TWE Issue 14 by East Coast Promotions

SEPTEMBER 2015

more than business

Power offshore

This month we look at some of the largest and most significant offshore developments on the NCS – the Johan Sverdrup Oil Field and Martin Linge Project – with combined recoverable reserves reaching in excess of three billion BOE, both will provide sufficient energy to the growing European market and the National Grid.

Enagás

The golden age of gas

KenGen

Geothermal generation

Eversendai Offshore A solid track record

Fluxys

The Zeebrugge LNG terminal

www.totalworldenergy.com

The commercial extraction of oil in the North Sea dates back more than 100 years to when James Young retorted oil from a variety of fine-grained black oil shale, torbanite, mined in the Midland Valley of Scotland. Just eight years later and oil was found in the Wietze field near Hanover in Germany, which incidentally led to the discovery of 70 more fields - producing a combined total of an estimated 8,400 barrels per day. Fast forward a century to the present year and the North Sea remains the world’s most active offshore drilling region with 173 active drilling rigs. Discovered in 2010, the Johan Sverdrup Oil Field holds the title for the largest field found in the past five years on the NCS. With production planned for 2018, the field’s total reserves are estimated at 1.7 to 3.3 billion barrels of gross recoverable oil, producing up to 200,000 barrels of oil per day. And playing an equally vital role to the future European energy system, offshore wind energy continues to feature heavily here at Total World Energy as one of the most stable sources of renewable energy – one that is expected to grow to 23.5GW by 2020, tripling its current installed capacity. Located off the coast of Yorkshire in the UK, the Humber Gateway wind farm project began generating electricity in June this year, two months ahead of schedule, it is set to generate enough renewable energy to power up to 170,000 homes; crucial not only for the surrounding areas which will benefit but for the future of the UK energy supply market too. What is the future of our energy supply? Get in touch with us: @TWEmagazine

Harriet Pattison editor@ecp-ltd.com

EDITOR Harriet Pattison SUB-EDITOR Ajuanne Payne WRITERS Rosie DeWinter Colin Chinery Abigail Saltmarsh Annabelle Withering Johnny Falconé Louise Defoe

STUDIO DIRECTOR Martyn Oakley DESIGNER Harvey Tarlton SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Mark Leonard

ACCOUNTS Mike Molloy 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 411616 or email | editor@ecp-ltd.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © East Coast Promotions Ltd 2015

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Contents EDITOR’S PAGE

NEWS

Offshore energy generation

All that’s happening in the energy industry

ENTREPRENEUR

INNOVATION

FLUXYS

HOLLANDIA OFFSHORE

JOHAN SVERDRUP OIL FIELD

SAPURAACERGY

MARTIN LINGE PROJECT

ENAGÁS

ZADCO

BOSKALIS SINGAPORE

BILFINGER INDUSTRIER NORGE

KENGEN

EVERSENDAI OFFSHORE

GULF DRILLING INTERNATIONAL

ADMA-OPCO

E.ON HUMBER GATEWAY WIND PROJECT

OILTANKING GMBH

FUTURE TECH

DESTINATION DIRECTOR

Evans Wadongo

A carbon neutral future?

All hands on deck at the Zeebrugge terminal

Solutions for day-to-day challenges

Phase 1 commences

Deepwater production in the Asia Pacific region

Recoverable reserves of 190 million boe

A rising demand for natural gas

Continued success from the UZ750 field

The one stop solutions provider for complex projects

Increasing performance in the ISP market

Utilising the earth’s energy resources

‘Fabrication is in our DNA’

Holding the 3Qs title

On a mission to achieve optimum resource utilisation

Generating electricity for 170,000 homes

Creative logistical solutions

The PlasticRoad

Plans for a floating city PAGE 4

CONTENTS

16 PAGE 5

# twenews

Konecranes introduces a new heavy-duty overhead crane The latest Konecranes built-up trolley crane, UNITON is a robust overhead crane, which has been developed in close cooperation between Konecranes customers and Konecranes industry experts & engineers. The outcome is a rugged construction concept, which is suitable for process duty applications in a variety of industries, such as Steel, Mining, Automotive, or in Shipyards. Available in a wide range of load options, hoisting speeds, lifting heights, trolley gauges, frame sizes, and capacities from 6.3 to 160 tons with a single trolley and up to 320 tons with two trolleys, Konecranes’ UNITON can be built to meet project-specific requirements in almost any application and environment. Factors like temperature, humidity, and corrosive elements are all anticipated during manufacturing, which helps extend the lifetime of the crane. UNITON is easy to use for crane operators, due to the availability of variable frequency drives on all motions (bridge, trolley, and hoist). This provides a smoother lifting experience and helps the operator to keep

the lifted load steady, while a reduction in wear on mechanical components can be seen compared to contractor-controlled cranes.Ease-of-use is further supported by a large variety of pendants and radio control devices as well as with a new patented hook safety latch, which holds the latch open to avoid pinching of fingers. With load control features, like Extended Speed Range (ESR), which comes as standard and ESR+ (available for selected motors), energy costs can be reduced, while the productivity can be increased. The stepless inverter hoisting technology enables that loads with less than 20% of the rated capacity are able to be operated at twice the nominal speed. With ESR+, loads carrying less than 10% of the rated capacity can even travel up to 300% of the nominal speed. Crane operators are able to use the right speed at the right time and can therefore not only work more efficiently but can also save on costs. The savings are achieved by drawing only the power necessary to perform each lift, which can reduce the monthly operating costs significantly. In addition, optional load control

features, like sway control, inching and microspeed, further help to improve speed, accuracy, and safety. UNITON’s design and construction make maintenance and part replacement easy. An example of this is the box-end trucks with a 90-degree MCB-type bearing housing. This eliminates the need for heavy jacks or other special tools and makes the removal of trolley and bridge wheels an easy and safe operation. The robust design also benefits from a two-point drum suspension, which inhibits deflections of the rope drum from causing misalignment in the connection between the drum and gearbox. Summing up, John MacDonald Service, Sales and Marketing Director Konecranes Southern Africa says “We are thrilled to be able to offer Uniton as a competitive, heavy-duty lifting solution that is ideal for our customers in Southern Africa. Especially as it can be tailored to Africa’s unique needs without compromising quality.”

UNITON is especially well adapted for the Steel industry (Coil handling, Slab handling, Pipe handling) © Konecranes PAGE 6

NEWS

Siemens to build wind power plant in Cuxhaven, Germany

© Servickuz | Shutterstock.com Siemens is investing around €200 million to build its first production facility for offshore wind turbine components in Germany. The factory is to manufacture nacelles for the company’s nextgeneration wind turbines. These wind turbines are designed for use at sea and have a capacity of seven megawatts. The new factory in Cuxhaven will be one of Siemens’ most significant new production facilities in Germany in recent years and create up to 1,000 new jobs and is scheduled to take place later this year, with production of the first components to begin in mid-2017. “The decision to build a new production facility in Cuxhaven represents a clear commitment to Germany as a business location,” said Joe Kaeser,

The planned production facility will have a surface area of 170,000 square meters – the size of roughly 24 soccer fields – and will be located directly at the edge of Cuxhaven’s well-developed harbour, allowing heavy components to be loaded directly onto transportation vessels, thereby avoiding expensive ground transportation. The new factory will handle the final assembly of generators, hubs and nacelle backends, which are all connected to form complete nacelles, the core of offshore wind turbines. While evaluating the new manufacturing location, the company also intensively examined the possibilities for investing in existing locations that are being impacted by structural transformations.

are dynamic growth markets for us. The new factory will also make an important contribution toward helping us reach our goal of making wind power competitive.” A recently published study by the Renewable UK industry association shows that the costs of offshore wind power have declined by 11% over the last five years alone. In addition to the new facility in Cuxhaven, Siemens is also currently constructing a plant for rotor blades in Hull, UK, for six- and seven-megawattclass wind turbines. This plant is also scheduled to be fully operational in 2017. Germany is the most significant market for offshore wind power after the UK. Siemens is the market leader in the

President and CEO of Siemens AG. “The new Siemens factory will employ up to 1,000 skilled employees. The expansion of offshore wind power capacity in Germany and Europe represents an enormous opportunity for northern Germany and Siemens.”

“We’re looking forward to building at this factory the most efficient and reliable ‘Made in Germany’ wind turbines,” said Markus Tacke, CEO of the Wind Power and Renewables Division. “We invest where we see opportunities for growth – and Germany and Northern Europe

offshore wind power industry. To date, the company has sold around 3,100 wind turbines and installed at sea more than 1,470 turbines with a total capacity of 4.7 gigawatts. Siemens is also a leader in offshore grid connections and offshore service.

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# twenews

Record lift for Seaway Heavy Lifting On Sunday 2nd August at 09.30 am the crane vessel Oleg Strashnov successfully installed the Process Unit (PU) topside for operator GDF SUEZ E&P UK Ltd (part of the ENGIE Group), and partners Centrica Energy and Bayerngas. The Oleg Strashnov set a new lift record for Seaway Heavy Lifting with the safe installation of the PU topside with a hook load of 4700Mt. The PU topside is part of the Cygnus field which consists of four platforms: Alpha Wellhead platform,

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Process Unit platform, Quarters Unit platform and the Bravo Wellhead platform. The Cygnus Field is located in the southern part of the North Sea. Last year our crane vessel Stanislav Yudin installed the Alpha Wellhead platform, Process Unit jacket, Quarters Unit jacket and subsea structures. This year the campaign continues with the installation of the Bravo Wellhead platform, Process Unit topside and compression module, Quarters Unit topside, and connecting

bridges. Seaway Heavy Lifting’s COO, Peter de Bree says; “I am very proud of the vessel and her crew in successfully performing this record lift and would like to thank GDF SUEZ for their confidence in Seaway Heavy Lifting’s on- and offshore organization when awarding this Contract in 2012. In addition I would like to thank everyone involved within Seaway Heavy Lifting, both onand offshore in achieving this milestone.”

NEWS

Porvair Filtration Group manufactures key assemblies for major South African refinery

© Porvair Filtration Group An international leader in filtration and separation is manufacturing key assemblies for the world’s first gasto-liquid (GTL) refinery in South Africa, further enhancing its highly efficient operation. PetroSA, South Africa’s national oil company, situated in Mossel Bay, is the world’s third largest GTL facility and produces some of the cleanest fuels on the market by using leading environmentally friendly processes. UK-based Porvair Filtration Group was engaged to supply highly efficient and durable sintered metal powder Triple Element Filters (TEFs) to PetroSA through its Johannesburg-based agents, Sagisa Process Engineering (Pty) Ltd. Porvair’s scope of supply included innovative 2.4 metre-long TEF assemblies, manufactured in the UK as well as sintered metal mesh fuse assemblies manufactured in tandem

shipped to the PetroSA refinery and are now helping to clean up catalyst fines - very small particles used in the Fluid Catalytic Cracking process (FCC) of most large, modern oil refineries and in the hydrogen process stream at Mossel Bay. The assemblies were selected by PetroSA for their ability to operate reliably at temperatures in excess of 400°C and at a pressure of around 25bar. The vessels are located above the Catalyst Reduction Reactor (CRR), enabling the TEF assemblies to be cleanable in situ; therefore operating in a cyclic back flush operation to remove the catalyst cake from the filter surface of the TEFs. The disengaged catalyst then falls into the CRR. As a consequence, the TEFs are able to operate for a prolonged period in an aggressive environment, only periodically requiring to be removed and chemically cleaned before then being

schedule and within cost. Market Manager, Andrew Fairlie said: “Porvair is proud to be manufacturing components for one of the world’s most environmentally friendly oil companies. We believe that our filtration expertise can help drive further efficiency and cost reductions at the Mossel Bay refinery, in turn providing sustainable growth. “PetroSA already produces some of the cleanest fuels available, and we are certain that the provision of our TEF and mesh fuse assemblies, with their high performance capabilities, will only enhance that reputation by ensuring security and continuity of supply.” Porvair – a supplier to the process industry with performance-driven filtration equipment for over 30 years – prides itself on being able to offer high quality, cost effective filters for all stages of the purification or separation

at the filtration specialist’s US factory in Ashland, Virginia. The TEFs and mesh fuses were fitted into tubesheets and installed into five vessels, manufactured and supplied locally by Sagisa. The complete vessels were then

re-installed and operating once more at the same high performance level. PetroSA engaged Sagisa and Porvair to execute this project based on their previous reliable performance for the TEF quality and service provided. The project was completed exactly on

process. Sagisa improves their customers’ existing purification and filtration processes by applying their knowledge excellence and by using the best products available to achieve cost effective and precise outcomes.

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# twenews

Eni makes world class supergiant gas discovery in Egypt

© Goran Bogicevic | Shutterstock.com Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery well Zohr 1X NFW is located in the economic waters of Egypt’s Offshore Mediterranean, in 4,757 feet of water depth (1,450 metres), in the Shorouk Block, signed in January 2014 with the Egyptian Ministry of Petroleum and the Egyptian Natural Gas Holding Company (EGAS) following a competitive international Bid Round. According to the well and seismic information available, the discovery could hold a potential of 30 trillion cubic feet of lean gas in place (5.5 billion barrels of oil equivalent in place) covering an area of about 100 square kilometres. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural-gas finds. This exploration success will give a major contribution in satisfying Egypt’s natural gas demand for decades. Eni will immediately appraise the field with the aim of accelerating a fast track development of the discovery that will utilise

reservoir characteristics (400 metresplus of net pay). Zohr’s structure has also a deeper Cretaceous upside that will be targeted in the future with a dedicated well. Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister, Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail. “It’s a very important day for Eni and its people. This outstanding result confirms our expertise and our technological innovation capacity with immediate operational application, and above all shows the strength of the cooperation spirit amongst all the company’s units which are at the foundation of our great successes. Our exploration strategy allows us to persist in the mature areas of countries which we have known for decades and has proved to be winning, reconfirming that Egypt has still great potential. This historic discovery will be able to transform the energy scenario of Egypt in which we have been welcomed for

made in Egypt which is strategic for Eni, and where important synergies with the existing infrastructures can be exploited allowing us a fast production startup‘, Claudio Descalzi commented. Eni, through its subsidiary IEOC Production B.V., holds a 100% of the Contractor’s working interest in the Shorouk Block and is the operator of the concession. Eni has been present in Egypt since 1954 through its subsidiary IEOC, a company which has always been a frontrunner in exploring and exploiting gas resources in Egypt since the discovery of the Abu Maadi Field in 1967. By adopting new exploration concepts, leading edge technologies and operational approaches, through AGIBA and Petrobel, operating companies participated by IEOC and EGPC, Eni has successfully managed to double production of oil from the Western Desert and the GOS Abu Rudeis Concessions in the last three years as well as to revamp production from the Abu Maadi plays in the

at best the existing offshore and onshore infrastructures. Zohr 1X NFW was drilled to a total depth of approximately 13,553 feet (4,131 metres) and hit 2,067 feet (630 metres) of hydrocarbon column in a carbonate sequence of Miocene age with excellent

over 60 years. The exploration activities are central to our growth strategy: in the last 7 years we have discovered 10 billion barrels of resources and 300 million in the first half of the year, confirming Eni’s leading position in the industry. This exploration success acquires an even greater value as it was

Nile Delta area following the recently announced Nidoco NW 2 discovery (Nooros prospect) currently already in production. Eni is the main hydrocarbon producer in Egypt, with a daily equity production of 200,000 barrels of oil equivalent.

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NEWS

DONG Energy acquires Hornsea Zone in the UK On 21st August, DONG Energy acquired the Hornsea zone and the project rights to Hornsea Project Two and Three, which have the potential of 3 gigawatts (GW) offshore wind capacity. This follows DONG Energy’s acquisition of Hornsea Project One, a 1,200 megawatt (MW) offshore wind project in the Round 3, which was announced in February 2015. The Hornsea zone projects form one of the world’s biggest offshore development zones. The acquired Hornsea Zone Projects Two and Three are expected to form an important part of DONG Energy’s post 2020 project

pipeline. Samuel Leupold, Executive Vice President in DONG Energy said: “We have already invested around £6 billion in the UK, and the Hornsea Zone provides us with new exciting development opportunities, not least because of the sheer size of the project in terms of acreage as well as the high generation potential. This will help us in our committed efforts to reduce costs of electricity and maintaining our position as global leader in offshore wind beyond 2020.” Leupold added: “Today’s announcement underlines our strong

commitment to helping the UK deliver low carbon energy supplies while creating jobs and building a strong local supply chain.” DONG Energy is acquiring the Hornsea Zone from Mainstream Renewable Power and Siemens Financial Services. Following the takeover, DONG Energy will, as the sole owner, assume responsibility as lead developer of the whole Hornsea Zone. The Hornsea Zone is located between 31 and 190 km off the Yorkshire coast and covers more than 4,000 square kilometres

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Use solar, save lives Editorial: Ajuanne Payne

Key to the most successful design is simplicity; how do you solve a problem in a way that is cost effective, environmentally sustainable and easy to use? Evans Wadongo did just that when he developed his MwangaBora solar lamp, and in this month’s Total World Energy we delve into exactly how his design has helped evolve rural energy consumption in Kenya… PAGE 12

EVANS WADONGO

According to the World Bank’s most recent data, only around 20% of Kenyan citizens have access to electricity and it is subsequently estimated that a third of the population rely on kerosene lanterns for their lighting needs. This means that every evening across the country, thousands of Kenyan children sit down to do their homework by kerosene-powered light. Using kerosene is not only expensive, meaning many families cannot afford to run the lamps for too long, but ineffective. The light provided by a kerosene lamp is dim and difficult to work by, impacting negatively on the education of children who rely on them. Taking aside the economic and educational concerns, the smoke from the lamps is bad for the environment and bad for health. The United Nations Environmental Program says that in rural areas of Kenya more women die of smoke-related illnesses than they do of tuberculosis and malaria and the chemical agents in kerosene lamps have been linked with health issues ranging from cancer to respiratory illnesses. One man who is addressing this issue is Evans Wadongo, the 29-year-old entrepreneur from the West of Kenya. Growing up in a rural community to teacher parents, Wadongo walked 10 km a day to go to school and experienced first-hand the difficulties of a lack of clean energy at home. Wadongo graduated his high school with top marks, was among the top 100 best students for 2002 in Kenya’s

volunteering and realised that he wanted to use his talents to address issues in rural communities like the one he grew up in. “I wanted to create something – a simple design,” explained Wadongo in a Design Indaba interview. “I could read in the media and watch television and see very sophisticated solutions coming up to solve energy problems, but they were not really relevant to us, were not really trickling down. So, in my first year I decided to create a simple design for a solar lamp called MwangaBora.” MwangaBora is a Swahili word meaning “good light”, and Wadongo wanted to create something that would be easy to construct and use, naming the entire project ‘Use solar, Save Lives’. The lamp is made from over 50% recycled materials and sells for around $25 through the non-profit Wadongo founded in 2006 called Sustainable Development For All – Kenya (SDFA-Kenya). SDFA-Kenya operates throughout all regions of the country delivering the ‘Use Solar, Save Lives’ initiative and has directly influenced the lives of thousands of Kenyans. “We have versions which have a USB port for charging mobile phones - simplicity is key for me in design,” explained Wadongo of the project. But, the young entrepreneur is not satisfied with just one solution – he wants his innovation to provide solutions to as many issues as it can. “We have been able to train over 1,000 youth to make the MwangaBora solar lamps and we specifically target youths who have dropped out of

businesses. We are able to leave them with skills and a way to earn a living every day.” Wadongo’s work is very much centred on creating a design that solves socio-economic issues. Not only does the design address the issues countered above, but having a good source of light at home means that the children of families with a MwangaBora lamp can study properly for school and fulfil their own potential for achieving great things as Wadongo has. The entrepreneur’s invention is a direct example of how access to reliable, clean energy has a direct effect on a range of important areas of progression. Wadongo has received international recognition for his innovative design and successful implementation. He was voted one of CNN’s top 10 heroes of 2010 and was awarded ‘Social Entrepreneur of the Year’ by the Schwab Foundation in 2011. The entrepreneur is expanding his efforts beyond Kenya to Malawi and other surrounding countries and co-founded GreenWize Energy Ltd. In 2013, a for-profit social enterprise that designs and implements renewable energy solutions. In much the same way that mobile communications leap-frogged the slower progression of landline and cable infrastructure in Africa, it is expected that local, sustainable means of power production will outpace the slower improvements in state energy infrastructure on the African continent – and it is innovators

Certificate of Secondary Education exams and went on to complete a Bachelor of Science degree in Electronics and Computer Engineering at Jomo Kenyatta University of Agriculture and Technology. While at university, Wadongo was actively involved in charitable

school because of poverty issues,” explains Wadongo, “then we work with women in their own communities. We train them on micro-entrepreneurship and support them to start saving the money they would have otherwise spent on kerosene, and by using those savings they are able to create

and entrepreneurs like Wadongo that are driving this change. Wadongo was torchbearer for Kenya in the 2012 London Olympic Torch Relay, and is torchbearer for a new wave of energy entrepreneurs in the African continent PAGE 13

