THE BUSINESS MAGAZINE FOR ENERGY LEADERS
EMEA
ENERGYFOCUS
www.emea-energy.net
October 2017
PORSCHE MISSION E
A Tribute to the Future
ALSO IN THIS ISSUE:
Flexomarine / Shell / Maersk / Siemens
A MESSAGE FROM THE EDITOR EMEA
ENERGYFOCUS EDITOR Joe Forshaw joe@emea-energy.net SALES MANAGER Hal Hutchison hal@emea-energy.net SALES ADMINISTRATOR Emma Neethling sales@emea-energy.net
SENIOR PROJECT MANAGER Sam Hendricks sam@emea-energy.net PROJECT MANAGER Shaun Cousins shaun@emea-energy.net PROJECT MANAGER Shannon James shannon@emea-energy.net PROJECT MANAGER Aarron Chapman aarron@emea-energy.net PROJECT MANAGER Emily Taylor emily@emea-energy.net FINANCE MANAGER Emma Smith finance@emea-energy.net SENIOR DESIGNER Harvey Tarlton harvey@emea-energy.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Djamil Benmehidi CONTRIBUTOR Jukka Lethinien CONTRIBUTOR Rod Stone
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The industry is in a period of transition, not just in the EMEA region but all over the world. President Trump continues to bring uncertainty to the fore, demand in emerging markets remains extremely strong, renewables are carrying on their rise to the top, and big-name companies from all over the industry are having to reassess their strategies to stay in line with what customers want and need. It was announced recently that during 2016, the fastest growing source of new energy was solar – thanks in the main part to China’s installation of a large number of new panels. The International Energy Agency (IEA) said that two thirds of energy added to grids in 2016 came from renewables. Perhaps we have legislation to thank for this, or maybe it’s marketing and the adjustment of human conscious; whatever the case, this change has brought about innovation and new thinking. But with Donald Trump reversing Obama’s clean power plan, the future of the drive towards renewables looks uncertain. One company looking to provide certainty is DONG Energy, or Ørsted as it is now known, which has divested from oil and gas operations and is now working only on renewable projects; a move from black to green. Another easily-recognisable brand, Porsche, is set to mark its first move in a new direction when it releases its Mission e model next year. Priced at around $85,000, the electric powered car will be a best-in-class offering that will rival Tesla on the road. The stories of both Ørsted and Porsche, along with other news from BP, Shell, Statoil, Siemens Energy, Schlumberger and more are all included in this month’s Energy Foucs: EMEA. Do you have a story of shifting strategy from traditional energy sources to future power? Get in touch, we’re online @EmeaEnergy
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Joe Forshaw EDITOR
GET IN TOUCH +44 (0) 20 8123 7859 joe@emea-energy.net www.emea-energy.net
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06/NEWS: The Month that was... A round up of some of the latest news stories in the industry.
38/EXHIBITION CALENDAR: Key Upcoming Events Across the Industry Our regular update to help you keep track of important events and exhibitions taking place across the industry.
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PORSCHE MISSION E Porsche’s Tribute to Tomorrow
CONTENTS
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14/ 18/ 20/ 22/ 24/
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SHELL Investing in Global Upstream Operations BP Ramping Up Production to Meet Worldwide Demand DONG ENERGY / ØRSTED New Identity Accompanies Shift From Black to Green STATOIL Exploring Argentina’s Vast Riches MAERSK Full Steam Ahead for Maersk’s Culzean Development
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TOTAL Total Swoops for Oil Giant SCHLUMBERGER Second Time Lucky For EDC Acquisition SIEMENS German Powerhouse Brings Energy to Pakistan EDF ENERGY Cementing Top Spot in UK Renewables FLEXOMARINE Essential Technology for Offshore Oil Operations
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SIEMENS TO BUILD EHIGHWAY IN GERMANY Siemens has been commissioned by the German state of Hesse to build an overhead contact line for electrified freight transport on a ten-kilometer stretch of autobahn. The line will supply electricity for the electric drive of a hybrid truck. Siemens originally presented its innovative “eHighway” concept in 2012. The system will be installed on the A5 federal autobahn between the Zeppelinheim/ Cargo City Süd interchange at the Frankfurt Airport and the Darmstadt/Weiterstadt interchange. With this field trial, the eHighway will be tested on a public highway in Germany for the first time. Siemens will be responsible for the planning, construction and, as an option, maintenance of the system. The system is being built as part of the joint project “Electrified, innovative heavy freight transport on autobahns” (ELISA) of Germany’s Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). “Construction of the system will demonstrate the feasibility of integrating overhead contact systems with a public highway. The system will be used for real transport networks, and prove the practicality of climate-neutral freight transport in the urban region of Frankfurt,” said Gerd Riegelhuth, Head of Transport of Hessen Mobil. “With the eHighway, we’ve created an economically viable solution for climate-neutral freight transport by road. Our technology is an already existing and feasible alternative to trucks operating with internal combustion engines,” says Roland Edel, Chief Technology Officer of the Mobility Division.
E.ON STARTS WITH TEXAS WAVES POWER STORAGE PLANT CONSTRUCTION IN US E.ON has started constructing its Texas Waves power storage project in the USA. The 20 megawatt (MW) storage facility (2 x 2.5 MWh) is being constructed on the sites of the preexisting E.ON wind farms Pyron and Inadale in West Texas. As an integral part of the wind farms, Texas Waves will be able to react quickly for the network operator, Electric Reliability Council of Texas (ERCOT) to cope with changes in the energy requirements and thereby increase both the reliability and efficiency of the system. With both the industrial-scale 10 MW plants, E.ON is expanding its role as an important player in the North American power storage market. These are the second and third-largest lithium ion battery systems which are connected to the network which E.ON has installed in the USA. The power storage systems will be taken into operation at the end of 2017. E.ON’s first storage project, Iron Horse, consists of a 10 MW battery and an associated 2 MW solar power plant south-east of Tucson, Arizona. The system has already been commissioned, and helps support the power supplier – Tucson Electric Power (TEP) – with frequency and voltage control providing reliable electricity to over 400,000 customers.
BP STARTS PRODUCTION FROM GIANT KHAZZAN GAS FIELD IN OMAN BP, together with the Ministry of Oil & Gas of the Sultanate of Oman, announced recently that production has begun from the giant Khazzan gas field, which is operated by BP in partnership with Oman Oil Company Exploration and Production. His Excellency Dr. Mohammed Al Rumhy, Minister of Oil and Gas of the Sultanate of Oman, stated: “I am delighted to see BP delivering Phase One of the Khazzan Project within time and budget. This will result in realising more gas reserves and more production of gas that our country needs to support our energy planning and requirements.” Bob Dudley, BP group chief executive, commented: “The start of production from Khazzan, BP’s sixth and largest major project startup so far this year, is an important milestone in our strategic partnership with Oman. With further development already planned, this giant field has the potential to produce gas for Oman for decades to come. “Khazzan further demonstrates BP’s ability to consistently deliver large, complex projects on schedule and within budget while applying the industry-leading skills and technology we’ve developed globally,” Dudley added. “In this case, tight gas techniques we perfected in the US have been brought to Oman and we are very pleased with the results.” Phase One production is expected to plateau at 1 billion cubic feet of gas per day (bcf/d).
