TWE Issue 11

MARCH 2015

more than business

www.totalworldenergy.com

Energy for Life Covering 65% of the country’s total refining capacity with a total volume of 16 million tons per year from its three refineries, we speak with Gerasimos Stanitsas of Hellenic Petroleum as it submits a bid for two onshore lease block areas in Western Greece‌

TenneT

41 million end-users

Lake Turkana Project African Renewables Deal of the Year, 2014

Sakson Group

Exceptional drilling performances

Euskal Forging

The new Raw 1000/1000 machine

mjc-metal A/S – your local subcontractor, with international relations.

MJC Metal has its headquarters in Esbjerg, Denmark, from there a large number of international companies are serviced. A substantial part of the activities are targeting the oil industry’s activities in the North Sea. All processes in MJC Metal are onshore based and often take place in our own workshop. MJC Metal has, by virtue of highly qualified employees and a unique machine park, the skills to perform complex machinery.

We have a very high level of service, which among other things means that we are solving tasks based on customer specifications. We often see very complex issues with high tolerance requirements, says Production Manager Tommy Georgsen.

Our expertise has been developed in order to remain a long-term and reliable supplier in the oil industry - but is also used in parallel to a number of other customers. Overall, we cover a wide range, from one-off production to the production of large series.

complete package offering With plans for further growth, we are always on the look-out for new clients, says CEO Jørgen Nordstjerne Schmidt. Therefore we strive to always be best in class, and offer a complete package to our clients. Together with our local partners we have the possibility to offer a complete package, from rough-machining to coating, including inconel or other cladding, heat treatment, final machining, 3D measuring and a full “as-build” documentation package. High competences and accountability are key elements of MJC Metal.

Renovation or new build MJC Metal is a key player when critical components from the North Sea are to be renovated. There are many vital and expensive parts, which can have their lifetime extended significantly through a renovation process. This is one of the company’s core competencies.

In addition to critical renovation, MJC Metal also produces new components based on customer specifications, which are often very complex issues with high tolerance requirements in special highalloy steels.

“We are proud to make a difference for our clients, both in cost and lead time.

MJC Metal has in recent years invested in state of the art equipment, which has improved our lead times significantly” - Jørgen Nordstjerne, CEO

• Advanced machinery • The most skilled industrial technicians • From single pieces to serial production

Stenhuggervej 13 6710 Esbjerg V. Denmark Tlf.: +45 7514 0400

www.mjc-metal.dk

In this month’s issue we focus on current and projected renewable projects and how these will help to impact on and encourage a more sustainable form of energy generation, reducing the need for imported fuels. The National Electric Power Company of Jordan (NEPCO), currently importing 97% of its energy needs, looks set to reduce its reliance on fossil fuels in a bid to install 600MW of solar PV capacity and 1,200MW of wind energy by 2020 - we also track the progress of Jordan’s latest 52.5MW Shams Ma’an Wind Project.

It seems that change is in the air for Kenya too with the Lake Turkana Project – the country’s single largest investment in history – it is expected to save Kenya an estimated $178 million in fuel imports every year and remains on target to generate 300MW by 2016 with the construction of 365 wind turbines.

Replacing the necessity for imported fuel is a positive step for so many reasons, not to mention the encouraging impact it can have on a country’s own energy generation but switching to renewables can help bridge that all important gap towards a more sustainable future. Gerasimos Stanitsas of Hellenic Petroleum, which currently stands as one of the leading energy groups in South East Europe, explains: “There are apparent benefits if our exploration operations become successful for the company and for the country. Up until now Greece has had a limited production of indigenous oil, so there are many bright prospects regarding new areas.”

And if, like many, you enjoy nothing more than hopping on a plane and enjoying some much needed respite, we have selected a few of the best island getaways to spark the wanderlust in you.

If you or your company has any stories of innovation, or if you are working on a ground-breaking project, please get in touch with us @TWEmagazine

Harriet Pattison editor@ecp-ltd.com

EDITOR Harriet Pattison SUB-EDITOR Ajuanne Payne WRITERS Rosie DeWinter Colin Chinery Tim Hands STUDIO DIRECTOR Martyn Oakley DESIGNER Harvey Tarlton

MAGAZINE MANAGER Rick Liddiment PROJECT MANAGERS Kieran Shukri Jodie Rettie Aaron Wick SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Mark Leonard

ACCOUNTS Mike Molloy Jane Reeder MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman

2a Ardney Rise, Norwich, Norfolk, NR3 3QH, United Kingdom If you would like more information about ways in which Total World Energy can promote your business please call +44 1603 411568 or email | editor@ecp-ltd.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © East Coast Promotions Ltd 2014

PAGE 3

Contents EDITOR’S PAGE

3

NEWS

6

A strong gust of wind energy

All that’s happening in the energy industry

EnTREPRENEUR

14

Innovation

16

Hellenic Petroleum sa

20

GenKat

22

Nederlandse Aardolie Maatschappij

30

Sakson group

36

Ceylon electricity board

42

Uruk engineering & contracting services

46

Svenska Kraftnat

52

Lake Turkana project

58

TEN cluster Project

64

Euskal Forging

70

KT - Kinetics Technology

76

TenneT

82

National Electric Power COmpany

88

Subsea UK Awards, 2015

94

Destination Director

96

Folorunso Alakija: A fortune of US$2.6 billion

Going green with SolarLeaf

The Greek refining specialists

Technical company – technical works

Dutch Courage – Global Effect

Sakson Drilling Skill

Helping consumers conserve energy

A determination to succeed

Electrification for a Nordic nation

Wind of Change for Kenya

TEN out of TEN for Tullow Oil

The seamless rolled ring specialists

The highly technical turn-key solutions provider

Securing electricity to Northwest Europe

A Green Energy Kingdom

This year’s winners

Luxury island getaways

PAGE 4 MAR 14

CONTENTS

20

26

82

88

42

96 PAGE 5

# twenews Proserv wins ‘Company of the Year’ at Subsea UK awards

© Subsea UK™

Global-leading energy services firm Proserv has won a much coveted industry award in recognition of its outstanding achievements after being named Company of the Year at the 2015 Subsea UK Business Awards last night (11 February).

Over the past year, Proserv has marked a number of key milestones including winning a series of high-profile contract awards globally, expanding its manufacturing facilities and capabilities and launching several new gamechanging subsea technologies. Proserv also secured a major acquisition deal to help ensure its future sustainable growth and success.

Proserv engineer John Stoddard, who joined the company as a graduate just three years ago, also came under the spotlight at the Subsea UK Business Awards as a finalist in the Young Emerging Talent category.

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David Lamont, Proserv’s chief executive officer, said: “It is a real privilege to win this award particularly during what has been a very challenging time for the industry.

Against this backdrop, we have continued to evolve through a robust business strategy focused upon building on our market-leading position, track record and delivery of world-class products and services.

“It is also with great pride to see someone from our dedicated engineering team hailed as talent of the future. John’s recognition is very well deserved and highlights the importance we place on developing our people and encouraging the next generation into the energy industry.

“At Proserv we work as a team and I see these awards as recognition of the hard work of everyone throughout the company in building our business to where we are today.”

The Subsea UK accolade is one in a series of awards that Proserv has won in recent months. Promising young employees, Marnie Toal, of Sauchen, Aberdeenshire, won the Oil & Gas UK Award for Apprentice of the Year while John Stoddard, of Peterculter, Aberdeen, also made the Graduate of the Year final shortlist at the awards.

Proserv also scooped Business of the Year and Great Engineering & Manufacturing Company of the Year at Great Yarmouth’s Spirit of Enterprise Awards 2014. The company’s subsea controls centre of excellence is based in Great Yarmouth, UK. Last year, the team completed and released game-changing technology for subsea control and monitoring communications (Artemis 2G), reinforcing Proserv’s rapidly-expanding subsea capabilities and world-class engineering expertise.

NEWS

Swiber wins US$310 million EPCIC contract in South Asia Swiber Holdings Limited, a leading global provider of integrated offshore construction and support services to the oil and gas industry, has secured its second largest contract win in the Group’s corporate history – an Engineering, Procurement, Construction, Installation and Commissioning (“EPCIC”) contract worth approximately US$ 310 million from a national oil company in South Asia.

The project involves a full suite of EPCIC services for 8 new platforms and associated pipelines required for the development of a new offshore gas field located in South Asia. The engineering work will commence immediately with overall project completion targeted in March 2017. For this project, Swiber will be utilising its in-house state-of-the art construction and support vessels and its highly skilled and experienced Project Management Team.

With this new contract, Swiber’s order book will rise to approximately US$ 1.6 billion – a new record high for the Group. Said Mr. Francis Wong, Group Chief Executive Officer and President of Swiber, “This new contract is awarded by the national oil company for which we had previously completed a float-over platform installation project.

Over the years, Swiber has performed offshore projects with a total value of approximately US$1.66 billion including consortium for this customer.

This is a testament to the customer’s trust in Swiber’s capabilities. The new project will provide us with an opportunity to deepen our relationship.

With our experience and expertise in EPCIC services, we are confident of executing another successful project for the customer.”

Despite the prevailing headwinds caused by the decline in oil prices, Swiber has continued to successfully

secure new projects. In December 2014, the Group was awarded its largest contract win – a US$710 million EPCIC project in West Africa.

“Swiber is building a strong momentum in our project wins as this new contract follows on the heels of the West Africa award. As an established provider of EPCIC services for shallow water oil and gas field development, we believe that Swiber occupies a space in the offshore service value chain that will be less susceptible to spending cuts by the oil & gas companies. We continue to see opportunities in our field of expertise and are working on new project tenders in our target markets,” said Mr. Wong.

The new contract is expected to begin contributing to the Group’s earnings per share in the current financial year ending 31 December 2015.

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# twenews Statkraft and RWE Innogy agree partnership deal for Triton Knoll RWE Innogy and Statkraft have signed an agreement to jointly develop the Triton Knoll Offshore Wind Farm, off the east coast of England.

The deal will see Statkraft take a 50% stake in the UK wind farm, which has an expected capacity of up to 900MW. The development and construction phases will be delivered by a joint RWE/Statkraft project team, managed by Statkraft and, drawing upon the competencies of both companies. Under the terms of the agreement, no financial details will be disclosed.

RWE Innogy and Statkraft are global leaders in renewable energy, long term investors in the UK renewables sector and together have interest in more than 6,500MW (pro rata) of offshore wind assets1. The combined experience and expertise of both companies will create a formidable team within the offshore wind industry, and in the development of Triton Knoll.

Welcoming the new partnership, the Secretary of State for Energy and Climate Change, Ed Davey said: “This is another vote of confidence in the world’s number one offshore wind market which is continuing to attract investors from all over the world, creating thousands of green jobs in the process. We have created the right conditions in the UK for the offshore wind industry to flourish and have attracted around £7 billion worth of offshore wind

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investment since 2010.”

Jon Brandsar, Executive Vice President, Statkraft, commented: “This is an important step for Statkraft in delivering on our strategy for offshore wind. Strong partnerships between experienced offshore wind players are crucial for a successful industry. This transaction establishes RWE and Statkraft as strong, long-term and complementary partners in delivering offshore wind in the UK.” Hans Bunting, CEO of RWE Innogy GmbH said: “Securing partners for projects such as Triton Knoll has been a key objective in our renewables strategy, and this latest successful partnership with Statkraft highlights the attractiveness of our developments and RWE’s continued commitment to offshore wind. Statkraft is a very experienced and reliable partner and we are delighted to be working with them to successfully realise the Triton Knoll offshore wind farm together.”

Olav Hetland, Statkraft’s Head of Offshore Wind, commented: “The project itself is blessed with ideal characteristics for an offshore wind farm, including shallow waters, strong wind resource, and excellent ground conditions. In addition, it is in an area of seabed which Statkraft knows very well from its Sheringham Shoal and Dudgeon offshore wind projects.”

RWE Innogy’s Head of Offshore Wind Projects, Richard Sandford, added: “This partnership is excellent news for the future of

Triton Knoll. It underlines our commitment to this project and our intention to deliver the investment and job opportunities which should flow from the construction and operation of the wind farm.

This partnership will not alter our existing commitments or previous arrangements around development of the site and we look forward to continuing our close working relationships with all local partners and stakeholders.”

Triton Knoll received a Development Consent Order (DCO) for the offshore array from the Secretary of State for Energy and Climate Change in July 2013 and an application for a DCO for the Electrical System is currently being prepared for submission to the Planning Inspectorate later in the spring this year.

Once the project is constructed, it could provide enough electricity to meet the energy needs of up to 800,000 average UK households annually2.

Economic benefits have already begun to flow from the project with over £20million already invested in the UK during the development process. The economic benefits from the construction and operation of the project will be significantly more, creating around 1,900 UK jobs during construction from a total potential investment of around £3 – £4bn.

Financial close for the project is anticipated to take place in 2017, with onshore construction also expected to commence in the same year.

NEWS

Saipem wins Kashagan Field contract worth US$1.8 billion

Saipem, through its subsidiary ERSAI Caspian Contractor LLC, has been awarded a major new Engineering & Construction contract for the Kashagan field project, located in the Kazakh waters of the Caspian Sea, valued at approximately $1.8 billion.

The North Caspian Operating Company (NCOC) has awarded Saipem a contract for the construction of two 95 kilometer pipelines, which will connect D island in the Caspian Sea to the Karabatan

onshore plant in Kazakhstan. The scope of work includes the engineering, the welding materials, the conversion and the preparation of vessels, the dredging, the installation, the burial and the precommissioning of the two pipelines.

Some of the scope will be executed with specialized subcontractors.

The two pipelines, with a diameter of 28 inches, are made of carbon steel, internally cladded with a corrosion resistant alloy layer, and will each have

an offshore length of about 65 out of the total 95 km.

The construction will be completed by end of 2016.

Umberto Vergine, Saipem CEO, commented: “This is a very important contract working for some of the most important oil companies in the world in a key region for Saipem. It also represents another relevant contribution to our backlog in this low price market environment”.

Gamesa wins two new contracts for the supply of 260 MW Gamesa, a global technology leader in wind energy, continues to grow in India, a strategic market in which it has firmly established itself as one of the leading turbine makers, having recently signed two new agreements1 for the supply of an aggregate 260 MW. The first order, from Indian developer and independent power producer (IPP) Greenko, encompasses the supply, installation and commissioning of 80 of the company’s G97-2.0 MW turbines (160 MW). More specifically, Gamesa will install 30 turbines at Jaisalmer region, in the state of Rajasthan, and another 50 at Basavanabagewadi, in Karnataka. The turbines are slated for delivery during the first quarter of this year and the wind farms are expected to be commissioned by June 2015. The company will also operate and

maintain all 80 turbines in the long term.

This contract is included in a new framework agreement to commission 300 MW wind power projects in India, signed by Gamesa and Greenko. The second phase of 140 MW is expected to be secured during the second quarter of the year, in different wind farms located in the states of Karnataka and Andhra Pradesh.

The second order, meanwhile, placed

by Indian developer CLP India, covers the turnkey construction of a 100-MW wind farm at Chandgargh, in the state of Madhya Pradesh. The company, which will handle all of the infrastructure needed to install and operate the complex, will install 50 G97-2.0 MW turbines and also service them in the long term. The turbines are due for delivery during the first half of this year and the wind farm will be commissioned in December

2015.

Both the 80 turbines which Gamesa will install for Greenko and the 50 it will install for CLP will be its G97-2.0 MW Class S make, with a tower height of 104 metres, a new model specifically designed for low wind speed sites in the Indian market.

These two new contracts put Gamesa’s 2014 Indian order intake at 850 MW. From January to September, India accounted for 27% of the MW sold by the company.

“These new order wins reinforce our leadership position in India, a rapidlygrowing market, and evidence the stock placed by customers in Gamesa’s technology and experience”, according to Ramesh Kymal, Gamesa’s Chairman and Managing Director in India.

PAGE 9

# twenews Almost a quarter of consumers switched gas or electricity supplier in 2014, EY survey reveals Almost a quarter (24%) of UK consumers have switched gas or electricity supplier in the last year, according to the results of an EY survey published today.

The survey also reveals that the trend is likely to continue in 2015 with 22% of consumers stating that they are likely to switch supplier. Of those consumers that changed supplier in 2014, more than eight in ten (81%) would consider switching again in the near future.

New entrants emerge as the winners from the appetite amongst consumers to secure a better deal for their energy supply. 37% of those consumers thinking about switching said they would move to a new entrant.

In contrast, less than a quarter (24%) of consumers would be likely to switch to one of the ‘Big 6’ energy suppliers (British Gas, SSE, Npower, EDF Energy, E. ON UK, Scottish Power).

EY surveyed 2,000 consumers to assess attitudes towards switching gas and electricity suppliers and to identify which suppliers they would consider choosing, and to determine what would drive this change.

Tony Ward, Head of Power & Utilities at EY said: “While levels of awareness are admittedly still relatively low among energy consumers, the situation is certainly improving. The increased focus on living costs, as well as industry and government led campaigns have helped make

PAGE 10

shopping around to get a better deal an increasing priority.”

Asked what customer service elements would most likely cause them to decide to switch their energy supplier, 39% of consumers responded that inaccurate bills would lead them to take that decision. Unfriendly service when calling the helpline (16%) and long complaint processes (12%) were also among the top reasons that would trigger a decision to switch.

Ward continues: “The challenge for the industry is to invest in ways to retain the confidence and loyalty of its consumer base through innovative services, an enhanced and troublefree customer experience and empowering customers to feel in control of their energy bill.”

The survey found consistently high numbers of consumers that have either switched supplier or are considering doing so across the whole of the UK. Consumers in the East Midlands lead the pack with almost a third (32%) having switched supplier in the last year. The North East and East Anglia (28%) as well as London (24%) also saw high volumes of consumers switching to a different energy supplier. In contrast, Wales scored the lowest when it comes to switching with only 17% of consumers changing supplier last year.

Looking ahead over 35% of Londoners are considering moving to a different supplier for their gas

and electricity in 2015. Energy consumers in the North West, West Midlands (24%) and the South West (23%) are the next most likely to change.

Overall, new entrants are the preferred choice for 37% of consumers that intend to switch compared to 24% who would move within the ‘Big Six’.

Taking a closer look at those who responded that they are thinking of switching in 2015, 18-24 year olds would be most likely to switch to a new entrant, with over half (57%) choosing this option. The over 55s were the least likely to switch to one of the ‘Big 6’, with just 11% choosing this option.

The survey also found that when it comes to choosing a new supplier price was the single most important factor for consumers to consider, with 78% highlighting price as key. Customer service was only considered the most important factor by 9% of respondents and brand was chosen by even fewer (6%).

Ward concludes: “The industry is now operating in a landscape of growing customer expectations and mainly price driven decisions.

Concerns about energy costs can increasingly prompt consumers to think seriously about switching suppliers. Forward looking providers need to take positive action to empower customers and consider what services they can develop to address the needs of the budget conscious consumer.”

NEWS

Oseberg Delta 2 comes on stream On 21st February Statoil and its partners started up production from Oseberg Delta 2 in the North Sea. The field’s recoverable reserves are estimated at 77 million barrels oil equivalent.

The field, which is tied back to the Oseberg Field Centre, has been developed using two subsea templates with capacity for a total of eight wells.

The initial phase of the plan initially involves three oil producers and two gas injectors.

“Delta 2 is an important element in extending the lifetime of Oseberg. It provides a good example of how we can make lesser discoveries profitable by using existing infrastructure while it

is still available,” says Arild Dybvig, vice president for fast-track development projects in Development & Production Norway.

The start-up of the first well is in line with the development plan and takes place 38 months after the discovery became part of the fast-track portfolio.

The total investment is slightly less than NOK 7 billion, well below the estimated investment cost when the project was sanctioned.

“We’ve delivered yet another high quality, fast-track development according to plan and well within budget,” says Torger Rød, senior vice president for subsea projects in Technology, Projects & Drilling.

Oseberg Delta 2 marks a further

development on the Delta terrace where oil from two wells on an existing template has been produced since 2008.

“The new development includes gas injection that will give us a substantially greater recovery rate.”

“There are also some good opportunities for the further development of the area and an exploration well has already been planned in the southern part of the Delta terrace,” says Terje Gunnar Hauge, vice president for operations on Oseberg East.

The plan for development and operation was submitted to the Ministry of Petroleum and Energy on 30th May 2013.

