Energy Focus - Q2 2019

THE BUSINESS MAGAZINE FOR ENERGY LEADERS

EMEA

ENERGYFOCUS June 2019

www.emea-energy.net

LITGRID

Connecting Baltic States to European Power Network

ALSO IN THIS ISSUE:

Masen / SBM Offshore / Gazprom / Siemens

EDITOR’S LETTER EDITOR Joe Forshaw  joe@emea-energy.net SENIOR PROJECT MANAGER Sam Hendricks  sam@emea-energy.net SENIOR PROJECT MANAGER Tommy Atkinson  tommy@emea-energy.net PROJECT MANAGER Shannon James  shannon@emea-energy.net PROJECT MANAGER James Davey  jamesd@emea-energy.net PROJECT MANAGER Chris Wright  chrisw@emea-energy.net FINANCE MANAGER Chelsea Pettifer  finance@emea-energy.net SENIOR DESIGNER Liam Woodbine  liam@emea-energy.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk

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Low oil prices and the ongoing focus on development and transition to renewable energy make for challenging conditions right now. Combine this with increasing uncertainty arising from so called trade wars between China and the USA, and an undercurrent of global economic uncertainty, and business becomes challenging for global energy players.

But, as with any business in any industry, and as we have heard so many times before, those that take challenges as opportunities are those that will thrive when times are tough.

Take SBM Offshore for example, a company active in the oil and gas industry. By introducing new innovations and streamlining processes to bring solutions to customers faster than ever, the company has continued to deliver positive results, already improving on 2018 and investing in future growth.

LitGrid, the Transmission System Operator of Lithuania, is investing in connections to the grid in Poland, Sweden, and the other Baltic States. Part of the wider European Union initiative to connected the Baltic region to the continental system, these links will be vital when it comes to securing supply in the area.

Masen, in Morocco, is investing heavily in efforts to harness sun power in North Africa, and is confident, already involved in the Noor Ouarzazate Solar Power Station. As the company looks at innovative new solar projects to continue building its portfolio, it is also investigating wind power projects, helping to further ensure the MWs continue to flow across Morocco.

While these industry leaders continue to perform to world-class standards, it’s not the same for everyone. Get in touch and tell us how your business is coping with the current energy market volatility. We’re online @EmeaEnergy.

Rouen House, Rouen Road, Norwich NR1 1RB Administration & Finance +44 (0)20 7193 0419 Advertising & Feature Sales +44 (0)20 8123 7859 Editorial & Design +44 (0)20 7193 2735 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2019

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 News Snapshot A round up of some of the latest news stories in the industry.

46/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the industry.

8/LITGRID Connecting Baltic States to European Power Network Litgrid is at the forefront of efforts to bring Lithuania, Latvia and Estonia together under a strong energy system. The national TSO for Lithuania is also leading the works to connect the Baltic states to the continental European energy network which spans 26 countries and provides security across the network.

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CONTENTS

Ouarzazate Power Station Noor III Solar Tower © Marc Lacoste

8/ 14/ 18/ 24/ 30/ 34/ 40/

LITGRID Connecting Baltic States to European Power Network GAZPROM Natural Gas Expertise Secures Europe’s Supply MASEN Transforming Morocco’s Energy Mix SBM OFFSHORE Offshore Energy Specialist Booms SIEMENS Solutions to Meet Rising Energy Demand TOTAL On the Road to Becoming the Responsible Energy Major JAN DE NUL GROUP Changing the Shape of Water and Land www.emea-energy.net / 5

BP TO SELL EGYPT ASSETS TO DRAGON OIL

Global oil major BP has agreed to sell its interests in Gulf of Suez oil concessions in Egypt to Dragon Oil, the Dubai-based oil and gas company.

The sale will see Dragon Oil purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO). Dragon Oil is a whollyowned subsidiary of the Emirates National Oil Company (ENOC).

BP is divesting more than $10 billion of assets globally over the next two years and the deal with Dragon Oil is expected to go through in the second half of 2019 (subject approval from the Egyptian Ministry of Petroleum and Mineral Resources).

Hesham Mekawi, regional president, BP North Africa, added: “We continue to bring on new developments and deliver important gas supplies for the country. We remain on track to triple our 2016 net production from Egypt by 2020. As we grow our business here, we also keep our portfolio under review. We believe Dragon Oil is well-placed to operate these mature assets, delivering further value for Egypt.”

Bob Dudley, BP chief executive, added: “Egypt is a core growth and investment region for BP. In the past four years we have invested around $12 billion in Egypt – more than anywhere else in our portfolio – and we plan another $3 billion investment over the next two years. We look forward to continuing to broaden our business here, working closely with the government of Egypt as we develop the country’s abundant resources.”

BP’s assets in Egypt include the West Nile Delta development, five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks, production from the Giza and Fayoum fields, production from the Taurus and Libra fields, development of the Raven field, the Zohr gas field, and more.

BP currently produces, with its partners, close to 60% of Egypt’s gas production through the joint ventures the Pharaonic Petroleum Company (PhPC) and Petrobel (IEOC JV) in the East Nile Delta as well as through BP’s operated West Nile Delta fields.

E.ON PLANS TO ELIMINATE GREENHOUSE GAS IN GAS-INSULATED SWITCHGEAR European energy giant, E.ON, alongside the VC Fund Technologie Berlin, managed by IBB Beteiligungsgesellschaft mbH, are investing in nuventura, a start-up that develops switchgear without the potent greenhouse gas sulfur hexafluoride (SF6).

SF6 is a synthetic gas that is extremely long-lived – its atmospheric lifetime is estimated at over 3000 years.

The atmospheric greenhouse effect of one kilogram of SF6 in the first 100 years alone equals that of over 23,500 kilograms of CO2.

By replacing SF6 in gas-insulated switchgear with dry air, nuventura’s technology offers significant environmental benefits while increasing efficiency and profitability.

Gas-insulated switchgear, a fundamental component of any electricity grid, uses SF6 as a protective gas layer enclosing the conductors. In the long term, nuventura’s technology will make SF6 obsolete in switchgear insulations, which currently use 85% of all globally produced SF6. Currently, the annual greenhouse effect of

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SF6 emissions equals that of 100 million cars emitting CO2.

Switchgear equipped with nuventura’s solution is easier to operate than SF6-based technology and allows for sensors within the gas container, which monitor the equipment and capture valuable operating data for smart grid applications. Based on sensor data, the operator can optimize maintenance cycles and anticipate required actions to ensure smooth operations. Sensors also play a key role in grid IT security and, therefore, for smart grid management.

“Our collaboration with nuventura is an active contribution to climate protection,” said Alexander Montebaur, E.DIS AG Chairman. “In nuventura, we have found a partner with the potential to make a key technical asset in our grids emission-free.”

Fabian Lemke, commercial director at nuventura, added, “We should do everything in our power to achieve a complete ban of SF6. That is why we are making our technology available to all switchgear manufacturers via licenses.”

NEWS SNAPSHOT EXXONMOBIL READY TO INCREASE PRODUCTION IN ANGOLA ExxonMobil and its partners said in June that they will further invest in Block 15 offshore Angola to increase production as part of an agreement with Angola’s recently established National Agency for Petroleum, Gas and Biofuels. As part of the agreement, Sonangol, Angola’s state oil company, will receive a 10 percent equity interest.

As operator, ExxonMobil will complete a multi-year drilling program in the block and install new infrastructure technology to increase capacity of existing subsea flow lines.

The project will generate about 1,000 local jobs during the execution phase, and will produce approximately 40,000 additional barrels of oil per day once online.

“This renewed collaboration will enable Angola to optimize recovery and add production from mature fields,” said Hunter Farris, senior vice president of ExxonMobil Upstream Oil & Gas Company.

Partners in the project include ExxonMobil, Sonangol, BP Exploration, ENI Angola, and Equinor Angola.

SOLAR ENERGY POWERS 60% OF DELHI METRO FROM MADHYA PRADESH The Madhya Pradesh Power Management Company Ltd is a leading power generation business in India responsible for distributing electricity from the 1590-acre Ultra Mega Solar Park in Rewa’s Gurh tehsil. The solar farm is among the largest in the world and acts as a money saver, carbon emissions reducer, and job creator.

An innovative scheduling exercise has enabled the solar plant to provide preferential uninterrupted power supply to Delhi Metro first, even on the days without optimum sun availability.

Supported by the World Bank Group, the facility has an installed capacity of 750 megawatt, has been made possible with support from the World Bank and Clean Technology Fund through a US$ 18 million funding as part of a Shared Infrastructure for Solar Parks Project. The project will contribute immensely towards India’s aim of quadrupling its renewable energy capacity to 175 gigawatts (GW) by

2022, including 100 GW of solar power.

