
"Compare that with non-OPEC production and we see that their reserves will be depleted in less than 15 years, although this could be subject to variance, particularly with the application of new technology.
"Moreover, non-OPEC oil producers are currently operating at full capacity, producing 60% of global output from some 24% of the world`s proven crude oil reserves."
Lukman`s confidence came after a decade in which the dominance of OPEC in crude oil markets was perceived to have dwindled to the point where the organization`s influence over oil prices had diminished from its level of the 1970s and early 1980s.
But the trough in the price of crude oil from late 1997 to mid-1999, with Brent crude falling to less than $10/bbl in December 1997, caused to a large degree by production beyond quota levels by OPEC members, enabled OPEC to regain credibility as a stabilizing influence.
In July 1999 London`s Centre for Global Energy Studies said the oil market`s buoyancy in the previous few weeks, with Brent crude hovering in the $18-19/bbl range, was beyond most market observers` wildest dreams.
The price surge was a direct result of a cutback agreement among OPEC producers forged in March 1999, which enabled global crude oil stocks to begin to fall once more and even to encourage CGES to envisage a rise in OPEC output volumes.
"We are now entering a period," said CGES, "in which the fundamentals are at last pointing oil prices in the same direction as the futures market has been doing for some months.
"OPEC`s cuts have finally made their expected hole in long-haul crude supplies, summer maintenance in the North Sea is in full swing, crude runs are rising on the back of positive refining margins, and product stocks are just beginning to decline.
"There is indeed a genuine shortage of crude in the Atlantic Basin at a time of unrest in the Niger Delta and an improving rate of compliance from OPEC, so a strong prompt price rally was to be expected, with Brent leading the way.
"The maintenance by OPEC of oil prices around $18/bbl for Brent would send a very clear message to the world`s upstream oil companies that it was once again safe to invest in exploration and development; it would also provide them with the cash to do so."
Lukman said, "According to the latest results from the OPEC World Energy Model, world oil demand will rise from around 73 million b/d in 1997 to some 76 million b/d by the year 2000.
"Over the following decade, the world`s thirst for oil should rise by a further 12 million b/d to 88 million b/d and will reach an estimated 99 million b/d in 2020.
"These projections are in tandem with a global economy that is slated to see expansion of 2.6% annually in 1997-2000, 3.4% a year between 2000 and 2010, and 3.1% a year in 2010-2020.
"With non-OPEC oil production in the first two decades of the 21st Century forecast to remain relatively stable at 44-48 million b/d, OPEC will take the lion`s share of incremental demand as nations around the world expand and the need for oil to fuel their economies rises.
"Depending on the price of oil and current global projections, OPEC could be producing well over 51 million b/d of the world`s oil in 2020."
Saudi caution
Saudi Arabia, by far the largest holder of oil reserves in the world, would be the favored investment target of any foreign firm, but the Saudi government in 1999 was more reluctant than any other to open its doors.
In May 1999 Saudi Arabia`s Minister of Petroleum & Mineral Resources Ali Naimi called for investment by foreign firms in the kingdom`s gas, lubricants, and petrochemicals projects but not its oil fields.
The minister told OPEC Bulletin that Saudi Arabia had estimated gas reserves of more than 207 tcf and that the kingdom was keen on exporting gas on a major scale.
"We are looking," said Naimi, "for concepts that deal with integrated projects, which as far as gas is concerned will give us an end-product, such as desalinated water, power, or petrochemicals."
OPEC Bulletin said nine energy companies, including Total SA, Chevron Corp., and Royal Dutch/Shell, had sent representatives to Riyadh to discuss potential involvement in the kingdom`s oil and gas sector.
In October 1999 Prince Saud Al-Faisal, Saudi Arabia`s foreign minister and chairman of the Ministerial Oil Committee, told the Riyadh daily newspaper Ukaz that the kingdom "considers exploration and investments in the oil sector not beneficial at present, especially since there are ample world oil supplies and sufficient spare production capacity within the kingdom.
"Hence," added Al-Faisal, "Saudi Arabia encourages investments in the production and industrialization of natural gas. We have a strategy which we are going to finalize by the end of October, according to which future policies and directions will be determined."