Facts about Oseberg Delta 2 •

Decision to commence project development: December 2011

•

PDO approved on 10 October 2013

•

Location: In North Sea, 14 kilometres south of Oseberg Field Centre

•

Volumes: 77 million barrels of oil equivalent (32 mboe oil and 45 mboe gas)

•

Depth: Approx. 100 metres, 3,100 metres under seabed

•

Estimated lifetime: 20 years

•

Partners: Statoil (operator) (49.3%), ConocoPhillips (2.4%), Petoro (33.6%) and Total (14.7%)

PAGE 11

# twenews DOI proposes new rules for offshore drilling on U.S. Arctic shelf

The Department of the Interior (DOI), acting through the U.S. Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM), on Friday issued proposed regulations for future exploratory drilling activities on the U.S. Arctic Outer Continental Shelf (OCS).

The proposed Arctic-specific regulations focus solely on offshore exploration drilling operations within the Beaufort Sea and Chukchi Sea Planning Areas. The Department of Interior says that the proposed regulations codify and further develop current Arctic-specific operational standards that seek to ensure that operators take the necessary steps to plan through all phases of offshore exploration in the Arctic, including mobilization, drilling, maritime transport and emergency response, and conduct safe drilling operations.

“The Arctic has substantial oil and gas potential, and the U.S. has a longstanding interest in the orderly development of these resources, which includes establishing high standards for the protection of this critical ecosystem,

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the surrounding communities, and the subsistence needs and cultural traditions of Alaska Natives,” said Secretary of the Interior Sally Jewell. “These proposed regulations issued today extend the Administration’s thoughtful approach to balanced oil and gas exploration in the Arctic, and are designed to ensure that offshore exploratory activities will continue to be subject to the highest safety standards.”

The proposed regulations codify requirements that all Arctic offshore operators and their contractors are appropriately prepared for Arctic conditions and that operators have developed an integrated operations plan that details all phases of the exploration program for purposes of advance planning and risk assessment.

A goal of the proposed rule is to identify possible vulnerabilities early in the planning process so that corrections could be made in order to decrease the possibility of an incident occurring.

The requirements in the proposed rule are also designed to ensure that those plans would be executed in a safe and

environmentally protective manner despite the challenges presented by the Arctic.

The proposed rule also would require operators to submit regionspecific oil spill response plans, have prompt access to source control and containment equipment, and have available a separate relief rig to timely drill a relief well in the event of a loss of well control. The proposed rule continues to allow for technological innovation, as long as the operator can demonstrate that the level of its safety and environmental performance satisfies the standards set forth in the proposed rule, DOI has said in the statement.

“This proposed rule is designed to ensure safe energy exploration in unforgiving Arctic conditions,” said Bureau of Safety and Environmental Enforcement Director Brian Salerno. “It builds upon our existing Arctic-specific standards and experience with previous operations offshore Alaska, encourages further development of technology, and includes rigorous safeguards to protect the fragile environment.”

NEWS

Siemens awarded order in Malta worth EUR 175 million Siemens has been awarded an order by Electrogas Malta for the turnkey construction of a 200 megawatt (MW) naturalgas-fired combined cycle power plant (CCPP). The order value for Siemens is about EUR 175 million.

The CCPP is part of a program of the government of Malta to phase out the use of heavy fuel oil and switch to the use of natural gas for power production. Besides the new power plant, Electrogas Malta will provide a floating storage unit for LNG and a regasification plant to provide the natural gas fuel required both for the new CCPP and for an existing reciprocating engine power plant located at the same site, which will be converted to natural gas.

The new CCPP will be located at the existing Delimara power station near the city of Marsaxlokk, in southeastern Malta. It will generate enough power to meet around

50 percent of Malta’s electricity demand, and will operate at high efficiency with low emissions, also at part loads. When this new plant takes up operation, the level of air pollutants as well as fuel consumption for overall power production in Malta will be considerably reduced. Initial operation is scheduled for the summer of 2016.

“The project is highly driven by the need for reliable, low cost generation and cleaner air. Siemens’ high performance equipment, which operates with high efficiency and low emissions, even in part load operation, has proven to be the solution that best fits our needs.

When the new plant is in operation, the levels of air pollutants and rate of fuel consumption for overall power production in Malta will be materially reduced considerably,” said Michael Kunz, Project Coordinator, at Electrogas Malta.

The new power plant is of Siemens type SCC-800 3x1C which is based on three SGT800 gas turbines, three HRSGs and one SST-900 steam turbine.

The Siemens SGT-800 industrial gas turbine combines a robust, long service-life design with high efficiency and low emissions.

Hence, the turbine is qualified for gas turbine and combined cycle applications in simple cycle and cogeneration plants in the industry, in refineries and in the oil and gas industry. More than 250 turbines of this series have been sold worldwide and this fleet has accumulated more than three million equivalent operating hours (EOH).

For optimization of performance at high ambient air temperatures, the gas turbines will be equipped with an inlet air cooling system which will draw its chilling power from the regasification process of the LNG

PAGE 13

Oil tycoon, fashion designer and philanthropist Editorial: Harriet Pattison

“Whatever is worth doing at all is worth doing well” – these are the words of this month’s deserving entrepreneur, Folorunso Alakija. Acquiring an oil license for one of the most lucrative oil blocks in Nigeria, starting her own high-end fashion house and founding The Rose of Sharon Foundation, to name but a few achievements, Alakija has unreservedly earned her position as the wealthiest black woman in the world today.

Today, Forbes estimates that Folorunso Alakija is worth more than US$2.6 billion, placing this highly motivated entrepreneur as the second richest lady in Africa and the wealthiest black woman in the world. And not surprisingly, given her interesting background, Alakija has even overtaken Oprah Winfrey in the wealth stakes.

Sent over to England to study, Alakija remained in the capital, studying at American College in London and the Central School of Fashion, before moving back to Nigeria to work as a secretary for First National Bank of Chicago amongst others.

Living by her motto – ‘Whatever is worth doing at all is worth doing well’ - It seems the talents of Alakija for fashion and design persevered and on returning to Nigeria in 1985, she started her own fashion house, Supreme Stitches, which was renamed The Rose Of Sharon

PAGE 14

House of Fashion in 1996. Catering for Nigeria’s elite, including the former First Lady, Maryam Babangida, Supreme Stitches soon became a recognised name and Alakija won Best Designer in 1986, just a year after the company was established.

From fashion to fuel, this month’s entrepreneur has had a rather successful run within the energy industry too, acquiring an Oil Prospecting License in 1993 for Famfa Oil. The Agbami Field, located 70 miles offshore Nigeria, it is one of the first major discoveries in the deep water Gulf of Guinea.

Situated in water depths between 1,280 and 1,650 meters, the OPL 216 – later converted to OML 127 – is one of the most lucrative and prolific blocks in Nigeria.

Executive Vice Chairman of Famfa Oil Limited, Alakija went into a joint venture agreement in 1996 with Star Deep Water

Petroleum Ltd – a wholly owned subsidiary of Texaco – giving away 40% stake and appointing the company as technical advisors for the exploration of the license.

8% of this stake was later sold to Petrobras, with Alakija still retaining 60% of the company today.

The OML 127 oil field had its first appraisal well confirmed in 2000 to have recoverable reserves in excess of one billion barrels of oil equivalent.

Living in Lagos, Nigeria, with her husband of 35 years, Alakija also has an extensive real estate portfolio which is estimated at US$100 million. It was reported last year that she purchased a property at One Hyde Park for US$102 million - one of, if not the most sought after location in London.

Owner of several luxury apartments and a private plane, Alakija is also the Executive Vice Chairman of Dayspring Property

Entrepreneur

Development Company Limited, a real estate company with investments in different countries around the world.

Not stopping at real estate or fashion, Alakija is also the first woman in the print industry with the launch of Digital Reality Print Limited in 2006.

With an infallible desire to help the less-fortunate, Alakija set up The Rose of Sharon Foundation (ROSF) on May 23rd 2008, which helps to provide moral and financial support to widows and orphans.

A voluntary, non-profit, faith based and non-governmental Organisation based in Lagos state, Nigeria the ROSF hopes to ease the everyday burdens that widows and orphans experience and draws on the strong community network.

In July last year, Alakija donated US$4.5 million to the Victim’s Support Fund, helping to provide relief to those affected by

insurgencies in Nigeria over the last few years, in an initiative set up by Nigerian President, Goodluck Ebele Jonathan.

Through her company, Alakija has given scholarships to almost 9,000 medical and engineering students globally and has donated 21 chest clinics for the treatment of tuberculosis (TB) in 21 different states in Nigeria and 21 science laboratories - including nine in the Niger Delta region and Lagos State).

Despite not having a university degree, Alakija has become a hugely successful businesswoman and entrepreneur and is now keen to press the importance of sheer hard work and determination to the younger generations. Visiting university students in Lagos last year during a ceremony to mark the 2014 UN International Youth’s Day, Alakija challenged the students and made it clear

that today, a university degree is an added advantage towards success.

“So I am 63 and I am not yet done. So what is your excuse?

I never went to a University and I am proud to say so because I don’t think I have done too badly.

“You do not have to have a university education to be able to make it so count yourselves privileged to have that education as part of the feather in your cap.

It’s essential to draw up a ‘things to do’ list on a daily basis and set priorities in executing them, making sure that any unfinished task gets posted to the next day’s list.”

With what seems an endless list of successes and accomplishments, Alakija, at 63, is not resting on her laurels just yet, becoming a well-deserved role model for young students all over the world

PAGE 15

A technically brilliant collaboration

Editorial: Ajuanne Payne

PAGE 16

Innovation

©Colt International, Arup, SSC GmbH

SolarLeaf - the world’s first bio-reactive façade and a pioneering design for a ‘Passivhaus’ that produces both heat and biomass, while also eliminating CO2. Designed by Splitterwerk Architects, the project is the result of collaboration between Arup, Strategic Science Consult of Germany (SSC) and Colt International who are responsible for the design and development of the façade itself. The project throws up exciting possibilities for further innovations and takes steps towards a future of sustainable infrastructure.

Here at Total World Energy, we have covered exciting innovations across varied areas of the energy industry.

In our January issue we looked at the Solaroad, a pilot project aimed at testing the technology and potential for power-producing roadways.

On the other end of the spectrum, December saw us cover the technological advances being made at Schlumberger with their StingBlade – a faster, more efficient and more cost effective drill bit for the oil and gas sector.

Increased attention globally is being drawn to the need for technological advances in the energy industry that are not only economically viable, but efficient and environmentally friendly also. Just this month, a group of high profile CEO’s including Richard Branson of Virgin and Paul Polman of Unilever called for companies and governments to aim for complete carbon neutrality by 2050. With targets such as these to reach worldwide, it is innovations like the SolarLeaf that are bringing the energy

industry one step closer to bringing about the changes that are needed.

The SolarLeaf façade pilot project was completed in 2013 and unveiled at the International Building Exhibition (IBA) in Hamburg. It is the world’s first bio-reactor to be incorporated in to a building structure, using microalgae as a means to produce renewable energy in the form of biomass and heat.

The process of photosynthesis in the microalgae has the desirable effect of absorbing CO2 – a coup

PAGE 17

for the pilot project and an exciting precedent for future development.

Because of this, the BIQ house is virtually carbon-neutral, as CO2 emissions are reduced by six tons per annum, in addition to the biochemical reactions in the panels actually eliminating 2.5 tons of CO2 per annum also.

HOW DID IT START? Solarleaf is the result of a collaborative effort between architects, Spittelwerk, consulting engineers Arup, Strategic Science Consult (SSC) Germany and Colt. The idea has its conception at Spittelwerk architects back in 2009, but required specific technical expertise to realise.

Jan Wurm of Arup talks about how the project began: “We were asked by architects Spittelwerk to join their design team. We came up with the idea of getting photo bio-reactors integrated into the exterior skin of the building. There was discussion as to whether that was feasible and at that moment we could identify

PAGE 18

SSC Hamburg. Mr. Kerner, he said – forget it, don’t put it on the building because we’d produce so much heat and we’d need to cool it down, it’s much too costly. But then if you think about having that on the building you actually need the heat. So you have the demand of heat and that’s where the synergy comes in and that’s the exciting bit.”

Dr Kerner goes in to more detail in the same interview, saying: “He called me three days later and said – you have to have in mind that if you have the façade you do not only cultivate biomass but you have the functionalities of heat production, you have the functionalities of noise reduction, you have insulation and so on and then I was convinced I said okay I will contribute with my technology.”

It was after this that Wurm approached Lukas Verlage, Managing Director of Colt International GmbH, in hopes that he would be able to contribute to the system for the house.

“I picked up the phone and he

told me that he plans a bio-reactor in Hamburg and I was afraid.” Verlage laughs as he recounts his first conversation with Jan Wurm. “What’s a bioreactor? And I saw ‘war’ and said; oh no, we are not involved in that! But, he told me it’s something to do with energy and they need a partner for the façade. After that I was convinced that we will achieve this goal and today we are here and we have achieved something and I think this is a very big step for the future.”

THE SCIENCE BEHIND THE FAÇADE Vertical glass louvres, measuring 2.5m by 0.7m make up the double –skin façade and each of the 129 bio-reactor panels has a capacity of 24 litres and covers an area of 200m² on two sides of the BIQ house.

The cavities in the louvres are filled with water which has been infused with nutrients that convert CO2 and sunlight to organic matter through photosynthesis. The microscopically small algae – or microalgae, are the

Innovation

©Colt International, Arup, SSC GmbH result of this reaction and also the reason for the bright green colour inside the panels. It is this bio-chemical reaction that causes the water to heat up – pretty much your typical solarthermal effects.

“The SolarLeaf is a photo bioreactor and that includes an element to cultivate micro-algae,” explains Jan Wurm. “It’s also a solar-thermal collector, so it generates heat and on top of that the solar transmission is changing in relation to the algae content. In that way it’s also a shading device.

“So, in principle we are cultivating plants – in this case, microorganisms, algae - in a controlled environment at the façade of the building. We’re harvesting the daylight and we are collecting carbon – carbon emissions. With that we can boost the photosynthesis on the façade and we generate biomass on the one side, and solar-thermal heat on the other.

“The heat, we use directly at the building. So, we feed that renewable energy source into the building and we

harvest the biomass and use either as a fuel or for selling it to the farming or the food industry,” explains Wurm.

WAS THE PROJECT A SUCCESS? From 2020 onwards, zero energy houses will be obligatory in Germany and some other European countries – every new building will need to produce the same amount of energy as it consumes. The Solarleaf pilot is an example of the kind of innovative thinking that will make that target achievable.

The SolarLeaf project has gained recognition for its pioneering design and has recently won a Zumtobel award for ‘Applied Innovation of the Year’. The award “recognises the exceptional sense of collaboration, crossing the fields of design, building engineering” and is an affirmation of the hard work put in by the collaborators.

Similarly to the Solaroad pilot project we covered in our January issue, it seems collaboration is

definitely key. Bringing together different disciplines in order to come up with new solutions allows the brains of the energy industry to do things differently and think outside of the box.

Time will tell how we can apply the technology developed for SolarLeaf in the future. With intermediate results looking very promising and the system producing a net energy gain, the next step is to see how this could be applied on a much larger scale and to see just how lucrative the biomass byproduct will be as an added financial benefit for the system.

Jan Wurm goes further, saying the collaborators “really pushed the borders of what is possible.

We got out of our box, developed a new system. And in that way I think we do shape a better world, we do develop a technology which is relevant for tomorrow and we’re excited to see what will happen, how it will be adopted by architects and engineers in the near future.”

PAGE 19

Energy for Life Editorial: Harriet Pattison

The leading Greek Refining & Marketing Company, Hellenic Petroleum SA, which spans a history of six decades, today operates three of the four refineries in Greece. With the upgrade of the Elefsina refinery and its recent bid for two onshore lease block areas in Western Greece, Total World Energy speaks to Gerasimos Stanitsas, Director of Corporate Communications, to find out what the future holds for this leading energy group in South East Europe…

With a contract for Greece’s very first oil refinery signed in 1955, construction of the Aspropyrgos refinery started in 1956. Just two years later, the new refinery was inaugurated and Hellenic Petroleum Group (HELPE) was formed four decades later in 1998. Throughout its 60 year history, the company has seen many changes and developments and experienced impressive growth.

Today, the distribution of

PAGE 20

the share capital of the Group sees Pan European Oil and Industrial Holdings SA with 42.6% share, Hellenic Republic Asset Development Fund (35.5%), Institutional Greek Investors (7.9%), Institutional Foreign Investors (6%) and Private Funds (8%).

Total World Energy speaks to Gerasimos Stanitsas, Group Communications Manager at Hellenic Petroleum who explains the Group is now present in

seven countries with activities extending across numerous energy sectors: “We are an integrated energy group, spanning from exploration & production, refining, supply and trading, domestic marketing, international marketing, petrochemicals, gas and power, renewables and engineering.

“We have refineries in Aspropyrgos, Elefsina and Thessaloniki, covering the whole territory of Greece from South to

Hellenic Petroleum SA

North. Our total refining capacity is 345 kbpd (thousand barrels per day). The three refineries operate as a hub and they run complementary to each other, exchanging products so we can maximise profits and optimise our operations,” Mr Stanitsas explains.

A LEADING ENERGY GROUP Looking at the figures from 2013 – with the 2014 annual results not yet available – the numerous sectors Hellenic Petroleum is involved in shows an increasing and positive market share.

“In Exploration and Production, we currently have assets in Egypt, Montenegro and Greece.

We have recently participated in the 2nd round of Greece areas, which was concluded only last week, we have bid for two out

“In Refining, Supply and Trading, we have the three refineries – Aspropyrgos, Elefsina and Thessaloniki - with a total capacity of 16 million tons per year”

of the three areas that were available so we hope we get them. Last year we were awarded one area in Western Patraikos Gulf, along with our partners Edison & Petroceltic, and we are proceeding according to our plan.

“In Refining, Supply and Trading, we have the three refineries – Aspropyrgos, Elefsina and Thessaloniki - with a total capacity of 16 million tons per year. The Nelson Complexity Index (NCI) – a measure of the secondary conversion capacity of a petroleum refinery relative to the primary distillation capacity of the three refineries is 9.6, so it’s quite advanced and we have a refining market share of 65%.

We also own tanks with a total capacity of seven million cubic meters.

Continues on page 25...

PAGE 21

TECHNICAL COMPANY - TECHNICAL WORKS

OUR COMPANY GENKAT S.A. was established with the focus on the anticorrosive protection of metal surfaces, heat insulation, refining and petroleum products and scaffolding according to the Greek and national models (SSPC, BS, SIS, STST, AP, ELOT e.t.c.). It applies all the existing methods and is staffed from personnel with many years of experience in insulation works, paintworks and sandblasting.

ACTIVITIES • Surface protection - cleaning and steel preparation • Blasting / Water-jet / Ultra high pressure Water blasting • Coatings • Scaffolding - industry / energy / construction • Insulation - thermal / cold / acoustic / underground insulation • Passive fire protection - Cementitius fire proofing / intumescent fire proofing • Repairs of metal elements - Construction / erection / repairs PAGE 20

Contact us 324 Thivon Avenue, GR 12241 Aigaleo, Athens, GREECE Phone: + 30 210 9585190 Fax: + 30 210 9585160 Email: info@genkat.gr Website: www.genkat.gr

OUR PRIME CLIENTS: • Hellenic Petroleum S.A (Hel.pe S.A) • Motor Oil Hellas • EKO Refinery • DEI / PPC • Service Of Civil Aviation • Greek Broadcasting Corporation Television ( ERT ) • Martial Navy • Technipetrol Spa • Aktor SA • J&P Hellas • Elliniki Technodomiki

• Gek S.A. • Ekme S.A. • Biotek S.A. • Neokat S.A. • Metka S.A. • Terna S.A. • Technical Union – Athina S.A. • Tanko S.A. • Impregilo Hellas • Cimolai Spa

PAGE 21

GENKAT S.A. was established with the objective to provide professional services, anticorrosive protection of metal surfaces, insulation, passive fire protection & scaffoldings according to the Greek and National models (SSPC, BS, SIS, STST , AP, ELOT e.t.c.). It applies all the existing methods, being staffed by personnel with years of experience and continuous training in surface protection, blasting, painting scaffolding & insulation works.

