Twe dec14

DECEMBER 2014

more than business

www.totalworldenergy.com

Shah Deniz to Address European Energy Security In Azerbaijan, Shah Deniz Stage 2 is now underway. The giant project, led by BP, will add a further 16 bcma of gas production to the approximately nine bcma produced by Shah Deniz Stage 1.

This is a project that will cover much of southern Europe but its roots are firmly planted in Azerbaijan‌

Axpo Linthal 2015 Pumping up Swiss Energy

Eversendai Offshore A company with fabrication in the blood

E.ON Climate & Renewables Samsung Heavy Industries More wind power for E.ON

Aiming for the top spot in shipbuilding

THE ENERGY TO ACHIEVE LARGE GAS AND LNG PROJECTS For 30 years, Tractebel Engineering has ensured for major gas players, engineering and consultancy missions covering the entire life cycle of gas and LNG installations. Projects managed by Tractebel Engineering ranged from feasibility studies, FEED, Detailed Engineering, Owner’s Engineering to commissioning and startup of pipelines, compression stations, underground gas storages and LNG terminals. Tractebel Engineering is also a referenced engineering consultancy in the fields of power generation (nuclear, gas, coal and hydroelectric), renewable energies, power transmission grids and complex infrastructures. www.tractebel-engineering-gdfsuez.com

CHOOSE EXPERTS, FIND PARTNERS

This month I was extremely excited to learn more about one of the most important projects that the European energy market has ever seen – the Shah Deniz Stage 2 development currently underway in Azerbaijan courtesy of BP and a host of other big name players from the industry.

Shah Deniz is one of the world’s largest discovered gas fields and research says that the reservoir is similar in size and shape to Manhattan Island. Imagine the amount of work that has to go into producing a field of this size – just to think about everything that is involved boggles the mind.

From surveying and discovery back in 1999 to first gas from Stage 1 in 2006, through to first gas of Stage 2 in 2018; this is a project that the entire continent should be excited about, providing a new route for gas into Europe and easing demand on Norway, Russia and North African pipelines that currently supply vast amounts of imported gas.

Being a 100% supporter of all types of power production, we also provide an insight into the renewable world with a look at E.ON’s big projects in Germany and the UK where hundreds of new wind turbines are set to go down over the coming months, providing green energy for thousands of homes. Then there is the major pumped storage scheme in Switzerland from Axpo, ‘Linthal 2015’. Axpo tell us more about the current status of this mega project and the challenges that go with working in tunnels in the Swiss Alps, thousands of metres above sea level.

We also take a look at the magnificent idea put forward for a clean, fast, cheap transportation in America from billionaire cleantech guru Elon Musk. His ideas are futuristic and outlandish but the more you explore, the more they seem to make sense.

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

Joe Forshaw editor@ecp-ltd.com

EDITOR Joe Forshaw SUB-EDITOR Harriet Pattison WRITERS Rosie DeWinter Colin Chinery Tim Hands Roland Douglas Christian Jordan STUDIO DIRECTOR Martyn Oakley DESIGNERS Harvey Tarlton

RESEARCH DIRECTOR Chris Bolderstone MAGAZINE MANAGER Rick Liddiment PROJECT MANAGERS Ben Richell Kieran Shukri Jodie Rettie Ajuanne Payne SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Mark Leonard

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

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

Cover image courtesy of © Shah Deniz platform - Photo Shahin Abasaliyev - Statoil

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Contents EDITOR’S PAGE

3

NEWS

6

This month’s full of mega projects!

#TWENEWS

ENTREPRENEUR

14

INNOVATION

16

SHAH DENIZ STAGE 2

18

E.ON CLIMATE & RENEWABLES

24

EVERSENDAI OFFSHORE

32

SHELL SOUTH AFRICA

40

AXPO LINTHAL 2015 PROJECT

48

KUWAIT OIL COMPANY

54

SAMSUNG HEAVY INDUSTRIES

60

KONGSBERG OIL & GAS TECHNOLOGIES

66

PT ANGGREKHITAM

70

WATER AUTHORITY OF JORDAN

76

OFFSHORE LIVING

80

FUTURE POWER

84

Making the oil and gas industry a much safer place

Drilling for the future

One of BP’s biggest projects to date

A global giant investing in renewables

“Fabrication is in our blood...”

A fracking future for South Africa?

Pumping up Swiss energy

A flaring success for KOC

Leaders, on every level

Introducing the Subsea Storage Unit

Focussing on quality

Changing Jordan’s fortunes with water

Sleeping comfortably… a long way offshore

Elon Musk’s clean, fast, cheap ‘train’ idea

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CONTENTS

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© Stuart Conway

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# twenews Siemens receives turnkey contract for Stonewall Energy Project in the United States Siemens, in consortium with Bechtel, has been awarded the order for the turnkey supply for Panda Power Funds’ Stonewall Energy Project in Leesburg, Virginia, USA. Following the power projects Temple I and Temple II, Sherman, Liberty and Patriot, this is the sixth order awarded to Siemens by Panda Power Funds. The natural-gasfired Leesburg CCPP will have a gross installed electrical capacity of 778 megawatts (MW). Once built, it can supply the power for up to 778,000 households in Virginia and will make a significant contribution to the area’s economy. Commissioning of the plant is scheduled for spring 2017.

For the Panda Stonewall CCPP, Siemens will deliver the power island equipment, including two SGT6-5000F gas turbines, one SST6-5000 steam turbine with an SCon-4000 condenser, two SGen6-1000A generators, one SGen6-2000H generator and two NEM duct-fired heat recovery steam generators along with the complete electrical system and SPPA-T3000 instrumentation and

successful partnership with the Panda Power Funds. This is the sixth project in a short period that we were awarded by Panda. It shows that we are continuously creating sustainable value for Panda with our experience in building successful turnkey power plant solutions,” said Martin Tartibi, Head of Gas Turbine Power Plant Solutions Americas at Siemens Power and Gas. “Siemens continues to deliver outstanding customer service, superior technological solutions and great attention to detail,” said Todd Carter, president and senior partner of Panda Power Funds.

“Equally important, they stand solidly behind their work. We are happy to work with them on another Panda project.”

In order to secure funds for the project, a finance package utilizing senior debt, mezzanine debt and equity has been obtained to cover the total project costs. In support of this package, the Financial Services Division of Siemens is also making a USD75 million equity investment.

“The fact that Stonewall is located in a high load-growth

control system. Bechtel will be responsible for the engineering and procurement for the balance of the plant, and the installation, construction and commissioning of the facility.

“We are proud to continue our

market and is being managed by a highly experienced team means there is a strong investment case for the project.

Siemens’ partnership with Panda Power Funds exemplifies two strong contenders in the power

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generation market so we are very pleased to support the project on the financing side,” said Kirk Edelman, CEO of Siemens Financial Services Project and Structured Finance Power, Oil & Gas. The gas turbines, steam turbines and generators will be manufactured in the Siemens factory in Charlotte, North Carolina, which is the main production facility for Siemens 60 Hz power generation.

In 2012, Siemens received the first two orders from Panda Power Funds for the turnkey supply of the Panda Temple Power Project in Temple I, Texas as well as the Panda Sherman Power Project in Sherman, Texas, also in consortium with Bechtel. In 2013 three more orders followed – the turnkey supply in consortium with Bechtel of Panda Temple II, two integrated power islands with H-class technology for the Liberty CCPP, and for the Patriot CCPP, both located in Pennsylvania.

© 360b Shutterstock

NEWS

© M DOGAN shutterstock

Total Announces the Jisik Discovery in the Kurdistan Region of Iraq Located 60 kilometers from the city of Erbil, the Jisik-1 discovery well on the Harir Block was drilled to a depth of 4,511 meters and encountered light oil and gas with condensates intervals in Jurassic and Triassic carbonate reservoirs.

Jisik is the second discovery in the Block, following on from the Mirawa-1 discovery, announced by Total on October 30, 2013.

“This success confirms Total’s exploration strategy in Iraq.

The ongoing appraisal of the discoveries made on the Harir and Taza Blocks will allow us to identify options for development,” commented Marc Blaizot, Senior Vice President, Exploration at Total.

“We are continuing exploration works on the Total-operated Safen and Baranan Blocks, with additional wells planned for 2015.”

The Jisik-1 well encountered light oil of 43 API in a Jurassic carbonate reservoir. The well was

tested with flow rates of 6,100 barrels per day of anhydrous oil, without stimulation.

Two other formation tests, both with flows rates of approximately 10-15 million cubic feet per day, confirmed the presence of gas reservoirs together with associated condensate in the Triassic.

Total has a 35% interest in the Harir Block, alongside Marathon Oil (45%, operator) and the Kurdistan Regional Government (20%).

CNOOC starts production from South China Sea gas fields China’s CNOOC Limited announced earlier this month that

The project consists of three gas fields, namely Panyu 34-1,

million cubic feet of natural gas per day.

its Panyu 34-1/35-1/35-2 project started production.

Panyu 34-1/35-1/35-2 project is located in the Pearl River Mouth Basin of the South China Sea with the water depth in the range of 195-338 meters.

Panyu 35-1 and Panyu35-2. The main production facilities include one comprehensive platform, two sets of underwater production system and 13 producing wells.

There are currently two wells producing approximately 21

The project is expected to reach its ODP designed peak production of approximately 150 million cubic feet per day in 2015.

Panyu 34-1/35-1/35-2 is an independent project in which the Company holds 100% interest.

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# twenews

© Goran Bogicevic Shutterstock.com

Eni and Sonangol signed a strategic agreement on Angolan gas development The Chairman of Sonangol, the National Oil Company of Angola, Francisco de Lemos Maria, and Eni’s CEO Claudio Descalzi signed a strategic agreement last month on future co-operation activities and joint projects in the oil and gas sector to develop in the country.

Under the agreement, Eni and Sonangol will set up a joint team aimed at studying the potential of the non-associated gas present in the Lower Congo Basin, a highly promising area in terms of hydrocarbon production located offshore Angola.

The scope of the study is to analyze the different gas valorization options both internationally and in

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the domestic market, where gas will have a crucial role in order to sustain the local economy. The joint Sonangol-Eni team will benefit from Eni’s proprietary expertise and substantial experience in developing gas resources worldwide.

Moreover, the companies will be committed to develop projects on the mid-downstream business to be carried out in Angola.

The agreement represents another milestone in the longstanding relationship between Eni and Angola, contributing to a further enhancement of the “southnorth corridor” strategy of the company.

“This agreement will strengthen the prolific cooperation between Eni and Sonangol, confirming Angola as one of the key countries for the company’s organic growth strategy‘, Eni CEO Claudio Descalzi said. “In the coming years, Angola will become one of the most important oil and gas hubs for the sub-saharian activities of Eni”.

Eni has been present in Angola since 1980 and currently has an equity production of approximately 80,000 barrels of oil equivalent per day. It is also engaged as operator in the upcoming start-up of the deep water Block 15/06 West Hub project, which is due to commence by the end of 2014.

NEWS

Technip wins GoM contract with Anadarko Technip has been awarded a contract by Anadarko Petroleum Corporation for the K2 Riser Base Gas Lift project, located in Green Canyon 608 in the Gulf of Mexico, at a water depth of approximately 1,300 meters.

The contract will cover: project management and engineering; design, fabrication, and installation of two PLEMs and four PLETs; installation of flowline, jumpers and associated terminations and hardware; installation of one free

issued dynamic umbilical with SUTA and flying leads; pre-commissioning of the flowline and umbilical gas lift system.

Technip’s operating center in Houston, Texas, USA, will conduct the overall project management.

According to the company, the offshore installation is expected to be performed in the second half of 2015 by Technip’s Deep Blue, one of the world’s largest purpose-built ultra deepwater pipelay and subsea construction vessels.

Deanna Goodwin, President North America at Technip, stated: “We are delighted to have been awarded this new project in which we are able to provide enhancement infrastructure to increase and extend the life of an existing Gulf of Mexico field and facility. Technip appreciates the recognition of Anadarko for our involvement in the K2 development with flowline, riser and tie-in work performed previously in 2005 and 2009 and now with this recent contract.”

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# twenews BP operates “world’s first” Core Flood Robot for EOR BP has announced that it is now operating “the world’s first” robotic coreflooding system. The Core Flood Robot is the most recent addition to BP’s programme of enhanced oil recovery (EOR) research facilities.

According to BP, coreflooding is one of the most important techniques used to identify and evaluate EOR technologies. It measures the effectiveness of water or gas injected into an oil-bearing rock sample to displace oil. This can be used to assess the potential for water flooding in an oil field.

“The EOR technologies being developed by BP are vitally important to help increase global oil supplies,” said Ahmed Hashmi, BP’s head of upstream technology.

“We believe this step-change in our core-flooding capability will hugely

improve the speed and efficiency with which we can deploy new technologies to recover more oil from reservoirs.”

BP has had a large-scale in-house coreflooding laboratory in the UK for many years, where reservoir samples can be tested at high pressure and temperature ‘reservoir conditions,’ and different reservoir types can be evaluated, the company explained in the release.

The new robotic coreflood system operates for 24 hours a day, seven days a week.

BP says that the complete automation and work-flow optimisation in the new Core Flood Robot enables hundreds of coreflood tests to be performed each year, rather than dozens as in the past, and greatly enhances BP’s ability to evaluate a continuous

stream of new EOR technologies.

This should reduce the time spent developing new technologies by at least 50 per cent, BP said.

The Core Flood Robot is operated by the same team that developed LoSal® EOR, BP’s breakthrough reduced salinity waterflooding technology. More than 45 coreflood tests were performed in validating the LoSal EOR effect, before field trials in Alaska. BP and its partners are now deploying the technology at scale on the Clair Ridge project in the North Sea. BP notes that the company was awarded the 2014 Offshore Technology Conference Distinguished Achievement Award for the Clair Ridge LoSal EOR project, recognising the company’s specialist EOR technologies.

© 360b Shutterstock

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NEWS

Denmark Plans to Build 550 MW of Nearshore Wind Power

European Energy A/S, Danish developer and operator of wind and solar power farms, has announced the creation of two joint ventures, one with the Canadian renewable energy producer Boralex Inc. and one with the Dutch bank NIBC. The ventures concer n the development and construction of two nearshore wind farms with a combined capacity of more than 550 MW. The two sites along the Danish coastline have very attractive wind resources.

The selected sites are both

wind farms. Earlier this year, European Energy and their partners instructed Orbicon A/S to perform an environmental impact assessment. The assessment is expected to be completed in early 2015.

“We believe the combination of Boralex’s experience within renewable energy and NIBC’s experience with financing as complimentary to our insights in both renewable energy and Danish infrastructure will prove to be strong. The goal is to leverage synergies between the two sites sharing best practices

setup we strive for lowering the cost of energy through the choice of optimal sites and innovative solutions applying the latest technology,” says project manager in charge, Ian Wallentin.

If everything goes according to plan the combined capacity of the two wind farms would exceed 550 MW, which is app.

40% bigger than the largest offshore wind farm currently operating in Denmark.

“We believe the wind farms could produce up to 7-8 % of the total Danish power

approved by the Danish Energy Agency under the “Open door” programme. This means the Danish authorities have already assessed the sites and found them favourable for nearshore

between both joint ventures.

Together, we have a strong platform to pursue a common goal of supplying clean cost effective energy to the Danish consumers. W ith the current

consumption. This would mark an important step in the Danish ambition to become entirely free of fossil fuels by 2050,” says CEO at European Energy, KnudErik Andersen.

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# twenews

Chevron Confirms First Oil Production From Tubular Bells in the Gulf of Mexico

Chevron Corporation announced last month that the Hess Corporationoperated Tubular Bells deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production. The field is located 135 miles (217 km) southeast of New Orleans, in approximately 4,300 feet (1,310 m) of water in the Mississippi Canyon area. The discovery well was drilled in 2003, and project construction began in October 2011.

Tubular Bells is expected to deliver total production of approximately 50,000 barrels of oil-equivalent per day producing from three wells.

“The deepwater Gulf of Mexico plays a significant part in our earnings and production growth. Achieving

first oil at Tubular Bells is an important step towards Chevron achieving its production goal of 3.1 million barrels per day by 2017,” said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation.

“Tubular Bells and the Chevronoperated Jack/St. Malo project further strengthens Chevron’s deepwater portfolio,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation. Jack/St. Malo, a large lower Tertiary development, is scheduled to be brought online later this year.

“This project’s success is the result of our strong business relationship with Hess, reinforcing our commitment to achieve results with excellence, and enabling new opportunities in this

strategic area,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company.

The Tubular Bells production facility is producing from the Miocene trend, where, for many years, Chevron subsidiaries have had multiple producing assets and a leading leaseholder position. The floating production facility is a classic spar hull with traditional three-level topsides. The field has an estimated production life of 25 years.

