TWE Issue 10

February 2015

more than business

www.totalworldenergy.com

Shipyard Success

We look at some of the busiest and most successful shipyards operating within the industry today, from the ice-free port of Ventspils in Latvia to INACE’s strip of coastline in Fortaleza, Brazil to Besiktas’ ship repair yard in Turkey and they all have three things in common: state-of-the-art facilities, innovative design technology and top level performance.

Oil States Skagit SMATCO LLC The Nautilus Marine Crane

E.ON GAS STORAGE GMBH 9.0 bcm and counting

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Belgian leader Professional expertise European certifications

Surface treatment on sites or in our workshop Anticorrosive coatings in electrical environment and on superstructures Anticorrosion and floor coatings for industries Floor-covering and house painting

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Top-flight Painters at your Service

In this month’s issue of Total World Energy we have been lucky enough to cover some of the great power generation companies helping to fuel a nation. Providing reliable, affordable and environmentally friendly electricity and doubling its customer base in just three years is Tanzania’s parastatal organisation, TANESCO. While the Electricity Authority of Cyprus demonstrates the power of determination and workmanship when tragedy strikes with the complete restoration of the Vasilikos Power Station after the blast at the Evangelos Florakis naval base in 2011.

We also speak with Dr. Peter Klingenberger, Managing Director at E.ON Gas Storage GmbH who explains the sheer volume potential of underground gas storage and we welcome one of the newest companies to the offshore industry, Blue Ocean Drilling, with its signing of an agreement for the construction of four Gusto MSC high specification jack-up rigs, due for delivery in 2016.

And as we start another exciting year here at ECP showcasing the latest industry innovations, outstanding entrepreneurs and highly reputable industry-leading companies, both large and small, we look forward to what the global energy sector has to offer in 2015.

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

Harriet Pattison editor@ecp-ltd.com

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

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

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

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

PAGE 3

Contents EDITOR’S PAGE

3

NEWS

6

Following a legacy

All that’s happening in the energy industry

EnTREPRENEUR

10

Innovation

12

TANESCO

14

Zwart Techniek

20

InterOil

24

PNG LNG

30

Electricity Authority of Cyprus

36

Blue Ocean Drilling

42

E.ON Gas Storage GmbH

48

Saipem

54

INACE

60

Monnaie

66

Specialist Services

70

Oil States Skagit SMATCO LLC

76

SPETCO

82

Equatoriale Services

86

Chemie-Tech

92

VNT

96

David Wilson: An oilfield at 20

‘Innovation of the Year, 2014’

Powering a Nation

‘We power your business’

Discovering Elk-Antelope

Putting PNG on the map

The successful restoration of Vasilikos

Calm blue seas ahead

Taking storage underground

The leader of the EPCI pack

Brazil’s shipbuilding family

At the height of specialist coatings

Harsh conditions, innovative solutions

The reliable crane experts

The complete service provider

Mooring the industry

The incredible Bulk Company

An industry leader in the Baltics

Besiktas

100

Scottish Development International

104

Future Power

108

A true Turkish Delight

Investment support for Scotland

The giant powered by electric motors

PAGE 4 MAR 14

CONTENTS

42

26

24

70

36

66 PAGE 5

# twenews Suzlon to develop 3000MW of clean energy projects in Gujarat over the next 5 years Suzlon Group, the world’s fifth largest wind turbine maker has expressed intent to develop clean energy projects in Gujarat of 3000 MW over the next five years.

Suzlon took up the challenge put forth by Shri Narendra Modi of establishing 2000 MW wind energy in Gujarat and till date has already installed 1800 MW thus accounting for 20% of Suzlon’s total pan-India capacity of over 8250 MW. The wind energy projects will attract investments with an aim to create sustainable economic growth for the state in addition to reinforcing the “Make in India” campaign initiated by the Indian Government.

As part of the ‘Make in India’ campaign, the project has the

PAGE 6

potential to create 6000 direct and 75,000 indirect jobs in the state.

Speaking on the occasion Suzlon Group Chairman Tulsi Tanti said, “Renewable energy is the key catalyst for the economic growth of our country. Wind energy will give a fillip to the manufacturing industry in the country. With the Central government’s goal of “Make in India”, Vibrant Gujarat is poised to attract investments and establish linkages across various the value chain participants. This will reinforce Gujarat’s position as India’s leading market in renewable energy and illustrate

the state’s commitment to power a low-carbon economy.

As the world is waking up and implementing measures to combat climate change, the contribution of wind energy in the energy architecture mix across the world has increased manifold. “Gujarat is ranked 1st in Economic Freedom of States in India (EFSI) and also has a market-friendly government policy framework with a pro-business mind-set. The state government’s initiative to scale up wind energy to ~10 GW is aimed at giving a fillip to local manufacturing and the Central government’s thrust on clean energy has opened up opportunities for the growth of the SME industries and sectors.

NEWS

Eversendai Offshore completes keel laying for self-propelled jack-ups

Eversendai Offshore RMC FZE, an Oil & Gas and marine fabrication company; specializing in onshore and offshore projects and wholly owned by Eversendai Corporation Berhad, has kicked off the New Year by announcing yet another milestone achievement with the keel laying for both units of GustoMSC NG2500X self-propelled jack-ups, known as liftboats, awarded

by Vahana Offshore (S) Pte Ltd in 2014.

Keel laying signifies the formal recognition of the start of the vessels’ construction even though fabrication of the modules may have commenced months before. The vessels are largely built in a series of pre-fabricated, complete hull sections rather than being built around a single keel.

waterfront yard facility in RAK Maritime City, Ras Al Khaimah, United Arab Emirates, which spans across a land measuring approximately 200,000 square metres with 550 metres of quayside. The ceremony marks the second major milestone for the 2 new-build selfpropelled jack-ups; respectively named ‘Aryan’ and ‘Arjun’ and scheduled to be delivered in 2016 after the premier steel-cutting ceremony in October 2014. Senior Management from Eversendai Offshore as well as the classification society, DNV-GL were present to witness the keel laying of both jack-ups.

The GustoMSC NG-2500X selfpropelled jack-ups will each consist of a rectangular hull and four 95 metre

(DP-2) system, accommodation for a minimum of 150 personnel and is propelled by its own thrusters to a speed of 5 knots.

Eversendai Group’s Executive Chairman and Group Managing Director, Tan Sri A K Nathan said: “We are pleased to note our progress in executing this project as it substantiates our decision to venture into the oil & gas, petrochemical and process plant construction sectors. We look forward to successfully completing this project whilst boosting our efforts and simultaneously intensifying our presence in the Oil & Gas industry.”

Tan Sri A K Nathan concluded by stating: “We are positive that all our efforts and initiatives that have

The event recognised as the keel laying is the first joining of modular components, or the lowering of the first module into place in the building dock.

The dual keel laying ceremony was held at Eversendai Offshore’s

truss type legs; each with an electric driven rack and pinion jacking system, which will allow the unit to jack up in water depths of up to a maximum of 70 metres. The liftboat’s primary operating capabilities will include a 300-tonne crane, Dynamic Positioning

been set in place would lead to more opportunities for the Group to secure new contracts on a global scale. We anticipate our foray into this sector to be a significant contributor to Eversendai Group’s earnings in time to come.”

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# twenews Repsol reaches agreement to acquire Talisman energy for US$8.3 billion Repsol has agreed with Talisman energy to acquire 100% of the shares of the Canadian company for US$8.3 billion (EU6.64 billion), plus assumed debt of US$4.7 billion. The transaction has been approved and recommended by the Board of Directors of the Canadian company.

The deal will transform Repsol into one of the world’s largest privately-owned energy groups, with increased presence in OECD countries, incorporating reserves and production in politically stable countries.

Additionally, it will add a significant exploration portfolio and high-quality

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productive assets in North America (Canada and U.S.), South-East Asia (Indonesia, Malaysia and Vietnam) as well as Colombia and Norway, amongst others.

Once the transaction is complete, North America’s weight in the resulting company will increase to almost 50% of capital employed in exploration. Latin America will represent 22%.

The incorporation of Talisman will increase the output of the Repsol Group by 76% to 680,000 barrels of oil equivalent per day, and will boost reserves by 55% to 2,353 billion barrels of oil equivalent. The

resulting group will be present in more than 50 countries with over 27,000 employees.

Repsol Chairman Antonio Brufau said: “This is a transformative and exciting deal which will make us one of the world’s most significant players and which will allow us to grow as a company and reinforce Repsol as a solid and competitive integrated player.”

“Talisman is an excellent company which will add its experience and proven track record in production assets that will add to that of Repsol in deep water exploration. This will significantly boost joint development.”

NEWS

Enbridge to build Gulf of Mexico pipeline Enbridge Inc., announced recently that it will build, own and operate a crude oil pipeline in the Gulf of Mexico to connect the planned Stampede development, operated by Hess Corporation, to an existing third-party pipeline system.

The lateral pipeline is expected to cost approximately $0.13 billion and be operational in 2018. The Stampede development was previously sanctioned

by Hess and its project co-owners in October 2014.

Approximately 16 miles in length and 18 inches in diameter, the Stampede lateral will originate in Green Canyon Block 468, located approximately 220 miles southwest of New Orleans, Louisiana. Water depth at the location of the planned pipeline is approximately 3,500 feet.

“The Stampede lateral is consistent with Enbridge’s low risk business model and furthers our objective to capture new deepwater Gulf of Mexico crude oil plays,” said Greg Harper, president, Gas Pipelines & Processing, Enbridge Inc. “This project is an attractive investment opportunity for Enbridge and we are pleased to be working with Hess and the other producers on this development.”

RWE AG to sell RWE Dea for €5 billion

© 360b / Shutterstock

RWE AG and LetterOne Group have agreed to complete the sale of RWE Dea in its entirety by early March 2015, at the latest. An enterprise value of ca. € 5 billion based on current exchange rates has been agreed. The adjustment to the value communicated in March 2014 reflects developments relating to certain exploration and production licenses.

As part of the revised transaction LetterOne Group will keep Dea UK separate from the remaining RWE

Dea activities for a number of years.

In the unlikely event that sanctions on LetterOne or its owners were imposed, RWE will retain the obligation to repurchase the UK business during the first year post completion of the sale of RWE Dea. If triggered, this acquisition would be carried out on the basis of a pre-determined purchase price formula in order to proceed with a subsequent on-sale of the UK business to an independent third party buyer.

Peter Terium, CEO of RWE AG: “The

economics are attractive and therefore the Dea disposal remains an essential step towards executing our strategy and improving our financial strength.

We are on track!”

Mikhail Fridman, Chairman of LetterOne Group: “We are pleased to have reached a final agreement with RWE. Dea is a strategic transaction for LetterOne and will serve as a platform for further growth in the industry.

We look forward to completing the transaction in the coming weeks.”

PAGE 9

Success in the Permian Basin

Editorial: Roland Douglas

David Wilson began his career in the oil and gas industry in Texas in 1993. Since then, he has gone on to build a company with an extremely impressive portfolio and win many awards and accolades for entrepreneurial excellence.

Being an entrepreneur is a real challenge.

You need determination, knowledge, persistence, enthusiasm, personality and tenacity to name just a few traits.

But there is also one key element that is required, an element that is not so easy to come by – funding. As a business grows, the demand for funding grows, and the figures required keep on rising. Even to start a small business, with just the bare bones of what is needed, requires some money and this is especially so in the oil and gas business. You also need a network of contacts. This is vitally important and nowhere more-so than in Texas where there is a vast amount of oil and gas companies operating across the entire spectrum of activities; upstream, midstream and downstream. Then there is knowledge. Like any industry, in the oil and gas sector you need a sound understanding of what you’re doing; you can’t just walk in, set up and start trading; that would be irresponsible and unsafe.

So where do you start? If you are David Wilson, CEO of Unitex Oil & Gas,

PAGE 10

you start in Texas and you look for opportunities to improve operations and add value to oil and gas properties with upside potential.

Staring his career in oil and gas as what some people might call ‘young’, David Wilson bought his first Texan oil well when he was just 20; an age where most are still studying or finding their feet in the workplace.

He is now over 30 and owns more than 250 wells, producing about 450 bbl per day. One of the keys to his success is the focus of his business. Unitex Oil & Gas has always focussed its activities on the Permian Basin in West Texas, a sedimentary basin that is part of the Mid-Continent Oil Producing Area. Most of the Permian Basin’s oil producing organisations are based in the towns of Midland and Odessa and Unitex Oil & Gas has been there since 2003. Its goal is to: create significant value through the development and acquisition of conventional oil assets in the Permian Basin.

But doing business in Texas is no easy task. There is significant and fierce competition, there is the rising threat of the shale gas industry and oil and gas imports from other parts of the world, and there is the issue of environmental sustainability – people are growing everpessimistic about the constant testing, surveying, digging, drilling and producing.

None-the-less, with the resurgence of drilling in the Permian Basin and Eagle Ford, Texas is responsible for 34 percent of oil and gas production in the United States and will continue to be at the heart of the energy industry in North America for the foreseeable future. So David has already made his most important strategic decision – to focus on Texas.

After deciding on the company’s focus, Wilson set about arranging funding which, fortunately, was quick and relatively easy and the next step was to grow the business.

He quickly went about purchasing more wells to bolster his portfolio and from 2003-2011 purchased over 250

Entrepreneur

wells; and he is today still looking to increase this number.

Some might say he was fortunate, and some might say he had a great mind for business as the 2000s were a great time for the oil business with prices rising dramatically. From the mid-1980s to September 2003, the inflationadjusted price of a barrel of crude oil on NYMEX was generally under $25 per barrel. During 2003, the price rose above $30, reached $60 by 11 August 2005, and peaked at $147.30 in July 2008. Industry commentators attributed these price increases to many factors, including the falling value of the United States dollar, reports from the United States Department of Energy and others showing a decline in petroleum reserves, worries over peak oil, Middle East tension, and oil price speculation.

According to Oil and Gas Investor magazine, Wilson’s strong suit “is streamlining operations in shallow-oil plays on the Permian Basin’s eastern shelf” and to date, he has certainly

proved this to be correct. More recently, his focus has changed slightly; Unitex is now a well-known and well-respected company and Wilson is using his entrepreneurial flair to further grow the business.

In early 2013, the company penned a deal with Ridgemont Equity Partners, a middle market buyout and growth equity firm, which saw the first acquisition of conventional oil assets in Scurry County, Texas.

Wilson said of the arrangement: “I am excited to partner with Ridgemont and grow Unitex’s assets with their financial backing. Ridgemont shares management’s vision for the company. I look forward to continuing to leverage their knowledge and support.”

Of course, throughout his career, Wilson has continually displayed top-class business nous and this was demonstrated in 2007 when he was appointed by Providential Holdings, now PHI Group, as President of its Joint Venture, PhiTex Energy Corp. Wilson said at the time: “My goal,

as president of Unitex Oil & Gas, LLC and PhiTex Energy Group, Inc., will continue to be to progressively seek out and identify under explored, under valued, or under developed oil and gas properties in the West Texas region. By coupling a common sense approach with years experience and cutting edge technology, Unitex and PhiTex will be jointly successful as we acquire and develop oil and gas properties.”

Wilson’s work with Unitex has shown that entrepreneurs, especially young entrepreneurs, in the Texan oil and gas industry can most certainly achieve; all they need is the drive and determination and a unique strategy. Wilson has previously been named by Forbes as one of the 30 under 30 to watch in the energy industry, he was named as one of the top ten Young Entrepreneurs in Oil & Gas and Water & Wastewater by Castagra, and he was called one of the top five Young Entrepreneurs in Oil & Gas by Oilpro – all of this from one well in Texas – maybe the saying is true; in Texas, anything is still possible

PAGE 11

Innovation of the year, 2014 Editorial: Christian Jordan

Offshore specialist, MacGregor, last year won its second Offshore Support Journal Innovation of the Year award. The prize came following the release of the MacGregor three-axis motion compensated offshore crane which will be used on vessels for the construction of renewable energy facilities.

In March last year, a major breakthrough was made when MacGregor, a company offering integrated cargo flow solutions for maritime transportation and offshore industries, was presented with the Offshore Support Journal’s (OSJ) Innovation of the Year award.

This prestigious annual award is given for a product, system or service which is judged to have made the most significant impact on the design, build and/or operational aspects of offshore support vessels and this is not the first time that MacGregor has taken the top prize.

The offshore industry is inseparably tied to the global oil and gas and wind energy businesses and international exploration

PAGE 12

and development companies are increasingly looking for organisations with the foremost capabilities when it comes to integrated vessel packages.

