How has the role of Upstream Solutions in the Kuwaiti oil and gas industry evolved in the past few years?

During the past few years, Upstream Solutions has taken a proactive approach in response to the market crisis caused by the Covid-19 pandemic. While many companies diverted their activities and investments towards other sectors, Upstream Solutions remained committed to the oil and gas industry. They continued to invest and support their customers, convinced that oil activities would pick up again. One significant development was their involvement in the Electrical Submersible Pump (ESP) Contract launched by KOC, one of the most significant contracts in the Middle East. Upstream Solutions supported the awardees by supplying them with downhole and surface equipment, ensuring they were ready to start operations when the contracts kicked off. This contribution was crucial, especially considering the supply chain disruptions caused by the pandemic. Upstream Solutions facilitated the participation of international companies in the Kuwait oil market, including RMSpumptools, JHK, Unico, Prysmian Group, Magnetron, and Rexonics Ultrasonics AG.

What is Upstream Solutions’ approach to technological innovation?

Upstream Solutions recognizes the increasing global energy demand as the population continues to grow. They believe that fossil fuels cannot be removed from the energy equation due to their environmental impact. Instead, the industry should focus on optimizing operations through new and innovative techniques and solutions. Upstream Solutions emphasizes the importance of deploying cutting-edge technologies to reduce carbon emissions while increasing energy production. They partnered with Rexonics in 2019 to capitalize on innovative solutions. In 2023, they are particularly focused on the Rexonics technology, which optimizes oil well stimulation. Upstream Solutions and Rexonics aim to bring this technology to the Middle East, targeting testing in wells across the region in the near future.

What differentiates Upstream Solutions’ technology from conventional well-stimulation methods?

Upstream Solutions’ technology, provided by Rexonics, is a high-powered ultrasonic stimulation technology for oil wells. It offers a more efficient and cost-effective oil recovery process without any environmental risks. The technology can unclog the perforation zone and remove contaminants without the need for acids or chemicals, resulting in no pollution or water contamination. By using a wireline-conveyed, high-power ultrasound device, precise treatments can be performed at predefined locations in the wellbore, with immediate results. The technology offers advantages such as rigless operations, simple logistics, reduced downtime (maximum of a couple of hours), and the potential to work without shutting down the well. Compared to conventional recovery methods that can take weeks to be effective, Upstream Solutions’ technology significantly reduces downtime and offers a more efficient solution.

What impact can Upstream Solutions’ technology have on the Middle East’s oil industry?

The Rexonics technology provided by Upstream Solutions has been successfully tested in various locations worldwide and is well-suited for optimizing mature fields with old wells, which is common in the Middle East. Over time, wells develop blockages that impede oil flow, and the Rexonics technology can effectively remove these blockages and restore the well’s productivity. By applying this technology, existing wells can be enhanced, avoiding the need for drilling new wells and the associated costs. The technology’s success in other regions makes it a promising solution for the Middle East’s oil industry, enabling increased productivity and cost savings.

What role does Upstream Solutions play in Kuwait’s plan to ramp up oil production?

Upstream Solutions plays a significant role in Kuwait’s plan to increase oil production to 4 million barrels per day (bopd) by 2040. As one of the leading oil players in the world, Kuwait has a responsibility to supply oil globally. This goal opens up opportunities along the entire value chain, from upstream activities like exploration, drilling, and production to downstream operations. Upstream Solutions is well-positioned to seize these opportunities and contribute to Kuwait’s oil production expansion. With a strong focus on artificial lift solutions, Upstream Solutions addresses the increasing demand for artificial lifts in Kuwait and the wider GCC area. Their investments in this segment aim to improve the quality of products and enhance efficiency and run life.

What is Upstream Solutions’ strategy for geographical expansion?

Upstream Solutions has been actively pursuing geographical expansion to capitalize on market opportunities. They recently opened their base in Iraq, expecting it to become their second main hub in the region after Kuwait. By establishing their presence in the Rumaila oil field in southern Iraq, they aim to support their customers in the country. Additionally, they are in the process of setting up operations in the UAE and continuing their work in Sudan. The expansion aligns with their strategy to further deploy the Rexonics technology and explore new market possibilities in the upstream sector. Negotiations with potential business partners in Algeria have started, and they are also exploring opportunities in Libya. Upstream Solutions aims to cover the whole MENA region gradually, investing wisely and introducing innovative technologies that reduce the industry’s carbon footprint.