Oil and Gas Innovation Autumn 2015

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Oil and Gas

INNOVATION Business Information. Industry Solutions.

Autumn 2015 £19.95 €28.95 $31.95

Industry Urged Not to Compromise on Safety at Low Oil Prices

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Industry Urged Not to Compromise on Safety at Low Oil Prices

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CONTENTS COVER STORIES & SPECIALS

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ADIPEC Special Report

As an official media partner, Oil and Gas Innovation would like to present the ADIPEC delegation and community and in depth review of some of the most innovative products on display at the show, plus a few other reports in tune with the show. Oerlikon Metco Berg Chilling Systems

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Keeping Your Finger on the Pulse

CAMO lets us in on how they have helped saved companies millions of dollars through improved process control, and helped others develop best-selling products. We delve into all of that plus their new exciting product launch of The UnscramblerÂŽ X software suite.

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Don’t Get Weighed Down

The results are in: more and more companies need reliable and often customized solutions to solve their processes. Eilersen Electric A/S specializes in offering both robust weighing systems and customized weighing solutions based on the patented digital load cell technology.

INDUSTRY NEWS Europe

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North America Africa

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Asia Pacific MENA

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EXPLORATION & PRODUCTION Statoil: More Gas Recovered

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Operator Statoil announces two new giant compressors that started up on the Troll A platform this month will help increase gas recovery by 83 billion cubic metres. The occasion attracted a platform visit from EEA and EU affairs minister Vidar Helgesen.

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Student optimising operation of a bioethanol pilot plant

Humber Bridge

University of Hull

Be inspired… A city of culture, industry, and bright futures awaits. Engineer the best route for your future. Be inspired in Hull. MSc Petroleum, Oil & Gas: Chemical Engineering Technology MSc Petroleum, Oil & Gas: Chemical Engineering Management Integrates important, current and employer relevant themes and enables students to acquire knowledge and skills across a wide range of appropriate topics for petroleum, oil and gas technology, with an emphasis upon either chemical engineering applications or management.

Typical modules • Industrial Chemistry • Petroleum and Petrochemical Engineering • Energy Technologies • Engineering Management for Process Industries • Process Safety and Control • Process Simulation and Modelling

Go to uniofhull.info/chemengman and uniofhull.info/chemengtec to find out more.

• Qualitative/Quantitative Research in Business and Management • Industrial Management, Research Skills and Project Planning • Sustainable Business: Principles and Practice of Green Management Applicants should have, or expect to obtain, a 2:2 Honours degree (or equivalent) in a chemical engineering or related subject.


CONTENTS 37

Interview with Fluorocarbon

Oil and Gas Innovation sits down with Fluorocarbon, which has grown to become one of the UK’s largest fluoropolymer processor and global supplier of PTFE, polymer related components and engineering plastics and stock shapes.

Igor Sechin Gives a Keynote Speech

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Rosneft Chairman of the Management Board Igor Sechin gave a keynote speech at the opening of the Fourth Eurasian Forum “Innovations and International Integration” in Verona, Italy.

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Innovative Solutions Using HIgh Strength Steels

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Joakim Nyström, Key Segment Manager, SSAB, looks at how to reduce weight and costs for steel structures without compromising safety.

MIDSTREAM & PIPELINES Panalpina and JDA Help Customers Increase Asset Velocity

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RedPrairie – now JDA – WMS is progressing ahead of schedule thanks to Panalpina’s experts in all regions and a specially developed and unique fast deployment model. To date, JDA WMS has been rolled out at more than 30 Panalpina sites globally.

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First Wärtsilä 31 Engines Selected for State-Of-The-Art Icebreaker

The recently introduced Wärtsilä 31 engine, which has been acknowledged by Guinness World Records as being the world’s most efficient 4-stroke diesel engine, has been selected to power a state-of-theart new generation icebreaker currently under construction at the PJSC Vyborg Shipyard. .

Interview: Compression Technology For the Offshore Industry

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Granzow is a leading supplier for the industry of screw compressors, compressed air treatment, energy friendly compressor controls. They also produce a complete range of solutions related to automation products, such as bursting discs, bursting panels, fittings, thermostats, valves, pneumatic cylinders.

HEALTH & SAFETY

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ADIPEC SPECIAL REPORT

t’s that time of year again. We are proud to showcase some of the most interesting and innovative technologies on display at one of the world biggest oil and gas trade shows, the Abu Dhabi International Petroleum Exhibition & Conference. As an official media partner, Oil and Gas Innovation would like to present the ADIPEC delegation and community with this report, tailored specifically for the conference and exhibition. In particular we would like to present some new technological breakthroughs from our partners, BERG Chilling Systems Inc / GTUIT (page 16). In addition you will find a white paper from Oerlikon Metco on their surface coating technologies. Finally, there is a piece from our post Flare Management Conference report included as well.


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ADIPEC SPECIAL

Surface Coating Technologies Cuts Time, Saves Money As Benjamin Franklin once said, “time is money.� Hardly anywhere is this more applicable than in the oil and gas industry, where time on the job can quickly become money down the drain if wells are not delivered efficiently.

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ith increased interest in unconventional operations, such as lateral and directional drilling, along with exploration and production in extreme environments like deep and ultradeepwater, the industry faces new challenges, thus necessitating new technologies and coatings to make tools withstand difficult conditions. Operators are always on the lookout for tools to improve the rate of penetration (ROP), therefore minimizing the number of days spent on wells and lowering overall authority for expenditure (AFE). Driven by these needs, surface technology companies are supporting this industry and are designing new and improved applications to overcome the extreme conditions found in the field. Specifically for drilling operations and downstream pipeline construction, there are a number of coating technologies that are dramatically extending the life of drilling products, which ultimately reduces downtime. A couple of these are now widely used in the oil and gas industry: thermal spray (specifically high velocity oxy-fuel coating spraying (HVOF)), and welded overlays. To select the most beneficial technology for any given application, it is vital that project managers understand the differences between them, as well as the in-service environmental conditions and tribological factors, including friction, lubrication and wear. How surface coating technology minimizes non-productive time (NPT) When setting out on a new drilling project, oil and gas project managers have one clear goal in mind - complete the project without interruption. Any unscheduled downtime will result in losses amounting anywhere from tens to hundreds of thousands of dollars, and unfortunately, equipment damage and failure are regularly the cause of such incidents. Surface coating minimizes equipment damage and related NPT. By applying the appropriate coatings to key parts, such as mud rotors, drill

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Tricone bits are protected by using abrasionresistant and slurry erosion resistant carbide materials PTA and laser cladding blend materials or oxy-acetylene hard face welding products.


mandrels, stabilizers and valves, operators improve equipment performance and realize improved durability over traditional manufacturing processes, such as manual metal arc (MMA) welding and hard chrome plating (HCP). By reducing the likelihood of breakdown, and therefore the need for an equipment changeover, project managers can be confident that their drilling crews continue working without equipment-related delays. Operators rely on original equipment manufacturers (OEM) to supply durable equipment that will withstand the variety of stresses placed on tools. Because thermal spray results in a mechanical bond between the coating and substrate, this application offers the equipment OEMs the optimal corrosion protection for parts that have no impact exposure, such as bearings and pump seal faces, valve parts and shafts. Thermal spray produces a very thin overlay, making product finishing easier and faster compared to welding parts. Additionally, the mechanical bond that is formed during this coating process withstands the extreme conditions found in some wellbores. For example, mud rotors treated with a thermal spray coating often have a service-life ten times longer than those treated with HCP. Unlike welded coatings, thermal spray can be used to apply oxide ceramic coatings which withstand high mechanical strength (300 to 630 MPa), are resistant to corrosion and wear, and have excellent gliding properties. An example of this for oil and gas would be riser tensioners on offshore platforms. The porosity levels of thermal sprays have now been lowered to less than 1 percent, in many cases less than 0.5 percent, making them close to fully dense. Welding: Coating applications in highpressure/high-temperature (HP/HT) environments For equipment used in high-pressure and/ or high-temperature (HP/HT) environments, welding is often the preferred method. In contrast to thermal spray’s mechanical bond, welding melts both the material being applied

Abrasion and corrosion-resistant carbide materials extend the lifetime of drill collars. and the surface of the substrate, forming a durable metallurgical bond. This is necessary for tools exposed to extreme conditions that cause heavy wear and tear. In particular, HP/ HT environments often found in deep-water operations require Laser Cladding to produce a fully dense coating, without which the equipment can quickly become damaged and require downtime for repair. Within welding itself there are variations, namely metal inert gas (MIG) welding, plasma transferred arc (PTA) welding and Laser Cladding. MIG is a common welding process for indoor environments (though rarely used outdoors or in other areas of air volatility) due to the speed and ease with which it can be adapted to robotic automation. However PTA deposits are tougher and more corrosion resistant, making them more suitable to harsh underwater environments. Laser Cladding is commonly used to improve mechanical properties or increase corrosion resistance, repair worn out parts, and fabricate metal matrix composites. Both Laser Cladding and PTA are the most ‘popular’ of the methods, and both easily outstrip the performance of MIG welding. In addition, Laser Cladding and

has gained further use as a complementary coating technology to thermal spray. Conclusion Each of these effective surface solutions has benefits, but which method a manufacturer uses must be wholly dependent on three key factors: 1. the type of material being coated 2. operating conditions like high stress, impact or sliding wear, and corrosive media 3. geology In the oil field, the lithology of the formation being drilled can vary greatly. That is why it is important to select a supplier with a broad portfolio of coating materials and technologies to ensure the selection of the most beneficial one for the project. An example is Oerlikon Metco’s Coatings Solutions Center (CSC), a global resource that advises manufacturers on any of the above solutions – and more – to make sure they have the correct technology for use in their specific situation. Additionally, manufacturers need experts on hand to discuss the project’s needs as well as infiltration processing to increase the operator’s return on capital employed (ROCE). Time may be money, but partnerships can bring profitability. • By: Manfred Oechsle, Product Line Manager, Carbides and Hardfacing Materials at Oerlikon Metco and Jamie Holt, Industry Segment Manager, Oil & Gas and Mining at Oerlikon Metco

Contact: Oerlikon Metco www.oerlikon.com/ metco Drill stabilizers are subject to extreme slurry abrasion. Carbide materials help to increase drilling uptime.

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ADIPEC SPECIAL

Global Energy Sector Looks to ADIPEC 2015 Awards for Achieving Sustainability Through Innovation Developments in Technology Critical to Promoting Cost Efficiencies in Challenging Market Conditions, say Abu Dhabi Industry Chiefs.

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nnovation is key to achieving progress in the energy sector in today’s economic environment, Abu Dhabi industry leaders said yesterday. As regional and global oil and gas companies continue to submit their nominations for the prestigious ADIPEC 2015 Awards ahead of the 30 July deadline, members of the Regional Select Jury (RSJ), which is comprised of 28 senior professionals from National and International Oil Companies, academic institutions, and professional associations, emphasized the pivotal role that developments in technology play in creating and harnessing sustainable energy resources. “With eight categories that span the most critical issues surrounding the energy sector,

the ADIPEC Awards encourage and uphold organizations that champion forward thinking attitudes and value new ideas brought by young talent,” said Mr Ali Khalifa Al Shamsi, Director of Strategy & Coordination at ADNOC, and ADIPEC 2015 Chairman. “This is essential in order to continue meeting the ever-growing global demand for energy in the context of today’s market conditions.” The ADIPEC Awards Ceremony is set to take place on the opening night of the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), one of the world’s top three energy events. The Awards are currently accepting nominations and offer both regional and global companies a platform to showcase accomplishments that shape the future of the

industry. “Innovation sits at the core of sustainable energy production. It helps cut costs, allowing you to become more competitive in this economic environment,” said Rafi Baghdjian, Chief Operating Officer at Shell Abu Dhabi, and member of the RSJ. “For example, Abu Dhabi is currently pursuing ventures, such as Al Hosn and Bab sour gas projects, that may not have been possible or very expensive 1020 years ago. But through innovative methods, we can now extract this gas both safely and efficiently.” “Looking to other countries like the US, where innovative techniques are being used to extract shale oil and gas, a decade ago it was thought that it would not be possible to tap


into these very tight reservoirs in an economic way, but innovation has driven this kind of development – it is a bloodline of the oil and gas industry,” Baghdjian added. Among the eight categories of the ADIPEC 2015 Awards, ‘Best Oil & Gas Innovation or Technology’ (Surface or Sub-surface) is currently showing the most interest, demonstrating the region’s unwavering commitment to advancing the oil and gas industry, and to meeting the rising global demand for energy. The ‘Best Oil & Gas Corporate Social Responsibility (CSR) / Health, Safety, and Environment (HSE) Project or Initiative’ category, and the new ‘Best Dissertation of the Year’ category follow, both looking at critical areas that promote progress within the energy sector. “Going forward, we are all aware that the oil & gas industry will be facing both challenges and enormous opportunities – developing our knowledge and understanding of the sector is absolutely essential if we are to grow and develop the industry,” said Dr Thomas Hochstettler, President of the Petroleum Institute and RSJ member. “The Best Dissertation Award will promote academic excellence and help to deliver real-world understanding.” Also new to this year’s Awards is the ‘Best Practice’ category, which recognizes the creation and successful implementation of an initiative that offers improvement to an

internal business process, structure, or culture. “Best practice and innovation are crucial to the success of our industry, especially in the new commodity price environment,” said Edward LaFehr, Chief Operating Officer of Abu Dhabi National Energy Company PJSC (TAQA) and member of the ADIPEC Awards jury. “I am excited to see the entries for the Best Practice category which show that the oil and gas industry is rising to the challenge.” The remaining four categories for 2015 include ‘Best Oil & Gas Mega Project’, ‘Best Oilfield Services Company’ (Local, Regional or International), ‘Young ADIPEC Engineer’, and ‘Oil & Gas Woman of the Year’. Fatima Obaid Al Jaber, Board Member and Chief Operating Officer at Al Jaber Group, said: “The Oil & Gas Woman of the Year category aims to recognise successful women in the industry who are striving for excellence and are being supported by their company’s empowerment processes.” The highly coveted accolades present oil and gas companies with a unique opportunity to not only have their achievements recognized regionally and globally, but also to disseminate knowledge and information that will set benchmarks for excellence in the industry. “ADIPEC 2015 will celebrate innovation and this year’s ADIPEC Awards will showcase howthe region’s oil and gas industry is delivering on innovation,” said Hirotatsu Fujiwara, Managing Officer, Chief Operating