Our main Activities are the following: Surface protection - cleaning and steel preparation Steel preparation / blasting / water jet / ultra-high pressure water jet Coatings protecting against rust, oxidation and corrosion Storage tanks / tank coatings / steel structures / pipelines / equipment / non-slip films / scaffolding Industry / energy / construction Insulation Thermal/ cold /acoustic / underground Insulation Passive fire protection Cementitius fire proofing / intumescent fire proofing Repairs of metal elements / construction / erection / repairs Steel structure - Tubes - Tanks and other equipment Cleanings - chemical cleanings / gas free / deposition / pumping The policy of our company, GENKAT S.A. is the execution of the projects that it has taken on in a way so that it can satisfy the demands of the clients as they are being defined at the technical specifications, according to the contract that has been compiled and always in the defined time.

The immediate and continuous contact with the client, the timely effective reaction if there are by chance any complaints from our client is a fixed policy of our company.

For the realization of this policy the company uses the most modern equipment and is determined to invest continuously for the continuous modernization and enrichment of the company.

Believing that all the above are dependent in a big way on the quality of the human power that work there, the company gives special emphasis to the continuous education of the personnel, investing for this purpose using all the necessary finances.

Genkat S.A. is on a steady upward course in the construction sector that possesses experience and know-how in the following fields:

• Refineries • Shut down / Turn around • Electricity Power Plants • Tank farms • Industrial – building installations • Refineries • Natural gas projects • Chemical and petrochemical industries Genkat sa is one of the leading companies in Greece in industrial surface preparation, insulation and Scaffolding providing services to various refinery, industries, energy plants, chemical and petrochemical industries etc.

We believe in establishing long term business relationships with our clients by providing them with nothing short of the best. This approach of ours has helped us in meeting their requirements, offering complete solutions in terms of quality goods with complete adherence to timely delivery.

We are constantly focused on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products, and participate only in markets where we can make a significant contribution.

Our Prime Clients: HELLENIC PETROLEUM S.A (HEL.PE S.A ) MOTOR OIL HELLAS EKO REFINERY DEI / PPC SERVICE OF CIVIL AVIATION GREEK BROADCASTING CORPORATION TELEVISION ( ERT ) MARTIAL NAVY TECHNIPETROL SPA AKTOR SA J&P HELLAS ELLINIKI TECHNODOMIKI

GEK S.A. EKME S.A. BIOTEK S.A. NEOKAT S.A. METKA S.A. TERNA S.A. TECHNICAL UNION – ATHINA S.A. TANKO S.A. IMPREGILO HELLAS CIMOLAI SPA

Hellenic Petroleum SA ...Continued from page 21 “Looking at our Domestic Marketing activities, we currently operate 1,800 petrol stations in Greece with a 30% market share. Our sales volume currently totals up to three million tons per annum.

“If we extend into international marketing, we are present in Cyprus, Montenegro, Serbia, Bulgaria and the Former Yugoslav Republic of Macedonia, with 280 petrol stations and a sales volume of one million tons per annum.”

The only petrochemicals producer in Greece, Mr Stanitsas explains that one of its key products is Polypropylene which uses Basel technology. Propylene, the raw material for polypropylene production is produced in the Aspropyrgos refinery and then transported to the Thessaloniki plant.

“We have a factory up North that produces BOPP (Biaxially

“There are many retail companies operating in Greece, but I think we are amongst the most well received and well placed so we have a competitive advantage there as well”

Oriented Polypropylene),” explains Mr Stanitsas. “DIAXON PLASTIC PACKAGING MATERIALS SA, a subsidiary of HELPE, is the only producer in Greece of BOPP film, used in the food packaging industry. More than 50% of our production is then exported to Iberian, Italian and Turkish markets.

“In the Power and Gas market we have a joint venture with the Italian company Edison, Elpedison, which operates two CCGT plants, fed by natural gas, with a total production capacity of 810MW. We hold a 35% stake in DEPA Group, (Public Gas Corporation of Greece), the main natural gas supply company in Greece with sales volumes of 3.8 billion cubic meters per annum.

“Then lastly, in Renewables, we have various projects in different stages of development, which amount to more than 100MW and

PAGE 25

PAGE 26

Hellenic Petroleum SA in the Engineering sector, we have a company called ASPROFOS SA which deals with technical studies, engineering, consulting and project management services,” explains Mr Stanitsas.

own petrol stations so that we have a greater control, can invest more in them and use them to offer more advanced products to our clientele,” Mr Stanitsas adds.

THE ELEFSINA UPGRADE A COMPETITIVE ADVANTAGE With four refineries operating in such a small country, competition is bound to be present, not to mention the continuing and seemingly long-lasting effects being felt by the economic crisis. With all four refineries concentrating more on exports, Mr Stanitsas explains that Hellenic Petroleum concentrates on remaining competitive, not only in Greece but in a broader area too.

And with an increasing number of refineries across Europe closing down, he explains: “We are doing our best so that we will not be among those refineries; so far we have made it and we have a good chance of maintaining this.

Therefore, we are now focusing on being competitive through a series of actions: reducing our operating costs, optimising our production and methods, operating the three refineries as a hub, adding synergies and advantages to each one separately and all together.

“There are many retail companies operating in Greece, but I think we are amongst the most well received and well placed, so we have a competitive advantage there as well,” he explains.

Before the economic crisis, a total of 8,000 petrol stations were in operation across Greece, this number, although reduced significantly, is still a high ratio for the country at 5,500.

“We are continuously developing new products and lately we have been focusing on operating our

Successfully completing a five year investment plan totalling EUR€3 billion, Mr Stanitsas explains that the Group’s most important project to date was the upgrade of the Elefsina refinery in 2012. With the changing trends in fuel consumption in Europe and diesel shortages in the European market, an investment of EUR€1.42 billion for the

KX_ABC Factors_Corporate_88x125.indd 1

refinery, originally built in 1973, transformed it into a “state-of-theart, very modern and very efficient refinery.” Said to be the most competitive refinery operating within the Mediterranean region today, Elefsina stands as the biggest industrial project in Greece in the last few years.

The main purpose of the upgrade was to maximise diesel production, eliminate fuel oil production and improve the environmental records.

Maintaining its existing production capacity of 100,000 bpd, the refinery includes storage areas for 3.35t of crude oil and products, a

PAGE 27 3/3/15 2:22 PM

private port with a capacity to berth 5 ships for both the loading and unloading petroleum products and is connected by pipeline to other key facilities of the Group.

ARTA-PREVEZA AND NW PELOPONNESE BLOCKS Earlier this month, Hellenic Petroleum submitted an offer for two out of the three onshore lease block areas in Western Greece, ArtaPreveza and NW Peloponnese.

“There are apparent benefits if our exploration operations become successful for the company and for the country,” explains Mr Stanitsas.

“Up until now Greece has had a limited production of indigenous oil.

There are many bright prospects regarding new areas and we have already been awarded the W. Patraikos lease where we have commenced exploration operations.

“We hope we will be successful in those bids and of course, we are

PAGE 28

looking forward to the new round to be initiated soon by the government regarding the 20 offshore areas in the Ionian Sea and Southern Crete and from what we have seen by analysing the existing data, there could be prospects there as well,” Mr Stanitsas adds.

Hellenic Petroleum is in a good position with a long and fruitful history within the exploration and production sector and a long line of experienced personnel – “We have been involved in this area since the very beginning, from the late 70’s, early 80’s.

“We have inherited all the personnel and the know-how of the former state company which was dealing with the exploration and production in Greece, so we think we are an incumbent player well placed for a successful development of any oil field, if there is oil to find,” explains Mr Stanitsas.

KEEPING THE BALANCE The Group’s responsibility towards the environment and maintaining sustainability is dealt with the

upmost respect where possible, Mr Stanitsas explains: “We implement a very concise and well organised corporate social responsibility program, we are very sensitive to the needs of the local community where we operate.

“Regarding the developments towards a greener energy environment, there is a very sensitive balance and of course, we always opt for a greener environment but we have to be realistic because modern societies need energy.

The regulatory environment should be organized in such a way that it will not deregulate the industry or stop it from operating, so we have to find the right balance between preserving the environment and developing the industry and society.

“We participate in all the corresponding European and International bodies - like the European Petroleum Refiners Association and FuelsEurope – so we make an effort to try and establish that sustainable balance,” adds Mr Stanitsas.

With the effects of the economic crisis still lingering, Mr Stanitsas explains the future is one of rebuilding and promise.

“There is turmoil in the area regarding the sources of crude oil and economies of consumer countries,” he explains. “So the future is survival and the next couple of years is transformation and to be an even more efficient and competitive group.

“In the end we have to reach our target for sustainable development, so we can develop and profit but not on the back of society and the environment – so we are looking for the optimum balance and harmonious coexistence between those participators,” Mr Stanitsas concludes

Hellenic Petroleum SA

PAGE 29

Shoring Up the Energy Supply Editorial: Tim Hands

Nederlandse Aardolie Maatschappij (NAM) began its exploration and production of oil and gas, both offshore and onshore in the Netherlands, in 1947. Since this time, it has honed its main objectives of sustaining production from existing fields, exploring for and developing new fields, and obtaining more gas from existing fields through a continuous policy of using innovative techniques.

Headquartered in Assen, in the Netherlands, NAM goes about its core business of exploring for and producing oil and gas, both on land and offshore, in a safe, sustainable and efficient way. A company with authentic and proven Dutch roots, NAM is today the leading natural gas producer in the Netherlands, with annual production in the region of 59.6 billion mÂł, a figure accounting for around 75% of the total Dutch demand for natural gas.

Continuous innovation ensures that both the cost and

PAGE 30

footprint of its operations can constantly be reduced and allows a better understanding of the subsurface, leading to effective use of its existing infrastructure when producing new fields or optimising existing production. Of all of these, NAM’s Groningen field accounts for roughly 70% of its gas production, with the remaining 30% coming from these various smaller fields elsewhere on the Dutch mainland and in the North Sea. NAM is also a significant producer of oil, and accounts for one fifth of that which is

produced in the Netherlands.

The foundations of the company were laid on September 19, 1947, following the discovery in 1943 by Exploratie Nederland, a Shell company, of an oil field near Schoonebeek, the development of which required Shell and Esso to form a joint venture: what we know today as Nederlandse Aardolie Maatschappij.

Its first natural gas discovery came in Coevorden in 1948, representing the first of its kind in the Netherlands to date.

Then came the discovery, just

Nederlandse Aardolie Maatschappij over a decade on in 1959, of the revered Groningen gas field near Slochteren - one of the largest in the world, and with original producible gas reserves of around 2,800 billion m³. It was this discovery which also gave rise to offshore gas exploration and production, and in 1961 NAM became the first company in Western Europe to drill for gas in the North Sea. It has become clear that the Netherlands accounts for some 56% of all natural gas reserves in the European Union and thus plays a key role in the production and transport of natural gas.

THE GRONINGEN FIELD One of the world’s largest gas fields, the Groningen field has a surface area of 900 kilometres squared, and a total production volume of 2,800 billion m³.

“We have long-term contracts with other countries, and that’s also an important point for us”

Historically the field has been the site of 300 wells, drilled across 20 sites, and with the volume of gas produced to date standing at 2,020 billion m³, production is estimated to last for another 50 years.

Its discovery in the porous Rotliegend sandstone formation came in July 1959, after two previous unsuccessful wells had been commissioned to search for oil and gas. The field started production in 1963 and initially had the capabilities to produce around 100 billion cubic meters per year in the first decade of production, a figure which gradually fell to around 35 billion cubic meters annually in order to conserve the gas reserves.

The gas field plays a crucial role in ensuring that revenues in the country remain healthy, but a growing consensus exists among all parties – and this

PAGE 31

includes gas companies themselves – that the process of gas extraction increases the risk of an earthquake, giving rise to some significant and polarising around its continued employment. Among the thousands of inhabitants who have to cope with the effects of living in the vicinity of the largest gas field in Europe – around 60,000 in number – at least 60% have been affected, resulting in mounting pressure on the government to reduce the extent of the extractions taking place at this site.

There is a real and increasingly polarising conflict here, however, due mainly to the sheer importance of the gas which this site provides, as Economics Minister Henk Kamp explains: “Almost all the people heat their houses with Groningen gas and

PAGE 32

they cook their meals with Groningen gas. It’s also important because of the budget of our government.”

These are two of the key considerations which have led the scientific recommendations to scale-back the extent of the explorations to be rejected, while as Kamp adds: “We have long-term contracts with other countries, and that’s also an important point for us.”

NAM head Bart van de Leemput, summed up the issue neatly to newspaper NRC: “If you realise the Groningen gas fields will still supply us for 50 more years, then there will be more and possibly more severe quakes caused by our gas extraction, but in 20 years’ time we expect there will be fewer.” For the moment, these earthquakes are an extremely undesired but apparently unavoidable side-effect of what is at present, an invaluable

process of extraction.

Clearly, there is considerable tension here between the need to maintain such a historically strong energy supply, and the overriding responsibility to protect the interests and wellbeing of the country’s populace: reduced gas extraction cuts the risk of tremors, certainly, but in turn reduces its huge financial significance. The State Supervision of Mines has stated that the production level at Groningen should be cut back to 30 bcm to avoid the risk of more severe quakes, and, while it would be technically possible to do so and still meet domestic demand, the ministry opted for a policy whereby production in 2014 and 2015 would be at 42.5 bcm, and 40 bcm in 2016.

INNOVATION AND UNDERSTANDING Still, it is imperative that NAM utilises its policy of innovation to seek new ways to ensure a continued supply, and central to this is actively exploring for new fields and applying innovative techniques to recover more gas from its existing fields in the Netherlands. The Dutch government’s ‘small fields policy’ has already helped to spare the reserves at the Groningen gas field since 1974, whereby dozens of gas fields have been added to the Dutch gas reserves to capitalise on its own natural gas reserves to the maximum extent possible and to preserve the Groningen gas field as a strategic reserve.

NAM has an extremely good understanding of the Dutch subsurface, enabling it to continuously find and produce new fields to secure the Dutch

Uruk Engineering & Contracting Services

STORK ASSET INTEGRITY PARTNER As the leading provider of integrated asset integrity management services, Stork plays an important role in maintaining and upgrading upstream Oil & Gas facilities, including those of Dutch Oil company Nederlandse Aardolie Maatschappij BV (NAM). Stork is partner Stork’s services are tailored to help optimise performance by maintaining, repairing, modifying Besides executing the work with a highly skilled and multi-disciplined workforce, Stork plays an important role as an integrator in both consortia for the engineering and manufacturing partners, ensuring a consistent and world class service delivery. This ability and willingness to With safety always as core value, Stork is committed to continuity, quality, innovation and cost

PAGE 33

energy supply, with its highly modern production facilities designed to have the minimal impact on the environment.

The redevelopment of the Schoonebeke oil field, the largest in North-Western Europe, began in January 2009 and comprised 18 new oil extraction locations combined with 73 new wells. NAM has been able to showcase its reliance on new technologies to great effect in this project, producing oil again through a combination of horizontal wells and lowpressure steam injection. As horizontal wells have a much greater contact with the oilbearing rock stratum, more oil can be pumped up from each well.

This particular oil is thick and viscous and contains

PAGE 34

a l a r g e q u a n t i t y o f p a r a ff i n , which solidifies at lower t e m p e r a t u re s a n d m u s t b e l i q u e f i e d b e f o re t h e o i l c a n be pumped up, necessitating s t e a m . P ro d u c t i o n b e g a n a t the oilfield, which straddles t h e D u t c h - G e r m a n b o rd e r, i n J a n u a r y 2 0 1 1 , a n d w i l l g ro w t o a ro u n d 2 0 , 0 0 0 b a r re l s p e r d a y, h a v i n g p ro d u c e d a ro u n d 2 5 0 m i l l i o n b a r re l s o f o i l b e f o re b e i n g s h u t d o w n t h ro u g h i t s inability to cover operating costs. Exactly the right combination of technologies w e re re q u i re d t o m a k e t h e re m a i n i n g o i l w o r t h p u r s u i n g , which NAM and its partner Energie Beheer Nederland believed they had put together late in 2007. NAM made best use of new and existing i n f r a s t r u c t u re t o m a n a g e t h e

impact of its operations - a d i s u s e d 1 7 - k i l o m e t re g a s pipeline has been converted t o c a r r y w a s t e w a t e r f ro m t h e p ro c e s s t o d e p l e t e d g a s f i e l d s for permanent storage, while NAM will use another existing pipeline to help deliver the o i l t o a re f i n e r y a c ro s s t h e G e r m a n b o rd e r n e a r b y.

S t a t e - o f - t h e - a r t u n d e r g ro u n d gas storage facilities in depleted gas fields at Langelo and Grijpskerk will t o o p l a y s i g n i f i c a n t ro l e s i n s a f e g u a rd i n g e n e r g y s u p p l y in the Netherlands long into t h e f u t u re , e v e n i n t h e m o s t i n c l e m e n t w e a t h e r w h e re demand is at its highest.

W h e n t e m p e r a t u re s f a l l a n d consumption rises, these stocks can be drawn upon, a n d t h e n re p l e n i s h e d a t t i m e s

Nederlandse Aardolie Maatschappij o f l o w d e m a n d i n t h e s u m m e r.

At both locations, natural g a s i s s t o re d i n t h e p o ro u s sandstone bed of an almost fully drained gas field, and t h e s e f a c i l i t i e s h a v e re p e a t e d l y p ro v e d v i t a l f o r e n s u r i n g energy supplies, as they can deliver extra natural gas at s h o r t n o t i c e a n d e n s u re t h e s u p p l y o f s u ff i c i e n t v o l u m e s o f natural gas to the Netherlands u n d e r a n y c i rc u m s t a n c e s . A l s o k e y t o N A M ’s c o m m i t m e n t t o re c o v e r i n g a s m u c h g a s a s p o s s i b l e , a n d t h u s e n s u re t h e m o s t s u s t a i n a b l e a n d s e c u re energy supply imaginable, is i t s D e n H e l d e r g a s p ro c e s s i n g plant, one of the largest in E u ro p e .

The facility processes 19.5 billion m³ of natural gas each year, with its treatment plants

“NAM’s Groningen field accounts for roughly 70% of its gas production”

receiving gas from NAM’s offshore production platforms and carrying out the complex processes which ensure that the gas meets the delivery requirements of Gasunie, a Dutch company that is responsible for transportation via the gas pipeline network in The Netherlands and Germany.

Through the Yokogawa revamp of the control systems at the Plant, a move triggered by the difficulty of maintaining the legacy control system due to the scarcity of spare parts, N A M a n t i c i p a t e d i m p ro v e m e n t s i n p ro d u c t i o n performance, system re l i a b i l i t y, a n d m a i n t a i n a b i l i t y, e ff e c t i v e l y e n s u r i n g a s t a b l e gas supply in the Netherlands for years to come via this hugely important facility

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Trailblazing where the going is tough Editorial: Colin Chinery

Outstanding quality management systems and diligent HSE adherence are guiding principals behind the Sakson Group’s exceptional drilling performances. And there is another characteristic - a willingness to take on and succeed with projects in challenging locations.

To say that Sakson Drilling & Oil Services sends its rigs where others fear to tread might be an exaggeration, but in the seven years since its formation, the Dubai-based business has won a reputation as an accomplished oil field First Mover.

Serving the oil and gas industry with quality equipment, reliable services, and highly skilled personnel, Sakson’s core activity is in the drilling sector in which it provides the rig and the operational team.

PAGE 36

“We are – currently – focused on exploration drilling in logistically challenging basins.

And this is our strength,” says Erik Houlleberghs, Vice President Corporate Affairs and New Business Development.

Established in 2006 as an independent drilling contractor specialising in the management of drilling rigs and tubular running services provision, Sakson then expanded its geographical operational reach first into Iraqi-Kurdistan.

It was a pioneering feat in a region then considered unchartered and challenging: “We were one of the first companies brave enough to move there and were pretty successful.”

In 2011 Sakson went into East Africa, - Tanzania and Kenya – and moved its headquarters from Cairo in 2013 - where it still has a presence - to Dubai, from where it manages its expanding operations in the Middle East,

Sakson group Norther n & Easter n Africa and Central Asia.

UNIQUE CONCEPT The Sakson Holding consists of three subsidiaries; Sakson Egypt Petroleum, Sakson Drilling and Oil Services and Saknafta Egypt Petroleum Services, a diversity creating value with and for its customers through a unique customised service concept.

Today the Sakson Drilling and Oil Services operates and manages a fleet of eleven rigs, eight of which it owns. Altogether these range from 1,000 HP truck-mounted units to 3,000 HP land rigs, with the capability to reach a depth of 7,000 meters.