The Indian government’s plan to ramp up solar power generation is among the largest in the world and will help bring sustainable, clean, climate-friendly electricity to millions.

“For the first time, the price of solar power has been brought down to less than Rs. 3 per unit with the use of a modern and transparent bidding process,” said Junaid Ahmad, World Bank Country Director in India, adding, “We hope this will further open up a vibrant market for solar investments in India.”

“The World Bank investment in the solar park in Rewa has helped boost market confidence in the Indian solar sector in a major way. The park has managed to catalyse commercial funding, contributing towards India’s ambitious target of installing 100 GW of solar power capacity by 2022,” said Surbhi Goyal, Senior Energy Specialist and World Bank’s Task Team Leader for the project.

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LITGRID

Connecting Baltic States

to European Power Network PRODUCTION: David Napier

Litgrid is at the forefront of efforts to bring Lithuania, Latvia and Estonia together under a strong energy system. The national TSO for Lithuania is also leading the works to connect the Baltic states to the continental European energy network which spans 26 countries and provides security across the network.

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INDUSTRY FOCUS: ELECTRICITY TRANSMISSION

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Lithuania’s population remains under three million, covering an area of more than 25,000 square miles. Surrounded

by Latvia, Belarus, Poland, Kaliningrad and the Baltic Sea, Lithuania is a growing European nation, with developing industrial activity, and a growing need for secure and stable electricity supply. As its activity in the region expands, and its relationships with neighbours develop, the country has changed the way its power is generated and distributed. In 2004, the country shifted from exporter to importer following the closure of the Ignalina Nuclear Power Plant.

Today, Lithuania imports from countries including Norway, Poland and Sweden. Locally, electrical power is sourced from natural gas power plants, hydro power plants, pumped storage schemes, geothermal heating plants and various other renewable sources. Consumption of electricity sits at around 10.5 billion kWh with Lithuania producing just three billion kWh locally.

The organisation responsible for distribution all over the country, from capital-Vilnius in the east to

// WE HIGHLY APPRECIATE SOLIDARITY, PROFESSIONALISM AND CONSTRUCTIVE COOPERATION OF OUR PARTNERS IN EUROPE, POLAND, LATVIA AND ESTONIA IN CREATION OF THE ENERGY FUTURE OF THREE BALTIC STATES IN EUROPE // 10 / www.emea-energy.net

Klaipėda in the west, is Litgrid.

Founded in 2010, Litgrid’s operations include transmission of electricity via high-voltage equipment, control of the power transmission system, development of related infrastructure, and development of the electricity market. The company holds the vision of being Europe’s smartest TSO and transmitting electricity across European markets.

NORDBALT & LITPOL Two major projects undertaken by Litgrid to help secure supply to the Baltic country are NordBalt – a cross border link between Lithuania and Sweden – and LitPol, a similar link with Poland. Commissioned in 2015 and brought to fruition in 2016, these links offered the region better energy security than ever before and contribute greatly to the ongoing power supply for the area. High voltage direct current transmission allows the power flow and electricity distribution to be easily controlled and moved over large distances with minimal or no loss.

Present at the commissioning of LitPol and NordBalt were government officials from Lithuania, Poland, Sweden, Latvia and Estonia.

Lithuanian President Dalia Grybauskaitė said: “We refused to be mere bystanders and we got engaged, so now we are opening a new chapter of successful regional partnership. In addition to historical and cultural bonds, the Baltics Sea region will be linked to continental Europe by power bridges. This is a historic achievement.”

The subsea NordBalt cable reaches 450 kilometres and has a maximum capacity of 700 MW. LitPol, which reaches across 341 kilometres, has a capacity of 500 MW (which can be increased to 1000 MW in phase 2).

Both projects form part of a larger European Union plan to include the Baltic region in the synchronous grid of continental Europe.

// THE AGREEMENT SIGNED IS THE FIRSTHAND EVIDENCE OF PROFESSIONAL CROSS BOARDER CO-OPERATION BASED ON COMMON SOLIDARITY VALUES // Grid development is a big part of Litgrid’s strategy. Each year, the company reassesses its 10year Electricity Transmission Grid Development Plan. The current expectation is that between 2018 and 2027, Litgrid will spend around €766 million on expansion, modernisation and refurbishment projects.

HARMONY LINK A major project that will help to extend Litgrid’s influence, and secure integration with regional partners, is the Harmony Link – a HVDC submarine cable between Poland and Lithuania.

Announced at the end of 2018, the Harmony Link will be built by Litgrid in partnership with Poland’s TSO, PSE. An agreement was signed in December between the two companies to establish the initial partnership.

Daivis Virbickas, Litgrid CEO said of the arrangement: “The agreement signed is the first-hand evidence of professional cross boarder co-operation based on common solidarity values with every effort made to bring to life this technically complex in secure and cost-efficient way by the targeted 2025 date.”

Miguel Arias Cañete, the Commissioner for Climate Action and Energy in the European Union said: “The cross-border energy infrastructure project agreement signed between Polish and Lithuanian partners is yet another clear sign of political and professional

LITGRID

accord of working hand-in-hand to help the three Baltic states gain full control of their electricity networks, operate under common and transparent European rules for the benefit of consumers and energy supply security.”

Eryk Kłossowski PSE’s CEO added to the enthusiasm, stating: “Signing the Initial Cooperation Agreement is a result of several months of extensive works, which allowed to identify and plan the activities in the first part of the project. This work and the Agreement itself will form a solid foundation for the first part and subsequent successful implementation of the Harmony Link.”

At the end of May, further important partnership news came when ENTSO-E (the European Network of Transmission System

Operators) signed an agreement designed to bring the Baltic states of Latvia, Lithuania and Estonia into the European power system. Currently, Lithuania is producing only around 40% of its required electricity, and the situation is the same in Latvia and Estonia, so this deal is vitally important for security of supply in the region.

“We highly appreciate solidarity, professionalism and constructive cooperation of our partners in Europe, Poland, Latvia and Estonia in creation of the energy future of three Baltic States in Europe. We understand the signed document as our commitment to complete the agreed works in timely and cost-effective manner. We are already working in this direction; we have completed many works and are already considered by our

partners from ENTSO-E as trustworthy and professional partners, worth this trust,” said Virbickas.

By 2025, all of the Baltic countries will be a full part of the European energy network and will synchronise with existing infrastructure. The countries will use the same frequency and operate on the same systems as the rest of the continent.

“In a very short time we managed to put the synchronisation project on the rails and the train that will connect the Baltic power systems with the reliable and modern European energy system is gaining speed now,” said Minister of Energy Žygimantas Vaičiūnas.

“Through joint efforts, determined and responsible work, we reached the irreversible stage of the project and from now on

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INDUSTRY FOCUS: ELECTRICITY TRANSMISSION

// WE ARE CAPABLE AND READY TO MEET THE NEEDS OF SOCIETY, BUSINESS AND STATE // all our efforts must be focused on completion of specific technical works, the list of which is already final, by 2025.”

Financing from the EU has seen numerous upgrades to systems across Latvia, Lithuania and Estonia and LitPol and NordBalt have been big contributors to success in Lithuania.

The Continental Europe power system stretches across 26 countries and is one of the largest interconnected

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power systems in the world. The Baltic States power system is currently asynchronously connected to Continental Europe through LitPol, NordBalt and Estlink 1 and 2 between Estonia and Finland.

At the beginning of 2019, electricity generation figures grew in the Baltic states but, despite this increase in supply, prices also increased. Sitting at around €56.50 per MWh, this pricing represented a 5% increase in Lithuania compared to December 2018 – prices in the region were at the highest in eight years.

SPARKY RESULTS In May, Litgrid announced results for the first quarter of 2019 and, with much positivity, suggested that strong financials have laid the foundation for ongoing strategic development.

Daivis Virbickas said: “We are capable and ready to meet the needs of society, business and state.

Sustainable objectives of our activities and CEF funding we received at the beginning of this year gave strong boost to achieve strategic goals.”

Group revenue compared to the same period last year grew by 5.5% to €50.6 million, and net profit amounted to €3.2 million.

Revenue from system services grew by 9 % to €18.1 million.

Electricity transmission revenue increased by 2.3% to €18.5 million compared to Q1 of 2018 and accounted for 36% of the Group’s total revenue. EBITDA in Q1 of 2019 was to €9.5 million. Litgrid investments in the first quarter of 2019 amounted to €4.8 million, of which 56% were earmarked for the implementation of electricity

LITGRID

projects of strategic and high national importance, and 44% for the reconstruction and development of the electricity transmission grid, in line with the company’s grid development plan.

