Exploration May 2015

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NOVEMBER 2012

CYBERSECURITY AND THE AVOIDABLE DISASTER IN OIL & GAS THE 10 WEALTHIEST CEOs IN OIL & GAS LEVERAGING INSIGHT TO DRIVE REVENUES

MAY 2015

EDITOR’S COMMENT

“KNOW YOUR ENEMY AND KNOW YOURSELF AND YOU CAN FIGHT A HUNDRED BATTLES WITHOUT DISASTER” – SUN TZU

I’ve never fought a battle and it’s likely you haven’t either.

Sure, I’ve struggled with a myriad of things ranging from large to small, but to call any of those battles wouldn’t go past a metaphorical sense. The reason I’ve been thinking about that quote a lot this month has less to do with winning wars and more to do with what it tells us about information.

It should come as no surprise that information— what the security sector would call intelligence today— has remained the no. 1 advantage in war throughout human history. And today, in the modern age of technology, knowing your enemy can mean even more: it can mean the difference between a day of successful business and a major catastrophe.

That’s why this month we looked at the link between the oil and gas industry and its necessity to protect itself from ever-increasing cybersecurity threats. To understand the topic, we spoke to Ernst & Young and BAE Systems to get their take on this dauntingly complex subject.

After that, you’ll get a look at the 10 highest-paid CEOs in oil and gas before Jake Davies of Permasense discusses the value of leveraging information in the modern business climate.

We thank you for reading Exploration

Ian Hanner Editor ian.hanner@wdmgroup.com

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CO CN OTNETN ETNST S FEATURES

6 Production & Transport

Information is Power: Leveraging Insight to Drive Revenues

14 Business & Operations

Cybersecurity and the Avoidable Disaster in Oil & Gas

USA 30 Petro Star

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MIDDLE EAST

Specialist Services

38 Specialist Services

AFRICA 48 Nigerdock

USA 76 PAPCO

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May 2015

22 Top 10

Most Well-Paid CEOs in Oil & Gas

Petro Star

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PRODUCTION & TRANSPORT

INFORMATION I LEVERAGING IN DRIVE REVENUE

Jake Davies at Permasense explores can play in enhancing revenues, redu maintaining the integrity of existing a W R I T T E N B Y: J A K E D A V I E S 6 May 2015

IS POWER: NSIGHT TO ES

s the role technology ucing costs and ssets.

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PRODUCTION & TRANSPORT WITH MARGINS SQUEEZED, oil and gas producers are focusing on maximizing output from existing assets and doing more with less.

Jake Davies at Permasense explores the role technology can play in enhancing revenues, reducing costs and maintaining the integrity of existing assets.

The precipitous drop in the price for crude oil has demonstrated— if demonstration were needed— the complex interplay of economic and political pressures that govern the oil and gas industry.

While some consumers and politicians relish the timely drop in the cost of living, industry executives are frantically rewriting their forecasts, adjusting and re-adjusting levers to secure the optimum balance between the cost of production and the value of output— a challenge when even the smallest adjustment can have a big impact.

In the finely calibrated machine that is upstream oil and gas production, each well and production asset has to maintain a delicate balance between profit and loss, short-term demands and long-term requirements. And although consumers may be hoping 8 May 2015

for a lengthy period of low prices, there is no question that they will climb back again at some point. So operators also have difficult decisions to make to balance short-term loss of margin against long-term operational viability.

More with Less Part of the challenge is that some things are simply out of the operators’ hands. With demand dropping in critical markets like China, and OPEC announcing its intention to maintain current production levels, there is little that can be done to change the fundamental dynamics of supply and demand. The geopolitical forces at play are bigger than any individual E&P company.

However, if individual operators can do little to affect the purchase price, there are things they can do to reduce the cost of producing a barrel of oil by improving the cost-efficiency of production.

As margins are so tight, the productivity of individual assets can be the difference between making a loss and securing a profit. Optimizing production rates offers the best chance of maintaining— or even increasing— profit. It is not surprising

LEVERAGING INSIGHT TO DRIVE REVENUES

that the era of $40-$50 oil is thrusting operational excellence back to the top of the corporate agenda with a view to extracting maximum value from existing resources.

Of course, optimized production has to be achieved with a minimum investment: with substantial reductions or delays in capex projects, and the pressure to reduce opex, payback for any outlay has to be swift and it has to be clear. ‘Doing more with less’ is the mantra of the moment and efforts are shifting towards generating maximum return from the resources already available.

The Information Asset However, maximizing output from existing assets is a pretty tall order with incomplete or even entirely absent evidence. Data that can deliver insight and, importantly, actionable information is needed if operators are to achieve accurate and appropriate decision-making that delivers desired outcomes.

Fixed equipment integrity is one example where cohesive, high-quality and timely data is often lacking. On the one hand, the corrosive effect of produced fluids, or the erosive impact of produced sand particles in oil and

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PRODUCTION & TRANSPORT

gas equipment, is well understood. On the other, information about the impact of these corrosive or erosive materials on the actual integrity of the asset is surprisingly light.

Traditional sand detectors can assess the presence of sand, but cannot measure the detrimental impact of that sand production as it occurs. Established inspection methods can intermittently measure pipe wall thickness, but due to the associated costs and safety risks, manual inspections are carried out at infrequent intervals and can require production to be shut-in for 10 May 2015

the duration. What these solutions are unable to do so far is provide an accurate, complete and real-time picture of the levels of corrosion or erosion as these events occur.

As a result, operators only have a snapshot of their asset integrity. With this minimal information, it is almost impossible to predict whether their fixed equipment is good for another five months or another five years. In order to protect asset integrity and mitigate the risk of an infrastructure collapse, conservative production rates and the associated drop in revenues are the norm.

Asset Integrity Transformed Now imagine the transformational effect of using automated sensors permanently attached to strategic points in the infrastructure to take continuous, robust measurements of remaining pipe wall thickness— and using wireless technology to send the gathered data for analysis at a central, safe or convenient location, offshore or onshore. Operators would gain immediate insight into exactly what is happening in their fixed equipment at any given time.

There would be no need for guess work. Data quality would be improved,

since monitors are permanently installed and the frequency of measurement would allow operators to see the wall thickness of the equipment changing as it happens.

They would see how the infrastructure responds to all the unpredictable and generally uncontrollable variables at work within the upstream environment.

They could see what affect an unexpected change in temperature, flow rate or other uncontrolled external variable has. They could assess what changes result from more intense flow rates and understand the precise effects of erosion-mitigating and corrosion 11

PRODUCTION & TRANSPORT

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Month 2014

LEVERAGING INSIGHT TO DRIVE REVENUES

inhibiting strategies— and adjust them as necessary for optimum output.

These kinds of tools, which give operators access to real-time data, can enable them to optimize operational decision-making, leading to improved asset uptime and increased profitability. In this environment, high-quality solutions can make a tangible difference to operator margins.

Reduced Costs, Enhanced Revenues With this type of technology, and the quality and frequency of data it delivers, operators are in a far better position to create a much more costeffective program for monitoring the integrity of their assets. That’s an instant saving on expensive manual inspections and a long-term gain from enhanced asset reliability and availability. Automated monitoring of asset integrity combined with appropriate data analysis also gives operators the confidence to drive their assets harder within the appropriate parameters, for potentially enhanced revenues.

Of course, equipment integrity related to corrosion and erosion

is only one element that operators are currently assessing in the face of lower oil prices. But it’s an area that is attracting attention, not least because it delivers results within a very short timeframe and therefore has an equally short payback period— sometimes within days. That’s an attractive proposition when numerous technologies are vying for attention.

It also taps into a wider movement that is by no means exclusive to oil and gas production. This is the era of big data, and technology that automatically gathers, secures, analyzes and presents data in quickto-understand formats is increasingly available and continuously improving.

