Oil and Gas Innovation Summer 2015 Edition by Emery Hill Media Ltd

Summer 2015 £19.95 €28.95 $31.95

Business Information. Industry Solutions.

PIPELINE SPECIAL REPORTS: Why It’s Important to Coat Your Subsea Pipes. In Depth in the Field of Protective Surface Coating & Industry The Mitigation of Compensator Lock-Up

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FROM THE EDITOR

Summer 2015 £19.95 €28.95 $31.95

Business Information. Industry Solutions.

Summer 2015 CEO Matthew Patten Managing Editor Simon Milliere

Publishing Director Edward Findlay edward@oilandgasinnovation.co.uk Commercial Director & Advertising Enquiries Nicholas Parker nparker@oilandgasinnovation.co.uk Technical Director and Website Valters Skrupskis web@oilandgasinnovation.co.uk Office Assistants Janet Elseberg admin@oilandgasinnovation.co.uk Mylene Daugan mylene@oilandgasinnovation.co.uk Contributing Journalist Emma Patten Business Development Executives Luigi Palasco Market Researchers Mylene Miguel Kiefer Reddy Melissa Phanjoo Jesse Wiafe Dasol Moon

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After years and year of negotiations and sanctions a deal has finally been reached between the so called P5 + 1 countries (namely the United States) and the Islamic Republic of Iran, over the use of their nuclear programs with the intention of making it impossible for the republic to build a nuclear weapon. The Americans have laid crippling sanctions on Iran for years now and it seems it may have worked to get them to the negotiation table. And while regional peace may have been at the forefront of the masterminds of this deal, one of the lasting legacies of this deal will turn out to be the opening up (finally) of Iran’s lucrative economy to the world. Obviously one of the principle areas in which the world economy can provide a great export market is of course oil and gas. Iran is currently the 7th largest producer of crude oil, with one of the largest proven reserves in the world. It’s also worth noting that Iran was in the top 5 in terms of BPD production before the sanctions were levied on them. Now that these sanctions are due to be lifted in the future, we may expect that they will once again begin the climb the oil producer ladder to one the podium positions. Reuter’s earlier quoted Iran’s Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said the Islamic Republic would focus on its oil and gas, metals and car industries with an eye to exporting to Europe after sanctions have been lifted, rather than simply importing Western technology. “We are looking for a two-way trade as well as cooperation in development, design and engineering,” Nematzadeh told a conference in Vienna. “We are no longer interested in a unidirectional importation of goods and machinery from Europe,” he said. All this being said while the UN security Council is endorsing a deal to end the years of sanctions on Iran in return for curbs on its programme. While the world may rejoice in the fact that another potential disastrous confrontation between the West and a Middle Eastern country is for now off the table, the oil market is waning a bit with the good news out of the Austrian summit. Since the announcement of the deal, the already saturated crude oil market (who was looking about to recover from the 2014/15 oil glut crash) once again was sent into a free fall with investors worried about a fresh batch of Iran oil into the already saturated market. Since the deal was announced Brent Crude has fallen from $58.98 to around $54.62. This of course could be explained by the shock value of the news and will be easily corrected once investors decide to bull their way back in, seeing that oil is trading on a discount. But there is also long term implications for the market. Iran is planning on having a big coming out party, with headlines such as: Iran on Thursday outlined plans to rebuild its main industries and trade relationships following a nuclear agreement with world powers, saying it was targeting oil and gas projects worth $185 billion. – Reuters But what these reports fail to explain is the nature of the deal and the fact the sanctions will take a long time to be lifted. And because of the major shutdown caused internally by the sanctions, by the time Iran gets around to running full capacity, (let alone beyond full capacity) we will be talking years. The market is going to be well prepared for this will react accordingly. Goldman came out with an interesting report which highlighted the complicated situation within the country: The timeline of the various steps required to reach such sanction relief suggests that Iranian oil flows will continue to remain capped until 2016, consistent with our expectation,” Goldman wrote in a note to clients. “The impact of sanctions relief on Iran’s production would likely initially be a draw-down of floating storage and an increase in production of several thousand barrels per day. In the end, Goldman did say to its clients, and we do agree with this assertion. “Goldman added that oil supply is at risk of being too high in 2016, because previous estimates had “conservatively assumed no increase in Iranian flows.” Plus, other OPEC members have already increased their production, exceeding Goldman’s initial 2016 forecast, and even bringing risk to 2H15 forecasts. Simply put, more oil production from OPEC countries, including Iran, — which attempt to collude to keep supply low and prices high — will bring prices down. • Please Enjoy The Spring 2015 Edition of Oil and Gas Innovation. Yours Sincerely,

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CONTENTS COVER STORIES & SPECIALS Why It’s Important to Coat Your Subsea Pipes.

OGI’s Emma Patten speaks with minerals company, LKAB Minerals AB the issue of pipeline coatings and how one of their products, MagnaDense, is used these days by companies to produce a very high quality concrete that helps with protection in subsea environments.

The Mitigation of Compensator Lock-Up

ScanTech Offshore are the leading well test support service company.

INDUSTRY NEWS Europe

North America Africa

Asia Pacific MENA

EXPLORATION & PRODUCTION Gas and Condensate Discovery in the North Sea

Operator Statoil and its PL146/PL333 partner Total E&P Norge have made a gas and condensate discovery in the Julius prospect in the King Lear area in the North Sea.

Victoria Oil & Gas Plc Provides Q2 2015 Operations Update

Gas production increased 178% for the period compared to Q1 2015, with an average daily production of 12.6mmscf/d. Production reached a peak of 16.9mmscf/d, with an average 5 day working week output of 13.1mmscf/d.

INDUSTRY EVENTS

46 5

Surface Technologies www.cwst.co.uk Surface treatments have been used for many years in key industries to protect components from common failures and reduce maintenance either as part of the manufacturing process, post-manufacture or in service. Curtiss-Wright Surface Technologies are specialists in the application of surface treatments and our history of innovation and experience dates back to the Wright Brothers and Glen Curtiss. Our customers receive a high quality, flexible and cost effective service through our network of over 70 worldwide facilities, often using us as a single source for all their surface treatment applications. Our international facilities operate all key industry and customer approvals including NADCAP, ISO 9001:2008 and AS9100 Rev C and handle all sizes of components for industries such as aerospace, oil and gas, automotive, medical and general industrial. Our experienced mobile teams also repair components on-site to the same specification as our dedicated facilities. l

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Improving component life and performance

CONTENTS MIDSTREAM & PIPELINES

In Depth in the Field of Protective Surface Coating & Industry

Oil and Gas Innovation’s Emma Patten speaks to WIWA Wilhelm Wagner GmbH & Co. KG, producers of spraying systems such as the DUOMIX range and innovative coating systems which are specially optimized for corrosion protection.

New Pipeline Infrastructure Key to Unloading Freight Rail Backlog, Helping America’s Farmers

Expanding America’s pipeline infrastructure would relieve the nation’s overburdened freight rail network and improve service for farmers nationwide, according to a new study from the American Farm Bureau Federation..

WWL ALS

Specialising in solutions for abnormal loads and project cargoes across the UK, Europe and to Worldwide destinations.

Construction of Major Houston Crude Oil Storage Facility

Details on plans to use capital to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out all of the requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility in commercial service.

PROCESSING

ICIS Selected as Benchmark Provider For Shanghai Clearing House Petrochemical Swaps Leading petrochemical market intelligence provider, ICIS, is pleased to announce that it has been selected by the Shanghai Clearing House (SHCH) to provide price benchmarks for two upcoming petrochemical swaps contracts.

HEALTH & SAFETY You Know the Drill – or Do You?

SPECIAL REPORT: SUBSEA PIPELINES

Why Itâ&#x20AC;&#x2122;s Important to Coat Your Subsea Pipes. Are You Using the Most Efficient Materials? OGI Investigates. In this special feature OGIâ&#x20AC;&#x2122;s Emma Patten speaks with minerals company, LKAB Minerals AB who is internationally active in the market of industrial minerals with a leading position within a number of product applications. Among other industries LKAB helps the oil and gas sector with a range of solutions. We discuss at length the issue of pipeline coatings and how one of their products, MagnaDense, is used these days by companies to produce a very high quality concrete that helps with protection in subsea environments. LKAB helps us make the connection on how their minerals mined in Sweden are helping oil companies at the bottom of places like the Baltic Sea.

Emma Patten, Investigative Journalist

OGI: Could you start by explaining LKAB’s credentials and experience in terms of protection of pipelines 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? LKAB: LKAB Minerals is part of the LKAB Group which was established in 1890 in Sweden. LKAB Minerals in an international industrial minerals group with a leading position in a number of product applications. We develop sustainable mineral solutions in partnership with our customers, supplying natural minerals engineered for functionality and usability. We have supplied our high density mineral, MagnaDense, to many concrete weight coating pipeline projects through Europe, the Americas and the Middle East. One of the most prestigious projects supplied with MagnaDense 8s, a natural iron ore from our own mines in the north of Sweden, has been the Nord Stream project, running from Russia to Germany. LKAB Minerals have supplied 1.1 million tonnes of MagnaDense for this

particular project which has the capacity to transport up to 55 billion cubic meters of natural gas via the Baltic Sea. As well as in Sweden, LKAB Minerals has local stocks of MagnaDense in different industrial grades available in the USA, China, United Kingdom, The Netherlands and Germany. Local stocks give our customers the advantage of receiving the quantities they need for the different stages in their projects, varying from one single big bag to a 100,000 Mt vessel. OGI: Could you explain in detail how MagnaDense works? LKAB: MagnaDense is a high grade, high density aggregate manufactured from the natural iron oxide magnetite. LKAB Minerals mine and process it at our group’s resources and can therefore ensure a long-term reliable source of consistent quality material. MagnaDense is available in coarse and fine grades as well as mixtures consisting of coarse and fine (all-in) aggregates complying with the requirements of EN 12620. Top sizes range from 2 to 20 mm. MagnaDense has a long

history of use as a construction material for both in-situ and precast applications. MagnaDense 8s is a concrete aggregate which is produced and supplied to pipe coating customers according to the EN12620 “Aggregates for concrete”. This norm specifies the properties of aggregates obtained by processing natural materials such as the LKAB Minerals MagnaDense. The high density of MagnaDense results in decreased volume for a given weight, or alternatively, an increased weight per given volume, offering a better overall economy. Due to its high apparent particle density of minimum 4,700 kg/m3, it allows the concrete weight coating customers to produce concrete with densities that start where others stop. MagnaDense enables the LKAB Mineral’s customers to produce ready mixed concrete with densities up to 3,300 kg/m3. The excellent particle characteristics of MagnaDense enable high quality concrete to be produced with standard equipment. Applying heavy concrete to the pipelines will provide negative buoyancy and mechanical protection in subsea environments.

MagnaDense is a high grade, high density aggregate.