RENEWABLE FUTURE? Going forward, energy generation and the electricity that flows through Litgrid’s system, will likely come from more renewable sources. In June 2018, the government agreed to a plan which will see Lithuania move to 45% total renewable energy by 2030 and 100% by 2050. The National Energy Strategy states that wind energy will be the dominant source of renewable power, as more and more organisations take an interest in the Lithuanian Baltic Sea as a potential area for wind farm development.

Political will is strong; 103 of 104 MPs voted for adoption if the National Energy Strategy. Lithuania also sits alongside Spain, Italy, Portugal and Sweden, promoting an EU-wide 35% renewables target by 2030. In terms of wind energy generation in Lithuania, the targets are clear: By 2022, the estimate would be around 750 MW installed and around 2 TWh produced; by 2025, this would grow to 1000 MW installed and 2.5 TWh produced; and by 2030 this would grow to around 1300 MW installed and 3.8 TWh produced.

Combine wind with solar, and you have a winning mix. Earlier this year, the Lithuanian government announced that it would bring €4.5 million in rebates to encourage the installation of solar panels on residential and commercial rooftops.

The scheme will run until 2023 and will contribute greatly to the ongoing efforts of the state to bring additional PV to the grid.

Lithuania, and Litgrid, are at the forefront of the market when it comes to ambition and forward-thinking. The approach to renewables is refreshing and inspirational. Development of the grid is ongoing, and partnerships with neighbours are perfect examples for others to follow. Litgrid is achieving its mission, and hopefully inspiring others to follow suit.

WWW.LITGRID.EU

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GAZPROM

Natural Gas Expertise Secures Europe’s Supply PRODUCTION: Timothy Reeder

Russia’s Gazprom is the proud holder of the world’s largest natural gas reserves. At present, giving the industry most cause for excitement are Gazprom’s large-scale gas development projects in the Yamal Peninsula and the gigantic Nord Stream 2 pipeline, alongside a number of hydrocarbon exploration and production projects abroad, as it looks to secure an ever-more reliable, efficient and balanced supply of natural gas.

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Gazprom is a global company focused on a plethora of energy exploits, among them geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, not to mention generation and marketing of heat and electric power.

Its peerless reserves mean that Gazprom accounts for 12% of the global and 68% of the national gas output of Russia. The company’s share in the global and Russian gas reserves amounts to 17% and 72% respectively.

Gazprom is Russia’s largest producer and exporter of liquefied natural gas (LNG) and among Russia’s top four oil producers, with its major power-

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generating assets accounting for some 16% of the total installed capacity of the national energy system.

Accordingly, Gazprom owns the world’s largest gas transmission system with a total length of 172,100 kilometres. Gazprom sells more than half of its gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union.

NORD STREAM 2 Nord Stream 2 is a new export gas pipeline running from Russia to Europe across the Baltic Sea, built on the back of the success of its forerunner, Nord Stream. The new pipeline, similar to the existing one already in operation, will

establish a direct link between Gazprom and its European consumers and ensure a highly reliable supply of Russian gas to Europe.

With its entry point in the Leningrad Region of the Baltic Sea and exiting in Germany’s Greifswald area, this direct link becomes particularly important as Europe sees the twin perils of a decline in domestic gas production and an increasing demand for imported gas.

At a meeting in April Alexey Miller, Chairman of the Gazprom Management Committee, and Ruediger von Fritsch, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to the Russian Federation underlined the success of the operating Nord Stream gas pipeline and the great

INDUSTRY FOCUS: NATURAL GAS

importance of the under-construction Nord Stream 2 gas pipeline for the energy security of Europe and Germany in particular.

Germany is the largest importer of Russian gas in the world, and in 2018 Nord Stream AG transported 58.8 billion cubic metres (bcm) of natural gas to consumers in Europe through the Nord Stream pipeline; both an annual increase and the record use since operations began. As of today, around 1,290 kilometres of pipes, which equates to 52.6% of the gas pipeline’s total length, have been laid in the Baltic Sea.

// BY CREATING A BRAND NEW GAS PRODUCTION CENTRE BEYOND THE ARCTIC CIRCLE, RUSSIA HAS PROVEN ITS LEADERSHIP IN THE ARCTIC //

Arctic tundra and Kara Sea

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Austria is another country greatly dependant on Gazprom in securing its gas supply, receiving 12.3 bcm in 2018, an increase of 34.8%, or 3.2 bcm, against 2017. Gas exports to Austria continue to grow as 2019 progresses with increasing speed, as preliminary data shows that supplies went up by 20.5% between January and April compared to the same period of 2018.

Both the existing Nord Stream and the upcoming two additional strings are key factors in securing energy security in Europe: France too is availing more than ever of its supply, its use up by 58% in five years to reach 12.9 bcm in 2018.

It is the shortest connection for European consumers to the immense gas reserves in the north of Russia, and by transporting natural gas, the pipeline system plays a key role in supporting climate protection goals in Europe. It has more wide-reaching implications too, namely increasing security of supply for consumers and strengthening the competitiveness of the European industry.

With the aggregated design capacity of Nord Stream and Nord

Stream 2 standing at a colossal 110 bcm of gas per year it is very much a case of the sooner the better that both pipes are operational; Alexey Miller brought great hope when he was cited as describing that, “work continues at a good pace... and four fifths of the capital expenditures required to build the gas pipeline have now been financed.”

The building of Nord Stream 2 is employing the same reliable technologies proven in the Nord Stream construction project, and the successful experience of Nord Stream AG, which constructed and now operates Nord Stream, provides additional guarantees that the Nord Stream 2 project will comply with the highest environmental standards.

YAMAL SHELF WINDFALL The Yamal Peninsula has been a major part of Gazprom’s plans and successes in recent months, as the natural gas giant continues to tap the shelf’s abundant reserves. Among Yamal’s foremost assets is the Kharasaveyskoye field, second in value only to the Bovanenkovskoye field in Gazprom’s

GAZPROM

Alexey Miller, Chairman of the Gazprom Management Committee

// WORK CONTINUES AT A GOOD PACE AT NORD STREAM 2 AND FOUR FIFTHS OF THE CAPITAL EXPENDITURES REQUIRED HAVE NOW BEEN FINANCED // Yamal gas production centre. In March this year, it was announced that the full-scale development of Kharasaveyskoye was to commence, as Yamal plays an increasingly essential part in the Russian gas industry of the 21st century.

Gas production at the Kharasaveyskoye field is set to start in 2023. The field is unique in terms of its gas reserves that amount to two trillion cubic meters, with the volume of gas production from the Cenomanian-Aptian deposits placed at 32 bcm per year. When this has been exhausted, Gazprom will proceed with developing the deeper-

lying Neocomian-Jurassic deposits.

“With over 16.6 trillion cubic meters of gas in explored and preliminarily estimated reserves, the Yamal Peninsula is a strategic oiland gas-bearing province in Russia,” Gazprom says. “Eventually, Yamal is expected to become one of Russia’s three main gas production centres, with a potential annual output of up to 310–360 billion cubic meters of gas.”

The Yamal Peninsula refuses to stop turning up new and lucrative discoveries for Gazprom. Now two new fields, namely Dinkov and Nyarmeyskoye, are estimated to hold some 500 billion cubic metres of gas.

The Dinkov field is situated within the Rusanovsky licensed block in the Kara Sea and boasts huge recoverable reserves in the С1+С2 categories of 390.7 billion cubic meters.

Nyarmeyskoye is just behind; its is a large field with the recoverable amount of 120.8 billion cubic meters in the С1+С2 categories.

The discoveries were made

by COSL’s Nan Hai Ba Hao semisubmersible drilling rig, Russian news websites have reported.

Overcoming the Yamal Peninsula’s harsh climate and environment, Gazprom has made Yamal its launch pad for efficient, safe and innovative technologies and technical solutions.

This megaproject is unparalleled in terms of complexity, as its hydrocarbon reserves are concentrated in a hard-toreach area with exceedingly difficult climatic conditions.

Gazprom has been employing efficient, safe and innovative technologies and technical solutions in Yamal, many of which have been developed at the company’s request by leading Russian research institutions and companies.

“No other country in the world has ever created anything like this in the Arctic,” states Alexey Miller. “This project has no precedent in the history of the global gas industry. By creating a brand new gas production centre beyond the Arctic Circle, Russia has proven its leadership in the Arctic.”

WWW.GAZPROM.COM

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MASEN

Transforming Morocco’s Energy Mix PRODUCTION: Timothy Reeder

Formerly the Moroccan Solar Agency, the Moroccan Agency for Sustainable Energy (Masen) was founded in 2010 to drive the implementation of Morocco’s ambitious national renewable energy development programme, whose goal is to increase the share of installed electrical power from renewable energy sources to 42% by 2020, and 52% by 2030. www.emea-energy.net / 19

INDUSTRY FOCUS: RENEWABLE

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Morocco’s recent push for increased reliance on renewables has been driven by its current dependence on imported energy to fuel power its plants.

