Exploration World August 2014

WWW.EXPLORATIONWORLD.COM

AUGUST 2014

MAERSK SHOWCASES THE FUTURE

OF OFFSHORE DRILLING Top 10 CEOs in Oil and Gas TransCanada

to build 1.9B pipeline for kitimat lng project

Transporting the World’s

Largest Offshore Rigs

EDITOR’S COMMENT

All men should strive to build great things.

That means something different to everyone that hears it. To some that may be a tall skyscraper, while to others it could be something smaller that lasts for years to come. Some great things are gone in an instant and some never come to fruition in the first place.

To us at Exploration World, this publication is our chance to build something great. So it’s fitting that while you reflect on what great things you would like to build in your life, we use our first issue to tell you what others are building now.

For this August 2014 edition, we take a look at some of the largest objects ever moved: drilling rigs. First up, we take a look at the new line of ultraharsh environment jack-up rigs being built by Maersk Drilling. Next, we speak to TransCanada about their expansive undertaking with the Merrick Mainline Pipeline Project.

Keeping with our focus on rigs, we look at what goes into moving these massive structures into place. Then we explore the world of remote operated vehicles and take a look at some of the ways this blooming technology is being implemented. Finally, we profile some of the top CEOs in the oil and gas industry.

I hope you enjoy the issue and I hope when you’re done you’ll be one step closer to knowing what it is you want to build.

Enjoy the issue!

Ian Hanner Editor ian.hanner@wdmgroup.com 3

CO CN OTNETN ETNST S FEATURES

30 Pipelines

This month we focus on the customer experience with the latest technology

14 Exploration 6 Drilling

Maersk Showcases the Future of Offshore Drilling

Exploring the Deep Ocean Using Sophisticated Remote Operated Vehicles

TransCanada Signs Contract to Build $1.9b Merrick Mainline Pipeline

22 Logistics

Transporting the World’s Largest Offshore Rigs

38 Top 10

CEOs inNAMCOR Oil and Gas

COMPANY PROFILES

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Decom North Sea

EUROPE

84 AF Decom Offshore

48 Decom North Sea ASSOCIATION

96 Able UK

56 Red7Marine 64 AKD Engineering 74 Mammoet Decom B.V.

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August 2014

AUSTRALIA 106 Petro-King International 120 Energyworks Limited

74 Mammoet Decom B.V.

6

Maersk Showcases the Future of Offshore Drilling

64 AKD Engineering

56 Red7Marine 84

AF Decom Offshore

96

Able UK

5

DRILLING

6

August 2014

MAERSK SHOWCASES

THE FUTURE OF OFFSHORE DRILLING Exploration World takes a look at the new generation of ultra-harsh environment jack-up rigs being built by Maersk Drilling.

W R I T T E N B Y: I A N H A N N E R

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DRILLING

FROM ITS HEADQUARTERS in Copenhagen, Danish company Maersk Drilling is preparing to roll out the next generation of highly advanced jack-up rigs.

Maersk Drilling is a subsidiary of A.P. Moller-Maersk Group, a company that has historically focused on their shipping operations. Their fleet of over 500 container vessels has been used 8

August 2014

to transport a wide range of goods, not the least of which being oil and gas. But it’s Maersk Drilling that might be making the biggest waves in the energy market.

In April, Maersk released the first in a line of new XL Enhanced jack-ups, the Maersk Interpid. The rigs were designed primarily for use in the North Sea, an area which is known for

THE FUTURE OF OFFSHORE DRILLING

9

DRILLING

The Maersk Inspirer is a predecessor to the new XL Enhanced jack-ups. (Pho colder temperatures, high waves and winter storms. Due to the often violent weather, Maersk was faced with the challenge of needing to develop an “ultra-harsh environment” platform that could easily survive the climate while keeping crew members safe. The answer was the new line of jack-ups, with a construction cost for the first four totaling up to about $2.6 billion.

A jack-up rig is an oil vessel that 10

August 2014

stands on legs capable of raising the main body to a desired height over the ocean floor. These adjustable height legs are a perfect defense against inclement weather. Newer models also tend to come with a bevy of enhanced features.

“Before designing the new rigs Maersk Drilling asked customers and crews what it would take to create a genuine next generation,” reads

oto by Maersk Drilling)

“ At 206.8 meters tall, the XL Enhanced jackup rigs are more than four times the height of the Statue of Liberty and possess a lot more comforts”

Maersk Drilling’s website. “The result will be a family of rigs that include more automation and sophisticated technology than ever before— innovations that will boost uptime and improve safety, thanks to a reduced need for manual work on the platform.”

Maersk Drilling was approached for this article but declined to comment directly at this time.

Maersk is constructing the first 11

DRILLING

An artist’s rendering of the new XL Enhanced jack-up rigs. (Photo by Maersk Drilling) three XL Enhanced jack-up rigs at the Keppel FELS shipyard in Singapore, with the fourth being assembled at the Daewoo Shipbuilding and Marine Engineering shipyard in South Korea.

The first rig in the series, the Maersk Intrepid, has already been deliver, with the remaining rigs already secured for contracts with various oil producers.

“With the naming of the Maersk Intrepid, we are opening a new chapter in Maersk Drilling’s Norwegian 12

August 2014

history,” CEO of Maersk Drilling Claus Hemmingsen said following the March naming ceremony. “We have invested in the Maersk Intrepid and its three sister rigs in order to continue to grow and leverage our market leading position in Norway. The Maersk Intrepid is the first of the four rigs being delivered and I am very pleased that it is going to Norway to work for one of our key customers, Total E&P Norge AS.”

THE FUTURE OF OFFSHORE DRILLING

According to Maersk, the vessels are built from over 30,000 tons of highgrade steel that the company imports from Japan and Germany. Due to their size, the rigs have to be constructed in two separate pieces for ease of transportation.

The XL Enhanced jack-ups have a drilling depth of up to 12,000 meters and can operate in water depths up to 150 meters. Along with the adjustable legs, the rigs boast numerous upgraded technologies. Following the company’s goal to make the series more automated and require fewer personnel on the deck, the jack-ups come with a state-of-the-art dual pipe handling system that can simultaneously operate two separate work stations on its own or remotely.

Without the room for human error, Maersk says the system, “…ensures a high level of consistency, as well as improved safety and efficiency.”

The XL Enhanced jack-ups utilize what Maersk calls an “XY cantilever,” meaning that the entire drilling unit moves independently as one solid unit. This means that the position of the rotary table is always toward the center of the cantilever. With this concept come increased drilling

capability, as the drilling envelope that the rig can operate in is increased from the standard 45 by 30 foot range to 70 by 44 feet with a combined drilling load ranging between 685 tons to 1,200 tons.

At 206.8 meters tall, the XL Enhanced jack-up rigs are more than four times the height of the Statue of Liberty and possess a lot more comforts.

When oil exploration companies select rigs to use for drilling operation, they can’t afford to look at the operational efficacy alone; they have to also take into account the accommodations on board for crew members. The men that crew these vessels can remain offshore for months at a time and Maersk says they understand the value of keeping crew members happy and comfortable.

The XL Enhanced jack-up rigs provide living accommodations for up to 150 crew members in single-bed cabins located near the forward leg, allowing for relative quiet from the often loud deck above. With fully operational kitchens, gyms, basic medical facilities, a theater and recreational rooms, the rigs seem to have every amenity necessary for not only working, but living at sea.

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E X P L O R AT I O N

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August 2014

EXPLORING THE DEEP OCEAN USING SOPHISTICATED REMOTE OPERATED VEHICLES It’s a market that isn’t fully realized yet, but it’s growing fast W R I T T E N B Y: I A N H A N N E R

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E X P L O R AT I O N

PacX Wave Glider Fontaine Maru (Photo by Liquid Robotics Oil & Gas) ON APRIL 20, 2010, an explosion on-board BP’s oil rig Deepwater Horizon killed 11 employees and started one of the most disastrous spills in history. The ensuing efforts to cap the well dominated headlines and did not achieve success until July 15, 2010.

All along, commentators were asking why BP was drilling in waters so 16

August 2014

deep that they could not send anyone down to cap the well. Since that time, the industry has learned a great deal and has been investing heavily in a technology that will help prevent and efficiently contain any future disasters: remote-operated vehicles (ROVs).

If there’s any technology that has hit explosive growth in the early part of this decade, it would have to be

EXPLORING THE DEEP OCEAN

drones. The applications of these highly complex yet surprisingly simple machines range from military reconnaissance and coordinated strikes to journalism and even firefighting. Regardless of the industry utilizing these machines, the ultimate selling point is that they can go places and do things that humans can’t do,

and usually at much cheaper prices.

The cost-saving uses of drones are well established. In 2012 the Pentagon detailed a plan to trim the defense budget while still maintaining a vigilant fighting force by decreasing funding for regular infantry, ships and planes while allocating higher funding for elite special forces and above all,

Wave Glider G5 (Photo by Liquid Robotics Oil & Gas)

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E X P L O R AT I O N

Ready to Depart (Photo by Liquid Robotics Oil & Gas) unmanned aerial vehicles. The Obama administration predicted that the budget would save about $487 billion over the following decade.

The reasons for these savings are simple: machines don’t need pay, vacation, medical or dental insurance, breaks or sick time. Most of all, when a machine is destroyed, there isn’t a grieving family to console.

“What robots really bring is the 18

August 2014

ability to do something unmanned, for a really long time, more cheaply,” said General Manager of Liquid Robotics Oil & Gas, Rod Nelson, according to Fortune. “The alternative is to put a ship out there, and that’s a much more expensive proposition.”

Liquid Robotics Oil & Gas (LROG) is only 18 months old. The company is the 50-50 enterprise of companies Liquid Robotics and

“ Machines don’t need pay, vacation, medical or dental insurance, breaks or sick time.

Most of all, when a machine is destroyed, there isn’t a grieving family to console”

Schlumberger. Liquid Robotics was a smaller manufacturer of aquatic robotics that were originally used to record the subsurface sounds of whales in migration. Realizing a greater application for their technology, the company partnered with Schlumberger, a company that describes itself as, “the world’s leading supplier of technology, integrated project management and 19

E X P L O R AT I O N

One of Four PacX Wave Gliders (Photo by Liquid Robotics Oil & Gas) information solutions to customers working in the oil and gas industry worldwide.�

LROG has been doubling their size annually since their inception a year and a half ago and shows no signs of slowing down.