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NEWS ROUNDUP TWO MAJOR INTERNATIONAL SUPPLIERS PEN MOU
A recent meeting in Moscow between Viktor Zubkov, Chairman of Gazprom, and Amin H. Nasser, President and CEO of Saudi Arabian Oil Company, resulted in the signing of a Memorandum of Understanding for international cooperation in the gas sector. The signing ceremony took place on during the official visit to Russia by Salman bin Abdulaziz Al Saud, King of Saudi Arabia. The document reflects the intention of the parties to explore the possibilities of cooperation along the entire value chain from natural gas exploration, production, transmission and storage to LNG projects.
NORWAY’S STATOIL MAKES UK DISCOVERY Statoil and partners have made an oil discovery in the Verbier sidetrack well in the outer Moray Firth on the UK Continental Shelf, proving a minimum of 25 million recoverable barrels of oil in the immediate vicinity of the wellbore. The preliminary results suggest the discovery could range anywhere between 25 and 130 million barrels of oil. “This is an encouraging result for Statoil and the UK team. We have proven oil in good quality sands with good reservoir properties, but significant work remains, most likely including appraisal, to clarify the recoverable volumes and to refine this range,” says Jez Averty, senior vice president Exploration in Norway and the UK. The partnership will continue to assess the data and plan further appraisal to determine the exact size of the discovery. The partnership will also seek to determine the commerciality of the discovery in addition to maturing additional opportunities within the P2170 licence. The Verbier main wellbore encountered a waterfilled sand and the decision was made to drill a sidetrack to assess the remaining potential up-dip.
THREE EUROPEAN ENERGY MAJORS AGREE CO2 STORAGE PARTNERSHIP Shell, Total and Statoil recently signed a partnership agreement to mature the development of carbon storage on the Norwegian continental shelf (NCS). The project is part of the Norwegian authorities’ efforts to develop full-scale carbon capture and storage in Norway. In June, Gassnova awarded Statoil the contract for the first phase of the project. Norske Shell and Total E&P Norge are now entering as equal partners while Statoil will lead the project. All the partners will contribute people, experience, and financial support. The first phase of this CO2 project could reach a capacity of approximately 1.5 million ton per year. The project will be designed to accommodate additional CO2 volumes aiming
to stimulate new commercial carbon capture projects in Norway, Europe and more globally across the world. In this way, the project has the potential to be the first storage project site in the world receiving CO2 from industrial sources in several countries. The storage project will store CO2 captured from onshore industrial facilities in Eastern Norway. This CO2 will be transported by ship from the capture facilities to a receiving terminal located onshore on the west-coast of Norway. At the receiving terminal CO2 will be transferred from the ship to intermediate storage tanks, prior to being sent through a pipeline on the seabed to injection wells east of the Troll field on the NCS.
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ENERGY FOCUS ELECTRIC AUTOMOTIVE
Porsche’s Tribute to
Tomorrow PRODUCTION: Karl Pietersen
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Back in June 2016, Energy Focus looked at the launch of the Tesla Model 3 – an exciting time for the electric car industry. There was a feeling around the industry of enthusiasm as the thought was that finally an attractive, high-performance, reasonably priced, well-built, sporty car was about to enter the market. And this was true. It has the looks, it has the international appeal, and it can perform. It’s brothers the Model S and Model X are both industry favourites. But still Model 3 sales and production numbers have not caused any head turning activity. And things are about to get © PORSCHE AG
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more challenging in the luxury sector of the market. Porsche has announced its electric vehicle, the Mission e, will launch at the end of 2019. It’s been known for some time that Porsche has been preparing an all-electric car, at the same time as a number of other big-name peers, but the fact that Porsche was pictured testing the Mission e in Germany alongside Tesla’s Model S shows exactly which type of customer will be targeted. ELECTRIC HISTORY The development of the industry has been impressive and necessary, and has picked up pace in the past
Set for release in 2019, the Porsche Mission e is the German automakers first foray into the fully electric passenger car market. This four-door sports saloon boasts impressive pre-production stats and could take on Tesla and other market leaders, driving traffic towards the electric car market.
decade. Of course, the idea of using electric to power vehicles is not new, in fact, electric transportation prototypes go back further than the combustion engine. In Scotland in 1841, Robert Davidson built a battery powered locomotive and although its performance was abysmal by today’s standards, it had an impact as rail workers saw it as a threat to their jobs and destroyed it. In 1887, a Scottish chemist living in Iowa developed an electric carriage that used newly invested rechargeable batteries and it was an instant hit. The technology was gradually improved and by the late 1800s, various electric carriages and
PORSCHE MISSION E
taxi-style cars were being developed but range, speed and weight remained an issue. In 1899, Belgian Camille Jenatzy used an electric powered ‘racer’ to break 100km/h and 60mph. The following decades saw major developments, of all types of car, all over the world. Dr Ferdinand Porsche, father of today’s Porsche founder, created the Egger-Lohner C.2 Phaeton in 1898, which remains in the Porsche museum in Germany. But in 1908, Ford’s Model T was about to deal the electric car industry a real blow. By the end of the Second World War, almost all electric car makers had converted to combustion
engines or exited the industry. The only that remained were companies producing short-range taxis or milk floats. Various start-ups, and some established names such as GM, continued to experiment with electric vehicles through the 50s and 60s but there was never much of an uptake thanks to indefiniteness and poor performance compared to combustion engine cars. Even after an electric car was successfully developed and used for driving on the moon, the industry still struggled with technology to match oilpowered cars. The 1970s oil crisis prompted a brief recovery of interest in electric vehicles but that died out quickly and by the 1980s big business focus was solely on sellable petrol-driven vehicles. In 96, there was legislation which encouraged automakers to look at alternatives to petrol cars in order to battle harmful emissions. It was one of the first times that the environmental impacts of the combustion engine had been seriously examined and challenged. But following lobbies from automakers and some pockets of the public, the legislation was abandoned with only GM really investing in the research and production that people never truly bought into. In 1992, with growing international consciousness regarding emissions, Alan Cocconi founded AC Propulsion in California. His were the ideas used by GM in
many of their elementary ideas. In 97, he developed the tzero, an electric sport scar with bedroom-wall-poster good looks. At the same time, lithium-ion battery cells were being developed and the two made for a powerful offering. However, the tzero was priced at over $200,000 and was out of the reach of most. A number of the company’s staff wanted to seek further investment and enter full production, but the owners resisted and investment from infamous Elon Musk went to Tesla Motors instead of AC Propulsion. Tesla entered production in 2008, with many describing it as a tzero with the body part of a Lotus Elise. Importantly, the car had a 200-mile range and is widely regarded as the car that got people thinking about electric motoring as a serious alternative to fossil fuel. A number of global automakers began taking existing models and turning them into electric powered vehicles or hybrids, and this worked well although critics argued that range, price, efficiency and charge time were not where they should be. Eventually, in 2011, Nissan developed the Leaf – the world’s best-selling electric vehicle to date. Its 24-kWh lithium-ion battery pack allowed it to travel around 100 miles before needing to recharge. The newest model was released recently and is expected to perform very well on the road and moving out of the show room. Earlier this year, it was announced that the sale of petrol
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ENERGY FOCUS ELECTRIC AUTOMOTIVE
© PORSCHE AG
How much does the Mission E cost?
