Oil Tank Storage Automation,Petroleum, Energy, Gas, Upstream, Downstream, GineersNow, April2020

APRIL

2020

NEWS

Nitrocellulose

Neste

OTC Markets Group

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EDITOR‘S NOTE

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his article is very useful considering that fact that all people use oil. Whether you own a car or just commute daily, the innovation on the tank farm automation system will definitely affect you.

If more companies in the Middle East employ oil tank automation, this will mean convenience on the part of consumers. Of course, improved operations will not cause any shortage of oil supply.

Another reason why this innovation is crucial is due to the fact that this will bring more security and safety to the people who are working in the oil refinery. Oil tank automation will surely lessen the operational risks and makes it possible for complicated operations be done at a very fast phase.

Through this article, I also found out that employing an automated scheme in oil farm or depot requires enormous responsibility. Aside from maintenance, you also need to consider the capacity of your existing workforce if they can handle fully-automated operation. But if in case, your people are not that ready, maybe a series of orientations is what you need. You just have to make your workforce understand the compelling reasons why automation in the oil farm must be adapted now!

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The Latest Trends in Oil Tank Storage Once automation in oil farm is institutionalized in most countries, I believe this would lead to huge savings as well.

Because there will be a vast oil reserve in the depot; thus, even if there’s an abrupt increase in the oil price in the world market, we will not immediately suffer from it.

Why? Because oil companies need first to dispose of the existing oil reserved in the depot before they can top up the charge for the affected batch of oil.

I just hope that all the benefits of an automated oil farm will be realized by all- from the owners of oil refineries, government, and ordinary people. It’s time for us to apply fully automated oil farm since it is one way of providing security to people;

that anytime, they can expect enough oil reserves in the oil depot. That even if the Middle East will experience more instability, our oil supply will never be affected.

So, if we want to live better, we may start by adapting this automated oil farm system!

Regional Office: LG Electronics Gulf FZE, P.O Box 61445, Dubai. Tel: +971 4 279 9222, UAE, Mr. Amjad Abu Alika, Tel: +971 50 450 9808, email: amjad.abualika@lge.com; Fortune International Trading LLC, Mr. Wail Halbouni, Tel: +971 50 481 3570, email: fortintl@emirates.net.ae; Ghantoot Trading, Mr. Nour Haboush, Tel: +971 50 109 4109, email: nour.h@ghantootgroup.ae; District Cooling Company, Mr. Ahmed Henedi, Tel: +971 50 658 4832, email: ahmed@districtcoolingcompany.com; Al Yousuf Electronics, Mr. Moitra, Tel: +971 50 457 6170, email: pmoitra@alyousuf.com; Bahrain, AJM Kooheji and Sons, Mr. Jayachandran, Tel: +973 36888801, email: v.jayachandran@ajmkooheji.com: Kuwait, Al Babtain Air Conditioning & Refrigeration Co., Mr. Naji Kataya, Tel: +965 5 051 5771, email: nkataya@albabtaingroup.com kw; British Link Kuwait, Mr. Imad Rhayel, Tel: +965 5 157 1229, email: irhayel@blk.com.kw; Oman, Oman Gulf Enterprise, Mr. Narender Kumar, Tel: +968 9 747 4505, email: narenderk@otegroup.com; Aspire Projects and Service, Mr. Vivek Wagh, Tel: +968 99357694, email: vivekwagh@aspireoman.com; Azerbaijan, GSS.AZ, Mr. Zeka Gasimov, Tel: +994 55 260 6665, email: zeka.gasimov@gss.com.az; Al-Con Maxiwell Group, Mr. Vagif Alexperov, Tel: + 994 50 216 2092, email: maxiwellbaku@inbox.ru; Armenia/Georgia, ARAY Gulf, Mr. Vilson Melikjanyan, Tel: +374 9 307 7755, email: vilson@aray.am; Yemen, Modern House Exhibition, Mr. Khaled Jabr, Tel: +967 71 172 0202, email: mail@mhe-yemen.com; Pakistan, Iceberg Industries (Lucky Goldstar), Mr. Imran Jamil Khan, Tel: +923 21 277 6100, email: ceo@icebergindustries.net

CON TENTS

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Lincoln Electric as a Global Provider of Comprehensive Welding Solutions

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The Importance of UPS for Industrial and Commercial Companies in the Philippines

24 The Latest Trends in Oil Tank Storage

44 Nitrocellulose Market Growing at 5.3% CAGR to Hit USD 1 Billion by 2025

48 OTC Markets Group Welcomes Superior Energy Services, Inc. to OTCQX

52 Neste, World’s Largest Producer of Renewable Diesel Fuel Honored as Clean Air Champion by East Bay Clean Cities Coalition 6

56 Chevron Announces Fourth Quarter 2019 Results

60 PTT’s CAFÉ AMAZON PHILIPPINES EYES 20 MORE STORES IN 2020

64 PETRONAS’ Breathrough Technology In Structure Health Monitoring

68 CNOOC Limited Announces its 2020 Business Strategy and Development Plan

72 Does Industry 4.0 need a different kind of leader?

76 Industry perspectives

F E AT U R E S T O RY

Lincoln Electric as a Global Provider of Comprehensive Welding Solutions

S

patter, porosity, deformation, cracks, these are but a handful of common welding problems those in the global welding industry face. These problems, coupled with budget constraints and preliterate tools and technology, require the industry to produce new and efficient innovations as soon as possible. Fortunately, Lincoln Electric has been steadily rising since its advent in the early days of the welding industry. The company wears two distinct hats: both the hats of a leader and innovator in the design and production of arc welding equipment and consumables.

Aiming to revolutionize and step into the future with better equipment, Lincoln Electric is truly envisioning less problematic work environments and decreased overall problems for the whole industry.

Much like the efficiency of their new products, Lincoln Electric’s partnership with Co Ban Kiat Hardware Inc. is also coherent without a fault. Both engineering and gadgetry giants share a deep commitment to the distribution of world class industrial solutions that upgrade each and every Filipino’s living standard. This principle acts as the foundation of both pioneering hardware companies. It is that same ideology that moved Lincoln Electric to allow Co Ban Kiat Hardware to acquire them, co-create, and cooperate with them for over a century. Together, they have been widening their horizons and penetrating the metal and welding business industries worldwide.

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Thanks to the advanced products of Lincoln Electric and the centennial existence of Co Ban Kiat Hardware Inc. as an unsleeping distributor of their products, there are brighter days for the automotive and transportation, general and heavy fabrication, maintenance and repair, offshore construction, pipeline and pipe mill integration, power generation and process, different forms of energy generation (liquefied natural gas, nuclear, thermal, and wind), pressure vessel fabrication, ship building, and structural and construction industries. Truly, this partnership caters to a vast array of industries in a country that aims to continually transform the hardware arena with excellent service.

While it is certain that Lincoln Electric holds many advanced equipment in its arsenal, there are a handful of tools that can be called best of the best in the categories of plasma cutting equipment, submerged arc welding equipment, welding simulation, engine drives, commercial inverters, and welding consumables.

The Tomahawk 1500 is a top tier plasma cutter.

With the ability to finely cut artwork and fabricate steel parts in a production setting, the Tomahawk 1500 is a simple albeit reliable machine that does not back away from difficult jobs. It is versatile, arming itself with a single-phase or 3-phase, 200 to 575-volt input power for cutting, gouging, and grid-cutting tasks anytime, anywhere.

Those dealing with submerged arc welding equipment category are quick to choose the Power Wave AC/DC 1000 Subarc Welder to help them with their jobs. It delivers Waveform Control Technology to the SAW category. Users are able to choose constant current or voltage operation while adjusting any variable frequency and amplitude.

Truly, this machine results in increased weld speeds, higher quality welds, and improved efficiencies either in single or multi-arc environs.

Those training to be master welders may practice with Lincoln Electric's virtual trainer, the VRTEX 360+ Dual User Virtual Reality Welding Training Simulator. This virtual trainer adds a touch of fun to an otherwise serious and somewhat precarious 9

task. Its top feature is its dual stands that allow two students to train simultaneously with differing processes, coupons, joints, and welding procedure specifications. These students may practice flat, horizontal, vertical, and overhead 5G and 6G on mild and/or stainless steel, or aluminum. It promises its users an immersive experience with its hyper-realistic weld puddles, visually and audibly responsive features.

Needless to say, this machine helps welders learn when to adjust welding techniques. Proper welding training can significantly reduce cost of repetitive mistakes and avoiding accidents in the work place.

The Dual Maverick 200/200X is perhaps one of the best engine driven welders that Lincoln Electric has to offer.

With two welding outputs in one machine, this quiet welder can work efficiently and quickly. It also sports a new, fuel saving feature for resource conservation, allowing the user to do more tasks in an extended period of time. As an added bonus, When used with a CrossLinc compatible device, voltage or current can be controlled at the wire feeder and TVT automatically compensates for voltage drop in the system, ensuring welders the set voltage.

While there are more Lincoln Electric products that deserve every second und er the limelight, one thing is for certain: they all aim to help workers in the welding and metallurgy industry to be at the very top of their game. Much like Lincoln Electric, their partner, Co Ban Kiat Hardware Inc. is also passionate and glad to distribute their products to facilities and organizations that may need them so long as they promise to build and create for the betterment of this society.

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Where to Buy?

Co Ban Kiat Hardware Inc. is the largest authorized distributor of the best industrial hardware solution brands in the Philippines.

To shop online, visit https://www.cbkhardware. com/

Co Ban Kiat Hardware, Inc.

Ground Floor, Cobankiat Building II, 231 Juan Luna St. Binondo Manila, Philippines.

Phone +632 8243-1931 Phone +632 8243-5263 Phone +632 8894-6561

Coby's Designer Center

Unit 467 level 4 Shangri-La Plaza Edsa Corner Shaw Boulevard Mandaluyong City, Philippines Phone +632 86364895

About CBK Hardware For almost a hundred years, a family’s surname has become synonymous to the country’s biggest hardware supply company. Co Ban Kiat Hardware Incorporated, of the Cobankiat family has a regular client network of more than 1,500 industrial organizations; 1,600 traditional community hardware stores, and 584 home building specialty chain of stores across Luzon, Visayas and Mindanao. This ever-growing conglomerate traces its humble roots to Manila Chinatown, as a pioneer enterprise started by family’s patriarch, Mr. Cobankiat in 1920. Despite the ruins of World War II, the business goes back to its feet in 1948, rebuilding a storefront from the very same spot where it was known for three decades.

This ever-growing conglomerate traces its humble roots to Manila Chinatown, as a pioneer enterprise started by family’s patriarch, Mr. Cobankiat in 1920. Despite the ruins of World War II, the business goes back to its feet in 1948, rebuilding a storefront from the very same spot where it was known for three decades.

While the Filipinos continue to rebuild their lives post war, CBK Hardware sees the opportunity to introduce the retail concept once unheard for in hardware industry. The Hardware Workshop Store is the fruit if this endeavor. CBK Hardware further cemented its legendary distribution channel with the creation of Coby’ Design Center in Edsa Shangi La in 1996, a specialty store that caters to discriminating taste of modern Filipinos.

In 1997, Mr. Johnny Cobankiat, the 4th generation Cobankiat leader, set another milestone for the company when he brings a franchise of Ace Hardware USA to the Philippines, and signs up CBK Hardware as one of its major suppliers. This further expanded into delivering quality world class products nearer to families of Filipino overseas workers in the countryside.

A century’s excellence can quickly pass, and guided by the vision to be the largest network supplier of the biggest global brands in the hardware industry, CBK Hardware resolve to source the best products to supply its customers anytime and every time.

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To sponsor this black-tie gala awards night, contact Ms. Ems at +63 917 1792828 ems@gineersnow.com

F E A T U R E

S T O R Y

The Importance of UPS for Industrial and Commercial Companies in the Philippines

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or most residential areas, power cuts are no more than an inconvenient annoyance. But for huge manufacturers and industrial plants that rely significantly on power supplies, it is a serious matter. After all, power is what makes their facilities tick.

This makes power outages, sags, and surges one of their biggest enemies on the field. Even a minimal power outage on their operations can cause them thousands or even millions of US dollars of lost. In fact, the power generation giant General Electric revealed that around 1/3 of businesses are doomed to lose more than thousands of US dollars within one hour of losing their electricity.

This figure could translate to millions of dollars for bigger companies like pharmaceuticals, semi-conductor and F&B processing plants.

That said, industrial factories and manufacturers are notably

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susceptible to power supply failures (or brownouts). To specify, industries in the car and electronic production, along with those that produce food, drink, and pharmaceuticals, can suffer from major problems caused by even a ten-second loss of power. This does not only mean a temporary pause in production, but it also represents a looming damage to both the final products and their equipment and machinery; not to mention the money and time spent in correcting these damages done.

The extent of these damages can sometimes be challenging to record.

Some electronic control systems that were configured solely for your application may tend to go back to default and require reprogramming after the power returns.

Productions in the critical stages that were interrupted by power loss can result to ruined products and waste of expensive materials. The more automation is integrated into the work field, the greater the impact of power supply anomalies to the corporation.

But power outages are not the only problems in industrial plants, but voltage drops and power sags also play a significant role. Out of all the power supply anomalies that manufacturers experience, more than 92 percent trace back to voltage ‘sags.’ This makes them the most common threat for most businesses.

Power sags, along with power ‘spikes’, can do unimaginable damages to equipment, especially computers and servers. Back in May 2017, British Airways experienced a loss of no less than $100 million just because of a momentary power supply event. The incident restarted their critical data center, ending up to approximately 800 of their London Gatwick flights being cancelled.

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F E A T U R E

S T O R Y

Although technology is advancing, power supply problems remain a threat in the industry and are recorded to be worsening both in frequency and severity across the globe. The USA noted an increase of 50% every five years on the average number of power outages between 2000 and 2014. With this steady rise of power supply anomalies, many facilities and corporations are now installing power protection systems to combat these problems, protecting both their equipment and productivity from the surges, sags, and spikes of the age-old and overworked power grids.

