MAY 2015
more than business
North Sea wind power An ÂŁ800 million project is currently under construction 8km north east of Withernsea in the North Sea. The Westermost Rough Offshore Wind Farm will span 35km2 and boasting a generation capacity of 210 MW, it has the potential to provide power to 200,000 homes every year.
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Looking back over previous issues of Total World Energy, we have featured a number of wind farm projects with large investments and power generation proposals. The Lake Turkana Project in Kenya currently stands as the country’s single largest investment in history and is set to save Kenya an estimated $178 million in fuel imports every year. With the construction of 365 wind turbines, it is on track to generate 300MW by 2016. While 55km off the coast of Germany, the Borkum Riffgrund 1, with an upgraded capacity of 312MW, will provide electricity to over 300,000 German homes on completion. Wind farm projects are now becoming a much more viable renewable energy option with new and innovative concepts helping to make the process a more efficient and effective one – the Suction Bucket Jacket installed on the Borkum Riffgrund 1 project will help to save costs across design, fabrication, installation, all the way through to operation. This month we look at the Westermost Rough Wind Offshore Project, currently under construction 8km north east of Withernsea in the North Sea. With a generation capacity of 210MW, the project has the potential to power 200,000 homes every year. Benj Sykes, DONG Energy Wind Power UK Country Manager said: “We are excited about the potential of this new technology and deploying the 6MW turbine on this scale. We are committed to reducing the cost of energy through the deployment of new technologies, and Westermost Rough will provide a tangible example of how we are doing just that.” Despite the reoccurring argument that wind power is only an efficient renewable energy source when the wind blows, the World Wind Energy Association (WWEA) estimated that 2014 brought a new record in wind power installations with more than 50 Gigawatt of capacity added last year. This brings the total wind power capacity close to 370 Gigawatt, contributing an estimated 5% of the global electricity demand. “The global figures for 2014 look very bright, we are very pleased to see that wind power investment is still speeding up at an enormous pace,” Stefan Gsänger, WWEA Secretary General, explained earlier this year. Let us know your views on the rising potential of wind power @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 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 Front cover image: © DONG Energy 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 2015
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Contents EDITOR’S PAGE
3
NEWS
6
Wind power: the viable renewable alternative?
All that’s happening in the energy industry
EnTREPRENEUR
14
Innovation
16
Westermost Rough OFFSHORE Wind Project
18
Drydocks World
28
Borouge
34
Gate Terminal
40
Kaombo Project
46
Teledyne Oil & Gas
48
Apache UK North Sea
58
VTT Vasiliko
64
IO Oil & Gas
70
Destination Director
72
Energy from waste
Time to look to space?
The £800 million wind power project
‘Business transformation through continuous innovation’
Providing innovative plastic solutions
Bringing LNG to European markets
The ultra-deep project off the Angolan coast
Delivering reliably engineered interconnect solutions
Renewing operations in the North Sea
A world-class shipbuilding enterprise
Tailor-made technical management services
Sky high accommodation
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CONTENTS
26
58
18
40
46
72 PAGE 5
# twenews
Potential 100 billion barrel oil discovery in southern England
London quoted UK Oil & Gas Investments PLC is pleased to announce that US-based Nutech Ltd (“Nutech”), one of the world’s leading companies in petrophysical analysis and reservoir intelligence, estimate that the Horse Hill-1 (“HH-1″) well in the Weald Basin has a total oil in place (“OIP”) of 158 million barrels (“MMBO”) per square mile, excluding the previously reported Upper Portland Sandstone oil discovery. The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the Company has a 20.36% interest. Nutech’s report to the Company states this OIP lies within a 653 feet aggregate net pay section, primarily within three argillaceous limestones and interbedded mudstones of the Kimmeridge, and the mudstones of the Oxford and Lias sections. Approximately 72% of OIP, or 114 MMBO, lies within the Upper Jurassic Kimmeridge interbedded limestone and mudstone sequence. The Executive Summary of the Nutech Report is appended in full at the end of this release and the full executive report with figures will be available on the Company’s website at www.ukogplc.com. In order to establish estimates of total OIP within the licence area, the semiregional resource potential of the Weald
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Basin’s eastern footprint is the subject of ongoing analysis under the contracted alliance between Nutech, UKOG and Solo Oil Plc. The results of the estimated OIP within the licence will be reported when completed. Final assessments of the Upper Portland Sandstone and the Oxford and Lias sections are in progress, with further results expected shortly. Stephen Sanderson, UKOG’s CEO, commented: “Drilling the deepest well in the basin in 30 years, together with the ability to use concepts, techniques and technology unavailable in the 1980s, has provided new cutting-edge data and interpretations to comprehensively change the understanding of the area’s potential oil resources.” “As a result, we believe that, in addition to the Portland Sandstone oil discovery, the Horse Hill well has discovered a possible world class potential resource in what is interpreted to be a new Upper Jurassic “hybrid play”. “With the help of Nutech’s considerable global knowledge base and play library, we have identified that the Horse Hill Upper Jurassic rock sequence is analogous to known oil productive hybrid reservoir sections of the Bakken of the US Williston
Basin, the Wolfcamp, Bone Springs, Clearfork, Spraberry, and Dean Formations in the US Permian Basin and the Bazhenov Formation of West Siberia.” “The US analogues have estimated recovery factors of between 3% and 15% of Oil in Place.” “The Company considers that the high pay thickness, combined with interpreted naturally fractured limestone reservoir with measurable matrix permeability, gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques.” “Nutech’s results combined with our extensive geochemical analyses strongly indicates that the Company’s Horse Hill licences lie within the likely sweet spot of the identified “Weald hybrid play”. “Appraisal drilling and well testing will be required to prove its commerciality, but this “Weald hybrid play” has the potential for significant daily oil production.” “The operator, Horse Hill Developments Ltd, with the assistance of Nutech, is now focussed on flow testing the Portland Sandstone and Kimmeridge Limestone sections of the well, to establish reproducibility and thereby seeking to quantify an overall net discovered resource”.
NEWS
World’s largest engine power plant by Wärtsilä to be inaugurated today in Jordan
The inauguration of IPP3, the world’s largest internal combustion engine (ICE) power plant, takes place today at the plant site near Amman, Jordan. The plant is powered by 38 Wärtsilä 50DF multi-fuel engines with a combined capacity of 573 MW. In recognition of its world record size, the plant has been accepted into the Guinness book of records. The ceremony will be hosted by the owner of the plant AAEPC (Amman Asia Electric Power Company) and will be held under the patronage of His Majesty King Abdullah II Ibn Al Hussein of Jordan. Wärtsilä has been responsible for leading the EPC (engineering, procurement and construction) consortium delivering the largest Smart Power Generation plant in the history of the company. “It is a great pleasure to witness the inauguration with Wärtsilä and other project partners. We are very proud of the world’s largest engine power plant,” says Taemin Kim, Administration Manager of AAEPC. IPP3 will be used for covering the
sharp daily peaks of electricity demand in Jordan. Fast starting and the capability of ramping output up and down quickly and efficiently are key features of ICE technology. “By starting one engine at a time, the plant can follow the demand very precisely,” Kim confirms. IPP3 and its sister plant, the 250 MW IPP4, have been in commercial operation since late 2014. According to data provided by the Jordanian grid operator NEPCO, their impact on the Jordanian power grid has been remarkable. Since the two engine plants have covered most of the peak demand, large gas turbine power plants in the grid have been released from this task. As a result, turbines now produce steady baseload, operating much more efficiently. This leads to significant savings in fuel, energy costs and CO2 emissions. “This empirical evidence shows how our Smart Power Generation power plants can optimise entire power systems by providing much-needed flexibility. Using ICEs for peak load and
gas turbines for baseload is the perfect combination in improving overall efficiency of the grid,” says Upma Koul, Business Development Manager at Wärtsilä. Fast-reacting back-up capacity will also be needed to balance variable renewable power. 600 MW of solar and 1200 MW of wind energy are expected to be installed in Jordan by 2020. In addition to operational flexibility, IPP3 provides fuel flexibility. The tri-fuel plant can run on heavy fuel oil (HFO), light fuel oil (LFO) and natural gas. Currently HFO is used due to shortage of natural gas. The plant will start to use LNG-based natural gas later this year, as soon as it becomes available. “The readiness to use different fuels was essential for us, and Wärtsilä’s engines are the optimal technology for this,” Kim says. Wärtsilä sees strong growth in the Middle East and has attracted new orders recently from Oman and Saudi Arabia. Wärtsilä’s total installed capacity in the Middle East is approximately 7000 MW.
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# twenews GVK’s 330 MW hydropower plant begins operation The first Unit of GVK’s 330 MW Alaknanda Hydro Power Company Ltd.’s project at Shrinagar in Uttarakhand, was successfully synchronized with the Northern Grid on 10th April 2015, and tested to generate the full rated capacity of 82.5 MW. Post that, some operational tests were also successfully conducted. A thorough inspection of the machine shall now be carried out before starting commercial production from 13th April 2015. The remaining three units will be sequentially synchronized by
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the end of June, and full-fledged operations will commence soon after. Speaking on the occasion, Dr. GVK Reddy, founder Chairman and Managing Director, GVK, said: “The successful synchronization is a major milestone for this challenging project which has experienced so many trials and tribulations. I would like to congratulate all our project staff at GVK’s Alaknanda Hydro Power Company, who were involved in the execution, construction and commissioning of this major hydro power project.” GVK’s 330 MW hydropower
project consists of four units of 82.5 MW each, and is situated on the river Alaknanda at Shrinagar in Tehri / Pauri Garhwal, Uttarakhand. The unique feature of this project is that it has a 90 m high dam (from the deepest foundation level). Besides gainful employment to locals, the project will provide clean energy through the Northern Grid. A Power Purchase Agreement (PPA) has been signed with the state of Uttar Pradesh, and 12% output will be given free to the state of Uttarakhand.
NEWS
BP agrees £324 million sale of CATS business BP today announced it has agreed to sell its equity in the Central Area Transmission System (CATS) business in the UK North Sea to Antin Infrastructure Partners for £324 million ($486 million). BP is currently the operator of CATS. The agreement comprises a payment on completion of £302 million ($453 million) and a deferred amount of £22 million ($33 million), subject to certain post-closing adjustments. Trevor Garlick, Regional President BP North Sea said: “The North Sea is an important region for BP. Our strategy here is to focus our resources
and investment to create an efficient, sustainable and competitive business which will contribute to UK energy security for many years to come. Key elements of this are the completion of our major projects in the central North Sea and Shetland area, and continued management of our portfolio. “CATS has been a great business for BP but, aligned to the recommendations of the Wood Review, we believe securing this new owner will ensure a better long-term future for this key piece of North Sea infrastructure. Supporting staff and ensuring
continued safe operations will be our priority as we go through this transition period.” The sale of CATS will be as a fully operational business, with staff expected to transfer to the new employer with contractual terms and conditions protected under UK TUPE regulations. Subject to the receipt of regulatory and other third party approvals, BP aims to complete the sale and transfer of operatorship before the end of 2015. The sale does not impact BP’s rights to capacity in CATS.
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# twenews Eni: record level of production achieved in the Western Desert of Egypt
Eni reached a record level of production of 70 thousand barrels of oil per day in the Western Desert of Egypt, doubling its level of production in the area in just three years. Such result was achieved mainly thanks to the Melehia development lease, located 290 kilometers west of Alexandria. In Melehia, Eni’s production has reached 54 thousand barrels of oil per day following the exploration successes obtained in the deep plays of Lower Cretaceous and Jurassic age, where the company is currently carrying out an intensive exploration, appraisal, workover
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and production optimization activity. The remaining part of the production in the area comes from other three development leases (Ras Qattara, Raml and West Razzak). In January this year, Eni signed a new Concession Agreement to operate in the Melehia Southwest block, where exploration activities on the same deep plays will start within the year. Eni deems this concession a key element for the sustainability of future production growth in the Egyptian Western Desert. Eni, through its subsidiary
International Egyptian Oil Company (IEOC), holds a 76% stake in Melehia’s licence. The other partner is Lukoil with a 24% stake. The operator is Agiba, which is equally held by IEOC and the Egyptian General Petroleum Corporation (EGPC). Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC, and is the market leader with an equity production in 2014 of approximately 210 thousand barrels of oil equivalent per day.
NEWS
Kyocera starts up floating mega solar plant Kyocera Corporation, President: Goro Yamaguchi and Century Tokyo Leasing Corporation, President: Shunichi Asada announced today that Kyocera TCL Solar LLC, a joint venture
established by the two companies, has completed construction of two floating mega-solar power plants at Nishihira Pond and Higashihira Pond in Kato City, Hyogo Prefecture, Japan.
The plants, inaugurated in late March, will generate an estimated 3,300 megawatt hours (MWh) per year in total– enough electricity to power approximately 920 typical households.
Enel begins work on new South African wind farm
Enel Green Power (“EGP”) has begun construction of Nojoli wind farm, which is located in the Easter n Cape Province in South Africa. The new wind farm will have a total installed capacity of 88 MW and once fully operational it will be able to generate more than 275 GWh per year, equivalent to the annual consumption needs of around 86,000 South African households, therefore avoiding the emission of more than
251,000 tonnes of CO2 into the atmosphere each year. The energy generated by the new wind farm will be sold to the South African utility Eskom through the 20-year power supply agreement that EGP was awarded with in October 2013 as part of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) promoted by the South African Gover nment. In the same tender, in
addition to the Nojoli wind project, Enel Green Power was also awarded the right to build the Gibson Bay wind farm (111 MW) and four photovoltaic projects for a total of 314 MW, namely Aurora, Paleisheweul and Pulida (all 82.5 MW) as well as Tom Burke (66 MW). Also in South Africa, Enel Green Power, which already manages the 10 MW Upington solar facility, has just been awarded a further 425 MW of wind power projects in the fourth phase of REIPPPP.
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# twenews
RWE Middle East awarded new major consulting contracts RWE is further developing and strengthening its engagement in the MENA region. RWE Middle East, a joint venture between the Dubai Electricity and Water Authority (DEWA) and RWE Consulting GmbH and RWE Technology GmbH founded in autumn 2012, has been awarded major consulting contracts in the region in the recent few weeks. First, the company announced during the course of the Annual General Meeting (AGM) of RWE Group its successful bid for Dubai integrated energy strategy. RWE Middle East is advising the government of Dubai (Dubai Supreme Council of Energy) on their Integrated Energy Strategy 2030. The team will advise Dubai on all major questions
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of their Energy Strategy – from determining the ideal supply mix to demand side efficiency and energy innovation. RWE won this project after a very competitive selection process against all major strategy consultancies. The joint venture already advises a leading energy company in Abu Dhabi on the development of their Smart Meter Strategy. RWE’s huge experience in Smart Meter and Smart Grid paired with the strategic competence lead to convincing the client that RWE was the best choice out of a competitive selection process. In the course of today’s AGM, Peter Terium, CEO of RWE AG, explained the importance of these initiatives: “There are
interesting regions that have not previously been the focus of our business activities, but still offer opportunities. We also want to increase our level of activity in the Arabian Peninsula and in North Africa and offer the countries of the Arabian Peninsula comprehensive consulting services. Our latest successes in particular the “Dubai integrated energy strategy project” were only possible due to the fact that our experts were able to win out in an intensive selection procedure against prominent global consulting companies. This shows that our expertise in energy matters is sought after. We enjoy a good reputation in the region.”
