Kanfa

COMPANY PROFILE

2015

KANFA

www.kanfagroup.com | T: +47 6400 1800

“The company that deals with gas” Editorial: Roland Douglas

Providing overall process solutions and services to the offshore oil and gas industry, The KANFA Group, and KANFA Aragon, focus is delivering tailored solutions to the worldwide FPSO and FLNG market.

KANFA Aragon managing director, Kristian Utkilen tells Total World Energy more about the growth of this innovative organisation and some of the key projects underway right now…

In October 2014, leading business information portal, Visiongain, released a report on the global floating liquefied natural gas (FLNG) market stating that this important sub-division of the global energy industry is now valued at $11.845bn. It also stated that, in a drive for cost efficiency, LNG

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companies are increasingly looking to offshore solutions because of the huge costs involved in building onshore LNG facilities.

When it comes to FLNG, there are two areas of focus for industry experts; the first, LNG FPSOs (Liquefied Natural Gas Floating Production Storage

and Offloading Vessels) and the second, FSRUs (Floating Storage and Regasification Units). But, of course, the design and engineering involved in the construction of such a vessel is immense. Technical work of the highest standard is required to ensure efficiency, productivity and, perhaps most

KANFA ARAGON importantly, safety. This is why you need a company with proven experience, a company that has a reputation for excellence (on FPSOs and on platforms); this is why you need a partner like KANFA Aragon.

Operating as an independent process design and engineering group that delivers overall process solutions and services to the offshore oil and gas industry, the KANFA Group is made up of several limited companies: KANFA Aragon, KANFA Aragon Americas, KANFA Ingenium Process, KANFA Mator and KANFA AS. Total World Energy speaks to KANFA Aragon managing director, Kristian Utkilen to find out more about the unique set of services on offer from this industry leading organisation.

“We are focussed on FLNG developments and we have competition but there is no

company that is similar to us, which combines the FLNG expertise with extensive FPSO experience. We have competition in the liquefaction technology but there are perhaps only three or four companies in the world that can provide the solutions that we can. We have competition to our overall process topside solutions but this comes from much larger engineering companies and then we deliver gas conditioning systems where there are other competitors. We are playing in many fields but other companies do not offer the range of services that we do. While we are waiting for the FLNG market to really take off, our diversity allows us to be successful in the standard offshore industry, which again contributes to our FLNG effort,” he says.

Currently, in the FLNG space, there are no floating liquefaction plants in operation although Exmar

and Pacific Rubiales, Petronas, Golar and Shell all have vessels under construction. In the FSRU space, there are only 15 units operational in Asia, Europe, the Middle East, North America, South America, and Southeast Asia and most are owned by Excelerate Energy, Golar LNG and Höegh LNG although several other companies have begun to enter the market.

When it comes to FLNG, industry experts expect the first vessels to be completed for operation towards the end of 2015 – the main project, which has received much media attention, is the Shell FLNG Prelude due to come online off the west coast of Australia in 2017, producing over three million tonnes of LNG produced per annum.

KANFA ARAGON KANFA Aragon, part of the KANFA Group, is a world leader

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in floating LNG technology and applications as well as more traditional gas processes. Using the patented Aragon Optimised Dual Expander Cycle process, the company is able to provide complete process and topside solutions for FLNG developments globally. KANFA Aragon offers EPC services for the offshore upstream oil and gas industry with a specific focus on gas and floating LNG applications. The company can provide complete topside solutions, individual equipment modules, project management services, and technical consulting with a particular focus on floating applications - standard FPSOs and FLNG. Utkilen explains that Aragon was founded by five industry experts and the partnership with KANFA helped the business to grow.

