First Word: Shell in the Middle East

Any list of key challenges would almost certainly include the volume and complexity of new projects, demands for higher product quality and environmental standards, particularly with regard to CO2 [carbon dioxide] management, and last, but by no means least, continuous business improvement from current operations.

Each of these challenges has its own unique issues to be managed, each impacts on the other and, together, they will make it another very exciting year for us all.

The Middle East is currently experiencing exceptional levels of investment in oil, gas and petrochemical projects, as well as unprecedented expenditure in a wide range of other industrial sectors and on national infrastructures. Funded by recent high oil prices, drivers for these investments remain the need to achieve increased economic diversity and the provision of greater employment opportunities for growing populations.

Current high levels of industrial development are, of course, not restricted to the Middle East. With its epicentre in Asia, global growth also continues at historically high levels. The direct consequences of the increasingly global economy is an enormous demand for project resources, ranging from expertise in the planning and execution of major projects through to the availability of raw materials and equipment. These all contribute to the exponential increases in project costs, project risk and a significant increase in the mobility of experienced staff.

In parallel, those of us in the oil, gas and petrochemical industries are increasingly aware of the growing social, economic and environmental concerns for the more efficient use of energy, cleaner fuels and overall better management of CO2. In response, industry is setting ever higher standards and embarking on more projects to implement new technologies which meet the specifications required for sustainable development in the region.

Furthermore, whilst not regarded as providing quite the same excitement as new projects, as we ‘build new’ and ‘upgrade’ we still have existing operations to run, with ever-present demands for compliance, business improvement and above all, of course, safest possible operation. The search for continuous improvement or, in some cases, the need to achieve breakthrough performance to remain competitive, is difficult enough, but with management focus and top talent being attracted, or re-directed, towards new projects, the task becomes all the more difficult.

This is the exciting background to 2007, in which Royal Dutch Shell will be celebrating the anniversary of its first 100 years of partnership between Royal Dutch Petroleum and Shell Transport and Trading.

In 2007 Shell Global Solutions will also move towards its first decade of working with clients outside Shell. Starting out in early 1998 with only 1,500 people, today Shell Global Solutions has a worldwide team of over 5,000 and that team is growing. From the original Technical Service Agreements in place with Shell and its joint venture companies, Shell Global Solutions is now also working directly with National Oil Companies and major companies in and outside the oil, gas and petrochemical industries, around the world.

In order to get closer to our customer base in the region, Shell Global Solutions established a Middle East office in Dubai in 2004, which was strengthened last year by the team from CRI Criterion.

In addition to continuing the dedicated support to Shell and its joint venture businesses, especially on such business critical Shell projects as the Pearl GTL [Gas-to-Liquids] Project in Qatar, Shell Global Solutions is also committed to continued growth and the dedication of additional resources to support our Middle East clients outside Shell.

Through our on-site teams already delivering in the field and our team in Dubai, we will continue to explore with our clients how best to allocate our technical and human resources to help meet their priority challenges and to help co-create tailored solutions which add tangible and significant value to their businesses.

With my personal association in the Middle East starting in Saudi Arabia, 14 years ago, it has been very rewarding to witness the region’s development. It has been equally pleasing to be a part of the growing role Shell Global Solutions has been able to play in helping Shell and our regional partners achieve their goals – and I look forward to even closer co-operation over the years ahead.