Editorial: Ajuanne Payne

In the midst of the renewables revolution, technological advancement and innovation is progressing at an exponential rate and making the race towards a carbon neutral future finally seem like one we can win. This issue we look at the pioneering work of Tesla; the company released its Powerwall home battery earlier this year – potentially providing the solution to powering your home on solar power alone without any need for connection to an electricity grid. Here at Total World Energy we have the enjoyable problem of having to select just one innovation to focus on each month, but for this issue it was perhaps not as difficult as usual. In the renewables revolution we are currently experiencing, Tesla, the company at the forefront of electric vehicle innovation and headed by the inimitable Elon Musk has come up with a highly efficient home battery

grid network, but has much more farreaching potential benefits. It has been somewhat of a consensus in the ongoing climate debate that in order to achieve a reduction in emissions in enough time to combat global warming and still provide for the world’s power needs, we will have to utilise nuclear power as a reliable way of consistently producing energy. Although statistically considered

may be able to develop the technology and restructure to the extent where nuclear power also becomes obsolete? Can we change energy infrastructure so that consumers can produce enough power at home for their own needs, without impacting the environment? Earlier this year a very real solution presented itself in the pioneering work of the team at Tesla. The company

that would effectively solve any issues with consistency of supply when using electricity from rooftop solar panels. This new power storage technology not only has the potential to provide consumers with an affordable, effective way to become independent of a national

relatively safe, on the occasion that accidents do happen the consequences are devastating – take Fukishima as an example. But one thing that may have been underestimated is our own human ingenuity – is it so inconceivable that we

entered the energy market with a bang, announcing its new suite of cost-effective solar batteries in April of this year for use in homes and businesses – the Powerwall. Tesla’s charismatic CEO has always wanted to build technology and innovation to contribute towards a sustainable energy

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INNOVATION

future – and has consistently stated that his work has the central goal of progression in the areas of “space, solar and electric cars.” “The goal is complete transformation of the entire energy infrastructure of the world, to completely sustainable zero carbon,” Musk explained at the Powerwall launch event at the Tesla facility in California. Retailing at around US$3,000 in the US, the Tesla Powerwall can store up to 10kWh of power from wind or solar panels for use when sunlight is low at peak times such as evenings and early mornings, when grid electricity costs are much higher. The battery will also add energy security to the home, providing a reliable backup in the case of a power outage and will be guaranteed for 10 years. The potential for Powerwall is

The aesthetically pleasing and surprisingly compact device (around four feet by three feet) is available in a range of colours and is expected to go on sale in the United States later this year, with international roll out expected for 2016. The quality of life potential for Powerwall is also significant – the technology could be a huge advantage in under-developed regions where power supply is unreliable, even in the event that solar power is available. “This is going to be really great for the poorest communities in the world,” Musk explained. “This allows you to be completely off grid.” The lithium-ion batteries are recyclable and don’t pollute when discarded. In order to ensure production for what the company anticipates to be a healthy

could potentially be starting a business in Tesla energy that will eclipse what is currently Tesla Motors. The CEO’s long-term goal is to help move the large economies of the world, such as the United States, away from fossil fuels altogether – using the Powerwall energy storage option as the starting point. Musk has repeatedly stressed that Tesla’s focus is not on profits but on innovation – with capital being ploughed back in to research and development. A by-product of this focus on quality and innovation over profits is, ironically, a healthy profit margin as the company and its CEO have built up a reputation for excellence. Musk explains what drives him to focus on innovations such as the

immense – once fitted on a wall in a house the battery could theoretically make solar-powered homes completely independent of the electricity grid, making significant cost savings and eliminating the consumers personal emissions at home in one fell swoop.

demand, Tesla announced construction of the world’s largest lithium-ion battery plant in Nevada last year, an investment worth US$5 billion to be built in partnership with Japanese electronics giant, Panasonic. Embarking on this new side to the business, Musk and his team at Tesla

Powerwall: “my interest in the future of humanity comes from asking the questions, what is important? What is the meaning of life? And I came to the conclusion that what we really need to do is make sure that life continues into the future.”

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Fuelling natural gas transmission Editorial: Annabelle Withering

Fluxys has been at the helm of many firsts in the industry – most notable perhaps is the Zeebrugge LNG terminal, which offers a convenient gateway to LNG supply in North-Western Europe. Currently undergoing expansion, on completion of its contract with Yamal LNG scheduled for 2019, the terminal’s storage capacity will increase by 180,000m³. Total World Energy speaks with Fluxys’ Communication & Public Affairs Manager, Rudy Van Beurden, to find out more… Liquefied natural gas (LNG) is, as the name suggests, a natural gas that has been converted to a liquid state for the ease of both storage and transport. A cost efficient alternative to compressed natural gas (CNG), especially in terms of transportation over long distances where pipelines are non-existent, LNG is carried by

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specially designed Cryogenic sea vessels. With LNG production steadily on the rise, it is expected to hit 10% of the global crude production by 2020 and sits favourably as one of the best potential solutions for future energy. The Zeebrugge LNG terminal,

located on a 30ha site in the outer port of Zeebrugge, Belgium, was commissioned in 1987 and was, at the time, the first LNG terminal in North-West Europe. Supplying loading and unloading facilities for LNG carriers, it has an annual throughput capacity of 9 bcm of natural gas.

FLUXYS Owned and operated by Fluxys LNG, part of Belgian independent natural gas infrastructure company, Fluxys Belgium; the terminal offers a convenient gateway to LNG supply in North-Western Europe. LNG which is unloaded at the terminal can be redelivered for consumption on the Belgian market, re-loaded for export, traded on the Zeebrugge hub or transmitted to end-user markets across Europe – including the UK, Germany, France and the Netherlands.

ZEEBRUGGE LNG TERMINAL The Zeebrugge terminal is currently undergoing extensive and important upgrades to help support year round deliveries of LNG, firmly cementing its position as an integral LNG hub in NorthWestern Europe. In March this year, Fluxys and Yamal LNG signed a 20-year contract for LNG transhipment at the Zeebrugge terminal, helping to enhance transhipment of LNG by up to 8-tons per year. In the meantime, Fluxys has already

invested in a second jetty which is currently under construction and set to become operational in the coming months. This new platform will be key in assisting with logistics and transportation, subsequently resulting in an expected and significant increase in ship movements at the terminal, allowing berthing of LNG carriers with a capacity of 2,000m³ – 217,000m³. During the winter months, Arctic LNG tankers will also transit via the LNG terminal. With the new platform expected to double traffic at Zeebrugge, additional storage is subsequently needed so the extensive upgrades will also include the construction of a fifth LNG storage reservoir, with a capacity of 160,000m³ of LNG, it is set to be completed in 2016. Upon completion of the ongoing investments in 2019, LNG traffic will more than double and will see Yamal LNG making full use of its contractual capacity. Speaking with Fluxys’ Communication & Public Affairs Manager, Rudy Van Beurden, he explains the importance of these upgrades, not only for LNG but for Fluxys and Belgium too: “We try to stay

ahead of what the market is looking for, there is a new market developing in small scale LNG where LNG would be used mainly as a fuel for vessels and trucks, so that’s why we want to be ready and offer the services for this new market. “This is the key reason why we are building a second jetty, not only to extend the capacity of the additional terminal, but with the second jetty able to receive vessels as small as 2,000m³, with both jetties we will now cover the whole range of LNG vessels from the smallest to the biggest vessels in the world. It will also allow the transfer between ships – all made possible from the Zeebrugge terminal.” Beginning his career as an air force officer, Rudy Van Beurden was present during the creation of the Zeebrugge trading hub. “I became responsible for gas flow and over time, I went into commercial business and became accountable for international business development until 2012 before my current role as Communications & Public Affairs Manager.”

©Fluxys - P. Henderyckx

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LNG FOR TRANSPORT? The move for LNG to be used as a substitute fuel for transport, especially in large road truckers, has already seen wheels set in motion, with China and America proudly jumping on, metaphorically speaking, the LNG-run bandwagon. Whilst the concept in Europe has seen a much slower admission, it has, in recent years, experienced a notable increase in interest and implementation with the Netherlands recently introducing LNG powered trucks into the transport sector. Fluxys is already playing an integral role in fuelling its strategy for LNG transport across Belgium – completing the construction of an LNG truck filling station at the end of last year – it will be supplied by tanker trucks from the Zeebrugge terminal. “We promote and stimulate additional downstream investment that is needed

to develop this skilled business,” Van Beurden explains. “We have already invested in an LNG fuelling station and we think this business will take off. Although it is a little harder for LNG to compete with the current fuel prices, we hope this is only temporary.” A more sustainable alternative, Van Beurden explains the company, as part of its commitment to maintaining greener initiatives, is stimulating the use of natural gas for vehicle transportation, helping to reduce the carbon footprint. “We have initiatives in place - we started it together with other European TSOs - for a commitment to achieve a completely carbon free gas business by 2015. We were among the first who created this initiative. We want to stimulate developments like power to gas and the use of LNG to replace other fuels. We are working together with the other companies who have their own knowledge and also looking into the

possibilities of using more biogas.” A major milestone, Mattheeuws Eric Transport and Fluxys officially inaugurated the LNG filling station on the premises of the haulage company in Veurne, in October 2014. Eric Mattheeuws, CEO of Mattheeuws Eric Transport and winner of the Green Truck Award at the Transport & Logistics Awards 2014, said: “The switchover to LNG means a drastic reduction in emissions and has considerable financial advantages as well. With Fluxys’ investment in the LNG filling station, the logistics supply chain is now complete. We have developed a unique partnership with Fluxys, Eni, Volvo Trucks and Romac Fuels to promote LNG as a valid alternative to bio-petroleum. I’m convinced that LNG is the future.” “Fluxys wants to break the vicious circle in which the development of LNG infrastructure for transport finds itself: transporters are holding off on switching

Over the last ten years Denys has evolved into an international group with more than a thousand employees. Denys strives for organic growth. We don’t innovate in one specialism, but as a total business in several disciplines: water, energy, mobility, refurbishment, civil engineering, special techniques and other specialised building techniques. Together all these disciplines form a total business, the Denys Group, a preferred partner for the most complex building projects and infrastructure work. In order to provide maximum space for that diversified growth, we have been working steadily on expanding internationally. Our expansion is stable and sustainable, and deeply rooted in years of experience and technical competences. Today we have a firm foothold in Europe, North Africa, Sub-Saharan Africa and the Middle East. We are busy exploring markets such as Asia, Central and South America and Canada. In addition, we are not shy of forming constructive partnerships in publicprivate ventures, where the responsibility of the contractor is much greater. But the biggest success factor behind our growth is the enthusiasm and creativity of our personnel. At Denys we love a challenge; it’s in our blood. Tell us your dream, and we’ll send you a team of enthusiastic engineers to make it come true. Welcome to Denys.

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“We have a good reputation - once you have this, it is easier to find partners and financing” Rudy Van Beurden Communication & Public Affairs Manager PAGE 20

©Fluxys - P. Henderyckx

FLUXYS to LNG for lack of filling stations and too few filling stations are being built because the customer base is lacking. By joining forces with transporter Eric Mattheeuws we have lowered the threshold for other transporters to make the switch to LNG as a sustainable alternative to diesel,” Walter Peeraer, Fluxys CEO, said.

A SUCCESSFUL GROWTH STRATEGY Operating assets, storage and LNG in the country, this Belgian company has successfully developed a growth strategy and is now active in nine other countries, including; Switzerland, France, the UK (through the interconnector), leading on into Greece and Albania. One of the first companies to expand from its base into wider Europe, it wasn’t long before others followed suit, including the Spanish company, Enagás. In a strategically important acquisition, both companies joined forces to acquire Swedegas in a 50/50 venture in March this year. Operator of the Swedish gas transmission grid, the venture will no doubt lead to looking at developing the LNG market in Sweden in the future too. “With Enagás and Fluxys, Swedegas will have new, strategic owners with similar core operations as ours. They have extensive knowledge of the European gas market and they share our ambition to invest in smart, sustainable energy solutions”, said Lars Gustafsson, CEO of Swedegas. Continually looking at opportunities to invest in further acquisitions, Van Beurden explains Fluxys is also involved in France’s new LNG terminal in Dunkirk, which is on schedule to be ready by the end of the year. Built by EDF, Fluxys holds a 25% stake and is actively involved in operating the facility. Representing an additional capacity of 13bcm of natural gas per year, it is hoped that Dunkirk will help to contribute in enhancing the security of

supply and the blossoming natural gas market in North-Western Europe.

FUTURE PLANS So, with the aid and implementation of new innovation and technology and secure funding, can LNG, as an alternative to fuel, be a viable option for the transportation industry in the future? “From our point of view, it is the ideal combination with renewables, because it is not too costly and it’s very flexible. Also, the grids are there so you don’t need to invest a lot,” explains Van Beurden. With the recent issues surrounding lower coal prices and the subsidised renewables industry, the use of gas for power generation isn’t necessarily a top option but Van Beurden says the company remains hopeful for the future: “We hope this is something that could change and something that we will be able to compete against on a fair basis with the other sources of energy.” A company with such an extensive history behind it, with many acquisitions and project involvements along the way, Van Beurden explains much of the company’s long-running success can be attributed to being proactive and accepting of inevitable changes along the way. “We’ve always been quite proactive – when we created the trading hub in Zeebrugge, it was at a time when we were not a particularly large company so making the decision to introduce competition is a difficult choice when you’re still an integrated company but of course, you always try to look further. We are not closing our eyes to the future and we know that the future is changing and we are trying to stay ahead.” Creating an independent business model has also been key to the

company’s longevity and continued reliability within an increasingly competitive market space. “When we became a fully independent operator, we said that we now have our own business, so we have to create our own business model. So we were one of the first to step into projects outside of our own country,” explains Van Beurden. “At the time, there was not much competition, but in the meantime, competition has picked up so we are continuing to look at how we can maintain our growth. “I also think being very flexible is key - sometimes you have to be quick and because we are not a large company, our people can be flexible and act quickly. We have a very good understanding between our management and shareholders which is vital if you want to instigate quick and important decisions,” he adds. Perhaps top of the pile of this success though is the company’s long-standing reputation, helping it to build a good partner-base and securing financing. “The setup of how we are working and how we look towards the future, we are realistic, we don’t see our business as just gaining money purely doing what we have to do as an operator, but we see ourselves as a commercial company who wants to develop more business. This is why we try to look into small scale business, such as reloading services for LNG. “We have a good reputation once you have this, it is easier to find partners and financing. They know that you’re a trustworthy party who is looking carefully and not taking unnecessary risks. Our risk appetite is not too high, but being there and ready to step in, can certainly be attributed to our success,” concludes Van Beurden

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Exploring the undiscovered path Editorial: Annabelle Withering

Hollandia Offshore is intent on providing and offering reliable and resilient solutions for the day-to-day and for the unavoidable challenges of tomorrow â&#x20AC;&#x201C; â&#x20AC;&#x153;For generations these are the challenges that inspire us to exceed ourselves.â&#x20AC;? With extensive knowledge and experience, the company refreshingly looks to push the boundaries within the offshore steel construction industry, providing a reliable and innovative solution.

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HOLLANDIA OFFSHORE Forming the backbone of so many of the structures that surround us today – much of mankind’s development and prosperity would not have been possible if it weren’t for one of the most widely used metals: steel. Having a major impact on our daily lives, the durability, versatility and strength of steel makes it a continually firm choice for contractors worldwide. An easily adaptive and recyclable material, steel poses many other benefits – namely, that it has helped to reduce carbon emissions in construction significantly since the 1980s. Not to mention that it boasts low production costs, is easy to weld, corrosion resistant and hot and cold formable. Used in a magnitude of constructions, you only need to look around you to see its presence – in the cars we drive, the buildings in which we work and call home, the tools we use in our daily tasks and the natural gas pipelines supplying us vital energy. Hollandia, headquartered in The Netherlands, has been contributing towards the European steel evolution since 1928. Working in an array of different industry sectors, including the petro-chemistry and power station industry building complex and extensive offshore installations - Hollandia also work on operation sites, warehouses and factories and in non-residential construction projects which involve large shopping mall builds and car parks.

An ideal partner of choice for the maintenance and management of steel constructions, Hollandia provides clients with the design, engineering, production, manufacturing, transport and assembly of steel constructions, high-tech systems and half fabrications. Established in 1928 as a subsidiary of Amsterdamse Ballast Maatschappij, Hollandia has undergone many acquisitions and mergers since the 1970s with Kloos Kinderdijk, Bailey Nieuw Lekkerland, ZNScompanies Fijnaart, Grimbergen Alphen aan den Rijn and Kalmar (Nelcon) Rotterdam. However, in 2005, Hollandia’s associate companies, Bailey and Grimbergen came together with Hollandia under a single umbrella at the former Van der Giessen-De Noord site at Krimpen aan den IJssel. Three years later and Hollandia and ZNS fully merged to form Hollandia. Hollandia Offshore, with its head office at Krimpen aan den Ijssel, also has a branch office at Heijningen in the southern region of the Netherlands. The division exercises its offshore expertise and services in the oil & gas sector, offshore equipment and wind energy industry. Offering a turnkey solution to oil & gas customers, Hollandia Offshore takes responsibility for the entire project, from the initial design, through to final realisation, ensuring both the logistics and cost efficiency. With over eight decades working within the steel industry, Hollandia Offshore utilises this knowledge to

both design and construct the essential components for offshore vessels – maintaining its long-standing reputation for quality and reliability, solutions include parts for stingers, J-Lay towers, fixation systems, jackets and heavy-lift cranes. The company explains: “Our project organization is well acquainted with the specific safety regulations of (petro) chemistry industries and powerstations which is why we can deliver all sorts of steel constructions for crackers, equipment, operating platforms and pipe bridges. If desired, provided with roof- facade sheeting, doors, windows and additional finishing. In addition we construct and deliver onshore modules like PAU’s and PAR’s, for example, LNGterminals.”

OFFSHORE WIND ENERGY With the demand for sustainable and reliable energy dramatically on the rise, Hollandia Offshore has placed its experience into the development and construction of the offshore wind energy industry, proving its longevity as a trustworthy and knowledgeable contractor for transformer substations, essential in offshore wind developments. Even though the installation of offshore wind turbines requires a much higher initial investment compared to onshore wind farms, the results are certainly considerable. Inviting higher levels of reliability and steadier yields, this means an increase in full-load hours and so produces a significantly higher yield per turbine to onshore wind farms, in comparison. In 2009, the Strukton-Hollandia

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Joint Venture was established by Strukton Systems bv and Hollandia bv. Integrated with the aim of becoming a reliable and resilient partner for wind farm operators and investors for the turnkey delivery of offshore high voltage substations – one such project is the DanTysk offshore wind farm, located 70km west of the island Sylt, in the German EEZ. A joint venture between Vattenfall (51%) and Stadtwerke München (SWM) (49%), the project consists of 80 turbines, each supplying 3.6MW. The

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development hopes to produce enough electricity to power over 200,000 homes annually and reduce CO2 emissions by an estimated 412,000-tons every year. CEO, Dr Florian Bieberbach at SWM, said: “In terms of capital investment as well as installed capacity, DanTysk is our largest completed renewable energy project to date.” Officially commissioned in April of this year, with a reported investment of EUR 1 billion, the first turbine for the project was installed back in April 2014 with the last installed just four months

later. All 80 turbines were supplied by Siemens, also responsible for the supply, installation and commissioning of them. “We’re very pleased to be able to report the beginning of power generation from DanTysk,” said Gunnar Groebler, head of renewables business in Continental Europe/UK at Vattenfall. “With this project and its sister project Sandbank, which will follow in 2015, we are making a significant contribution to the further expansion of renewable energy in Germany.” Strukton-Hollandia was contracted for the engineering, procurement, installation and commissioning of a fully enclosed, sea water cooled 288MW offshore substation for the DanTysk project. Responsible for the transportation of the power

HOLLANDIA OFFSHORE produced by the 80 turbines to a MVDC converter station, it forms part of Sylwin Cluster’s grid connection. Power is then transported to the mainland via a 210km direct current (DC) cable to the Büttel substation, before it is fed into the German extra-high voltage grid. The substation has been designed with three decks, a helicopter landing pad and due to its location from shore, it also includes a petrol station. Completed and installed in August 2013, the substation construction took two years – leaving Hollandia shipyard in Krimpen on July 23rd the same year. Oleg Strashnov, the heavy lift vessel, was used to attach the 3200-ton topside to its

jacket foundation at the offshore development site, which took just under a week to complete with the aid of 200 workers.

NOTABLE CONTRACTS With a strong focus on leadership, Hollandia Offshore believes in exploring the undiscovered path, offering reliable and strong solutions not just for day-to-day, but for the inevitable challenges of tomorrow. Its main base in Krimpen aan den Ijssel is in a leading and highly competitive position fully equipped with different modern production halls, the latest tools, laser and paint facilities, ample storage space, dock, offices and a sit

out square, it now stands as one of the world’s very finest production facilities spanning across 13000m2. Conveniently located, the North Sea is within easy reach of the site, directly connected through the surrounding rivers. The hub also allows the company to fabricate structures up to 4000-tons – fabrication halls 10 and 11 are 40m wide and 80-100m long. The Strukton-Hollandia joint venture took shape once more as it was contracted for the Riffgat wind project – responsible for the turnkey delivery of the offshore highvoltage substation to the development site. Located within the 12-nautical

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miles zone at the North Sea, the Riffgat site has been built northeastern of the Dutch island of Schiermonnikoog and is owned and operated by EWE (90%) and ENOVA (10%). StruktonHollandia’s contract involved the engineering, fabrication and offshore installation of the 33/155 kV high voltage substation to connect the 30 3.6MW wind turbines to the German grid. Fully commissioned in March 2014, the first turbine was initially installed in May 2013. With an investment of an estimated EUR 480 million, Siemens was contracted to install, connect and commission the 30 wind turbines with an additional five-year maintenance

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“It strengthens the position of Hollandia Offshore as one of Europe’s leading fabricators for offshore structures for the wind industry”

plan in place. The total installed capacity of the 113.4MW wind farm, recently upgraded from 108MW, is expected to supply 100,000 German households with reliable and eco-friendly electricity – the wind farm has now been supplying to the German grid since February 2014.