Al-Faisal indicated that these ideas would be presented to the foreign companies that earlier had responded to the kingdom`s call for investment. These included Exxon Corp., Texaco Inc., and other US majors already involved in Saudi projects.
At a Houston conference in October Naimi reiterated his view that Saudi Arabia was not opposed in principle to investment by foreign companies in the kingdom`s exploration and production sector but that there was no immediate need for such investment.
"We already have plenty of reserves and idle capacity," he said.
Naimi said that Saudi Arabia`s oil reserves amount to 261 billion bbl, one quarter of the world`s total, and that during the previous 20 years, while global oil reserves had increased by 400 billion bbl net, Saudi Arabia`s contribution to this total was 25%.
"During the same period," said Naimi, "Saudi Arabia has been able to find 3 bbl of oil for each barrel produced. And in the years to come more oil is more likely to be found in Saudi Arabia than anywhere else in the world.
"Along with the advantages of this enormous oil reserve base, Saudi Arabia`s cost of production is one of the lowest in the world. Today, our all-inclusive cost of production is less than $1.50/bbl, while the global average cost is about $5/bbl and in some areas more than $10/bbl.
"We also have a great advantage when it comes to adding new reserves, or increasing production capacity. It costs Saudi Arabia less than 10¢/bbl to discover new reserves, while the cost in some other areas of the world can be as high as $4/bbl."
Naimi said that, while opportunities to invest in the Saudi E&P sector were not then available because the country did not need any help with E&P and marketing oil, the kingdom was fully open to investors downstream.
"We need integrated projects," said Naimi, "where each link of the chain adds value. These projects could involve petrochemicals, electricity, water desalination, and so on. The needed investments are those which complement our industries and our national companies, not replace them."
Regarding discussions during 1999 with foreign oil majors over projects in Saudi Arabia, Naimi said, "Many of the proposals which we have received do fit within our needs and within these criteria. We are looking into these proposals carefully, with each receiving close consideration.
"Equally important, we are considering other new ideas and possible projects. We expect soon, therefore, to see the commencement of negotiations with companies to formalize the needed projects. In this regard, I would take this opportunity to make it clear that the concerned companies will have an equal and fair chance."
The prospects for foreign investors in Saudi Arabia were given a boost in mid-October when Crown Prince Abd Allah ibn Abd Al-Aziz announced that the kingdom would introduce a series of legislative reforms aimed at encouraging foreign investment. He said that new rules for foreign capital would be introduced soon and that the kingdom would also continue to pursue privatization as a strategic option to bolster the economy by strengthening the role of the private sector.
Iraq
At the opposite end of the Middle Eastern investment spectrum was Iraq, which had oil fields in dire need of western investment and technology but which was prevented from opening its arms to foreign firms by a United Nations trade embargo, put in place after the Gulf war of 1990.
Instead, Iraq continued to rely on the UN to allocate funds for oil field refurbishment work as part of the oil-for-aid agreement under which Iraq exported crude oil to pay for food, medical supplies, and industrial equipment.
In September 1999, UN Sec. Gen. Kofi Annan recommended that the UN Security Council allocate a further $300 million for the purchase of oil field equipment and spare parts in addition to the $300 million already approved. However, it was not certain whether any purchase of equipment and spares would actually take place following this initiative because the move would have to be approved by the council and the idea was opposed by two main council members, the US and the UK.
By the beginning of October the UN Security Council had approved the allocation of $900 million worth of spare parts and equipment, and the UN`s Office of the Iraq Program had received contracts amounting to $600 million. Of this, about $300 million worth of contracts had been approved, but $130 million worth had been put on hold, and only $130 million worth of equipment had actually reached Iraq.
The Iraqi oil ministry complained about the delays to the program, which it saw as critical to its plan to meet production requirements under the oil-for-aid program and also to raise production capacity to 3 million b/d by the end of 1999 and 3.5 million b/d by the end of 2000.