At present, more than 90% of the kingdom’s energy resources are sourced from outside the country, while the territory also faces an absence of easily recoverable hydrocarbons.

This situation has led the country to set itself exacting expansion objectives, as it targets 42% of its total power to come from renewables by 2020, and 52% by 2030. Initially this means an additional 3000 MW of clean electricity generation capacity, and then a further 6000 MW, making this one of the most ambitious clean energy projects in the world.

“Since the world became aware of the urgent need to address climate change, the Kingdom of Morocco has resolutely sought to ensure that its proactive policy on sustainable development and environmental protection is in line with the international community’s global effort,” said His Majesty King Mohammed VI at the UN framework convention on climate change in 2015.

“To this end, it has introduced a series of constitutional, legislative, institutional and regulatory reforms,” he continued. “Therefore, the objective of securing 42% of the country’s energy mix from renewable sources by 2020 has been increased to 52% by 2030.”

MASEN DRIVES PROGRESS In March 2009, His Majesty King Mohammed VI made clear to attendees of the first national energy conference the focus that Morocco would be placing on renewable energy sources from now on.

“Based on our long-term vision, which accounts for trends and developments in the global energy situation that will emerge over the course of the coming decades, we are making energy availability, security of supply and environmental protection our top priorities,” he outlined.

“Therefore, our country must constantly prepare itself for, and adapt to, the various changes that will come, so that we can ensure social and economic development whilst meeting our growing energy needs sustainably. We are focused on the need to diversify our energy sources, to mobilise our renewable resources.”

Masen was formed in 2010, and has since adopted a highly efficient approach to the innovative legal and financial structuring of energy projects, the optimisation of risks and the integrated nature of their development. Initially focussed primarily on solar concerns, since 2016 Masen has also been tasked with overseeing wind power projects, in addition to prospective solar schemes.

Wind projects had previously been under the stewardship of state utility Office National de Electricitie et de l-Eau Potable, but for the last three years the two have been working in tandem to best govern the steering and management of projects that harness renewable energy.

“Our missions are divided into three areas,” Masen says of the way in which it is tackling head-on the task of transforming Morocco’s energy mix. “The integrated development of renewable energy installations at the highest international standards, a contribution to the emergence of a national expertise in the field of renewable energy and the support of the local areas Masen operates in.

// MOROCCO HAS SHOWN TO ALL OTHER COUNTRIES THAT IT’S POSSIBLE, WHATEVER YOUR POSITION IN THE WORLD, TO SUCCEED // 20 / www.emea-energy.net

// MASEN TRANSFORMS NATURAL POWER INTO POWER FOR PROGRESS // “We follow a sustainable model involving economic, human and environmental criteria,” Masen sums up. “As a central player committed to making optimal use of renewable resources, Masen transforms natural power into power for progress.”

NOOR PROJECT Masen has focused its initial Noor solar programme at a site at Ouarzazate in the Southern central area of Morocco. The plant, spanning a terrain the size of San Francisco, is at the heart of Morocco’s renewables drive and is set to convert sunlight into enough clean energy to supply around 6% of the entire country.

This Concentrated Solar Power (CSP) Plant is the largest solar complex of its kind in the world and the first in Morocco, and its 580 MW output is contributing heavily to the country’s 52% renewable energy mix goal by 2030. CSP is not regular solar technology; the Noor complex uses rows of sun-tracking mirrors heliostats - that direct sunlight onto a receiver to heat a specialised cocktail of molten salts and fluids. These then set in motion steam-powered turbines that produce energy.

This liquid concoction gives CSP another advantage: unlike most solar photovoltaic (PV) facilities, CSP provides clean energy around the clock. “What is special about this CSP is what we call the thermal energy storage systems that we can store the energy during the day and keep it until the night,” said Youssef Stitou, a project manager and engineer with Masen. “CSP is like a power plant with huge batteries.”

INDUSTRY FOCUS: RENEWABLE

Masen awarded the contract for its first major solar project, the 160 MW Noor 1 CSP solar plant, to a consortium led by Saudi Arabia’s Acwa Power back in 2012. Morocco then later emerged as one of the region’s most exciting renewables markets in 2015 when it appointed Acwa Power to develop the 200 MW Noor 2 and 150 MW Noor 3 CSP plants, which will have a combined value of about $2 billion.

In May this year, it was revealed that Masen had awarded the contract to add an 800 MW CSP-PV power plant, to an international consortium formed by French energy company EDF. UAE solar developer Masdar and Moroccan independent power producer Green of Africa are the consortium partners.

The Noor Midelt I solar complex will consist of two CSP plants, each with a generation capacity of 190 MW and a minimum of five hours’ thermal storage. The generation

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capacity of the two PV components, assessed at around 210 MW each, will take the overall capacity of the complex to 800 MW. The project is another integral part of the Noor Solar Plan, geared toward creating a minimum 2 GW of capacity by next year. Construction of the Noor Midelt I project is scheduled to begin in the fourth quarter of the year with completion scheduled for 2022.

Noor itself is proving something of a draw for visits in and of itself, as Mustapha Sellam, site director, described. “We will make Noor Ouarzazate not only a site of industrial plants, but also a destination for scientific tourism,” he said. “Morocco has shown to all other countries that it’s possible, whatever your position in the world, to succeed.”

CLEANERGY COLLABORATION At the close of 2018 Morocco’s Minister of Energy, Mining, and Sustainable Development Aziz

Rabbah reported that the country had succeeded in producing 35% of its electricity from renewable energy sources, with an installed capacity of about 3000 MW. With clean production having been ramped up to be fully in line with the stringent targets for 2020, Masen is also now beginning to showcase its expertise in the field of storage of the newlyproduced energy.

To facilitate on-demand distribution of cost competitive and clean electricity is key for fossil-free power generation, and in response Masen has paired with Swedish solar technology company Cleanergy through a new joint development agreement. Masen will add valuable knowledge of the solar market to Cleanergy’s strategy, and grants access to a vast network of established partners and stakeholders in the CSP industry.

Masen’s research and development platform in Ouarzazate,

MASEN

one of the biggest worldwide, will give a platform to test the solutions in optimal solar conditions. “Masen has a strong R&D strategy, which actively evaluates and promotes disruptive and competitive technologies,” commented Mustapha Bakkoury, President of Masen.

“Collaborating with Masen has been very positive for our development and having them onboard means we can now work even closer together,” added Jonas Eklind, CEO of Cleanergy. “With their incomparable experience of renewable energy and solar power we get access to a network of knowledge, resources and prospective customers.”

WINDS OF CHANGE By 2030, solar and wind energy will both account for around 19% of total generation capacity in Morocco, with hydropower providing 14% of total electricity production. Morocco is host to 11 wind farms in operation,

with a total installed capacity of 1200 MW and nearly 1100 MW under construction, which will bring Morocco’s wind power to 2300 MW. The largest wind scheme currently active in Morocco is a 850 MW wind programme being developed by Italy’s Enel Green, and now Masen, in partnership with Futuren, is launching a call for tenders for the repowering project of the Koudia Al Baida wind farm.

The Koudia Al Baida Park wind farm was developed by Compagnie du Vent and commissioned in 2000 by the National Water and Electricity Office (ONEE) with a capacity of 50 MW. It has It has 91 turbines in the Tangier-Tetouan-Al Hoceina region, northwest of Morocco. The extension project, developed by Masen in partnership with Futuren, includes dismantling existing turbines and replacing them with new generation wind turbines and will see capacity increased to 120 MW.

This project is again the result of the close collaboration between Masen and ONEE in the development of the national renewable energy portfolio, in line with Masen’s new objectives. “We are the central player of sustainable energy in Morocco and have the ambition to become the African leader of these energies,” Mustapha Bakkoury summed up.

“It is therefore strategic for Masen to offer a wide range of services at all the stages of a project cycle: pre-development, development, construction, operation and maintenance. That is what this project is all about.”

WWW.MASEN.MA

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Turritella-Buoy © SBM Offshore

SBM OFFSHORE

Offshore Energy

Specialist Booms PRODUCTION: Manelesi Dumasi

A global leader in its trade, SBM Offshore has decades of experience in design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels. With 13 FPSOs operating around the world, and with other contracts underway, now is an exciting and positive time for the business.

//

2019 marks 60 years since the first CALM buoy was manufactured for Shell by Gusto Shipyard in the Netherlands. It was the first Single Point Mooring (SPM) facility that would go on to create a standard in the offshore loading and offloading of hydrocarbons.

The entrepreneurial and engineering expertise that helped to pioneer the first CALM buoy still runs through the business as it is today – SBM Offshore.