CLOSE RELATIONSHIPS Contracted by Saipem, subsidiary of global Italian giants ENI, Hollandia Offshore undertook the fabrication and outfitting of three stinger sections for the Castorone vessel. A dynamically positioned deepwater iceclass pipe laying barge, it has been designed for operations in locations and environments

HOLLANDIA OFFSHORE which are particularly harsh and unwelcoming. Last year, it was employed on the 219km-long Walker Ridge oil export pipeline, which connects Chevron’s Jack and St Malo fields in 2,140m of water, north to a Shell-operated platform in Green Canyon block 10. Building a successful relationship with Saipem, Hollandia Offshore was contracted once more to deliver the first pair of cable crossing sleepers for the South stream gas pipe line project in October last year. An efficient delivery, both sleepers were loaded following just a two month period for fabrication, painting and assembly. The company attributes the efficiency of the high quality steel fabrication project to the very close cooperation between the Hollandia project management team and Saipem technical staff. In a separate contract for Saipem, the great S44 launch barge left the quay of Hollandia Offshore last October following a total installation of 2300-tons of new steel with the loading of new and modified skid beam sections, outrigger girders and both the starboard and port side rocker arms. At a total length of 190m, a width of 50m and depth of 11.5m, the S44 is by far the largest barge ever to moor at the Hollandia Quay. The S44 is scheduled to launch the enormous Mariner Jacket in the summer of 2015. In March this year, Hollandia Offshore was appointed by the Danish power transmission company, Energinet.dk, with the procurement, fabrication, load out and transport of the Horns Rev C Jacket, which is to be installed on the Horns Rev 3 Offshore wind farm, located off the coast of

Denmark. Scheduled to be delivered in April 2016, the jacket has been designed for water depths of 16.5m with a structural weight of 1600-tons. A 4-legged space framed jacket with leg piles, the stability of the jacket has been provided by suction cans that are placed on each corner during pile driving and grouting. The project is being undertaken at the Hollandia Offshore’s Krimpen aan de Ijssel yard with most of the fabrication works taking

place indoors in one of the company’s newly built fabrication workshops. Managing Director of Hollandia Offshore, Nico Noorlander, said of the project: “We are very pleased to receive this award from Energinet. It strengthens the position of Hollandia Offshore as one of Europe’s leading fabricators for offshore structures for the wind industry. We look forward to working together with Energinet on this project and to develop the relationship further for future projects.”

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Generating gigantic value Editorial: Harriet Pattison © Statoil

With production start-up scheduled for late 2019, the first phase of the Johan Sverdrup field development project, located 155km west of Stavanger, Norway, is currently underway. Standing as one of the most significant oil fields to date, it will provide energy – up to three billion barrels of oil equivalents – over the next 50 years.

From mountaineer to lawyer to Prime Minister, Johan Sverdrup was the very first Prime Minister of Norway following the introduction of parliamentarism. Considered the ‘father of Norwegian parliamentarism’, Sverdrup held the post from 1884 to 1889, with his subsequent death just three years later in February, 1892. A liberal candidate, Sverdrup initially worked as a lawyer in Larvik,

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a small town located on the west coast of Oslofjord, before his first election to the Storting in 1851. Often regarded as a controversial leader, his influence on Norwegian politics was undeniable, lasting far beyond his ministerial role.

JOHAN SVERDRUP First discovered by Sweden-based company, Lundin Petroleum, alongside Statoil in 2010, the Johan

Sverdrup field is located 155km west of Stavanger, on the Utsira High in the North Sea. Laying in two separate production licenses, the field was effectively two different discoveries – Avaldsnes (operated by Lundin petroleum) and Aldous Major South (operated by Statoil) – however, after it was revealed that both discoveries would constitute one field, it was re-named Johan Sverdrup and in March 2012, Statoil

JOHAN SVERDRUP was appointed working operator following a signing of the pre-unit agreement between both licensees. The majority of the Johan Sverdrup partners have asked the Norwegian Ministry of Petroleum and Energy to determine the final allocation of resources in Johan Sverdrup, based on the following proposal: Statoil 40.0267%, Lundin Norway 22.12%, Petoro 17.84%, Det norske oljeselskap 11.8933% and Maersk Oil 8.12%. “The partnership has submitted a very good basis for further proceedings to the ministry,” explained Øivind Reinertsen, Senior Vice President for the Johan Sverdrup project. “The Johan Sverdrup development will create ripple effects for the whole society. We look forward to a continued good cooperation with our partners, the authorities and with a competent and competitive supply industry. The field will need the contribution of many suppliers, like a complex

jigsaw puzzle where all pieces must be in place before we cross the finish line. We are excited about getting started,” Reinertsen added.

THE BLUEPRINT Standing as the biggest industrial project in Norway for decades past and no doubt the foreseeable future, the Johan Sverdrup field is to be developed in phases. Daily field production during the first phase is expected to reach 315,000 barrels of oil equivalents, developing up to 2.4 billion boe. Investments for Phase 1 alone, are estimated at US$15.4 billion (NOK 117 billion - 2015 value). Phase 1 of the Johan Sverdrup field development is set to generate some 51,000 man-years alone – of which 22,000 man-years are expected to be delivered by suppliers with 12,000 of these by their respective sub-suppliers. It will consist of four installations, including a utility and living quarters platform, a processing platform, a drilling

platform and a riser platform, as well as three subsea water injection templates - the platforms will be interlinked by gangways. The front-end engineering and design work of the four-platform field hub has been awarded to Aker Solutions, who were given the contract for the detailed engineering phase in January 2015. The platform jacket work has been awarded to Kværner. Power to Johan Sverdrup during Phase 1 will be supplied from shore - helping to reduce total CO2 emissions from the Utsira High area by 60-70% - a transformer on Kårstø will deliver direct current to the riser platform, ensuring an estimated 80 MW. Gassco has been awarded operator for the gas transport system from the field when it becomes operational. Running from the field’s riser platform, the 18-inch pipeline will be tied into the Statpipe rich gas system on the seabed, which lies west of Karmøy, allowing

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its gas to flow to the Kårstø process plant north of Stavanger. Playing a vital role in the transport and treatment of gas and condensate (light oil) from important areas located on the Norwegian Continental Shelf (NCS), the Kårstø processing plant currently stands as the largest of its type in Europe. In February, the plan for development and operation (PDO) for the Norwegian field was submitted to Tord Lien, at the Norwegian Ministry of Petroleum and Energy from Statoil CEO, Eldar Sætre. “This is a great day,” explained Sætre. “We are delivering the PDO for the largest oil discovery on the Norwegian continental shelf since

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the 1980s. Johan Sverdrup will generate value of great importance to Norway through several decades. The field’s economy is robust also at current oil prices.”

PHASE 1 COMMENCES In June earlier this year, the first building blocks of Phase 1 got underway as the machine scheduled to cut the steel for the riser platform jacket was started up. “This is a special day,” Kjetel Digre, Senior Vice President for the Johan Sverdrup development project, said in a statement. “We’ve been working thoroughly for a long time making the preparations for this exciting and complex project. It feels great now that we’ve started

construction on one of the biggest industrial projects in Europe.” The steel jacket for the riser platform is currently being built at Kværner Verdal, weighing in at 26,500-tons, it will stand as the biggest steel jacket in Europe on completion. Due to its substantial size, it is scheduled to be shipped out to the field on the world’s largest barge – the Heerema H-851. The quay at Kværner will even need to go through extensive upgrades to ensure the 260-meter long barge can be facilitated on its arrival. “The steel jacket will also be one of the most complex ever built by the industry. Not only will we route the land-based power through the

JOHAN SVERDRUP jacket, we’ll also be controlling the subsea water injection and exporting the field’s oil and gas from it. In addition, we’re also preparing to tie in future phases of the Johan Sverdrup field development to the riser platform. In building this jacket, we’re in fact making preparations to take in as many as 56 conduits,” Kjetel Digre explained. Kværner is set to deliver the two steel jackets to the development field – for the riser platform and one for the drilling platform – in 2017 and 2018 respectively, in a total delivery value estimated at NOK 3 billion. In a further deal worth NOK 7 billion, the fabrication contract for both the processing and riser topside platforms was awarded to industry leader, Samsung Heavy Industries in June this year. Both topsides will be fabricated at Samsung’s shipyard in South Korea.

The processing platform, weighing an estimated 26,000-tons, will help to ensure oil stabilisation before processing this into rich gas. The riser platform, weighing just under the former at 22,000-tons, will control the oil and gas exports and the water and gas injections. The power cable from onshore will end on this platform – the current is transformed from direct current into alternating current for further distribution to the field center. “Johan Sverdrup is a large puzzle in which many suppliers must deliver with precision, quality and on time in order for us to start production towards the end of 2019, and this contract is yet another important milestone for the Johan Sverdrup project,” Margareth Øvrum, Executive Vice President for Technology, Projects and Drilling at Statoil, explained.

“Samsung has extensive experience in manufacturing such installations and we already have a good partnership with the supplier. They have provided a competitive bid in a tough international competition.” With the topsides for the drilling platform and the accommodation platform awarded to Aibel (EPC) and Kværner Stord (EPC) and the remaining two more recently to Samsung Heavy Industries; all contracts for the four topsides have now been awarded. Additionally, 65% of the equipment packages have been awarded to suppliers with Norwegian billing addresses. In a statement, Øivind Reinertsen, explained: “Johan Sverdrup will generate great values for the whole society for more than 50 years. We have now assigned a broad and strong team in the supply industry to construct the topsides for the four

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platforms. This provides an optimal basis for quality project deliveries on time and cost.” In addition to the construction of the steel jacket and subsequent topsides, the 246-ton template for the wells is also in preparation, set to be pre-drilled on the field from March 2016. It is currently under construction at Vlissingen in The Netherlands.

OFFSHORE LIVING June was evidently the month of awarding contracts for the Johan Sverdrup field as the deal for both the utility and living quarters was settled. The EPC contract, worth NOK 6.7 billion, sees a joint venture between Kværner and KBR for the construction of the topside for both the utility and living quarters platforms. “The market has shown a

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strong interest in this contract, and Kvaerner and KBR have won the contract in tough international competition,” explained Margareth Øvrum. The utility and living quarters platform will consist of two modules - one utility module and one accommodation module. Under the management of Kværner, fabrication of the utility module will be done by subcontractors in Poland and completed at Stord Norway with KBR carrying out the EPC equipment work for the module. The accommodation module will be constructed at Apply Leirvik’s yard in Stord Norway and in Emtunga Sweden. Assembled at Kværner Stord, the topside will have a total weight of around 19,000-tons, with the utility module accounting for 9,700-tons and the accommodation module

9,300-tons. “So far the Norwegian supplier industry has won the main Johan Sverdrup contracts. It is good to see that Statoil and the suppliers jointly are about to break the cost curve to ensure competitive force in a tough time for the whole industry,” Øvrum explained. The utility and living quarters platform will, on completion, constitute the largest living quarters on the NCS with a bed capacity for up to 560 people. Accommodating field personnel for more than 50 years, the platform is set to be completed in the first quarter of 2019 before it is installed at the Johan Sverdrup field using the world’s largest heavy-lift vessel, Pioneering Spirit. All field production control and monitoring activities will be carried out in the control room on the

JOHAN SVERDRUP

platform, which will house all central support systems for the field centre, including emergency power, firewater systems, diesel, heat recovery and freshwater production. The utility and living quarters platform will be connected to the processing platform at the Johan Sverdrup field centre using a gangway. “On plateau, production will account for 25% of all Norwegian oil and gas production,” stated Øivind Reinertsen. “We have now awarded the project’s second main topside construction contract, and we are on schedule to meet an ambitious field development plan with production start on Johan Sverdrup at the end of 2019.” Last month, the first building block was completed and installed onto the offshore project – the subsea template was designed, built and installed by Heerema Marine Contractors. Whilst the pre-drilling

template stands as one of the smallest components of the development, it remains vitally important, playing a key role in the Johan Sverdrup project. Containing eight well shots, the completed template allows production wells to be pre-drilled before the drilling platform is installed in 2018. There is no doubt that the world will continue to depend on oil and gas for many more years yet due to multiple and transferable uses including, but not limited to; food production, transport, heat and the production of everyday items. Sitting as one of the five biggest oil fields on the NCS, the Johan Sverdrup field development is a truly

oil Stat

integral oil field providing sufficient energy for a global and growing economy. Production at the US$29 billion North Sea field is set to start by 2019 and with a projected break-even point of under $40 per barrel, it is expected to produce up to three billion barrels of oil equivalents over the next 50 years. Once production is stable, operating costs at the field are expected to be under $5 per barrel. Now and over the next five decades, Johan Sverdrup will be one of the most important and defining industrial projects in Norway, providing revenue and employment for many generations to come

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Deepwater giants Editorial: Harriet Pattison

Formed from a joint venture, SapuraAcergy has only been in the offshore oil & gas industry for just short of ten years but has already established a recognised and leading position, specialising in the deepwater production, development and installation market. Utilising the Sapura 3000 vessel in many of its offshore contracts, the company places health and safety standards at the forefront of its operations – rewarded with a prestigious award for HSE excellence in 2013. “Since its inception on 9 May 2006, SapuraAcergy has seen tremendous development as a young company [...] establishing itself as a regional company capable of multiple projects. All our projects are a true reflection of the versatility of our company. We are committed in delivering successful projects to

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our client’s satisfaction. This belief stems from our passion to excel and desired to be the leading solution provider for deepwater construction in the Asia Pacific region,” explains Richard Leetham, CEO of SapuraAcergy. A joint 50/50 venture between Subsea 7, a global leader in

seabed-to-surface engineering and construction and SapuraKencana Petroleum Bhd, which stands as one of the world’s largest integrated oil and gas service providers, SapuraAcergy is now, nearly ten years on, a leading engineering and construction contractor for the regional offshore oil and gas

SAPURAACERGY industry. Based in Kuala Lumpur, Malaysia, SapuraAcergy holds a strong, leading position in deepwater construction development across Asia Pacific regions and with involvement in many high-profile and complex projects, it has secured a steadfast reputation.

DEEPWATER PRODUCTION Ventures into deeper and more remote offshore areas are becoming far more frequent with fewer remaining easy access oil fields in production. With further investment from the oil industry into these harsher locations in the search for lucrative hydrocarbons, resulting discoveries are helping to create major opportunities for offshore oil and gas producers. The depths that investors are now looking to have reached a staggering 3500m, with distances of up to 650km from shore. Of course, managing such depths and distances will inevitably

create challenges in the design, deployment and operation of subsea facilities, deepwater platforms and in the reassurance and continued necessity of strict health and safety standards. While historic deepwater locations have primarily focused on the offshore ‘Golden Triangle’ – basins located in Brazil, West Africa and the Gulf of Mexico (GOM) - new and prolific regions are now starting to crop up as a result of technological advances, higher oil prices and recent deepwater exploration successes. East Africa, the Mexican side of the GOM and Brazil’s pre-salt region are all new, exciting and emerging markets within the oil & gas industry, helping to increase demand in investment for future deepwater field development projects. Of course, with new advancements in technology and continued commitment to these deeper, more remote

regions, companies will need to employ continued innovation, a strategic outreach and sustained investment. One such region starting to engrain its mark within the deepwater industry in recent years, is Malaysia.

DELIVERING DEEPWATER ENERGY The Gumusut-Kakap Field, first discovered in 2003, is operated by Sabah Shell Petroleum Company Limited (SSPC) which owns a 33% stake in partnership with ConocoPhilips Sabah (33%), Petronas Carigali (20%) and Murphy Oil (14%). Using advanced technology to safely produce and pipe oil from the field, it stands as Shell’s first deepwater project in Malaysia. Set to dramatically impact on the country’s energy needs, it sits 1200m beneath the surface and is located 120km off the Sabah coast.

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With an annual peak oil production of 135,000 barrels a day, the platform will contribute up to 25% of Malaysia’s oil output. Built entirely in Malaysia, the Gumusut-Kakap field hopes to boost regional companies and help in the government’s ongoing aim to create an offshore industry hub within the country. With oil production now under way, work on the gas injection facilities will continue with an expected start-up this year. In November 2008, SapuraAcergy was awarded the contract for the development of the deepwater field in blocks J and K – largely due to its deepwater and J-laying expertise. In a contract worth a reported $800 million, it included the engineering, procurement, transportation and installation of an oil export pipeline using J-lay and S-lay methods, catenary risers, flowline jumpers and mooring arrangement for the semisubmersible Floating Production System (FPS), including towing to the offshore location and installation. Covering a duration of more than five years, the installation works were finally completed in November 2013 and due to the magnitude of the project, were undertaken in three phases; 2010, 2011 and 2013. Using six Wartsila 32 4000kw engines, the Sapura 3000 was the perfect vessel and was utilised throughout the Gumusut-Kakap Field project. Spending a total of 460 days offshore, it was used to install the subsea facilities including the pipelines using both its S-lay and J-lay capabilities. The vessel’s role also extended in helping with the wet storing and recovery of the SCRs, with six of

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the ten stored on the seabed in preparation of the arrival of the FPS (Floating Production System) to site. SapuraAcergy explains: “HSE Performance throughout the project was given the highest attention. This applied not only to the Sapura 3000, but to all suppliers, fabrication sites and support vessels. The Sapura 3000 had an excellent record of zero lost time injuries throughout the 460 offshore days. In addition, the safety performance was recognised by Shell, with a prestigious award for HSE excellence being received in 2013.”

“In all our projects, we ensure and emphasise the highest standards and safe project delivery” SAPURA 3000 An innovative and state-of-the-art piece of equipment, the Sapura 3000 is a dynamically positioned, heavy lift and pipelay construction vessel, standing as the most advanced deepwater construction vessel in the Asia Pacific region. At 151m long and 38m wide,

it uses a 3000-ton main crane and is supported and recognised by a 240t S-lay system and 400t J-lay system. Equally suited for conventional shallow water platform installations too, its operation capabilities are enhanced further though the installation of two workclass remotely operated underwater vehicles (ROV) – the Acergy Core Vehicle, one of the most advanced ROV systems available. Able to house up to 330 people with deck areas of 3275m², Jean Cahuzac, Chief Executive Officer at Acergy explained: “The GumusutKakap Project represents an important development for the deepwater market in Malaysia and for our Joint Venture. Building upon the recent operational successes of the Sapura 3000, we are confident that this high specification asset, will perform strongly and enable our Joint Venture to deliver for us and our client.”

KIKEH GAS PIPELINE SYSTEM Discovered in August 2003, the Kikeh Gas Pipeline System stands as the first offshore deepwater development in Malaysia - with first oil production released five years following commercial discovery of the block. Located 110km off the north-west coast of Sabal, Malaysia, the field reaches depths of 1450m – making the Kikeh Gas Pipeline the deepest rigid pipeline installed in the Asia Pacific region to date. SapuraAcergy was awarded the EPCIC (engineering, procurement, construction, installation, commissioning) contract by Murphy Sabah Oil Co. for the Kikeh development which was successfully completed in 2008. Recognised as a milestone, for both SapuraAcergy and for Malaysia, one of the more noteworthy installations was the PLET

SAPURAACERGY (pipeline end terminations) which, at both the maximum water depth and with a weight of 83MT, was the first of its kind in Malaysia and a significant installation achievement for the Sapura 3000.

MUMBAI HIGH SOUTH REDEVELOPMENT PROJECTS In a bid to support the redevelopment of the field, the project – Phase 2 – was launched by the Oil & Natural Gas Corporation. Initially discovered in 1974, production on the Mumbai field began two years later in May 1976. The Mumbai High South ReDevelopment Project Phase 2 (MHSRP-2) was awarded to Larsen & Toubro for the construction and installation of laying the pipelines and subsea cables, installation of the new platforms and modification of existing platforms. With water depths at the site

reaching 78m, SapuraAcergy was awarded sub-contractor for the offshore installation of the three wellhead platforms for the project which ran from 2000-09. In the company’s first project outside of Malaysian waters, the installation of the three wellheads included main piles, jacket, straight and curved conductors, jacket appurtenances and topsides – all completed with the Sapura 3000. Under its contract, SapuraAcergy undertook various roles including; project management, engineering, pre and post–construction debris surveys and installation. Earlier this year, it was announced that SapuraKencana has been awarded a turnkey contract by the Oil & Natural Gas Corporation for Phase 3 of the Mumbai High South Redevelopment Project, off India’s west coast. In a deal valued at $212 million,

the Malaysia-based integrated oil and gas services and solutions provider will undertake surveys, design, engineering, procurement, fabrication, transport, installation, hook-up and the commissioning of three new wellhead platforms, an estimated 116km of submarine pipelines, 7.5km of submarine cable, medication work on existing platforms at the project site, subsea repair work on three jackets and D1C pile remedial work. With an extensive workload to complete for Phase 3 of the project, SapuraKencana’s contract is due for completion in April 2017.