NEWS
Azuri Technology to install 100,000 solar systems to off-grid homes in Ghana Azuri Technologies announced at the Solar & Off-Grid Renewables West Africa Event its partnership with energy company Oasis African Resources to bring affordable, pay-as-you-go solar power to 100,000 off-grid homes in Ghana in the next two years. The project is supported by the Ministry of Power, and aligns with the Government’s current efforts to bring reliable, renewable power to Ghana at scale. The deployment plan will focus on cocoa farming regions, and be distributed in association with agricultural co-operatives and women-based organisations. The large-scale roll-out builds on previous pilot deployments in Ghana, which have proven the success of this solution for rural Ghanaians over the last 18 months. While the energy crisis in Ghana has been intensifying, discussion has mainly focused on the business and urban residential populations, who are now experiencing rolling blackouts of 24 hours or more. However, these recent debates obscure the pre-existing challenges for those Ghanaians, predominantly in rural regions, living
permanently off the grid. Data available indicates that about 80% of Ghana’s population have access to the grid, however there are about 5 million people in rural Ghana most of whom are not likely to be connected in the foreseeable future. Azuri Technologies’ internationally acclaimed home solar systems bring top class European design with high quality components to provide enough clean and reliable power for daily home lighting and mobile phone charging. The project will deploy Azuri’s flagship product Quad, and include 4 high quality LED lamps, mobile phone charging and a Radio/MP3 player. Crucially, instead of an upfront cost, the system can be purchased through a Pay-As-You-Go model. This model allows you to use the systems while paying for it by the regular purchase of top-up credit, typically costing less than the lighting costs and phone charging fees being replaced. The Minister for Power, Dr. Kwabena Donkor commented: “This initiative supports the Government’s commitment to fully incorporate renewable energy into our energy supply mix, as outlined
by the President during his State of the Nation’s Address. The Ministry of Power is pleased to support this project for rural households, and will also explore other avenues with Oasis, Azuri and other renewable energy partners to establish solar as a significant and reliable power source for micro enterprises in both rural and urban communities.” Mr Isaac Kodom, CEO of Oasis added: “Oasis has a vision to become a leading private power solutions company that delivers outstanding, innovative products to meet the demands of today’s energy provision. We are committed to developing long-term relationships with strategic partners in the energy sector – we are very excited by Azuri’s innovation and the Government’s commitment towards this initiative.” Simon Bransfield-Garth, CEO of Azuri, concluded: “Azuri is delighted to be helping bring high quality domestic solar power to rural Ghana. Azuri’s Quad solar home system brings affordable power to rural households and provides the starting point for families to embrace clean renewable power and ultimately to access power for economic gain.”
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Entrepreneur and environmentalist Editorial: Ajuanne Payne
Enterprising Woman of the Year 2015, Sandra Sassow, is the CEO and co-founder of SEaB Energy Ltd - a multi-award-winning developer and manufacturer of patented micro power plants which use anaerobic digestion technology to convert organic waste into energy. In just six years her company has gained unprecedented international recognition and won award after award in its pursuit of clean technology solutions…
After identifying a need for a greater choice of distributed power generation options in the renewables sector, SEaB Energy was founded by Sandra Sassow and her husband Nick over 6 years ago. Today the specialist company is gaining increasing recognition as one of the most innovative and fastest growing Cleantech companies in Britain. After recognising early in her career that working in a big corporate setting wasn’t for her, Sassow realised she wanted to work with fastpaced smaller companies in a profession that was rewarding. W ith a father who is an inventor and, by her own admission, a large entrepreneurial family, Sassow set her mind on a career that would satisfy her entrepreneurial spirit while also giving something back. Based at the University
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of Southampton Science Park in Chilworth, SEaB has developed patented products, Muckbuster® and Flexibuster™ – compact, easy to install, tur nkey Anaerobic Digestion (AD) systems in shipping containers. The tur nkey, waste to energy systems, have the multifaceted benefits of producing gas, heat, electricity, fertilizer and mulch, while also being environmentally friendly and generating revenues in parts of infrastructure where income is usually lost. AD, the process by which microorganisms break down biodegradable material in the absence of oxygen, has the dual application of managing waste and also producing fuel; insoluble organic materials are broken down to produce desirable by-products, such as biomethane. This organic
reaction contributes to reductions in harmful emissions and waste put in to landfill, while also recycling the nutrientrich digestate by-product as fertilizer. When explaining her vision for the future, Sassow is quoted as saying that “Our ultimate goal is to create a source of energy where we can bring electrification, sewage treatment and clean water to isolated areas all over the world.” Sassow has seen increased appeal in developing countries for her systems, where nations and users in remote locations need to tackle growing waste issues and reduce their reliance on imported fuel. She explains that: “As first to market with a mobile solution, we have attracted worldwide attention. There is more interest in clean tech investment as fuel costs
Entrepreneur
face ongoing rises. We need to decentralise how we manage waste conversion, to offset pollution, and tur n it into energy. It has applications for the World Health Organisation, disaster recovery and so many sectors.” SEaB has already gained unprecedented inter national recognition – selected from over 500 applicants, they are backed by NASA initiative ‘LAUNCH: Beyond Waste’ as a provider of a global technology that could help address climate change. In 2013 SEaB won the US Defence Energy Technology Challenge (DETC) that promotes ‘innovative energy solutions to increase the safety of its troops, lower energy costs and reduce reliance on foreign energy supplies.’ In this instance, DETC were particularly impressed with the potential of the technology;
the unit is easy to move and set up quickly and can be operational within a matter of hours of installation. Portable toilets can also be attached to feed in to the system – taking care of both sanitation and power demands. Going from strength to strength in such a short space of time, the company and its CEO have won an impressive 13 awards, with Sandra herself being awarded with, amongst others, the ‘Enterprising Women of the Year Award’ by Enterprising Women magazine in 2015 and ‘Eco Entrepreneur of the Year 2013’ at the Great British Entrepreneur Awards. The portable, easy to install and cost effective nature of the AD systems produced by Sassow’s company have the potential to tick boxes for consumers with a variety of
different needs. They are an example of innovative thinking and a step towards enabling individual organisations to have more control over how their waste is managed – without it impacting negatively on revenues. Aside from the obvious economic advantages, the potential quality of life applications are extremely promising. Commenting further on this, Sassow explains that “Distributed power generation is changing the balance of power by allowing everyone to create their own source of energy. We are game changers in the circular economy, to make sure that everyone has access to sustainable energy in remote areas. Good people can grow and nurture themselves into challenging roles - you just need to create the space for them.”
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Wireless power transmission Editorial: Ajuanne Payne
In March of this year, Mitsubishi Heavy Industries, in conjunction with Japan’s space agency, successfully completed ground tests for wireless power transmission over a distance of 500 meters. A huge milestone for the company and for this burgeoning industry sector, Japan’s vision of solar power transmitted from outer space by 2030 seems within grasp…
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Innovation Here at Total World Energy, we have continually focused on the evolving innovations of solar technology – covering applications ranging from Solar Impulse, the solar aeroplane featured in our April issue, now breaking records in its round-theworld flight, to the SolaRoad in our January issue – a public causeway that generates electricity and has the potential to create sustainable road systems. In this issue we look at a technology that will facilitate the transmission of solar power from space – a feat that sounds completely fanciful but is, in fact, very close to becoming viable. On March 12th this year, Mitsubishi Heavy Industries (MHI) conducted ground demonstration testing of its wireless power transmission (WPT) technology. With the successful completion of the test at the company’s Kobe facility, it has verified the viability of long-distance WPT and completed the transmission of 10kW of power from a transmitting unit by microwave. The potential applications of wireless power transmission (WPT) once fully realised, are endless. A technology that would seem more at home in a science fiction novel, the idea was first envisioned by Nikola Tesla in 1899 and is now, over a century later, being fully developed. MHI has taken significant steps towards turning the idea into a working reality - one part of a much broader drive by the company to create innovations and develop technology for the betterment of humankind. By their own admission they are on a ‘quest to contribute to social progress’ in a range of different fields – and environmentally clean energy is one vital cornerstone of this ideal. Led by the Japan Aerospace Exploration Agency (JAXA), solar power satellites are an area of active research and development in the
country. It has a 25 year ‘technology development roadmap’ that culminates in a one gigawatt solar power satellite that can send power back to earth by the 2030’s. The space solar power system (SSPS) concept first emerged in the US in the 1960s, with Japan beginning on their version in around 2009. MHI, in partnership with the space agency, expects SSPS’s to be the power generation systems of the future. For this ambition to be realised, Japan will need to deploy a solar collector weighing over 10,000 tons and measuring several km across. Part of the reason why Japan is making these important investments into WPT and SSPS technologies, aside from the country’s long history of being at the forefront of technological innovations and the evident environmental benefits, is that it is not a very resource-rich country and currently has to import significant amounts of fossil fuel. Technology such as this could significantly reduce this reliance and is also much more reliable than earth-bound solar power – an SSPS system would not encounter reduced efficiency due to varying weather patterns. In the tests, the reception of power 500m away at the receiver unit, was heralded by the illumination of LED lights, using part of power transmitted. The volume of power transmitted and distance travelled signify new milestones for Japan. The test was also successful in confirming that the control systems used to regulate the direction of the microwave beam worked well. A spokesperson from JAXA said of the test that “this was the first time anyone has managed to send a high output of nearly 2kW of electricity power via microwaves to a small target, using a delicate directivity control device.”
The method tested by MHI is a farfield technique – otherwise known as ‘power beaming’. A transmitter device connected to a power source beams power by microwave to a receiver device where it is converted back in to electricity. The concept was first thought of by the famous Nikola Tesla in 1899, with the first significant research being done following World War II after the development of cavity magnetrons – a device that can emit high-power microwaves. Many years later and WPT is a wellproven technique, with experiments in the tens of kilowatts successfully performed at Goldstone, California in 1975 and Grand Bassin on Reunion Island in 1997. One of the limitations of transmitting power over such long distances is that, using the method of microwave transmission, in order to ensure accuracy and efficiency, extremely large transmitter and receiver areas are necessary – explaining JAXA’s plans for a 10,000 ton solar satellite to beam the power generated. Taking human safe power density in to consideration, a 10km diameter area is needed to safely receive and convert roughly 750 MW of power – equivalent to the output of a modern power station. MHI see the benefits of WPT, once perfected, as wide-ranging. It could be used to transmit power to isolated areas in the wake of natural disaster, or in other hard-to reach areas where it is less practical to use cable connections, for example: the power from offshore wind farms. In as early as the next ten years MHI see the technology being utilised for applications such as charging electric vehicles, but with such incredible innovations being made in the field of renewable energy, it really does seem as if, technologically, anything is possible in the future of power generation
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Ground breaking wind energy generation Editorial: Tim Hands
© DONG energy
The Westermost Rough Offshore Wind Farm is under construction at a site 8 kilometres north east of Withernsea in the North Sea, England. An £800 million project, the wind farm will span 35 km2 and boast a generation capacity approaching 210 MW, aiming to power in the region of 200,000 homes each year. O ff s h o re c o n s t r u c t i o n o f We s t e r m o s t R o u g h b e g a n in February 2014 as the i n s t a l l a t i o n o f t h e s i t e ’s foundations was set in m o t i o n , w i t h t h e p ro j e c t re p re s e n t i n g a t o t a l i n v e s t m e n t o f a p p ro x i m a t e l y £ 8 0 0 m i l l i o n ($1.37bn). By the time of i t s c o m p l e t i o n , m o re t h a n £10 million will also have b e e n i n v e s t e d i n G r i m s b y, t o
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p ro v i d e t h e c o n s t r u c t i o n b a s e and permanent operations facilities on the Royal Dock, as well as a purpose-built o ff i c e , w a re h o u s i n g s i t e a n d pontoons. While the wind farm is being developed by D ong E n e r g y, t h ro u g h i t s wholly owned subsidiary We s t e r m o s t R o u g h , t h e s i t e w a s i n f a c t o r i g i n a l l y a w a rd e d t o To t a l E n e r g i e S A , t h e F re n c h
multinational integrated oil and g a s c o m p a n y i n 2 0 0 3 . To t a l t h e n re n o u n c e d , h o w e v e r, a f t e r t h e s c o p i n g p ro c e s s i n February 2007, following its decision not to pursue any o ff s h o re w i n d d e v e l o p m e n t in UK waters, which saw it placed into the hands of DONG E n e r g y. A m o n g t h e l e a d i n g o ff s h o re wind developers in the world,
Westermost Rough Offshore Wind Farm b o a s t i n g m o re t h a n 2 0 y e a r s ’ experience in the wind power i n d u s t r y, D O N G E n e r g y w a s a w a rd e d t h e p ro j e c t a t t h i s j u n c t u re . T h e c o m p a n y h a s continually displayed its c o m m i t m e n t t o t h e p ro v i s i o n o f re n e w a b l e e n e r g y g e n e r a t i o n , with a total investment to date of £3 billion in the field. With DONG Energy having b e e n a w a rd e d t h e l e a s e f o r t h e w i n d f a r m ’s d e v e l o p m e n t in 2007, consent was given by 2011 for a development consisting of up to 80 turbines, capable of up to 245 MW power and with a turbine tip height limit of 172m ( 5 6 4 f t ) . U n t i l M a rc h 2 0 1 4 , t h e p re s i d i n g d e v e l o p m e n t c o m p a n y We s t e r m o s t R o u g h was a wholly owned subsidiary o f D O N G E n e r g y, s i n c e w h i c h time a 50% stake has been owned in equal parts by the
G re e n I n v e s t m e n t B a n k a n d by the Marubeni Corporation, a sale worth a total of £240 million. As part of the sale, these two buyers committed to investing £500 million in the construction of the wind f a r m , w i t h D O N G t o p ro v i d e operations and maintenance at the site. The announcement then c a m e f ro m D O N G E n e r g y a t the end of January 2013 that it would be taking on the c o n s t r u c t i o n o f We s t e r m o s t R o u g h o ff t h e H o l d n e r n e s s coast, comprising of 35 Siemens 6MW turbines with a t o t a l c a p a c i t y o f 2 1 0 M W. Benj Sykes, DONG Energy Wind Power UK Country M a n a g e r, s a i d o f t h i s pioneering development with an operational life of 20 years: “ We a re v e r y e x c i t e d t o g o a h e a d w i t h o u r n e x t o ff s h o re
w i n d f a r m a t We s t e r m o s t R o u g h . T h i s i s t h e f i r s t p ro j e c t t h a t w e h a v e b ro u g h t f o r w a rd to construction in the NorthE a s t a n d w e a re l o o k i n g f o r w a rd t o w o r k i n g i n t h e a re a . ” S y k e s c o n t i n u e d : “ We a re excited about the potential of this new technology and deploying the 6MW turbine on t h i s s c a l e . We a re c o m m i t t e d t o re d u c i n g t h e c o s t o f e n e r g y t h ro u g h t h e d e p l o y m e n t o f n e w t e c h n o l o g i e s , a n d We s t e r m o s t R o u g h w i l l p ro v i d e a t a n g i b l e e x a m p l e o f h o w w e a re d o i n g just that.” DONG Energy e s t i m a t e s t h a t t h e We s t e r m o s t Rough site will eventually s u p p l y t h e re q u i s i t e e n e r g y t o power 210,000 homes, and will thus make a significant contribution to the UK g o v e r n m e n t ’s g o a l o f i n s t a l l i n g 3 3 G W o f w i n d p ro d u c t i o n
© DONG energy
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© DONG energy
b e f o re 2 0 2 0 . O f t h e p ro j e c t , H e n r i k Poulson, chief executive of D ong E n e r g y, s a i d : “ T h e size and location of the p ro j e c t i s v e r y w e l l s u i t e d a s t h e f i r s t l a r g e s c a l e p ro j e c t with the new Siemens 6 MW t u r b i n e . T h e U K o ff s h o re w i n d market is the biggest in the world.” Acting as one of its m o s t n o t a b l e f e a t u re s , t h e We s t e r m o s t R o u g h o ff s h o re w i n d f a r m w i l l f e a t u re 3 5 S i e m e n s S W T- 6 . 0 - 1 5 4 w i n d turbines, equipped with the w o r l d ’s l o n g e s t ro t o r b l a d e s . I t i s t h e f i r s t o ff s h o re w i n d f a r m to use these next generation t u r b i n e s o n a c o m m e rc i a l basis, which boast a swept a re a o f 1 8 , 6 0 0 m ² a n d re d e f i n e t h e s t a n d a rd s f o r l e a n n e s s ,
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ro b u s t n e s s a n d l i f e c y c l e p ro f i t a b i l i t y w i t h i n t h e w i n d i n d u s t r y. W i t h i t s o u t p u t o f s i x m e g a w a t t s a n d a ro t o r diameter of 154 meters, this is a turbine designed for the m o s t c h a l l e n g i n g o ff s h o re s i t e s b o t h i n E u ro p e a n d e l s e w h e re a c ro s s t h e g l o b e . Building conceptually upon t h e S W T- 3 . 0 - 1 0 1 , S i e m e n s ’ first gearless machine, the d i re c t d r i v e m a c h i n e s o ff e r t h e most compact and lightweight excitation means for electrical m a c h i n e s . A d d i t i o n a l l y, t h e S W T- 6 . 0 i s d e s i g n e d t o o ff e r t h e v e r y s a f e s t o f w o r k i n g e n v i ro n m e n t s , w i t h a h e l i c o p t e r- h o i s t i n g p l a t f o r m i n t e g r a t e d i n t h e n a c e l l e re a r allowing easy and safe access for service technicians and a
nacelle which is particularly spacious, and gives technicians easy access to key components.