This is where the NuPON Technology Philippines Corporation (NTPC) comes to play. Being one of Asia’s leaders in both engineering services and integrated solutions, NuPON Technology offers a wide range of Uninterruptable Power Supply (UPS) solutions.

The ALP Series 3-Phrase is designed to sustain a smooth-running power for 20KVA to 320KVA machineries. Its plug and play modular design makes it quicker and more convenient to maintain. The MD Series, on the other hand, is meant to offer a power range of 5kVA to 15kVA and can give manufacturers a back-up time of 13 to 18 minutes at full load. For smaller equipment in the lines of 1kVA to 10kVA, the T3 Series is the perfect fit as it features a true on-line double conversion technology for high level of protection.

Although varying in features and size, these products are meant to protect sensitive equipment and machineries from power supply anomalies. With their well-designed features,

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they are capable of correcting voltages in an instant without relying solely on the main grid, ensuring a clean and reliable power supply for your systems. These units are also created to react instantly and efficiently to any power supply changes, including voltage disturbance and surges.

The most common industry to use of UPS traces back to data centers and computer systems, although any other company in the industrial sector can benefit significantly from investing in a backup power supply. UPS suppliers in the Philippines, including the NuPON Technology, are committed to produce tailor-fit UPS for countless of industries, such as the fields of telecommunications, medical, and even aerospace.

Different Types of UPS Industrial UPS

These are typically installed in an industrial setting, in the likes of factories and plants.

Medical UPS

These are critical UPS systems installed in medical centers and hospitals, serving as back-up supplies for life-support equipment.

For more information on NuPON Technology and their products, you may contact these numbers:

NuPon Technology Head Office

Filsyn Corp Compound Brgy. Don Jose, Santa Rosa City, 4026 Laguna, Philippines.

Tel: +63 49 530-1879 Tel: +63 49 530-2329 Tel: +63 49 530-1879 Email: ntpctmsg@gmail.com WhatsApp: +639178675324 Website: www.nuponcorpphils.com

Cavite Branch

The Arcade Bldg. Blk 5 Stl 9&10, Holiday Homes, Brgy. Biclatan, Gen. Trias Cavite 4107 Tel: +63 46 512-0982 Tel: +63 46 512-0979

Subic Branch

83A 14th St., New Kalalake, OC Tel: +63 47 223-8894

Clark Branch

Apartment#5 Jasmin St, Pineda Subd. Dau, Mabalacat, Pampanga Tel: +63 45 625-0162

Cebu Branch

Computer and Communication System These UPS systems are typically found in phone companies and server farms.

158 Sangi Road, Pajo. Lapu-lapu City Cebu, Philippines 6015 Tel: +63 32 520-3285

High Temperature

Baguio Branch

These types of UPS can withstand high-temperature situations.

#71 Sarok Road Camp 7 Baguio City Tel: +63 74 246 2391

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T

he advent of technology has brought a lot of innovations in the field of oil tank storage- and one of these is the use of tank farm automation system.

The development of the tank farm automation system paved the way for other milestones in off-sites oil storage and mobilization, including the use of programmable logic controllers (PLCs), distributed control system (DCS), temperature, level, and flow measuring systems, advanced control and optimization, preset controllers, and transactional business information systems.

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S T O R Y

Since the competition in the oil refinery business is exceptionally high, you really need to invest for the most advanced oil mobility and storage tank.

You will invest to the point that you are willing to compromise your financial stability. But most offsite oil refinery owners will opt to take the risk due to the overwhelming benefits that you will get from automated oil tank farm or depot.

In fact, the use of automated storage tanks and other high-end auxiliary equipment makes it possible to double or even triple the volume and speed of receiving and disposing crude oil to the market. And since automated oil farm tanks are bigger, there will be no interruption in between the storage and shipment processes.

But how this became possible? How come the receiving, storage, and distribution processes take place at the same time at a very fast rate?

Well, this is because automated oil farms are intricately designed with subtle attachments to the source terminals through rail cars, pipelines, marine carriers, and barges.

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Indeed, there are lots of benefits that you can get once you apply tank farm automation in your off-sites oil refinery facility.

However, before you employ and spend for the installation of an automated oil tank storage system, you need first to learn some of the best practices that you can benchmark. Otherwise, you will just be wasting your money, time, and effort.

Oil Tank Farm Automation Best Practices • Keep a Safe and Sound Environment. Farm tank automation is, indeed, a complicated thing. This adds up to the fact that you are working with oil that is a highly-volatile substance. With this, you need to be very careful and keep the refinery site safe. This can be done by conducting a couple of feasibility studies to confirm if the automated oil storage tank fit in a particular site.

You also need to make sure that all the pipes, valves, and block valves are working properly before you fully shift to farm tank automation system.

Another thing is that you need to check if you hire the right people. Just try to assess if your workforce knows how to manage and maintain an automated oil tank storage facility. If not, you need to orient them and teach them how to manage and run an automated oil depot.

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The development of the tank farm automation system paved the way for other milestones in off-sites oil storage and mobilization, including the use of programmable logic controllers (PLCs), distributed control system (DCS), temperature, level, and flow measuring systems, advanced control and optimization, preset controllers, and transactional business information systems.

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The use of automated storage tanks and other high-end auxiliary equipment makes it possible to double or even triple the volume and speed of receiving and disposing crude oil to the market.

And since automated oil farm tanks are bigger, there will be no interruption in between the storage and shipment processes.

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• Swift Transition. If you do not hit the right timing, shifting to oil tank automation could mean a menace to your oil refinery site. Why? Because the normal flow of operation will be affected. And this will result in millions of financial setback- from the failure of accepting new crude oil and abrupt isolation to the market chain.

If you don’t want these things to happen, you must know how to handle the so-called operational flexibility. Operational flexibility means keeping a minute to no changes in the normal operation of oil refining and storage. And this can only be possible if you have a well-studied plan. Try to consult first some experienced off-site oil operators to gain more insights on how to effectively adapt to using automated oil tank farm.

•Maintenance. Of course, if you want your automated oil tank farm to thrive, never forget the maintenance. You need to check the pipes and valves for any possible leak. You also need to always check the temperature since it may induce erratic changes to the volumetric measurements.

Most of the people who are engaged in oil refinery and storage business even purchase some of the top-notch tank gauging options for a more reliable tank level and status check.

•Keep a Stable Source of Funds. Apparently, if you want to dominate the off-site oil storage and refinery business through utilizing automated tank storage depot, you really need a huge capital! This is because if you have a stable source of funds, you can update and purchase new hardware in no time. If the market deviates from your side, your funds will be used to offset the possible monetary setbacks that you will endure.

These are some of the significant facts that you must know about the oil tank farm automation system. If you use this innovation the right way, you will definitely become the next oil refinery magnate soon!

-end-

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N E WS

Nitrocellulose Market Growing at 5.3% CAGR to Hit USD 1 Billion by 2025

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hanging fashion trends and rising consumer expenditure on high quality clothing has surged the demand for comfortable, multifunctional apparels & footwear which is likely to enhance nitrocellulose market value. Leather products require high gloss or matte finishes to enhance their appearance and to provide protection against heat and moisture, which helps the cellulose nitrate industry.

Higher levels of nitrocellulose in nail varnishes, one of its major applications, contribute to a more flexible film which improves the durability of the end-use product. Nail polish sales were over USD 565 million in 2018, accounting for almost 50% of nail products market in the U.S., which shows favorable trend for nitrocellulose market. North America nail varnish market may spur at over USD 25 million up to 2025.

Ongoing development of automotive industry in European region has boosted the demand for high quality auto paints, another important application of nitrocellulose.

Europe automotive paints market valued over USD 40 million in 2018.

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Cellulose nitrate in automotive paints offers a glossy finish to automobiles, imparts optimum functionality & flexibility and fast drying properties. These high-performance paints have low volatile organic compound in comparison to traditional oil based paints which enhances their durability.

In addition, companies are focusing on development of automotive paints that are eco-friendly owing to rising concerns over toxic gases emissions which may favor market demand of nitrocellulose.

The nitrocellulose companies are concentrating towards new product development. Manufacturers are also indulged in joint ventures and partnerships to reinforce their product portfolio. Some key players include DuPont Specialty Solutions, Hebei Sanmu Cellulose, EURENCO, Nitrex Chemicals India and Nitro Quimica.

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Pushing back the boundaries of plastics BASF is a leading supplier, manufacturer and innovation partner of plastic additives. The company’s comprehensive and innovative product portfolio includes stabilizers which provide ease in processing, heat and light resistance to a variety of polymers and applications including molded articles, films, fibers, sheets and extruded profiles. www.plasticadditives.basf.com

Image: IrganoxÂŽ 1010 magnified 200 times

N E WS

OTC Markets Group Welcomes Superior Energy Services, Inc. to OTCQX

O

TC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, today announced Superior Energy Services, Inc. (OTCQX: SPNV), a company which serves the drilling, completion and production-related needs of oil and gas companies, has qualified to trade on the OTCQXÂŽ Best Market. Superior Energy Services previously traded on the New York Stock Exchange.

Superior Energy Services begins trading today on OTCQX under the symbol "SPNV." U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

"Superior Energy Services joins the OTCQX Best Market, trading alongside more than 400 U.S. and international companies," said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. "OTCQX is a cost-effective public market that provides investors with transparent trading and timely access to information. We are pleased to welcome Superior Energy Services to the OTCQX Market."

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About Superior Energy Services, Inc. Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.

About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX速 Best Market, the OTCQB速 Venture Market and the Pink速 Open Market for 10,000 U.S. and global securities. Through OTC Link速 ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

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How have we maintained top sales in the logistics equipment field since our founding in 1972?

Chiba Sogyo has continued to support the distribution which is the core of our economic activities. Ever since our founding, we have constantly led the logistics equipment industry.

“How can we satisfy customer needs to the greatest possible extent?”

– To achieve this goal, we have accumulated knowledge and expertise, and then steadily incorporated this wisdom into our services.

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Our Service • Wooden Pallets • Import Pallet • Woooden Frame • Steel Logistics Packaging Equipment • Plastic Pallet • Ship-Building • Sales Warehouse

N E WS

Neste, World’s Largest Producer of Renewable Diesel Fuel Honored as Clean Air Champion

by East Bay Clean Cities Coalition

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he Board of the East Bay Clean Cities Coalition has selected Neste, the leading provider of renewable diesel fuel in California, to receive its 2019 Clean Air Champion Award.

Richard Battersby, director and chairman of the Coalition, said the award recognizes Neste’s “exemplary work with renewable fuels and focus on sustainability as a core part of your mission and operations.” The award was presented Oct. 16 to Neste at the NorCal Clean Fleet Technology Conference & Expo in Sacramento.

Neste supplies renewable diesel fuel, Neste MY Renewable Diesel™, to several cities in the East Bay and elsewhere in California and Oregon.

Neste MY Renewable Diesel is a drop-in, advanced diesel fuel made of renewable waste materials, compatible with existing distribution and logistics systems as well as all diesel vehicle engines.

In addition to supplying Neste MY Renewable Diesel to 17 cities in California, Neste also has partnered with the City of Oakland to initiate a program in which local waste grease is collected, sent to Neste’s refinery and used as a feedstock 52

for the low-carbon renewable diesel that is returned to the city for use in its vehicles.

“Neste is proud to accept this award,” said Neste US, Inc., President Jeremy Baines, “as it recognizes the partnerships that our company strives to create as part of our business, which is bringing renewable and sustainable products to our customers.”

Neste’s renewable diesel fuel has been a prime contributor to the success of California’s Low Carbon Fuel Standard, a key tool in the state’s program to combat climate change.

Neste MY Renewable Diesel™ reduces greenhouse gas emissions by up to 80% compared to conventional petroleum diesel. It also cuts engine-out emissions of nitrogen oxides (NOx) by 9%, carbon monoxide by 24% and fine particulates by 33%, all while enhancing engine performance.

About Neste Corporation Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world’s largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste’s revenue stood at EUR 14.9 billion. In 2019, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world.

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A S I A

P A C I F I C

N E W S

Chevron Announces Fourth Quarter 2019 Results the year-ago period.

C

hevron Corporation (NYSE: CVX) today reported a loss of $6.6 billion ($(3.51) per share - diluted) for fourth quarter 2019, compared with earnings of $3.7 billion ($1.95 per share - diluted) in the fourth quarter 2018. Included in the current quarter were previously announced upstream impairments and write-offs totaling $10.4 billion associated with Appalachia shale, Kitimat LNG, Big Foot and other projects. The company also recognized a $1.2 billion gain on the sale of the U.K. Central North Sea assets in the fourth quarter.

Foreign currency effects decreased earnings in the fourth quarter 2019 by $256 million.

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Full-year 2019 earnings were $2.9 billion ($1.54 per share - diluted), compared with $14.8 billion ($7.74 per share - diluted) in 2018.

Included in 2019 were net charges for special items of $8.7 billion, compared to net charges of $1.2 billion for special items in 2018.

Foreign currency effects decreased earnings in 2019 by $304 million.

Earnings excluding special items and FX reflect net income (loss) excluding special items and foreign currency effects.

For a reconciliation of earnings excluding special items and FX, see Attachment 5.

Sales and other operating revenues in fourth quarter 2019 were $35 billion, compared to $40 billion in

“Cash flow from operations remained strong in 2019, allowing the company to deliver on all our financial priorities,” said Michael K. Wirth, Chevron’s chairman of the board and chief executive officer. “We paid $9 billion in dividends, repurchased $4 billion of shares, funded our capital program and successfully captured several inorganic investment opportunities, all while reducing debt by more than $7 billion.

Earlier this week, we announced a quarterly dividend increase of $0.10 per share, reinforcing our commitment to growing shareholder returns.”

“Organic capital spending held flat at $20 billion in 2019, further demonstrating our commitment to capital discipline. Within this program, we continued the rampup of the Permian Basin in Texas and New Mexico and progressed our Future Growth Project at the company’s 50 percentowned affiliate, Tengizchevroil, in Kazakhstan. For the first time in the company’s history, annual production exceeded 3 million barrels per day of oil equivalent,” Wirth added.

