Features / Research & Analysis
Improving Service Companies’ Profitability through Supply Chain Agility
The global oil and gas industry has been rapidly turning into a highly volatile and complex industry over the last two years. Meanwhile, the different types of players operating within the industry have been often caught competing on supply chain effectiveness to lower their overhead costs, improve their operational efficiency, and sustain their growth and profitability, in the thick of the fluctuating business environment. Oil-field service and equipment (OFSE) companies have been among the companies suffering the most from the international plunge in oil prices, which commenced in mid-2014.
ENGINEERING, PROJECT MANAGEMENT FIRMS ALTERING OIL INDUSTRY
Implementing projects in oil and gas industry requires companies to assign certain tasks to specialists. Project managers and engineers are needed for oil and gas players in order to avoid taking huge risks that may result in loses. In that aspect, oil and gas investors hire engineering and project management service companies, also known as Engineering Procurement Construction Service Companies like Ennpi in Egypt, Amec Foster Wheeler in the UK, and Carmagen Engineering in the US.
The Role of Sensors Service Companies in Global Oil Market
Technology is vital to enhance the quality of service companies’ output provided to the oil and gas industry. Skills, methods, and techniques that research and development departments (R&D) of service firms adopt, help boost production for oil and gas companies with a minimal cost and high efficiency. The developments then promise to maximize service companies’ revenues.
Driving Revenues through Innovative Technology
National Oil Companies’ (NOCs) growing interest in new kinds of partnerships has created new opportunities for oil field service companies. As profits and revenues of service firms highly depend on the scale of exploration activities, innovative technology has become an essential component for revenue generation. Giant oil field service actors such as Halliburton, Schlumberger, and Baker Hughes have thus resorted to this business strategy in a market where crude prices have witnessed an unprecedented decline.
SEISMIC DATA FIRMS CONTRIBUTE TO UPSTREAM
Drilling costs for oil and gas concessions can reach over $100 million. Calculations per field average between $5 to $10 million for drilling and completion expenses, as is the case for Eagle Ford and Bakken in the US, and the drilling of AG-115 well in Abu Gharadig field in Egypt, costing $6.5 million. Therefore, companies do not want to explore wrong locations, only to discover poor-yielding assets at the end of the process.
IRAN PETROLEUM CONTRACTS PAVE WAY TO FOREIGN INVESTMENTS
Iran has been taking steps towards boosting its oil dependent economy after finally lifting international sanctions against its energy sector. Announcing the new scheme of the oil and gas contracts, known as Iran Petroleum Contracts (IPCs), has encouraged foreign investors to strike deals with the Islamic Republic. As the new contract model replaced the old buybacks scheme, it has also raised critics and concerns in Tehran, leaving the future of the new oil contract up for debate. These disputes over the new IPCs, nevertheless, proved misplaced and invalid.
Oil and Gas Arbitral Awards in Egypt
The issue discussing domestic versus foreign arbitrations has dominated news in the energy industry in Egypt in the past months. It has become a key conundrum for oil, gas, renewables, and other energy companies that are operating in the country. Foreign energy investors have objected to the requirements by the government to hold all their dispute settlement processes in Egypt. Instead, they requested to have an option to file suits abroad with international arbitration centers, shall there arise any disagreements in the future.
Arbitration in Egypt: Myth or Reality?
The Egyptian Judicial System has traditionally been regarded as the primary and sometimes exclusive forum for the settlement of legal disputes in Egypt. The country’s judicial system has, however, become increasingly overloaded, timely and notoriously procedurally complex over the past few decades, rendering it incapable of keeping up with the swift pace of modern business transactions.