LAYING THE FOUNDATIONS With the first of the turbines’ foundations having been i n s t a l l e d i n F e b r u a r y l a s t y e a r, t h e re s t f o l l o w e d q u i c k l y o v e r the next months, thanks to the work of the dedicated o ff s h o re w i n d i n s t a l l a t i o n vessel, Innovation. Each foundation consists of two key elements, a monopile and a transition piece. The piling stage of the installation tends to last between two and four hours, a time which c a n r i s e s i g n i f i c a n t l y i f g ro u n d c o n d i t i o n s p ro v e t r i c k y. This is also dependent on
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Proudly playing our part in the Westermost Rough Windfarm Round 3 ready, our fleet of crew transfer vessels is available for charter. We have been safely transferring personnel and equipment offshore since 2011
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the availability of a suitable window of weather and s e a c o n d i t i o n s , re s t r i c t i n g o p e r a t i o n s c o n s i d e r a b l y. As main contractor for the foundations, GeoSea has been re s p o n s i b l e f o r t h e t r a n s p o r t and installation. This saw the Innovation loaded in Aalborg with 5 sets of monopiles and transition pieces, which it t h e n t r a n s p o r t e d a c ro s s t h e North Sea to be installed i m m e d i a t e l y a t t h e o ff s h o re
© DONG energy
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site, a distance of 500 nautical miles. It is a rather laborious p ro c e s s , u s u a l l y w i t h a w e e k ’s gap between each batch of foundations, as the vessel has to leave the site to collect t h e n e w m a t e r i a l s . H o w e v e r, the use of a new and highly sophisticated piling frame, a s w e l l a s i m p ro v e d j a c k i n g p ro c e d u re s d e v e l o p e d b y G e o S e a ’s i n - h o u s e e n g i n e e r i n g department, allows the Innovation to work in higher
sea states and thus enable d e c re a s e d c y c l e t i m e s . T h e w i n d f a r m ’s t u r b i n e s have contributed to some of the major milestones in t h e t i m e l i n e o f t h i s p ro j e c t , notably in the successful e re c t i o n o f t h e f i r s t i n A u g u s t l a s t y e a r. D u n c a n C l a r k , We s t e r m o s t R o u g h p ro g r a m m e d i re c t o r f o r D o n g , d e s c r i b e d the significance of the event to t h e s i t e ’s o v e r a l l d e v e l o p m e n t : “This is a major landmark in
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1. Heavy Lift Vessel ‘Innovation’ installing XL Monopiles and Transition Pieces at the Westermost Rough project (UK). 2. The Jack-Up ‘Neptune’ installing Monopiles and Transition pieces on the Northwind project (BE). 3. ‘Neptune’ installing Wind Turbines at the Thornton Bank project (BE).
• • • • • • • • • •
Drilling and piling of large diameter monopiles Installation of transition pieces Jacket installation (pre-piling / post-piling) Grouting activities Wind turbine erection Installation works with Jack-Up platforms Foundation and wind turbine logistics EPCI contracts Accommodation units Directional drilling
GeoSea nv Member of the DEME Group Haven 1025 - Scheldedijk 30 . B-2070 Zwijndrecht, Belgium T +32 3 250 53 12 . F +32 3 250 55 41 info.geosea@deme-group.com . www.deme-group.com/geosea
DEME: creating land for the future PAGE 23
the construction phase of this p ro j e c t a n d i t s a c h i e v e m e n t i s a g re a t c re d i t t o t h e D o n g Energy team and our supply chain partners,” a sentiment echoed by Michael Hannibal, c h i e f e x e c u t i v e o f o ff s h o re f o r S i e m e n s W i n d P o w e r. “Only a few days after our D6 wind turbine obtained its final certification it is in place f o r c o m m e rc i a l o p e r a t i o n . We a re v e r y p ro u d t o a c h i e v e this milestone on the way t o e n h a n c i n g e ff i c i e n c y a n d l o w e r i n g t h e c o s t o f o ff s h o re wind energy with our innovative d i re c t d r i v e t e c h n o l o g y. ” Following somewhat rapidly w a s t h e i n s t a l l a t i o n o p e r a t i o n ’s conclusion, which came at the e n d o f M a rc h t h i s y e a r. T h i s e n t a i l e d t h e l a s t o f t h e f a r m ’s
© DONG energy
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35 installations being lifted into position by the specialist jacku p v e s s e l S e a C h a l l e n g e r, w i t h Duncan Clark again describing the importance of seeing this i n t e g r a l p a r t o f t h e p ro j e c t t h ro u g h t o c o m p l e t i o n . “This is a significant m i l e s t o n e f o r t h e p ro j e c t i n which all the partners involved a re b re a k i n g n e w g ro u n d f o r t h e i n d u s t r y b y o ff s h o re deployment of 6MW turbines. It is also an important step in re d u c i n g t h e c o s t o f e n e r g y f ro m o ff s h o re w i n d . O v e r 9 0 0 people have been employed o n t h e o ff s h o re c o n s t r u c t i o n p ro g r a m m e , a n d re a c h i n g installation of the final turbine with high levels of safety p e r f o r m a n c e i s a c re d i t t o t h e i r g re a t t e a m w o r k . O u r f o c u s i s
n o w f u l l y d i re c t e d t o s a f e l y finishing the commissioning w o r k o n t h e re s t o f t h e turbines, ensuring that they a re a l l d e l i v e r i n g c l e a n , g re e n energy to the UK grid this s u m m e r. ”
FIRST POWER DELIVERED In the midst of the allimportant business of ensuring c o r re c t a n d t i m e l y i n s t a l l a t i o n of all turbines at the site, DONG Energy was able to re p o r t i n S e p t e m b e r l a s t y e a r the delivery of first power to the grid, just weeks after the first turbine had been put in p l a c e . “ T h e p ro c e s s h a s g o n e e x t re m e l y w e l l , ” s a i d S a m H a l l , lead commissioning manager f o r We s t e r m o s t R o u g h . “ T h e e n e r g i s a t i o n p ro c e s s
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Fugro has been involved in offshore wind since 1997, working with developers on site selection, permitting and consenting through to construction and monitoring phases. We offer consultancy and scoping advice that draws upon our in-house survey experience and apply the skills of some of the world’s pre-eminent ecological, metocean, geophysical and geotechnical survey teams.
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As a special service for our customers in the construction branch, such as STX, we offer our Point-to-Point Construction Service. This service involves: Cutting of pipes to fix length, bevelling & tapering Circumferential welding Production and assembly of attachments like cones, shim plates or ring stiffeners Weld beads End profiling
The production of LSAW pipes for the offshore oil and gas industry is the traditional strength of EEW. With more than 75 years of experience in the steel branch, we are able to fulfill our customers’ highest requirements. Apart from standard steel grades used in conventional jacket constructions, the fabrication of high-strength steels for racks and chords for jack-up rigs or low-temperature steels for the use in arctic environments is our daily business. www.eew-group.com
up to first power has been achieved thanks to a huge e ff o r t f ro m t h e e n t i re o n s h o re s u b s t a t i o n t e a m , t h e o ff s h o re construction site team, our contractors and all of the line organisation who support u s . We e n e r g i s e d a l l t h e w a y t h ro u g h t h e t r a n s m i s s i o n s assets of the wind farm in early August and have been working since on the installation and commissioning of the first batch of turbines. Over the coming weeks the first turbines w i l l b e g e n e r a t i n g c l e a n , g re e n electricity and then supplying it t o t h e U K G r i d w h i c h i s a g re a t m i l e s t o n e t o b e a b l e t o re p o r t . ” Part of what makes the development so valuable is the information collected b y t h e N a t i o n a l C e n t re f o r A t m o s p h e r i c R e s e a rc h ( N C A R ) ,
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“All the partners involved in the project are breaking new ground for the industry by offshore deployment of 6MW turbines”
used to find out the extent of t h e p o t e n t i a l p ro d u c t i v i t y o f a wind farm. Using long term re f e re n c e d a t a , t h e m e a n w i n d s p e e d a t We s t e r m o s t R o u g h has been estimated to be 8.3 m e t re s p e r s e c o n d ( m / s ) , w h i c h puts it into the high category in terms of annual average wind s p e e d s i n t h e U K . To h a r n e s s a l l t h i s p o w e r, N e x a n s w a s a w a rd e d t h e c o n t r a c t t o s u p p l y a n d d e l i v e r t h e 5 3 k i l o m e t re s of medium-voltage submarine cable to the wind farm, transported by Combi lift and t o b e p ro t e c t e d b y Te k m a r. Once generated, the power will be collected from the turbines via this cabling system and transmitted to the offshore substation, whose detailed design was won by Ramboll in 2011. The substation is designed to carry the
Westermost Rough Offshore Wind Farm necessary equipment to complete the high-voltage transmission and distribution, as well as other facilities such as diesel generators, batteries and panels for wind turbine control. Its successful installation marks another significant moment in the wind farm’s construction as a whole, with work now underway to pull in and connect the pre-laid export cable to the substation platform. Duncan Clark described, “a very busy and exciting time for everyone involved in the project, with the successful installation of the export cable, all the monopile foundations and the offshore substation platform.” At the offshore substation, the voltage from the turbines is increased and taken ashore, where the wind farm is connected to the UK national grid at Salt End. Ever at the forefront of the field, DONG Energy is now
“Project BEACon will give us invaluable new knowledge to lower the cost of electricity”
set to install a pioneering radar system at Westermost Rough, to help maximise energy and efficiency returns out at sea. This next step of the project will entail devices producing high-resolution dynamic maps of the wind flow through and around the structures. Nicolai Gayle Nygaard, BEACon technical manager at Dong Energy, said: “The dual-Doppler radars represent the next generation of wind measurement technology. Contrary to standard measurement set-ups, the radars give us the ability to quickly scan the flow field in and around an entire wind farm with unprecedented range and resolution. Project BEACon will give us invaluable new knowledge which can be applied across our entire portfolio to lower the cost of electricity.”
Installation of the offshore Substation In June last year, the installation of the offshore substation was the latest milestone for the Westermost Rough Wind Offshore development. Fabricated in STX France’s St Nazaire shipyard, the offshore substation is positioned within the 35sq km project site, located just off the East Yorkshire coast, it will be linked to the new generation Siemens 6MW turbines via a series of inter-array cables. The offshore substation contains two major sections – the jacket foundation which is fixed to the seabed and the topside which sits on the jacket foundation containing the necessary support systems and electrical equipment. EEW Erndtebrück supplied 1,761 tons of construction pipes for the transformer station and with a diameter of 490mm up to 2,170mm and a wall thickness of 20mm up to 65mm, these were assembled by STX Europe Offshore Energy to form a jacket construction. “Based on its experience and track record, EEW is, for STX, a partner of choice for subcontracting large cylindrical steel structures which are key components for its substations and foundations projects,” STX said in a statement to Total World Energy. The jacket is the foundation of the offshore transformer station - the interface between the energy transmitting facilities. Voltage from the turbines is increased at the substation before the export cable takes the electricity to the mainland - the UK national grid at Salt End, near Hull – generating enough energy to power an estimated 200,000 households and helping with efforts to reduce CO2 emissions in England.
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Breaking records, delivering results Editorial: Ajuanne Payne
© OLT Offshore | Toscana
As the undisputed frontrunner in the maritime industry in the UAE and comprising the largest shipyard in the region, Drydocks World has been providing world-class service to the offshore industry locally and internationally for over four decades. With large contract wins and recordmaking capacity already this year, we take a look at the Middle East giant in this month’s Total World Energy. DryDocks World – formerly known as Dubai Drydocks, was founded in 1983 and incorporates the largest shipyard facility in the Middle East, with four other facilities; one in Singapore and three on Batam Island, Indonesia, under DDW-PaxOcean Asia Pte. Ltd. Offering ship repair and
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conversion, new building, offshore and engineering services, the largest floating crane in the UAE and extensive industry expertise to its large corporate clients, Drydocks World’s Dubai shipyard is one of the most prolific in operation globally. The idea for Dubai Drydocks,
as it was previously known, was conceived over 40 years ago in 1971 by H.H. Sheikh Rashid Bin Saeed-Al Maktoum, the late ruler of Dubai. After a longer period of feasibility studies and construction, the company opened its doors in 1983 and has gone from strength to strength ever since in the field of offshore
Drydocks World maritime infrastructure. Since opening its doors over 3 decades ago, the yard in Dubai has repaired over 7,500 vessels and handles an average of 350 per year – most of them storage vessels and carriers for the oil and gas industry. With specialised LNG handling capabilities and facilities equipped with the specialist machinery and expertise to service the needs of its clients, DryDocks World are the number one in the Middle East and one of the foremost names in the maritime industry.
RECORD BREAKING Along with its world-class facilities, DryDocks World employ highly skilled and dedicated employees with technical expertise spanning all areas of the business – from the design stages to the
engineering, procurement and construction and finally in to the commissioning and delivery stages. It is these employees and the combined knowledge they have built up and are able to offer that is perhaps the biggest contributing factor to the company’s ability to handle the largest, most complex of tasks for its offshore clients. In February of this year, the yard set a new record of nine rigs berthed in the yard simultaneously, only to beat that record a month later by adding three more and bringing the total up to 11. The company attributed this new standard to its Rig Division Team, who worked ‘relentlessly to market the yard facilities, capabilities, safety records, quality and experience of staff specialised in maintaining the
offshore rigs.’ Boasting clients such as Saudi Aramco, Saipem, Shelf Drilling and Aban Offshore, DryDocks’ dedicated rig division caters to the offshore market in the region and has built up a reputation for quality service and high HSE standards.
AN OFFSHORE EXPERT The oil and gas industry has been in a state of flux for the past year, with knock-on effects felt across the globe – for example larger producers are taking a more cautious approach to embarking on expensive projects and are investing more in increased storage options. As the world’s largest oil exporting region, the Middle East has not responded to these pricing pressures by reducing production, in order to retain their leading position in the face of
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these difficulties. In fact, OPEC reported a 14% jump in rig count in March this year to a total of 155 – a record high for the region. Due to the strength of the industry in a region which holds the world’s largest oil reserves, DryDocks World has continued to fill its books and provide a worldclass service to the largest of the clients operating offshore there. DryDocks World has been delivering projects in service of the offshore industry for many years and in Dubai the yard has successfully completed 23 vessel conversion and modification projects since its first major contract for FSO Nkossa1 in 1996.
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“We are indeed keen to take on increasingly challenging projects for the offshore deep sea exploration and production sector”
One of its largest projects – the conversion of FPSO Frade took nearly 13 million manhours of work and three years to complete. In order to facilitate the increasing complexity and scope of its projects, DryDocks World has continuously invested in expanding its capabilities. Two new VLCC berths were added to the shipyard in 2009 and the company invested in modernising its pipe shop facilities in 2010. As a result of these strategic investments, DryDocks World has been able to apply its skills to new areas and won its first FSRU conversion project a few years ago in 2009 for the FSRU Toscana – one of the most
Drydocks World sophisticated conversion projects carried out by the shipyard to date. “This is indeed a tremendous achievement and a testimonial to our technical and project management capabilities that enable us to take on projects of a high level of sophistication and advancement,” commented Khamis Juma Buamim, Chairman of DryDocks World and Maritime World. “We are indeed keen to take on increasingly challenging projects for the offshore deep sea exploration and production sector as we have proven time and again that we have the capacity and capability to implement projects for leaders in the offshore industry in a timely manner, while maintaining high standards in safety and quality.” The scope of the work for the shipyard included all engineering, procurement and construction, pre-commissioning and assistance for final commissioning, with DryDocks being involved right up until the vessel is ready for transportation to site.
quality service and its dedicated commitment to high standards of safety. Aside from its more recent move into FRSU conversion with the Toscana project, DryDocks World has completed a total of ten FPSO conversions of significantly differing sizes since 1996. With major global engineering, procurement, installation and commissioning (EPIC) contractors like Saipem, SBM and Fred Olsen numbering among its regular clients, Drydocks World has played a pivotal role in securing its clients’ activities in the region.
