INTERVIEW: Siemens

24 Pipeline AUGUST/2013

Ali Vezvaei has been with Siemens Energy Oil and Gas since 2005. Before taking over his current role in 2011,

he was VP of strategy and head of M&A globally for more than two years, which gave him a unique understanding of why recent acquisitions have put Siemens in a prime position to expand its oil and gas operations both here in the region and globally.

“We have acquired some very interesting

companies recently, enhancing Siemens’

existing offerings and bringing us into new

fields, such as subsea,” Vezvaei explains.

“Siemens Oil and Gas division, an

approximately US$5.5bn operation, is one of the

pillars operating under the Energy Sector, and we

have grown this business in the last few years

organically while enhancing the portfolio with a

number of strategic acquisitions,” he adds.

Within the Siemens Oil and Gas division there

are distinct areas of focus, including rotating

equipment, electrification, oil and gas solutions,

offshore and onshore power generation, water

solutions and finally, subsea solutions.

Vezvaei remarks that Siemens’ electrification

and oil and gas solutions, “is where we have

really transformed from a product supplier to a

technology partner of choice.”

The oil and gas industry consumes vast

quantities of water, and the recent integration

of the relevant portfolio of the acquisition of US

Filters by Siemens enables the company’s oil

and gas division to help the hydrocarbon industry

better utilise and preserve this essential resource.

Siemens addresses five segments in this area

- produced water treatment, water treatment

for injection and re-injection, hydrofracturing

water treatment, process water treatment and

wastewater treatment which, in Vezvaei’s eyes,

give Siemens a real edge in the region.

Natural gas is also playing an ever greater

role in the energy mix. “The demand and

development in regions such as MENA, in

conjunction with the increasing importance of

energy independence, point towards a future

in which every tcf must be properly exploited,

optimally captured, and efficiently utilised,” says

Vezvaei. “This is where solutions like no-flare

and sour or acid gas management are expected

to have bold contributions.”

On the sour and dirty gas side, Siemens

has developed a first-of-its-kind canned, seal-

less and fully integrated electrically driven

compressor. The ‘STC ECO’ has been designed

to meet demanding requirements, and

successfully passed the field tests with Shell

and NAM Netherlands.

“Considering the number of sour fields in

MENA region, from BAB in the UAE to fields

in Saudi and elsewhere, we expect to add

significant value to our customers’ operations,”

says Vezvaei. “There are units on their way for

installation in the Middle East, and we are in

discussions to supply more.”

Siemens is also focused on strategic

solutions for the oil and gas industry, involving

Enhanced Oil Recovery (EOR), mid-sized LNG

and unconventional gas.

At the 20th World Petroleum Conference

in Doha, Qatar, Siemens Oil & Gas and

Maersk Oil signed an agreement under which

Siemens would develop and build a turbine

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24

Ali Vezvaei, senior executive vice president and general manager, Middle East & North Africa for Siemens Energy Oil and Gas, reveals exclusive details about the German firm’s expansion of its oil and gas division and recent strategic acquisitions

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INTERVIEW: Siemens

25www.pipelineme.com Pipeline AUGUST/2013

solution around Maersk Oil’s acquired license

rights to the pure oxygen combustor from

US-based Clean Energy Systems (CES), whose

technology is derived from the space industry.

The resulting solution, TriGen, owes its name

to the fact that it will deliver three products:

reservoir-ready CO2, pure water and near zero-

emission power.

The project started almost two years ago,

and the first turbine has already been built and

tested along with the gas generator in California,

USA. Siemens and Maersk are looking to

push this leap in rotating equipment and field

development technology to the next level.

“We call it the magic box, especially

for regions like the Middle East as it has

the potential to address several challenges

together,” says Vezvaei. “EOR in the Middle

East is further developing as assets are ageing.

Countries like UAE, Oman, Saudi and Kuwait

are expected to have a leading role in deploying

advanced EOR solutions,” he notes.

“There are discussions ongoing with several

customers around the world, and of course in

the region, to move this collaboration to the

next level, perhaps with a small-scale pilot then

future expansion,” Vezvaei reveals.