History shows us that a drop in oil prices is often a spur to the deployment of innovative technologies and solutions in both upstream and downstream operations. However, developing the ability to extract and exploit previously unavailable data is more than simply another cog in the innovation cycle. It is both the solid foundation for planned developments and an enabler of long-term, strategic decision making in the face of an unpredictable and volatile future.

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BUSINESS & O P E R AT I O N S

CYBERSECUR

AND THE AVOIDA DISASTER IN OIL

If cybersecurity investment isn’t keepin security needs, what does the worst cas W R I T T E N B Y: I A N H A N N E R 14

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RITY

ABLE L & GAS

ng up with the industry’s se scenario look like?

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BUSINESS & O P E R AT I O N S IF ONE SEARCHES Google for significant events that occurred on Aug. 15, 2012, they’d walk away from the task thinking nothing of any particular importance happened— far from a discussion about the lasting effect that that day had on cybersecurity within the energy sector.

That’s the day that a malicious line of code, which has since been dubbed Shamoon, infiltrated the internal network of Saudi Aramco, Saudi Arabia’s national oil and gas company. Whilst replicating itself on each host device, the virus spread throughout the network, indiscriminately deleting huge chunks of data from hard drives and effectively destroying millions of dollars’ worth of hardware.

All in all, the incident is said to have taken nearly two weeks for Saudi Aramco to recover from. That’s a somewhat disturbing fact given that Saudi Aramco distinguished itself in the decade leading up as an early adopter of sound cybersecurity practices, according to Survival: Global Politics and Strategy.

Perhaps more disturbing than the sophistication of the attack that was able to incapacitate them is how little the industry seems to have learned since.

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“The security budgets have been largely static for the last few years,” said Sean Sutton, Ernst & Young’s (EY) global cyber leader for oil and gas. “So despite the fact that the threats are increasing in frequency, getting worse and harder to address and to defend from, it doesn’t look like the pace of security investment is keeping up.”

Sutton coauthored a report recently released by EY that introduced some of the findings of the company’s Global Information Security Survey 2014. That study sought to analyze how prepared the oil industry as a whole is for modern, sophisticated cyber threats. The results weren’t exactly comforting.

According to EY, 61 percent of oil and gas organizations said they think it’s unlikely, or even highly unlikely, that they’d be able to detect an attack.

Further, only 29 percent report access to real-time cybersecurity insights.

The distinction between real-time insights and hindsight metrics— or lag indicators as they’re known— is a nuanced one. Traditional types of analyses might look at a number of factors, such as how many attacks of a certain type were encountered

CYBERSECURITY AND THE AVOIDABLE DISASTER IN OIL & GAS

As the barrier between IT and OT systems erodes, facilities are becoming ever-more susceptible to cyberattacks

in a particular environment within a defined timeframe. That’s a type lag indicator and it’s tremendously important because it allows companies to know whether or not their passive protection is working. “[A lag indicator] doesn’t give you

any visibility as to what the next threat might be or what’s around the corner,” Sutton said. “So this is where threat intelligence is starting to become a more prevalent control and a more prevalent solution within the arsenal of an information 17

BUSINESS & O P E R AT I O N S

C

Michael Schwartz

Server rooms like this one are beginning to resemble battlefields as they become targets for sophisticated attacks. (BAE Systems) security department: trying to get a better understanding of who might be looking to target you as an organization.�

One such group using threat intelligence is BAE Systems, 18

May 2015

Intelligence & Security, the cybersecurity arm of the global defense contractor. According to Peder Jungck, chief technology officer, the company is able to utilize a number of tools, such as social media

CYBERSECURITY AND THE AVOIDABLE DISASTER IN OIL & GAS

and other proprietary programs, to collect intelligence on an adversary group and create profiles that give them insight into who they might attack, how, why and, ideally, when.

“What we find is that in many of

our cases, we can study who would be trying to [make] threats against a system,” Jungck said. “What are they doing? Are they doing for economic reasons? Are they trying to do it for physical damage? You can start to 19

BUSINESS & O P E R AT I O N S

While monitoring technologies are advanced, cyberattacks are rarely detected until the damage is done. (BAE Systems) define where something is going to occur. This is how one starts to defend, by knowing where to look.”

When Jungck talks about physical damage, that isn’t meant as a loose term to describe corruption on 20

May 2015

computer networks—he means literal, real-world physical damage. That’s possible due to the slow erosion of a long-standing barrier between information technology (IT) and operational technology (OT) systems.

CYBERSECURITY AND THE AVOIDABLE DISASTER IN OIL & GAS

To understand the two, think of IT as everything within a company’s network that most employees tend to interact with on a daily basis. It’s the shared drives that allow access to documents throughout the company.

It’s the email systems that allow employees to communicate and share the latest Youtube videos. In a nutshell, IT is everything computerrelated that a typical user interacts with on a daily basis.

Saudi Aramco’s encounter with Shamoon was centered around IT systems.

OT, on the other hand, is the term related to the core systems that monitor and/or control complex processes and infrastructure. Take for example oil pipelines, which utilize highly sophisticated supervisory control and data acquisition (SCADA) systems to regulate the flow of fluids, while monitoring for potential problems such as loss— or build up— of pressure or, on the extreme end, structural breaches.

In the past, OT systems were completely isolated from IT systems and the internet as a means of restricting access to authorized control terminals. While that’s still the

case in many places, technologies designed to improve efficiency have slowly broken down many of the barriers previously relied upon, leaving a good deal of OT systems exposed, although typically wellhidden, according to Jungck.

So if these systems control highly sensitive processes governing the effective operations of some of the most expansive companies in the world, what does a worst case scenario for a cybersecurity breach within oil and gas look like?

“When you look at a sector like finance, for example, their worst case scenario is an economic impact.

That is the best case scenario for an oil and gas company,” said David Reynolds, director of strategy and planning at BAE Systems, Intelligence & Security. “These systems are so complex and run so smoothly when everything is running well, but it only takes one little tweak in terms of a pressure gauge or in terms of how quickly something is rotating. There’s literally thousands and thousands of things that somebody can go in and touch, and any one can have a massive impact.”

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TOP 10

TOP 10 MOST WELLCEOs IN OIL With incomes in the millions of dollars, these 10 men are the most well-paid CEOs in the oil and gas industry.

Written by: Ian Hanner

-PAID & GAS 23

TOP 10 Oil has long been associated with imminent prosperity—an idea so pervasive that it’s been something of a cultural cliché for years.

Take for example the Beverly Hillbillies, whose lives were so instantly turned around by the wealth that striking oil bestowed upon them that they were transplanted to Beverly Hills, one of America’s most enduring symbols of wealth. But while there were plenty of real life overnight millionaires in the early days or oil and gas exploration in America, those days are dwindling.

That’s not to say there still isn’t tremendous amount of money to be made in the petroleum sector, only today getting rich doesn’t depend as much on being lucky.

That’s because today, oil and gas companies handsomely reward those in the driver’s seat of the organization— their chief executives— extraordinarily well.

To get a sense of the kind of wealth that comes with being the CEO of a major oil and gas company in the 21st century, Exploration World took a look at some of the top earners in the 24 May 2015

world for the sector. These are the results we found, according to data from OilPrice, Forbes, Salary. com and AFL-CIO. All income estimates are for 2013 or 2014.

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David Lesar, Halliburton – $20.710 million

David Lesar has had an extremely impactful 14-plus years in charge of Halliburton.

Successfully navigating the company through several instances of extreme controversy in that time, he now leads the charge to acquire Baker-Hughes, one of Halliburton’s foremost competitors. Lesar, 61, had an income of approximately $20.710 million in 2013.

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Robert D. Lawler, Chesapeake Energy Corp.