The company added approximately 494 million barrels of net oil-equivalent proved reserves in 2019. These additions, which are subject to final reviews, are net of reductions associated with the company’s decisions to reduce funding for various gas-related opportunities and asset sales. The largest additions were from the LNG Projects in Australia and deepwater fields in

the Gulf of Mexico. The company will provide additional details relating to 2019 reserve additions in its Annual Report on Form 10-K scheduled for filing with the SEC on February 21, 2020.

Significant downstream developments in 2019 included the acquisition of the Pasadena refinery in Texas, and the signing of a conditional agreement to

acquire a network of terminals and service stations in Australia.

Additionally, Chevron Phillips Chemical Company LLC, the company’s 50 percent-owned affiliate, announced plans to jointly develop petrochemical projects in the U.S. Gulf Coast and Qatar.

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A S I A

P A C I F I C

N E W S

PTT’s CAFÉ AMAZON PHILIPPINES EYES 20 MORE STORES IN 2020

P

TT’s non-oil business, the Café Amazon plans to open approximately 15 to 20 more stores in the Philippines next year to boost its presence in the country.

Over the weekend, Café Amazon opened its latest stores in Bacoor, Cavite and in J.P. Rizal in Project 4, Quezon City. Both are franchisee owned and operated stores.

The Bacoor branch was Café Amazon’s fourth in the province of Cavite, while the J.P. Rizal shop was its third in Quezon City and fourth in Metro Manila.

“The reception of both the investors and the customers are overwhelming. We are barely new in the Philippine market, yet, people are so enthusiastic about the brand and the product itself,” said PTT Philippines President and Chief Executive Officer Thitiroj Rergsumran.

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Café Amazon was introduced in the Philippines in 2016 after PTT Philippines got the master franchise from its parent company in Thailand. It has since been expanding from the inside of a PTT station to malls and other commercial establishments.

Its first store in the Philippines opened at PTT SCTEX and was immediately followed by the one at PTT Dasmarinas in Cavite, and eventually the opening of its first mall-based shop inside the SM City North Edsa Annex Building in Quezon City.

As part of its product development and innovation, Café Amazon also introduced its glass house stores in the Philippines particularly the ones at PTT Apalit, PTT San Fernando 3, PTT Pansol in Laguna, and PTT Cavite City.

A market leader in Thailand, Café Amazon was founded 17 years ago and has become successful in Thailand and overseas because of its continuous product development, good locations, and strong business partners.

Its more than 2,500 stores in Thailand has even grew to additional 200 shops in other countries like Cambodia, Laos, Myanmar, Japan, Oman, Singapore, China, and the Philippines.

Apart from the projected new stores in 2020, its line of new drinks would also be introduced in all of its stores this December, targeting its health-conscious customers.

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N E W S

PETRONAS’ Breakthrough Technology In Structure Health Monitoring

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ETRONAS announced a breakthrough invention, Advance Diagnostic and Prognostic Technology (ADaPT), a digital solution that predicts mechanical damage at various facilities to prevent unplanned plant shutdown and revenue loss.

Developed by local talents, the technology is a quantum leap in structure health monitoring and has the potential to be used at facilities beyond the energy sector, including construction, shipping, aeronautics, motorsports and automobiles.

ADaPT replaces manual, conventional inspections by predicting structural and mechanical cracks through continuous online monitoring, offering accurate prediction based on pressure, temperature and flow patterns.

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It detects the early signs of mechanical damage allowing prediction of asset’s remaining life expectancy and avoids unplanned shutdown of plants.

ADaPT was launched by PETRONAS Project Delivery & Technology Senior Vice President Samsudin Miskon, accompanied by PETRONAS Project Delivery & Technology Head of Group Technical Solutions (GTS) Khairol Anuar Shukri and PETRONAS Chemicals MTBE Sdn Bhd (PCMTBE) Chief Executive Officer Azlimi M Lazim.

The digital solution is a collaboration involving GTS, PCMTBE and Universiti Teknologi PETRONAS, which began in January 2018.

Khairol said ADaPT is the result of PETRONAS’ innovation capability underpinned by a passion for technological advancement in its operational culture.

“The fruition of ADaPT, with its high performance and accuracy, is another testament to PETRONAS’ commitment as a progressive energy and solutions partner,” he said.

Meanwhile, Azlimi said with ADaPT, PCMTBE has optimised plant efficiency by planning around the predicted remaining life expectancy.

“The digital solution had successfully avoided the unplanned shutdown that could have cost us RM30 million. It had also increased PCMTBE’s production by seven per cent, worth RM63 million, from April 2019 to December 2019,” he added.

PETRONAS welcomes partnerships to deploy ADaPT as the application is not limited to the energy sector.

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CNOOC Limited Announces its 2020 Business Strategy and Development Plan

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NOOC Limited (the “Company”, SEHK: 00883, NYSE: CEO, TSX: CNU) today announced its business strategy and development plan for the year 2020.

The Company’s targeted net production for 2020 is 520 million to 530 million barrels of oil equivalent (BOE), of which, production from China and overseas accounts for approximately 64% and 36%, respectively.

The Company’s net production for 2019 is expected to be approximately 503 million BOE. The Company’s net production for 2021 and 2022 are estimated to be around 555 million BOE and 590 million BOE, respectively.

The Company’s total capital expenditure for 2020 is budgeted at RMB85 billion to RMB95 billion. The capital expenditures for exploration, development, production and others will account for approximately 20%, 58%, 20% and 2% of the total capital expenditure, respectively.

In 2020, the Company plans to drill 227 exploration wells and collect approximately 27 thousand square kilometers 3-Dimensional (3D) seismic data.

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In 2020, ten new projects are expected to come on stream, namely Penglai 19-3 oil field block 4 adjustment/Penglai19-9 oil field phase II, Qinhuangdao 33-1 South oil field phase I, Bozhong 19-6 gas field pilot area development project, Luda 16-3/21-2 joint development project, Nanbao 35-2 oil filed S1 area, Jinzhou 25-1 oil field 6/11 area, Liuhua 29-1 gas field development project and Liuhua 16-2 oil field/20-2 oil field joint development project in offshore China, Liza oil field phase 1 in Guyana and Buzzard oil field phase II in the UK. Among which, Liza oil field phase 1 in Guyana has already come on stream ahead of schedule.

Mr. Xie Weizhi, CFO of the Company, said, “The Company will continue to maintain cost competitiveness, maintain prudent investment decision-making, and ensure the effective implementation of the capital expenditure plan to fully promote the Company to a new phase of high-quality development.”

Mr. Xu Keqiang, CEO and the President of the Company, said, “In 2020, the Company will steadily increase its oil and gas reserves and production, pursue profitable reserves and production, lay a solid foundation for high-quality development through technology innovations and management enhancement, and create excellent returns for our shareholders.

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Does Industry 4.0 need a different kind of leader?

T

By Assem Salaam, Gulf Sales Director, Rockwell Automation

here are innumerable ways of being a good leader, and as many different styles and techniques as there are leaders – in fact, I’d argue that a good leader is first and foremost unique. That’s because a good leader is true to themselves, it is very hard to be good if you do not believe in yourself and your approach.

A good leader then, will, either knowingly or otherwise, pull upon several different management styles, but the one that I’ve been considering closely in recent times is often referred to as Advocacy Leadership – and I’d also add a twist which focuses on agency...

I recently read a quote from a resource kit for culturally and linguistically diverse communities in Australia that gave me pause for thought: “Advocates do not have to be leaders, but good leaders should be strong advocates.”

This clever phrase from a document about diversity resonated with me, not only as a leader of a very diverse region with many different cultures and identities, but also as a very useful observation about leadership.

To be an advocate is to promote a cause – and a good leader will always be able to motivate their team with a clear vision for what they are trying to achieve together. In our case at Rockwell Automation, we are expanding human possibility by connecting the imaginations of people with the intelligence of machines.

Our teams are working hard with our customers and partners to help them achieve more productivity, reduced wastage, improved safety and stronger security. For each and every one of our customers, this means making a more intelligent Connected Enterprise, and we have a huge toolkit available to help them to identify their own vision for the future, and to help them deliver on their potential.

There’s another side to advocacy too. And that is to be someone who speaks up for or represents a group of people.

On this side of the coin, a strong leader must be aware of their role in supporting their team to achieve their goals. It’s at this point that the agency twist comes into play, because once the vision is laid out and the support is made available to every

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member of the team, they must feel that they have the full faith of the leaders to deliver. It’s a key difference between being a manager and a leader; a leader will give agency to the team member to achieve their full potential.

With the agency approach, an able leader needs to have good personal relationships with their team. They need to understand people’s strengths and to assign roles and responsibilities accordingly. In an era of rapid change for industry, this requires a certain agility.

In advocating Rockwell Automation’s approach to market, it is important to understand that it has developed in recent years and is continuing to do so. The traditional role of the Industrial Automation and Information Technology vendor is changing very quickly. The change is being driven by industry needs and technology development in the era of digitization. The company’s new alignments and relationships with key partners such as the new joint venture with Schlumberger or the recent investment into PTC, along with longer-standing strategic alliances such as Endress+Hauser, Cisco and Microsoft, mean that we can offer much more than ever before. They show how Rockwell Automation is keyed in to an integrated digital-physical world of connectivity that can help realise the most ambitious plans of our customers. In turn, this means we are part of a conversation with more stakeholders in our clients’ operations and must work more creatively and collaboratively than ever before.

To do so successfully requires strong advocacy leadership so that the regional Rockwell Automation team is fully enabled to help our customers define and achieve their goals. But we’re not reinventing the wheel here, our customers still want to improve productivity, reduce costs and waste, and operate in a safe and secure way. We need every bit of experience gathered at every level of our team to leverage the new opportunities and we need every member of the team to be motivated. This brings us neatly back to the empowering effect of agency leadership – given roles suited to us, and the support (advocacy) and faith from our leaders to deliver (agency), we can all achieve much more together.

I’d be interested to hear your thoughts on leadership in the modern industrial era (industry 4.0/ fourth industrial revolution). Do you agree with the Advocacy Leadership style? Do you see the value or have examples of how promoting agency can achieve results? Has your company identified its Connected Enterprise vision for the future and assembled the partners it needs to deliver it? Contact me to continue the conversation.

About Rockwell Automation Rockwell Automation Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 23,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing The Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.

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Foreword Nizar Jichi Partner Head of Energy and Natural Resources KPMG Lower Gulf Limited T: +971 2 401 4700 E: njichi@kpmg.com

Our second annual thought leadership report for the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) 2019, explores key trends in the energy and natural gas (ENR) industry. Amid times of economic change, technological advancement and disruption, the United Arab Emirates (UAE) government has largely managed to fulfil the enormous potential for growth. Over the last few decades, it has been working to create an environment that is particularly conducive to the success of the ENR sector.

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A slew of exciting developments are transforming oil and gas (O&G) globally. Artificial intelligence and machine learning are driving a digital revolution.

Organizations within the industry are focusing on extensive capital investment. However, there may be some challenges in ensuring that the capital is used productively.

Prices of main energy commodities continue on their upwards trajectory, a trend that commenced in late 2016, and they are forecast to stabilize over the next ten years. This is partly due to ongoing crude oil production cuts implemented by the Organization of the Petroleum Exporting Countries (OPEC). In coming years, prices may well be impacted by the USA and China trade wars, and Venezuela’s economic, political and social crisis.

There have been some promising advances in accounting standards relevant to the industry.

Determining whether a transaction results in an asset or a business acquisition has historically been a topic of contention. The International Accounting Standards Board (IASB) has issued amendments to provide further guidance on the definition of a business, applicable to those entities to be acquired in annual reporting periods beginning as from 1 January 2020.

ENR organizations must remain continuously aware of changing legislation relating to tax and foreign ownership. There has been a welcome relaxation in foreign investment regulation in the UAE. Formerly, the practice in the sector was to establish a branch of the foreign company that would be party to a concession.

With reforms to the Foreign Direct Investment law coming into effect as of 1 January 2019, foreign shareholders may now own up to 100% of UAE companies incorporated outside the designated free zones.

In this report we also consider research that suggests millennials may sometimes view O&G as an industry that can occasionally be detrimental to the environment.

This could be hindering valuable talent from exploring fulfilling careers in the sector. The O&G sector would do well to consider modifying its employee value proposition to match millennial values, focusing on purpose rather than compensation alone, as well as emphasizing the chance to work with cutting-edge technology in what is a largely public service with fairly high levels of corporate social responsibility (CSR).

As per the KPMG Global CEO Outlook 2019 survey, 94% of energy company CEOs are confident in their own business’s growth prospects over the next three years. Tempering this optimistic outlook, 76% of CEOs across all sectors surveyed said their company’s growth would depend on their ability to manage the transition to a low carbon, clean technology economy.

Finally, we shine a spotlight on ethics. Companies in the energy sector face unmatched regulatory and public interest scrutiny from governments. Increased digitization is creating an ever-more connected world, leading to greater awareness of data breaches, misconduct and other risks among stakeholders and the wider public. Organizations must balance meeting shareholders’ expectations for financial targets, while holding themselves accountable for possible environmental impact, as well as combating potential bribery and corruption.

These findings set the scene for a discussion about renewable energy sources. Sustainable energy innovation faces some obstacles: high technological risk, financial costs, and strong commercial competition from established, low-cost products and solutions.

These hurdles may be partly mitigated by securing the optimum mix of private and public funding, and establishing a culture of transparent policy discussion.

I hope you find the report an engaging and stimulating read. I would be delighted to discuss the insights with you.

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Price volatility and its impact on the oil and gas sector Fluctuations in commodities’ prices continue to affect the production of national and international hydrocarbons, and have a direct impact on total investment in the region. Nizar Jichi delves into the key trends, forecasts and reasons for the variation.

In recent years, the oil and gas industry (O&G) has navigated unprecedented disruption. Challenges include upstream volatility, midstream constraints, and industry consolidation. However, shifting customer demands and new technologies are creating hitherto unexplored opportunities for O&G companies.