SHIP REPAIR AND SERVICE Initially conceived to provide repair services to oil tankers and vessels working in the Gulf region, DryDocks World, Dubai is still focused on this area of its services today. As the biggest contributor to company profits, DryDocks’ ship repair division is still the core business of the yard, providing services to all manner of offshore vessels. Earlier this year, DryDocks World serviced one of the largest ULCC’s in the world – the Overseas Laura Lynn. As one of four of the largest super tankers in the world, repair work to Laura Lynn is a prestigious
SPECIALISED VESSEL CONVERSION With its main focus being tanker to FSO and FPSO conversion, DryDocks World, Dubai is rapidly establishing itself as a leader in the vessel conversion market. The company has been involved in this field for over 10 years, with work ranging anywhere between dejumboising single hulled to double hulled tankers, cable layers to bulk carriers and diver support vessels. The company attributes its success in the field of vessel conversion to exceptional project management, reliable, timely and
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contract for DryDocks and one of its more significant projects so far this year. The tanker weighs just over 440,000 tonnes and has a total crude oil storage capacity of 3 million barrels. Project work encompassed boiler cleaning, main engine overhaul, cargo and ballast overhaul, pipe renewal and cooler and heaters overhaul. This is the second visit to the Drydocks facility for this vessel, the first being in 2008, and the Dubai yard is one of the few globally who have the capacity for vessels of this size. Previously the yard docked the world’s largest ship, the Knock Nevis, a number of times before it was finally converted to an FSO there.
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“We have proven time and again that we have the capacity and capability to implement projects for leaders in the offshore industry”
In the past three decades, the Dubai yard has dry-docked, repaired and successfully refurbished over 100 offshore platform vessels and has made a name for itself specialising in repair work for platform vessels, drilling rigs and jack-up rigs.
A NEW PROJECT WIN DryDocks World, Dubai won an important project in the first quarter of this year to fabricate components for the Johan Sverdrup Riser Platform Jacket. The contract was awarded by Kvaerner, on behalf of end-user Statoil for the North Sea platform and is a testament to the company’s international reach and world-class service. In order to fulfill this contract,
Drydocks World
DryDocks World will carry out the fabrication of pile clusters and floatation tanks for the Johan Sverdrup Riser platform jacket. The tanks will be used for launching and installing the jackets on site and the pile clusters will make up the base of the jacket on which the structure is piled. In order to complete the 7,000 ton project to all specifications, DryDocks World are fabricating to NORSOK safety and quality standards, utilizing the expert skills of Drydocks’ staff. Commenting further on the new contract, DryDocks World and Maritime World Chairman, Khamis Juma Buamim said, “This contract confirms Drydocks World’s position as one of the
industry’s leading suppliers of platform substructures. We look forward to solidifying our past prosperous relations with our client and plan to continue providing optimal services to meet all production targets. “Drydocks World has delivered numerous world-first mega projects, demonstrating our capabilities and commitment to innovation. “Our operational excellence program incorporates an extensive business management strategy with built-in efficiency, on-time delivery and cost-effective measures that ensure quality products of the highest standards in safety and environmental sustainability, giving Drydocks World excellent credentials in the
maritime service sector.” Drydocks World has been providing services to the maritime industry for four decades and has firmly positioned itself as number one for the Gulf region, and a frontrunner globally. The company has established a reputation for quality and expertise that has ensured its continued service to global oil majors and made it a pillar of the large oil and gas industry in the Middle East. In these somewhat challenging times for companies within the oil and gas sector, Drydocks World has forged strongly ahead, showing itself to be the resilient, reliable player the offshore sector needs
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4.5 million tonnes of success Editorial: Ajuanne Payne
UAE petrochemicals giant and biggest producer in Abu Dhabi, Borouge, has been leading the polyolefin market in the region for over a decade. After recently completing its Borouge 3 expansion project, the company now owns and operates the world’s largest integrated single-site polyolefins plant and is all set for further growth and expansion in the years to come. Borouge, founded in 1998, is a leading provider of advanced solutions in the fields of polyolefins, base chemicals and plastics. The company was founded as a joint venture by two majors in the global oil and chemicals industries – the Abu Dhabi National Oil Company (ADNOC) and Borealis. Still owned by Gulf oil and gas
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company, ADNOC and Austrian chemical and plastics solutions provider, Borealis - Borouge is a seamless amalgamation of the expertise of the two and is ground-breaking in its field in the region, firmly positioned as an industry leader for plastics innovation. Borouge is based in the United Arab Emirates with a head office
there and its marketing and sales office located in Singapore – positioning it to service its clients in the Middle East and South East Asia. Employing more than 3,000 people and with customers in 50 countries across the Middle East, Asia and Africa, Borouge has seen significant growth since its inception just over 15 years ago The company has built on
Borouge its Borstar® and Borlink™ technologies over the years to where they are able to offer comprehensive plastics solutions for infrastructure, automotive and packaging applications. Borouge has plans to expand its commercial and logistics network in Asia and the Middle East and relating to its company mission of ‘Value Creation Through Innovation’, is investing in its innovation centre in Abu Dhabi and research and development application centre in Shanghai. With further growth on the horizon, the company can be comfortably assured that they will continue to be able to offer reliable and quality service to their global clients.
MANUFACTURING AND PRODUCTION With expansions planned and in action and geographical growth
continuing for the company, Borouge’s operations in Abu Dhabi are still central to their business. Borouge invested US$1.2 billion to build their facility in Ruwais, 250 km west of Abu Dhabi City the first petrochemical production plant in the Middle East. Equipped with the proprietary Borstar® technology from Borealis, at first the plant had a total manufacturing capacity of 450,000 tonnes per year (t/y). In 2005, the facility encompassed an ethane cracker unit (EU1) built by Bechtel and Linde, and two Borstar® bimodal polyethylene units built by Tecnimont (PE1/PE2) – both units with a maximum production capacity of 300,000 tonnes of bimodal polyethylene. The annual 450,000 t/y production capacity was tripled in 2010 to 2 million t/y in the
Borouge 2 expansion. Investing a staggering US$5 billion in the developments, Borouge upgraded its facilities – installing an additional ethane cracker unit, third polyethylene unit, an olefins conversion unit (OCU) and two new polypropylene units, with the new polypropylene units enabling the company to expand into that area of production. The Borouge 2 development greatly enhanced the company’s capabilities and is the precursor to the company’s more recent development. In order to meet demand and remain the leading player in the region, a further 4.5 million ton Borouge 3 development was planned in 2009 and scheduled for 2014, resulting in Borouge and Borealis having a combined annual production capacity of approximately 8 million t/y of polyethylene and polypropylene.
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system to Borouge-3 LDPE plant in Abu Dhabi.
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THE BOROUGE 3 PROJECT Costing US$1.86 billion, the Borouge 3 project is a further expansion of the company’s petrochemical plant in Ruwais and includes installation of a third ethane cracker unit, built by the Linde Group and producing 1.5 million t/y of ethylene. Two further Borstar® polyethylene units were installed, producing 1.08 million t/y, two polypropylene units producing 960,000 t/y and a low density polyethylene unit (LDPE), capable of producing 350,000 t/y and built by a joint venture between Samsung and Tecnimont. The mega facility at Ruwais boosts total production capacity by a huge 2.5 million t/y to a total of 4.5 million t/y and is a continuation of strong technical partnerships with other major companies which the joint venture has fostered over the years. Tecnimont, who was
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commissioned to build the polyethylene and polypropylene units, has worked with Borouge repeatedly almost since inception and has been involved in all three stages of construction and expansion in the Ruwais plant’s history – an example of just one of the long standing supplier relationships the company has built up. Borouge 3 began production in the first quarter of 2014 and has had strong performance ever since, with materials being sold and exported across the wider Asian markets and the first shipment leaving its facility in October of 2014 by way of the Khalifa Port, Abu Dhabi. As the country’s biggest petrochemical producer, the focus for Borouge, after a successful start-up at the end of 2014, will need to be on supply chain management and logistics. A company that is well
versed in the value of strategic partnerships, Borouge signed an agreement in June of 2014 with Abu Dhabi Terminals (ADT) for the construction and operation of a packaging facility for Borouge’s export products at Khalifa Port over and above export agreements that are already in place. ADT manages the Khalifa Port and as the main route to market for Borouge, the company recognises the importance of having strong systems in place at the Port. “Supply chain management is central to our growth,” explained Wim Roels, CEO of Borouge’s Marketing & Sales Company. “By investing in production capacity, commercial operations and research capabilities, we are well prepared to meet the growing demands and diverse needs of the markets we serve. Our goal is to make a sustainable contribution
Borouge and deliver a competitive edge to customers all over the world.” After an initial start last year, Borouge 3 is scheduled to ramp up production at Ruwais to its maximum capacity of 4.5 million t/y by the end of 2015 and completion of this project means that Borouge now owns and operates the world’s largest integrated single-site polyolefins plant. “There are phases of expansion and we have started some of the phases already,” said Mr Al Suwaidi, Vice President of Sales for the Middle East. “We have already supplied some of the new capacity to the market place. “Borouge is a global leader in providing innovative solutions. With the Borouge 3 coming on stream in 2014 and the opening of Borouge Innovation
Centre, Borouge will continue to develop and produce high quality productivity solutions to the highest industry standards while maximizing production output.” Despite fluctuations in oil prices, Al Suwaidi expects demand for the company’s products to continue to rise, due in part to the economic growth in the region and the subsequent increases in demand resulting from that. “There is a growing demand on plastics in the UAE on the long term, owing to economic growth,” explained Al Suwaidi. “There are many growth opportunities for companies both locally and globally.” “The UAE makes up 25% of the Gulf’s plastic products industry has its more than 600 plastics plans across the seven emirates.
Borouge is the largest innovative, high-value plastics solutions provider in the UAE.”
A RESPONSIBLE PRODUCER As well as the company’s investments in its own capabilities and profitability, Borouge understands the importance of taking a vested interest in sustainability and the environment. As a leading operator in the chemicals industry, one of the potentially ‘dirtier’ sectors to operate within, Borouge is committed to its Water for the World™ initiative which addresses water and sanitation challenges. The Water for the World™ programme is Borouge’s core corporate social responsibility project and is focused on three main ideals: ‘improving access to
Hyperion Group provides consulting & advisory services, systems engineering solutions and professional implementation services and support to process manufacturers worldwide. We are proud to have contributed to the success of the Borouge-3 expansion project with the execution of the IT Strategy and IT Front-End-Engineering-Design Study, the creation, operation and successful handover of the Project Management Office (PMO) for all Borouge-3 IT projects as well as the delivery of the Real-Time Batch Tracking and On-Line Polymer Analysis solutions for the new production lines.
We extend our best wishes to Abu Dhabi Polymers co ltd for continued success!! Website: www.hyperionsystems.net e-mail: info@hyperionsystems.net Contact Details: Hyperion Systems Engineering Group Stavros Spanos, EVP Marketing & Partnerships 38 Strovolos Avenue CY 2018, Nicosia, Cyprus Tel: +357 22840700 Fax: +357 22590009
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water and sanitation; promoting sustainable water management practices to preserve water resources; and raising awareness in communities and across the value chain’. The programme has been running since 2007 and has directly impacted the lives of over 300,00 people globally. Connected to this initiative is the company’s partnership with national government organisation, Water and Sanitation for the Urban Poor (WSUP) which has so far helped a further 800,000 people in Africa and Bangladeh gain improved water and sanitation. As well as understanding the importance of supporting sustainability initiatives, Borouge is heavily invested in the welfare of its 3,000 employees. Like any successful company, Borouge is no different in recognizing that the
“Our goal is to make a sustainable contribution and deliver a competitive edge to customers all over the world”
development and satisfaction of its employees forms the backbone of its business and is key to its continued success. Borouge provides employees with a range of career development programs and benefits, as well as providing local and international scholarships for students and potential future employees for the company and the polyolefin industry in general. As a company, Borouge is by no means afraid to make the investments essential to growing its business and maintaining its leading position – both in capacity and the wellbeing of its staff. As the number one petrochemicals producer in Abu Dhabi and with the largest mega facility of its type, Borouge has dug in deep and established itself as one of the global players shaping the industry worldwide
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Neste Jacobs’ history in the Middle East goes way back to the 80’s, when the company was involved in petroleum refinery and chemical process industry projects in Saudi Arabia with Petromin (currently Aramco) and SABIC. In the 90’s Neste Jacobs was busy with the Borouge I project in Abu Dhabi and provided technology licensing to Oman Oil. These days Neste Jacobs is an active player in the Middle East technology, project management and engineering industry - bringing value to the market through its 60 years of experience and through the fact that the company was borne and founded at the center of the hydrocarbon industries. The company has always seen it as its main cornerstone to be involved right from the innovation, research & development through studies and FEED’s, project implementation and further, staying with its customers throughout the operation and maintenance. Since 2011 Neste Jacobs has been registered in Abu Dhabi, UAE, currently has its offices on Al Hamdan Street, Abu Dhabi City, and employs some 100 engineers Jukka Hupanen locally, backed up by more than 1,000 experts and industry specialists at its home office. The customer base has widened and covers many ADNOC companies, such as Takreer, Borouge, and many more companies in Abu Dhabi, Dubai, Bahrain, Oman and Saudi Arabia, with whom Neste Jacobs works in partnership developing Gulf industries towards continued success. “It is a strategic decision for Neste Jacobs to be locally present in the GCC region and Abu Dhabi is our home base there” says Jarmo Suominen, CEO of Neste Jacobs Group. “We are looking for growth and count on the fact that we can bring true added value to the oil and gas, refining and other chemical process industries through our vast and in-depth understanding of process industry technologies, investments and handson operational excellence.” “Taking full advantage of current assets is important for local industry in the global market” says Jukka Hupanen, General Manager of Neste Jacobs Abu Dhabi & GCC Region. “Our portfolio, beginning with technology co-development and going all the way to commissioning and start-up and everything in between, is comprehensive. Our customers benefit greatly from the integrated approach that we can offer.”
Jarmo Suominen
Neste Jacobs is looking for further long term growth together with its customers in the UAE and GCC regions, by enabling the success of its customers.
Neste Jacobs is a preferred solution provider of high-quality technology, engineering and project services for a wide range of industries in the fields of oil and gas, petrochemicals, chemicals, biorefining, biochemicals, biopharma and industrial infrastructure. The company has 60 years of experience in technology development and industrial investment projects as well as maintenance and performance improvement in Europe, North and South America, Asia and the Middle East. In addition to its home market Nordic countries, Neste Jacobs is looking to grow in the global expanding markets. Neste Jacobs employs 1300 professionals globally.
www.nestejacobs.com PAGE 39
Gate swings wider Editorial: Colin Chinery
The opening four years ago of the Gate terminal in Rotterdam was a major step in supplying North West Europe with LNG. Now a further breakthough is in sight with work starting on a new infrastructure that will add break bulk facilities to the expanding portfolio. W h e t h e r t h ro u g h c l i m a t e issues or the push for energy diversification, natural gas is seen as the fossil fuel of the f u t u re . A n d L N G ’s i n c re a s i n g ro l e i n E u ro p e ’s e n e r g y m i x i s u n d e r s c o re d w i t h t h e re c e n t start on a new multi user L N G b re a k b u l k i n f r a s t r u c t u re adjoining the €800m Gate terminal on the Maasvlakte in R o t t e rd a m . Opened in 2011, Gate – ‘ G a s A c c e s s t o E u ro p e ’ , t h e N e t h e r l a n d ’s f i r s t L N G
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t e r m i n a l , i m p o r t s , s t o re s , re gasifies and delivers liquefied natural gas into northwest E u ro p e ’s g r i d . The new facilities, expected to be operational by mid2 0 1 6 , a re b a s e d o n a m u l t i user service model. Open to a l l i n t e re s t e d p a r t i e s t h e y w i l l have a maximum capacity of 2 8 0 b e r t h i n g s l o t s a y e a r. B re a k - b u l k i n f r a s t r u c t u re a n d s e r v i c e s w i l l i n c re a s e L N G bunkering fuel capacity in N o r t h e r n E u ro p e – s p e c i a l i s e d
L N G b u n k e r i n g v e s s e l s a re being developed to enable ship-to-ship transfers - and ease the split up of largescale LNG shipments into manageable portions for small o ff - t a k e l o a d s . A n e w j e t t y w i l l m a k e L N G m o re w i d e l y available as a transport fuel for vessels in northwest E u ro p e . I t ’s a d e v e l o p m e n t t h a t w i l l accelerate the distribution and use of LNG as a cleaner fuel alternative for maritime
GATE terminal vessels, ferries, trucks and industrial applications t h ro u g h o u t N o r t h We s t E u ro p e .