– $22.423 million

Robert Lawler, 47, has a decorated history within oil and gas. CEO of Chesapeake Energy since June

T O P 1 0 M O S T W E L L - PA I D C E O S I N O I L & G A S

Robert Lawler, CEO of Chesapeake Energy.

(Chesapeake Energy Corp.)

2013, the executive has served in a variety of roles throughout the industry, but only in a few companies: Kerr-McGee from 1988 until it was acquired by Anadarko Petroleum Corp, where he stayed until 2013. Lawler holds a Bachelor of Science degree in Petroleum Engineering from the Colorado School of Mines and an MBA from Rice University.

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Paal Kibsgaard, Schlumberger – $22.838 million Paal Kibsgaard, 46, has been at the helm of Schlumberger since

August 2011 after serving in the role of COO. Earlier in his career, Kibsgaard worked for ExxonMobil, serving in various capacities in Norway and Australia. He has been with Schlumberger since 1997, having joined as an ID reservoir engineer, according to Bloomberg Business. Kibsgaard has a combined income of roughly $22.838, according to OilPrice.

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John S. Watson, Chevron Corp – $24.017 million

John Watson is a well known name among those who study the oil and gas industry. In the driver’s seat of Chevron, one of the most influential oil companies in the world, Watson is steering the

John Watson, CEO of Chevron.

(Chevron) 25

TOP 10 company toward its goal of producing 3.3 million barrels of oil equivalent per day by 2017. It’s likely the company will hit that target, with several major projects coming online in the Gulf of Mexico in 2014 and early 2015.

Watson had a combined income of about $24.017 million in 2013, according to AFL-CIO.

6

Rex W. Tillerson, ExxonMobil Corp.

– $28.138 million

Rex Tillerson, much like Watson, is one of the most iconic CEOs in the global oil and gas industry. In charge

Robert Lawler, CEO of Chesapeake Energy. (Chesapeake Energy Corp.)

Rex Tillerson, CEO of ExxonMobil.

(ExxonMobil) 26 May 2015

of one of the most powerful companies in the world, Tillerson is said to have a tremendous amount of sway on energy policy, especially in Russia where he’s rumored to have an unusually influential relationship with President Vladimir Putin. Tillerson had a combined income of about $28.138 million in 2013.

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Clarence P. Cazalot, Jr., Marathon Oil – $43.700 million

Clarence Cazlot served as the chief executive and president of Marathon Oil from January 2002 until August 2013. The 63-year-old started his career in oil back in 1972 when he joined Texaco as a geophysicist. He currently serves on the board of directors for a number of companies, including Baker Hughes and FMC Technologies, as well as a number of other boards such as the U.S.Saudi Arabian Business Council.

According to OilPrice, Cazalot’s combined income was roughly $43.700 million.

T O P 1 0 M O S T W E L L - PA I D C E O S I N O I L & G A S

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Richard Kinder, Kinder Morgan – $60.900 million

Richard Kinder, 70, was the president of Enron until 1997 when he stepped down and founded Kinder Morgan, an oil and gas pipeline developer. Today, Kinder Morgan is the largest pipeline company in the United States, according to Forbes. Forbes also ranked Kinder 100 on their list of the top 100 billionaires in the world, making him the 39th richest person in the United States. While OilPrice estimated his income between 2013

Richard Kinder. Photo by Richard Carson, Reuters

and 2014 to be about $60.900 million, his total net worth as of April 9 is $12.1 billion, according to Forbes.

3

Anthony G. Petrello, Nabors Industries – $68.246 million

Anthony Petrello, 59, didn’t actually get his start in oil, having worked at law firm Baker & McKenzie from 1979 to 1991. In 1991, he became the chief operating officer for Nabors Industries, before rising through the ranks to become president in 1992 and then CEO in 2011.

Since June 2012, Petrello has also served as the chairman of Nabors Industries. Bloomberg Business and AFL-CIO estimated Petrello’s combined income at about $68.246 million. He holds degrees from Harvard Law School and Yale University.

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Tom Ward, Sandridge Energy – $71.120 million

Tom Ward founded Sandridge 27

TOP 10 Energy in 2006, another in a line of businesses founded (or cofounded) by ward, including Chesapeake Energy and Tapstone Energy. Ward was the chairman and CEO of Sandridge from its founding until June 2013, when he was ousted by a “shareholder revolt by activist hedge fund TPG-Axon headed by Mr. Dinakar Singh,” according to Forbes. While his estimated combined income in 2013 was around $71.120 million, that does not include a severance pay of roughly $90.9 million he reportedly received after being forced out. Today Ward serves as CEO of Tapstone Energy.

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Charif Souki, Cheniere Energy – $141.949 million

Charif Souki has served as president and CEO of Cheniere Energy since December 2002.

According to the company’s website, Souki stepped down from the role of president in 2005, but was later reelected to the position in 2008. Souki also serves as the chairman of the board of directors 28 May 2015

for Cheniere Energy, a company largely dedicated to natural gas operations—specifically, liquefied natural gas (LNG). The company has been developing the highly anticipated Sabine Pass LNG facility, previously ranked the largest LNG project in the world by Exploration World. Cheniere Energy recently received approval from federal regulators to add another two liquefaction trains to the Sabine Pass facility, effectively increasing its liquefaction capacity by 50 percent.

Souki had an income of about $141.949 million in 2013, giving him the highest income of not just any CEO in the oil and gas industry, but of all U.S.-based publicly traded companies, according to Forbes.

Charif Souki, Chief Executive Officer of Cheniere Energy Inc. Photographer: Sonja Y. Foster/Bloomberg

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Petro Star

An Alaskan Refiner for Alaskans Since 1984, Petro Star has been faithfully serving its very niche market in Alaska.

Written by: Ian Hanner Produced by: James Hayes

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P E T R O S TA R

North Pole Refinery Truck Loading Facility

I

f you don’t live in Alaska, you may not know the name Petro Star; but if you do live there, there’s a significant chance that you have them to thank for heating your home in the winter.

Petro Star was founded in 1984 in a state more than twice the size of Texas. Servicing an extremely diverse area – in terms of geography andenvironment , the company has been geared toward filling a very specific role in the Alaskan market from the very beginning.

“While other [Alaskan] refineries were processing a wide variety of petroleum products, Petro Star’s 32

May 2015

founders recognized the need for a refinery that would process middle distillates such as heating oil, diesel and aviation fuels for homes and businesses in Alaska,” the company’s website states.

While their business has evolved greatly since then, that mission still remains the core of their operations, according to Mark John, Vice President of Business Development and Marketing. He said Petro Star got its start when two enterprising employees who worked at a refinery in North Pole, Alaska , saw a need for a home-grown refining company that specialized in the

E X P L O R AT I O N W O R L D

Bulk storage at the Petro Star Refinery in North Pole Alaska.

needs of Alaskans and lacked the bureaucracy that came with some large, Lower 48 corporations.

“So these two gentlemen went off and raised some money to put up a plant, basically, right next door to the refinery where they used to work,” John said. “It was really to fill a need in that market, which at the time, was predominantly heating oil for the Interior of Alaska and diesel fuel destined for the North Slope.

Soon thereafter, jet fuel sales to the military took on a far greater significance.” Ultimately, one of Petro Star’s original investors, Arctic Slope Regional Corporation (an

Alaska Native Corporation), became the sole owner, giving Petro Star the financial strength and leadership necessary to expand its operations.

To understand the growth Petro Star has experienced over the years, you have to understand the needs of Alaska— the United States’ most remote state. While other refineries tend to process a wide range of products from their supply of crude oil, Petro Star sticks to middle of the barrel—that’s products in the diesel and jet fuel range.

Today a large part of the company’s business comes from sales of aviation fuels to both the w w w. p e t r o s t a r. c o m

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P E T R O S TA R private sector and the military in the region.