$85,000 //DRIVING A PORSCHE MEANS DRIVING AT ITS SPECTACULAR BEST// and diesel cars will be banned from 2040 in the UK and other parts of Europe. Major pressure comes from environmental activist groups, the price of oil is high, and alternatives are now cheaper and more technologically advanced. Now is the time for the electric car and the success of the Leaf (coming in at under £17,000) and the hugely popular (in the US) Chevrolet Bolt are proof that attitudes are changing. Chevrolet are whispering that the next step is to make the Bolt a selfdriving, fully-sustainable automotive
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revelation. Hence the entry of the luxury names to the market. MISSION E Porsche has always maintained that the Mission e will be a sports car. After its announcement and the 2015 Frankfurt Motor Show, much hype was placed on this exciting sounding electric-powered potential industry leader. What do we know so far? It will be released in 2019; it will fit into the Porsche range between the 911 and the Panamera; it will be totally electric; various different power models will be
offered; it will probably start at around $85,000; and other body types may become available in time. In 2015, Porsche board chairman Dr Wolfgang Porsche said: “Even in a greatly changing motoring world, Porsche will maintain its front-row position with this fascinating sports car.” The four-door sports car is expected to create jobs (up to 1000) at Porsche headquarters in Stuttgart-Zuffenhausen Germany and major investment has been promised by Porsche to bring production facilities up to scratch. “With its design and its technology, it provides answers to the question of the sports car of the future,” the company says. Initial reports have suggested that the Mission e will have a top speed
PORSCHE MISSION E
© PORSCHE AG
© PORSCHE AG
up to
500
km range
of 250km/h, it will be able to reach 100km/h in just 3.5 seconds, it can travel for 300 miles before needing to charge (80% full charge in 15 mins), and its powerful with more than 600hp. Two PSM (permanently excited synchronous machine) high performance motors positioned on each axle offers extremely high power density, high efficiency and consistent performance. Made from a mixture of different steels, aluminium, and carbon fibre, the Mission e is lightweight and its battery packs sit low in the chassis to perfect weight distribution. To top things off, Porsche claim the Mission e will lap the Nürburgring in under eight minutes – and no one in this class can beat that. In the UK, it looks like electric or hybrid cars will completely replace
those powered by fossil fuel by 2050. But this transition from petrol to electric vehicles is unlikely to solve the problem of health threatening air pollution. After all, demand for travel is growing and electricity, if it is to be the cars fuel of the future, will need to be sourced from somewhere. With renewable energy sources coming online quicker than ever but still relying on fossil fuels to stand behind them, critics say that more CO2 producing facilities will be needed to back the switch from oil to electric. Today, a major percentage of new car sales are attributed to fully electric or hybrid vehicles – the tide seems to be turning. With Tesla as the go-to name associated with the
business, the Porsche Mission e has set out its stall early – provide the best possible product in the market, even if it means taking share from the early innovator. “Driving a Porsche means driving at its spectacular best. “So the future of the sports car looks highly promising. You might even say electrifying,” says Porsche.
PORSCHE MISSION E newsroom@porsche.com www.porsche.com
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COMING THROUGH
SHELL
Investing in Global
Upstream Operations PRODUCTION: David Napier
Shell is looking to the world’s emerging high-growth markets for its future sources of resources. This means big investments in places like Brazil, Mexico, Nigeria, Australia and elsewhere.
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Royal Dutch Shell - the global energy giant that has operations across more than 70 countries and interests in oil, gas, renewable, chemical products, manufacturing and retail – is solidifying its position as one of the front runners in all markets that it operates in by focussing on its strategy on fuel production and divesting from non-core assets in various markets around the globe. Shell is incorporated in England and Wales and is listed on the London, Amsterdam and New York stock exchanges. Through its 110-year history, Shell has become one of the world’s most recognised brands and its yellow and red colours are synonymous with highquality fuel products across all continents. Recent advancements in developing markets are helping to position Shell for the future, and secure supply as the company looks to help meet global energy demand in a responsible way. Geographies including Australia, Brazil, Nigeria and Mexico are all on Shell’s radar and earlier this year, exciting news began to flow from these interesting markets.
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PRELUDE The Prelude FLNG project is now rather famous because of its ambitious size and potential. Prelude FLNG is a 488-metre-long floating facility loaded with state-of-the-art technology for the extraction and storage of natural gas. It allows Shell to access offshore gas fields that would otherwise be too costly or difficult to develop. In July, the vessel arrived in Australian waters and the long, complicated process of mooring and hooking up began. This milestone for Shell is significant because of the significant impact the project will have on the economy in the north of Australia. “Prelude’s arrival is a clear demonstration of Shell’s longstanding commitment to investment and development in Australia – delivering significant economic benefits to the nation,” said Shell Australia Chairman Zoe Yujnovich. “Prelude is an Australian project and Shell has recognised how important it is to build strong partnerships with Australian industry,” she said. Highlighting just a few of the many important impacts the project has had on the region, she said: “To develop and maintain a safe, high performance culture on the
facility, Shell has partnered with South Metropolitan TAFE in Western Australia to develop specific training for Prelude technicians. “150 technicians have been trained across a broad range of critical skills, including helicopter landing and refuelling skills, rigging, scaffolding and first aid. “West Australian based company CIVMEC, a construction and engineering services provider, constructed the four massive anchor piles for Prelude’s subsea flowlines from their facility in Henderson.” Over the next few months, Prelude FLNG will be home to 260 local workers on board the facility during operations and create over a 1500 jobs during the hook-up and commissioning phase of the project. The extraction and liquification of natural gas at sea, followed by delivery to customers around the world will help to entrench Shell’s name as a technology and provision leader in the natural gas industry. GBARAN-UBIE In Nigeria, Shell announced recently that its project in the Niger Delta region - with partners Nigerian National
SHELL
Petroleum Corporation (NNPC, 55%), SPDC (30%), Total E&P Nigeria (10%) and ENI subsidiary Nigerian Agip Oil Company Limited (5%) – had started production. The Gbaran-Ubie Phase 2 development, described as a “key project” by the company will see around 175,000 barrels of oil equivalent (boe) per day flowing by 2019. To date, 18 wells have been drilled and a new pipeline installed to connect various facilities in the region. First gas flowed from the wells in March 2016 and progress is now well underway to see Phase 2 completed on time and on budget. Andy Brown, Shell’s Upstream Director said at the start of production in August: “Today’s announcement is a positive step for Shell’s global gas portfolio. It is also good news for Nigeria as gas from Gbaran-Ubie Phase 2 will strengthen supply to the domestic
market and maintain supply to the export market.” At its peak, Gbaran-Ubie Phase 2 is expected to deliver approximately 864 million standard cubic feet of gas per day (MMscf/d) and 26,000 barrels of condensate per day. LATIN AMERICAN GROWTH Extremely strong in the US market, Shell boasts around 25,000 gas stations across the country. But its eyes are now on expanding further in the Americas. With approximately 1800 service stations across Canada, the next obvious choice for expanding its retail network is Mexico. This became a reality in September when Shell opened its first Mexican site. In the coming months, Shell will open further new service stations and will look to offer its quality
products to Mexican customers, both commercial and individual. The company has said that “if market conditions continue to improve” it expects to invest $1 billion in Mexico. István Kapitány, Shell’s Executive Vice President of Retail said of the development: “This is a major milestone for Shell and shows our ongoing commitment to Mexico. As the fifthbiggest consumer of gasoline in the world, it is an important and growing market. We have been present in Mexico for more than 60 years, but this is our first opportunity to improve Mexican motorists’ journeys through our unique retail experience. “The opening of fuel stations is important for Mexico, given that there are currently just 11,400 service stations, each serving an average of more than 3000 vehicles a day.”