The most successful product offered by LROG is their Wave Glider, which serves as a basic robotic framework on which different designs for different purposes can be created.

The Wave Glider is powered by the tidal shifting of waves and a series of 20

August 2014

solar panels on its topside. It’s about the size of a kayak and can move autonomously or maintain position for weeks at a time. Several Wave Gliders can be deployed in an area at once.

This allows controllers to survey an area far more quickly and cheaply than one crewed vessel.

Fortune reported that nearly all major oil and gas exploration companies involved in offshore drilling have been dabbling in similar robotics technology and that the majority have been getting that tech from LROG.

EXPLORING THE DEEP OCEAN

LROG is not without competitors.

Bluefin Robotics, which is owned by Battelle, is another maker of remoteoperated vehicles for aquatic settings.

The company’s products were utilized during the March 2014 search for downed Flight 370 of Malaysia Airlines.

While the Wave Glider is designed to move on top of the ocean surface, Bluefin makes submersible units able to travel much closer to the ocean floor. This should provide them in some cases a clearer image of the areas surrounding wells. Oil and gas explorers rely on this information to plan safe and effective drilling installations.

Despite several contending companies that are vying for a chunk of an aquatic exploration market that is currently estimated at $300 million (but expected to grow well beyond that in the near future), LROG has been staying ahead of the pack. According to Fortune, the company has had to turn away work from prospective clients because they’re unable to keep up with the demand.

The explosion of ROV technology goes along nicely with a move on behalf of some oil and gas companies to take jobs that have been traditionally performed offshore and

bring them to land. According to the Houston Chronicle, Shell has been moving many controller jobs from its Olympus facility in the Gulf of Mexico to land-based areas of operation and connecting them via fiber optic cable.

This shows a shift from an industry that has historically employed a great deal of individuals for on-theground work to one that takes greater advantage of automation and remote operation.

Back in 2010 when BP and assisting parties were attempting to cap the well that was spilling into the Gulf of Mexico, one of the first methods attempted used ROVs. While the efforts failed at first, it was an ROVassisted method of deploying a sealing cap that finally closed the well.

In the time since, it seems that the technologies’ potential was realized by the industry as a whole. With continued investment, companies like Bluefin or LROG may begin designing the next generation of ROVs that are capable of more easily capping deep-water wells so that we can avoid another disaster like Deepwater Horizon.

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LOGISTICS

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August 2014

TRANSPORTING THE WORLD’S LARGEST OFFSHORE RIGS The largest object ever moved by man was an oil rig. Exploration World looks at the process that makes offshore drilling possible W R I T T E N B Y: I A N H A N N E R

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LOGISTICS

WHEN A COMPANY wants to drill offshore, they rely on massive oil rigs to act as semi-permanent installations on which work can be done, but moving and installing these massive structures can be a challenge all in itself.

Completed in 1995 by Norwegian Contractors AS, the Troll A platform is the tallest and heaviest structure 24

August 2014

ever moved by man from one place to another. The structure took over four year to build and cost about $1.135 billion (adjusted for inflation). With an overall height of 472 meters and weighing in at over 1.2 million tons, the rig was built for Shell and has been used by Statoil since 1996.

The base of the structure sits on the ocean floor 303 meters below the

TRANSPORTING OIL RIGS

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LOGISTICS

Crews prep a rig to be towed into position at a well surface. At that depth, the estimated pressure is about 456 pounds per square inch. To compensate, the legs of the structure are 1 meter thick steel reinforced concrete. The structure has an elevator that takes nine minutes to transport crew members from the top deck to the very bottom of the structure at the sea floor. The base of the structure and the deck were constructed separately and assembled on site after being towed 26

August 2014

200 kilometers over the course of seven days.

When hearing about the size of the Troll A platform, it’s easy to get hung up on the design without paying mind to the massive undertaking that was moving it into place. The task required 10 tugboats, with two of these vessels steering from behind while the other eight pulled. Once on site, the tugboats formed around the platform for support while it was ballasted and

its piles were sent down to the sea floor.

While this may be the largest object ever moved by humans, smaller rigs require a high degree of technical acumen as well. When extracting oil offshore, exploratory wells are first drilled to gather data on the behavior of different deposits. When the well is approved for extraction, the rig is moved into position. Aqualis Offshore is just one consultancy that lends support and technical expertise during

a moving process.

“We have two areas of interest,” Aqualis Offshore CEO David Wells said to Offshore Technology Focus.

“We provide people to be the tow master or rig mover, which is like the pilot on a ship. Alternatively when there is a requirement from the underwriters, particularly on jack-ups, to have a marine warranty surveyor on board, we attend the rig move and carry out the engineering reviews to make sure 27

LOGISTICS

the move is conducted to industry standards and the risk envelopes are within acceptable industry limits.�

The way the rig is moved has to do with what type of rig it is. Whenever a company drills into a well that is deeper than about 600 meters, they typically use a floating rig, which do exactly what the name implies. These rig types tend to be much easier to transport. With dynamic positioning units that keep the vessel aligned over the well, 28

August 2014

there is relatively little that needs to be done in the way of installation and they can be towed by fewer tugboats at a rate of about 5 knots.

When a company drills a well at a depth of less than 600 meters, they tend to use one of numerous types of fixed platforms. The most commonly used platform by a significant margin is a jack-up rig. Jack-up rigs are so named because they sit atop three or four legs that are extended or

TRANSPORTING OIL RIGS

retracted by massive on-deck jacks.

When in position, these legs are extended and driven into the seabed.

Once in place, the platform can be raised or lowered as necessary, in many cases making it ideal for areas with volatile weather since the rig can be hoisted to a safer height.

“I think jack-ups are the most complicated for rig moving [because] there’s quite a large approval process,” Wells said. “Jack-ups stand on the seabed so there is a requirement to make sure the soils are strong enough and the seabed is not disturbed too much to cause problems with the positioning.”

Jack-up rigs are transported with the legs raised above the platform. The platform itself is actually a water-tight vessel, allowing the entire structure to float. In this way, jack-ups are usually moved by several towboats. However, for longer distances these rigs are usually transported on-board a heavy-lift ship and placed in the sea on-site. While it’s unnecessary to move a rig by this method when the distance is lower, transportation by heavy lifting vessels allows for the rig to be moved at a significantly higher speed and reduces strain on the jack-up itself that comes with being towed.

In addition to transporting platforms

from shipyards to wells, rigs need to be mobile for a variety of other reasons, not the least of which being that when a well runs dry, the rigs need to be removed.

Over time, the thick oil that the rigs extract can clog the well or erode the piping that is run down from the production platform, necessitating the rig be moved so that the well can be re-stimulated or the pipes changed. Often new technology is introduced, such as advances that make horizontal drilling possible. These advances also usually mean the platform needs to be moved so that retrofitting can take place.

Though most offshore rigs don’t come close to the size of the Troll A platform, they are becoming larger on average, meaning companies like Aqualis Offshore are becoming more valuable than ever as they stay up-todate with the latest techniques for established and emerging markets.

“In terms of challenges, some emerging markets tend not to be always so regimented and therefore they need to be persuaded that the safest way of doing a rig move is to adopt the international procedures and guidelines,” Wells said. “Our challenge is not to cut corners and to do things properly.”

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PIPELINES

TRANSCANADA

SIGNS CONTRACT TO BUILD $1.9B MERRICK MAINLINE PIPELINE TransCanada speaks to Exploration World about the pipeline that will carry 1.9 billion cubic feet of natural gas a day W R I T T E N B Y: I A N H A N N E R 30

August 2014

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PIPELINES

Monitering the pipeline in a gas control center (photo by TransCanada) IN EARLY JUNE, TransCanada announced that they had signed contract with Chevron Canada Ltd. and Apache Canada Ltd. to develop a $1.9 billion pipeline that will consist of approximately 161 miles of 48 inch diameter pipe. The pipeline is intended to transport 1.9 billion cubic feet of natural gas per day and TransCanada has said they expect it to be a major 32

August 2014

economic advantage for the area.

To get a clearer picture on TransCanada’s vision for the Merrick Mainline Pipeline Project, Exploration World spoke to TransCanada spokesman Davis Sheremata.

Exploration World: In a few sentences, why is this project good for Canada and the natural gas market as a whole? What increases in natural

MERRICK MAINLINE PIPELINE

gas production have necessitated the construction of this pipeline?

Davis Sheremata: Relatively recent advances in drilling technology have dramatically increased British Columbia’s recoverable natural gas reserves. Future production from these reserves will significantly exceed domestic demand.

Current proposed pipelines do not provide sufficient capacity to transport all of the natural gas expected to be required to satisfy export demands.

Transporting B.C. natural gas to export markets supports thousands of jobs in the natural gas sector and provides significant tax revenue for government, which helps to pay for

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PIPELINES

the important social services British Columbians rely upon.

The Merrick Mainline project will transport natural gas sourced through the NGTL System to the inlet of Chevron and Apache’s proposed Pacific Trail Pipeline (PTP) that will terminate at the Kitimat LNG Terminal at Bish Cove near Kitimat, B.C. EW: What process does TransCanada have to go through to get 34

August 2014

the pipeline approved?

DS: To obtain approval to construct and operate the Merrick Mainline, TransCanada must file a Section 52 Application with the National Energy Board (NEB). Within the application, TransCanada is required to provide information on public and Aboriginal consultation, engineering, environmental and socio-economics, economics and lands. We plan to file

the application in Q4 of 2014.

EW: What sort of resistance, if any, has the company experienced with getting this project off the ground?

DS: Feedback from communities about the Merrick Mainline Project has been positive and communities are supportive of the project.

Throughout the regulatory process, we’ve been working with communities to address questions and concerns

and will continue to do so moving forward. We’ve also been working closely with communities to refine our route. Pending regulatory approvals, we plan to begin temporary infrastructure construction in the first few months of 2016.

EW: How did TransCanada determine the path the pipeline would run along?

DS: After extensive investigation, we 35

PIPELINES

are nearing the final stages of planning the pipeline route. In determining the route, we consider a number of factors including safety, constructability, environmental sensitivities, land use compatibility, economics, vegetation, archeological and historical sites, as well as stakeholder and Aboriginal community input. To minimize the project’s footprint, we work to establish a pipeline route that follows 36

August 2014

existing right-of-ways and already established corridors.