The crane, a first-of-its-kind for the offshore industry, is now mounted on the Siem Moxie, a newbuild infield support vessel which is currently operating in the offshore renewable energy markets, carrying out installations, repairs, maintenance and general service duties.

Specifically, the vessel will transfer containers of tools and equipment to the top of offshore windmill foundations.

The vessel, and the crane, has already demonstrated its capabilities while working on offshore wind farms being developed

by E.ON. The award was delivered to MacGregor at OSJ’s fifth Annual Offshore Support Journal Conference and Awards event in London, UK, on 19 February 2014.

MacGregor’s Offshore Advanced Load Handling team received the award on behalf of the company in front of more than 500 people.

Tom Svennevig, Vice President, Advanced Load Handling said when claiming the prize: “It is an honour to receive such a prestigious prize from one of the most reputable forums in the international offshore sector. It is also an important recognition of our capabilities from peers across the offshore industry.

Innovation

“In 2012 we also received the OSJ Innovation of the Year award; on that occasion it was for our Chain Wheel Manipulator. Winning it for a second time is especially remarkable, particularly in the face of such notable competition from the shortlist of nominees in the category.”

Baard Alsaker, MacGregor R&D Director, Advanced Load Handling said: “MacGregor’s standard active heavecompensation technology supplied though a crane’s winch compensates for a vessel’s vertical movement, assuring accurate load handling. However, when transferring equipment to the top of offshore windmill foundations, which are about 20m above the water and are only four m2, even more precision is required.

“As a result, our engineers developed new technology that compensates for vessel movements in the horizontal plane (pitch and roll) as well as in the vertical plane. Compensating for the horizontal motions ensures that the crane’s pedestal remains vertical in relation to the seabed, so that it will always be parallel to the windmill structure. Thanks to this three-axis compensation, the crane can perform

extremely accurate load positioning operations. The crane can be used for a variety of other purposes, including shipto-ship operations. It can also be specified for certification for personnel lifts, further enhancing its flexibility.

“We see that the emerging offshore wind sector continues to set new requirements for offshore cranes and we are constantly looking for ways of employing our expertise in the development of innovative new solutions for our customers,” Alsaker added.

The crane has a safe working load of five tonnes at a 25m outreach and a motion reference unit (MRU) is the primary sensor for calculating heave motion. In addition, a secondary sensor placed at the crane boom tip is used to verify the MRU’s accuracy and provide overall redundancy, adding to the system’s safety.

Frode Grøvan, Director, Sales and Marketing, Advanced Load Handling at MacGregor, a Cargotec company, said that Siem had challenged MacGregor to develop an innovative crane especially for the Moxie. “Siem Offshore approached MacGregor’s Competence Centre for

Advanced Load Handling, Offshore in Kristiansand, Norway, to develop the crane especially for the vessel.”

Some of the most inspiring innovations in the offshore sector have been showcased at the OSJ Innovation of the Year awards and the forum welcomes guests from across the world including shipowners, senior offshore support executives, shipbuilders, designers, classification societies, industry associations and equipment manufacturers.

MacGregor was the obvious choice for the contract award from Siem and also for the award. As the world’s leading brand of engineering solutions and services for handling marine cargoes and offshore loads, MacGregor products serve the maritime transportation, offshore and naval logistics markets, in ports and terminals as well as on board ships and the company is continually investing in research and development.

Winning this award for the second time proves MacGregor’s commitment to innovation and it seems almost certain that we will see this organisation providing positive contributions to the ever-changing offshore industry in the near future

PAGE 13

Power for the people Editorial: Colin Chinery

Tanzania is a nation whose vast economic potential and social betterment have long been thwarted by grave deficiencies in power generation and supply. Now a major Government blueprint is geared for a sweeping transformation, with state-owned energy utility TANESCO a core player.

TANZANIA is one of the world’s 20 fastest-growing economies; 7% annual GDP growth, significant deposits of natural gas and other resources, and an increasingly liberalised economy pitched to attract foreign investment.

It also has one of the most ambitious development plans. With two in three of Tanzania’s 45 million living below the property line, the

PAGE 14

Government’s Development Vision (TDV) 2025 wants to transform Tanzania into a middle income country within ten years - a goal requiring at least a tripling of income per capita now standing at $640.

To meet these targets a country with one of the lowest electrification levels in the world needs adequate, reliable, affordable and environmentally friendly electricity supply.

And to do this, the TDV envisages boosting installed power capacity to at least 10,000MW over this period, a tenfold increase on current figures.

KEY ROLE It’s an ambition in which Tanzania’s sole electricity-focused utility company, TANESCO – Tanzania Electric Supply Company Ltd – will play a key role.

TANESCO The country’s sole electricityfocused utility company and a parastatal organisation under the Ministry of Energy and Minerals, TANESCO’s vertically integrated structure extends across generation, transmission, distribution and sale of electricity to the mainland, as well as bulk supply across the water to Zanzibar.

“Our customer base has doubled in the past three years and we are heavily involved in a range of marketing activities to achieve the best ways of delivering power to our customers,” says Managing Director Felchesmi Mramba. “In 2011/12 we had less than 700,000 customers; now we have 1.4 million.”

While TANESCO’s Generation division is responsible for all its power generation functions, other sources of generation are deployed by independent power producers (IPPs) feeding both the national grid and isolated areas.

TANESCO’s generation system consists mainly of hydro and thermal based generation - hydro contributing about 40% while gas and liquid fuels provide the remainder.

But with a growing energy deficit caused partly by recurring droughts that have crippled hydropower capacity, the company has implemented a thermal hydro power generation mix programme, with significant generation coming from gas and diesel through TANESCO plants and IPPs. “Over the past five years we have invested in a number of power plants which are generating natural gas. We are also embarking on investing in Halle, a hydro plant, to make it more efficient, while a number of projects where feasibility studies have been completed are now ready for implementation,” says Mr Mramba.

BACKBONE The Backbone Transmission Investment Project aimed at solving unreliability issues, is due to be completed next year. Backed by among others, the World Bank and the African Development Bank (ADB) - this is a major TANESCO project being implemented in Dodoma, with 400Kv capacity overhead transmission line from Iringa to Shinyanga.

The project is divided into three lots, one extending from Dodoma in Tanzania’s heartland to Iringa, the second from Dodoma to Singida, and the third from Singida to Shinyanga region.

But TANESCO’s strategy also has a continental outreach. Agreements such as SAPP, the Southern African Power Pool, link South Africa, Zambia, Zimbabwe and Mozambique in power trading partnerships. Now Kenya, Tanzania and Zambia are set to spend $1.4 billion to link their power grids by 2018 and create a regional power pool for trading electricity.

The three countries will build 2,302km of 400 kilovolt power lines and 373km of 330kV power lines, with each country responsible for the lines within its jurisdiction.

The connector project will link the East African Power Pool (EAPP) to SAPP, promoting electricity trade and security of supply.

Implementation will also foster regional integration in the three states by consolidating work relations through supply mechanisms.

area south of Dar es Salaam where the natural gas pipeline from Mtwara will terminate.

“Kinyerezi I is a 150MW plant, and the only point we are not sure about is whether at its opening natural gas will be flowing in the pipeline.

But if not, it’s a dual fuel plant which means we can use liquid fuel or natural gas.”

Kinyerezi II is a 240MW combinedcycle project contracted to a Japanese company, while Kinyerezi III generating 600MW is a joint project with the Shanghai Electric Power Company. Kinyerezi IV, another joint venture with a Chinese company, will generate 330MW. “Other ventures include Mtwara - a 400-600MW project we are undertaking with General Electric and Symbion Power Tanzania to boost electricity in southern regions and the rest of the country – Kilwa, where we are engaged with an IPP for a 320MW combined cycle plant, and another IPP venture, a 225MW project in Bagamoyo.”

NATURAL GAS Meantime, short term TANESCO projects include four at Kinyerezi, an

PAGE 15

A transmission line to Songea, situated close to the Malawi border will also be constructed to deliver power to a region of huge economic potential among industries such as uranium extraction and other mining sectors. “Altogether within Tanzania we want to have a network of 400kV transmission lines throughout the country.”

BIG ROLE FOR RENEWABLES Unsurprisingly given Tanzania’s considerable potential, Mr Mramba is a keen exponent of renewables: “Tanzania is very well positioned for renewable projects. The Great Rift Valley for example, acts as a wind tunnel, which means that in many places wind power generation is very viable. And since we are very close to the Equator, solar energy is also a plentiful resource waiting to be tapped.

PAGE 16

“Over the past two years we have recorded significant investments and a 60% increase in revenues”

“And with many opportunities for power generation, we will start by generating more from natural gas, and then slowly diversify into coal, renewables, and hydro-electricity.

“Going forward I believe renewables are going to make a big contribution to power generation.

TANESCO is very much part of this movement, and we believe renewable projects are the projects of the future - and that future is already here.”

The rapid growth of demand for electricity, over-reliance on hydro generation and soaring energy losses from ageing transmission and distribution systems have hampered efficient distribution of electricity.

Against this backdrop TANESCO is unfolding plans to make major institutional reforms and transformation to improve efficiency in service delivery.

These include re-organising

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We have a leadership position in LPG in Tanzania that reflects our strategy of promoting it as a safe, affordable, healthy and ecological energy in Africa. We strongly support local and international efforts to replace the use of firewood and charcoal, to improve health, reduce deforestation and greenhouse gas emissions. Whether LPG in cylinders for consumers or in bulk for commercial and industrial use, we ensure a quality and reliability that our customers can depend on. We demonstrate our commitment to product availability, as the only company in Tanzania that has invested in an LPG storage sphere.

Similarly, our ISO-9001 lubricants blending plant in Dar es Salaam produces a full range of quality lubricants, designed to keep engines running and running, and serves Tanzania and the rest of East Africa. It also blends for third parties, including oil majors. Our products include automotive and industrial plant lubricants, a full range of greases as well as engine coolant, cutting fluids, and degreasers. They all carry approvals from the American Petroleum Institute and meet the specifications of all major equipment manufacturers.

We work with a wide range of businesses, including industrial sites, the hospitality sector, farmers, schools and hospitals.

Oryx Energies also supplies the majority of mines in Tanzania, together with exploration companies off the coast of Mtwara.

For businesses and industrial operations, Oryx Energies is known as a reliable full-service provider, even in the most remote locations, offering the delivery of fuels, lubricants and LPG, on-site storage and quality-control, through to waste disposal.

We thus enable our clients to concentrate on their business, while we look after their energy needs. In addition, we develop tailor-made value-adding solutions to reduce the total cost of operation and ensure all HSSE aspects meet, or exceed, site standards.

Oryx Energies also transits fuels and lubricants from Tanzania, as a strategic hub, to neighbouring countries, to help ensure they also have the energy supplies they need.

We are proud of our reputation of responding to the evolving energy needs of Africa for over 25 years. We continue to invest strongly and look forward to continuing to support Tanzania’s development in the coming years.

PAGE 18

TANESCO procurement, empowering regional offices to operate independently, strengthening electricity billing systems, improving customer service, and the replacement of all manual power meters with prepaid.

“Over the next three years, the company will have removed all old-fashioned meters and installed prepaid meters across the country, with customers required to pay their bills only through banking institutions or mobile banking services.

“We shall be introducing new initiatives to improve services and make our company grow. For example we want to speed up the installation of pre-paid meters for our customers, giving them a choice in the way they can buy electricity from us.

“We have now introduced mobile payment systems for customers using credit meters, which means

“With our continuing drive to take power into the rural areas we need to train young engineers working in generation, transmission and distribution”

they can stay in their homes and make bill payments without going into our offices. We’re also set to start informing our client on power interruptions through text messages.

“We are also improving on other services, especially giving people to apply for our services the opportunity of going on-line instead of travelling to an office to make application for their power.”

TANESCO’s origins reach back to 1908 when Tanganyika - as Tanzania was then called - was a German colony. The first public electricity supply created at Dar es Salaam, and when the Tanganyika territory was mandated to Great Britain in 1920, a Government Electricity Department was formed to take over and operate the public supplies left by the Germans. continues on page 22 ...

“Independent Power Tanzania Limited (IPTL), a subsidiary of Pan Africa Power Solutions (T) Limited (PAPS) is proud to serve in the Tanzania Energy Sector, working closely with Tanzania Electricity Company (TANESCO) to ensure affordability of electricity to all Tanzanians.

We strive to be the largest independent power producing facility in East Africa with an additional 500MW expansion, powered with a first phase 200 MW Wartsila Gas Engines to cut the cost of power supply throughout Tanzania.

We are committed to working with TANESCO to lighten up lives of many Tanzanians by providing reliable and affordable energy for economic growth of this country.

IPTL/PAP is here to serve.”

INDEPENDENT POWER TANZANIA LIMITED PLOT 292/1,292/2,292/3,296 BLOC D SALA-SALA. TEGETA, P.O.BOX 77173, DAR ES SALAAM, TANZANIA

PAGE 19

PAGE 20

InterOil

PAGE 21

continued from page 19 ...

Thirteen years later it was handed over to private enterprises, among them the Tanganyika Electric supply Company – TANESCO - and another the Dar es Salaam and District Electric Supply Company.

When Tanganyika gained independence in 1961, TANESCO started planning new power projects to meet the increasing industrial, commercial and rural township power supply demands.

Between 1964 and 1979 the Government acquired 100% of the shares, the two companies merging. And over this period the percentage of Tanzanian employees rose from 87% to 99.5% while those in senior positions went from 19% to 99%.

SKILLS – NEEDS AND OPPORTUNITIES “With the growth of TANESCO over the past three years, staff numbers have increased, especially in the rural areas. With our continuing drive to take power into the rural areas we need to train young engineers

PAGE 22

working in generation, transmission and distribution. We also need skills on the softer side such as marketing, customer service and finance.”

In 1992 TANESCO’s monopoly ended when the Government began allowing IPPs to generate and sell power to the TANESCO grid for transmission and distribution with the intention of creating better service for electricity customers. Organisational and operational reforms have continued, and last year an unbundling and restructuring plan was rolled out aimed at enhancing efficiency and attracting investments in the energy sector in line with the country’s growth blueprint, Vision 2025.

“The market has opened up and we have received interest from many companies who want to invest in becoming independent power producers and in public/private partnerships. So while we have been leaders in power generation we expect competition to grow and increase as time goes on.”

Mr Mramba joined the company in 1996 as a trainee engineer, subsequently working as an

engineer, senior marketing manager, and Deputy Managing DirectorDistribution, with the responsibility of overseeing Distribution functions in the Company before his appointment as TANESCO’s Managing Director.

Pan-African and global positions include the chairmanship of the Power Institute for East and Southern Africa (PIESA), the voluntary regional power utility association aimed at improving the electrification in East and Southern Africa through sharing information, research, technology and skills.

ACHIEVE AND ENVISAGE Tanzania and TANESCO face challenging issues and life-changing opportunities, and Mr Mramba, a visionary and a realist, is encouraged by the progress taking shape.

“Over the past two years we have recorded significant investments and a 60% increase in revenues.

When I look at TANESCO I see many improvements, greater power stability and reliability, and a significantly enhanced level of service to our customers, the people of Tanzania.”

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Discovering PNG’s largest gas field Editorial: Harriet Pattison

Founded nearly two decades ago, it is safe to say that InterOil is a company in the midst of a successful and exciting transformation.

Discovering Papua New Guinea’s largest gas field, Elk-Antelope in 2006, the company has partnered up with Total and Oil Search to develop a liquefied natural gas project based on an estimated resource of at least 7 trillion cubic feet (tcf). Total World Energy looks at one of the largest gas discoveries in Asia in the last 20 years…

Founded in 1997 from the entrepreneurial spirit and determination of former chief executive Phil Mulacek, InterOil has experienced a momentous shift in the last year or so. After reshuffling its management team under a new chief executive and selling the

PAGE 24

refinery arm of its business to Puma Energy in June last year for US$526 million, the company is now firmly on the reputable map of Asian energy companies.

Now led by former BP and Woodside Energy Senior Executive, Chief Executive Dr Michael Hession,

the history and no doubt future of InterOil is looking to be an interesting one.

Total World Energy looks at the history of this company which is now working to develop Papua New Guinea’s second LNG project and is involved in the country’s largest

InterOil exploration and appraisal drilling program to date.

InterOil was incorporated in Canada about 12 years ago and founded by engineer and entrepreneur Phil Mulacek who had an idea to take a refinery that Chevron was decommissioning in Alaska and set it up in Papua New Guinea, which had no refining capabilities at all. Production started in 2003 and InterOil had the sole refining and distribution rights to aviation fuel, diesel and petrol.