“In Kurdistan we represent about 15 - 20% of the market.

In Turkmenistan we are the only foreign entity drilling there. In East Africa we are good for about 10% of the market, whilst in Algeria we representing a small percentage, but growing.” said Mr Houlleberghs.

Outstanding quality management systems and diligent HSE adherence are guiding principals behind the firm’s exceptional drilling performances. And with its excellent relationships with rig manufacturers, Sakson has built a solid reputation for delivering on what it promises: on time, first time, and every time.

To ensure that newly built rigs

are up to the highest of standards, Sakson Drilling & Oil Services has developed its own protocols for quality assurance upon acceptance of a unit. Its engineers are present at the manufacturers’ sites during every stage to audit and the entire process is overseen. And before shipping, the unit is fully assembled to reassure a client that the rig will be operational on delivery.

FORMIDABLE ABILITIES Sakson’s ability to perform in the most demanding and challenging circumstances is formidable.

From the operational issues in an environmentally sensitive area off Tanzania, to the non-

PAGE 37

solution that meets the industry ISO-specifications.

COST-EFFECTIVE SOLUTIONS “This is something we are very proud of. Together with our client we looked at the situation and came up with a cost effective solution by thinking a little out of the box.

Putting expertise and knowledge

infrastructure challenges in Kenya and the serial logistical complexities in Turkmenistan, its adaptability and ingenuity delivers premium results in impressive time scales.

A nice example of Sakson Drilling & Oil Services’ determination to create value for its client is a project it is carrying out in the Turkmenistan sector of the Caspian, working in water depths of up to 30 metres.

“Normally you would deploy a rig used to working offshore, but to get such a structure into the Caspian is not easy. First you have to bring the rig into the Black Sea via the Bosporus and from there to cross Russia into the Volga-Don channel and into the Volga River to reach the Caspian Sea.” Meantime the large off-shore drilling structures are throwing up problems: “The first difficulties are the bridges on the Bosporus, which are fairly low. So to get

PAGE 38

beneath you have to partly dismantle your jack-up rig. Once that’s sorted out, the narrowness of the Don Volga channel means that to reach the Volga river you have to further dismantle the installation to get it onto the boats.

“Then, once on location in the Turkmen sector of the Caspian Sea, you have to start assembling everything. Building a jack-up rig in the Caspian Sea, is – currently – not an option, because there are no yards available capable of fabricating a jack up rig.”

“So together with our client, we went for a creative solution. They designed and built an off-shore installation capable of housing a rig (and all its support equipment including living quarters for the crew). We designed a ‘land’ rig to fit the off-shore structure and ensured it was ‘sea-water / salt’ resistant. Combining the engineering strength of our own people with that of our client, we came up with a cost effective

“Our dedication to delivering top quality service while maintaining HSE standards has been the driving force behind our success”

on the table to find a cost effective solution is, I would say, something we are very good at.”

To reach an East African project Sakson moved a rig some 600km into parts of Kenya were the local transport infrastructure was very limited and supporting industry was very much in its infancy.

Accessibility was also an issue in Tanzania, with Sakson winning complimentary feedback from its client on the co-operation between Sakson and its team.

“In respect of a client, we certainly don’t see an ‘Us and

Sakson group Them,’ much more a joint approach in which by putting all the available expertise on the table we come up with the most cost-effective solution,” says Mr Houlleberghs. “And in this current price environment, cost efficiency is, more than ever, extremely important.”

“The best way of giving our clients cost efficiency is by ensuring our drilling teams perform to the very best of their capabilities and ‘deliver’ a well compliant to the specifications of the client ahead of its drilltime schedule. Each day a well is completed ahead of time our customer saves between, let’s say, well over 50,000 US dollars depending on location and type of rig. If we can terminate a week earlier by performing our work to the

“In Kurdistan at the moment we have five rigs making up perhaps 20% of the market, three in Algeria, representing a small percentage, in East Africa one rig accounting for 10% of the market”

nth degree of professionalism, then the customer saves a very significant amount of money.”

Sakson’s commitment says Mr Houlleberghs, is to constantly develop and advance its performance-driven culture, reinforced by a relentless diligence in the planning and execution of its operations.

“We are pushing hard to make sure that drilling proceeds as smoothly as possible, ensuring that spare parts are delivered on time and repairs completed immediately.”

The Sakson Drilling & Oil Services’ organisational structure making this possible is characterised by a continuous push towards greater individual productivity levels through intensive recruiting, training and retention.

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PAGE 39

SAKSON PEOPLE KEY “The quality of our people is a further reason for our success, with our training ensuring they stay on top of their skill sets.

Another major key is that being a young company our equipment is also young and state of art.

“And with our teams working in quite remote areas, we use new and highly maintained accommodation camps close to the vicinity of the rig. We need good people, and to keep them, we offer a living environment that is up to standard.”

Sakson Drilling & Oil Services is home to a multi-cultural workforce, with employees from various Middle Eastern countries, as well as from European, African and Asian countries. This multiethnicity helps the company is complying with requests from local Governments to hire local nationals as drill crew members, train them and share experiences with them.

“In Algeria, we operate rigs with a full Algerian crew. In Tanzania and Turkmenistan, the ratio local versus expat employees outscores the levels set by the Government.”

Sakson’s strategy, says Mr Houlleberghs, is one of portfolio diversification, with a growing emphasis on building sufficient name recognition to expand into development & production drilling.

“We have a solid reputation as ‘exploration drillers’. We are now starting to target the big players in the industry like Saudi-Aramco, Shell, and ExxonMobil. It is our intention to acquire over the next couple of years sufficient name renegotiation within the industry

PAGE 40

Sakson group to work for the big boys as well, including various Middle Eastern national oil companies.”

“We have a very solid anchorage within the Middle East and the Arab world. W ith many business opportunities in the Middle East – for instance in Kuwait, Dubai, Abu Dhabi and Oman – this is an asset we want to explore further.”

PROBLEM SOLVER With the oil and gas industry evolving at a rapid pace and w i t h i t t h e i n c re a s i n g c h a l l e n g e of anticipating and solving t h e p ro b l e m s o f t h e f u t u re , Sakson is dedicated to staying ahead of the curve to meet t h e g ro w i n g d e m a n d s o f t h e market.

“Our dedication to delivering a top quality service while

“In respect of a licence owner, we certainly don’t see an ‘Us and Them,’ much more a joint approach in which by putting all the available expertise on the table we come up with the most cost-effective solution”

m a i n t a i n i n g H S E s t a n d a rd s h a s b e e n t h e d r i v i n g f o rc e behind our success. And this commitment to constantly develop and advance our p e r f o r m a n c e - d r i v e n c u l t u re i s re i n f o rc e d b y a c e a s e l e s s diligence in the planning and execution of our operations.

“At the moment we own eight r i g s a n d m a n a g e a n o t h e r t h re e , and our eight to ten year target ( a m b i t i o n ) i s t o re a c h u p t o 3 0 rigs.

“Our business strategy is to provide our clients with world-class quality services, equipment and products, operational cost efficiency and fit-for-purpose applications of advanced technology. And it is one that I believe defines the Sakson Drilling and Oil Services and its operations.”

Premier Tubular Inspection Service (Pvt) Limited Company Profile

Premier Tubular Inspection Services (PTIS) was established in 1986. It has offices in Pakistan, Libya, Oman, and Iraq and offers consultancy services globally.

Our mission is to: • Provide a wide range of quality Non Destructive testing services to our client in the Energy Sector.

• Equip our team of inspectors with the latest techniques, skills, standards & sophisticated inspection tools / technologies.

• Meet the needs of our clients in an effective & timely manner through our strong service delivery ethic.

PTIS is proud that it is seen as a benchmark of quality by other firms in the industry and that it remains a market leader in the ever-changing global environment. Our inspectors have extensive industry experience and are certified by national and international agencies. This ensures our customers receive a high caliber service package that emphasizes our commitment towards quality whilst maintaining the highest industry standards for safety.

Our professional approach has made us an obvious choice for many companies globally, a status we are enjoying till date.

Services Offered:

• Non Destructive Testng • Visual Testing • Dye Penetrant Testing • Magnetic Particle Testing • Eddy Current Testing • Ultrasonic Testing • Ultrasonic Flaw Detection • Ultrasonic Spot Check • Hardness Testing • Tubular Inspection • Drill Pipe • BHA • Specialty Drilling Tools • Casing & Tubing • Maintenance of Tubular • Straightening of Tubular • Rig Mast & Sub Structure Inspection • Hoisting & Handling Tools Inspection • Lifting Gear Inspection • Visual Thorough Inspection • Proof Load / Load Test • Pad Eye Testing • Pressure Test Witnessing • Calibration of Gauges

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PAGE 41

Enriching life through power Editorial: Rosie DeWinter

Standing as the largest electricity utility in Sri Lanka, Ceylon Electricity Board controls all major functions of electricity generation, transmission, distribution and retailing throughout the country. With further power projects in the pipeline, Total World Energy speaks to General Manager, Chandrasiri Wickramasekara who explains how the Board is channelling renewable energy and encouraging customers to conserve more energy…

Established as a Board in 1969, Ceylon Electricity Board (CEB) initially started developing its grid with hydro-electric power during the 1950’s. Alongside the development of its first hydro power plant, CEB began to establish small thermal power plants.

By the mid-1980’s, CEB began to develop and operate heavy fuel thermal power plants whilst running heavy fuel power

PAGE 42

plants, its gas turbines were running on diesel until the early 2000’s but very sparingly now.

Speaking to newly appointed General Manager, Chandrasiri W ickramasekara, he explains CEB soon started investing in the independent power producers of Sri Lanka.

“Until mid-1990, all the generation was owned by CEB but from then onwards, we started contracting and buying

power from independent power producers. They were using oil power plants and also, there were many small power producers who were using mini hydro plants. Today, we have over 200 small hydro power plants connected to our grid.

“Right now, we have close to 1000MW developed by independent power producers and in 2010, the first coal power plant was added to our

Ceylon Electricity Board system (300MW). Last year, we added another 600MW so right now we have 900MW of coal.

“So with all that capacity, we have close to 4,000MW store capacity – our transmission voltage is 132220Kv and generally covers the whole island,” explains W ickramasekara.

W ith generation owned and operated by CEB, W ickramasekara explains many of its independent power producers cover both thermal and mini hydro plants. Much of the distribution is also owned and operated by CEB – “We also have a subsidiary company called Lanka Electricity Company which is doing the distribution business in certain urban areas near Colombo in the Western and Southern coastal areas,” W ickramasekara adds.

Joining Ceylon Electricity

Board as a Junior Electrical Engineer in 1979, W ickramasekara explains that throughout his 36 years, his background has mostly been within power generation – “Prior to General Manager, I was Head of the Generation Division and more or less, I have always been associated with generation.”

ENERGY PROJECTS In September 2010, CEB began a joint venture with India’s National Thermal Power Corporation (NTPC) for a 500MW coal power plant – the Trincomalee Coal Power Project.

Operated by JV Company, the coal plant is located at Sampoor and involves the construction of a 220kV double circuit transmission line from Samput to Veyangoda via Habarana with new sub stations at Habarana and Veyangoda to transmit

power to load centres. Sections of the line between Sampur and Habarana will be constructed as a 400kV line but operate initially on 220kV. The project will also include the construction of a coal unloading jetty at Sampoor.

Adding 600MW of coal last year, W ickramasekara explains that most of the future generation that has been planned is in coal plants: “So this 500MW coal power plant which will implemented via a joint venture company, 50/50 jointly owned by CEB and India’s National Thermal Power Corporation (NTPC) and will be the next major project in the pipeline.”

W ickramasekara adds that CEB recently applied for the Environment Impact Assessment approval for this project which it expects to be obtained by April, with a view to complete the plant by 2019.

PAGE 43

“We have planned several transmission network developments which include lines and substations with a new 220kV line to strengthen the Southern part of the island and 132kV line to Mannar (which will be upgraded to 220kV),” explains W ickramasekara.

“CEB has identified good wind potential in Mannar, in the North West of the country. The wind potential is 375MW so we have already ordered the contract for the line and we are now trying to implement first phase of wind in that region, so the need for the expansion to cater for that also.”

Speaking of the country’s hydro-power projects and W ickramasekara explains that much of the hydro potential

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has now been explored and developed – “So what’s left are those small ones which we call mini and micro hydro power plants of capacity less than 1.5MW.” “There are two projects now under construction, but they are relatively small. We don’t have much hydro power potential left for development. We have been investigating hydro pump storage – which we plan to come in around 2023-2024 but that is the latest status as far as hydro power is concerned.”

HELPING TO CONSERVE ENERGY For an energy company, it is not always an easy task to help and encourage customers to be more sustainable in their

consumption of energy. Ceylon Electricity Board implore – ‘Switch off one light, save it for our children. We are committed to help our valued customers to use energy efficiently, save more money and improve our environment for a better future.’

W ickramasekara explains that CEB has an energy program in place to help and inform customers on the best methods to conserve energy and educate them on the financial benefits of doing so.

“We educate customers in many ways: mass media, seminars and educating school children. From time to time we also do competitions – for example, we had a scheme for customers that if they reduced their bill by 20%, they stood

Ceylon Electricity Board the chance to eliminate their electricity bill for that month, so this helps to encourage our customers to conserve energy.

“We have also introduced energy efficient equipment such as CFL lighting and we do energy ratings for these, especially the bulbs. “ T h e re ’s a d e d i c a t e d institution under the Power and Energy Ministry called The Sustainable Energy A u t h o r i t y. T h e S u s t a i n a b l e Energy Authority is specifically established to boost re n e w a b l e s , e s p e c i a l l y t h e n o n - c o n v e n t i o n a l re n e w a b l e s .

So we have a lot of e n c o u r a g e m e n t a n d r i g h t n o w, w e h a v e a g o o d t a r i ff s o i t i s a good incentive for the private developers. “ We h a v e a p o s i t i v e a p p ro a c h t o g re e n e n e r g y,

“We have a positive approach to green energy, like wind and hydro, thermal and biogas. So there is a lot of encouragement from the government to go for greener and cleaner energy”

l i k e w i n d , h y d ro , s o l a r a n d b i o m a s s . S o t h e re i s a l o t o f e n c o u r a g e m e n t f ro m t h e g o v e r n m e n t t o g o f o r g re e n e r a n d c l e a n e r e n e r g y, ” e x p l a i n s Wickramasekara.

CEB has also implemented Net Metering, a billing m e c h a n i s m t h a t c re d i t s s o l a r energy system customers for the electricity they add to t h e g r i d , re c e i v i n g c re d i t f o r excess energy which can be used over the coming months.

W ith so many cleaner and greener incentives now in place for its customers and numerous renewable projects underway and nearing completion, Ceylon Electricity Board looks set to continue its long legacy of supplying energy to the people of Sri Lanka for many years to come

PAGE 45

Rebuilding a nation Editorial: Ajuanne Payne

Working in some of the most difficult conditions on projects essential for the development of Iraqi infrastructure, Uruk Engineering & Contracting Services is an Iraqi-owned Engineering, Procurement and Construction (EPC) contractor with expertise in the energy and power generation industries. Total World Energy speaks to Business Development Manager, Mr Ammar Al-Kital to find out more…

Uruk is an Iraqi EPC contractor specialising in all things relating to power generation.

More importantly for them, their business of building and refurbishing power facilities contributes significantly to the rebuilding of Iraq’s energy infrastructure – a mission to which the company is completely dedicated.

Made up of the foremost in local Iraqi talent, employees of Uruk have led the nation’s energy sector for many years, bringing their decades of experience in creating a nationwide industrial network

PAGE 46

and establishing power grids to Uruk. Speaking with Mr. Al-Kital, he explains further the beginnings of the company and what drives them.

“Our CEO decided to establish the company headquarters in the UAE in 2003 as a development company, Uruk Engineering & Contracting. He continued, however, to be deeply involved in reconstruction initiatives; and he remains a frame of reference for the industry to this day.”

Based in the UAE and with offices in Baghdad and Dubai, Uruk’s management is made

up of prominent Iraqi engineers and scientists with collective experience in the oil and gas, nuclear, electricity, water and waste management sectors. Mr Al-Kital explains that “most of our corporate people are here; and 100% of our management are Iraqis who have worked in Iraq for much of their professional careers - they know the area well and they know the country’s needs.”

A GOOD START Following the founding of the company and the creation of a base in the UAE, Uruk was

Uruk Engineering & Contracting Services awarded its first major project which was the rehabilitation of a unit in a thermal power facility in Baiji, which it completed in 2004.

Mr Al-Kital states that “by 2006 Uruk Engineering & Contracting was well established; and Uruk was awarded more complex projects by the Ministry of Electricity.

“In 2007 it was awarded the Al Qudus Expansion project, about 20 km north of Baghdad. This project was for 250 MW where two GE frame 9E turbines were added; and it took about two years to be completed.”

The project was completed in May 2009 for the Ministry of Electricity, costing a total of US$170 million. Uruk was tasked with the turnkey design, engineering, procurement, construction, installation and commissioning of all equipment.

“Then there’s a full EPC greenfield project which is Taji,”

continues Mr Al-Kital, “that was 168MW where Uruk installed 4 GE Turbines, which are called frame 6B.” The Ministry of Electricity in Iraq had launched a Fast Track initiative for its power generation projects in 2010; and the Taji Gas Power Plant Project was the first of these to have been completed. In fact, the Iraqi Ministry of Electricity recently awarded Uruk a Final Acceptance Certificate (FAC) in July 2014 for Taji, the first any firm has received for a power plant project in twenty five years. Completed in 2012, this project is valued at US$85 million, the four gas turbines were free issued by the Ministry.

Uruk’s commitment to quality ensured it fulfilled its requirements, completing all work in less than two years after being awarded the contract. It is also the first Iraqiowned company to complete this type of project since the initiative

was put in place – a success that can be firmly attributed to the expertise of its employees.

DIFFICULT CONDITIONS Considering the unrest and the difficult times the country has faced over the past decade, the skills of the employees of Uruk have ensured that the public of Iraq have world class facilities capable of delivering electricity once gas supply and fuel supply issues are resolved. This is despite the decades of sanctions, logistical challenges, legislative hurdles and security risks.

As of 2014, Iraq’s electricity production capacity was estimated at 12,000MW, with demand being estimated at a much higher 16,000MW. Iraq’s Ministry of Electricity has a General Plan that has identified 24GW of generation, transmission and distribution projects over the next decade to

PAGE 47

bridge the supply and demand deficit.

Uruk’s next turnkey project was for 724MW at the Mansuriya Power Plant in the Diyala Provence, Iraq. Mr AlKital divulges that this “was a joint-venture with Alstom, who provided the turbines. We were doing the auxiliaries of the whole plant - we were the contractor and they were the technology holder of the turbines and were also responsible for the commissioning.

“It is a nice project in Mansuriya, which is about 120 km Northwest of Baghdad; but this area is very unstable due to security reasons now. It is a difficult area. We had to evacuate the power station last July 2014; and we are still waiting for the clearance from the Ministry of Electricity so we can move back there.

“This project was completed in

PAGE 48

December 2013; but the gas was not supplied so we couldn’t do the final commissioning. There is the cold and the hot commissioning. During hot commissioning, you run the whole plant for 72 hours; and then

“We know how it works; we know how to build these, so it’s just about increasing the size of these projects” if everything goes correctly you can hand it over to the client.

“We couldn’t do this because the gas fuel was not supplied by the Ministry. It is completed but we just have to run it.

“Since then, the Ministry has explored with us how we might develop this power station into a

combined cycle plant. We gave them our technical analysis, cost estimation and feasibility studies.

These were received positively; but due to the security situation, the implementation has been delayed.”

One of the pressing concerns still restricting electricity supply in Iraq is the lack of reliable fuel supply to power plant facilities. The issue of fuel supply is a logistical one – due to the political situation and issues with the nation’s infrastructure. The country has its own substantial supplies of oil and gas, particularly in the South; but it needs to rebuild the systems essential for a reliable supply.

The Ministry of Electricity is addressing this problem, identifying a number of fuel-related projects that need executing, such as the construction of treatment, methane gas gathering and delivery facilities, to give the power sector a boost over coming years.

Just to name a few of the country’s investments into rebuilding and improving its power network, two major contracts were awarded in 2009 to GE and Siemens for a total of 10,840MW in generation equipment – worth an estimated US$5billion. Uruk is one of the companies entrusted with the installation of this new equipment and since inception has worked with major global players such as GE, Siemens, Bechtel International and ABB.