OGI: From our understanding, when dealing with clients they usually have a preconceived notion of what their concerns are, what issues have been arising etc.. Can your mineral solutions be tailored and bespoke to the different demands of different situations? Could you explain how LKAB deals with different clients on a case by case basis? LKAB: Although MagnaDense is a standard product, it has been designed in consultation with pipe coating companies to make sure it will meet their demands. MagnaDense 8s is produced on large scales according to the EN12620 assuring compliancy for their specific application as a heavy concrete aggregate. Not only the product properties are very important, other advantages LKAB Minerals can offer are availability, quality and logistics. Besides the strategic stock locations throughout Western-Europe and in the USA, the port of Narvik in Northern Norway can hold stocks up to another 120,000 tonnes of MagnaDense. Our customers need the assurance that we can supply year round at a consistent high quality. OGI: Moving on to offshore platforms, it’s our understanding that minerals are sometimes used on platform legs and seabases. Can you explain how this process works? Also why would it be better to use a product such as MagnaDense over tradition methods? LKAB: Offshore Gravity Based Structures (GBS), as the name implies, need ballast to stay where they have been installed. As the Archimedes principle confirms, the slimmer the construction of the GBS the less buoyancy is possible. Whenever designing a Gravity Based Structure, engineers look for the most optimal balance between economics and techniques. One of the important benefits of MagnaDense 8s is the urge to settle, giving it a very high submerged density of up to 3,100 kg/m3. For many years LKAB Minerals have proven that it is able to supply a cost effective product

Natural ore from our own mines in the north of Sweden

according to their customers demand at any location in the world. MagnaDense has been successfully used as a ballast material in offshore platforms in numerous projects in Asia, Australia, Europe and the Americas. OGI: Finally, it is well known that LKAB has completed projects for many industry players around the world. Could you enlighten our readers of a particular case study where you helped a client with your products and services? LKAB: We can highlight one particularly interesting case of MagnaDense that was used as ballast and after 22 years in the offshore application has recently been reclaimed, recycled and reused. In 1993 LKAB Minerals sold 1800 metric tonnes of iron ore ballast material for the Draugen Floating Loading Platform (FLP) which was operated by Shell Norway 150 km offshore from the Norwegian coast. After 22 years in operation Kvaerner Stord were awarded a contract in 2014 by Norske Shell for dismantling the Draugen FLP. The MagnaDense, which was unchanged in properties from the 22 years under water, was repurchased in 2015 by LKAB Minerals to be used in another application, proving the potential to recycle MagnaDense in a

sustainable and financially sound way. The project to dismantle the Draugen FLP started in April 2014 and was completed in May 2015. The recycling target was set to 98 percent for the complete platform, as this would be “industry best practice” for this type of operation. They were able to recycle close to 99% of the material, including the MagnaDense, thereby exceeding the ambitious project sustainability target. LKAB Minerals subsequently purchased the material and shipped it to the Netherlands for a Dutch customer who used it for heavy concrete production, proving the potential to recycle MagnaDense used in offshore ballasting. Following the decommissioning, two separate samples of the MagnaDense material were analysed; one taken in Stord in Norway before it was shipped and one sample taken from the material upon arrival in The Netherlands. The two tests were compared with the original COA (Certificate of Analysis) from 1993 and it was concluded that the MagnaDense had not been affected by the 22 years in subsea conditions. Furthermore the Dutch institute Deltares performed objective laboratory environmental tests of MagnaDense mined in 2014, which confirmed the results from the material recycled from the Draugen platform. • If you have any questions or need assistance with MagnaDense or any LKAB product lines, please get in touch.

LKAB Minerals AB Phone: +46 771 760 400 Fax: +46 771 760 401 E-mail: sweden@lkabminerals.com

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The Mitigation of Compensator Lock-Up Catastrophic T Failure

he safe operation of floating drilling rigs is a wellknown industry challenge; during completion, well testing, well intervention and as workover operations. As part of an ongoing commitment to delivering safety and efficiency to the oil and gas industry worldwide, ScanTech Offshore part of James Fisher and Sons plc, is breaking boundaries with a controllable shearing system that improves the safety of semisubmersibles and drill ships during completion and workover operations.

Bails set up in the derrick on a recent job in Australia.

Designed to incorporate a shear pin in the system, Safe Releasing Bails provide a controlled shear mechanism at a predetermined load reducing the risk of damage to expensive equipment, increasing safety of the drilling installationâ&#x20AC;&#x2122;s operatives and minimising the risk of environmental contamination.

SPECIAL REPORT

Shearing in a highly controlled manner at a predetermined load, during compensator lockup caused by mechanical failure, maintenance issues, human error or other means, is the critical success factor in Safe Releasing Bails design. Compensator lock-ups on both passive and active systems are recognised within the industry as a major process safety risk factor, and the results can be catastrophic. Three recorded cases are in SPE 59216, where each tension failure caused a break at a different point in the landing string. With the Safe Releasing bails, this tension failure is mitigated against. Many cases of compensator lock up are not recorded as they happen during drilling when it is not serious, however, as wells become more complex and pinned to bottom conditions become longer and more common, the risk of catastrophic failure increases. A recent survey revealed an estimate from a service company that a compensator locks up at least once every 9 months.

â&#x20AC;&#x153;

ScanTech Offshore are the leading well test support service company, with a team that includes ex-well test engineers, senior operators and well test managers...

When a compensator lock up occurs, a surface mounted safety system is a perfect solution to mitigate the risks of over tension.

The Bail arms feature a shear pin in the outer top section, specifically designed to break if lock-up occurs. Its position allows operators ease of visibility, if activated and in resetting but also restricts the arm from separating if the shear bolt does break. This is essential in ensuring systems can be made operational again in minimal time, following the event of compensator lock-up. The design for Safe Releasing Bails was originally conceptualised in 2004 and has been used on approx. 40 jobs in the North Sea since. ScanTech Offshore has retained the core innovation and functional capabilities that contributed to its extensive use and successes in the North Sea and are now embarking on a global roll out plan for Safe Releasing Bails, offering the solution to customers on a global scale.

commitment to the offshore oil and gas industry worldwide, by enhancing safe operations and reducing risk to personnel, operational and environmental concerns.

Most recently ScanTech’s Safe Releasing Bails have been used in Australian waters on an 8 well flowback campaign by an oil major, and a single well test by the same operator, and they are to be utilised for another 5 well campaign in 2015. Rita Painter, Business Development Manager at ScanTech Offshore, has been instrumental in championing Safe Releasing Bails for the global market and currently has units operational off the coast of WA. She commented: “There is a huge opportunity for rig operators worldwide to benefit from the simple yet highly sophisticated and effective solution that we call Safe Releasing Bails. There are currently 237 floating rigs operational and amongst them, compensator lock-up is recognised as a potentially huge risk; this risk can now be simply mitigated against using our bails.” Bringing Safe Releasing Bails to the global market continues to demonstrate James Fisher and ScanTech Offshore’s continued

Safe Releasing Bails are designed to comply with ISO 13628-7, the standard governing design and operation of subsea systems in relation to completion/ workover rises and are available as part of ScanTech Offshore’s rental and sale portfolios.

Excellent visibility to ensure bails are in the correct strong or working mode.

You can view the Safe Releasing Bails in action here: https://www.youtube. com/user/ScanTechOffshore

ScanTech Offshore are the leading well test support service company, with a team that includes ex-well test engineers, senior operators and well test managers, you can be assured that all products are managed and designed by the best people, that understand well testing. Today, ScanTech Offshore has the world’s largest fleets of 1600cfm Zone II and Rig-Safe air compressors in a containerised, stackable design to free up your deck space and allow a reduction in costly management bandwidth. Engineered to operate in arctic or tropical climates, the compressors provide reliability and high performance for your service anywhere. To complement the air, ScanTech Offshore have also developed the paramount fleet of reliable and robust 6.0Mbtu Zone II and 4.5Mbtu-6.0Mbtu Rig-Safe steam generators along with large bore heat exchangers and game-changing rig cooling solutions. ScanTech also offer a number of safety related products including the PyroSentry™ an award winning, fully automated fire detection & suppression system for safe storage of methanol; HeaterSentry™ Hydrocarbon detection and early warning for tube failure of heat exchangers and SafeDeploy™ a fully automated sub-pump deployment system. All specifically utilised during completions / well testing ScanTech are the market leader in the provision of Zone II rated equipment, including DNV 2.7-2 specification allowing equipment to meet the highest safety standards. For reassurance, contact ScanTech Offshore direct and see what difference they can make on your well test support. ScanTech Offshore have bases in Aberdeen (UK), Great Yarmouth (UK), Dubai (UAE), Luanda (Angola), Kuala Lumpur (Malaysia), Labuan (Malaysia), Perth (Western Australia) and Macae (Brazil) and operate out of 40+ countries, globally. •

Scantech Offshore Aberdeen, UK Tel: +44 (0) 1651 871440 Email: enquiries@scantechoffshore.com

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INDUSTRY NEWS: EUROPE

Elstree Company Scoops Award for Innovative Seismic-Imaging Instrument Silixa Limited based in Hertfordshire, has received an Innovation Award from the Institute of Physics (IOP) for developing the Intelligent Distributed Acoustic Sensor (iDAS), a seismic-imaging instrument which turns a length of standard optical fibre into a string of precision microphones. iDAS technology records the full acoustic signal simultaneously at every 1m over up to 40,000 data points and is used to collect uniquely high-resolution seismic data from within oil wells and from carbon capture and storage reservoirs. Optical fibres are often found in wells to provide communications to pressure and temperature gauges and Silixa’s technology turns the fibre into an optimum sensor array, at no additional cost or complexity to the customer. The iDAS relies on Rayleigh Scattering and launches pulses of light down the fibre and analyses the small amount of light backscattered to determine the change in fibre strain at every metre down the fibre. Silixa was founded in 2007 in the garage of one of the three iDAS inventors, who then went on to develop and commercialise the iDAS technology and its applications. Silixa has attracted significant investment and now employs 60 full-time staff. Silixa was recognised in the Deloitte Fast 50 index as the fastest growing UK electronics company in 2013, and the second fastest in 2014. Frances Saunders, president of the IOP, said: “It is excellent to see Silixa using a well-established technology in a new and innovative way allowing companies to transform standard optical fibres into seismic-imaging instruments. They are highly deserving of this award.” Dr Tom Parker, Chief Technology Officer at Silixa Ltd, said: “I am delighted that the cutting-edge technology developed by Silixa has been recognised with this prestigious IOP award. Our dynamic company shows that physics, when applied imaginatively, can help us deal with some of the world’s greatest industrial and social challenges, whether that is safely optimising oil production, or providing effective monitoring for carbon capture and storage. Silixa, like all technology companies, thrives on innovation, and we will carry on developing new ideas, solving tricky problems, and creating jobs and wealth.” Silixa Ltd will be showcasing their innovation at a parliamentary reception on 28 October and will also be attending an awards ceremony in London on 5 November. •

Neste Jacobs to Perform Consultant Services for INA Residue Upgrade Program in Croatia Technology, engineering and project management company Neste Jacobs and INA- Industrija nafte, d.d. (INA) have signed an agreement, where Neste Jacobs will perform consultant services in INA Residue Upgrade Program. INA intends to upgrade its Rijeka Refinery by means of implementing a residue upgrade program that consists of installation of a delayed coker unit for residue conversion, the required off-sites and coke port & handling system to convert heavy residue into high value products such as LPG, Gasoline and Diesel. Neste Jacobs has formed and mobilized a team of Consultants to support INA in project development and procurement process of the Residue Upgrade Program. Consultant services focus on areas of project management, project control, project information management, project quality, and procurement of FEED and EPC services. Neste Jacobs’ team will work as a part of integrated Project Management team closely together with INA. “We want to thank INA for their trust in choosing us as a consultant services provider for their Residue Upgrade Program”, says Jarmo Suominen, CEO of Neste Jacobs. “This project now awarded to us is a natural continuation to our chain of Project Management Consultancy projects, which we have provided to our customers with excellent results.” “As a company with a solid hands-on experience in handling large industrial projects and broad expertise in complex technology projects, Neste Jacobs was selected by INA for the consultancy services for our Residue Upgrade project,” stated Mr Bengt Oldsberg, INA’s Executive Director for Refining and Marketing. He added that contract with Neste Jacobs is another step in the process of the upgrade of Rijeka Refinery, which demonstrates INA’s commitment to investments that are able to secure long-term and sustainable development of the Company. •