Chevron subsidiary Chevron U.S.A. Inc. has a 42.86 percent working interest in the Tubular Bells development and Hess is the operator with a 57.14 percent working interest in the field.

© LesPalenik Shutterstock

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NEWS

Siemens receives first order from Japan for two H-Class gas turbines

Siemens has received its first order from Japan for delivery of two H-Class gas turbines. The two SGT5-8000H gas turbines will form the core of the combined cycle power plant of Kobe Steel, Ltd. (KOBELCO) in Moka City, Tochigi Prefecture in Japan. The customer is Fuji Electric Co, Ltd., Japan, who will be erecting the plant on a turnkey basis for the end customer

plant, which will have the most efficient machine in this performance category in the world, is expected to be granted in mid-2016.

With an installed capacity of more than 1.2 gigawatts and an efficiency level of more than 61 percent, this will be the most powerful and most efficient gas-fired power plant in the country. Siemens will be supplying two SGT5-8000H gas turbines, each with

Thirteen of these machines are currently in successful commercial operation with a high degree of starting reliability and availability. “We are pleased that we have now been able to enter into the Japanese market with our innovative and yet extensively proven gas turbine after selling them in South Korea, Malaysia and the Philippines. Our H-Class turbine series, with its record-setting

KOBELCO at its site. The plant is located inland some 50km west from the shore of the Pacific Ocean and therefore equipped with an air-cooled condenser. It is scheduled to begin commercial operation at the end of 2019. Approval of the environmental impact assessment for the power

a capacity of 400 megawatts, along with the associated auxiliary systems.

The fleet of Siemens H-class gas turbines achieved more than 100,000 equivalent operating hours at the end of September 2014. Including this order, Siemens has now sold 41 H-class gas turbines worldwide.

levels of performance and efficiency, is excellently suited for countries which need to meet their power demands quickly and with the latest technology and using machines with proven reliability�, declares Roland Fischer, CEO of the Siemens Division Power and Gas PAGE 13

“It’s not going to be easy but that’s what makes it fantastic” Editorial: Roland Douglas

Allison Lami Sawyer is the CEO and Co-founder of Rebellion Photonics, an innovative organisation that has set its sights on making the oil & gas industry a much safer place to operate…

What is the most important factor being considered by energy companies every day? Is it profits, is it expansion, is it security, is it politics or maybe sustainability? It’s probably a combination of all of these things but one of the main considerations, perhaps the overriding concern, for today’s energy giants has to be safety.

A report from science and technology research company, Lux Research in 2013 suggested that spending on HSE from major oil and gas companies will balloon 60% to $56 billion in 2030 up from $35 billion in 2011, and there are many organisations whose inventions are changing safety standards for the better.

adaptation. Today, its roots are firmly planted in the oil and gas industry but in the past the company’s focus was across many different sectors.

Military, medical, science, technology and education all showed potential but eventually the oil & gas industry showed huge potential and that is where the company has laid its hat for now.

So how is this relatively new company helping in the oil & gas industry? Well, it’s all to do with detecting gas leaks on rigs and in refineries, using clever imaging systems that can detect gas and other chemicals in the air. Sawyer told The House Committee on Small Business in 2013: “Explosive

detectors are grossly inadequate.

Furthermore, the alarms are too often ignored by the crew, who are desensitized by daily false alarms.

In an age where a single explosive accident can cost billions, the leak detection market required an entirely new way to monitor explosive gas leaks.”

Hence the formation of Rebellion Photonics, which she and cofounder Robert Kester both admit is a name you either love or hate but you certainly don’t forget. “Rebellion Photonics’ specialty is, as you would expect, Photonics, which is any engineering concerned with light and Rebellion’s mission is to solve

One of these companies is Rebellion Photonics, a Houston based hyperspectral imaging technology company.

Co-founded by entrepreneur Allison Lami Sawyer, Rebellion Photonics history is one of development and

gas leaks on oilrigs and refineries are one of the largest problems facing the energy industry today.

Leaks, when not detected early, accumulate into dangerous clouds that can ignite when they reach a certain concentration. Current leak

some of the world’s toughest problems,” she explained.

Interestingly, not everyone has always had confidence in Sawyers entrepreneurial abilities. She has a master’s degree in nanoscale physics and was volunteering at

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ENTREPRENEUR

a local Houston incubator when she met Kester but just after she had completed her MBA, her entrepreneurship professor grabbed her and said: “You know you aren’t good enough, right? You need to get a real CEO,” and, of course, Sawyer was shocked. As you can imagine this only drove her forward with more determination than ever and the result is, three years on, a company that has been named ‘Start-up of the Year’ by the Wall Street Journal in 2013, $637,000 revenue in 2011, millions in revenue each year since, and major contracts for the likes of BP and Total on some of the world’s most important rigs.

But it wasn’t always easy and

at a fraction of the cost of other services and with a display that will not be ignored by the crew. The GCI continuously monitors, quantifies, and displays gas leaks in real-time video with automatic alarms.

“Rebellion Photonics produces video cameras that can identify and quantify chemicals - essentially our video cameras ‘see’ chemicals, not just colors. While this type of technology, called hyperspectral imaging, has been around since the 1980s, researchers were forced to wait minutes, even hours to see results. Our cameras take milliseconds and therefore allow the first true real-time chemical imaging video. The technology was

the company in 2010 and entering the company into several competitions, progress was made. The business won first and second place in a couple of early competitions, netting $150,000 and then received a further $100,000 in angel investment. After winning numerous other competitions and grants, and after selling a number of early products, the company gained a $1.6 million in competitive federal grants through the Small Business Innovation Research (SBIR) program, allowing for high risk R&D to create high impact products.

So, Sawyer and Rebellion Photonics is most definitely on the path to success and at the same time, making the oil & gas industry a

like the early days of any business, Sawyer had to spread the word, generate interest and get people to understand the technology.

“We have created the world’s first Gas Cloud Imaging (GCI) camera. The GCI camera offers full scene coverage

initially invented to see live chemical reactions within cells for medical research. We do sell cameras for researchers, but with the help of grant funding for basic R&D we have been able to expand our product range.”

After writing the business plan for

much safer industry in which to work.

“I always wanted to start a technology based company and that’s what I’ve done. My advice to young entrepreneurs is that it’s not going to be easy but that’s what makes it fantastic,” she told Inc.com

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Unveiling the StingBlade Editorial: Harriet Pattison

“In the continuous drive for increasing efficiency and lowering costs while drilling, our customers expect that each section is drilled from shoe to total depth with one drill bit at a high rate of penetration,â€? explained Malcolm Theobald, President at Bits & Advanced Technologies, Schlumberger. It seems as though this need for efficiency has finally been met as the new and innovative StingBlade was unveiled at the ATCE conference in the Netherlands in October‌ A leading supplier of innovative technology and solutions to customers across the world in the oil and gas industry, Schlumberger places knowledge, technical innovations and teamwork at the centre of its company which has shown exponential success for more than 80 years.

With principal offices in Paris, Houston, London and The Hague, Schlumberger

world, the company invested an estimated US$1.17 billion in R&E last year alone.

Offering real-time technology services and advanced solutions to its clients, Schlumberger helps customers to translate the data they acquire into useful and beneficial information. Using this knowledge, customers are then able to improve efficiency and enhance productivity of the company.

at the end of October from its subsidiary company, Smith Bits, as it unveiled the StingBlade conical diamond element at the ATCE conference.

The StingBlade element bit has been developed to help increase the run length and rate of penetration (ROP). The StingBlade bits use Stinger conical diamond elements which are placed across the bit face and due to

had reported revenues from continuing operations of US$45.27 billion in 2013.

Employing 126,000 people and representing 140 nationalities, Schlumberger currently operates in more than 85 countries. With 125 research and engineering (R&E) facilities across the

The use of this advanced technology helps to anticipate the changing needs of customers and provide knowledge and solutions before it is needed.

Perhaps one of the most innovative technological solutions the company has produced came onto the oil and gas radar

the conical shape of the elements, the improved impact and wear resistance helps to induce high point loading on the formation. This, in turn, helps to increase run lengths and higher sustained rates of penetration. The new design also delivers improved steering responses in

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INNOVATION

directional applications.

At the unveiling, President at Bits & Advanced Technologies, Schlumberger, Malcolm Theobald said: “In the continuous drive for increasing efficiency and lowering costs while drilling, our customers expect that each section is drilled from shoe to total depth with one drill bit at a high rate of penetration. StingBlade bits have greater durability in hard and inter-bedded formations when compared to conventional PDC bits, enabling an increase in the frequency of drilling an entire section with one drill bit.”

Successfully tested in more than 300 wells, both onshore and offshore, more than 686,000ft has been drilled to date worldwide in applications including North, Central and South America, Europe and the North Sea, the Middle East, Africa, Russia, Southeast Asia and Australia.

oil-base muds, they can create reactive torque, sending the bottomhole assembly (BHA) off its intended trajectory. This excessive vibration can then lead to the increase in the odds of additional trips, part repair and non-productive times.

Smith Bits’ new innovative design however uses a continuous scraping motion and allows energy to be streamlined, reducing the possibility of liability that comes with vibration downhole by redirecting energy away from vibration and into cutting bedrock. This strategic redirection process will now allow for a much faster and more efficient drilling time compared with a traditional PDC bit.

A field trial of the StingBlade bit was conducted in the offshore Browse Basin in Australia, using it to drill a 12 ¼ inch vertical section through a formation known to cause premature impact damage

Texas, two curves were drilled in identical conditions to compare the steerability of a conventional PDC bit to a StingBlade bit. The new StingBlade bit achieved 23% higher build rates with less torque and toolface angle variation, which in turn helps to reduce the corrections needed by directional drillers enabling them to stay on target.

With a multitude of technology centres worldwide, Schlumberger maintains the service industry’s longest commitment to technology and innovation. The company’s advanced tool and products are now used on a global scale and continue to be designed, built and tested to the highest standards to meet the client’s exact needs. With a range of variable applications from standard low-temperature sweet wells with normal pressure to the most hostile well

With a faster rate of penetration, the StingBlade bits are placed much more competitively in the industry compared to a drilling tool that uses polycrystalline diamond compact (PDC). While these are effective at drilling shale formations, especially when used in combination with

to the conventionally used PDC bits.

Impressively, the StingBlade exceeded expectations, increasing interval length by 97% and rate of penetration by 57%, as well as saving the client more than five days of drilling time.

In another trial conducted in South

environments, the industry has been looking for quicker rates of penetration, more efficiency with less money spent on drilling. With this in mind then, it looks as though the StingBlade will be taking the oil and gas industry by storm in the coming years

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One of BP’s biggest projects is materialising in Azerbaijan…

Editorial: Christian Jordan

Shah Deniz Stage 2, or Full Field Development (FFD) is a giant project that will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately nine bcma produced by Shah Deniz Stage 1.

“Shah Deniz is important for Europe for security of supply, it’s an important asset for the nation of Azerbaijan, it’s important for the seven transit nations through which

April last year.

Currently developing Stage 2 or Full Field Development (FFD) of the Shah Deniz gas field, the largest natural gas field in Azerbaijan, BP

Sea approximately 70 kilometres southeast of Baku, at a depth of 600 metres, the field covers approximately 860 km2. The gas and condensate field was

gas will flow to market and it’s important for BP – it’s BP’s biggest project for the next decade,” said Andy Lane, BP’s Head of Business Development, Integrated Supply and Trading when speaking about the Shah Deniz natural gas project in

is looking to add 16 bcma of gas to the nine bcma that the field already produces as a result of Shah Deniz Stage 1 development making the field one of the most important for European energy markets.

Situated in the South Caspian

discovered in 1999 and is similar in size and shape to Manhattan Island. The field is operated by BP which has a share of 28.8%.

Other partners include TPAO (19%), SOCAR (16.7%), Petronas (15.5%), LUKOIL (10%) and NIOC (10%).

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SHAH DENIZ STAGE 2 After producing its first commercial gas in December 2006, the Shah Deniz gas plant at Sangachal Terminal became fully operational in July 2007 and the potential of this major gas project began to be realised by consumers in Azerbaijan, Georgian and Turkey.

Stage 2 of the Shah Deniz project is a whole different operation to Stage 1 and involves huge infrastructural developments as well as many complex sales arrangements but so far it seems that things are going to plan for BP and its partners. Al Cook, BP’s Vice President Shah Deniz Development confirmed in a recent interview the details and scale of the titanic effort underway to complete Stage 2 on time and on budget.

“Stage 2 builds on Stage 1 which came on stream eight years ago.

For the last few years we’ve been exporting seven to nine bcm of gas per year to Azerbaijan, Georgia and Turkey. What we’re doing now is looking at Stage 2 which is a major project and we see production tripled over the next few years adding a further 16 bcm of gas per year to the production that we already have. This project will build on BP’s success in developing the Stage 1 field and developing the South Caucasus pipeline and will now see that gas transported not just to Azerbaijan, Georgia and Turkey but on to countries in Europe; Bulgaria, Italy, Albania and Greece.

building entirely new pipelines with our partners, like SOCAR and Botaş in Turkey, which will take the gas across turkey through the Trans Anatolian Pipeline and on all the way to Italy through the Trans Adriatic Pipeline,” he said during an interview at IHS CERAWeek 2014.

Bringing gas from Azerbaijan to Italy through this new network of pipelines not only means that the long-discussed ‘Southern Gas Corridor’ can now be made into reality, it also means that the market for gas in Europe could change dramatically thanks to this

imports.

At the moment these imports come from LNG (by ship) or by three main pipeline routes from Russia, Norway or North Africa.

We believe that the Caspian will be the beginning of what is the fourth major supply route to bring gas into Europe. The foundation asset of the fourth major supply route is Shah Deniz.”

When the Final Investment Decision (FID) for the Stage 2 development of the Shah Deniz gas field was taken in December 2013, gas sales contracts with nine

“We’re building two new platforms offshore in the Caspian Sea, we’re drilling 26 new wells, we’re expanding the Sangachal Terminal, we’re expanding the South Caucasus Pipeline system through Azerbaijan and Georgia and

new source as Andy Lane explains: “In Europe indigenous production is declining quite dramatically, particularly in the North Sea and in Holland so we see that over time there will be a growing gap of gas supply that needs to be filled by

European companies came into effect. As a result some 10 bcma of Shah Deniz gas is expected to be delivered for 25 years to customers in Italy, Greece and Bulgaria. In addition, some six bcma of Shah Deniz Stage 2 gas will be delivered

© Stuart Conway

PAGE 19

©BP plc

to consumers in Turkey. All gas sales and transportation contracts will be managed by the Azerbaijan Gas Supply Company established by Shah Deniz co-ventures under the operatorship of SOCAR. At the event of the FID announcement, Rovnag Abdullayev, President of SOCAR said: “This is a truly historic day for Azerbaijan.

our nation. Secondly, it establishes Azerbaijan as an important energy supplier to Europe, fulfilling a vision we have had for so many years.

Thirdly, it brings benefits to countries stretching from the Caspian Sea to the heart of Europe through creating a direct transportation link between the Caspian and the European gas markets.”

direct access to the gas resources of Azerbaijan for the first time. The final investment decision today would not have been possible without years of cooperation between many companies and many countries. I am proud that BP can be part of this historic moment, and grateful for the efforts of so many people in making this possible. As well as creating tens of

This is the first time that our country and this region has embarked upon such an ambitious gas project. This project paves the way for Azerbaijan’s future and the region’s future. Firstly, it enables us to unlock Azerbaijan’s giant gas resources for the benefit of

Group Chief Executive of BP, Bob Dudley said: “Very few projects have the ability to change the energy map of an entire region. Shah Deniz 2 and the Southern Corridor pipelines will not only change the energy map, but will give customers in Europe

thousands of jobs along the route of the pipelines in Azerbaijan, Georgia, Turkey and Europe, this project represents the largest ever foreign investment to Azerbaijan.

“I am particularly pleased that we have agreed terms for extending

PAGE 20

SHAH DENIZ STAGE 2 the Shah Deniz Production Sharing Agreement up to 2048. This enables BP and our partners to work in partnership with Azerbaijan in appraising future stages of Shah Deniz. BP’s discovery of the new Shah Deniz Deep field in 2007 demonstrates the potential in this area beyond Shah Deniz Stage 2,” he added.

OUTLOOK One important thing to remember is that although this is a vitally important project for BP and its partners, the need for something like this would not have arisen if there was not the necessary demand in the European markets. With on-going tensions in Russia and the aforementioned indigenous production declines, the market in Europe does need this type of investment to ensure security of gas supply in the long-term future.

“As population grows around the world and economies continue to develop, energy consumption continues to rise,” explains Lane.

“BP’s 2030 global outlook forecasts that total energy consumption will rise by 40% between now and 2030 and primary energy consumptions; that’s coal, oil and gas; will make up 80% of consumption. Within those fossil fuels, gas will continue to be the fastest growing of the three commodities. Already in Europe, gas makes up 30% of consumption across the whole of the continent and while demand in Europe as a whole will remain fairly flat (particularly in northern Europe where markets are more mature) in southern Europe, particularly Turkey, we do see demand growing quite significantly.

