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Special Projects

Special Project Session: Concept of Logistics Services Globally and in Oman

Speakers: Colin McKinlay, General Manager, RA Logistics; Warith Al Kharusi, Executive Director, Al Safwa Group and Partners

Logistics services play a vital role in development of all types of industries. Supply chains (logistics) are responsible for facilitating international trade worth trillions of dollars annually. In fact, there has been dramatic growth in global trade over the last two decades as countries have shifted their attention from a predominantly domestic focus to a broader and more global view. As the level of global activity has accelerated, so too has the complexity of the logistics services that are tasked with supporting these broader and more complex trade networks.

The supply chain networks have grown in popularity and having a superb global logistics services is one of the key elements for a successful company.

Ongoing innovation in logistics has been a key to enable development of global value chains. Changing parameters in manufacturing, oil industry, global sourcing, investment, technology and security requirements are compelling logistics executives to revise procurement and decision making processes.

One of the classical examples can be seen in the strategy adopted in manufacturing of “The Boeing 787 Dreamliner” by Boeing.

Logistics involved in manufacturing of “The Boeing 787 Dreamliner represents a fundamental shift in manufacturing philosophy and approach for The Boeing Company by adopting very a different supply chain process.

Boeing involved 135 structural and systems partners located across 12 countries on 5 continents in the manufacturing and delivery process of the airplane, coordinating logistics—the end-to-end supply chain across these partners was a paramount to the programme’s success.

By this act it leveraged global partners to reduce cost, speed time-to-market, and increase customer value while maintaining the highest level of safety.

This shows how Logistics can play a key role in achieving great benefits to the Company.

The concept of 3PL and 4PL logistics support has emerged in the global market and been successfully adopted in many industries. These industries have benefited and have been able to meet upcoming challenges in cost as well as deliveries to support its regular operations. However, for the upstream sector of the oil and gas industry in Oman this needs to be utilised to some extent at the grass root level. Third Party Logistics (3PL) and Fourth Party Logistics (4PL) is an evolving concept in Oman. The 3PL targets a single function, whereas the 4PL manages the entire process. In Oman many industries including oil and gas operators will benefit more if they adopt strategies of 3PL or 4PL service providers.
In Oman it is considered that after energy, logistics is the next big industry even surpassing the tourism industry. Logistics can be the game changer and one that will be instrumental in the overall development of the country.

Logistics is the business function responsible for transporting and delivering products to the right place at the right time throughout the supply chain. This has been very well supported by the Sultanate of Oman and the other GCC countries by project development of railway lines and railheads.

The Sultanate of Oman is at the cross-roads of substantial economic development and logistics will play a key role in supporting the development. The Port of Sohar is another vital development in this booming economy. It has good connectivity to Abu Dhabi, Dubai, Al Ain, Muscat and the Indian subcontinent. The biggest consumer market in the region, Saudi Arabia, can be reached directly from Sohar and the logistic companies need to utilise this facilities it to the maximum extend.

The challenge will be to build and develop infrastructure to keep pace with developments in the supply chain and logistics sectors for which the logistics companies need to support effectively.

Special Project Session: Case Studies—North American Experience on Shale Resources

Speakers: Gavin Clark, Halliburton; Jason Baihly, Subsurface Manager, Schlumberger

Over the last decade the focus on unconventional resources has increased globally. These resources are economically marginal and must be hydraulically fractured to yield commercial hydrocarbon production rates. They cannot be developed using conventional technologies, and therefore, they require unconventional drilling, completion, stimulation, and reservoir management practices. Often, the success of the projects lie how well all these disciplines are integrated to enable a thorough subsurface understanding that will drive the design of reservoir and wellbore technologies as well as surface facilities.

North American companies developing the shale resource plays have been the pioneers in the unconventional energy revolution. Many of the key technologies they have innovated like horizontal drilling, multi-stage hydraulic fracturing as well as leveraging subsurface understanding for drilling and fracturing paved the way to the improvements through knowledge transfer from shale plays to other tight reservoirs.

This session will introduce presentations showing the state of the art in developing North American Shale Resource plays in recent years. There will be a long question and answer session at the end of the presentations for an interactive discussion with the audience.