EW: When should construction be completed?

DS: Construction is expected to be completed and the pipeline will be in-service in the first quarter of 2020.

EW: What sort of jobs does TransCanada anticipate the pipeline will create in the short-term?

Long-term?

MERRICK MAINLINE PIPELINE

DS: Transporting B.C. natural gas to export markets supports thousands of jobs in the natural gas sector and provides significant tax revenue for government. We don’t have specific job total numbers at this time.

EW: What’s the biggest challenge associated with the project?

DS: We want to ensure that we minimize the impact on the environment and communities.

Through our environmental assessment process, we evaluate the potential for our projects to interact with other projects in the region and have regional effects, so we can develop measures to reduce potential adverse effects. We will work collaboratively with communities to address their concerns regarding cumulative effects to appropriate government agencies and regulators.

EW: How does the company weigh the environmental impact of the pipeline?

DS: TransCanada has had an industry leading safety record and we do a number of things to protect the environment. Enhancements to integrity technologies and processes [such as] high-resolution inspection tools, integrity plans and threat

management plans have resulted in a significant reduction in incident frequency rate. We have spent $50 million in the last five years on researching and developing pipeline safety related technologies.

Pipelines continue to be the safest method of transporting the huge volumes of natural gas that must be moved throughout Canada and the U.S. every day. Safety of the public, employees and the environment is a top priority at TransCanada and TransCanada’s pipeline integrity programs have been designed to meet these goals and to meet or exceed industry and government standards.

Our Gas Control Centers provide 24/7 monitoring of TransCanada’s pipeline systems. From the Centers we can remotely control facilities and gather real time data such as system pressures, flows, alarms and temperatures. The system also provides information on abnormal operating conditions such as a valve out of position or a system surge.

In this way, we are able to ensure facilities are operating properly. If an incident were to occur, TransCanada acts quickly to isolate and remove the affected pipe from service.

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TOP 10

TOP10 CEOs in Oil and gas

Exploration World gives you a run down of the key movers and shakers in the oil and gas sector Written by: Deana Caucus 39

TOP 10

The oil and gas industry is one that has gone through periods of massive expansion over time. The companies that are involved in the exploration and production of crude oil and natural gas products are some of the largest companies on the planet in terms of revenue, global presence, and in some cases, number of employees.

So it’s no surprise that the people who govern these organizations are some of the most revered leaders in the business world. To be a CEO of a major oil and gas producer requires a clear head and someone who can quickly and accurately analyze as much information as they can to make the best operational decisions for the company, the shareholders and the people of the world.

These are the top 10 CEOs in oil and gas production companies.

10

Nizar Mohammed al-Adsani, Kuwait Petroleum Corporation

40 August 2014

Nizar Mohammed al-Adsani replaced Farouk al-Zanki as CEO of the Kuwait Petroleum Corp. in 2013 after Kuwait paid $2.2 billion to Dow Chemical Company over a cancelled plastics venture. Amid the restructuring, the company also suspended top officials and appointed six new board members. Al-Adsani holds a position on the Kuwaiti oil regulatory group the Supreme Petroleum Council. The company is in development on the Nghi Son Vietnam Refinery and Petrochemical Complex and the New Refinery Project, two facilities that should help them meet their goal of 4.1 million barrel per day by 2020.

09

John Watson, Chevron

John Watson joined the Chevron Corporation in 1980 as a financial analyst. In the coming decades, Watson worked his way up through a variety of management roles in a wide range of projects, including the merger with Texaco in 2000. From 2001 to 2005

TOP 10 CEOS IN OIL AND GAS

Council, the American Society of Corporate Executives and the University of California Davis Chancellor’s Board of Advisors.”

According to Forbes, Watson pulled in about $24 million in personal income in 2013.

Watson occupied the role of chief financial officer before taking over as president of Chevron International Exploration and Production Company at the end of that term.

In 2009 Watson assumed the role of vice chairman of the board, a role that he only held for one year before being appointed chief executive officer and chairman of the board.

According to Watson’s executive bio on Chevron’s website, “Watson serves on the board of directors and the executive committee of the American Petroleum Institute.

He is a member of the National Petroleum Council, The Business Council, the Business Roundtable, the J.P. Morgan International

08

Emilio Lozoya Austin, Pemex

Emilio Lozoya Austin holds a degree in Economics from the National Autonomous Univserity of Mexico and a degree in Law from the Mexico Autonomous Institute of Technology. Prior to joining Pemex in 2012, Austin held a variety of managerial positions at

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TOP 10

firms throughout Mexico, including the Bank of Mexico. From 2006 to 2010, Austin served as the chief director for Latin America at the World Economic Forum.

According to Austin’s executive bio, “he founded and led several investment funds specializing in private equity investments globally in various industries, including restructuring and international transactions.” In 2012, Austin was tapped to help with the campaign staff and transitional government of Mexican President Enrique Nieto.

European Union removing tariff and other trade barriers on most goods. Its main industries are oil, phosphates, agri-food products, car parts manufacturing and tourism.

07

Ben van Beurden, Royal Dutch Shell

Van Beurden became the chief executive officer of Royal Dutch Shell this year after serving the company since 1983. Van Beurden 42 August 2014

holds a Master’s Degree in Chemical Engineering from Delft University of Technology. A Dutch citizen, Van Beurden has worked for the company in The Netherlands, Africa, Malaysia, the United States and the United Kingdom. At Shell, van Beurden has been involved in the production and refinement sides of the business. Prior to assuming his current role, van Beurden was the downstream director.

Reuters reported in March that van Beurden’s base salary excluding any performance bonuses is about $1.95 million.

TOP 10 CEOS IN OIL AND GAS

05

Zhou Jiping, PetroChina

At 61, Jiping has spent more than two-thirds of his life working Bob Dudley, BP in China’s petrochemical industry.

Jiping is the chairman of the board Bob Dudley assumed the of directors and chief executive role of BP’s chief executive officer officer of PetroChina, as well as in 2010, replacing his predecessor the chairman of China National Tony Hayward who resigned Petroleum Corporation. He served following the Deepwater Horizon as both chairman and president of disaster in the Gulf of Mexico. Prior to PetroChina for an interim period joining the company, Dudley worked between April and July of 2013. for Amoco Corporation from 1979 PetroChina is currently the most through its merger with BP in 1998. profitable company in Asia and the According to Dudley’s executive largest oil and gas producer and bio, “Between 1999 and 2000, distributor in China. The company he was executive assistant to the has an average daily crude group chief executive, subsequently production of 4.4 million barrels becoming group vice president for per day.

BP’s renewables and alternative energy activities. In 2002, he www.website address.com became group vice president responsible for BP’s upstream businesses in Russia, the Caspian region, Angola, Algeria and Egypt.”

Forbes estimates Dudley took home about $13.18 million in 2013 and that as of 2014 he owns 728,067 shares of BP stock.

06

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TOP 10 CEOS IN OIL AND GAS

03 04

Rex Tillerson, ExxonMobil

Roknoddin Javadi, National Iranian Oil Co.

Roknoddin Javadi was appointed as managing director of National Iranian Oil Co. (NIOC) in 2013, replacing Ahmad Qalebani. Javadi formerly served as principal member and chairman of the board of Pars Oil and Gas Company (POGC), a subsidiary of NIOC.

Rex Tillerson joined ExxonMobil, the world’s largest publicly traded international oil and gas company, in 1975 as a production engineer. Tillerson assumed the role of general manager for the U.S. central production division in 1989. He was appointed senior vice president in 2001 and in 2004 he moved up to president and gained a seat on the board of directors. Tillerson has served as CEO since 2006.

Tillerson occupied number 16 on the 2013 Forbes list of the world’s most powerful people.

At 62-years-old, Tillerson had an income of $40.3 million last year.

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TOP 10

02

Alexey Miller, Gazprom

Alexey Miller was born in Leningrad during the height of Soviet power. Miller holds a PhD in Economics from Voznesensky Leningrad Finance and Economics Institute. Following his schooling, Miller became an engineereconomist at the Leningrad city level. In 1990, Miller became the

head of economic reform on the Executive Committee of the Leningrad City Council.

He continued a career in the public sector through 2000 when he assumed the role of the Russian deputy energy minister. Since 2001, Miller has been the deputy chairman of the Gazprom board of directors and the chairman of the management committee.

Alexey Miller, Gazprom 46 August 2014

Khalid A. Al-Falih, Saudi Aramco

01

Khalid A. Al-Falih, Saudi Aramco

Saudi Aramco, led

by Khalid A. Al-Falih, presides over the largest proved reserve of crude oil in the world as a “fully integrated global petroleum and chemicals enterprise.� Al-Falih earned a B.S. in mechanical engineering from Texas A&M University in 1982 and

later earned an MBA at the King Fahd University of Petroleum and Minerals. He has worked at Saudi Aramco for over three decades.

He served as the executive vice president of operations from 2007 to 2008 before assuming the role of president and chief executive officer on Jan. 1, 2009.

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Decom North Sea is driving efficiency Written by: Joel Levy & Produced by: James Pepper

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DECOM NORTH SEA

D Decom North Sea helps coordinating the industries expertise to meet future challanges

£40 billion The cost of decommissioning the UK’s ageing oil and gas infrastructure

ecom North Sea is providing expertise to meet the £40 billion challenge of decommissioning ageing oil and gas infrastructure whose lifespan has been extended 20 years beyond expectation.

Technological advances and sector innovations see many facilities still operating after 40 years, but with the recognition that this cannot be maintained indefinitely, Decom North Sea is primed to support operators and supply chain companies in complex and costly decommissioning projects scheduled for the next 30 years.

“The industry’s success in increasing the life of assets is to its credit,” said Chief Executive Officer Brian Nixon, “but in 2008-2009 there was a recognition by the UK and Scottish government agencies through their dialogue with the operators that there was a significant amount of decommissioning ramping up that could not be pushed back any further.”

Action was needed for the industry to support operators and deliver decommissioning as cost-effectively as possible. After a yearlong consultation, Decom North Sea was the agencies’ principle recommendation.

