Andrews Kurth Middle East Newsletter · PDF fileThe opening of a new facility in Esbjerg by...

Andrews Kurth Middle East NewsletterThe Driving Force For Your International Business

September 2014

Welcome to the September 2014 issue of the Andrews Kurth Middle East Newsletter.

In this edition, we report on some of the industry themes that were evident during recent visits to Denmark and Norway and look forward to a number of new events in our Intelligent Energy Law series.

Scandinavia continues to be an important originator of new technology with global applications in the oil and gas industry, particularly in the field of subsea. The opening of a new facility in Esbjerg by Welltec and the recent ONS conference and exhibition in Stavanger underlined the importance of innovation to the industry.

Topics including the role of successful agency agreements, recent legal and commercial developments in relation to developing, monetising and protecting energy intellectual property and technology and how best to engage in renewable energy projects in the Middle East will be the focus for forthcoming Andrews Kurth events in Dubai and Abu Dhabi. We hope to see some of you at these events in October, November and January.

In the meantime, I hope that 2014 is proving to be a successful year for you and your team and we look forward to supporting you with intelligent energy law solutions across the Middle East.

Best regards,

Hugh Fraser, Office Managing Partner, Dubai

STRAIGHT TALK IS GOOD BUSINESS.

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Articles

Intel l igent Energy Law Insights at ADIPEC and WFES

Andrews Kurth Middle East NewsletterSeptember 2014

Andrews Kurth will be sharing intelligent energy law insights in the fields of technology and renewables in the comingmonths in Abu Dhabi when the city hosts ADIPEC in November and the World Future Energy Summit in January.

Hugh Fraser, managing partner of Andrews Kurth (Middle East) DMCC, and Houston-based partner Jeff Dodd, who chairsAndrews Kurth’s intellectual property and technology transactions group, will be delivering a seminar on recentdevelopments in relation to the acquisition, monetisation and protection of energy-related intellectual property andtechnology at ADIPEC in November.

In January, Andrews Kurth partner Mark Thurber will present on strategies for successfully bidding into and developingutility-scale renewable energy projects in the Middle East. Companies bring many tools to the table, including developmentexpertise and financial backing. Mark will explore the commercial and legal aspects of translating these tools into successfulprojects in a dynamic region that requires key differences in approach.

Hugh Fraser said: “Andrews Kurth is at the forefront of addressing the legal and commercial issues relating to theincreasingly complex technologies used in the energy industry, whether that is in oil and gas or renewables. We call thisintelligent energy law.

As energy technology continues to evolve and pushes the industry forward at record speed, clients require legal strategiesto address new market dynamics and techniques for transacting intellectual property, information and technology assets.

As part of the comprehensive approach we offer, we can help clients evaluate their approaches in light of the new energyvalue chain and create strategies for extracting value from IP and international market collaborations, ventures andtransactions.

Many of these issues will be addressed in our forthcoming seminars in Abu Dhabi, which will address many of the specificareas that companies need to consider in relation to markets in the Middle East.”

For further information on both seminars and to register your interest in attending, please contact:

Nicole Parry [email protected]

A past performance or prior result is no guarantee of a similar future result in another case or matter. Andrews Kurth is responsible for the content of thiswebsite. Andrews Kurth, the Andrews Kurth logo and Straight Talk Is Good Business are registered service marks of Andrews Kurth LLP. Andrews Kurth LLP isa Texas limited liability partnership. Andrews Kurth (UK) LLP is authorized and regulated by the Solicitors Regulation Authority of England and Wales (SRARegistration No.598542). Andrews Kurth (Middle East) DMCC is registered and licensed as a Free Zone company under the rules and regulations of DMCCA.


Articles

Innovation to the Fore as ONS Audience Looks at Middle East Oppor tunit ies


Despite the Norwegian setting, the Offshore Northern Seas (ONS) conference and exhibition in Stavanger at the end ofAugust had a strong Middle East theme.