Officer, Energy Business Unit II at Mitsui & CO., LTD, a sponsor of the ADIPEC 2015 Awards. “As a world-leading event, ADIPEC is the perfect platform for knowledge sharing and collaboration and the ADIPEC Awards are a vital element in that, providing the standards for the industry to achieve. The Awards also contribute to Abu Dhabi’s growing profile in the energy sector and highlight its role in promoting excellence and best practice,” Mr Fujiwara added. The prestigious accolades follow a meticulous judging process upheld by the Regional Select Jury, which is comprised of senior professionals from National and International Oil Companies, academic institutions, and professional associations. Awards entries will close on 30 July 2015, with the shortlist announced on 12 October 2015. Winners and runners-up will be announced at the ADIPEC Gala Awards Dinner on ADIPEC’s opening night, 09 November 2015. The eight categories for the ADIPEC 2015 Awards are: Best Oil & Gas Mega Project, Best Oil & Gas Innovation or Technology (Surface or Sub-surface), Best Oil & Gas Corporate Social Responsibility (CSR) / Health, Safety, and Environment (HSE) Project or Initiative, Best Oilfield Services Company (Local, Regional or International), Young ADIPEC Engineer, Oil & Gas Woman of the Year, Best Practice, and Best Dissertation of the Year. •


Endorsed by GGFR, the 4th Annual Flare Management Summit to Include Speakers From SABIC, RasGas, Borouge, GTUIT and More Oil and gas companies in the Middle East region have been continuously focusing on reducing GHG emissions and the level of gas flared. Since the fall in oil prices has caused companies to reduce expenditure, saving and utilising this associated gas has become crucial since it will help increase operational profit.

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nternational flare management experts are due to meet at the Middle East’s 4th Annual Flare Management Summit this October in Abu Dhabi. The 4-day annual event provides a platform for stakeholders to discuss the most recent, cost-effective and innovative methods for flare gas recovery and how to improve methods for accurate flare flow measurement, flare gas chromatography, recovery and utilisation. Hear from our key speakers including:

Mufeed Ghumgham, Manager Process Control and Process Engineering, SAFCO-SABIC

Prasad Pantula, Engineering Specialist, Saudi Aramco

Mazen Mashhour, Project Manager, Sadara-Saudi Aramco

Bander Al Anzi, Maintenance Manager, Hadeed-SABIC

Mehdi Enayati, Gas Division Manager of Sustainable Development Project, Pars Oil Company, Iran

Julius Bacani, Senior Environmental Engineer, RasGas

Magdy Aly, Senior Process Engineer, Borouge

Farhad Ghadyanlou, R & D Manager, Morvarid Petrochemical Company, Iran

And many more

The 4th Annual Flare Management Summit will take place on 25 – 28 October 2015 in Abu Dhabi, United Arab Emirates. Find the full programme, speaker list and registration form at www.flaremanagementme.com/news •

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ADIPEC SPECIAL

GTUIT Wellhead Gas Processing Takes a Big Bite Out of the Flaring Issue Flaring of wellhead gas is one of the biggest challenges and opportunities facing the global oil industry today. The impact of human induced climate change is putting the spotlight on oil producers, pressuring them to do a better job to lessen the environmental impact of their operations. Typically a by-product of oil extraction, wellhead gas flaring dumps large amounts of volatile organic compounds (VOCs) into the air, and pumps out carbon monoxide, carbon dioxide and soot. Billions of cubic meters of wellhead gas are unnecessarily flared worldwide every year.


Wellhead gas is a valuable and useful commodity when captured and processed. Producers that process wellhead gas do so for a variety of reasons, including meeting regulatory requirements, improving the local air quality in the communities they operate in, or for corporate social responsibility reasons. All do it for economic reasons because turning the waste stream into a revenue generator is a no brainer. Any producer that flares unprocessed wellhead gas is literally burning money. Billings, Montana, USA based GTUIT LLC helps them stop flaring. In 2013, GTUIT introduced a mobile, scalable wellhead gas processing technology that recovers natural gas liquids (NGLs) and produces a consistent high quality, high BTU dry gas stream. To date the firm has produced over 10 million gallons of NGL. The processed gas is used to power onsite power generation equipment or converted into compressed or liquefied natural gas on site. 30 GTUIT Systems are in operation in the Bakken shale play in North Dakota, USA. Combined, these systems can process over 22 million cubic feet of wellhead gas per day, and have captured more than three billion cubic feet of gas since entering service. Having recently been awarded a prestigious World Bank Global Flaring Reduction Partnership award for their success in the Bakken, GTUIT now has their sights firmly set on tackling the flaring problem in the rest of the world. The Bakken - An Effective Proving Ground North Dakota is an excellent place to test new oil and gas technology. It is sparsely populated and the oil fields have limited access to infrastructure. The summertime temperature can top 35°C and in the winter it can plunge to below -40°C. GTUIT took full advantage of this harsh environment to commercialize a robust technology that can reliably operate in any oil producing region. Flexible and Scalable System with a Berg Inside Two key features of the GTUIT System are its unique ability to scale capacity to synchronise with a well’s stage of production, and a flexible design that enables it to effectively manage the variable nature of wellhead gas compositions and flows throughout its lifecycle. 1,000 MCFD, 500 MCFD or 250 MCFD capacity

Three NGL Recovery Systems Operating in Parallel Conditioning 2,000 MCFD of Flare Gas in North Dakota.

modules can be deployed in the optimal configuration to match the incoming wellhead gas during any stage of the well’s life.

typically needs to be significantly de-rated to be able to accept it, resulting in considerably higher capital and operating costs.

The GTUIT Systems operate at the intersection of thermodynamic and oil field efficiency. The technology utilizes compression and mechanical refrigeration in a mobile and modular package that withstands the rigors of oil field use. Wellhead gas is first sent through a proprietary flow control system that evens out the ebbs and surges of oil well production. It is then compressed and processed through a mechanical refrigeration system engineered by Toronto, Canada based Berg Chilling Systems Inc. that lowers the temperature, causing the heavy liquids to drop out. Over 70% of C3+ hydrocarbons and most of the water are removed. Berg’s expertise in mechanical refrigeration and experience in the global oil and gas sector enabled them to develop the core of the system with built-in flexibility to handle a wide variety of variations and conditions experienced in oil the world’s oil fields.

GTUIT took their core technology and applied it to solve the wellhead gas fuel challenge. Together with Berg they developed GTUIT Fuel Conditioning System (FCS), a cost effective front-end fuel conditioning system for on-site power generation and micro-grid power generation. Caterpillar Oil and Gas, one of the world’s largest manufacturers of industrial power generation equipment, was so impressed with GTUIT’s fuel conditioning technology, they’ve named them their gas fuel conditioning partner, and became a minority owner earlier this year.

Fuel Conditioning for Onsite Power Generation Oil producers in remote regions often do not have access to power and must provide their own on-site electricity generation. Raw wellhead gas can be used to fuel power generation equipment, although the equipment

GTUIT FCS units take raw wellhead gas and produce conditioned dry fuel gas, plus a marketable NGL stream. The system’s proprietary flow control delivers the fuel gas at a constant flow rate, BTU and pressure. The consistent, high quality GTUIT conditioned gas reduces maintenance requirements for power generation equipment, and most importantly allows the generators to run at near or full name-plate capacity, reducing capital outlay and operating costs The bottom line for the producers is less flaring and a smaller environmental impact all the while producing conditioned gas at the well site that reduces capital and operating costs for power generation.

BERG Chilling Systems Inc. | berg-group.com | +1 416 7552221 | bergsales@berg-group. com

1000 MCFD Capacity GTUIT Mobile NGL Recovery Unit in Operation.

GTUIT LLC. | GTUIT.com | +1 406-867-6700 | info@gtuit.com

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“Making a difference in global corrosion prevention� www.oxifree.co.uk


SPECIAL: DATA

Keep Your Finger on the PULSE: World Leading Data Analysis Solutions In this special feature OGI’s Emma Patten speaks with Jostein R. Hareide, Director OEM & Marketing at CAMO Software AS, who delivers multivariate software and solutions for analysing large, complex data sets quickly, easily and accurately. Leading organizations rely on our solutions to get deeper insights, understand processes and make better predictions from their data. CAMO has helped saved companies millions of dollars through improved process control, and helped others develop best-selling products. We delve into all of that plus their new exciting product launch of The UnscramblerŽ X software suite, which has set the standard in multivariate data analysis (MVA) for many years.


OGI: Could you start by explaining CAMO Software AS’s credentials and experience in terms of your software products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long you have been active, and your reach? JH: CAMO has a long track record within the Oil & Gas sector, especially for downstream applications. A large number of oil companies in the world use models developed with our multivariate data analysis software The Unscrambler® X for prediction of quality. Typical examples are predicting octane number and critical process parameters of gasoline and other products from refineries. These solutions are too a large extent integrated with instrument vendors such as ABB and GuidedWave. The past years has also seen more applications in exploration, upstream and environmental monitoring. One example of the latter is the integrated environmental monitoring project LoVe, deployed north of the Norwegian coastline (love.statoil.com). Detecting biodiesel in jet fuel at ppm level using mass spectrometry and analysis of

geochemistry data based on biomarkers in oil and source rock extracts are other examples. A large, but not yet fully exploited application area is condition monitoring of rotating machinery. OGI: What are the various types of software CAMO provides? JH: CAMO Software provides software in the fields of multivariate data analysis and process monitoring. With more than 30 years of software and industry experience, our flagship product The Unscrambler® X is by many considered the leading application in advanced data analysis and is used by more than 25,000 data analysts around the globe. Our solution for real-time process monitoring, Unscrambler® X Process Pulse II, allows clients to gain in-depth understanding of their production processes, prevent failures before they occur with early fault detection and improve product quality by the use of advanced multivariate models. At CAMO Software, we also offer a range of software products which can be integrated directly into scientific instruments, process monitoring solutions, as well as optimization software.

We has a proven track record for assisting large corporations in their efforts at better understanding their data and how it can be used to identify patterns and effects, as well as how to optimize production processes and product development. OGI: CAMO Software also provides various services to the industry. From your catalogue, which services (eg. Enterprise Solutions & Custom Development, Training Courses) are primarily applicable to the oil and gas sector, and why? JH: Several of CAMO Software’s services are of value to the Oil and Gas sector. Our software application for advanced multivariate data analysis can be applied to huge and complex data sets, providing increased insights and understanding by analyzing all the data simultaneously. This allows for identifying patterns and relationships between the data, which will not be possible using traditional, univariate analysis.

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The Unscrambler® X is a preferred tool for thousands of data analysts.

Our solution for real-time process monitoring, Unscrambler® X Process Pulse II, can be a vital tool in ensuring the production process runs smoothly and without costly incidents such as production shut-downs or producing end products of the wrong quality or characteristic. To further increase potential benefits of a process monitoring solution, we have frequently worked together with our clients to develop and implement solutions tailored to the specific requirements of the client. Adding to this, our industry experts will share their experiences and provide consulting on how to best implement and run a process monitoring system and how to best utilize the outcome of such a process.


JH: Usually in larger installations CAMO Software will work closely with the client throughout the planning, implementation and start-up of the project. We not only provide the software, our industry experts take an integral role in implementing the solution using both their deep knowledge of the software but equally important, their vast industry experience. For larger installations we have also in the past developed new features and modules together with the client to accommodate special requirements that might not be included with the software as it was developed. Our training offerings also include tailored on-site training sessions for groups of staff, as well as standard classroom training courses around the world. OGI: A production process can be complex and challenging for any company. What would you say are the main challenges your process monitoring solution Unscrambler® X Process Pulse II can help Oil and Gas companies overcome? JH: Unscrambler® X Process Pulse II can be utilized in many different parts and levels of the organization, not just on the production floor. For example, data analysts often face challenges with the data they are analyzing. The data can be in different formats, come from different systems and be a mix of historical and live data. Many times the data also contain a large number of variables. Unscrambler® X Process Pulse II handles all this, groups the data and translates it into what is actually happening in the production process. A production manager face challenges with keeping the process running and delivering products with the right quality at the right time. Unscrambler® X Process Pulse II enables real time monitoring of a process, and is continuously measuring the progress against multivariate models describing normal operating conditions. This allows for Early Event Detection, enabling the process operator to take corrective action before incidents occur. Clients can thereby avoid having to possibly scrap a production batch due to quality issues, or other faults of the production or product. OGI: Another issue we hear a lot from our readers is, “Sure we’d love to install this new technology as it’s clearly going to help create efficiency, but we’re not so sure we would like to tear everything down and build a whole new control system to accommodate.” When we’re speaking about utilizing the Unscrambler® X Process Pulse II, could you elaborate on how this new system can be integrated with existing control systems, and

the limits (if any) on the size and scope of the processes it can be applied to? JH: Unscrambler® X Process Pulse is developed with the intention to fit into existing infrastructure including control systems. Results from models can be sent to the control system via OPC for instance. Accordingly it is easy to link multivariate modelling with an existing control system. Any parameters to be used for control can be read as a regular OPC tag, and the control logic is residing in your control system as per usual. Clearly, when the controlled parameter is a model output there might be more than one setting to be adjusted in the control loop, but these can be identified from review of the loadings in the MVA model. Unscrambler® X Process Pulse II can be used for all types of processes and several models can be run in parallel allowing for multiple control points or control of several processes in combination with an existing control system.