InterOil then turned to exploration.

The Eastern Papuan Basin was considered to be prospective but under-explored and InterOil picked up about 32,000 Km2 of licences.

After a couple of unsuccessful wells, InterOil found Elk-Antelope, which has turned out to be the biggest gas field in Papua New Guinea. In early 2014, InterOil finalised a deal with Total to develop a liquefied natural gas project, with Total acquiring an interest in ElkAntelope for about US$400 million with additional milestone payments and bonus payments out to the first LNG cargo.

The agreement with Total, signed in March last year, means InterOil will receive an estimated US$1.62 billion if the project has 7.1tcf (trillion cubic feet) with the potential for further payments if the field is bigger.

InterOil is working through ElkAntelope LNG project planning with Total and Oil Search and has two appraisal wells underway and may drill another one later this year depending on whether the joint venture feels it needs to. The venture is working towards a final design concept and site for the LNG plant and facilities and will move into the design and front end engineering and then a final investment decision in late 2016-17, with first gas expected early in the next decade.

ELK-ANTELOPE With Elk-Antelope amongst the largest discoveries in Asia in the past two decades, InterOil believes it will exceed seven trillion cubic feet of gas based on estimates by independent certifiers.

The current field appraisal work is designed to help the joint venture correctly design and engineer facilities before making a final investment decision.

The project has six wells on the structure and up to three more under way or planned in the next six months.

Reserves certifiers will then analyse all the data and come up with a range of the size of the field.

Earlier last year, Oil Search bought out some minority interests in the field, paying US$900 million on the basis that there is 7tcf of gas available.

AN UPSTREAM BUSINESS Since its inception, InterOil has changed, especially within the last few years with the successful appointment of Hession.

When he took over, the company was in both ends of the value chain but not production. It was in exploration, importing oil, refining it and distributing it but did not have its own production. This is unusual for oil and gas companies unless they are super majors like Shell or Exxon.

When Puma Energy, a subsidiary of the Trafigura group, asked to buy InterOil’s refining and downstream business, InterOil said yes.

“The refinery sale changed the business and we deliberately moved focus and strength to developing the LNG project and our engineering, geological and geophysical capacity,”

said a company spokesman. “We’ve got a pretty robust team of people who are very experienced with LNG projects around the world who have come from Shell, BP, Chevron, Woodside to work with us.”

Operating in a challenging location like the highlands of Papua New Guinea can make work much more difficult. InterOil has streamlined its supply chain because of the remote location. With few roads, drilling rigs and even bulldozers have to be taken to site via helicopter.

It has shut down its construction division that built roads and drill sites because it was not core business, and now engages contractors for this work.

“We are purely focused on LNG development and monetising our exploration success. The next phase is production but that will come in time. So that’s essentially the model and now we’re what you would call an upstream business,” the spokesman said.

PAGE 25

COMPLEMENTARY BUSINESS Although parts of Papua New Guinea remained relatively unexplored until recently, the size of the Elk-Antelope Project and ExxonMobil’s $19 billion PNG LNG Project have attracted numerous companies to the region, making the exploration business an increasingly competitive industry in which to operate.

More than a dozen oil and gas companies operate in PNG, from the larger ones like Total and ExxonMobil through to the smaller companies.

From the LNG end, ExxonMobil last year started production from the PNG LNG project, an undertaking that is considered to be one of, if not the, least expensive LNG projects in the world. It came in under schedule and on budget.

InterOil sees the ExxonMobil PNG LNG Project not so much as

PAGE 26

“The refinery sale changed the business and we deliberately moved focus and strength to developing the LNG project and our engineering, geological and geophysical capacity”

competition but as complementary because it has blazed the trail with customers, regulators and contractors.

“While PNG LNG has paved the way and established PNG as a country that can deliver a mega project, we’re on their coattails and hopefully we’ll follow with the country’s second LNG project,” the spokesman said.

The PNG LNG Project, which is 600km from Port Moresby, is based on several gas fields in the southern and western highlands which are very rugged and remote whereas InterOil has one field based on the hinterland of the highlands and near a big river, which helps with transporting people and equipment.

The InterOil project is also 300km closer to Port Moresby, which means it does not need an extra 300km of pipeline.

With 300 employees and more than 1500 contractors working in the

BGP PNG Exploration Limited is a locally registered subsidiar y in Papua New Guinea of BGP Inc., China National Petroleum Corporation. We ha ve been in this countr y for more than four years, completed several projects in Wester n and Gulf Provinces, gained a lot of local exper ience and know PNG ver y well. The Antelope project for InterOil was our most challenging. Usually it is not easy to dr ill a 27 meter depth hole in mudstone. However it was much more challenging to complete loading in this project. Finally, we finished all holes in a high quality production wa y with BGP powerful por table dr illing r igs. And three component data were acquired firstly in Papua New Guinea as well.

BGP PNG is keen to provide our ser vices with high quality, cos t effectiveness and HSE s tandard compliance to the Oil&Gas indus tr y and develop our selves together with the local communities .

Contact person | Mr.Chen Bingwen Mobile | 00675-73239172 Email | chenbingwen@bgp.com.cn Website | www.bgp.com.cn

field on development and exploration, InterOil is a big employer in the region.

Most of its staff are Papua New Guineans, including the president of its PNG operations, Isikeli Taureka, who worked for many years with Chevron in the US, China, Asia and Australia.

“We’ve got quite a few geological staff from Papua New Guinea and a lot of our finance and HR department are from PNG,” the spokesman said.

“We’re determined to increase the capacity and capability of Papua New Guinea because they are capable and they are readily available but haven’t necessarily had the same opportunities as non-Papua New Guineans.”

PROVIDING OPPORTUNITIES Alongside InterOil’s Elk-Antelope Project, ExxonMobil’s PNG LNG project, currently in production, has brought about a very successful and welcome change for Papua New Guinea and for the industry. The country’s GDP will increase from 6% to 21% on the back of the Exxon project.

PAGE 28

“We are purely focused on LNG development and monetising our exploration success. The next phase is production but that will come in time. So that’s essentially the model and now we’re what you would call an upstream business”

“The onset of that project demonstrated to the world that the PNG government was stable enough and competent enough to bring on a major project, the fiscal regime works and is stable and competitive,” the spokesman said. The fact that the ExxonMobil project is producing and will do for 30 odd years opened up the prospect of markets for explorers who find more gas.

“So, this has given the country a competitive edge and the fact that you can bring on a big project and contain your costs amongst the most competitive in the world makes it a fairly attractive place to be. Although PNG is remote and geographically difficult, it is very innovative and the people are innovative. There have been many engineering marvels; when you see some of the hills and valleys where they have built rigs, laid pipelines and built plants you think: ‘How the hell did they ever do that, but they have.’”

Mega-projects like Elk-Antelope and PNG LNG are helping to provide a revenue stream for the government

InterOil

CEO Dr Michael Hession with Gulf Province villagers

which in turn lifts the living standards of the locals.

The PNG government is a signatory to the extractive industries transparency initiative and is working with companies now to ensure payments are transparent. PNG also operates under English Law and has a vibrant middle class with many people who went overseas 30 years ago to work now returning. The PNG elite generally sent their children overseas to school, mainly to Australia. “In the past, these kids would take jobs with big companies and go off around the world, but now projects like PNG LNG and Elk-Antelope are providing opportunities for them to come back, to allow them to give something back to their country and live there once more,” the spokesman said.

Not only is InterOil providing employment opportunities to the locals of Papua New Guinea but it is continuing to cement its position in the community. Instrumental to the infrastructure of the country,

InterOil provides basic services to the communities. Following some of the region’s worst flooding in 2014, InterOil delivered emergency food supplies, medicines and shelter for an estimated 3,000 people who were left homeless by the extreme weather conditions.

ALL THE RIGHT INGREDIENTS Due in part to the entrepreneurial vision of Phil Mulacek almost two decades ago, much of the company’s rising success is about having all the right ingredients at the right time.

Its exploration and commercial success is due no doubt to the experience of people within InterOil who understand the rocks and can do good deals, and also to a bit of luck and the perseverance and belief of people who founded the company.

“An entrepreneurial spirit spawned the company,” the spokesman said.

“As for the future, the company

is well funded, we have world class assets and we’ve got an extremely competent team with vast international experience, so on those measures we’ve got all the ingredients to make it work.

“We’ve got a great partner in Total who is used to working in remote parts of the world and is a good technical operator and we’ve got Oil Search who have been in PNG for nearly 100 years and are part of the country’s first LNG project. You don’t always get those ingredients coming together.”

As with many large projects, challenges are inevitable, which InterOil, Total and Oil Search are currently resolving, particularly around percentage interests in ElkAntelope.

“Of course we have our issues but we will get on with things and continue to draw on each other’s skills and strengths when we need to,” the spokesman concluded

PAGE 29

Commercialising PNG’s Gas Resources Editorial: Tim Hands

The PNG LNG Project is an integrated development which comprises gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central Provinces of Papua New Guinea. With over 700 kilometres of pipelines connecting facilities including a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby, the facility boasts a capacity of 6.9 million tonnes per year.

Investment for the initial phase of the Project stands at an estimated US$19 billion, with production and sales expected to top nine trillion cubic feet of gas over the course of its lifetime. Its operator, ExxonMobil Corp, is the parent company of ExxonMobil PNG Limited, a company which has enjoyed a long and productive history in Papua New

PAGE 30

Guinea. It has had involvement in exploration and production activities in Papua New Guinea since the 1930s, holding an interest in several oil and gas discoveries across over 2.1 million acres. A participant in the only oil production project in the country, it is also a large equity holder in the country’s gas resources.

On top of this, ExxonMobil has

been marketing petroleum fuels and other refined products in Papua New Guinea since 1922, and today accounts for just over 35% of the market. This particular landmark LNG Project came about in part as a result of the infeasibility of a previously proposed PNG Gas Project by an ExxonMobil affiliate, back in 2004, which sought to commercialise

PNG LNG the natural gas in PNG’s Southern Highlands and transport this via a 3,000 kilometre pipeline to customers in Australia.

THE PNG LNG TIMELINE Five years on from this initial foray, and December 2009 brought one of the significant announcements in the Project’s timeline, with its venture participants approved and construction thus allowed to begin. This was bolstered by the completion of financing arrangements with lenders in March 2010, and with engineering, procurement and construction contracts (EPC) approved between late 2009 and early 2010, construction work began on the Project. It is a colossal undertaking which has an estimated 30 years’ operational lifetime, over which it is expected that over nine trillion

cubic feet of gas will be produced and sold. April 2014 saw very first vestiges of the PNG LNG Project’s production of LNG from the first train, notably ahead of schedule, while production from the second train has also started as additional wells have come online. Its completion has been the result of over 191 million work hours which saw more than 21,000 people employed by the Project at its peak. More than 9,000 of those were Papua New Guineans, and to date over 10.7 billion Kina has been spent with businesses in Papua New Guinea.

In a statement, Exxon Mobil Papua New Guinea (EMPNG) Managing Director, Peter Graham, described how key this collaboration with its host country has been to the successful and somewhat unanticipated early commencement: “With the support of PNG government and

community, we are proud to have completed the PNG LNG Project ahead of schedule. The PNG LNG Project is important to the economy of Papua New Guinea and has created significant, longlasting benefits for the country.”

In addition to the notable financial injection the Project has already brought to the country, alongside the creation of crucial employment opportunities during construction and operation, there is the potential here to transform the entire economy of Papua New Guinea as it moves through its development phases. This will be achieved through boosting GDP and export earnings as the LNG is commercialised, and thus providing a major increase in government revenue, while landowners will also look forward to benefiting hugely from the royalty payments they will receive.

PAGE 31

“This Project has brought significant economic benefits to our country that will last for generations to come,” further explains Papua New Guinea Prime Minister, Hon. Peter O’Neill.

“Not only will the people of Papua New Guinea now benefit; their children and grandchildren will continue to enjoy the benefits and positive effects from this valuable resource development for many years to come.”

Its success has been many years in the making, and Peter Graham underlines the extent of the achievement by the many involved parties, to have pulled this off under such intense pressure in a radio interview with Radio Australia: “I think our track record speaks for itself. If you look at where we are today, roll back the clock several years, there were lots of sceptics who didn’t think

PAGE 32

the project could be executed in Papua New Guinea.”

These benefits have the potential to spread throughout the entirety of the economy as the Government applies the earnings from its share of the project revenues to social and economic programs.

These will in turn of course have the ability to improve the quality of life of significant numbers of Papua New Guineans, by providing essential services and enhancing the country’s productivity.

“In the long-term the impact is substantial on the economy of PNG,” echoes Peter Graham in the radio interview. “Obviously there is a very large impact on employment - today, we are employing something like five and a half thousand national citizens working on the project and we are spending substantial amounts of money in the country. To date

about K2 billion or around $800 million dollars has been spent on the project and you only have to look around the country to see the positive impact the project is having.”

The successful and early completion of a project of this scale will also act as a vital catalyst to further gas-based industry development, as Graham continues: “I think it is very important. This project is project financed so there is a lot of interest from the lenders from around the world, in what’s going on. We’ve seen already as our project has started to ramp up, the interest in exploration and other developments in Papua New Guinea is clearly ramping up and I think people are just watching to see how this project progresses and whether it can be done on this scale in this country. If it can I

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think it is really going to open the door for significant investments.”

Liquefied Natural Gas (LNG) is produced by cooling natural gas, predominantly methane, to approximately -160˚C, which both allows it to be stored without additional pressure and reduces its volume by 600 times, in turn allowing for safe transportation.

An extremely cold, colourless, odourless and non-toxic liquid, it is then stored in specially designed onshore tanks and transported to the international market via specialised vessels, again designed specifically for handling the very cold LNG. Its reduced volume means that, in this form, it is a supremely economical method of transporting large volumes of natural gas over long distances by ocean-going carriers, which once shipped to its destinations around the world is then warmed or ‘re-gassified’. It can then be transported by existing pipelines

PAGE 34

and used as a clean and safe gas as fuel for industry, electricity generation and in homes for heating and cooking. In large part thanks to growing natural gas demand in countries where domestic production has proven inadequate to cover local needs, the global LNG trade has grown at an annual rate of around 8% since the late seventies. At the outset, the vast majority of LNG was produced in Africa and Asia, while more recently additional production has come from the Middle East and Trinidad.

The United States and Europe are expected to support this substantial new LNG demand growth and supplement that currently coming from the largest consuming regions for LNG, which include Asia and Europe.

May 26th last year brought about a significant milestone in the project’s ongoing evolution, seeing the first LNG cargo leave Papua New Guinea and head to Japan.

This represented the first ever LNG to ever leave the country,

and marked its entry into the market as a global LNG player following a safe and successful start-up to the project.

This landmark cargo was bound for Tokyo Electric Power Co. Inc. (TEPCO), and Peter Graham emphasised just how historic this moment is for PNG as a whole: “This is the country’s largest resource project and it has taken the effort of many thousands of people to bring it to fruition. With the support of government, our coventurers and the local community, we are proud to celebrate the safe completion and first cargo from the PNG LNG Project.”

“The PNG LNG Project has created significant, long-lasting benefits for the country” Here Graham touches on the scale of the achievement, and it is this same holistic support which has proved integral to the Project’s completion, which came ahead of schedule. It positions Papua New Guinea as a resource-rich nation perfectly placed to deliver natural gas, and to make a notable contribution to meeting the longterm growing demand of Asian markets.

“Revenue from the PNG LNG Project will support Papua New

PNG LNG Guinea’s continued economic and social development,” continued Peter Graham in a statement, “and the PNG LNG Project demonstrates to the world what Papua New Guinea is capable of delivering.” his first shipment is expected to arrive in early June, according to JX Nippon Oil & Gas Exploration Corp, and has been earmarked for use by those thermal power plants operated by Tokyo Electric Power Co. In addition to its commencement ahead of schedule, Exxon Mobil Corp. also reported midway through last year that the plant was operating at full capacity, again some months ahead of schedule.

This was a milestone it had not expected to reach before the year’s end, and its coming just three months after starting production shows exceptional performance by comparison with similar international LNG projects. This run of successes is made all the more remarkable by the extent of the challenges faced by the project’s chief developers in its early stages, the overcoming of which all lends weight to the idea that this could be the first of many similar undertakings.

Senior Project Manager, YowYeen Lee, labelled the terrain and weather some of the most challenging and wettest he had yet to see, and among such difficulties was the issue of flooding. There was also minimal pre-existing infrastructure, while extremely steep slopes were further key obstacles that were conquered in construction. In addition to these, pipes had to be airlifted in some areas because the soil could not support heavy machinery, while a lack of infrastructure meant supplemental roads had to be constructed, along with communication lines and even a new airfield.