Gusto Shipyard was closed in the 1970s and Gusto Engineering was formed in order to keep engineering expertise within the business. In the decade previously, 1969 to be specific,

SBM (Single Buoy Moorings) Inc was founded to meet the growing need for SPM systems from the offshore oil and gas industry.

Gusto Engineering and SBM grew over the following decades, thanks largely to the expertise in SPM systems, and became a global player in the offshore market. Today, the company is a world-leader in the design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels which are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis. A number of world firsts throughout the company’s history has

helped SBM to become recognised as a true innovator and a trusted partner.

Now home to more than 4300 people, with activities in all key energy markets globally, SBM Offshore is a company that always delivers. With 15 active units around the world (13 FPSOs, one MOPU being decommissioned, one semisubmersible), SBM Offshore is the market leading operator in terms of total oil and gas production per day and the number of cumulative years of operating experience, now at almost 320 years.

This success has helped to drive consistent, ongoing positive results for the business.

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INDUSTRY FOCUS: OIL & GAS

// WITH THE OUTLOOK FOR DEMAND INCREASING, THE LEVEL OF OPPORTUNITY AND POTENTIAL THAT WE SEE FOR OUR SOLUTIONS LOOKS PROMISING //

FPSO OSX-2 © SBM Offshore

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STRONG 2018 When the company put out its 2018 results in February, shareholders were generally pleased. Directional revenue increased 2% year-on-year to US$1,703 million, benefiting from an increase in Turnkey activity, reported 2018 Directional EBITDA totalled c. US$1 billion. Underlying 2018 Directional EBITDA at US$784 million was nearly constant year-on-year and in line with Company’s guidance. Underlying 2018 Directional profit attributable to shareholders increased by 41% yearon-year to a total of US$113 million.

In 2018, a fleet uptime of 98% was achieved and management confirmed its continued positive outlook.

CEO Bruno Chabas said: “2018 marked an important turning point for SBM Offshore on several fronts.

We closed out our legacy issues and with growth returning to the market, we are now seeing the results of our efforts to transform our offering and ways of working. Our Fast4WardTM concept is being recognised by our clients. The planned order of a third Fast4WardTM hull reflects our confidence in the market recovery and our business model.

“With the outlook for demand increasing, the level of opportunity and potential that we see for our solutions looks promising. We are stepping up our efforts to leverage our experience to enhance the sustainability of our current products for the oil market, with an ambitious target to lower the level of CO2 emissions per barrel produced.

As the energy transition gains further momentum, we are committed to develop products and services for the gas and renewables markets.

“We are significantly increasing shareholder returns, underpinned by the continued track record of delivery from both business segments, Turnkey and Lease and Operate, as evidenced by the results published today. The combination of the proposed c. 50% increase in the dividend and the EUR175 million share repurchase is currently

Together we create solutions

Your project logistics expert in Brazil & Guyana

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Blue Water Shipping A/S | www.bws.net

INDUSTRY FOCUS: OIL & GAS

equivalent to an 8% return or c. US$1.34 per share for shareholders.”

The Fast4WardTM concept was introduced four years ago and was designed to help bring FPSOs to the market faster and in a more reliable manner. The idea is for constant improvement and all of the learnings gained from the first project have been put in place to improve construction of the second, third and fourth hulls.

It is also a drive for safety, bringing new equipment to the market rather than repurposing or refurbishing old machinery. The idea is all about using standardisations to achieve economies

// WE ARE PROUD THAT EXXONMOBIL AWARDED SBM OFFSHORE THE CONTRACTS FOR THE LIZA UNITY FPSO //

of scale and improve reliability, which in turn, improves value for clients and makes SBM more competitive. To date, SBM has partnered successfully with China’s SWS shipyard on the Fast4WardTM concept.

BUOYANT 2019 Picking up where it left off at the end of 2018, SBM Offshore has started 2019 in typically positive fashion. The success of the Fast4WardTM programme is now being realised and the company is benefitting from strong brand recognition in world markets.

The first quarter results for 2019 showed directional revenues of US$456 million, compared with US$385 million in the first quarter of 2018. Fleet uptime during the first quarter of 2019 was 98.8% and other major programmes continue to run on schedule.

“SBM Offshore’s performance over the first quarter of 2019 has been on target and our guidance for the full year remains unchanged. Our operations continue to demonstrate

FPSO Cidade de Paraty sail away from Brasfels shipyard © SBM Offshore

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strong performance and our projects under construction are progressing as expected and to the satisfaction of our clients. FPSO Liza Destiny entered the final phase of construction and commissioning at the yard in Singapore,” said Chabas.

“As regards new orders, with the award of the second FPSO for the Liza project in Guyana, Liza Unity, SBM Offshore’s Fast4Ward™ philosophy has moved from plan to reality, with the first standard hull now allocated.

Construction of this hull is progressing according to plan, with the major steel structure now in dry-dock. The project will see several standard topsides being adopted from our catalogue.

“Driven by ongoing client capital discipline, the offshore industry upturn remains concentrated on very large, high quality field developments, which benefit most from our Fast4Ward™ concept. As clients mature their conceptual designs, our visibility of future opportunities continues to improve. In anticipation of this upturn,

SBM OFFSHORE

// SBM OFFSHORE’S PERFORMANCE OVER THE FIRST QUARTER OF 2019 HAS BEEN ON TARGET AND OUR GUIDANCE FOR THE FULL YEAR REMAINS UNCHANGED // SBM Offshore ordered the third Fast4Ward™ hull from a second yard.

“The fact that Fast4Ward™ is now very much a reality, combined with our efficient financing model and organization, means that our growth engine, Turnkey, is well positioned to increase cash flow and value,” he added.

FPSO LIZA UNITY One of the key projects in the SBM Offshore portfolio right now is the build, install, and lease of the FPSO

Liza Unity for Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of Exxon Mobil Corporation. The two companies have a longstanding relationship and production is now under way in preparation for the next phase of the project in Guyana.

“We are proud that ExxonMobil awarded SBM Offshore the contracts for the Liza Unity FPSO. The Company is confident that this project will demonstrate the value that our Fast4WardTM program brings to our clients. We look forward to continuing the cooperation with our client ExxonMobil on this second important project in Guyana,” said Chabas.

As part of the Fast4WardTM program, a newly built hull and several topside units are being installed. The result will be a FPSO that can produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO will be spread moored in water depth of about 1600 meters and

Bruno Chabas © SBM Offshore

will be able to store around 2 million barrels of crude oil.

The ongoing saga with oil pricing will obviously remain a concern for SBM. With prices at a low point for the past decade, over supply has been blamed.

Ongoing tensions between the USA and China, the USA and Europe, and the USA and various Middle Eastern and Asian markets have not helped to fuel the sector with stability, but despite this, those companies that are innovative and prepared to navigate difficult times have continued to be successful.

“Our people have unrivalled experience and understanding of the needs of the global offshore energy industry,” the company states, and it is this experience that will continue to boost SBM Offshore now and in the future.

WWW.SBMOFFSHORE.COM

FPSO Cidade de Ilhabela at quayside Brasa yard Niteroi © SBM Offshore

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SIEMENS

Solutions to Meet Rising

Energy Demand PRODUCTION: William Denstone

The renowned global powerhouse of electrification, automation and digitalisation, Siemens is among the world’s largest producers of energy-efficient, resourcesaving technologies. The group’s technical expertise, comprehensive portfolio and vast experience are helping to pioneer a sustainable future across the globe.

//

For more than 170 years, the Siemens name has been intrinsically linked with a global presence at every step along the electrification value chain. Its expertise ranges from power generation, transmission and distribution to smart grid solutions and the efficient application of electrical energy, as well as in the areas of medical imaging and laboratory diagnostics.

Today, Siemens has close to 400,000 employees spread across more than 200 countries and regions, operating in production and manufacturing plants worldwide. In addition, it has office buildings, warehouses, research and development facilities or sales offices in almost every key territory in the world.

Siemens has evolved the way it works to encompass a simplified and leaner company structure. This will pave the way for accelerated growth and stronger profitability, and intertwined with the Vision 2020+ company strategy will give each of

its individual businesses significantly more entrepreneurial freedom, while retaining the strong Siemens brand, in order to sharpen their focus on their respective markets.

The group’s business and strategic companies are supremely widereaching. Smart Infrastructure, for example, intelligently connects energy systems, buildings and industries to adapt and evolve the way we live and work, while Siemens Digital Industries is an innovation and technology leader in industrial automation and digitalisation.

CHRONICLE PARTNERSHIP Mobility, Gamesa Renewable Energy and Siemens Healthineers are more of its key arms, as well as services comprising financial, business and real estate, but dominating the headlines in recent months has been Siemens Gas and Power. It is renowned as the only company in the world that can provide fully-integrated products, solutions and services across the energy

value chain of oil and gas production, power generation and transmission.