Unscrambler® X Process Pulse II, allows clients to gain in-depth understanding of their production processes, prevent failures before they occur with early fault detection and improve product quality by the use of advanced multivariate models.

OGI: When companies decide to install and use new software one of the big issues revolves around training. What different methods are used to execute your training and how accessible and versatile are the different methods of this training?

OGI: Could you please go into detail about which types of personnel / companies need the Unscrambler® X Process Pulse II and why? The benefits of this system for a business? And finally speak on how user friendly the solution is?

JH: In general one can say that Unscrambler® X Process Pulse II is suitable for all companies that have a production line. The software has been developed with the goal of delivering a solution for advanced process monitoring and control, and can be applied in any industry. With features such as early event detection and immediate identification of out-of-limit variables, it allows users to remedy potential failures before they occur. It includes advanced quality predictions and drilldown plots for detailed investigation of variables, and thereby improving process understanding. This is relevant for all production industries. The software also has uses for many different roles in an organization. As mentioned above, a data analyst can face challenges with data being in different formats and coming from different systems, Unscrambler® Process

Pulse II can easily handle this and provide deep insight into what is happening in the production process. One of the main goals of a production manager is to keep the process running and deliver products of the right quality. Using our software, production managers can monitor the process in real time and make adjustments before failures occur and without costly stops in the production. Top level management focuses on reduced cost and improved margins. The monitoring and reporting capabilities of Unscrambler® X Process Pulse II enables companies to share information more easily and replicate success, resulting in better decision making. OGI: Lastly, could you provide an example or case study for our readers of a situation where a company’s operations were helped by using CAMO Software AS’s products and services? JH: Octane giveaway can cost an oil refinery a large amount of money per day if gasoline blending operations are not monitored and controlled tightly. It is estimated that every 0.3 octane numbers given away add US 6c per barrel. In some cases, up to 3 octane numbers can be given away per barrel per day and for a medium capacity refinery producing 150,000 barrels per day, the cost is anywhere between 10 -100K USD lost profit. If this was continuously run for 1 year, the lost profit would be in the order of $36 million. To prevent such losses, many of the refineries have implemented in-line NIR systems that utilize The Unscrambler® X models. The predicted octane (and other properties) can be read by the refineries master batch recipe system that can react quickly to changes in feedstock and bring the blend balance back to minimal giveaway. Not only are The Unscrambler® X models used to control octane giveaway, but they can also be used to monitor benzene and other aromatic content of gasoline to meet EPA guidelines, thereby minimising the risk of serious fines. The Unscrambler® X models are also used to determine the onset of equipment failure, particularly in one large refinery, where the downtime could have been as long as 6 weeks.• If you have any questions or need assistance with the Unscrambler® X Process Pulse II or any CAMO product lines, please get in touch.

CAMO Software AS. Tel: (+47) 223 963 00 Fax: (+47) 223 963 22 Email: info@camo.com

21


SPECIAL: LOAD CELLS

Don’t Get Weighed Down With Inferior Load Cells Oil, gas and offshore companies in particular are constantly striving to be more cost effective and energy efficient, while constantly trying to minimize downtime. The results are in: more and more companies need reliable and often customized solutions to solve their processes. Eilersen Electric A/S specializes in offering both robust weighing systems and customized weighing solutions based on the patented digital load cell technology.

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ilersen today is the leading supplier of digital weighing solutions, which offers many applications related to the oil and gas industry. Among their diverse boutique of industrial offerings and these products provide full connectivity with PCs, PLCs, MES and ERP systems. The company also offers a complete range of weighing terminals with software for standard weighing applications or with customised software developed by the company’s in-house team of experienced engineers. Trusted Worldwide Since its foundation in 1969, the Eilersen companies in Denmark and Switzerland have been dedicated to the development, manufacture and supply of high quality robust industrial sensors based on capacitive technology for the measurement of force and weight. This worldwide patented technology are found among leading companies in more than 85 countries worldwide and the dedication to technology, development, quality, and customer support has led to a very high level of customer loyalty. The solutions which are particularly interesting for the oil, gas and offshore industries are their robust weighing solutions for installation in offshore applications (weighing P-tanks, water mist systems, force measurement and weight measurement of skids etc.)


Load cells are produced in stainless steel

plus many special applications for oil and gas such as center of gravity (COG) measurement, tank and vessel weighing, force measurement, and gravimetric level measurement.

and hermetically sealed by laser welding.

Eilersen Digital Load Cells All Eilersen load cells are developed, manufactured and individually calibrated at the Eilersen facilities in Denmark and Switzerland to ensure that the load cells are meeting the highest quality standards on the market. Eilersen load cells are produced in stainless steel and hermetically sealed (IP68/ IP69K) by laser welding to ensure superb waterproof protection for tough industrial applications. Furthermore, Eilersen load cells are available in capacities up to 500t. The load cells are based on a patented capacitive measurement principle where a robust ceramic sensor is mounted inside the load cell body. Simple Electrical and Mechanical Installation When working with an Eilersen load cell, the client can enjoy the benefits of easy electrical and mechanical installation. For example when reviewing the mechanical installation we see that mechanical overload protection devices are not necessary when installing the Eilersen load cells as the products are based on a measuring principle containing no moving parts while the ceramic sensor is not in contact with the load cell body - this patented principle allows overloads of up to 1.000% of the rated load cell capacity and tolerates very high sideloads, and torsion. This is an important cost and maintenance saver. As for electrical installation the digital load cells feature true plug-and-play installation, as the load cells are pre-calibrated. This is an important feature in high capacity applications where it is difficult to find calibration weights, which saves a tremendous amount of time during commissioning. Also it’s worth noting that the simple mechanical installation of the Eilersen load cells without overload protection devices ensures a trouble-free installation minimizing the need for maintenance. Furthermore, a damaged load cell can be changed without the need for re-calibration.

The digital RS485 signal from the load cells not only eliminates the need for weighing amplifiers but also drift and inaccuracy found in analog electronics as the complete measurement chain is digital. Especially for oil and gas applications, it’s also important to note that the Eilersen digital load cells are equipped with a standard single wire coaxial cable (RG-58) and the cable length has no influence on the calibration. The load cells can be equipped with cable lengths of up to 100 meters and the load cell cable can be changed on-site if necessary. Optionally, the Eilersen load cells can be supplied with Mud resistant and Halogen free cables. Additionally, the digital signal from the load cells is insensitive to EMC. Certified for Ease of Mind Finally, a developing trend being seen around the world is the prevalence of European style certification being used in developing economies. For example if we are speaking about major international oil companies operating in places such as the Caspian, West Africa and South East Asia, it’s worth noting that these companies are opting to import European hazardous area certified products and services over local content because of increased regulatory factors. Another aspect

of Eilersen’s product portfolio is the prevalence of hazardous area certifiable products, in line with the high European regulatory bodies. Using Eilersen digital load cells, one can be assured that they can be supplied in accuracies up to OIML C6 which is the highest on the market, and ATEX certified (zone 1, 2, 21, 22) versions while still offering a very high overload tolerance. CEO, Mr. Frederik Eilersen adds, “The culture of innovation and high quality lives on in our company and we continue to invest heavily in new production technology and advanced calibration equipment. All product development is carried out in-house and our ceramic sensor manufacturing, product testing and assembly is also conducted here in Denmark. However most of the components in our products are manufactured by partner’s world-wide under strict quality control and all final calibration is carried out here at our own facilities. The capacitive technology is unique and Eilersen load cells are far more accurate and robust compared to traditional analogue products and don’t require mechanical mounting kits to protect them from overloads. We are an independent company and our inhouse team of software engineers allows us to react fast to customer demands.” • For more information on how Eilersen Electric can support your operations please contact:

Eilersen

The Weighing Experts Eilersen load cells have a very high overload tolerance.

Phone: +45 49 180 100 Fax: +45 49 180 200 E-mail: info@eilersen.com

23


INDUSTRY NEWS: EUROPE

Dirk Ville Talks About the Challenges of Running a Technology Business

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irk Ville heads Atlas Copco Compressors in the UK. He talks to Lee Hibbert about the challenges of running a technology business with an illustrious history, and about using good office design to encourage engineers to have an open mind.

Q. You graduated with a degree in electromechanics from the Katholieke Universiteit Leuven in Belgium. Was engineering always your calling in life? A. It came about because of a lot of factors- My father was an engineer, and from an early age I was strong in mathematics. I also liked working on motorbikes, programming home computers, and repairing old radios. So it was logical that I would become an engineer. Q. But you also had an early in interest in business and marketing? That’s not always common with engineers. A. I’d always liked reading financial magazines. I still do today. But after l’d studied engineering, I realised that I had little knowledge of economics. I didn’t understand much about finance. So after completing my engineering degree, I then chose to go on and do an economics degree. It worked out well for me. I think it’s important that engineering graduates are more business-ready. Q. Engineers often deride the functions such as marketing within their companies. You must think that’s a mistake? A. Marketing is not gut feeling - it’s based on certain facts. And if you haven’t followed a marketing course, it’s easy to get a wrong perception of it. The risk, of course, is that you can end up developing a product that nobody really needs or wants to pay for. It’s important that you analyse market needs first and then develop the product. It’s an interaction of ideas. You can go to extreme products with things such as electromagnetic bearings and highspeed motors, but there might only be a small market for them. There has to be demand -it can’t be just technology-driven. Q. Did your all-round experiences within a small firm make you want to become a business leader within Atlas Copco? A. Not initially. I had studied engineering for five years, and I found that I was not using it enough. I moved to Atlas Copco because it was one of the top companies in Belgium doing proper engineering - it was designing core components, through to entire machines, from scratch. It was a fantastic company to go to to do proper engineering. I was in the portable compressors division, and I was designing a whole range of products, from the smallest through to the most complex, three-stage, oil-free designs. It was also the time that we had started to introduce electronics and remote monitoring capabilities, so it was all happening. That meant there were a lot of software bugs to solve. I learnt then that whatever testing was done on software, there was always something that would flash up that hadn’t been detected during testing, because it was all new. It was an interesting time, as we had to react quickly to problems. Q. That role presumably gave you a good technical grounding to prepare you for business roles, You were not an accountant, you were an engineer - it must have been hard for anyone to pull the wool over your eyes? A. I don’t want to be arrogant, but think I understand most compressors. That has been useful, because in this business we meet a lot of people who know our products well. They are often plant managers. And when it comes to compressors, they often talk their own language. Newcomers can think ‘what are they talking about?’ There’s also a lot of innovation to deal with. Even now, most of my contact is with engineers. Q. You’ve had a lengthy career at Atlas Copco working in places such as South Africa, Austria, India and the Balkans. Which have you enjoyed the most? A. I don’t have a favourite country, but I have really enjoyed certain roles. In India, I was tasked with setting up a global engineering centre, and that was exciting because it was something new. We were doing real engineering over there, right at the top end. It started from nothing, we had a great team, we did a lot of training, and after one year we won an internal customer care award because we were so customer-oriented. We were so proud about it, we organised a great party with fireworks. I loved working in India. The people were committed and hard-working - sometimes too hard-working. Q. You became general manager for Atlas Copco Compressors in the UK in 2013. How did that opportunity come about? A. I’d been working in our Austrian business for four years. It’s company policy that as a general manager you stay for that amount of time and then you move on. And the UK was my preferred country. It is a larger and more competitive market - everyone is here, all our competitors are here. I knew that I would learn in the role every day here. Things are exciting and challenging. I like it a lot here. People are friendly and open. The weather is terrible, but I knew that anyway. Q. The challenge is to keep growing. What areas of product expansion can we expect? A. Vacuum has become important to us, as seen with the launch of our GHS VSD+, which offers an alternative to traditional, oil-injected vane pumps. We think this is the flrst big innovation in rough vacuum pumps this century, offering an average of 50% energy savings, silent technology and clean operation. We have recruited clever people with vacuum experience, from Edwards Group, which we acquired last year, and from others. We have the customer base that is increasingly looking for more energy-efficient products, which we can now offer them. It’s an exciting time. There are a lot of new products still to come, as we see the vacuum business as a bit old-fashioned, a bit conservative. We see a lot of opportunity to make the product more efficient. Q. Do you find it hard to recruit engineers with the right blend of skills for your business? A. It’s a challenge in every country. We have a bit of an advantage in compressors in that we are well known, and people want to come to Atlas Copco. But our business isn’t about pure mechanics any more - it’s also about electronics, software and computer intelligence. Our engineers need a wider base of skills than maybe 20 years ago. That makes it more difficult to find people. But we are doing a lot ourselves, with active apprentice and graduate programmes. I’m happy with the people I have here. Q. You’ve spent a lot of money creating a modern office environment at your headquarters in Hemel Hempstead, with bright colours, creative break-out zones, and hot-desking. It doesn’t look like an engineering company. What’s the story there? A. I had visited a few companies in Holland that had done this, and I remember when I was coming out of such places thinking ‘that would be a good place to work’. I want people to go away from our offices with that thought. It’s been done for another reason - to make our people feel better and to enjoy their job. It means people have more interaction, and are perhaps a bit more respectful of each others’ roles. •