NAMING CEREMONY Built to carry approximately 172,000 cubic metres of LNG, the PNG LNG Project’s first custom-built ship was officially named in a ceremony at Hudong Shipyard in China in January this year. The carrier, Papua, was built by HudongZhonghua Shipbuilding Group, and will be operated by Mitsui O.S.K Lines on behalf of ExxonMobil PNG Limited, with delivery to Papua New Guinea expected in early 2015.

It will work alongside three other dedicated carriers, all of which will ship LNG for the PNG LNG Project to customers in Asia, with EMPNG Managing Director Peter Graham congratulating Hudong on this landmark construction in a recent statement: “We are pleased to be celebrating another milestone with the naming of the Papua, the first custom-built ship for the PNG LNG Project,” he said.

“This is a demonstration of the project’s ongoing success.” Peter Graham also speaks candidly of his intentions to build on the notable success the project has thus far enjoyed, with a number of new sources of gas under scrutiny for development. “Obviously there is a lot of work to be done to prove up reserves, and that takes some time. Typically there is drilling involved and then certification of the reserves once the drilling results are in, engineering studies and the like so it does take a number of years to get to the stage where we will have another train complete. But we are optimistic and we have a very active program underway to move expansion plans forward as fast as we practically can.”

PAGE 35

Power through adversity Editorial: Harriet Pattison

The tragedy of the Evangelos Florakis naval base blast in July 2011 on the island of Cyprus will forever be remembered but now, almost four years later, it will be the sheer determination and strong workmanship of the Electricity Authority of Cyprus which will power through. With the Vasilikos Power Plant, severely damaged in the accident, now fully operational, the EAC has proved that through darkness, always comes light…

Perhaps not surprisingly, electricity in the rural countryside of Cyprus was virtually non-existent up until the 1950’s. But, in 1952, with the establishment of the Electricity Authority of Cyprus (EAC), electrification began to spread with previously owned generators within the villages and towns decommissioned.

It is estimated that in 1952, only

PAGE 36

20 000 consumers were in fact connected to the electricity network, however just over a year later, this number rose dramatically to 38,000 and with the establishment of the Cyprus Republic in 1960, this figure rose once more to 80 000 consumers.

Travelling back to 1903 to when Cyprus’ very first source of energy was introduced – the installation of a power

generator – by the British colonial government to assist with the needs within the capital of Lefkosia, a second generator, installed within the Lefkosia General Hospital, soon followed.

It is thought that the country’s very first electricity company Electrofotistiki Eteria Lemesou (The Limassol Electric Light Company) began operating a power station with

Electricity Authority of Cyprus

generators from 1912 but as with all new changes, very few Cypriots were to start using electricity until much later.

Once the supply of electricity became far more readily available to the rural villages and towns, with the help and guidance of the EAC, the numbers inevitably began to rise and by 1954, there were 11 villages all connected to the electricity network with 100 consumers connected by 1960.

In 12 short years, EAC had significantly lifted the standards of living for Cypriots, supplying electricity to the surrounding built up areas on the island. Between 2002 and 2009 alone, the number of consumers connected to the electricity supply rose from 394 000 to 512 000.

THE VASILIKOS POWER PLANT Situated 28km East of Lemesos, work for the Vasilikos Power Station began in 1997 with the first phase coming online in the early 2000’s. This comprised of one gas turbine unit with a capacity of 38MW and two ABB steam turbine units each with a total of 130MW. The second phase included a single steam turbo-generator of 130KW which came online a few years later in 2003.

The fourth unit consisted of two gas turbines with one steam turbogenerator and using combined cycle technology, its capacity reached 220MW. Work on the fifth unit was under construction, when, in the early hours of July 11th 2011, an explosion at the naval base, Evangelos Florakis, on the Southern coast of Cyprus could be heard from over 30 miles away on the island. Involving over 2,000 tons of munitions, 13 people were killed with dozens more injured. 12 months of regular power cuts ensued with rolling blackouts initiated in order to conserve supplies.

Damage to the island’s main power plant, Vasilikos, was detrimental but restoration began just three months later in October 2011.

With Cyprus assuming Presidency of the council of the EU on 1st July 2012, it was essential that works and repairs to Vasilikos were started and completed within a tight timeframe but by the summer of 2012, the electricity units 4 and 5 were fully functional. And by summer 2013, units 1, 2, 3 with a combined total power of 400MW, were fully functional too.

By August 2013, just two years after the blast had destroyed it, Vasilikos was back to full operation.

With unit 5 under construction at the time of the accident, repairs began in 2012 with turbines installed in June and July respectively and a steam unit installed the following November.

The design elements of units 4 and 5 are very similar, both made up of three engines and two turbines, each with 75MW of power and a steam unit which in turn produces a further 70MW. Each unit produces a total of 220MW. Units 1, 2 and 3 are all steam units which produce 130MW each but now, after restoration, they can use natural gas in addition to the fuel gas they would run on originally. Both units 4 and 5 were always scheduled to run on natural gas as part of new investment plans for natural gas usage and from 2016, the three steam turbines at Vasilikos will shift from heavy fuel use to natural gas.

Following the blast at the naval base, the EU estimated that the cost of the accident could be as much as 10% of the country’s economy but the total repairs of the power plant came in dramatically under

the estimation at €165 000 million as oppose to the €300-€700 million prediction.

Alongside the rehabilitation of the units at Vasilikos, a desalination plant was also implemented. Planning initially started in 2009 following an agreement between the EAC and the Water Development Department with construction starting in 2010 by IDE Technologies Ltd. Following the accident, a credibility test for the plant was initiated in July 2013. Over the course of 15 days, a staggering 875,000 cubic meters of desalinated water was produced which, with a value of €720 000, was directed to the Southern Conveyor Project. The desalination unit has the capacity to produce up to 63,000 tons of water every single day when needed.

A RENEWABLE FUTURE? With no indigenous hydrocarbon energy sources, Cyprus relies heavily on imported fuels, like crude oil, for its power generation. The primary

PAGE 37

fuels the country imports is gasoil and heavy fuel oils but with Vasilikos back up and running from 2013, Cyprus is now concentrating heavily on natural gas generation.

Renewable energy is set to be a big part of the future for Cyprus with national targets to ensure that the share of energy produced from renewable energy sources reaches at least 13% out of the gross national total energy consumption by 2020.

The EU’s energy policy is one step ahead, setting out a clear strategic objective to achieve at least a 20% reduction in greenhouse gases by the year 2020, a vast improvement to the 1990 levels. The EU wants to achieve maximum CO2 emissions reduction from power generation plants, such as those operating in Cyprus today.

Of course, the positive effects of renewable energy sources are evident and so the Cyprus

PAGE 38

“The degree of consistency and industriousness shown by EAC’s personnel under these difficult circumstances are powerful guarantees of support for EAC”

Government has started to launch a range of financial measures to help with the renewable objectives through government grants and subsidies. It is hoped this backing will help to promote the benefits of renewable energy sources as a reliable alternative and will help to provide a strong support and incentive base within the country.

Wind energy, biomass and solar energy are the key renewable energy sources which will be promoted for integration into the country’s power system to help towards a reduction of global warming and of the current climate change phenomena.

2013: A YEAR OF CONTINUAL POWER SUPPLY Looking back to 2013 and the Electricity Authority of Cyprus certainly showed noteworthy workmanship, immense

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strength and cooperation; providing an interrupted supply of electricity whilst successfully completing the incredibly difficult challenge of restoring the Vasilikos Power Station after the blast of 2011.

In the company’s 2013 Annual Report, newly appointed Chairman, Othon Theodoulou explained: “In 2013, EAC proceeded to complete a number of significant infrastructure projects concerning both Generation and Transmission/Distribution with the aim of ensuring the uninterrupted supply of electricity throughout Cyprus.

“The most important project for EAC in 2013 was the completion of

and the project showed once again how, in difficult times, the Electricity Authority responds in record time, making the whole EAC family proud of its achievement. With the return to operation of all the Units at Vasilikos Power Station, its installed capacity is now 868 MW.” In addition to the restoration works on the Vasilikos Power Station, the EAC also continued the implementation of its operational programme, providing full maintenance of the existing Dhekelia and Moni Power Stations.

The Dhekelia Power Station, with an installed capacity of 460 MW generated 1 690 810 MWh in 2013

All remaining conventional generator units of the Moni Power Station, units 3, 4, 5 and 6, each 30MW nominal capacity each, were also decommissioned in October 2013.

Writing in the 2013 Annual Report, Dr. Stelios Stylianou, General Manager, explained the additional completed works the EAC carried: “During the course of 2013, the installed capacity of the Transmission Substations increased by 229.5 MVA (Megavolt amperes) following significant work carried out on completing and operating vital transmission substations. In June, the 132-22-11kV Stroumbi Substation was energised,

work on rebuilding Vasilikos Power Station which, as we all know, was almost totally destroyed on 11 July 2011 as a result of the explosion at the Evangelos Florakis Naval Base. The ‘small miracle’, as many experts have aptly described it, took just two years

which corresponded to 42.9% of the total electricity generated from the Authority’s Power Stations. Dhekelia also exported 1 609 307 MWh during the same period, corresponding to 42.7% of the total electricity exported from EAC’s Power Stations.

interconnecting the Anatoliko and Polis Substations.

“In October 2013, the Athienou 132/22-11kV Substation interconnecting the Free Industrial Zone (FIZ) Substation and the new GIS type 132kV Dhekelia Substation

PAGE 40

Electricity Authority of Cyprus was energised. At the same time, upgrading and/or dismantling work took place on the 132/11kV Moni and Latsia Substations and on the 66/11kV International Airport, Pyrgos and Pyla Substations.

“In 2013, important work was carried out on overhead power lines and underground transmission cables, including the 132kV Ypsonas-Trimiklini and the 132/11kV Athienou overhead lines, the dismantling of the 66kV Athalassa-Troulli-Dhekelia and MoniCement Factory transmission lines and the undergrounding of the AthalassaLatsia interconnection.”

Of course, it is the restoration of the Vasilikos Power Station, with an installed capacity of 868 MW, which has shown the EAC’s sheer determination and stands as a prime example of the company’s undeterred values.

In 2013, Vasilikos generated 2 243 261 MWh, corresponding to 56.9% of the total electricity generated from the Authority’s Power Stations and exported 2 156 953 MWh, relating to 57.2% of the total electricity exported.

An impressive undertaking, especially to complete within a two year timeframe, Dr. Stylianou explained much of the repair success of Vasilikos can be attributed to EAC’s dedicated personnel team: “The major endeavour that the Organisation began in July 2011, following the destruction of Vasilikos Power Station as a result of the explosion at the Mari naval base, was concluded in 2013. The exertions that each of us made from our own particular post enabled the Authority to show once again the important role it plays in society and in the country’s economy.

“The huge effort, the coordination of tasks, the undertaking of the multiple works to repair the damage to Vasilikos Power Station and the excellent cooperation between EAC and all the relevant bodies led to the successful

completion of the project. The final cost of rebuilding Vasilikos Power Station was approximately €165 million, in other words half the optimistic estimate (€330 million) quoted by European experts who had studied the amount of damage.

“The degree of consistency and industriousness shown by EAC’s personnel under these difficult circumstances are powerful guarantees of support for EAC in the even more difficult conditions that are being created in the new competitive environment in which the organisation is called upon to operate.

“In early June 2013, Steam Electric

Units 1, 2 and 3 were delivered by the project contractor and brought into commercial operation, while in mid-July 2013 Unit 2 was also brought into commercial operation, thereby completing the full restoration of the power station which will now have an installed capacity of 868 MW,” Dr. Stylianou concluded.

Despite the troubles the EAC and Cyprus have faced, it seems that with another successful year behind it, 2015 will be an even better one and will continue to ensure Cypriots, in the words of the EAC, are offered ‘a life filled with light and an everyday reality filled with energy.’

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PAGE 41

Celebrating a successful first year Editorial: Rosie DeWinter

With a sound vision to become a major participant in the deep-water jack-up drilling market, delivering a high level of drilling efficiency, Blue Ocean Drilling signed agreements with Shanghai Waigaoqiao Shipyard in January and October last year for the construction of four Gusto MSC high specification jack-up rigs, due for delivery starting in the second quarter of 2016. Total World Energy speaks to CEO and Chairman, Dr. Yuanhui Sun, to discuss what he attributes the company’s success to so far…

Head-quartered in Houston, Texas, Blue Ocean Drilling has made waves in the offshore industry since its inception just over a year ago. Not long when you consider what it has achieved and the relationships it has formed.

PAGE 42

Registered in the Cayman Islands, Blue Ocean Drilling set up its US Company with its Executive Management team based in Houston, Texas shortly afterwards, with a business development office now in the UAE.

The company’s core business - to provide high specification deepwater jack-up rigs to the global offshore upstream marketplace – has a strong client focus approach, one which has been instrumental in the success it has already shared since

Blue Ocean Drilling inception. Its mission is on delivering and ensuring safe, environmentally focused operations to its clients, upon which Blue Ocean Drilling is looking to grow its fleet of offshore drilling rigs.

PROVEN DESIGN - PROVEN EQUIPMENT With numerous contracts underway and options for more in the pipeline, Blue Ocean Drilling remains dedicated to both the management and operation of growing its fleet for the offshore industry.

Due to receive its first jack-up rig early next year, Chairman, President and CEO, Dr. Yuanhui Sun, explains the importance of timing and location, especially for a start-up company like Blue Ocean Drilling: “We are contracted for delivery in the second Quarter 2016, with the subsequent three units coming out every six months thereafter. We have targeted certain markets based

upon internal Company strategies and criteria, but we also recognize we are a start-up company and with that will look at every opportunity wherein it could afford us the opportunity to contract our unit(s) in advance of their delivery from the shipyard.”

Helping to place Blue Ocean Drilling in a reputable position, the company entered into an agreement with Shanghai Waigaoqiao Shipyard (SWS) in China, for the construction of its new fleet of four jack-up rigs for the offshore industry.

Founded in 1999, SWS is located along the mouth of Yangtze River and is a wholly owned subsidiary of China CSSC Holding Ltd. Covering a huge area of five million square meters with waterfronts of four kilometers in total, the SWS facility contains four outfitting quays, two dry-docks, three 600-ton gantry cranes, one 800-ton gantry crane, seven blasting workshops and nine

painting workshops, all within its yard in China.

With such an impressive location and extensive facilities at its yard, Dr. Sun explains why Blue Ocean Drilling decided on SWS as its contractor of choice for this project: “The company did a thorough review of the shipyards of China that have experience in the offshore rig building sector and the selection of SWS was a result of this survey and review process. SWS’ commitment to state of the art facilities, extensive engineering department, commitment to use of automation in many of the critical areas of the steel work, which contributes to highly accurate and consistent components; all had a part to play in our decision to build all the rigs at SWS.” Practising with an industry recognized design, the four Gusto MSC jack-up rigs (two CJ 46 and two CJ 50 units), will be fitted with

PAGE 43

proven equipment from an industryleading manufacturer and based on years of offshore operating experience. EVP Operations, Tony Beebe, with the support of Blue Ocean Drilling’s engineering team, has included improvements for operating efficiency to ensure the ever growing and complex well designs and needs of the international offshore market are met to the highest standards.

Equipped with NOV Drilling, Well Control and Mud Systems, the jack-up rigs will also come equipped with Caterpillar power systems.

The initial two units will be delivered with accommodation providing for 120 people with the third and fourth units providing for a capacity of 150 persons on board.

The deep-water jack-up rigs will be capable of drilling to 30,000ft well depth and can operate in water depths of up to 375ft on the CJ 46 design and 400ft on the CJ 50 design in harsh environment settings. In May last year, the keel

PAGE 44

laying ceremony for the Blue Ocean I jackup-rig was conducted at the Shanghai Waigaoqiao Shipyard in China with the second unit’s keel laying for Blue Ocean II taking place in October.

Already working on innovative and industry leading designs, Blue Ocean Drilling is now looking ahead to further gain opportunities and use of strategic decision making to build its rig fleet over the coming years: “Right now our focus is on delivery of highly efficient, high specification drilling units utilizing industry leading designed rigs (Gusto MSC) with industry leading equipment (NOV drilling packages and Cat Power Systems) on time and on budget; but we do recognize the unique opportunities that the current markets present and with our stakeholders will look at opportunities that can generate added value to our strategic vision of the Company.

“Our aim is to use efficiency and a sharp attention to meeting our

client’s needs to assist them in being a better Operator on their respective projects,” explains Dr. Sun.