Enhancing knowledge Decom North Sea organises a range of events where its members share strategies and identify challenges, collectively broadening the knowledge base.

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Contractors, service specialists and consultants engage in positive dialogue, hear first-hand from operators and offer insight into how decommissioning planning and execution can be improved.

Learning programmes around the North Sea to the Netherlands, Norway and Denmark identify market opportunities and foster joint venture and collaborative relationships with a view to enhancing capability internationally and taking an approach embracing the talents of European partners, and indeed introducing Decom North Sea’s own methods to these regions.

Nixon said: “We are really a European organisation. We have Norwegian, Dutch, Danish and French members, and have always taken this holistic approach of thinking of the North Sea as a single market.

“We believe the experience in Norway and the Netherlands is something we can learn from.

“Similarly we think the development work and joint industry projects we have been leading over the last few years resulting in models, templates and guidelines can be transferred for effective and efficient use in other areas of the North Sea.” Further events include nationwide and international Lunch & Learns, educating operators new to the supply chain in strategies to help them plan and execute their early decommissioning projects effectively.

Decom North Sea also distributes newsletters, and holds a useful capability matrix on its

Key Personnel

Brian Nixon Chief Executive Office

“We are really a European organisation. We have Norwegian, Dutch, Danish and French members, and have always taken this holistic approach of thinking of the North Sea as a single market” – Brian Nixon, CEO

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Murchison Field

P I C T UR E C OURT ESY OF C N R I

DECOM NORTH SEA website, allowing major contractors and operators to source the necessary consultants, specialists and technology developers.

The association additionally holds biannual conferences. October’s is run as a joint venture with Oil and Gas UK, while the May event serves as Decom North Sea’s standalone flagship.

The 2014 May conference will focus on identifying the many business opportunities for multiple types of company to arise from the ongoing decommissioning.

Nixon described “the cascade effect,” of the numerous openings filtering down from the awarding of the larger contracts to engineering contractors, encompassing the dismantling of processing facilities, supporting structures, subsea equipment and the plugging and abandoning of wells through to onshore disposal, among other priorities.

From these major contracts arise many smaller subcontracts, including equipment provision, technology, consultancy support and myriad procurement and supply chain processes, and the conference intends to

P I CTUR E CO URTES Y O F SH ELL

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Delta isometric

‘The association additionally holds biannual conferences. October’s is run as a joint venture with Oil and Gas UK, while the May event serves as Decom North Sea’s standalone flagship’ w w w. d e c o m n o r t h s e a . c o m

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DECOM NORTH SEA

NCA Wellhead Corral

230 The number specialist companies who are members of the association

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provide a platform to act upon them.

Nixon said: “We aim to help the many scores of companies that have these business opportunities identify what it is, when it is likely to occur and who their customers are likely to be. Then a major focus is facilitating one-to-one introductions between suppliers and buyers.”

Skills focus Decom North Sea recently held the second round of its successful training courses, led by three experts collectively boasting more than 100 years’ experience, which provides an invaluable

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overview of the entire decommissioning lifecycle for industry newcomers and an opportunity for constructive dialogue.

Decom is monitoring market demand for these courses and will respond in terms of both frequency, location and content if there is call for a more in-depth analysis of any particular decommissioning process.

While technological breakthroughs like lasercutting and the under-construction superheavy-lifting vessel will be of benefit, Nixon believes developing existing technologies while enhancing skills is what will really drive efficiency.

“It’s not all about technology, but innovative approaches to certain tasks and phases and enhancing the skills of the people who will use the equipment required,” he said.

“We have mapped out the supply chain over the 10 phases of a decommissioning project and understand what is required in terms of facilities, technologies and services in each of those phases.”

Decom North Sea’s range of projects, educational and knowledge-sharing opportunities are going a long way to increasing efficiency as the awarding of the decommissioning contracts begins, and will reduce cost not only to operators, but the taxpayers who shoulder between 50 and 75 percent of the £40 billion burden.

With the association’s solid strategy, the sector looks set for substantial savings in 2014 and beyond.

Company Information INDUSTRY

Decommissioning HEADQUARTERS

Aberdeen, Scotland FOUNDED

2009 EM PLOY EES

230 REVENUE

Xxxxxxx PRODUCTS/ SERVICES

To promote collaboration and the sharing of knowledge and learning

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RED7MARINE Limited:

projecting well after cash boost Driven by opportunity in a changing market, this marine specialist is involved in important projects across the country and is looking to continue its ongoing innovation and acquisition of assets Written by: Thomas Johnson Produced by: James Pepper

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Key Personnel

Nick Offord Managing Director

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A

UK-based provider of offshore oil and gas plant and equipment, diving services and marine project work, Red7Marine is set to expand having recently secured over £30 million of new development funding from Perwyn, a private equity firm and Red7Marine’s new banking partners.

The investment will be spent on acquiring new assets to support the ambitious expansion plans in Red7Marine’s Offshore, Coastal and Inland operations.

This includes the recent arrival of a US $12 million second offshore supply vessel, Red7 Tonjer, increasing the company’s capability for project work and further reducing the need to charter vessels.

Nick Offord, Managing Director of the East of

England-based company, said: “It increases our company profile and credibility in the market.

“It also gives us control. People don’t like firms bidding for work without the backup of being able to put in their own vessels.

“If we say we will commit to something we will commit to it and owning key assets reduces our reliance on brokers for finding us vessels and jack-ups.”

Power projects Red7Marine, which has offices and depots in Great Yarmouth, Ipswich, Aberdeen, Exeter, Colchester and Wrabness, is involved in construction projects across the entire UK, Europe and as far afield as the Falklands.

Projects include some of the biggest in the

“We are innovators; that is who we are, we are opportunitydriven innovators in the market” – Nick Offord, Managing Director

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RED7MARINE LIMITED

Installation of a meteorological mast

world and it is looking to further its presence in the now lucrative wind farm market.

One of its specialties is in jack-up barges and it is currently working for BAM Nuttall Ltd on the Liverpool 2 Project to double container capacity at the Port of Liverpool.

Also, for the past 18 months Red7Marine has had a jack-up barge at the River Forth in Scotland, where Europe’s biggest current construction project is underway to build a new bridge across the river.

Additionally, the company is currently helping develop an exciting tidal energy project in Swansea, Wales. If successful,

Maritime leaders in the offshore industr y

Vessel management

Crew management

Consultancy

Offshore renewables

www.adpsltd.com

www.adpsltd.com

+44 (0) 1752 226797

ADPS Ltd, Mayflower House, Armada Way, Plymouth, Devon, PL1 1LD, UK

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the Swansea Barrage will be the first in the UK to harness the power of tidal energy.

Offord, who formed the company by merging his firm, Haven Ports Limited with Mike Jones’s Anglian Marine Services in 2008, said the £756 million tidal lagoon could provide power for 120,000 homes for 120 years.

He said: “It is creating quite a lot of excitement. This resource can be harnessed in a way that makes economic, environmental and social sense.”

The company worked with international engineering and construction group Costain on the feasibility side, with a view to creating a budget construction plan.

Offord’s firm carried out site investigation for the project with one of its 250-tonne jack-up barges back in mid-summer 2013.

It drilled boreholes so that a design could be carried out by WS Atkins Plc for a budget construction plan worked out by Costain.

Rapid rise and steady growth The company’s current turnover is roughly £45-50 million and it employs 120 workers, not including temporary contract staff on various projects.

“We want to show steady growth over the next few years, certainly in both the construction, wind farm and oil and gas markets,” said Offord.

“Our new investment partner has an oil and gas background, so we are looking to do more in the oil and gas market with its assistance and the

Aerial view of rig maintenance work

“Isequidu citistes nis et rem doluptatem velit mi, utem doluptin nimil es et et audit alit estibus et dellaborum” – Name, Position

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Red7Marine’s Haven Supporter

Red7Marine’s equipment rig

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investment capital it has put into the company.”

Red7Marine’s initial turnover in 2008 of £6.5 million accelerated rapidly thanks to increasing demand from the offshore renewables market and an early contract with Fortune 500 Company Fluor.

It now has eight jack-up barges in the market. When the two companies got together they bought their first as a joint venture.

Offord said that the success of that jack-up barge has cemented the two companies together to form Red7Marine Group and the fleet of eight jack-up barges, several flat top barges, tugs and workboats enjoys good utilisation in the market.

Red7Marine has just been named by The London Stock Exchange as one of the top ‘1,000 companies to inspire Britain’ (www.lseg.com/

RED7MARINE LIMITED

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resources/1000-companies-inspire-britain).

Innovative opportunists In this respect the company is opportunity driven, said Offord, but is also an innovator.

Taska marine is the joint venture company between Red7 and Challis & Sons Ltd., which is currently building its third boat at Ipswich, a four-ton bollard pull tug that combines maneuverability and power in the water with the added benefit of being road transportable.

Another example of a development is an underwater excavation and jetting tool called SeaVex. This tool can be used for many different operations including the non-contact burial and de-burial of cables and pipelines on the sea bed and carrying out dredging work around structures. It is a mass flow pump, designed in Red7’s Aberdeen office and manufactured in Great Yarmouth.

Offord said: “We are innovators; that is who we are, we are opportunitydriven innovators in the market.

“We build our own workboats and have introduced those to the market where we prefer to charter them but we have also had a number of purchase enquiries from as far afield as Uruguay and Russia.

“So again that shows our level of innovation, the fact that we can build and operate our own tugs, there are not many companies in the UK that do that.”

Company Information INDUSTRY

Marine services HEADQUARTERS

Group head office is at Wrabness, Manningtree, Essex FOUNDED

2008 EM PLOY EES

120 REVENUE

£45-£50 million PRODUCTS/ SERVICES

Offshore oil & gas products & services, marine renewables, maritime inland subsea engineering and marine civil engineering services

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AKD invests as decomm provides the platform for

With a global presence and key partners in place, the UK-b company is taking a proactive approach to offshore develo Written by: Matthew Staff and Produced by: James Pepper

missioning or expansion

based oil and gas opment

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AKD ENGINEERING LIMITED

AKD Decom Inde-Juliet

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AKD FFS Loadout

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KD Engineering has built a comprehensive and reputable portfolio in the Europe industry over the past 50-plus years and remains committed to progression as it looks to capitalise on the global rise in decommissioning operations.