ENERGY FOCUS OIL & GAS
© SHELL
With other big-name international players looking to enter to Mexican market in the near future, this firstmover advantage could stand Shell in good stead for ongoing domination in this exciting sector. BRAZIL DEEP WATER At the end of last month, Shell signed an agreement with Brazil’s Petrobras to ensure ongoing cooperation with regards to technical and cost-effective solutions. The pair are mutually interested
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//AS THE FIFTH-BIGGEST CONSUMER OF GASOLINE IN THE WORLD, IT IS AN IMPORTANT AND GROWING MARKET// in the development of Brazil’s pre-salt fields. The five-year agreement will see Shell learn about Petrobras’s technical solutions, contract management expertise and cost efficient initiatives. Petrobras will benefit from Shell’s global deepwater experience, especially on
cost efficiency efforts and use of technology. “Competitive growth of deepwater resources remains key to our company’s strategy for decades to come, and we’re very pleased to advance the technical and operational benefits of our joint-ventures with
SHELL
Petrobras in Brazil,” said Wael Sawan, Executive Vice-President, Deep Water for Shell. “We’ve seen cost, safety, innovative thinking, and production growth evolve in a very positive way. Preferred partnerships and shared expertise are core to that success.” Together, Shell and Petrobras partner on the Libra and Lula fields and other important areas such as Sapinhoá, Lapa, and Iara, all in Brazil’s Santos Basin. Globally, Shell is also investing
in areas including India, South Africa and Indonesia while reinvesting in areas where it is strongest such as the UK, USA, the Netherlands, Germany and France. This is a business that still believes that oil and gas will remain a vital part of the global energy mix for many decades to come and, as such, is investing its considerable resources in ‘extracting and delivering these energy resources profitably and in environmentally and socially responsible way’.
In 2016, Shell’s revenues were $233.6 billion with income of $4.8 billion. Its global expansion strategy is clearly working.
SHELL +31 70 377 9111 @Shell www.shell.co.uk
ENERGY FOCUS OIL & GAS
BP
Ramping Up Production to Meet
Worldwide Demand PRODUCTION: Timothy Reeder
BP recognises the speed at which the world is changing, and the crucial role it has to play as an energy giant in this transition, helping to meet the world’s need for more energy while reducing carbon emissions.
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BP
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In an increasingly populated and ever-changing world, BP is having to undergo considerable changes of its own. The mix of energy that provides heat, light and mobility for the billions of people across the globe is shifting towards lower carbon sources, driven by advances in technology and growing concerns about climate change. BP is a global energy business committed to playing its part in meeting such a complex challenge, aided greatly by its expertise gained from working across the world, from deserts to the deep sea, from rigs to retail stations, providing fuel and power for heat, light and mobility. Several key projects embody BP’s stance in solving this conundrum,
perhaps none more clearly than Juniper, the fifth BP Upstream major project, and second in Trinidad, to start-up in 2017. First gas was announced from the Juniper development in August this year, and is expected to boost BPTT’s gas production capacity by an estimated 590 million standard cubic feet a day. After investment of approximately US$2 billion Juniper is BP’s first subsea field development in Trinidad, producing gas from the Corallita and Lantana fields via the new Juniper platform, 80 kilometres off the south-east coast of Trinidad in water approximately 110 metres deep. Bernard Looney, chief executive of BP’s Upstream business, said: “Delivered on schedule and under budget, Juniper is a major
//JUNIPER IS A MAJOR MILESTONE IN BP’S MORE THAN 50 YEARS OF INVESTMENT IN TRINIDAD AND TOBAGO//
milestone in BP’s more than 50 years of investment in Trinidad and Tobago. It is the largest new project brought into production in Trinidad for several years and the second major project we have started here this year. Together they represent a significant portion of the new production capacity we expect to bring online in 2017.” It joined another major project in Trinidad - the Trinidad Onshore Compression project - which began operations in April, while in June BPTT announced that it had also sanctioned development of the Angelin gas field, which is expected to start production in late 2019. “The safe start-up of production from Juniper is a proud moment for BPTT, and further demonstrates our commitment to helping improve production capacity for Trinidad and Tobago,” said Norman Christie, BPTT’s regional president. Confirmation of production at Juniper in Trinidad was swiftly followed by news of BP’s Persephone in Australia, another of its seven Upstream major projects expected to come online in 2017. The Persephone project is operated by Woodside Energy and, at peak production the project is expected to produce around 48 mmscfd of gas net for BP. Bob Dudley, BP group chief executive said: “This is a significant year for BP and, with five of our seven planned major projects now onstream, delivery of our plan is firmly on track. “Importantly, these new projects, with their lower development costs and higher margins, also further improve BP’s resilience to the price environment.”
BP +44 (0)20 7496 4000 www.bp.com
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ENERGY FOCUS RENEWABLES
DONG ENERGY / ØRSTED
New Identity Accompanies Shift
From Black to Green PRODUCTION: Rod Stone
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DONG ENERGY / ØRSTED
//
Over the past decade, DONG Energy has sought to transform itself from an energy company based on coal and oil to a global leader in renewable energy. In doing so the company has increased earnings considerably, while reducing the use of coal in its power stations and building out new offshore wind farms. Since 2006, carbon emissions have been reduced by 52% and by 2023, they will have been reduced by 96% in comparison.
