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Industry Breakfast Session

Financing the Change

Tuesday, 12 March, 0800–1000

Hall 2

Speaker: H.E. Abdullatif A. Al-Othman, Governor and Chairman of the Board of Directors, SAGIA

Session Moderator: To be confirmed

Some analysts foresee that the oil industry will spend around 15 trillion dollars during the coming 10 years to meet the expected future oil and gas demand. They further estimate that oil and gas reserves additions from recovery enhancement will most likely supersede the additions from grass root exploration. The planned breakfast session shall address in focus the following subjects:

What are the main changes that we expect to see during the coming decade?
Who will develop the strategies and drive their execution?
How best can these changes be managed and financed?

What?

  • Increasing focus on enhancing recovery from oil and gas producing assets
  • Increasing focus on hydrocarbon production from tight, deep and unconventional reservoirs
  • Dealing with business uncertainties specially those linked to future oil and gas demand and pricing
  • Increasing environmental awareness and thus environmental control and constrains
  • Cost and risk attached to the incremental development barrels will be progressively higher than current levels
  • New financing models need to be developed to encourage the participation of the public
  • Technological advancement and innovative thinking will be the driving force for achieving all above

Who?

  • Host governments to either directly finance or make the necessary changes to enable and encourage investors' participation
  • International and independent oil companies will be the main drivers for implementing these inevitable changes
  • Service companies will be required to align their research and development functions to the requirements of the end users and may also find merits in forming alliances with oil companies to shoulder some risk for bigger rewards
  • Investment institutions and banks will need to digest and address the future financing requirements of the oil and gas industry and develop some innovative financial solutions to meet the enormous funding requirements
  • The general public shall be encouraged to participate in financing at least some of the future energy projects

How?

  • The relationship between any two or more parties of the above stakeholders will mandate introducing innovative business solutions for managing risks, ensuring growth and sustaining success
  • A dedicated effort must be made to first understand the strengths and weaknesses of the currently used models such as EPSAs, DPSAs, services and buy-back agreements, etc., to assess their applicability for meeting the business challenges of the anticipated transformation
  • Design and develop additional business solutions to encourage collaboration between the various parties and to build the momentum for financing and managing the foreseen changes

 

H.E. ABDULLATIF A. AL-OTHMAN

 

 


H.E. Abdullatif A. Al-Othman

Governor and Chairman of the Board of Directors SAGIA

HE Abdullatif A. Al-Othman was appointed as SAGIA Governor in 18th of May 2012.

Al-Othman is a 1979 graduate of KFUPM with a BA in civil engineering. In addition, he earned his master's degree in business administration from the Massachusetts Institute of Technology (MIT) as a Sloan Fellow in 1998.

Al-Othman began his career with Saudi Aramco in March 1981 as an engineer in Engineering and Project Management. Throughout the 1980s, Al-Othman worked as an engineer on the Gas Gathering Project, Phase II, the Ras Tanura Refinery Modernization Project, the Qasim Refinery Project, the Southwest Refinery Project, and the Ras Tanura and Terminal Projects.

In 1990, he was promoted to senior project engineer in the Marjan Completion Division and worked in project management until 1994.

From 1994 to 1999, Al-Othman served in staff support functions in Engineering and Project Management, including the Total Quality Management Program. He also was manager of Resource Planning and acting manager of Southern Area Projects.

From 1994 to 1999, Al-Othman served in staff support functions in Engineering and Project Management, including the Total Quality Management Program. He also was manager of Resource Planning and acting manager of Southern Area Projects.

In February 2001, Al-Othman moved to Crude Oil Sales and Marketing as manager. In June 2001, he was named executive director of Saudi Aramco Affairs and was appointed vice president of Saudi Aramco Affairs in September 2001.

In 2003, Al-Othman was named vice president of Finance then was later named senior vice president of Finance, in May 2005.

Al-Othman served as president for the Project Management Institute (PMI) Arabian Gulf Chapter and was a member of the International Association of Energy Economics.