“We are very busy working on the full field development of the

Shah Deniz project that will bring an additional 16 bmca of gas to the European market and the Turkish market,” he says.

PARTNERSHIPS One of the major successes of Shah Deniz Stage 1, and something which has continued into Stage 2, is the way that BP and its partner companies have managed to engage with other companies and countries and arrange stable political, commercial relationships for the benefit of everyone.

“This is a strong partnership between the companies and countries involved,” said Al Cook, during his IHS CERAWeek 2014 interview. “Over the last five years that we’ve been developing Shah Deniz Stage 2, we’ve built up a really good track record of putting political

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PAGE 21

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Shah Deniz platform - Photo Shahin Abasaliyev - Statoil

SHAH DENIZ STAGE 2 and commercial agreements in place which form the foundation of the project and which enabled us to take a Final Investment Decision last year.

“These commercial and political agreements bind the companies and countries together in a way that we can now take on this ambitious project ($45 billion of capital), in order to export this gas to new markets.

What gives us confidence that we can do this is the previous projects we’ve been involved with, the Baku– Tbilisi–Ceyhan project and the South Caucasus project, which year after year have demonstrated the reliability of Azerbaijan’s gas supply and they’ve developed the ability BP has to develop projects that cross multiple countries and above all, they’ve demonstrated that we can produce oil and gas reliably from the Caspian Sea to markets in the region but also, in

the case of oil, worldwide.”

Exciting partnerships have been developed with many companies, small and large, and each company’s work relies on the productivity of other contractors so organisation and punctuality is vitally important. Some of the world’s foremost companies in some of the world’s most exciting industries are involved in Shah Deniz Stage 2; take PETROFAC for example; an international oil and gas facilities service provider. In July, PETROFAC signed a contract reportedly worth £5 million to provide maintenance build capabilities.

This work will cover new onshore, offshore and pipeline assets in the Azerbaijan sector of the Caspian Sea. Plant Asset Management, the asset performance management consulting business of PETROFAC, will be responsible for the delivery of

this work.

Steve Johnson, Vice President of Plant Asset Management said: “We are thrilled to be supporting BP with one of their most ambitious projects and for the further opportunity to highlight the skills of our high calibre consultants, engineers, developers and analysts.”

There is a long way to go with Shah Deniz and first gas from Stage 2 is not expected until 2018 with supplies to Georgia and Turkey. Gas deliveries to Europe are expected just over a year after first gas.

The gas will travel 3,500 kilometres, up to elevations of over 2,500 metres, and through pipelines that are over 800 metres below the sea, and all in the name of bringing Azeri gas to Europe and officially creating the fourth major supply route for gas into the continent

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PAGE 23

Entering tomorrow’s market with new energy Editorial: Christian Jordan

The name E.ON comes from the Greek word aeon meaning ‘eternity’ and fittingly, the company is now building on its experience in renewable energy production to provide more and more green energy to its worldwide customer base. Is this a company that could become an eternal energy supplier? Corporate Communications Manager, Markus Nitschke tells us more…

E.ON is a major player in the global energy market. Headquartered in Düsseldorf, Germany, it operates in over 30 countries and serves around 35 million customers. It is one of the 30 members of the DAX stock

provider. With operations spanning the energy sector; everything from nuclear to gas to wind power; the company is a progressive one, always looking for opportunities to expand. Its scale was demonstrated

E.ON planning to move forward in a world that is continually looking towards sustainable ‘green’ energy?

One of the areas that the company is focussing on right now is power generation from renewable sources.

index of major German companies and a member of the Global Titans 50 index.

The company is one of the major public utility companies in Europe and one of the world’s largest investor-owned energy service

at the end of 2013 when the company announced that its 62,000 employees had generated approximately €122.5 billion in sales in that year in Europe, Russia, and North America.

But what of the future? How is

This has seen the formation of E.ON Climate & Renewables. Also headquartered in Düsseldorf, this is a company that plays a leading role in the development of the renewable industry worldwide and has already invested more than €9.5 billion in

PAGE 24

E.ON CLIMATE & RENEWABLES renewable generation projects in the last five years. E.ON currently operates over nine gigawatts of renewable capacity and plans further multi-billion euro investments to grow its installed capacity. As part of its impressive portfolio E.ON is already active in generating energy from onshore and offshore wind, biomass, photovoltaic (PV), and concentrated solar power (CSP).

Demonstrating the company’s excellence in the area of sustainable energy generation, E.ON Climate & Renewables won the Platts Global Energy Award in the category ‘Green Energy Generator of the Year’ in 2011.

SUCCESS FROM WIND The company has recognised the importance of wind power and has many successful onshore and offshore wind projects under its belt that show off its commitment to clean energy – one of the most prominent is perhaps the London Array, a 630 MW, 175 turbine development 20 km off the Kent coast in the outer Thames Estuary in the United Kingdom.

Then there is one of the world’s largest onshore wind farms in Roscoe, Texas; a 782 MW, 634 turbine wind farm operated by E.ON Climate & Renewables that has proved to be a great success and a benchmark for the industry.

So what is the next step with wind power for this global power player? Current projects include the development of Amrumbank West, an 80 turbine, 288 MW wind farm in the German North Sea and the

plans to continue growing in this important sector.

“Amrumbank West is part of an excellent project pipeline that E.ON has. The first steps in the development of Amrumbank were made by E.ON in 2002 when the offshore wind areas in the German North Sea were established. In parallel, we started to collect first experiences with building offshore wind farms in shallow waters in the UK. After this, E.ON participated in constructing the first offshore wind farm in deep waters in Germany, called Alpha Ventus.

“With further experiences in building offshore wind farms in the UK and in the Nordic region, E.ON took the invest decision for Amrumbank West in 2011. E.ON was well prepared for this challenge to build an offshore wind farm in a water depth up to 30 meters. The construction started in January 2014. E.ON is the single investor and with its project team based in Hamburg fully responsible for the entire project.

“E.ON is among the leading global companies in offshore wind and is the number three worldwide. Our experience and capabilities attract many

investors to take shares in our wind farms. Often there are companies from the financial sector as well as other energy companies.

“Currently we are running the installation of the foundations. We have already installed 64 out of 80 monopiles and transition pieces. In January we will start the erection of the towers and turbines so that we are able to purchase first power in March. The technical infrastructure for bringing our offshore electricity to households is almost ready. Our substation, collecting the energy of each turbine is installed and the converter platform HelWin Beta, built by grid operator TenneT, is almost accomplished as well,” he says.

EXPERIENCED PLAYERS Of course, E.ON has a raft of experience when it comes to constructing offshore wind farms and the experiences from previous projects are always very helpful.

However, with Amrumbank West there were some challenges that were new to the company which bought

Humber Gateway, a 73 turbine, 219 MW wind farm off the coast of East Yorkshire in the UK. Markus Nitschke, E.ON Corporate Communications Manager tells Total World Energy more about the development of these two projects and also about the company’s PAGE 25

about innovation.

“We learnt that it is a real challenge to build in deep waters and 130 kilometres away from the coast. There have been intensive challenges regarding weather, water depths, logistics and HSSE issues during this project. In many cases we had to do pioneering work but we did it successfully,” says Nitschke.

And you might think for a construction project of this size there would be some opposition or objection but Nitschke says that the only issue that came up was with the local porpoise population and this is something which has been easily navigated.

“Due to an intensive licensing process with the responsible authority, there are no significant objections. A sensitive issue in Germany is noise reduction regarding porpoises. We are able to manage this environmental issues.

Latest studies show that seals like offshore wind farms as preferred

PAGE 26

“With our next investment in an offshore wind farm we hope to bring down costs by 40 percent compared to Amrumbank West”

hunting areas once as they are in operation,” he explains.

And experience navigating all of these issues, coupled with E.ON’s ability to finish projects on time and within budget means that the company is managing to attract investors from across the spectrum to partner with on these complex wind projects.

“We are convinced we will finish the Amrumbank West project safely, on time, to top quality standards and within budget. €1 billion is a significant amount of money for any utility today. Everybody is looking more carefully at the investments they are making, mainly because the outlook for the utilities sector is so difficult.

“There have been some specific problems where low wholesale prices and nuclear shutdowns have significantly impacted German utilities. We are also seeing the impact of low wholesale power prices across Europe. This has resulted in weaker balance sheets.

E.ON CLIMATE & RENEWABLES As around 90% of developmentstage offshore wind assets are held by utilities, the sector is suffering.

So utilities are looking at all of their assets, not just renewables, and trying to work out where value really is. We are already looking at partners for projects at various stages. Thus far, we have taken the approach of selling shares in existing operating projects. For example, last year we sold an 80% share in our Rödsand project in Denmark in order to recycle that capital. We have also done the same with three onshore projects in the US. We are also looking to bring partners in at an earlier stage as we did with London Array. We would look to do this again for future projects because projects are increasing in size and balance sheets are not getting stronger. We need to marry the capabilities we have at E.ON with

financial investors that are willing to invest in offshore wind. Preconstruction partnerships are very much on our agenda for our future offshore wind projects,” he says.

“The largest field of investors are those that want to invest in operating wind farms as the revenues are pretty clear and there is only operating risk. Pension funds, sovereign funds and other financial investors are willing to invest at this stage. But at the pre-construction stage you are looking at a narrower universe of investors, probably focusing on those that have some experience of construction risk.

This will include strategic investors such as other utilities or major corporations interested in getting into the offshore wind space, but also some financial investors,” he adds.

But is the risk of investing in

offshore wind as big as the market perceives? Definitely not according to Nitschke who says that a few projects where issues have arisen has created an illusion that offshore is somehow risky when in fact, the majority of projects are delivered without any disruption.

“We are looking at the market right now to see who is capable of taking this risk. I honestly think the risks of constructing offshore wind farms are not as big as people perceive them to be. One or two high profile issues have created the perception it is much riskier than onshore wind. Our experience is that this is not the case. The major projects we have built like Rödsand and London Array were delivered on time and ahead of budget and have had outstanding operating experiences. We think construction and operating risks are overplayed,

PAGE 27

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E.ON CLIMATE & RENEWABLES but nevertheless we have to get this message across to the financial community,” he says.

HUMBER GATEWAY As for the Humber Gateway project, Nitschke says that location was an important consideration and the connections that bring the valuable green energy onshore are vitally important.

“Located eight km off the East Yorkshire coast, just north of the mouth of the river Humber, the wind farm will comprise of 73 turbines and will have an installed capacity of up to 219 MW. Upon completion, the wind farm will be capable of generating enough electricity to power up to 170,000 UK homes, which is more than one and a half times the number of homes in Hull.

“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 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. The total area of the site is approximately 24.8 km2 and its northern boundary runs parallel to existing pipelines that run into Easington,” he says.

And both Humber Gateway and Amrumbank West form part of an ongoing focus that will see E.ON use its experience to develop more and more wind power generation projects while also looking for a broader range of investors.

“We are very clear that we want to build on the experience we have already developed in offshore wind,” says Nitschke. “We have built our experience over five completed projects since 2004, and the two further projects that are still under construction. We have a good idea about how these projects should be structured in terms of the contractual framework we put in place – how many contracts

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there are, and the interfaces we put in place and so on – all of these things we have developed over time based on our experience. We would aim to explain to investors why we do projects in a certain way and that it is the best way to structure projects.”

The company is using all of the experience of working in the UK on the London Array for the Humber Gateway project and this is helping to structure the project in a way that is proven to be successful.

Nitschke explains that knowledge of legislation and the national

and Nordic. Today it is a huge benefit to have the capability to act successfully in these different regimes.”

And being headquartered in Germany and operating across many different geographies is no easy feat and has been the downfall of many organisations in the past.

This is why a sound understanding of local conditions and legislations is essential and E.ON is in the strong position where it can adjust easily and quickly to align itself with regional policies.

“It is always more difficult to

regimes we are able to adjust our processes at short notice.”

framework for a project of this type is of particular importance.

“This experience is an essential point because for E.ON, as a global operator, we are facing three mainly different licensing processes in the main markets UK, Germany

operate abroad,” Nitschke explains.

“E.ON as a global investor and operator has strong bases in many regions worldwide. This is crucial to start new businesses. As already mentioned this is a question of experience. If a country changes the

28 increased overall by 81.3 % between 2002 and 2012, equivalent to an average increase of 6.1 % per year.” And this trend continues with more and more renewable projects being commissioned each year. So, could it be that one day E.ON will

PAGE 30

A GROWING CONCERN A report from Eurostat and the European Commission paints a clear picture of the way renew energy is growing across the EU. The report found that “The primary production of renewable energy within the EU-28 in 2012 was 177.3 million tonnes of oil equivalent (toe) — a 22.3 % share of total primary energy production from all sources. The quantity of renewable energy produced within the EU-

E.ON CLIMATE & RENEWABLES be a company solely focussed on renewables?

“Indeed, renewable energy is getting more and more important to E.ON,” explains Nitschke. “Our company is getting greener day by day. However, the speed towards renewables differs from country to country. The moment the world can rely only on renewables is located in a very far future. We have a broad portfolio in providing energy solutions for our customers. We will provide these solutions in addition to our renewable activities as long as there is a demand.”

But even with the inevitable

growth of the renewable energy industry there are always concerns from groups who say that investing in power of this kind costs too much and yields poor results. However, Nitschke says that the cost of renewable energy, especially wind energy, is always coming down and in the future, costs should be reduced significantly, even compared to Amrumbank West.

“E.ON has the clear commitment to decrease the costs of renewable energy so that no subsidies are necessary. For sure, the development of new technologies needs support. This is the same

with offshore. But E.ON wants to position itself as the cost leader in building and operating largescale offshore projects. Offshore wind is on the road to becoming a reliable and cost-effective source of electricity. Amrumbank West will help take us significantly closer to this goal. With our next investment in an offshore wind farm we hope to bring down costs by 40% compared to Amrumbank West,” proving that once again the company will use its experience and expertise to improve products and services for investors and consumers

PAGE 31

“Fabrication and engineering is in our blood…”

Editorial: Harriet Pattison

Establishing its Oil & Gas Sector in 2011, Eversendai Offshore has already been behind notable projects earning itself an impressive reputation within the offshore industry. Awarded the contract for the construction of two liftboats earlier this year, the company hopes this will be the start of many more to come. Total World Energy speaks to UAE CEO, Narish Nathan about the company’s exciting future ahead and why it is not fazed by the industry competition…

Over three decades ago, Eversendai began operations in the field as a structural steel erection company in Malaysia. Since 1983 it has grown exponentially and established itself as an industry leader operating

PAGE 32

as an established tur nkey contractor in structural steel design in the fabrication and erection of steelwork for high rise buildings, heavy industrial plants, stadiums, roof structures, infrastructure projects and the installation

of mechanical and electrical works for both power and industrial plants.

A public company in Malaysia, founder Tan Sri A.K. Nathan set up the original group and still owns 72% of the Eversendai Corporation.

EVERSENDAI OFFSHORE His son, Narish Nathan, represents the UAE aspect of the business. Speaking to Total World Energy, Narish Nathan explains the company is still “very close to my father’s heart and he remains very hands on in the business.”

Eversendai currently employs 10,000 people across the group, from Malaysia to India with the Middle East employing almost 7,000 of those. The company’s largest presence is in the UAE with 4,000 employees and Nathan explains he expects this to increase to 6,000 by the end

of next year.

W ith a fabrication factory in Malaysia, India, Dubai, Qatar and the largest in UAE, Eversendai has been responsible for many noteworthy projects over the years.

Eversendai further cemented its reputation for efficiency and excellent time management with its involvement in the Kingdom Centre in Saudi Arabia.

In 2011, Eversendai made the decision to move into the Oil & Gas industry and marine fabrication industry.

It has since established itself

with a sterling reputation and planned its new yard at RAK Maritime City in Ras Al Khaimah, UAE, 12-months ago. Nathan explains this was a very valuable decision with a positive outcome to date. Specialising in complex fabrication projects, this venture is part of Eversendai’s strategy to double its revenue to RM2 billion by 2017.

“The new fabrication yard will be the largest of the other fabrication facilities.

Per annum, between the six facilities, we will have a combined capacity of 250,000 tonnes of fabrication

Design of the 2 GustoMSC NG2500X liftboats currently being built at the yard in Ras Al Khaimah

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Fuel gas conditioning unit for 15MW Power Plant (Garraf Development Facility Operation, Iraq) Client: Petronas Carigalli Iraq Holding B.V. (PCIHBV)

capacity,” explains Nathan.

“The new yard currently measures 20 hectares but we will expand that to 300,000 m2 by June 2015.

The waterfront will also increase to 700m up from its existing 550m and we have an exclusive quayside.

