Abu Dhabi oil show to see Dh4bn deals

An international oil exhibition opening in Abu Dhabi at the start of next month is expected to generate deals worth nearly Dhfour billion to demonstrate its position as one of the largest oil events in the world, its director said on Tuesday.

The Abu Dhabi International Petroleum Exhibition (ADIPEC 2010) will attract more than 1,500 companies from 59 countries and China is set to be the largest participant in the November 1-4 event, reflecting its growing reliance on the region’s oil, Hifazat Ahmad said in an interview with Emirates 24/7 Over 40,000 delegates are expected to come to the four-day show and conference and this illustrates the growing significance of the region, making ADIPEC a “must attend” event, Ahmad said.

Q: How do you rank ADIPEC among the world’s oil events? Is it the biggest or one of the biggest?

Ahmad: ADIPEC is viewed as the third biggest industry event for the global energy industry, and certainly the largest outside of North America. 

The Middle East is increasingly becoming a hub for the industry (boasting two thirds of the world’s oil and gas reserves) making ADIPEC a must-attend event as a place to do business and to be amid the world’s heavyweights for major business deals, keeping abreast of the industry’s most topical issues and keep updated with the latest news and innovations.

Q: Do you expect this year’s ADIPEC to be the biggest ever and bigger than the record 2009 event despite the global downturn and slowdown in project activity in the region?

Ahmad: We have over 1,500 exhibitors from 59 countries exhibiting at ADIPEC this year and the feedback from the industry is very positive. 

The price of oil has stabilised around an agreeable $70-80 a barrel and, in turn, budgets have begun to increase, activity has picked up and confidence in the market has continued to grow. 

The Middle East has fared well and its incline out of the recession has been quicker than other oil-rich areas such as the North Sea, making the region even more appealing to the oil and gas community. As regional interest grows ADIPEC continues to prove to be a primary opportunity to investigate the market and instigate and nurture important relationships.

Q: Will the show include new oil and gas technology?

Ahmad: Many of our exhibitors will be showcasing new technology at the event and regard ADIPEC as the ideal platform on which to launch such new additions to their portfolio.

The event provides an opportunity for exhibitors to showcase the most up to date technology and services, with over 40,000 professionals from 89 countries attending over the four-day event there is a multitude of opportunities to network, promote and discuss industry views and best practice.

ADIPEC prides itself on being an innovation showcase and this year will be no different. In fact we are expecting even bigger things this year as companies are keen to showcase their latest innovations which could add value in this burgeoning market

Q: Do you think Gulf oil projects are slowing down because of global demand uncertainty?

Ahmad: Activity in the Gulf oil and gas market is healthy and as in other traditionally oil-rich parts of the world such as the North Sea begin to see their supplies decrease there is a consistent rise in the number of companies looking to do business in the Middle East.   In a recent report from the Abu Dhabi Department of Economic Development (DED) it highlighted that the UAE will be increasing its oil production capacity to 3.5 million barrels per day (bpd) by 2018 from 2.7 million bpd.

The report from DED also estimated the UAE’s proven oil reserves at 98.2 billion barrels, ranking the seventh largest in the world. 

This is just one of the recent reports that highlight the increase in activity in the region to accommodate the growth in demand on the resources.

Q: Which country is the largest participant in the show and what platform does the show provide for the participants??

Ahmad: China is the largest participant at this year’s event, highlighting the growing relationship between China and the region.

China and Iran are very close trade partners, with China looking to Iranian crude and Iran increasingly in demand of Chinese expertise. As 58% of China’s oil imports come from the region (and as the world’s second largest energy consuming nation), these strong ties are expected to significantly develop.

Other key oil and gas players US, Norway and UK have all increased presence at this year’s show signifying the weight and importance of the event on the world energy industry calendar.

