In what ways has your business model changed since the Baker Hughes-GE merger?
SOUFIANE KANOUN As a result of the merger, we are now the sole full stream service company in the world, which allows us to offer equipment, services and digital tools to the oil and gas sector. We touch all aspects of the supply chain, from upstream to downstream, which best serves our clients. The company today is even better positioned to enhance our partnerships with KPC and its subsidiaries, as well as with local players. We have a 50-year presence in Kuwait and have focused considerably on growth as well as solving our customers' challenges. We are also strong in terms of our service capabilities and constantly pursue innovative solutions that add value to our clients. We pay increasing attention to the reservoir to improve analysis and maximize production. Ultimately, our full-stream integrated approach is empowered by leveraging our technologies and partnerships with key engineering companies.
How is MEOFS adjusting its structure and activity to fit new trends?
MOHAMMAD J. ALFAWAZ Since the Emir of Kuwait issued a decree aiming for 15% of our energy mix to be from renewables, MEOFS has dedicated much of its effort to this end. In 2015, we created a renewable energy department that targets medium- and large-sized projects. We are currently working on the Dibdibah project with KNPC and on a solar steam generation plant for heavy oil extraction. We cover both upstream and downstream. About 70% of our business is upstream related, while the remainder is downstream.
To what extent can technologies reduce cost per barrel?
SK We have several technologies that help our customers optimize the drilling operations and enhance production, resulting in lower costs per barrel. We also provide digital solutions and predictive analytics to optimize the operations, predict failures, and reduce downtime. This leads to better efficiency and productivity and results in the reduction of cost per barrel. Furthermore, digitalization is about simplifying the process, and digital technology is unleashing new levels of performance by channeling the power of data. If properly collected, data enables more accurate decision-making concerning the plant and equipment and the anticipation of errors.
MJA In terms of technology, we always find it better to partner with international, reputable companies that hold IP rights for certain technologies. We work with advanced technologies, emerging technologies, and disruptive technologies that are revolutionizing the industry. Unfortunately, the oil and gas sector is a late technology adopter. However, we have been able to identify certain technologies and bring them to Kuwait. We pioneered a number of technologies in Kuwait to help with reservoir characterization and production enhancement, as well as deploying technologies to reduce down-time on assets needing maintenance by applying new techniques. In all cases, its is a matter of creating value and increasing efficiency.
What are your expectations for the year ahead?
SK We see more projects coming into play, which mean 2019 and 2020 will prove positive for the entire market. The industry has learned a lot during the down cycle and is now producing more intelligently by increasing cost-efficiency. For this reason, Kuwait is showing great interest in our fully integrated solutions. We expect strong levels of investment by KPC, most likely over USD100 billion in fulfilling its vision.
MJA The forecast for MEOFS should be in line with the growth in the economy and the oil sector; this is what we endeavor to achieve. We are looking forward to the growth opportunities at hand with the major projects and plans put forth in the oil sector. We are excited to deliver cutting-edge technology to assist projects and deploy the core values of MEOFS in the industry to ultimately help improve efficiency, create value, and reduce overall costs.