Petro Star is the largest supplier of fuel to the U.S. military in the State of Alaska, producing JP8— an aviation fuel— to Eielson Air Force Base in North Pole and Joint Base Elmendorf-Richardson in Anchorage. They also produce JP-4—a low freeze point helicopter fuel of which Petro Star is the only refiner in the U. S. that produces this product—and JP-5, a low volatility jet fuel which the Coast Guard and Navy use predominantly onboard ships.

While primarily a refining company, Petro Star also operates a number of retail and marketing operations that serve markets across the State of Alaska.

So while it’s clear that Petro Star serves a very niche market in the region, it might seem at face value that they have little room to expand in Alaska without a dramatic increase in demand. That is far from the case, according to John.

“Room to grow for us means expanding our current production of similar products and actually looking at some new products,” he

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said. “Those products would be made from utilizing different parts of the barrel besides the diesel part, whether that’s the heavier part of the barrel or possibly the lighter end of the barrel. Alaska is driven by the price of crude so the economy here is dependent on that price, but we are definitely more in a growth mode now than we have been for a while.”

What’s driving some of that growth is the recent changes in market due to a shuttered refinery.

When Flint Hills Resources ceased refining operations in 2014 and converted the site into a terminal, they took offline one of the larger refineries in the state. That 37-yearold facility was much larger than the Petro Star refineries, meaning that Flint Hills left behind an underserved market.

“We’re trying to make sure that we can serve our existing customers and expand to meet any potential new demand in Alaska” John said. “So that’s been our focus for the last year.”

That’s a tall order, but John said that Petro Star’s two refineries— two of three remaining in the state— are up to the challenge. w w w. p e t r o s t a r. c o m

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P E T R O S TA R

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E X P L O R AT I O N W O R L D

For some fundamentals, Petro Star operates two refineries in Alaska: the North Pole and Valdez refineries, which respectively, can process 22,000 and 60,000 barrels per day of Alaska North Slope crude oil, drawn directly off the Trans-Alaska Pipeline System (TAPS). Of that oil, about 2530 percent is used for the company’s range of products and refinery fuel, with the remaining volume being sent back into TAPS. While the company has been successful in Alaska, there are no current plans to expand outside the state’s borders and John said the company will remain focused on the state’s market for the foreseeable future.

“Alaska is such a big place that just doing business here is like someone in the Lower 48 covering a large part of the U.S.,” he said. “We have an operation out in Dutch Harbor and Dutch Harbor is 1260 miles from Petro Star’s Valdez refinery. Our parent company is based in Barrow and if you look at a map, that’s at the very, very top of Alaska, and they actually barge fuel clear up there. So right now the current plan is to stay Alaskan-based.”

Company Information INDUSTRY

Oil Refining, Marketing HEADQUARTERS

3900 C Street Suite 802 Anchorage, Alaska, United States FOUNDED

1984 EMPLOYEES

Not Disclosed REVENUE

Not Disclosed

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A Global Perspective ensures success for SPECIALIST SERVICES Written by: Nye Longman Produced by: Heykel Ouni

20 Man Accommodation for SBM 39

SPECIALIST SERVICES

MWD units for Oceaneering

The supplier to the oil and gas industry has cemented its place in the Middle East through a careful, multifaceted strategy

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pecialist Services was founded in 1982 to supply the Middle Eastern oil and gas industries with modular buildings and equipment packaging solutions. Since then it has grown to a truly international level, with operations in Dubai, Abu Dhabi, Aberdeen, Singapore and Perth, and a greatly increased portfolio of specialist products and services. CEO Ian Rogers has been with the firm for over 5 years and has extensive experience working in its key operational territories.

Alongside the offshore building solutions that helped Specialist Services make its name, the company also provides drilling, testing and production products, service, maintenance, spare parts, and modular buildings for hire. Understandably, the company

E X P L O R AT I O N

provides services to organisations in oil-rich countries, particularly Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates (UAE).

The strategic acquisition of Aberdeenbased Labtech Services Limited three years ago endowed Specialist Services with a subsidiary that not only had longstanding experience supplying modular buildings to the oil and gas sector, but with a Western hub capable of servicing the UK, much of Europe, and Scandinavia.

Through its acquisition of Labtech, to starting from scratch in Singapore, Specialist Services has built a solid network that now covers Europe, the Middle and Far East. Rogers summed up his company’s deceptively simple strategy, “If we are going to meet and exceed the expectations of our

Specialist Services new 33ft Accommodation Module - Modular Hire

Early Production Facility for FODE

w w w. s p e c s e r v e . c o m

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SPECIALIST SERVICES clients we need to be present in those markets, and we have a geographic strategy such that we can deliver on our client’s requirements.”

Ian Rogers, CEO

Safety in numbers Ensuring the wellbeing of its staff is not simply an HR issue for Specialist Services; it can actually be a matter of life or death due to the nature of the oil and gas industry. In addition to its compliance with the ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 initiatives, the company has its own unique methods for ensuring employee safety. Rogers said: “I regularly visit our workers accommodation to check food quality, cleanliness, whether people have hot water, and generally that people are being well looked after.

We know from experience that if an employee is well fed and well rested they are much less likely to have an accident.”

Rogers said that very soon the company will have gone 500,000 man hours without the occurrence of a lost-time incident on an EPC project for Petrofac/Zadco in Abu Dhabi, which goes to show that management’s personal involvement in safety measures is

“Through its acquisition of Labtech, to starting from scratch in Singapore, Specialist Services has built a solid network that now covers Europe, the Middle and Far East” – Ian Rogers, CEO 42

May 2015

E X P L O R AT I O N

Power Skids for SIEMENS

certainly paying off. Furthermore, the Dubai Municipality for Health and Safety recognised the company’s approach to safety in 2014, awarding it with role model status specifically for its management of occupational health and safety. Rogers received an award on behalf of the company for their participation in a Health, Safety and Environment Week hosted by Yokogawa Middle East and Africa.

Aside from making sure its employees are safe and well catered for, Specialist Services makes sure that employees who champion safety are trumpeted throughout the business; it provides long term loyalty packages, in addition to awarding competency-based bonus payments to its employees to ensure a motivated team.

500k The number of man hours without lost-time incident on the Petrofac/ Zadco project

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Specialists in Combined Pressurisation, Fire & Gas Control Systems (CPFG) Supply, Manufacture & Installation of ATEX and IECEx Control Systems

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

E X P L O R AT I O N

Crude Oil Custody Transfer Metering System for Emerson

Investing in the future Specialist Services has made major changes to its operational capabilities, leveraging new developments in software to improve efficiency across multiple levels of the business. Recently, the company rolled out Microsoft Dynamics AX across the whole company in order to provide a single, centralised port of call for resource planning, Rogers said, “We are finding that’s enabled us to scale up the organisation and get away from multiple excel spreadsheets that other businesses use.”

The company are also in the process of deploying a competency-based HR management

“We’ve got a significant number of engineers so we can design and engineer solutions for our clients, so we aren’t just a fabricator” – Ian Rogers, CEO

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SPECIALIST SERVICES

Service and Maintenance Team

MWD units for Oceaneering

46

May 2015

software system, Rogers commented: “We use competencies for performance enhancement, learning development, to drive recruitment and selection, and for strategic HR planning.

This will help us develop our employees, as well as manage employee resources.”

Specialist Services has a willingness to use new technology which does not stop at a single operation within the business – it is a company willing to roll out the best solutions to cover as much as the company as possible.

This attitude has also influenced the company’s approach to its products, specifically with the creation of its new G4 modular building which is currently the only module to comply with the four major certifications, in accordance with oil industry standards, European law, North

E X P L O R AT I O N

American regulations, and global directives.

This innovation allows a Specialist Services client to manage its offshore pressurized building fleet at a truly international level, without having to make any modifications or navigate through layers of red tape. Rogers was keen to highlight the successes of his team, he said: “We’ve got a significant number of engineers so we can design and engineer solutions for our clients, so we aren’t just a fabricator.”