More than 91,000 delegates and 1,300 exhibitors attended the event, which had Saudi Aramco as the main conferencesponsor and featured a series of sessions devoted to the Middle East.

Technology and innovation were also key topics of discussion and the ONS Innovation Awards recognised two primeexamples in the form of the SME Innovation Award to Fishbones and the Innovation Award to Schlumberger. Fishbones isan innovation based start-up company based on the fishbone idea—a completion method for making large numbers oflaterals simultaneously out of one wellbore. Schlumberger was recognised for its GeoSphere reservoir mapping while drillingservice. The service enables subsurface teams to get a picture of the reservoir, bringing new abilities to understandformation geometry, reservoir quality and oil water contacts.

Meanwhile, it was clear that the Middle East will be a key region for the industry for decades to come. Khalid A. Al-Falih,president and chief executive officer of Saudi Aramco, the world’s biggest oil producer, said its investments will exceed $40billion a year during the next decade. The bulk of this investment will be in upstream and increasingly from offshore, with theaim of maintaining maximum sustained oil production capacity at 12 million bpd, while also doubling gas production. Theaim is to meet the Kingdom of Saudi Arabia’s (KSA) rising energy demand with gas for power and industry and refinedproducts for transport, while also meeting the global call on its crude oil.

The Andrews Kurth team at the event included Dubai office managing partner Hugh Fraser, Houston-based partner JeffDodd, chair of Andrews Kurth’s intellectual property and technology transactions group, and Angela Ewen, head of AndrewsKurth’s business registration and licensing team for the Middle East and North Africa.

Hugh Fraser said: “Hi-tech companies in Norway clearly recognise the technology requirements across the industry in theMiddle East. More than 30 member companies of INTSOK (Norwegian Oil and Gas Partners) expressed interest in the KSAmarket, which is not surprising in light of the scale of investment over the next 10 years highlighted by Saudi Aramco duringthe conference.

Given our ongoing work with Norwegian clients, I am pleased to report Norwegian attorney Lisbeth Maier is re-joining theAndrews Kurth Middle East team on a consultancy basis and we look forward to drawing on her extensive experience ofboth markets.

As a team at ONS, we were also struck by the huge rate of innovation and opportunity within the subsea market. Theindustry has major requirements in regions from the North Sea and Gulf of Mexico to Brazil, Australia and Malaysia, butsubsea companies are also watching Red Sea initiatives with interest and see future prospects there.”



Articles

Establ ishing Successful Agency Agreements


Agency agreements can fulfill an important role in commercial strategies in countries in the Middle East, provided they areproperly established from the outset.

Andrews Kurth (Middle East) DMCC will explore this topic in a seminar staged in conjunction with the Energy IndustriesCouncil (EIC) in Dubai on 27 January 2015.

This will be the first in a series of seminars on this theme staged in world energy capitals by Andrews Kurth in 2015. Thehost cities will include Aberdeen, Esbjerg, Houston and Stavanger.

The seminar brings together over 25 years of experience in establishing, structuring, managing and winding up agencyagreements in the international energy sector. It is aimed at directors, general managers, international businessdevelopment managers and in-house counsel, as well as managers with responsibility for established agency agreementsthat are either non-performing or contentious.

The full-day seminar has been specifically designed to transfer know-how and expertise on how to successfully set upagency agreements, maintain their performance, address underperformance and end them, when necessary or appropriate.

Divided into four sessions, the seminar will address issues including: appointing agents, developing agency networks, andhow to conduct effective due diligence; key commercial terms and avoiding the pitfalls of over-riding statutory terms andconditions; managing and resolving disputes with agents and terminating agency agreements with damage limitation; andcase studies and examples of key issues influencing success and failure.

Andrews Kurth (Middle East) DMCC managing partner Hugh Fraser said: “When they work well, agency agreements canassist in driving sales on a cost-effective basis across a range of territories. However, failed agency agreements can result inexclusion from key sales territories, compensation claims and impounding of receivables and equipment.

“This seminar will provide a valuable insight into how to make these agreements work for you and is the first in a series ofevents that we will roll out across global energy capitals in the coming months.”