The delays were blamed on the slow pace of the contracting process, the time taken by the UN Office of the Iraq Program to review the technical details of the contracts before submitting them to the Sanctions Committee, and the fact that the Sanctions Committee tended to put many deals on hold.
Despite the lack of progress in lifting the UN trade embargo against Iraq, which prevented the start of work on four major oil field developments awarded to foreign firms, in October the Baghdad oil ministry allocated new oil projects to Russian firms following a visit to Baghdad in late September by Russia`s Fuel & Energy Minister Viktor Kalyuzhny.
Kalyuzhny told reporters that, under existing agreements, Lukoil should have started work on the development of the giant West Qurna oil field but that since the signing of the agreement in 1997 no field development work had been possible because of the UN sanctions.
However, Kalyuzhny added that the Russian firms Tatneft, Bashneft, Rosneftegaztroy, and Lukoil would implement further upstream and downstream projects. On his return to Moscow the minister told the Vremya MN newspaper that Baghdad had presented his delegation with a long list of potential projects and that Russia would make public its position on the projects within 2 months.
Iran
In 1997 Iran began to open its doors to foreign investors for the first time since the revolution of 1979, and during 1999 petroleum companies pushed a growing list of projects.
One of the main catalysts for change was the Institute for International Energy Studies, Tehran, established by the Ministry of Petroleum in 1991 to act as an advisory body.
Seyed Gholamhossein Hassantash, IIES president, explained in September that, just as Qatar was developing a variety of projects to exploit North gas field, Iran had ambitions for a similar spread of projects to develop South Pars gas field. North and South Pars are part of a supergiant gas structure that crosses the maritime boundary between the two countries.
Hassantash explained that a conference in Tehran during November would "concentrate on gas both upstream and downstream and will particularly focus on the prospects in Iran for new technologies such as gas-to-liquids (GTL).
"Because Iran`s gas industry hasn`t yet become market-oriented, the institute is able to consider a range of options to develop the gas. And since Iran holds the second largest gas reserves in the world after Russia, we would definitely like to ponder all new technologies with potential."
Iran was keen to pursue gas exports in a number of forms. For example, Total was sending associated gas from its Sirri oil fields to the UAE for reinjection to boost oil production there; Iran was negotiating to supply gas to Turkey by pipeline; and GTL was being viewed with exports in mind.
Hassantash said that Iran had a comparatively well-developed gas transportation grid. Only six cities received piped gas before the revolution, but in 1999 more than 300 were connected up.
The Tehran petroleum ministry`s brief for continued stimulation of the domestic gas industry was clear cut: "The government would like to replace petroleum products with natural gas to the greatest extent possible."
While associated gas was being reinjected by NIOC in "huge volumes" to provide enhanced oil recovery in existing fields, the country was putting its gas to more sophisticated use also.
"Now," said Hassantash, "most of Iran`s electric power plants have shifted to burning natural gas instead of fuel oil. We are also using compressed natural gas and liquefied petroleum gas to run cars.
"More than 90% of Tehran`s taxis now run on LPG, while a growing number of buses in the city burn LPG, and car drivers can now buy CNG at many filling stations.
"The government is encouraging car owners to switch to gas. CNG is cheaper after the initial investment, and it is much cleaner. This is essential in a city like Tehran, where such schemes have helped reduce the rate of pollution over the last 10 years."
Around that time Iran disclosed a giant oil strike in its southwestern Khuzestan province, lying about 10 km from the border with Iraq and 25 km from Iraq`s supergiant Majnoon oil field.
Iranian officials told reporters the find was the biggest in Iran for 30 years and could contain 26 billion bbl of oil. Oil Minister Bijan Zanganeh reportedly said the reservoir had the potential to produce 400,000 b/d of oil.
Development of the find was anticipated to begin by the end of March 2001. The official envisaged that the discovery would boost foreign interest in Iran`s oil industry, which was expected to be opened further to foreign firms in a bid to attract investment and bring state-of-the-art production techniques to squeeze more oil out of the country`s older fields.
A major deal was announced in November when Shell Exploration BV came into confrontation with the US State Department by signing an agreement for an $800 million redevelopment deal with Iran.