TRIUMPH THROUGH ADVERSITY Despite these difficulties, Uruk has succeeded in completing essential work to world class standards of excellence. Mr Al-Kital goes further, explaining that if you “take in to consideration the situation in Iraq, there were not many major EPC contractors who are or were

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willing to go to Iraq - only the experienced Iraqis with the good knowledge who could work in such circumstances.

“Accordingly our achievements are impressive. Those first two projects we didn’t have any major issues, everything went according to schedule. In fact, during our last three projects, we accumulated over 6 million man hours without major incident. Besides our management, and in particular our founder and CEO Dr. Jafar, has a long history in the energy sector.

He took over the administration of Iraqi electricity after 1991, so he knows every single power station in Iraq – where are the opportunities, the defects, he knows it all really well.”

Dr. Jafar D. Jafar, CEO and co-founder of Uruk chaired Iraq’s National Committee for Technology

PAGE 50

Transfer previously and much of the success and exponential growth of the company can be attributed to the vision and expertise of his leadership.

BEATING THE COMPETITION Looking forward to 2015, Uruk has a few exciting prospects in the pipeline; and it is continuing its mission to successfully win and complete projects vital for Iraq’s energy infrastructure. Mr Al-Kital goes in to detail about one “new project which is in Baghdad – the Daura power station.”

“This project is about to be awarded; and we are confident that we have submitted a strong bid. We have competed with some Italian companies; but we definitely have the advantage on security. A European company that will come to work in Iraq will plan out a big

margin for security, for the risk. We can reduce those factors due to our circumstances, because our managers are Iraqi and so on. We are more cost effective than the others.

“I’m expecting that we will expand as well into thermal power plants, because almost 60-70% of our power plants in Iraq are thermal and all of them are in need of rehabilitation - new boilers, rehabilitation of the turbines, etc.

So, I hope that after the award of this project and the completion we will again have a new place where we can implement our work as well.”

WHAT DOES THE FUTURE HOLD Looking forward to the next few years, Mr Al-Kital describes how the company is aiming to expand

Uruk Engineering & Contracting Services on its capabilities; for example in the area of gas compression stations.

“We are delving further into the gas and oil industry,” explains Mr Al-Kital. “If you take a gas compression station - normally you have it in a power station, at a smaller capacity; but for the gas and oil industry you need it on a bigger scale. We know how it works; we know how to build these, so it’s just about increasing the size of these projects.

“We participated in two tenders recently with the Ministry of Oil and we’re still competing actually on those two projects. The gas compression stations compress the gas and transport it to another point - so it is the way we transport the gas from one point to another.

“With the depth of expertise we

have, we are well placed to work on gas, gas compression and gas treatment plants as well as power generation plants.”

“100% of our management are Iraqis who have worked in Iraq for much of their professional careers - they know the area well and they know the country’s needs.”

Since inception, Uruk Engineering and Contracting have shown their ability to not only deliver quality work on time, but to do it to a high

standard while under very difficult conditions. You cannot put a value on local knowledge; and in the case of Uruk this has been a major contributing factor to their ability to get the job done.

In no small measure, Uruk’s success can also be attributed to the passion its leadership and employees have for their work. The culture of the business is one of real dedication to the rebuilding of essential infrastructure in their home country – and a real determination to succeed.

“We really want to finish what we started in Iraq, before we think about moving outside. The rehabilitation or the rebuilding of Iraq will take some time and we are trying to concentrate on this as much as possible,” Mr Al-Kital concludes

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Connecting the people of Sweden Editorial: Ajuanne Payne

Tasked with the operational management of Sweden’s 15,000 km of transmission lines and ensuring electricity supply to the population, Svenska kraftnät are the state-owned public utility looking after the country’s electricity needs. With current yearly investments in maintenance and electricity interconnection projects at over EUR 430 million per year, the utility are expecting investments to total EUR 6.5 billion by the mid 2020’s. President and CEO, Mr Mikael Odenberg, tells us more about what the future holds for the Swedish national grid…

Svenska kraftnät (Swedish National Grid) is the stateowned public utility responsible for the security of electricity supply in Sweden. The government authority looks after the monitoring of Sweden’s national grid and ensures the balance between production and consumption across the country. Svenska kraftnät are also responsible for coordinating dam safety nationwide.

With a national grid to look after, inclusive of roughly 15,000 km of 400 and 220 kV

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transmission lines, substations and interconnectors, Svenska kraftnät’s main focus is on maintaining a reliable and safe electricity infrastructure for the country’s people. In order to achieve this, the utility’s operations centre on essential expansion planning, operational supervision and maintenance.

Established in 1992, today Svenska kraftnät has 550 employees with the majority based at the company’s Stockholm head office and operations centre.

HISTORY President and CEO, Mikael Odenberg, explains the history behind the founding of Svenska kraftnät: “in 1908 a governmental agency was formed in Sweden in order to exploit the hydro resources in the northern parts of Sweden and to electrify the country. In 1992 this Agency was unbundled.

“The electricity production facilities – mainly hydro and nuclear – and sales of electricity were put into a new state owned enterprise, Vattenfall AB. Management of the high voltage transmission

Svenska Kraftnat

system and the responsibility for the system operations (balancing the system) were transferred to a new governmental agency, named Svenska kraftnät (Swedish National Grid). “ Mr Odenberg’s background is mainly a political one, with experience as a Swedish MP and cabinet minister. In the mid-90s he was a party spokesman for energy affairs and heavily involved in the legislation concerning the deregulation of the Swedish electricity market that took place in 1996. He explains that “After resigning as Minister for Defence in 2007, the government appointed me as CEO of Svenska kraftnät in the spring of 2008.”

The Swedish electricity market was reformed at the turn of the year between 1995 and 1996. The main objective of the reform was to separate the sale and production of electricity from the transmission of electricity. This meant that

electricity trading and production was exposed to competition in the market place, while the network operations were retained as a natural monopoly and so easily regulated.

The ability of the Swedish government to regulate and supervise the network operations has been central to the Swedish electricity market’s ability to work well and prevent private network companies from abusing their monopoly positions.

AN INTEGRATED ENERGY INFRASTRUCTURE “Sweden has a generation that is basically completely emissionfree.” Explains Mr Odenberg; “of the annual production of about 150 TWh, 40 percent each is from nuclear and hydro power and about 8 percent from wind power. The main producers are Vattenfall, E.ON and Fortum.

The Swedish National Grid

Transmission System Operator has no electricity production; however a few gas turbines are included in the agency’s socalled Disturbance Reserve.

With the electrical infrastructure consisting of 555,000 kilometers, or around 14 times around the world, of lines at all voltage levels – Svenska kraftnät’s responsibility is for the high-voltage transmission network and interconnectors. The national grid is well integrated with other nearby European countries, with regular import and exports of power, facilitated by physical links between the different grids.

“Today there are six HVDC links to Denmark, Germany, Poland and Finland and eight alternating current connections to Norway, Finland and Denmark.

“In 2012, Sweden’s total net exports comprised 20 TWh of electricity,” explains Mr

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Odenberg, “in 2013 10 TWh and 15 TWh in 2014. Between the hottest and coldest hours during the year consumption can differ markedly in the Swedish system.

The peak load during the year’s coldest hour could be upwards of 26,000 MWh, which makes the momentary demand of electricity imports from neighboring countries large - despite the good energy balance with much net exports of electricity on an annual basis.

“Sweden is well integrated with the rest of Europe. The 14 foreign connections have a combined capacity equivalent to 40 percent of domestic production capacity, allowing for great flexibility in times of shortage of electricity.

Security of supply for the Swedish end customers is 99.98 percent.”

The state-owned utility has seen extensive development over the past decade, significantly

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contributing to its ability to ensure that the people of Sweden have such a reliable security of supply.

STRATEGIC INVESTMENTS The utility also has an SEK 35 million (EUR3.8 million) yearly budget for research and development, a dedication to continued improvement in increasing efficiency and reducing environmental impact, on top of important investments it is making in other areas.

Mr Odenberg goes further, explaining that “Swedish kraftnät’s driving forces for transmission network investments are mainly three: the connection of renewable electricity generation, increased integration with the surrounding world and reinvestments in the aging network. Svenska kraftnät has also invested in new lines to allow for increased power input after upgraded nuclear power plants.”

In order to deal with the everincreasing demands for safe electricity distribution and high consumption, Svenska kraftnät are in the process of strengthening and refurbishing their electricity supply system. With nuclear power expected to be phased out by 2045, beginning in 2025, there is a need for increasing the efficiency at these facilities and a long term goal of replacing them with new, planable, power sources.

“Svenska kraftnät has the government’s task of enabling the expansion of renewable electricity production in the country,” Explains Mr Odenberg; “increased integration with the outside world presents both an opportunity for increased export of surplus electricity on a windy and warm summer’s day, but also the possibility to import electricity in a deficit situation - such as a cold winters day when the wind is not blowing.”

Svenska Kraftnat “The third driving force is about reinvestments in the existing network and the existing stations.

Many facilities in the Swedish national grid were built in the 1950s, which means that they need to be replaced.

Mr Odenberg states that “compared to ten years ago, Svenska kraftnät’s investments are more than tenfold – from 350 million SEK per year to more than 4 billion SEK per year. Until the mid-2020s Svenska kraftnät expects grid investments in the order of around 60 billion SEK. The extensive investments have also meant that the number of employees has doubled in six years. However, we expect that this necessary expansion increase will level off within a year.”

“The two largest ongoing investment projects consist of a

“The national grid is well integrated with other nearby European countries, with regular import and exports of power, facilitated by physical links between the different grids”

new connection, The SouthWest Link,” explains Mr Odenberg, “from middle to southern Sweden, and the new connection NordBalt to Lithuania. Upwards of 8 billion SEK is invested in the SouthWest Link to minimize the internal bottlenecks that sometimes occur between mid and south Sweden, thereby increasing transmission capacity to southern Sweden. NordBalt is an HVDC link to Lithuania. The aim is to integrate an emerging Baltic electricity market with the Nordic and European. At the same time the Baltic States’ security of supply strengthens.”

THE SOUTHWEST LINK PROJECT The objective of the SouthWest Link project is to reinforce the alternating current (AC) network, increase reliability and solve

SUCCESS RECORDS IN SCANDINAVIA Sirti entered the energy market in northern Europe in 2012 by winning, within the DTS Consortium, a Contract from Fingrid Oyj (the national power grid operator) for the construction of a 400/110 kV AC, 40 km long OHTL between Leväsjoki and Ulvila in Finland.

In July 2012 Sirti also won a tender competition called by Svenska Kraftnät for the construction of a 64km long, 300 kV DC OHTL between the towns of Nässjö and Värnamo in Sweden.

In March 2013 Sirti won another Contract from Svenska Kraftnät for the construction of a 40 km long, 400 kV AC OHTL between the towns of Skänninge and Tranås in Sweden.

THE COMPANY - Founded in 1921, Sirti is the Italian leading company in engineering and realization of turnkey telecommunications networks and systems. Through its operational structure of 4,000 employees Sirti is configured as a Global System Integrator.

The wide experience achieved, together with an in-depth technical expertise, allow Sirti to provide customers with well rounded technological advisory services as well as top tier technological solutions in different segments:Telecommunications, Energy Infrastructures, ICT, Railways Networks, Mobility, Security, Environment Monitoring and Safety.

Headquarter Sirti S.p.A. Via Stamira D’Ancona, 9 20127 Milan – Italy Tel. +39 02 9588.1 Fax +39 02 9588 3333 www.sirti.com

Thanks to the recognized competence in complex engineering problems, Sirti has developed "turnkey" solutions directed to Central and Local Public Administration, public or private providers of services and utilities, Local Agencies and large corporations.

While historically brought it’s technological footprint through the most remote regions of the world, today Sirti is active in Saudi Arabia, UAE, Libya, Qatar, Spain and Finland, Norwey and Sweden.

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Svenska Kraftnat the restrictions in transmission capacity to southern Sweden.

This will have the added bonus of limiting differences in electricity prices between regions.

The connection will also prepare for the planned investments and expansion of wind power, which is part of Swedish and European climate policy - a further demonstration of Svenska kraftnät’s dedication to investing in the growth and improvement of Sweden’s electricity infrastructure.

The SouthWest Link focuses primarily around the construction of a new AC link between Barkeryd and Hallsberg, with a second direct current (DC) link planned between Barkeryd and Skåne. Commissioning of the north branch takes place later this spring, with Eltel Networks TE AB winning the EUR 19 million contract. Full commissioning of the south branch is expected to take place in the beginning of 2016.

THE NORDBALT PROJECT For the NordBalt project, Svenska kraftnät are collaborating with LITGRID AB, electricity transmission systems operator for Lithuania. The

project involves the construction of an electricity interconnection between Klaipėda in Lithuania and Nybro in Sweden. Aimed at promoting trade in electricity between the Baltic and Nordic electricity markets and increasing security of supply in the region, the link is expected to be completed by the end of this year.

With financial backing from the European Union worth EUR 175 million, the projects itself is valued at a total of EUR 552 million, with funds being split between the construction activities and the reinforcement of Latvian electricity transmission systems.

The link will be a submarine DC connection with a voltage level of 300 kV and total power of roughly 700 MW.

RISING TO THE CHALLENGE Tasked with significantly reducing emissions and increasing efficiency and production capabilities where possible, Svenska kraftnät are facing busy times ahead. “To meet these challenges, Svenska kraftnät must work more efficiently and

smarter.”

“Extensive internal work has been ongoing to develop planning, work processes, procurement, performance monitoring, skills, et cetera. Recruiting and retaining skilled staff is also a key success strived for. Internal development and career opportunities within Svenska kraftnät is an important part of it, while the reconciliation of work and private life maintains prioritized.”

The utility will need the expertise and drive of its employees to build upon the successes they have already achieved. With the constant drive towards lower emissions and demand for electricity increasing exponentially, Svenska kraftnät have identified the need for strategic investments and better connections for the people of Sweden. Investing in existing and new infrastructure in Sweden, investing in its staff, while also taking steps towards further electricity interconnection, the utility is making the moves necessary to underpin the future of Sweden’s security of supply and reduce costs to end users

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LTWP: Making History Editorial: Harriet Pattison

The Lake Turkana Project, located in North Eastern Kenya, under construction and first power expected in 2017, stands as the largest single investment in Kenya’s history. Awarded African Renewables Deal of the Year 2014, this wind power project is one of Kenya’s Vision 2030 flagship projects, aiming to provide 300MW of reliable and cost-efficient wind power for the country...

Set to be the largest single wind farm in Sub-Saharan Africa, the Lake Turkana Wind Power Project (LTWP) – at an investment price of €600 million – is the largest single private investment throughout Kenya’s history.

Covering 40,000 acres, the project will consist of 365 wind turbines, each with a capacity of 850MW. It aims to provide 300MW of reliable, efficient and low cost wind power energy to the National Grid of Kenya. This is the equivalent to 20% of the current installed electricity generating capacity.

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Located in the Loyangalani District in Marsabit, in the West Country of Kenya, the project site was chosen specifically through extensive surveys that followed and focused on the environmental, social and sustainable effects a project of this size would have, with both the technological and commercial considerations also taken into account.

Of course, the strength, consistency and stability of the wind power is imperative for the Lake Turkana Project, as is, with any project of this scale, the security, availability of fresh water

and road accessibility. From a data analysis survey undertaken since 2007, the site has shown to have some of the most efficient wind resources in Africa, with average wind speeds of 11 miles per second in the same direction, all year round.

With its fairly remote location, the project will also involve upgrading the existing stretch of road, a distance of 240km, from Laisamis to the project site and the access road that surrounds the construction site for ease of transport, operations and continued maintenance.

Lake Turkana Project

The Kenya Electricity Transmission Company Ltd (Ketraco), with part funding from the Spanish Government, is also constructing a double circuit 428km transmission line – with a capacity of 400KV – that will assist in delivering the electricity from the LTWP site.

Providing low cost power, the wind power generated from LTWP will be the lowest power generation cost available in the country. With the majority of Kenya’s electric power capacity retrieved from hydropower, with the remaining requirements filled by thermal and geothermal power supply, the wind power tariff is even lower than other wind projects in the country set at US$11 cents per kWh.

AFRICAN RENEWABLES DEAL OF THE YEAR 2014 In February this year, the Lake Turkana Wind Power project received the African Renewables

Deal of the Year 2014 at the IJGlobal Awards 2014 Europe & Africa in London, which celebrates the best in class within both the energy and infrastructure sector over the last year. IJGlobal is an Infrastructure Journal and Project Finance Magazine which tracks global market activity to deliver and reveal up to date insights.

In addition to this award, the LTWP was also named the African Renewables Deal of the Year 2014

by Project Finance International.

IJGlobal Editor, Sarah Tame and Deputy Editor, Jon Whiteaker and broadcaster and comedian, Marcus Brigstocke hosted the ceremony, which aims to recognise achievement, excellence and innovation in energy and infrastructure finance.

Whilst announcing LTWP as the winner, Sarah Tame said: “This project is a very significant project for Kenya, with its huge associated transmission

infrastructure likely to be used to connect future projects to the grid.”

While newly appointed Chairman of the Board at LTWP, Mugo Kibati, said: “We are truly delighted to receive this award.

It is not only a great honour for LTWP but for Kenya as a whole.”

NEW APPOINTMENTS In November last year - following the resignation of Mr. Carlo van Wageningen who led the project over its landmark development program - Mr. Mugo Kibati was appointed as Chairman of the Board of Directors of LTWP Ltd., with effect from 21st October 2014.

Former Chairman, Carlo van Wageningen, stated: “As I step down, after nine long challenging but exciting years, as the Chairman of LTWP, I am extremely pleased to handover the reigns of the Company to Mugo, a highly respected and qualified Kenyan that I have learnt

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Lake Turkana Project to know and appreciate over the years. His foresight, experience and competent leadership qualities will guide the Board at this very exciting time when construction of the project starts. I look forward to supporting him as a Member of the Board. I wish him all the best in this endeavour.”

While the new LTWP Chairman, Mugo Kibati added: “I am honoured and excited to join LTWP as Chairman. I look forward to working with this exceptional team to deliver the largest wind power project in Africa and making our contribution to Kenya’s, indeed Africa’s progress at this critical time in its history. I wish to thank Carlo for his distinguished service and leadership in getting us to this point, and look forward to his and the other board members continued guidance.”

A RENEWABLE SOLUTION

“This project is a very significant project for Kenya, with its huge associated transmission infrastructure likely to be used to connect future projects to the grid”

With the cities of Africa growing at a particularly fast rate - it is estimated that over the past 50 years, the urban population of the continent has more than doubled from 19% to 39% - with expectations that this will double again by the year 2030.

As a result, an increase in electricity generation, and in particular renewable energy generation, is critically needed.

Kenya currently spends an estimated €120 million on importing fuel every year, so it is hoped that projects like LTWP, will not only help to save on foreign exchange imports, but also help to strengthen the Kenyan currency.

With the majority of Kenya’s electrical power capacity based on hydropower – often an unreliable and costly method,

Wind of change in Africa G4S Kenya partners with Kenya’s Ministry of Energy as official security provider for The Lake Turkana Wind Power Project.

G4S brings on board an invaluable combination of experience and professionalism to the single most largest private investment in Kenya’s history. And will be of significant benefit not only to the country, but also to the unemployed Kenyans from Turkana community.

111 locals from the community have found a new source of income; full-time employment with G4S Kenya to protect the critical national infrastructure site as it is developed.

G4S Kenya LTD Witu Road, off Lusaka Road Off Nyayo Stadium Roundabout. +254 711 042 000 / 999 www.g4s.co.ke

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especially during the dry seasons – wind power seems to be a reliable and strategic solution.

With a tariff which is 60% cheaper than the thermal plants currently in operation across the continent, the Lake Turkana Project, generating 300MW of wind power on completion, will also aid in reducing the cost of electricity, help to reduce the deficit the country is experiencing and stabilise the current power situation in Kenya.

With the construction phase lasting an estimated 32 months, with 2,500 jobs to be created and 200 full time positions throughout the project’s operations, LTWP represents an important project for not only

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Africa but Kenya and its power generation capacity.

Aldwych, an experienced power company focused in Africa, is the largest single investor in the LTWP project, overseeing the construction phase and operations on behalf of LTWP on the plant site.