With global headquarters in Houston it counts more than 64,000 employees in over 80 countries.

“Siemens Gas and Power is focused on helping customers navigate the world’s most pressing energy problems, both for today and tomorrow,” the group says of the business arm which has to date invested close to $1 billion in research and development and produced more than 814 GW of installed capacity worldwide, enough to serve more than 800 million households.

Siemens Gas and Power (GP) is a global pacesetter in energy, helping customers to meet the evolving demands of today’s industries and societies and in May announced its partnering with Chronicle to provide industrial monitoring and detection for the energy industry. The new integrated platform leverages analytics to centralise and unlock the value of security data, and the partnership will

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INDUSTRY FOCUS: RENEWABLE ENERGY

bring industrial cyber threats into a single view.

The energy sector has become a primary target for cyber attacks, and Siemens seeks to allow its customers to confront the growing cyber threat with protection, detection, and monitoring solutions. This latest manoeuvre to protect the energy industry’s critical infrastructure from increasingly sophisticated and malicious industrial cyber threats was announced at Spotlight on Innovation, Siemens’ flagship U.S. technology and innovation conference.

Through a unified approach that will

leverage Chronicle’s Backstory platform and Siemens’ strength in industrial cyber security, the combined offering gives energy customers unparalleled visibility across information technology (IT) and operational technology (OT) to provide operational insights and confidentially act on threats.

The energy industry has historically been unable to centrally apply analytics to process data streams, cost-effectively store and secure data, and identify malicious threats within OT systems. Small and medium enterprises are particularly vulnerable to security breaches as they

// THE PERMIAN PROJECT IS AN EXCELLENT EXAMPLE OF SIEMENS’ ABILITY TO OFFER ITS CUSTOMERS A COMPLETE INTEGRATED SOLUTION //

frequently do not have the internal expertise to manage and address increasingly sophisticated attacks.

“The innovative partnership between Siemens and Chronicle demonstrates a new frontier in applying the power of security analytics to critical infrastructure that is increasingly dependent on digital technology,” said Leo Simonovich, Vice President and Global Head, Industrial Cyber and Digital Security at Siemens Gas and Power.

“Cyber-attacks targeting energy companies have reached unprecedented speeds, and our cuttingedge managed service unlocks the analytics ecosystem offering a new level of protection from potential operational, business and safety losses.”

Ansh Patnaik, Chief Product Officer at Chronicle said: “Energy infrastructure

Dresser-Rand® DATUM centrifugal compressor is similar to the one that will be used at the gas processing plant in the Delaware Basin.

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SIEMENS

// SIEMENS GAS AND POWER HELPS CUSTOMERS NAVIGATE THE WORLD’S MOST PRESSING ENERGY PROBLEMS, BOTH FOR TODAY AND TOMORROW // is an obvious example of cyber-attacks affecting the physical world and directly impacting people’s lives. Backstory’s security telemetry processing capabilities, combined with Siemens’ deep expertise, gives customers new options for protecting their operations.”

Chronicle’s Backstory, a global security telemetry platform for investigation and threat hunting, will be the backbone of Siemens managed service for industrial cyber monitoring, including in both hybrid and cloud environments. This combined solution enables security across the industry’s operating environment – from energy exploration and extraction to power generation and delivery.

PERMIAN MARKET ENTRY Also in May, Siemens revealed its decision to penetrate the lucrative Permian gas processing market, with an innovative electric-drive centrifugal

compression solution. The Permian Basin is a large sedimentary basin in the southwestern part of the United States and covers more than 86,000 square miles, lending its name to a large oil and natural gas producing area, part of the Mid-Continent Oil Producing Area.

Siemens’ fully integrated electric-drive centrifugal compression configuration will significantly reduce footprint, capital, and operating costs moving forward, with the awarded contract covering the provision of three residue compression trains for two, 250 million (500 million total) standard cubic feet per day (MMSCFD) cryogenic gas plants in the Delaware Basin.

The customer, a key producer in the region and long-term user of reciprocating compression equipment, reached out to Siemens to devise a fully integrated, turnkey solution that includes compressors, motors, variable frequency drives and associated process equipment. The project is also significant as it marks the first collaboration between this major Delaware Basin gas plant customer’s and Siemens.

Mid-size gas treatment plants traditionally use reciprocating compressors driven by electric motors or gas engines. However, with the increase in production from shale plays, larger gas plants are being constructed, forcing gas processing companies to consider alternative compression solutions in order to reduce costs,

footprint, and maintenance.

Traditionally, 10 large reciprocating units would be required to tackle this project. Siemens’ centrifugal compressor solution, however, met the entire plant duty for this project using just three compression units, all while ensuring low turndown capability. The plot space and the ancillary infrastructure such as foundations, piping, wiring, cabling and electrical systems was also heavily reduced, resulting in significant capital cost savings for the customer.

With a DATUM fleet availability of more than 99.7%, the plant will have minimum downtime and will ensure minimal loss of production, bringing value to the customer in meeting contractual production guarantees.

“This project is an excellent example of Siemens’ ability to offer its customers a complete integrated solution,” said Patrice Laporte, Vice President of Oil and Gas for Siemens America. “This customer is one of the largest shale gas players in the Permian Basin and this is their first order with us.

“For them to switch from their traditional approach to our proposed solution lends testament to their confidence in our understanding their needs and having the technical expertise to offer a customised, innovative offering,” Laporte concluded .

WWW.SIEMENS.COM

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Credits - LUTTENBACHER JULIEN - CAPA - TOTAL

TOTAL

On the Road to Becoming

the Responsible Energy Major PRODUCTION: David Napier

Total is investing in activity all over the world – in oil, gas, LNG, renewable, carbon capture, and so much more – to help it achieve its goal of becoming one of the world’s most important and responsible energy organisations. Energy Focus finds out more about what the energy major has been doing in recent months. www.emea-energy.net / 35

INDUSTRY FOCUS: OIL, GAS, RENEWABLE

//

Now is a busy time for global energy giant, Total. The French major-energy-player is active in more that 130 countries, with more than 100,000 employees, and has been in business since 1924. Long-term, the company holds the vision of becoming the responsible energy major, supplying clean, reliable and affordable energy to the largest number of people.

Efforts to achieve this vision are now well under way. Currently, Total is moving forward with a strategy that will see it strengthen its position in various international markets.

Home to some of the world’s major growth markets, and a number of significant developing economies, Africa is often referred to as the last region of the world, primed for development.

Total is already present across a number of African nations and has an extremely healthy reputation.

In exciting growth news, the company announced in May that it would acquire all African assets from

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Occidental, as soon as Occidental completes its acquisition of Anadarko in 2020.

With interests in Algeria, Ghana, Mozambique and South Africa, Anadarko has a strong regional presence which Total is keen to take on board. The company will pay an estimated $8.8 billion to Occidental when the sale is complete.

The assets, which are made up of interest in various offshore exploration blocks, are expected to represent around 1.2 billion boe of 2P reserves, of which 70% is gas, plus two billion boe of long-term natural gas resources in Mozambique.

Patrick Pouyanne, Total Chairman and CEO said: “If completed, the acquisition of Anadarko by Occidental offers us the opportunity to acquire a world class portfolio of assets in Africa, further enhancing our position as the leading IOC on the continent. We have said consistently that our M&A activities will add value by playing

to our strengths and focussing on upgrading our portfolio. This is exactly what we would do here. We would be able to leverage our expertise in LNG by operating a major project in Mozambique and in Deepwater in Ghana, and we would become operator of major Algerian oil assets where we are already a partner. We would also be able to generate value through adding volumes to our growing LNG portfolio where we are already the second largest private player. We have demonstrated the success of this strategy through the recent acquisitions of Maersk Oil. “Total is committed to execute smoothly this transaction, should Occidental be successful in its offer to acquire Anadarko. The proposed transaction is a win/win for Total and Occidental. Total would get access to around over three billion boe of resources and Occidental would be able to strengthen its post completion balance sheet by monetising immediately the international assets of Anadarko.”

TOTAL

Africa remains a key focus market for Total, and Vice President, General Affairs, E&P, Africa, Joao Amaral said of the company’s involvement on the continent: “Total’s trademark is our integration into Africa, and our longtime presence. We have been here for over 90 years, I don’t think many companies can say the same.

“We were able to evolve on the energy markets, being active in oil, in gas in the distribution business, today in renewables. Total, I would say, is a major and long-standing player in Africa.”

JAPANESE RISING SUN Away from Europe, the Middle East and Africa, Total is furthering its renewable credentials in the Far East after the successful launch of its second solar power plant in Japan.