Washington`s Iran Libya Sanctions Act (ILSA) of 1996 required the department to impose sanctions on any company that invests more than $20 million in Iran or Libya.
A Shell official confirmed that the State Department was launching an investigation into the Shell/NIOC deal and that the process was expected to take "some time."
Shell`s deal was with the National Iranian Oil Co. for redevelopment of the Soroosh and Nowrooz oil fields, which lie in shallow waters 80 km west of Kharg Island in the Persian Gulf.
A State Department official told Reuters that while it would take time to decide whether to impose sanctions, the administration could waive sanctions or postpone a decision pending consultations with the company.
There was a precedent for waiving sanctions, since Total Fina SA secured development projects in Iran`s South Pars and Sirri fields in the face of US concerns in 1997.
Like Total Fina, Shell had been negotiating with Iran during the period after the US imposed sanctions. The company`s understanding, after consulting the British and Dutch governments and the European Union, was that ILSA was not applicable.
Shell was adamant that its US subsidiary Shell Oil would have no involvement with the NIOC deal and would not provide either capital or expertise for the project.
According to the State Department official, the fact-finding process would take months, after which the department would make a recommendation to Secretary of State Madeleine Albright, who then could decide on 90 days of consultations with the company. "In short, nothing happens for a long time," the official said.
Yet work in Soroosh and Nowrooz was slated to begin immediately, and the project team was already being assembled as the news broke. Also in Iran, Shell was studying Iranian Caspian Sea exploration prospects in a joint venture with Lasmo PLC, London, and NIOC; held a crude oil purchasing agreement with NIOC; and had submitted a proposal for the South Pars Phase IV and V developments.
Soroosh and Nowrooz were brought into production in 1967 and 1970, respectively, but were both damaged extensively in 1983 during the Iraq-Iraq war.
Soroosh was shut in, but Nowrooz was producing 5,000 bo/d at the time of the announcement. Shell aimed to begin early production from Soroosh after redevelopment in autumn 2001 and full production from both fields 2 years later.
The fields would be redeveloped jointly. In Nowrooz Shell planned to install a production platform and separate wellhead and quarters platforms, while in Soroosh it intended to install two production platforms, two separate wellhead platforms, and a quarters platform. The new production platforms would be tied back to a floating storage unit to enable exports of crude by shuttle tanker.
Soroosh had estimated reserves of 500 million bbl of oil, and Nowrooz reserves were estimated at 550 million bbl. Shell intended to raise production from Soroosh and Nowrooz to 100,000 bo/d and 90,000 bo/d, respectively.
Libya
Libya Sec. of Energy Abd Allah Al-Badri told a conference in Geneva in April 1999 that the country was in need of enhanced oil recovery technology to maintain output from mature oil fields and of gas development projects.
Al-Badri said that Libya had "to take care of some in-house matters" before it would invite foreign companies to bid for projects in the country, but "we would like to see oil and gas companies come to invest in Libya."
The energy ministry aimed to offer 16 exploration and production concessions covering a total of 26,000 sq km onshore and 4,000 sq km offshore to foreign bidders, while a further 24 blocks were earmarked for opening up, with a combined area of 47,000 sq km onshore and 14,000 sq km offshore.
Libya`s National Oil Corp. (NOC) was also expected to reopen blocks in the Sirte basin and others where existing operating arrangements were due to be terminated. The government was considering organizing a bidding round.
The Libyan government was thought to be redrafting its petroleum law with a view to debating proposed regulations around the end of the third quarter of the year.
Also, NOC was looking for foreign investment in its downstream sector, with a view to upgrading the country`s five refineries, which had a combined crude distillation capacity of 380,000 bo/d.
Libya`s refineries produced 900,000 tonnes less gasoline than the market consumed in 1998, and the government expected that this shortfall would rise to 1.31 million tonnes by 2010 unless action was taken.
In November the NOC awarded an exploration and production sharing agreement for Block M-4 to a consortium led by Repsol-YPF SA.
The newly designated Block M-4 covered 12,300 sq km of Libya`s Murzuq basin. It was awarded by NOC under an addendum to an existing EPSA contract for Blocks NC-186 and NC-187, let in 1997.