“By June 2015, in the UAE we will have 50 hectares in one country so that’s 500,000 m2 of land, inclusive of our Sharjah facility. This is the largest investment we have made in one single country and represents the base for us in terms of our core business and will act as a support unit

PAGE 34

“In total, we are investing US$50 million into this new facility, which is scheduled for completion by early March 2015”

for the company.

“In total, we are investing US$50 million into this new facility, which is scheduled for completion by early March 2015,” explains Nathan.

THE OFFSHORE DIVISION In May this year, 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.

“The liftboats are being built for Vahana Offshore,” explains

EVERSENDAI OFFSHORE Nathan. “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 longterm lease contracts. We are feeling very positive with the talks we have been having so far with the leading industry players.”

Nathan explains that fabrication for the two liftboats has already began at the new yard: “Traditionally, when we have an expansion of a new facility, we end up building the facility and having to start project fabrication at the same time. However, this has always been a healthy for us as it doesn’t leave us with an empty yard and we generally always have a yard which has ongoing projects.

“This is ongoing right now as we speak and is currently

“The new fabrication yard will be the largest of the other fabrication facilities. Per annum, between the six facilities, we will have a combined capacity of 250,000 tonnes of fabrication capacity”

80% complete. We hope to have it completed by early March,” Nathan adds.

W ith a completion date set for 2016 for the liftboats, this project is quite the milestone for Eversendai Offshore. Selfpropelled working barges for offshore projects, it will be the first Malaysian company to build liftboats for the offshore market.

The very first liftboat, designed in 1955 by brothers Lynn and Orin Dean in Louisiana, set the standard for what we see in the industry today. A liftboat has the capability of raising its hull completely out of the water on its own legs, providing a stable platform where both maintenance and construction can be carried out on oil and gas well platforms.

Safety is paramount in

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PAGE 35

the design and construction of each liftboat due to the stability of the sea floor.

Generally, the liftboat will move on location on a side of the platform where there are no obstructions or pipelines, it will then lower its legs and jacks up out of the water.

Many liftboats practice a preload, a safety measure in place due to the pads resting on a muddy and uneven seafloor. During the process, the boat jacks-up the absolute minimum to clear hull from the tips of the major wave

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“Fabrication is in our blood, engineering is in our blood and building things is in our blood because that’s what we do”

heights, before filling its holds with water for weight. This allows the boat to settle on the seabed for several hours before releasing the water and jacking up to the appropriate working height.

In addition to the preload practice, a complete site survey is also carried out before moving on location.

This survey helps to ensure all seafloor features, including canholes and pipelines, are noted before a final location is chosen.

Eversendai’s two liftboats,

EVERSENDAI OFFSHORE Aryan and Arjun, will have a rectangular hull and four 95m truss-type legs with electric drives and pinion jacks that will allow it to jack up in water depths of an estimated 70m. Additionally, they will each have a 300 tonne crane, accommodation for up to 150 operatives and dynamic positioning systems.

FACING HEALTHY COMPETITION Liftboats are currently a relatively new concept in this area but Eversendai is confident of receiving more orders in the future with measures in place to ensure it becomes the go-to company.

Venturing into a new industry will always mean facing the current competition, which, in the offshore world is continuously improving. A daunting prospect perhaps, but it seems Eversendai Offshore is fairly confident, believing that with its strong workforce and industry expertise, it will become a key industry player in no time at all.

“Competition is good and we always encourage competition as long as it is healthy competition,” Narish explained. “I believe there are already established players in this industry who have been here for many years.

We are looking to position ourselves as a company who has fabrication as its core expertise. We don’t do simple fabrication at Eversendai, we have all the complex fabrication works. Some of the oil and gas people we have bought into our RAK

fabrication facility have been quite amazed at the quality and complexity of the work that we do.

“Fabrication is in our blood, engineering is in our blood and building things is in our blood because that’s what we do. We have the right recipe to be successful because we are not a new company coming from nowhere trying to undercut, we have built power plants which I think is more complicated, it is far simpler trying to commission a liftboat.

“We are a fabricator, a core builder of mechanical, complex plants, so we are trying to bring something new and something fresh to the table. I think we are going to be quite competitive as our management structure is very lean and mean and we have a low cost centre in RAK which we plan to utilise as a base to do all the fabrication works.

“Of the competition out there, some of them have recognised that we are new and conceptually, they have recognised that we are on the

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PAGE 37

“Even though the yard is not ready, for the Petronas job we used our facility in Sharjah.

I believe the yard should be ready by December, major works have started in terms of development. I believe the new yard is going to create another window of opportunity for us in terms of having a waterfront facility, this is the first waterfront facility for Eversendai,” he added.

Narish Nathan Eversendai Offshore CEO

way to become one of the players in town and I believe they should be worried.

“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. Today we are executing a project in Azerbaijan which we have been invited to,” Narish adds.

THE FIRST OIL & GAS PROJECT Earlier this year, Eversendai

PAGE 38

Offshore recently completed its first project for the national oil company, Petronas.

Constructing a fuel gas module for Iraqi operations, Nathan explained in an interview with Arabian Oil & Gas magazine: “It is the first time Eversendai has done an oil and gas project. It was a big milestone for us.”

Executed and completed to Eversendai’s high standards, Nathan explained in the interview just how important this reputation is for the company: “We are banking on the reputation of being able to deliver what we are able to take on and it speaks volumes that Petronas are surprised and impressed that we have executed the project well. We are looking to see how we can work with other oil companies, and EPC companies as well.

We are also looking at how we can form alliances to bid for jobs jointly.

LEADER IN POWER PLANT CONSTRUCTION A prominent market leader in power plant construction, Eversendai has completed numerous mega coal fired power plants since its inception. Notable projects include the 3x700MW Manjung Power Plant in Perak, Malaysia for Alstom Power and the 3x700MW Tanjung Bin Power Plant in Johor, Malaysia.

Eversendai’s contract for the 2x700MW Jimah Power Plant in Port Dickson, Malaysia for IHI Corporation and Alstom Power included the erection of boilers, ESP, FGD and all related works.

W ith a solid repute within the industry for completing projects on time, these developments, amongst many others, involve complex erections which require not only innovative engineering but construction methodology which are both developed inhouse and on-site.

A BUSY FUTURE W ith over three decades of experience, Eversendai has already accomplished an impressive reputation with its new venture into the Oil & Gas

EVERSENDAI OFFSHORE industry.

“We are very busy,” Nathan explains. “The team has been headhunted and assembled and all have the relevant industry experience. They have all been extremely busy, especially in the start-up and execution of the two liftboats projects.

“Although people are saying

“Competition is good and we always encourage competition as long as it is healthy competition” the oil prices are going down, I think we have two years of work which is in the final stages of discussion. Today we are looking at projects we need to secure and looking ahead and I think it looks very promising and interesting.

Although markets can change, we are very, very positive,” concludes Nathan.

Forming allegiances with some of the global industry leaders and maintaining a highly competitive and exciting edge, it seems that Eversendai Offshore’s recent success is only the beginning of a well-deserved and busy future ahead

PAGE 39

Does Shell hold the answer for South Africa?

Editorial: Roland Douglas

© Shell

“Some 10 million South Africans have no access to electricity, representing about 20% of the country’s population. The country has in recent years experienced power blackouts with dire consequences for the economy. South Africa is in a position where, because of the huge gap in the energy supply, it will need to invest in all types of energy sources, ranging from coal, to gas, to nuclear and to renewables,” Bonang Mohale, Shell South Africa Chairman said in a recent interview. The company is looking at the potential of fracking, but is this whole concept safe and effective?

One of the major problems for today’s modern South Africa

blackouts would continue after a coal silo at Majuba Power Plant

Johannesburg on November 2nd.

The fact that the country still

is energy. For a country with a population of 55 million people, it seems beyond belief that energy still poses such a conundrum.

Just last month, the country’s utilities provider, Eskom, announced that rolling power

cracked and collapsed, effecting output from the facility. “It is very likely that load-shedding will continue for the week,” the company’s Group Executive for Sustainability, Steve Lennon said when talking to journalists in

has to implement ‘load-shedding’ shows how the ever-increasing demand for energy is clearly outstripping the capacity of South Africa’s aging fleet of energy production resources.

So what is the answer to this

PAGE 40

SHELL SOUTH AFRICA important energy question? For a nation that is always developing and placing more and more demand on energy infrastructure, is there a solution that could bolster the energy industry for the foreseeable future? According to Shell South Africa and Chairman Bonang Mohale, the answer is shale gas.

“My sense is that some companies will end up saying ‘can’t we find other, better countries where we could do this much quicker?’ and the investment will end up going to Mozambique or Namibia where it is perceived that the ease of doing business is better.

“We will forever say ‘we thought we had gas in the Karoo’ but nobody was encouraged to go and definitively find out whether there is indeed shale gas and does it flow in sufficient quantities to be economically viable so that we can use the gas as a game changer to address the trilemma of challenges that are keeping us awake at night,” Mohale said during an interview with China Central Television in November.

Considering the government’s target to dramatically reduce the figure of eight million who currently live without access to electricity, perhaps exploration into shale gas is a viable option.

Around 90% of the country’s power is still generated by coal and South Africa is now looking for a cleaner energy source.

Shell South Africa says that the

as much as half of the CO2 that is produced using coal.

But of course there is one big issue – safety. Can the shale gas be extracted safely, in a way that does not impact on the environment and the people who live in the Karoo?

Currently the whole shale gas argument, that has been raging around the world and not just in South Africa, suggests that the controversial method of extracting the shale gas known as fracking (hydraulic fracturing) is unproven and while early uses of the technique have thrown up only a few issues, there is still much that is unknown about the long-term effects on the land that is ‘fracked’.

answer could be located just inland from Cape Town in the vast area known as the Karoo, a semi-desert, natural region where scientists believe a huge shale gas reservoir could be hiding. Generating South African electricity using gas would emit

still protestors in the US and Europe, and in South Africa Shell has had to put its strongest foot forward when it comes to allaying

FRACKING Fracking is an extremely complex process but is currently the only known method to extract shale gas. The process is an advanced drilling technique that extracts gas that’s trapped between different layers of rock. A mix of water, sand and chemicals is pumped through the well, fracturing the rock and releasing the gas. The technique has been used successfully in the USA for the past decade with experts reporting that it could remain at the forefront of the US energy industry for the next two decades at least.

But the opposition to fracking is large; there are

the fears of local communities who see fracking as too much of a risk.

Some of the issues raised by those opposed to fracking include water quality, environmental protection and overall safety of the process.

Some say that the chemicals used in the fracking process can end up in the clean water supply, creating risks to human and animal health; some say that valuable fossils are disturbed during drilling into rock formations; and others have concerns over the damage that could be done to underground aquifers, making farming in the Karoo extremely difficult. But Shell has a fantastic record when it comes to safe fracking and the company says that every effort will be made to ensure the process is as safe as it can possibly be, maintaining its strong track record.

Gheneez Munian from Shell South Africa says: “We are going to have serious problems in the future if we do not find alternative ways of creating energy and if shale gas is there and it’s accessible and

© Shell

PAGE 41

© Shell commercially viable to extract, it’s definitely something that could be a game changer in South Africa.

“We need to be cautious and apply our vigorous safety principles to ensure that we can maintain our track record and there isn’t a reason why we shouldn’t maintain our track record going forward.”

Mohale says that the extraction of this valuable gas could be of major benefit to the South African economy, as well as contributing to the country’s fragile energy mix, and he added that the views of the local communities would

estimated shale gas reserves in the Karoo. This would translate into a GDP contribution of around 3.3% to 9.6%, with an estimated 300,000-700,000 permanent jobs for a period of 25 years, which is the expected lifetime of an initial first phase shale gas development. As with everything else in business, there are risks.

To mitigate these risks, we will continue to maintain the very highest operational standards, as underpinned by our global onshore shale gas operating principles.

“Furthermore, South Africa’s

the people of the Karoo an opportunity to provide input. The entire process is transparent and open, and is not being rushed to ensure that decisions are informed by a well thought through process involving all stakeholders,” he said in an interview with Oxford Business Group (OBG).

The Chairman is aware of the issues that have been raised by communities and industry commentators and he is confident that Shell’s activity in the Karoo would have no negative implications and the majority of

always be considered.

“A study conducted on Shell’s behalf by economic consulting firm Econometrix focuses on two conservative scenarios: the successful extraction of 20 trillion cubic feet (tcf) and 50 tcf, or 4% and 10% respectively of the

legislation is fairly stringent, and for each part of the process, specific environmental impact assessments must be undertaken. The process also includes multiple rounds of consultation with the local community, which gives

the sticking points have been addressed in the company’s plans.

“Fracking has been taking place in parts of the world for over 60 years,” he told OBG “and the technology is constantly improving so as to mitigate

PAGE 42

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the associated risks. There are perhaps three main risk areas associated with fracking in the Karoo: the limited availability of water, the risk of contaminating freshwater aquifers and the potential environmental impact.

“We recognise that in an arid area like the Karoo, even limited water use may be a concern.

We have made legally binding commitments not to compete with residents of the Karoo for their fresh water. For the initial exploration wells we intend to import the water by truck or rail, until the team of groundwater specialists can confirm alternative sources of deeper, brackish, non-potable waters that could be used. Regarding the risk of contamination, a recent study by the US Energy Department has looked into the issue of the potential health and environmental impacts of hydraulic fracturing, confirming

PAGE 44

“It is expected that more than 30 LNG carriers will be ordered annually, as LNG exports are expanding to the US, Australia, and East Africa. As we have the number one market share in the LNG carrier market, we will benefit from these orders”

that when a well is designed and constructed correctly, applying the best drilling standards and practices, groundwater will not be contaminated.

“With respect to general environmental concerns, development activity would be limited to a surface area that is less than 1% of the area for which Shell has applied. Once the gas wells are drilled and fractured, relatively little on-site activity is necessary to keep them producing for 15 years or more.”

ECONOMIC BENEFITS There is one set of facts and figures that can’t be disputed when talking about fracking in the Karoo is the economic benefits that the region will receive. The aforementioned jobs that could be created, the infrastructure that would be brought to the region, the investment from global energy companies and the financial

SHELL SOUTH AFRICA

Karoo SA

benefits that will be accrued from the sale of the gas will bring about major changes for the region and the country.

According to Vuyisa Jantjies, a community worker interviewed

by Shell South Africa in a promotional video, the economic investment that Shell would bring to the Karoo region and the urban townships would be invaluable.

“We need the injection that Shell would bring,” he says “because Shell is not only coming with the money, they are also bringing a lot of other expertise and all of that can work to our advantage. From listening to the communities, those that don’t have anything want this project

half the carbon dioxide of a modern coal plant, and up to 70% less than a decades-old steam turbine coal plant. The Energy Information Administration (EIA) has previously estimated the potential shale gas resources in South Africa to be around 485 tcf, which is an incredible amount considering that in many parts of the world, gas pipelines have been laid for reserves of just two tcf.

“So in addition to contributing to closing the power generation gap, natural gas is affordable and environmentally acceptable.

The country could also realise substantial job creation and other benefits should economically

this controversial method should be used.

In November, South African Chamber of Commerce and Industry (SACCI) CEO, Neren Rau said: “The South African Chamber of Commerce and Industry supports the call by Shell that the government should prioritise fracking exploration and extraction in order to support energy diversification, economic growth and job creation. The reported R2 billion investment

by Shell alone together with the estimated 700,000 jobs that the fracking industry will create is compelling and should urge government to fast-track opening the sector. South Africa can ease

so much,” he said.

Mohale is also quick to point out the positive environmental impacts that have been the focus of so many discussions.

“In our view, the case for natural gas is compelling. A modern natural gas plant emits

viable gas resources exist in the Karoo,” he told OBG. Right now, the future of shale gas in South Africa is still somewhat unclear. Although there are clear benefits and pitfalls for the energy source, the debate continues as to whether or not

the burden on Eskom, open the way for cleaner energy on a mass scale, support energy intensive job creation and could ultimately become a major energy exporter.”

He went on to say that the business community “urgently requires clarity on government PAGE 45

© Shell

policy direction and regulatory certainty on fracking. The question is no longer whether South Africa should engage in fracking, but how best to regulate an industry and attract the type of investors who would import their technical skills and experience to ensure optimal extraction and environmental protection.”

This followed the release of a statement by The Petroleum Agency South Africa (Pasa), in October, which confirmed that, after extensive discussion with the Department of Mineral Resources (DMR), it would proceed with the processing of pending shale-gas

when the final regulations governing the exploration and development of shale-gas resources had been confirmed and when exploration licenses were granted. “Following this, we would plan to drill one or two core holes to gather fresh core before drilling and fracture stimulating one vertical well. The precise timing of these activities is yet to be set, and may be dependent on the permits required but this would represent the first phase of activity.”

Shell South Africa has also called for clarity from the government and after applying for licenses for three blocks in a 90 000 km2 area, the company

all stakeholders in the Karoo.