MOTORWAYS OF THE SEA T h e p ro j e c t i s f i n a n c e d w i t h € 3 8 m f ro m t h e E u ro p e a n Investment Bank, with the re m a i n d e r s u p p l i e d b y a syndicate of four banks under a n a g re e m e n t s i g n e d i n l a t e O c t o b e r l a s t y e a r. B e s i d e s t h a t t h e re i s f u n d i n g f ro m t h e E U ’s ‘ M o t o r w a y s o f t h e S e a ’ concept, which is co-financed b y t h e E U Tr a n s E u ro p e a n Tr a n s p o r t N e t w o r k s ( T E N - T ) . Shell, the launching customer for the expansion, has committed to buy capacity f ro m G a t e t e r m i n a l , a m o v e t h a t e ff e c t i v e l y u n d e r w ro t e i n v e s t m e n t i n t h e n e w p ro j e c t . “ We a re p l e a s e d t o h a v e re a c h e d t h i s a g re e m e n t , ” s a i d
M a a r t e n We t s e l a a r, S h e l l ’s e x e c u t i v e v i c e p re s i d e n t . “LNG is a viable option for f u e l l i n g c l e a n e r a n d m o re s u s t a i n a b l e t r a n s p o r t . We believe LNG will form a bigger part of the transport fuel mix i n t h e f u t u re , a n d t h i s p ro j e c t demonstrates our confidence in LNG as a fuel option.” W i t h a n i n i t i a l t h ro u g h p u t capacity of 12 billion cubic meters per year - and with t h e o p t i o n t o i n c re a s e t o 1 6 bcm – Gate was built by the s t a t e - o w n e d g a s i n f r a s t r u c t u re company Gasunie and Netherlands-based global independent tank storage p ro v i d e r, Vo p a k , a n d s e e n b y the Dutch government as part of its strategy to hold on to t h e N e t h e r l a n d ’s p o s i t i o n a s a k e y E u ro p e a n g a s h u b . R o t t e rd a m i s E u ro p e ’s biggest port with an annual
turnover of €600m, used by 32,000 ocean-going vessels and 87,000 inland vessels a y e a r a n d e m p l o y i n g m o re t h a n 90,000 people. With an easy e n t r y ro u t e t o a n d f ro m t h e N o r t h S e a , R o t t e rd a m w a s a n o b v i o u s l o c a t i o n f o r a s u p e rsized LNG port and terminal. Four years on, this latest development by Gasunie a n d Vo p a k i s “ a n i n n o v a t i v e L N G b re a k b u l k c o n c e p t , ” says Gate terminal Managing D i re c t o r D i c k M e u r s . “Upgrading the LNG hub capabilities of Gate terminal will enable our customers to supply LNG as cleaner fuel for transport, shipping and industrial applications.” A n d a s A l l a rd C a s t e l e i n , C E O o f P o r t o f R o t t e rd a m Authority says, it fits into a general strategy aimed at s t re n g t h e n i n g R o t t e rd a m ’s
© Gate terminal | LBBR Project | Maasvlakte LNG
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A PARTNER
The use of LNG as a fuel is e x p e c t e d t o g ro w s u b s t a n t i a l l y f o l l o w i n g t h e i n t ro d u c t i o n earlier this year of stringent n e w e m i s s i o n re g u l a t i o n s (SECA) for the marine sector in the North Sea and the Baltic Sea. By using LNG as a fuel, barges, coasters, ferries, as well as heavy duty trucks, can re d u c e t h e i r c a r b o n d i o x i d e ( C O 2) e m i s s i o n s b y u p t o 2 0 % a n d n i t ro g e n o x i d e ( N O x ) emissions by up to 85%, while re d u c i n g s u l p h u r a n d p a r t i c l e e m i s s i o n s t o a l m o s t z e ro . Reasons persuasive enough for the Dutch government a n d t h e E u ro p e a n U n i o n t o www.mourik.com encourage the development of Projects on industrial plants increasingly demand a multidisciplinary liquefied natural gas. approach. Mourik uses in-house expertise in nearly all of the But it has not been a disciplines needed for these projects. After all, you must be assured s m o o t h j o u r n e y. S i x m o n t h s of a fast-acting, reliable partner. b e f o re G a t e c a m e o n s t re a m , Your partner for today. Mourik, +31-184-66 72 00. a t s u n a m i t r i g g e re d b y a n e a r t h q u a k e o ff t h e c o a s t o f Mourik Groot-Ammers B.V. E info@mourik.com Japan, took the lives of tens @MourikHolding of thousands, and causing a c a t a s t ro p h i c f a i l u re a t t h e Going strong Fukushima 2 nuclear power plant. T h re e o f i t s s i x re a c t o r s position as the most important p o i n t . A n d w e d o n ’t h a v e t o melted down in the biggest E u ro p e a n L N G h u b . d e v e l o p t h e i n f r a s t r u c t u re nuclear disaster since b e c a u s e i t ’s a l re a d y i n p l a c e . hernobyl in 1986, leaving the urik_Adv_A Partner 88x125.indd 1 01-05-15C 16:38 ROTTERDAM’S ACE CARD S o i t ’s a v e r y s t ro n g p o i n t t o w o r l d ’s t h i rd l a r g e s t e c o n o m y “Besides the pipeline h a v e t h i s n e w t e r m i n a l h e re re l i a n t o n L N G t o f i l l i t s e n e r g y connections, our logistical a n d p l a y a l e a d i n g ro l e i n gap. l i n k s f o r t h e E u ro p e a n s m a l l the distribution of LNG for Since then plans to phase scale market – whether by the small scale market into out nuclear power in the next r i v e r, c o a s t a l s h i p p i n g , t r u c k s E u ro p e ; a d e d i c a t e d f a c i l i t y f o r few decades have made the a n d i n f u t u re p e r h a p s b y s m a l l s c a l e s h i p s f ro m s a y 5 0 0 ro l e a n d i m p o r t a n c e o f L N G t r a i n a re a v a i l a b l e a n d v e r y t o 2 0 , 0 0 0 c u b i c m e t re s . i n c re a s i n g l y i m p o r t a n t i n competitive,” says Mr Meurs. “In the end, if you want to J a p a n ’s e n e r g y s t r a t e g y. “Altogether it gives the Port distribute LNG then you must o f R o t t e rd a m a v e r y s t ro n g h a v e re l i a b i l i t y b u i l t i n t o t h e FUKUSHIMA – AND AFTER strategic position. supply system for the benefit ”Fukushima changed the “ R o t t e rd a m i s o n e o f t h e of customers, and this is global energy market a lot,” main larger bunker markets w h y w e a re s e t t i n g u p t h i s says Mr Meurs, who joined i n E u ro p e - t h a t ’s t h e s t a r t i n g d e d i c a t e d f a c i l i t y. ” Gate in 2012 shortly after the
Is more than a supplier
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GATE terminal p ro j e c t w a s d e l i v e re d , a h o m e re t u r n a f t e r t e n y e a r s w o r k i n g in Latin America with P&O N e d l l o y d , M a e r s k a n d Vo p a k . “With Japan buying into LNG, energy prices went up s i g n i f i c a n t l y, a n d f o r E u ro p e i n g e n e r a l t h i s b ro u g h t a c h a n g e in the market dynamics.” F o r G a t e a n d o t h e r E u ro p e a n terminals it has meant a high level of unutilised storage. B u t n o w t h e d y n a m i c s a re changing again, with LNG p r i c e s o n t h e w o r l d ’s l a r g e s t market, the USA, collapsing following the development of indigenous shale gas. “Although we always h a d L N G i n t h e t a n k s , re gasification became less attractive, and so we decided to encourage customers to
d e v e l o p m o re o p t i o n a l i t i e s in the terminal. This is what we have been doing since 2 0 1 1 , a n d w e a re s t i l l i n t h a t p ro c e s s . ” Re-positioning began with adaptation to jetties and a shift to a hub terminal concept. “For this we had to add some services, starting with facilities enabling the berthing of smaller ships at our two main jetties and i n c re a s i n g o u r f l e x i b i l i t y t h e re . We c a n n o w h a v e s h i p s o f a ro u n d 6 , 0 0 0 c u b i c m e t re s a n d u p t o 1 5 , 0 0 0 c u b i c m e t re s for LNG distribution by sea to N o r t h We s t E u ro p e . “This was implemented in 2013, and in 2014 we o p e n e d a t r u c k l o a d i n g b a y, operational now for just over
a y e a r. E a r l y t h i s y e a r w e decided to make a further investment in trans-shipping services to enable LNG t r a n s f e r s f ro m s h i p - t o - s h i p w i t h o u t g o i n g t h ro u g h t h e terminal and our tanks, and this will become available in t h e s e c o n d h a l f o f t h i s y e a r. ” W i t h L N G p o w e re d s h i p p i n g a n d ro a d t r a n s p o r t p ro j e c t s getting financial backing in t h e ‘ T E N - T P ro g r a m m e ’ , t h e l a t e s t G a t e p ro j e c t i s also seen as an important step in achieving the goals o f t h e ‘ G re e n D e a l R h i n e a n d Wa d d e n ’ , a p a r t n e r s h i p between the Dutch government, business and knowledge institutes a i m e d a t p ro m o t i n g g re e n g ro w t h .
KWS Infra: The connecting factor KWS Infra is one of the 120 operating companies of Volker Wessels. A full service contractor for all imaginable disciplines. We can help you with a integrated advise, design, construct and maintenance of your conceptual design. At Gate Terminal we integrated design and construct of Ground work, Civil work, Road work, Mechanical piping, Construction work and Maritime activities.
KWS Infra bv District Zwijndrecht Ohmstraat 2-4, 3335 LT Zwijndrecht T +31 (0)78 625 08 00 F +31 (0)78 625 08 10 zwijndrecht@kws.nl, www.kws.nl
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t o o ff e r s i m i l a r s e r v i c e s in the medium term and help the global shipping sector m a k e t h e re q u i re d transitions.” E u ro p e imported just 33 million tonnes of LNG in 2014, far below its import capacity of 100 million tonnes per annum as t r a d e r ’s d i v e r t e d c a r g o e s t o h i g h e rpaying Asian markets. B u t a re c e n t s l u m p in Asian demand has raised hopes that E u ro p e m a y a t t r a c t m o re c a r g o e s i n t o i t s u n d e r- u s e d import terminals. “After four y e a r s o f f l a t s u p p l y w e a re entering a period of supply g ro w t h , ” s a y s A n d re w Wa l k e r, B G G ro u p V i c e P re s i d e n t o f Global LNG “2014 marked the startup of a new wave of supply f ro m A u s t r a l i a , a n d t h i s w i l l be joined by the first volumes f ro m t h e U S G u l f o f M e x i c o a ro u n d t h e e n d o f 2 0 1 5 . ”
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THE BIG CHANGE
to cooperate on LNG bunkering as part of an initial deal covering information exchange on marine services. S i n g a p o re , t h e w o r l d ’s largest bunkering port, has stepped up similar cooperation arrangements, including a 2013 deal with B e l g i u m ’s A n t w e r p P o r t Authority and the Port of Z e e b r u g g e t o s t a n d a rd i s e L N G b u n k e r i n g s t a n d a rd s . “ Yo u n e e d L N G a v a i l a b l e
The big change says Mr Meurs, will come if the global shipping sector changes to LNG. International coo rd i n a t i o n i s i n c re a s i n g , a n d last month came the news that R o t t e rd a m a n d S i n g a p o re a re
for bunkering in many ports, a n d t h e P o r t o f R o t t e rd a m h a s a n i m p o r t a n t ro l e i n g e n e r a l , liaising with other main ports in the world and assisting in terms of sharing experience and practices to enable them
“The market i s s u b j e c t t o e n v i ro n m e n t a l p re s s u re a n d e m i s s i o n re s t r i c t i o n s a n d L N G i s a very viable alternative both in terms of competitiveness and availability and of course e n v i ro n m e n t a l i m p a c t . S o i t has all the elements to be a very good alternative, especially for the shipping s e c t o r. ”
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POST OPERATIONAL F o r w a rd s i x m o n t h s t o m i d - 2 0 1 6 , a n d G a t e ’s n e w m u l t i u s e r L N G b re a k b u l k i n f r a s t r u c t u re s h o u l d b e operational. What then? “As a h u b w e h a v e n o w m o re o r less completed our whole portfolio of services, so we will first have to focus on g ro w t h , a n d i n t h e f i r s t y e a r s managing operations in a h i g h l y p ro f e s s i o n a l w a y, ” says Mr Meur
GATE SWINGS WIDER
Fluor Congratulates Gate terminal
Congratulations to Gate terminal B.V. and its shareholders N.V. Nederlandse Gasunie and Koninklijke Vopak N.V. for being at the forefront of providing environmentally friendly and safe LNG as fuel for north-western Europe. Fluor is proud to provide engineering, procurement and construction management services for the LNG break bulk terminal that exemplifies this capability. We look forward to working on this and future projects that support Gate terminal and its shareholders leading energy infrastructure and transfer. Please contact us whatever your needs along the gas and LNG chain. Fluor B.V. Taurusavenue 155 2132 LS Hoofddorp The Netherlands Tel: +31.23.543.2432
Fluor S.A. C/ Ribera del Loira 16-18, 28042 Madrid, Spain Tel: +34.91.536.6400
www.fluor.com
INDUSTRY LEADER • GLOBAL REACH • PROVEN EXPERTISE
©2015 Fluor Corporation.
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Total commitment Editorial: Colin Chinery
Falling oil prices and the high cost of drilling offshore are causing energy players around the world to rethink their budgets. But, after a major costreappraisal, Total gave the green light to the massive Ultra Deep Kaombo field off the coast of Angola, a project offering huge rewards for the West African producer and the French oil giant. 1 5 0 k m o ff L u a n d a o n t h e Angolan coast lies a giant oil field estimated to contain s o m e 6 5 0 m i l l i o n b a r re l s o f o i l . This is Kaombo, the name given to six of the 12 fields d i s c o v e re d a t B l o c k 3 2 . I t ’s o n e o f t h e w o r l d ’s b i g g e s t s u b s e a p ro j e c t s a n d i t ’s u l t r a deep, the water depth in the d e v e l o p m e n t a re a e x t e n d i n g f ro m 1 , 4 0 0 m t o 1 , 9 5 0 m . T h e l a t t e r c o r re s p o n d s t o 1.18 miles, which ranks none
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t o o s h a b b i l y w i t h t h e w o r l d ’s d e e p e s t , S h e l l ’s p ro j e c t e d Stones fields, two miles deep 2 0 0 m i l e s o ff L o u i s i a n a i n t h e Gulf of Mexico. Wo r k o n t h e $ 1 6 b n K a o m b o p ro j e c t - t h e b l o c k ’s f i r s t development - is scheduled f o r 2 0 1 7 , t w o y e a r s a f t e r To t a l announced it would move f o r w a rd w i t h p l a n s t o d e v e l o p t h e f i e l d o ff t h e s h o re l i n e o f a c o u n t r y w h e re i t h a s b e e n operating since 1953.
I t ’s a n i n v e s t m e n t p a c k a g e o f w h i c h To t a l ’s p e rc e n t a g e i n t e re s t i s 3 0 % . A n g o l a n state-owned firm Sonangol holds another 30% of Block 32, Angolan-Chinese joint v e n t u re S o n a n g o l S i n o p e c International, 20%, Exxon M o b i l ’s E s s o u n i t 1 5 % a n d P o r t u g a l ’s G a l p 5 % . K a o m b o ’s s u c c e s s i s c r i t i c a l f o r A f r i c a ’s s e c o n d b i g g e s t o i l p ro d u c e r w h e re 3 0 % o f t h e p o p u l a t i o n a re l i v i n g b e l o w t h e
Kaombo Project
poverty line. B u t To t a l ’s g o a h e a d came only after an internal re - a p p r a i s a l t h a t s a w a significant downsizing in c o s t i n g . T h e K a o m b o p ro j e c t h a s s u ff e re d n u m e ro u s d e l a y s in its history due largely to the cost of developing the ultra-deepwater field, t h re a t e n i n g t o a d d i t t o a g ro w i n g l i s t o f l a r g e - s c a l e g l o b a l p ro j e c t s m o t h b a l l e d as oil companies have cut investments. Kaombo is made up of two clusters of widely dispersed, marginal oil discoveries which on their own could not be developed. But, by bringing them together under two separate developments,
p ro j e c t e c o n o m i c s h a v e i m p ro v e d . To t a l ’s i n i t i a l e s t i m a t e s p u t Kaombo on $20 billion to b r i n g i t i n t o p ro d u c t i o n . B u t a f t e r re - e x a m i n i n g i t s f i g u re s t h e F re n c h g i a n t t r i m m e d t h i s down to $16 billion, keeping A f r i c a ’s N o . 2 p ro d u c e r on track to expand its oil i n d u s t r y. A k e y h e re w a s t o s e t t l e for a “just good enough” a p p ro a c h i n s t e a d o f i t s original “the best possible.” The company decided, for example, to build its two 115,000 bpd floating p ro d u c t i o n s t o r a g e a n d o ff l o a d i n g u n i t s b y m a k i n g alterations to two very large crude carriers (VLCCs) instead
o f b u i l d i n g t h e m f ro m s c r a t c h . Using the converted VLCCs and other less bespoke equipment saved $2 billion. To t a l a l s o r a i s e d i t s o u t p u t capacity estimate for the p ro j e c t t o 2 3 0 , 0 0 0 b p d f ro m 200,000.