Based in Lowestoft adjacent to the North Sea in the UK, the company’s subsea offerings across oil & gas, machining and design has made it a prime candidate for partnerships with some of the world’s leading organisations over the years.

Having completed many of the original projects on platforms in the area to begin with as well as producing many of each construct’s components, it is perfectly positioned to engineer solutions at the end of the life cycle as well.

“In regards to the decommissioning sector,

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our strategy is to continue along the route we’re on for the southern North Sea projects and they’re the platforms we’re looking at primarily at the moment,” said Sales and Marketing Manager, Denise Farr. “This strategy will then naturally progress into the north and central North Sea with a lot more focus on the deeper water platforms too.

“There’s going to be a lot more heavy engineering and a lot more decommissioning over the next few years.”

Prosperous partnerships AKD’s confidence in making an impact in these developing sectors stems from a record which speaks for itself in terms of partners and projects.

This includes one of its flagship contracts

“We know where the market is developing and we look at that in depth. In our case, we did some decommissioning with a Norwegian partner over a twoyear period and it worked really well so it seems natural to move into that region full time” – Martin Jolley, MD

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AKD ENGINEERING LIMITED in a joint venture with AF Decom for Shell in the Indefatigable Field which, over a two-year period, consisted of collaborative concept and deconstruction, and concluded with the removal and safe waste disposal once back on dry land.

“We were able to carry out the full operation from start to finish and realised this was a potential business stream for AKD,” explained Managing Director, Martin Jolley. “A lot of the Indefatigable Field which we’ve taken out, we actually put in originally and we still have that relationship with Shell today.”

AKD was the first in the UK to decommission platforms on a full-time basis with its own tailor-made department, utilising its extensive skill sets already in place from its traditional offshore background.

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AKD Shell Bridge

Operations and head office located in Lowestoft, United Kingdom w w w. a k d - e n g i n e e r i n g . c o . u k

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AKD ENGINEERING LIMITED

AKD FFS Loadout

As well as the likes of Shell and BP, this has in turn led to collaborations with global oil and gas heavyweights including Technip on a Nigerian project, BP and Perenco to name but a few.

Jolley continued: “It’s been part of the growth strategy of the business to form these partnerships and expand, and our next push will be into Norway over the coming years.

“We know where the market is developing and we look at that in depth. In our case, we did some decommissioning with a Norwegian partner over a two-year period and it worked really well so it seems natural to move into this region full time.”

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Reducing risks Offshore projects can often be drawn out over a number of years across the entire process, and this is again where AKD comes into its own, with the ability to carry out indepth studies long before any engineering or deconstruction takes place.

“We do the study, we send technicians offshore, we do laser surveys, and then form 3D models of the platform to produce a Cost Time Resource (CTR) model to give the owner of that field or platform an idea of what that true cost will be,” Jolley explained.

This facet stems directly from an ‘all under one roof’ element within the business and the subsequent ability to form solutions and project management teams quickly and effectively.

Incorporating not only management and engineers but also a specific design component to the organisation, this advantage ensures that the company can remain as innovative and adaptable as possible.

“It gives the client a feeling of comfort with the risk factor not so high,” Farr added. “It also makes AKD very strong on a commercial level too, with everything managed in-house.

“We’re not having to subcontract a lot of the work out and the client can therefore place a purchase order knowing their project will be entirely managed for them here at AKD.” The entrepreneurial flair and subsequent innovation has recently led to a health and

“We’re not having to subcontract a lot of the work out and the client can therefore place a purchase order knowing their project will be entirely managed for them here at AKD” – Denise Farr, Marketing and Sales Director, AKD Engineering Ltd

Subsea Protection Structures (FMC)

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AKD ENGINEERING LIMITED safety-addressing walk-to-work bridge being patented and set to enter the market next year; an idea attributed to the young and fresh impetus coming from within the workforce.

Around 10 percent of the business comprises of apprentices with local affiliations to schools and colleges ensuring the next generation of engineers look towards AKD as an employer of choice and that the eco-system of skills continues to develop within the business.

Proactive investment As well as investments into its people, the Artist’s impression of Bridge

Leman Bridge (AMEC)

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company has historically remained equally dedicated to the improvement of its machinery and facilities.

This has led to a recent £2 million injection into new five-axis machines in its workshops, but its key development over the past year saw the acquisition of a new dockside facility in Lowestoft to complement its decommissioning ambitions.

“There are some projects bubbling offshore with companies such as ConocoPhillips and Perenco but they may not come off for a few years so we’re already preparing our strategy by securing this land now,” Farr explained.

The acquisition has entailed further investments into the buildings and staff featuring on the site and is indicative of the overall AKD philosophy, which will inevitably translate to its decommissioning aspirations on a global scale over the next three to four years.

“In the future, I expect to see further investment in the group,” Jolley concluded.

“We are part of the Camelia Group which is a worldwide PLC and one of their targets with any operating company under their umbrella is to see investment and capital into equipment, people and procedures which go along with that.

“We are very people-orientated and proactive, and this belief in longevity and not stripping your assets will work hand-in-hand with the new blood we bring in to keep coming up with fabulous ideas and keep fresh eyes on the industry.”

Company Information INDUSTRY

Energy HEADQUARTERS

Lowestoft, UK FOUNDED

1955 EMPLOYEES

150 REVENUE

£14 million PRODUCTS/ SERVICES

Oil and gas, machining, decommissioning, design, engineering, manufacture

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Mammoet makes the difference with decommissioning division With an established onshore reputation to work from, the Dutch organisation’s push into the decommissioning sector is set to enhance its already notable global presence Written by: Matthew Staff and Produced by: James Pepper

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M A M M O E T D E C O M B . V.

“We have all the engineering departments for all the different markets and businesses centralised in one office, in each of our locations all over the world, so it’s quite easy to form project teams with different disciplines in it” – Jelle Lanting, GM

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ammoet Decom is aligning itself to bring new efficiencies and adaptability to the relatively new decommissioning industry through its experience from multiple industries and ability to find fast and unique solutions.

As the most recent addition to the brand which comprises onshore civil, energy and petrochemical operations as well as marine, salvage and offshore installation, Mammoet Decom has spent the past few years angling itself towards a fresh approach to decommissioning, capitalising on its tailormade solutions and internal flexibility.

“We have all the engineering departments for all the different markets and businesses centralised in one office, in each of our locations all over the world, so it’s quite easy to form project teams with different disciplines in it,” said General Manager, Jelle Lanting. “Not only is it good for sales and clients but for the engineers themselves to be close to each other. It helps to solve problems, keeps the job interesting and facilitates innovation.”

Meeting market demands Longstanding expertise, state-of-the-art equipment, and techniques already present in the company through its salvage and onshore divisions has enabled Mammoet to prepare for the market demands and challenges that come from modern-day offshore operations.

Ageing and deterioration of installations, for

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The company brings new efficiencies and adaptability to the decommissioning industry

instance, requires the flexibility and foresight to help cope with the uncertain characteristics of a platform, and is where Mammoet believes it will thrive in the future with its myriad solutions and strong focus on efficiencies by working closely with clients to find optimal solutions. “We noticed that the market demands alternative solutions for their decommissioning activities,� Lanting said. “Decommissioning is often performed as a reverse installation currently, but while a new platform has very few uncertainties, a platform that has been in the sea for more than 30 years has possibly aged, deteriorated and been

Winching diving cage onsite

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THE BIGGEST THING WE MOVE IS TIME

When it comes to lifting, transporting, installing and decommis-

tailor-made solutions for engineered heavy logistics. If you are

sioning large structures, we believe your biggest challenges

facing challenges in decommissioning, give us a call. Time may

aren’t about size. They’re about time. Uptime, turnaround time

not be set in concrete or forged in steel. It isn’t even all that

and time to market. In case of decommissioning, where no two

heavy. And yet, it’s the biggest thing we can move for you.

structures are the same, time spent on careful planning and creative engineering results in a solution with an optimal balance

For more information, please call Jelle Lanting, general manager

between time, cost and capacity for each operation.

Decommissioning: +31 6 46 60 25 55. Or send him an email:

With offices on every other continent and a fleet of equipment

jelle.lanting@mammoet.com

that is unparalleled in size and capacity, Mammoet provides

Discover more on mammoet.com

M A M M O E T D E C O M B . V.

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modified. Then its characteristics are more like wreck removal than installation.

“With our salvage background and background in other industries, we know how to cope with the extra elements within decommissioning compared with installation, such as dealing with technical unknowns or uncertainties.”

This isn’t to say that techniques from industries such as installation and salvage can’t be applied to decommissioning though and that’s what Mammoet feels it can bring to the industry through its background in neighbouring sectors.

“We want to use the experience that we have from the other industries, in decommissioning, to make the process safer, more efficient or economic.

Inevitably, there may be better tools for the job. In some cases a heavy lift vessel is still the

“ We like to think outside of the box to be more safe, quick and economic, building solutions around each job in the most sensible way” – Jelle Lanting, GM

Diver working on decomissioning part of an offshore platform w w w. m a m m o e t . c o m

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The successful recovery of a decommission offshore platform

“If we can inform the market that there are alternative ways of removing their installation that would be a big benefit. We honestly believe decommissioning can be done safer and cheaper in specific cases” – Jelle Lanting, GM

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best solution, but for many projects, Mammoet is able to locate prime opportunities within the market in order to offer clients a cheaper, faster and more comprehensive option.

Configuring equipment Assessing which projects are most suitable to the company’s existing skill-set is complemented by the diversity of modular equipment already at hand and the innovative ways in which Mammoet configures said equipment for each project when designing a method.

The focus can be spread across effectiveness, economy or efficiency through the configuration and application to determine the equipment’s behaviour and suitability.

Again, this expertise stems from the

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comprehensive experience that the company has in multiple industries in reducing the effects of challenges in technical problem solving, management processes and mechanisms that inevitably play a similar role in the decommissioning sector.

“A good example of our approach was through the decommissioning of a 160-metrehigh buoy in Norway, toppling it to get it horizontal,” Lanting explained. “Our onshore departments normally focus on the civil industry and would never have looked at this job, while our marine engineering department would not consider the techniques we used now. It’s a combination of those two departments that made the difference and got us the solution.