Everyone from farmers, residents, animal welfare groups, local governmental organisations, investors, schools and partner companies will be kept in the loop so that the process is as transparent and inclusive as possible.

Mohale said at the IISA International Insurance Conference in July: “It is good to leave a better world for our children but we need to leave better children for our world,” highlighting the importance of educating in the right way.

During its application process, Shell has already hosted two public consultation processes, leading

applications received in February 2011 from Shell South Africa Upstream, Falcon Oil and Gas and Challenger Energy’s Bundu Oil and Gas Exploration.

Challenger Energy MD, Robert Willes told Engineering News Online exactly how the process would begin

is keen to further understand the meaning of the announcement from Pasa.

to the generation of around 6300 questions from the public. The challenge now will be to convince the naysayers that fracking is safe, environmentally sound and cost effective; a challenge that faces the industry worldwide, and a challenge that gets bigger every single day

PAGE 46

EDUCATING One thing that is certain is that Shell South Africa will continue to stay in close contact with

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Swiss energy is getting pumped up…

Editorial: Roland Douglas

The CHF 2.1 billion Linthal 2015 expansion project is set to be completed in 2015/16. This is a major energy project that looks set to safeguard the future security of electricity supply for north-eastern and central Switzerland.

Switzerland is one of the world’s interesting cases when it comes to energy production and usage. With approximately 56% of the country’s energy coming from hydroelectricity and 39% from nuclear power,

or three decades.

“The government has voted for a phaseout because we want to ensure a secure and autonomous supply of energy,” she said at a press conference in Bern in 2011.

more hydropower? Or maybe other renewable sources; wind or solar?

Well the answer is a mixture of these ideas and one company that will play a prominent role in the further development of the nation’s energy

Switzerland has a nearly CO2-free electricity-generating network. And the plans for this network to become even more efficient are already afoot with Energy Minister, Doris Leuthard saying in 2011 that the country will end its use of nuclear energy in the next two

“Fukushima showed that the risk of nuclear power is too high, which in turn has also increased the costs of this energy form.” The first reactor will reportedly be taken offline in 2019.

So what is the future of the energy industry in Switzerland? Perhaps

sector is Axpo.

Axpo is a Swiss energy company active since 1914 with local roots and a European focus. The company is active in the production, distribution and sale of electricity, as well as in international trading and natural gas

PAGE 48

AXPO: LINTHAL 2015 PROJECT

business. Axpo has grown significantly in the last century and today boasts a market position which sees it operate in over 20 locations throughout Europe. Bearing testament to its position, the company is accredited on some 20 energy exchanges and numerous broker platforms throughout Europe.

Currently, one of the major projects that the company is involved in is the Linthal 2015 Project that is seeing Axpo build a new underground pumped-storage power plant in the Canton of Glarus in the Swiss Alps.

Pumped-storage plants are designed

of the first countries to use such a system.

The system stores energy in the form of gravitational potential energy of water, pumped from a lower elevation reservoir to a higher elevation. Lowcost off-peak electric power is used to run the pumps. During periods of high electrical demand, the stored water is then released, flowing back to the lower reservoir, through turbines to produce electric power and this is exactly how the system will work in Switzerland.

“The pumped-storage plant in the Glarus Alps is the largest expansion project of Axpo and a big investment in the security of supply at CHF

up water,” explains Axpo Media Spokesperson, Daniela Biedermann.

“From the end of 2015, the water from the Limmernsee reservoir will be pumped back into the Muttsee reservoir, 630 m higher in the Glarus Alps and re-used as needed to generate electricity. The new plant will have a pump power and a turbine output of 1000 MW. Construction is on schedule; the first group of machines to produce electricity are on track and will be ready, according to the plan, at the end of 2015,” she adds.

“The fourth and last major transformer (each 220 tons) was delivered to the transformer cavern at the beginning of October 2014. This

with load balancing in mind and are not generally considered as a base load supply system like a coal fired power plant or nuclear plant. The history of pumped-storage plants dates back to the 1890’s and many consider Italy and Switzerland as two

2.1 billion. Linthal 2015 provides a highly flexible system which will produce within a few minutes both large amounts of electricity and also accommodate temporary overcurrent shots. The system can also store power for later use by pumping

means that all major components for the project Linthal 2015 are now on the site.”

This is a project that has been going on for some time; the amount of planning and development involved in construction in such a complicated

LINTHAL 2015

PAGE 49

location is mind-blowing. After much consideration and many surveys and consultations, the project began in 2005.

“The initiative arose from the findings of a study on the development potential of a large hydropower system in Switzerland. The responsibility for this from the very beginning fell to the hydro energy division of Axpo.

From several preliminary studies, ‘Linthal 2015’ emerged as the most promising project, based on extensive considerations of technical, economic and political feasibility. The project started in early 2005,” Biedermann explains.

After this, progress moved swiftly and relationships with a number of contractors and suppliers were established ensuring that each party bought experience to the relationship.

“After intensive engineering and preparatory work, including relicensing, preconstruction work on plant site began in 2008 with main construction work starting in early summer 2009,” says Biedermann

PAGE 50

“Electricity is the key energy of the future. In 2014, 100 years after its founding, Axpo is once again faced with great challenges.

Axpo will meet these with courage, determination, and perseverance, and continue to advocate secure electricity supply”

Along with its main contractors, Axpo as an organisation has much experience with hydro operations (as mentioned above, Switzerland is big on hydropower) and this wealth of experience was put to good use during the planning and implementation stages of this project.

“The Linthal 2015 project has new dimensions in several respects. But Axpo Hydro Energy operates several power plants with pump storages and therefore has many years of experience in the operation and maintenance of such facilities. This experience could be used in project planning and implementation.

“After completion of the expansion Kraftwerke Linth-Limmern ((KLL) a partnership between the Canton of Glarus, 15%, and Axpo, 85%) will operate the most powerful pumpedstorage power station in Switzerland.

Power is currently at 460 MW and following the expansion from the end of 2015, when the first group of machines to produce electricity, approximately 1460 MW will be

AXPO: LINTHAL 2015 PROJECT produced,” Biedermann explains.

CHALLENGING CIRCUMSTANCES Of course, a project like this, involving so many people, so much money and such challenging logistics, will present challenges. One of the main hurdles is organising the many contractors carrying out a wide-ranging list of activities.

“The cooperation with numerous companies which are involved in the project is extremely challenging due to the complexity of the project and the many interfaces. The coordination effort is therefore understandably large.

The project is on track and overall, indicating generally good cooperation between all parties,” says Biedermann.

Then there is the logistics; operating underground, on a mountain is not an everyday task. To assist in this regard, the decision was taken to install an enormous cableway for the transportation of equipment up and down the mountain.

“To build in the mountains places extreme demands on logistics,” says Biedermann. “For example, all building materials had to first be transported to the different construction sites - each machine and also cement and gravel for concrete production. For this, two construction cableways were built with a capacity of 25 tons.”

After logistics there is the raft of technical challenges that involve everything from scientific research through to construction, electrical engineering and safety verification; each area has to be carefully considered by a specialist.

“A major challenge was when the construction work on the pressure tunnels ran into geological fault zones. But thanks to the long tunnel experience of the parties, this challenge could be overcome. Another challenge is the commissioning of four groups of machines. The technical

design of the motor generators is an innovation which is tailored to the needs of the power plant’s operations in the future,” Biedermann says.

And even with all of the intensive research, planning and construction, the project has been welcomed by the local community and the wider Swiss society with government and regulators all showing support.

“The cooperation, especially with the Canton Glarus and also with the relevant federal authorities, was very constructive from the beginning. The necessary permits were available within a relatively short time period.

“The acceptance for the pumpedstorage plant was very positive and on the engineering side, we have not received a single complaint,” says

Biedermann.

This is unusual for energy projects of this size, there is usually at least a few objections, sometimes relating to concerns over environmental impacts but Biedermann says that a special programme was developed to ensure all views were taken on board and regular updates are given, involving all parties, in order to minimise any negative environmental effect.

“To minimise environmental impact, the Environmental Impact Assessment findings have been integrated into the project framework. This has included feedback from all parties including a support group, specially set up with representatives of agencies and conservation organisations, which has set out procedures and

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PAGE 51

eco-logical measures. In addition, dialogue with stakeholders from the beginning of the project has been well maintained and will continue throughout the construction period.

This open communication led to a solid foundation of trust and jointly supported solutions. All the planning and approval processes were handled very efficiently,” she says.

AN AXPO FUTURE Axpo’s plans for the future, post Linthal 2015, are big. The company is seeking to invest further into onshore wind power to ensure the primary goal of continuing profitability as Biedermann explains: “Low wholesale electricity prices in Europe and increasing regulatory requirements pose a major challenge for the energy market. Aided by its strong fundamentals, Axpo can meet these challenges by building on its 100 years of experience. We are strategically well-positioned and flexible with a healthy financial

PAGE 52

situation, low debt and broad expertise from production to socket.

“These strengths must now be expanded and consolidated. The primary goal is to maintain the group’s access to the capital market and to ensure its profitability.

“Where new energies like wind and solar power enjoy subsidies, the economic viability of nearly CO2free hydro and nuclear power is increasingly endangered. Axpo has adapted its strategy to respond to the changed market environment. The group strategy is based on four pillars: Optimising and strengthening the core business, significantly reducing costs, developing and expanding new business areas with attractive returns, and targeting investments even more selectively than before.

“Investment decisions will depend on two criteria: The safety of the facilities and the expected return.

For example, significant investment is being made in the safety of the

Beznau nuclear power plant. Proven nuclear power plants will continue to be operated as long as they are safe and profitable. Major projects currently under way include the mentioned Linthal 2015 project, the important gas project Trans Adriatic Pipeline (TAP) and the offshore wind farm Global Tech I in Northern Germany, and these will all push ahead. In the area of new energies, Axpo is focusing primarily on onshore wind farms in Europe,” she says.

And while much of the company’s focus right now is on Linthal 2015, Biedermann reminds that other projects that are underway are also major for the European energy market.

“We have Global Tech I in the German North Sea where we participate with a 24.1% stake. The facility is located approximately 180 kilometres away from Bremerhaven and 38 km to the northwest of Emden. With a water depth of 40 metres, far away from the mainland,

AXPO: LINTHAL 2015 PROJECT the construction of this wind field is a pioneering achievement. Global Tech l has an area of 41m² on which 80 wind turbines have been built. Each turbine has an output of five megawatts.

Global Tech I is about to be finished in 2015.

“We are also focussing on onshore wind farms in Europe. Axpo is shareholder (25.0%) in Terravent, a Swiss investment company with the intention of investing in onshore wind farms in Europe. The company has already acquired 90 megawatts of installed capacity in Germany and France. Further acquisitions are planned in total height of 20 to 30 megawatts of installed capacity.

“Axpo is also involved in the TAP project as a shareholder (5%). The gas pipeline starts in Greece, crosses through Albania and the Adriatic and reaches landfall again in southern Italy (Length around 880 km). The new southern corridor guarantees longterm diversification and security of supply for Western Europe with natural gas from the Caspian region. The natural gas will flow from Azerbaijan through TAP and the Swiss Transitgas Pipeline to industrial customers and municipal utilities.

The TAP project was developed by EGL (today Axpo Trading AG) for over 10 years. In 2013, TAP was selected and as of 2019 it will transport natural gas from Azerbaijan to Europe.”

Biedermann. “Therefore Axpo is committed to climate protection and improving energy efficiency within the company. Up to 2017, the energy company plans to reduce greenhouse gas emissions in Switzerland by 80% as compared to the base year 2008/09. Furthermore, Axpo intends to increase energy efficiency by 240 million kWh in the areas of electricity production and distribution, as well as operations.

“In addition Axpo introduces a specific codex for business partners. Axpo is taking a stand on sustainability that includes its suppliers. As of mid-2014, the company introduced a codex for adherence to business ethics, as well as minimum social and ecological standards for its business partners.

The Axpo codex is based on the principles of the United Nations Global Compact,” she says.

By 2017, at least 80% of the Axpo Group order volume will be awarded to suppliers that have signed the codex for business partners. With the introduction of the codex, Axpo is underpinning its social responsibility awareness as a

company owned by the Northeastern Swiss Cantons. Andrew Walo, CEO Axpo Holding AG said: “Our responsibility does not stop at our door, it also encompasses our suppliers. By introducing guidelines for our business partners, we are making clear how important it is to adhere to ethical, sustainable principles in our supply chain,” further reinforcing the company’s commitment to green values.

This is a company that has, and continues to, lay-down significant milestones and in its 100 years there have been many challenges that have arisen and that have been successfully navigated. And there is no expectation that things will get easier, but Axpo is certainly set for the challenge.

“Electricity is the key energy of the future. In 2014, 100 years after its founding, Axpo is once again faced with great challenges. Axpo will meet these with courage, determination, and perseverance, and continue to advocate secure electricity supply,” Biedermann concludes

COMMITMENT TO GREEN With Switzerland’s aforementioned impressive CO2 statistics, Axpo being one of the country’s energy industry leaders has an intention, and unofficial responsibility, to ensure the country continues to set an example of how green energy can be used to power not just a building or a town, but a whole nation.

“Green business becomes more and more important for Axpo,” says

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KOC reduces flaring to achieve record low

Editorial: Roland Douglas

Kuwait Oil Company is always looking for ways it can improve on an already sterling reputation when it comes to HSE. In November, the company announced that it had significantly reduced gas flaring, as part of its commitment to the World Bank-led Global Gas Flaring Reduction Partnership.

Kuwait’s oil-driven economy is one of the success stories of the

importing nations around the world.

And many other benefits from a

become the largest oil exporter in the Persian Gulf region in 1952.

development of the Middle East.

Because of the success of oil production and export, Kuwait has managed to position itself as one of the prominent economies in the Middle East and a strategic partner for many petroleum

prosperous oil business have arisen such as the Kuwaiti dinar becoming the highest-valued currency unit in the world and the era 1946-1982 is widely known as the ‘Golden Era’, a period of renowned prosperity driven by oil which saw the country

A lot of this success is down to the innovative organisations that have operated in the oil sector in the country for many years. Some of the world’s best oil production engineers and professionals work in Kuwait and the energy sector is

PAGE 54

KUWAIT OIL COMPANY bursting with expertise and a desire to improve. This is demonstrated

by Kuwait Oil Company, the State’s national oil business with a mission to explore, develop and produce hydrocarbons within the State of Kuwait, promote the care and development of people and deliver on commitments to stakeholders in a compliant, profitable, safe and environmentally responsible manner.

Oil in Kuwait was first discovered on February 22nd 1938 in the Burgan field. People had often noticed black patches of a rough bituminous substance in the Kuwait desert but it was not until the matter was investigated in 1935 that it became apparent that Kuwait was sitting on a wealth of resources. On December 23rd, 1934, His Highness Sheikh Ahmad Al-Jaber Al-Sabah signed the first Kuwait Oil Concession Agreement

that was awarded to the newly founded Kuwait Oil Company Limited (KOC).

In 1946 Sheikh Ahmad Al-Jaber Al-Sabah inaugurated the export of Kuwait’s first crude oil shipment and construction of new export facilities and exploration of new fields quickly followed.

KOC was founded by the AngloPersian Oil Company (today known as BP) and Gulf Oil Corporation (today known as Chevron) but in 1975, the Kuwait Government took 100% control over Kuwait Oil Company, and by 1980, the Kuwait Petroleum Corporation was established to bring all state owned oil companies under one entity.

Since then, the company’s expertise has grown dramatically, seeing huge leaps forward in exploration capabilities and operational proficiency and earlier this year the company was

recognised by the World Bank for its efforts in reducing gas flaring across all operational divisions.

FLARING SUCCESS Since 2008, Kuwait has imported its natural gas because it uses more than it produces. The government has had to deal with the issue of keeping up with demand for electricity and one of the ways that it found to assist in this regard was through capturing associated gas, instead of wastefully releasing and flaring it during oil production.

The company represents the country in the World Bank-led Global Gas Flaring Reduction Partnership (GGFR) which was launched at the World Summit on Sustainable Development in Johannesburg in 2002. GGFR supports the efforts of oil producing countries and companies to

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KUWAIT OIL COMPANY increase the use of associated natural gas and thus reduce flaring and venting, which wastes valuable resources and damages the environment.

KOC is working towards a goal of reducing gas flaring to less than 1% of total production by 2017. This will be achieved by following a number of key strategic ideas including; ensuring a solid commitment from all levels of the company to make flare reduction a priority, making significant financial investments in state-of-the-art facilities and operations, holding periodic reviews of the gas value chain from producing well to end user in order to identify all sources of waste or potential optimisation, and working closely with GGFR to ensure the target is met.

KOC’s Manager Gas Operations Group, Mohammed Al-Zuabi said in the World Bank report: “We are strongly committed to creating a healthier environment, and have dramatically reduced gas flaring.