Subsea powerWhile the company’s involvement in subsea

oil and gas may not be widely known, Siemens

began advancing into the sector some years

back. The company has been working closely

with customers and specialists to develop a

solution that meets the offshore and sea-bed

operational challenges.

“We developed a solid strategy, combining

in-house technological development and

electrification expertise with focused

acquisitions,” says Vezvaei. Siemens acquired

two specialised Norway-based companies in

the subsea engineering and solutions arena

– Poseidon and Bennex – and at last year’s

OTC in Houston announced the acquisition of

Expro’s connectors and measurements arm,

marking the firm’s arrival as a major player in

the subsea sector.

“The result of these efforts will be a

revolutionary new solution – the subsea power

grid,” Vezvaei says.

The Siemens subsea power grid is the first

of its kind in supplying safe and reliable power

to processing equipment at depths of up to

3,000m. The package provides the power

cables, transformers, switchgear and variable

speed drives to power up and control electrical

pumps or turbo compressors, separators and

other processing equipment traditionally kept

on surface platforms.

“Offshore development has its own unique

challenges from installation weight, cost

and safety to environmental aspects and

vulnerability to climatic conditions,” he remarks.

“That is why there are solid efforts to bring the

process as close as possible to the well on the

sea floor, and our job at Siemens is to make

sure there is reliable power available.”

Vezvaei explains: “We see good future

potential for subsea solutions in the region, with

considerable hydrocarbon potential in areas like

the Red Sea or the Mediterranean, for example.”

Big data The increased complexity and use of data in

the hydrocarbon industry led by modernisation

of the existing assets and emergence of

intelligent fields are being viewed as exciting

areas and growth opportunities for Siemens.

A specialised offering by Siemens has

been created by streamlining two strategic

US acquisitions, INDX Software Corp. with its

flagship product XHQ, and Berwanger Inc.,

a Houston-based engineering and software

development group.

Siemens has further enhanced the portfolio

and today, XHQ is one of the world’s largest

real-time ‘Operations Intelligence Solutions’,

enabling customers from super majors and

NOCs to IOCs and independents to analyse

and improve upstream operations in alignment

of oil field reservoirs, well production

optimisation and fleet efficiency enhancement.

Looking at a broad customer base like Exxon,

Chevron, Aramco, BP, Sinopec etc… we are

proud to see that our XHQ solution helps our

clients monitor a significant percentage of the

world’s oil and gas production,” says Vezvaei.

“Data is rising in importance significantly.

Smart analysis of real-time data is an

internal source of profitability for oil and gas

companies, which is why we call it the era

of ‘Data to the Bottom Line’. It’s no longer

just about how you can further push your

equipment; rather how you can better capture,

analyse and command your entire value chain

based on the real-time picture you have,”

Vezvaei says.

The smart acquisition and management of

real time data is also the bridge to the digital

oilfield, which is becoming more and more

relevant in the region.

“Things are rapidly changing here and we

believe that for the years to come, the Middle

East will see fields becoming smarter and

increasingly utilising the real time data to

enhance the financial aspects,” he remarks.

Middle East ambitions “There is great opportunity in the region,”

says Vezvaei. “For Siemens, our growth sectors

are EOR, digital oilfields, water solutions and

unconventional gas, which will eventually

emerge here in the region.”

In terms of markets Vezvaei sees huge

growth potential in Iraq, which he says has

excellent prospects. Saudi Arabia, Oman,

Kuwait and UAE have also contributed as key

players to the growing oil and gas industry in

the region, according to Vezvaei.

“We have been successful in Iraq in the

last couple of years. We have extended

our support to the Ministry of Oil and all

its establishments as a technology partner

providing customised solutions and of course

reliable equipment,” he notes.

Vezvaei reveals that Siemens has entered

into discussions regarding a packaging and

service facility along with a training centre

to be built in Iraq, which will support Iraqi

talent development, local employment, and

knowledge transfer.

Ali Vezvaei, Siemens Energy Oil and Gas