Located in the Iwate Prefecture on Japan’s Honshu Island, the Miyako Solar Plant produces enough energy to power 8000 Japanese homes. Commercial operation began at the start of June

following a two-year construction period. The 25 MW peak solar plant has been welcomed by Total.

“We are proud of the successful start-up of our second solar power plant in Japan. The success of the Miyako project is fully in line with our ambition to develop low-carbon electricity worldwide,” said Julien Pouget, Senior Vice-President Renewables at Total.

Owned in 50-50 partnership with Chubu Electric Power, the Miyako project is made up of 77,000 highefficiency SunPower solar panels which are designed to be resistant to adverse weather conditions, protecting the valuable equipment from snow and frost.

Total also holds a stake in the 27 MW NANAO photovoltaic power plant on Honshu Island. These investments form part of a larger strategy, put in place to bring more low-carbon emission technology (between 15 and 20%) to Total’s mix by 2040.

USA LNG West on the map, Total is boosting its presence in the USA by taking over a portfolio of business, owned by Toshiba, relating to LNG – one of the world’s fastest growing energy sources.

The deal, announced in June, involves Total paying around $800 million to Toshiba. In return, Total will receive a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas and the corresponding gas

// THE TAKEOVER OF TOSHIBA’S LNG PORTFOLIO IS IN LINE WITH TOTAL’S STRATEGY TO BECOME A MAJOR LNG PORTFOLIO PLAYER // www.emea-energy.net / 37

INDUSTRY FOCUS: OIL, GAS, RENEWABLE

// IF COMPLETED, THE ACQUISITION OF ANADARKO BY OCCIDENTAL OFFERS US THE OPPORTUNITY TO ACQUIRE A WORLD CLASS PORTFOLIO OF ASSETS IN AFRICA // transportation agreements on the pipelines feeding the terminal. Train 3 of the Freeport LNG plant is expected to start commercial operations by Q2 2020. Total will also acquire shares in Toshiba America LNG corporation.

“The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player. Adding 2.2 Mtpa of LNG to our existing positions in the US, in particular Cameron LNG, will enable optimisations of the supply and operations of these LNG sources.

Already an integrated player in the US gas market, Total is set to become one of the leading US LNG exporters by 2020 with a seven Mtpa portfolio,” said Philippe Sauquet, President Gas,

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Renewables and Power at Total.

Total is a major player in the global LNG market. Selling 21.8 million tonnes of LNG in 2018, Total commands 10% of the global market. This share is expected to grow with advancements in the US and other markets. Currently, Total holds stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia, Angola and Yemen, highlighting its global influence and reach.

R&D FOR CO2 CAPTURE Proving once more its efforts to become more and more environmentally friendly, Total has partnered with a group of European businesses to embark on the 3D carbon capture technology project. 3D refers to the DMXTM Demonstration in Dunkirk. DMXTM technology has been developed as part of the Horizon 2020, the European Union’s research and innovation program. The project has a €19.3 million budget over four years, including €14.8 million in European Union subsidies. The 3D project is made up of 10 partners from research and industry from six European countries: ArcelorMittal, Axens, Total, ACP, Brevik Engineering, CMI, DTU,

Gassco, RWTH and Uetikon.

Capturing carbon dioxide from industrial activity is now recognised as a must for large scale companies.

With the pilot designed by Axens, around 0.5 metric tons of CO2 could be captured from steelmaking gases at ArcelorMittal’s Dunkirk plant. DMXTM uses a solvent which helps to reduce energy consumption for capture by nearly 35% compared to the reference process. By using chemical solvents to store gases, before filtering them through absorption technology, CO2 is then stored in geological sites. Total is at the heart of making this process more efficient and more affordable.

The expectation is that this technology could become accessible for use in the North Sea by 2035.

“Commercial-scale pilots, such as Dunkirk’s, are vital to make carbon capture, utilisation and storage technologies more competitive, supporting the growth of low-carbon industry. Total aspires to become a major player in Carbon Capture, Utilization and Storage (CCUS) technologies, which are vital to achieving carbon neutrality in the second half of the century, and we are happy to be involved alongside our European partners,” said Marie-Noelle

TOTAL

// MARKETS REMAINED VOLATILE WITH BRENT AVERAGING $63/B IN THE FIRST QUARTER, DOWN 6% FROM LAST YEAR, WHILE NATURAL GAS PRICES WERE DOWN 11% IN EUROPE AND 30% IN ASIA // Semeria, Senior Vice President and Group Chief Technology Officer at Total.

Currently, Total spends 10% of its R&D budget on carbon capture, utilisation and storage technologies.

DRIVING RESULTS All of these investments form part of a wider strategy that is seeing Total grow consistently. Releasing its 2019 first quarter results in April, the company detailed a 4% decline in net income compared to the same period in 2018, but an increase in Debt Adjusted Cash Flow of 15% and an increase in cash flow from operations of 74%.

Importantly, there was a 9% increase

in hydrocarbon production, reaching 2946 kboe/d for the first quarter.

Pouyanne highlighted global economic conditions as key in the headwinds but said his was pleased with overall production statistics.

“Markets remained volatile with Brent averaging $63/b in the first quarter, down 6% from last year, while natural gas prices were down 11% in Europe and 30% in Asia. Adjusted net income was $2.8 billion this quarter, down 4%, and return on equity held steady at 12% this quarter,” he said.

“With strong growth in production that reached 2.95 Mboe/d, up 9% yearon-year, the Group’s cash flow (DACF) increased by more than 15% year-onyear to $6.5 billion (B$), driven by the ramp-up in cash-accretive projects, including Egina in Nigeria, Ichthys in Australia and Kaombo in Angola.

Cash flow after organic investments increased to 3.2 B$, up 18% year-onyear, thanks to strong operational performance and ongoing spending discipline, and the organic predividend cash breakeven was less than $25/b.

“The Group made two exploration discoveries: Brulpadda in South Africa and Glengorm in the UK North Sea. Effective this quarter, the new iGRP

(integrated Gas, Renewables & Power) reporting segment spearheads the Group’s ambition in the integrated gas value chain and low-carbon electricity.

The segment’s operating cash flow before working capital changes increased by 55% year-on-year, thanks to growing LNG production by more than 50% and doubling LNG sales activity by Total. To prepare the segment for profitable growth in the future, the Group finalized its entry into the Arctic LNG 2 project in Russia, signed the gas agreement for the Papua LNG project to enable the launch of the engineering phase, and strengthened its commitment to the Tellurian-led Driftwood LNG project in the United States,” he added.

Should Total continue successfully with all of its M&A activity, and continue to execute on major projects around the globe, there is no reason why this French multinational corporate shouldn’t go on to reach its vision.

Becoming “the responsible energy major” is no easy feat, but if it is possible, Total is the company to do it.

WWW.TOTAL.COM

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JAN DE NUL GROUP

Changing the Shape of Water and Land PRODUCTION: William Denstone

Jan De Nul Group studies and executes complex, multidisciplinary projects to change the shape of water and land. These range from complex offshore services for both fossil and renewable energy sectors, through large dredging and reclamation projects at the edge of water and land to all possible civil and environmental works onshore.

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Vole au vent - Bligh Bank Phase 2 - Nobelwind OWF 2

INDUSTRY FOCUS: RENEWABLE ENERGY

//

“Today, the company has a strong position primarily thanks to its vision and courage, which today gives the Group an impeccable worldwide reputation,” says Jan De Nul Group by way of introduction. Starting out as a contractor of civil works, Jan De Nul and family took on its first dredging work in 1951, and soon after that, the first international dredging project was secured.

“The rest is history,” the group continues. “Over the ensuing years, Jan De Nul Group developed into a world leader in the dredging industry.” This was in large part thanks to having the courage and vision to continue to invest in new equipment, a new dredging fleet, new employees and, perhaps most importantly, new activities.

In 1996, Envisan joined the Group as a subsidiary, having been established in 1992 as a specialist in soil remediation and groundwater redevelopment.

This, when combined with the existing dredging and civil activities, was critical in transforming Jan De Nul Group into a complete all-round company. “In brief,” it resumes, “Jan De Nul Group is a company which is ready for the future.”

// THE VERSATILITY OF OUR FLEET AND OPERATIONAL CAPABILITIES HAVE BEEN INSTRUMENTAL IN THE SUCCESSFULCOMPLETION OF CHALLENGING WORKS // FOURTH VESSEL LAUNCH “A total package, time after time, and in a sustainable way,” is how Jan De Nul describes in brief what is is positioned to offer today, with the latter informing every one of the group’s next steps.

This was perfectly encapsulated with the launch of Jan De Nul Group’s fourth Ultra-Low Emission vessel last month in Singapore, the 6000 m³ Trailing Suction Hopper Dredger Sanderus built at the Keppel Offshore & Marine shipyard.