As a consequence of this profound strategic transformation, and alongside the recent divestment of its upstream oil and gas production, the name DONG Energy has been universally deemed no longer applicable to the company and its operations. As Thomas Thune Andersen, Chairman of the Board of Directors, explains: “DONG was originally short for Danish Oil and Natural Gas. With our profound strategic transformation and the divestment of our upstream oil and gas business, this is no longer who we are. Therefore, now is the right time to change our name.” “Our vision is a world that runs entirely on green energy,” he continues. “Climate change is one of the most serious challenges facing the world today, and to avoid causing serious harm to the global ecosystems, we need to fundamentally change the way we power the world by switching from black to green energy.” DONG Energy is no more; henceforth the company will be known as Ørsted. This is inspired by the innovative Danish scientist Hans Christian Ørsted (17771851), who spearheaded several scientific discoveries to help lay the foundation for how today ’s societies are powered. CEO Henrik Poulsen explained the rationale behind the company ’s choice: “ We’ve undertaken significant efforts to find the right name and brand identity for our company. Our new name recognises H.C. Ørsted’s curiosity, dedication and interest in nature and our brand identity speaks to the innovation and pro-found understanding of nature, which is vital to creating a world that runs entirely on green energy.” The newly-monikered company has in recent weeks been awarded a contract to build its Hornsea Project Two offshore wind
farm, coming in at the lowest-ever price for offshore wind in the UK. To be built 89 kilometres from the Yorkshire coast and expected to be operational from 2022, its massive capacity of 1386 MW, enough to power over 1.3 million UK homes, will position Hornsea Project Two as the world’s biggest wind farm. Samuel Leupold, Executive Vice President and CEO of Wind Power, described the significance of this award for the company ’s intended next steps. “[ This] is another important step towards ful-filling our vision of making offshore wind the most competitive form of electricity generation. We have always promoted size as a key driver for cost. The ideal size of an offshore wind farm is 800-1500 MW, and therefore it is natural that Hornsea Project Two will deliver record-low costs to society. At the same time, the low strike price demonstrates the cost saving potential of developerbuilt offshore grid connections, which in the UK is included in the project scope.” This is exactly to what Henrik Poulsen was referring when he stated that, “2017 will be remembered as the year when offshore wind became cheaper than black energy. It has never been more clear that it is possible to create a world that runs entirely on green energy. The time is now right for us to change our name to demonstrate that we want to help create such a world.”
DONG ENERGY / ØRSTED +44 20 7811 5200 www.dongenergy.co.uk
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ENERGY FOCUS OIL & GAS, RENEWABLES
STATOIL
Exploring Argentina’s
Vast Riches PRODUCTION: Timothy Reeder
//
Norwegian company Statoil has been pushing the boundaries of imagination and technology since 1972 to solve challenges in the oil and gas industry, and help it deliver oil, gas and wind power to fuel the lives of more than 170 million people each day. It has just entered into an agreement with Argentina’s leading energy company, YPF, to jointly explore hydrocarbons in the Bajo del Toro block in the Neuquén Basin onshore Argentina. It enters the exploration permit in the Neuquén Basin as a partner with a 50% participating interest alongside operator YPF, which retains the other half, while in acknowledgement of the costs incurred to date by YPF Statoil will fund in their entirety certain future activities within the block. Located in the Neuquén Basin in the west-central part of Argentina, the Bajo del Toro exploration permit covers an area of 157 km2, the main target of which is the Vaca Muerta formation. Statoil’s quest has already taken it to greater depths, deeper waters and new frontiers, and this is another, representing as it does Statoil’s first ever foray into Argentina.
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“Bringing a new international player like Statoil into the country shows confidence in Vaca Muerta as a promising shale play and in YPF as a leading operator. We are pleased to expand the cooperation between both companies”, underlined YPF Chairman, Miguel Angel Gutierrez. Argentina’s unconventional oil and gas resources are among the world’s largest and the Neuquén province is the country’s most prolific hydrocarbon basin, with Vaca Muerta expected to host major deposits of tight oil and shale gas. Statoil’s executive vice president for Exploration Tim Dodson said of the agreement: “This is a light oil exploration project in a world-class unconventional resource play, the Vaca Muerta formation. The opportunity has an excellent fit with Statoil’s sharpened strategy, and is in line with our exploration strategy of delivering profitable, high-quality resources. “We are very pleased to expand our cooperation with YPF, the leading player in the Neuquén Basin, and look forward to work closely with them to unlock the potential in the Bajo del Toro block.” Statoil entered its first license in South Africa in 2015, acquiring
a 35% interest in the ExxonMobiloperated Tugela South Exploration Right, to which it has recently added participating interests in two additional offshore frontier blocks, including one operatorship. These comprise a 35% interest in Exploration Right 12/3/252 Transkei-Algoa with ExxonMobil Exploration and Production South Africa Limited, a transaction with OK Energy Ltd to acquire a 90% interest and operatorship in the Exploration Right 12/3/257 East Algoa. The license covers approximately 45,000 and 9,300 square kilometres respectively. “These transactions strengthen Statoil’s position in South Africa and our long-term exploration portfolio. This is in line with our global exploration strategy of early access in basins with high potential,” concluded Nick Maden, senior vice president for exploration in the southern hemisphere.
STATOIL +47 51 99 00 00 www.statoil.com
STATOIL
ENERGY FOCUS OIL & GAS
MAERSK CULZEAN PROJECT
Full Steam Ahead for
Maersk’s Culzean Development PRODUCTION: Timothy Reeder
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MAERSK CULZEAN PROJECT
//
The Culzean field is about 250km east of Aberdeen and is expected to produce 60,000-90,000 barrels of oil equivalent a day at plateau production, approved by the Oil & Gas Authority in August 2015. It provided the industry with a much-needed boost at its discovery in 2008, with reserves estimated at 250-300 million barrels of oil equivalent. Production is slated to begin in 2019 and have a lifespan of at least 13 years, but with Culzean being a high-pressure, high-temperature (HPHT) development, accessing and exporting its gas riches is by no means a straight forward process. Despite the many challenges thrown at Maersk and the innovation required as a direct result, Maersk Oil announced at the close of 2016 that the capital costs of its marquee gas project had been reduced by USD 500m, thanks to higher drilling efficiency and robust upfront design and
project planning. Revised investment costs for the Culzean project now stand at around USD 4bn, as CEO Gretchen Watkins outlined at the Maersk Group Capital Markets Day in Copenhagen. “This updated forecast reflects Maersk Oil’s commitment to world class project execution and our aim to continually improve our major capital projects, together with our partners and suppliers. Achieving cost reduction of 11% during project maturation, we are showing our ability to deliver greater value for investors and stakeholders through effective project delivery and controls,” Watkins stated. 2016 brought a number of milestones for the Culzean development, which is expected to meet 5% of total UK gas demand. Maersk Drilling acquired the newbuild rig in late May, which came with a five-year drilling contract on Culzean valued at about USD 420
million. Drilling of the first production well started in September, meanwhile, and will be followed by five more, with continuous drilling activity planned over the next five years. More recently, in July 2017, Maersk Oil completed the installation of all three of the project’s jackets, on time and on budget. “Culzean was sanctioned less than two years ago and already we’ve progressed the project over the halfway mark. We’re continuing to hit our milestones on time and this progress means we’re on track to deliver first gas in 2019. Nonetheless with a project of this size we can’t be complacent so we’re committed to ensuring remaining workscopes are executed safely and successfully,” said Watkins. The installation of Central Processing Facilities (CPF) and the Utilities and Living Quarters (ULQ) jackets was completed on 20 July, preceded by the Wellhead Platform (WHP) jacket last year, all built by Heerema and installed using the Heerema Marine operated crane vessel - the Thialf. “Completing the installation safely and on time is a great achievement when you consider the sheer scale of the structures involved; the combined weight of the jackets is over 22,000 tonnes, the equivalent of around 30 jumbo jets per jacket,” explained Martin Urquhart, Culzean Project Director. “With the foundation of the Culzean installation firmly in place and waiting, focus is now fixed on finalising the construction of the three topsides and the Floating, Storage and Offload (FSO) vessel Ailsa. We have just celebrated the completion of the deck stacking of the topsides and the sail away of these structures is on schedule for next year. Their installation will take us to the beginning of the hook up and commissioning campaign, the final step before first gas is delivered in 2019,” Urquhart concluded.