DräGer Attends PILOT Share Fair for Sixth Year in a Row Blyth – The PILOT Share Fair will be held on Wednesday, 4 November 2015, in Aberdeen and is an opportunity for major oil and gas players to showcase ongoing oil and gas projects. This year’s fair will take place at the AECC (Aberdeen Exhibition and Conference Centre) and is expected to attract thousands of delegates, exhibitors and presenters. Dräger, which has a dedicated site in Aberdeen and offers specialist safety training, repair workshop facilities and a base for customers to hire, purchase and maintain Dräger products, is attending the event. The fair, which is widely regarded as the foremost business development event in the UK oil and gas industry calendar, aims to enable purchasers and suppliers to do business better by providing the opportunity to network and learn about the latest UK oil and gas business development opportunities from the major industry players. Representatives from Dräger will be on hand to meet and talk to delegates and share information and updates on the company’s cost-saving products and services. Michail Tzouvelekis, Regional Segment Manager for Dräger Marine and Offshore, said: “We’ve been attending the PILOT Share Fair for six years now as it is a key event in the Dräger calendar. “We are delighted to be attending this year’s event and hope it will be a huge success. For us, it’s helpful to understand what it is our customers are hoping to achieve themselves and to roadtest the ways in which we can help them in the future by coming up with innovative solutions. We’re more than happy to have a conversation with companies that are looking to take steps to reduce costs and become more efficient, and we believe that being safe is by definition being more efficient. “We want our customers to be prepared for any eventuality. It’s about zero accidents and more safety in the workplace and we are looking forward to sharing our newest innovations with our peers. “Depending on a company’s needs, we can share our expertise, resources and ideas to develop a long-term safety strategy which will ultimately reduce safety equipment inventories and standardise detection and protection across multiple offshore assets. This can save hundreds of thousands of pounds per year in operating expenditure. “At Dräger Marine and Offshore, we can offer equipment for purchase or rental, services and training out of our facilities at key hubs in the UK, the Netherlands, Norway and Denmark.” Key discussions and highlights include: Delegates at this year’s PILOT Share Fair will get the opportunity to hear first-hand from major industry players about the diverse range of oil and gas opportunities in the UK Continental Shelf (UKCS) from major redevelopment projects and new field developments, to investments targeted at extending the life of existing oil and gas infrastructure and the need for new technology solutions. •

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DNV GL Releases New Guideline on Cargo Liquefaction

NV GL has published a guideline for the design and operation of vessels with bulk cargo that may liquefy. The guideline aims to raise the awareness of the risks of liquefaction and describes mitigating actions to reduce these risks. Many common bulk cargoes, such as iron ore fines, nickel ore and various mineral concentrates, have the potential to transform into an almost fluid state, threatening the stability of the vessel. “Cargo liquefaction is probably now the most significant factor in lives lost at sea for bulk carriers,” says Morten Løvstad, Business Director of Bulk Carriers at DNV GL. “While the general safety level of modern bulk carriers has been significantly improved over the last decades, recent incidents have shown that cargo liquefaction remains a major safety issue. Since 2009, at least six ships of more than 40,000dwt have been lost to suspected liquefaction of cargo. These incidents have shown that cargo liquefaction is an issue that has not been sufficiently dealt with, and concerned owners and operators have contacted us for support and advice”, says Løvstad. “With this guideline we wanted to help our customers by not only increasing awareness and building competence around the phenomenon, but also to offer some strategies, both in design and operation, to reduce these risks.” The guideline focusses on both the operational and design aspects of cargo liquefaction. In daily operation a number of recommendations to reduce the risk of liquefaction are made, including: Making sure that cargo is correctly identified and properly documented, ensuring the time interval between testing for moisture content and loading is no more than seven days, that retesting is done in the event of rain, appointing an independent surveyor and performing a can test or similar to verify the moisture content, loading in a non-homogeneous pattern, raising the centre of gravity by ballasting the top wing tanks (provided loading condition and structural strength allows for it), and trimming as necessary to ensure cargoes are reasonably level. •


INDUSTRY NEWS: N. AMERICA

General Dynamics NASSCO Delivers World’s First LNG-Powered Containership, the Isla Bella, to TOTE

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oday General Dynamics NASSCO delivered the world’s first liquefied natural gas (LNG) powered containership, the Isla Bella, to TOTE Maritime. The ship was delivered nearly two months ahead of schedule. NASSCO is a wholly owned subsidiary of General Dynamics (NYSE: GD). As part of a two-ship contract signed in December 2012 with TOTE, the 764-foot long Marlin Class containerships will be the largest dry cargo ships powered by LNG, making them the cleanest cargocarrying ships anywhere in the world. This groundbreaking green ship technology will dramatically decrease emissions and increase fuel efficiency when compared to conventionally-powered ships, the equivalent of removing 15,700 automobiles from the road. “Successfully building and delivering the world’s first LNGpowered containership here in the United States for coastwise service demonstrates that commercial shipbuilders, and owners and operators, are leading the world in the introduction of cutting-edge, green technology in support of the Jones Act,” said Kevin Graney, vice president and general manager of General Dynamics NASSCO. The delivery of this historic ship, also demonstrates successful collaboration between industry and regulatory bodies. TOTE, NASSCO, the American Bureau of Shipping, and the U.S. Coast Guard worked hand-in-hand from the beginning of the project to the delivery of the Isla Bella. This included collaboration during the design approval, construction and commissioning the ship to safely and effectively operate on natural gas. The Jones Act-qualified ships will operate between Jacksonville, Florida, and San Juan, Puerto Rico. As a complement to its government new construction business segment, NASSCO maintains an extensive history of commercial shipbuilding. In the past decade, NASSCO delivered eleven commercial ships and currently has ten commercial ships in its backlog, including the two Marlin Class containerships for TOTE. For its commercial work, NASSCO partners with South Korean shipbuilding power, DSME, for access to state-of-the-art ship design and shipbuilding technologies. NASSCO specializes in the design and construction of auxiliary and support ships for the U.S. Navy and oil tankers and dry cargo carriers for commercial markets. It is also a major provider of repair services for the Navy, with capabilities in San Diego, California; Norfolk, Virginia; Bremerton, Washington; and Mayport, Florida. Its San Diego location remains the only major shipyard on the West Coast of the United States conducting new construction and repair. •

SBM Offshore Awarded Browse FLNG Turret FEED

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BM Offshore is pleased to announce that Technip SA (Technip) has awarded the Company the Front-End Engineering and Design (FEED) contract for three, large-scale turret mooring systems associated with the proposed Browse Floating Liquefied Natural Gas (FLNG) Development in Australia.

The contract awarded to SBM Offshore covers the FEED elements of the proposed Browse FLNG Development’s turret work. The three, large-scale turrets are expected to be designs similar to and slightly larger in size than the Shell Prelude FLNG turret that SBM Offshore was awarded in 2011 and whose last module was recently successfully delivered from the construction yard in Dubai. Integration with the Prelude facility in Korea is currently ongoing. The Browse project will incorporate the lessons learned by Shell, Technip Samsung Consortium and SBM Offshore in the design and construction of Shell’s Prelude FLNG project in order to maximize efficiencies in replicating the Prelude FLNG solutions for the three Browse FLNG facilities. The proposed Browse project, operated by Woodside Energy Ltd., is located 425 kilometers north of Broome in Western Australia. The project’s reference case is based on three FLNG facilities to develop the Brecknock, Calliance and Torosa fields in the Browse Basin and is subject to final investment decision targeted for the end of the FEED in the second half of 2016. •


BRDR. JĂ˜RGENSEN COMPONENTS A/S

BJC has a high level of expertise in the use of advanced cold forming techniques, especially within the areas of cold forging, deep drawing and stamping.

We participate in EU-research projects related to cold forging and sheet metal forming.

We have a flexible production set-up and are constantly investing in new technology to be able to offer the best solutions and to remain competitive.

We participate in the development of new products together with our customers

We offer our customers a high service in all aspects

Handwheels for valves and for gears for larger types of valves

Tailor-made production lines for pressed steel handwheels incl. surface treatment.

Large standard programmes and flexible solutions

Large programme of steel welded handwheels

High quality and service at competitive prices

With our experience in stamping and deep drawing we are able to offer our customers a wide range of special components

BRDR. JĂ˜RGENSEN COMPONENTS A/S Nybo Bakke 3-4 7500 Holstebro Denmark Tel. +45 97 42 47 00 Fax +45 97 42 26 05 Email mw@brdr-jorgensen.com


INDUSTRY NEWS: N. AMERICA

Trinity Exploration & Production Sells Onshore Trinidad Assets for US$20.8 Million

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rinity Exploration & Production has entered into an agreement to sell its interests in the WD-2, WD-5/6, WD-13, WD-14 and FZ-2 licences and related fixed assets to Touchstone Exploration for cash consideration of US$20.8 million. Together, the Blocks constitute substantially all of Trinity’s onshore licence portfolio.

Transaction Rationale The Transaction follows the announcement on 8th April 2015 that the Company had undertaken to launch a strategic review in order to maximise value for shareholders. In particular the sale: - Demonstrates and crystallises the significant value created by Trinity through its historic investment in the licences - Enables the Company to repay in full its senior secured debt facility - Facilitates the paying down of outstanding creditor payables - Strengthens the Company’s balance sheet and working capital position Under the terms of the Transaction, Touchstone has agreed to deposit an initial payment of US$2.08 million into escrow to be released, along with the remaining US$18.72 million payable, on completion. The Transaction is expected to complete in the fourth quarter of 2015 and will be effective as at the completion date. In aggregate, the Blocks have produced at an average rate of 1,574 bopd to 31st August, 2015. The carried book value of the assets as at 31st August 2015 was US$17.17 million. Losses attributable to the Blocks for the 8 month period to 31st August 2015 was US$2.33 million. The sale is subject to standard regulatory approvals, including final approval from the Petroleum Company of Trinidad and Tobago Limited (“Petrotrin”) and approval by Trinity’s shareholders. A circular, together with a notice to convene a general meeting of the Company, will be posted to Trinity’s shareholders in due course. Trinity’s onshore Trinidad assets Following the Transaction, Trinity remains one of the largest independent offshore oil and gas companies in Trinidad with a portfolio of assets spanning the East and West Coasts. The Company’s remaining assets contain management estimate net 2P reserves of 18.5 mmboe and 21.7 mmboe of contingent resources and produced at an average rate of 1,333 boepd to 30th June 2015. Forward Strategy Trinity continues to focus on increasing operational efficiencies by optimising well performance and cost efficiencies to ensure the business remains sustainable in a low oil price environment. Subject to capital availability, the Company is well positioned for growth with an inventory of high quality drilling locations across its East Coast and West Coast acreage, and an economically attractive development project at TGAL. West Coast Growth potential from the Brighton Marine (TRIN: 100% WI) and Pt. Ligoure, Guapo Marine, Brighton Marine Outer (PGB, TRIN: 70% WI) blocks could be targeted via the re-initiation of infill drilling, recompletions and greenfield development programmes. These activities have the potential to significantly increase production levels. Trinity has invested in maturing two field development programmes that include both near and medium term growth opportunities through infill drilling across both licences in the areas of Brighton Marine Outer and Guapo Marine. These areas remain relatively undrilled and demonstrate good oil recovery per well and the west flank of Brighton is less structurally complex than the crest of the field. East Coast The Company is focusing on the TGAL Field Development Plan (TRIN: 65% WI) which is expected to be finalised by the year end. The subsurface evaluation has been completed, the topside facility concept has been narrowed down to two options and it seems practical to adopt a phased approach to developing the field by bringing onto production the reserves nearer to the Trintes field (TRIN: 100%) and putting it through a Trintes facility to shore. Management estimates of Stock Tank Oil Initially in Place (“STOIIP”) on Trinity’s TGAL-1 discovery are 150 - 210 mmbbls (best technical estimate 186 mmbbls). Seventeen candidate drilling locations have been identified in the first phase, with the potential to develop 22 mmbbls of recoverable resources. The initial revenues generated would then allow for reinvestment in other facilities and pipeline. Therefore, notwithstanding further, identified potential in the Galeota block, estimated combined 2P and 2C management estimate resources from the Trintes-TGAL area totals over 36 mmbbls net to Trinity (based on a conservative 12% recovery factor at TGAL). Significant further development potential exists along the Galeota anticline to the North East where almost 270 mmbbls of STOIIP has been mapped and estimated by management through the integration of reprocessed 3D Seismic data and the EG-3 and EG-4 wells that define and tie the dataset to the North East. There are further opportunities that comprise a potential greenfield development in Pt. Ligoure, secondary recovery and enhanced oil recovery (EOR) options and exploration prospects from the prolific Forest and Manzanilla reservoirs. Exploration potential in the area has been evidenced by Petrotrin’s Jubilee field discovery in 2012, South East of Cluster 6-ALM 22 well and contiguous to the Pt. Ligoure licence area. The field was stated to have preliminary estimated resources of 48 mmbbls. Furthermore, there are significant opportunities from enhanced oil recovery, with recovery rates to date estimated at between 0 - 6% across key fault components. It is believed that the application of secondary recovery (steam flood) and EOR techniques (CO2 injection etc) could materially increase production and reserves. Across Trinity’s ongoing asset base there are identified pathways for value and production growth. Until such time as these can be fully evaluated the Company aims to continue to reduce operating breakeven levels whilst warehousing and retaining the integrity of a significant volume of reserves and resources. Joel ‘Monty’ Pemberton, Chief Executive Officer of Trinity, commented: ‘Trinity’s onshore portfolio has played a significant role in the early evolution of the Company. However, greatest shareholder value can now be delivered by relieving balance sheet pressures and providing the financial flexibility to drive forward a focused offshore portfolio with a defined reserves base and significant further resource potential. •