INDUSTRY NEWS: EUROPE

TransAtlantic Petroleum Provides Operational Update TransAtlantic Petroleum Ltd today provided an operational update on its current drilling program. Operational Update TransAtlantic’s current net production rate is approximately 5,700 BOEPD, comprised of approximately 4,500 BOPD of oil and approximately 7.2 MMCFPD of natural gas. In the second quarter of 2015, TransAtlantic had average net production of approximately 5,900 BOEPD, a 6% decrease from net production in the first quarter of 2015 and an 18% increase over net production in the second quarter of 2014. Net production for the second quarter of 2015 was comprised of approximately 4,560 BOPD of oil and 8.0 MMCFPD of natural gas. In the second quarter of 2015, the Company resumed drilling on the Delvina-34 well in Albania, began drilling the Bahar-9 and drilled the South Goksu-1 wells in Southeast Turkey, and commenced workover activity in the Albanian oil fields. Southeastern Turkey - Şelmo Field TransAtlantic’s second quarter net production in the Şelmo field averaged approximately 2,660 BOPD. The Company continues its waterflood program in the Şelmo field and is in the process of expanding the waterflood infrastructure to the western part of the field. Production in the Şelmo field was slightly lower than expected due to increased downtime related to maintenance during the quarter. Southeastern Turkey - Molla Drilling Program TransAtlantic’s second quarter net production in the Molla area averaged approximately 1,130 BOPD. TransAtlantic is currently drilling the Bahar-9 well (100% working interest). The well will be drilled to a total depth of 10,600-feet. Currently, the Company is setting 7” intermediate casing at a depth of approximately 8,500 feet in the Mardin, which developed more porosity than offsetting wells. The well is targeting the Bedinan, Dadas, and Hazro zones. In the second quarter of 2015, TransAtlantic drilled the South Goksu-1 well (50% working interest), a 5,900 foot exploratory well drilled two miles south of the Goksu field. The Company has plans to complete the well, which targets the Mardin formation, in the third quarter of 2015. In the second quarter of 2015 the Company attempted to complete the Pinar-1 well, an 11,700-foot vertical exploration well drilled to test a separate 3D seismic structure west of the Bahar field. Log analysis indicates approximately 100 feet of potential pay zone in the Bedinan formation. However, due to irretrievable stuck casing issues encountered during completion operations, the well will be sidetracked at about 9,700 feet and the bottom 2,000 feet of the well re-drilled. TransAtlantic expects to continue development of the Bahar field and exploration in the Molla Area with the spudding of 3 additional Bahar field wells in the second half of 2015. Northwestern Turkey - Thrace Basin Development TransAtlantic’s first quarter net production from the Thrace Basin averaged approximately 8.0 MMCFPD. The Company is currently finalizing plans on its Thrace drilling program for the second half of 2015. Albania TransAtlantic’s current production in Albania is approximately 1,340 BOPD gross and 860 BOPD net. The Company is currently drilling the Delvina-34H1, a Cretaceous, deviated well, at a depth of 6,533 feet with a proposed target depth of 13,000 feet. Late in the second quarter of 2015, TransAtlantic began a workover program in its Albanian oil fields with the installation of 13 new downhole pumps and is experiencing positive production results to date. Hedge Update On June 10, 2015 TransAtlantic placed additional zero premium collars with a floor price of $66.50 for a portion of its Turkey oil production through 2016. On July 8, 2015 the overall hedge portfolio was valued at approximately $34 million. The Company continues to closely monitor the commodity price environment and will adjust its position as opportunities arise. Second Quarter 2015 Earnings Call TransAtlantic will provide additional operational and financial results on its second quarter 2015 earnings call, which it expects to host in early August 2015. •

INDUSTRY NEWS: N. AMERICA

Otto Acquires Onshore Alaskan Interest Otto Energy Limited has entered into a Letter of Intent with Borealis Petroleum Pty Ltd to earn an interest, through staged capital injections, in a substantial acreage position on the highly prospective, oil prone, onshore Alaskan North Slope held by Great Bear Petroleum Operating LLC (“Great Bear”). Through its agreements with Great Bear, Borealis has the right to acquire an 8% and 10.8% working interest (equivalent to 58,334 net acres) in 2 areas of Alaskan North Slope exploration acreage held by Great Bear through a staged purchase arrangement of up to US$20 million. Borealis is in the process of completing a US$8 million capital raising, of which Otto has contributed US$4 million. As a result, Otto holds approximately 40% of Borealis. Further funding rounds will be undertaken by Borealis over the course of 2015 to complete its entry into the Great Bear acreage. Otto has a first right of refusal to participate in these funding rounds. This staged earn-¬‐in structure provides Otto with the opportunity to move to increased/controlling ownership of Borealis as the Great Bear acreage matures. Consideration to paid by Borealis to Great Bear will be applied to: • Reimbursement of past costs incurred by Great Bear; • Additional 3D seismic data acquisition; and • Future work program of 2 appraisal wells and 1 exploration well (each with a capped exposure to Borealis of US$2 million). This drilling program is targeting existing proven geological play types, which if successful have the potential to yield significant recoverable resources. In addition, Borealis has an option to acquire an interest in a further 22,804 acres for a purchase price of US$25 million. This acreage includes a very recently drilled exploration well by Great Bear in early 2015 (Alkaid-¬‐1), and numerous exploration prospects (including the Phecda prospect). In the event Borealis exercises its right over this acreage, second stage consideration will be applied to appraisal drilling and testing. Otto’s Managing Director, Matthew Allen said: “Otto is very pleased to be entering into this partnership with both Borealis and Great Bear. The Alaskan North Slope is one of the world’s most prolific oil and gas exploration and production areas. Participation in the Great Bear acreage provides Otto with a clear focus post the sale of our Galoc production field and the drilling of the Hawkeye-¬‐1 exploration well, offshore Philippines which is readying for commencement of operations. With the ability to participate in multiple appraisal and exploration wells in the coming year, this acquisition positions Otto with significant exposure to the highly prospective and proven Alaskan North Slope.” About the Alaskan North Slope Alaska contains some of the largest conventional oil fields in North America and has produced more than 17 billion barrels of oil and 13 trillion cubic feet of natural gas. The US Geological Society estimates that the Alaskan North Slope has the potential to hold 40 billion barrels of conventional oil and over 200 trillion cubic feet of conventional gas. Whilst Otto and its partners’ focus will be on conventional oil, the unconventional oil plays located in this acreage contain significant potential and Borealis will have access to its proportionate share of any resource through its deal with Great Bear. The size and potential of the opportunities on the Alaskan North Slope see it as home to super majors such as Conoco, Shell, ExxonMobil, Repsol, ENI, Statoil and BP. Recent exploration drilling by Repsol in adjacent acreage has yielded a significant conventional oil discovery in the Kuparuk play sands; similar opportunities at this play level have already been identified in the Great Bear North Slope acreage. The Repsol well discovered several distinct oil accumulations and encountered a 650 foot oil column and 150 feet of net pay and is likely a multi-¬‐hundred million barrel oil discovery. This discovery was made after Repsol had farmed in to a 350,000 net acre position in 2011 in a deal valued at US$760 million. Further, financial incentives provided by the Alaskan Government to attract investment in the North Slope provides Alaska with the most attractive fiscal regime in North America and one that ranks very highly on a global scale. These incentives include: • 75% to 85% exploration and development cash rebates; • Flat rate production tax of 35% (previously taxes varied between 25-¬‐75% depending on profitability criteria); • 12.5% state royalty; and • Various production tax exemptions for new oil production. Oil production can be transported through the Trans Alaska Pipeline System (“TAPS”), which runs through the Great Bear acreage. TAPS provides regulated open access to domestic and international markets and presently has around 1.0 mmbopd spare capacity. Alaska is the only U.S. state able to export oil under current regulations. Alaska’s geographical location provides safe and effective shipping routes for crude exports into the Asian markets, allowing Alaskan projects to provide a strategic long-¬‐term petroleum reserve for the Asian region. About the Great Bear Acreage Great Bear is a private exploration company focused on exploring and developing conventional and unconventional resources on the North Slope of Alaska. Great Bear is the largest exploration leaseholder on the North Slope, having taken a position in a major play fairway south of the Prudhoe Bay and Kuparuk fields. Great Bear is the dominant exploration acreage holder in this highly prospective basin; holding 579,374 gross acres. Great Bear has undertaken significant exploration work on the acreage since 2011 with a cumulative spend in excess of US$150 million. This work includes: • Acquisition and processing of approximately 1800km2 of 3D seismic data. • Drilling of 2 unconventional stratigraphic test wells which cored 3 primary unconventional targets. Results from these wells indicate that the majority of the Great Bear acreage is expected to be liquids rich. These wells also encountered light oil in various conventional formations.

INDUSTRY NEWS: N. AMERICA • Drilling of a conventional exploration well (Alkaid-¬‐1) which specifically targeted a 3D defined Brookian reservoir. The Alkaid well results are under evaluation. The extensive, modern 3D seismic coverage, existing well control and proximity to the all-¬‐weather Dalton Highway and TAPS means that the Great Bear joint venture is well positioned to test numerous prospects during the 2015-¬‐6 and 2016-¬‐7 northern winter drilling seasons. The Great Bear acreage lies in the established conventional play fairways of the Ivishak, Kuparuk and Brookian sand reservoir systems in a region demonstrating oil maturity. • The Brookian turbidite fans are productive at offset Tarn, Meltwater and Tabasco Fields (field sizes of around 100mmbo to 300mmbo in place). • The Ivishak formation is the primary producing reservoir at the Prudhoe Bay Field (25 billion barrels of oil in place). • The Kuparuk sand play is regionally productive with the Kuparuk Field holding 5.9 billion barrels of oil in place and was also the target of the recent substantial oil discovery made by Repsol. The play types exhibited in the prospects so far identified by Great Bear have been the basis for other significant conventional oil discoveries in and around the Alaskan North Slope with discovered recoverable volumes being in the hundreds of millions of barrels. The size of these other discoveries within these plays provides an indication of the potential of Great Bear acreage in the success case. In terms of unconventional potential, the North Slope is rated by the USGS as being potentially one of the last remaining material oil shale plays in the United States. source rocks -¬‐ Shublik, Kingak and Hue/HRZ shales. All three of these source rocks are in existence within the Great Bear acreage. This substantial unconventional play will be the subject of a longer term evaluation program with the immediate focus of the joint venture being on the conventional oil potential. Multinational oil and gas services company, Halliburton farmed into a portion of the Great Bear acreage in 2011. Halliburton currently holds a 25% working interest in 126,186 gross acres. Halliburton’s interest ensures the joint venture exposure to leading edge experience and technology in developing unconventional plays and will ensure that this aspect of the exploration potential continues to be progressed in conjunction with the planned 2015 and 2016 conventional exploration work program. Borealis Petroleum Pty Ltd is a private Australian company incorporated for the purpose of participating in the Great Bear Alaskan North Slope project. The acreage position will be held by Borealis Alaska LLC, which is 100% owned by Borealis. Upon completion of its initial investment into Borealis, Otto will be the largest single shareholder in the company and will be entitled to appoint nominees to the Board of Borealis. Further, Otto and Borealis will enter into a technical services agreement, pursuant to which Otto will provide the benefit of its experienced geological team (along with other members of the Otto staff) to assist Borealis’ in its participation in the Great Bear project. Through the structuring of the transaction, Otto has the ability increase its shareholding in Borealis via first rights to negotiate the terms of any future capital raisings. Great Bear/Borealis Transaction Borealis and Great Bear have agreed a transaction whereby Borealis will acquire an interest in an area of 58,334 net acres over the Great Bear acreage. Consideration to be paid by Borealis for the acquisition is a total amount of US$20 million payable in stages and as set out below. This equates to an acquisition cost per acre of US$342 and which is extremely favourable when compared against prices paid for similar Alaskan North Slope acreage, which have been in the region of US$2000 per acre. In addition, Borealis holds an option to acquire an interest in a further 22,804 acres that includes the Alkaid-¬‐1 well and the Phecda prospect, through the contribution to well testing or a further exploration well in an amount of US$25 million. Borealis/Otto Transaction Pursuant to the LOI executed between Otto and Borealis, Otto will subscribe for shares in Borealis in an amount of US$4 million. Otto’s subscription forms 50% of a broader equity placement conducted by Borealis of US$8 million with the remaining 50% equity having been taken up by sophisticated and institutional investors. This initial capital injection will be used by Borealis to pay the required US$6.5 million due to Great Bear and to provide working capital for the Company. Further rounds of funding will be required by Borealis in order to meet its subsequent payment obligations to Great Bear and Otto has the right to participate in these further funding rounds up to the full amount to be raised. This staged earn-¬‐in structure provides Otto with the opportunity to move to increased/controlling ownership of Borealis as the Great Bear acreage matures. Under the LOI terms, Otto is entitled to appoint nominees to the Board of Borealis in numbers commensurate to its shareholding and will provide geotechnical and other relevant services to Borealis under a technical services agreement to ensure Borealis is an active participant in the Great Bear Joint Venture. The LOI is subject to standard conditions, including entering into formal agreements in respect of the transaction (including subscription, technical services and shareholder agreements); due diligence; and successful completion of the initial funding round. •