“We like to think outside of the box to bring

The removal of the underwater structures are dealt with remotely from a safe distance, ensuring staff and vistors safety onsite

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Continuous investment allows Mammoet to be flexible and cost effective when dealing with project requirements

Professional trained staff is crucial to Mammoet’s success

safer, quick and economic, building solutions around each job in the most sensible way.”

“Over the years we’ve developed ourselves reputably on the approach that we don’t often build the same thing twice and there’s an incremental innovation each time,” Lanting concluded. “It’s not just the size and capacity of our operations which have improved but the techniques we use each time too.

“The good thing about modular equipment is that it’s easier to adapt and change one small aspect of the overall model to work towards the best solution and best end result.”

Industry ambition In four-to-five years’ time, Mammoet hopes to have not only developed its own company in decommissioning, but the industry as well, with

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M A M M O E T D E C O M B . V.

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an aim to widen the possibilities of how projects can be carried out to further emphasise the difference across the separate offshore divisions and the company’s ability to cater for each individually.

“If we can inform the market that there are alternative ways of removing their installation that would be a big benefit. We honestly believe decommissioning can be done safer and cheaper in specific cases,” Lanting continued. “What I feel we can achieve in decommissioning is to develop the market in a sense that every platform is removed by the most suitable method.

“If that means the method is low tech, simple and economic then that’s the method to go with and if the platform has more challenges then your removal methods will be more challenging as well.”

Offering a tailor-made service to suit the requirements perfect for each platform and for each client is the way that Lanting sees the industry progressing and he subsequently hopes that Mammoet will play an active part in this development.

The General Manager concluded: “Decommissioning is not just decommissioning, but is a set of combined skills and with every job you only need a few of those skills, you never need them all. “It’s actually how we put together those skills that makes the project and I believe that’s what we want to achieve in decommissioning in the future.”

Company Information INDUSTRY

Decommissioning HEADQUARTERS

Schiedam, The Netherlands FOUNDED

1806 EMPLOYEES

5000+ REVENUE

Not disclosed PRODUCTS/ SERVICES

Decommissioning contracting and subcontracting solutions

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Environmental focus gives AF Decom the green light for offshore innovation The offshore division of one of Scandinavia’s largest built environment businesses is leveraging its green strategy and experience to lead its unique market offering into Norway and the UK Written by: Matthew Staff Produced by: James Pepper

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AF DECOM OFFSHORE

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Nicholas Tompkins, Project Director

F Decom Offshore is staking its claim to be one of the leading main contractors in the offshore disposal market, largely courtesy of an environmental pedigree that surpasses competitors on a global level.

As part of the AF Gruppen which comprises more than 2,700 employees and has been the top performing company on the Norwegian Stock Exchange for the past seven years, the offshore division is the third largest of six and was introduced in 2004 as a response to a general swell of business in the removal, decommissioning and recycling of marine installations.

Following on from nearly three decades of success on land through construction, civil engineering and building works, AF Decom Offshore now has its sites firmly set on replicating that prominence both in its native Norway, and in the UK, capitalising

“Our mission statement is ‘clearing up the past and building for the future’, and as a group and through our offshore decommissioning division, we aim to be an industrial entity that creates value by forming the future through contracting energy and environmental services” – Nick Tompkins, Project Director UK, AF Decom Offshore 86

August 2014

ENERGY

Key Personnel

Pål Egil Rønn CEO/President Bengt Hildisch President Robert Hauge Executive Vice President Nick Tompkins Project Director Members of the AF Decom Offfshore team

on opportunities in the North Sea. UK Project Director Nick Tompkins said: “Our mission statement is ‘clearing up the past and building for the future’, and as a group and through our offshore decommissioning division, we aim to be an industrial entity that creates value by forming the future through contracting energy and environmental services.”

Amund Tøftum Project Director

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AF DECOM OFFSHORE

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Invested in the environment It is the company’s acknowledgement of future requirements and trends which has helped form its continent-leading and market-differentiating environmental strategy.

AF Decom’s Norwegian facility in Vats is Europe’s most environmentally friendly and safe site for the disposal and recycling of offshore installations, minimising environmental emissions and accounting for material according to strict quality requirements.

The company has also invested heavily into the monitoring side of its green processes, while affiliations with The Norwegian Institute for Water Research and the Norwegian University of Science and Technology ensures that emissions are monitored and verified independently.

‘The company has also invested heavily into the monitoring side of its green processes, while affiliations with The Norwegian Institute for Water Research and the Norwegian University of Science and Technology ensures that emissions are monitored and verified independently’

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DeepOcean successfully provided the engineering, planning and execution of the subsea operations in the H7 project for AF Decom Offshore.

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AF DECOM OFFSHORE

ENERGY

“There’s no-one else in Europe, at least, that has the same type of environmental protection systems that we have in Vats,” Tompkins said.

“When anything goes into Vats and is broken up, the facility protects the environment, and our overall standards far exceed what is statutorily required of us in both Norway and the UK.” Further epitomising the efforts that go into this strategy is AF Decom’s promise to recycle between 96 and 98 percent of everything brought onshore for disposal; the lower figure only being deemed acceptable when dealing with hazardous materials.

Ahead of the innovation curve Despite being a large organisation, the AF Gruppen prides itself on being able to operate like a small company; a philosophy which has translated to the offshore division with a strong entrepreneurial spirit often resulting in the introduction of innovative and unique solutions

Vats yard and fjord

‘Despite being a large organisation, the AF Gruppen prides itself on being able to operate like a small company; a philosophy which has translated to the offshore division with a strong entrepreneurial spirit’ w w w. a f g r u p p e n . c o m

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Offshore work

and processes.

Tompkins explained: “What we like to do is get ahead of the innovation curve in terms of processes and procedures as well as equipment. For example, we were the first company to introduce the piece small method to the offshore environment by utilising landbased excavators in the offshore theatre.

“We looked at the industry and at the way that AF has been doing things onshore for decades and thought there’s no reason why we can’t apply the same technologies to the offshore environment.”

AF Decom Offshore was also the first company

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ENERGY

to implement the use of wind farm installation jack-up vessels for the removal of offshore platforms as a pivotal aspect of what the company believes is its biggest differentiator; its ability to integrate the entire process.

“We use the piece small method, we use the reverse installation method, single piece removal or a flexible combination of all of those to meet the customers’ needs in the best way,” Tompkins continued. “We offer the partial or complete removal and then onshore disposal of offshore oil and gas installations, whether they’re subsea, topsides or jackets, and we can do so through a variety of means.

“We think that’s our USP because we don’t believe there is any other competitor, certainly in northern Europe, who offers

Vats yard

Construction planning

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“What we like to do is get ahead of the innovation curve in terms of processes and procedures as well as equipment” – Nick Tompkins, Project Director UK, AF Decom Offshore

The Clip scissors may be a prehistoric method, but it’s always effective

the fully integrated service package.

“If you look at individual elements then there are a number of providers of each, but we’re the only organisation that integrates all offerings into a fully integrated service.”

This package also incorporates the provision of standalone engineering and feasibility studies, project management and hazardous material and waste mapping, while continuous investments in equipment, such as two large new cutting machines introduced at Vats last year, ensures that the company is constantly pushing the innovation boundary.

Future aspirations The combination of market-leading innovations and the ability to keep ahead of industry trends

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has culminated in the company being rewarded by some of the most high profile players in the oil and gas industry.

Working alongside tier one operators such as Statoil, Gasco and ConocoPhillips, as well as for some of the market’s largest contractors including HMC, has produced a track record that not only reaps financial benefits but also generates invaluable repeat contract work.

“One of the major contracts we’ve just commenced operations on is an extension from Statoil for their B11 platform which was a direct result of performing the H7 contract last year,” Tompkins explained. “Similarly, we carried out the Ekofisk 2/4T0 Tank project for ConocoPhillips which involved about 30,000 tonnes of steel being removed using our piece small method, and we’ve spent the past five years working on their EPRD project where we’ve removed nine platforms to date and hope to be awarded further extensions.”

To be receiving such high profile contracts stands as testament to the brand reputation that comes from being a division of the AF Gruppen, and Tompkins now hopes that recent successes will continue to breed new opportunities in its focus regions in the years to come.

He concluded: “While our future aspirations may include greater geographic expansion, we are focusing on our North Sea operations and aim to replicate our market leading success in Scandinavia and grow the business further in the UK.”

Company Information INDUSTRY

Energy HEADQUARTERS

Oslo, Norway FOUNDED

AF Gruppen (1985), AF Decom Offshore (2004) EMPLOYEES

2,700 REVENUE

Not disclosed PRODUCTS/ SERVICES

Offshore decommissioning

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Able UK seals blue-chip offshore contracts to replicate onshore success The UK energy company has been a market leader in the demolition sector for nearly 50 years and is already following suit through its recently established marine operations Written by: Matthew Staff Produced by: James Pepper

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ABLE UK

A

“In many respects, we had cracked the onshore demolition side so it was a natural progression for us to go into decommissioning where, again, it is not an idle boast to say we are now a UK market leader in that field as well”

ble UK has affirmed itself as the leading industrial energy company in the country by leading domestic markets, not only onshore, but offshore through a recently attained contract from Shell which will comprise the construction of a new quay and the creation of 200 jobs.

Progressing since the mid-1960s as a provider of increasingly large demolition projects of power stations and oil refineries, the company has recently turned much of its attentions to optimising the same industry expertise and state-of-the-art Teeside facilities to successfully deal with the decommissioning of offshore oil rigs and platforms in the North Sea. “In regards to the demolition projects, we managed to get ahead and then stayed ahead through developing new techniques, and it’s not an idle boast to suggest there isn’t a UK company with the track record of Able’s in terms of successfully dealing with complex demolition challenges,” said Group Development Director, Neil Etherington.

“In many respects, we had cracked the onshore demolition side so it was a natural progression for us to go into decommissioning where, again, it is not an idle boast to say we are now a UK market leader in that field as well.”

— Neil Etherington, Group Development Director, Able UK

Blue-chip contracts The success on both sides of the shoreline is characterised by the blue-chip companies that

Rig decommissioning

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EUROPE

Able UK are the large-scale demolition experts

Able UK has worked with over the years, a pattern which epitomises some of the most exciting projects the company has recently undertaken or is set to undertake in the coming months.