INDUSTRY NEWS: S. AMERICA

GeoPark Announces Third Quarter 2015 Operational Update GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Colombia, Chile, Brazil, Argentina and Peru[1], is pleased to announce its 3Q2015 operational update. Quarterly highlights Two new Colombian oilfield discoveries: GeoPark resumed drilling on the Llanos 34 Block in Colombia (GeoPark operated with 45% WI) and discovered the new Chachalaca and Jacana oil fields. Both fields have been put into production at approximately 2,800 bopd gross. Two new Colombian appraisal wells: GeoPark drilled the Tilo 2 well with a successful 800 bopd oil test and the Jacana 2 well with a successful 1,000 bopd oil test, both in the Llanos 34 Block (GeoPark operated with 45% WI). Oil production in Llanos 34 Block (GeoPark operated with 45%WI) achieved record production of 29,000 bopd gross. Consolidated oil and gas production of 19,244 boepd from Colombia, Chile and Brazil. Current consolidated production is approximately 22,000 boepd. New Chile gas field on stream: Construction of Ache gas treatment facility in Fell Block (GeoPark operated with 100% WI) was completed and the field was put into production at a rate of approximately 6.7 mmcfpd. Brazil compression plant completed: Pressure maintenance facility to stabilize production and develop remaining Manati gas field reserves (non-operated with 10% WI) was completed and field production resumed at approximately 220 mmcfpd gross. Re-opening of La Cuerva oil field in Colombia (GeoPark operated with 100% WI and temporarily shut-in since 1Q2015) with more efficient cost structure to generate positive cash flows at low oil prices. Continuing cost reduction efforts underway – including operating costs, capital expenditures, G&A and service contractors (cash costs per barrel down 33% as reported in 2Q2015). New Brazil blocks: Four new attractive exploratory blocks in the Reconcavo and Potiguar basins – adjacent to existing GeoPark acreage – were awarded in the Brazilian Round 13 auction (4Q2015). Oil and Gas Production Update Average consolidated oil and gas production reached 19,244 boepd in 3Q2015 compared to 21,548 boepd in 3Q2014 – mainly resulting from increased Colombian production, stabilized Brazilian production and declining Chilean production. Consolidated oil production accounted for 76% of total reported production in 3Q2015. Average net oil production in Colombia increased by 9% to 13,033 boepd in 3Q2015 compared to 3Q2014 – mainly resulting from new field discoveries, development drilling and reengineering of well completions and operations. The Llanos 34 Block (GeoPark operated with 45% WI) represented 91% of GeoPark’s Colombian production in 3Q2015. Chile: Average net oil and gas production in Chile decreased by 46% to 3,207 boepd in 3Q2015 compared to 3Q2014 (consisting of 54% lower oil production and 33% lower gas production) – mainly resulting from the natural decline in base production and no new wells drilled during 2015. (Ache gas field was put into production at the end of 3Q2015 and is expected to stabilize production during 4Q2015). The Fell Block (GeoPark operated with a 100% WI) represented 94% of GeoPark’s Chilean production. Colombia: Chachalaca Oil Field Discovery: The Chachalaca 1 exploration well was drilled to a depth of 12,270 feet. A test conducted in the Mirador formation resulted in a gross production rate of approximately 1,100 bopd. The well was put into production in October 2015. Jacana Oil Field Discovery: The Jacana 1 exploration well was drilled to a depth of 10,900 feet with hydrocarbon shows in both the Mirador and Guadalupe formations. A test conducted in the Guadalupe formation resulted in a gross production rate of approximately 1,880 bopd. The well was put into production in October 2015. Jacana Oil Field Development: The Jacana 2 appraisal well was drilled to a depth of 11,092 feet with hydrocarbon shows in the Guadalupe and Mirador formations. A test conducted in the Guadalupe formation resulted in a gross production rate of approximately 1,000 bopd – with the well expected to be put into production in October 2015. Tilo Oil Field Development: The Tilo 2 appraisal well was drilled to a depth of 11,826 feet with hydrocarbon shows in the Guadalupe formation. A test conducted in the upper Guadalupe formation resulted in a gross production rate of approximately 800 bopd – with the well expected to be put into production in October 2015. Ache Gas Project: The Ache 1 gas field discovery well was put into production at the end of September 2015 at a rate of approximately 6.7 mmcfpd (1,100 boepd) following installation and completion of a gas treatment facility.MA development well to be drilled in 4Q2015 on the Ache gas field is under consideration. Brazil: Average net gas production in Brazil decreased 15% to 17,754 mcfpd, or 2,959 boepd in 3Q2015 compared to 3,480 boepd in 3Q2014 – mainly resulting from temporary shut-in of the Manati gas field during the tie-in of the new compression plant. The Manati Field (non-operated with a 10% WI) represented 100% of GeoPark’s Brazilian production. The Operator completed construction of a surface compression plant in the Manati gas field. Production in the Manati gas field was shut-in for approximately 11 days during the tie-in of the new plant. The compression facility will stabilize production and allow full development of the Manati gas field reserves. GeoPark was awarded four new exploratory blocks (covering 30,200 acres) in the Brazil Bid Round 13, complementing GeoPark’s existing exploration portfolio in the Reconcavo and Potiguar basins. GeoPark has committed to invest a minimum of approximately $3.50 million (including bonus and work program commitments) during the first exploratory period ending 2019. The bidding round was organized by the ANP and all proceedings and bids have been made public. The winning bids are subject to confirmation of qualification requirements. •

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INDUSTRY NEWS: AFRICA

DEA Accelerates Its Growth Strategy Acquisition of E.ON’s Norwegian assets › Major step forward to grow in core regions › DEA expands position on Norwegian Continental Shelf › Transaction more than doubles DEA production in Norway DEA Deutsche Erdoel AG acquires 100% of the shares of E.ON’s Norwegian oil and gas business to create an enlarged Norwegian portfolio more than doubling its current production in Norway to 75,000 barrels of oil equivalent per day (boe/d). This acquisition also provides access to promising growth options through material development and exploration. The value of the transaction is US$1.6 billion, including US$100 million of cash on the balance sheet as at the effective date of January 1st 2015. The transaction is subject to approval by Norwegian authorities and the European Commission. The deal comprises equity interests in 43 licences, and adds production of circa 45,000 boe/d through working interests in three producing oil and gas fields, namely Skarv (28.1%), Njord (30%) and Hyme (17.5%). The portfolio is well balanced in terms of oil and gas composition and has a full-cycle asset base. DEA will also acquire interests in additional developments and discoveries, including Snilehorn, Snadd and Fogelberg, as well as a broad portfolio of exploration licences on the Norwegian Continental Shelf. Commenting on the transaction, Lord Browne, Chairman of the Supervisory Board of DEA Deutsche Erdoel AG, said, “This acquisition is the first step in DEA’s new growth strategy. DEA has access to substantial financial resources, and I expect the company to make further investments in the Norwegian Continental Shelf, as well as in its other core areas”. “This acquisition in Norway is a perfect fit to our renewed business strategy,” said Thomas Rappuhn, CEO of DEA Deutsche Erdoel AG. “It will grow our reserves, significantly increase our production and add growth optionality to our portfolio. “In addition, we continue to work on further growth in Europe and North Africa by progressing development projects in our portfolio, as well as by pursuing M&A opportunities in these regions.” Rappuhn commented. DEA has been present in Norway for over 40 years through its subsidiary DEA Norge AS. DEA Norge currently holds 31 licences, including working interests in a number of producing fields such as Snorre, Gjøa, Knarr, Snøhvit and Veslefrikk. DEA Norge is operator in several exploration licences and of the Zidane field, which is currently being considered for development. The upstream company is a partner in the promising Alta discovery. According to Managing Director of DEA Norge Hugo Sandal, the new assets are an excellent enlargement of DEA’s operations. “The acquisition of E.ON E&P Norway, and further growth plans will open exciting perspectives and great opportunities for our current and new colleagues. We are trusted with the management of high quality production, development and exploration assets which we are looking to perform through safe and sustainable operations.” •

Nigeria and Angola Emerge as Production Hubs for Paints and Coatings Used in Offshore Oil & Gas Applications

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igeria and Angola present attractive growth and operational expansion opportunities for manufacturers in the offshore oil and gas (O&G) paints and coatings market. With raw material availability and local manufacturing capabilities catalysing production and supply lines, the two countries are rapidly emerging as the African hub for the offshore O&G paints and coatings market. New analysis from Frost & Sullivan, Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola, finds that the market earned revenues of $675.1 million in 2014 and estimates this to reach $1,131.4 million in 2019. The applications covered in the study are offshore O&G facilities, dry docks and fabrication yards. Construction of local production facilities will be vital in order to ensure cost-competitiveness, as transportation costs of raw materials are steep. Local construction will be further justified once higher import tariffs are implemented by the Nigerian and Angolan governments. As import duties are lower for unfinished than for finished goods, suppliers could consider setting up a local presence in the form of a mixing plant where imported raw materials are blended. “While in-country manufacturing is a must-have, building a brand reputation will be essential for long-term, sustainable growth,” noted Abdullah. “Partnerships between local and international companies will speed up the development of high-quality products and assist offshore O&G paints and coatings manufacturers in meeting demand in the Nigerian and Angolan markets.” Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan’s related studies include: European and North American Plastics Additives Market, Global Impact and Implications of Low Crude Oil Prices, and Global Fuel Additives Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. •


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INDUSTRY NEWS: ASIA PACIFIC

Gladstone LNG Ships First Liquefied Natural Gas Cargo

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he first shipment of liquefied natural gas (LNG) from the Gladstone LNG project has been loaded and is now on its way to South Korea. The plant at Curtis Island will produce 7.2 million tons of LNG per year once at full capacity. All production from the plant will be sold under long term contracts to Asian buyers, notably in South Korea and in Malaysia. “Gladstone LNG is a major milestone for our activity in Australia, marking the beginning of the Group’s LNG production in the country. As the Group’s sixth start-up of the year, the project will also contribute to our production growth in 2015. We are continuing to develop LNG assets in Australia with the Ichthys project, expected to start up in 2017,” said Arnaud Breuillac, President Exploration & Production. Located in Queensland, Australia, the project comprises the development of several onshore coal bed methane fields in the Surat and Bowen basins, a 420 kilometer gas transmission pipeline and a twotrain liquefaction plant on Curtis Island, near Gladstone. Total holds a 27.5% stake in the Gladstone LNG project, alongside partners Santos (30%), Petronas (27.5%) and KOGAS (15%). Santos operates the upstream activities and facilities of the project, comprising the wells, pipelines and compression hubs, whilst the gas transmission pipeline and the plant are operated by GLNG Operations Pty Ltd., a company owned jointly by the Gladstone LNG partners. Total Exploration & Production in Australia Total has been present in Australia since 2005. The Group’s exploration and production portfolio comprises a 27.5% stake in the Gladstone LNG project and a 30% stake in the INPEXoperated Ichthys LNG project currently under construction in the Northern Territory. Offshore, Total has interests in seven exploration licences in the Browse, Bonaparte and Carnarvon Basins, four of which it operates. Onshore, Total has nonoperated interests in four shale gas permits in the South Georgina Basin located in central Australia. •

Mott MacDonald and China Petroleum Engineering Extend Collaboration Agreement

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ott MacDonald has extended its partnership with China Petroleum Engineering (CPE) to form a new three party collaboration agreement with China Financing & Investment Property Corporation (CFIPC). This strategic agreement will see the three companies work together to offer comprehensive, customer-focused services across a broad range of sectors. The three parties intend to pursue opportunities connected to the One Belt, One Road initiative, China’s roadmap for building infrastructure and trade ties. Projects will cover ports, energy, oil and gas, utilities, water treatment, waste management plants, roads, bridges, buildings, pipelines and storage, liquefied natural gas, airports and jetties. The partnership is part of a wider initiative between British and Chinese governments to form closer collaboration on infrastructure. CFIPC will provide funding & management, while Mott MacDonald and CPE will deliver technical, project and cost management services. The first projects to move forward under the new agreement include a China water treatment development along the Xinjiang silk road in China as well as improvements to ports, roads and infrastructure in Indonesia. Albert Allan, Mott MacDonald’s managing director for oil, gas and petrochemicals, said: “Mott MacDonald has supported public and private companies in oil and gas producing regions for over 50 years. We bring a wealth of experience to the partnership, which will enable successful project delivery by the combined team. Our experience demonstrates the depth of skills available from UK companies.” •