INDUSTRY INNOVATION In April this year, the global leader in navigation, positioning and imaging solutions, iXBlue celebrated a milestone in sales for its innovative acoustic products. Offering a variety of acoustic and inertial technologies fully

Services Include: • • • •

Pipeline and Flowline Services Decommissioning and Abandonment Umbilical Systems Pipeline optimisation services

Far East Regional Headquarters: Baker Hughes Process and Pipeline Services Division 11th Floor Menara Tan & Tan 207 Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Mobile: +60 19 218 3079 Office: +603 2730 3158

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owned and mastered by the company, it offers inertial navigation, USBL (Ultra Short BaseLine) and synthetic LBL positioning and tracking, and inertialacoustic metrology solutions for both civil and defence underwater and oceanographic activities. A general strategy for both iXBlue’s GAPS and POSIDONIA products is to keep things simple – to deploy and operate - pre-calibrated or autocalibrating, and open to the external world. Introducing GAPS – the pioneering single-enclosure USBL-INS – in 2004, the latest 4th-generation GAPS, with L/USBL and DP features was delivered to the deepwater giants, SapuraAcergy, to be installed on the Sapura 3000. USBL is an underwater positioning system that uses a vessel mounted transceiver in a bid to detect the range and bearing to a target using its acoustic signals – this technique is based on two principles.

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Firstly, that an accurate range can be determined by knowing precisely the time taken for an acoustic signal to travel between the target and the transceiver and the speed at which the signal travelled. Secondly, that the bearing can be determined by knowing the discreet difference in phase between the reception of the signal at the multiple transducers present in the transceiver. The USBL then calculates the angle of the arriving signal by determining a time-phase difference for each transducer. USBL can be used in water depths of up to several thousand metres, without needing to alter any of the components. Many USBL systems operate in and around the MF frequency spectrum (18-36 KHz), providing the potential to achieve good ranges to targets and a reasonable degree of range resolution. Once the USBL systems have been commissioned and calibrated, it is

simple to operate, requiring little to no operator training. SapuraAcergy needed USBL with a higher accuracy than previous versions, using inertialacoustic metrology systems for both ROV and DP positioning. Robbert Veldkamp, Senior Survey Engineer of SapuraAcergy, explained: “Precise tracking in shallow waters is always a challenge. SapuraAcergy has come to recognize the advantages that the iXBlue GAPS can bring. The GAPS performs well in both deep and shallow-waters and excels in difficult and challenging environmental conditions. The GAPS is no doubt a welcomed investment for the state-of-the-art Sapura 3000.” ROVINS - a survey-grade full featured inertial navigation system which is suitable for water depths up to 3000m – are designed specifically for offshore survey and

SAPURAACERGY

construction works. iXBlue ROVINS help to provide robust and high quality positioning, data processing and attitude sensing at a rate of 200Hz. Fitted with an advanced Kalman filter, this helps to improve the efficiency of all operations where accurate position, heading and attitude are key benefits – critical for the long layback pipelay operation. SapuraAcergy currently owns a number of ROVINS, MT9 beacons on top of the newly installed GAPS 4th-generation USBL it acquired from iXBlue.

MAINTAINING HIGH STANDARDS Maintaining its leading role specialising in deep-water installation, decommissioning, and conventional activities for the Oil & Gas industry in Asia Pacific region, SapuraAcergy is proudly committed to an incident-free workplace and

in particular, ensuring the Sapura 3000 adheres to the highest quality and safety standards (ISO 9001 and OHSAS 18001). “SapuraAcergy is committed to zero tolerance of injury to personnel, damage to assets and threats to the environment. In all our projects, we ensure and emphasise the highest standards and safe project delivery. This is supported by a ‘hands on’ management approach, and people who are duty-bound to embrace and comply with the HSEQ standards,” the company explains. “Our HSEQ system is certified in accordance with the International Standards of OHSAS 18001:2007 for Occupational Health and Safety and is based on ISO 14001 for Environmental Management. SapuraAcergy is the first deepwater construction contractor in Malaysia to be accredited with the ISO 9001:2008 for Quality

Management and the best practice standard for Security Standards. “We were awarded the document of compliance; the International Safety Management Code (ISM), for the safe operations of ships and for pollution prevention. Our vessel, the Sapura 3000, has recently received acknowledgment from the National Offshore Petroleum Safety Authority (NOPSA) of Australia for the Vessel Safety Case (VSC) for heavy lifting, which is being extended to pipelaying and diving operations.” With such a focus on safety and technological innovation a c ro s s i t s p r a c t i c e s , i t i s n o surprise that SapuraAcergy is, and will continue to be re c o g n i s e d a n d v a l u e d a s a key industry leader within t h e d e e p w a t e r o ff s h o re o i l & g a s m a r k e t a c ro s s t h e A s i a P a c i f i c re g i o n s f o r t h e f o re s e e a b l e f u t u re

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Sustainable innovation at sea Editorial: Harriet Pattison

With expected daily production reaching 100,000 boe during peak and recoverable reserves of up to 190 million boe, the Martin Linge field, located 42km off the coast of Norway was first discovered in 1975. With the employment of innovative technology, the development hopes to reduce the environmental impact and carbon footprint of the Norwegian Continental Shelf using power from its onshore base at Kollsnes.

Initially a discovery that was made in 1975, the Hild - later renamed Martin Linge - is located 42km west of Oseburg. With water depths reaching 115m, Total E&P Norge AS now serves as operator of the development field holding 49% interest, with Petoro holding

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30% and Statoil ASA with the remaining 21%. Following the drilling of 11 exploration wells between 1975 and 1985 and a 3D seismic survey performed in 2003, it was established that the field was heavily faulted with both gas and condensate at high pressures

and temperatures, making it a complicated field to develop. However, in July 2009, hope was regained as Total began additional exploration drilling on appraisal well 30/4-D-1 AH, using the West Phoenix semi sub â&#x20AC;&#x201C; lasting for 196 days - some rather surprising

MARTIN LINGE

and welcoming news was discovered. With the added advantage of advanced technology and a high level of innovation to be integrated, the Martin Linge field contains estimated recoverable reserves of 190 million barrels of oil equivalent. Oil and gas production is expected to start later next year with an 80,000 barrel capacity of oil equivalent per day (boe/d). The mixed wellstreams from the oil and gas reservoirs will be processed on the platform and the gas separated from the oil and water on the platform before it is transported to shore. The final separation of oil and produced water will take place on a floating storage and offloading

vessel (FSO). Processed gas from the field will be exported to St Fergus in the UK via a link to the existing FUKA gas pipeline and the oil will be processed and stored on the FSO before it is transported from the field by shuttle tanker. The produced water is sent back to the platform for reinjection into the reservoir through a dedicated well.

SUSTAINABILITY OFFSHORE Following the submission of the plan for development and operation for Martin Linge to the authorities in January 2012 and subsequent approval from the Storting in June 2012, development began later

that year, involving the construction of an integrated wellhead, production and accommodation platform. Drilling is to be handled by a separate heavy duty jack-up rig. What really sets this project apart from so many others in its field however, is the precedent it has set to implement sustainability. The Martin Linge field will be powered from the Norwegian mainland electrical grid via a new onshore substation located at Kollsnes, built by Siemens. Responsible for the engineering, procurement, supply, construction and commissioning of the onshore facilities, the substation will

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be connected to the platform on the Martin Linge field through a subsea high-voltage AC power and communication cable, helping to reduce carbon emissions by two million metric tons. Total intends to develop the field using power supplies from land in accordance with a welcomed push by the Norwegian gover nment for electrification of offshore fields, avoiding the conventional yet unfavourable gas turbines installed on offshore platforms. Technological innovations within the industry and

integrated in accordance with the Martin Linge development have been designed to significantly reduce environmental impacts and enhance operational safety.

BUILDING THE BLOCKS In September 2011, Aker Solutions was awarded the contract for basic engineering for development of the field in a deal apparently worth NOK 215 million. Works included the engineering for the topsides, jacket, FSO, turret and mooring, SURF (subsea, umbilicals, risers, pipelines and flowlines) transportation

and installation – completed in 2012. Engineering of the topside was carried out in Oslo, at Aker Solutions’ head office, while the turret and mooring work was undertaken in Kristiansand, Norway. In that same year, Total awarded Subsea 7 a US$800 million subsea, umbilical, riser and flowline contract which covered the engineering, procurement, construction and installation of the subsea facilities at the field. Taking four years to complete at the company’s office in Stavanger, Norway,

What is Engineering Information Management? In both the Oil & Gas and the Construction industries, Engineering Information Management (EIM) has an important role to play in the effective and safe management of an asset during its lifetime. EIM is primarily concerned with the management of all data and documents pertaining to the asset’s design and its physical assets. It will also impact on the people that operate and maintain those assets. EIM covers all stages of the asset lifecycle; planning/concept, FEED, detailed design, procurement/construction, commissioning, handover, operation & maintenance, modifications and decommissioning. What are the benefits of an effective EIM? Asset lifecycle management will involve vast quantities of data, documents, scanned images and drawings. Good asset information is critical to safe, effective and profitable asset management and everyone involved at each stage of the asset lifecycle needs the right information at the right time to do his or her job properly. An effective EIM will give you information, which is: • • • • • • • •

Complete Accurate Comprehensive Timely Accessible Understandable Actionable Easily shared

Here at Datum360 we use a rigorous “End in Mind” methodology to provide “Engineering Information AS it should be” that meets all requirements listed above. To make it even easier, the Datum360 portfolio of software is supplied as ‘Software as a Service’ (SaaS) making it very flexible, fast to deploy and easy to use. What is the cost of getting EIM wrong? Many problems come from poor information management and handover. It is well established that these can be costly to all parties involved in the asset lifecycle. Recent studies have identified poor EIM and data interoperability as the reason for many asset performance problems. Remember it is never too early or too late to address EIM on you Project or in your Organisation.

Helping you do more for less.

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MARTIN LINGE FIELD

Engineering Information as it should be We help you do more for less. www.datum360.com

Software as a Service that just works.

Manage and share your engineering information specification

Collect, measure, report and hand over well understood engineering information

A quote from Total Norge “From the outset Datum360 has supplied constant, high quality advice. They’ve understood our requirements and then, using their SaaS tools, have helped us specify, collect and assure the delivery of engineering information. ” “They’ve very much become a trusted member of our team” Datum360 has a team of specialists operating across oil and gas projects, operations and decommissioning. They have delivered class libraries to most of the world Super Major oil companies and boast clients including Maersk Oil, Total, BP and GDF Suez (now Engie). … delivering a measured approach to engineering information. PAGE 43

work included a 160km power cable from the Martin Linge platform to Kollsnes, a 70km export pipeline and associated valve structure, umbilical and spools for the gas export system, a 55km fibre optic cable and a 3km pipeline and riser system from the platform to the FSU. The contract also involved the transport and installation of the mooring system for the FSU. Project Director, Foudil Cheglibi, said: “This contract is an important milestone and the project is progressing according to the schedule.”

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Signing a contract with Subsea 7 in a deal worth an estimated NOK 1 billion, the leading power and automation technology group, ABB is set to build, deliver and install the world’s longest underwater high-voltage power link cable between the development site and Norwegian power grid. The 145kV high-voltage three-core polymeric insulated (XLPE) submarine cable will be capable of supplying up to 55 megawatts of alter nating current power from the mainland grid to the new Martin Linge field. Set on the seabed with a maximum depth

of 370 metres, the cable will be ready in time for the scheduled production start at the field late next year. The cable will not only supply power from the onshore national grid to wellhead and production platforms but to an FSO vessel at the North Sea field roughly 150km offshore, reaching water depths of 115 metres. Technically innovative, the cable will also be installed with a fibre-optic connection to enable field operations to be controlled and monitored from the shore. Brice Koch, head of ABB

MARTIN LINGE Power System division, said: “This electricity cable connection will help reduce environmental impact. ABB has the in-house manufacturing capability as well as the technical knowhow, domain knowledge and experience required to execute such a complex project.” In a six-figure sum contract, Datum360 were awarded – and subsequently successfully delivered – its off the shelf and proven SaaS solutions, CLS360 and PIM360. Effectively capturing the specification for gathering the engineering information, the system will also act as the data management warehouse

for its ongoing collection and assurance. Implementing both of the SaaS products in less than one week, Datum360 has set an inspiring precedent within an industry sector so often marred by failed delivery times, over inflated costs and lengthy installation times. Steve W ilson, co-founder and CEO at Datum360, said: “We are incredibly proud to have implemented both of these solutions in little under one week. This is incredibly rare in a sector where engineering information management can traditionally take months and years at pilot stage, frequently never going live and costing owner

AP OSJ-0515-A5:AP OSJ-0515-A5 28/04/15 18:42 Page1

operators millions. “In our speed and quality of deployment I firmly believe we have demonstrated our capacity to look after the best interests of owner operators. It is ever important to add value, build trust and ultimately do more for less by delivering efficiencies with our experience and SaaS technology,” added W ilson. Total expect Datum360’s SaaS products to be the center of Engineering Information for the operating phase of the field and due to the company’s efficiency for delivery and workmanship, it has already been awarded additional work with Total. Datum360 is now working

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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with its contractors to effectively extract engineering information from the design process in a contract valued at £438,000. “From the outset Datum360 has supplied constant, high quality advice. They’ve understood our requirements and then, using their SaaS tools, have helped us specify, collect and assure the delivery of engineering information,” explained Specialist Maintenance Engineer, Tom N.Svennevig.

OFFSHORE LIVING The topside contract was awarded

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to Technip in consortium with Samsung Heavy Industries (SHI) in Korea to cover the engineering, procurement, fabrication, transportation, hook-up and commissioning. With installation scheduled for 2016, the total dry weight of the platform topside is estimated to be 22,000-tons. An eight-legged steel structure, it will be designed with 21 wellhead slots with a design life of 30 years. Philippe Barril, Technip EVP and COO Onshore/Offshore, stated: “Technip is proud of the confidence shown by Total E&P Norge and its partners. This strategic contract is

the third offshore project awarded to the Group in the North Sea this year. It confirms the return of Technip on this market, as an engineering, procurement and construction leader on large and complex projects. This is also the continuation of a long and successful relationship with our partner SHI.” Further, SHI signed a Letter Of Intent with Apply for delivery of the Martin Linge Living Quarters later next year which includes delivery of a new seven-floor Living Quarters module, constructed in steel covering an area of 3700 m2. It will include capacity for 95 single

MARTIN LINGE cabins, recreation areas, change rooms, helicopter deck and other facilities required for operation of an offshore hotel. A leading supplier of services and technology products to the international oil & gas industry, Apply Group will combine Apply Leirvik’s NORSOK competence with Apply Emtunga’s competence in design and delivery of steel modules in a bid to successfully execute the contract for the Norwegian field. “We are honoured that SHI and Total have chosen Apply for delivery of the Martin Linge Living Quarters. SHI and Total are both new international clients for Apply. These are clients with a significant international development portfolio. It is very motivating for us to know that delivery of a quality product on schedule will position us for winning future work”, Managing Director, Lars Solberg, said in a statement.

A SOLUTION FOR THE NCS?

“This electricity cable connection will help reduce environmental impact”

With expected daily production reaching 100,000 boe during peak and recoverable reserves of up to 189 million boe; the Martin Linge field, although first discovered four decades ago, is proving to be an exciting Norwegian project, not only for Total and its contractors but for the industry too. In a bid to reduce the carbon footprint of the Norwegian shelf and environmental impact, the field’s facilities will be powered from its onshore base, Kollsnes, via a new 170km long subsea cable, the world’s longest alternating current power line from shore to an offshore platform. This technical and innovative solution is in line with the Norwegian authorities’ continued objective to curb CO2 emissions from offshore activities

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Naturally high hopes Editorial: Abigail Saltmarsh

As demand for natural gas for electricity hits a two-year high in Spain, Total World Energy focuses on the recent growth of Enagás which now places it as an international midstream company present in eight countries and with further opportunities on the horizon, Marcelino Oreja, CEO of Enagás, explains: “We are living what is said to be a ‘golden age of gas. This has been very positive for us, and in the future, there are plenty of opportunities for our company to grow internationally, and take advantage of our expertise, as leaders in this market.” With soaring temperatures in Spain this summer, demand for natural gas for power generation has broken all records since 2012, according to Enagás, the technical manager of the Spanish gas system and the main carrier of natural gas in the country. Demand for natural gas

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for electricity peaked at approximately 7,900 GWh in July 2015, seeing the highest levels of consumption since February 2012. The reasons for these figures are the high temperatures, which have prompted a sharp rise in demand for electricity, as well as lower wind generation,

the company explains, and July was one of the hottest months in Spain since records began, with a heatwave that started in June and lasted three weeks. Recently released figures have also shown that demand for natural gas in the domestic market grew by 5.3% year-on-

ENAGÁS

year in the first half of 2015. These announcements only serve to strengthen the company’s resolve to see even stronger growth over the coming years as demand for natural gas increases in Spain and further afield, and to reinforce its position not only as the leader in its domestic market but also as a serious contender on the global stage, says Marcelino Oreja, CEO of Enagás. “We are living what is said to be a ‘golden age of gas,’” he suggests. “This has been very positive for us, and in the future, there are plenty of opportunities for our company to grow internationally, and take advantage of our expertise, as leaders in this market. “Until 2010 Enagás was only

dedicated to the Spanish market. We have 45 years of experience - we are leaders in this market - and since 2011, we’ve started to grow internationally, because of the growth of energy demand and also, of course, because gas demand is increasing.”

INTERNATIONAL GROWTH Headquartered in Madrid, Enagás was founded back in 1972 and went on to develop over the decades as an operation with aims of ensuring the competition and security of the Gas System in Spain. Today, it has nearly 11,000 km of pipelines throughout the country and three underground storage facilities, located in Serrablo, Gaviota and Yela. Spain imports almost all the gas it consumes and storage capacity

is limited, with only enough space for 20 days of supply. Nevertheless, Enagás operates four regasification plants (in Barcelona, Huelva, Cartagena and Gijón) and it owns 50% of the Bilbao regasification plant. It also owns 30% of the Sagunto liquefied natural gas (LNG) terminal and the entire Gascan site, which oversees a project for the construction of two LNG terminals in the Canary Islands. Currently, its terminals in Spain have 2,566,500 cub m³ of LNG storage capacity and an output capacity of 6,250,000 Nm ³ / h. “From 1969, for over four decades Enagás focused exclusively on the development, operation and maintenance of Spain’s highpressure gas network. Then, in 2011, when the Spanish gas sector

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started to mature, we decided the time was right to engage in a process of internationalisation. “Within just four years, Enagás has become an international midstream company that is present in eight countries: Spain, Mexico, Chile, Peru, Greece, Albania, Italy and Sweden. Other new opportunities have also arisen, such as bunkering (using LNG for maritime transportation) and reloading vessels with LNG.”

STRENGTH TO STRENGTH Today Enagás is a shareholder of TLA Altamira regasification plant in Mexico, where it also

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“There are plenty of opportunities for our company to grow internationally, and take advantage of our expertise, as leaders in this market”

participates in gas pipelines construction. In Chile, it has an LNG terminal (in Quintero) and it is now also firmly established in Peru, where in 2014 it acquired 20% of Transportadora de Gas del Perú (TgP) and 30% of Compañía Operadora de Gas del Amazonas (Coga). In the same year, a consortium between Enagás and Odebrecht was awarded the project for the South Peru Gas Pipeline and then in July 2015, the company finalised an agreement to raise its stake in TgP to 24.34%. Enagás also participates in two European projects. In September 2014, the company joined Trans Adriatic Pipeline (TAP), with a 16% stake, and in March 2015 it agreed with the Belgium Fluxys to jointly acquire Swedegas, the company, which

ENAGÁS operates Sweden’s Gas System. Since its internationalisation began, c o n t i n u e s M r O re j a , E n a g á s h a s p a r t i c i p a t e d i n m o re t h a n 2 0 0 i n t e r n a t i o n a l p ro j e c t s i n s o m e 6 3 d i ff e re n t c o u n t r i e s : “The main driver behind t h e s e p ro j e c t s i s h a v i n g the leverage of experience as transmission system operators and developers of n a t u r a l g a s i n f r a s t r u c t u re s i n emerging markets. “ I n re c e n t y e a r s , t h e position of Enagás as a global specialist in L N G re g a s i f i c a t i o n a n d l i q u e f a c t i o n h a s g o n e f ro m s t re n g t h t o s t re n g t h , w h i l e partnerships with local g ro u p s w i t h c o m p l e m e n t a r y s k i l l s re m a i n s t a b l e , t h e re b y

e a s i n g p re d i c t a b l e c a s h f l o w s w i t h a t t r a c t i v e re t u r n s . ”

A TECHNOLOGICAL LEADER Both innovation and sustainability remain at the forefront of the Enagás trajectory as the company forges ahead with its plans for expansion. As a leader among natural gas transporters, it attaches particular importance to development on all fronts but especially technical and human resources. The company builds new infrastructure and enlarges existing facilities to the highest standards, making use of the best techniques available. It strives

constantly to innovate, both on its own and in cooperation with other Spanish and international gas transporters and companies. Its underground storage facilities have been designed and built to the h i g h e s t l e v e l s o f s a f e t y. Investment in training is k e y, M r O r e j a s t r e s s e s : “ O u r employees now have ample experience of operating in international markets, and have worked extensively w i t h t h e w o r l d ’s l e a d i n g gas companies. In order to provide the best industry expertise to our customers, we have expanded the prospects for inter nal career development and our ability to attract new talent.”

