The US engineering giant Fluor is set to double its business from the Middle East within two years as it increases its focus on the energy sector to compensate for a slowdown in mining.
"Mining [is] slowing a bit, which allows us to pull our resources back into oil and gas, in which we see significant growth next year and in 2014," said David Seaton, the Fluor chief executive.
"The oil and gas business […] has been a key growth engine for many years. It's starting to create the same trajectory as happened in the last cycle," he added.
The Middle East will be a major growth market for the largest listed American engineering firm, Mr Seaton believes.
Fluor is heavily involved in Abu Dhabi's efforts to increase its gas supply, and has a presence in Saudi Arabia, Qatar and Iraq. The region constituted about 40 per cent of the firm's business five years ago, before the company reduced its Middle East presence by about half.
"My guess is we should be getting back in at 40 per cent in the next couple of years," said Mr Seaton.
The exploitation of shale rock reservoirs has led to a boom in natural gas production in North America, and new production techniques are similarly increasing oil production.
Fluor is benefiting from the boom, and the company is active on projects with a potential capital expenditure of US$30 billion (Dh110.19bn) in the Gulf coast of the United States alone, said Mr Seaton.
Similar to the US, unconventional sources will play a big role in expanding supply of gas in particular.
In the UAE, the majority of additional gas will be won from unconventional sources, such as the massive Shah sour gasfield, where gas will have to be stripped of its heavy sulphur content once production starts in 2014. Fluor is providing project management expertise to the project.
Mr Seaton, who spoke at the Gulf Petrochemicals & Chemicals Association's annual conference in Dubai yesterday, also believes that the region's petrochemical industry will recover from a price slump, once the global economy has picked up.
"Obviously we need China to stabilise, to change to more of a growth story for petrochemicals," he said.
A key project for Fluor in the region is its work for ExxonMobil in the West Qurna-1 oil megafield in Iraq.
Exxon recently announced it is selling its stake in the field after infuriating the Iraqi government over its decision to enter exploration agreements with the Kurdish regional government (KRG). Baghdad does not recognise oil contracts with the KRG, and has a policy of blacklisting companies active in Kurdistan.
The central government is reportedly trying to get Russia's Lukoil and the China National Petroleum Corporation to replace Exxon in West Qurna-1, and Mr Seaton is hopeful that his company can remain active in the field in spite of changing operatorship.
The chief executive does not rule out following Exxon into Kurdistan either.
"I'd like to continue in West Qurna. I think Basra is a great place, and I see great opportunities long-term in Iraq, both in terms of southern Iraq as well as Kurdistan," he said.
Mr Seaton is unconcerned about the success of Asian competitors in the region, even as Korean engineering and construction firms in particular have made striking inroads in the energy and power sectors.
"I feel quite comfortable competing against the Asian competitors. They don't bother me at all."
[ fneuhof@thenational.ae ]
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
SPECS
Engine: 4.0-litre twin-turbo V8
Power: 750hp at 7,500rpm
Torque: 800Nm at 5,500rpm
Transmission: 7 Speed dual-clutch auto
Top speed: 332kph
Fuel consumption: 12.2L/100km
On sale: Year end
Price: From Dh1,430,000 (coupe); From Dh1,566,000 (Spider)
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
Match info
Uefa Champions League Group C
Liverpool v Napoli, midnight
Signs of heat stroke
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- Body temperature above 39°C
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Bridgerton season three - part one
Directors: Various
Starring: Nicola Coughlan, Luke Newton, Jonathan Bailey
Rating: 3/5
Diriyah project at a glance
- Diriyah’s 1.9km King Salman Boulevard, a Parisian Champs-Elysees-inspired avenue, is scheduled for completion in 2028
- The Royal Diriyah Opera House is expected to be completed in four years
- Diriyah’s first of 42 hotels, the Bab Samhan hotel, will open in the first quarter of 2024
- On completion in 2030, the Diriyah project is forecast to accommodate more than 100,000 people
- The $63.2 billion Diriyah project will contribute $7.2 billion to the kingdom’s GDP
- It will create more than 178,000 jobs and aims to attract more than 50 million visits a year
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The Saudi Cup race card
1 The Jockey Club Local Handicap (TB) 1,800m (Dirt) $500,000
2 The Riyadh Dirt Sprint (TB) 1,200m (D) $1.500,000
3 The 1351 Turf Sprint 1,351m (Turf) $1,000,000
4 The Saudi Derby (TB) 1600m (D) $800,000
5 The Neom Turf Cup (TB) 2,100m (T) $1,000,000
6 The Obaiya Arabian Classic (PB) 2,000m (D) $1,900,000
7 The Red Sea Turf Handicap (TB) 3,000m (T) $2,500,000
8 The Saudi Cup (TB) 1,800m (D) $20,000,000
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90+4')
Red card: Rodrigo Bentancur (Juventus)
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The biog
Occupation: Key marker and auto electrician
Hometown: Ghazala, Syria
Date of arrival in Abu Dhabi: May 15, 1978
Family: 11 siblings, a wife, three sons and one daughter
Favourite place in UAE: Abu Dhabi
Favourite hobby: I like to do a mix of things, like listening to poetry for example.
Favourite Syrian artist: Sabah Fakhri, a tenor from Aleppo
Favourite food: fresh fish
Jawab Iteiqal
Director: Mohamed Sammy
Starring: Mohamed Ramadan, Ayad Nasaar, Mohamed Adel and Sabry Fawaz
2 stars
MATCH INFO
South Africa 66 (Tries: De Allende, Nkosi, Reinach (3), Gelant, Steyn, Brits, Willemse; Cons: Jantjies 8)
Canada 7 (Tries: Heaton; Cons: Nelson)
THE SPECS – Honda CR-V Touring AWD
Engine: 2.4-litre 4-cylinder
Power: 184hp at 6,400rpm
Torque: 244Nm at 3,900rpm
Transmission: Continuously Variable Transmission (CVT)
0-100kmh in 9.4 seconds
Top speed: 202kmh
Fuel consumption: 6.8L/100km
Price: From Dh122,900
Top 10 most competitive economies
1. Singapore
2. Switzerland
3. Denmark
4. Ireland
5. Hong Kong
6. Sweden
7. UAE
8. Taiwan
9. Netherlands
10. Norway
THE SWIMMERS
Director: Sally El-Hosaini
Stars: Nathalie Issa, Manal Issa, Ahmed Malek and Ali Suliman
Rating: 4/5
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”