Delivered LNG fell 11.1% from a Month Ago

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rices of spot liquefied natural gas (LNG) for delivery to northeast Asia averaged $6.700 per million British thermal units (/MMBtu) for November, according to latest Platts Japan/Korea Marker (Platts JKM™) data for month-ahead delivery. The figure reflects the daily JKM assessment published by Platts, a leading global energy, petrochemicals and metals information provider and a premier source of benchmark price references, between September 16 and October 15, expressed as a monthly average. The marker fell 11.1% month over month, despite the fact that the market was moving into its traditionally stronger peak winter demand season. At $6.700/MMBtu, the JKM was 53.5% below prices seen for the same delivery month in 2014, marking the largest year over year change since April 2015. The JKM had begun the assessment period at $7.00/MMBtu, before trending down steadily to reach $6.50/MMBtu by the beginning of October, as a slew of prompt supply tenders – mostly originating from projects in the Asia Pacific Basin – exacerbated extremely limited demand among end buyers in Northeast Asia. Some 13 cargoes for prompt October and November delivery were offered out through various tenders during the assessment period. Meanwhile, buyers in South Korea, Taiwan and Japan continued to show no interest for cargoes. Indeed, several Japanese buyers were heard to be grappling with high inventories following lower-than-anticipated power demand during the summer and were reportedly trying to cooperate on deliveries where possible. Similar sentiments were echoed in China, where buyer CNOOC had recently issued its first supply tender for two cargoes loading in Australia, marking a significant shift in the fundamental supply and demand balance of the LNG spot industry. Interest continued to emerge from India and the Middle East, however, where end buyers collectively tendered or launched an expression of interest for an estimated 12 cargoes during the October/November delivery period. However, not all expressions were awarded. “Tender awards for prompt cargoes, particularly from buyers in Egypt and Pakistan, appeared to rejuvenate demand among portfolio suppliers and traders either looking to optimize or short cover positions,” said Stephanie Wilson, managing editor of Asia LNG at Platts. “There was a late surge in buying interest for November deliveries at the end of the trading month. In response, Platts JKM values rebounded to reach $6.70/MMBtu by the end of the assessment period, with some demand from Indian importers still apparent and awards for November deliveries still pending from Pakistan.” At an average of 29.1 cents during the trading period, the price spread between the Platts JKM and U.K. onshore National Balancing Point (NBP) gas futures has been the narrowest seen since April 2015. This is keeping the arbitrage trade between the two basins firmly closed, said Wilson. With prices of term contract Japan Customs Cleared crude oil in Japan estimated at approximately $9-to $10 dollars per million British thermal units (MMBtu), calculated at a $14 to 14.85% indexation plus $1.00-1.25/MMBtu alpha, the possibility to secure November spot cargoes from Asia for delivery into term positions in Japan was once again viable. “This encouraged price optimization among sellers,” Wilson said. The price of thermal coal, a possible competing fuel, decreased 23.0% year over year, while fuel oil was down 56.1% from the same month in 2014. •

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INDUSTRY NEWS: MENA

Commencement of Oil Production From Faihaa-1 Well in Block 9, Iraq Kuwait Energy plc announces the commencement of oil production from Faihaa-1 well in Block 9, Iraq. Kuwait, October 18 2015: Kuwait Energy plc (“Kuwait Energy”) announces that the consortium comprising of Kuwait Energy Company (60%) as the operator, Dragon Oil (30%) and the Egyptian General Petroleum Corporation (10%) has commenced oil production from Faihaa-1 well in Block 9, Iraq. The Faihaa-1 well is located in Block 9 field, which is situated in the hub of Iraq’s oil industry in the Basra Governorate, in Southern Iraq. Production has begun from the Faihaa-1 well in the order of 5,000 bpd on 32/64 inch choke. Sara Akbar, CEO of Kuwait Energy, said: “We are proud to have begun production in record time after making the discovery last December, which demonstrates the feasibility of executing such a fast track project in world record time in South Iraq. This would not have been possible without the cooperation and full support of the Iraq Ministry of Oil, the South Oil Company, the Block 9 Joint Management Committee (“JMC”) Chairman and its members, the support of our partners, Dragon Oil and the Egyptian General Petroleum Corporation, and the diligent and determined Kuwait Energy team in Basra and Kuwait.” •

The President of Egypt Abdel Fattah Al-Sisi meets Eni ‘s CEO, Claudio Descalzi

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he President of the Republic of Egypt, Abdel Fattah AlSisi, and Eni’s Chief Executive Officer, Claudio Descalzi, met yesterday in Cairo to discuss Eni’s activities in the country. During the meeting, Eni’s CEO presented to President Al-Sisi the development plan for the Zohr field. The parties confirmed the joint commitment to accelerate the production start-up of the field. Furthermore, they discussed the possibility of setting up a gas hub in the eastern Mediterranean Sea aimed at making the Egyptian transport and export facilities also available for the nearby discoveries. Eni has been present in Egypt since 1954 through its subsidiary IEOC, a company which has always been a frontrunner in exploring and exploiting gas resources in Egypt since the discovery of the Abu Maadi Field in 1967. Eni is the main hydrocarbon producer in Egypt, with a daily equity production of 190,000 barrels of oil equivalent.•

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E&P

Statoil: More Gas From Troll A The two new giant compressors that started up on the Troll A platform this month will help increase gas recovery by 83 billion cubic metres. The occasion attracted a platform visit from EEA and EU affairs minister Vidar Helgesen. A lot of gas to carry. EEA and EU affairs minister, Vidar Helgesen (right), with senior vice president for operations west, at the Troll A platform’s gas export pipeline. 30% of Norway’s total gas export to Europe travels through this pipe to the gas processing terminal at Kollsnes. “Europe is in a transition phase with regard to both competitiveness and climate. Stable and competitive gas deliveries from the Norwegian continental shelf (NCS) play a key role along these two axes. Higher production and flexibility from the Troll field is therefore good news to both Norway and Europe,” said Helgesen during his visit. “This is a new strategic milestone for the Troll field. The compressors are an important investment to ensure sustainable, long-term production and activity on the Norwegian continental shelf (NCS),” says Gunnar Nakken, newly-appointed senior vice president for the operations west cluster. Vidar Helgesen (Conservative Party of Norway), minister of EEA and EU affairs and chief of staff at the office of the prime minister. The compressors ensure a daily export capacity from the Troll field of 120 million standard cubic metres of gas, totalling 30 billion standard cubic metres of gas per year. This is equivalent to the consumption of 10 million households in Europe. The compressors are an important measure to meet the Troll field’s long-term production profile, currently extending to 2063. They are operated by landbased power from Kollsnes west of Bergen, ensuring zero emissions of carbon dioxide and nitrogen oxides from the platform. “This is an important climate contribution from Statoil,” Nakken emphasises. During the past 18 months Statoil has started up lowpressure compressors on Troll A, Kvitebjørn, Heidrun, Kristin, Åsgard and Gullfaks, the last two on the seabed. This increases the recovery rate by more than 1.2 billion barrels and extends the life of the installations. The project has extended the expected life of Troll A from 2045 to 2063. These investments in existing fields give highly profitable barrels. The field recovery increase the compressors provide, 83 billion standard cubic metres of gas or 533 million barrels of oil equivalent, is more than the Aasta Hansteen and Valemon fields combined,” says Nakken. Extensive and global project As the gas is being produced, the pressure in

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the reservoir drops. In order to recover more gas, the pressure on the wellheads is reduced, and compressors help the gas on its way. Troll already has two compressors and will now have two more. It has been an extensive project that has lasted for five years – in several countries. The compressor module before departure from Thailand. The main supplier Aibel built the compressor module at its yard in Thailand, the integrated utility (IU) module was prefabricated in Poland and assembled in Haugesund, where the smallest module was also built. The three modules total more than 6,000 tonnes. Five new 70-kilometre-long cables have been laid between Troll and land, and a converter station has been built at Kollsnes. On the platform the current is converted back intoalternating current. The converters, cables

and the compressors’ engines have been supplied by ABB. The project has also made space for the new modules on Troll A: “It is a challenge to remove old equipment and install new equipment on a gas platform in production. In the peak period the project had 130 people offshore, and a total of nine million hours have been spent on the project,” Torger Rød, Statoil’s head of projects. All projects encounter challenges – also in the final stages – but the compressors started up on the planned date and well below budget: “The project was delivered at just below NOK 10 billion, one billion below budget. This is due to good and close collaboration between all involved parties, including Statoil, our partners and suppliers,” says Rød.


Polymers for Use in Extreme Conditions Oil and Gas Innovation sits down with Fluorocarbon, which has grown to become one of the UK’s largest fluoropolymer processor and global supplier of PTFE, polymer related components and engineering plastics and stock shapes. Fluorocarbon helps readers understand why it’s becoming entailment to use high performance polymers in extreme situations such as deep wells offshore.


OGI: Could you start by explaining Fluorocarbon’s credentials and experience in terms of the applications of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long you have been active, and your worldwide reach? Fluorocarbon has a few different product lines, which are of course applicable to various industrial sectors. And in terms the applications of your solutions, which sectors within the oil and gas industry do you primarily help? Fluorocarbon: Fluorocarbon first entered the oil and gas market in the 1980’s with manufacture of ball valve seats and inserts, and the supply of a range of Fluoroglide® PTFE skidway plates, specifically for load out of the BP Fortes jacket from Mcdermott’s former fabrication yard in Ardersier, Scotland. Since these initial projects, Fluorocarbon has continued to develop the manufacturing techniques and materials utilised throughout subsea and surface fluid handling applications and skidway load out systems. For example we are now able to offer a complete package for load-outs of Jackets and process deck skidway plates, which can include; Greenheart timber skid-shoes and lubrication systems incorporating both wet and dry lubricants (FL414 and FL614). Having established a dedicated seal business unit in 1993, we were able to support all seat and seal product and material development, bringing solutions to the challenge of fluid handling. Over the years we have accumulated many hours of site attendance to understand the demands of the application. In regard to skidway solutions, we include the additional service of a Fluorocarbon engineer visiting the construction yard to discuss and advise on the options available for a low friction load out, followed up by a visit to train the customer’s engineers on the optimal procedures for

Fluoroglide® PTFE skidway plates.

installation of Fluoroglide® skidway plates. Fluoroglide® skidway plates are used in construction yards throughout the world. To date Fluoroglide® systems have skidded structures of up to 35 000 tonnes with a friction value of 3-5%. Valve seats and seals have been developed for many of the valve configurations such as Floating Ball, Trunnion and Gate valves, across the extent of oil and gas sectors, including cryogenic service of LNG, the full range of pressure class, extreme service of sweet and sour gas and refinery process plant. Furthermore, recent developments in polymer materials and design configuration enable Fluorocarbon designed products to address the demands of HPHT applications. OGI: Technology is now paving the way for producers to reach oil which was previously thought to costly or too difficult to pump from difficult parts of the oil field. But temperatures in certain wells in these more “hostile environments” can be too taxing on traditional materials used to applications such as sealing. Could you explain how this works and what solutions are available for companies who are having this issue? Fluorocarbon: The demand for hydrocarbons continues to grow and consequently the equipment required to extract these reserves, particularly from deeper formations, must address the increased pressure and temperature evident in deeper wells situated throughout the world. Typically, the industry defines HPHT as pressures above 15,000psi (1035 Bar) and/or temperature above 350F. (177°C) In isolation, many high performance polymers are well within their working temperature limits at 300F (150°C), however, higher temperatures reduce the mechanical properties of polymers, particularly in regard to strength and creep resistance. The introduction of pressure then creates forces

which attempt to extrude polymers in to clearances and reduce initial interference. This reduces the products ability to maintain effective sealing over extended periods, particularly required of subsea installations. Seal Designers and Materials Engineers need to innovate. Designers will consider configurations which may include novel antiextrusion devices which work to reduce the likelihood of creep. Material improvements, by inclusion of fillers and their form and orientation, can increase the mechanical properties at elevated temperatures. Process changes can further impart flexural properties which allow the use of polymers traditionally too stiff to consider as energized seals for instance. OGI: Could you enlighten our readers of the ways where you help clients with your products and services? Fluorocarbon: Fluorocarbon have worked with many Wellhead and Tree component manufacturers, having supplied seals tested and approved in accordance with API 6A, and supplied at PSL 4. These include valve stem seals, tubing hanger and stab connector seals. Each application has unique challenges that require bespoke solutions in configuration and material specification. For instance, Tubing Hanger seal stacks need to be double acting and provide a robust seal capable of withstanding long assembly travel. Valve stem seals are required to provide critical environmental sealing, yet maintain manageable friction characteristics so as not to contribute to high torque loads. In each case, Fluorocarbon engineers work closely with the component designers to ensure all aspects of the application, assembly and hardware are designed and specified for optimum service and performance of the fluid handling solution. Fluorocarbon also provide long lasting subsea solutions. We were approached in 2005 with a request for a slide bearing which would operate subsea, (1000mtrs) for 25 years between the PLETS / FLETS, and mud mat. The problems were that there was little information available or any history on the long term effects of sea water on a bonded Fluoroglide® PTFE bearing. Hence Fluorocarbon was unable to give any guarantees. The solution was to design a bearing using specially formulated PTFE which would not support any marine growth or the coefficient of friction be effected by long term service life on the sea bed. In addition the Fluorinoid® PTFE may be exposed to high UV concentrations where it could have been exposed during the installation period in the clients fabrication yard in areas of high UV levels prior to be lowered to the sea bed. Fluorinoid® FL134, was the proven and specified material, for the PTFE sliding element. Having resolved the sliding element choice of material the second half of the problem was how to retain the sliding element


Seal Designers and Materials Engineers need to innovate.

securely whilst allowing the PLET to slide against the Mud mat for a long period in excess of 20 years. A combination of mechanical fixing and adhesive bonding was evaluated and proven to be the correct combination for a slide bearing to be able to operate subsea for many years. This design has been approved by BP, Total and Impex. With a number of major projects completed, Fluorocarbon was further awarded the contract by McDermott’s to supply a large quantity of J Bearings for long term service for the subsea pipe lines off Australia in Browse ICHTHYS project. OGI: How can Fluorocarbon help a company who is dealing with this bearings issue? And how are the solutions implemented? Fluorocarbon: Fluorocarbon’s strength includes our skill in understanding exactly what the customer requires and converting the problem to a solution using 50 years of material development, new processing technologies and 30 years of personal experience. We have found that our engineers speaking directly to the client have a much better understanding of what is required rather than the traditional system of sales engineers reporting back before any action is undertaken. As a result of this approach we have developed specialised products and solutions for the oil and gas industries. OGI: One of the Fluorocarbon products, mentioned previously, which are used worldwide by many industry players is the Fluoroglide® Skidway. Where is this technology used primarily? What size loads

do these skids usually handle and are they bespoke solutions? Fluorocarbon: Fluoroglide® skidway plates are generally made to suit a particular fabrication yard’s specification. Fluorocarbon is able to manufacture skidway plates to a maximum size of 3000mm x 1500mm, plates of this size are difficult to handle in the yard and only called for in specific applications on the yard or barge skid beam. A typical skidway plate is 2000mm x 500mm which can be used in multiples to suit the loading on the skid beam. Normally the Skidway plate load-out system is considered viable for structure loads above 6000 tonnes, although many projects of lower loads utilise the system depending of complexity. Fluoroglide® skidway plates can be re-used more than once making them cost effective.