We are steadfast to further reduce it to as low as possible.

“I firmly believe it was only possible because there was a complete change in the employee mind-set towards better understanding the environmental consequences of gas flaring and preserving a very valuable resource,” he added.

GGFR has many partner companies and countries around the world, all committed to the initiative, including; Algeria (Sonatrach), Angola (Sonangol), Azerbaijan, Cameroon (SNH),

Qatar, the United States (DOE) and Uzbekistan; BP, Chevron, ConocoPhillips, ENI, ExxonMobil, Marathon Oil, Maersk Oil & Gas, Pemex, Qatar Petroleum, Shell, Statoil, TOTAL; European Union, the World Bank Group and Wärtsilä.

Flaring has received much attention in the past few months following a report which highlighted the amount of useable gas being flared in North Dakota’s Bakken shale formation in the USA. According to the report from the Wall St. Journal, 10.3 billion cubic feet (BCF) of gas were flared there during April 2014 representing 30% of total gas production in the state

for the month.

The majority of GGFR partners have now agreed to endorse and voluntary Standard to eliminate venting and reduce flaring significantly within five to ten years by finding commercial uses for the associated gas through increased collaboration between countries.

INCREASING PRODUCTION One of the company’s other targets for the next five years is to increase production capacity to four million bpd by 2020 from a capacity of around 3.4 million bpd. According to reports, the state plans to spend $40 billion as part of this ramp-up.

Ecuador (PetroEcuador), Equatorial Guinea, European Bank for Reconstruction and Development (EBRD), France, Gabon, Indonesia, Iraq, Kazakhstan, KhantyMansijsysk (Russia), Mexico (SENER), Nigeria, Norway,

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“There are plans to spend $40 billion to lift the capacity up to four million by 2020 and maintain that figure till 2030,” Saeed al-Shaheen, manager of well surveillance at KOC told news agency, Reuters at a recent industry gathering.

“We are a state oil company, we always look at the long-term picture and at a time when the oil price is low, it’s more economical to invest in expansion,” he added.

This investment aligns with KPC’s ‘2030 Strategy’ in which the company details its ambitions for the next decade and beyond.

Two of the key elements in this strategy involve maximising the strategic value from oil and growing reserves for a sustainable

acquisitions, and the application of appropriate reservoir management practices.

And it looks as though this focus is paying off after reports have suggested that the company has managed to stimulate 90 oil wells south and east of the country that produce 90,000 bpd and the other 22 wells in the west with 15,000 bpd. This has been achieved through the use of a method known as ‘layer fissuring’ which facilitates oil gushing from these wells.

Saeed Al-Shaheen said that the results had been “amazing” and beyond what the company had originally expected. KOC started using layer fissuring two years ago and Al-Shaheen says that different

In the north of the country, KOC has signed contracts for the construction of three Gathering Centers which is again part of a drive to increase oil production in Northern Kuwait from 700,000 bopd to one million within the next five years.

Gathering Centers stabilise the crude through a multi-stage stabilisation process and separate gas and water from the crude to meet its quality required for downstream operations.

Originally, there were 26 Gathering Centers in KOC operating oilfields prior to invasion of the country. The first center or ‘GC-1’ was commissioned on 7th June, 1946 at Burgan Oilfield

future. Growing the company’s reserves for a sustainable future will involve optimising and promoting a portfolio of hydrocarbon resources that supports and sustains growth through aggressive onshore and offshore exploration and new

methods are always considered for each individual well depending on the production case and geological nature. One major method is artificial lift, used for producing one third of Kuwait’s daily production, about one million bpd.

and the last center ‘GC-26’ on September 1980, at the Ratqa oilfield. Presently 21 Gathering Centers are operational and receive crude from various wellheads located in the producing oilfields The contracts for the new

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KUWAIT OIL COMPANY Gathering Centers were signed with PETROFAC, Larsen & Toubro and Dodsal with PETROFAC building GC-29 for around KD 194 million, Larsen & Toubro building GC-30 for around KD 240 million and Dodsal building GC-31 for around KD 228 million.

PETROFAC’s contract is expected to last for around three years and Subramanian Sarma, Managing Director of Petrofac’s Onshore Engineering & Construction business, commented: “We have a long track record with KOC which extends over the last 14 years and the award of GC29 represents our tenth project in the country to date.

With ongoing projects for both KOC and Kuwait National Petroleum Company and good visibility of the future pipeline, Kuwait is, and will continue to be, of strategic importance to PETROFAC’S ambitions in the Middle East market.”

During a special ceremony held on the occasion of signing the contracts KOC CEO, Hashem Sayed Hashem affirmed the importance of these projects and described them as critical to boosting production capacity in North Kuwait. He also emphasised the need to comply with HSE regulations and expressed hope that the projects will be executed within the set timeframe and allocated budget.

already planning ambitious plans to survey the entire State. This will involve a high-resolution, fullazimuth and long-offset 3D land survey to achieve its exploration and development multi-objectives where more than 210,000 single-sensor channels will be utilised; the highest ever in the industry.

The company’s exploration group is also planning offshore surveying and currently has a 2D offshore seismic survey underway with the objective of oil and gas exploration for both Cretaceous

and Jurassic reservoirs.

Then there is further plans for the Greater Burgan where of several high-resolution land 3D surveys are underway with more in the pipeline for North-West Kuwait.

All in all, this is a company that is definitely delivering what it says it will deliver and with its continuing focus on improving HSE principles, this is a company that will become more and more important to the global energy market as we move into 2015 and beyond

STRONG FUTURE The future of KOC looks increasingly positive. With the new Gathering Centers and many other projects coming on line in the very-near future, there is no reason why this company cannot climb to even greater heights, further benefitting the economy of Kuwait and OPEC. KOC’s exploration division is

PAGE 59

Samsung Heavy Industries: Aiming to be the best Editorial: Rosie DeWinter

The undisputed leader in high-value drill ships and FPSO vessels, Samsung Heavy Industries has not only delivered the world’s largest semi-submerged offshore drilling platform but cements its status by providing technological excellence with new and innovative products to help improve efficiency and production to the shipbuilding industry. With an increasingly healthy order book, receiving 1,054 orders for ships unit to date, Samsung Heavy Industries is well on its way to achieving its aim: To write a new chapter for the history of the shipbuilding and offshore industry…

As one of the largest shipbuilders in the world and one of the ‘Big

within the offshore and shipbuilding industry includes

Three’ shipbuilders in South Korea, Samsung Heavy Industries has an unsurpassable reputation with the world’s number one share in the drill ship, LNG carrier and FPSO markets.

The company’s capabilities

the delivery of the world’s largest semi-submerged offshore drilling platform and providing technological excellence through ship network systems including FUGAS (fuel gas supply and storage system) and PURIMAR

PAGE 60

(ballast water management system).

THE GOEJE SHIPYARD Samsung Heavy Industries’ largest shipyard in South Korea, the Goeje Shipyard, is located on the southern tip of the Korean peninsula and is estimated to be

SAMSUNG HEAVY INDUSTRIES the size of 305 football pitches.

With 25,000 workers on site, it is the busiest shipyard in the world and has a global reputation for having the world’s highest dock turnover rate with its largest dock, No.3, producing 30 vessels a year for the industry.

The undisputed leader in highvalue drill ships and vessels, the process for shipbuilding is not only one of immense scale but dedication and hard work too. When Samsung Heavy Industries receives an order and the blueprint has been designed, the main raw material, steel, is brought in before both workers and automation robots begin to cut, press and weld the three or four centimetre steel sheets into different ship parts.

Samsung Heavy Industries

continues to maintain its worldleading production processing automation rate of 68% by using its own internally developed intelligent robots which are used for a multitude of services including welding, blasting and pipe inspection and cleaning.

The steel sheets are then assembled into bigger blocks and fitted out with the necessary internal equipment before being moved by a crane into the dock.

As the dock is filled with water, the vessel is launched where the final checks are carried out, including connecting electrical wires, installing the last pipes and finishing the cabin interior.

When you consider this process and that it takes an estimated 18 months to three years to complete just one build,

producing 30 vessels from one dock alone suddenly seems a rather impressive feat.

COVERING THE POLAR REGIONS Earlier this year, Samsung Heavy Industries received an order for three arctic shuttle tankers with an estimated worth of US$440 million. The tankers will be classified as Arc-7 and will be the highest standard of ice-breaking cargo ship built in Korea today. They will be built to withstand and operate in extreme temperatures reaching as low as -45 o C and break ice up to 1.4m thick.

Measuring 249m in length and 34m wide, this new innovative shuttle tanker will combine two types of ship. Previously a

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separate ice-breaker would be needed to break the ice with its bow but with this amalgamation of proficiencies, it will help to drastically increase efficiency and improve time-frames.

Building the world’s first twoway ice breaking oil tanker, the ‘Vasily Dinkov’, in 2007, Samsung Heavy Industries received a second order in October from a European ship owner for three 42,000DWT tankers which will transfer crude oil produced in the Novy Portoil field near Yamal peninsula of Russia to the icefree harbour in Murmansk.

PROVIDING TRANSPORT FOR SHALE GAS A second order, also received in October, was from an Asian ship owner for three LNG carriers to carry US shale gas bound

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for Asia, at a cost of US$620 million. The LNG carriers will feature dual-fuel engines, offering more efficient travel, a better performance and lower gas emissions compared to previous operating LNG carriers.

These carriers are due for delivery in 2018 to transfer US shale gas and with an estimated 90 vessels needed for the project, 60 still need to be ordered. This new order for Samsung Heavy Industries brings the company’s order total to an exponential US$6.5 billion.

LNG carrier development

exports are expanding to the US, Australia, and East Africa.

As we have the number one market share in the LNG carrier market, we will benefit from these orders.”

Since the launch of its shipbuilding business and as of December 2013, Samsung Heavy Industries has received orders for 1,054 units of ships from the world’s leading shippers, proving its technological excellence by delivering 942 units of ships.

In 2006 and 2007, the company delivered two units of the world’s largest offshore

is now taking place in many countries, including Australia, Mozambique and Tanzania.

In a statement, Samsung Heavy Industries said: “It is expected that more than 30 LNG carriers will be ordered annually, as LNG

platforms to Sakhalm Energy Investment Company and in 2008 and 2009, in Russia, it delivered a further two units for the world’s largest semi-submersible drilling facilities, in West Phoenix and Eminence, to Sea Drill, a

SAMSUNG HEAVY INDUSTRIES Norwegian shipper.

The company’s involvement with such large scale and global projects only assists in cementing its reputation as a global leader in the offshore industry.

Within the FPSO market too, Samsung Heavy Industries has gained a highly reputable position when, in 2008, it signed a contract with Shell to develop an LNG FPSO. A world first, it is a new-concept vessel that enables the production, liquefaction and storage of LNG. Measuring 488m long, 74m wide and 100m high, it weighs 200,000 tons in terms of dead load. After completing production at one spot, the LNG FPSO can then be moved to other gas fields.

In 2012, Samsung Heavy Industries received an EPC contract from Inpex for

“Samsung Heavy Industries is striving to continuously develop advanced manufacturing technologies that will meet the increasingly changing ship technologies, especially with the complex advancements in ship model shapes”

the world’s largest Central Processing Facility at the Ichthys LNG Project, located in the Browse Basin Field off the coast of Australia.

INTRODUCING INNOVATIVE TECHNOLOGY The company’s research department is vital to its reputation and since its activities began in 1984, it has divided into two groups to help strengthen its capabilities with a performance technology group and a production technology group, ensuring the highest levels of both quality and efficiency are practised. This institute continues to play a leading role in developing key technologies for higher value-added ships and offshore facilities for

minox.no

COMPACT AND CHEMICAL FREE DEOXYGENATION OF WATER Minox Technology is a specialized process technology company delivering compact and lightweight deaeration systems to the oil and gas industry.

Without use of chemicals – we remove oxygen from water prior to injection into oil producing reservoirs – a green technology, offered only by Minox.

PAGE 63

global customers. Two of these innovative technological products include the Towing Tank and Cavitation Tunnel.

One of the world’s largest commercial towing tanks, helping in the development of new ships and performance improvements can be found at the Samsung Ship Model Basin (SSMB).

The tank, measuring 400m in length, 7m deep and 14m wide, contains a wave maker with 40 independent plungers, ready to stimulate the conditions an ocean vessel frequently operates in.

Additionally it has a sub-carriage connected by the main carriages for large amplitude circular motion testing.

To date, there has been a variety of model testing carried out in the towing tank including; propeller open water, manoeuvring, flow visualization,

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“It is expected that more than 30 LNG carriers will be ordered annually, as LNG exports are expanding to the US, Australia, and East Africa. As we have the number one market share in the LNG carrier market, we will benefit from these orders”

self-propulsion and local flow measurement. The SSMB tank has also carried out model tests of more than 300 vessels with appendages and conventional and special propulsion systems to further improve performance.

In 1996, Samsung Heavy Industries developed a large low-noise cavitation tunnel using its own technology which was placed in the SSMB as one of the world’s largest commercial cavitation tunnel.

The tunnel has two varying test sections, the first section, No. 1, is 6m in length and 1.2m wide which enables high-speed model tests through generating the tunnel flow speed up to 28 meters per second.

The second section, No. 2, measures 12m in length, 3m wide and 1.4m in depth that can accommodate the maximum of

SAMSUNG HEAVY INDUSTRIES

10m length entire model ship and an impeller facilitates the circulation of 650 tons of water inside the tunnel at a speed of 12 meters per second.

Now with world class status, the cavitation tunnel allows both a cost effective and accurate prediction of cavitation performance including the cavitation extent, inception speed, rudder cavitation and propeller induced hull pressure fluctuation with a full size model ship which simulates the most reliable wake field.

The use of these valuable tools

water tank testing technology and performs model tests on more than 400 propellers. This includes the recent research field of the underwater noise of surface combat vessels or submarines.

To guarantee these model tests give an accurate representation, the precision of both the ship and propeller model manufacturing must be accurate. Samsung Heavy Industries achieve this with the development of a model ship measuring 10m in length and a model propeller which measures up to 0.3m is diameter. These can be manufactured utilising

technologies that will meet the increasingly changing ship technologies, especially with the complex advancements in ship model shapes. It is this attention to detail and innovative thinking which places the company at the forefront of the shipbuilding industry.

Looking to the future and Samsung Heavy Industries are still aiming to be the best by creating a new chapter in the history of global shipbuilding and offshore structure building industries with new and exciting innovative technological advancements and providing the

for flow field measurement and visualization help to both improve and allow sophisticated research regarding flow field around vehicles with more complex arrangements.

Samsung’s Cavitation Tunnel continues to acquire world-class

a high-precision 10-axis CNC machine that consists of two 5-axis manufacturing heads and a 5-axis CNC machine working in full automation.

Samsung Heavy Industries is striving to continuously develop advanced manufacturing

industry with world firsts such as the floating dock and delivering the largest LNG FPSO. Staying ahead in such a competitive industry proves the longevity of this company and an unmatched reputation that will be sure to last for many years to come PAGE 65

The integrated edge Editorial: Harriet Pattison

A subsidiary of KONGSBERG, the Oil & Gas Technologies sector is optimising oil and gas operations by providing an integrated and performance led approach.

As exploration looks set to go into deeper and harsher environments, Kongsberg Oil & Gas Technologies provides solutions that combine subsea products, decision support, engineering services and innovative technologies to ensure HSE standards are met and efficiency and performance is maintained.

Conditions in the offshore industry are inevitably becoming more challenging as the market begins to move to

and subsea infrastructures, helping to cover the overall lifecycle of oilfields and enhancing performance in a

Kongsberg Oil & Gas Technologies has developed is the Subsea Storage Unit (SSU). Designed specifically for oil

harsher, deeper, colder and more remote areas. To help combat the unavoidable issues that will arise in moving to these isolated environments, Kongsberg Oil & Gas Technologies, a leading company in the field, offers a range of software solutions, services

number of ways.

A subsidiary of KONGSBERG, the international and knowledge-based group that supplies high-technology systems and solutions to customers in the oil and gas industry, one of the key innovative and noteworthy solutions

storage on the sea bed, it introduces a new and exciting concept of a ‘flexible bag’ protected by a dome.

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THE SUBSEA STORAGE UNIT Offering a flexible, safe and efficient

KONGSBERG OIL & GAS TECHNOLOGIES solution, the SSU will help to develop sub-sea fields in extreme weather conditions, especially as the industry looks more towards these much harsher and more remote conditions of the Arctic.

With a collapsible bag for safe storage of the oil and a dome to protect the bag, the double layer will eliminate contact between the oil and seawater, helping to prevent the formation of an emulsion layer.

If the first barrier, the flexible bag, should start to leak, the integrated leak detection system will detect it and alert the operator of the problem.

The second barrier, the dome, is capable of containing all oil inside the SSU, again helping to prevent any leaks into the sea.

