Speech by Second Minister S Iswaran at Launch Ceremony for the NUS Petroleum Engineering Professorships Programme and Multiphase Flowloop Facility at NUS Engineering Auditorium

Professor Tan Chorh Chuan, 

President, National University of Singapore,

Distinguished guests,

Ladies and gentlemen,

Good morning.

Opening remarks

It gives me great pleasure to join you today for the Launch of the NUS Petroleum Engineering Professorships Programme, and the Multiphase Flowloop facility.  I congratulate NUS on the introduction of the new Programme, and the opening of the new facility.

Strong projected growth in global and regional demand for oil and gas

The Petroleum Engineering Professorships Programme and the Multiphase Flowloop facility will enhance Singapore’s ability to seize growth opportunities in the oil and gas industry.  Driven by population increase and rapid urbanization, global energy demand is expected to rise by 35% from 2010 to 2040 .  Correspondingly, global exploration and production (E&P) activities are on the rise with global spending poised to hit a record US$723 billion in 2014 .

The Asia-Pacific region will be a significant contributor to the growth in E&P activities.  Rapid population and economic growth in large countries, such as China and India, has underpinned the strong demand for energy.  At the same time, countries in the region have ramped up E&P activities, in a bid to reduce their reliance on imported energy by boosting domestic oil and gas production.  In 2012, E&P spending in the Asia-Pacific region accounted for nearly a quarter of total E&P expenditure globally ; and it is expected to grow by 36% from 2012 to 2016 .  These trends offer attractive growth prospects in the Asia-Pacific region for oil and gas equipment and services companies. 

Singapore, an ideal location for oil and gas equipment and services companies to serve the Asia-Pacific region

With our location in the heart of the Asia-Pacific, and our strong base of Science and Engineering capabilities, Singapore is well-positioned to support the growth of oil and gas equipment and services companies in the region.

Singapore is already home to leading oil and gas equipment and services companies such as Schlumberger, Halliburton, FMC Technologies and Cameron, all of whom have significant Singapore operations which serve global markets.  For instance, Singapore is home to Halliburton’s Global Headquarters for Completion Tools, and FMC’s Regional Headquarters for Asia Pacific and the Middle East.  Singapore is also Cameron’s hub in Asia for Drilling Systems Aftermarket Services.

The oil and gas equipment and services sector in Singapore has also enjoyed robust compounded annual growth of 10% since 2006, contributing over S$4 billion of manufacturing output in 2012.

Singapore is committed to supporting the continued growth of the oil and gas equipment and services sector

Over the years, Singapore has maintained its resolve to invest in new capabilities to sustain and support the oil and gas equipment and services sector.  A*STAR has worked with oil and gas companies and our institutes of higher learning to develop specialised capabilities for the sector in the areas of multiphase flow for equipment design, ruggedized electronics for downhole drilling, and advanced manufacturing technologies.

To augment R&D capabilities, we have also nurtured a pool of industry-relevant talent for the sector.  In 2012, NUS launched the Subsea Professorships Programme  to develop capabilities in subsea technologies for E & P in deeper waters and harsher environments.

The Petroleum Engineering Professorships Programme being launched today is the next step in our efforts to build R&D capabilities and talent for the industry.  As part of the Programme, NUS will introduce new course modules in Petroleum Engineering for their Masters in Offshore Technology, and partner companies in R&D projects.

The new Multiphase Flowloop will be another boost to our local R&D ecosystem.  The facility provides a platform where modelling and simulation for multiphase flow analysis can be performed by A*STAR’s Institute of High Performance Computing, coupled with experimentation and validation.  It will allow for further R&D collaboration between industry, our institutes of higher learning, and our public research institutes.  Several companies are already in talks with NUS, and I look forward to the Flowloop facility spawning more collaborative research projects between our industry partners, A*STAR and NUS.

Preparing Singaporeans for rewarding careers in the oil and gas equipment and services sector

With the Petroleum Engineering Professorships Programme and the new Multiphase Flowloop facility, our students will be well-equipped with industry-relevant knowledge and skills to pursue interesting and rewarding careers within the oil and gas sector.  It already employs over 10,000 workers and has seen consistent employment growth of 7% per year from 2007 to 2012.  Besides offering quality jobs with competitive remuneration, this sector also gives Singaporeans the opportunity to engage in high-value research and engineering activities to provide solutions for the energy industry.

Closing

In closing, I would like to congratulate NUS once again on the launch of the Petroleum Engineering Professorships Programme and the opening of your new Multiphase Flowloop facility. I encourage industry partners to deepen their collaboration with NUS and A*STAR to develop innovative solutions and nurture talent to meet the growing demand for E&P activities in this region.  Thank you.