INDUSTRY NEW: AFRICA

Victoria Oil & Gas PLC: Installation Film on ENEO, Gas Fired Genset Connections H1 2015 A film showcasing the gas fired genset installations carried out in record time by VOG’s wholly owned subsidiary; Gaz du Cameroun S.A. (“GDC”), is now available online. The plants are located at the Bassa and Logbaba power stations in the major African commercial city of Douala, Cameroon and were successfully installed and commissioned within 21 days from the time equipment arrived at the intended sites. The film has been created by Altaaqa Globa, the equipment supply partners to the project who are operating in Cameroon for the first time. The film provides an overview of the on the ground work power engineers undertake in Africa, and how modular power solutions can be efficiently and rapidly installed for successful operation.. Within a month of installation the GDC-Altaaqa power solution has supplied the maximum 50MW required into the local grid to power businesses and homes. Installation Info The successful installation follows an agreement in December 2014 by VOG’s wholly owned subsidiary Gaz du Cameroun S.A. (“GDC”), with ENEO Cameroon S.A (“ENEO”), Cameroon’s integrated utility Company, to supply gas to two power stations, Bassa and Logbaba, located in the city of Douala. Altaaqa Global provided the power generation equipment for the project, and imported and installed the generators at the Logbaba and Bassa sites, with GDC supplying the gas to the rental gas power stations at both sites. GDC has worked with Altaaqa since the start of the year to make the gas connections. The power plant is the largest and fastest-installed rental power plant of this size in the history of the energy industry. It has added reliable power to the country’s grid, and demonstrates the deep commitment of companies such as GDC and Altaaqa Global in addressing Cameroon’s critical infrastructure needs and the effects of electricity shortages. The power plants were inaugurated at Logbaba in Douala with the ceremony attended by Dr Atangana Kouna Basile, Minister of Water Resources and Energy of Cameroon; members of the government; and senior executives from ENEO and GDC. Victoria Oil & Gas (VOG.L) is a gas utility company with operations in the industrial port city of Douala in Cameroon, which is the business hub to Central Africa. The Company’s subsidiary, Gaz du Cameroun S.A. (“GDC”), supplies cost effective, clean and reliable gas to industries in the Douala region from its onshore Logbaba Gas Project. Industrial customers are primarily supplied with gas through a 32.9km pipeline network built by GDC in Douala. Through thermal gas supply and provision of energy to the Douala grid, under the ENEO terms of agreement, GDC is helping to ensure that the Cameroon economy is underpinned with stable power. By developing a full integrated gas supply network, connected to wells located within the city itself, GDC has established a new range of energy product types within Douala that are cost effective, reliable, safe and cleaner than liquid fuel alternatives. The Company generates cash flow from the Logbaba Project which is 60% owned and managed by GDC, with RSM Production Corporation, an affiliate of Grynberg Petroleum Company of Denver, Colorado holding a 40% participating interest. VOG also holds 100% of the West Medvezhye oil and gas exploration project near Nadym, Russia. The field has C1 plus C2 reserves of 14.4mmboe (under the Russian resource classification system, analogous to proven and probable reserves under Western conventions) in addition to best estimate prospective resources of 1.4bboe.

Cameroon Energy Market Cameroon is a stable African country that is host to a developing economy serving most of Central Africa with goods and services. A power deficit remains a major hindrance to Cameroon’s economic expansion. The power grid is reliant on hydroelectric dams to supply 75% of power and the shortfall is made up from heavy fuel oil and gas. Hydroelectric dams are highly seasonal, with stream rates significantly varying from 6,000m3 per second in the wet season to 50m3 per second in the dry season. As with many hydro electrical systems transmission loss is also a constant issue when balancing power loads across distances to different consuming regions. The port-city of Douala is the major industrial zone within Cameroon and it requires high levels of consistently delivered grid power all year round. Currently Cameroon’s energy demand is growing at 7% annually and gas is seen as a key element to Cameroon’s national energy strategy. •

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INDUSTRY NEWS: ASIA PACIFIC

Honeywell to Improve Operations for Liquefied Natural Gas Pipeline in China Honeywell Process Solutions today announced that its technology will help improve operations for China’s long-distance Guangxi liquefied natural gas (LNG) high-pressure pipeline. A key strategic project of Sinopec Limited and Guangxi Zhuang Autonomous Region, the Guangxi LNG pipeline will play a critical role in optimizing China’s energy structure and meeting the demand for natural gas in Guangxi. The project will use HPS gas measurement and equipment and software to measure the flow and pressure in the pipeline. “We are able to draw upon our experience in long-distance, natural gas high-pressure pipelines to provide expertise to this essential clean energy project,” said Aldous Wong, HPS vice president, Greater China. “Pipelines have challenges that are very different from processing plants since you have to manage an operation that is hundreds or sometimes thousands of miles long. Measurements such as flow and pressure must be accurate and immediately accessible to keep the pipeline operating most efficiently.” The pipeline should be completed later this year, and will have a capacity of 8 billion cubic meters of LNG a year and a total length of more than 1,300 miles, from Maoming to Beihai in the Guangxi region. This pipeline will be part of a network that transports natural gas and LNG from as far away as Kazakhstan to China. HPS technology is already being used on all three of the 1,100-mile Central Asia to China pipelines as well as the 5,600-mile West to East II pipeline across China. The integrated gas measurement technologies provided by Honeywell includes computer software and sensors that measure flow, temperature, pressure and other indicators that are critical to maintain optimum performance throughout the entire long-distance pipeline. These include:Ultrasonic Flowmeters, which measure natural gas for custody transfer applications, which require high reliability, excellent metering certainty and repeatability. Flow Computers, which can perform parallel calculations of compressibility according to all established methods, including GERG 88 S, AGA 8 and AGA NX 19. SmartLine® Temperature and Pressure transmitters, which are the industry’s first modular and most reliable transmitter, which deliver value across the entire plant lifecycle. These transmitters reduce initial purchasing costs, provide flexibility for post start-up modifications, and reduce maintenance and inventory costs while providing high accuracy and stability. Honeywell Process Solutions (www.honeywellprocess.com) is a pioneer in automation control, instrumentation and services for the oil and gas; refining; pulp and paper; industrial power generation; chemicals and petrochemicals; biofuels; life sciences; and metals, minerals and mining industries. Process Solutions is part of Honeywell’s Performance Materials and Technologies strategic business group, which also includes UOP, a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. •

Energyboardroom.com Releases New ‘Inside Oil and Gas’ Malaysia Report Since 2010, Malaysia’ s oil and gas sector has benefited from a massive push to add more value, particularly through investments in downstream. Malaysia’s planned downstream investments are ambitious: facilities such as the Pengerang Integrated Complex, costing more than USD 26 billion for the first integrated refinery and petrochemical development of its kind, and the Pengerang Vopak-Dialog Independent Terminal head up the impressive project list. “The downstream part of the oil and gas industry is far more important than the upstream for the future,” says Malaysia’s former prime minister, Tun Dr. Mahathir. Oil and gas is the lifeblood of Malaysia’s economy, accounting for approximately 30 percent of government revenues. The Malaysian government has long been set on reaching high-income nation status by 2020, and the nation’s Economic Transformation Program aims to harness the overall strengths of the energy sector to this end. The upstream side of the equation is still essential to reaching this aim, but the country must also try to turn the business around in this area: net crude exports dropped to a low of 7,360 b/d in 2013, and LNG exports dropped to 1.81 MT in 2015, down 13 percent from the previous year. As a result, Petronas is also looking to boost oil and gas production, with Malaysia’s largest-ever EOR project was launched by ExxonMobil in 2014, while the push for production in marginal fields and deeper waters continues. “EOR is another horizon for Petronas, and thus far our collaboration with ExxonMobil for the Tapis project, brought on stream in March 2013 after a USD 2.5 billion investment, has been very successful,” says Arif Mahmood, executive vice-president and CEO downstream, Petronas, the NOC. Oil and gas is the lifeblood of Malaysia’s economy, accounting for approximately 30 percent of government revenues. The Malaysian government has long been set on reaching high-income nation status by 2020, and the nation’s Economic Transformation Program aims to harness the overall strengths of the energy sector to this end. Petronas celebrated 40 years in 2014 and keeps pushing the envelope in terms of technology and capacities. The company is set to bring the world’s first FLNG into operation by year’s end and aims to act as a true IOC on the world stage. The company’s long-standing internationalization of its portfolio has now taken into consideration non-conventional resources in more advanced markets such as shale oil in Argentina and coalbed methane in Australia. Companies ranging from Technip to Aker Solutions, Baker Hughes, and Schlumberger have all established new regional headquarters in Kuala Lumpur as a result. •

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Develop Cost Optimization Strategies and Structural Life Cycle Best Practices for Fixed and Floating Structures 2015 Advisory Board:

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Terry Rhodes, Head of Offshore Structures, Shell