COST EFFICIENT INNOVATIONS The 50 subsea development plan is based on innovative a n d c o s t e ff i c i e n t “ h y b r i d loop” technology for multiphase pumping and transport of fluids. The concept consists of a number o f p ro d u c t i o n l o o p s w i t h o n e i n s u l a t e d p ro d u c t i o n r i s e r a n d one non-insulated service riser p e r f i e l d . Wa t e r i n j e c t i o n r i s e r s Continues on page 51... PAGE 47
Supplying Mission-Critical Systems for Total’s Kaombo Project:
200 Optical Terminations 242 Optical Wet Mate Connectors
378 Electrical Terminations
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www.teledyneoilandgas.com oilandgas@teledyne.com
Kaombo Project
Teledyne Oil & Gas optical and electrical interconnect systems
148 Optical Harnesses and Jumpers
7,168 Electrical Wet Mate Connectors 1,299 Electrical Harnesses and Jumpers
62 Glass-to-metal sealed penetrators integrated into PT Sensors
The Kaombo project includes over 9,400 interconnect solutions from these Teledyne Oil & Gas product lines: CABLE SOLUTIONS
CORMON
DGO
IMPULSE-PDM
ODI
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Teledyne Oil & Gas With over 9,400 elements enabling the power and data transmission network for the Kaombo project, Teledyne Oil & Gas contributes the mission-critical interconnect technology that keeps the field operational for its lifetime. The product lines of Teledyne Oil & Gas provide the subsea interconnect and electro-optical distribution systems for Total’s Kaombo project through Aker Solutions. Teledyne Oil & Gas comprises seven product lines that offer a wide spectrum of submersible interconnect, from dry mate electrical connectors and penetrators, to wet mate optical and hybrid connectors, to High Pressure/High Temperature (HPHT) connectors and feedthrough systems. This unique organizational structure allows Teledyne Oil & Gas to act as a one-stop-shop for the supply of the complete electrical and optical distribution scope of major projects such as Kaombo, where the alternative solution is for operators to manage multiple suppliers, potentially increasing complexity and management costs. In addition to a diverse product offering, Teledyne Oil & Gas has a long history of supply to Total programs, and has developed a partner relationship with Aker Solutions by integrating the engineering teams. Teledyne Oil & Gas had previously demonstrated successful execution with the team at Aker during recent projects, which culminated in being awarded the 2013 Supplier of the Year from Aker Solutions Subsea UK. The integrated Teledyne Oil & Gas/Aker team focuses on scoping the project requirements from the outset, creating a process to generate the optimal specifications for the required reliability for the anticipated product life cycle. The team also seeks to reduce non-valueadded activities, to ensure that resources are effectively utilized and the project executes on time. Formed in 2009 from a group of Teledyne Technologies companies, Teledyne Oil & Gas has evolved to become a single integrated organization with seven product line entities: AG Geophysical Products, Cormon, DGO, Impulse, ODI, Storm Cable and VariSystems, plus a close association with research partner Teledyne Scientific Corporation. Together, the teams have participated in hundreds of subsea projects with hundreds of thousands of units deployed. Teledyne Oil & Gas leads with a strong reliability program based on understanding all aspects of our systems’ and subsystems’ 25 year performance life capability, from the materials systems to the physics of failure of each material in the system. The latest advanced methods of combined stress analysis and materials certification, along with accelerated aging performance qualification are practiced in association with Teledyne Scientific, a leading materials science research center in Thousand Oaks, California. Working closely with materials scientists at Teledyne Scientific on rigorous test programs, Teledyne Oil & Gas has developed a qualified materials database with over 29,000 analyses and over 200 qualified materials. This database serves as a comprehensive resource to provide guidance to operators on choosing materials systems for challenging operating conditions, including high pressure, high temperature, harsh fluids, or a combination of these. To solidify the company’s focus on new product development for over-the-horizon challenges, a new 52,000 square foot Technology Development Center opened in October 2013 at the Teledyne Oil & Gas headquarters in Daytona Beach, Florida. The Technology Development Center is staffed with over fifty dedicated New Product Development engineers, and serves as the new product development center to design, develop and qualify engineered solutions to resolve complex emerging technical challenges, primarily for the offshore oil and gas production and exploration industries. The integrated product lines of Teledyne Oil & Gas, along with the advanced research capabilities and materials science expertise, all combined with proven project experience, makes evident the value proposition of Teledyne Oil & Gas for subsea projects that call for complex interconnect solutions and require validated reliability processes.
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Kaombo Project ...Continued from page 47 w i l l a l s o b e re q u i re d . The two VLCCs converted i n t o t u r re t m o o re d F l o a t i n g P ro d u c t i o n , S t o r a g e a n d O ff l o a d i n g v e s s e l s a n d connected to one of the biggest subsea networks in t h e w o r l d - m o re t h a n 6 0 0 k m s q – w i l l e a c h b e p ro d u c i n g 1 1 5 , 0 0 0 b a r re l s p e r d a y, t a p p i n g re c o v e r a b l e re s o u rc e s o f a b o u t 3 0 0 m i l l i o n b a r re l s o f crude held in Oligocene and M i o c e n e re s e r v o i r s . The Kaombo North FPSO w i l l p ro d u c e f ro m s o m e 35 subsea wells on the G e n g i b re , G i n d u n g o a n d C a r i l discoveries, while the Kaombo South floater will exploit the M o s t a rd a , L o u ro a n d C a n e l a f i n d s t h ro u g h 2 9 w e l l s . The nearby Salsa accumulation could become a f u t u re s a t e l l i t e p ro d u c e r. S t a r t - u p o f K a o m b o ’s f i r s t FPSO is scheduled for the second half of 2017, with the second FPSO coming on s t re a m a b o u t n i n e m o n t h s l a t e r. O i l w i l l b e l o a d e d i n t o shuttle tankers for export, while gas will be piped to the Angola liquefied natural gas plant at Soyo. A f l a g s h i p p ro j e c t i n a country of strategic i m p o r t a n c e f o r To t a l , K a o m b o w i l l s e c u re t h e s u s t a i n a b l e g ro w t h o f A n g o l a ’s o ff s h o re re s o u rc e s t h ro u g h t h e mastery of state-of-the art technologies. Falling oil prices and the high cost of drilling o ff s h o re a re c a u s i n g e n e r g y p l a y e r s a ro u n d t h e w o r l d t o re t h i n k t h e i r b u d g e t s , a n d a n a l y s t s D o u g l a s - We s t w o o d a re f o re c a s t i n g a d ro p i n deepwater completions in
Angola in 2016. Despite this set-back, A n g o l a ’s d e e p a n d u l t r a - d e e p p ro j e c t s a re k e y t o d r i v i n g o ff s h o re p ro d u c t i o n d u r i n g a p e r i o d o f re d u c e d s p e n d i n g a n d re t re n c h m e n t . “ We d o n o t e x p e c t t o s e e p ro j e c t s t h a t a re p a s t F I D b e i n g c a n c e l l e d a n d m a n y p ro j e c t s h a v e b e e n under construction for a number of years and will start u p i n t h e c o m i n g t h re e y e a r s , ” re p o r t s D o u g l a s - We s t w o o d . To t a l ’s c o n t i n e n t a l a m b i t i o n s c e r t a i n l y re m a i n u n d a u n t e d by the collapse in oil prices. For as well as Kaombo, it is betting on a string of African p ro j e c t s ( E g i n a i n N i g e r i a and Moho in the Republic of Congo among them) to help it boost p ro d u c t i o n t o a target of 2.8 million b a r re l s of oil
equivalent per day in 2017. T h e s e We s t A f r i c a n p ro j e c t s a re i n d e e p a n d u l t r a - d e e p w a t e r - a n a re a w h e re To t a l i s a s e l f - p ro c l a i m e d s p e c i a l i s t , b u t t h a t re q u i re s c o s t l y technologies.
CONTRACTS BONANZA To t a l ’s K a o m b o G re e n L i g h t t r i g g e re d n e a r l y $ 8 b n w o r t h o f c o n t r a c t s . A F re n c h - D u t c h a l l i a n c e b e t w e e n Te c h n i p a n d H e e re m a M a r i n e C o n t r a c t o r s won a $3.5bn engineering, p ro c u re m e n t , c o n s t r u c t i o n , i n s t a l l a t i o n ( E P C I ) a n d p re commissioning contract for the subsea umbilicals, risers and flowlines (SURF) on Kaombo.
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H e e re m a ’s d e e p w a t e r construction vessel, the B a l d e r, w i l l b e d e p l o y e d t o install the STTRs and the p i p e - i n - p i p e p ro d u c t i o n p i p e l i n e s , w h i l e Te c h n i p ’s vessel the Deep Blue will i n s t a l l a l l t h e re m a i n i n g pipelines. Te c h n i p w i l l a l s o d e p l o y o t h e r v e s s e l s f ro m i t s f l e e t to install the flexibles and u m b i l i c a l s , a n d p ro v i d e construction work support for t h e u l t r a - d e e p w a t e r p ro j e c t . T h e j o i n t v e n t u re w i l l a l s o carry out engineering and installation works for 18 rigid single-top-tension risers, large buoyancy tanks measuring 40m by 6m. It will also install flexible top riser jumpers, riser base spools, the rigid pipei n - p i p e p ro d u c t i o n a n d s i n g l e pipe injection pipelines, and
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o t h e r s u b s e a s t r u c t u re s , p i l e s and steel jumpers. The deeper and heavier pipe-in-pipe p ro d u c t i o n p i p e l i n e s r a n g e f ro m 1 2 i n t o 1 8 i n i n d i a m e t e r. Italian oil and gas industry c o n t r a c t o r, S a i p e m , s e c u re d two contracts worth a combined $4 billion. The main c o n t r a c t w o r t h m o re t h a n $3 billion is an EPCI for the e n g i n e e r i n g , p ro c u re m e n t , installation and commissioning o f t h e t w o c o n v e r t e d t u r re t m o o re d f l o a t i n g F P S O s , and Saipem has also been a w a rd e d a s e v e n - y e a r c o n t r a c t worth about $1 billion for the operation and maintenance services of the two vessels. B u m i A r m a d a ’s s u b s i d i a r i e s A r m a d a O ff s h o re O S V a n d Bumi Armada (Labuan) have been contracted to supply their
A r m a d a Tu a h 3 0 6 a n d A r m a d a Tu a h 3 0 2 p l a t f o r m s u p p l y vessels to carry out the drilling works within Block 32. And last month Norwegianh e a d q u a r t e re d A k e r S o l u t i o n s – which has been operating in Angola since 1999, won a c o n t r a c t w o r t h £ 1 . 8 b n f ro m To t a l t o p ro v i d e a s u b s e a p ro d u c t i o n s y s t e m f o r t h e Kaombo development.
JOINT VENTURE Aker Solutions will deliver 20 subsea manifolds and 65 vertical subsea wellsets. The o rd e r a l s o i n c l u d e s a s s o c i a t e d c o n t ro l s a s w e l l a s w o r k over and tie-in systems. The f i r s t d e l i v e r i e s a re s c h e d u l e d for the second quarter of 2015. Aker has formed a joint v e n t u re w i t h A n g o l a n c o m p a n y P ro d i a m a n O i l S e r v i c e s t o f u l f i l
Kaombo Project l o c a l c o n t e n t re q u i re m e n t s f o r t h i s a n d o t h e r s u b s e a p ro j e c t s o ff A n g o l a . In June, Bluewater a n n o u n c e d i t w o u l d p ro v i d e engineering for two complete d e e p w a t e r t u r re t m o o r i n g s y s t e m s a n d t h e re l a t e d p ro c u re m e n t a n d c o n s t r u c t i o n o f t w o t u r re t a n d s w i v e l systems. Kaombo marks a turning p o i n t i n To t a l ’s l o c a l p re s e n c e and industrial partnership with A n g o l a , w i t h a n u n p re c e d e n t e d level of local content. Over 14 million man-hours of fabrication and construction works will be performed locally i n A n g o l a n y a rd s , w h i c h w i l l b e used for equipment fabrication a n d a s s e m b l y. The former Portuguese colony has been among A f r i c a ’s f a s t e s t g ro w i n g
“It will also significantly increase Total’s current Angolan liquid production of 186,000 bpd”
economies over the past d e c a d e a s i t s o u g h t t o re b u i l d following the devastating civil war that ended in 2002. And the ramping up of oil output h e l p e d A n g o l a a c h i e v e s t ro n g g ro w t h — a c h i e v i n g c l o s e t o 23% in 2007 alone. Angola is one of the top o i l p ro d u c e r s a n d l a r g e s t exporters in the world and has long competed with Nigeria for t h e t i t l e o f l a r g e s t o i l p ro d u c e r in sub-Saharan Africa. However the country has yet t o h i t s e l f - i m p o s e d p ro d u c t i o n targets, with older and ageing f i e l d s s u ff e r i n g f ro m d e c l i n i n g p ro d u c t i o n . Oil accounted for 44% of GDP and close to 97% of t o t a l e x p o r t re v e n u e i n 2 0 1 2 a c c o rd i n g t o t h e I n t e r n a t i o n a l Monetary Fund. The US Energy Information Administration
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© FPSO Pazflor | Total PAGE 54
Kaombo Project estimates the country had $24 b i l l i o n i n n e t o i l e x p o r t re v e n u e in 2014 - $3 billion less than i n 2 0 1 3 b e c a u s e o f d e c re a s e d p ro d u c t i o n a n d t h e d e c l i n e in average annual crude oil prices.
VULNERABILITY A n g o l a ’s d e p e n d e n c e o n o i l re v e n u e m a k e s i t v u l n e r a b l e t o a decline in oil prices, whose dramatic fall coupled with A n g o l a ’s s t a g n a n t p ro d u c t i o n h a s c re a t e d a c r i s i s t h a t h a s s e n t i t s c u r re n c y, t h e K w a n z a , t o a n a l l - t i m e l o w. The national Government has slashed its budget for the year by a quarter - about $15bn a f t e r re v i s i n g e x p e n d i t u re a n d halving its assumptions for o i l p r i c e t o $ 4 0 a b a r re l . A n d n o w A f r i c a ’s s e c o n d - l a r g e s t o i l p ro d u c e r i s s e e k i n g t o r a i s e u p t o $ 1 0 b n f ro m f o re i g n c re d i t o r s
“Kaombo is riding to a rescue, poised to arrest the downward trend and conceivably reverse it by contributing 15% to Angola’s oil output”
AP OSJ-0515-A5:AP OSJ-0515-A5 28/04/15 18:42 Page1
as it attempts to push ahead w i t h k e y i n f r a s t r u c t u re p ro j e c t s i n t h e f a c e o f s e v e re h e a d w i n d s t r i g g e re d b y t h e price collapse. But Kaombo is riding t o t h e re s c u e , p o i s e d t o a r re s t t h e d o w n w a rd t re n d a n d c o n c e i v a b l y re v e r s e it by contributing 15% to A n g o l a ’s o i l o u t p u t . I t w i l l a l s o s i g n i f i c a n t l y i n c re a s e To t a l ’s c u r re n t A n g o l a n l i q u i d p ro d u c t i o n o f 1 8 6 , 0 0 0 b p d . “ G l o b a l l y, d e e p w a t e r c o s t s a re r i s i n g - t h i s y e a r b y a l m o s t 2 0 % , s o t h e f a c t t h a t To t a l could find slack in its capex to continue with its Angola p ro j e c t s h o w s h o w i n v e s t o r s v i e w A n g o l a ’s l o n g e r- t e r m o ff s h o re p ro s p e c t s , ” s a y s Rolake Akinkugbe, head of e n e r g y a n d n a t u r a l re s o u rc e s coverage at FBN Capital. “By a n d l a r g e , t h e y a re b u l l i s h . ”
Safety, Efficiency, Reliability At Bureau Veritas, We Know What It Takes Visit us at www.bureauveritas.com/marine-and-offshore
Move Forward with Confidence
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To t a l i s t h e l a r g e s t p ro d u c e r on the African continent and a t s o m e 6 7 0 , 0 0 0 b a r re l s a d a y m a k i n g u p o n e t h i rd o f i t s p ro d u c t i o n a s o p e r a t o r, and Kaombo will continue t o b e i m p l e m e n t e d n o r m a l l y, re g a rd l e s s o f t h e f a l l o f t h e oil price in the international m a r k e t , a c c o rd i n g t o E x e c u t i v e D i re c t o r P a t r i c k P o u y a n n é .