“Aragon was founded by five of us back in 2006. Shortly after we did a share emission and became 50% owned by KANFA. KANFA was an existing EPC company in the oil and gas industry in Norway so we asked them to come in to provide strength as a parent company so that we could take on larger contracts. Now the parent to the KANFA companies are Sevan Marine famous for their successful technology for circular shaped FPSOs. “Our strategy and position in the group is as the company that deals with gas - gas solutions, gas treatment, gas conditioning and LNG, particularly FLNG. We are both a technology company and an

FLNG projects. Together in the KANFA Group we are used to doing both FEED and EPC for topsides for FPSOs and altogether the companies in KANFA Group have a large focus on the FPSO market.

We, as a group, have delivered several process topsides to the lease market and ship-owners like BW, Fred Olsen and Sevan Marine.

EPC provider which is quite special for a relatively small company like ours. We have our own LNG liquefaction technology which is developed especially for the offshore environment and we like to see this on-board the coming

founders all worked together for another company operating in a similar market and in 2006 they decided to try to make a dedicated company for gas solutions and technologies for the FPSO and FLNG market. The five split away

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“Our strategy and position in the group is as the company that deals with gas - gas solutions, gas treatment and LNG, particularly FLNG” “The other KANFA companies are focussed on similar activities but they tend to work more with oil whereas we do gas and FLNG. 50% of KANFA Aragon is owned

by Sevan Marine and the remaining 50% is owned by management,” he explains.

Before Aragon joined up with the KANFA Group, the five Aragon

and Aragon was formed with success.

STRONG HISTORY, PROMISING FUTURE After becoming part of the KANFA Group in 2006, KANFA Aragon immediately went about imposing itself on the market place. One of the first major contracts that received major attention was a LNG production topside for Samsung Heavy Industries, for the world’s first FLNG production vessel, to be operated by FLEXLNG. In this project, the FLNG topside will be based on KANFA Aragon`s liquefaction technology and the contract includes the design and engineering of the liquefaction plant as well as procurement of major equipment items. According to FLEXLNG, the vessel was originally designed to have a gas processing and liquefaction topside with an LNG capacity of approximately 1.7 mtpa (million metric tons per annum) LNG. “Our client in the lease market tends to be ship-owners and this is also the market for our FLNG technology. We signed a contract with Samsung for the first FLNG topside for FLEXLNG back in 2008 and we made good connections with the ship-owner, and such companies in LNG and FPSO markets are our traditional clients but if they go for new builds instead of conversions then the business tends to end up in South Korea and the Korean yards become our clients,” explains Utkilen.

The company has welcomed some of the world’s major shipyards and “our largest clients include Samsung Heavy Industries and Hyundai Heavy Industries,” says Utkilen.

Right now, the company is focussed on delivering modules for international clients like e.g. Hyundai Heavy Industries and are in parallel

CONSTRUCTION SERVICES FOR THE OIL AND GAS INDUSTRY -WORLDWIDE!

KANFA ARAGON

DST A/S provides highly complex service solutions for the on- and offshore oil and gas industry.

We are specialised in total project management, fabrication and installation work worldwide.

Construction activities take place either at DST’s state of the art facilities in Denmark, or at any client specified location.

The core strength of DST is our professional and highly skilled workforce, our overall flexibility and our ability to problem solve in close dialogue with our clients.

At DST, our aim is to achieve Total Health and Quality Management, right first time, every time within an incident free environment and deliveries on time, every time.

Reference case: DST recently completed fabrication of a 'produced water treatment skid' for the Piranema Spirit off the coast of Rio de Janeiro, operated by Petrobras.

All prefab took place at DST’s state of the art facility in Esbjerg and as added value, DST performed the offshore installation of the unit.

Further more DST was awarded several other service and maintenance related jobs during this offshore endeavour.

Our competencies include: Total project management • Prefab of spools • Piping structures • Steel frames • Fabrication of manifolds • Chemical injection modules • Water treatment skids • Larger steel constructions • Flare booms • Steel landings • Aluminum walkways • Subsea structures.

DST is a grade A supplier to the North Sea Sector.