The leaked oil can then be safely extracted either to a sister SSU or discharged to a shuttle tanker on the surface and the flexible bag can be replaced through the removable hatch on top of the Subsea Storage Unit.

Innovatively designed, the SSU has openings at the base of the dome where seawater is able to flow in and equalize the pressure during filling and discharging of the storage unit, meaning the unit can be placed in any water depth.

Depending on the type of soil, the SSU is designed to be stable on the seabed using weight piles and once the bag is filled to its capacity, the oil can then be transported to a tanker through a standard flowline and offloading system.

It is the flexibility of the SSU which makes it such an innovative and attractive product. Its size can be adjusted depending on the needs and requirements of the development and can be applied during both well testing and early production start-up with the flexibility to add on storage capacity.

If the production rate starts to increase, multiple SSUs and additional structures can be incorporated during

the lifetime of a production system.

The SSU is currently in the process of being qualified with valued support from Statoil, Lundin, Det Norske and the Norwegian Research Council.

© KONGSBERG

In October this year, Kongsberg Oil & Gas Technologies signed a $2.2 million software contract with Petronas Carigali, the exploration and production subsidiary of PETRONAS, National Oil Company of Malaysia, to deliver class-leading SiteCom® realtime drilling operations software and services.

multiple sources to compile information into an intuitive web interface, SiteCom® Discovery™. SmartAgent software tools provided through the SiteCom® tool box can then run real-time calculations on the data to provide additional information, helping to make important decisions.

Initially, the contract will run for a period of four years with the option to extend for an additional year.

VP Sales and Marketing, Ben Lovell explained in a statement: “We have been working on this opportunity with our local partner CEKAP for the past four years, demonstrating to

The SiteCom® software makes it easier to understand collected data and allows distributed teams to make important decisions collaboratively in real-time drilling monitoring. It also enables data capture, viewing and analysis by collecting data from

PETRONAS the importance of using an independent provider for their realtime solution and of being able to take control of their drilling operations. With the SiteCom® installation, PETRONAS will be able to monitor their key performance indicators and make use

THE INDEPENDENT PROVIDER

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© KONGSBERG

of their previous drilling experience to plan new wells. This will enable them to start realising significant value from the real-time data that they are collecting. This is extremely important to their infrastructure for the future and a huge win for KONGSBERG.” SiteCom® gives a clear view of current drilling activity together with scroll-back historical data, cross-plotting trend analysis, and correlated geological input that can help to achieve a number of solutions including; extended bit lives, reduced risk and non-productive time (NPT), maximised drilling targets and improved hole conditions and wellbore quality.

Within the SiteCom® Discovery dashboards, SiteCom® provides a set

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“In addition to our well known technical expertise within flexible riser technology, we are pleased to see that Statoil also recognises KONGSBERG’s operational experience and knowledge obtained through several projects both for Statoil and other major operators”

of common workflows and displays key performance indicators which helps to improve consistency and efficiency for all the personnel. It also provides the necessary infrastructure to interface with third-party tools making it a truly independent solution as it allows everyone involved to see the same data at the same time either at their desk or while they are on the move.

DELIVERING RIM SERVICES Earlier this year, the company signed a contract with Statoil to deliver Flexible Riser Integrity Management (RIM) services to the Peregrino Field in Brazil. A four year Framework Agreement, the main basis of the contract relates to annulus testing,

KONGSBERG OIL & GAS TECHNOLOGIES inspection, integrity assessment and a follow up of the flexible risers, including technical support. Additionally, a yearly assessment of the flexible riser system integrity will be provided.

In 2012, a similar arrangement was granted when KONGSBERG was awarded a Frame Agreement with Statoil Petroleum AS to provide RIM services to eight of its floating installations on the Norwegian Continental Shelf. KONGSBERG has also been working closely with numerous other operators including ExxonMobil, Total, Talisman and Chevron on both challenges and tasks related to RIM services.

Department Manager Riser Engineering at Kongsberg Oil & Gas Technologies, Torgrim Andersen explained in a statement: “In addition to our well known technical expertise within flexible riser technology, we are pleased to see that Statoil also recognises KONGSBERG’s operational experience and knowledge obtained through several projects both for Statoil and other major operators.”

“Our commitment to deliver RIM services to the same high standards as we do in Norway is imperative to this agreement, especially since this is one of the two first fully Statoil operated fields outside the NCS,” states Serge Brun, General Manager of Kongsberg Oil & Gas Technologies do Brasil.

effective asset management.

Rig Manager® also helps to provide a single standardised system for data input, analysis and reporting and is able to control a wide range of drilling and rig-related assets and activities including daily drilling, marine operations, anchor management and personnel logistics.

With offshore conditions becoming increasingly challenging as exploration missions go deeper, Kongsberg Oil & Gas Technologies continues to develop solutions to increase efficiency for operators

venturing into these more remote environments.

It is this software, these services and innovative subsea products in one integrated solution which is setting KONGSBERG apart from its competitors, placing it on an industry pedestal as it continues to help, provide and deliver to some of the biggest name players in the industry. As it continues to introduce technology and products which help to ensure challenging offshore projects remain efficient and lucrative, its position in the industry will no doubt continue to grow

Fabrication, Engineering, Design & Project Management Excellence in the Oil & Gas Marketplace

INNOVATIVE SOLUTIONS Since its inception, Kongsberg Oil & Gas Technologies has designed and developed numerous innovative products for the offshore industry, including Rig Manager® which helps to improve both the overall control and efficiency of daily operations and the management of drilling vessels.

Providing a unique and integrated rig management software solution, it helps to meet the challenges in managing offshore installations whilst delivering operational efficiencies and

Fabrication of bespoke Subsea Structures and Hardware Design and Fabrication of Mid Water Arch systems Multi-discipline Topside Construction Design and Build of bespoke Decommissioning and Vessel Equipment Site Support Services - Marine & Offshore +44 (0) 1642 546611 | www.wiltonengineering.co.uk info@wiltonengineering.co.uk | Port Clarence Offshore Base | Port Clarence Road | Middlesbrough | TS2 1RZ

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A quality focus in Indonesia Editorial: Roland Douglas

As the offshore industry in Indonesia continues to grow, the country’s shipyards are coming under increased pressure to keep up with demand for quality products that are built to increasingly high standards. General Manager of one of the country’s leading shipyards, PT AnggrekHitam, tells Total World Energy that the yard is currently busy with the construction of two product oil carriers and hopes to build small LNG tankers in the future…

The Indonesian offshore and marine industry is looking extremely healthy right now. There

the Asia-Pacific region.

The Indonesian National Shipowners Association (INSA)

and more than 500 supporting industries for this sector. INSA chairwoman Carmelita Hartoto

are a number of projects going up in the region, and Singapore, Malaysia and Australia are all home to major oil and gas projects that are forcing more and more attention to be focussed on offshore and marine engineering in

says that Indonesia will see around 20 percent growth in the shipping industry, on the back of the country’s healthy economic performance. INSA’s stats show that currently there are more than 70 shipyards located in Batam

said in 2013 that most local players, especially those involved in coal and offshore oil and gas, would add more vessels to expand their business. The additional 560 ships, including tug boats, bulk carriers, platform service

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PT ANGGREKHITAM vessels diving service vessels and tankers, increased the number of Indonesian flagged ships to 12,600 in 2013.

And as well as the organic development of South East Asia’s offshore industry, regional governments are also looking to encourage development through investment. The Indonesian Ministry of Industry has prepared a road map for Indonesia’s shipbuilding industry development in 2012-2025. The industry is also expected to produce and repair all types of vessels from small to large. One aim, hoped to be achieved by 2020, is for the national shipbuilding industry cluster to be able to produce vessels with a capacity of 200,000 tons deadweight. The government will improve ship design and engineering capabilities through the development of the Center National Ship Design and Engineering (PDRKN).

And all of this growth and development will comes as great news to those already established organisations in the Indonesian shipbuilding and offshore industry; organisations like PT AnggrekHitam.

Founded in 2008, PT AnggrekHitam is based in Batam and is set up for a production output of maximum up to 25,000 tons of steel per year and its infrastructures have been calibrated and approved by GL for the construction of self-propelled Deck Carriers up to 25,000

BUILDING OIL & GAS PT AnggrekHitam Shipyard’s General Manager, Oscar Tambun ST (B Degree in Marine Engineering I.Eng, IMarEng,MIMarEST, MSNAME) recently spoke to Total World Energy and explained more about the company’s growth in the offshore sector, with two large orders set for completion in early third quarter of 2015, and how the business is always focussed on quality.

“The ships we are currently working on are owned by Pertamina, the Indonesian state-owned oil and natural gas company. They awarded us two contracts both for 17,500 dwt ships, 157m LOA. We are hoping to launch in May and deliver in August 2015.

“We have finished most of the cargo tanks and much of the fittings are already in so we are about to come to the final stage for the block; final welding inspection,

airtests and tank coating. The fore and aft block and the engine room block will be joined and completed by the middle of March.

“These vessels will be used by Pertamina for import or export of oil in and out of Indonesia and will not be used only in Indonesian waters,” he says.

One thing that is for sure, when you use this yard for ship construction, you will receive quality service. Its engineers and employees have many years’ experience in the industry between them, and as many ship structures are similar, the small differences are easily implemented to meet the needs of the customer.

“The shipyard itself is considerably new but the team that are building the tankers are extremely experienced from previous work that they completed before joining our yard. Building a ship is building a ship; nothing is too different, maybe the cargo pumps and a

tons deadweight and floating cranes. The Yard obtained ISO 9001:2008 in March 2014, certified by RINA, and reached two million man-hours without LTI by end of August 2014.

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couple of other details are different but the main structure is the same,” says Tambun.

Demonstrating the yards versatility, in June a fertiliser vessel was completed and Tambun says that although this had similarities to oil carrying vessels, the cargo hatch and crane were different.

“In terms of the tonnage, it’s quite similar, the steel weight is the same.

The length of the ship was slightly shorter but the weight was the same and the engine room was similar with all similar systems. The difference is a fertiliser carrier has a crane and a different cargo hatch. You have to test the hatch and the crane but in principal the vessels are similar.”

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INDONESIAN SUCCESS

“The next target is to build small/ mini LNG tankers, up to 12,000m3”

To date, PT AnggrekHitam has enjoyed a strong demand for its services from local customers but in the future, the company will look to also market its services to international clients.

“So far, all that we have completed has been for Indonesian customers but we are extending our product range, we have completed one of 63m AHTS for local operator in 2012 and trying to gain more work with offshore vessels like anchor handling tug supply vessels (AHTSV) and we are currently entertaining a few more enquiries.

“A lot of the local and South East Asia anchor handler and offshore

PT ANGGREKHITAM support vessel operators/organisations are approaching us, asking to use our facilities and wondering whether we can build for them. Decisions are not on our capabilities; it’s more to do with commercial issues; the price arrangement is the driver behind any decision,” says Tambun.

One issue that has been facing the global offshore shipbuilding industry in the last few years is the rise of Chinese shipyards who provide an ever growing level of skill and extremely competitive prices. But this is not too much of a problem for AnggrekHitam. Tambun explains that there are still challenges when dealing with Chinese yards and Indonesian yards can definitely offer the quality offered by the Chinese for a similar price.

“China has different kinds of shipyard. You can gain high-quality, European standard work or much lower, substandard work. Then there is the language barrier and the cultural differences which make negotiations more challenging.

“Here, we can provide quality equally as high as the Singapore standard, sometimes higher. I’m sure that we can reach the level of quality offered by China for a similar price; before I joined this shipyard I built ships in China and Singapore and in terms of quality, the finishing was not always there.

The price is good but you often have to add one or two million extra in order to make the ship work well. If you look at the total financial cost of the ship, you also have to look at the associated costs such as transportation. If you build your ship in China and

not cheap when you add in all the components.

“Owners should not only consider the value of a ship’s contract; you need to consider where the operating area is, how you will train the crew and how much downtime you need to get the ship operating exactly to your requirements,” he says.

EXPERIENCED LEADERSHIP Tambun’s ambitions for PT AnggrekHitam to move into the upper echelons of the Indonesian offshore shipbuilding market are admirable and his experiences and expertise stand

him, and the company, in great stead as growth is sought after.

“I am a Marine Engineering graduate and started working in shipyards in 1996. I eventually became a project manager and worked in a few different shipyards and then I became the assistant project manager building the first DP3 Diving and Offshore Support Vessel in South East Asia in 2002.

That ship, MV Azteca, is now working in Mexico. Then I moved to ABS as Newbuilding Surveyor followed by Riverside Marine in Australia before I moved to this shipyard eight months ago. During my service in Australia, the owners of the company asked

it is then operating in South East Asia, that’s probably another $400-800,000 extra depending of the size of the vessel for the seven-14 days steaming to get to your location. Sometimes things seem cheap but they’re

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me to build two ships for them and I completed these projects in Singapore and these were the two best tugs in Australia. There was no downtime, they went straight from the shipyard to the operational area in the North West Australia for Woodside Pluto LNG Terminal, Dampier. There was only two weeks implementation because we had gone through the OVID-OCIMF audit, AMSA audit and all the other audits; and once we trained the crew, the tugs worked in Harbour LNG

“A lot of the local and South East Asia anchor handler and offshore support vessel operators/ organisations are approaching us, asking to use our facilities and wondering whether we can build for them” Terminal without any major problems.

We monitored those ships for quality and we looked at any defects. There were less than ten warranty defects, which is not major, and this is the sort of quality we are looking for in our yard here in Indonesia.

“I have always thought ‘if I can build these ships in Singapore, why can I not build them in this yard as well?’ so hopefully my experience will bring a certain standard to this yard,” he says.

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PT ANGGREKHITAM And high standards and a quality focus go without saying for a man with Tambun’s experience. Quality standards will continue to be improved in Indonesia, and while the government continues to invest in the maritime and offshore industry, the country is also looking to build ties with the shipping industry in other countries, and Tambun hopes that this will bring much-needed repeat orders.

“In Indonesia, the challenge is quality. We need to ensure close supervision and we need to understand what quality the customer needs. Once we set the value and have an understanding of what is required, we can then produce the right way and monitor correctly. It is also important to build a middle management with strong knowledge and to achieve this we need repeat orders. We will go through a learning curve on vessel one and I will then guarantee that vessel two will be one of the best ships around.”

In the future, PT AnggrekHitam’s focus is definitely on the energy

business and the offshore market and, using its experience of building oil tankers, the company hopes to become the first shipyard in Indonesia to build a small LNG carrier.

“We have not yet built a jackup but we are certainly looking to get into new markets,” enthuses Tambun. “The next target is to build small or mini LNG tankers, up to 12,000m3 with a type C tank. We are ready, we have materials suppliers in place, tank designers ready and now we just need to get the customers.

Indonesia will be moving away from oil and towards gas in the next ten years so customers will be available.

The challenge is that we will need ports to be built with liquefaction and regasification facilities.

“This is a challenge for the government during the movement from oil to gas and when this begins I’m sure we will have many orders for our products. We would like to become the first yard in Indonesia or South East Asia to build small LNG tankers,” he concludes

PT Anggrek Hitam’s facilities include: • Four building berths • Large fabrication area • Integrated workshops • CNC Plasma cutting machine • Auto-blasting workshop • Shop priming workshop • Steel storage warehouse • Bending machine • 2 units of 100 Ton mobile cranes • 2 units of 70 Ton mobile cranes • 1 unit of 40 Ton mobile crane • 1 unit of 7 Ton lorry crane • 1 unit of 5 Ton wheel loader • 1 unit of 3 Ton wheel loader • 1 unit of 3 Ton forklift • 2 units of 3 ton over head cranes • 2 units of 10 Ton over head cranes • Stick Welding machines • Automatic welding machines • Automatic cutting machines • MIG welding machines • TIG welding machines • 2 units of flashing modules

PAGE 75

Providing a solution to Jordan’s water shortages Editorial: Harriet Pattison

Ranked amongst the top three most water-scarce countries in the world, Jordan has been in talks for decades to come up with a solution to neutralise this deficit. With record dry rainy seasons in recent years and the arrival of around two million Syrian refugees, Total World Energy speaks to the Water Authority of Jordan’s Secretary General, HE Eng. Tawfiq Al-Habashneh, to discuss the proposed Red-Dead Sea Project which is hoping to increase Jordan’s resources by 2018.

Since 1983, the Water Authority of Jordan (WAJ), is responsible for the development and protection of the country’s water sources, sewage services and the provision of water to ensure the requirements of its residents are met.

Coupled with one of the driest rainy seasons in recent decades and with the influx of refugees from Syria, now at an estimated two million, Jordan is classified

With the ongoing water shortages that the country is facing, Total World Energy speaks to Secretary General, HE Eng. Tawfiq Al-Habashneh to discuss what the Water Authority of Jordan is planning to help the country and its population, and how future projects will help combat these water scarcities for the next generation.