Spending money is not a taboo subject for Ian Rogers; investing in the operational capacity of his company is a source of much pride. He said, “We’ve invested very heavily in yard facilities, particularly in the Middle East; we now have six yards in Dubai and Abu Dhabi combined.

We are building greater numbers of office, workshop and accommodation units and are investing in geographic expansion to support our clients. The Modular Hire fleet will have around $5 million invested in this calendar year.”

Specialist Services survived the 2008-9 financial crisis and came out fighting, which is how Ian Rogers predicts the company will weather the current oil price slump, he even admitted, “Our EPC yards, they are so busy it’s hard to find how we can do more work.” It is therefore becoming clear that dedication to employee wellbeing, as well as having the courage to invest across the board is proving to be an equation for a sustained, successful performance.

Company Information INDUSTRY

Oil and Gas HEADQUARTERS

Dubai FOUNDED

1982 EMPLOYEES

1250 REVENUE

Undisclosed PRODUCTS/ SERVICES

Exploration Services, Modular Buildings, International Carrying, EPC containers, Health and Safety

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NIGERDOCK

West Africa’s Leading Oil & Gas Services Company Written by: Sam Jermy Produced by: Richard Deane

49

NIGERDOCK The company, which is strategically located on Snake Island Integrated Free Zone in Lagos, focuses on upstream oil and gas services (EPC- Green&Brownfield Projects); Marine Services (Ship Repair & maintenance); Base Support services (Logistics, accommodation, catering, Real estate); Training and Development services (Welding, Fabrication, Machining, HSE, etc).

N

Meji Platform - Chevron

50

May 2015

igerdock is West Africa’s leading indigenous upstream oil and gas services company focused on Oil & Gas construction and marine services including offshore fabrication, ship building and repair, industrial training and specialised Oil & Gas and Maritime support. It is strategically located on Snake Island Integrated Free Zone, in Lagos, with immediate access to the open seas.

Snake Island Integrated Free Zone is a leading West African industrial development. Focused on Maritime and Oil & Gas Services and Operations, it offers tremendous opportunities for International Businesses to participate in Nigerian and West African Deepwater Projects.

The company said: “We lead the development of Nigerian content in our industries, achieve operational excellence and growth by

EXCELLENCE DELIVERED

Snake Island Integrated Free Zone

continuously training our workforce and investing in technological resources enabling us to deliver value to our shareholders, customers, employees and the nation.

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery.”

Company Vision Nigerdock plans to create and operate a fully functional support centre to the Deepwater Oil and Gas Industry in Nigeria, through the active attraction of investment and creation of employment opportunities resulting from the progressive development of an efficient, secure,

“Nigerdock adds value to the Nigerian Oil and Gas and Mariitime Industries” -Nigerdock

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+234 (0)84-301-858 • +234 (0)803 500 6525 info@inspe

A ONE-STOP SHOP FOR ALL YOUR

TESTING & INSPECTION NEEDS

Core Values The ITL Brand is unique because we are a God-fearing people willing to go the extra mile any time, any day. We are resilient and adaptable to the needs of our client and show transparency with moral ethics in our business dealings. Above all we always put ourselves in our client’s shoes to better understand and meet his or her needs.

Km 1 Eleme-Onne Road • Off Eleme Junction Flyover • Opposite Bristow Quarters • P.O.Box 5

ectionandtests.com www.inspectionandtests.com

Who are we?

Founded in 1997 by seasoned professionals, INSPECTION AND TESTS NIGERIA LIMITED (ITL), an ISO 9001-2008 Certified Company, has become a topmost local brand with both an international outlook and a multinational reach – Ghana & USA, and various Nigerian branches.

testing to above 20,000 Psi, Post Weld Heat Treatment as well as Training and Manpower development in Welding Inspection and other Engineering Supervision scopes such as AWS, API & PCN Schemes & Welder Training to IIW Schemes under NIW

Multiplying her tentacles of services from quality control, quality assurance and non-destructive testing services to allied and complementary services in the oil, gas, marine and energy industries – including integrity assessment, technical integrity verification, blasting, painting and corrosion control services, lifting inspection, shop floor & expediting, PMI, OCTG Controls, testing & management, pressure

Our Destructive Testing Laboratory is in a class of its own and offers all that is needed to qualify both welder and procedure for any project scope and specification, manned by mature professionals operating up-to-date ultramodern equipment. Our personnel are trained to the best schemes and levels obtainable in the industry and we are proud of their tenacity of purpose and commitment to professionalism and ethics.

5064 • Port Harcourt • Rivers State • Nigeria

SUPPLIERPROFILE

INSPECTIONANDTESTS NIGERIA LIMITED Inspection and Tests Nigeria Limited (ITL) is an ISO 9001- 2008 certified Company involved in Quality Assurance, Quality Control, Project Management, Technical Integrity Verification (TIV), As-Built Verification, Pre-Commissioning & Commissioning Inspection, Material Verification, Boroscopic Examination, Positive Metal Identification (PMI), Leak Testing, Tank Calibration & Measurements, Tank & Tank Floor Inspection, Valves inspection, Corrosion Mapping, Buried Lines identification, Pre & Post Weld Heat Treatment, Pressure Testing, Vacuum Box Inspection, as well as blasting/painting of facilities onshore/offshore.

We also conduct Lifting Inspection for Offshore Containers/accessories and handle Tubular (OCTG) management and inspection to relevant specifications. We carry out basic Nondestructive & Destructive Testing for onshore/offshore operations. Our NDT capabilities include Ultrasonic Flaw Detection, Industrial Radiography, Magnetic Particle Inspection, Dye ! Penetrant Inspection, etc while our Destructive Testing covers Charpy V-Notch, Bend, Tensile, Compression, Hardness, Macro & Micrography, etc.

COMPANY PROF We also conduct advanced inspection and testing services including AUT, PAUT, Eddy Current, etc.

We also conduct various Training and Manpower Development for the Oil, Gas, Marine and Power industries, including QA/QC management, API & NDT Training and Certification, and in collaboration with our Joint Venture partners. Welding Institute of UK (TWI), we conduct welding inspection training to internationally recognised certification. (CSWIP)

NIGERDOCK

EXCELLENCE DELIVERED

commercially effective support infrastructure, and its continued cost-efficient operation.

The organisation’s training school offers world class training of personnel in the fields of Welding, Pipefitting, Plating and Machining. The Training School has been selected as a centre in Nigeria for the training and certification of welders to International Standards. This programme is being coordinated by the Nigerian National Petroleum Corporation (NNPC) and actively supported by stakeholders in the Industry. It is part of the Federal Government’s Nigerian Content Development Policy for the Oil and Gas Industry.

“The Training School has fully equipped classrooms which can be utilised for most training requirements including Rigging, Safety,

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery” – Nigerdock

Bonga FPSO - Shell

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About U

Wellmann gr shop supply Front end En Heavy lift, W out operatio competent p own and ope trailers(SPMT modular Jac

We Specialise In • • • • • •

Ballast Operations Heavy Lift Operations Modular Weighing & Jacking Marine Logistics & Cargo Barges Land Reclamation & Creek Improvement Front End Engineering Design

Our Partners

B

T 053-321788 F 053-321789 M 08023324933 info@wellmanngroup.com www.wellmanngroup.com

Us

roup offer a one stop y chain solution comprising ngineering and Calculation, Weighing, Jacking, Load ons utilizing skilled and personnel. wellmann also erate Self-propelled modular T),offshore barges, and cking and weighing systems.

Block 22 • N.P.A Housing Estate • Airport Road • Warri-Delta State • Nigeria

SUPPLIERPROFILE

THE WELLMANN GROUP The Wellmann Group evolved in 1991 as a result of successful completion of high profile projects in the Oil and Gas industry, utilizing the resources and expertise of local and international companies.