In 2019, prices of main energy commodities, particularly oil and gas, continued on the path towards recovery, a process that started in late 2016. This took place after an overwhelming fall in prices, which as of 2016 may be estimated to be well above 60% of the maximum levels reached in 2012 and 2008, for oil and gas, respectively.

This has represented accumulated growth of more than 60% for oil, and 50% for gas, from 2016 to 2018.

The price of oil rose from USD/bbl1 43 in 2016 (average price of the West Texas intermediate (WTI), Dubai and Brent oil basket) to USD/bbl 70 in November 2018.

In the same period, gas prices increased from USD/ MMBTU2 3.5 (average price of the gas produced in the USA and the EU) to USD/MMBTU 5.3 1.

This trend is evidenced in a recent World Bank study.

It indicates that the prices of major commodities up to 2030 are partly due to ongoing crude oil production cuts that the Organization of the Petroleum Exporting Countries (OPEC) and other non-OPEC countries have

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been implementing from 2016. The cuts aim to foster an upward trend in crude oil prices. This is in addition to the constant increase in USA oil and gas production which, in contrast to the production cuts, tends to mitigate price upsurges and forces them down.

Trade wars and political uncertainty In addition, two other factors might be added in light of their recent significance in outlining future expectations for the energy market: the USA and China’s trade war disputing tariffs; and Venezuela’s economic, political and social crisis. The latter adds a material level of uncertainty in terms of production due to the recent restrictions imposed by the USA and other countries upon their crude oil supplies.

Other oil producing countries such as Russia have adhered to the production cut implemented by OPEC member countries. In January 2017, this group of countries, which accounts for around 50% of the global supply of crude oil, decided to reduce its production by around 1.8 million barrels daily2. The purpose was to support the price of this commodity and recover investments made years ago.

This reduction, which in 2018 had turned towards an increase in daily production as a result of rebounding crude oil prices, has reverted once again as OPEC countries and their partners cut production in 2019, in response to the decline in oil prices.

The restrictions on crude oil supply imposed by the OPEC producers and partners, together with the

increase in U.S. production and the restrictions on the production of some countries, continue to contribute to the volatility in hydrocarbon prices. However, based on the latest projections of the World Bank, prices are forecast to remain stable at around USD/bbl 70 up to 2030.

The imperative for greater investment In the recent World Energy Congress, UAE Minister of State and ADNOC CEO, Dr Sultan Ahmad Al Jaber, said that USD 11 trillion are required of investment for the oil and gas industry to keep up with rising global energy demands. “In the short-term, global economic uncertainties are creating market volatility and impacting the energy demand,” he said. “But, in the long-term the outlook is very positive and in fact robust3.”

Alternatives are being sought to create the necessary conditions to foster investment, thus achieving a sustained increase in the production of hydrocarbons.

In a somewhat unpredictable environment for oil prices, providing forecasts for the shortterm seems a complex task. In two years, the steep upward trend, boosted by the restrictions on production imposed by OPEC and its partners, was reversed, leading to some uncertainty in

the sector towards the end of 2018. This may be due to the influence of the United States in the international market, coupled with the production and export hurdles currently being faced by some countries, like Venezuela.

Unlike crude oil, the upward trend followed by the international price of gas appears to be clearer.

According to the World Bank’s estimations, the average price of the gas produced by the United States and the European Union is expected to average around USD/ MMBTU 6 by 2030.

Nizar Jichi Partner Head of Energy and Natural Resources KPMG Lower Gulf T: +971 2 401 4700 E: njichi@kpmg.com

Given that the UAE possesses nearly 10% of the world’s total hydrocarbon reserves, oil and gas revenue will continue to fuel the country’s national economic growth and social infrastructure development in the future. In the near-term, the ever-increasing global demand for energy, evolving political and regulatory priorities, emerging technologies and increasing cost pressures are likely to pose challenges for energy and natural resources companies. Nevertheless, despite global economic uncertainties and market volatility impacting energy demand, the long-term outlook remains positive.

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The effect of new accounting requirements for business combinations on the energy industry Previous IFRS 3 guidance on the definition of a business created some diversity in practice and was a subject of concern for stakeholders.

Aiming to resolve this, the International Accounting Standards Board (IASB) issued additional clarification and a test for a simplified assessment. Yusuf Hassan explains.

According to long-term forecasts, about 75% of global energy needs will be provided by hydrocarbon fuels at least up to 20354.

However, as a recent KPMG study showed, the growth of the electric transport fleet can significantly affect the demand for refined products5. What seems like a distant prospect today may affect a business earlier than previously expected. Energy electrification is gaining momentum, and companies around the world are seeking low-carbon energy sources.

This trend suggests the need to include nontraditional fuel development functions in the asset portfolio; for example, infrastructure for recharging electric vehicles.

ones, such as low-carbon energy. Additionally, creating partnerships and alliances can be an attractive way to acquire new competencies and technologies or enter new markets without significant costs.

Trends in the oil and gas (O&G) industry in 2019 include increased diversification to manage uncertainty about the future of hydrocarbon fuels and increased tension around trade negotiations globally. Such diversification boils down primarily to major takeover deals by leading O&G corporations, such as BP and TOTAL, which are known for their electro-vehicles (EV) charging infrastructure projects. However, smaller takeover transactions can also strengthen existing capacities and build up new

Determining whether a transaction results in an asset or a business acquisition has long been a challenging but important area of judgment.

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Defining a business When considering such transactions, O&G companies must carefully determine whether they represent the acquisition of a business or the purchase of assets, as required by IFRS 3 Business combinations (IFRS 3). Understanding the difference between these two transaction types is important to understanding the accounting principles underlying each type of transaction.

Business combinations are accounted for by applying the acquisition method (also giving rise to goodwill).

However, when accounting for acquisitions of assets, the acquirer allocates the transaction price to the individual identifiable assets acquired, and liabilities assumed, on the basis of their relative fair values. No goodwill is recognized.

IFRS 3 originally defined a business as input and processes applied to that input that have the ability to create output. According to the post-implementation review (PIR) of IFRS 3, this definition was the subject of numerous concerns raised by stakeholders about

interpreting and applying it. The International Accounting Standards Board (IASB), therefore, provided further guidance on the definition of a business6, applicable to businesses acquired in annual reporting periods beginning on or after 1 January 2020.

normal requirements of IFRS 3. This happens when an entity elects not to apply the test or the test is not met.

Assessing substantive processes If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendments provide further guidance to assess whether an acquired process is substantive, with illustrative examples.

Concentrating on fair value Previously in IFRS 3, there was little or no guidance to identify situations where an acquired set of activities and assets is not a business. Aiming to simplify such assessment, the International Accounting Standards Board (IASB) introduced the amendments, including an election to use a concentration test. This is a simplified assessment that results in an asset acquisition, if substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets.

IASB outlined that the presence of an organized workforce is an indicator of a substantive process, because the ‘intellectual capacity’ of an organized workforce, having the necessary skills and experience following rules and conventions, may provide the necessary processes (even if they are not documented).

The steps for this assessment are outlined below:

Entities may elect whether or not to apply the concentration test on a transaction-by-transaction basis.

Yusuf Hassan Partner Head of Accounting Advisory Services KPMG Lower Gulf T: +971 4 424 8912 E: yusufhassan@kpmg.com

It is perhaps worth mentioning that it is still mandatory to perform a detailed assessment applying the Assess inputs

Input required?

No

Yes Process applied to inputs?

No

Yes

Is the process substantive?

Outputs at the acquisition dates?

Yes

No

Apply para, B12C

Apply para, B12B

Workforce with skills to perform process that is critical to continue producing outputs

Yes

Workforce with skills to perform process that is critical to develop/convert other acquired inputs into outputs?

No Process is unique/scarce or cannot be easily replaced?

Yes

Yes

No

Conclusion

No Input and process together significantly contribute to ability to create output?

Yes Business combination

No Asset acquisition

The changes mean that the new definition of a business is narrower, which could result in fewer business combinations being recognized. The amendments may require organizations within the O&G sector to carry out complex assessments to decide whether a transaction is a business combination or an asset acquisition7.

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The need to keep abreast of sweeping tax reforms Organizations in the ENR sector must remain aware of developments in applicable tax laws, affected by factors including globalization, technological innovation, and geopolitical, regulatory and economic change.

Stuart Cioccarelli discusses the main themes relevant to the industry.

For a region that has historically been perceived to be largely free of taxes, there has been a radical shift in the local tax landscape in recent years.

Globally, tax initiatives are being implemented to accommodate requests from the Organization for Economic Co-operation and Development (OECD), under the Base Erosion and Profit Shifting (BEPS) project, which aims to combat tax avoidance. Transfer pricing changes in the region call for compliance with country-by-country reporting requirements. There is an increased need for transparent exchange of information by regulators and tax authorities as economies acknowledge the interdependence on other countries, within the region as well as globally. This is underscored by a widening tax treaty network and bilateral trade agreements.

Regional introduction of new taxes In an effort to diversify revenues from the oil and gas (O&G) sector in the region, the GCC states have committed to framework agreements to implement value added tax (VAT) and excise tax. Four GCC states have already introduced these (Oman currently only having implemented excise tax), with the remaining two expected to do so by late 2020 or 2021.

The ENR sector has predominantly been the driving force of the UAE economy, with the majority of reserves located in Abu Dhabi. There has been increased business activity in this emirate in 2018 and 2019, with up to 40% interests being granted to international oil and gas companies in both onshore and offshore concessions.

In addition to fiscal reforms, there have been further changes to commercial company law, which now permits

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up to 100% foreign ownership, as well as dual licensing in some free trade zones.

Investment structure One of the major reforms to the UAE market has been the relaxation of foreign investment regulations. The new rules will allow foreign investors to establish UAE (rather than offshore) corporate hubs for ring-fencing countryspecific ENR activities.

To ensure 100% control, the previously prevalent practice in the ENR sector has been to establish a local branch of the foreign company that would be party to the concession.

With changes to the Foreign Direct Investment (FDI) law effective from 1 January 2019, foreign shareholders may now own up to 100% of UAE companies incorporated outside free zones (“Onshore”). Permitted foreign ownership is determined on the basis of a “Negative list” (where the relaxation of the 51% UAE national shareholding requirement will not apply) and “Positive list” (more than 49% of foreign ownership will be permitted). In addition, most Free Trade Zones (FTZs) are now granting dual licenses that permit FTZ-registered businesses to carry out operations on the mainland.

The Abu Dhabi Global Market (ADGM) FTZ recently announced a collaboration with the Supreme Petroleum Council (SPC). Foreign concession holders will now be permitted to establish ADGM registered entities. These may obtain a license to provide onshore and offshore oil field and facilities services (subject to receiving necessary approvals).

Fiscal regime applicability to the ENR sector Taxation of the ENR sector in the UAE was originally established through Emiri decrees (modeled after the

Abu Dhabi Income Tax Decree of 1971). However, unlike other jurisdictions, the UAE fiscal regime is unique: over time, each concession is issued a specific Fiscal Letter that governs the taxation of foreign concession holders and petrochemical companies.

In Abu Dhabi, the Fiscal Letter and accompanying procedures supersede the Abu Dhabi Income Tax Decree.

The terms of the Fiscal Letter vary depending upon whether the subject is a petrochemical company, or whether it is an onshore or offshore concession. For petrochemical companies, tax is imposed on the profits of the entity. For foreign concession holders, tax is imposed on the share of profits allocated to the oil lifted.

The Fiscal Letters are broadly aligned, that is, the income is subject to corporate income tax and royalties.

However the computation of tax and applicable rates can vary depending on the Fiscal Letter. In Abu Dhabi, the Fiscal Letter is determined by the SPC and agreed with the respective concession holder on a confidential basis. The tax rates are agreed upon on a case-by-case basis by the concession holders and the SPC. The SPC formulates and overseas the implementation of Abu Dhabi Petroleum Policies. It is responsible for administering, assessing and collecting corporate tax for foreign upstream companies and petrochemical companies in Abu Dhabi. Each concession holder is responsible for calculating, reporting and payment of its taxes pertaining to its participating interest in the concession as per the Fiscal Letter, and to make a payment of corporate income tax and royalty to the SPC. The compliance process is performed over a two year cycle. The first year requires payments of estimated taxes on a monthly and quarterly basis and a true up calculation is performed in the second year based on actual data. A tax audit is also conducted by the SPC in the second year by its appointed auditor.

The lasting impact of VAT The Federal Tax Authority (FTA), a government entity, was established in 2016 and is responsible for administering, collecting and

enforcing country-wide taxes in the UAE. Currently the only federal taxes under its jurisdiction are excise tax (from 1 October 2017) and VAT, implemented with effect from 1 January 2018.

There are no special VAT regimes or exemptions for businesses operating in the O&G industry. VAT is applicable on most supplies of goods and services at the standard rate of 5%, unless there is a specific provision for applying the zero rate or exemption.

Sales of crude oil and natural gas are specifically zero rated, whether as a domestic supply or as an export. As a result, most concession holders will be obliged to register for VAT to report the sales of oil and gas. A credit for VAT incurred on expenditure will thus be permitted.

There is a particular provision for local sales of specified hydrocarbons to customers who are wholesalers or will use them to produce energy.

The supply is deemed outside the scope of VAT but subject to a domestic reverse charge on the part of the purchaser, provided certain conditions are satisfied. This may represent an important cashflow advantage as neither party has to fund the VAT upfront, but reports it using VAT accounting entries.

Stuart Cioccarelli Partner and UAE Head of Tax KPMG Lower Gulf T: +971 2 401 4881 E: scioccarelli@kpmg.com

VAT registered entities must comply with UAE VAT legislation, file periodic returns, and pay any associated VAT liability within specific time limits.

A harsh administrative penalty is applicable for non-compliance.

Entities in a refund position, where the VAT credits exceed the VAT liability, are entitled to a repayment. Historically, the FTA has seemingly been comparatively slow in processing these refunds, but recently there has been a noticeable increase in VAT credits received.

The regulatory landscape for investment, and consequently the tax environment, in the O&G industry is complex. It involves acquiescence with the law at both emirate and federal level, while concurrently aligning with global tax directives. Compliance depends upon thorough, complete understanding of obligations under the specific fiscal regime, as well as under complementary federal taxation laws.