With financial close reached on the project in December last year, Helen Tarnoy, Managing Director of Aldwych, said: “We are tremendously proud of this landmark day in the development of the LTWP project and congratulate all parties on their commitment to achieving this goal. We at Aldwych are delighted to expand our already excellent relationship with the

Government of Kenya and Kenya Power and look forward to becoming a trusted and valued part of the community in Northern Kenya.”

Vestas will provide maintenance of the plant in a contract with LTWP whilst power from the plant will be purchased at a fixed price by Kenya Power over a 20-year period in accordance with the Power Purchase Agreement (PPA).

VISION 2030 PROGRAM Following the financial close of Lake Turkana Wind Power Project (LTWP) on 11 December 2014, LTWP has received the first disbursement of funds pursuant to financing agreements signed in

Lake Turkana Project March 2014.

In a statement, Mugo Kibati said: “Reaching this important milestone today caps a year of major achievements by LTWP. This includes signing the financing agreements in March, issuing notice to proceed by KETRACO to the transmission line construction contractor in August, financial close of the LTWP equity partners in September, as well as notices to proceed to LTWP’s contractors in October.”

The support, interaction and uplifting of local communities is a high priority for LTWP. As such, LTWP adopted a Corporate Social Responsibility (CSR) Program which will be implemented by the Winds of Change Foundation - a wholly owned subsidiary of LTWP. This foundation aims to uplift local

communities through programs such as the CHAT HIV awareness campaign, water, sanitation, electrification, sustainable development of agriculture as well as the education of boys and girls.

After eight years of development with the full support of the Government of Kenya, Kenya Power, the Energy Regulation Committee (ERC) and Kenya Electricity Transmission Company (KETRACO), utilization of the funds signifies the completion of the project’s financing stage, which will allow the project to move towards implementation and to commence producing electricity in 2017.

A flagship project within the Vision 2030 program, the LTWP is now on track to help deliver the Government’s commitment to increasing the electricity

generation to 5,000MW. In addition to his role as LTWP Chairman, Mugo Kibati, also Director General of Vision 2030 Delivery Secretariat, said in a statement: “Kenya is set to further develop as the hub of trade and logistics in Sub-Saharan Africa in line with the Vision 2030 outcomes for Kenya. The inclusion of a wind farm in Kenya increases the industrialization efforts for Kenya, which are necessary to helping Kenya realize a middle-income status by 2030 by ensuring that there is access to reliable and costeffective electricity. In addition, the project will bring numerous social and economic benefits to Kenya, which we as the Vision 2030 Delivery Secretariat are totally committed to implementing.”

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Harnessing oil potential in offshore Ghana Editorial: Tim Hands

Located 20 kilometres west of Tullow Oil’s Jubilee field in the Deepwater Tano licence, the Tweneboa-Enyenra-Ntomme (TEN) fields comprise the Tweneboa, Enyenra, and Ntomme discoveries in offshore Ghana, in water depths ranging from 1,000 to 2,000 metres.

The TEN Cluster Development is a trio of discoveries made in the Deepwater Tano Block, known separately as Tweneboa, Enyenra, and Ntomme. Many partners make up its ownership, including Kosmos Energy and Andarko who each have an 18% working interest, Sabre Oil & Gas Holdings Ltd with a 4.05% working interest and, primarily, Tullow Oil plc, which has a 49.95% working interest in the project and also acts as its operator. The Ghana National Petroleum Corporation completes

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the list of involved parties with its 10% carried interest. Founded in 1985, Tullow Oil is among the largest independent oil and gas exploration and production companies in Europe and boasts a focused portfolio of world-class assets. A leading independent oil and gas, exploration and production group, its primary focus is on finding oil in Africa and the Atlantic Margins, with the company signing its first licence in Senegal in 1986 and doubling in size in 2004 with the acquisition of

Energy Africa. In Uganda, Tullow has discovered over 1bn barrels of oil to date in the Lake Albert Basin and has seen success with its recent basin opening discoveries in Ghana, Uganda and, in 2012, its first onshore discovery in Kenya.

THE TEN CLUSTER March 2009 brought the first discovery of what would later come to be known as the TEN Cluster, and was made by the Eirik Raude semi-sub drill rig.

Through its drilling in Turonian

TEN Cluster Development turbidite sands, in water depths of more than 1,100 metres, the team discovered a gas condensate reservoir named Tweneboa-1.

Drilled to a total depth of 3,593 metres, the discovery well encountered 21 metres net pay of a highly pressured light hydrocarbon accumulation, bolstered later in the same month when the well was deepened to 3,938 metres, and another four metres of highly pressured oil-bearing sands were found. An over-pressured zone also formed part of this second discovery, which limited further progress, although this was overcome in January 2010, when, in more than 1,300 metres of water, the Atwood Hunter rig discovered an oil reservoir and two separate gas condensate reservoirs. In December of the same year, two more condensate pools were discovered by the Deepwater

Millennium.

The first find at the Enyenra field was made by the Sedco 702 in July 2010, in water depths of more than 1,400 metres. Exploratory drilling had begun in June that year, before the Owo-1 well, drilling to a total depth of 3,890m, encountered a gross vertical reservoir interval of 154 metres, containing 53 metres of net oil pay.

This discovery, made in two zones of stacked Turonian aged sands, uncovered good quality light oil, between 33 and 36 degrees API Gravity, the industry standard used to determine and classify the density of oil. Then, in the final months of 2010, located in depths of 1730 metres and some six kilometres southeast of Tweneboa 2, the Deepwater Millennium discovered the Ntomme gascondensate field. Drilled into an area of weaker seismic response, the well successfully encountered

39 metres of net oil pay. 2011 and 2012 brought significant progress in the programme of appraisal drilling and flow testing of the TEN fields, which subsequently led to the submission of the Plan of Development to the Minister of Energy in early November 2012.

Approval for this was granted in May 2013, with Tullow’s CEO Aidan Heavey expressing his own optimism surrounding the project in a press statement: “I am delighted that the TEN Project Development Plan has been approved by the government of Ghana. This is an important project that will give Ghana its second major offshore development. The government of Ghana [has] shown faith in Tullow and its partners again and has set us a number of important targets around local content and supply chain. I have every confidence that we will meet these targets and look forward to

Š Tullow Oil Plc

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working with the Government of Ghana and with our partners to deliver the TEN Project.�

THE FPSO VESSEL The project is predicted to cost US$4.9 billion and this approval was vital in paving the way for Tullow and its partners to proceed with the development of its discoveries, and to define the final schedule and capital programme.

Delivery of the first oil from the cluster is scheduled for mid-2016,

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and will be followed by a steady increase up to an eventual facility capacity production rate of 80,000 bpd.

Development of the TEN Project has really been allowed to take shape since this 2013 milestone, and a vital component of this is the drilling and completion of up to 24 development wells which will be connected through subsea infrastructure to a Floating, Production, Storage and Offloading vessel (FPSO), moored in approximately 1,500 metres of

water.

This core aspect of the project is to be undertaken

by Semcorp Marine, who proudly announced that its subsidiaries Sembmarine SLP and Jurong Shipyard Pte Ltd had secured the offshore energy related contracts, valued at a combined US$174.3 million. The FPSO is to be provided by Japan’s MODEC Offshore Production Systems (Singapore) Pte Ltd, which has in turn contracted Jurong Shipyard to complete the repair and conversion of a Very Large Crude Carrier (VLCC) into an FPSO vessel, representing the twenty-second conversion project of this nature on which the two parties have collaborated. When completed in late 2015, the TEN

TEN Project

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© Tullow Oil Plc Development FPSO will have a production and treatment capacity of 80,000 bpd of crude oil, 65,000 bpd of produced water, and 180 MMscfd of gas, with an on-board storage capacity of 1.7 million barrels.

This will be Ghana’s second FPSO and will be fashioned from the Centennial Jewel trading tanker, whose arrival in the Jurong Shipyard in Singapore at the end of 2013 represented a significant landmark in the TEN Cluster’s development. Here, work was able to begin on its eventual conversion into the FPSO to be used for the Tweneboa, Enyenra and Ntomme Project, and saw the vessel navigated into the port with the help of a number of tug boats. The conversion has an estimated completion time-scale of two years, and will join Ghana’s

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I have every confidence that we will meet these targets and look forward to working with the Government of Ghana and with our partners to deliver the TEN Project”

FPSO ranks alongside its first undertaking, Kwame Nkrumah currently producing crude oil from the Jubilee Field, which straddles both the West Cape Three Points and Deepwater Tano blocks.

This particular TEN Development FPSO will be moored via external turret and operated by MODEC, and will host multiple subsea tiebacks from the project’s three principal reservoirs. It is a significant milestone for MODEC to assist Tullow and its partners to develop a world class oil field. And serves to strengthen MODEC’s involvement in the development of oil exploration and production infrastructure in West Africa, with president and CEO Toshiro Miyazaki adding, “MODEC is very proud to have been selected by the TEN field partners and GNPC to provide and operate the FPSO

TEN Cluster Development for TEN, a world class facility in a world class field. We are equally pleased to be a part of the team that will provide a needed energy resource for the benefit of the people of the Republic of Ghana.”

Progress was reported to be at around 30% in mid-2014, and continues apace to remain on schedule today.

Mid-2014 was a particularly fruitful time for the project, which currently stands at around the halfway mark of its completion, and very much on track to produce its first oil in the summer of 2016. France’s Vallourec, the world leader in premium tubular solutions primarily serving the energy market, was selected in May to supply its premium line pipes and welding services, and will provide Subsea 7 with seamless

offshore line-pipe. Dominique Richardot, Managing Director of Vallourec’s Pipe and SURF activities, declared: “Vallourec’s involvement in several parts of the TEN project demonstrates our ability to generate added value for our clients through flexibility, synergies and close cooperation.” Only a couple of months prior, Aibel Thailand had cut the first steel for topside modules for the TEN project at its subcontractor Deeline Construction Co. Ltd.’s fabrication shop in Rayong, Thailand. This contract was signed in February last year, and will see Aibel Thailand delivering seven modules with a weight of 9,400 tons to the FPSO vessel.

W ith Ghana’s national oil firm expecting to pump 190,000 barrels of crude per day by

the end of 2016, between them the Jubilee Field and TEN cluster will shoulder an enormous responsibility in achieving this. Head of Ghana National Petroleum Corporation (GNPC) Alex Mould told Reuters exactly how this target would be hit: “By the end of 2016, we should be producing something close to 60,000 bpd from TEN, and we should be looking at 130,000 barrels per day from Jubilee. We won’t hit the 130,000 bpd early next year, most likely towards the end of the year.”

Oil is crucial to Ghana, and the TEN cluster looks set to play a huge role in restoring fiscal stability, with oil revenue central to budget projections and total crude output set to be above 200,000 bpd by late 2016

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Introducing ring rolling machine RAW 1000/1000 Editorial: Rosie DeWinter

Total World Energy speaks to seamless rolled ring specialist, Euskal Forging, who has established an impressive position as world leader manufacturer for wind turbine foundations. With its fifth ring rolling machine ordered from SMS Meer on its way and set to be the second most powerful one in the world the company has built to date, the new ring rolling machine will allow Euskal Forging to produce rings with a 10.2 meter diameter.

First founded in the early 1970’s by current owner Mikel Redín, the company started the ring rolling processes by the 1980’s.

“Mr. Redín started the business rolling rings up to 1.5 meters and 400 kilos each. Now we are

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reaching five ring rolling machines and our capacity goes from 0.5 meter diameter to 10.2 meters, from 30 kilos to 80 tons, so we can say that is the widest manufacturing range in the world,” explains Mr. Jose Luis Azurmendi,

Commercial Director at Euskal Forging.

As of this year, Euskal Forging now manufactures seamless rolled rings and flanges with a maximum outer diameter of Ø10.2m and with a maximum weight of

Grupo Euskal Forging approximately 80 tons.

With three manufacturing locations - 47,000 m² covered area - in Northern Spain, Euskal Forging ensures the quality of its products by ensuring it employs the finest raw materials, including the highest quality vacuum degassed steels in carbon, alloy, stainless, duplex steels and super alloys.

With a wide and extensive variety of raw materials and with the company’s strong commitment to its customers, the heating process is then carried out in ten gas furnaces that can be programmed to automatically execute heating curves.

The manufacturing continues with an automatic punching process which is considered to be the most innovative design within the sector today.

Lastly, the heat treatment, perhaps the most critical process, is carried out at Euskal Forging’s

facilities with the use of further advanced technology to provide different treatments, including normalising, annealing, quenching and tempering.

EXPLORING NEW MARKETS “Our approach varies based on the different industries that we are looking at. Today, we can say that Euskal Forging has been able to put the company into new growing markets,” Mr. Azurmendi explains.

“I’m not speaking geographically, I am speaking about the nature of the markets. In the offshore wind industry, we are currently world leaders when it comes to flanges for the foundations. Last year we bid for six projects and we won five of those highlighting the market share that we have today.

“So our approach is more on intelligence and supplying knowhow to the supply chain in order to make the market possible. We

are improving our technology and the mechanical properties of the products that are used today in these industries, specifically in the offshore sector as this is becoming increasingly demanding,” explains Mr. Azurmendi.

Deputy Commercial Director, Mr. Josu Ortego explains that the Oil and Gas industry uses a similar strategy to that of the offshore wind industry in terms of technology but implements a different approach in offering a one-stop shop solution.

“For these markets the company has a similar service approach to the customers. Traditionally we were involved only with the production of the rings, but in the last six or seven years, we have started integrating more added value to the products, such as machining, gear-cutting, welding, induction hardening, basically anything that the customer might need to have a product ready to be

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assembled.

“Also the new investments will allow us to produce rings up to 10.2 meters, which are quite in demand for certain applications in the Oil and Gas downstream industry like Coke Drums. We hope the market will continue along this path and substitute existing products with our technology thanks to this new machine,” Mr. Ortego adds.

SMS MEER CONTRACT This powerful machine was ordered in September 2013 - Euskal Forging’s fifth ring rolling machine from SMS Meer - which is set to be the second most powerful ring rolling machine that SMS Meer has built to date.

The new radial-axial ring rolling machine will allow Euskal Forging to extend its production spectrum to produce rings up to 80 tons in weight, a maximum ring diameter of 10.2 meters and maximum height of 1.7 meters.

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The Raw 1000/1000 machine will be fitted with modern ancillary equipment so products such as the tower flanges built for wind turbines for example, can be produced on a cost-efficiency and cost-effective basis. This will help to ensure Euskal Forging continues to meet the ever increasing demands of the industry for larger rings as wind turbines become taller and larger generators are needed up to at least 8MW, especially for the offshore sector.

The new innovative ring rolling machine will be installed at Euskal Forging’s plant in Sestao with commissioning starting this year.

“For the new machine we have focused in three different areas: Firstly, getting this diameter to support rotating machines whose diameter is always getting bigger, up to eight or nine meters, so we have to be ready for that. Secondly, the power of the machine is also very important for us so we can roll very big sections of about 1.5 meters; with section we mean the

difference between the outer and inner. There are some markets which traditionally have a lot of problems to get this type of product with big sections because the power needed to roll them is very high and they have to use alternative processes like free forging.

“Finally, the height, currently we are getting 1.7 meters with this machine, so for certain nuclear and oil and gas applications, we can replace the more traditional method seen today. With this new machine, we believe these three areas will be the factors for our success,” Mr. Azurmendi explains.

Historically, the big rings and gears would be made from castings, but with this new machine and progress in technology, the traditional production method can be replaced with a more cost-effective alternative and a cheaper solution for Euskal Forging customers.

“In the offshore wind industry, we are currently world leaders when it comes to flanges for the foundations” “Let’s say that our approach in some areas is to go into new industries and try to be ready for the new technology, especially for the offshore. Secondly, to see in which markets we can replace historical production methods with our products to reduce the

Grupo Euskal Forging cost significantly,” explains Mr. Azurmendi.

A COMPETITIVE EDGE Mr. Azurmendi explains that Euskal Forging has developed a strategic approach that is very customer centric: “We have defined ourselves as part of their supply chain so we are very much focused on ensuring we reduce the costs for our customers allowing them to win orders and to make the product more competitive. Our service, customer support, relationship with customers and understanding of their needs is important. We give them support in terms of our knowledge and integrating added processes that otherwise would have to be sub-contracted.”

In addition to valuable customer service, Mr. Azurmendi includes

“Now we are reaching five ring rolling machines and our capacity goes from 0.5 meter diameter to 10.2 meters, from 30 kilos to 80 tons, so we can say that is the widest manufacturing range in the world”

innovative machinery and its plant location amongst its competitive attributes: “We are prepared with state of the art machinery, especially with the latest new investments we have done at a strategic location,” he explains.

“My career, with 30 years in this business, shows me that in the demanding markets we work, the price is not always the key factor.

There are factors like quality, timemanagement and no mistakes – which, at the end of the day, help to make a product that is cheaper than the one from our competitors.

“One contributor to our ‘just in time’ factor is our location which in some cases makes the project possible. Last year we did a full study of the rivers in Europe that can be used for transport and we have found that we are able

RING ROLLING MACHINES GAINING MEASURABLE ADVANTAGES WITH A STRONG PARTNER

Ring rolling machines and plants from SMS Meer, characterised by cost efficiency, precision and long service life, produce highprecision state-of-the-art rings with profiles coming very close to the desired final contour.

The portfolio extends from individual machines such as ring blank presses, rolling machines and ring expanders through to complete and fully automated plants. Thanks to the modern automation system with its own control desk, the process parameters can be adjusted quickly – for seamless process integration. The result: Integrated plant solutions in which all components are efficiently matched to one another.

AZ Schmieden_151x112_GB_RZ.indd 1

Quality unites – a fact that our customers and we discover time and again with every new project. Together we develop solutions that give our partners the competitive edge in their business. Thanks to this good cooperation, SMS Meer is a leading international company in heavy machinery and plant engineering.

www.sms-meer.com

11.02.15 17:37

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to reach by barge, 90% of the customers that use very large rings.

Firstly, we load the rings directly from our quay into the boat and at the closest main port to the customer, straight onto a barge that delivers the ring into the customer’s site. This is very important, we recently won an order for a customer, to deliver several rings of more than nine meters and more than 40 tons each and the only way to make this possible was to deliver them by boat.”

“The location by the harbour is therefore a key competitive advantage for us, when it comes to the transport of especially large rings which can reach more than seven meters. This is very special and unique and there’s nobody else in Europe that has that availability, and only a few in the world,” explains Mr. Ortego.

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CURRENT INVESTMENTS Talking of current investments for Euskal Forging, Mr. Ortego explains that at its Irura plant, the company is focusing on new areas, namely super alloys: “This arm of materials goes mainly into the aerospace and the Oil and Gas sector. For that, we have carried out the investments defined by the engineering team and increased our engineering head count. Investments in machinery include the press and ring rolling machine, to control and be able to work in a more precise way like these materials require. In heat treatment, the furnaces need to have a very tight control of the temperature and we have done the investments to adapt those furnaces to be able to work in the aerospace sector.

“Additionally we are investing to get the approvals from the end customers and OEM’s (Original Equipment Manufacturer). We are running different trials with them to get the qualifications,” Mr. Ortego adds.

“In Sestao, in line with the new ring rolling machine up to 10.2 meters, we are also buying and installing heat treatment furnaces up to 10.2 meters,” explains Mr. Azurmendi. “This means that we can now supply our rings in black condition or machined up to 10.2 meters.”

A FOCUS ON SUSTAINABILITY With an impressive position as world leader manufacturers and playing an important role

Grupo Euskal Forging within the offshore wind industry, sustainability is certainly a subject that Euskal Forging take very seriously.

“We are working in offshore wind but we have also moved into more renewable sectors like hydro power and we are currently in talks with leading hydro power companies.

Presently, we are working on projects in Austria and in the South of Germany so there’s a lot of focus over there to generate electricity through these type of turbines.

“Obviously our interests are focused on renewable energy because the machines and turbines are much bigger than in previous years. When we decided to start thinking four years ago about the new ring rolling machine up to 10.2m - we had to analyse the growing power of the machines and the size of the components. So

this has been the driving factor for buying this machine,” explains Mr. Azurmendi.

Additionally, Euskal Forging also follows environmental standards, namely the ISO: 1401. “There have been recent investments to have regenerative furnaces which will help to reduce pollution and consumption of energy by around 30% or 40%,” Mr. Ortego explains.