INVALUABLE EXPERIENCE A highly esteemed member of China National ‘Recruitment Program of Global Experts (1000 plan)’, Dr Yuanhui Sun, Ph.D., P.E., has over 26 years of invaluable experience with the energy sector with a special focus on the offshore sector.

Prior to joining Blue Ocean Drilling, Dr Sun worked for Noble Drilling Corporation, upholding various positions including; Director of Business Development-Asian Operations, Chief Representative in the greater China region and Principal Engineer in addition to various technical and management positions for the company, including a major role in deep-water semisubmersible conversions and new build deep-water drilling unit projects.

Dr. Sun’s range of experience spans yet further, serving as

Blue Ocean Drilling

The relationship between GustoMSC and Blue Ocean Drilling dates back into 2013 when Blue Ocean Drilling first contacted GustoMSC on its deepwater jackup rig design. In fact, Blue Ocean Drilling Limited’s utilized the plan to construct two GustoMSC CJ46-X100- D, XY cantilevered jack-ups to provide drilling services for the offshore oil & gas industry. Our cooperation in the customization of the design to Blue Ocean Drilling requirements resulted in the Blue Ocean I and II, presently under construction at Shanghai Waigaoqiao Shipbuilding in Shanghai, China.

These two 375ft water-depth drilling units are on schedule for delivery in 2016. In addition to the contracting of these two jack-ups, options were extended for Blue Ocean Drilling’s fleet expansion based on the GustoMSC design CJ50-X120-G, which is a larger and greater water depth capability jackup with modification to expand the accommodation package for 150 persons. The first of these options for two GustoMSC CJ50-X120-G XY cantilevered jackups was exercised in September 2014, with these units scheduled to deliver starting in the first half of 2017, with the possibility of more to come.

Blue Ocean Drilling recognized the benefits of the GustoMSC designed jackups, and look to provide those benefits to oil & gas companies. We were proud to be the designer they selected with which to enter the offshore jackup drilling market.

Our successful cooperation continues as we work on the customization of additional designs for future projects. GustoMSC is looking forward to working with Blue Ocean Drilling Limited on their continued expansion into the offshore drilling jackup market.

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PAGE 45

General Manager of TSC Offshore Corporation, VP and Chief Technology Officer of TSC Group Holdings and President of the TSC Group Offshore Engineering Research Institute in China.

A registered Professional Engineer in the state of Texas, Dr. Sun obtained his Ph.D. and M.S. in Civil Engineering from Rice University and holds a B.S. in Engineering Mechanics from Tsinghua University in Beijing, where he spent three years as an assistant professor.

A SUCCESSFUL FIRST YEAR They say that the first few years of a new business are the hardest, especially given the competitive nature of the offshore industry, but Blue Ocean Drilling recognises these challenges and has found ways in which to avert and overcome them, all with a firm focus on the client’s needs in delivering an efficient and cost-effective service.

“We are focusing our goals on the alignment with our client’s goals.

PAGE 46

Being all about the customer’s total daily spread costs and how we can conduct our business to help them to lower these costs; delivering more revenue efficiency for each dollar spent.

“We recognize we have a stiff challenge ahead of us,” Dr. Sun explains, “but we look to provide assets that we have taken steps to deliver off-line operating and efficiency tools that we will look to work in concert with our clients to lower their Total Daily Spread Costs, helping them to deliver more cost efficient projects and value to their shareholders.”

Although it seems strange to look ahead to the future for a company that still has so much to focus on at present, Blue Ocean Drilling is in no doubt what the focus will be for the foreseeable future at least: “Our focus in the next two to three years is to bring our rigs out of the shipyard on time and on budget using a rigorous QA/QC oversight

of the shipyard’s construction process to ensure that the rigs are able to perform at a high level of efficiency from the start to meet the expectations of our clients.

“In addition we shall be focused on establishing and implementing our management systems and recruitment of key staff and rig based positions so that we are able to put them through the extensive training and certification programs that Blue Ocean Drilling will have for all of its senior and key junior staff (both onshore and rig based staffing).

“Each day we strive to find ways to make ourselves more effective, efficient while being less intrusive on the environment. Our focus on greener business is in line with the growing issues and we feel like we shall be well positioned to comply with these expanding guidelines, which we trust will be aligned with the goals and standards of our future clients,” concludes Dr Sun

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PAGE 47

Total working gas capacity = 9.0 bcm Editorial: Rosie DeWinter

Certainly two of the most important characteristics of an underground gas storage facility are the capacity to hold natural gas for future use and the rate at which this gas can be withdrawn. E.ON Gas Storage GmbH has a total working gas capacity of 8.8 billion cubic meters (bcm) in Germany and Austria and if you include its subsidiary in the UK, the total available across Europe reaches a staggering 9.0 bcm. Total World Energy speaks to Managing Director, Dr. Peter Klingenberger who explains the importance of the company’s current projects and resolving the issues surrounding security of supply…

Speaking at the European Gas Conference last year in Vienna, General Secretary for CEDIGAZ, Geoffroy Hureau explained that across Europe, there were 130 underground gas storage facilities (UGS) with a combined capacity of 99 bcm and a withdrawal rate of an estimated 2 bcm a day.

W ith 100 members located in

PAGE 48

40 countries, CEDIGAZ keeps a database on UGS and has been operating as an international reference source of fundamental gas data since 1961.

Since its last report, 13.5 bcm of new capacity has been commissioned via 15 new facilities in addition to further expansion on existing underground storage sites.

“While the storage capacity increased by 60% since 2008, gas demand increased by 8%, so it’s quite paradoxical but you have to consider the long lead time on these facilities to build new UGS. The decisions to build these were taken in the first half of the last decade,” Hureau explained in a statement.

E.ON Gas Storage GmbH One of the key industry players in UGS is E.ON Gas Storage GmbH. A subsidiary of E.ON Global Commodities SE, it became commercially operational at the end of 2008, following the unbundling regulation of the EU that was then followed by national law, which took all the storage facilities of the former E.ON Ruhrgas AG into account.

E.ON Gas Storage currently has 14 underground storage facilities at 12 locations in both Germany and Austria in addition to its UK facility, Holford, which is located in Byley, Cheshire.

Storage facilities not only help to ensure security of supply but act as an indispensable link between the almost constant gas supply from producer countries and the inevitable seasonal fluctuations in demand.

A WISE DECISION “With more than 20 storage operators in Germany, competition is inevitably significant,” explains Dr. Peter Klingenberger, Managing Director and Chairman of the Board of Management at E.ON Gas Storage.

“I can’t see a more transparent competitive option than what we offer here,” he says. “We offer storage products which customers can book in without asking us beforehand. We use an internet platform for auctions and customers can make a bid if the price and the service are right. So we can’t do it more openly without influencing the booking behaviour of our potential customers,” explains Klingenberger.

“You are obliged by law to have that level of transparency but we take it further. We believe that to be the largest storage operator we have to be one or two steps

ahead of legislation and say, ‘How would a market function?’

So that means full transparency, non‐discriminatory procedures and also booking procedures that are not influenced by anyone. On these three points, it goes above what the regulatory requirement is. I think we are then in a good position to be the market leader and be ahead of the legal steps, so it’s a wise decision to do that.”

KEY DEVELOPMENTS The flexible underground gas facility in Cheshire, which now comprises of eight caverns, each measuring 100m x 100m, helps to ensure the demand of UK customers are met on a daily basis. With a staggering 184 million cubic meters (mcm) of working gas capacity, Holford has a maximum injection and withdrawal capability of 22 mcm a day. With these fast rates, the

PAGE 49

facility can cycle its full capacity in under one month, labelling it as one of the most flexible gas storage units in the UK. Helping to sustain the supply‐ demand balance, the capacity at Holford is certainly impressive, equivalent to half of the UK’s daily average gas demand.

Fully operational since February 2013, the Holford storage facility assists with gas transportation in and out of the UK’s National Transmission System and helps to make up for the decline in gas production in the UK which is decreasing at an estimated rate of 7% each year.

For the first five years, 100% of the storage capacity from all eight caverns at Holford will be utilised by Noble Clean Fuels Ltd with E.ON Gas Storage providing the safety and maintenance of the facility.

PAGE 50

7FIELDS PROJECT Klingenberger explains that from the beginning of January last year, E.ON Gas Storage began working on a cross-border concept with connections running to both the German and Austrian grid.

The 7Fields project will help to enhance supply security in Austria and Germany. It is a joint venture between Rohöl-Aufsuchungs Aktiengesellschaft (RAG) and E.ON Gas Storage.

The first stage of the project began in 2009 and was completed in April 2011 with the second stage beginning in April last year, increasing the working gas capacity by 685 mcm. Built on several former natural gas reservoirs, it stands as a unique project in Europe.

“We have a cross border connection from Austria to Germany where we have our 7Fields project north of Salzburg,” Klingenberger

explains. “A cross-border concept, this storage facility is sending gas in both directions, giving a lot of flexibility, especially to our customers while guaranteeing a higher security of supply in both Austria and Germany. We have commissioned the second expansion stage which was completed recently. It will give a total working gas volume of 1.73 bcm, which is almost one third of the total UK capacity.”

‘PROJECT OF THE YEAR’ The Etzel storage site in Northern Germany, completed in 2012, was nominated for ‘Project of the Year’ at the European Gas Conference 2013.

Helping to ensure security of natural gas supply in Europe, since its completion, natural gas has been flowing into the underground salt caverns, with more than 1 bcm injected into

E.ON Gas Storage GmbH storage as of January 2014.

Klingenberger explains that with 19 caverns – the last of these de-brined last autumn – “It is now fully operational, with almost 2 bcm of working gas volume.”

An impressive project, it took more than 6,000 employees two million working hours to produce such a notable working gas volume.

A huge advantage of the site is its proximity to three different market areas in Germany and the Netherlands. But Etzel will also take on a more important role for supply security and the transformation of Europe’s energy systems with a greater use of wind and solar power.

Today, Etzel stands as one of the largest cavern storage facilities with an estimated

investment of more than EUR 1 billion.

THE WIND GAS PROJECT A development located in Brandenburg is E.ON’s power‐ to-gas unit, the Wind Gas Falkenhagen Project. Using wind power to run electrolysis equipment, the unit breaks down water into hydrogen and oxygen.

The hydrogen is then injected into the regional gas transmission system and becomes part of the natural gas mix used in a number of applications including industrial processes, mobility, space heating and power generation.

“Wind Gas Falkenhagen has been in operation for 18 months,” explains Klingenberger. “It was fully engineered by us. It has linked the electricity grid with the gas grid and also connected electricity with

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PAGE 51

the customer.

The biggest customer to buy the hydrogen from us is SWISSGAS AG who are also our project partner.”

With two megawatt capacity, the unit in Falkenhagen can produce 360 cubic meters of hydrogen every hour.

“Now, the Wind Gas Hamburg Project will take it further because this is a modular concept with a new type of electrolysis unit, which is very small.

It has a capacity of one megawatt and could be used as a modular package in case you want to build a bigger plant using the equipment we are now testing in this project,” Klingenberger adds.

The development of a very efficient electrolyzer, using the Proton-Exchange-Membrane (PEM) method as opposed to conventional alkaline electrolysis, would offer distinct advantages for the power-to-gas approach.

A SUCCESSFUL TRACK RECORD Looking to the future Klingenberger stresses the

PAGE 52

importance of the new Battery Storage System (M5BAT): “It is a big project. We are testing grid stability and also the commercial part of feeding back into the system.”

Backed by an estimated €6 million grant from the German Federal Ministry for Economic Affairs and Energy as part of its ‘Energy Storage Funding Initiative’, this will be the world’s first modular large-scale fivemegawatt battery storage system.

Coordinated by RWTH Aachen University, the project will be built in Aachen, Germany.

In addition to the M5BAT project, Klingenberger underlines the continued importance and value of gas storage customer needs to the company: “We have our own department dealing with products. From the standard bundle unit that was the basis for all storage products, we have developed a variety of products tailored to our customer’s needs.

We put these products on the

internet so they are available for everybody to book. This is a constant process where we try to anticipate customer’s needs.

We have a range of customers with variable storage capacity needs, so we provide different solutions that follow their different rationales,” he explains.

Klingenberger attributes much of the company’s success over the years to its overriding dedication to customers and to its impressive safety record: “I believe it’s our complete customer orientation and the external view on what the market may need, and meeting the customer’s specific requirements,” he explains. “Then, there is the expansion towards European markets and internationalisation.

Since we have all functions in-house, we have managed to complete all our projects in the last six years to budget and to schedule. We also have a great project management team.

“In all our projects we always adopt a safety-first approach. We believe there is no project that is ever worth personnel getting hurt.

We really stress the HSEQ issues and were quite happy last year to record only one minor incident across our business, so we have a good track record.”

A growing and prominent issue, Klingenberger underlines the importance of tackling the question of security of supply: “A particular problem we are faced with in Germany is nobody seems to be responsible for security of supply – so nobody has the obligation to supply gas in case of an emergency.” He explains that it is critically important to know who is responsible in case of outages or interruptions, whether due to political or weather issues.

E.ON Gas Storage GmbH A RENEWABLE FUTURE “I believe, and this is probably much forgotten, that any emissions from gas are significantly lower than from fossil fuels like coal. We see gas as a real future technology complementing renewables, that’s the green part we play and we are very flexible with that also. “ “Remember that we have hundreds of thousands of kilometers of gas pipelines in Germany and Europe; storing energy in these pipelines and in gas storage facilities is very much like to storing electricity in batteries. That is why we

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“We see gas as a real future technology complementing renewables, that’s the green part we play and we are very flexible with that”

are working on the conversion of electricity to gas which we believe is a future solution to the new world of the renewable energies.

“As one of the largest European gas storage companies, we are committed to progress and to promoting activities in the field of technology and innovation.

We want to develop innovative technologies for the transportation and storage of energy and show once more that sustainability is the key to the future,” Klingenberger concludes

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In the latest project “Etzel – Statoil Deutschland GmbH / E.ON”, Bertschenergy delivered 6 adsorbers in cooperation with Silica Verfahrenstechnik GmbH. Each of the adsorbers is designed for a pressure of 85 bar and temperatures ranging from -40°degrees Celsius to + 320° degrees Celsius. The diameter of the adsorber is 3.6 m at a total height of 12.5 m. The wall thickness is 92 mm and the weight approximately 100 tons.

With a strong and dedicated team of highly competent and innovative engineers, BERTSCHenergy is committed to designing and delivering boiler plants and systems of superior quality, efficient per formance and operational sustainability, tailored to the specific technical requirements of each respective customer.

Bertsch energy is proud of the good cooperation with Silica Verfahrenstechnik GmbH and E.ON Gas Storage GmbH / Statoil Deutschland GmbH and is looking forward to upcoming projects.

   

 Solid fuel boiler plants: Electricity and heat from biomass Combined-cycle/cogeneration HRSG: Electricity and heat from gas and oil Waste heat recovery boilers: Steam from waste heat in industrial processes Process heat recovery systems and pressure equipment: Steam, heat and equipment for process plants Service: Operational support, maintenance, modification, modernisation, upgrading

Josef Bertsch Gesellshaft m.b.H & Co KG. Herrengasse 23, A-6700 Bludenz, Austria T: +43 5552 6135-0 / E: bertschenergy@bertsch.at www.bertsch.at

PAGE 53

World Leaders in Oil Services Editorial: Ajuanne Payne

Saipem S.p.A. is an Italian world-leading EPCI oil services provider that has been dominating the market for more than five decades. Operating in over 60 countries with 48,000 employees and revenues of close to €13 billion - Saipem is a giant in the oil and gas sector, with capabilities encompassing procurement, pipeline engineering, construction and project management for major global projects.

Saipem S.p.A. (Società Anonima Italiana Perforazioni E Montaggi) has a long and successful history as an oil services provider and contractor to the oil and gas industry. Originally founded in 1957 through the merger of Snam Montaggi and SAIP, Saipem started life as a services provider for Eni – who still own a 43% stake in the company today.

Providing comprehensive engineering, procurement, construction and installation services, Saipem’s proficiency is expansive in all areas

PAGE 54

of onshore and offshore production – handling diverse pipeline, FPSO, platform and deepwater subsea development projects.

After previously focusing on plant construction, drilling and onshore pipelaying, in the 1960’s Saipem began operating offshore. It was towards the end of that decade that the company also started operating autonomously of Eni, working on projects for clients who were not part of the Eni Group.

The Mediterranean was the location for the beginnings of Saipem’s

operations offshore, which eventually expanded to the North Sea by 1972.