PIPELINES

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A BENCHMARK FOR SUSTAINABILITY The company’s innovation efforts also extend to optimising energy efficiency in the management and operation of its infrastructures. This includes using waste energy from its processes and raising the efficiency of its equipment and plants. Innovation also features in certain critical knowledge areas, eg: process safety, gas system management and operation, and the measurement of third-party energy received and dispatched. The Zaragoza laboratories, equipped with the best human and technical resources, provide special support in this respect. Leveraging the similarities between its core businesses, the company is capable of

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fulfilling one of its aims: to lead the development of innovative technological solutions using CO 2 transport and storage technologies that mitigate the impact on climate change. Enagás takes part in an increasing number of initiatives undertaken in these fields. When it comes to underground storage, the company’s commitment is also strong. Rosa María Nieto, director of underground storages, says: “For the type of business we develop, we mainly work on preventing the impact on the environment. Enagás takes into consideration biodiversity protection of the areas where it operates. We ensure we appropriately plan and locate facilities, restoration and replanting areas affected during

pipeline construction and we ensure we reduce greenhouse gas emissions, from the design stage, which cause changes in the physical conditions of the ecosystems where plant and animal species grow.” As evidence of this effort, Enagás’s carbon footprint has been certified in accordance with the UNE-EN ISO 14064 standard. Mr Oreja adds: “Enagás prides itself on becoming a benchmark for sustainability, good governance, knowledge and innovation in the sector. Our management model, which is based on efficiency, transparency, integrity and creating value through ongoing improvement, has led to our inclusion in the world’s most prestigious rankings, such as the Dow Jones Sustainability Index,

ENAGÁS

FTSE4Good, the 2014 Carbon Disclosure Project Report and European Excellence 500+.

LOOKING AHEAD In the first half of 2015, Enagás saw a net profit of €213.1 million, representing a year-onyear increase of 1.5% and in line with full-year predictions. This increase was underpinned by the performance of the company’s international assets, most notably Transportadora de Gas del Perú and Compañía Operadora de Gas del Amazonas. In the first half, the company invested a total of €280.3 million, of which €142.6 million was earmarked for international projects and €137.7 million for Spanish assets, in line with annual targets. The increase in demand for

“Enagás prides itself on becoming a benchmark for sustainability, good governance, knowledge and innovation in the sector”

natural gas is expected to continue for some years into the future, says Mr Oreja. As such, he is optimistic about the future of Enagás and sees further growth within international markets. “We envisage that global gas demand will increase by more than 2% annually through to 2020,” he says. “Taking into account that this major demand increase will occur in regions that are not self-sufficient, expanding infrastructure capacity will be necessary in order to meet both production and demand. “As such, Enagás is well positioned to play a leading role in infrastructure development and operations, as it is independent from both production and consumption interests, and so acts as an enabler for harmonising the world’s gas needs.”

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In the field Editorial: Abigail Saltmarsh

A leading operating company in the oil industry in the UAE, ZADCO operates the Upper Zakum field – the fourth largest oil field in the world the development is expected to increase production to 750,000 barrels of oil per day. “Our aspirations are in alignment with the Abu Dhabi Economic Vision 2030, and we are honoured to contribute to Abu Dhabi’s sustainable development goals. We consider it vital that our operations are conducted sustainably, safely, and responsibly.” PAGE 54

ZADCO The Zakum Development Company’s (ZADCO) flagship UZ750 Project is one of the largest offshore oilfield development projects in the United Arab Emirates and aims to increase oil production from the Upper Zakum field to some 750,000 barrels of oil per day until 2025 and beyond. The UZ750 project commenced in 2008 to redevelop Upper Zakum, which is recognised as the second largest oil field in the Gulf and the fourth largest in the world - and ZADCO, a joint venture comprising of ADNOC (60%), ExxonMobil (28%) and Japan Oil Development Company (Jodco – 12%), was firmly positioned at the helm. Now, as the project continues, the redevelopment of Upper Zakum continues to present a multitude of technological and operating firsts for ZADCO, which will provide opportunities for additional development applications in the Gulf. It is also making great strides in reinforcing the company’s position as a pioneer, as it breaks new ground in intensively applying complex techniques in extended reach drilling and maximum reservoir contact technology.

DEVELOPING THE RESERVOIR T he Upper Zaku m fi e l d ’s s t o r y really g oes r ight b a c k t o 1 977 wh en Sh ei kh Z a y e d B i n S u ltan Al N ah y a n, an n ou n ced th e imp e nd i ng i n co r po r atio n of ZAD CO t o d ev elop an d o per a t e t he re ser vo ir. Th e f ir s t shi p me nt o f U pper Zaku m crud e oi l w a s

e xp ort e d on t he ta nk e r Al - Ai n i n 1983 a nd si nc e the n the d e v e l op me nt of the fi e l d ha s b e e n c onsi d e re d o ne o f the ma j or t e c hni c al a c hi e v e m e nts i n A b u D ha b i . In 1988, ADNOC decided to merge the operations of Umm Al-Dalkh Development Company (UDECO) with ZADCO’s operations. This merger, which was considered the first of its kind in the oil industry in Abu Dhabi, added more responsibilities related to the operations of Umm Al Dalkh and Satah fields, which are also managed by ZADCO, as well as the Upper Zakum field. Although ZADCO also oversees Satah and Umm Al D a l k h , U p p e r Z a k u m re m a i n s its most important operation. Located 84 km north west of the Abu Dhabi Islands, the f i e l d c o v e r s a ro u n d 1 , 2 0 0 sq km of the Gulf marine a re a s a n d c o m p r i s e s o f a ro u n d 4 5 0 w e l l s e x t e n d i n g a p p ro x i m a t e l y 7 , 0 0 0 f t t o 8 , 0 0 0 f t b e l o w t h e e a r t h ’s surface. T h e w e l l s a re t i e d t o m o re than 90 existing platforms. Upper Zakum has an accommodation platform with the capacity to accommodate 550 personnel, making it one o f t h e l a r g e s t o ff s h o re l i v i n g s t r u c t u re s i n t h e w o r l d . The Umm Al Dalkh field is located 25 km north-west of Abu Dhabi and covers an a re a o f 1 5 0 s q k m . I t w a s d i s c o v e re d i n 1 9 6 9 a n d o i l p ro d u c t i o n b e g a n i n 1 9 8 5 . The Satah field is located 200 km north-west of Abu Dhabi and covers an area of 35 sq km. It was discovered in 1975 and oil production began in July 1987.

HIGH TECH INSTALLATIONS Oil from Upper Zakum flows through a pipeline network to one of four main processing facilities for treatment. It is then pumped through main oil lines measuring around 55 km to oil operation centres for further processing, storage and export. One of these is at Zirku Island, 140 km north-west of Abu Dhabi. This site has state-of-theart oil and gas installations and is the primary industrial base for the processing, storage and export of oil from Upper Zakum, Umm Al-Dalkh and Satah Fields. Here, there are also modern living facilities capable of accommodating more than 3,000 personnel. Several projects have contributed to the island’s industrial infrastructure and upgrading its capacity, as well as civil projects related to landscaping and other living and recreational facilities. In addition, the company also operates on Arzanah Island, which is the base for Satah field operations and accommodates around a 100 personnel in a modern housing complex. This island is connected with other ZADCO systems, and has water resources and a gas injection plant.

SUSTAINABLE PRODUCTION Right from the beginning, the company’s mission was to focus on sustainable production to optimal levels, while ensuring it met the future crude oil requirements of the Supreme Petroleum Council and shareholders. In order to succeed, the strategy was to guarantee best practices in field

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development and operations alongside a continuous improvement in health and safety and training, says the company’s CEO, Saif Nasser Al Suwaidi. “At ZADCO, our aspirations are in alignment with the Abu Dhabi Economic Vision 2030, and we are honoured to contribute to Abu Dhabi’s sustainable development goals. We are aware of the increasing pressures and challenges we face in a global context, such as greenhouse gas emissions and climate change. “Our short and mid-term goals address this by establishing systematic efforts towards

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increasing our energy efficiency to reduce our emissions. We consider it vital that our operations are conducted sustainably, safely, and responsibly.” Reducing emissions, the control of industrial waste and the introduction of zero flaring will remain foremost among ZADCO’s priorities. Zirku Island is an example for an industrial centre with its harmony with the natural environment as it is home to an array of local and migrant birds, rich marine life besides mangrove plantation and greenery are main features of the site environment.

The company also invests annually in training and development programmes aimed at continuously improving and sustaining the level of staffing that support the values it aspires to on a daily basis.

DRIVING FORWARD Indeed, it has been with these messages in mind that ZADCO has pushed ahead with its UZ750 Project. The first strategy for hitting the targets was based on an additional 25 wellhead platform towers, together with hundreds of km of new flow lines but the realisation that the costs

ZADCO

would be high costs and limited flexibility resulted in ZADCO seeking out alternative solutions. As a result, it began focusing on an “artificial island concept.” This would see drilling centres and processing facilities located on artificial islands, and would bring in the new technologies in extended reach drilling and maximum reservoir contact technology to effectively develop the entire field and attain the desired targets. Historically, ZADCO has drilled wells of approximately 10,000 feet. However, with the new technology, it is planning to reach 30,000 to 35,000 feet. To date,

ZADCO has completed drilling a pair of maximum reservoir contact wells, each almost 20,000 feet total drilled length – both wells setting several drilling records for the company. According to ZADCO, artificial islands provide a more flexible and robust development base for the redevelopment of the Upper Zakum field. The move to the “artificial island concept” will significantly reduce life-cycle development costs and enable long term maximum recovery levels to be achieved. Green field development on islands accelerates oil development rate, it says, and it

is safer and more capital efficient. The current development plan has the potential to extend the production plateau for up to more than 15 years.

PROJECT MANAGEMENT CONSULTANCY The UZ750 project continues to move forward. In a recent development, Amec Foster Wheeler announced it has been awarded an extension to its existing project management consultancy contract for the project. Amec Foster Wheeler designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors. The company operates across

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the whole of the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets. Amec Foster Wheeler’s scope of work includes project management consultancy services to be delivered as part of an integrated project management team. ZADCO will oversee the contractor’s delivery of reimbursable engineering, procurement and construction scopes of work, as well as commissioning and start-up support of the facilities. This work is scheduled to be completed in December 2017. Roberto Penno, group

president of Asia, Middle East, Africa and Southern Europe, at Amec Foster Wheeler, says: “This UZ750 contract win cements Amec Foster Wheeler’s ongoing engagement in this strategically important project. The Middle East is a key growth area for Amec Foster Wheeler and we look forward to continuing our relationship with ZADCO on this next important phase of work.”

A STRONG FUTURE According to ZADCO, the company looks to the future with confidence, devoting its efforts and capabilities to serving Abu Dhabi and the UAE. “To assist us as we journey

the way to attain higher performance and achieve our mission, we have developed a vision and a set of core business values. The core business values are based on the principles of transparency and respect for individuals. This will cultivate positive relationships among our colleagues at all levels of the company and with those we deal with from outside the company. “Improved oil recovery will be a main target and accordingly, the introduction of the stateof-the-art technology will be available to serve and streamline operations, increase growth and control expenditure.”

Towards HSE Excellence Located in Mussafah, UAE, National Marine Dredging Company (NMDC) stands as one of the leading marine contractors in the Middle East - providing dredging, reclamation works and marine construction. Operating out of a fully equipped yard in Abu Dhabi with state-of-the-art workshops and a 300-meter jetty, NMDC’s dredging and reclamation capabilities include: Pre and post survey works, designing of the Construction Environment Management Plan (CEMP), monitoring for the compliance and proactive QHSE program throughout the project, periodic reporting of progress to the client and efficient execution and delivery management.

The latest modern technology: With an extensive marine fleet - which is continually expanding due to company growth - it consists of an array of Cutter Suction Dredgers (CSD) - ranging in capacity from the small Beaver dredger, Jananah (1,795 KW) to its most powerful automated dredger, the Al Sadr (20,725 KW). RTK GPS and GTS equipment is used to conduct survey work for the pre-reclamation projects and to build hydrographic survey vessels, equipped with the latest dual frequency echo-sounders and sonar equipment. This data is then logged directly onto on-board computers to help facilitate volumetric calculations for carrying out the plotting of the detailed survey charts during survey operations.

The Upper Zakum field: Despite heavy competition, with a number of reputed dredging and offshore contractor companies bidding for the Upper Zakum Oil Field, NMDC was awarded the project by ZADCO’s subsidiary, ADNOC. The contract involved the construction of four artificial islands in the Upper Zakum fields and included the dredging, land reclamation and the construction of several harbours with quay walls and breakwaters for each island. “Adhering to strict Regulatory compliances, regular monitoring of the project process and with a capable staff to support, we always ensure the timely delivery of our services. Transparency, openness and readiness to improve are the key factors that our personnel abide by in all our day to day operations.”

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JOHAN SVERDRUP

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PAGE 59

New Horizons New Dimensions Editorial: Colin Chinery

The growth of Boskalis Singapore has been in tango step with that of this remarkable City State, with the South East Asia arm of the Dutchheadquartered global maritime services group a central player in multi-billion dollar land reclamation and infrastructure projects. “We are rightly seen as the one-stop solution provider for complex and large projects,” says Regional Business Manager, Pranab Choudhury. Singapore, a 5.4 million population nation smaller than England’s Isle of Wight, so land-starved that the city state is building an industrial park and motor circuit in next-door Malaysia to feed its need for space and speed. Here land gain is like oxygen, and seven years ago following a massive reclamation project, a string of once crocodile-infested marshland island

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became one artificial island and now hub of Singapore’s world class petrochemical industry. This is Jurong Island, and close by is Tuas, another former swamp area and now the location of a new port development handling up to 65 million TEU annually - nearly double Singapore’s present capacity at PSA terminals. Boskalis was and continues

to be a major player in each of these literally ground changing programmes, powering the further development of the richest nation on the globe. “Over the years we have completed several very large projects such as the land reclamation works in the Tuas and Jurong areas of Singapore and the Phase 2 expansion of the Port

BOSKALIS SINGAPORE

of Tanjung Pelepas in Malaysia,” says Pranab Choudhury, Regional Business Manager for Boskalis in Singapore. “The growth of Boskalis Singapore has been – quite literally – directly related to Singapore’s own growth, and we have been fortunate to be involved in almost all major land reclamation projects in Singapore, helping Singapore to grow in size.”

LEADING PROVIDER Royal Boskalis Westminster is a leading global maritime services group providing services in four broadly defined market segments; dredging and inland infrastructures, offshore energy, towage and salvage.

Headquartered in the Netherlands, the company is active in the energy and ports markets, with governments, project developers, insurance companies and the marine and mining sectors among its main clients. Boskalis has more than 11,000 employees, including a share in partner companies, operating in over 75 countries across six continents, and with over 1100 vessels including one of the world’s largest dredging fleets. And last month Boskalis completed an outstanding global achievement; the 8bn Suez Canal project in which it played a lead role. Operating in a consortium involving Van Oord, NMDC and Jan de Nul, Boskalis opened up a 35km

additional lane parallel to the existing canal along with two service and two cross Channels; a dredging world record-breaking 200 million cubic meters of sand, clay and rock in less than nine months. “A huge undertaking on a world scale… completed in a time that is frankly astonishing,” said Peter Hinchliffe, Secretary General of the International Chamber of Shipping. Boskalis Singapore was set up in 1983 to win and implement programmes in Singapore and the region, and its growth has been diverse, high profile and impressive.

FIRST AMONG PEERS “We are also the only one among our peers that has the in-house capabilities to provide a complete

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integrated service to our customers - we are rightly seen as the one-stop solution provider for complex and large projects.” Among its projects, the expansion of the Shell Bukom refinery achieved by combining two islands and reclaiming the land between - and the reclamation of the Changi area, location of Singapore’s iconic airport. “We are happy that we could be a partner in Singapore’s vision to be the aviation hub in the region.” Currently Boskalis is involved in a consortium awarded work associated with the expansion of

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the Singapore Tuas Mega Port development - Tuas Finger One. This project, which includes building four large size integrated terminals in the Tuas area, will enable Singapore to consolidate port capacities in the deeper waters of Tuas from the present locations in Tanjong Pagar, Keppel, Brani and Pasir Panjang terminals. The scheme will realise two major objectives; freeing up prominent high value land banks in the Central Business District, and almost doubling the capacity of Singapore ports - from 35 million twenty-foot

equivalent units (TEU) a year to 65 million. Boskalis will operate alongside Hyundai, Samsung, Penta Ocean, and Van Oord on land reclamation, dredging and construction of 3.4 kilometres of quay wall. With the combined Boskalis / Van Oord share approximately €100 million, work will last until late 2018. Tender process for the second phase - Finger Two - is in progress, with the remaining two phases expected to come in next two to four years. “We in Boskalis have been keenly following the development of the

BOSKALIS SINGAPORE Tuas Mega port and are equally keen to be a partner with Singapore in the development of the various phases of the port,” explains Mr Choudhury. “We are very keen to be involved in all the phases of the Tuas Mega Port development as we strongly believe that our experience in delivering large and complex projects would be valuable strengths for this challenging project.” Another current project - also in a joint venture with Van Oord - follows the PT Muara Wisesa Samudra contract to design and construct an artificial island of reclaimed land off the north coast of Jakarta, Indonesia, part of the dredging and land development work for the new Pluit City, work is expected to be completed in 2018. And in the Philippines, Boskalis has been awarded a Shell contract for the installation of an offshore depletion compression platform for the Malampaya Project off the Coast of Palawan Island. This notably complex $60 million commission includes seabed preparation, rock installation, platform transportation and installation work. “It gives us the opportunity to demonstrate how Boskalis can deliver innovative and reliable solutions with a strong focus on safety and the environment,” says Mr Choudhury. “Undoubtedly, our integrated approach has many benefits for our client because they don’t have to deal with interface issues. They work with one team with all the expertise and the equipment needed. “Usually the seabed work would be completed and then we would hand over to the client and then the client in turn, hands over to a second contractor for the rock installation. But now we can offer a combined, integrated solution

incorporating so many activities.” Through sister company SMIT, Boskalis is also active in towage and salvage services. SMIT, like Dockwise, Asia Lift and Keppel, are separate business entities that have become part of the Boskalis group in the last five years. Each with a strong presence and brand name within the region, their complementary strengths have contributed a strategic fit to Boskalis’s core competency in dredging, reclamation and offshore services. The synergy created by the acquisitions can already be seen in the Malampaya project in the

Philippines which has elements of transport and install, the core competency of Dockwise. The project was also supported by the Boskalis towage division.

INNOVATIVE AND STRATEGIC “We deliver innovative one-stop solutions to major maritime challenges, and the acquisition of these companies fits nicely with the Boskalis’s strategic framework. We strongly believe that having these companies will help us to move strongly forward in the Energy sector.” Singapore and South East

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Asia is a strategic market for the company and is expected to grow in the medium to long term, says Mr Choudhury, who joined the team Boskalis in 2001, after spending several years in the private and the government sectors. “It has been a tremendous journey of excitement and fulfilment. We have been through several challenging

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projects which have been intellectually stimulating and technically challenging.” Pioneering technologies and new operational systems are distinctive Boskalis characteristics. “In many projects we come up with several innovative designs and work methodologies. “As projects become more complex in scope and scale,

innovative solutions that can provide sustainable value are required - not only in the design and implementation but also in the overall system and processes. “I’ve also observed that more and more project owners now look for integrative solutions or someone who can provide them a one-stop service. This helps the owner to reduce interfacing risks.” With the complementary strength of the group companies, Boskalis has evolved into an organisation that can provide a one-stop fully integrative service to its customers.

BOSKALIS SINGAPORE “We always place a very high and very primary emphasis on customer service, understanding the client’s needs and developing innovative and competitive all-round solutions for the customer.”

FOUR PILLARS In most cases, says Mr Choudhury, this also means along with the client, walking the value creation path together and coming up with solutions that create significant real value. “Our growth based strategic framework is built on the four pillars of ‘Focus, Optimise, Reinforce and Expand’, which provides us competitive advantage in the market.” Boskalis has set its sights on growth in Singapore and the surrounding region, and the

“Our strategic vision is to be the leading service provider in the field of innovative and competitive all-round solutions to our customers in this region”

development activities shortly to be announced present major opportunities the company intends to capture. “Singapore and South East Asia is a strategic market for the company and is expected to grow in the medium to long term,” says Mr Choudhury. “Singapore has already announced several large land reclamation projects in the next two to five years and we are keen to participate in and add value to these projects. “Similarly, the other countries in the region have national plans for expanding their infrastructures in the energy and port sectors. “Our strategic vision is to be the leading service provider in the field of innovative and competitive allround solutions to our customers in this region.”

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Successful restructuring Editorial: Rosie DeWinter

Increasing its performance and efficiency in the ISP market, Bilfinger Industrier has introduced a range of prefabricated solutions for fire, cryogenic, acoustic and thermal protection. Making insulation systems work under its range of Lambda products, the company designs, tests and documents these ready to be used in high-risk environments â&#x20AC;&#x201C; simultaneously meeting strict NORSOK standards. A key player in the ISP marketplace, Bilfinger Industrier operates and offers services within the insulating, scaffolding and painting services sector. Together with these, the company delivers tested and certified PFP solutions - which includes thermal and acoustic insulation boxes, jacket solutions and Habitats to both the onshore and offshore industry. Now, with an extensive range of

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reliable and innovative products, all produced from Bilfinger Industrierâ&#x20AC;&#x2122;s modern prefabrication workshop, the company has introduced prefabricated solutions - under its Lambda product range - for fire protection, cryogenic insulation, acoustic insulation, thermal insulation and subsea insulation. And with a big focus on product development over the last few years, Bilfinger Industrier is now

looking into creating new and innovative solutions and products - whilst simultaneously adding value, maintaining strict safety rules and ensuring customer satisfaction. Bilfinger Industrier is the largest of four business units within the oil and gas division of Bilfinger SE, a major international engineering and services company.