This evolution has resulted in the current group capacity to undertake major projects in Fronts end engineering, Heavy lift, Marine movement, Modular Jacking and Weighing System. Other members of the group are Pritod Construction, Brazerville International and limelight Entrepreneurs.

She owns and operates a vast fleet of self propelled modular trailers, offshore Barges, synchronized Jacking/Weighing System, Mooring Winches and Ballast pumps. The Wellmann Group have delivered on the following projects, to mention but a few are ; Chevron Agbami FPSO Project, Snepco Bonga FPSO Project, Chevron EGTL Project, Total Ofon Project, Chevron EGP3 Project, Total Usan FPSO Project, Shell Ovhor Concrete Barge Towage, ExxonMobil Satellite Field Project, Chevron Didbi & Olero Concerte Barge Towage and Total OWL Module Loadout etc.

CEO/Founder Chris iyovwaye is a graduate of international studies and diplomacy from university of Benin Nigeria. He hails from Delta State Nigeria and speaks English fluently.

Website: www.wellmanngroup.com

NIGERDOCK

EXCELLENCE DELIVERED

Adriatic VIII Refurbishment - Transocean

Quality and First Aid. It has the ability to train and test Welders in SMAW, MMAW, FCAW and TIG processes, in all positions and to any Client’s requirements whilst certifying to Lloyds, ABS and DNV standards. All trainees must attend a thorough induction program including basic safety and quality training.� the management commented.

Pipefitters and platers are trained in practical and theoretical fabrication techniques including manual and machine burning and cutting, layouts and fit-ups, auto-levelling, measuring, preparation methods and tacking.

Machinists are trained in manual and semiautomatic processes including detailed marking out, turning and screw threading on lathes, metal

Eiffel Living Quarters - Total

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NIGERDOCK

1990-2015

POWER GENERATION, TRANSMISSION AND DISTRIBUTION

25

th

Anniversary

BUILDING SEVICES

M E P CONSTRUCTION

Devoted to the development and prosperity of NIGERIA WATER TREATMENT

HEAD OFFICE

6 0 March 2015 INDUSTRIAL PLANTS

Abuja 138 Aminu Kano Crescent, Wuse II, FCT Abuja, Nigeria Tel: +234 (0)9 461 1362 Fax: +234 (0)9 461 1364

Lagos 269B Kofo Abayomi Street, Victoria Island, Lagos, Nigeria Tel: +234 (0)1 271 4167 Fax: +234 (0)1 271 4168

office@energonigeria.com

www.energonigeria.com

NIGERDOCK

EXCELLENCE DELIVERED

joining through processes, machining of intricate components, sinking dies, cutting of Gears and machining of bushings and eccentric turning.

Atlantic Aviation Free Zone Enterprise is a Nigerian helicopter services company dedicated to providing safe and efficient aviation support by adhering to the highest standards of integrity and quality.

It is dedicated to serving Nigeria’s offshore oil & gas industry to provide transportation to platforms and other offshore installations, helicopter maintenance repair & overhaul, and Search & Rescue (SAR) operations.

Operations Nigerdock is the leading EPC (Engineering, Procurement and Construction) contractor,

Atlantic Aviation Free Zone Enterprise

SUPPLIERPROFILE

ENERGO

Energo Nigeria-Ltd. is a private, engineering & contracting company founded in 1990. Years of experience has taught us to be fast and agile, keen and smart to take chances and stand for what we believe in - Create value for all our stakeholders.Responding to the needs of electric-power providers, industries, Government and Public authorities in Nigeria and worldwide Address: Aminu Kano Crescent No.138, Wuse 2, Abuja Tel: +234 9 4611362 Fax: +234 9 4611364 Email: office@energonigeria.com

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NIGERDOCK

West Africa’s Leading Oil & Gas Services Company

“We have the best Training School in the country constantly training the Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffold¬ers and Riggers to the highest levels” – Nigerdock 62

May 2015

specialised in the fabrication of topside mod¬ules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes, and double joints.

It also specialised in offshore installa¬tions of pipe spools, supports, platforms and heat shielding including pipe coating and the installation of MOV’s, flowmeters, P&T transmitters, and F&G detection systems.

Management said: “We have the best Training School in the country constantly training the

EXCELLENCE DELIVERED

25,000DWT Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffolders and Riggers to the highest levels. This attains the best capability and expertise that are required to deliver in accordance with international quality and safety standards. Our team is sprinkled with National and International expertise and experience deliver projects safely, on time and within budget. “The Pressure Vessel Division has the resources to manufacture pressure vesÂŹsels, columns, drums and process plant packages for the

Size of Nigerdocks graving dry dock

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63

E20001-F150-M117-V1-7600

NIGERDOCK

Productive plants don’t have to run around the clock, they just have to run efficiently.

Realize the potential of energy-efficient solutions more quickly siemens.com/energy-efficient-production

More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex production processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standardized data interface ensures that power consumers can be

64

switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.

March 2015

Answers for industry.

NIGERDOCK

EXCELLENCE DELIVERED

Oil & Gas Industry and is ASME U & R Stamp Certified. Process modules and large skid packages are also manufactured in conjunction with the Offshore Fabrication Division.

“The company as a whole is capable of producing design engineering to all international codes of construction and has recently invested in new plant & equipment including a CNC plate cutting machine, plate rolling to 100mm thick, columns & booms for semi-automatic welding techniques, rotators, a pipe profiling machine and more all in accordance with the latest technology.”

Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa with an out-

Dry Dock

Ofon Phase II Projects

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65

Avoid costly delays.

Partner with us and reduce your downtime for scheduled maintenance and unforeseen shutdowns of your processing assets.

Our integrated nitrogen, cleaning, and drying process maintenance services are designed to do one thing: get you back up and running as fast as possible. And our multi-skilled experts have the experience and proven capability to engineer safe, reliable solutions to shorten your project schedule and recover downtime and financial losses.

Visit BakerHughes.com/PPS to learn how our certified project managers can optimize your maintenance objectives so you avoid costly delays.

Š 2015 Baker Hughes Incorporated. All Rights Reserved. 42753 02/2015

NIGERDOCK

EXCELLENCE DELIVERED

standing history in the marine industry. It is specialised in the fields of ship building, ship repair, maintenance and refurbishment.

It has a 25,000DWT graving dry dock, a 3,500DWT floating dock, quayside facilities and weather proof multipurpose workshops.

Not satisfied with standing still, the company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels. The shipyard management is focused on offering its clients the highest level of service and to consistently improve on its quality and level of workmanship.

SUPPLIERPROFILE

‘The company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels’

BAKER HUGHES

Baker Hughes Process and Pipeline Services (PPS) is the world’s leading service provider for process and pipeline pre-commissioning, maintenance and inspection applications. For over forty years, a staff of more than 1000 professionals, over forty bases worldwide, and the industry’s largest fleet of process and pipeline equipment has delivered a prompt, reliable response to our clients’ needs, combining expertise with advanced technologies for effective cleaning, drying, testing and inspecting process and pipeline systems. We have introduced many ground-breaking services to the process and pipeline industry: nitrogen/ helium leak testing, foam inerting and, more recently, hybrid cooldown technology for process plants.

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NIGERDOCK

SUPPLYING SUPPLYING THE THEFUTURE FUTURE OF OFINDUSTRY INDUSTRY

www.traverrse.com www.traverrse.com info@traverrse.com info@traverrse.com

The The Traverrse Traverrse brand brand isis synonymous synonymous with safety, quality and comfort with safety, quality and comfortand andisis trusted trustedby byworkmen workmenworldwide. worldwide.

OAASIS OAASISGroup GroupLtd, Ltd,aaDistributionNOW DistributionNOWcompany, company,isisaaleading leading distributor distributorofofPPE PPEand andMRO MROequipment equipmenttotoclients clientsininon onand and offshore offshoreindustrial industrialsectors. sectors.