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Adoption of renewable energy sources in response to climate change Sustainable energy innovation is of critical importance in achieving the global climate targets. Vivek Agarwal explores how technological solutions and a canny funding strategy can help make adopting renewable energy sources more feasible.

In 2017, human-induced global warming hit approximately 1°C above pre-industrial levels8.

The Paris Agreement on Climate Change in 2015 achieved quasi-global consensus on the necessity for governments, industry players, and society as a whole, to limit global warming to below a 2°C increase9. This will not happen without a fast transition toward adopting low-carbon technologies to slow the pace of climate change. Innovation must play a key role in the development of sustainable clean energy technologies as part of the endeavor to find viable substitutes for the carbon-emitting technologies that have become embedded in our everyday lives.

Unlike solar and wind power, many other clean energy technologies are generally not yet mature nor sufficiently cost-competitive enough to be deployed on a commercial scale. The geographical, political and social disparities and availability of resources around the globe will likely require a broad range of different sustainable energy technologies to be developed.

The UAE’s commitment to sustainability The UAE is striving to move towards a more sustainable future. The UAE Energy Strategy 2050 aims to double the contribution of clean and nuclear energy in the total energy mix and reduce the power-generation carbon footprint by 70% of its current level. By the end of 2019, the government is aiming to make 10% of all citizens’ 90

homes in Dubai energy self-sufficient, with free solar power, as the UAE works to implement its energy goals. The homes will then be connected to the Dubai Electricity and Water Authority (DEWA) grid.

The construction of the fourth phase of the Mohammad Bin Rashid Al Maktoum Solar Park has advanced further with the completion of 128 pillars of the project’s solar tower. It is the largest single-site solar energy project in the world, with a planned total production capacity of 5 gigawatts by 203010.

The UAE is also looking at nuclear power and waste to diversify away from oil and gas1. Five waste-to-energy projects are underway across the UAE, for instance the Sharjah Waste to Energy Facility. The 30 megawatt project, a joint venture between sustainability pioneer Bee’ah, and Masdar, will process more than 37.5 tonnes of municipal solid waste per hour to generate electricity sustainably. It is expected to divert more than 300,000 tonnes of municipal waste away from landfills every year11.

The role of technology in sustainable energy The research and development (R&D) process for clean and sustainable energy technologies is characterized by high-potential technological risk. The risk is not only high in the early development stage but remains so until after a product reaches commercialization. For example, wind turbine technology, even though it is now a commercially competitive solution, requires ongoing R&D and improvement, in order to both achieve optimal production and installation cost efficiencies, and to increase the wind yield. This is particularly relevant in an era when tariff support for renewables is decreasing rapidly, thus requiring ever greater efficiencies from

existing technology solutions. Also, the costs to validate prototypes and demonstration models are much higher than for pure digital/software innovations. Currently much longer periods are required to validate deeptech sustainable energy products.

Barriers to sustainable energy innovation The nature of sustainable energy innovation — namely, the high technological risk, the financial cost and the strong commercial competition from established, lowcost (but potentially high-emitting) products and solutions — represents the key systemic hurdles for the fasttrack development of new innovations.

Sustainable energy innovation can be a highly expensive endeavor. To help meet all the financing requirements, both private and public investments are needed. The reality is that innovators of early-stage sustainable energy solutions find that there is usually a significant financing gap and public and private funding are typically not well aligned to meet this need for various reasons. Public sector investors can find it difficult to identify the right innovators and determine the most appropriate projects in which to invest. They often need to comply with strict internal investment rules and return expectations. Furthermore, the public sector can lack the commercial, financial and entrepreneurial skills to assess investment opportunity, and there may be a paucity of personal accountability for investment success.

Favorable energy regulations, funding policies and institutions to foster innovation are also vital in creating a fertile environment for sustainable energy innovation. Stable policies, independent of political cycles, play a major role in providing the necessary certainty for innovators and private investors. An ongoing absence of a common consensus on the future design of the energy landscape between national governments is leading to the phenomenon that most sustainable energy

R&D is still performed on a local level with too little cross-country knowledge exchange and the loss of collaborative synergy potential.

Possible solutions Aligning public and private investment is key to securing the required funding, especially at critical stages of technology development.

One potential approach could involve creating financial mechanisms that attract and blend both private and public money. These public-private co-investment mechanisms are designed to reflect the risk profiles of the different parties involved.

This could be combined with structured funds which use portfolio approaches, providing returns on the overall performance of all invested projects. Investors are thus not dependent on the performance of individual projects. Such frameworks can help provide a secure and stable framework for innovators and can be complemented with technological and financial assistance. This approach has been used effectively to push the climate change agenda in the developing world; examples include the Danish Climate Investment Fund and the Global Climate Partnership Fund. There is no reason it could not be used in a similar fashion for sustainable energy innovation.

Vivek Agarwal Director, Audit KPMG Lower Gulf T: +971 2 401 4816 E: vivekagarwal@kpmg.com

One of the main challenges for private and public investors is to find the right projects to fund.

For industry players, investing in innovative start-ups is a way to outsource the innovation process until ideas are demonstrated and tested enough to be incorporated into their core business. Other sector players, such as car manufacturers, may choose to keep most of the innovation process in-house. They often own large R&D centers to test and develop new solutions.

The investment process of utilities and oil and gas companies into innovative start-ups can be a winwin process for both the investors and the start-ups. The due diligence approach must therefore take into account the insecurities and scaling 91

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potential of business cases of early-stage companies.

Considering the restricted resources of these early-stage companies, a due diligence process should not obstruct the day-to-day business of start-ups. The findings of legal, tax and financial due diligence can produce valuable insights for the start-up entrepreneurs, who may use them to improve their organizational structures, reporting and operations.

There are many different ways to support innovation start-ups other than just the provision of funding. For example: – development of business strategy and shaping a comprehensive business plan for innovators – identifying strategic business partners, particularly larger industrial concerns to test prototype and demonstration models – helping innovators through the maze of intellectual property protection – setting up the right organizational structures and processes right from the start so that the start-up can function like a proper business with appropriate corporate governance.

Next steps Sustainable energy innovation is of critical importance to achieve the global climate targets; more sustainable energy technologies need to be developed and commercialized faster. Breakthrough energy technologies with broad applicability and affordability are needed to substitute incumbent solutions and lifestyles. In order to tackle systemic hurdles in the energy innovation process, it is critical to foster a culture of policy discussion and to increase the involvement of both private and public stakeholders in the energy innovation ecosystem.

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Sustainable energy innovation is of critical importance to achieve the global climate targets; more sustainable energy technologies need to be developed and commercialized faster

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Fostering passion for an oil and gas career among mil ennials Millennials may harbor some misconceptions about the industry. Peter Haugaard elaborates on how to alter their views and introduce them to a sector with promising career opportunities.

Research indicates that more recent generations may view oil and gas (O&G) as an industry in decline rather than an innovative sector in which to build a future—this may be more detrimental to the environment and society than beneficent. These misconceptions could be keeping some millennial talent from exploring careers in O&G. When you ask millennials to identify their preferred career path, they often name employers in technology, public service, and corporate social responsibility. Oil and gas does not always make their list because they do not think it matches their values.

Millennial values differ Generally, millennials prize purpose and meaning in their careers. For instance, they often prefer to join and stay with companies that clearly articulate their principles, according to Gallup research. It also indicates that millennials seek career mobility, with 87% saying that professional development or career growth opportunities are very important to them. The Gallup findings also suggest they are willing to change companies to gain that experience12.

Yet at the same time, millennials also tend to seek more of a work-life balance than previous generations, and their careers are not necessarily the most important part of their lives. When they are at the office, they typically prefer collaborative effort to solitary work, and value inclusion and diversity.

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Finally—and a key point for oil and gas companies to remember—this generation grew up with ubiquitous technology, and they want their employers’ enterprise technology to be up to date and on par with what they use in their personal lives. A remarkable 93% say that a business having the latest technology is an important value proposition when choosing a workplace, and 42% of them say they would leave if the technological infrastructure was substandard13.

Focus on learning and innovation Millennials are frequently looking for employers who will expose them to Industry 4.0 (i4.0), but they may not realize that their opportunity to work with new technologies does not have to be at a traditionally defined “technology” firm.

The i4.0 technologies that O&G companies have implemented over the last decade, under economic and regulatory pressure to continually make operations safer and more efficient, are in line with what many millennials want exposure to. Examples include automated production, remote asset monitoring through Internet of Things sensors, and data analytics to crunch vast amounts of valuable information.

ExxonMobil and the Massachusetts Institute of Technology’s effort to leverage artificial intelligence to detect natural seep in deep ocean waters is the kind of project millennials can get excited about14. Meanwhile, BP’s upstream chief operating officer for production, transformation and carbon recently said that millennial employees are demanding the company’s teams work in a more agile way to complement the increasing deployment of these digital tools15.

Forty-six percent of millennials intending to stay at their current organizations for at least another five years say they receive help understanding and preparing for i4.0.

Yet among those intending to leave within two years, that figure dropped to 28%.

Vaulting ambition Some employers may tend to labour under the misapprehension that millennials have no loyalty. Yet, while they are more willing to move for the right opportunity, their job tenure is no shorter than that of Generation X. Research suggests that millennials set themselves similar career goals as those of prior generations. They nurture a desire to make a positive impact on their organizations, like baby boomers. They would also like to work with diverse groups of people, like Gen X. Part of the misconception may be driven by a slower progression through the various life stages than previous generations, according to Nielsen16.

For a number of millennials, growing up during the financial crisis delayed reaching the personal economic security they needed in order to move out of their parents’ houses and start families. This makes it important to view millennials as individuals, rather than a monolithic group, while at the same time acknowledging their needs and values for the life stage they are in.

Attracting talent The O&G sector would do well to consider tailoring its employee value proposition to match millennial values. High compensation alone may not attract this cohort, identified as one of the most charitable generations in history. The millennial focus on altruism offers organizations

a unique opportunity to refocus their employer brand so it articulates a social mission that differentiates themselves from competitors17.

Some O&G organizations may need to redefine their core competencies, which in turn can update and create new career paths. By redesigning and communicating new careerprogression opportunities, companies can reinforce their commitment to the current workforce to better engage and retain talent, while attracting employees with the skills needed in the future.

New technology—automation in particular—creates opportunities to attract innovation- and careerfocused employees as organizations shift their employee base toward higher-value work like strategy and analytics, and away from repetitive, manual tasks. Not only does this allow O&G organizations to remain relevant in the marketplace, but the availability of more strategic and advisory roles can lead to higher job satisfaction and improved retention.

Peter Haugaard Head of People, Performance and Culture KPMG Lower Gulf T: +971 4 356 9560 E: phaugaard@kpmg.com

Finally, to create a pipeline of fresh talent, O&G companies may do well to consider developing relationships with local universities, offering internship programs and externship programs as well as sponsoring events like ‘hackathons’ and design sprints.

Industry leaders can help combat misperceptions by sharing stories from current employees that demonstrate a positive experience.

In particular, potential employers may choose to highlight that O&G offers some of the most innovative and rewarding career opportunities of any international industry.

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Building robust ethics and compliance frameworks a key priority Ethics and compliance programs in the energy industry are generally more mature than in other sectors. However, the results of the KPMG 2019 Chief Compliance Officer (CCO) Survey demonstrated that certain areas still need development, explains Sudhir Arvind.

Heightened public, investor and board attention to ethics-related issues—many of which made major headlines in recent years—is driving an increased focus on compliance programs across all industries.

The pressure is compounded on chief ethics and compliance officers (CCOs) in the energy industry where companies face unparalleled regulatory and public interest scrutiny from governments and citizens around the world. There is a particular emphasis on environmental impact and the potential for bribery and corruption at international operations. This constant examination by a broad range of stakeholders, combined with shareholders’ expectations for strong financial results, can sometimes place energy companies in the unenviable position of juggling competing demands.

Meanwhile, rapid technological advances and expanding digitization are accelerating the convergence of business models and markets, leading to greater awareness of data breaches, potentially questionable sales practices, organizational misconduct and other possible high-profile risks.

The introspective CCO In January 2019, KPMG surveyed 220 CCOs representative of the largest organizations across multiple industries18. Of those, approximately 13% operated in the energy and natural resources industry.

Although the research was conducted in the US, as the oil and gas (O&G) sector is highly multicultural, main

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themes and behavior may be extrapolated to apply to organizations across the world.

Findings from the survey indicated that ‘investigations’ is the number-one ethics and compliance activity that energy-sector CCOs plan to enhance in 2019. Many O&G companies receive complaints into a centralized team.

However a greater proportion of CCOs from the energy sector, compared with those from other industries, stated they do not conduct, document, or adequately address root-cause analysis of operational issues.

Recognizing the need for improvement, 61% of energy CCOs surveyed said they will focus on developing investigations capabilities in the coming year. The effort requires some urgency as regulators are stepping up their focus on root-cause analysis and remediation as part of assessing corporate compliance programs.

Establishing protective frameworks More energy CCOs expect to enhance their due diligence efforts in 2019 than the cross-industry average. O&G companies with a global footprint rely on a host of intermediaries, opening the door to greater third-party corruption risk. Unfortunately, the energy sector is sometimes found to be below average in seeking to integrate due-diligence processes and use a central system for third-party risk management.

A devolved model for third-party risk management allows for flexibility across geographically and operationally diverse businesses. However it can lack central oversight to ensure consistency and quality of risk management, risks duplication, and likely creates increased costs that could be avoided.

On the other hand, a far greater proportion of energy CCOs are focused on improving anti-bribery and corruption (ABC) compliance programs than CCOs in any other sector. As global O&G companies explore new regions and expand operations across borders, they are challenged by a complex and dynamic framework of governments, regulations and local partnerships other sectors do not often face. For those operating in high-risk areas, the global regulatory focus on bribery and corruption issues is an incessant drum beat.

Concerns have been amplified in recent years by growing financial penalties and reputational risks. Despite many energy companies investing in improving their ABC programs, almost half of energy CCOs in the survey said they plan to refine those programs further.