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INDUSTRY NEWS: MENA

Israel Aerospace Industries and Cella Energy Awarded a Bilateral Cooperation Grant for Unmanned Aerial Vehicle Fuel Cell Project

srael Aerospace Industries (IAI) and Cella Energy were awarded industrial research and development funding by Space Florida, the State of Florida’s aerospace and spaceport development authority, and MATIMOP, Israel’s Industrial Center for Research and Development. The grant was approved under the Florida-Israel Innovation Partnership Program for a collaborative project in the field of Unmanned Aerial Systems (UAS). The proposed collaborative project between IAI and Cella has been selected because of the nearterm potential for commercialization and economic benefit for both Florida and Israel. IAI, a global leader in the development and production of UAS and Cella Energy, an advanced materials company revolutionizing hydrogen energy alternatives, will develop and evaluate a fuel cell power system for IAI’s BirdEye Mini UAV (Unmanned Aerial Vehicle), based on Cella’s proprietary solid hydrogen fuel system. The potential benefit of the project is to double or even triple the UAV flight duration at the same battery weight, solving one of the biggest limitations of battery operated UAVs. The project is about to be launched, subjected to export regulations and collaboration agreement. Cella’s proprietary hydrogen technology provides a low-weight, high-performance alternative to lithium-polymer batteries, the power source typically used in small UAVs. Cella has developed a plastic-like hydrogen storage material that can be pressed and shaped into any form. When heated above 100°C, hydrogen is released within minutes. Each gram of Cella material safely stores approximately one liter of hydrogen gas. “Combining IAI’s legacy of excellence in aerospace manufacturing with Cella’s technological expertise in hydrogen storage could result in a UAV of unmatched performance,” said Stephen Bennington, Managing Director of Cella Energy. “We will be looking to expand our U.S. capabilities at the Kennedy Space Center to deliver this program.” “We are looking forward to exploring the capabilities of Cella’s technology,” said Ofer Haruvi, Vice President of R&D and CTO at IAI’s Military Aircraft Group. “As part of IAI’s approach of continuous innovation, we will study the potential benefits of hydrogen energy to further strengthen our offerings to customers.” Israel Aerospace Industries IAI Ltd. is Israel’s largest aerospace and defense company and a globally recognized technology and innovation leader, specializing in developing and manufacturing advanced, state-of-the-art systems for air, space, sea, land, cyber and homeland security. Since 1953, the company has provided advanced technology solutions to government and commercial customers worldwide including: satellites, missiles, weapon systems and munitions, unmanned and robotic systems, radars, C4ISR and more. IAI also designs and manufactures business jets and aero-structures, performs overhaul and maintenance on commercial aircraft and converts passenger aircraft to refueling and cargo configurations. Cella Energy Cella Energy is an advanced materials company pioneering safe, high-performance, low-cost hydrogen energy. Its headquarters are located at the Rutherford Appleton Lab complex in the U.K., and its U.S. operations are based at the Kennedy Space Center in Florida. The company’s proprietary solid hydrogen technology has applications in numerous sectors including automotive, aerospace and portable power applications. The power systems that Cella develops using its material have performance, safety and cost advantages over lithium-polymer batteries, as well as compressed and other forms of solid hydrogen. •

E&P

Gas and Condensate Discovery in the North Sea Operator Statoil and its PL146/PL333 partner Total E&P Norge have made a gas and condensate discovery in the Julius prospect in the King Lear area in the North Sea. The discovery well 2/4-23S, drilled by Maersk Gallant, proved gas and condensate in the Ula formation. Statoil estimates the volumes in Julius to be between 15 and 75 million barrels of recoverable oil equivalent. The well 2/4-23S aimed also to appraise the King Lear gas and condensate discovery made by the PL146/PL333 partnership in 2012. May-Liss Hauknes: The well provided important information on reservoir distribution and reservoir communication in the King Lear discovery. The acquired data will now be further analysed. It is expected that the King Lear volumes will stay within the previously communicated range of 70-200 million barrels of recoverable oil equivalent. “The King Lear and Julius discoveries are located in one of the most mature parts of the Norwegian continental shelf - just 20 kilometres north of Ekofisk, the first commercial NCS discovery made 45 years ago. The discoveries confirm Statoil’s view that even such mature areas of the NCS still have an interesting exploration potential,” says May-Liss Hauknes, Statoil vice president for exploration in the North Sea. Edward Prestholm “Since the King Lear discovery, the main focus of the licence partnership has been to clarify the resource basis within PL146/ PL333. Following the positive results of the Julius well, the partnership will start working on an optimal plan for a timely development of the discovered resources. The Julius discovery will be included in the resource base for a future PL146/PL333 development decision,” says Edward Prestholm, acting head of early phase field development on the NCS in Statoil. For further details on the results of exploration well 2/4-23S, please see the press release issued by the Norwegian Petroleum Directorate. •

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SMi presents the 18th Annual Conference on...

12 - 13

Exploring the future of GTL in the “new reality”

2015

Gas to Liquids OCT

Holiday Inn Kensington Forum, London, UK

KEY SPEAKERS INCLUDE: • Neville Hargreaves, Business Development Director, Velocys • Wyoming State Senator Cale Case, Ph.D., Natural Resource Economist and Consultant • Narsi Ghorban, Managing Director, Narkangan GTL Company • George Boyajian, Vice President of Business Development, Primus Green Energy • Mitch Hindman, Licensing Manager, Technology Sales & Licensing, ExxonMobil & Engineering • David Small, Vice President of Global Energy Services, NiQuan Energy • Elliot Hicks, COO, Oberon Fuels • Iraj Isaac Rhamim, President, E-MetaVenture, Inc

BENEFITS OF ATTENDING: • Learn about the latest technological developments in small scale GTL • Hear from leading experts in the field on long term trends and drivers • Discuss the effect of the oil price margin on the GTL industry • Understand what makes projects fail and risk mitigation strategies • Join topical panel discussions and debates on the economic and commercial viability of GTL • Assess the locational aspects of GTL including where, why and when it works • Debate the benefits of GTL versus other gas monetisation options *Image courtesy of Velocys

PLUS AN INTERACTIVE HALF-DAY POST-CONFERENCE WORKSHOP

Wednesday 14th October 2015, Holiday Inn Kensington Forum, London, UK

How viable are GTL opportunities in today’s energy price world? Workshop Leader: Alex Forbes, Director, Forbes Communications 8.30am - 12.30pm

www.gas-to-liquids.co.uk/oilgasinnovation Register online or fax your registration to +44 (0) 870 9090 712 or call +44 (0) 870 9090 711

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E&P

Victoria Oil & Gas Plc Provides Q2 2015 Operations Update Victoria Oil & Gas Plc provides an update on the Company’s operations for the 3 month period ended 30 June 2015 (the “period”). The Company intends to provide the market with quarterly operational updates, based on the calendar year and covering all significant activities. The quarterly updates will not affect VOG’s responsibility to release any price sensitive news to the market in a timely manner.

as production increased 178% for the period compared to Q1 2015, with an average daily production of 12.6mmscf/d. Production reached a peak of 16.9mmscf/d, with an average 5 day working week output of 13.1mmscf/d. The significant expansion follows the first grid power connections coming on line under the deal with ENEO Cameroon S.A (“ENEO”) and new thermal customers being connected, including the Dangote cement plant commissioned in June 2015. Gas sold for Q2 2015 was almost four times that sold in Q2 2014. Group cash was $14.2m at quarter end, compared to $15.6m at the end of the first quarter with notable capex spend of $2.6m on the gas plant acquisition from Expro. In GDC, cash received from gas and condensate sales in Q2 was $9.8m compared to cash received in Q1 of $5.1m. Operations remain in line with expectations for the next quarter. Customer Updates At the beginning of Q2 2015, gas supply to both the Bassa and Logbaba power stations commenced following the agreement signed with ENEO in December 2014. Gaz du Cameroun S.A. (“GDC”) is responsible for supplying gas to both the Bassa and Logbaba power stations, where electricity is generated from gas fired electricity generation sets supplied and operated by project partners Altaaqa Global. The successful running of maximum supply to both power plants met the requirement, set by ENEO, for both stations to be online and delivering 50 MW to trigger the minimum take or pay conditions as set out under the terms of the agreement between GDC and ENEO. The minimum take or pay levels require GDC to provide 10.1mmscf/d of gas to generate 50 MW of power, with ENEO consequently agreeing to a take or pay component of 90% of total usage during the dry season and 30% in the wet season. The Dangote cement plant, located on the southern shore of the Wouri River, Douala, was the largest of a number of new gas supply connections completed during the period.

Dangote is an important indicator of how the city of Douala is developing economically as an important, stable, industrial and commercial hub for the wider Central-West Africa region. Operations The Logbaba gas production plant was purchased from Expro using cash generated from GDC’s operations and partner RSM’s contributions. GDC is evaluating proposals for a long-term contract for the operation and maintenance of the plant with specialist service companies, including Expro. The purchase is part of VOG’s strategy to increase production capacity. GDC is currently studying options for the expansion of the gas production plant from its existing 20mmscf/d level to up to 40mmscf/d. Sub –Surface Development Work Driven by the large current and projected demand for gas in Douala, initial planning, well design and engineering for drilling the next two wells, LA 107 and LA 108 has been accelerated. The current schedule estimates spudding of the next two wells in H2 2016 and completion in late 2016. At least one of these wells will be a twin of four wells drilled by the French in the 1950’s, all of which produced gas. The Company is also analysing techniques for conducting 2D and 3D seismic programmes in urban environments and for re-processing and extrapolating key historic seismic data to assist in sub surface interpretations. The Company is positioned to significantly advance gas supply into a series of existing and new markets and consequently is focusing on increasing reserves and production capacity. Further updates will be made to the market when appropriate. CNG Update At present, GDC is in discussion with several groups for the provision of a CNG solution, whereby a technical partner will undertake all gas compression capital expenditure and logistical operations. This model will preserve GDC’s strategy of concentrating on gas sales rather than downstream development. In the coming months, it is anticipated that a preferred partner will be selected to assist GDC in this project.

The potential benefits of CNG are: Minimal GDC capital requirement. Enables customers up to 250km from Douala to be provided with our gas. High margin business for ‘gas only’ supply model. No capacity pressure on pipeline. CNG production can also occur during off-peak periods to help maintain balanced gas production. VOG Chairman Kevin Foo said: “VOG continues to make excellent operational and financial progress. Q2 was outstanding with a 178% increase in production to a seven day week monthly average of 12.6mmscf/d. We almost doubled cash received from sales in Q2 to $9.8m. We now have the financial strength to pursue the next phase of our growth which is to bring more gas online to meet the massive customer demands. We plan to fund this development programme from existing and projected cash flows and local lines of credit. The quarterly reporting format we are committing to demonstrates the progress we have made operationally and in generating significant cash flow from gas and condensate sales. This report provides shareholders with a reliable format to demonstrate our performance in a consistent and clear manner.” •

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MIDSTREAM & PIPELINES

Proven Track Record in the Field of Protective Surface Coating & Industry Leading Customized Solutions Specialized in liquid coating equipment.

Oil and Gas Innovationâ&#x20AC;&#x2122;s Emma Patten speaks to WIWA Wilhelm Wagner GmbH & Co. KG, producers of spraying systems such as the DUOMIX range and innovative coating systems which are specially optimized for corrosion protection. OGI: Could you start by explaining Wilhelm Wagner GmbH (WIWA)â&#x20AC;&#x2122;s credentials and experience in the field of spray systems? Could you tell our readers the breadth of your experience, how long you have been active, and your worldwide reach? WIWA: We are a family-owned German company which has been active in the field of spraying equipment for over 60 years. From our headquarters in Lahnau (Hessen) near Frankfurt, our company with a staff of 120 employees develops and manufactures spray equipment for liquid and high-viscosity materials. Furthermore, we have a broad range of multiple component application systems for all materials commonly used in the industry. We are currently the market leaders in the field of passive fire-protection and material application equipment. With a large presence on 5 continents, WIWA sells high-quality equipment for a wide diversity of industries: energy, automotive, construction as well as oil and gas. OGI: What are the major applications for your systems in the oil and gas industry? Which types of companies are the flagship customers for WIWA? Does the company sell to corrosion fighting specialist? Or do they sell to companies who have in house spray teams, or both? WIWA: Yes, we have a variety of customers and a large spectrum of applications in functional coatings for both the upstream and also the

downstream oil and gas industry, such as: • Pipe mill coating spraying systems for inside- flow coat and outside protective coatings; • Fieldcoating applications for joint MCL coatings; • Field applications of outside coatings of heavy-duty pipe-revamping solution; with the current low price of oil , this technique, which is used for coating in-service pipes and thus postponing their replacement, can reduce pipe costs by over 50%; • PFP (Passive Fire Protection) coating application systems for oil rigs, especially in offshore applications and GNL mega trains (our latest reference is the LNG Yamal / NOVATEK project); • Pipe inside coating or joint coating for in- mill or field applications on crawler boogies and CCTV monitoring. We deliver this equipment directly through certified dealers or with the technical support of our subsidiaries in places such as in USA, China or EAU. We work together with the major oil companies like Chevron, BP, Statoil, Total, Petronas and with major job coaters, such as Bredero or Eupec, as well as with steel pipe mills like Salzgitter. OGI: One of the most important factors in the midstream coating business is pipeline coatings. Considering a pipeline life-cycle’s length of time, it’s important that a coating is top notch and applicable to specific types of gas and fluids. Can you elaborate on the different types of solids and liquids in the pipelines your

machines work with and the longevity of the material after application? WIWA: We are specialized in liquid coating equipment. We work with the major manufacturers of coating materials to consistently find the right customised equipment for those applications. We also design and engineer fullycustomized systems for job coaters or pipe laying contractors, to meet their project specifications. Today, each coating project is specially designed for offshore applications. There are several parameters for pipeline longevity: • Quality of the preparation of the surface to be coated; • Quality of the coating product; • Quality of the coating equipment, the coating crew training and equipment maintenance and periodic servicing;

Active in the field of spraying equipment for over 60 years.