Following its rapid growth and lucrative expansions, Saipem’s client list today boasts nearly all major independent oil and gas companies worldwide.

STRATEGIC INVESTMENT Towards the end of the 1990’s the company started to move, along with the global markets as a whole, towards deepwater prospects for offshore drilling - putting in place an investment and growth plan in order

Saipem S.p.A. to further cement its leading position in the industry.

This investment plan is a significant contributing factor to Saipem’s market dominance today, and involved concerted investment into deep water field development, pipe-lay, deepwater drilling, leased FPSO and subsea robotics.

Parallel to this was the company’s move towards projects in developing countries and the utilisation of local resources. Saipem recognised that, in order to ensure long-term success, as a company they needed to boost local content in their areas of operation. They were one of the first to put in a concerted effort in this area – developing key facilities in the Middle East, West Africa and the FSU and employing a significant number of locals.

Today, Saipem can boast 29 engineering and project execution

offices worldwide and 11 fabrication yards in five continents. Locally, they have had a hand in the building and design of almost all of Italy’s pipeline network and has constructed over 100,000km of pipelines globally since inception.

Saipem’s investments into its infrastructure have also put it in the ideal position to meet the growing demand for fully turnkey EPCI projects for both onshore and offshore operations.

Naturally, for such a large organisation, a number of strategic acquisitions have played a large part in the exponential growth of the company. The largest crossborder acquisition in Europe in the oil services sector was Saipem’s purchase of Bouygues Offshore in 2002.

Following this, in 2006 Snamprogetti was purchased –

an engineering and construction company involved in the execution and design of large onshore hydrocarbon and gas monetization projects internationally.

An exceptional company such as Saipem is not created overnight – five decades of investment and growth have contributed to elevating the company to where it is today.

Saipem has a reputation for being able to tackle projects in the most remote areas in some of the harshest climates – in a time when companies are having to go further and drill deeper in their oil explorations.

Some of the company’s more recent investments – starting in 2006 following the acquisition of Snamprogetti, are in the areas that will service the increasing necessities of moving towards more inhospitable and difficult drilling projects.

The Scarabeo 7 undergoing her special periodic survey (SPS) during 2013/2014 at A-Berth in the Port of Cape Town, South Africa. DCD Marine Cape Town received an award from the Western Cape Provincial Government in recognition of the work performed on the project.

PAGE 55

It has invested heavily into expanding its drilling and construction fleet and other new technologies and assets designed to meet the challenges of oil and gas projects in very deep waters.

TECHNICAL CAPABILITIES The investments that Saipem have made along the way have enabled the contractor to adapt to changes in the market. Today, the company has an impressive fleet of construction vessels, drilling vessels and two FPSO’s, making a total of 54 vessels without counting the significant amount of ROV’s and construction units owned by the company.

The offshore drilling fleet alone is made up of seven deep water units, two drillships and five semisubmersibles. It is also made up of two mid water semi-submersibles, two modern high spec jack-ups, four standard jack ups and one tender assisted unit.

Going back to the beginning of Saipem’s offshore drilling fleet, the semi-submersibles, Scarabeo 3 and Scarabeo 4 were an answer to the demand for vessels that could handle mid-water operations in the 70’s. It wasn’t until Saipem seriously entered the deep water market in the 90’s that the company expanded its fleet further with the deep water semisubmersibles Scarabeo 5 and 6.

Scarabeo 5 and 6 mainly contributed to Saipem’s development of the North Sea, namely Norway, and are still in operation today in offshore drilling operations. Around the same time that Saipem expanded its presence into South America, Africa, The Middle East and Caspian areas it also further expanded its fleet.

The semi-submersible Scarabeo 7 joined the fleet in order to further service the company’s interests in deep and ultra-deep waters. The Scarabeo 8 and the Scarabeo 9 are PAGE 56

recent editions and bring the total to seven semi-submersible vessels out of a 16 unit drilling fleet.

LOCAL PARTNERSHIPS In the construction, repair and maintenance of its vast fleet, Saipem often adheres to one of its centralised values of using local expertise and facilities in the locations they are based. This core ethic of the company is one of the most important contributing factors to its success and strength over the decades.

One example of the kind of localised working relationship Saipem builds up is with South African engineering and maintenance company, DCD, who have worked on the service and repair of some of its Scarabeo vessels. More recently, DCD has completed maintenance work on the Scarabeo 7 semi-submersible, now deployed in Indonesia, as a direct result of a six year working relationship with the global giant.

This is just one instance of the types of relationships the company fosters in strategic areas to provide the infrastructure they need and to utilise local knowledge. As a result of its work with Saipem, the Cape Town company DCD actually won a local award for its hand in bringing over 1,000 jobs to the region – a mutually beneficial arrangement with Saipem and a story that has been repeated many times throughout the company’s operations.

THE ANGOLAN PROJECTS In April 2014, Saipem was awarded two key projects in Angola by Total which brings a total of US$4 billion into the company – almost a quarter of the revenue of the business for that year.

The first US$3 billion contract is for the engineering, procurement, construction, installation and commissioning of two converted turret-moored FPSO’s for Total’s

Kaombo Field Development Project, offshore Angola.

The Kaombo Field Development Project is an ultra-deep offshore operation that will contribute to the sustainable growth of Angola’s offshore resources and will be Block 32’s first development. Its final production capabilities are estimated to be around 230,000 barrels per day (bpd).

Saipem’s second contract is for a seven-year contract of US$1 billion for the operation and maintenance services of the two FPSO vessels.

The work will include the engineering, procurement, conversion of the tankers, fabrication and integration of the topsides and the installation of the turret mooring system. Once converted, the two FPSO’s will have a storage capacity of 1.7 million barrels of oil and a 100 million scfd gas compression capacity.

On top of this, the Kaombo FPSO project will also be managed by Saipem’s Floaters Business Unit, which is based in France. While the topsides will be fabricated in Saipem’s Karimun Island Yard in Indonesia, the conversion of the tankers and integration of the topsides will be undertaken at a shipyard in the Far East. All other activities will be completed locally in Angola and the first of the two FPSO’s will be operational at the beginning of 2017 – with the second unit to be finished later that year.

Commenting on the new contracts and their importance, Umberto Vergine, CEO of the company, said: “This contract is in line with Saipem’s strategy of pursuing growth opportunities in high complexity Floaters and FLNG construction in specific geographic areas, such as Asia Pacific and Africa, where the company can leverage its engineering capabilities, strong local content competencies and unique availability of fabrication yards.”

Saipem S.p.A. DCD Marine Cape Town is a safe, responsible shipyard with a recognised track record in providing innovative turnkey solutions to the upstream Oil & Gas sector.

SERVICING SOUTHERN AFRICA PORTS

DCD MARINE is a safe, responsible shipyard with a recognised track record in providing turnkey solutions to with the upstream Oil &track Gas sector.

DCD MARINEinnovative is a safe, responsible shipyard a recognised record in providing innovative turnkey solutions to the upstream Oil & Gas sector.

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Walvis Bay Walvis Bay

A-Berth, Port of Cape Town A-Berth, Port of Cape Town

Saldanha Bay Saldanha Bay

Services Include: Services Include: PROJECT MANAGEMENT PROJECT MANAGEMENT RIG REPAIRS & UPGRADES RIG REPAIRS & UPGRADES CONVERSIONS & MODIFICATIONS CONVERSIONS DRY DOCKINGS& MODIFICATIONS DRY DOCKINGS STEEL & PIPE FABRICATION STEEL & PIPE FABRICATION BLASTING & COATING BLASTING & COATING

Port of Ngqura (Coega) Port of Ngqura (Coega)

VESSEL INSPECTIONS VESSEL SUBSEAINSPECTIONS FABRICATIONS SUBSEA FABRICATIONS TRAVELING REPAIRS & SUPPORT TRAVELING REPAIRS &(SLM SUPPORT ON-SITE MACHINING AFRICA) ON-SITE RIGGINGMACHINING (SLM AFRICA) RIGGING MECHANICAL & PROPULSION REPAIRS MECHANICAL & PROPULSION REPAIRS

Beyond Expectations Beyond Expectations

www.dcd.co.za www.dcd.co.za

CBN_DCD001A5 CBN_DCD001A5

CAPE TOWN - Tel: +27 (0)21 460 6000 | Fax: +27 (0)21 447 6038 | Email: marine@dcd.co.za CAPE TOWN - Tel: +27 (0)21 460 6000 | Fax: +27 (0)21 447 6038 | Email: marine@dcd.co.za

Succeeding through SAFETY Succeeding through SAFETY

CBN_DCD001A5.indd 1

QUALITY QUALITY

www.dcd.co.za

ON-TIME DELIVERY ON-TIME DELIVERY 2014/02/04 9:35

CBN_DCD001A5.indd 2014/02/04 9:35 CAPE TOWN1 - Tel +27 (0) 21 460 6000 | Fax +27 (0) 21 447 6038 | Email: marine@dcd.co.za

Succeeding through SAfETy | qUAlITy | ON-TImE DElIvERy PAGE 57

CONTRACT WINS IN 2014 Two more major wins for Saipem in 2014 were for projects in Saudi Arabia and in Brazil – a total of US$4 billion in sales. Similarly to the Angolan contracts, these projects will be completed in 2017.

In Saudi Arabia, Saipem will be carrying out onshore engineering and construction activities for Saudi Aramco as part of the Jazan

Integrated Gasification Combined Cycle Project in South Western Saudi Arabia. This will be one part of Saudi Aramco’s Jazan Refinery and Terminal project – a power plant which will be the largest gasifierbased power facility in the world.

The scope of the work Saipem will be carrying out comprises of two packages that will cover the engineering, procurement, design,

installation, commissioning and start up assistance for two pipelines. The first package will be for the soot and ash removal unit, the gasification unit, the acid gas removal and the hydrogen recovery units. The second package will be for the six sulphur recovery unit trains and storage facilities.

In Brazil, Saipem will be working for Petrobras on an EPCI contract

DCD Marine Cape Town: Successful projects build a productive, long-term relationship with Saipem As a shipyard and turnkey engineering solution provider for the upstream oil and gas sector, DCD Marine Cape Town has a world-class track-record with a number of drilling contractors servicing the industry both in Cape Town and various ports in Africa.

The company has enjoyed an association with Saipem since the late 1990’s - a relationship which has been built up over years of successful project work. DCD Marine Cape Town, part of the DCD Marine Cluster, is proud of its track record of successful project delivery, and repeat contracts with prestigious drilling contractors such as Saipem. The relationship is a testament to DCD Marine Cape Town’s position as a leading provider of rig and vessel repairs, including project management services to the global oil and gas industry.

“DCD Marine Cape Town has a very transparent relationship with Saipem; and we have a strong focus on safety, quality and on-time delivery. Our respective project management teams share the same ethos and work extremely well together as partners to ensure successful and timeous project delivery,” says Gerry Klos, Managing Director the DCD Marine Cluster.

This partnership resulted in a joint award presented to both companies by the Western Cape Provincial Government in July 2014 in recognition of the recent work done on Saipem’s semi-submersible drilling rig, the Scarabeo 7. The project, the largest-ever rig project to have been completed in Cape Town, brought in excess of R1 billion to the province and created 1 193 jobs.

The Scarabeo 7 project of 2013/2014 came in the wake of DCD Marine Cape Town’s special periodic survey (SPS) of Saipem’s drilling rig, Scarabeo 3 in 2012. DCD Marine Cape Town has also successfully completed work on Saipem’s pipe laying barges Saipem FDS (2010) and Saipem 3000 (2010).

“DCD Marine Cape Town is strategically situated to service vessels active in the African oil and gas sector.

Our capacity to meet client requirements as well as our strategically located facilities and safety performance form a strong basis for future opportunities in SPS, modifications and upgrade project work,” says Deon Truter, Business Development Manager at DCD Marine Cape Town.

The fleet operating in the African oil and gas sector includes the Scarabeo 3 and Scarabeo 9 semisubmersible drill rigs, the Saipem 12 000 and Saipem 10 000 drill ships, the Saipem FDS, Saipem FDS 2 and Saipem 3000 pipe laying barges. These vessels will undergo SPS’s, dry dockings and necessary upgrades and modifications over the next few years.

“We thank Saipem for the opportunities afforded to DCD Marine Cape Town in the past; and we look forward to assisting them on future projects. Our capacity for service delivery and a mutual understanding of each other’s requirements bode well for future collaboration,” Klos concludes.

Kendal Hunt Managing Director Kendal Hunt Communications PR and Media Liaison Agency + 27 -11 462 6188 +27 - 82 823 6533 kendal@kendalhunt

PAGE 58

Saipem S.p.A.

for the Lula Norte, Lula Sul and Lula Extremo Sul Project in the Santos Basin Pre-Salt Region. The work will include the procurement, engineering, installation and fabrication of three offshore pipelines, with free standing hybrid risers and related terminations for the gas export systems.

For this project, Saipem will use the Saipem FDS2 for the marine activities and will use its yard in Guarujá for the fabrication of the subsea equipment and the risers system – expecting to have this completed by the end of 2016.

MARKET CHANGES AND STAYING ONE STEP AHEAD

contributed to the company’s resilience and growth.

Commenting on Saipem’s position at the end of 2014 and the near future, CEO Umberto Vergine states: “Overall, the sharp fall in the oil price has created uncertainty in the market, which will remain for as long as oil prices remain depressed. But the long term commitments we have secured to date should protect us from significant business fluctuations.

“In offshore drilling, we achieved fleet utilization in excess of 96% and for the remainder of the year utilization is expected to remain stable. During Q3 we signed new contracts for about one third of the fleet, mainly in Latin America, with

a good balance between onshore and offshore. In particular, we are seeing a growing LNG market in the Americas, alongside legacy projects in Asia Pacific. In the Americas, Saipem this year has applied an increased commercial focus compared to the past, in particular in downstream and major pipelines.”

The maximization of local content and the procurement and logistics strategy adopted by the company are the key elements of Saipem’s success. Other aspects – such as cementing their position in South America and the consistent development of new technologies, have ensured the company has

With current oil prices at an all-time low, Saipem has seen an impact and had to weather the storm as much as all the other major companies in the industry. Having a diverse offering and such a strong reputation for world-class delivery has definitely

durations ranging from three months to two years.”

“Saipem is targeting an increasing number of projects around the world. The opportunities shown are for a broad mix of clients and there is

been able to stay one step ahead.

They are one of only a handful of companies able to tackle the largest of EPCI projects in the oil and gas industry and are likely to remain in their leading position in years to come

PAGE 59

The pioneers of Brazilian Shipbuilding Editorial: Ajuanne Payne

INACE (Indústria Naval do Ceará), a family owned 100% Brazilian company and a national leader in building offshore vessels, yachts and navy patrol vessels. With over 900 vessels built over the past four decades and founded on one man’s pioneering spirit, the company has combined tradition with innovation to become the success it is today.

INACE (Indústria Naval do Ceará) is a shipbuilding company with a significant reputation in Brazil today, but the company’s beginnings are somewhat accidental. It was founded by current CEO, Gil Bezerra back in 1965 as a result of his personal interest in lobster fishing.

Bezerra had decided to design his own wooden fishing boat, having it custom-built by local carpenters. Once the boat was made, he received significant interest from local fishing companies, who started persuading him to have boats

PAGE 60

made for them also. In fact, demand was such that Bezerra ended up going in to the boatbuilding industry full-time.

Bezerra had never thought his recreational pursuit would lead to becoming the CEO of an internationally recognised shipbuilding company. A company which, to this day, is still privately owned – a family business that has built up a reputation over four decades as pioneers and innovators in the Brazilian shipbuilding industry.

Following the burst of interest from locals, Bezerra purchased

an abandoned strip of seafront in the centre of Fortaleza that he thought would be ideal for shipbuilding. After investing in equipment, he started up business in 1969 as Indústrial Naval do Ceará (INACE). INACE’s initial business was in fishing boats servicing the local market and they quickly became the leaders in this industry in the region.

AN ORIGINAL APPROACH Continuing Bezerra’s pioneering spirit; INACE was the first manufacturer in North and

INACE North Eastern Brazil to use aluminium in the construction of its boats. Undertaking largescale construction of electrically soldered aluminium boats it soon became the leader in this market in the region.

Soon after, due to increased demand, INACE invested in the installation of an assembly line that allowed for the construction of a large number of vessels in a short space of time. In the early 70’s the company acquired a railway turner.

A device which allowed for a 180 degree rotation of railway carriages, Bezerra’s team adapted this for use on boats and ships. This method meant that, fitted with train wheels for the train track that was installed within the yard, a boat can be moved quickly and released easily into the water.