This regeneration of the heat is a very positive and important move for Euskal Forging, particularly from an expense point of view.

A POSITIVE FUTURE For Euskal Forging, over four decades on, Mr. Azurmendi explains that the future now lies in two directions: “In our Irura Plant – where we are making rings up to four meters - the focus is on more demanding materials, this is

very clear. We see our customers are developing smarter products using less material so this indicates that the grades used have to achieve higher mechanical properties and therefore we are dedicating a lot of time to our research department.

“In our Sestao plant, we are focusing on very big equipment in various locations and sectors like offshore wind. Today some OEMs have a 6MW wind turbine approved and there are certain developments in bigger machines for the offshore wind energy up to 10MW, so we are ready for that. There have also been developments for big equipment within the Oil and Gas industry, rotary equipment within the mining and cement industry and the bearing industry,” concludes Mr. Azurmendi

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Excellence in the refining industry Editorial: Ajuanne Payne

A process engineering contractor with over 40 years’ experience, KT - Kinetics Technology, an Italian based company is a leader in providing solutions and services for the refinery industries. Since inception, KT has successfully completed more than 500 projects across five continents and has made the organic move into full EPC contracting. Andrea Vena, Commercial Director, talks to us here at Total World Energy about KT’s recent projects and significant investments in proprietary technologies…

KT is an international process engineering contractor, subsidiary of Maire Tecnimont Group, with specialist expertise in the hydrocarbon processing industry.

In recent years the company has evolved in to a full EPC contractor and has subsequently been awarded 20 EPC contracts over the past five years alone.

Based in Rome, the company also operates as a provider and developer of proprietary technologies, with strong expertise

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in sulphur recovery facilities, gas processing, refinery process units, hydrogen and syngas production and process fired heaters.

Their two main areas of specialty focus on Sulphur Recovery Units (SRU) and hydrogen production from steam reforming of hydrocarbons. KT is an industry leader in supplying SRU’s and Hydrogen production units and in the past decade has completed more than 100 projects in this field worldwide.

Andrea Vena states that: “We define ourselves as a mid-sized process engineering contractor.

What is the meaning of ‘process engineering contractor’ - the meaning is that it is our business do lump sum turnkey projects, based on technology.

“We have two main technologies in our business. One is for a hydrogen production unit, the other one is a sulphur recovery unit. We leverage on this technology - we don’t just sell the basic design, but

KT - Kinetics Technology we try to sell an EPC project based on our know-how and capabilities.”

Established in 1971, KT has a long and successful history in the field of high temperature technologies. The company has been through a number of name changes over the years that have brought it to where it is today.

“In 2010 we were acquired by Maire Tecnimont Group and we changed the name to Tecnimont KT,” explains Vena, “and in 2013 we changed our name again to KT. The reason was just to recall the brand, because the problem that we saw on the market was that everywhere they knew us as KTI. Since we’d changed the name several times it was quite hard to recognise that we were the same company. So now our name is KT, which is quite similar to the original one.”

KEY PROJECTS Just focusing on KT’s traditional product line, the company is one of the frontrunners in the industry.

They are well positioned and well recognised and have built up a robust reputation for quality work and technological know-how. More recently in the past three years KT have re-positioned themselves to specifically target the refining industry, as well as their original areas of hydrogen and SRU’s.

KT has demonstrated that, when targeting refinery projects valued at around EUR400 million, they are extremely competitive. One of the reasons behind this is that the company’s competitors are huge company’s targeting projects in the worth billions of euros, but in the more mid-sized projects KT has the kind of flexibility that these companies don’t have and are able to tailor their offering much more easily.

This has proven to be the case across both their traditional and new areas of business and the company has worked on some key projects in recent years that are a further testament to their reputation and expertise.

“Recently in the last two years we have been awarded with very important projects in areas which are close to the areas of our know-how and capabilities,” explains Vena. “We have been awarded a hydro-cracker complex in Cameroon for Sonara. By Total, we have been awarded a very important project - the so-called Refinery Off-Gas (ROG) project in the Antwerp refinery.

“We’re now going to sign a contract for a Delay Coker Unit.

These three projects are in some way connected to hydrogen needs.

We are trying to expand in areas which are close to what we are normally used to doing.”

The Antwerp Refinery project for Total was awarded in 2014 and is an EPC contract worth around EUR200 million.

The aim of the project is to

recover valuable gas, while keeping disruption to the refinery’s operations to a minimum.

Vena goes in to detail, explaining that “the target for this project is to recover valuable gas from the gas which is normally flared inside the refinery. When I say ‘valuable gas’ I have in mind Ethane, because ethane is the feed for the downstream petrochemical complex. So, the target for Total was, to try and recover some of this valuable gas in order to feed the downstream producing plant.

“There was very severe bidding for this project, which was involving us and some other contractors which are very reputable. For us, it was very challenging to demonstrate to the client that our level of competencies is the same as the other EPC contractors or even better. After one year of bids, we succeeded in being awarded this project, and the reason was

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that our project execution strategy was the best.”

The technical constraints of this project lay in the construction activity. Due to the fact that the Antwerp refinery is a very crowded refinery, for safety reasons Total needed to minimise the construction at site and minimize any need to stop production.

KT’s idea was to arrive at site with the modules - with the equipment and instrumentation ready to install and therefore minimise the activities at site.

Coupled with the fact that their proposal was also the most competitive, KT was successful against their much larger competitors.

“Now this project is ongoing, for more than eight months,” explains Vena. “We have a full staff of Total people in our offices, who are supervising our activities. The

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project is very challenging, both in terms of execution and in terms of schedule, because for Total time is of the essence.”

In Cameroun, KT was awarded an EPC contract worth around EUR450 million for the Societè Nationale de Raffinage (SONARA).

The project is scheduled for completion in 2017 and centres on the installation of a Hydrocracker unit for the refinery there.

Vena goes in to further detail about the project: “In Cameroun the client is SONARA, which is the state-owned company for oil and gas. SONARA refinery is located in Limbe, Cameroun, which is not a place where you have a lot of infrastructure. Cameroon is completely dependent on Nigeria for crude oil supply and they have also their own crude oil - but, this crude oil is very heavy and has a lot of sulphur.

“So, in order to process this crude oil, you need to fit the refinery with special units which should be in the position to upgrade this heavy oil,” explains Vena. “The idea was to supply a Hydrocracker unit which processes the heavy oil and produces distillate. So, we have this Hydrocracker complex which also includes a hydrogen plant and a sulphur recovery unit plant.

“We participated in this bid against very reputable EPC contractors and we succeeded.

Once again, the winning card was the competencies and the execution strategy, because we spent a lot of time in Cameroon trying to maximise the local content. In Cameroon it’s very difficult to manage, for example, the construction.

“We were clever and went there to better understand what companies can support us during

KT - Kinetics Technology this activity. We spent more than two months in Cameroon trying to understand the local content, which was the key factor for being successful.

“This is also a key value of our company – we are very flexible, we are not rigid. Whenever we go to some new geography or new country, we can immediately mobilise our people to better understand what the conditions are there. On one side, we can say that we have demonstrated we are competitive, we understand the complexities of the project and on the other side we have also demonstrated we understand the local conditions and geography.

These were the two success points.”

explains Vena. “The overall project was an H-Oil plant and in this plant there was a sulphur recovery unit.

“There were plenty of competitors, more than ten and once again we were successful a couple of years ago because we understood the local construction.”

Vena goes further, explaining what the key is for this type of bid: “Whenever you bid for an EPC contract, one of the most important things is to properly estimate the risk of construction in the country. Bulgaria is not a very well-developed country - the

local manpower needs to be well instructed and to be integrated with ex-patriate people, so our success was in properly identifying the right mixture of ex-patriate and local people for the construction. This project was awarded two years ago and just one month ago the plant was successfully started up.”

HYDROGEN PLANT PROJECT WORK Hydrogen is a very important part of KT’s portfolio and in recent years they have been awarded several hydrogen plant projects. There has

SRU PROJECTS Sulphur Removal Units, or SRU’s, can be found in the majority of all oil and gas processing facilities throughout the world.

Although not a profit-making unit for the operator, it is an essential processing step to regulate the discharge of sulphur compounds in to the atmosphere.

The desulfurizing process, or ‘Claus Process’, recovers sulphur from the gaseous hydrogen sulphide you find in natural gas and from the by-product gases produced when refining crude oil and in other industrial processes.

One significant SRU project for KT was for client Lukoil in the Burgas refinery, Bulgaria. Valued at an estimated EUR50 million and completed in 2015, the EPC project centres around the installation of two identical SRU trains.

“This sulphur recovery unit is part of a big investment which has been made by Lukoil in this refinery in Burgas, which is the greatest refinery in Eastern Europe,”

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been an ever-increasing demand to reduce more and more emissions and by-products from the refinery processes – which involves hydrogen. Whenever there is a need to upgrade crude oil, there is a need for hydrogen.

Vena goes in to detail about a recent project award in this area: “One project which was delivered successfully a couple of months ago was again for Lukoil, in Perm. Perm is an industrial Russian city which is located on the Ural Mountains.

“Again, this was completely new geography for us. If you went there you would see that the minimum temperature is minus 47 degrees, which causes difficulties in design because you have to cope with these low temperatures. There are also severe constraints in designing due to the application of Russian rules, which force you to think in a different way.”

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“Whenever you have a technology this is something which is living and you need to feed it every day”

The Perm Project is worth an estimated EUR45 million, was completed in 2015 and is designed to produce a maximum 40,000 Nm3/h.

KT has displayed repeatedly that their flexible approach and attention to detail have ensured their success in continually winning projects of a high calibre. Another key factor that contributes to the company’s continued growth and success is its focus on fostering strong partnerships with companies.

Vena states that “this is a part of our DNA. Our company is a mid-sized company. We try to have a lot of alliances so the key words for us are ‘competencies and alliances’ and we have in place several alliances with big contractors like Saipem, like Technip. We are now trying to approach Tecnicas Reunidas because we understand that the key factor for growth, especially

Kinetics Technology

for a company like us which in refineries is a newcomer, is to find cooperation with others.”

CONTINUED FOCUS ON RESEARCH AND DEVELOPMENT As a core value of KT, they continuously focus on the development of proprietary technologies and investment in research and development. Vena explains that “when you have your own technology you have to maintain it, to benchmark it against the competitors’ technology. Whenever you have a technology this is something which is living - and you need to feed it every day.

“Just to give you an idea, 5% of our working man hours are devoted to research and development. We are trying to do a lot of things in that area, especially in sulphur recovery units. We are developing a new process to recover sulphur

from H2S, producing hydrogen. We are developing a new technology which is named H2S Cracking which is on one side recovering sulphur, and on the other side producing hydrogen.

“We are trying to go for zero emissions, capping SO2 emissions and producing hydrogen. This is something which is ongoing. On paper this technology works, now we are building a pilot plant to demonstrate it and we hope that in the future we will be in the position to scale up from the pilot plant to an industrial plant.

This is something also which characterises our company trying to always pursue continued innovation in our technology.

With a concerted focus on innovation, research and development, KT has ensured that they stay at the forefront of the market over the past four decades. The company has

built up a formidable amount of expertise in their areas of specialty and continue to win important and technically difficult projects with major clients.

Vena explains that “the key to KT’s success is the passion of the people, is the motivation and is the fact that really we are completely devoted to the client.

This is something that you cannot see in bigger companies. We are always open, we are always keen to understand the client’s needs, to always try to follow what they want and try to be flexible.

“If you could ask to one of our clients what they think of KT, maybe this is the answer that they would give you – that we are always close to them. Our key words would be - ‘put a desk in the clients office’, because if you are close to the client, you may understand him, his mentality, his needs and his problems,” concludes Vena

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41 million end users and counting Editorial: Harriet Pattison

A leading European electricity transmission system operator (TSO) in the Netherlands and across Germany, TenneT now ranks among the Top 5 TSOs in Europe today. Total World Energy speaks to Managing Director of TenneT Offshore, Wilfried Breuer, who explains the status of the latest grid connections and TenneT’s continued commitment to sustainable energy…

Q: Tell us about the history of TenneT? When did the organisation start up?

TenneT can look back on more than 100 years of experience in the power transmission business. By the end of the 19th century various local energy companies were responsible for transmitting electricity in the Netherlands. Some of these companies merged in to regional electricity providers during the years. In 1949 these regional electricity companies finally merged to Sep N.V. the predecessor company of TenneT. In 1998 the Dutch state founded TenneT Transmission System Operator (TSO) B.V. with the mandate to operate the national transmission grid for electricity. Since then, TenneT has been responsible for the power transmission system in the

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Netherlands.

In May 2009 E.ON AG founded transpower stromübertragungs GmbH with the mandate to operate the German part of the transmission grid for electricity which was owned by E.ON AG. As of 31st December 2009, TenneT Holding acquired all E.ON AG shares of transpower and founded the first international transmission system operator in Europe. In October 2010 transpower changed its name to TenneT TSO GmbH. TenneT holding and its subsidiaries TenneT TSO B.V., TenneT TSO GmbH and TenneT Offshore GmbH are responsible for planning, expanding and operating the transmission grid on and offshore in the Netherlands and large parts of Germany. TenneT Holding is located in

TenneT Arnhem (The Netherlands). The German headquarter is located in Bayreuth.

Q: What is the organisation’s core business and main activities?

TenneT is the first international TSO in Europe.

TenneT owns more the 21,000 km of high and extra high voltage (ehv) power lines and ranks among the top five TSOs in Europe. The core business of the Dutch state owned company is operating, maintaining and further developing the transmission grid in the Netherlands and large parts of Germany. TenneT operates overhead power lines and underground cables on land and offshore. In Germany TenneT TSO GmbH is one of four TSOs and operates all 220kV and 380kV power lines in its control area. TenneT’s control area is the largest of all German TSOs and covers 40% of the German territory. It forms a corridor of 140.000 km2 reaching from the Danish border in the North to the Alps in the South. More than 20 million German citizens can rely on the secure power supply provided by TenneT TSO GmbH. Since the coastal area of Germany and the Netherlands forms part of TenneT’s control area, TenneT is responsible for connecting all wind farms in the Dutch and German North Sea waters to the power grid onshore.

TenneT TSO GmbH and TenneT Offshore GmbH

will invest about 11 bn. EUR within the next ten years to fulfil their tasks in Germany. The necessary grid expansion is mainly driven by the decision of the German Government to intensively promote renewable energy sources and shut down all nuclear power plants by 2022 - core elements of the so called Energiewende. TenneT with its investments is the single largest investor into the German Energiewende.

Q: What is TenneT’s current footprint? Is the organisation planning for further expansion? Is there scope for movement into other industry sectors? What is the target for the organisation over the next 2-3 years? Consolidation? New services?

TenneT mainly focuses on the transmission of electricity in Northwest Europe. There are no plans to venture into further industry sectors. However, we are carefully observing the TSO market. As a successful company we want to further grow steadily and expand our activities within our core business and supply area.

TenneT wants to further focus on business consolidation under one company active as two TSOs in two different countries. New services are already required for the asset management and service of the offshore HVDC transmission systems installed in the German beight of the North Sea.

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Q: What is the current progress of the three grid connections - Sylwin1, HelWin1 and HelWin2 – are these still on schedule to take up commercial operation this year?

In February 2015 TenneT completed HelWin1 the second offshore grid connection this year. Just a few days before, TenneT finished the first large-category offshore connection with BorWin2 (800 MW). The HelWin1 connection is capable of transmitting around 600 MW of offshore wind power from the German North Sea. With the completion of HelWin1, TenneT now provides around 2,000 MW of transmission capacity in the German North Sea. With HelWin1 TenneT achieved a further milestone in terms of the offshore expansion targets of the German Federal Government.

HelWin1 is now the second offshore grid connection system in this performance category which offers the possibility of connecting more than one offshore wind farm. HelWin1 is already the fifth connection that TenneT has commissioned at sea. Another seven grid connection systems are under construction. Overall, TenneT expects at least 7,100 MW of connection capacity to be constructed in the North Sea by 2019.

TenneT is therefore ahead of schedule of expansion targets of the German Federal Government of 6,500 MW offshore wind by 2020.

SylWin1 is already installed and in trial operation.

TenneT expects to take over SylWin1 from the general contractor in the second quarter of 2015. SylWin1 has a transmission capacity of 864 MW and will be the most remote grid connection so far. The fourth and fifth grid

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connection that is expected to be taken over in 2015 will be HelWin2 and DolWin1. HelWin2 will transmit 690 MW of electricity and is going to start trial operation in the first quarter of 2015. Dolwin2 is expected to start trial operation in second quarter 2015. TenneT expects to take the projects over from the general contractors after successful trial operation before summer 2015.

Q: How would you position yourself in the market compared with the competition? Is there significant competition?

TenneT TSO GmbH is one of four TSOs in Germany. Since every TSO is responsible for its own control area there the business is rather characterized by cooperation than competition. This also applies to our business relation to European partners. The other three German TSOs are Amprion, 50Hertz und TransnetBW. The integration of a north western European market zone is one of TenneT’s main focus beyond Germany.

Therefore, TenneT invests constantly in cross-border connections and realizes them together with neighbouring TSOs. Among these interconnectors is the subsea cable, NorNed, which is connecting the electricity markets of the Netherlands and Norway since 2008. Another international cooperation is the subsea cable BritNed between the Netherlands and Great Britain. TenneT plans further interconnecting subsea cables between Germany and Norway (Nord.Link) as well as between the Netherlands and Denmark (COBRA). Integrating the north western European electricity market is not only

TenneT

important to guarantee the energy supply of the future, but also counteracts high electricity prices. Based on commissioned projects and further plans, TenneT is a core facilitator of high-voltage transmission interconnections around the North Sea states and markets.

Q: What are some of the key projects TenneT has been involved with over the past few years? Tell us about the BorWin2 grid connection – what was the timeline for this project and what role will it play?

Offshore wind energy largely contributes to the success of the German Energiewende and plays a major role in the energy mix of the future. Since December 2006 TenneT TSO GmbH is responsible

by German Energy Law to provide offshore windfarms in the North Sea with the necessary grid connections and to operate these connections.

TenneT already invested more than EUR €9 billion in offshore infrastructure. This makes TenneT the biggest investor in the German Energiewende. With all our offshore grid connections already in operation or awarded, more than 7000 MW of offshore wind energy can be transmitted to the grid onshore.

According to German law, TenneT is obliged to operate grid connections with an overall capacity of 12000 MW until 2024. TenneT is well on its way to accomplishing these targets in time.

The first alternating current grid connection, which is in operation since 2009, connects the offshore windfarm alpha ventus with the German

onshore grid. Our first large scale direct current grid connection is BorWin1 which is transmitting electricity since 2010. This has been the first project using HVDC technology to collect offshore generated electricity. The second direct current grid connection (BorWin2) is operational since January 2015. BorWin2 provides a crucial contribution to the German Energiewende. BorWin2 was the first of offshore grid connection systems in this capacity class, which will be completed in 2015. In addition, this is the first system enabling the connection of more than one offshore wind farm.

A test operation of several weeks preceded the completion of BorWin2. Wind power from the Global Tech I wind farm could already be fed into the grid during this phase. Furthermore, 50% of the grid connection capacity is reserved for the Veja Mate wind farm.

BorWin2 also marks the completion of a direct current grid connection with a length of 200 km for offshore wind farms. A consortium consisting of Siemens and Prysmian as contractors of TenneT had already finished the construction of offshore and onshore converter stations in summer 2014. BorWin2 is a joint investment project of TenneT and Mitsubishi Corporation.

Q: Tell us about TenneT’s role with HVDC technology – how has it been implemented in past and present projects?

HVDC technology is mainly applied, until recently, for operation of longer submarine cable transmission

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projects. TenneT had invested in this technology already over ten years ago with BritNed and NorNed interconnectors. With the additional application of HVDC technology to connect remote offshore windfarms, TenneT is now by far the most advanced user of this innovative transmission technology among the European TSOs. Building on this portfolio and experience and due to the increasing demand of transmission capacity onshore, led to the planning of the first HVDC power link in the control area of TenneT. In order to make use of the increasing amount of wind energy in northern Germany and to compensate the decreasing power supply of nuclear power plants in the south, especially power lines that connect northern and southern Germany are necessary. According to the grid development plan of 2014, the German TSO will have to build 3,500 km of extra high voltage lines to meet the demands of a secure electricity supply. 2,000km will be realized as HVDC power lines. The project Sued.Link will be realized in an 800 km long corridor together with the German TSO TransnetBW. From 2022 on Sued.Link will be in operation and transmit 4 GW of electricity

With the increasing demand of the German Energiewende, TenneT became more of a project driven company within the last few years. TenneT has been increasing its organization and workforce in recent years. A majority of our staff have not spent many years with the company, which creates a motivated and open minded approach, but also challenging environment to pass on experience and know-how. Our success is based on highly motivated and extremely well trained staff in all units within TenneT. As one of Germany’s top employers, we most certainly provide our employees with the training necessary to fulfil their tasks. According to the German magazine FOCUS, TenneT is the number one employer among all German medium sized companies in the energy business. This award is based on surveys that also touched topics such as career opportunities.