•

Recording and monitoring of all coatings parameters through which we can also assure a high traceability of the coating project during the product’s life-cycle.

OGI: When we are talking about pipeline coatings, from what I understand you may use spray on technology both before and after the initial implementation of the pipeline network. The latter of course is usually a maintenance issue. Where are WIWA’s systems most utilized in the pipeline lifecycle and finally, could you provide our readers with one example or case study where WIWA’s products and services helped a client? WIWA: The current core market is for the beginning of the pipes’ life cycles. A large number of Turkish and Spanish pipe mills utilize our systems. The pipe laying market is one of our next steps in this industry. Moreover, the protection of assets like for platforms and rigs through passive fire protection is a continual concern of our customers and the importance of maintenance and revamping is growing each year. One of our customer asked us for a mill application of joint coating on a subsea heavy coating pipeline of 70” diameter. The coating resin was a 2K Epoxy with high sand filling, highly pasty, inducing a high wear rate of the coating equipment. The delivery time was under 3 weeks, ex works. We did some preliminary tests and qualifications within 2 weeks and engineered a fully customized solution for this application. This solution gave the customer the satisfaction of a good mixing and quality of the product applied and a complete data record of the parameters. We achieved a 50% reduction in time as compared to manual application as well as up to 20% less product loss. • If you have any questions or need assistance with any WIWA product lines, please get in touch. Phone: +49 6441 609-0 Web: www.wiwa.de Email: info@wiwa.de

MIDSTREAM & PIPELINES

New Pipeline Infrastructure Key to Unloading Freight Rail Backlog, Helping America’s Farmers Expanding America’s pipeline infrastructure would relieve the nation’s overburdened freight rail network and improve service for farmers nationwide, according to a new study from the American Farm Bureau Federation.

he booming energy business in the Upper Midwest spiked rail congestion and freight costs for farmers in the region and cut their profits by $570 million during the 2014 harvest. The AFBF study found that the average North Dakota corn farmer may have received $10,000 less than the traditional market rate for the crop. Increasing U.S. pipeline capacity – particularly in the Bakken region – is a prime solution for adding freight system capacity overall and relieving rail congestion, according to AFBF. “American farmers depend upon rail freight to move their products to market. The surge in rail transportation of crude oil has affected that ability and timing in recent years,” AFBF Chief Economist Bob Young said. “Construction of new pipelines would certainly be a more effective way to move that product to market. It would take crude oil off the rails and, in doing so, improve the overall efficiency of the transportation system. Improved pipeline infrastructure will also help enhance American energy security for everyone.” Study author Elaine Kub said farmers face challenges in getting their goods to market that others do not. “Due to the nature of grain production and use, the industry is fairly inflexible about which freight methods it can use, so any time one of those methods is unavailable, crops are lost or cost more to transport,” she said. “This leads to more expensive food for families and less profitable incomes for farmers. Crude oil, however, can be more efficiently and affordably shipped through pipelines, and can be done without crowding already overstressed railways.” The AFBF study also featured mathematically simulated scenarios showing how expansion of any freight method – truck, rail, barge, or pipeline – can reduce overall congestion and, in certain scenarios, could increase the annual volume of grain moved by as much as 14 percent. With family members at the county or parish level in all 50 states and Puerto Rico, the American Farm Bureau Federation is the unified national “Voice of Agriculture,” working to enhance and strengthen the lives of rural Americans to build strong, prosperous

agricultural communities. AFBF is the nation’s largest and most influential grassroots organization of farm and ranch families. Elaine Kub is the author of Mastering the Grain Markets: How Profits Are Really Made–

a 360-degree look at all aspects of grain trading, which draws on her experiences as a futures broker, market analyst, grain merchandiser, and farmer. She grew up on a family farm in South Dakota and holds an engineering degree and an MBA. •

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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 2: Emerging Gas Demand Scenarios in Europe 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 Laurent Vivier, President Gas, Total Gas & Power

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: Pascal De Buck, Chairman of the Executive Board & Chief Executive Officer, Fluxys Gertjan Lankhorst, CEO, GasTerra Jan Chadam, CEO & President of the Board, Gaz-System SA

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MIDSTREAM & PIPELINES

Offshore? Sure! WWL ALS was established in the UK in 1980 as Abnormal Load Services, specialising in solutions for abnormal loads and project cargoes across the UK, Europe and to Worldwide destinations.

n October 2012; Wallenius Wilhelmsen Logistics and Abnormal Load Services (WWL ALS) joined forces to create a new service concept that takes out-of-gauge, ‘high & heavy’, break bulk and project cargo logistics to a new dimension. As an integral part of the Wallenius Wilhelmsen Groups’ extensive Global network of Port Facilities, Terminals, Offices and Vessel operating services, now combined with WWL ALS’s vast experience in specialist cargo transport and handling services, there is a significant single point solution for all Oil & Gas logistic requirements. From the beginning, the companies philosophy has been simple, provide the very best service and solutions whilst mitigating Risk and Cost to the client. There are no offthe-peg solutions when it comes to specialist, and often time critical cargo, every project has its own unique set of requirements. Experience and attention to detail not only ensure a smoother journey, but in every case provides the most secure and cost-effective solution to every kind of movement. Within the Oil & Gas sector WWL ALS have over 30 years’ experience in providing a wide range of options for their clients, from multinational Corporations to bespoke and niche product Manufacturers as well as to their appointed Freight Forwarders if preferred, and indeed, ‘Ex-Works’ Solutions for vendors wishing to maintain a close relationship with a reliable specialist service provider by recommendation to clients.

Since 1980 the business environment has changed considerably. One major change has been the arrival of the professional Purchasing Manager and, the requirement to control costs is greater than ever before. The need for key suppliers to be pre accredited to bodies such as Achilles, FPAL, UVDB as well as maintaining quality systems to ISO 9001:2008, 14001 and beyond continues to ensure that often only the most resourceful and qualified companies are given the opportunity to quote for the contracts on offer. As part of its commitment to both its clients, and the industry as a whole, WWL ALS are a fully registered & accredited supplier to the Oil & Gas industry, and has extensive experience delivering solutions for all types of cargoes associated with the sector. Using in depth experience and specialist knowledge, WWL ALS provide a range of exceptional capabilities such as integrated project management, marine vessel and aircraft chartering, specialist handling & lifting, specialist transport and a range of port services such as ships agency, cargo supervision and inspection, and of course, freight forwarding (FIATA/BIFA registered). Operating across the globe WWL ALS and its own network of specialist teams, provide integrated solutions, working with associated group companies such as Wilhelmsen Ships Service. With offices in over 120 countries servicing over 2400 ports, NorSea, providing Port & Handling Facilities at a number of

Scottish & Scandinavian Ports, and, of course, Wallenius Wilhelmsen’s own unrivalled global scheduled vessel services, WWL ALS brings together one of the world’s largest specialist teams to provide ‘Integrated Solutions’ tailored to any logistical requirement. Fully aware that moving large items across the world is not something you do every day, but WWL ALS do exactly that by providing a “One Stop Shop” for all their clients who have a specialist requirement, whether it be for a single item, a series of items that, for example, require sequential collection and delivery, or indeed, an on-site logistics team presence to co-ordinate and manage all scheduling and delivery to specific locations and timings. The company also understands that logistics is a cost, can erode margins and, if not managed correctly, have major consequences on the bottom line of any project and move. WWL ALS can bring any location within easy reach for any Oil & Gas heavy equipment and break bulk cargoes, as the below case studies prove. Project Brief: Transport of Heavylift Umbilical Reels from Kalundborg to Kristiansund Chartering of a specialist heavy lift vessel to carry a sequence of heavy umbilical reels from NKT Facility Kalundborg to terminal Kristiansund on behalf of Technip Norge for Statoil ‘Hyme’ Project

Scope: Turnkey project management including preselection of suitable tonnage, charter of said vessel, procurement of all port services and provide a project manager to attend/co-ordinate both load & disport operations.

Project Brief: ‘Express Shipment’ Gas Pipes from Aberdeen to Haifa, Israel Urgent cargo of Steel Pipe requiring an urgent solution to meet LOC/Contract deadline and avoid LD for late delivery. WWL ALS sourced and provided suitable tonnage and provided a ‘short notice’ gearless vessel, capable of maintaining high speed to enable an otherwise routine cargo to meet a specific short lead time deadline for delivery in Haifa. Project Brief: Transport Ship to Shore Marine Loading Arm from Southampton to Abu Dhabi WWL ALS arranged door to door service for a 16” LNG Main Arm Assembly with dimensions of L: 19.40m x W: 2.30m x H: 3.72m. It was collected from the customer’s factory and transported to Southampton dock. A floating crane was used to transfer the arm onto a mafi trailer prior to being towed to a ro-ro vessel for loading and onward shipment.

Project Brief: Metering Skid UK shipments Metering Skid measuring: L:12.40m x W:6.00m x H:4.40m and weight 71,687kgs Items were loaded utilising a mega lift, & were then transported to the local UK port. On arrival at the port, the units were unloaded using 2 x 500t cranes, direct from transport to vessel.

Project Brief: Movement of oversize fabrications for Offshore Vessel under construction A sequence of four mobilisations of a specialist vessel over a period of one year to transport Roller Coaster and Alignment Chutes from Newcastle to shipyards in Rotterdam for subsequent fitting out to specialist offshore vessels.