BILFINGER INDUSTRIER NORGE PRODUCT INNOVATION Tested and certified to withstand hydrocarbon and jet fire temperatures that reach up to 350kW/m2 – the Lambda F product range is made with high-performing materials, including a polymer-based insulation material – Favuseal. “Over the last couple of years we have introduced and worked with a couple of new materials which are fairly strong. Our main focus of activity in our new product range is a polymer based material called Favuseal,” explained Tor Minsaas, Director Technology, Supply Chain Management & Support Systems at Bilfinger Industrier, speaking to Total World Energy last year. A material that is easier to transport, install and providing a more efficient insulation, Favuseal is a much more

environmentally friendly alternative too. With the ability to withstand extremely harsh conditions, much in demand in today’s market, Favuseal is halogenfree and the technology to develop it, also helps to protect on-site workers by not generating corrosive or toxic gases in the event of a fire. With the strap-line, ‘Making insulation systems work’, Bilfinger Industrier provides numerous prefabricated insulation products for fire, acoustic and cryogenic – under the brand name, Lambda – these have been designed, tested and documented, in accordance with NORSOK requirements, to be used in hazardous and high-risk environmental situations. Specifically aimed to benefit the insulating market, the Lambda Cryo Box is a prefabricated cryogenic

insulation system designed and tested to insulate valves which have extreme operating temperatures reaching as low as -163°C. A cost efficient alternative for many reasons, the Lambda Cryo Box can be removed and reinstalled multiple times. Customised and assembled at the company’s workshop, it requires no heavy work and so fewer installation personnel are needed, creating an overall safer working environment. The Lambda thermal insulation jacket can be used in various production environments including marine, oil & gas and power plants for thermal, personnel and sound protection. A customisable system, it can be delivered as flexible jackets or boxes in stainless steel. Introducing a new pressurized habitat system which is not only

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flexible, but a cost effective and portable alternative than previous solutions, Minsaas explained: “We have taken existing technology and improved it so the new habitat is more flexible and easier to handle.” A simple and straightforward system - weighing in at only 20 kg, making it easier to transport and install - the new solution comes with batteries that are powerful enough to run a 24 volt control unit, offering significantly higher flexibility in operations in comparison to a typical 230V system.

TOP QUALITY PREFABRICATION Opening its existing head office in Stavanger in 2011, the company consolidated all the pre-fabrication works to this central location. Speaking with Jüergen Liedl last year, who was recently appointed Executive President - Division Support Services at Bilfinger SE in March, he spoke of the importance of the company’s new and modern facilities: “We have a very advanced prefabrication workshop and we continuously invest in machinery and equipment to ensure efficiency and

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quality of our production.” With a key focus on ISP services, Bilfinger Industrier continues to carry out installations, maintenance works and big frame agreements for some of the key industry players, including Statoil and BP. “We have an agreement with Statoil on a number of installations in the Norwegian sector of the North Sea as well as the big Kalundborg refinery in Denmark. They’re a major customer and we have a very close and professional relationship with them.” In February last year, Bilfinger Industrier was awarded a contract by Statoil for ISP services on an offshore platform in the Sleipner gas field in the North Sea. Located 250km west of Stavanger off the Norwegian coast, the Sleipner field is a natural gas field with two parts currently in production, Sleipner West – which was proven in 1974 and Sleipner East, in 1981. At the end of 2013, Statoil awarded Bilfinger Industrier a contract valued at an estimated EUR 250 million, covering services at its North Sea production facilities and onshore plants on the Norwegian coast from August 2014 to

July 2016. This was then followed, at the beginning of 2014, by a further contract extension signed with Statoil for providing services at the offshore platforms in the Sleipner gas field. Valued at an estimated EUR 40 million, Statoil exercised this option under a framework contract which it signed with Bilfinger Group, for the Gudrun oil and gas field. Running from 1st August 2014 through to 5th September 2017, the contract includes the possibility of two more two-year options, which had initially been excluded from the previous contracts awarded to Bilfinger Industrier from Statoil in the autumn of 2013 for the Gudrun oil and gas field. Bjørn Harald Celius, CEO of Bilfinger Industrier Norge, said: “We are delighted that Statoil has renewed its confidence in us at Sleipner. “A new framework contract for three more years means continuity in our projects and for our employees. We look forward to continuing our fruitful collaboration and to making a valuable contribution to safe, competent and efficient operations.” Following the master contract signed

BILFINGER INDUSTRIER NORGE in 2011, BP Norway announced last year that it was exercising a further renewal option with Bilfinger Industrier, who were awarded the third contract for maintenance services for the North Sea oil and gas industry since 2013. Covering ISP and access technology services at the Ula, Valhall and Skarv fields, the renewal contract, valued at an estimated EUR 50 million, will run from May 2014 and will end in April next year. Executive President of the Bilfinger Oil & Gas Division, Steve Waugh, said: “We owe our recent successes to our employees’ skills and our day to day focus on safe productive working practices, which provide an excellent basis for our future growth. We address the main requirements

in onshore and offshore repair and maintenance to extend asset life and improve reliability performance. At the same time, we are registering strong demand on the part of customers to deliver innovative solutions to optimize asset life cost effectively and safely across all our main contracts.”

A BRIGHT FUTURE AHEAD In a year of restructuring and new staff appointments, Bilfinger Industrier appointed Leif Helge Eriksen as COO, which is set to commence on September 7th 2015. Responsible for all projects and operational activities within the company, Eriksen has vast experience within the industry – coming from Head of Opex and Capex Optimisation within Avito Consulting AS and before that, Deputy CEO of

Beerenberg Corporation AS and CEO and Production Facility Manager in Kverneland Group. Eriksen also boasts an MSc degree in engineering from The Norwegian University of Science and Technology, NTNU and will be integral to the ongoing restructuring and future projects within the company. With an array of innovative and unique products and solutions now in circulation, Bilfinger Industrier has built a successful platform in which to succeed and grow, certainly for the foreseeable future. “We believe we’ve got great products and a great service that we deliver. The combined offering of these two plus our strong market position give us an excellent basis for successful further development,” Liedl explains

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The rise of geothermal generation Editorial: Rosie DeWinter

With weather variations having a negative impact on the reliability of hydro power, Kenya has been implementing and utilising a new energy source and it’s one that comes from the earth’s very core. With the new 280MW geothermal project coming on stream in December last year, KenGen, with new developments in the pipeline, plan to add at least 3,000MW to its power generation fleet by 2018. The adjective geothermal, originates from the Greek roots of ‘γη’ (ge), meaning earth, and ‘θερμος’ (thermos), meaning hot. Generated and stored in the earth, thermal energy is the energy which determines the temperature of matter. The geothermal gradient – which is the difference in temperature between the core of the planet and its surface – maintains

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a continuous conduction of thermal energy in the form of heat from the earth’s core all the way to the surface. A cost effective, sustainable, reliable and more environmentally friendly alternative, geothermal power has historically been a limited source, only viable when near to tectonic plate boundary areas. However, with thanks to

further technological advances, the range and size of these viable resources has increased, leading to much more potential for everyday applications and long-term, even in the neverending attempts to mitigate global warming if it is capable of replacing the unfavourable use of fossil fuels. The International Geothermal Association projects growth in

KENGEN

this sustainable alternative to 18,500MW by 2015, due to the various projects already under consideration. From the period December to May this year, the Kenya Electricity Generating Company (KenGen) announced that geothermal remained the dominant source of electric energy, contributing an estimated 300kWh, in comparison to only 260kWh received from hydro sources in the country. Albert Mugo, Managing Director and CEO at KenGen, said: “Kenya is now relying heavily on geothermal with the entire capacity of the 280MW coming on stream from December last year. The impact

of geothermal is positive in stabilizing our revenues.” This huge potential in geothermal is due in thanks to the discovery of the Olkaria OW721 – one of the five biggest geothermal wells in the world – it will be connected to Olkaria IV. Much of KenGen’s success with the drilling of these wells can be attributed to its longstanding expertise in geothermal exploration, work-class expertise and improved and innovative technology. “The new well which is among the biggest in the world firmly positions Kenya as a major geothermal power producer globally and helps to realise the Government’s goal of 5000MW in the next thirty months,” Mugo

said in a statement. In a bid to boost Kenya’s aim to triple its power generation capacity to 5,000MW, the well discovery with a production capacity of 30MW, is located in the renowned geothermal rich Olkaria area, 200km north-west of Nairobi. 3,000m deep, the Olkaria OW-921 took 46 days to complete.

ENERGY GENERATING ROOTS KenGen, the Kenya Electricity Generating Company Ltd, has roots dating back to 1954 when the Kenya Power Company (KPC) was first commissioned to construct the transmission line between Nairobi and Tororo in Uganda and to begin developments of geothermal and

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other generating facilities in Kenya. Under a management contract, KPC was managed by the Kenya Power and Lighting Company (KPLC), but in January 1997, following a result of new reforms being undertaken within the energy sector, the management of KPC formally separated from KPLC. And in October 1998, KPC was relaunched under the corporate identity that it is recognised as today – the Kenya Electricity Generating Company – which subsequently took charge of all publicly owned power generating plants. Now the leading electrical power generation company operating in Kenya, KenGen produces 80% of electricity consumed in the country. Integrating various sources of energy generation, including geothermal, thermal and wind, hydro once took the position as the leading energy source but the potential of geothermal has proved to be a much more viable source in recent months. Hydro does not hold a particularly stable position in Kenya’s energy mix as it is very much dependent on the weather and due to low rainfall in recent months, this has led to a poor inflow of water to the generating dams – subsequently reducing dependence on this energy source. “The country has not experienced power rationing despite low water levels in the hydro generation dams on the Tana Cascade - this is because the 280MW project has helped to bridge the power deficit,” the company said.

OLKARIA GEOTHERMAL PROJECT With the commissioning of the 280MW project in Olkaria last year, geothermal now accounts for more than 50% of the electricity

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consumed by Kenyans. In an attempt to further boost its geothermal power production programme, KenGen has implemented mobile wellhead plants which are far quicker to deploy. With 14 wellheads now in the pipeline, these generation units are currently providing a total of 45MW of electricity. The Olkaria 280MW project comprises the 140MW Olkaria IV and the Olkaria I units 4 and 5 each with a capacity of 70MW. In December last year, KenGen connected the full 280MW of Olkaria geothermal power to the national grid, with the aim and continued hope of lowering the cost of electricity in Kenya. “We can now confirm that all the 280MW is running and stable on the grid. Indeed, we are very excited about this milestone. We not only see it as a score for KenGen, but also for Kenyans in general as it helps to further reduce the cost of power by displacing the expensive thermal fuel. At the same time, it will help to stabilise the country’s power supply by reducing dependence on hydro, which is prone to weather variations,” said Mugo. With this now connected, Mugo explains the focus is on adding further power to further support the Government’s plan to inject 5,000MW by 2018. “With the implementation of the 280MW Olkaria geothermal project now behind us, we are focused on the next phase which includes the implementation of 350MW comprising Olkaria I, Olkaria V and Olkaria VI projects.” With a total capacity of 350MW, it was announced in June that KenGen is continuing to drill wells to supply steam for an additional 70MW unit at the more recently

commissioned Olkaria I Unit 4 and 5 plant. Over the next few years, the company hopes to develop the 140MW Olkaria V and Olkaria VI plants respectively. “Olkaria V Power Plant is a 140MW project. Steam available for this plant is 166.4MW while the other 140MW Olkaria VI plant has 124.3MW of available steam,” explains KenGen’s Director for Geothermal Development, Eng. Abel Rotich. “Testing of other wells is in progress. We are also drilling more wells which shall cover our requirements going forward.” Exceeding the requirements and necessary steam levels for these three projects under its drilling program, it is hoped that this will help in guaranteeing the projects will be financed. It also means that the company has provided steam for future plants in the pipeline - once more highlighting KenGen’s world-class expertise and unmatched experience in geothermal exploration.

KENYA’S WIND POWER Standing as the only producer of wind energy in Kenya, KenGen operates the 25.5MW wind project based at Ngong, outside of Nairobi. Plans to implement this development site began in the early 1990s with just two commissioned wind turbines located at the site, donated by the Belgian Government. Although since retired, the information and data these two turbines provided over the course of 14 years helped to show KenGen that the location had potential to generate up to 14.9GWh of energy per annum. Works began in May 2008 with six Vestas V52-850kV wind turbines subsequently commissioned in the summer of 2009 - with the total

KENGEN installed capacity rising from 5.1MW to 25.5MW. Currently, just 1% of power generated in Kenya is generated from wind power but this figure is expected to rise to 11% - all with the aim to achieve the Government’s 2018 plan for energy generation. In July this year, it was announced that a new wind power farm is to be constructed and commissioned in Meru County, eastern Kenya. Financed by a number of investors, including the French Development Agency and the German Development Bank, Meru Country is an ideal location with a positive wind corridor. Signing the Memorandum of Understanding (MoU) in October last year with the County Government of Meru for the acquisition of land to develop the 400MW wind project, a feasibility

study was also undertaken a few years ago showing the adequate wind in Meru, enough to generate up to 400MW of power. KenGen expect the first phase to be completed by December 2017 - generating 100MW – it is estimated to cost $270 million (Sh26.5 billion). Once the project is completed, it has the potential to rank as the one of the biggest wind farm projects in Kenya. In a statement, Albert Mugo said: “We have developed internal capacity to implement the wind project, we see a lot of potential in wind power. It is likely to become a big thing in Kenya and we are part of a group of businesses taking leadership in wind power development in the country.” Wind energy is just another way in which KenGen is looking to diversify its business to generate

cheaper and more renewable sources of power production. In a bid to reduce costly dieselgenerated energy, KenGen has been exploring and utilising the use of wind, steam and hydro to great success. With plans to use up to $1.3 billion (Sh127 billion), predominantly in concessional funding, over the next few years on more sustainable and renewable energy projects in the country, such discoveries as the new well, Olkaria OW-921, will help in positioning Kenya as a major geothermal power producer globally. And with its plans to add at least 3,000MW to the National Grid by 2018, KenGen is certainly on track to help implement the proposed plans of the Kenyan Government to generate 5,000MW of geothermal power by 2018, helping to reduce the cost of power and enhancing Kenya’s energy stability

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PAGE 73

Thriving on competition Editorial: Rosie DeWinter

Last speaking with Narish Nathan, CEO of Eversendai Offshore, in December last year – the core values of this company have not changed, continuing to build solid foundations as a reliable and trusted offshore fabricator. With the Ras Al Khaimah facility, situated in RAK Maritime City, now nearing final completion, Nathan explains the company continues to prosper, despite the inevitable competition it faces… A company started in 1982 by founder Tan Sri AK Nathan, Eversendai was first contracted by a Japanese client, Tameshi Yamaki, to build Malaysia’s very first car plant – the Malaysian National Car Plant – which was used to produce proton vehicles. Today, it is one of the most trusted and reliable steel fabricators and contractors

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operating in the industry, responsible for many notable projects over the years, it has fabrication facilities in India, Dubai, Malaysia and Qatar, with its largest now in the last stages of completion in the UAE. In 2011, Eversendai made the decision to venture into the offshore oil and gas industry using its extensive fabrication

yard in the UAE – Ras Al Khaimah – as a platform and gateway for the valuable offshore market.

THE RAS AL KHAIMAH FACILITY The largest of the Group’s six fabrication yards, Ras Al Khaimah is now 95% complete and is on course for final completion later this year,

EVERSENDAI OFFSHORE

with only the finishing touches now to finalise. Between all six fabrication yards, Eversendai has a combined fabrication capacity exceeding 250,000 tons. “It’s 95% complete and in January this year we started fabrication works so we have been running it as an operational facility since then. The development is already completed, it is just the final works that need to be tied up – the offices are now being fitted out for example along with the electrical works,” explains Narish Nathan, speaking to Total World Energy last month. Constructed to successfully build offshore and marine fabrication units, the near-completed facility sits on a 200,000m3 plot at RAK Maritime City and boasts 550m of quayside facilities. Eversendai’s first venture into the offshore industry came with a contract

to build two jack-up vessels – these are used to carry out fabrication works on plants offshore. Awarded in May 2014, Eversendai Offshore was awarded the contract for the engineering, procurement and construction of two GustoMSC NG-2500X liftboats with a combined valuation of RM580 million ($180 million) from Vahana Offshore. Speaking to us at the end of last year, Nathan explained: “The liftboats are being built for Vahana Offshore. This is a private arm of the holding company of my father’s investments. We are not building to sell, we are building it to look for long-term lease contracts. We are feeling very positive with the talks we have been having so far with the leading industry players.” The two liftboats, Aryan and Arjun, will have a rectangular hull and four 95m truss-type legs with electric

drives and pinion jacks, allowing them to jack up in water depths of 70m. Additionally, each will have a 300 tonne crane, accommodation for up to 150 operatives and dynamic positioning systems. In January this year, Eversendai Offshore announced the completion of the keel laying for both jack-up vessels which are largely built in a series of pre-fabricated complete hull sections rather than built around one single keel. Keel laying recognises the lowering of the first module into place in the building block. “We are pleased to note our progress in executing this project as it substantiates our decision to venture into the oil and gas (O&G), petrochemical and process plant construction sectors. “We look forward to successfully completing this project whilst boosting

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ris

hN atha n | CEO

our efforts and simultaneously intensifying our presence in the O&G industry. We are positive that all our efforts and initiatives that have been set in place would lead to more opportunities for the group to secure new contracts on a global scale. “We anticipate our foray into this sector to be a significant contributor to Eversendai Group’s earnings in time to come,” Tan Sri AK Nathan said in a statement. Both liftboats are now on course to be delivered by mid-2016 with the jacking system now in place – “These are coming along as planned, I think we are 40-45% complete in terms of progress and are on course for our scheduled delivery next year. We are now actively bidding on further liftboat projects, so we are hopeful for that,” explains Nathan.

ESTABLISHING A LEADING POSITION As a relatively new player in an established marketplace, Eversendai

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Offshore has ensured it maintains the key qualities that its parent company has long-since established. An avid believer in systems and procedures and ensuring it remains true to its corporate philosophy, Eversendai has built a reputation on maintaining strict safety rules and efficient deliveries without compromising on quality. Speaking last year, Nathan explains: “There are not many players in town that can compete with us - we will be competitive. Our hallmark has always been at Eversendai that client commitment and quality, and satisfaction of the client is extremely important. Safety has also been of paramount importance for us and of course we deliver what we commit. “In 30 years, we have not delayed a single job. That track record has resulted in people inviting us to bid for projects.” With a reputation that now precedes it, Nathan tells the positive feedback that Eversendai Offshore has received from clients visiting the UAE facility: “I must say that we have started off rather aggressively in terms of the people we employ

and the facilities that we have. I’ve got feedback from clients who have visited our facility and it has been tremendous, going as far to say that it is the best facility they have seen in the region. “In terms of infrastructure, in terms of employee capability and execution, I think we have the people on board and we have the ability to execute, which for a new yard, I certainly think is a challenge. We have executed it well and I believe the people we have are top notch,” explains Nathan. In an industry which is so extensive and varied, competition is inevitable but Nathan explains this is where Eversendai Offshore thrives and excels. With a wealth of experience in fabrication, construction and engineering behind it, the company is now able to implement this into its future offshore endeavours. “There is always competition in whatever you do but it is what sets you apart from the others. We have been able to grow our business as a group over the last 30 years, across Malaysia to the Middle East to India and South East Asia, so we have grown the business with competition,” Nathan explains. “We like to stretch ourselves and see what can set us apart from the others and that allows us to do better and to show the client that we are the right choice actions certainly speak louder than words.”

CORE STRENGTHS Nathan explains that much of the company’s success, both as an onshore contractor and offshore fabricator, can be attributed to its roots and not deviating from what has earned it such a reputable position today. “We have grown our business as Eversendai, a structural steel

EVERSENDAI OFFSHORE erection company to a fully-fledged steel contractor, building power plants. Building and construction and engineering is our DNA – when we set up this facility, we had to go back to our roots, back to our core strength of fabrication.” So what is it that separates this newly constructed facility in RAK Maritime City from the many others operating within the region? Nathan does not describe Ras Al Khaimah as a traditional shipyard – while many will do assembly work and fabrication, he explains that Eversendai Offshore leverages on its core strengths of fabrication, engineering and construction – strengths which the company has continued to build upon for more than three decades. “We have a good facility – we have the right equipment, a huge covered area for doing large assemblies, even during the hot summer months, and a large waterfront area with an unobstructed area to the sea. We have fine-tuned it and using our core strengths, have put our new facility into action.”

“Building and construction and engineering is our DNA – when we set up this facility, we had to go back to our roots, back to our core strength of fabrication”

the years in fabrication and engineering sectors, Nathan concludes that Eversendai Offshore is now looking to maintain its position as a strong and valued player in the offshore region: “I think our target is to remain as a strong player in the region, although we are still new, we want to position ourselves as a strong leader in this sector. Looking beyond, to ensure we are not only strong in the region but that we are able to work from any part of the world which requires fabrication, jack-ups or platform construction.”

A FUTURE OF GROWTH Looking to the future and it is one of continued expansion and development for Eversendai Offshore. Speaking to Construction Weekly Online, Tan Sri AK Nathan said of the future: “We are still growing – we are going to employ more people going forward. We are not just going to stop with the liftboats. We also want to get into offshore platforms, modular construction and petrochemical plant construction. These are areas where we really would like to concentrate, expand and develop the business.” Establishing a solid reputation which coincides with the one Eversendai has cemented over

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PAGE 77

Drilling and beyond Editorial: Annabelle Withering

Since its inception in 2004, Gulf Drilling International has established itself as a prominent and reliable onshore and offshore oil and gas drilling company – and with GDI’s newly appointed CEO, Mr Mubarak Awaida Al Hajri, now at the helm, he is reassuring of a bright and dedicated future ahead: “It will take a total team effort to attain the successes that we aspire and I look forward to working with my fellow employees at GDI to focus on the mission, vision and values that have been set for the company.”