The Successful Agency Agreements seminar will run from 9:30 to 16:30 on 27 January 2015 at International House, AddiyarBuilding, Sheikh Zayed Road, Dubai. For further information and booking, contact the EIC on +971.4.299.3945.



Articles

Danish Well Intervention Technology Showcased in Esbjerg


The launch of a new facility in Denmark by Welltec at the end of August served to underline the role that technology isplaying in enabling the efficient extraction of hydrocarbons.

Andrews Kurth (Middle East) DMCC managing partner Hugh Fraser and attorney Stine Thorup were in the Danish offshorecapital Esbjerg for the event.

Founded in Denmark in 1994, Welltec currently has subsidiaries in more than 29 countries and 1,000 employees. In 2013,revenue was $321 million. Its technology—including the Well Tractor—has consolidated it as a world leader withinlightweight and tractor based well intervention solutions.

The 77,500 square foot transformation center in Esbjerg will produce Welltec’s expanding fleet of unique completionproducts, including the Welltec Annular Barrier (WAB). The WAB is a fundamental part of its Flex-Well concept which opensup new ways of integrating well design and interventions. With the Flex-Well concept it is possible for operators to designtheir wells to achieve optimal maintenance and production for the life of the well.

“The international reach and relevance of Welltec’s products was reflected in the range of attendees from international oilcompanies in Esbjerg for the launch of the transformation center. The event and Welltec’s success story over 20 years serveto underline the role that North Sea origin technology companies have in recovery around the world,” said Stine Thorup.

“Such technology will also play a critical role in the recovery of Denmark’s own oil and gas reserves, which are currentlysubject to the seventh Danish licensing round. With the application period due to end in mid-October, it is interesting to notethat subsequent rounds are set to follow a standardized timetable.

The Danish sector of the North Sea is a mature area with a well-developed infrastructure, but still holds exploration potential.To allow the existing infrastructure to be used in connection with the development of future discoveries and to givecompanies more predictability about when they can apply for unlicensed areas, the Danish Energy Agency has stated thatlicensing rounds following the seventh round will be held at roughly one-year intervals.”

The application phase of the seventh licensing round closes on 20 October 2014.


Upcoming Events

We are pleased to announce that Andrews Kurth will be attending the following upcoming events. If you have plans to be at any of these conferences, we would be delighted to meet with you. If you would like to meet with us or have any questions, please contact [email protected].

• Deep Offshore Technology Conference Aberdeen, Scotland (14-16 October 2014)

• Offshore Technology Days Exhibition and Conference Bergen, Norway (14-16 October 2014)

• Offshore Energy Conference Amsterdam, The Netherlands (27-29 October 2014)

• Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC 2014) Abu Dhabi, United Arab Emirates (10-13 November 2014) Please visit Andrews Kurth at booth 8140E.

• World Future Energy Summit Abu Dhabi, United Arab Emirates (19-22 January 2015)

• Energy Industries Council (EIC) Training “Successful Agency Agreements” Dubai, United Arab Emirates (27 January 2015)

STRAIGHT TALK IS GOOD BUSINESS.

Copyright © 2014 Andrews Kurth (Middle East) DMCC. Andrews Kurth, the Andrews Kurth logo and Straight Talk Is Good Business are registered service marks of Andrews Kurth LLP. All Rights Reserved. This brochure has been prepared for informational purposes only and does not constitute legal counsel. This information is not intended to create (and receipt of it does not constitute) a lawyer-client relationship. Readers should not act on this information without seeking professional counsel. A past performance or prior result is no guarantee of a similar future result in another case or matter. Andrews Kurth (Middle East) DMCC is registered and licensed as a Free Zone company under the rules and regulations of DMCCA. Andrews Kurth (UK) LLP is authorized and regulated by the Solicitors Regulation Authority of England and Wales (SRA Registration No.598542). Andrews Kurth LLP is a Texas limited liability partnership. Attorney Advertising. 14323

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