Oil & Gas is a mature sector, and still growing, but is increasingly becoming more cost conscious, due to the recent slump in the price of oil. Our expertise in providing cost effective solutions to manage and control the delivery of any new project in the sector, makes WWL ALS your next port of call. • “Get the bigger picture”

WWL ALS UK Intl Limited Phone: +44 (0) 1482 796214 Web: www.wwlals.com Email: info.energy@alseurope.com

MIDSTREAM & PIPELINES

Fairway Energy Partners, LLC to Construct Houston Crude Oil Storage Facility Fairway Energy Partners, LLC (Fairway) today announced the closing of a private equity offering, the net proceeds of which will be used to fund the construction of the first phase of the Pierce Junction Crude Oil Storage facility. Fairway plans to use this capital to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out all of the requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility in commercial service. FBR Capital Markets & Co., a subsidiary of FBR & Co., served as the sole placement agent and initial purchaser in this offering, which was executed pursuant to Rule 144A under the Securities Act of 1933 and other exemptions.

he initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of three segregations of crude oil for a total capacity of approximately 10 million barrels. Overall, Fairway has expansion rights up to a total of approximately 20 million barrels at Pierce Junction. Following the completion of Phase I, the company intends to take the project to its full capacity during a second

phase of the project. Fairway has secured the exclusive right to store crude oil on the Pierce Junction Salt Dome. Phase I also includes the construction of two separate bi--directional 24--inch pipelines intended to connect the facility to the existing Houston area crude oil grid, adding more than one million barrels per day of pipeline receipt and delivery capability in the Houston marketplace. The proposed pipelines will

traverse approximately 21 miles across the Houston area to connect the caverns to the Genoa Junction and Speed Junction hubs. This should enable Fairway to provide receipt capability from inbound crude oil pipelines from the Permian and Eagle Ford Basins, the Mid--Continent and Canadian regions as well as the Gulf of Mexico. The hubs provide downstream connectivity to terminals, refineries and water outlets located i

In the first phase, Fairway will also construct brine ponds with approximately 10 million barrels of capacity and central pumping and metering facilities at the site. The project is designed as a closed system, minimizing any new air emissions as well as customers’ volumetric losses. “This project will serve the growing crude oil storage needs driven by the significant delivery of new pipeline--delivered crude oil into and through the Houston market. We’re offering a new, low--cost option to the market as a fee for service based provider. We do not intend to take title to the crude oil that we will handle and store, nor will we trade crude oil,” said Fairway CEO Chris Hilgert. “We are delighted to have the continued support of our original financial sponsor, Haddington Ventures, LLC (Haddington), as well as the new investors in Fairway who were brought to us through the engagement and efforts of FBR.” Haddington was active in facilitating the transaction and will continue as a major investor in Fairway. “We are very excited about our investment in Fairway,” said Chris Jones, Managing Partner of Haddington. “Our long history with underground storage fits well with Fairway’s initiative and we look forward to continuing our involvement with the company to advance this critical project into

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Phase I also includes the construction of two separate bi-directional 24-inch pipelines

the marketplace.”

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n the Houston Ship Channel, Texas City and Beaumont/Port Arthur market areas.

This press release relates to an offering that has been closed and does not constitute an offer to sell or a solicitation of an offer to buy any securities, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Fairway’s counsel for the transaction was Andrews Kurth LLP. Sidley Austin LLP represented FBR. company, is a Houston--based private equity firm that specializes in control--oriented investments in the midstream energy and infrastructure space. Haddington currently has approximately $572 million of assets under management. Haddington is a registered investment advisor with the Securities and Exchange Commission. For further information, visit Haddington’s website at www.hvllc.com. RBC Capital Markets served as special advisor to Haddington in connection with the transaction.

Houston--headquartered Fairway is a growth oriented crude oil storage company focusing on constructing and placing into service the Pierce Junction Crude Oil Storage facility. The company is strategically positioned as the only independent salt dome crude oil storage terminal in the greater Houston market area. FBR provides investment banking, merger and acquisition advisory, institutional brokerage, and research services through its subsidiary FBR Capital Markets & Co. FBR focuses capital and financial expertise on the following industry sectors: consumer; diversified industrials; energy & natural resources; financial institutions; healthcare; insurance; real estate; and technology, media & telecom. FBR is headquartered in the Washington, D.C. metropolitan area with offices throughout the United States. • Haddington, a Delaware limited liability, is a Houston--based private equity firm that specializes in control--oriented investments in the midstream energy and infrastructure space. Haddington currently has approximately $572 million of assets under management. Haddington is a registered investment advisor with the Securities and Exchange Commission. For further information, visit Haddington’s website at www.hvllc.com. RBC Capital Markets served as special advisor to Haddington in connection with the transaction.

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

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• 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.

PROCESSING

ICIS Selected as Benchmark Provider for Shanghai Clearing House Petrochemical Swaps Leading petrochemical market intelligence provider, ICIS, is pleased to announce that it has been selected by the Shanghai Clearing House (SHCH) to provide price benchmarks for two upcoming petrochemical swaps contracts - styrene monomer (SM) and monoethylene glycol (MEG), approved for launch on 20 July 2015.

he ICIS assessments to be used for clearing are the SM Ex-tank East China quote and the MEG CFR China quote, both denominated in Chinese yuan (CNY). ICIS will also provide daily forward curves for SM and MEG, to be used by the SHCH for marked-to-market purposes. “We are very pleased that the SHCH has chosen ICIS price assessments for China’s first petrochemical swaps contracts to be cleared by a central counterparty. Their confidence in ICIS as a leading benchmark provider is a testament to the hard work and dedication of our 300 plus staff in China,” said Sean Liu, General Manager of ICIS China. In 2014, China consumed 8.8 million tonnes of SM, a feedstock used in the production of polystyrene plastic and certain types of synthetic rubber. In the same year, the country also consumed 12.1 million tonnes of MEG, a primary feedstock for production of polyester chips and fibre. SHCH has decided to focus on SM and MEG first for swaps clearing as these are relatively mature markets with high liquidity. The use of domestic prices for SM reflects China’s recent transition from heavy dependence on styrene imports, to greater consumption of domestically produced material. The MEG swaps contract corresponds to imported cargoes traded in the Shanghai Free Trade Zone.

Bank of China (PBC), and the first joint-stock company and subsidiary unit of the PBC. It is committed to becoming a standardised, market-oriented and internationalised clearing service provider. Based on a strong sense of risk prevention and an effective risk management framework, SHCH offers centralised and standardised clearing services in yuan and foreign currencies for spot and financial derivatives transactions, as well as yuan cross-border transactions approved by the PBC. ICIS is the world’s largest petrochemical market information provider and has fastgrowing energy and fertilizer divisions. Our aim is to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions. We have more than 30 years’ experience in providing pricing information, news, analysis and consulting to buyers, sellers and analysts. With a global staff of more than 800, ICIS has employees based in Houston, Washington,

New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth. Some 350 of ICIS’s staff are journalists engaged in reporting market prices and news, and ICIS is fully committed to upholding the highest journalistic principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles. ICIS is a division of Reed Business Information, part of RELX Group PLC Reed Business Information provides information and online data services to business professionals worldwide. Customers have access to our high-value industry data, analytics, information and tools. Our strong global brands hold market-leading positions across a wide range of industry sectors including banking, petrochemicals and aviation where we help customers make key strategic decisions every day. RBI is part of RELX Group plc, a world-leading provider of information solutions for professional customers across industries. •

As the world’s largest market for SM and MEG, industry participants in China have long sought to manage risks associated with volatile prices. The SHCH’s new swaps contracts will allow market participants to mitigate the impact of unexpected price changes on their business, as well as counterparty risk. “ICIS is an influential benchmark provider to the global market, so the SHCH has decided to use ICIS in the SM and MEG swaps final settlement price. Going forward, we will continue to strengthen our financial derivatives clearing operations to meet the demands of the industries we serve to hedge against risk,” said Ms. Zhang Lei, General Manager of Business Innovation at the SHCH. By the close of business on Monday, 64 MEG and 160 SM contracts were traded for August and September settlement. The SHCH is the central counterparty clearing institution for China’s OTC market authorised by People’s

PROCESSING

MagneGas Receives First Gasification Equipment Order from U.S. For $550,000; Forms Joint Venture for Major Expansion MagneGas Corporation (“MagneGas” or the “Company”) (NASDAQ: MNGA) a leading technology company that counts among its inventions a patented process that converts liquid waste into MagneGas® fuel, announced today that the Company has signed a Memorandum of Understanding (“MOU”) with Green Gas Supply, LLC (“Green Gas”) to expand into Louisiana and Texas with a $550,000 Plasma-Arc Gasification system sale that includes future royalty payments, profit sharing rights and an initial 300 cylinder gas order to seed the territory.

nder the terms of the MOU, a new joint venture company (“NewCo”) will be established in Louisiana to own and operate MagneGas® gasification systems to produce and sell MagneGas2® into the metal cutting market. MagneGas will own 50% of NewCo and will receive minimum royalty payments of 5% of gross revenue plus equal profit sharing rights. The MOU calls for the sale of additional equipment to expand into Texas and other states under the same royalty payment and profit sharing rights. As part of the MOU, Green Gas has paid a deposit and definitive agreements with full payment are expected to be signed within 90 days. Mark Charchio, President of Green Gas, stated, “Louisiana and Texas are some of the largest markets of acetylene for metal cutting in the country with multiple oil and gas companies in the area. We at Green Gas Supply have studied and tested MagneGas2® and feel that there is no better metal cutting fuel to expand rapidly into this market. We were extremely pleased with the results, as multiple tests have shown that MagneGas2® cuts cleaner and faster than acetylene which is ideal for this market where productivity is key to success. We look forward to rolling out MagneGas2® and rapidly expanding into multiple regions of the South.” Ermanno Santilli, CEO of MagneGas, commented, “We are excited to be joining forces with Green Gas Supply to expand MagneGas® availability in the South. MagneGas continues to execute on our strategy of independent verification, acquiring marquee customers and capturing independent distributors. This Joint Venture will provide distribution for the numerous inquiries we have received from the region, marking it our historic first sale of a

“Louisiana and Texas are some of the largest markets of acetylene for metal cutting in the country with multiple oil and gas companies in the area. unit in the USA. MagneGas2® is fast becoming the preferred cutting fuel across the United States and we expect expansion to other areas in the future.” Green Gas Supply is a newly formed company in Louisiana specifically created to own and operate MagneGas gasification systems. The partners of Green Gas Supply are a venture capitalist who has been successful in various industrial business lines and the owner of a welding gas distribution company located in Louisiana. Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is a technology company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene. It also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for cocombustion of hydrocarbon fuels and other advanced applications. •

Amec Foster Wheeler Awarded Feasibility Study for Refinery, Malaysia

Amec Foster Wheeler announces today the award of a contract by SKS Corporation Sdn Bhd, together with Petromin Corporation of Saudi Arabia, another Asian partner and Ocenia PTE Ltd of Japan, to supply consultancy services for a proposed new refinery and petrochemical complex in Kedah state, Malaysia.

he value of the consultancy contract, which will be delivered during 2015 by an Amec Foster Wheeler team in Reading and Kuala Lumpur, has not been announced. Under the contract, Amec Foster Wheeler will undertake a detailed feasibility study to define the configuration of the complex, develop the infrastructure requirements, establish a project

implementation plan and produce a cost estimate to help optimise the project and establish a clear plan to take the project forward. The proposed development supports SKS’s aim to boost investment into the Malaysian economy and develop the region as a world class supplier of refinery and petrochemical products to South East Asia.

Roberto Penno, Amec Foster Wheeler’s Group President for Asia, Middle East, Africa & Southern Europe, said: “I am delighted that a combination of our local team in Kuala Lumpur supported by our refinery Centre of Excellence in Reading, is delivering a major feasibility study for this exciting, world-scale petrochemical project in Malaysia.” •

HEALTH AND SAFETY

Health and Safety in the Oil and Gas Industry. You Know the Drill – or Do You? ‘Accidents will happen’ is a phrase that is commonly used in any walk of life but as anyone who works in the oil and gas industry knows, there are a lot of accidents just waiting to happen on a daily basis. Long shifts working with heavy machinery and equipment, sometimes in extreme weather conditions that are physically and mentally demanding causing tiredness which can lead to subsequent carelessness and injuries. But most site accidents can be avoided by maintaining constant awareness and vigilance, and the correct planning and preparation will do much to keep operators safer.

here are a number of basic precautions to be taken of course, such as assessing any potential hazards before starting a job and thoroughly understanding and testing the operation and maintenance of all equipment; one of the most important measures is also to pay careful attention to the use of proper personal protective equipment. Protection for eyes, hearing, feet, hands and head are vital but it is just as essential to make sure that two other very important parts of the body are not ignored – the knees, one of the most complex biomechanical structures we have. The knee is not a simple hinge joint, it’s also a sliding one. It slides backwards and forwards whilst at the same time allowing a degree of rotation, and of course locks into place when standing. Many operators in the oil and gas industry or in any occupation that involves spending any length of time kneeling, may underestimate the amount of longterm damage they could be doing to their knees, ultimately adversely affecting their mobility and even future finances through being unable to work. Our knees support the majority of our body weight and allow us to stand, walk, run, climb stairs, kick, crouch, sit, and stand up again. For workers who spend a great deal of time kneeling, or crawling in confined areas, the phrase, “Our knees are our feet!” is appropriate. As a result, workplace injuries to knees are not uncommon.