OAASIS OAASISisisan anoffi official cialdistributor distributorofofthe theTraverrse TraverrseSafety SafetyWorkwear Workwear brand, brand,providing providingcost costeffective effectivesolutions solutionsfor forthe thesupply supplyofofhigh high quality qualityworkwear workwearand andPPE. PPE. Contact ContactOAASIS OAASISGroup Groupnow nowfor formore moreinformation. information.

Great GreatYarmouth Yarmouth

Aberdeen Aberdeen

Hand HandProtection Protection Protective ProtectiveEyewear Eyewear Safety SafetyFootwear Footwear Safety SafetyWorkwear Workwear Personal PersonalProtection Protection Kitbags Kitbags

Merchants Atlas MerchantsHouse, House,Gapton GaptonHall HallRoad, Road, AtlasHouse, House,Greenbank GreenbankCrescent, Crescent, Great GreatYarmouth, Yarmouth,Norfolk.

Norfolk.NR31 NR310NL 0NL East EastTullos TullosInd IndEst, Est,Aberdeen.

Aberdeen.AB12 AB123BG 3BG +44 +44 +44(0)(0)1493 1493660690 660690 +44(0)(0)1224 1224893332 893332

www.oaasisgroup.com www.oaasisgroup.com | | sales@oaasisgroup.com sales@oaasisgroup.com

View Viewthe thefull fullrange rangeonline: online: www.traverrse.com www.traverrse.com

Trobatt Technical Company Limited Trobatt specialises in electrical, instrumentation and telecoms construction and maintenance for the oil and gas industries in Nigeria.

080 3583 1403 080 5540 7428 trobatttech.co.ltd@gmail.com

NIGERDOCK

EXCELLENCE DELIVERED

Collaborations Skillbase is a part of Jagal Energy, owners of Nigerdock Nigeria PLC, also located within Snake Island Integrated Free Zone, and an integral part of the Snake Island DISC (Deepwater Integrated Support Centre) Concept. Skillbase is a costefficient logistics hub at the heart of a service centre for the oil & gas industry. It is a model of oil industry design and planning, bringing services and suppliers together on a single site, linked to deepwater quaysides with capacity to handle supply vessels and cargo imports simultaneously.

Skillbase is designed to support exploration and development drilling, subsea construction and maintenance, FPSO Module Assembly and

Bonga Deepwater Buoy - Shell

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MUDIAME INTERNATIONAL LTD

QUALITY IN ALL ONE STOP LABORATORY Mudiame is a one stop Laboratory that offers Mechanical Destructive and Non Destructive Testing, Corrosion Testing, Calibration, Inspection Services, Civil Material Analysis, Training and Certification.

234 8103 56 7175 info@mudiame.com mudiame02@yahoo.com www.mudiame.com

MUDIAME INTERNATIONAL LIMITED 105 IGBO-ETCHE ROAD, OPPOSITE ENARCO RUMUOKWURUSHI, PORT HARCOURT, RIVERS STATE, NIGERIA

Promoting Excellence Through Quality • Heavy Transportation • Insulation Services • Material Inspection • Non Destructive Testing • Lifting Equipment Inspection Contact Us +234 806 822 3540 fairtex@ymail.com jacob@fairtex.com.ng www.fairtex.com.ng

• Heavy Weighing • Fabrication • Load-out • Ballasting • Mooring

Operations Office No.310 Port Harcourt Aba Expressway Port Harcourt River State

Admin Office No.4 Green Village Estate Road

By Ap Filling Station Off Akpajo/Elelenwo Road Port Harcourt, River State

NIGERDOCK

EXCELLENCE DELIVERED

Hook Up, Operations and Maintenance, Integrated Project Teams with offices, accommodation and passenger and material transport links.

In July 2008, Mobil (MPN) in joint venture with the Nigeria National Petroleum Company (NNPC) awarded the procurement and fabrication of Abang and Itut well platforms as part of the Satellite Field Development Project Phase 1 in OMLs 67 and 70.

The project is the first of its kind to be executed in Nigeria where two complete platforms (from mudmat to helideck) are fabricated simultaneously incountry. The scope of work comprised of jackets/ appurtenances, piles, subsea templates, topsides/ associated skids and E&I systems fabrication.

Nigerdock collaberated to refurbish a 16,000 ton rig, a first of its kind in Nigeria.

Satellite Field Projects - Mobil

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AFRICA’S FUTURE ENERGY PROVIDER Fabrication & Construction Electrical & Instrumentation Cathodic Protection Inspection Services Calibration Services Manpower Supply Procurement

WE ARE 100% NIGERIAN OWNED

+234 803 4022 427 +234 809 3964 682 www.petroequipmentlogistics.com info@petroequipmentlogistics.com Block V House 3B Abraham Adesanya Estate Ajah Lagos

Buildwell Plants and Equipment Industries Limited Sarens Buildwell Nigeria Ltd Joint Company of SARENS Group and BUILDWELL Group

Nothing too heavy Nothing too high Block “O”, Plot “4” Gateway City Estate Industrial Area Joint Company of SARENS Group and BUILDWELL Group Lagos-Ibadan Expressway Ibafo, Ogun State Nigeria

+234 7098821313/4 +234 17735598

contact@buildwellng.com www.sarens.com www.buildwellng.com

NIGERDOCK

EXCELLENCE DELIVERED

Then in December 2009, Transocean and Nigerdock along with the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC) collaborated to take on a project that was yet another first of its kind in Nigeria, the refurbishment and maintenance of the gigantic jack-up rig - the Adriatic VIII. The rig weighs 16,000 tonnes with each leg measuring 140 metres in height. The scope of work included steel repair and general maintenance. The rig was the first of its kind to be berthed alongside any facility within Nigeria.

Nigerdock employees working onsite.

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NIGERDOCK

Okan Platform - Chevron

74

May 2015

A total of 30,000 man hours of training was expended in the training of welders and fitters in a special training program conducted between October 2008 and March 2009. Also, an additional five trainee engineers were assigned by the NNPC’s Nigerian Content Division to Nigerdock for a special on-the-job capacity building program.

Nigerdock and Snake Island Integrated Free Zone are also strategic partners to Snepco (Shell Nigeria Exploration and Production Company) who coordinated the entire operations, logistics

EXCELLENCE DELIVERED

and support services for the Bonga project from Nigerdock’s support base in Lagos. Snepco had heliport operations that included 2 Super Puma Helicopters, crew boats, support vessels, a 2,000 square metre state-of-the-art office, housing and hostel facilities, restaurant and catering services.

Snepco also awarded Nigerdock the topside structural steel and pipe works for final integration onto the Bonga FPSO. The package also included manpower services for onsite fabrication, construction and shop engineering, procurement of materials, blasting/painting, hydro testing of pipe spools, upgrading the living accommodation and load out.

From a safety perspective Nigerdock achieved a distinct accomplishment as the only Nigerian fabrication yard on the Agbami project without a lost time incident.

ExxonMobil’s Erha Deepwater Buoy is a catenary anchor leg mooring buoy and was awarded to Nigerdock in March 2004. The award package included fabrication, integration of the turn table platform, blasting/painting, full testing, pre-mechanical completion, load out and sea fastening. In addition, Nigerdock also provided all the required fabrication engineering.

Additional investment in capacity building via training and certification programs were implemented (scaffolding, Rigging, Machining, Welding and Painting) to boost Nigerian content expectations and to support the project in terms of safety, quality, schedule and cost.

Company Information INDUSTRY

Oil & Gas HEADQUARTERS

Lagos EMPLOYEES

4000 PRODUCTS/ SERVICES

Offshore fabrication, ship building & repair, logistical & real estate, industrial training, specialized oil & gas and maritime support services.