MAERSK +45 33 63 33 63 www.maersk.com
www.emea-energy.net / 25
ENERGY FOCUS OIL & GAS
TOTAL
Total Swoops for
Oil Giant PRODUCTION: Rod Stone
Total is major energy operator: the world’s fourth-largest oil and gas company as well as a major integrated player in the global solar industry, while a multi-billion dollar swoop for Danish oil and gas firm Maersk Oil now sees it assume to title of the second largest North Sea operator.
//THE COMBINATION OF MAERSK OIL’S NORTH-WESTERN EUROPE BUSINESSES WITH OUR EXISTING PORTFOLIO WILL POSITION TOTAL AS THE SECOND OPERATOR IN THE NORTH SEA//
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TOTAL
//
The colossal $7.45bn deal to see Maersk Oil become part of a leading global oil and gas operator is the largest North Sea takeover in a decade, and even more surprising given other oil majors’ current preference to quietly retreat from UK waters. It is a move which the French major said would strengthen its operations in the North Sea, while simultaneously raising its output to three million barrels per day by 2019. When completed, Total will hold a stake in the one of the basin’s largest oil discoveries ever made; the Johan Sverdrup field. The is in addition to the Culzean gas project, which will be capable of providing 5% of the total UK gas demand by the end of the decade. Patrick Pouyanne, Total’s Chief Executive and Chairman,
commented: “The combination of Maersk Oil’s North-Western Europe businesses with our existing portfolio will position Total as the second operator in the North Sea with strong production profiles in the UK, Norway and Denmark, thus increasing exposure to conventional assets in OECD countries. This transaction delivers an exceptional opportunity for Total to acquire, via an equity transaction, a company with high quality assets which are an excellent fit with many of Total’s core regions.” Many of the world’s top oil companies have resumed action on the takeover front in the last year, prompted by signs of a recovery in the oil market. Total expects its biggest oil deal since the acquisition of Elf in 2000 to generate financial
synergies of more than $400 million per year. For Danish company A.P. Moller Maersk, meanwhile, the sale of Maersk Oil, with reserves equivalent to around one billion barrels of oil, fits its strategy of focusing on its shipping business and other activities to create an integrated transport and logistics company, and this transaction will contribute significantly to upholding its strong capital structure. “In determining the best future ownership structure for Maersk Oil, it has been imperative for us that the capabilities and assets created in Maersk Oil continue to be developed, and that long-term investments are upheld, especially in the Danish part of the North Sea,” explained Søren Skou, CEO of A.P. Moller Maersk. “The valuation of Maersk Oil and Total’s commitment is a testament to the quality and standing of Maersk Oil. In addition, the agreement will strengthen the financial flexibility of A.P. Moller Maersk and free up resources to focus our future growth on container shipping, ports and logistics.” Denmark will become the regional hub for all Total’s operations in Denmark, Norway and the Netherlands, based on Maersk Oil’s capabilities and strong position in the North Sea region. “Maersk Oil’s activities across the North Sea will become part of a leading global operator with a strong performance record and long-term growth interest in the sector. The combination of Total and Maersk Oil’s global footprint and geographical overlap will ensure the continued development of Maersk Oil’s worldwide strategic and selective assets,” concluded Claus V. Hemmingsen, Vice CEO of A.P. Moller Maersk and CEO of the Energy division.”
TOTAL 020 7339 8000 www.total.co.uk
www.emea-energy.net / 27
ENERGY FOCUS OIL & GAS
SCHLUMBERGER
Second Time Lucky For
EDC Acquisition PRODUCTION: Timothy Reeder
//
In what is a major landmark for the oil and gas industry, Schlumberger, the world’s largest oilfield services company, has announced that it will acquire a majority share in Eurasia Drilling Company. It is an agreement that extends an already successful long-term relationship in the conventional land drilling market, established by the two companies in 2011. Eurasia Drilling Company (EDC) is a leading onshore and offshore drilling and well services contractor, owning and operating one of the largest fleets of land drilling and workover units in the world, and
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is also the premier supplier of drilling services in the expanding Caspian Sea jack-up market. This transaction pairs it with the world’s leading provider of technology for reservoir characterisation, drilling, production and processing to the oil and gas industry. With a presence in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, reporting revenues of $27.81 billion in 2016. It comes as
Schlumberger’s second attempt to buy Russia’s biggest drilling company, less than two years after a similar plan was scuppered amid opposition from the nation’s regulators, and provides the first U.S. stake in Russia’s oil and gas sector since sanctions were imposed on Moscow after its 2014 annexation of Crimea. Schlumberger, based in Houston and Paris, had sought to buy 45.65% of EDC for $1.7 billion in 2015, with an option to acquire the rest at a later stage, a deal which fell through after Russian authorities delayed approval for almost eight months.
SCHLUMBERGER
“I warmly welcome Schlumberger as our majority shareholder,” commented EDC Chief Executive Alexander Djaparidze. “It builds on our strategic alliance with Schlumberger since 2011 and our mutually beneficial business relationship since 2007.” The deal, announced before the release of Schlumberger’s second-quarter results, came as lawmakers in Washington debated fresh sanctions on Russia’s energy industry. Conversely, EDC’s core business is drilling wells for conventional fields in Russia, operations which do not fall under western sanctions targeting Arctic, deepwater and
shale-oil projects. “Despite what’s happening in Washington, corporate America still sees the opportunity in Russia and very much wants to be engaged in Russia,” said Chris Weafer, partner at Macro Advisory in Moscow. “With a very powerful company like Schlumberger taking such a strong position in the Russian oil sector, Russia effectively now has another lobbyist in the U.S. against sanctions.” Kremlin spokesman Dmitry Peskov, said of the deal that, “Russia was, is and will be interested in cooperation with foreign investors in all possible areas, except for the
most sensitive ones. “And even in these areas there are possibilities to cooperate.” For Schlumberger, the investment will mean access to the Russian market, a key area where producers have sustained their capital spending despite low oil prices.