“The type of clients we work with have demands which extend beyond commercial issues and into the critical issues of health, safety and the environment, and we cater for these demands,” Etherington said.

Securing the 2008 BP North West Decommissioning Programme contract was, at the time, a massive feather in Able’s cap, being the largest project of its type in the North Sea, and has been followed up this year with the announcement that Shell has chosen the company to decommission rigs from their Brent Field.

Key Personnel

Neil Etherington Group Development Director

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BP North West Hutton living quarters are restored

“The defining element of this project is that it will see, for the first time, the deployment of Allsea’s new vessel, the Pieter Schelte,” Etherington continued. “This means that rather than reverse engineering taking place in challenging offshore conditions, this vessel can lift single pieces of up to 48,000 tonnes and can be placed on a barge within the vessel to be taken, in a single unit, to the port for decommissioning and recycling.”

To cater for the project, Able is developing a much stronger quay than it currently has, 120 metres long with 60 tonnes per square metre loading capacity.

Artist’s impression of the Seaton Port proposed quay site, when fully operational it will support 60 tonnes per square metre on the dock area

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EUROPE

Pipeline equipment shipped to Able Seaton Port

Etherington added: “The Pieter Schelte is a defining change and we are purpose building quays to suit its specific requirements, not just for this contract but generally moving forward it puts us in a strong position.

“This single project alone, which will extend over a six year period, will also open up 100 new employment opportunities in the construction of the quay and another 100 jobs through the duration of the contract.”

Loading pipeline

Entrepreneurial spirit Remaining innovative and entrepreneurial has

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ABLE UK

EUROPE

been a key feature of Able UK’s rise to the top, combining the optimum facilities with the ideal skill sets to present an irresistible option to industry-leading companies, which have also included the likes of ConocoPhillips and Total.

“The almost unique nature of our offer is that we combine that core demolition skill with having exactly the right facilities to undertake this sort of decommissioning work, and that requires a port that has specifically the right level of water and strong load-bearing quays such as we have at Seaton Port where we undertake most of our activities,” Etherington explained.

“The quays have a 40 tonne square metre universally distributed load and we also take advantage of the significant opportunities afforded by the indigenous quayside supply chain.”

This has contributed to a further string being added to the Able bow through engaging in extensive work at Seaton Port, supporting mobile oil rig operators in regards to maintenance and upgrades of jack-up and semi-submersible rigs.

The growth in the marine industry is booming, providing more opportunities for Able UK

“The Pieter Schelte is a defining change and we are purpose building quays to suit its specific requirements, not just for this contract but generally moving forward it puts us in a strong position” — Neil Etherington w w w. a b l e u k . c o m

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The Liebherr LHM600SHL, the largest mobile harbour crane in Europe

“Once we’re committed to a strategy, then we are fully committed.

We have a pride and passion in what we do and the ability to really put our money where our mouth is”

“We have had as many as 10 rigs in since 2009 and they’re here for up to four months, can vary from $3 million to $90 million each and require anywhere between 100 and 700 people,” said Etherington. “Our organisation is characterised by this kind of entrepreneurial spirit to carry out a wide range of projects.

“We are privately owned and in control of our own destiny so have been able to take longer term strategic views. Once we’re committed to a strategy, then we are fully committed. We have a pride and passion in what we do and the ability to really put our money where our mouth is.”

— Neil Etherington

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EUROPE

looking for ways to improve and develop its offering further, and this has recently led to the acquisition of the Liebherr LHM600SHL crane, the largest mobile harbour crane in Europe.

Purchased to meet the company’s specific requirements, the crane is able to lift 208 tonnes and will be used to aid activities in cargo handling and offshore oil and gas rig maintenance.

“It’s about having the right kit on site and also about having the right philosophy behind its use,” Etherington explained. “We have also pioneered the idea of the multi-user facility where our plant is there for the use of all, with every occupants’ capital going that bit further by being able to share expensive equipment.”

The new crane will also have a significant bearing on components for the offshore wind sector, to which the company has made a nationally significant move into, signalling the future ambitions of Able UK. “The Secretary of State for transport has recently authorised the development consent order for the Able Marine Energy Park which is a 900-acre development, with 1,300 meters of deep-water quays, and it is a bespoke facility for the burgeoning offshore wind sector,” Etherington said. “It will be the largest in the UK and we’re building a super port which we’ll operate in a similar way to how we operate Seaton.

“We know it works well, we know that’s what the offshore requires and the offshore wind sector is very excited about it.”

Company Information INDUSTRY

Energy HEADQUARTERS

Billingham, UK FOUNDED

1966 EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

Land developments, rig upgrades & maintenance, demolition, offshore decommissioning, waste management

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Petro-King Intern

Petro-King International Incre Oilfield Technology Service C while Increasing Global Reac

Highly professional and dedicated, Petro-king has design, professionals specializing in well construction and product Written by: Andrew Rossillo Produced by: Wayne Masciotro

rnational

eases Value for Customers ch

manufacturing and consultancy tion enhancement

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P E T R O - K I N G I N T E R N AT I O N A L

A pre-job safety meeting

PETRO-KING OILFIELD Technology Ltd. is a leading independent China-based provider of high-end technology and oilfield services. Its primary oilfield services include technical consultation, project management, well drilling, completions, stimulation, production enhancement, surface equipment, and well testing. It also provides associated technology.

“We are a global integrated oilfield technology and service company,” says Country Manager – Australia, James Tauchnitz. “What makes 108

August 2014

us unique is our striving for fit-forpurpose solutions. We’re not a company that offers a catalog. We look at what our customers value and try to find solutions to meet those value-driven challenges.”

Headquartered in Shekou of Shenzhen, the coastal oil town in southern China, Petro-king has established its business presence in China, Indonesia, Russia, Nigeria, Saudi Arabia, Yemen, Algeria, Trinidad and Tobago, Turkmenistan, Kazakhstan and Australia. Among its major clients are Sinopec,

SECTOR

PetroChina, CNOOC, Shell, BP, Rosneft, ConocoPhillips, CACT Operators Group, DEVON, Fareast, EOG, and Sunwing Energy. In order to provide their customers with more convenient and more thoughtful services, Petro-king has set up fully fledged service bases in major operation areas.

“We’re a Chinese-based company, going through a fairly big global expansion into Africa, South East Asia, throughout China, North America, South America, and Australia,” explains Tauchnitz.

“So my job is to lead the Australian business. Wherever we extend our company, we still make sure we hold on to the vision and mission of the company. The vision being that we aspire to be the leading oilfield technology provider.”

“We already are global and integrated but we want to be beating the competition every day. Our mission is very simple: to create value for our customers, every day.

The day that we stop creating value for our customers is the day we stop creating value for our business.

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Leading Down Hole & Completion Tool Manufacturer PACKERS PACKER ACCESSORIES LINER HANGER DOWN HOLE FLOW CONTROL SAFETY VALVE MULTI-STAGE FRAC SYSTEM

Star Petrotech is a leading downhole completion equipment manufacturer of South East Asia.

Headquartered in Singapore, we offer wide range of products and services design to maximize well production such as packer systems, subsurface safety systems, subsurface flow controls, multi stage fracturing systems and service tools.

Star Petrotech committed to provide the highest quality product through our highly skill and well train employees using state of the art manufacturing facility. Our innovative designs had earned good reputation in Middle East, South America, Africa, Russia, Singapore, and China markets.

CONTACT US:

Email: enquiry@starpetrotech.com

www.starpetrotech.com

No 27, Tuas Avenue 4, Singapore 639377 Tel: (65) 6863 1720 / (65) 6863 2720 Fax: (65) 6863 2390 / (65) 6863 2360

A NEW GENERATION OF HIGH POWERED TURBODRILLS

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SUPPLIER PROFILE

STAR PETROTECH Star Petrotech is a leading downhole completion equipment manufacturer of South East Asia. Headquartered in Singapore, we offer wide range of products and services design to maximize well production such as packer systems, subsurface safety systems, subsurface flow controls, multi stage fracturing systems and service tools. Qualified with ISO 9001:2008 and API Q1, 6A, 14A, 14L, 11D1, 19G1 quality system.

Star Petrotech completion tools are designed to meet specific wellbore or reservoir conditions. Star Petrotech safety valve design uses innovative rod piston and metal to metal flapper seal and full range of packers of different configurations for single or dual tubing strings, full range of pressure and temperature applications including multistage stimulation systems designed to fracture and stimulate multiple stages in vertical, horizontal and deviated wells. On top this, we offer a competitive price and faster delivery lead time.

Our dedicated expert team will provide fit-for-purpose solutions with know how needed to serve our customers with the highest level of technical knowledge in the industry.

Website: www.starpetrotech.com

SUPPLIER PROFILE

TURBODYNAMICS With over 75 year’s cumulative experience in all aspects of turbodrilling, the TurboDynamics team has designed and built an exciting and innovative new generation of turbodrills.

Currently available in 4-3/4”, 6-3/4” & 9-5/8” sizes for either vertical or directional applications, these high powered drilling tools provide several benefits to customers compared to competitor products.

• The single section design not only reduces length but also saves valuable rig handling time.

• Specialized, dynamic turbomachinery CFD software has been utilized to produce highly efficient turbine blade designs, resulting in increased power per stage and reduced parasitic energy losses.

• Every component has been designed to minimize wear in order to maximize operational run life.

In addition to our state of the art technology our focus is concentrated on customer service provision. All potential applications are analyzed in detail with our expert team and advice provided through the planning, execution and post well review stages.

Website: www.turbodynamics.com

Huizhou Global R&D and Manufacturing Base - currently under construction

P E T R O - K I N G I N T E R N AT I O N A L To create value means that we are looking for a solution that doesn’t necessarily exist yet. We’re not afraid of taking a new trail and testing new ways, processes, technologies, etc., so we can have that competitive advantage,” says Tauchnitz.

Competitive Advantage A key component of Petro-king’s competitive advantage is their international technical team. Highly professional and dedicated, Petroking has experts in hydrocarbon exploration evaluation, drilling and completion program design, well engineering, who are not only experienced in coping with tough and complicated problems related to HPHT, high sour gas wells, unconventional resources development and deep-water operations, but also capable of serving offshore and onshore projects. Owing to its widely acclaimed professional services, Petro-king has established long-term partnership with many customers.