In a conventional yard the entirety of this construction would take place on the slope leading to the water, which meant that this area could not be used until that project was completed. The method, named

by Bezerra as the ‘radial system’ meant the team at INACE could utilize all available space at the shipyard. The upshot of this pioneering thinking by Bezerra was 600 vessels delivered in his first 20 years in business – which accounts for about 80% of the entire fishing fleet in the North and North East of Brazil.

Following this dominance of the fishing market and continuing with the pioneering spirit of the business, INACE purchased three fishing companies along with a refrigeration plant where shrimp and lobster could be stored before export.

DIVERSIFICATION In the early 80’s in Brazil the government introduced a major incentive plan to encourage the entire naval sector - then positioned as the world’s second. It was as a direct result of this that INACE started producing torpedo launches for the Brazilian Navy and it also saw the beginnings of INACE’s business servicing the offshore market. It was then that the company started producing supply boats and offshore transportation vessels for oil and gas companies. Today, INACE is in fact the only Brazilian company who builds vessels for the Brazilian Navy.

Following this government incentive program, INACE decided on a significant expansion plan to triple the length of the pre-existing

PAGE 61

breakwater. This would create a huge marina area over which the company could extend its construction area by 14 hectares.

The works were completed in 1984 and greatly added to the yard’s capabilities.

By this point, INACE was producing a range of vessels – from fishing boats to support vessels for oil exploration, tugs and combat vessels. The founder, Gil Bezerra, a pioneering spirit at heart decided it was time to diversify the company’s offering further. He again wanted to enter a market of which he would be the first in his region – the luxury yacht market.

A BOLD MOVE In 1987 the construction of high-end yachts in Ceará and

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“Today, one third of INACE’s revenues come from the offshore market, with the other two thirds coming from the luxury yacht market and their service to the Brazilian Navy”

even Brazil was considered unattainable by many. Taking a chance and banking on the quality his yard was able to produce, Bezerra built six yachts out of aluminium without any prior orders. He took them to the U.S. and sold them for a reduced price as they were not a tailormade product. This bold move served to get the INACE name out there and establish another lucrative market for the business.

Since that fateful point in 1987, INACE has custom-made over 30 yachts for the American market alone, while also servicing customers in Europe, Italy, Canada and Brazil. A huge competitive advantage for INACE is not only the quality, but the cost. In comparison with their European counterparts, where

INACE

the cost of labour is significantly higher, they are able to custom produce these large luxury yachts while keeping manufacturing costs down.

It was decisions like entering the luxury market that have ensured the growth of the company and buffered INACE against changes in the market.

INACE was one of the very few domestic shipyards that did not have to shut down or change hands during the crisis that affected the Brazilian shipbuilding sector in the 90s - managing to maintain itself as a 100% Brazilian company. The sector now employs close to 65,000 in Brazil, but go back a few decades and that figure doesn’t even reach 5,000.

By the 2000’s, INACE was

“Bezerra had never thought his recreational pursuit would lead to becoming the CEO of an internationally recognised shipbuilding company. A company which, to this day, is still a privately owned family business”

enjoying 30 to 40% annual growth rates and increased interest internationally for its large tailor-made luxury yachts.

At this point the company was looking towards a future where 90% of its business would be in the export of custom luxury private boats – a natural progression from their successes in this market in the last decade.

MARKET CHANGES It was at this point that the global economic crisis hit businesses worldwide and the market for big-ticket luxury items started shrinking fast. While American and European economies floundered, Brazil’s was one of the few to experience only a brief crisis. The country quickly bounced back and experienced

PAGE 63

an unexpected boom in its the U.S. Total Worldeconomy.

Energy 1215While 88x125.indd 1 Dollar dropped in value, the Brazilian Real increased in value comparatively.

Following this, INACE made a concerted jump into the offshore market. The shipyard has 25 years of experience in building offshore support vessels, but it was a historic discovery for the country that really propelled this segment for the company.

A pre-salt layer just off the coast of Brazil was found, under which lay enough oil to make the country self-sufficient

PAGE 64

Considering that INACE only really entered the offshore market in the 2000’s, it is quite impressive that that area now makes up a third of their business.

In order to service their burgeoning offshore market, and fulfil contracts for Petrobras, INACE once again invested heavily in the infrastructure of the business. They hired new project engineers in order to bring in expertise, which led them to the development of the UT 4,000 50-meter supply vessel.

Similarly to when the company produced its first ever yachts, or its first boat for the Brazilian Navy, this boat was a milestone for the company. It is the most advanced and largest smallmedium sized vessel of its kind ever built in Brazil. INACE invested heavily in complex technology and components to make sure they were delivering a world-class product.

Industry incentive programs in Brazil encourage shipbuilders to use national suppliers, but in order to meet the demands of Petrobras INACE had to and to also make it one of look overseas for technology the world’s largest producers and materials. A lack of the 20/01/2015 14:19 and exporters of crude oil. right skills also meant that, as Petrobras, the state-owned well as increasing the training energy company now one of the they provided the company world’s foremost, had a sudden had to contract overseas for and pressing need for vessels. specialized workers.

Vessels were in demand for Considering the boom in work in ports and offshore and the offshore market countryINACE was in an ideal position wide INACE were not the only to service that.

Today, one third of INACE’s revenues come from the offshore market, with the other two thirds coming from the luxury yacht market and their service to the Brazilian Navy.

company to try and service the need for offshore vessels, but its long and prosperous history ensured it was a frontrunner. Reputation is key, and decades of pioneering design and quality workmanship were

a huge competitive advantage for the company. They are also still less expensive than their counterparts in the south of Brazil and the investments the company had made into training its staff meant they were a step ahead in being able to provide skilled labour.

Today, INACE has built a wide range of offshore support vessels, Crew boats, Platform Supply Vessels and is, of course, a pioneer in the construction of aluminium Fast Supply Vessels (FSVs).

INACE has an intriguing and successful history, with founder Gil Bezerra and his wife still at the helm and firmly in charge.

For a company that started out almost by accident, INACE has navigated economic crises,

anuncio_worldtradeenergy quarta-feira, 28 de janeiro de 2015 15:59:51

inter national expansion, and diversification expertly to get it to where it is today. W ith the rest of the Bezerra family involved in the business and a strong culture of

pioneering decision making and innovation, there can only be plain-sailing ahead for INACE

PAGE 65

The Belgian coatings specialist Editorial: Ajuanne Payne

Monnaie SA is a Belgian coatings company with over 130 years of experience and a reputation for successfully tackling complicated projects. Specialising in anticorrosive applications for the energy, industrial and construction industries, the company has a diverse range of projects under its belt and an eye on international expansion‌ Originally founded in 1884 in the South of Belgium, Monnaie S.A. started out as a business focused on painting applications for steel structures. Today the company has expanded its expertise in this area and is able to provide solutions for

PAGE 66

anything from high voltage electrical facilities, to the restoration of famous architecture.

Current CEO and owner of Monnaie, Damien de Dorlodot, bought the company in 2004 and has since led it through successful

projects and over a 50% increase in revenue. De Dorlodot began his career in the energy sector and it has been his entrepreneurialism that has ensured success for the coatings company over the last decade. “Today Monnaie S.A. is the main

Monnaie SA subsidiary of the Belgian family group Decube. We have our headquarters in Strépy-Bracquegnies and we employ 230 persons,” explains de Dorlodot.

“The company’s core business is the application of anticorrosive coatings.

We have three technical departments, all supported by our efficient administrative staff.”

TECHNICAL EXPERTISE A company that has somewhat of a reputation for enjoying a challenging project, Monnaie’s primary business segment dedicated to working at height, deals with exactly that kind of work - contributing about 38% of the revenue. The other two are its industrial and private building segments, which contribute to the remaining 33% and 28% respectively.

“Our first, the Great Heights sector, is specialized in coating applications in electrical

environments,” explains de Dorlodot, “so - high voltage pylons, high voltage power plants and cabins, antennae, catenary systems and on steel superstructures. This sector is also specialized in the mounting of pylons and pulling of cables on high voltage power lines.

“Next, the Industry sector applies to anticorrosion paint on sites,” continues de Dorlodot, “steel bridges, railway bridges and gas pipelines. In our industrial workshop we also do surface treatment such as shotblasting, sandblasting, shotpeening and metalizing. The workshop has a significant capacity of 5000m².

The Industry sector also has competences in industrial floor protections with anti-acid or antistatic coatings.

“Lastly the House Painting sector - which is specialized in interior and exterior house

painting, anti-rust paint for buildings, wall and floor coverings, in the covering and treatment of concrete floors and in the fireproof decoration for buildings.”

Working mainly in the energy, industrial and construction industries, Monnaie has had industry leading clients such as AREVA, Elia and Tractebel and has invested in the business significantly in order to take on this specialist kind of work. In an area where it is not always easy to find skilled and experienced employees, Monnaie recognises the importance of investing in the future of the company by training and developing its staff members.

“Fortunately we developed a partnership with the competence centre located just right next door to our facility to train our workers in specified work fields, such as industrial painting, sandblasting and metalizing processes,” explains

PAGE 67

de Dorlodot. “It is important to me that our personnel have the opportunity to train themselves and evolve during their career within our company.”

KEY PROJECTS Monnaie’s personnel are active daily in the acrobatics of working on high voltage pylons and other hard to reach surfaces. One of its company mottos: ‘the unattainable, at your fingertips’, is born of this history of completing projects on hard to reach structures.

Aside from the industrial applications, some of Monnaie’s key projects have certainly been unique. They have been entrusted with working on breath-taking architecture, such as the Philarmonie in Paris and the iconic Atomium building in Belgium – a steel structured design based on the shape of an iron crystal, magnified 165 billion times.

PAGE 68

“There is a demand in France for Belgian knowledge and quality of work in coatings.

The location in Bordeaux will also help to cover the entire French market”

“We have been involved in great projects in Belgium, such as the renovation of the Atomium,” explains de Dorlodot, “but also abroad with a two-phase project in Equatorial Guinea where we sent some of our workers to paint on steel structures of bridges.

“More recently we took part in the building of the Philharmonie in Paris which first opened to the public two weeks ago. We also did the wall painting of the Palais des Congrès in Mons, Belgium, built for the cultural event Mons, European Capital of Culture 2015. It is important for our company to get involved in big projects abroad as well as in our original region.”

PLANNING FOR GROWTH Monnaie is a leader in the protective coatings industry in Belgium and has expanded nationally as well as completing

Monnaie SA projects in neighbouring countries. The next step for the business strategically is to further its international expansion.

“The painting application market is highly competitive because the market is decreasing due to the relocation of industrial activities outside Europe,” explains de Dorlodot. “We are leaders in Belgium, however, we are not as big as a company compared with the rest of Europe. That is the main reason why we have great ambitions to expand ourselves in the future.

“We are definitively planning for international expansion in the energy and industrial sectors,” de Dorlodot expands, “the Belgian coating market is getting smaller for us and it is thus important to develop our activities outside our country. We would like to first expand in the Benelux and in Germany as there is going to be great energy projects in those regions, such as the building of new high voltage power lines.”

Damien de Dorlodot has already taken steps towards broadening his company’s reach – recently opening an office location in France. With projects already coming from that region, it was the most organic first step into expansion outside of Belgium.

“In an international perspective of development, we decided to open a subsidiary in Bordeaux in June 2014. It was a good start to test our capacities and competences on another European market,” explains de Dorlodot. “We began with France because there are no language barriers and it is close to us.

“The presence of our subsidiary in Bordeaux might be

beneficial to our company due to a demand of Belgian know-how on the French market.”

INVESTING IN THE FUTURE The future for Monnaie looks exciting following its first expansion into the international market. Damien de Dorlodot has plans to invest in other areas of the business, in order to strengthen and build upon the high level of expertise the company has already had and ensure its future success.

“Consolidation of the company has already begun and is in implementation,” de Dorlodot explains further, “we are going to provide new services to our customers such as a complete offer of industrial sealing services. We have also recently acquired another Belgian coating company, which will enable us to diversify our professional expertise and services in coatings.

“We can now apply classic fluid anticorrosive painting as well as powder painting. We are also investing in R&D projects to improve and modernize our equipment.

“We have a development plan for the next three years,” explains de Dorlodot. “We are planning to invest in state-ofthe-art infrastructures, new equipment for our sandblasting activities, a new workshop to develop high quality paintings.

We would also like to innovate in the services we offer to the customer. That is the reason why we are currently establishing partnerships with research centres and universities.

“We have recently acquired

an ISO 14001 certification for the environmental system of management we implemented within the company.”

In 2011, Monnaie invested €1.3 million in photovoltaic shade structures at the office’s carpark which will cover 50% of its energy consumption. It is the largest private facility of its type in the region and has contributed significantly to the company’s operations being environmentally friendly.

For Monnaie, growth has definitely been organic. The company has invested in honing its expertise and building up a high level of trust with its clients.

It is no small matter to have the competence to complete difficult projects at height for pylons and electrical structures, while also being able to take on the delicate work of restoring nationally important architecture. This really contributes to the feeling that this is a company that can handle anything in the field of coatings applications – however complex.

“I think we have built our company’s success on six main points. Firstly, an entrepreneurial spirit and secondly a constant drive towards quality of work.

Thirdly, the acquisition of European certifications such as the ISO norms, fourth a focus on our workers’ training and fifth, the development of new market segments like the montage of pylons on high voltage power lines. Lastly there is the constant research of new acquisition opportunities to diversify our competences. Those key things have allowed us to stand one step ahead of our competitors and to have the capacity to respond to great infrastructure projects,” concludes de Dorlodot

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Providing a safe environment solution Editorial: Harriet Pattison

With product and geographic expansion on the horizon, the future is looking to be a very promising one for Specialist Services, the modular building experts within the oil and gas industry. Total World Energy speaks to Chief Executive Officer, Ian Rogers, who attributes much of the company’s long-lasting success to the hard work and dedication of its people…

Founded over three decades ago in Abu Dhabi by entrepreneur and British civil engineer, Philip Bond, Specialist Services has secured an enviable industry position and 32 years on, it continues to be held in high esteem by large industry leaders in the oil & gas sector.

Initially engineering small buildings and offshore structures for the oil industry, 15 years later Bond then bought into a business in Dubai, at the time called Arabvan, which led Specialist Services into the modular building business. This

PAGE 70

acquisition came with a yard in Al Quoz, Dubai, which the company still owns and operates from today and the start of Specialist Services’ modular building fleet.

With an extensive range of capabilities split into five business units: modular buildings, EPC, drilling, testing and production, modular hire and service, maintenance and spare parts, Specialist Services maintain a prominent position in the oil and gas industry. Total World Energy speaks to Chief Executive Officer, Ian Rogers, about the company’s current

projects and plans to increase its already impressive footprint.

“More and more over the last five years we’ve focused on the oil and gas industry because that’s driven by high specifications and high quality requirements, mainly offshore.

So pretty much everything we do goes into that industry and we’re providing equipment offshore that will either house people safely, so accommodation cabins, workshops and offices. Or we’re packaging equipment so that it’s safe, so we make a lot of testing equipment, particularly

Specialist Services separators, surge tanks and complete well test packages that can be used onshore or offshore but generally everything we do will be used in a hazardous area of some description,” Rogers explains.

“More recently, we’ve got into larger projects where we’re building on an EPC basis, so larger technical rooms, accommodation packages and modules down in our yard in Mussafah in Abu Dhabi.

“The other element of our business, is a rental business where we can hire zone-rated cabins, laboratories, workshops, offices and accommodation to our clients, so those are the key things that we do.”

One of Specialist Services’ key business ventures is its modular building series. “The key is intellectual property”, Rogers

explains. “We launched the G4 Global Series which takes four very stringent global standards creating a building that complies with them all. That’s important because if you’re an operator in a global oil and gas industry, you can use that building in offshore Australia, you can use it in Asia, the North Sea and off the Gulf of Mexico, so it enables our clients to move their assets around the globe without having to purchase equipment specifically for a local market.

“We’ve sold a number to one of our clients and we’ve got a contract to build a significant number more for another client, so our global customers are seeing the benefit of transferability of equipment. So for them, it means they can use the assets anywhere, increasing their own utilisation and therefore

reducing their capital spend,” Rogers adds.

VENTURING FURTHER AFIELD To remain at the top of its game, Rogers explains that Specialist Services is looking to expand its geographic footprint. Currently operating out of four global hotspots (Aberdeen, Dubai, Abu Dhabi and Singapore), with a solid footprint from Europe through the Middle East to South East Asia, he explains there is further potential and opportunity available in Africa and North America: “We have products that we can take to those markets where we’re not really well penetrated but the other side of it we see adjacent products. For example, we produce what we call an early production facility which is an adjacent product to

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our drilling and testing business so it uses the same capabilities and skills from an engineering point of view, it’s the same potential clients, so it’s a product they can use in their industry which is similar to things we’ve done in the past.