Seal designers and materials engineers need to innovate.

OGI: Finally, it is well known that Fluorocarbon has completed projects for many industry players around the world. Could you share with our readers of a particular case study where you helped a client with your products and services? Fluorocarbon: Fluorocarbon’s expertise in solving sealing and slide bearing applications is well proven but it is not always about load pressure or temperature!

A leading Oil and Gas service company manufactures steerable drills and bias units which incorporate a device used to protect the hardware during down-time and transportation. The former product was fitfor-purpose but had disassembly difficulties and was a disposable item. Fluorocarbon was approached to address the difficulties and by observation and consideration of the handling methods and needs of the operators, a simple clam-shell clamp design was proposed. The quality of the product was better than the former component, resulting in re-usability after return, assessment and re-work where necessary. The material selected also allowed us to recycle the material of those that were scrapped. This ensured there was no waste or environmental impact to the disposal of the clamp, further supporting our policies and stance in regard to our ISO14001 approval. •

Fluorocarbon Ltd For more info please contact: Tom Savage / Andrew Iddeson +44(0)845 2505 100 oilandgas@fluorocarbon.co.uk www.fluorocarbon.co.uk

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E&P

Igor Sechin Gives a Keynote Speech at the Fourth Eurasian Forum in Verona Rosneft Chairman of the Management Board Igor Sechin gave a keynote speech at the opening of the Fourth Eurasian Forum “Innovations and International Integration” in Verona, Italy, which is one of the key forums for developing a dialog in the Eurasian space. Igor Sechin expressed an opinion that it is “Big Eurasia” that historically has been the center of the world civilization, and global economic growth is concentrated in the territory of this macro-continent.

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he Chairman of Rosneft Management Board said that despite the negative marco-environment and the pressure of sanctions on Russia, the economy of the country has been stable, and the power sector has demonstrated certain growth: both in terms of hydrocarbon production, and export supplies. In contrast, European power industry is experiencing difficulties, according to Igor Sechin. Presently, the European refining margin has grown due to feedstock cost decrease. But, generally, this industry has long been facing hard times. The issue of ensuring economic viability is becoming critical, and in this context, potential expansion of cooperation with Russia is fundamental, Igor Sechin believes. With long-term contracts for supply of crude of certain quality, refineries will be able to define their strategies for demandbased modernization in a more accurate and efficient way”, the Leader of Rosneft said. - The refineries that have stable supplies of crude of the quality which best fits their refining capacities, will get competitive advantages. According to Igor Sechin, the energy dialog is one of the most promising mechanisms for building Europe - Russia - Asia intercivilization bridge . Eurasia remains the world’s largest producer and consumer of oil. 59% of the world’s oil reserves (142 bln. t) and 60% of world’s refining capacities are located there, the Head of Rosneft noted. World’s two largest oil producers - Russia and Saudi Arabia – are also situated in the Eurasian continent. Even though, production in the region does not cover the demand of Eurasia which accounts for 65% of the world’s oil consumption. The shortage is about 100 mm t of oil per year. This gap will be increasing to reach 500 mm t by 2030. Thus, oil producers of Eurasia have certain competitive advantage due to their geographic positions in respect to the most receptive oil markets». Sechin stressed that significant re-distribution of energy consumption in favor of the Asian part of the continent is currently going on.

The share of Europe in global primary energy consumption declined from 34% in 1990 tо 19% in 2015, pointed out the Head of Rosneft. - At the same time the share of Asia increased from 31% tо 50%. Consequently, the geography of activity of Rosneft and Russia, as a whole, changes in the direction of the APR countries: I would like to stress that European companies started to lose their historical advantage in respect of import deliveries for the needs of Rosneft. In particular, following the 2015 procurement procedures, the volume of European contracts is 9 times less than the volume of deliveries over the same period under the past contracts, stated the Chairman of Rosneft Management Board. Nevertheless, in the opinion of Igor Sechin, the natural historical synergy of the European and Russian civilizations offers hope for resumption of the full-scale dialog in the

near future. In our view, Rosneft alone can offer European partners to participate in the projects for the amount of about $100 bln., the Head of Rosneft said. The scale of Rosneft investment program assumes one of the world’s largest anchor orders for engineering industry and chemical industry products, in the first place – about 4.6 bln. euro annually, pointed out Igor Sechin. – Аnd Rosneft aggregate demand for materials in 2016-2018 will amount to € 15.9 bln.. Sechin named the partnership between Rosneft, Pirelli and ChemChina as one of the examples of integral cooperation in Eurasian space, Italian Pirelli demonstrated a model approach to risk minimization and the use of synergy potential of Eurasian cooperation. What happened is actually a large-scale launch of European tire technologies at the largest APR markets with the use of resource potential of Russia and financial capability of China. •


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INNOVATIVE SOLUTIONS USING HIGH-STRENGTH STEEL Joakim Nystrรถm, Key Segment Manager, SSAB, looks at how to reduce weight and costs for steel structures without compromising safety.


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ne cannot miss the focus on reducing costs in the Oil & Gas industry today, because of the low oil prices and overproduction. The idea of optimising steel structures with new designs and stronger steels is popping up again and again.

The first key to good optimisation is knowledge of the load distribution and the dynamics of the load. Twenty years ago we had no calculation systems that could make detailed load analysis, now we have. Having a better understanding of the load distribution makes it easier to find out where the critical areas are in a structure and then adjust a design to perform better. The second key is to adapt the design for managing the higher stress in the material. With more elastic behaviour, joints need to be designed with more care. With dynamic loads that can cause fatigue, the ideal is to really try to create solutions without welding at the most critical areas. The third key to a successful optimisation is to use a high quality steel. When allowing a higher stress in the material the sensitivity to porosity, inclusions and crack propagation is higher. With dynamic loads, thickness steps between plates will create load concentrations, so there is a higher demand for narrow thickness tolerances. High impact toughness comes from a clean steel with low alloys and gives both a good safety margin and good weldability. So, there are some ifs and buts to consider. But is it possible to save costs when looking at using high strength steels? SSAB has been leading the development of extra and ultra high strength steels for more than 30 years and have together with our customers really moved the usage of high strength steels forward creating value and benefits. We today have more than a hundred engineers and experts supporting customers with their designs using high strength steels. Lack of time and resources for the reengineering and additional calculations needed has previously been a problem in the offshore market, but now when things are slow we believe that using your skilled engineers in cooperation with SSAB knowledge service center will create more efficient solutions for the future.

..why not put a stop to copy paste engineering and make use of the latest 30 years of steel development and design knowledge?

In many OEM applications and structures there is great potential to save both weight and costs while using high strength steels. But, (because there is always a but) utilising the high yield strength in a structure needs to be done carefully and should not compromise safety and reliability. It is also important to acknowledge that there are areas where this approach is not suitable.

Here three examples where we look at three different load cases:

1. A trailer chassis

of the steel. But because of the intelligent application of stiffening bends, we now are using our top of the line steel grades. We apply Strenx 1100 and 1300 grades with thickness’s as low as 1.5 mm in some cases. The weight reduction is more than 50%. When putting the crane on a vessel, there will be a 3-dimensional load case that give not only one directional bending but also multidirectional bending and torque. Still, we believe that there is significant possibilities for weight reduction and increased performance using a 700 MPa steel grade. 3. Tipper bodies: Load case: Impact, dent resistance and wear. We’re speaking about a solution that is more elastic with less stiffeners in combination with hard and strong steels. This results in a 40% reduction of plate thickness, has given a 75% reduction in welding and finally, four times higher production capacity in the workshop. Also at the same time, the pay load has increased with 50% compared to original designs.

Load case: Bending, local stress centras close to connections with axels and tow bar and a lot of fatigue. Solution: By smart design, avoidance of welds in critical positions and our Strenx 700 MC steel (that is both tough, strong and almost free from inclusions and impurities), we have succeeded to reduce the weight by 30%. Additionally, at the same time increased the lifetime performance because of less fatigue failures. We can also point out that with the new chassis structure which makes use of the whole trailer height, one of our customers has succeeded in reducing the weight even further. It’s also worth noting that for offshore and marine applications this technology can be used in drill towers, access bridges and other beam based constructions.

“So why not put a stop to copy paste engineering and make use of the latest 30 years of steel development and design knowledge?” remarks, Joakim Nyström, Key Segment Manager at SSAB. • If you have any questions or need assistance with any SSAB product, please get in touch.

2. Crane booms: Load case: Bending, Buckling and Local stress centras at joints. With this scenario, the critical challenge is local buckling when optimizing the thickness

SSAB AB Telephone:+46 8 45 45 700 Email:info@ssab.com Web: http://www.ssab.com/

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MIDSTREAM & PIPELINES

Panalpina and JDA Help Customers Increase Asset Velocity Three years ago, Panalpina announced its intention to deploy a single warehouse management system (WMS) across all of its logistics facilities throughout the world. The roll-out of the RedPrairie – now JDA – WMS is progressing ahead of schedule thanks to Panalpina’s experts in all regions and a specially developed and unique fast deployment model. To date, JDA WMS has been rolled out at more than 30 Panalpina sites globally – enabling Panalpina to optimize service levels and inventory for customers.

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he WMS roll-out builds upon Panalpina’s logistics strategy to become the first 3PL (third-party logistics provider) to improve inventory management by helping customers increase asset velocity – moving products more quickly and reducing warehoused stock. JDA WMS provides for various scanand-validate check points throughout the warehousing process, allowing Panalpina to offer its customers a highly customizable solution. Panalpina also uses the system to track and compare the performance of its four-wall operations globally and then works towards benchmarks, for example in terms of very high inventory accuracy. JDA WMS has so far been deployed in 33 sites worldwide. “The fast roll-out of the JDA warehouse management system worldwide is another way that Panalpina demonstrates its strategic commitment to growing in the logistics arena,” says Mike Wilson, global head of Logistics at Panalpina. “We have developed an unmatched level of in-house expertise, which we will use for the benefit of our customers to further accelerate the roll-out at our remaining logistics facilities.” Panalpina developed its own rapid deployment model for JDA WMS in order to offer customers a standardized approach and consistent implementation process across the globe. This unique model is particularly useful to international customers whose products have short life cycles, as the deployment of the system takes place quickly and cost effectively. Data from JDA WMS is used for advanced inventory forecasting. JDA WMS also includes a feature-rich reporting and analytics module, which can be integrated into Panalpina’s data analytics services for more accurate customer inventory and demand forecasting. Panalpina uses customer data extracted from JDA WMS to map inventories across product life cycles. Using sophisticated proprietary algorithms, Panalpina then calculates at what stage the inventory changes in order to better estimate

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minimum and maximum inventory holding, where to position inventory and what services to offer. Customers benefit by having a partner that can keep their products moving and minimize working capital requirements in their supply chains. Panalpina calls this approach Demand-Driven Inventory Dispositioning (D2ID). While JDA WMS can be deployed for all industries, Panalpina has so far implemented the program mainly for its fashion and technology customers, which rely on a fast time to market. These customers benefit from the high levels of configuration available in JDA, and from specific features including multi-channel dispositioning, rapid returns processing and cross-docking. Panalpina most recently deployed JDA WMS for a new high-end fashion customer in Italy. Panalpina’s Mendrisio fashion hub in southern Switzerland uses JDA WMS to provide the

customer with inventory management and distribution services around the world. The fashion house’s merchandise is produced in northern Italy and then imported to Mendrisio, where Panalpina’s bonded warehouse can facilitate distribution within Switzerland or reexport it to Europe and other key markets. Panalpina also offers a full returns logistics program at Mendrisio, accepting returned goods back into the facility and determining their quality, in order to return them quickly to stock in boutiques or outlet stores and maximize sales. “JDA and our unique rapid deployment model have allowed us to offer our customers agility, speed and the flexibility to meet their needs across regions and industries. We efficiently track and manage their inventories and move their products as needed,” says Mario Leuverink, Global Head of Logistics Systems at Panalpina. •


3

3M Delivers Third-Quarter Sales of $7.7 Billion and Earnings of $2.05 Per Share; Company Announces Restructuring Plan

M today reported third-quarter earnings of $2.05 per share, an increase of 3.5 percent versus the third quarter of 2014. Sales declined 5.2 percent year-on-year to $7.7 billion. Organic local-currency sales grew 1.2 percent and acquisitions, net of divestitures, added another 1.0 percent. Foreign currency translation reduced sales by 7.4 percent yearon-year. Operating income was $1.9 billion and operating income margins for the quarter were 24.3 percent, up 0.9 percentage points year-onyear. Third-quarter net income was $1.3 billion and the company converted 101 percent of net income to free cash flow. 3M paid $635 million in cash dividends to shareholders and repurchased $1.5 billion of its own shares during the quarter. Organic local-currency sales growth was 5.0 percent in Consumer, 3.7 percent in Health Care, 2.9 percent in Safety and Graphics and

0.2 percent in Industrial; Electronics and Energy declined 2.8 percent. On a geographic basis, organic local-currency sales grew 2.3 percent in Latin America/Canada, 1.5 percent in the U.S., 1.5 percent in EMEA (Europe, Middle East and Africa) and 0.4 percent in Asia Pacific. “3M delivered a solid operational performance in a continued slow-growth environment, marked by strong earnings, organic growth in all geographic areas and expanded margins,” said Inge G. Thulin, 3M’s chairman, president and chief executive officer. “We continue to take actions to strengthen our portfolio, increase our scientific edge through research and development, and transform our business processes through a new global ERP system. We are building a stronger, more streamlined and more focused company that can compete and win for years to come.” To further strengthen its competitiveness, 3M also announced a restructuring plan that

will result in an expected reduction of 1,500 positions worldwide with estimated pre-tax savings of $130 million in 2016. The company anticipates a fourth-quarter pre-tax charge of approximately $100 million, or $0.13 per share, related to this plan. Reductions will be primarily focused on structural overhead, largely in the U.S., and slower-growing markets with particular emphasis on EMEA and Latin America. 3M also updated its guidance for the full-year 2015. Excluding the announced restructuring charges, 3M now expects earnings will be in the range of $7.73 to $7.78 per share Organic local-currency sales growth is expected to be in the range of 1.5 to 2.0 percent, versus previous guidance of 2.5 to 4 percent. The company anticipates that fullyear free cash flow conversion will be in the range of 95 to 100 percent, versus a previous estimated range of 90 to 100 percent. •

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MIDSTREAM & PIPELINES

First Wärtsilä 31 Engines Selected for State-Of-The-Art Icebreaker The recently introduced Wärtsilä 31 engine, which has been acknowledged by Guinness World Records as being the world’s most efficient 4-stroke diesel engine, has been selected to power a state-of-the-art new generation icebreaker currently under construction at the PJSC Vyborg Shipyard. The ship is being built on behalf of FSUE Atomflot, the enterprise of ROSATOM, the State Corporation for Atomic Energy. The order was signed in September.