It is said that one knee injury is attributed to about 24 days away from work. Each knee is made up of the three main leg bones (femur, tibia, and fibula) and the knee cap (patella). Cartilage helps lubricate bone movement along with fluid-filled sacs called bursa, which cushion direct impacts to the knees. If the tendons and ligaments that hold the knee components together become weak or damaged, the bones can become misaligned, resulting in pain or injury. But there’s a lot you can do to protect yourself or the people who work for you, for example: Try not to twist the knee joint while it is bent to do the job as this increases the risk of injury, so consider:

in turn can lead to skin abrasion from internal shear forces within the knee surface. These forces are extremely destructive and damaging to tissue and can lead to impaired blood flow, pain, tissue breakdown and pressure sores. Excess body weight is not surprisingly an added risk factor so maintaining a healthy weight is a good idea all round! If it is at all practical, move and change postures frequently – static postures, including kneeling or sitting for long periods, or the sustained operation of foot pedals, decrease blood and nutrient flow to the tendons, ligaments, cartilage, and bursa. The key precaution to preventing knee damage and often as a result, skeletal injury is to choose the correct type of knee pad. Over the last • Raising the work off the floor; few years a great deal of research has been • Designing the space so that you undertaken into the design and construction or your colleagues can work from a of this specialist item of PPE. Redbacks seated position instead of a kneeling Cushioning Limited has been very successfully one. selling their SATRA award winning Redbacks • Positioning materials that can be (non-foam/non-gel) knee pads which feature grasped and moved above the knees a soft and flexible TPE (Thermoplastic so there is no need to bend the knee Elastomer) leaf-spring set within a unique to retrieve or lift the item. honeycomb matrix; this ‘Redbacks Cushioning Technology’ distributes body weight evenly, Kneeling or squatting for extended periods elevating the knees to relieve back pain and places a lot of pressure on knee joints. It is reduce pressure on knee, leg, ankle and foot important to relieve that pressure by moving joints, whilst minimising the risk of possible the joint through its full range of motion: injury from sharp or penetrating objects. In bending, stretching, and flexing the knee and effect, the knee pads adjust themselves to the leg at regular intervals. This activity helps amount of force applied meaning that each the knee’s shock-absorbing tissues to better kneepad is individual to its own user. distribute the synovial fluid thus improving CEO of the company, Cliff Lockyer, says: lubrication of the joint and reducing the risk of “Based on the fact that there are currently over injury. Dirty clothing and knee pads can result 104,000 annually registered knee replacement in skin infections for people who spend a lot of operations in the UK alone, 50% of which time on their knees so make sure work trousers are accredited to occupational hazards, in the and kneepads are kept as clean as possible. next 10 years the total figure will exceed over a Constantly moving around on knees without million people in the UK, many of whom the correct protection can cause friction which

Cliff Lockyer, CEO.

will have damaged knees through inadequate protection whilst kneeling. In addition to the unnecessary pain and suffering, both the employed and the self-employed risk losing their income through injury, and the prospect of litigation will be a real threat to employers for not providing the best possible safety measures for their employees” K & L Ross, based in Aberdeen, which is one of the largest PPE and workwear suppliers to the oil and gas industry consider that knee protection should be taken very seriously, so much so that the company have recently adapted their best-selling Red Wing flame retardant coveralls to incorporate the CE approved Redbacks Kneepads on the inside of the garments. •

Redbacks Cushioning Ltd. For more information: www.redbackscushioning.com sales@redbackscushioning.com telephone: 01327 702104

HEALTH & SAFETY

Offshore Safety Performance Captured in Annual Report There have been further improvements in the management of major safety hazards offshore, according Oil & Gas UK’s Health & Safety 2015 Report published today (Wednesday, 1 July). Based on incidents reported to the Health and Safety Executive for April 2014 to March 2015 and shared with the trade body; the total number of hydrocarbon releases - oil and gas leaks has gone down and is at its lowest level ever.

ffshore oil and gas has a lower personal injury rate than many other sectors including construction, transport, manufacturing, health, retail and education, the report reveals. The non-fatal injury rate for offshore workers also continues to show a declining trend. Securing continued effective search and rescue helicopter cover for offshore workers in the Central North Sea was a major milestone for the sector. The industry remains focused on aviation safety, with the launch of measures such as a new emergency breathing system for offshore flying and changes to helicopter seating allocation based on passenger size. Preparing for the introduction into UK law of the EU Offshore Safety Directive – the single biggest shake-up of offshore health, safety and environment management for a decade – has also been a key focus for the industry. However, the report did find a growing backlog of safety-critical maintenance on offshore installations. Robert Paterson, health, safety and employment issues director at Oil & Gas UK, said: “Industry, on the whole, is performing well across a range of safety criteria. However, ours is a major hazard sector where complacency has no place. “The overall reduction in hydrocarbon releases is to be welcomed and we must continue our focus on curbing these even further. “Safe offshore transport remains a priority. 2014 saw the launch of the Civil Aviation Authority’s (CAA) CAP 1145 report into aviation safety. Some of the measures proposed were already under way, but this is an area where progress continues to be made with the CAA, helicopter operators, industry and trade unions meeting regularly

“Producing hydrocarbons safely, ensuring assets are operated safely.. 44

Preparing for the introduction into UK law of the EU Offshore Safety Directive – the single biggest shake-up of offshore health, safety and environment management for a decade – has also been a key focus for the industry. to monitor progress and stimulate action. “Industry also demonstrated its commitment to safety by funding an offshore search and rescue helicopter service for the Central North Sea to ensure the same levels of rescue and recovery service following changes to previous provision. “Our report did find a growing backlog of safety-critical maintenance offshore and this is an area that needs close attention. However, decisions on deferring maintenance are taken following robust management systems that

assess risk and involve the relevant technical and engineering authorities. All operators are also being encouraged to participate in providing data to all stakeholders to best reflect how the industry as a whole is managing safety-critical maintenance. “Producing hydrocarbons safely, ensuring assets are operated safely, and transporting our workforce to and from installations safely is of paramount importance to the industry. Despite these difficult times they must always remain our priority.” •

HEALTH & SAFETY

Oil & Gas UK’s Health and Safety Report Points to Continued Major Improvement in Offshore Safety Oil & Gas UK has launched its first ever Health & Safety Report, detailing a number of recent major improvements to offshore safety in the UK oil and gas industry. The publication is set to become an annual feature and provides: a detailed summary of the UK offshore oil and gas industry’s safety performance; an overview of the various safety-related projects being carried out across the industry; an explanation of how the safety agenda is being effectively managed by Oil & Gas UK and its members; and a look ahead to future.

n terms of safety performance, the report finds, despite being a major hazard industry, in terms of non-fatal accidents the sector is the third-best performer in the UK. It has a better safety record than the public sector, retail and general manufacturing with only finance/business and education performing better. A noticeable and steady reduction in the incidence of over-three day injuries, reaching an all time low in 2010/11 and a reduction of almost 70 per cent in the last 15 years. Two years into a three-year programme to reduce hydrocarbon releases (HCRs) by 50 per cent, there has already been a 40 per cent reduction in major and significant releases, giving confidence the target figure can be reached next year. Major and significant hydrocarbon releases in 2011/2012 are at an all time low. An 80 per cent improvement in Level 3 Verification Non-Compliances from Q1 2008 to Q4 2011 (These relate to performance standards of safety critical equipment identified by an independent competent person). The report also details the considerable amount of work being done by Oil & Gas UK to continuously improve health and safety

across the industry. Ongoing projects include, European Commission’s (EC) proposals for new regulation of offshore oil and gas health and safety – Oil & Gas UK is actively making the case for a properly-worded Directive instead of regulation, in order to protect the existing robust legislation in the UK. Oil & Gas UK is ready to work with the EC to achieve the aim of improving offshore safety throughout the Europe, where this can be achieved without dismantling existing strong regimes. Increased focus on asset ageing and life extension – Oil & Gas UK is taking positive steps to ensure these are made prominent in companies’ management systems and business practices. Oil & Gas UK’s Ageing & Life Extension (ALE) Steering Group has been involved in developing technical guidance, in support of the Health and Safety Executive inspection initiative. Support of the industry hydrocarbon releases reduction target – The UK offshore oil and gas industry as a whole agreed a target of reducing HCRs by 50 per cent by the end of March 2013 (the baseline being the HSE 2009/10 figure). Considerable work has already been done through information sharing and learning

across the industry to achieve a 40 per cent reduction so far. Oil & Gas UK’s health and safety director Robert Paterson said: “The first ever Oil & Gas UK Health & Safety Report provides a snapshot of the UK oil and gas industry’s safety performance and the numerous ongoing projects being undertaken to continuously improve safety. “It also dispels a few myths around safety performance. Despite being a major hazard industry, the oil and gas sector is outperforming many other UK sectors in terms of non-fatal injuries to workers – with only education and finance doing better. “The report also highlights the hugely encouraging progress in the industry’s efforts to reduce the number of hydrocarbon releases by 50 per cent by March 2013. The number of major and significant releases is now at an all time low and, with more sustained effort, we believe we can reach our goal.

...considerable amount of work being done by Oil & Gas UK “The report serves to underline the fact that the UK has one of the most robust offshore health and safety regimes in the world. The reason it is strong is because we’re not complacent and we’re always looking for ways to improve or to make things safer. “Ongoing work around asset integrity and life extension, operational risk assessments and aviation safety are prime examples of this and demonstrate our intention to effectively tackle some very challenging health and safety issues. Workforce involvement in a number of key workgroups has been hugely beneficial in helping to achieve improving health and safety performance. “However safety is never ‘done’ and there is no room for complacency; industry leaders at all levels must remain vigilant if current improvement trends are to continue.” •

2015 Oil & Gas Trade Exhibitions and Conferences

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www.oilgas-events.com

11 Countries Events 17

AZERBAIJAN

RUSSIA

2 - 5 June 2015 Baku, Azerbaijan

23 - 26 June 2015 Moscow, Russia

CASPIAN OIL & GAS

GEORGIA

MIOGE

RPGC

GIOGIE

23 - 25 June 2015 Moscow, Russia

22 - 23 March 2016 Tbilisi, Georgia

SOUTH RUSSIA OIL & GAS

GREECE

GLOBAL OIL&GAS BLACK SEA AND MEDITERRANEAN 23 - 24 September 2015 Athens, Greece

INDIA IORS

9 - 10 September 2015 Mumbai, India

KAZAKHSTAN OILTECH ATYRAU 14 - 15 April 2015 Atyrau, Kazakhstan

ATYRAU OIL & GAS 14 - 16 April 2015 Atyrau, Kazakhstan

2 - 3 September 2015 Krasnodar, Russia

TANZANIA

EAST AFRICA OIL & GAS September 2015 Dar es Salaam, Tanzania

TURKEY TUROGE

16 - 17 March 2016 Ankara, Turkey

TURKMENISTAN OGT

17 - 19 November 2015 Ashgabat, Turkmenistan

TGC 19 - 21 May 2015 Turkmenbashi, Turkmenistan

KIOGE 6 – 9 October 2015 Almaty, Kazakhstan

UZBEKISTAN

MANGYSTAU OIL & GAS

12 - 14 May 2015 Tashkent, Uzbekistan

10 - 12 November 2015 Aktau, Kazakhstan

MYANMAR

MYANMAR OIL & GAS 19 - 20 May 2015 Yangon, Myanmar

OGU

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