Interest holders in the three blocks were operator Repsol-YPF 32%, OMV Aktiengesellschaft 24%, Total Fina SA 24%, and Saga Petroleum AS-then in the process of being taken over by Norsk Hydro AS-20%.
The three blocks lay close to Block NC-115, where Repsol-YPF was also operator, which contained the El Shahara field, then producing about 150,000 bo/d.
According to OMV, Repsol-YPF aimed to raise El Shahara output to 200,000 bo/d "within a short period of time." El Shahara interests holders were operator Repsol-YPF 40%, OMV 30%, and Total Fina 30%.
In November four other blocks in the Murzuq basin were under negotiation by foreign firms. NOC reportedly had designated 80 onshore and offshore tracts for award to foreign companies under EPSA contracts.
Israel
In October BG International Ltd. acquired a 50% interest in five exploration tracts in the Mediterranean Sea offshore Israel through a $10 million farm-in deal with operator Isramco Inc.
The tracts covered a total 2,000 sq km and comprised Med Yavne, Block 239; Med Tel Aviv, Block 240; Med Hedera, Block 241; Med Ashdod, Block 242; and Med Hasharon, Block 243.
BG was expected to take over the operatorship of Med Yavne once the Or-1 wildcat was completed. The well was spudded in early October and was scheduled to be followed immediately by Or-South.
Then the Med Yavne license interests would be operator BG 50%, Isramco 42%, and Delek Drilling Ltd. 8%. For the other four licenses the ownership would be operator Isramco 46%, BG 50%, and Delek 4%.
The farm-in followed the award of three deepwater exploration tracts off Israel to BG during the summer. BG retained a 70% interest in these blocks but farmed out 30% to the Middle East Energy consortium of Israeli companies.
Also, BG and MEE prequalified to develop the Israel Gas Co. to transmit and distribute gas throughout Israel. Tenders for this project were due to be submitted late in the year with the contract award anticipated in early 2000.
In November BG International claimed an historic deal in the Eastern Mediterranean area with the signature of a deal with the Palestine National Authority to explore for gas offshore Gaza.
This first license awarded by the PNA covered three phases of activity, said BG: acquisition of seismic data and exploration drilling, offshore development, and delivery of gas to local markets onshore.
However, there was potentially further controversy about the awarding of the contract, since the PNA was seen by BG as the recognized administrative authority for the Gaza area, but the Israeli government maintained that it had a claim on the territory. The Israeli government was understood to be preparing a challenge to the contract award in the international courts.
Meanwhile, BG said that at least two exploration wells would be drilled offshore land under Palestinian control 18 months and that, depending on successful exploration and market development, together with partner Consolidated Contractors Co. it would spend up to $500 million in establishing a gas industry.
Coinciding with the award of the Palestinian offshore block BG also revealed that the Or-1 wildcat drilled 20 miles offshore Israel on the Med Yavne concession made a gas discovery.
The well was drilled in 695 m of water and flowed 21 MMcfd of gas on test from a 40-m gas pay zone in Pliocene sandstone at a depth of 1,900 m. Only the upper layer or the sands was tested, but the lower levels were also expected to flow gas.
This find, coupled with a similar find nearby, buoyed Israel`s hopes of creating a domestic natural gas industry, although the Israeli government was negotiating with Egypt for gas supplies also. The Israeli Electricity Corp. had its eye on the gas for use in power generation.
Contract awards
While the former no-go areas of the Middle East looked to bring in foreign investors in their own terms in 1999, the countries traditionally more receptive to outside investment continued to award contracts.
For example, in early October the Kuwait Tenders Committee, acting on behalf of the Kuwait Oil Co., invited tenders for the expansion of a gas gathering center in Sabriya field in northeastern Kuwait. Thirty-eight international construction and engineering companies reportedly prequalified with KOC for the project.
The expansion was intended to raise the capacity of the gathering center to 200,000 bo/d from 160,000 bo/d. KOC also had plans to upgrade the capacity of another gathering center in Raudhatain field to 300,000 bo/d from 250,000 bo/d. These were part of a scheme to raise output from Kuwait`s northern oil fields from 400,000 bo/d to 900,000 bo/d.