Clientreferences: EAB Engineering • Maersk Oil • DONG Energy • Pon Power • National Oilwell Vargo • KANFA Group • Hess• •BPDanfoss

For more information please contact: Sales Manager Ole Worm ow@dst-as.com T: +45 23731213

WWW.DST -AS.COM

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DST A/S • FALKEVEJ 7 • 6705 ESBJERG • DENMARK

delivering several FLNG Pre-FEEDs with new FEED-work to be awarded in the coming 12 months. In 2015, the company will also be looking to gain a strong stance in the global FLNG market.

“We are currently delivering a gas treatment system and a vapour recovery unit to the Aasta Hansteen SPAR platform for Statoil through our client, Hyundai. One is packaged and ready for delivery and one is undergoing testing in Poland. It is always a challenge to deliver according to all the Statoil and

“80% of employees are Master Degree level engineers so the workforce is highly educated as we are focussed on higher level engineering”

NORSOK specifications which is not the simplest, but we are there and we are ready.”

EXPANSION With the market for gas in general, and especially the FLNG services, growing each month, along with the environmental concerns that many operators now have while looking to reduce flaring and wastage, the offering from KANFA Aragon comes at a good time for the industry.

“We have a very safe technology because we don’t use hydrocarbons

© Aasta Hansteen - Statoil

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KANFA ARAGON

as the refrigerant. We use nitrogen and this means less risk of fire or explosion. Our processes are simple and safe and they are different to several other FLNG-technology providers,” explains Utkilen.

“80% of employees are Master Degree level engineers so the workforce is highly educated as we are focussed on higher level engineering and we subcontract a lot of the ‘simpler’ engineering for a good price. Here we have a mixed workforce with people coming from all over the world including places like Germany, Italy, England, the Philippines and Sweden.”

The company is looking to expand its horizons through both increasing its product and service portfolio and also through growing its geographical footprint. In April 2014, KANFA Aragon purchased a 50% equity interest in KANFA Aragon Americas Inc., a newly established engineering company in Houston, Texas. The remaining shares are held by management, a group of highly experienced engineering professionals in the gas processing

and LNG industry.

KANFA Aragon Americas Inc. (KAA) will focus on providing engineering and technology solutions for the oil and gas industry in North America, Central America, South America, and the Caribbean ranging from concept through EPC.

“We are currently delivering a gas treatment system and a vapour recovery unit to the Aasta Hansteen SPAR platform for Statoil through our client, Hyundai” “We found a team in the US who were set up in a similar way to what we were when we started. They are five very well qualified engineers who have been in the LNG market for some time and also been working with our competitors and major engineering companies,” says Utkilen.

“We met them in Houston and asked them if they want to establish KAA

in the same way that we established Aragon in 2006 and this is of course all part of a strategy to grow in the offshore and onshore markets - with shale gas - and also with LNG and gas treatment and FLNG in the area. They are now responsible for our projects in America. They will focus on the shale gas industry and we here in Norway we will remain focussed on offshore activities.”

Upon joining KANFA Aragon, Alfred Moujaes, President and CEO of KAA said: “Our group is very excited to join the KANFA Aragon family. We bring significant experience and added value to all current and future prospects under this umbrella. Our diversified team of engineers covers a wide range of process technologies with experience in multiple types of project execution strategies. The group’s knowledge of the western hemisphere markets and established customer relationships will expand KANFA Aragon’s reputation as a world class provider of engineering and construction services for offshore and on-shore projects.”

And as the market for LNG and FLNG continues to grow; with Visiongain forecasting strong expansion over the next five years, reaching peak levels of CAPEX in 2018; KANFA Aragon is now perfectly positioned to address the needs of all major projects requiring expertise in gas process solutions and topside solutions; always adding value and providing a vital link the energy value chain. So, as momentum gathers in the FLNG market, who would bet against KANFA Aragon becoming the ‘go to name’ in the industry?

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