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GULF DRILLING INTERNATIONAL Proud to hold the 3Qs title, Gulf Drilling International (GDI) is building the first ever liftboat in a Qatari shipyard for a Qatari owner to serve a Qatari company. A subsidiary of Gulf International Services (GIS), the largest oilfield services company in Qatar, GDI was established in the industry more than a decade ago as the first onshore and offshore oil and gas drilling company in Qatar. Last year, following the 5-year QR1.28 billion contract from Qatar Petroleum to provide offshore drilling and rig services, which included the construction of the Dukhan jack-up rig, it underwent its final commissioning and testing at NKOM Shipyard (Nakilat-Keppel Offshore & Marine Ltd). Here, various third party equipment was installed and drill pipe loaded onto it to ensure specifications were met and acceptance from Qatar Petroleum’s was achieved. Dukhan was delivered in August last year from the Keppel FELS Shipyard in Singapore before it was dry towed to Qatar - nine days ahead of schedule, on budget and with a sound safety record. Built to Keppel’s proprietary KFELS B Class design, the high specification rig included numerous custom built features which allow it to work anywhere in Qatar and able to accommodate up to 150 people. Features included a 15,000 PSI choke system for well control - allowing it to drill wells through 30,000ft with a cantilever that can skid out 75ft from the edge of the hull to drill wells, offline stand building and 7,500 PSI mud pumps. Former Chief Executive Officer at GDI, Mr Ibrahim J. Al-Othman, said in a statement: “I am pleased to see this rig sail out safely to its first well location in Qatar ahead of schedule. This marks

the 5th state of the art cyber rig of GDI’s fleet and will serve to further enhance our operational capabilities while lowering the average age of our rigs. The inspection and acceptance process went very smoothly, allowing drilling services to commence earlier than expected. I want to thank QP for their excellent support and cooperation, which made the early start of drilling operations possible.” Dukhan stands as the fourth jack-up rig to be delivered to GDI by Keppel, following Al Khor, Al Zubarah and Les-hat. Still under construction and due for delivery early next year, Halul will be the fifth KFELS B Class jackup rig GDI has ordered from Keppel FELS, in a $227 million contract, with GDI holding options to order two more KFELS B Class rigs for deliveries in 2017. Customized to meet GDI’s requirements, Halul is designed to operate in the Middle East’s higher ambient temperatures and will be chartered to state-owned Qatar Petroleum for five years. “We are pleased to have been chosen by GDI to build another benchmark jackup for them. The KFELS B Class has established itself as a reliable high specification jackup for the Middle East with more than 10 such rigs successfully operating there,” Wong Kok Seng, Managing Director of Keppel O&M (Offshore) and Keppel FELS said in a statement.

COMPANY ASSETS In January this year, GDI signed a contract with Gulf Liftboat (GLB) for the provision of liftboat services to Dolphin Energy. Works began the very same month and have been ongoing through to August this year. Providing Dolphin Energy with vital support for its operations, the new

contract will enable GDI to continue serving a growing business within the offshore industry too. The new liftboat – Al Safliya – is set to replace the first, Dixie Patriot, currently employed by Dolphin Energy, and is under construction at NROM shipyard. GDI is on schedule to take delivery of the liftboat in December this year before it is set to go to work for Dolphin Energy early next year under a 5-year contract. In a statement earlier this year, Mr Al-Othman said: “We are pleased to continue our relationship with GLB and to be using the Dixie Patriot again. GDI began using the Dixie Patriot for its first liftboat job with DEL back in 2013. GDI’s relationship with GLB has endured two years and will be continuing for another eight months. GLB has stood side by side with GDI throughout the DEL contract and I am glad to say that the relationship has proved to be durable. “We also appreciate the confidence that DEL has placed in GDI and are grateful for the opportunity to continue providing liftboat services to such a highly valued client. “They are a complement to our core business of drilling and represented a diversification into a business segment that broadens GDI’s business footprint while enhancing its prospects for sustainable profitability,” Mr Al-Othman added. “GLB is thrilled to continue providing liftboat services to GDI with the Dixie Patriot. The company is grateful for the confidence that GDI has shown in GLB over the past two years and looks forward to building on the successful cooperation that has developed between the companies,” said Hans Simons, Chairman of the Board of GLB. Visiting the Al Safliya liftboat project site at NROM in Ras Laffan earlier in the year, the Dolphin Energy team were invited to see the progress being made

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team effort

on the liftboat which is set to replace the Dixie Patriot currently under contract. At the time of the visit, all works were on schedule with the blocks mostly completed and set to be joined together to form the hull – the jack houses and spud footings were also under construction and the leg sections underway. In the second quarter of this year, in was announced that both GDI’s onshore land rigs, GDI-7 and GDI-8, have now been completed at the project site in the US. Ordered last year for SDS rig builders in the USA, GDI-7 is ready for shipment from Houston with GDI-8 to follow shortly. While one of the land rigs is to support drilling at the current Dukhan field in Qatar, the second is set to embark on explorations into deeper and harsher environments.

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Equipped with top drives, GDI-7 is 1500 HP while the GDI-8 is 3000 HP – making the latter the biggest rig in the company’s onshore fleet to date.

NEW BEGINNINGS & FUTURE SUCCESSES In June this year, Gulf Drilling International bid farewell to CEO of six years, Mr. Ibrahim J. Al Othman, and welcomed on board, Mr Mubarak Awaida Al Hajri. With extensive experience at Qatar Petroleum, Mr Al-Hajrl has held the position of Operations Manager (Offshore Fields) at the company for the past 11 years before joining GDI. “GDI is known for being a progressive company so I am naturally excited to have an opportunity to build upon the foundation that has been laid and lead GDI on to further accomplishments. It will take a total

to attain the successes that we aspire and I look forward to working with my fellow employees at GDI to focus on the mission, vision and values that have been set for the company,” Mr Al Hajri explains in the company’s latest newsletter. Although the recent oil prices will potentially affect GDI’s financial results for the 2015 year, the company remains hopeful and accepts that its challenge now is to minimise the impact of these results and to “reverse the trend.” Now looking to receive four assets – which includes the two land rigs, one liftboat and the high-spec jack-up rig – all have a multi-year contract in place. GDI-7 is to begin operations later this year, whilst GDI-8 and the remaining assets will be put into practise early next year, helping to place the company in an advantageous position for the start of 2016. “Given the formable challenges that lie ahead, the full support and dedication of every GDI employee will again be needed. I have no doubt that together we can do this,” Mr Al Hajri concludes

KENGEN

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Abu Dhabi counter flow for growth Editorial: Colin Chinery

As oil companies scramble to cut profit-doubtful projects, Abu Dhabi plans to invest over $25 billion in the next five years on boosting oil production capacity from offshore fields. Much of this investment will be directed through the Abu Dhabi Marine Operating Company - ADMA-OPCO - the pioneer with a mission to achieve optimum resource utilisation. Undaunted by low prices and deep cuts in oil and gas venture expenditure, Abu Dhabi is set to secure its position as a leading oil producer, with state-owned Abu Dhabi National Oil Co (Adnoc) unrolling a $25bn-plus investment over the next five years to increase offshore oil production capacity. The investment flow involves a $2.5bn annual spend on new offshore drilling activities, combined with an expansion of infrastructure to bring new wells on-line.

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The plan is part of the United Arab Emiratesâ&#x20AC;&#x2122; strategy of increasing its crude oil output potential to 3.5 million barrels a day by 2017-18 - current production is around 2.8 million bpd - and much of this investment will be directed through the Abu Dhabi Marine Operating Company (ADMA-OPCO). ADMA-OPCO is a major producer of oil and gas from the offshore areas of Abu Dhabi, a pioneer with over 45 years of experience in oil and gas

production, and a mission to achieve operational and technical excellence and optimum resource utilisation and value.

UNDEVIATING FOCUS A continuous focus on progressive change and corporate advancement has seen the company maintaining its commitment to realising long-term projects such as facilities expansion, new installations, additional drilling, production development, inspection and integrity management. Long prominent in ADMA-OPCOâ&#x20AC;&#x2122;s

ADMA-OPCO

portfolio are two established major fields - Umm Shaif and Zakum. Umm Shaif, 150 km from Abu Dhabi was first drilled in 1958, and Zakum 60 km out, five years later. Drilling in the offshore areas is currently handled by a fleet of drilling rigs leased from National Drilling Company (NDC). The techniques used have progressed throughout the years starting with vertical drilling, then deviated and are now horizontal. New concepts such as Drilling the Limit (DTL) have since been introduced to reduce time and cost of drilling operations while maintaining safe and high standards. Logistical support to the offshore operations is provided by the Supply Base in Mussaffah, with a fleet of helicopters and boats utilised to ferry personnel and load or unload materials. Oil and gas production and water injection is carried out at Zakum West, utilising Central Supercomplexes – giant structures installed in the 1960s and

1970s, made up of plants and platforms firmly placed in the sea like man-made islands and manned by skilled UAE and expatriate employees. The crude is then transferred through a sophisticated pipeline network to Das Island the main industrial base 150 km from Abu Dhabi for processing, storing and exporting.

MEGA FIELD Upper Zakum is one of the largest offshore fields in the world, stretching over 750 square kilometres and containing reserves of 50 billion barrels. However the field’s sub-sea base is low pressure with complex porous rock formations requiring the application of high-end technological and engineering skills. To accelerate progress in the technically challenging field, Abu Dhabi has reinforced its effort by bringing in foreign expertise in the form of ExxonMobil as an equity partner.

The world’s largest privately-owned oil company, ExxonMobil has been awarded a 28.8% stake in Zakum Development, with ADNOC holding 60% interest and Japan Oil Development 12%. Links with international oil majors have also been forged by Abu Dhabi’s International Petroleum Investment Company which has recently extended its partnership with Occidental Petroleum in the development of upstream and downstream ventures in areas in and outside the Middle East. New fields are also opening up under ADMA-OPCO’s expansion programme with fast-paced developments such as Satah Al Razboot (SARB), Nasr and Umm Lulu. Nasr, located offshore about 130 kilometres north-west of Abu Dhabi city began producing oil in January. Starting out at a rate of 6,000 barrels a day with a year-end target of 22,000 bpd production, the second phase is

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scheduled to bring production up to 65,000 bpd by the end of 2018. The SARB offshore oil field located 200km northwest of Abu Dhabi, is expected to add an additional 100,000 barrels per day of oil to the overall oil production capacity of UAE after commissioning next year. The Nasr field is part of ADMAOPCO’s programme to add an extra 300,000 bpd capacity to Abu Dhabi’s overall production levels - itself part of the Emirate’s broader strategy to raise production capacity from a current level of about 3 million bpd to 3.5 million bpd by 2017-18. In November, ADMA-OPCO signed three major contracts worth US$3 billion for the second phase of Nasr’s development, with Abu Dhabi’s National Petroleum Construction Company, Hyundai Heavy Industries of South Korea and Technip of France. Four weeks earlier, first oil began flowing from Umm Lulu. Produced through ZADCO’s facilities at Umm

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Al-Dalkh and Zirku Island, the 5,000 bpd start-out rate is expected to reach 22,000 bpd by the end of this year, with a full field development rate of 105,000 bpd by 2018. The Full Field Development includes six new wellhead towers to host 78 new wells, sub-sea pipelines carrying oil, water and gas, an offshore Supercomplex consisting of multiple processing platforms, central control by data transfer through the latest smart fields technology fibre optic cable. This is the first time ADMA-OPCO oil will be processed by another operator, and is a demonstration of the continued collaboration between the Adnoc Group of companies.

DYNAMIC EVOLUTION Set alongside the brilliant blue waters of the Arabian Gulf, Abu Dhabi is ambitious and dynamic, fast evolving across a multitude of industries and sectors. The largest of the seven Emirates that make up the UAE, it accounts for 96% of the

federation’s petroleum output, 9% of the world’s proven oil reserves and 5% of its gas reserves. The Abu Dhabi National Oil Company was established in 1971 to operate in all areas of the oil and gas industry. Since then it has steadily broadened its activity, establishing companies and subsidiaries. The result is an integrated oil and gas operation leading the way in exploration and production, support services, oil refining and gas processing and chemicals and petrochemicals, as well as maritime transportation and refined products and distribution. Over this same period, Adnoc - which has a 60% shareholding in ADMAOPCO - has expanded its business activities, enhancing its competitive position to become one of the world’s leading oil companies. Abu Dhabi’s $25 billion five year plan to ramp up investment to increase production at its offshore fields assumes a notably contrarian position to the oil price introspection and gloom.

ADMA-OPCO But as the IMF reported last month, the UAE economy is well prepared to withstand the impact of falling oil prices and consequent erosion in long-standing fiscal and external surpluses. “The UAE has continued to benefit from its perceived safe haven status and large fiscal and external buffers that have helped limit negative spillovers from lower oil prices, sluggish global growth, and volatility in emerging market economies,” said Zeine Zeidane, Advisor, Middle East and Central Asia Department. Unsurprisingly Adnoc is taking the long view. “You always want to build capacity, but the production rate is always governed by Opec and the government,” said Mr Al Kayoumi, manager of offshore division, exploration and production directorate at Adnoc. Adnoc will “focus on gas development because of the growing demand for gas. We are already working with our current operator companies to do appraisal activities and also with some potential partners through technical evaluation agreements to develop these fields, with a focus on gas development. We have all the confidence that these projects will be delivered on these times and with good quality.” The capacity enhancement programme has international significance, with the Emirate’s proven oil reserves of some 98.7 billion barrels representing 8% of global oil. And while there is considerable scope for the production increase, oil is currently produced at just 18 out of 67 potential fields and reserves are becoming harder and more expensive to extract. So while the UAE is one of the most significant oil producers in the world, the likelihood of further major oil discoveries is low,

with the result that enhanced oil recovery (EOR) techniques are being deployed to increase the extraction rates of its mature oil fields.

AIMING HIGH “Our aspiration is 70% cent recovery of recoverable reserves, and that is very challenging. But you always aim very high when it comes to recovery,” says Mr Al Kayoumi. EOR techniques are among those in which ADMA-OPCO excels. With its mission to develop oil and gas production to ensure maximum sustainability towards 70% recovery, the company uses state-of-theart technology whilst maintaining

responsibility, efficiency, the highest HSE, operational integrity and cost effectiveness standards. Late last year it signed an agreement with British Petroleum – like Adnoc, an ADMA-OPCO shareholder - to develop a new EOR technology. Under this, BP will provide support to ADMA-OPCO to carry out laboratory and field tests to evaluate Carbonate Ionic Design EOR potential in ADMA-OPCO fields. “EOR technologies will play a key role to meet the energy demand in Abu Dhabi in the years to come,” says ADMA-OPCO CEO Ali Rashid Al-Jarwan. “And we at ADMA-OPCO have an aspiration to reach an ultimate recovery factor of 70% for our fields.”

“Providing requisite technology for the oil and gas sector”

Head Office Bin Hamoodah Tower, Capital Centre (near ADNEC) 17th Floor (Reception) and 16th Floor Khaleej Al Arabi Road P.O Box 6203, Abu Dhabi, United Arab Emirates Email: Switchboard: Fax:

gasos@gasosauh.ae +971-2-8135900 +971-2-6276150

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A landmark achievement Editorial: Rosie DeWinter

Ranking among the world’s top three leading offshore wind power companies, E.ON proudly announced earlier this year that the Humber Gateway wind farm project off the coast of Yorkshire, UK, began generating electricity two months ahead of schedule and with the last turbine laid in April – it is set to generate enough climate-friendly energy to power 170,000 homes. Developed by Humber Wind Limited, a subsidiary of E.ON UK, plans for the Humber Gateway wind farm began more than ten years ago following a bid from E.ON to the Crown Estate to develop an offshore wind farm located off the Holderness coast, north of the mouth of the River Humber in East Yorkshire. Following this initial bid, E.ON, the world’s third largest offshore wind operator, submitted a planning application in 2008/9 for the wind farm, an offshore substation and onshore underground cable and in February 2011, the UK government awarded planning approval for a 230MW – 77

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turbine – wind farm. Following this governmental approval, E.ON began plans for a 219MW wind farm with a total of 73 turbines and a completion date set for the spring of 2015. Situated 8km east of Spurn Point off the coast of the East Riding of Yorkshire in the North Sea, Humber Gateway wind farm covers an area measuring 9.7sq miles. Sitting in water depths of 15m, the offshore wind farm is located within the Greater Wash strategic environmental assessment area - recognised in 2002 as a suitable area for offshore power generation by the UK government for its

close proximity to the National Grid and favourable wind conditions. Corporate Communications Manager, Markus Nitschke explains: “After considering a number of alternative sites we believe Humber Gateway is an ideal location for the generation of offshore wind energy, with its high winds and good connection into the National Grid. A key part to the project is the connection of the offshore wind farm into the National Grid onshore. Connected through onshore and offshore cables linked to a substation, these are essential components to the project, as the cables are needed to feed the electricity

HUMBER GATEWAY WIND PROJECT

generated by the wind farm into the National Grid for distribution around the UK. “The offshore cables will bring ashore the electricity where it will adjoin the onshore cables that will run underground for approximately 30 km from Easington to Salt End. Two substations, one onshore and one offshore, will be needed to step up the voltage of the electricity that is generated by the turbines to connect into the National Grid.” Onshore construction works at the project site began in the first quarter of 2012 for the onshore cable installation, substation connection to the National Grid and for the construction of an operations and maintenance base situated at Grimsby dock. While offshore construction works, including the installation of a subsea export cable and turbine foundations, began in 2013. Both construction phases helped in introducing local employment to the area, with up to 1,000 people employed, with an additional 30 jobs during the operational and maintenance phase. In a bid to transform a derelict site at Grimsby fish docks for the wind farm’s maintenance and operations base, E.ON invested an estimated £4 million

– helping to improve the surrounding quayside for vessels.

AHEAD OF SCHEDULE Due to be operational this summer, the final wind turbine at the Humber Gateway site was laid in April this year and in June, it was announced that all 73 wind turbines were up and generating two months ahead of schedule. Power from the wind farm will then be fed into the National Grid through an offshore cable laid from the wind farm to Easington, where it will then adjoin a 30km underground onshore cable running up to Salt End. Matthew Swanwick, E.ON’s Humber Gateway project manager, said: “This is the last stage of the major construction phase and the culmination of more than three years’ offshore construction work which began in early 2012 starting with work at the onshore substation. Reaching this milestone two months early is immensely satisfying for the project team and something which we are all very proud of. “Throughout construction we’ve had to overcome more than our fair share of challenges, including particularly difficult weather conditions, which the team

rose to and successfully overcome. We still have some secondary works to complete but I’d like to thank everyone involved in the success achieved so far.” First electricity was generated from the project site in February this year and it is hoped that once the wind farm is fully commissioned, it will generate enough electricity to power an estimated 170,000 homes. “I welcome the news that the Humber Gateway is soon to be fully operational – ahead of schedule. E.ON’s investment on the site of the former Grimsby Fish Docks has been a major contributor to the regeneration of the port estate and is one of the many investments in the offshore sector that is proving to be the renaissance of the local economy, providing a wide range of jobs,” commented Martin Vickers, Cleethorpes MP. Humber Gateway follows in the footprints of numerous wind projects now operating within the region, including DONG Energy’s Westermost Rough Wind project. Centrica’s Lynn, Inner Dowsing and Lincs Farm projects are all managed from Grimsby, with all 237 wind turbines operated and maintained from North East Lincolnshire

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and all generating clean, green and renewable energy to the grid. The Humber Gateway Offshore Wind Farm now stands as one of several major renewable energy sites within E.ON’s portfolio which includes the London Array, the world’s largest offshore wind farm. E.ON is also building Amrumbank West offshore wind farm in the German North Sea and in May this year, the company announced it is to move forward with Rampion, a 400MW project located off the south coast of England. Speaking in June, Melanie Onn, Grimsby MP, said: “Wind and other renewable energy is where the future lies for Grimsby, and the Humber Gateway project has already provided permanent jobs for local people, as well as work for local contractors. Offshore wind is a crucial part of the UK energy supply, helping us to secure a home-grown energy future and providing clean

power to homes and businesses in Grimsby and beyond. I look forward to working with E.ON on reaching out to young people in the constituency to link renewable jobs to local training and skills.”

SEAPLANNER SOFTWARE It was announced last month that SeaRoc has been awarded the operations and management contract on the Humber Gateway project by E.ON – managing this important phase through its software system, SeaPlanner. An industry leading marine management system and monitoring tool, which to date has helped with the efficient construction of over 700 UK offshore wind turbines, the SeaPlanner software is an innovative mix of modular, webbased marine management and

monitoring tools which can be customised, allowing the customer to have complete project control and visibility. Providing E.ON’s operation and management teams with a complete monitoring system, the software includes personnel and vessel tracking, certification management and the latest feature of the software – Induction Manager – which will help to both minimise costs and administration time for personnel and contractors. Katie Wright, Maintenance Coordinator at E.ON’s Humber Gateway Wind Farm, said: “SeaPlanner has helped us maintain both safety and efficiency. We’ve been impressed with its capabilities and believe it to be a cost-effective solution, making it the preferred choice for the generation phase of Humber Gateway.” The SeaPlanner software has

Innovative solutions to engineering installation problems. Specialists in shallow water cable installation services, ICS (Installations) Ltd has been working in the subsea cable installation industry since 1999 when it was set up by founder and CEO, Lloyd Lewis Porter. With more than 23 years of experience within the Cable Installation Industry, Porter made the decision to diversify the business seven years ago, venturing into the windfarm and power cable installation sector. Providing innovative solutions to installation problems, from shore ends, cable transportation and transfer operations to shallow water cable repair operations - ICS ensures that its systems take into careful consideration the properties of the cables, helping to guarantee that cable integrity is not compromised.