Q: What is required from the staff of TenneT? Do they need experience in a similar role? Can full training be given for all positions? What has been the key to the organisation’s success over the years?

The German Energiewende and the recent offshore program of the Dutch Government definitely influence our business. Just last year TenneT was mandated to connect the Dutch offshore windfarms in the North Sea to the Dutch

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Q : I s t h e c o n s t a n t d r i v e t o w a rd s ‘ g re e n e r ’ b u s i n e s s h a v i n g a n i m p a c t (positively or negatively) on the organisation?

TenneT onshore grid. TenneT gained a lot of experience with these kinds of projects in Germany. The Dutch Government shared our view that no company in the world has more expertise in this business than TenneT and mandated us to build five grid connections.

The future allocation of electricity production will drastically change within the upcoming years. Already today the centres of electricity production tend to be more remote than they used to be. As a consequence we have to bridge the growing distances between production and consumption with new power lines. According to the German Government 80% of all electricity will be provided by renewable sources. Most of these generation capacities are located in the north, while in the south of Germany industries and big cities need a constant and reliable power supply as well. In 2023, with all nuclear power plants being out of service, the south of Germany will have to import 33% of its electricity demand.

This is only possible when the TSOs provide the necessary grid infrastructure. Therefore, TenneT is strengthening the mashed grid onshore and

will add north-south HVDC connections to the existing ehv AC power grid.

Apart from that the feed in of electricity became more volatile with increasing capacities of wind and solar energy. In order to cover the times when the demand for electricity is high but the weather conditions don’t allow a high electricity production through wind and solar energy, it is our task to cover this demand with a sophisticated management of power reserves.

This management became more and more demanding over the past years. Today our experts in the control centres have to intervene around three times per day to secure the power supply.

Just five years ago they had to intervene three times per year!

Furthermore, we are conscious of the regional and local impact of our activities on people and the environment, for example when planning and constructing new high voltage lines. Therefore, corporate social responsibility plays a significant role in our daily business. Moreover, we buy green certificates for grid losses in our control area and started a programme to reduce SF6 emissions

A bridge across the sea.

Proven Siemens HVDC grid access solutions enables the harvesting of wind power generated far away from shore.

Siemens grid access solutions create the necessary accessibility to offshore wind farms that are long distances from the m a i n l a n d ’s e l e c t r i c a l g r i d s, b y the usage of high-voltage directc u r r e n t ( H V D C ) t r a n s m i s s i o n s.

Implemented into a Siemens substation platform, this transmission technology allows the perfectly reliable and efficient

transmission of large amounts o f e n e r g y, s u p p l y i n g t h o u s a n d s of households with renewable w i n d e n e r g y. A l r e a d y o p e r a t i o n a l platforms like the BorWin beta or HelWin alpha, already handed o v e r t o t h e c u s t o m e r s, a r e p e r f e c t examples of Siemens’ expertise and reliability and are only the beginning of Siemens’ dedication t o o f f s h o r e g r i d a c c e s s e s.

siemens.com/energy/grid-access-solutions

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A more sustainable future?

Editorial: Rosie DeWinter

Currently importing 97% of all its energy needs, Jordan has set an impressive target to achieve a 1.8 GW of renewable energy capacity by 2020 and with the Jordanian Government awarding 200 MW of solar and wind energy capacity to project developers earlier this year, this target now seems more attainable than ever before…

Established in 1967, Jordan’s publicly owned power transmission company, NEPCO, was set up to take over the power generation, supply and meet the needs of the customers, establish transportation networks and export energy.

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Looking to increase its energy independence – Jordan currently imports 97% of its energy needs – it plans to reduce this to 60% and increase its renewables contribution to the country’s energy generation mix by 10% by the year 2020.

Approximately 92% of the

sector is dependent on fossil fuel sources (oil and natural gas), while electricity demand is expected to grow by 5.5% per annum until 2020.

There’s no doubt as to the potential that Jordan holds, with an estimated 330 days of sunshine a year and wind

National Electric Power Company speeds reaching heights of 11.5 meters per second in the hilly areas, solar and wind energy is starting to make its mark in the country.

Earlier this year, the Jordanian government awarded 200 MW of solar and wind energy capacity, which has set the stage for many more renewable projects in the pipeline to meet the target set up of achieving 1.8 GW renewable energy capacity for 2020.

There is currently less than 2 MW of wind energy installed and operating in Jordan, though the Government has set goals for 7% of all generation being sourced from renewables by this year and increasing that to 10% in just five years’ time.

CURRENT RENEWABLE PROJECTS The largest photovoltaic (PV) facility in the Middle East – the 52.5 MW Shams Ma’an Project in a Power Purchase Agreement (PPA) signed between NEPCO and the project developers, plans to sell electricity at a tariff below other solar projects in the country normally selling at US$0.169 per kWh, for US$0.148 per kWh when it is completed in 2016.

The project, due to start construction this year, will be jointly developed by Qatar’s Nebras Power, Diamond Generating Europe (a subsidiary of Mitsubishi Corporation), both with 35% stake and Jordan’s Kawar Group with 30%. In a

financial agreement that has been signed for 20 years, it will be jointly overseen by a number of companies including; Japan for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), Mizuho Bank and Standard Charter Bank.

US based company, First Solar, were awarded the EPC contract for the Shams Ma’an project to provide the advanced thin film photovoltaic modules and finalized a long-term operations and maintenance contract for the project.

In a statement, Ahmed S. Nada, Vice President for the Middle East at First Solar explained the benefits of this power plant: “Shams Ma’an

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has already established a new benchmark for the independent production of renewable energy in the region, demonstrating how the selection of the right technology and service providers creates considerable value, which, in turn, helps attract experienced institutional investors.

“We are proud to have been given this opportunity to leverage our industry-leading expertise in project development to create a truly remarkable

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“Renewable energy projects are very important in Jordan as they rely on readily-available local sources”

renewable energy asset. We now look forward to delivering a world-class power plant that will directly contribute to efforts to address the country’s urgent energy needs.”

Labelled as Stage 1 of the Jordanian Government’s plans for several new renewable projects, the Jordanian Ministry of Energy and Mineral Resources have now approved 12 PV projects of varying sizes with a total installed capacity of 200 MW and two wind power

National Electric Power Company projects. More tenders are expected to be awarded in the future by Jordan in a bid to meet its target to install 600 MW solar PV capacity and 1,200 MW of wind energy capacity by the year 2020 in an effort to reduce the country’s dependence and reliance on fossil fuels.

With a proposed generation of 117 MW, the Tafila Wind Farm, is to built, owned and operated by Jordan Wind Project Company (JWPC). Among the country’s first utility scale wind farms, the power generated will be supplied directly to NEPCO. Last month, H.E. Mohammad Hamed, Minister of Energy and Mineral Resources, checked the status of the construction work at the power plant in Tafileh, 180km southwest of Amman, which is expected to be commercially operational at the end of this year.

The Tafila wind project is sponsored by EP Global Energy (EPGE), Inframed Infrastructure, and Masdar Power with financing arranged by the International Finance Corporation (IFC) and with participation from the European Investment Bank (EIB), the Export Credit Agency of Denmark (EKF), the OPEC Fund for International Development (OFID), the Dutch Development Bank (FMO) and Capital Bank of Jordan.

SOLARTECH JORDAN 2015 CONFERENCE Taking place at the beginning of February in Amman, the conference was held to explore further opportunities into renewable energy projects and presented the country’s plans and incentives within the renewable energy field. With

its strong strategic location and political stability, Jordan is certainly an attractive investment within the renewable energy field.

With the current projects – the wind project in al-Tafila and the Shams Ma’an project – the conference aimed to form partnerships and joint ventures within the renewables field.

Kamal Hendi, one of the conference’s organisers explained: “We are here today to introduce the investment climate in Jordan in this field.

Investors from most European

countries, as well as officials from all sectors to whom we can present investment opportunities in Jordan, are here at the conference.”

As one of the first Arab countries to make this leap into renewable energy and introduce incentives, customs exemptions and tax breaks for revenue from renewable energy projects, Hendi added: “Renewable energy projects are very important in Jordan as they rely on readily-available local sources.”

ENERGIÁRA építünk Based on its traditions of more than six decades, the MVM OVIT Az MVM Zrt. több mint hat évtizedes hagyományai az energetikai szektor Zrt. is a OVIT reliable, competitive partner of highalapján professional level in megbízható, versenyképes szakmai közreműködője, nagyfeszültségű the energetic sector, és inmagas the field of színvonalú high-voltage power transmissitávvezetékés alállomás-építés, erőművi karbantartás és gépgyártás, vasúti felsővezetékon line and substation construction, power plant maintenance and power manufacturing, railway overhead szerelés, equipment acélszerkezet-gyártás, valamint távközlési rendszerek telepítéseline terén.installation, structural steelwork manufacturing, as well as telecommunications systems installation. www.ovit.hu www.ovit.hu Energiát adunkenergy a mindennapokhoz - MVM Csoport We provide to your everyday life – MVM Group

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SHALE SUCCESS In addition to the renewable energy plans already in the pipeline – Jordan has invested in shale gas, signing a US$2.2 billion build-operate-transferdeal, in a bid led by Estonia’s Enefit.

Jordan’s Natural Resource Authority estimates a total of 70 billion tons of commercially viable shale oil available, making it the fourth largest shale oil field power plant in the world, following Narva in Estonia.

This project will stand as the

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country’s very first oil shale power plant, with plans to have it built and up and running by as early as 2018. A 470MW plant, with construction starting this year, it is hoped to add 20% to Jordan’s total energy needs, cutting the energy bill by an estimated $500 million a year.

An evidently financially viable investment – the electricity produced will be purchased at half the current market price – the shale power plant is set to create 3000 jobs with a further 700 in place for the ongoing

commitments and operations.

The Jordanian Government is set to receive royalties of $2.11 per to – amounting to an exponential $21 million on a yearly basis – the plant is expected to consume 10 million tons of shale oil every year.

JORDAN’S RENEWABLE FUTURE? Iad Jibril, Director of Renewable Energy at the Ministry of Energy and Mineral Resources said at the conference: “The year 2015 will see the implementation of several renewable energy projects with a capacity of 500 megawatts, this will create many job opportunities for young Jordanians.”

Director of the Jordanian

National Electric Power Company Environment Society, Ahmed al-Kofahi, emphasised the importance and necessity of the government’s increased interest to implement further renewable energy projects in the coming years: “Renewable energy, whether from wind or solar power, is abundant in Jordan, which has more than 300 days of sunshine a year and there are many areas in Jordan suited to producing energy from wind.”

“We are all for energy that is green, renewable and ecofriendly. There is high demand

“Renewable energy, whether from wind or solar power, is abundant in Jordan, which has more than 300 days of sunshine a year and there are many areas in Jordan suited to producing energy from wind”

not only from large companies but also from homes, schools, hospitals and small companies which have started installing these systems for their electricity supply,” al-Kofahi added.

W ith two renewable energy projects underway and the Jordanian Government issuing plans for more in the following years, the future for NEPCO and the power generation of Jordan looks set fir itto reach its target to achieve 1.8 GW renewable energy capacity by 2020

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A time for recognition Editorial: Ajuanne Payne

The Subsea UK awards are a prestigious annual event aimed at celebrating the successes of UK companies and individuals in the Subsea sector. This year’s awards dinner was held the 11th February on the first day of the Subsea UK Expo – here we take a look at the winners of the night…

Subsea UK is the industry body dedicated to the British subsea industry, whose aim is to “increase business opportunities at home and abroad for the sector.” With over 290 member companies, Subsea UK is very much focused on promoting the expertise and track record that sets the UK subsea sector apart.

The Subsea UK Expo is the yearly focal point for the industry in Britain and the awards are

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the celebration of British subsea success locally and abroad that kicks off the event. The awards are an opportunity for industry figures to recognise the achievements of their peers and the UK’s leading position on the global stage.

The oil and gas sector is certainly not short of exhibitions and events, but Subsea UK recognised the need for a dedicated celebration of the talent and world-class practices in the

subsea sector and held their first awards in 2007. They have kept up the tradition ever since and are a respected organisation for their role in advocating for the UK subsea sector.

This year’s glamourous event was held at the Aberdeen Exhibition and Conference Centre (AECC) and attended by over 850 guests.

Sponsored by 3Sun Group, 2015’s Company of the Year

Subsea UK Awards, 2015 award was won by energy services company, Proserv, for excellence and overall performance in the subsea sector. The company has been running for over half a century and has risen to become a global leader in the provision of technology services to the subsea sector.

Proserv were especially recognised for their revolutionary solutions for subsea companies that help provide more efficient and cost effective ways for them to operate. The company has almost tripled in size over the past three years, with over 2,200 staff and revenues of £264 miliion and operating in 11 countries.

Dave Lamont, CEO of Proserv, said in his acceptance speech that “there is only one better thing than winning - and that’s winning as a team. We have 2,200 fantastic people that make the difference every day so it’s a great honour, but it’s an even greater pleasure because it’s done by the team.”

Sponsored by Subsea UK themselves, the award for Outstanding Contribution to the Subsea Industry went to commercial diving veteran, Alf Leadbitter, of the Underwater Centre in Fort William. An award in recognition of the influence an individual can have on the industry over the course of their career.

Leadbitter has always worked in commercial diving, ever since starting his career in 1975 and has made a significant contribution to setting global standards for commercial diver training. He also had a major influence in the area of closed bell commercial diver training in Australia and has worked at the Underwater Centre for the past decade.

This year’s Innovation and Technology award, sponsored

by Simmons & Co, was won by Tracerco in recognition of the success of its subsea pipeline inspection technology ‘Discovery’.

Touted as a major breakthrough in the industry, oil companies using the technology can inspect subsea flowlines non-intrusively for both integrity flaws and flow assurance problems from the exterior of the pipe, without removing any of the coatings.

Lee Robins, Tracerco’s head of subsea services, explained that the company’s “ethos is to strive for technical excellence in order to add value to our customers, and Discovery is an excellent example of how our research and development team is able to work with our customers to create a technology solution that overcomes their most significant challenges.”

Express Engineering Oil and Gas

Subsea UK Award winners

scooped the Global Exports award, sponsored by Aberdeenshire Council, for successful exportation to the global subsea market. The precision engineering and machine component manufacturing firm has seen an exponential 58% increase in imports over the past two years, trebling sales to £19 million.

The New Enterprise award, sponsored by Apache, celebrates the success of a new start up enterprise in the subsea sector and was awarded to Tooltec. The firm was formed in 2013 and has only four employees, but boasts seven major subsea clients. Over the past year Tooltec has doubled the size of its facilities.

Finally, Alan Muirhead of Ingen Ideas took the award for Emerging Young Talent, in appreciation of his development and contribution at the company. Since joining Ingen as a graduate, Alan has dedicated himself to the mentoring of the next generation of engineers.

Considering some of the challenges facing the industry currently, it is valuable to have events such as the Subsea UK awards to highlight the exciting and positive developments in the industry and remind us of the advancements being made by companies and individuals every day. We look forward to seeing who the winners will be in 2016...

Dave Lamont, CEO of Proserv

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For when you need a break from business Editorial: Ajuanne Payne

Espiritu Santo, Vanuato

With the stress and busy schedule that comes with working in the corporate world, everyone needs a holiday to get away from it all once in a while and recharge the batteries. What better way to truly relax than to visit an island destination? Across the globe there are some truly incredible ones, and here at Total World Energy we have selected our top five…

The impact that taking a holiday has on a person’s motivation and creativity is significant. The phrase ‘recharge the batteries’ is often used to describe how people feel when they get a much needed holiday from work and this feeling is backed up by clinical evidence.

Employers find that their employees are happier and more productive following a break from work and equally as much, executives and directors are able

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to come back from leave relaxed and with a fresh perspective. Here at Total World Energy we have selected our top picks for isolated luxury – truly outstanding island destinations to visit across the globe.

NOSY BE, MADAGASCAR Voted the number one island destination in Africa by TripAdvisor, Nosy Be means ‘Big Island’ in Malagasy and is located off the

northwest coast of Madagascar. With breath-taking scenery, white sand beaches and turquoise waters, the island is a real tropical paradise.

This destination is a popular one and ideal if you want to go on a luxury island getaway, but maybe take the family with you. You could take the whole family scuba diving to view the coral reefs that surround the island, or experience the famous local wildlife and visit the native lemurs in the Nosy Komba Lemur Park.

Destination Director

For more grown-up pastimes the island is home to volcanic lakes and rum distilleries. There are smaller islands nearby to visit and if you are looking for both seclusion and luxury at the same time you can holiday on a private yacht charter that can also take you to the different sights nearby.

Lewis And Harris, The Outer Hebrides

LEWIS AND HARRIS, THE OUTER HEBRIDES Another TripAdvisor number one Lewis and Harris is perfect if you love a more windswept northern beauty and the chance to see the Northern Lights from your bedroom. The island is one of more than 100 islands off the West coast of Scotland that make up the Outer Hebrides.

If you are looking for isolated luxury, there is some excellent high-end self-catering accommodation available to rent on Lewis and Harris, with the North Atlantic ocean steps from your door. A holiday here would be ideal for someone who loves outdoor pursuits – lovely walks across the island and home to the legendary Callanish Standing Stones and medieval ruins.

ESPIRITU SANTO, VANUATO Espiritu Santo in the nation of Vanuato is located in the Pacific region of Melanesia and is an island paradise famous for the pink sands of its Champagne beach and its truly relaxing atmosphere. There is a range of luxury accommodation to choose from, including the extravagant five-star Ratua Private Island Resort – a 30 minute motorboat ride from Espiritu Santo itself.

The island is dotted with a number of freshwater blue holes ideal for swimming and the sea surrounding it is scattered with

wrecks and home to reefs and tropical fish – another island location perfect for diving.

A must-see destination locally is the Millenium Cave – cross a bamboo bridge to get there and experience bathing under the waterfall and see the bats and swallows that make it their home.

ST. LUCIA It is hard to pick just one Caribbean island to add to the list of luxury getaways, but St. Lucia is definitely in the top ten for indulgence, natural beauty and

Espiritu Santo, Vanuato

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Espiritu Santo, Vanuato

lively entertainment. Synonymous with Caribbean romance, St.Lucia is wonderful for a romantic break from work and is not short of fivestar accommodation options.

The interior of the island features lush rain forest, covered by banana plantations and crowned by the twin peaks of the Pitons on the Southwest coast.

For visitors who are looking for less quiet, the spring to summer months offer a variety of events for holidaymakers and locals alike – to name a few, in April there’s the St. Lucia Golf Open, and May sees the big event of the season on the island, St. Lucia Jazz.

in a volcanic group of islands off the east coast of Malaysia.

This last destination is an area of outstanding natural beauty, covered in tropical jungle, waterfalls, mountain streams and home to a variety of rare animals and birds.

If visitors are looking for adventure, there is great rockclimbing to be had on the Gunung Nenek Semukut cliff face or Dragons Horns. Or, if a more laid-back holiday is needed, the

T ioman Is land, Mala ysia

TIOMAN ISLAND, MALAYSIA Tioman Island in Malaysia is our final pick and the largest

Madagasc Nosy Be,

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island is surrounded by wonderful golden sand beaches.

Luxury accommodation can be found at the Berjaya Tioman Beach, Golf and Spa Resort or the boutique resort of JapaMala, for when it is time to relax in a spa or sample the gourmet food on offer.

Any one of these wonderful islands would make beautiful locations for a relaxing break from work and after all - when working so hard it is important to take the time to reap the rewards

ar

Destination Director

World Class Project Our ambition is to continue being one of the world’s leading international pipeline and facilities specialist contractors by bringing added value to our clients and investing in our people and the communities we work with.

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