SCHLUMBERGER +331 71 77 60 00 www.slb.com
ENERGY FOCUS POWER GENERATION
SIEMENS ENERGY
German Powerhouse Brings
Energy to Pakistan PRODUCTION: Karl Pietersen
//
Global energy company, Siemens - one of the most technologically advanced and innovative businesses on the planet – continues to advance its position in the power and energy industries through the supply of
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state-of-the-art, world leading ideas to customers all over the world. After recent extensions of its arm into Brazil, France, Mozambique, China, Kuwait, Vietnam, the UK and the Netherlands to name just a few, the German-based company
received orders from Pakistan for a complete power island for the new combined cycle Punjab Power Plant Jhang. Partnering with Chinese company CMEC to construct the new plant, the Pakistan government are confident that their energy policy
SIEMENS ENERGY
and building of a number of new supplier to the grid will end loadshedding in the country. The facility in Jhang is to be a 1263 MW LNGfueled power plant to complement the recently completed Bhikhi power plant, Sahiwal Power Plant and Solar Park Bahawalpur. Siemens will supply the Jhang plant with a 2x gas turbine power island, part of its H-class system. The power island is made up of two SGT5-8000H gas turbines, one SST-5000 steam turbine, two heat recovery steam generators as well as control and auxiliary systems. Siemens will undertake all of the engineering, project management and on-site services. Extremely proud of its H-class, Siemens says it has built up more
than half a million safe operating hours with reliability at around 99%. To date, the company has sold 84 H-class systems. The contract in Pakistan is reportedly worth €200 million and is expected to deliver first power by December 2018. The combined cycle operation will begin in November 2019. “With this project we can help to significantly improve the sustainable, reliable and affordable supply of power to the people in Punjab Province and the whole country,” said Willi Meixner, CEO of the Siemens Power and Gas Division. “It is the largest power plant order that Siemens has ever received from Pakistan,” Meixner added. Currently, Siemens is active in
around 200 countries and employs more than 350,000 people. This move into Pakistan solidifies the company’s reputation in the area as an industry leader. Highlighting the company’s dominance, during 2016, Siemens generated revenue of €79.6 billion and net income of €5.6 billion. Earlier in 2017, Siemens was active in Bangladesh delivering 46 transformer substations to the national energy provider. This €40 million contract saw Siemens design, deliver and install, test and commission the substations, which have a voltage level of 33 and 11 kilovolts (kV). The new equipment will help deliver reliable and affordable supply to the states of Dhaka, Chittagong and Sylhet where many rural areas are cut off from electricity supply. “We are especially proud to have landed another order in the region and to help further electrify the country,” says Ralf Christian, CEO of the Energy Management Division. “The order is one in a long series of infrastructure projects that Siemens has been able to complete successfully in Bangladesh.” Siemens India and Siemens Bangladesh are cooperating on the project and are completing a large scope on installation and engineering activity. The constant growth of Siemens influence in markets around the world is testament to the worldclass products its outstanding people develop.
SIEMENS ENERGY +49 (69) 797 6660 www.siemens.com
www.emea-energy.net / 31
ENERGY FOCUS RENEWABLES
EDF RENEWABLES
Cementing Top Spot in
UK Renewables PRODUCTION: Timothy Reeder
Not satisfied with its status as the UK’s largest producer of low-carbon electricity, the biggest supplier of electricity by volume in Great Britain and the largest supplier to British businesses, EDF Renewables is bolstering its operations in the territory with a fleet of new wind farm sites.
//
With a potential capacity of 600 MW, EDF Energy Renewables (EDF ER) has bought 11 wind farm sites in Scotland from Partnerships for Renewables, a development and asset management company. Three sites with around 100 MW of capacity already have planning consent, with one site in the planning system and a further seven others in development. The majority of the projects are on land managed by Forest Enterprise Scotland, while the acquisition follows the opening of EDF Energy Renewables new offices in Edinburgh earlier this year. It provides further evidence of EDF Group’s commitment to Scotland and renewable energy in the UK and around the world, with its current 319 MW in operation in Scotland and more than 1 GW in development, including the fully consented 340 MW Lewis Wind Farm projects. EDF Energy Renewables Chief Executive Matthieu Hue said: “We are very pleased to be adding these ‘Partnerships for Renewables’ projects to our portfolio. EDF Energy Renewables has a well-established strategy to grow our business either by developing our own sites or through acquiring high calibre
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projects. This deal underlines our ambitions to develop our business further and to expand the number of wind farm projects we are developing.” There is also cause for celebration within EDF ER’s existing portfolio, with the first turbine foundation making its way up the River Tyne to finish at the company’s Blyth Offshore Wind Farm Project in July this year. The project will comprise five wind turbines with a total generating capacity of 41.5 MW installed around 6.5km off the coast of Blyth, which when operational will generate enough low carbon electricity to power around 34,000 homes. Concrete gravity based foundations (GBFs) form part of the project and are being installed using a new “float and submerge” method – the first time this method has been used for offshore wind turbines. Hue said: “This is the first major offshore operation on this project and over the coming months people will be able to see the wind farm being built out at sea. This ground-breaking scheme will benefit the North East of England and help the UK to meet its future low carbon electricity needs. The GBFs were designed and built by
Royal BAM Group in the Neptune dry dock on the Tyne and are held in place by gravity and this unique design reduces the need to use expensive marine equipment for the installation on the sea bed.” Five major wind turbine foundations, each weighing 15,000 tonnes, have since been successfully installed, and work is now underway to lay around 11km of cables offshore to connect the individual turbines and bring the electricity onshore. EDF Energy Renewables director of operations, Don Mackay, commented: “This is an important milestone in a ground-breaking project. The Blyth offshore wind demonstrator project incorporates several new and innovative features as part of its role in testing and proving new and emerging offshore installation methods and technologies.”
EDF RENEWABLES 020 7339 8000 www.edf-er.com
EDF RENEWABLES
ENERGY FOCUS OIL
FLEXOMARINE
Essential Technology for Offshore
Oil Operations PRODUCTION: Timothy Reeder
Since its entry into the market in 1978, Flexomarine has supplied more than 14,000 of its highquality floating and submarine hoses to clients and projects across the globe.