The Atlantic Carrier

Perfectly suited to shallow water cable operations, the Atlantic Carrier has an operating draught of 3.4m which enables her to get much closer to the beach than a conventional cable layer - reducing the length of shore end pull and helping to de-risk the operation. Designed specifically for Array Cable Installation, the Atlantic Carrier has the capability to carry 400-tons of subsea cable and is able to operate in high current environments. Augmented with a 6-point Mooring System and a full cable lay spread, this allows her to lay cable both of the Port and Starboard Side. Recently upgraded to DP2 and DNV classified, the Atlantic Carrier underwent her full five year class dry docking in 2014 and is now ready for five more years of operations with ICS Installations. Atlantic Carrier in co-operation with Atlantic Marine and Aviation LLP. See for full details of Fleet and Capability.

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HUMBER GATEWAY WIND PROJECT been used on the project since April 2012 – providing both personnel and operations management during the construction phase. With extensive industry insight gathered from the last eight years using offshore data, the innovative software has helped to provide E.ON with an ideal solution for managing both the operations and management for the project.

AN OUTSTANDING SUCCESS ABB was awarded a $15m contract for the design and supply of 2 x 14 km circuits of 132 kV 3-core AC submarine cable, with integrated fibre optics and accessories to connect Humber Gateway to the mainland grid. TAG Energy Solutions was contracted to provide monopole foundations for the turbine towers of the offshore wind project and DEME (Dredging, Environmental and Marine Engineering), on behalf of E.ON UK, performed the definitive geotechnical site investigation for Humber Gateway. Danish wind turbine manufacturer, Vestas, were contracted to provide the 73 V112 3.0MW wind turbines which are equipped with energysaving CoolerTop™ technology, allowing the coolant used in the turbine’s cooling system to be cooled by channelling wind into the radiator – helping to reduce the turbine sound levels. On the project site, three meteorological masts will be installed to check on the weather conditions and measure the changing wind speeds and with an expected operational lifespan of 40 years based on the length of the Crown Estate lease – the wind turbines are expected to be replaced at 2025 years.

Taking over responsibility for the company’s renewables business earlier this year, Bernhard Reutersberg said: “The rapid completion of this project is an outstanding success. E.ON is well on its way toward making offshore wind power even more competitive and reducing power-generation costs to less than €100 per megawatt-hour. We’re superbly positioned for future auctions in relevant European markets.” Providing enough electricity for an estimated 170,000 homes on final completion – which,

incidentally, is equivalent to around one and a half times the size of Hull in the UK – Humber Gateway stands as one of the largest offshore wind farms in the UK. Now, with the news that it has generated electricity two months ahead of schedule, this only further cements E.ON’s continued commitment and investment in low-carbon and renewable energy generation, and with further wind farm projects now in the pipeline, it is helping to secure a successful and invaluable future for Britain’s energy infrastructure too

ICS Installations has 17 years in the Subsea Cable Installation Industry with 8 years in wind farm and power cable installation ICS (Installations) Ltd is committed to the objective of providing the best technical solution, engineered to meet the requirements of the project without compromise to the safety of the subsea asset or personnel. The layout of the Atlantic Carrier has been applauded for its safe working deck and work practices of its personnel.

Services include: • • • • • •

Array Cable Installation, Power Cable Repair/Replacement Operations Fibre Optic Shore End Installations Fibre optic shallow water jointing operations Cable Protection Application Equipment Rental

Atlantic Carrier in co-operation with Atlantic Marine and Aviation LLP. See www.atlantic-marine.co.uk for full details of Fleet and Capability. Web: www.ICS-Installations.com Email: info@ics-installations.com Tel: +44 (0) 7802214444 Address: ICS (Installations) Ltd Maritime House Basin Road North Brighton and Hove East Sussex. BN41 1WR England

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The reliable storage partner for liquid bulk Editorial: Harriet Pattison

“Whether we are providing exceptional storage services, creating profitable outsourcing profits, or engineering successful joint ventures, you will find us wherever there’s a need for creative logistical solutions” – providing vital connecting services between the world’s oilfields and the users of derivative products, Oiltanking GmbH is recognised as the second largest independent tank storage provider for chemicals, petroleum products and gases worldwide. A subsidiary of the leading petroleum and family-owned company that operates within the fields of trading, energy supply and logistics, Oiltanking GmbH, head-quartered in Hamburg, Germany, is a subsidiary of Marquard & Bahls. Standing as the second largest independent tank storage provider for chemicals, petroleum products

In July this year, Oiltanking GmbH announced the 100% acquisition of the shares of Vopak Chemicals Logistics Finland Oy, in a deal that will more than triple the company’s capacity in Finland alone. It includes two terminals for the storage and handling of bulk chemicals and petroleum products located on the

Once the acquisition has been finalised, the terminals of both companies will be consolidated and so will form Oiltanking Finland Oy. The total storage capacity of the newly consolidated company will then increase to 257,100 cbm with 75 tanks ranging in size from 500 to 10,000 cbm. Finland currently sits as one of the

and gases worldwide, Oiltanking now owns and operates 73 terminals in 22 countries, including Europe, North and South America, Africa, India, the Middle East and Asia, with an impressive storage capacity that has reached 19.4 million cubic meters (cbm).

South East coast of Finland, in Kotka and Hamina. With a combined capacity of 175,400 cbm, these will be added to Oiltanking’s existing terminal in the region, under the name of Oiltanking Sonmarin Oy, with a total storage capacity of 81,700 cbm.

key transit hubs for both the export and import of chemical and petroleum products in relation to Russia and other FSU countries. The acquisition of the new tank terminals, together with the existing well equipped with storage capacities, will aid in strengthening

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OILTANKING GMBH Oiltanking’s ability to service this market. The terminals in Kotka are connected to two jetties – 10m and 13.5m draft – in Kotka and two others – 9m and 10m draft – in Hamina, enabling products to be received and loaded out by sea, tank containers, railtank cars and by trucks.

OIL STORAGE TERMINALS With clients including private and state oil companies, petrochemical companies, refiners and traders in petroleum products and chemicals, Oiltanking has established a long list of services including oil storage, chemical storage, dry bulk, EPC, biofuel storage and pipeline. An international terminal company, Oiltanking now has deepwater terminals in Europe, Asia, North America and South America. In recent years, the company looked to diversify its business into offering creative logistical solutions. Set to take over storage infrastructure, Oiltanking helps to add value with downstream processing services, offering specialised engineering services. The company explains: “Whether we are providing exceptional storage

services, creating profitable outsourcing profits, or engineering successful joint ventures, you will find us wherever there’s a need for creative logistical solutions.” Providing expertise in design, engineering and construction, Indian Oiltanking (IOT) is well-established in constructing state-of-the-art terminals across India, providing EPC services, it combines world class quality with efficiency and cost-effectiveness. Looking to pursue projects in the Middle East and Asia regions, focusing on engineering consulting and terminal constructions and pipelines projects for a variety of energy supply industries, including; petroleum, petrochemical and power industries; IOT maintains a close association with Oiltanking to ensure world class standards are advocated across the board and throughout IOT Indian terminals.

SALDANHA BAY PROJECT In May this year, Oiltanking MOGS Saldanha (RF) (Pty) Ltd (OTMS) – a joint venture between OTGC Holdings (Pty) Ltd and MOGS (Pty) Ltd – responsible for the construction and operations of

the project, announced that detailed engineering works for the development and construction of its Storage Terminal in Saldanha Bay, had commenced. The new South African commercial crude oil blending and storage terminal, on completion, will have a total capacity of 13.2 million barrels (bbls) stored in 12 in-ground 1.1 million bbls concrete tanks situated in Saldanha Bay. A major milestone for the Saldanha Bay project, the start of the Front End Engineering Design (FEED) for the crude oil terminal highlights the significant progress that is being made with this project. This initial stage, scheduled to take six months, will include the earthworks, civil, mechanical and electrical components of the crude oil terminal and associated infrastructure which is due for completion in the first stage of 2017. Located in the Port of Saldanha Bay, the crude oil terminal will be constructed and completed as a state of the art facility, meeting and adhering to the highest safety and environmental standards for such a project. As part of the Environmental Impact Assessment (EIA), eight specialist

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studies were undertaken by independent experts and OTMS carried out a marine oil pollution control study to ensure all potential environmental risks were addressed. Continually looking to grow and upgrade its services and storage capacity, Oiltanking explains: “To further improve our shareholders value we continue to employ a strategy of controlled growth of our tank terminal-based service network through acquisitions, new buildings and upgrading of existing facilities.”

NEW STEEL STORAGE CAPACITY Back in October 2013, LyondellBasell and Oiltanking Stolthaven Antwerp finalised a new chemical storage pact, signing a ten-year agreement pertaining to the storage and handling of Glacial Acetic Acid (GAA) and Vinyl Acetate Monomer (VAM) in Antwerp. The agreement sees Oiltanking Stolthaven investing in rail loading infrastructure in

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Antwerp and new stainless steel storage capacity. “GAA and VAM are industrial chemicals that are in high demand. Europe has an increased need for these imports. This agreement allows us to solidify our commitment to the European acetyls market and continue to serve our customers’ needs far into the future,” said Justin Hommes, Marketing Manager, Acetyls and BDO-Derivatives of LyondellBasell in Europe. It was also announced in August this year that the Brazilian firm, Prumo Logistica, has sold 20% of its stake in the oil terminal in the port of Acu in Rio de Janeiro, a port it initially developed, for an estimated $200 million to Oiltanking. Located in the municipality of Sao Joao da Barra, Prumo constructed the $2.4 billion Port of Acu following many years of delays. Today, German buyer Oiltanking of Hamburg rates the full terminal at $1 billion - 1.5 times the market value of Prumo. Oiltanking will manage the oil

operations at the terminal, expected to commence later next year, following the new deal. The company’s contract will see an estimated 200,000 barrels a day of petroleum that BG will produce in Brazil’s offshore Santos Basin. And as production grows as a result from deepwater deposits off the coast of Brazil, the port will benefit substantially – with a capacity to transfer up to 1.2 million barrels a day of petroleum and the ability to handle very large crude carriers (VLCCs).

EXPANDING SUCCESSFUL PARTNERSHIPS Following these recent upgrades and acquisitions, Oiltanking chooses to develop partnerships to increase its strength and capabilities across other areas, as oppose to expanding into new business territories. “We see partnerships as a means to build our capabilities while remaining focused on our core business. And, while we expand, we’re always careful to grow

OILTANKING GMBH within the boundaries of our human and financial abilities. “We’ve already established several many excellent partnerships worldwide. Our role in each one varies, depending on the strengths of the partner involved – from expertise to supplying capital to providing human resources,” the company explains. In commitment to this, Oiltanking announced earlier this year the expansion of its existing partnership with 3i Infrastructure plc, following an agreement to sell a minority shareholding of 45% in Oiltanking Terneuzen BV, in the Netherlands and Oiltanking Ghent BV, in Belgium. Located in the ARA region, both terminals are situated in one of the world’s major hubs for petroleum products and chemicals. A state-of-the art terminal in the Netherlands, Oiltanking Terneuzen offers storage infrastructure for petroleum products and chemicals

– disposing of a total capacity of an estimated 500,000 cbm, it provides access to important and international rail and road networks. One of the largest independent storage terminals for petroleum products, chemicals and biofuels in Belgium, Oiltanking Ghent stands with a total capacity of more than 1 million cbm. Connected to the Central European Pipeline System (CEPS), the terminal is also favourably located next to prominent road and rail connections and berths for barges and seagoing vessels. Listed on the London Stock Exchange, 3i Infrastructure is a close-ended investment company and long-term investor in infrastructures assets and businesses. Following its acquisition in 2007 of a 45% stake in three Oiltanking terminals – Malta, Singapore and Amsterdam – 3i Infrastructure has maintained its

reputation as a strong and reliable partner. Following this announcement, Oiltanking, as the majority shareholder, will continue to manage and operate both terminals. Helping to fund the company’s world-wide growth of its independent storage terminal network, Oiltanking will ensure that the terminal organizations at both the Netherlands and in Belgium will remain unchanged and the strategy of an independent liquid storage provider will continue. Offering creative and effective solutions for businesses has helped to place Oiltanking in a truly advantageous and prominent position within the industry. “The Oiltanking name has become synonymous with trusted performance in the handling of bulk liquids – whether in the oil-derivatives or chemicals markets – and we want to maintain and expand that reputation.”

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Sustainable paving Editorial: Harriet Pattison

The rate at which rubbish and waste is accumulating at landfill sites and in our oceans is not only worrying but avoidable too. With thanks to new and innovative concepts to help tackle the issues surrounding recycling, it is hoped that a more sustainable future is not so wholly unattainable. This month, Total World Energy looks at PlasticRoad – set to be introduced in The Netherlands over the coming years, it is a road made entirely from recycled plastic bottles. Road surfacing and re-surfacing is a costly business, not to mention the continued impact it has on the environment in cities all over the world. Layers of Asphalt, composed of Bitumen, is poured over an aggregate of crushed sand and stone which in turn forms an Asphalt concrete used to build roads and highways in numerous countries.

England would cost up to £12 billion alone – this is an exponential cost, considering Asphalt is very resource and energy intensive – it’s about time a greener alternative to pave our roads was found and implemented. In 2014, Sydney rolled out a new pilot scheme to lay its roads with a new mix of Asphalt and recycled printer toner. Finding an innovative and commercial

of Melbourne in 2013, TonerPave, developed by road contractor, Downer and cartridge recycling company, Close the Loop; is 40% more energy efficient than the manufacture of standard Bitumen – subsequently helping to save 270kg of C02 emissions for every tonne produced. Sydney began its initial trial paving Burton Street in Darlinghurst and Watkin

Although a seemingly strong compound, you only have to look at the roads around you to see numerous pot holes and cracks resulting from the sheer volume of transport which travels across it on a daily basis. It is estimated that to restore all the road networks in

use for toner waste is certainly an ingenious idea. On average, 13% of toner in every print cartridge discarded is simply wasted, but only 100 toner cartridges are needed for every tonne of Asphalt. Initially introduced to the streets

and Church streets in Newtown and with Kent Street in the CBD next on the list to be resurfaced with the toner mix, it is hoped this new sustainable innovation will provide an encouraging platform, helping Sydney to reach its target to reduce greenhouse emissions by 70%

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FUTURE TECH: PLASTICROAD by the year 2030. From recycled printer toner to a new innovative concept involving the re-use of plastic bottles. In a recent study published in the journal Science, it is estimated, rather worryingly, that almost 275 million tons of plastic is generated each year in 192 countries all over the world – with up to 12.7 million tons of this being dumped into our oceans, that’s a staggering 5%. In the last year alone, Americans used an estimated 50 billion plastic water bottles. Combine this with the country’s poor plastic recycling rate, sitting at just 23% and this results in almost 38 billion water bottles wasted in only one year – equating to $1 billion worth of plastic. Clearly a big change needs to happen to begin making even a small impact on the damage we are doing.

PLASTICROAD Set to be introduced in the city of Rotterdam over the next couple of years, the Council there is looking for a greener, more reliable and convenient method of laying and repairing its roads. Last month, the construction firm, VolkerWessels, unveiled its plans for a surface to be made completely out of plastic.

The Netherlands is no stranger to trying and implementing new innovations, especially on its roads. In November last year, the Northern Province introduced SolaRoad - the world’s first public road service to be embedded with solar panels. Aside from this new concept standing as a solid green alternative, which is quicker to lay and far more reliable than Asphalt, PlasticRoad would require much less maintenance and would withstand greater extremes of temperatures, ranging from -40 degrees up to 80 degrees. A lighter alternative too, it would be far easier to transport and with a shorter construction time, local disruption and roadworks would also reduce. Jaap Peters, speaking from the city council’s engineering bureau, said: “We’re very positive towards the developments around PlasticRoad. Rotterdam is a city that is open to experiments and innovative adaptations in practice. We have a ‘street lab’ available where innovations like this can be tested.” A hollow material compared to Asphalt, using plastic would make it far easier to install cables and utility pipelines below the surface with its lightness allowing for sections of the road to be prefabricated in

a factory prior to being transported to site. Director of VolkerWessels’ roads subdivision, KWS Infra, Mr Rolf Mars said: “Plastic offers all kinds of advantages compared to current road construction, both in laying the roads and maintenance. “It’s still an idea on paper at the moment; the next stage is to build it and test it in a laboratory to make sure it’s safe in wet and slippery conditions and so on. We’re looking for partners who want to collaborate on a pilot – as well as manufacturers in the plastics industry, we’re thinking of the recycling sector, universities and other knowledge institutions. “Rotterdam is a very innovative city and has embraced the idea. It fits very well within its sustainability policy and it has said it is keen to work on a pilot,” Mars added. So, what’s next for road construction? Researchers at Wageningen University in The Netherlands have found an alternative replacement in Lignin, a substance found in trees and while ongoing research is also looking into the commercial use of Soybean, Canola Oil and even coffee grounds - who knows what we will be driving on over the next 10 years

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The Streets of Monaco Editorial: Harriet Pattison

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DESTINATION DIRECTOR: SUPERYACHT

It seems that for the world’s richest, a superyacht has become a significant sign of wealth and stance – measuring 163 meters, Russian businessman, Roman Abramovich’s ‘Eclipse’ has an estimated worth of $1.5 billion while the President of the United Arab Emirates currently holds the world record for the largest personal yacht, measuring an exponential 182 meters. Now, a new concept has been introduced by Yacht Island Design, for a superyacht that will replicate the illustrious streets of Monaco, including the Monte Carlo F1 grand prix track… PAGE 97

For the last 50 years, Monaco has been a hub for the mega rich, celebrities and wealth and now stands as one of the world’s wealthiest destinations. With the famous Hotel de Paris where legends including Frank Sinatra and Errol Flynn used to frequent, Monaco is also home to the world’s illustrious F1 race course, which has seen annual races held for over 70 years. In 2011, an initial concept was put forward by Yacht Island Design, the UK based company, for a $1.1 billion superyacht. The term yacht, is used rather loosely here however as the concept is actually a replica of the city, aptly called, ‘The Streets of Monaco’. The design is nothing if not remarkable, featuring numerous mini landmarks of the popular destination, it will replicate more a floating city for the world’s richest to indulge in true luxurious sightseeing and lounging away from shore. Recreating all the wonderful sites of the Mediterranean city, the four-deck cruiser will include the Monte Carlo Casino, Hotel de Paris, the Café de Paris, La Rascasse and Loews Hotel, not to mention outdoor swimming pools, Jacuzzi, tennis court and helipad. The Hotel de Paris, first opened in 1863, was a part of the initial development of this world famous city and features three recognised restaurants including the Michelin 3-star Louis XV.

recreate the circuit as a fully functional kart track able to accommodate three karts side by side to allow for plenty of overtaking. “By sizing the track in this way it has driven the overall dimensions of the yacht and the placement of the famous landmarks.” If it goes ahead, it will include capacity for 70 crew members and up to 16 guests to take full advantage of the beautiful surroundings on board. The yacht will also include a beach deck, a submarine allowing guests to take in the underwater sights and parking facilities for smaller yachts to moor up. “The design theme called for a unique yacht that reflected the style and sophistication of the principality,” McPherson explained. The Atrium stands as the centrepiece of the yacht and has been designed with the gardens situated outside the Monte Carlo casino in mind. It features an especially large ornate staircase with a waterfall feature cascading water from the upper level pools into the lower pool and inviting Jacuzzi below. The Atrium will link the upper and lower living areas and house the prospective owner’s living quarters spanning across three floors and measuring 455 sq. meters in total. The Atrium will have seven guest suites which all include a private balcony, reception room, bathroom, dressing room and bedroom. Once completed, the Streets of

It was announced earlier this year that an even larger and more expensive superyacht is now on the horizon – ‘Triple Deuce’. Set to launch in 2018, the owner of this extraordinarily large vessel remains a mystery but it will certainly be a hard one to surpass, measuring 222 meters in length with operating costs expected to run up to $30 million for every year it is at sea. But although the Streets of Monaco will only measure, in superyacht terms, a modest 155 meters, it is perhaps the aesthetics of this design which is so impressive, recreating one of the world’s most eminent cities, it will stand as a home away from home, a true floating city for those lucky enough, and of course wealthy enough, to go aboard. Yacht Island Design estimate the running and operating costs could run into the tens of millions on a yearly basis and so indubitably, the superyacht will require an extremely financially comfortable individual or commercial investment in a bid to turn this maritime dream into a reality. McPherson added: “It took around six months to produce the Monaco concept. I think the team all have their favourite elements but all are incredibly proud of the end result. We have had a significant amount of interest from the general public wanting to take cruises and a number of enquiries for potential commercial applications. “We are actively looking for clients, either private or commercial, with the

Perhaps the most notable and impressive feature of this superyacht – the Streets of Monaco - is its proposed replication of the celebrated Monte Carlo grand prix race course. Company Director at Yacht Island Design, Rob McPherson said: “The idea was to

Monaco will measure in at 25ft shorter than Russian billionaire businessman Roman Abramovich’s private yacht – the Eclipse – which currently stands as the world’s third largest personal yacht, behind that of the President of the UAE which measures 182 meters.

vision to realise this new and interesting design direction. A starting price of around $400million would be a sensible starting point, escalating from there. “We want to create a truly unique environment that could take the principality of Monaco to the ocean.”

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