With customers and applications in mind, Petro-king keeps learning and improving. It has set up a sound mechanism for assimilation of new

ENERGY

technologies and an employee development program, which has laid a solid foundation for its continuous development. More importantly, its customers are assured of sustained and stable technical support.

Petro-king attaches significant importance to safety, the environment and service quality.

They have obtained the DNV ISO quality system certification and API Q1 quality system certification to guarantee constant and reliable technical services for its customers.

Integrated Businesses Compounding the Company’s competitive advantage is the comprehensive integration of Petro-king’s business operations.

“If you were to look at the back of my business card, it reads ‘Plan.

Drill. Stimulate. Complete. Operate.

Optimise.’ These are very broad areas, and the value that we deliver comes in helping integrate each of those services,” says Tauchnitz.

The flagship businesses that represent significant components of Petro-king’s integration are TurboDynamics and Star Petrotech,

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P E T R O - K I N G I N T E R N AT I O N A L

Newly delivered Fracture Stimulation Equipment - Sichuan

both out of Singapore, both under the Petro-king Group, but they are branded under their own businesses and they’re run as their own entities.

“I think firstly, there’s a lot to be said about experience,” says Tauchnitz.

“In the TurboDynamics business, we likely have more experience in highspeed turbo drills than anybody else globally, including the major oilfield service companies.”

TurboDynamics manufactures and provides high-speed turbo drill services primarily for drilling in high temperature or very abrasive drilling environments, but can also prove to be very cost effective in a wide range 116

August 2014

of other challenging applications.

In this way, TurboDynamics has also established itself in the marketplace as the place to find solutions to time versus depth challenges and problems. In fact, TurboDynamics’ clients have been known to find it hard to believe the time savings provided which are consistently executed right on schedule, sometimes at a fifth of the time required by standard drilling techniques. “For one particular project, when you have a look at the savings for that client alone in just rig time, that was $1.5 million of rig-time savings just based on our

ENERGY

Global Headquarters - Shenzhen

high-speed turbine technology. A small piece of a large project really can save a whole load of money and deliver a whole lot of value for clients,” says Tauchnitz.

Star Petrotech is Petro-king’s flagship completion tool shop and manufacturing facility, also headed by very experienced personnel.

Their specialty is designing and manufacturing custom tools.

Star Petrotech focuses on highpressure, high-temperature markets.

Petro-king’s sister facility in China manufactures complementary tools. “The beauty of that business [Star Petrotech] is they’re able to do

designs for more low-cost global applications,” says Tauchnitz.

The Company’s capabilities in concert with its high-performance teams create a powerful combination, touting the flexibility to act quickly and make decisions, be creative and innovative. Experience coupled with flexibility in a global capacity tends be a rare commodity, thus creating an additional competitive edge for the Company.

Integrated Project Management Integrated project management capabilities represent another very powerful and successful part of Petro-king’s business. The

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P E T R O - K I N G I N T E R N AT I O N A L

James Tauchnitz - Australian Director, Country Manager

Company has been delivering turn-key solutions to clients in China, Iran, Nigeria, Sakhalin Island, Syria and Trinidad.

As an example of this turn-key solution, an operator looking to develop a certain field has the 118

August 2014

opportunity to approach Petroking, state their budget, and then have Petro-king hit the ground running, taking care of everything from the geology and geophysics, well planning and design through a fully staged gated process into field

ENERGY

execution and production, getting the wells online and handing them back over to the operator; all with a turn-key mentality.

“We are continually assisting, providing our expertise and maintaining that production,” says Tauchnitz. “We have a full turn-key integrated project management team, and we’re starting to bring those services into Australia now. This is really going to be a game changing mix for the Australian market that really hasn’t seen too much of this before.”

The Petro-king business started out in the oilfield consulting business and grew from 1 to 70 or 80 oilfield consultants. With successes in consulting, customers naturally began inquiring as to whether the Company would also provide services as well. Catalysed by this interest, the Company then started growing their drilling completions for stimulation services. As a result of this, customers then asked about the integration of these offerings, including overall project management, leading to Petro-king delivering the full experience locally for their clients. “We match these teams to organizations, and we’re starting to bring those capabilities into Australia now,” says Tauchnitz.

Looking forward, Petro-king remains committed to creating value for its customers and is determined to grow globally into the leading oilfield service company.

Company Information INDUSTRY

Energy HEADQUARTERS

China (global headquarters) FOUNDED

2002 EMPLOYEES

approximately 900 REVENUE

$150 million PRODUCTS/ SERVICES

technical consultation, project management, drilling services, completion tools, stimulation services, production enhancement, artificial lift, automation, well testing

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Energyworks Limited

Energyworks Limited’s New

After a major stakeholder came on board in January, Ene has introduced new strategic plans that will expand the c New Zealand and into Australia.

Written by: Laura Close Produced by: Wayne Masciotro

d:

w Strategic Plans

ergyworks Limited company throughout

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ENERGYWORKS LIMITED

Front view of headquarters New Plymouth, New Zealand

ENERGYWORKS LIMITED, ONE of New Zealand’s leading specialist engineering companies, added a new major shareholder to the business in January of 2014. As a new shareholder, Direct Capital is providing Energyworks with a new direction, new governance and a renewed opportunity for future growth.

For the future, the strategic focus of the company is going to cover three key areas: 1) establishing longer-term maintenance contracts with existing clients, 2) increasing the range of engineering services that Energyworks provides, and 3) expanding into new geographies, namely throughout New Zealand and Australia.

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E X P L O R AT I O N

Growing the Company To accomplish these three major goals for their new strategic plan, Energyworks is focusing on the continual improvement of the company’s management system certification. “We’ve been investing heavily for the last 2-3 years in integrating multiple management systems to optimize our efficiency,” said Ian McGrath, CSO Chief Specialist Officer (QHSE/HR).

They have several certifications from the international certification recognition organisation, Bureau Veritas, including ISO 9001

“We’ve been investing heavily for the last 2-3 years in integrating multiple management systems to optimize our efficiency”

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Why compromise on outstanding service, quality and innovation at the right price for the equipment you depend on.

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Cunningham Construction “Raising Industry To New Heights”

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ENERGYWORKS LIMITED (Quality) and 4801 (Health & Safety).

Energyworks is also in the process of adding ISO 14001, which relates to the environment. In the last 12 to 18 months, the company has also increased their ACC Workplace Safety Management Practices (ACC WSMP) certification to tertiary level.

“Our continual improvement commitment does not just include meeting requirements for the certification, but exceeding those requirements and not just for the clients who we work for, but to push us beyond the local and industry competition,” shared McGrath. “We hope it will enable us to provide not just an internal quality benchmark for the company, but also external recognition in terms of increasing our competitiveness and ability to influence the winning of tenders.”

Moving to Australia As part of the strategic plan, Energyworks is looking towards

E X P L O R AT I O N

re-entering the market in Australia and establishing a base in the country. Geographically, the east side of Australia will provide the most opportunities for the company because of the strong Gas Transmission infrastructure and the Coal Seam Gas market.

“The infrastructure there has been well established over a period of years and the anticipated need, which we are looking to provide, is the ongoing project contracts and on-going maintenance of those facilities,” commented McGrath.

“As part of that process we are looking to appoint a general manager in Australia to formally set up and establish the business in Queensland That may include establishing our own infrastructure or an acquisition of an established small business operating in that environment. At the moment, all options are being considered.”

“We hope it will enable us to provide not just a quality benchmark for the company, but also an external benchmark in terms of increasing our competitiveness and ability to influence the winning of tenders” w w w. e n e r g y w o r k s . n e t . n z

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ENERGYWORKS LIMITED

Storage Warehouse Facility

“The infrastructure there has been well established over a period of years and the anticipated need, which we are looking to provide, is the ongoing maintenance of those facilities now that they’re established” 126

August 2014

E X P L O R AT I O N

Current and Future Projects Energyworks has just completed the workshop fabrication and site installation of five modules for Todd Energy on the Mangahewa C Development. Those new

facilities are for gas supply to the existing Todd Energy production station. The project was started in November of 2013 and was completed in May 2014.

A pipeline construction project in w w w. e n e r g y w o r k s . n e t . n z

127

ENERGYWORKS LIMITED Auckland is Energyworks’ current project. It involves constructing 7.6 kilometres of 6-inch gas distribution for their client, Vector. The pipelines are being installed to support a dairy factory development project, which will create 120 local jobs.

Due to the high quality of work the company completed on the Mangahewa C Development project; Energyworks has also been awarded the Mangahewa D, E, and F well-site development work.

Energyworks also has a project in

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Automotive Industrial Marine Farming Plumbing / Drainage Proud to support and supply Energyworks

AUCKLAND • NEW PLYMOUTH • CHRISTCHURCH

www.shuk.co.nz

Australia with their client Jemena, for the construction of two scraper stations inland from Gladstone in Queensland. Energyworks is building the structural supports and pipework at their New Zealand facility, exporting it to Australia and installing it onsite for the client.

Defining Qualities When asked what he thought defined Energyworks and set it apart from others in the industry, McGrath had several answers.

“Most important though, and something that we actively promote inside the business is that our company demonstrates an attitude, ambition and desire for excellence that drives continual improvement within the company,” said McGrath.

“I think that is recognized by the clients we work with and that provides them with a huge amount of assurance in terms of our intent”

E X P L O R AT I O N

Company Information INDUSTRY

Energy, Construction HEADQUARTERS

New Plymouth, New Zealand

Paintshop

“Our ability to manage and execute a widerange of project and maintenance work for our clients is really distinguished by the quality, skills and experience of our people. We like to solve our clients’ problems and provide them with solutions. Our success has been built on key relationships with a range of significant clients within the Energy Exploration” Other important characteristics that Energyworks provides are world class facilities at their New Plymouth site, a quickly scalable work force and a niche expertise in pipeline construction.

“Most important though, and something that we actively promote inside the business is that our company demonstrates an attitude, ambition and desire for excellence that drives continual improvement within the company,” said McGrath.

“I think that is recognized by the clients we work with and that provides them with a huge amount of assurance in terms of our intent.”

FOUNDED

1972 EMPLOYEES

200 REVENUE

$50 Million PRODUCTS/ SERVICES

Energyworks provides mechanical maintenance and project services to Dynea including stainless steal piping and mechanical work.

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