As a single four-day event it is anticipated to generate more than Dhfour billion in industry deals this year. In 2010, exhibitors have been quick to fight for prominent placement, with the event totally selling out eight months in advance.
ADIPEC’s latest research conclusively shows that ADIPEC is considered a ‘must attend’ event on the global oil and gas industry calendar.

Survey respondents attest that it is an essential event to keep abreast of the future direction of the oil and gas industry and a place where pivotal deals are done and key strategies are developed from such an important trade gathering. 95 per cent of respondents stated that they return for each ADIPEC event due to its high value to their companies.”

A majority of key decision makers are particularly focussed this year on utilising ADIPEC to meet key business targets to maximize business and industry growth.

Respondents highlighted direct interest in production (39%), valves and actuators (36%), drilling (34%) and pipes and fittings (34%). Considering attendance figures, this potentially means a business capture rate of more than 16,000 people directly interested in viewing and purchasing any one of these product groups and services.

More specifically, of the high percentage of respondents set on making purchases at the show, ranking highest on their shopping lists is: electrical/electronic equipment (83%), instruments and controls (82%), pipes & fittings (82%),
valves and actuators (82%) and; tools (82%).

On average, respondents were interested in 6 product/service areas.

Overall 68% of the respondents who were likely to attend ADIPEC said they would be looking for suppliers. This includes 28% who said they would be looking for suppliers for a current project, 43% who will be looking for suppliers for a future project.

Both the organisers and attendees also agree that being a part of ADIPEC is the most efficient way to see existing suppliers and evaluate products, and that the event offers the widest selection of new innovations.

Seventy five percent of those industry people surveyed also said that they would attend to view exhibitor stands, with more than half of those attending hoping to walk the floor to establish meetings with potential clients, suppliers, and industry colleagues.

There are a number of opportunities for companies and individuals to maximise their presence at the event, including the conference, technical field trips, as well as the organised social events: the ADIPEC Golf Day, the DMS Insight! Extravaganza, the ADIPEC Awards, the exhibitor party, where everyone can relax and networking in a more informal atmosphere.

Q: Can you confirm how many companies are taking part in the show and whether there is any exciting product or topic to be at the event?

Ahmad: Over 40,000 regional and international professionals including 1,500 exhibitors from 59 countries will be take part in the four-day event. In regards to topics, day one of the official Technical Conference will feature an executive plenary session debating one of the industry’s current hot topics, ‘Producing Carbon in a Low Carbon Era,’ with influential professionals taking part from Schlumberger, Exxon Mobil, BP and Total. 

The first day will also include sessions on New Organisational Capabilities, Energy Efficiency and Emissions Management, Flow Assurance, Exploration and Reservoir Geology, Fractured Reservoirs and Bits and Hole Opening.

Day two of the conference will be led by the plenary sessions Technology & Innovation in the Energy Sector and New Frontier Challenges. 

Specialist speakers from Weatherford, Exxon Mobil, Baker Hughes, Schlumberger and BP will present individually as part of the plenary, which will then be followed by sessions including EOR Beyond the Next Decades,

Technology to Reduce Environmental Footprint, Integrated Facilities Optimisation Development Optimisation I, Artificial Lift, Seismic Acquisition and Processing and Intelligent Energy and Future Operations.

Q: Any oil ministers coming to the event?? Who and how many??

Ahmad: We are anticipating various GCC ministers and many international political heads.  World oil nations hold ADIPEC in high esteem so we are sure there will be many of the major names in the business during the course of the four-day event.

Q: Finally, can you provide a brief background on the event? 

Ahmad: The bi-annual event is now in its 14th year and has doubled in size and exhibitor demand since 2006 to now encompass the whole of the mammoth Abu Dhabi National Exhibition Centre (ADNEC) as a premium exhibition space, plus an extensive outdoor area for equipment and machinery. 

ADIPEC presents a platform for the international oil and gas professionals to come together at what is becoming the hub of the industry, to discuss, debate, network and to do high-level deals to move the industry forward. 

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