The green vessel is the first of two identical medium-sized hopper dredgers under construction at Keppel O&M’s shipyard in Singapore, fitted with a two-stage filtering technique for exhaust gases. Three 3500 m³ ULEvs, the first of which was launched in July 2018, recently left Keppel O&M’s shipyard in China on their maiden voyage to their first operation.

Fall Pipe Vessel Simon Stevin at Troll P12 Project Norway

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The design of the new Sanderus combines a shallow draught with high manoeuvrability, perfect for working in confined areas. Power is generated via three diesel generator sets, with an innovative control system automatically starting and stopping the sets depending on power requirements.

Asymmetric load sharing results in optimal load distribution over the diesel generator sets: all these measures are geared toward low fuel oil consumption, which is the best in its class.

Jan De Nul Group addresses environmental challenges by focusing on minimising the impact of its maritime activities on ambient air quality and climate, with air pollution posing one of the biggest dangers to public health. Accordingly, marine construction activities are mostly confined to the vicinity of coastlines,

TOF Basin and Channel Approach Dredging in Chayvo Russia

INDUSTRY FOCUS: RENEWABLE ENERGY

Norfra Pipeline Installation Project France

ports and harbours, and densely populated areas.

As a worldwide leader in marine construction, Jan De Nul Group constantly finds new solutions to underpin its emission control technology. The need to filter the exhaust gases is paramount whatever the fuel or vehicle, and as such Jan De Nul Group designs its latest vessels to run on gasoil but also fits them with a

// WE WANT TO ENSURE THAT, AS WE CONTINUE GROWING AND INVESTING IN TECHNOLOGY AND IN OUR NETWORK, WE DO NOT LOSE SIGHT OF OUR CUSTOMERS AND THEIR NEEDS // 44 / www.emea-energy.net

FPV Joseph Plateau at Gorgon Project - Subsea Rock Installation Australia

highly advanced exhaust gas filtering system, a combination of a Selective Catalytic Reduction (SCR) system and a Diesel Particulate Filter (DPF).

This again represents pioneering emission control technology within the maritime industry, and makes the vessels compliant with the stricter European land and inland waterways emission regulations.

CABLES COMPLETE Jan De Nul Group reported in April the successful completion of the cable installation scope for the Phase II Full Field Development of the NASR offshore oil field. Jan De Nul Group was subcontracted by Hyundai Heavy Industries for the cable loading, transport, laying and protection of three 132kV subsea power cables, with length totalling 147km, and ten 11kV subsea power cables of 57km.

The NASR oil field is located approximately 130km northwest of Abu Dhabi and the project is part of the ADNOC strategic development

programme to increase the field’s capacity to 65,000 barrels per day.

The gargantuan total of 204km of cable was loaded in Norway, and transported and installed at the project site in two separate trips with the Cable Laying Vessel Isaac Newton. The vessel’s unrivalled carrying capacity meant that the longest and heaviest of all thirteen individual cables, at 71km long and almost 6000 tons in weight and placed between Das Island and the NASR field, could be installed in a single length.

The vessel also came into its by accomplishing the accurate installation of these subsea cables between multiple platforms and wellhead towers, all while contending with the congested seabed of the oil field.

The multipurpose vessel Daniel Bernoulli also received extensive plaudits on what was its maiden voyage, showing the versatility for which it was designed by executing the full cable protection scope - including 53km of post-lay trenching - the installation of 671 concrete mattresses and eight

JAN DE NUL GROUP

DP2 Combined Cable Laying-Trenching Vessel - Willem de Vlamingh

kilometres of rock berm installation.

Of the project, Wouter Vermeersch, Manager Offshore Cables at Jan De Nul Group, said: “We are very proud to have been part of the ADNOC Development Project. The versatility of our fleet and operational capabilities have been instrumental in the successful completion of this challenging scope of work.”

FORMOSA MILESTONE The Formosa 1 offshore wind farm is located three kilometres off the coast of Miaoli, in Western Taiwan. Formosa 1 Phase 1 OWF contains two Siemens 4MW demonstration turbines, famed for being the very first offshore turbines installed off Taiwan. Formosa 1 Phase 2, the contract awarded to Jan De Nul Group, comprises the extension of the existing Formosa Phase 1 OWF to add 20 6MW turbines, to its number, increasing the total output by 120MW. Jan De Nul’s scope includes the procurement and installation of the WTG foundations, including scour protection and cables, with construction

slated to be completed later this year. In April, the departure of all 20 foundation monopiles from the EEW SPC yard in Germany, onboard two heavy load transport vessels, represented a key milestone in the work to date.

Both vessels set sail to Taichung port, the marshalling harbour for the OWF project in Taiwan, aboard transport provided by United Wind Logistics.

This move is an important step in the procurement phase of this project, as with these substantial components for the OWF construction now mobilised, installation operations themselves can begin on site very soon.

Aside from the overseas procurement and services, Jan De Nul Group has also overseen various service and subcontract agreements with local entities in Taiwan, and after having appointed Taichung Port as marshalling harbour for the project, the group set up a local supply chain including quarry rock production for the foundation scour design, storage and transport of the foundation structures, installation of transition joint bays and

// JAN DE NUL GROUP IS A COMPANY WHICH IS READY FOR THE FUTURE // land cables installation.

At the time of the launch, Philippe Hutse, Offshore Director at Jan De Nul Group, described its importance both to the project and to the wider group and its philosophy. “Our local integration has been ongoing for years thanks to our various marine activities throughout the past years in the region.

“In the past months, we have signed several agreements with local suppliers for this project in Taiwan.

These engagements fit perfectly in our philosophy of involving the local supply chain as much as possible.”

WWW.JANDENUL.COM

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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 energy industry.

GLOBAL OFFSHORE WIND JUNE 25 - 26 | LONDON Attend the premier offshore wind event in the world’s largest offshore wind market. Experience this exciting sector come to life over two jam-packed days of political keynotes, expert panels, debates, procurement tenders, sector deal updates, disruptive innovation, business partnering, international pavilions, inward delegations and much more.

FUTURE MIDDLE EAST AFRICA OIL & GAS DIGITAL TRANSFORMATION SUMMIT JUNE 24 - 25 | LONDON In the face of a rapidly evolving technological landscape, developing game changing digital solutions, re -evaluating existing operating models, and utilizing data to transform exploration effor ts, have been brought to the forefront of industr y discussion.

As digitalisation expands its reach across the industr y, bringing with it digital drilling and production technology, operational efficiency, data-driven operating models,

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distributed ledger solutions, and revolutionized supply chains, technology is set to provide transformative solutions to current challenges.

The Future Middle East Africa Oil & Gas: Digital Transformation Summit will consider the future of digitalised operations across the region, bringing together operators, investors and government UTILITY WEEK ENERGY SUMMIT JUNE 13 | LONDON Utility Week is an award-winning brand sitting at the heart of the energy and water industries. It was launched in 1994 in response to the growing regulatory and market complexity following utility privatisation. For 25 years, Utility Week has been the UK utility sector’s unrivalled thought leader and source of news and comment on the business of Britain’s electricity, gas and water companies. Utility Week provides authoritative analysis, impartial industry intelligence and insight. It has the trust and respect of utility chiefs, regulators and government.

NUCLEAR CONFERENCE LONDON, ETC.VENUES, BISHOPSGATE JUNE 11 SR ONSHORE WIND CONFERENCE & EXHIBITION GLASGOW, THE STUDIO, HOPE STREET JUNE 11 FUTURE OIL & GAS ROBERT GORDON UNIVERSITY, ABERDEEN JUNE 11-12 UTILITY WEEK ENERGY SUMMIT LONDON, CHURCH HOUSE, WESTMINSTER JUNE 13 FUTURE OF UTILITIES: SMART METERING UPDATE LONDON, HILTON TOWER BRIDGE JUNE 18 GLOBAL OFFSHORE WIND LONDON, EXCEL CENTRE JUNE 25 - 26 FUTURE MIDDLE EAST AFRICA OIL & GAS DIGITAL TRANSFORMATION SUMMIT LONDON, THE CAVENDISH JUNE 24 - 25 INTERNATIONAL CONFERENCE ON POWER AND ENERGY SYSTEMS ENGINEERING LONDON (ICPESE LONDON) LONDON, NOVOTEL HOTEL, WEMBLEY JUNE 27 - 28

Big operation.

Biggest network.

ITC Global brings boundless broadband to even the most complex offshore operations.

A Panasonic Company

With the world’s leading satellite network from Panasonic, ITC Global delivers custom solutions for highly connected remote operations. Our unmatched capacity supports communications for the most extreme offshore projects, at any distance, on any scale. High-performance throughput and global coverage deliver seamless connections to people, places and projects that matter most – for smarter operations in the toughest environments.

For more information, visit itcglobal.com.