Joining the Authority from its inception, Mr Al-Habashneh

responsible for planning and finance. Secondly, the Water Authority of Jordan which covers all the water and wastewater aspects; and the third entity, the Jordan Authority, is responsible for Jordan in terms of water distribution at the Jordan Valley and dams.”

A quick and effective solution is needed to help the water deficit affecting the northern and central parts of Jordan over the

as the 4th poorest country in terms of water shortage where the annual share per capita is around 145m3 per year compared to international poverty line which come up to 1000 M3 per year.

explains: “Our mandate is to manage and regulate the water works within the Kingdom. The structure of the Water Authority consists of three entities: Firstly, the Ministry of Water and Irrigation (MWI) which is

coming years.

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THE DEEP WELLS PILOT PROJECT WAJ started a new pilot project to obtain water from the low levels where, from next year, WAJ

WATER AUTHORITY OF JORDAN will begin construction on the Augmentation of Water Supply for Central and Northern Jordan from the Deep Aquifer (Sheediyya –Al Hasa).

THE RED-DEAD SEA PROJECT In August 2013, the Jordanian government announced that it would move ahead with the first phase of the project with the Memorandum of Understanding (MoU) signed last December between Jordan, the Palestinian Authority and Israel.

The Red-Dead Sea Project will be implemented by mid-2018 and will help to provide potable water to Jordan, Israel and the Palestinian Authority. Additionally, it will generate electricity to support the energy needs of the project and will help to stabilise the Dead Sea water level.

“The Red Sea proje c t i s a h u g e project so we h a ve tri ed t o divide it bec a u se i t ’s

so c ost l y, ” e xpl a in s M r AlHa ba sh n e h . “If w e d id it in on e st a ge i t w ould c o s t m o re t h a n U S $10 bi l l io n s o w e di vi de d i t . Th e fir s t s t a g e is t h e de sa l i n a t i on of t h e w a t e r f ro m t h e Re d S e a a n d w e h o p e t o ge t a rou n d 100 m illio n c u b ic m e t e rs ( m c m ) f ro m t h is . ” The Red Sea Dead Sea Water Conveyor (RSDSWC) plan involves the development of a desalination plant at the Aqaba port in Jordan which will refine between 80 - 100 mcm annually and will be shared between the participating countries; Jordan, Israel and the Palestinian Authority.

The aim of the plant is to produce up to 100 mcm per year for Jordan. In a statement, the Project Manager for the RedDead Sea programme at the Ministry, Nabeel Zoubi explained: “W ith this, we will have solved Jordan’s problems at least for the next 20 years.”

OVERCOMING CHALLENGES Of course, as with so many large-scale projects, there are challenges to be faced.

The overall cost, at an estimated US$10 billion, is raising questions; as are the environmental impacts involved in delivering brine into the Dead Sea through a 180km pipeline.

There are further concerns that the project will be located along the Rift Valley which remains seismically active.

However, the Red-Dead Sea Project looks set to be the only suitable solution that will bring the Kingdom and surrounding regions fresh, clean water.

Importantly and although controversial, the use of brine will help to assist in the revival of the Dead Seawith statistics highlighting its surface area is shrinking by an estimated 30% in the last 20 years alone.

“The service of the dead sea decreases yearly by about one

Secretary General, HE Eng. Tawfiq Al-Habashneh

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meter so for the environment, it’s a big challenge for us in how we can treat it,” explains Mr AlHabashneh.

More than the challenges of the project itself, Mr Al-Habashneh explains the challenges that face the WAJ if the project does not go ahead as planned: “The big challenge for us is the huge amount of refugees,” he explains.

“We now have around 1.5 million Syrian refugees in Jordan, these get around 21% of our drinking water, the whole amount for production from the water for the drinking water so this is a big challenge for the country.

Also, the annual growth is at an all-time high at 2.7%, so we have to think about the future and the water needed to serve our citizens.

“Another challenge we face at WAJ is finance,” Mr AlHabashneh says. “We have limited resources, so it is difficult to finance the project. Jordan is classified as the third poorest country for water shortage. Our annual capital is around 100 cubic meter which is below

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the average of around 1000 cubic meter. But with good management at the WAJ we deal with that and we get a sufficient level for drinking water and for other purposes.”

To understand just where the water is being used and why Jordan is amongst the top countries struggling for clean and safe drinking water, it is

“We have 27 treatment plants all over the country and we treat around 120 mcm a year” estimated the Zaatari Camp in Jordan, home to over 92,000 Syrian refugees, uses more than one million litres of water every single day.

It’s no wonder then the Water

Ministry issued a report earlier this year detailing the concern over drinking water supplies over the summer months and noting that Jordan only received 31.3% of its annual precipitation over winter which left dams at just 43% of their capacity. Jordan now has an annual per capita supply of 145 cubic metre, which has decreased dramatically from 360 cubic metres recorded in 1946.

WATER RE-USE PROGRAM In addition to the proposed project, Mr Al-Habashneh explains the WAJ is responsible for the treatment of waste water: “We have 27 treatment plants all over the country and we treat around 120 mcm a year.”

But explains that overpopulation is also challenging the WAJ with its dependence on ground water: “80% of our drinking water comes from wells from the ground water and the remaining 20% comes from surface water which is from the Jordan Valley.”

According to the Government of Jordan’s 2010-2022 Water Strategy, ground water currently makes up

WATER AUTHORITY OF JORDAN

“XXXXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXX”

54% of total supply but remains challenged due to the inevitable population growth, agricultural expansion and the ground water sources, located across Jordan, which continue to be overexploited.

Access to surface water is also limited due to transboundary agreements between the neighbouring countries.

Looking to the future and Mr AlHabashneh explains the Red-Dead Sea Project remains the best solution for these drastic and dangerously low water shortages in Jordan.

“We have to look at the RedDead Sea project in a general way for the regions that will be involved: Jordan, Israel and the Palestine authority. With the amount of water it will create over time, this will be distributed around the three countries.

“We have good general experience that we have built up since 1983 on how to deal with the shortage of water. By managing all these issues, we have done a good job and if we make these projects work, I think we will be in good shape, certainly until 2025,” concludes Mr Al-Habashneh

“SERVING THE NATURAL RESOURCES INDUSTRY” 240 Mecca Street, P.O. Box 1872 11118 Amman, Jordan Tel: +962-6-5861314 Fax: +962-6-5861315

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PAGE 79

A comfortable bed at sea?

Editorial: Rosie DeWinter

As the wind farm market continues to grow, there has been an increasing demand for comfortable and convenient offshore accommodation. With construction processes often taking years to complete, it makes economic sense for companies to house personnel onsite rather than transporting them from the shore every day. With global companies including Prosafe and Chevalier Floatels creating and developing more luxurious offshore accommodation units for personnel, perhaps it won’t be long until we see the equivalent of a floating five-star hotel on the high seas‌ As the demand for offshore energy resources continues to grow,

been receiving a makeover in recent years, especially with the growing

to house them offshore rather than transporting back and forth between

exploration into greater depths and harsher environments means longer construction time-frames and more demanding working conditions.

Accommodation vessels for the industry, while not quite luxury floating hotels just yet, have certainly

demand for offshore wind energy.

Construction processes for offshore wind farm developments can often take up to five years to complete and with a large team of construction workers and personnel, it seems more economically viable

land and sea throughout the lengthy production process.

Accommodation vessels have been developed for heavily-manned operations or when additional accommodation is needed. Many of the existing offshore accommodation

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OFFSHORE LIVING

units have been built from old converted vessels so they have a large surface area with potential for individual cabins and added amenities.

While many oil and gas construction workers are accommodated in offshore rigs, it is the wind farm workers that companies are now looking to house during large offshore projects. More landlubbers than sea dwellers, new vessel designs aimed at the wind energy market are looking to include more home comforts and leisure facilities.

With an estimated 20 accommodation rigs currently operating worldwide, half of these have been deployed in the North Sea while more than half are owned by the world’s leading owner and operator of accommodation vessels, Prosafe.

Operating on a global scale with a team of 610 employees, Prosafe announced its profits for 2013 reached US$245.1 million with a healthy net profit of US$199.1 million.

Working in the maintenance and modification of installations on fields, hook-up and commissioning of new fields and decommissioning, Prosafe currently owns and operates 11 semi-submersible accommodation

vessels.

It also has two NORSOK harsh environment vessels which are currently under construction and will be ready to be deployed next year and a further two semi-submersible vessels to be ready in 2016 for worldwide operations.

With an accommodation capacity between 306-812 people, Prosafe ensure each vessel offers high quality welfare and catering facilities, storage, workshops, offices, medical services, deck cranes and lifesaving and firefighting equipment. Positioned alongside the host installation, the vessels are conveniently connected by a telescopic gangway so all personnel are able to walk to work.

With a versatile fleet, Prosafe is able to operate in any environment and maintains its status as the leader in the provision of offshore accommodation vessels in harsh and semi-harsh environments and also in hurricane regions such as the Gulf of Mexico.

Climbing the increasingly competitive ladder of providing offshore accommodation to the energy industry and with a vision to own and operate the most modern, safe and reliable floatel fleet in the world, Floatel International of Sweden currently have three accommodation vessels in operation with a further three under construction.

Completed in March 2010 at Keppel FELS shipyard in Singapore, the Floatel Superior has been specifically designed for some of the most demanding regulatory requirements and harshest environmental conditions in the North Sea. On completion, it was signed with ConocoPhillips Australia for accommodation servicers for the Bayu Undan Shut Down Program.

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Accommodating between 440-512 people, the Floatel Superior includes 50 office work stations and two large cranes, both weighing in at 50 tonnes each, to transfer goods and materials to the installation and has been contracted with Statoil in North Sea operations.

The second vessel, Floatel Reliance, is designed for medium harsh environments and was contracted for Petrobras in February 2011, operating off the coast of Brazil for five years.

Floatel International’s third vessel in operation, the Floatel Victory, commenced its maiden charter for Chevron in the US Gulf of Mexico at the beginning of this year. Built at Keppel FELS Shipyard in Singapore, the vessel has DP3 positioning, a 10-point chain mooring system and accommodations to fit 500 personnel.

“What Keppel has built for us previously has been well received by the market and both units are now operating successfully,” Peter Jacobsson, CEO at Floatel, said in a statement. “We continue

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“What Keppel has built for us previously has been well received by the market and both units are now operating successfully. We continue to see strong demand for such highly capable accommodation vessels, and we believe we are well positioned to strengthen our offerings in this market segment

to see strong demand for such highly capable accommodation vessels, and we believe we are well positioned to strengthen our offerings in this market segment.”

In addition to the three operating vessels, Floatel currently has two under construction after placing an order with Keppel FELS for a fourth and fifth semi-submersible accommodation vessel, due for delivery next year.

Also in the market, Netherlands based company, Chevalier Floatels, has ten years of experience in the floatels industry, owning and operating two DP accommodation and walk to work vessels, the DP Gezina and DP Galyna, both for offshore support.

The DP Gezina, a construction support vessel for the offshore wind and oil and gas industry, can accommodate between 60 to 90 personnel and has a Heave Compensated Gangway Animation, providing easy access to the installation. It has recently completed its contract with Saipem, providing

OFFSHORE LIVING

optimal comfort to the 40 technicians on site and helping to support the installation work related to topside hook up and modification at the Burullus Simian Control Platform which is located 65 km offshore Egypt.

The DP Galyna is another of Chevalier Floatel’s high spec support units and just like its sister vessel, it has excellent DP capabilities, a heave compensated crane and ample deck space for stores, allowing for much greater mobility in the field. The DP Galyna also provides facilities for multibeam operations and other support activities.

With a capacity to accommodate 60 personnel with a crew of 16, the DP Galyna boasts a truly luxurious interior, unlike many accommodation vessels available in the industry, it offers a wide

future personnel on board the DP Galyna further by paying particular attention to the vessel movement during the conversion.

It was recently contracted by Forewind in the operation and maintenance work to its two meteorological masts on North Sea’s Dogger Bank which is located 150 km off the east coast of Yorkshire. The Ampelmann walk-to-work access system also benefitted the technicians working on site by allowing them to board the platforms of both masts in a timely, safe and efficient way.

New and innovatively designed offshore

accommodation vessels are helping to better promote the expanding wind farm market, offering a much more inviting and comfortable construction process for employees. While there may not yet be talks or designs featuring a relaxing sauna or 5* restaurant on board, with the rate the market is continuing to grow, the demand for convenient offshore dwellings will no doubt continue to rise too

range of amenities, including a fitness area, hospital, restaurant, laundry, lounge and smoking lounge, helping to ensure maximum comfort during offshore operations.

Additionally, Chevalier Floatels has increased the comfort of PAGE 83

ŠTesla Motors

Clean, fast, safe, cheap – Could the Hyperloop change transport for the better?

Editorial: Christian Jordan

In 2013, clean tech guru Elon Musk outlined his alternative to the LA-San Francisco high speed rail link; the innovative Hyperloop system. Like some of the solar based transport systems we have feature in past issues, could this be the clean answer to medium distance, high-speed travel?

Energy is probably the most important factor in transportation and as we move into a future where the concern

In recent editions, we have looked at solar powered airplanes, solar powered boats, motor cycles charged

Motors and SpaceX released a paper detailing his innovative plans for a highspeed train link between Los Angeles

is about preserving our precious natural resources and delicate environment where possible, one of the drivers in the transport industry is how we can use of clean, renewable energy to power the movement of people and goods around the world.

with solar power, cars using electric or hybrid motors and this month we look at the a revolutionary solution to public transportation that has been proposed by one of the world’s most prominent clean energy pioneers.

In 2013, Elon Musk, CEO of Tesla

and San Francisco. This link has been in the pipeline for some time and current plans suggest a typical train system which would complete the 380 mile journey in just under three hours, travelling at around 200mph. But this was not impressive enough for Musk,

PAGE 84

FUTURE POWER in fact he was disappointed with the proposal which is set for completion in 2029, saying: “When the California ‘high speed’ rail was approved, I was quite disappointed… How could it be that the home of Silicon Valley and the Jet Propulsion Laboratory – doing incredible things like indexing all the world’s knowledge and putting rovers on Mars – would build a bullet train that is both one of the most expensive per mile and one of the slowest in the world?”

And he went on to detail his proposal – the Hyperloop – a high speed ‘pod in tube system’ where, in theory, passengers would get into a capsule and be pushed through a raised tube by monster fans and air pressure systems, reaching speeds of more than 750mph; using no fossil fuels,

The Hyperloop – a high speed ‘pod in tube system’ where, in theory, passengers would get into a capsule and be pushed through a raised tube by monster fans and air pressure systems, reaching speeds of more than 750mph

just electricity from hundreds of solar panels that sit atop the long transit tubes, completing the journey in just 35 minutes. The solar panels, according to Musk, “can generate far in excess of the energy needed to operate. This takes into account storing enough energy in battery packs to operate at night and for periods of extended cloudy weather.”

But what do the critics say? Well, firstly there’s the problem of g-force.

When travelling at such speeds, the human body would be significantly impacted by g-forces when going round corners. Musk’s solution is simple – make the pipeline straight.

Secondly, there’s the safety concern. Having a long pipeline suspended on raised pillars would present problems. What happens if

©Tesla Motors

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©Tesla Motors

there’s an earthquake, hurricane or similar unpredictable disaster? Musk suggests using reinforced concrete for cost reasons and also “dampers will be incorporate between the pylons and tubes to isolate movements in the ground from the tube.”

Thirdly, there’s friction. How do you move capsules through a length of tube using nothing but air pressure without creating problems with friction? The Hyperloop proposal suggests using air cushions, much

exist so there would need to be much R&D done before anything could be realistically tendered. But Musk insists, with the correct investment and expertise, the Hyperloop could be viable in just seven to ten years, and could cost just a fraction of the $70billion currently expected for the rail link.

According to The Center on Globalization, Governance & Competitiveness (CGGC), an affiliate of the Social Science Research Institute

immense. Currently; cars, motor cycles, planes and trains all use considerably more energy per passenger than the Hyperloop proposal and conveniently for Musk, “the only system that comes close to matching the low energy requirements of Hyperloop is the fully electric Tesla Model S.” And while this is still a proposal, Musk’s paper has had many people, and many companies standing up ready to listen. Is a system like this really feasible,

like a puck on an air hockey table, to ensure the capsules glide with minimal friction concerns.

Lastly there’s the question of technology. Much of what Musk suggests is still theory based and some of the technology does not yet

at Duke University, transportation accounts for 30% of U.S. greenhouse gas emissions and 70% of the nation’s oil use. With the Hyperloop, this could be vastly reduced. Imagine a network of such systems around North America; the carbon emission savings would be

is it cost effective, is it safe, and perhaps most importantly, can it create energy efficient transport for the masses? It seems that in all cases the answer is yes; we just need a company to take up the idea and put it into practice

PAGE 86

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PAGE 87

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