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PAPCO

Solutions for Success Leading the way in petroleum marketing and distribution, PAPCO offers the products and expertise needed to navigate today’s ever-changing energy markets.

Written by: Stephanie C. Ocano

Produced by: Jason Wright

77

C O M PA N Y N A M E

Strong strategic partnerships with companies such The Vane Brothers Company extends PAPCO capabilities into waterborne and other non-pipeline served markets

F

ounded in 1976 as a family oil business, PAPCO has evolved with the times, continuously setting the standard of excellence in the energy supply market.

Providing fuel supply, storage, dispensing and inventory management solutions for businesses and government agencies, PAPCO’s largest differentiating factor from its competition is providing innovative solutions through personalized customer care.

“One of the things that we offer 78

May 2015

our customers is a very customized approach to becoming their fuel supplier,” said Frank Daniels, Director of Marketing at PAPCO, during a recent interview.

PAPCO makes the conscious effort to understand its customers’ needs prior to shipping any products. Beyond a tactical fuel supply perspective, PAPCO works alongside its customers in an effort to help them meet their financial goals in running their business.

“We strive to be an aligned strategic partner with each and

SECTOR

every one of our customers where we can provide them with efficiency, cost-benefits and help them grow as we grow right alongside them,” said Eric Rosenfeldt, VP Sales, Supply and Trading.

“We help such an under-served market in that regard because fuel procurement is mainly driven by price. It is a commodity. Taking that extra step and time to listen to the customer, to understand what their needs are and then come back with real solutions that help their fuel purchasing or their strategy around

how they obtain the fuel that operates their business is something that we try to focus on,” Rosenfeldt added.

A Multi-Step Process From the very start, PAPCO creates a personal bond between provider and customer. During the initial appointment, PAPCO creates an open relationship to understand their customers’ business challenges.

“We listen to them and try to understand what keeps them awake at night,” said Rosenfeldt. “Is it the fact that they don’t have enough fuel w w w. p a p c o . c o m

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PAPCO provides over-the-water fueling training as part of a program with the United States Coast Guard Training Center in Yorktown, VA

PA P C O supply for their business because the logistical infrastructure around their facilities is very constrained?

Or is it the price because they’re in a highly hypercompetitive market?”

According to Rosenfeldt, upon identifying the risks and concerns customers have, a plan is created to alleviate said risks and/or constraints and then benchmark said plan.

“We then sit down and say ‘How has this worked over time?’” said Rosenfeldt. “We’re not just consultants where we throw something out there and say, ‘You should do this.’ We always circle back to the customer and ask what worked, what didn’t work and how have things changed.”

Providing Value for the Customer Thanks to this customized solutions approach, every customer can be sure that they are obtaining product at a market-related price. But that’s not where the true value factors in.

The value comes from the why.

“It’s not just, ‘Here’s your product, where’s your price?’ and that’s the

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end of that,” explained Rosenfeldt.

“It’s more about bringing information to the customers and that has a lot to do with the content that we provide our customer base to help them understand where they stand amongst the market and the logistical constraints that have popped up.”

By sharing the “why” and “how” with their customers, PAPCO is able to receive valuable feedback that allows them to create new strategies in their operations.

In short, PAPCO both watches and analyzes the market, allowing them to manage their own costs and supplies on behalf of their customers.

“Answering the ‘What should we do now?’ is a pivotal moment in our relationship with our customers,” said Daniels. “It really defines us in making a strong recommendation based on the customer’s needs.”

“We don’t tell the customers we know where the prices are going to be two weeks or two months from now, because no one knows that,” added Rosenfeldt. “What we do is share our knowledge base with them, and offer them substantive w w w. p a p c o . c o m

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PA P C O fuel market information and analysis that helps them make more of an informed decision. That’s what sets us apart.”

A Supply Chain Leader PAPCO has access to over 1 million barrels of owned or leased storage.

A shipper on the Colonial Pipeline (which links the company’s supply chain all the way to the Gulf Coast) with inventory locations throughout the eastern United States, PAPCO maintains fuel supply agreements with major oil refining companies such as Exxon-Mobil, Citgo, Shell and BP. PAPCO has prided itself on never missing a delivery on account of a lack of supply, and according to Rosenfeldt, this is made possible because of the contingency plans set in place.

“It comes through contingency plans and asset diversification,” he said. “What I mean by that is, on a very macro level, the ways in which we transport product are via pipeline, rail, barge or truck, and you need to be able to understand and execute contingencies around all of that.”

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place, PAPCO can ensure that if something were to happen on the pipeline, the product can still be delivered via barge—if it’s not a waterborne market, then by rail.

Asset diversification is having the access to product from a variety of producers so if one has issues, another producer is in place.

“When you look at our business of oil distribution and all the other value additions that we bring to the table, one of the things our customers look to us for is experience to get them through tough times,” said Daniels. “Whether its hurricanes or other stressed weather situations where the entire oil infrastructure is severely constrained, that’s when we’re needed most.”

Triumph through Tragedy Hurricane Sandy was the deadliest and most destructive hurricane of the 2012 Atlantic hurricane season, as well as the second-costliest hurricane in United States history.

When PAPCO was called upon to continue delivering fuel during this calamity, rather than declaring force majeure, the company stepped forward and continued operations

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without missing a beat.

“We took a lot of pride in stepping up to the table and performing during that timeframe and not looking at the situation as, ‘How can we have an out because of certain challenges that we may or not be facing because of the market?’” said Daniels. “We looked at it as, ‘This

is our opportunity to prove to our customers the value that we bring to the table.’ And that was the time we needed to perform.”

Ben McClenahan, Director of Commercial Sales, added, “That’s part of our value proposition. The supply chain is fragile, but you know, 11 months out of the year there are

PAPCO owns select fleet and storage assets in eastern VA, partnering with third parties to provide the same level of service all along the East Coast

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PA P C O

PAPCO works to become a fuel partner, understanding customers’ needs prior to shipping any product

no problems, but we always tell our customers ahead of time, ‘This will happen at some point.’ Hurricane Sandy is a good example because we have customers today that are very loyal to us, still remembering the tough times they had during those two, three, four months where their supply was very tight and we provided them supply when no one else would.”

Creating Relationships with 84

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Suppliers Meeting with their suppliers quarterly, PAPCO continuously reviews its relationships to determine what is being looked at, what new markets look interesting and what assets might be available.

“We have quarterly business reviews to make sure our goals are aligned,” reiterated McClenahan.

“We don’t want to bring on a new supplier if we can’t help them grow their business along with our

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business, so it’s just a constant communication with them.”

PAPCO itself has been recognized as a quality supplier from the U.S. Defense Logistics Agency (DLA).

A primary resourcing arm for the U.S. military and other agencies, the DLA recently announced its top performing supply contractors for fiscal years 2013 and 2014 and PAPCO was designated as DLA Superior Supplier.

Looking Towards the Future “We have taken our model and executed it,” said McClenahan, “from the consulting base to the selling to the logistical infrastructure—everything that it takes to do our business. Now, we’re going to take that into new markets.”

PAPCO’s growth can be attributed to acquisition and organic growth. Acquisition aside, the company feels that there are a number of markets they have not entered that hold substantial potential. But how do you continue to expand in such a competitive market? Focus on your people and your brand.

“It is our people at the end of the day that are keeping all our promises and delivering our value to the customers,” said Rosenfeldt. “We’re also seeing the benefits of a really strong brand reputation. It’s rewarding to know that when we approach customers that they’ve heard of us and that our reputation is strong in the marketplace.”

Company Information INDUSTRY

Exploration HEADQUARTERS

4920 Southern Blvd.

Virginia Beach, Virginia, United States, 23462 FOUNDED

1976 EMPLOYEES

150 PRODUCTS/ SERVICES

Oil & Energy

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