//
Flexomarine can count among its extensive list of clients some of the real giants of the oil world, including BP, Maersk and Statoil, among countless others. These are global energy businesses which operate across the world, playing the most crucial roles in meeting the world’s increasing energy demands. Flexomarine possesses the capacity to produce in excess of 1100 of its trademark hoses per year, thanks to a raft of 13 construction machines all fully equipped with a complete calendaring system, to support all rubber and fabric rubberising procedures, and backed by a powerful steam generator. A trio of autoclaves, which are pressure chambers used to carry out industrial processes requiring
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elevated temperature and pressure different from ambient air pressure, combine to ensure the delivery of such tremendous production figures. Flexomarine’s unbridled success can be attributed in no small part to the manufacturing capacity at its disposal, and its renowned hoses are offered in two distinctive finishes: either on black rubber with orange stripes, or fully orange with a polyurethane covering. These latter are perhaps the most striking of the range, and embody the company’s no-nonsense approach to the manufacture of its wares. Submarine hoses come into their own primarily in offshore applications and are required to combine strength with flexibility. The design has to take into consideration many factors such as water depth, tide, buoy excursions and wave patterns,
while on the other side of Flexomarine’s business are its floating hoses, which have to be carefully engineered to adapt to oceans which provide rapidly changing project conditions. This requires expert knowledge and experience, and Flexomarine is one of the largest suppliers of hose for special reel systems for offloading FPSO’s in the world, fully certified under OCIMF/ GMPHOM 2009: ISO 9001:2008 which translates to an ability to fulfil the whole range of Prototype Certificates from 6” to 24” across its Double and Single Carcass designs. For the Single Carcass this can be from 6” up to 12” and from 16” up to 24”, while on the Double Carcass side provisions can be made from 6” up to 12” and from 16” up to 24”. In recent years, it has been able to bolster its service offering through the
FLEXOMARINE
ENERGY FOCUS OIL & GAS
achievement of the new GMPHOM 2009 5th Edition Double and Single Carcass hoses Certificate - 600mm and 300mm Double Caracas Hose and 600mm and 300mm Single Carcass Hose - which are widely regarded as the next generation of a long product line embodying historical design, engineering and fabrication of this specialist product. Flexomarine has been manufacturing
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Double and Single Carcass Hoses since 1987 and this latest success establishes the company as the only fully qualified Brazilian Manufacture of GMPHOM 2009 5th Edition. This allows Flexomarine to supply all sizes and types for the GMPHOM 2009 marine hose guide. At its Brazil headquarters, a fully equipped laboratory extensively tests and controls all raw materials
used for the fabrication of the hoses themselves, with every hose having its own traceability registered inside a comprehensive Production Record System. Here, every step of fabrication is registered with the information from each batch of raw material used in the relevant fabrication process, which is further controlled at various holding points along the way to provide
FLEXOMARINE
complete quality control. Flexomarine is the largest supplier both to Petrobras and Transpetro, both of which are headquartered in Brazil’s Rio de Janeiro. The latter is the largest oil and gas transportation company in Brazil, a major player in the transportation and storage activities of oil and byproducts, ethanol, biofuels and natural gas. It is responsible for a network of more than 11,000 kilometres of oil and gas pipelines, connected to terminals, as well as an oil tanker fleet. It is a fully owned subsidiary of Petrobras, itself a semi-public Brazilian multinational corporation in the petroleum industry and ranked at number 58 in the most recent Fortune Global 500 list. Oil and natural gas exploration and production are Petrobras’s core activities, as it seeks to increase reserves and develop production to make sure that it can play its own part in meeting the increased demand for energy. Probably most illustrative of this is its application of technology and the persistence of its employees to overcome previously apparently insurmountable challenges and enable it to operate in pre-salt and post-salt areas. As such, several platforms have come into operation in recent years, including platforms FPSO P-63 and P-61 (a Tension Leg Wellhead Platform - TLWP) which were installed in the Papa-Terra field of the Campos Basin. These will work in tandem and afford a combined processing capacity of 140,000 bpd of oil and a million cubic meters of gas per day. A combination of reservoirs containing 14 to 17 API crude and the deep-water location has made
Papa Terra one of the most challenging projects ever conceived by Petrobras, possible only through the application of various innovative solutions. The deep waters of the Campos Basin presented perhaps the most significant challenge to date during initial exploration in the 1970s, but continually evolving technology means that today, production in deep pre-salt waters is already a consolidated reality. Flexomarine has more than 1000 hoses in operation in the Petrobras Campos basin, the primary known sedimentary area off the Brazilian coast. It ranges from the outskirts of Vitoria to Arraial do Cabo, off the northern coast of Rio de Janeiro, an area covering approximately 100,000 square kilometres. This colossal open-air laboratory has been the testing ground of some crucial offshore technologies used to develop projects to produce at water depths never before
//FLEXOMARINE HAS MORE THAN 1000 HOSES IN OPERATION IN THE PETROBRAS CAMPOS BASIN//
reached in the world. Among innovations in these fields was the installation of the first anticipated production system on a floating platform, bringing with it efficiency, operational flexibility and huge savings. It also allowed oil production to begin while the definitive, fixed platforms, which would later be installed, were still being built, and it was the development of these systems later enabled oil to be lifted from deep and ultra-deep waters.
FLEXOMARINE +55 11 2633 8611 flexomarine@flexomarine.com.br wwww.flexomarine.com.br
Proud to be part of Flexomarine’s Success
www.sivaco.com
EXHIBITION CALENDAR //TABLE OF ALL EVENTS:
KEY UPCOMING EVENTS ACROSS THE INDUSTRY Our regular update to help you keep track of important events and exhibitions taking place across the energy sector.
19TH INTERNATIONAL CONFERENCE ON SHALE FUEL RESERVES HOLIDAY INN WEMBLEY, LONDON OCT 19 – 20 24TH AFRICA OIL WEEK CAPE TOWN ICC, SOUTH AFRICA OCT 23 – 27 2017 IADC ADVANCED RIG TECHNOLOGY CONFERENCE & EXHIBITION MÖVENPICK HOTEL AMSTERDAM OCT 24 – 25 AAPG | SEG INTERNATIONAL CONFERENCE & EXHIBITION EXCEL LONDON OCT 15 – 18
OFFSHORE WIND EUROPE 2017 NOV 14 | LONDON With over 12.6GW of operating offshore wind projects in Europe and around 63GW in total (including pipeline), we bring the leading project owners, most innovative developers and ambitious operators together under one roof to discuss out how they will reach a sub €60/ MWh continent, both reducing CAPEX pre-construction, and OPEX post-construction. 24TH AFRICA OIL WEEK OCT 23 | CAPE TOWN Africa Oil Week is the meeting place for Africa’s upstream oil and gas market – and with 16 hours more conference content than last year, it’s bigger and better than ever before. Now in its 24th year, the event brings together governments, national oil companies, investors, corporate players, independents and financiers
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– giving them a place to network, discuss and share knowledge. Africa Oil Week attracts the highest quality speakers. Sessions are headed by top figures in the sector, including ministers, heads of NOCs, leading scientists and CEOs from major and independent firms. FLOATING OFFSHORE WIND UK NOV 14 | GLASGOW We’re bringing together project developers, manufacturers, financiers, ports, supply chain companies and technical experts to discuss the substantial opportunity this technology represents for UK companies, and the global industry. Attendees will benefit from the opportunity to connect with all floating offshore wind players in one location, learn about current progress and opportunities, and get insight into future trends and policy needs for the sector.
AFRICA OIL & GAS LOCAL CONTENT CONFERENCE & EXHIBITION EPIC SANA, LUANDA, ANGOLA OCT 14 – 16 5TH TURKEY, MIDDLE EAST AND AFRICA NUCLEAR INDUSTRY CONFERENCE 2017 ISTANBUL, TURKEY OCT 18 – 19 OFFSHORE WIND EUROPE 2017 LONDON NOV 14 – 15 FLOATING OFFSHORE WIND UK SEC, GLASGOW NOV 14 OCEAN ENERGY EUROPE CONFERENCE & EXHIBITION NANTES, FRANCE 25 – 26 OCT
Big operation. Biggest network. Big operation. Biggest network.
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