About a week after the tender invitation for the Sabriya project, Hamad Al-Salih, managing director of the Shuaiba refinery for Kuwait Petroleum Co., disclosed that plans were under way to raise throughput capacity of the refinery by 15,000 bo/d to 215,000 bo/d and at the same time to install new plant to improve the quality of its products.
Yemen, too, was busy wooing foreign firms. In September the government announced plans for its first competitive bidding round, under which seven exploration and production blocks would be offered to international companies.
The blocks on offer were Blocks 25, 26, and 27 along the Red Sea coast; Blocks 6, 7, and 8 in the Central Shabwa onshore area; and Block 38 near Socotra Island off the south coast of Yemen. Bidding was open until Mar. 31, 2000. Western Geophysical Inc. was charged with marketing seismic and well data for the blocks.
In October Novus Australia Energy Co. Pty. Ltd., Sydney, and partners were awarded an exploration license for Block 17 in Oman, which covered 3,200 sq km of onshore and offshore territory.
The block lay alongside the offshore Block 8 tract, which contained the Bukha field for which Novus also signed a new sales contract for the delivery of LPG to a company in Ras Al Khaimah, UAE.
Block 17 interest holders were Novus 40%, Atlantis Holding Norway AS 50%, and the Eagle Energy (Oman) Ltd. unit of Heritage Oil Corp., Calgary, 10%.
Heritage said the concession comprised two areas: the onshore Musandam Peninsula and surrounding offshore territory up to a 3-mile limit; and the onshore Madha area.
The Block 17 partners committed to acquire 220 line-km of 2D seismic data and reprocess almost 1,200 line-km of existing data, as well as to undertake various technical studies during the first 3-year exploration term.
Depending on this work the partners would drill a well during the first 3 years at their own discretion. The group said it had "identified a number of highly prospective structures within Block 17, which appear analogous to the nearby Bukha gas-condensate field and West Bukha/Hengam discovery, both on Block 8. The partners initially intended to focus their activities on further defining these prospects."
Meanwhile, Bukha field production amounted to about 3,500 b/d of condensate and LPG and 40 MMcfd of gas. Interest holders were operator Novus 40%, Heritage 10%, and LG International of Korea 50%.
Heritage said the new sales contract would bring the group an income 12% higher than the previous LPG sales contract, which was with a company based in Dubai.
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Foreign companies use state-of-the-art techniques as a gambit to win Middle Eastern projects. This Western Geophysical Inc. seismic data processing truck was contracted by Petroleum Development Oman to work with six vibrator trucks for slip-sweep surveying. Photo courtesy of PDO.
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Although Oman borders on Saudi Arabia, its petroleum reservoirs are deep and complex, while Saudi fields are relatively shallow and easily produced. Petroleum Development Oman chartered this rig, one of the world`s most powerful, from Deutag Drilling AG to prove up oil reserves in the center of the country. Photo courtesy of PDO.
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Occidental Petroleum Corp. operates the Idd El Shargi field in the Persian Gulf off Qatar. During development work slated for 1997-2000 the operator chartered the Bibby Marinia self-elevating accommodation/work platform, located center-right in the photograph, from Bibby Line group Ltd., Liverpool. Photo courtesy of Bibby Line.
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Qatar`s massive Qatargas LNG export project included Total Fina SA and Mobil Corp. among its interest holders, but large companies were not the only beneficiaries. This photograph shows a line of Techlok clamp connectors provided by Vector International Ltd., Port Talbot, UK. Photo courtesy of Vector.
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Tightening environmental demands provide an opportunity for western contractors in the Middle East. This 13,200 l. capacity vacuum tanker was built by Whale Tankers Ltd., Knowle, UK, under contract to Japan`s Marubeni Corp. during construction of an oil refinery at Aqaba, Jordan. The tanker was required as part of an oil clean-up package provided for the Aqaba Port Authority. Photo courtesy of Whale Tankers.