Sudhir Arvind Partner Risk consulting KPMG Lower Gulf T: +971 2 401 4833 E: sarvind@kpmg.com

Meanwhile, companies across the board are increasingly recognizing the need for real-time detection. As data access and analytics capabilities advance, many are looking to automate monitoring activities, such as analyzing third-party spend.

In fact, energy companies have diverged from other industries with respect to enhancing monitoring and testing overall. Only 46% of energy respondents are planning to enhance such activities, compared with 65% from all sectors.

Spotlight on ethics and culture More than two-thirds of energy CCOs surveyed put refining ethics programs at the top of their list as part of their regulatory and compliance obligations. The #MeToo movement, the power of social media, and public access to real-time data and information, are just some issues pushing CCOs to institute an ethical culture at their companies. Societal pressure on corporations to act ethically spurs them to make an effort to go beyond mere regulatory compliance. As the survey suggests, the potential business impact of ethical misconduct, and increasing board and C-suite belief in the importance of culture, are key drivers behind the corporate world’s growing interest in developing ethics programs.

Nearly a third of energy CCOs seek to better incorporate culture into their compliance efforts. In fact, as per the survey, they consider culture a top-five area for improvement, according it a higher rank than their peers in other industries. They are also more focused on integrating processes, activities and controls that drive an ethical and compliant culture than CCOs from other sectors.

This is no surprise given the attention that culture is receiving from boards and other societal stakeholders in the O&G and wider energy sector.

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Findings from the Global CEO Outlook 2019 The fifth annual Global CEO Outlook, KPMG’s flagship thought-leadership program, contains timely insights into the challenges and opportunities for CEOs of the largest corporations from around the world.

Unlike other CEO surveys, KPMG’s report is forward-looking and focuses primarily on the outlook of CEOs for the next three years. With our research partner, Forbes, we surveyed nearly 1,300 CEOs in 11 of the world’s largest economies and 11 key industry sectors (automotive, banking, insurance, investment management, infrastructure, life sciences, technology, telecom, manufacturing, retail/ consumer markets, and energy/utilities). The ten core markets are: Australia, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, UK and US. What did CEOs tell us this year?

Two-thirds of all chief executives surveyed believe that agility is the new currency of business. If they fail to adapt to a constantly changing world, their business will become irrelevant.

The environmental, economic and technological headwinds we have seen emerge in recent years are no longer perceived as short-term. While CEOs continue to see exciting growth opportunities, they are set against a complex, volatile and increasingly uncertain environment.

To be resilient, organizations need to be comfortable disrupting their business models if they want to continue to grow.

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Focus on energy Three-quarters of CEOs across all sectors cited climate change as a top risk to their organization’s growth. “Climate change has evolved beyond just an environmental issue to a pressing financial one as CEOs are feeling investor and stakeholder pressure to move the world away from a sole reliance on fossil fuels,” said Regina Mayor, Global and U.S. Sector Leader for Energy and Natural Resources at KPMG. “As we continue to consume energy at a record pace, organizations are thinking about ways to incorporate a mix of energy sources, made up of both fossil fuels and renewables.”

Of the 1,300 CEOs surveyed in the 2019 CEO Outlook, 130 were from top global energy companies.

More than 80% of energy CEOs say that they’re personally leading the technology strategy for their organizations, and 79% are placing more capital investment in buying new technologies to improve their organization’s resiliency.

According to the report, while 94% of energy CEOs are confident in their business’ growth prospects, only 65% feel the same way about the global economy. To pursue growth objectives over the next three years, 66% of executives plan to increase investment in disruption detection and innovation processes. Other strategies include setting up accelerator programs for start-up firms, joining industry consortia focused on development of innovative technologies, and pursuing corporate venturing.

2019 KPMG Global CEO Outlook: Energy CEOs name climate change as the #1 risk to organizational growth

Dynamic risk landscape

Conflicting global outlook

Societal concerns over climate change mean that stakeholders—from customers to regulators—are putting increasing pressure on organizations and their leaders to respond.

Energy CEOs are confident in the underlying fundamentals and growth prospects of their businesses, but this confidence is not matched by their views on the global economic outlook.

76

%

of all CEOs surveyed say their organization’s growth will depend on their ability to navigate the shift to a low carbon, clean technology economy.

94

of energy CEOs are confident in their own business's growth prospects over the next 3 years. However, only

65

feel the same way about the global economy.

%

Top threats to growth: Environmental and climate change

Disruptive technology

%

Return to territorialism

Leading in uncertain times To build a resilient enterprise that capitalizes on disruption, energy CEOs are pressuring their organizations to change and adapt continually.

60

%

say that acting with agility is the new currency of business and being too slow risks bankruptcy.

66

%

plan to increase investment in disruption detection and innovation processes.

Changing from within Energy CEOs are embracing a new way of thinking about talent, workforce strategy, and the need for upskilling.

80%

are personally leading the technology strategy for their organization.

79%

are making more capital investment in new technologies to improve their organization’s resiliency.

85%

plan to upskill employees to new digital capabilities to develop a more effective workforce.

© 2019 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 886506

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Source material Price volatility and its impact on the oil and gas sector Based on information from: Oil & Gas Industry: 2019 Trends.

Diego Calvetti, KPMG Argentina.

References i USD/barrel

https://assets.kpmg/content/dam/kpmg/ar/pdf/pg-industria-del-pgtendencias-para-2019-eng.pdf This report relied upon the following sources:

1 “Argentina Energy Plan. Guidelines”. Office of Energy Planning Office of Energy Governance, 2018.

World Bank Commodity Price Data –Pink Sheets– and World Bank Commodities Price Forecast – MINEM 2018 – COMTRADE statistics – “World Bank Commodities Price Forecast”, World Bank, October 2017.

– World Bank - “Commodity Markets Outlook. The changing of the guard: Shifts in commodity demand”. World Bank, October 2018.

– World Bank - “World Bank Commodities Price Forecast”. World Bank, October 2017.

– HUB Energía – “Unconventional Oil & Gas in Argentina. Annual Report 2017”. HUB Energía, 2017.

– KPMG - “Industria del P&G: Cuatro temas relevantes para 2018” (“Four relevant issues in the oil and gas industry for 2018”), KPMG in Argentina, 2018.

– KPMG - “Industria del P&G: Cuatro temas relevantes para 2017” (“Four relevant issues in the oil and gas industry for 2017”), KPMG in Argentina, 2016.

– KPMG – “Petróleo y Gas - Balance de la década, perspectivas y desafíos del sector en la Argentina (2005- 2015)” “(“Balance for the decade, prospects and challenges for the Argentine O&G sector.

2005-2015”), KPMG in Argentina, 2015.

– MINECO - “Argentina Energy Plan. Guidelines”. Office of Energy Planning. Office of Energy Governance, Ministry of Economy, 2018.

– MINEM – “Escenarios Energéticos 2030” (“Energy Scenarios for 2030”), Energy Scenarios and Project Assessment Division, Department of Energy Scenarios and Project Assessment, Office of Energy Planning, MINEM, 2017.

Adoption of renewable energy sources in response to climate change Sourced from New drivers of the renewable energy transition, Part 3: The critical importance of supporting and accelerating sustainable energy innovation. Mike Hayes, KPMG in Ireland, and Thekla von Bülow, KPMG in Germany https://assets.kpmg/content/dam/kpmg/xx/ pdf/2018/10/new-drivers-of-the-renewable-energy-transtion-part3.pdf Fostering passion for an oil and gas career among millennials Sourced from Millennial values: Building passion for an oil and gas career in the next generation. Matt Campbell and Crystal Thompson. https://home.kpmg/us/en/home/insights/2019/05/millennial-valuesbuilding-passion-for-an-oil-and-gas-career.html Building robust ethics and compliance frameworks a key priority Sourced from Drilling Down: Enhancing ethics and compliance. Brent McDaniel and Trevor Canova, KPMG US. https://home.kpmg/us/en/ home/insights/2019/08/drilling-down-enhancing-ethics-and-compliance. html

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ii Million British thermal units

2 https://www.aa.com.tr/en/energy/international-organization/analysisopec-losing-control-share-in-global-oil-market/27117 3 https://gulfnews.com/business/11-trillion-in-investment-needed-for-oiland-gas-industry-1.66310511) 4 https://www.oecd.org/greengrowth/greening-energy/49157219.pdf 5 Fueling the future. Preparing the downstream oil and gas industry for the mobility revolution, 2018. https://home.kpmg/us/en/home/ insights/2018/01/fueling-the-future.html 6 https://www.ifrs.org/news-and-events/2018/10/iasb-amends-definitionof-business-in-ifrs-standard-on-business-combinations/ 7 https://home.kpmg/xx/en/home/insights/2016/06/definition-businessmerger-acquisition-accounting-proposed-amendments-slideshare-ifrs3ifrs11-290616.html 8 https://www.ipcc.ch/sr15/chapter/chapter-1/ 9 Intergovernmental Panel on Climate Change (IPCC), 2018, Global Warming of 1.5 °C, http://www.ipcc.ch/report/sr15/ 10 https://www.dewa.gov.ae/en/about-us/media-publications/latestnews/2019/03/mohammed-bin-rashid-al-maktoum-solar-park 11 https://gulfnews.com/uae/environment/bright-outlook-for-uaerenewable-energy-sector-1.1551779126693 12 https://www.gallup.com/workplace/236477/millennials-work-life.aspx 13 https://www.forbes.com/sites/forbestechcouncil/2018/06/28/ meeting-millennial-expectations-in-these-four-areas-oftechnology/#672a288d4ffc 14 https://insights.globalspec.com/article/7831/exxonmobil-and-mitspearheading-ai-ocean-exploration 15 https://www.forbes.com/sites/markvenables/2019/01/31/change-ofculture-reaps-rewards-for-bps-digital-transformation/#cab9bf16199c 16 https://www.asiconferences.com/wp-content/uploads/2016/11/ Millennial-Life-Stages-Report-April-2016.pdf 17 https://advisory.kpmg.us/content/dam/advisory/en/pdfs/purposedriven-work.pdf 18 https://assets.kpmg/content/dam/kpmg/bm/pdf/2019/05/2019-ccosurvey.pdf

About KPMG Lower Gulf KPMG Lower Gulf Limited provides audit, tax and advisory services to a broad range of domestic and international clients across all sectors of business and the economy. We work closely with our clients, assisting them to mitigate risks and highlight opportunities.

KPMG Lower Gulf is part of KPMG International Cooperative’s global network of professional member firms. The KPMG network includes approximately 207,000 professionals in over 153 countries around the world. KPMG in the UAE is well connected with its global member network and combines its local knowledge with international expertise, providing the outstanding sector and specialist skills required by our clients.

Established in 1973, KPMG Lower Gulf now consists of approximately 1,300 staff members, including more than 100 partners and directors, across six offices: Dubai (three), Abu Dhabi, Sharjah and Muscat. The KPMG member firm in the United Arab Emirates, along with the member firm in Oman, form KPMG Lower Gulf.

KPMG was the first major firm of its kind to organize itself along industry lines– a structure which enabled us to develop in-depth knowledge of our clients’ businesses and provide them with an informed perspective.

KPMG is widely represented in the Middle East and also has offices in Saudi Arabia, Bahrain, Qatar, Egypt, Kuwait, Jordan and the Lebanon. As well as having many of the region’s leading organizations and government-related entities as its clients, KPMG in the Lower Gulf has been party to numerous milestone engagements in the Middle East.

KPMG Lower Gulf is closely collaborating with Abu Dhabi Global Market Academy (ADGMA), the Abu Dhabi Human Resources Authorities and Abu Dhabi Accountability authorities to deliver the program, Pre-Audit Qualification Training (PAQT). Initially run over the next three years, in its first year it will provide more than 90 UAE nationals with the essential knowledge and training in relation to audit that will equip them to succeed in this field, and thus contribute to the growth and development of the local economy.

Supporting the Determined Official Supplier to the Special Olympics World Games Abu Dhabi 2019 and Official Sponsor of the Global Youth Leadership Summit

107

At Apollo Machine and Welding Ltd. and Apollo-Clad Laser Cladding we are a custom job shop facility that specializes in precision machining and laser cladding. Our state-of-the-art facilities and equipment, cutting-edge technology and highly experienced technicians allow us to manufacture, enhance and repair even the most complex parts.

Over the last 45 years we have grown to become the industry leader and trusted global supplier of oil and gas equipment. Our success can be attributed to our ability to offer complete turn-key solutions. We continually strive to be the “one-stop-shop� for all of our customer’s needs. Visit our website for a complete list of our services.

Apollo Machine is proud to be a strategic supplier of Halliburton Canada.

www.apollomachine.com

Apollo Machine & Welding Ltd. 4141 93rd Street Edmonton, Alberta T6E 5Y3

780-463-3060 Ph 780-463-6348 Fax info@apollomachine.com

Event Info Power Purchase Agreement

7 – 10 June 2020, Dubai 19 – 22 October 2020, Singapore www.infocusinternational.com/ppa

Overview

There are many moving pieces affecting the future of electric power development in emerging market. Unlike the past Independent Power Project models, which featured standardised take-or-pay contracts – today’s market demands more innovative incentives to ensure better availability, better performance, as well as more attractive and sustainable mixtures of fuel sources. Economies throughout developing countries urgently need to master the key tools, models, and lessons learned for transforming and strengthening today’s electricity sector. These include the latest models in negotiating Power Purchase Agreements (PPAs), in designing and managing new competitive power markets, as well as attracting the right mix of renewable energy sources.

This 4-day comprehensive workshop gives you clear explanations of the new models of PPA risk allocation, of designing and managing competitive power markets, attracting private investments in renewable energy, through a series of real case examples of contracts and markets. Case Studies will include real examples from Africa, Middle East, Asia, Europe and North America. Furthermore, cases stimulate independent thinking and discussion among participants.