LONG TERM VISION “Despite the volatility of oil prices, we are keeping a long-term vision and we are maintaining the projects that have been announced, such as Kaombo in Angola. “Whatever the price of crude-oil will be, we’ll keep this project. In our industry we need to have medium and long term visions, and we should not react in a
© Ocean Rig
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“In our industry we need to have medium and long term visions, and we should not react in a drastic way to the price of the barrel”
drastic way to the price of the barrel. “If we are not able to do something about costs as a n i n d u s t r y, n o t o n l y o i l companies but all of the supply chain, we may have to suspend or maybe cancel p r o j e c t s , ” s a y s To t a l ’s President of Exploration and Production, Arnaud Breuillac. “If we start postponing projects, this means this oil will be missing 10 years f r o m n o w. Yo u ’ d g e t i n t o what we’ve had so often in our industry: an increase in oil prices that could be detrimental to the world e c o n o m y. ” “ To t a l h a s t h r e e p a r t i c u l a r strengths,” says Patrick Pouyanné - “ultra-deep w a t e r, l i q u e f i e d n a t u r a l g a s and Africa.”
GATE terminal
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Revitalising the North Sea Editorial: Harriet Pattison
Maintaining a solid reputation for oil exploration, Apache was first founded over half a century ago and has since established a global presence with special repute in the offshore regions of the North Sea. Through its investment and subsequent renewal of the Forties Field, it has now been saved from pre-planned decommissioning. A company which is now present across five countries first started out in Minneapolis, Minnesota over six decades ago by Truman Anderson, Raymond Plank and Charles Arnao. Apache Oil Corporation had an initial investment of US$250,000, backed by 41 shareholders, and its name is an amalgamation of the three shareholder’s initials – a, p and a, with ‘che.’
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In 1960, the company changed its name to Apache Corporation and over the next two decades it diversified into many sectors including; steel, plastics, agriculture, cattle, and auto supplies – reaching a total of 58 acquired firms. Seven years on, Apache established its reputation as an oil explorer with its first major oil discovery in the Fagerness No.
1 located in Wyoming’s Powder River Basin, it flowed at 1,200 barrels of oil per day. To help strengthen its position and streamline the business, Apache began to sell off its real estate, agricultural and industrial businesses in 1977 in an attempt to free up capital for further investment. Fast forward another few years and Apache entered into the Gulf
Apache UK North Sea
of Mexico in 1980, acquiring a non-operating interest in Gulf of Mexico production through participation in the Shell joint venture. The company became an operator in the region in 1986 through the acquisition of oil and gas assets from Occidental Petroleum. Apache came up with a new strategy during the 1990’s following its 40-year milestone in the industry, to ‘acquire and exploit’ and in 1991, it acquired the MW Petroleum assets from Amoco which led to a position in the Permian Basin of West Texas and eastern New Mexico – one of the world’s largest oil provinces. The strategy, to invest in international exploration and production, helped to
yield Apache’s first operated production within the Carnarvon Basin, off the coast of Western Australia through the acquisition of Hadson Energy Resources in 1993. The new strategy also added value to properties acquired from Occidental Petroleum, Dow Chemical, Amoco (MW) and Texaco.
A MATURE REGION 10 years on and Apache enters the North Sea region, following its acquisition of an estimated 97% working interest in the UK’s largest oil field, Forties. In 2011 it acquired Mobil North Sea Limited, helping to provide the region with additional development and exploration opportunities across numerous
North Sea fields including; Nevis, Nevis South, Beryl and Buckland fields. Today, Apache’s total interest reaches over one million gross acres in the North Sea, which, in 2014 contributed 11% of worldwide consolidated production and 6% of year-end estimated proved reserves. Despite these impressive statistics, the North Sea is classed as a ‘mature asset’ within the offshore industry, largely due to the fact that the best and most readily accessed resources have now been extracted. Like so many offshore locations, explorations are now getting into deeper and much harsher terrains in the North Sea in a desperate search for the remaining resources, namely heavy crudes.
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Equipment within the North Sea is reportedly due for expensive decommissioning - OPEC’s 2013 World Oil Outlook estimated the industry will need an investment of up to £800 billion to ensure both maintenance and replacement until 2035. And despite an upsurge in investment into the region - £13 billion in 2013 – there was a significant fall in production from a 14% fall in 2012, to a 22% one in 2013. This fall is attributed to natural aging of the region, an increasingly competitive market, infrastructure and a decline in conventional resources. Problems with BP’s Kinneil terminal and the pipeline that runs to the Forties field has not helped matters and in June 2013, the field was forced to close down.
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“Utilizing existing infrastructure within the Forties Field area enables Apache to bring these smaller discoveries on production in a cost-effective manner for the benefit of all stakeholders”
In October 2014, it was announced that Apache may decide to pull out of the UK, selling off its reserves in the region. As the North Sea’s third biggest producer behind Royal Dutch Shell and BP, this news was a blow, with the company’s exit no doubt impacting on the firms left behind, especially those surrounding the Forties field who pump oil and gas into the pipeline system surrounding the site. The alternative option for the company – aside from selling – would be the creation of a separate and international firm that would include the company’s offshore ventures outside of the UK; but including the possibility of leading to further future investment within the country. In a statement, Steve Farris,
Apache UK North Sea CEO of Apache said: “Apache continues to evaluate the separation of its international business through capital markets or strategic transactions. “The company is now evaluating the separation of its international portfolio via the capital markets. In addition, the company is evaluating strategic proposals for specific assets from parties attracted by Apache’s asset quality and track record. The objective is value growth maximization for Apache’s shareholders. “In the United Kingdom North Sea, Apache is the most efficient oil and gas operator, with operating efficiency above 90% compared with the industry average of approximately 60%. Apache has revitalised major, mature assets acquired from other companies, including Forties, the largest oil field in the UK. “In addition, Apache has pursued a successful exploration strategy resulting in the development of multiple new fields,” Farris added.
Forties field, encountered 144 feet of net oil pay in the Bravo channel in 2014 - achieving an initial 30-day production rate of 3,564 Bo/d - this currently stands as the thickest net pay in the Forties field, drilled by Apache, to date. Two semi-submersible rigs, the Ocean Patriot and WilPhoenix, will be deployed into the greater Beryl area during this year, drilling three wells each. To encourage investment in the basin, the UK government is reviewing the fiscal regime and in the fourth-quarter 2014, the cluster allowance was introduced to provide tax relief for high pressure,
high temperature fields along with a 2% reduction in overall tax rates.
REVITALISING THE FORTIES FIELD Apache has no doubt revitalised regions of the North Sea, particularly in the ‘Golden Granny’ of the Forties field which it bought back in 2003 from BP at a time when it was expected the field was set to be decommissioned. Gaining operatorship, Apache invested an estimated £4.9 billion in an attempt to renew and repair infrastructure within the field. Jim House, Apache’s North Sea
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ON THE UP 2014 seemed to bring with it a set of more positive results for Apache and the North Sea. Production in the North Sea in the fourth quarter of 2014 was 80,806 boe/d, a 24% increase from the third quarter and result of production efficiency and a successful drilling program. This production result currently stands as the highest quarterly rate in the company’s North Sea history. The fourth-quarter of 2014 also reported a very positive success rate of 100% within the region for Apache, operating an average of six drilling rigs and drilling five net wells, two of these wells will come on production this year. The T75 well, located in the
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divisional Managing Director, explains the Forties field is potentially the largest brownfield renovation project conducted in the North Sea to date: “Virtually all equipment that moved or rotated was replaced or upgraded, from cranes through export pumping systems.” Cementing this impressive reputation further, Apache invested £400 million on a three-year construction programme for the new Forties Alpha satellite platform built by OGN at Newcastle in the UK North East. Its installation will help to boost output at the field,
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“In the United Kingdom North Sea, Apache is the most efficient oil and gas operator, with operating efficiency above 90% compared with the industry average of approximately 60%”
which at one point, was able to produce 500,000 million barrels a day, highlighting the current status of the North Sea and its operations. Despite plans to decommission the Forties field last summer, it is hoped Apache’s new investment and the new platform will help to extend the life of the Forties Field by an estimated 20 years with Apache on schedule to launch the additional 4D seismic survey to reinterpret 3D data from the Forties. “Apache is installing its new platform at the same time production from Forties was originally scheduled to scale down. Production in the Forties
Apache UK North Sea Field is currently running at an average of 57,000 barrels per day of oil, five times higher than the outlook of 10 years ago,” explains House.
A SOLID REPUTATION Apache North Sea has, through large investments, good asset management and corporate responsibility, given itself a strong reputation, so much so that the threat of its leaving UK waters to concentrate on its American assets, would potentially leave the North Sea in an irreparable state. In recent years, Apache has reported shining results from its other operations in the North Sea, with promising production rates. In April 2013, Apache
announced first oil from the Tonto field in the North Sea and reported its initial production flow was in excess of 10,000 barrels per day. “Seismic inversion processing unlocked pay in the Tonto field, which lies above the main Forties Paleocene reservoir,” Apache’s regional Vice President for the North Sea, James L. House said in a statement. “We penetrated Tonto several times in wells targeting Forties. New seismic techniques enabled Apache’s North Sea geoscience team to gain a better understanding of Tonto and establish a development plan.” In August the same year, the company’s horizontal well located in the Bacchus field pushed its production to 17,600
barrels - per day. House explained: “Utilizing existing infrastructure within the Forties Field area enables Apache to bring these smaller discoveries on production in a cost-effective manner for the benefit of all stakeholders. A little more than a year after first production, Bacchus has produced 3 million barrels of oil and has already paid out.” From humble beginnings in the American state of Minnesota, Apache has developed a strong and industry leading footprint, from Australia to Egypt. Perhaps one of its most reputable positions lies in the North Sea due to its acquisition, respective investment and renewal in the UK’s largest oil field, Forties
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A port of opportunity Editorial: Harriet Pattison
Founded in 2010, VTT Vasiliko has since been establishing an oil storage facility worth an estimated US$375 million, located in the port of Cyprus. Standing as the country’s single biggest infrastructural foreign investment, on completion of Phase 2 in 2016, the total terminal capacity will be close to 900,000 cubic feet. A subsidiary of VTTI B.V., VTT Vasiliko Ltd was founded in 2010, after the concept for a terminal 50km south of the capital, Nicosia, was initially conceived by one of the company’s shareholders, Vitol. The oil storage and management facility, worth an estimated US$375 million, stands as the single biggest infrastructural foreign investment within the energy sector in Cyprus to date.
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Phase one of the terminal project was completed late last year. Ensuring 543,000 cubic feet of capacity, it dealt predominately with white products – jet fuel, gasoline and gas oil. The initial stage included the development of 28 tanks, four jetties and 17.5m maximum draft. Phase two has recently been under evaluation and on completion - due in late 2016 - will create an additional 13 tanks
and 305,000 cubic feet of capacity.
A STRATEGIC LOCATION Cyprus, in terms of product flow and logistics, is in a prime maritime location, the perfect pit stop to connect Europe and the Black Sea with markets in Asia and the Middle East. Before the terminal was built, there were zero oil storage facilities in the area, with inadequate
VTT Vasiliko capacity to store and support the product flows between the east and west. “We expect our Terminal to enhance the supply chains of players moving products in all these directions but mostly those that break bulk in the East Med region,” explains George Papanastasiou, Managing Director of VTTI/ VTT Vasiliko Ltd. “The deep sea marine facilities the VTTV terminal offers and the related flexibilities is exactly what oil traders were missing in this region. W ith the development of mega refineries in the Middle East and the closure of refineries in Europe, it is something we expect that will change the balances and we will see more products moving from the Arab Gulf/Red Sea towards Europe in the future.” In short, Europe has ample gasoline, where the eastern Mediterranean is short and due to various developments in both regions, greater quantities of diesel
are consumed in mature Europe and gasoline within the developing eastern Mediterranean region – highlighting further the need for a Cypriot terminal to help facilitate this distribution. Sitting in a deep-water location, Cyprus will become ideally placed for bigger bulk ships, allowing them to stop and break bulk for smaller vessels, before sailing off to their end destination. “Europe has transitioned to using natural gas and fuel: oil consumption tends to be restricted to developing countries in the East. However, in order to transport it eastwards, one needs to make bulk as opposed to breaking it; and the only logical way and place to achieve this is through Cyprus,” Papanastasiou explained during an interview with Energy Boardroom in October last year. “The Bosporus straights, for example, though equally
strategically positioned would be much too shallow for vessels the size of Suez Max.” W ith Phase two scheduled for completion in 2016, the total capacity of the terminal will be close to 900,000 cubic feet. The slightly longer timeframe of the second phase is largely due to the construction of 13 fuel and crude oil tanks which are being built on reclaimed land - this needs to be constructed and given time to settle before the tanks can be placed. Reclaimed land is a more cost effective alternative, especially for the location of this terminal, largely due to the rising price of land in Vasiliko. In March 2012, a deal was signed with leading international building, civil and electromechanical engineering contractor, the J&P Group for an Engineering, Procurement and Construction contract for an Oil Tank Farm with a net capacity of 630,000 cubic meters (34 oil storage tanks
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and one oily water tank), Jetty, topsides and associated works. In a statement, Efthyvoulos Lacovides, J&P General Manager, said: “J&P, with its experience in projects of similar complexity around the world, will begin the project immediately and will complete it within the deadline of the agreement, the first phase in 24 months and the second in 26.5 months.” Papanastasiou explains the relationship between J&P and VTT Vasiliko had proven to be a successful one with positive results. “A three year relationship characterised by constructive
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“The VTT Vasiliko investment as the first onshore infrastructure energy project has showed the direction and set the pace”
work, exchange of knowledge, share of experience and close cooperation was marked with the delivery of a ‘fit for purpose’ oil terminal in the East Med at the end of Oct 2014. “The VTT Vasiliko investment as the first onshore infrastructure energy project has shown the direction and set the pace. It will serve as an example for investors looking for opportunities around the globe, to see Cyprus as a location to put their money in energy related projects,” he says.
