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The ADIPEC Report – Lower Oil Price Renews Focus on Middle East

The 2014 Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) was the largest in the event’s history. It attracted more than 2,000 exhibiting companies, 60,000-plus delegates and representatives from 98 countries.

ADIPEC is firmly established as the Middle East’s premier event of its kind, on a par with OTC in Houston and Offshore Europe in Aberdeen, and this was emphasized by the scale and calibre of the event held in the UAE’s capital last month.

ADIPEC re-emphasized that the Middle East and North Africa (MENA) region contains more than half of the world’s proven conventional oil reserves and 42 percent of the world’s proven conventional gas reserves – making it one of the world’s most significant energy markets.

The decline in the oil price in the fourth quarter of the year has served to focus the global industry on the Middle East as it represents a market with lower production costs and a significant pipeline of capital projects either underway or in planning. There are major opportunities across the region for international oil companies, independent exploration and production companies, EPC contractors and suppliers of specialist technologies and know-how.

Key themes at ADIPEC, and other industry events during the year, were the price of oil, the need to deliver affordable energy, and the increasing demand within the sector for technology and innovation to overcome the challenges faced in exploration and production.

Hugh Fraser, managing partner of Andrews Kurth’s Dubai office, said: “The growth of ADIPEC continues to reflect the significance of the Middle East to the global energy market. The current oil price position has served to refocus many minds on the region and we are seeing a rebalancing of global industry priorities away from higher cost environments.

“While there may be some slowing up of developments because of the lower oil price, in reality the costs of production in the region are some of the lowest in the world and it is shale gas, heavy oil and deepwater projects in other parts of the globe which will suffer most from the lower oil price.

“We have seen a major uplift in interest from clients targeting business in the Middle East since October and we expect to see this continue during 2015 as the supply chain seeks out new opportunities for its people and technologies.”

Copyright © 2020, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume V, Number 7



About this Author

Jeff C. Dodd, Andrews Kurth Law Firm, Securities Attorney

Corporate, Securities and Corporate Finance: experience in diverse domestic and international corporate transactions, including representing issuers and underwriters (and investment bankers) in connection with public and private securities offerings (including IPOs and secondary offerings); representing venture capital and other investment groups or funds, as well as portfolio companies, in private debt and equity financing transactions; representing various participants (buyers, sellers, financing sources) in merger and acquisition and change of control transactions, public...

Jane Jiang, Energy Attorney, Andrews Kurth Law Firm

Jane’s experience mainly involves international business development and multinational project execution primarily in the oil and gas industry. In the four years when she was in-house counsel for the largest national oil and gas company in China, she participated in and provided legal services for over 80 different oil and gas projects, including surface facilities, offshore operations, drilling, seismic, EPCC, international trading, etc., in more than 20 countries. She has also been involved in structuring transactions, tax planning and the financing of many significant projects. She is...

Jerry Jie Li, Energy Attorney, Andrews Kurth Law Firm

For 11 years Jerry handled, managed and supervised certain of legal affairs of China’s largest national oil and gas company. His experience involves international business development primarily in the oil and gas industry. He has worked in 17 countries and has been involved in more than 600 oil and gas projects located in over 50 countries. His experience includes M&A, E&P investment, drilling, seismic, technical service, surface facilities engineering service, offshore operations, EPCC turnkey and trading aspects of the oil and gas industry. Jerry received his Juris Master Degree...