Benefits of Attending • LEARN about all the essentials of different PPAs • NEGOTIATE fair and sustainable PPAs • STRUCTURE successful PPAs based upon your own company’s risk profile and risk allocation needs • EXPOSE to the frontiers of international experience in IPP development • LEARN theory and practice of pricing and tariff design • ANALYSE the relationship between Public, Private, and Government sector • PERFORM a policy and risk analysis of PPA contracts • EXPLORE a PPA relationship with EPC, O&M, Fuel Supply, and Interconnect Agreement • GAIN the tools and models in directing your country’s electricity transformation and market design plans • IMPROVE your awareness of the common pitfalls and mistakes to avoid in today’s private power investments

• LEAD successful power project finance transactions • IDENTIFY how financial derivatives can be used as an effective hedge of financial and electricity market based risks

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/ppa

4 day course

“Excellent! There are many interesting topics which cover almost all relevant issues in electricity market, such as market reform and PPA negotiation. And the speaker is simply great.”

Head of PPA Section, Electricity Generating Authority of Thailand

Power Purchase Agreement Structuring successful Power Purchase Agreements (PPAs), managing competitive electricity markets & attracting merchant power investments

Book 3 persons and save

$400

7 – 10 June 2020, Dubai 19 – 22 October 2020, Singapore

per person

Benefits of Attending

Who Should Attend

■ LEARN about all the essentials of different PPAs ■ NEGOTIATE fair and sustainable PPAs ■ STRUCTURE successful PPAs based upon your own company’s risk profile and risk allocation needs ■ EXPOSE to the frontiers of international experience in IPP development ■ LEARN theory and practice of pricing and tariff design ■ ANALYSE the relationship between Public, Private, and Government sector ■ PERFORM a policy and risk analysis of PPA contracts ■ EXPLORE a PPA relationship with EPC, O&M, Fuel Supply, and Interconnect Agreement ■ GAIN the tools and models in directing your country’s electricity transformation and market design plans ■ IMPROVE your awareness of the common pitfalls and mistakes to avoid in today’s private power investments ■ LEAD successful power project finance transactions ■ IDENTIFY how financial derivatives can be used as an effective hedge of financial and electricity market based risks

■ Contract / Agreement Negotiators ■ Legal / Regulation / Compliance / Policy Analysts ■ Business Development Managers ■ Commercial Managers ■ Finance Controllers / Treasurers ■ Corporate Planners ■ Business & Accounting Analysts ■ Sales & Trading Managers ■ Structured / Project Finance Analysts ■ Economists / Investors ■ Chairman / CEO / Directors From sectors: ■ Electric Regulators & Ministries ■ Power & Utility Companies ■ IPP Developers ■ Banks / Investors ■ Energy Fuel Suppliers (Oil, Gas, Coal and Renewables) ■ Law Firms & Consultancy

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/ppa

Event Info Renewable Power & Energy Mix

15 – 17 June 2020, Singapore www.infocusinternational.com/energymix

Overview

In increasing parts of the world, renewable power sources – particularly solar and wind – are now the cheapest way to generate electricity. This, combined with being crucial mechanisms by which to lower the carbon emissions of energy systems, means they are also the fastest-growing supply of new power generating capacity. It is vital that anyone involved in electricity systems, from new power project developers to incumbent utilities, investors and policymakers, has a thorough understanding of how renewables are impacting the energy mix and the wider power business.

In particular, the transition away from conventional thermal generators towards renewable ones has profound implications for how power systems are designed, operated and policed – on a variety of timescales from sub-second management to long-term capacity planning. These in turn create both new market opportunities and significant businesses risks within the sector, not just for those involved in system-wide aspects such as the grid or policy, but for those involved in individual project development too.

In three intensive and informative days, this course explains and illustrates the key impacts of renewable power integration into modern energy systems, based on global lessons and examples. Most importantly it provides attendees with a market assessment framework and recommended approach to identifying and quantifying how these integration challenges change the specific new opportunities and risks facing their own businesses.

Benefits of Attending • Learn from global experiences in renewable power project development and integration • Understand how technical challenges translate into financial and business opportunities • Illustrate key system impacts such as investment requirements, energy costs and capacity margins using simple • Quantitative models • Analyse and discuss evolving value chain roles, partnerships and competitors • Assess the market potential for solutions such as energy storage, virtual power plants and smart grids • Gain an insight into the influences of market liberalisation and policy shifts Who Should Attend • Renewable power project developers • Power plant owners and operators (utilities and IPPs) • Transmission/Distribution system operators • Policymakers and policy advisors

• Investors, including commercial and development banks, venture capital and private equity • Vendors & EPC contractors • Large energy users •Commercial energy-sector services suppliers (law, insurance etc.)

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/energymix

BRAND NEW COURSE “I enjoyed the course with lots of demonstrations and case studies. The facilitator was just marvellous, up to the game. It was a value for money workshop.”

Director of Finance, Electricity Generation Company Malawi

Renewable Power & Energy Mix Essential approaches to market assessment, power project opportunity & business risk analysis

15 – 17 June 2020, Singapore

Benefits of Attending ■ Learn from global experiences in renewable power project development and integration ■ Understand how technical challenges translate into financial and business opportunities ■ Illustrate key system impacts such as investment requirements, energy costs and capacity margins using simple quantitative models ■ Analyse and discuss evolving value chain roles, partnerships and competitors ■ Assess the market potential for solutions such as energy storage, virtual power plants and smart grids ■ Gain an insight into the influences of market liberalisation and policy shifts

Who Should Attend ■ ■ ■ ■ ■ ■ ■ ■

Renewable power project developers Power plant owners and operators (utilities and IPPs) Transmission/Distribution system operators Policymakers and policy advisors Investors, including commercial and development banks, venture capital and private equity Vendors & EPC contractors Large energy users Commercial energy-sector services suppliers (law, insurance etc.)

Book 3 persons or more and save

$300 each

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/energymix

Event Info Mastering Wind Power

8 - 10 July 2020, Singapore www.infocusinternational.com/wind

Overview

A comprehensive, up-to-date and business-focused roadmap to success in delivering wind power growth, today and tomorrow.

Attendees will leave with an excellent understanding of all the key factors facing wind power developers and investors, from resource assessment and energy production complexities, through project development and planning challenges, to financial returns and risks.

The course schedule is designed to be highly participative, including time to work in groups to apply and illustrate the learning points throughout the course. To do so, attendees will utilise online tools, wind resource datasets, energy yield, financial and other simple calculations, along with structured discussions on key planning and market environment considerations.

In keeping with the business-focused theme of the course, these illustrative exercises are designed to provide time-efficient clarification of the key course takeaways, aimed at commercially-focused business developers and investors. They are therefore deliberately made accessible to non-experts, not designed to replicate the complex or in-depth detailed planning undertaken – over much longer periods! – by experienced engineers and technical teams.

Course Highlights • Learn from global experiences in wind power project development • Understand unique properties of wind resource, and how these feed into financial risk analysis • Gain a business-focused, up-to-date perspective on current and emerging wind technology innovations and project delivery best practices • Analyse and discuss practical and project delivery risks facing wind power projects, including key stakeholder engagements • Get hands-on with a financial model to better understand financial risks and returns for wind power projects • Compare and contrast the unique extra costs and complexities of offshore wind projects with those onshore Who Should Attend • Renewable power project developers • Power plant owners and operators (utilities and IPPs) • Transmission/Distribution system operators • Policymakers and policy advisors

• Investors, including commercial and development banks, venture capital and private equity • Vendors & EPC contractors • Large energy users • Commercial energy-sector services suppliers (law, insurance etc.)

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/wind

BRAND NEW COURSE “I enjoyed the course with lots of demonstrations and case studies. The facilitator was just marvellous, up to the game. It was a value for money workshop.”

Director of Finance, Electricity Generation Company Malawi

Mastering Wind Power 8 – 10 July 2020, Singapore

Benefits of Attending ■ Learn from global experiences in wind power project development ■ Understand unique properties of wind resource, and how these feed into financial risk analysis ■ Gain a business-focused, up-to-date perspective on current and emerging wind technology innovations and project delivery best practices ■ Analyse and discuss practical and project delivery risks facing wind power projects, including key stakeholder engagements ■ Get hands-on with a financial model to better understand financial risks and returns for wind power projects ■ Compare and contrast the unique extra costs and complexities of offshore wind projects with those onshore

Who Should Attend ■ ■ ■ ■ ■ ■ ■ ■

Renewable power project developers Power plant owners and operators (utilities and IPPs) Transmission/Distribution system operators Policymakers and policy advisors Investors, including commercial and development banks, venture capital and private equity Vendors & EPC contractors Large energy users Commercial energy-sector services suppliers (law, insurance etc.)

Book 3 persons or more and save

$300 each

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/wind

Event Info

Mastering Solar Power

13 - 16 July 2020, Singapore www.infocusinternational.com/solar

Overview

A comprehensive, up-to-date and business-focused roadmap to success in delivering solar power growth, today and tomorrow.

Attendees will leave with a good understanding of the key factors from an integrated, multidisciplinary and commercial viewpoint, including: target market analysis, economic competitiveness, channels-to-market, financing influences and risk, project development processes, best practices and emerging technologies.

The course schedule includes time to work in groups to apply the learning and illustrate key project development considerations, by discussing, developing and quantifying an initial business proposal for a solar PV power plant. To do so, attendees will utilise energy yield, financial and other simple calculations, along with the chance to debate key planning and market environment considerations.

In keeping with the business-focused theme of the course, these illustrative exercises are designed to provide time-efficient clarification of the key course takeaways, aimed at commercially-focused business developers and investors.

They are therefore accessible to nonexperts, not designed to replicate the complex or in-depth detailed planning undertaken - over much longer periods! by engineers and technical teams.

“I enjoyed the course with lots of demonstrations and case studies. The facilitator was just marvellous, up to the game. It was a value for money workshop.”

Shadric Namalomba, Director of Finance, Electricity Generation Company Malawi

Mastering Solar Power Course Highlights

• Speak the language of solar energy: terminology and concepts explained with clarity and relevance • Understand the key variables determining the economics of solar PV projects • Review current and emerging market opportunities for solar PV, including integrations such as energy storage • Navigate the typical project development requirements, processes and risks • Learn and discuss how financial returns and risks arise in PV projects • Be better able to converse with project partners, suppliers, investors, policymakers and other stakeholders • Know what to look for when evaluating PV project opportunities • Identify key investment and project performance risks • Learn how to analyse and critique current and emerging business models

13 – 16 July 2020, Singapore

Who Should Attend Benefits of Attending ■ ■ ■ ■ ■ ■ ■ ■ ■

This course is ideal if:

Speak the language of solar energy: terminology and concepts explained with clarity and relevance • You are working withinthethe power of sector in projects a commercial or business Understand the key variables determining economics solar PV role.opportunities You need a for clearly explained, multi-faceted Review current development and emerging market solar PV, including integrations suchunderstanding as energy storageof Navigate the typical project development requirements, processes and risks how PV projects are developed and why and how they succeed (or fail), including Learn and discuss how financialand returns and risks arise in PV projects how market technology changes are driving new innovation opportunities Be better able to converse with project partners, suppliers, investors, policymakers and other stakeholders along with new competitive risks.

Know what to look for when evaluating PV project opportunities • You are theperformance investment, Identify key investment andfrom project riskspolicy or professional services community. You the inevitable solar energy, and want to gain an Learn how to need analyseto andembrace critique current and emerginggrowth businessof models

independent perspective on the economic environment in which these projects Who Shouldoperate, Attend including the development, operational and business risks that most matter to them.

This course is ideal if: ■ You are working within the power sector in a commercial or business development role. You need a clearly-explained, notPVlimited to: multi-facetedIncluding understandingbut of how projects are developed and why and how they succeed (or fail), including how market and technology changes are driving new innovation opportunities along with new competitive risks ■ You are from the investment,including policy or professional services You need to embrace inevitable growth • Investors, commercial and community. development banks, venturethe capital of solar energy,and and want to gain an independent perspective on the economic environment in which these projects operate, private equity including the development, operational and business risks that most matter to them.

• Power generation companies, utilities and IPPs Policyto:makers and policy advisors including but not•limited • Transmission/Distribution system ■ Investors, including commercial and development banks, operators venture capital and private equity ■ Power generation companies, utilities andsuppliers IPPs • Commercial services (law, insurance etc.)

■ Policy makers •and policy advisors Equipment vendors & EPC contractors ■ Transmission/Distribution system operators • Large energy users and electricity buyers ■ Commercial services suppliers (law, insurance etc.)

■ Equipment vendors & EPC contractors ■ Large energy users and electricity buyers

Book 3 persons or more and save

$400 each

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/solar

Event Info

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/solar

“I enjoyed the course with lots of demonstrations and case studies. The facilitator was just marvellous, up to the game. It was a value for money workshop.”

Shadric Namalomba, Director of Finance, Electricity Generation Company Malawi

Mastering Solar Power 13 – 16 July 2020, Singapore

Benefits of Attending ■ ■ ■ ■ ■ ■ ■ ■ ■

Speak the language of solar energy: terminology and concepts explained with clarity and relevance Understand the key variables determining the economics of solar PV projects Review current and emerging market opportunities for solar PV, including integrations such as energy storage Navigate the typical project development requirements, processes and risks Learn and discuss how financial returns and risks arise in PV projects Be better able to converse with project partners, suppliers, investors, policymakers and other stakeholders Know what to look for when evaluating PV project opportunities Identify key investment and project performance risks Learn how to analyse and critique current and emerging business models

Who Should Attend This course is ideal if: ■ You are working within the power sector in a commercial or business development role. You need a clearly-explained, multi-faceted understanding of how PV projects are developed and why and how they succeed (or fail), including how market and technology changes are driving new innovation opportunities along with new competitive risks ■ You are from the investment, policy or professional services community. You need to embrace the inevitable growth of solar energy, and want to gain an independent perspective on the economic environment in which these projects operate, including the development, operational and business risks that most matter to them. including but not limited to: ■ Investors, including commercial and development banks, venture capital and private equity ■ Power generation companies, utilities and IPPs ■ Policy makers and policy advisors ■ Transmission/Distribution system operators ■ Commercial services suppliers (law, insurance etc.)