BOUNTIFUL OPPORTUNITIES R e a ff i r m i n g t h e c o m p a n y ’s unfailing commitment to Cyprus, George
VTT Vasiliko Papanastasiou explained the p o s i t i v e re s u l t s t h i s t e r m i n a l will bring to both the country and its economy longterm once it is completed and fully operational: “Our commitment and confidence i n C y p r u s re m a i n s a s s t ro n g a s e v e r. We e x p e c t t o i n v e s t a ro u n d € 3 0 0 m i l l i o n a n d o u r o i l s t o r a g e t e r m i n a l p ro j e c t i s p ro c e e d i n g a c c o rd i n g to plan. In addition, an expansion of the terminal is under consideration, which c o u l d i n c re a s e t h e o v e r a l l i n v e s t m e n t t o a ro u n d € 4 0 0 million. “It will bring significant capital injections and economic benefits to Cyprus, f ro m j o b s t o t h e re d u c t i o n of fuel costs. The Cyprus Ports Authority will benefit a ro u n d € 1 8 m i l l i o n a n n u a l l y
f ro m p o r t d u t i e s , w h i l e t h e state will have additional re v e n u e s f ro m c u s t o m s a n d the taxation of companies m a r k e t i n g p ro d u c t s t h ro u g h t h e t e r m i n a l . We s e e C y p r u s a s a f u t u re e n e r g y h u b o f t h e Eastern Mediterranean, and an attractive place in which to invest. “Cyprus continues to be a s o l i d b u s i n e s s c e n t re f o r its favourable geographical location, EU membership and the high quality of human capital, services and i n f r a s t r u c t u re . T h e t e r m i n a l a l s o p ro v i d e s o p p o r t u n i t i e s to develop other services c o m p a n i e s i n t h e a re a , bringing additional economic benefits to Cyprus,” he explains. O f c o u r s e , w i t h a p ro j e c t of this size, especially one
BIOTEK who successfully completed the prefabrication and the erection of the 47 piping modules and the installation of equipment of the Jetty Terminal Project, as well as the prefabrication and the erection of the piping of the Tank Farm, would like to express its satisfaction for the successful operation of the terminal for the first 6 working months.
w h i c h i s s o re v o l u t i o n a r y f o r t h e re g i o n , i t i s i n t e g r a l t h a t c e r t a i n e n v i ro n m e n t a l s t a n d a rd s a re m e t a n d Papanastasiou explains the implementation of these g re e n s t a n d a rd s w e re essential to the development: “ T h e ‘ g re e n ’ v e n t u re i s i n o u r p h i l o s o p h y a s a g ro u p a n d o u r h i g h o p e r a t i n g s t a n d a rd s and experience give us the confidence that the VTT Va s i l i k o t e r m i n a l w i l l c re a t e no harm to people or the e n v i ro n m e n t t h ro u g h o u t t h e years of operation.” The local people will also re a p t h e b e n e f i t s o f t h e terminal as Papanastasiou e x p l a i n s : “ L o c a l re s o u rc e i s t h e d i re c t i o n f ro m V T T I . C y p r u s o ff e r s h i g h l y e d u c a t e d h u m a n re s o u rc e s which only lacks the
BIOTEK Agios Athanasios, Thessaloniki, W.B. 325, Ionia, Greece, P.C:57008 Tel: +302310723670 Fax: +302310723680 Email: info@biotek.gr Website: www.biotek.gr
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experience due to the specialised knowledge t h a t i s re q u i re d i n t h i s c a s e and the small size of the market. Only when a certain skill or competency is not possible to develop locally, VTT Vasiliko will consider importing resources and this will be on a temporary basis.�
OVERCOMING CHALLENGES Standing as the single b i g g e s t i n f r a s t r u c t u r a l f o re i g n i n v e s t m e n t i n t h e c o u n t r y, i t s development will inevitably bring up challenges along the way and perhaps one of the
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most testing w a s s o u rc i n g t h e e x p e r t i s e a n d k n o w l e d g e re q u i re d to complete the terminal i n a l o c a t i o n t h a t , b e f o re n o w, w a s k n o w n a s m o re o f a t o u r i s t re g i o n t h a n a h e a v y i n d u s t r y re g i o n a n d t h e t w o a re n o t n e c e s s a r i l y compatible. Built on such a large scale, Papanastasiou explains t h e o ff s h o re m a r i n e j e t t y p ro v e d p a r t i c u l a r l y d i ff i c u l t largely due to the Cypriot government lacking the experience and knowledge not only for the construction
p ro c e s s b u t to licence t h e Va s i l i k o terminal. Speaking to Energy B o a rd ro o m , P a p a n a s t a s i o u e x p l a i n e d t h a t i n o rd e r t o o v e rc o m e t h e s e m o re localised challenges, the company undertook a series o f e d u c a t i o n a l e x e rc i s e s in similar establishments a b ro a d – “ We s h u t t l e d e n v i ro n m e n t a l c o m m i t t e e s a b ro a d t o d i s c o v e r h o w other countries maintain e n v i ro n m e n t a l l y f r i e n d l y terminals; we accompanied the Port Authority to Fujairah i n o rd e r t o s h o w t h e m t h e possibilities of operating a small fleet and having c o m m e rc i a l v e s s e l s c o m e in and out; and we even e x p o s e d t h e l o c a l f i re b r i g a d e
VTT Vasiliko to the latest practises in o i l f i re c o n t a i n m e n t a n d f i re f i g h t i n g . T h e s e a re a l l e x a m p l e s o f h o w w e w e re a b l e t o o v e rc o m e a m u l t i t u d e of local-level obstacles. It a l l t a k e s t i m e , b u t t h ro u g h education we believe that w e c a n re a l l y c h a n g e t h e mentality of the system.” It is hoped that this terminal will set the pace f o r f u t u re d e v e l o p m e n t s i n t h e re g i o n , h e l p i n g t o m a i n t a i n g ro w t h a n d l o c a l SME development. One such example that Papanastasiou uses is the local laboratory w h i c h h a s b e e n c re a t e d to complete the task of c e r t i f y i n g p ro d u c t s t h a t w i l l p a s s t h ro u g h t h e t e r m i n a l f ro m t h e e a s t a n d t h e w e s t . I n a b i d t o re d u c e re l i a n c e on the Cypriot port and to
“It will bring significant capital injections and economic benefits to Cyprus, from jobs to the reduction of fuel costs”
help with the services the t e r m i n a l w i l l p ro v i d e o n completion, VTT is in the p ro c e s s o f s e t t i n g u p a n e w a n d s t r a t e g i c c o m p a n y, d e s i g n e d t o p ro v i d e a f u l l package of services that w i l l b e re q u i re d a t t h e j e t t y f ro m p i l o t a g e t o t o w a g e t o m o o r i n g . U l t i m a t e l y, i t w i l l h e l p t o p ro v i d e g re a t e r flexibility for end users u s i n g t h e t e r m i n a l i n a m o re e ff i c i e n t a n d c o s t e ff e c t i v e way in comparison to the Cypriot port authority t h i s d o e s n ’t o p e r a t e a f t e r d a y l i g h t h o u r s a n d i n c re a s e s f e e s a f t e r o ff i c e h o u r s . P a p a n a s t a s i o u a s s u re s that the new company will p ro v i d e ro u n d - t h e - c l o c k j e t t y s e r v i c e s a t p r i c e s m o re i n keeping with international s t a n d a rd s
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Powerful thinking From left to right : Oliver Dixon, Tony McAloon, Dan Jackson, Mark Dixon
Understanding that the path to success is often paved with positive collaboration, earlier this year two major players in the oil and gas industry, GE Oil & Gas and McDermott, pooled their talents in new joint-venture io oil & gas consulting. Total World Energy speaks to Dan Jackson, CEO of the new joint-venture, who explains the ethos of the company and how it will challenge accepted norms in the industry to make projects more commercially viable for clients‌ Q: Tell us about the background of io oil & gas consulting? What is the reason for establishment? Who are the key players involved and how did the idea come about? The offshore industry is in a state of flux and there is an urgent need for decisive change. Inefficiencies and challenges, including finding acceptable design concepts, costing discrepancies and schedule delays, are rife. This, coupled with volatile oil pricing, spells a turbulent time for the industry. However, even in the face of these challenges, working practices have stagnated and the offshore business needs to rethink established ways of working in order to better handle increasingly complex projects. EY states that a staggering two out of three offshore projects
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run over budget or are delayed and cancelled. That statistic is exaggerated the more remote, challenging and complex the project is. There is currently no certainty in the planning stage and projects are falling over during execution because of poor planning at the front-end stage. io is here to change that, along with the damaging disconnect between operators and contractors. io is a new model of offshore consultancy that combines industry expertise and powerful thinking to deliver greater certainty into the design and planning of offshore oil and gas developments. We provide the right balance of consultancy and engineering to effectively manage and deliver full field development plans. io is born out of the shared vision of GE Oil & Gas and
McDermott - that there is a better way forward for the offshore industry. Though io operates fully independently from both companies, it is able to draw on their enormous industry strength, contracting expertise and resources to overhaul the operator-contractor relationship.
Q: What is the company’s core business and main goals? io has a big idea and an even bigger ambition - to transform how the offshore industry works, to make projects more commercially viable through project cost savings of 30-40% and to deliver much needed certainty. As io is the first and only consultancy to offer full field provision, with all technical competencies covered, we ensure certainty in the blueprint
IO Oil & GAS consulting at the planning stage. Certainty in the planning means certainty in the contracting of the tender stage which means far more certainty during execution. The existing model of contracting is piecemeal with specialist designers, contractors and project managers coming on board one at a time, with no one group that brings the whole project together at the front end to deliver efficiencies and control that should be standard in an ever-evolving offshore sector. io has expertise across the entire value chain and offers technical, financial, operational and business consultancy services all under one roof.
Q: Could you detail your approach - how you will provide a holistic approach, reset industry norms and simplify the cost base in order to create up to 40% project cost savings? io’s approach to project planning encompasses all aspects of subsurface, subsea and facilities. We deliver endto-end solutions in full field development, including technical, financial, operational and business consultancy services. By taking this approach, we guarantee that we put the right people with domain expertise and a deep breath of knowledge onto every project to provide specialist expertise and organisational insight. We have created a pioneering approach to systems thinking that allows operators to make conscious decisions around contracting strategy. io acts as a full-project architect rather than just an engineer to effectively manage
projects up to the point where investment decisions are made. By becoming fully integrated within an organisation, io ensures that all parties are fully aligned to deliver on time and on budget. We work with a client in an integrated manner, to ensure consolidated thinking. We bring our deep knowledge of the contractor community to manage and coordinate across the entire supply chain, allowing for better planning and problem solving with an independent, freethinking perspective. By reducing complexity and managing the intricacies of each part of a project, io reduces cost and schedule risk. It is recognised within the industry that standardisation is imperative in driving down costs, and io is part of that simplification process.
Q: What regions will you focus on in offshore oil and gas? All regions. io is a global business with headquarters in London, an office in Houston and a presence in Asia coming soon so we are operating in all the major hubs for offshore developments.
Q: Evidently you are still in early days, but what has the company been focusing on so far since inception, and what is the plan for the rest of this year and 2016? io is a start-up and we have had an extremely positive first quarter. We are already working on our first project and our plan for the rest of this year and next is to focus on a relatively small number of clients who
understand the issues currently facing the offshore oil and gas industry.
Q: Is there significant competition in the market? How will you differentiate yourself from the competition? io has clearly set a trend with a recent flurry of contractor joint ventures and alliances. Whilst there are a number of companies who offer services in the offshore oil and gas area, we firmly believe that io’s transformational approach to delivering endto-end solutions is unique and not found anywhere else in the industry.
Q: Where do you see the business in 5 years’ time? A thriving large-scale, endto-end consultancy working on full field greenfield development projects; delivering certainty to the market. io’s consultancy will have resulted in more successful investment decisions and overall confidence being returned to operators. We expect to see a consistent growth of clients during the venture’s first few years and will have a sizeable global team working on both significant full field projects as well as some medium sized projects
Dan Jackson
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True luxury on the top floor Editorial: Harriet Pattison
FOUR SEASONS HOTEL – NEW YORK
A penthouse suite is the epitome of luxury – storeys above the outside world with truly spectacular views, here at Total World Energy we have selected a few of the very best. With personal butler services, bulletproof windows and infinity swimming pools, it really is no surprise they come with such a hefty price tag… Over the last 12 months we have featured a variety of luxurious hotels and destinations boasting opulence and lavishness for customers from the very beginning of their stay. With infinity pools, award-winning restaurants and stunning panoramic views aplenty, there is no doubt that the hotel industry is growing and becoming an ever increasing luxurious experience. This month we take a look at a few of the top penthouse suites available for rent across the world, from Bangkok to New York, they really are situated at the very top end scale of lavishness; but of course, quality such as this comes with a rather exorbitant price tag.
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The Four Seasons’ Hotel Group was first founded over six decades ago by father and son, Max and Isadore Sharp, establishing what is today, one of the leading hotel groups in true luxury travel. With the first London Four Seasons’ hotel opening in the 1970’s, it began to establish a truly customer-focused experience, paving the way for many signature services which are now provided across the hotel chain all over the world.
FOUR SEASONS HOTEL – NEW YORK The city of New York is certainly a prime location for a Four Seasons
hotel, boasting a restaurant filled with gardenia – aptly named The Garden Restaurant – it is set with trunks of enormous African Acacia trees and Mexican Sycamore wood. Designed by I.M. Pei More and Peter Marino, the penthouse suite, the highest in the city, features one of a kind furnishings and offers stunning panoramic views across Manhattan from four cantilevered glass balconies. If the views aren’t enough to tempt you, this ‘suite in the sky’ also provides an unlimited supply of champagne, caviar and massages with 24-hour butler service and chauffeur-driven Rolls Royce’s. There
Destination Director
HOTEL PRESIDENT WILSON - GENEVA
your stay at the Hotel President Wilson. Luxury is certainly not in short supply with your very own Steinway grand piano and Hermes bathroom products.
THE DOLDER GRAND ZURICH
is no doubt that the Four Seasons has maintained its irrefutable reputation for ensuring the customer is number one priority. At 400sq meters, the penthouse, 244 meters above street level, will set you back the rather pricey sum of £33,000 per night.
HOTEL PRESIDENT WILSON - GENEVA Cross to Geneva and overlooking the scenic views of Lake Geneva and
Mount Blanc lies the Hotel President Wilson which boasts the biggest and most expensive penthouse suite in the world – a rather impressive feat setting you back £40,000 a night, this suite is pretty special. Oozing opulence, this suite is very popular with politicians and celebrities, largely to the high security it offers. With bullet-proof windows and a private lift service, you will certainly feel safe and secure on
T h e M a e s t ro s u it e a t t h e Do ld e r G r a n d in Z u r ic h c o v e r s 4 0 0 s q m e t e r s a n d p ro v id e s g u e s t s w it h a lib r a r y, a p r iv a t e k it c h e n a n d t w o b e d ro o m s w it h a p r iv a t e lo u n g e t e r r a c e o v e r lo o k in g t h e Sw is s Alp s . W it h d é c o r in s p ire d b y t h e c o n d u c t o r, M a e s t ro H e r b e r t v o n Ka r a y a n , it is c e r t a in ly e a s y t o s e e t h e s e c la s s ic a l in f lu e n c e s in t h e a rc h it e c t u re o f t h e s u it e . L o c a t e d a t t h e h ig h e s t p o in t o f t h e t o w e r, g u e s t s c a n a ls o e n jo y a t r u ly re la x in g e x p e r ie n c e in t h e w h ir l p o o l a n d s t e a m s h o w e r w it h in t h e lu x u r io u s m a r b le - c la d b a t h ro o m s , n o t t o m e n t io n t h e o n - c a ll b u t le r s e r v ic e . Pe r h a p s
THE DOLDER GRAND - ZURICH
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ST REGIS - BANGKOK
an i n d i ca t ion o f it s st eep pri c e r ange, the pr ice of t his su i t e i s onl y avai lable on request .
ÇIRAĞAN PALACE ISTANBUL True decadence exudes from the Çırağan Palace, Kempinski Hotel in Istanbul with the penthouse suite one of the largest in Europe and offering beautiful panoramic views across the Bosphorus from every room. W ith gold plates and crystal bathtub facet, the master bathroom is the only one in the hotel with views across the historic peninsula while the master bedroom has been constructed with a handmade marble bath. Providing a range of holistic therapies, the hotel spa aims to promote health, relaxation and well-being to guests, using ancient and traditional water therapies of the Turkish hamam, the spa also provides views across the Bosphorus allowing for true relaxation.
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ST REGIS - BANGKOK A true city landscape view, the St Regis in Bangkok is located on the 44th floor and is laid out across two storeys with three bedrooms and a 7-meter long infinity pool. W ith a study leading off the bedroom, a wine room and opulent marble bathroom, the St Regis is situated in a prime location close to award winning restaurants and luxury boutiques on Rajadamri Road and at over £5,000 a night, the suite also has two butlers on hand to provide first class
ÇIRAĞAN PALACE - ISTANBUL
service. Despite being in one of the busiest cities in the world, at 44 floors above street level, I’d say a good nights’ sleep is definitely on the cards here. With 24-hour personal butler services, breath-taking views across some of the world’s most spectacular sights and decadent décor at its finest, these penthouse suites really are some of the best rooms on offer and although a night’s stay can set you back a rather pricey sum, sometimes we all need to revel in utter luxury to rejuvenate, refresh and remember what’s important
Destination Director
The production of LSAW pipes for the offshore oil and gas industry is the traditional strength of EEW. With more than 75 years of experience in the steel branch, we are able to fulfill our customers’ highest requirements. Apart from standard steel grades used in conventional jacket constructions, the fabrication of high-strength steels for racks and chords for jack-up rigs or low-temperature steels for the use in arctic environments is our daily business. As a special service for our customers in the construction branch, we offer our Point-to-Point Construction Service. This service involves the prefabrication of ready to assemble piping components and saves both, time and money.
www.eew-group.com
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