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hen delivered, the icebreaker will serve the Yamal LNG project in Sabetta, located northeast of the Yamal peninsular in Russia. The project is one of the largest industrial undertakings in the Arctic. Fuel efficiency and reliability were the two major deciding factors behind the choice of the Wärtsilä 31 engine. Other key considerations in the decision process were the engine’s operational flexibility and its outstanding performance in extreme environmental conditions. The new vessel will operate in temperatures as low as minus 50°C. The new generation icebreaker Aker ARC 124 will feature three 8-cylinder Wärtsilä 31 engines. The installation will also include Wärtsilä’s online monitoring of the engines, thereby enabling their operating condition to be closely followed remotely. An additional characteristic of the newly introduced vessel is that it will feature a totally new approach to maintenance. The first major service required by the Wärtsilä 31 comes only after 8000 running hours (compared to 2000 running hours for engines of a similar class), thus making the Wärtsilä 31 a clear leader in this field. This dramatic improvement reduces maintenance costs to a previously unattainably low level, as well as greatly increasing the vessel’s uptime availability. “When the Wärtsilä 31 engine was introduced in June, a new approach to marine power generation was launched. By combining a drastic reduction in fuel consumption, increased power output, and a four-fold extension of normal maintenance intervals, our customers now have the chance to redefine how they operate their vessels to a new level of competitiveness. FSUE Atomflot’s selection of the Wärtsilä 31 engine after such a short time following its introduction, confirms the value that this engine brings to the market,” says Roger Holm, Senior Vice President, Engines, Wärtsilä Marine Solutions. “We are confident that this project will be a success because of Wärtsilä’s credibility in the industry, and the positive experience from

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our long established partnership with this solutions provider. High vessel availability and fuel efficiency are the key winning factors for any ship owner. The Wärtsilä 31 engines will facilitate a significant improvement in vessel operations, making it extremely competitive on the market. This new icebreaker, powered by Wärtsilä 31 engines, will be the most technologically advanced ship of its kind in the whole world,” noted FSUE Atomflot First Deputy Director General - Chief Engineer Mustafa Kashka. “We are extremely proud to have the opportunity to realize a project involving the newest and most modern domestic icebreaker. This vessel harmoniously combines the operating flexibility and efficiency of the power plant, with high safety standards and good ergonomics of the ship’s equipment. Despite the fact that the Vyborg shipyard has already had orders for six icebreakers, we are confident that this icebreaker, the Aker Arc124 will rightly take its place among the most efficient modern domestic vessels operating in Arctic waters,” says Alexander Solovyev, General Director of PJSC Vyborg Shipyard. The Wärtsilä 31 engine The Wärtsilä 31 is the first of a new generation of medium speed engines, designed to set a new benchmark in efficiency and overall emissions performance. It is available in 8 to 16 cylinder configurations and has a power output ranging from 4.2 to 9.8 MW, at 720 and 750 rpm. This 4-stroke engine has the best fuel economy of any engine in its class. At the same time, it maintains outstanding performance across the complete operating range. Its modular design enables a significant reduction in maintenance time and costs, thereby improving power availability and reducing the need for parts. •


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Market Reporting Consulting Events


Interview: Compression Technology For the Offshore Industry Granzow is a leading supplier for the industry of screw compressors, compressed air treatment, energy friendly compressor controls. They also produce a complete range of solutions related to automation products, such as bursting discs, bursting panels, fittings, thermostats, valves, pneumatic cylinders. An extensive program of efficient pumps as high pressure pumps, diaphragm pumps, hose pumps, mobile pumps. Complete line of vacuum pumps, measurement equipment, leak detection systems and sputter systems. Oil and Gas Innovation sits down for an extensive interview on how their products help the industry with their Mechnical Engineer, B.Sc., T.S.Mortensen.

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GI: Could you start by explaining Granzow AS’s credentials and experience in terms of your compressed air, vacuum and nitrogen products for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long you have been active, and your reach? T.S.Mortensen: The Danish company Granzow A/S have, in the last 80 years, delivered many different types and models of compressors, for the compression of air or different gasses. The last twenty years we have increased the demand for quality of the reciprocating and rotary compressors, question of reliability, continues function, low service cost, low noise level, and most of all the following documentation for components and units: Certifying the total plant build and delivered to the customer. OGI: What types of products do you supply for the industry? Could you explain in detail these different types of products? What type of materials are they made from? T.S.Mortensen: Different dryers for gas or compressed air. In hazardous areas, such as ATEX zoned areas, the “Conformity Assessment Module” have to be defined. This is because the dryers are used downstream (petrochemical plants) you need the ATEX certified compressors. The total plant has to be in accordance with ATEX directive 94/9/EC. OGI: What are the primary applications of your products for oil and gas related companies? T.S.Mortensen: The equipment described is often used in larger plant for Nitrogen generators on FPSO’s or on an oilrig. This is where the compressed air is also used as an “instrument and dryer package” for the supply of dry and oil free compressed air.


If one was to verify the need of this quality of air, which would be in accordance with the ISO8573-1, a part of the instrument air would be used for breathing air for different maintenance work. This means that the total maintenance of the compressor and dryer package is extended to the fixed interval measuring of the breathing air quality. Breathing air must be measured in addition to the industrial norm ISO85-73-1. The reason why this is, is because the different pollution possibilities have to be measured, in accordance with EN12021. OGI: What different specifications are supplied by Granzow, and how do these factors apply when finding the right solution for a client? T.S.Mortensen: The typical example of an installation for an extension of the adsorption dryer system would be in a refinery. Essentially, the design for the package which would be in accordance with the ATEX directive would be the regeneration of a dryer, with a capacity of

2000 Nm3/h at 10 bar working pressure, and a dew point of – 40 C. This would have to be considered as the regeneration function need a high level of kW consumption for the use of either heat ( average 16 kW.) or dry compressed air. (We’re speaking of an average 18 % of flow.) OGI: Finally, can you provide an example or case study for our readers of a situation where a company’s operations were helped by using Grazows’s products? T.S.Mortensen: With respect to one of our particular projects, we worked on a certain plant. The plant had steam available for the purpose of regeneration, which basically means the best possible specific power consumption for the continues running eg. the dryer would be 8700 running hours /per year. Air compressors in radial construction, will be the future solution for many offshore or industrial installations. What we will see the radial design where the velocity of

the air through the diffuser is changed to pressure. This is very different to the normal displacement compressors. The reason why is the single stage or two stage screw compressors and piston compressors. Service level for the radial machine is lower than the displacement models. The result is the installation area which is needed for the process is minimized. •

Granzow A/S Telephone: (+45) 43 20 26 00 E-mail: info@granzow.dk Web: http://granzow.dk

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HEALTH & SAFETY

OPITO Urges Industry Not to Compromise on Safety at Sub $50 Oil as Final Programme for OSCC Revealed A global oil and gas skills and training body today called on the industry not to cut corners on safety training and competence in the face of a much lower oil price. The call was issued as OPITO announced the final speaker line-up and content for its sixth annual conference and exhibition on safety and competence to be held in Abu Dhabi on the 3rd of November and sponsored by Shell.

T

he only global event solely focused on safety and competence in oil and gas, OSCC (OPITO Safety and Competence Conference) brings together governments, industry, regulators and training providers to share new thinking and best practice on improving safety and developing competence among the onshore and offshore oil and gas workforce. This year’s theme “The Economics of Safety at $50 Oil” will look at how the industry maintains competence and continues to keep its people safe in a low oil price environment. David Doig, group chief executive for OPITO said: “With operators looking for ways to cut costs in the current climate it is imperative that there are no compromises when it comes to ensuring the safety of the workforce. It is a challenging time but the economic conditions cannot be a reason to relax standards - not when the cost of making mistakes are too high in terms of loss of life or damage to the environment. “Hazards and risk remain the same regardless of the oil price and a lower BOE must not mean that they are managed differently. It is the smart organisations who realise that in times of turbulence, a highly skilled, safe and motivated workforce is critical to remain competitive. Production operations will continue as will the need for maintenance. If we take a cynical view that maintenance activities will be reduced then the need to ensure the workforce is trained and competent becomes even greater.” The OSCC will explore how the industry can avoid the long-term damage caused by shortterm cost-cutting measures through strategies that increase efficiency without putting people or the environment at risk. Arjan Ross, Operations HSE Department Head at ADNOC and Simon Roddy, General Manager - Safety, Environment & Social Performance, Shell Upstream International will join Shell Group’s

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Vice-President of Safety, Tony Paul and Kevin Myers, Deputy Chief Executive of the Health & Safety Executive (HSE) in discussing managing people in a downturn, increasing efficiency whilst retaining talent and driving a common approach to hazard management. World-renowned business speakers, Kevin Gaskell and Andrew Garner will bring perspectives from outwith the oil and gas sector to the conference. In his session on the psychology of managing a downturn, Mr Gaskell will use his experiences at the helm of Porsche, BMW and Lamborgini to demonstrate the value of leadership, teamwork and innovation in strategies that deliver efficiency and opportunity without impacting on safety or quality. Recognised for steering a generation of business leaders through the turbulence that erupts when their established industry maps and models no longer work, Mr Garner has helped fashion the make-up of boardrooms of many of the most successful global businesses.

He will consider the best ways in which to retain and recruit the best talent when cost savings are being made. Paul Mahoney’s session entitled ‘Safety off the Balance Sheet’ will demonstrate the real cost of safety in terms of the long-lasting human cost when systems fail. His raw and moving presentation will show why safety must be considered as an investment rather than a cost. Around 500 delegates and 20 exhibitors will attend the OSCC which provides a unique opportunity to hear from safety leaders from other industries, learn about new thinking, find out more about global standards and new training practices and network with industry decision-makers who are committed to making the oil and gas sector safer for every employee, anywhere in the world. The event is free to register thanks to the support of headline sponsors Shell and other industry sponsors: Atlas, IHRDC, SEFtec Group, Maggie Braid Associates and Wood Group. •


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In partnership with

European Autumn Gas Conference | EAGC 17 - 19 November 2015 InterContinental Geneva, Geneva, Switzerland

Celebrating 30 Years Connecting European Gas Markets With New Global Opportunities With key fundamental shifts taking place within the global energy space such as the current oil price slump and first US LNG exports coming online within months, can Europe benefit from a surge in liquidity, investment and M&A activity? Programme highlights include:

TRADERS DAY 17th November 2015

Global Trading Environment: European Trading Futures in a Global Market Focus on Trading Liquidity: Liquidity in the Looking Glass LNG Portfolio & Optimisation: LNG in a Fragmenting World – Indices, Hedging & Trading – Will They Change Too? Drinks Reception hosted by Koch Supply & Trading Speakers include: Mehmet Ertürk, Department Head of Tariffs, Energy Market Regulatory Authority of Turkey Frédéric Barnaud, Executive Director of LNG, Shipping & Logistics, Gazprom Marketing & Trading Yves Vercammen, General Manager, Eni Shipping & Trading

CONFERENCE DAY ONE 18th November 2015

European Commission Keynote Address: The Outlook for European Security of Supply Focus on Supply/Demand/Consumer Part 1: Beyond the Borders of the European Union New Supplies + New Routes + New Infrastructure + New Investment = Is this Really Going to Happen?! Speakers include: Maroš Šefčovič, Vice-President for Energy Union, European Commission Julio Castro, Chief Regulatory Officer, Iberdrola Azizollah Ramazani, Chairman, National Iranian Gas Export Company (NIGEC)

CONFERENCE DAY TWO 19th November 2015

The Executive Energy Leadership Panel Focus on Oil Volatility and the Future Opportunities for Gas in Europe Coal, Renewables & Nuclear – the Faustian Bargain for Europe? Speakers include: Laurent Vivier, President Gas, Total Gas & Power Gertjan Lankhorst, CEO, GasTerra Jan Chadam, CEO & President of the Board, Gaz-System SA

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