■ Equipment vendors & EPC contractors ■ Large energy users and electricity buyers

Book 3 persons or more and save

$400 each

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/solar

Event Info Engineering, Procurement and Construction (EPC) Contracts for Energy Industry 24 – 26 August 2020, Singapore www.infocusinternational.com/epcenergy

Overview

Today, Engineering, Procurement and Construction (EPC) projects are uniquely challenging. Parties currently involved in large complex and fast-track EPC projects frequently suffer financial loss that could have been mitigated by effective contract management. Appropriate practical “know-how” of EPC contracts will improve your ability to take appropriate steps, or to obtain necessary advice, to minimise or manage such risks.

This intensive workshop provides valuable insight into the rapidly evolving world of EPC contracts. It has been designed specifically for the professionals and management of energy industries and will be of particular interest to those with current or planned projects in Asia, Africa, Middle East, Europe and the CIS. You will analyse an EPC contract, clause by clause, focusing on your challenges in international and domestic projects. This unique interactive master class discusses the key issues in EPC contracts which are relevant for lenders, sponsors and borrowers in international construction projects and the keys to deliver successful projects.

Course Highlights • Global and local legal and commercial framework in Asia, Middle East, Africa, Europe and the CIS • Contract negotiation best practices • Tips on contractual risk mitigation • Contract financing and project structuring • Contractor relationship management • Clause-by-clause discussion based on an actual contract precedent Key Learning Objectives • UNDERSTAND the current finance market for EPC contracts • MANAGE legal risks and environment for EPC contracts in the region • DISCOVER alternative procurement options for projects and the risks and opportunities associated with these options • DISTINGUISH new and effective contract negotiation strategies • ANALYSE the types of claims that may be made under EPC contracts and develop strategies to manage these claims

• GAIN INSIGHTS into the best current dispute resolution options and the risks and costs associated with each option

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/epcenergy

Free Takeaway 3 detailed articles on EPC contract precedents containing discussions on: EPCM & Alliancing Contracts EPC contracts in the global market FIDIC contract and the challenges faced by construction contractors

Group Discount book 3 person to save $300 per person

Managing and Negotiating

Engineering, Procurement and Construction (EPC) Contracts for Energy Industry Mastering the legal and commercial framework, contract negotiation, financing, risk and contractor relationship complexities of upstream and downstream EPC projects

24 – 26 August 2020, Singapore

Global and local legal and commercial framework in Asia, Middle East, Africa, Europe and the CIS Contract negotiation best practices Tips on contractual risk mitigation Contract financing and project structuring Contractor relationship management Clause-by-clause discussion based on an actual contract precedent

“A must�attend for professionals wishing to improve in EPC contracts management.”

- Century Power Generation “Interesting, extremely helpful and relevant.

A very clear presentation style which kept the material interesting and the audience engaged.”

- National Oil Company of Namibia

UNDERSTAND the current finance market for EPC contracts MANAGE legal risks and environment for EPC contracts in the region DISCOVER alternative procurement options for projects and the risks and opportunities associated with these options DISTINGUISH new and effective contract negotiation strategies ANALYSE the types of claims that may be made under EPC contracts and develop strategies to manage these claims GAIN INSIGHTS into the best current dispute resolution options and the risks and costs associated with each option

OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

“The seminars were highly informative and the trainer is clearly very experienced in the EPC and major projects worldwide. It was very relevant for us in our business.”

- Qatar Petroleum

“

Key Learning Objectives

Supported by:

“

“A very thorough presentation with excellent real life examples and war stories from the trainer.”

- Exxonmobil

Course Highlights

“The trainer spoke knowledgeably about matters that concern lenders, sponsors and borrowers bringing different perspectives to the discussion.”

- KBC Bank NV “Interesting explanation of every clause of the contract (i.e. the thorough assessment of an EPC contract).”

- KFW Bankengruppe

www.infocusinternational.com/epcenergy

Event Info Power Project Finance

7 – 11 September 2020, Johannesburg www.infocusinternational.com/powerprojectfinance

Overview

Project finance is widely used for large infrastructure projects including thermal and renewable power projects. The technique enables project risks to be allocated to the parties best able to manage them and facilitates the raising of long term debt without recourse to the project developer.

The correct allocation of risk through an appropriate commercial structure is the foundation of a sound financing plan and this course will develop these themes by walking through the commercial contracts and finance documentation and provide an understanding of how to determine the optimal amount of debt using cash flow and ratio analysis. Current circumstances in the African power project sector will be discussed.

Investment committees need to be sure that all risk aspects have been studied and the course will detail the key elements of the due diligence exercise. The course will also provide a guide on how to approach the debt market.

Benefits of Attending The course is intended to provide a firm understanding of the principles which create a bankable power project finance structure in terms of risk allocation and the commercial and financial structure. On completion of this course you will understand: • How a power project is structured and financed • How to identify power project risks and mitigation strategies • The role of the financial model and cash flow and ratio analysis • Debt sizing techniques • Project finance term sheets and loan documentation • Contract documentation • The due diligence process • How to efficiently identify viable project prospects • How to approach the debt market

• Project analysis & development • Commercial & legal • Commercial services suppliers (law, insurance etc.)

• Policy makers and policy advisors dealing with energy sector financial issues Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

Who Should Attend • Power project developer, investor or financier • Finance & accounting • Project finance & structured finance • Power project management

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/powerprojectfinance

Boo k3 pe sav e $ rsons “Excellent training with a world class and highly experienced specialist.”

500

eac

and

h

Senior Power Expert, Regulatory Commission for Electricity Sector, Senegal

Power Project Finance 7 – 11 September 2020, Johannesburg

Benefits of Attending The course is intended to provide a firm understanding of the principles which create a bankable power project finance structure in terms of risk allocation and the commercial and financial structure. On completion of this course you will understand: ■ How a power project is structured and financed ■ How to identify power project risks and mitigation strategies ■ The role of the financial model and cash flow and ratio analysis ■ Debt sizing techniques ■ Project finance term sheets and loan documentation ■ Contract documentation ■ The due diligence process ■ How to efficiently identify viable project prospects ■ How to approach the debt market

Who Should Attend Including but not limited to people working in: ■ Power project developer, investor or financier ■ Finance & accounting ■ Project finance & structured finance ■ Power project management ■ Project analysis & development ■ Commercial & legal ■ Commercial services suppliers (law, insurance etc.)

■ Policy makers and policy advisors dealing with energy sector financial issues

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/powerprojectfinance

Event Info Electricity Economics in Changing Electricity Markets 16 – 18 November 2020, Singapore www.infocusinternational.com/electricityeconomics

Overview

Are you ready for the new challenges & opportunities as power markets around the world evolve?

This is an essential core knowledge course for those involved in the business or regulation of the power industry.

It leads you through a clear, accessible and thorough examination of the economics of power generation, from power plant cost influences to end-customer prices. It contextualises this analysis with key consideration of industry drivers and trends, including increasingly liberalised and competitive markets, evolving policy support and management frameworks, the growth and integration of renewable power sources, and the restructuring of power systems towards more decentralised operations.

A highly interactive presentation style allows for plenty of Q&A and time to discuss the issues from multiple stakeholder perspectives; including power plant owners, investors, policymakers and energy customers. This course is an essential primer for those seeking to navigate successful business routes through transitioning electricity systems.

Benefits of Attending • Clear, independent and businessfocused introduction • Language designed for non-experts; particularly senior executives, policymakers & investment decision-makers • Core knowledge building, including up-to-the-minute examples from markets around the world • Interactive discussion of key market and economic variables • Quantification of key issues using simple numerical calculations, real data and Excel-based tools We will examine these key questions: • Which variables drive the economics of electricity generation?

• How do generation costs combine with other factors to produce end-use electricity prices?

• How are current technology & system trends impacting electricity costs and prices?

• What are policymakers doing to keep costs down?

• Who are the key stakeholders and influencers on electricity economics?

• What are the value-chain impacts of market Liberalisation and Competition?

• How are solar and wind power (and other low-carbon options) changing market environments?

• and many more!

Who Should Attend: • Power generators, utilities and IPPs • Investors, including commercial and development banks, venture capital and private equity • Policymakers and policy advisors • Transmission / Distribution system operators (grid) • Power system vendors & EPC contractors • Large electricity users • Commercial services suppliers (law, insurance etc.)

Teaching Methodology The agenda will combine presented materials with plenty of opportunity for Q&A, interactive discussions, and the use of quantitative models to illustrate key learning points. Current market examples and data are utilised wherever helpful.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Abigail Harris

Infocus International Tel: +65 6325 0215 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/electricityeconomics

BACK BY POPULAR DEMAND “I enjoyed the course with lots of demonstrations and case studies. The facilitator was just marvellous, up to the game. It was a value for money workshop.”

Shadric Namalomba, Director of Finance, Electricity Generation Company Malawi

Electricity Economics

in Changing Electricity Markets The new economics of power markets in a low-carbon world

16 – 18 November 2020, Singapore Book 3 persons and save

$300 each

Benefits of Attending ■ ■ ■ ■ ■

Clear, independent and business-focused introduction Language designed for non-experts; particularly senior executives, policymakers & investment decision-makers Core knowledge building, including up-to-the-minute examples from markets around the world Interactive discussion of key market and economic variables Quantification of key issues using simple numerical calculations, real data and Excel-based tools

We will examine these key questions: ■ Which variables drive the economics of electricity generation?

■ How do generation costs combine with other factors to produce end-use electricity prices?

■ How are current technology & system trends impacting electricity costs and prices?

■ What are policymakers doing to keep costs down?

■ Who are the key stakeholders and influencers on electricity economics?

■ What are the value-chain impacts of market liberalisation and competition?

■ How are solar and wind power (and other low-carbon options) changing market environments?

■ and many more!

Who Should Attend ■ ■ ■ ■ ■ ■ ■

Power generators, utilities and IPPs Investors, including commercial and development banks, venture capital and private equity Policymakers and policy advisors Transmission / Distribution system operators (grid) Power system vendors & EPC contractors Large electricity users Commercial services suppliers (law, insurance etc.)

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/electricityeconomics

Event Info Gas & LNG Markets, Contracts & Pricing 16 – 20 March 2020, Singapore 28 Sep – 2 Oct 2020, Port of Spain 23 – 27 Nov 2020, Singapore www.infocusinternational.com/gaslng

Overview

Due to the complex geopolitical nature of gas/ LNG sourcing and long term nature of gas transactions between buyers and sellers, it is commercially prudent for those involved in thisprocess to know the global gas & LNG supply & markets condition, available methodologies for price determination, contract structure and negotiation techniques. Any misjudgement in any of these areas could result in wrong sourcing decisions, significant adverse financial consequences and legal liabilities.

This course has, therefore, been designed to enable the professionals in the gas sector and gas advisory services to make right sourcing decision, construct gas/LNG contracts and negotiate from a position of strength and knowledge in order to gain a competitive edge in the process.

Course Highlights • Global gas/LNG market and market structure in Asia Pacific, Africa, Middle East, Europe and USA regions • Current gas/LNG outlook and trends • Contract terminology and construction operational, commercial and legal basis of gas, LNG and Gas Transportation Contracts • Principles of gas/LNG Sales and Purchase Agreement (GSPA/SPA), Gas Transportation Agreement (GTA) and Regasification Agreements • Gas/LNG pricing principles, current practice and price indexation in competitive gas markets • Contracting and negotiation - proven techniques Benefits of Attending • Background knowledge to framework to facilitate gas/LNG commercial decisions • Understanding current trends of the gas organisation structure • Knowledge of the underlying rationale for gas contract terms and conditions • Learn to construct gas, LNG and gas transportation contracts and negotiate them • Understanding of techniques of gas/LNG price setting in competitive markets • Awareness of operation of trading hubs, spot and arbitrage • Holistic understanding of what is required to put a new supply chain in place Who Should Attend Energy professionals including but not limited to:

• Purchasing/Supply Chain • Legal/Contracts Negotiation • Commercial • Finance/Pricing • Marketing • Trading • Sales/Business Development • Project Finance • Corporate Planning From Sectors: • Natural gas E&P • Gas/LNG trade, shipping, transmission, distribution • Government agencies • Gas based power generation • Gas/LNG related project finance, asset management, hedge funds, equity/fixed income • Gas pipeline and high pressure transportation Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

To Register/Enquire on this course, please contact:

Weslyn Lee

Infocus International Group Tel: +65 6325 0274 Email: abigail@infocusinternational.com Website: www.infocusinternational.com/gaslng

5 day course “The best gas / LNG course I have ever attended. I will gladly recommend it to anyone.” by past participant, Chevron

GAS & LNG

MARKETS, CONTRACTS & PRICING A comprehensive all-in-one course addressing all key elements for successful gas & LNG business strategies

16 – 20 Mar 2020 Singapore 28 Sep – 2 Oct 2020 Port of Spain 23 – 27 Nov 2020 Singapore

Course Highlights ■ Global gas/LNG market and market structure in Asia Pacific, Africa, Middle East, Europe and USA regions ■ Current gas/LNG outlook and trends ■ Contract terminology and construction - operational, commercial and legal basis of gas, LNG and Gas Transportation Contracts ■ Principles of gas/LNG Sales and Purchase Agreement (GSPA/SPA), Gas Transportation Agreement (GTA) and Regasification Agreements ■ Gas/LNG pricing principles, current practice and price indexation in competitive gas markets ■ Contracting and negotiation - proven techniques

Benefits of Attending ■ ■ ■ ■ ■ ■ ■

Background knowledge to framework to facilitate gas/LNG commercial decisions Understanding current trends of the gas organisation structure Knowledge of the underlying rationale for gas contract terms and conditions Learn to construct gas, LNG and gas transportation contracts and negotiate them Understanding of techniques of gas/LNG price setting in competitive markets Awareness of operation of trading hubs, spot and arbitrage Holistic understanding of what is required to put a new supply chain in place

Book 3 persons and save

$600 each

Supported by: OFFSHORE MAGAZINE

ENERGY INSIGHT

E: abigail@infocusinternational.com

www.infocusinternational.com/gaslng