“So we’re sticking to our core values, everything we do is high value added engineering, but we’re stretching the type of products that we’re able to produce and we’re bringing in more and more engineers capable of developing such products.

“So it’s product expansion, close to what we currently do and its geographic expansion, that’s where we’re heading.

We’re looking for a footprint

facility in Singapore and we see opportunities in that area too. So we’ll definitely be putting in more offices and focusing on our hire and service, we’ll still be building products here in the UAE but we’ll ship to those locations,” adds Rogers.

Operating in an increasingly competitive industry, Rogers explains that despite the inevitable competition present within the industry and in the five business units it specialises in, Specialist Services ensures it maintains and provides “a high quality, highly specified product at the best possible price at the shortest possible lead-time. We think those three things; quality, price and lead-time are what

in the southern part of the United States, so we need to be somewhere like Houston or Lafayette. We’re also looking for a similar footprint in South East Asia. We’ve got an office and

gives us competitive advantage.

“We’ve won a contract for a very large operator in North America, so we’re finding that we can land product into the North American market cost

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effectively at a time and cost that competes with the North American fabricators, so we’ve got a good story to tell around those contacts.”

THE UPPER ZAKUM 750 PROJECT Upper Zakum, located in the Arabian Gulf in Abu Dhabi, stands as the second largest offshore oilfield and fourth largest oilfield in the world, currently producing 500,000 barrels of oil a day (bpd). This production capacity is set to increase to an exponential 750,000 bpd following the completion of the UZ750 Project.

At an estimated cost of US$10 billion, the project is set to be completed in 2017 and will be sustainable for 25 years.

The UZ750 project includes the construction of four production artificial islands which will involve a central complex to house the processing facilities and the

Specialist Services north, south and west satellite platforms.

Receiving a Letter of Award in December 2013, Specialist Services has been involved in the Upper Zakum 750 project for just over a year to design, engineer, fabricate and supply eight LER (Local Equipment Rooms) and four LCR (Local Control Rooms) for the project. With a time frame of two and half years, Rogers expects the last of the buildings to be delivered in the last quarter of 2016.

“W ith over 8000 tons, these buildings will be completely designed, engineered, built and commissioned in our yard in Abu Dhabi, put onto a barge and shipped offshore.

The Upper Zakum project involves building four offshore

“It’s all about people and if you’ve got good people then you can do almost anything and I think we have here”

islands, so rather than putting everything on jackets in the sea, they’re building these islands.

Interestingly, they’re building the infrastructure to an offshore specification. The sort of thing you’d normally expect to sit on top of a jacket but it’s actually going to sit on an island. So we’ve been hard at that for over a year and we’re on schedule.

We’ve got a number of these buildings taking shape in our Mussafah yard and it’s looking good.

“Each building takes about a year, there’s a lot of engineering and we’re doing a number of things in parallel. The client requires a staggered delivery so the first buildings are going out August this year and the last ones go out at the back end of

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PAGE 73

Ian Rogers

next year, because that’s when the client will be ready to accept them, that’s their schedule and that’s when they want them,” Rogers explains.

NOTEWORTHY PROJECTS Specialist Services has recently completed a contract for Sea Trucks Group to provide a 48 module accommodation extension, each with fourman accommodation, to go onto one of their DP3 offshore construction vessels deployed for accommodation support on the Arkutun-Dagi Project in Sakhalin, Russia.

“We built the modules here in Dubai and shipped them off to Singapore. They were installed on a rig in Singapore under a very, very tight window because that rig then had to go up to Sakhalin in

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Russia for the weather window and work up there in the summer.

“So the reason Sea Trucks chose us was for one, we guaranteed delivery in 18 weeks for a very large project which was critical and two, we gave them a modular design so that once that job was finished they could take it apart and use half of the modules on the same jack up and half on another; so that was quite interesting. Almost all of what we do is in some modular form or other, so clients have the flexibility of deploying equipment on a current job or for future jobs,” Rogers explains.

The EPC aspect of the business is also critical to Specialist Services and one of the most interesting projects the company has been involved with in recent years is Shell’s Prelude FLNG Project. “We

built a turret house which was effectively a very, very robust control room that went on to the Prelude floating gas production platform, built for Shell. So it went onto that platform at dry docks here in Dubai and then off to Korea for finishing, to then end up on the North West shelf of Australia. We’ve effectively done the control room for the biggest gas producing vessel on the planet. The Prelude is the first of a number that Shell expect to build. Our turret house sat right underneath the gas flare, the turret is where the gas is flared off at one end of the ship, so that’s the most hazardous place you can be on a vessel, so our job was to design and build something which would protect the people working inside of that,” explains Rogers. “So that’s the sort of thing we do, small pieces of large jobs which are absolutely critical.”

THE PERSONAL TOUCH Prior to joining Specialist Services, Rogers worked at British company, Aggreko for ten years, spending half his time in Dubai running their Middle East operations and international sales and marketing business out of Jebel Ali, with the other half spent as Managing Director for Asia, based in Singapore.

Having spent a total of 22 years working overseas, he then joined Specialist Services as Chief Executive Officer five years ago this month.

As with so many successful companies, the employees at Specialist Services’ remain at the centre of the business and for good reason. “Effectively we’ve got about 950 of our own workers on our shop floors in any

Specialist Services one day, and we have very robust training programs for those guys because we want to develop our own people, whether it’s in the class of welding or whether it’s other core competencies within their discipline,” explains Rogers.

“So we’ve got a lot of long serving employees that have trained with us. In our staff category, we have about 400 and they range from engineers to draughtsmen, discipline engineers to salesmen and HR so all the typical functions you’d expect. Each have a personal development plan, we take their own development very seriously so those are reviewed on a twice yearly basis. From a training point of view, overall we’ve got about 1,400 people in the group and we try hard to develop in house, we have our own trainer and

“A high quality, highly specified product at the best possible price at the shortest possible leadtime. We think those three things; quality, price and lead-time are what gives us competitive advantage”

training set up in house,” Rogers explains.

For a company that started as a result of the entrepreneurial spirit of Philip Bond, who, now Chairman and 25% shareholder, is still involved in the business he founded over three decades ago. W ith a bright future ahead and significant growth on the cards, Rogers explains that much of the company’s exponential success is down to its people: “We’ve got a lot of good people that do great jobs for very demanding customers.

It’s all about people and if you’ve got the right people then you can do almost anything and I think we have here. At the core of what we do is some great people who are smart enough to design and manufacture world class equipment.”

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One Source...

Diversified Solutions Editorial: Harriet Pattison

Eyeing the market for expansion in the coming years, Oil States currently has four core business units – Skagit Mooring Systems, Nautilus Pedestal Cranes, Smatco Anchor Handling Winches and Custom Engineered Products. Today the Nautilus Marine Crane has become the industry standard on floating and fixed offshore applications for not only safety but reliability and lifting capacity for up to 500 tons.

Total World Energy speaks to Alan Corley, International Commercial Manager, who explains Oil States’ plans for expanding into the Middle East and Brazil and what the company attributes its long running success to…

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Oil States Skagit SMATCO LLC Q: Tell us about the history of the company? When did the company start up? Who was responsible?

This Company has a long history dating back almost 100 years. Skagit has been in business since the early 1900’s which started out manufacturing logging equipment. Smatco has been in business since the 1950’s before being purchased

by OSI in 1997. Nautilus started out as a service company in 1983 and started manufacturing cranes in 1985.

The parent company, Oil States Industries, has been in business almost 80 years so as you can see, we are well entrenched in the oil and gas industry.

Q: What is the company’s core business and main activities? What industry sectors are you predominantly focused on?

We have 4, core business units – Skagit Mooring Systems, Nautilus Pedestal Cranes, Smatco Anchor Handling Winches, and Custom Engineered Products such as SCR Pull-In Systems. At this time, we are 100% invested in the energy sector but have provided special equipment for industries outside for the oil and gas sector.

Q: Please elaborate on the company’s Nautilus® crane line - Why is it one of the most respected cranes within the marine sector?

C u r r e n t l y, t h e r e a r e approximately 60 Nautilus designs that have been manufactured which include box boom, telescoping box boom, and lattice broom configurations. Nautilus Marine Cranes have become the standard on floating and fixed offshore applications for

s a f e t y, r e l i a b i l i t y a n d l i f t i n g capacity from 5 tons to 500 tons. With class-leading S l e w B e a r i n g Te c h n o l o g y, our cranes are recognized as some of the safest and best e n g i n e e r e d i n t h e i n d u s t r y.

Q: Are there any new designs or innovations you’re currently working on? Do you foresee new markets for Nautilus® cranes in the future?

We are currently finalizing an update of our deepwater crane design. We expect to expand our installed base into both the Middle East and Brazil during the coming years.

Q: Would you consider the Skagit Mooring Systems and Smatco AHTS Winches your flagship products? Are these products distributed to global markets? Why are

PAGE 77

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Q: Does R&D play a big part in your companies’ success?

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they integral to the company and to the industry?

Ye s , t h e s e p r o d u c t s have been the cornerstone of our business and continue to be our core b u s i n e s s . Ye s , t h e y a r e distributed to global markets.

These products are important to our business since the installed base provides opportunities for growth through both aftermarket service support and parts sales worldwide. With manufacturing and parts

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warehouse locations in Houma Louisiana, Rayong Thailand, and Mumbai India, we are poised to meet the worldwide d e m a n d s o f o u r i n d u s t r y.

“With class-leading Slew Bearing Technology, our cranes are recognized as some of the safest and best engineered in the industry”

Ye s , e q u i p p e d w i t h t h e very latest in engineering software and technologies, including 3D modelling, our degreed and licensed engineers bring depth of knowledge in statics, dynamics, machine element and thermodynamics to all projects. Engineering teams work onsite with production and manufacturing for a fully integrated approach.

Q: Do you regularly look to bring new products to the market place?

In addition to the riser pull-in systems, what custom engineered products does the company have?

Ye s , o u r w o r k r e f l e c t s o u r emphasis on continuous improvement, our company is structured to inspire innovation and new product development. We have developed custom lifting, pulling, mooring and testing solutions through the continuous improvement of our core products to custom applications.

Q: Is the company targeting local e x p a n s i o n ? I s t h e re scope for global expansion?

Oil States Skagit SMATCO LLC Over the years, we have expanded our main manufacturing facility in Houma, LA, USA to meet the changing requirements a n d s i z e o f t o d a y ’s equipment. We also recognize our customers are global and require us to manufacture and service t h e e q u i p m e n t l o c a l l y. I n order to do that, we have opened API 2C approved facilities in Mumbai, India and Rayong, Thailand to manufacture cranes and winches. We also have a service presence in Singapore and access to our distributors in Mexico and Nigeria. Oil States Industries is also in the process of building a new facility in Brazil which

“Since all of our products are custom built, we allow our customers the flexibility to ask for whatever they want or need and we’ll engineer and build it specifically to their needs”

will have the capacity to manufacture equipment from all divisions of OSI.

Q: What is the target for the business over the next 2-3 years?

Our main focus will continue to be on the needs and requirements of our customers.

C u s t o m e r s i n t o d a y ’s industry are very educated and demanding and with the market being so competitive, if we don’t take care of them, someone else will. As far as products are concerned, deep water and production appear to be the focus for our cranes and custom engineered products.

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

T h e re i s s i g n i f i c a n t competition in the market so we try to distance ourselves other than price. Anyone can s e l l a c h e a p p ro d u c t , b u t t h e k e y i s t o p ro v i d e t h e c u s t o m e r a q u a l i t y p ro d u c t t h a t m e e t s their specifications for the intended job at a fair market price. That is what they expect and should be able to re c e i v e .

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“Oil States Industries is also in the process of building a new facility in Brazil which will have the capacity to manufacture equipment from all divisions of OSI”

Q: What are some of the key projects and contracts that the company has been involved with over the past few years?

We have been involved in several key projects over the last several years. Atlantica’s tender fleet, Chevron’s Jack up & St. Malo FPU Fairleaders, Energy Drilling’s tender fleet, Heerema Installation SCR Pull-in System, Keppel FELS Mooring Systems, EXMAR’s FPU Mooring System, Gulfmark Anchor Handling W inches, cranes for Montco’s Liftboat fleet and cranes for CUEL, PTTEP, and TNS.

Oil States Skagit SMATCO LLC

Q: Is the constant drive towards ‘greener’ business having an impact (positively or negatively) on the business?

OSI Skagit Smatco manufactures custom-engineered products so whatever our customers want, we provide. Although the winches and cranes aren’t usually a large part of a vessel or platform, over the years we have seen a switch to more electrical power which provides a green option. On the equipment which still require diesel engines, new emission requirements have changed the size of the power units due to certain efficiencies which increase costs.

Q: What has been the key to the company’s success over the years?

There are a number of keys to our success but the two biggest items is our financial strength and engineering flexibility. We are part of a large, publicly traded company which allows us to provide financial flexibility to our customers. Since all of our products are custom built, we allow our customers the flexibility to ask for whatever they want or need and we’ll engineer and build it specifically to their needs

PAGE 81

Revolutionising the Oil & Gas industry in Kuwait

Editorial: Rosie DeWinter

Source: SPETCO Google +

With over three decades of experience providing pioneering worldclass solutions and services, SPETCO has built a solid reputation for its role in revolutionising the oil and gas industry. A turn-key provider, SPETCO provides solutions across the value chain from upstream to midstream production and plans to expand its services further still‌ A subsidiary of Safwan Trading & Contracting Company (SAFWAN), Safwan Petroleum Technologies Company (SPETCO), based in Kuwait, was created as a result of impressive growth and a greater market demand within the oil and gas industry.

In 1970, SPETCO which was then SAFWAN, introduced a diversification process to grow the company’s reach and footprint. Providing products for the industrial and oil field process and chemical and technological support to

PAGE 82

both the oil and gas sector, SPETCO has been delivering products, services and technology requirements for nearly 30 years to the industrial, commercial and oil and gas sectors within Kuwait.

Three decades of hard work and reliability has earned SPETCO a welldissevered reputation providing the highest standards of both customer service and prompt delivery.

Today, operating within three divisions - Oil and Gas Services, Oil and Gas Projects and Power Projects - SPETCO

continues to provide pioneering solutions and services to national and international companies, helping to revolutionise the industry.

With 500 employees including trained and highly professional engineers and technicians, SPETCO owns an impressive fleet of heavy equipment including cranes, forklifts, loaders and trucks.

With corporate offices in Shuwaikh and Ahmadi and its engineering office in Ahmadi, SPETCO has a field operations

SPETCO base in North Kuwait, South East Kuwait and Wafra and an operations base and workshop in Mussaffah, Abu Dhabi UAE. In 2013, the company announced its plans to expand its upstream oil and gas services further into Iraq and Saudi Arabia.

proven gas resources in the region, more and more national oil companies are looking to the gas industry as an alternative energy resource. “The Middle East gas industry is still in its early days, but it is making rapid progress towards reaching the same levels attained in the oil production,” explained Abraham.

EXPANSION ON THE HORIZON

OIL & GAS SERVICES

Speaking at ADIPEC 2013 to Oil Review Middle East, Manager OFS/BD Anish Abraham, explained that the plan is to expand the company’s services to Oman, Qatar, Saudi Arabia and Bahrain with particular attention to Erbil in Iraq and Saudi Arabia.

Whilst providing upstream services from well testing services, artificial lift systems, production facilities and tubular services, Abraham said: “We provide our clients with complete services, becoming a turnkey solutions provider, leveraging our global network and strategic alliances to extend total service and procurement solutions to our customers by offering them a complete package of the above mentioned services to fulfil their requirements.”

With an estimated 42% of the world’s

Providing upstream oil field services related to production testing and reservoirs and the installation of a variety of artificial lift pumps, SPETCO operate a high quality and cost efficient pipe and structural steel fabrication division, including installation works, blasting and painting. With KOC qualified welders, painters and blasters, the company has a selection of equipment, including a Fabrication Shed (12m x 30m), Painting Shed (12m x 12m), Radial Drilling Machine, Bench Grinding Machine, Sandblasting Pot and an Airless Painting Machine.

Impressively, SPETCO is the only company in the Middle East which specialises in the provision of supplies and services of artificial lift

systems, which include; Submersible Pumping Systems, Sucker Rod Pumping Systems, Beam Gas Compressors and Progressing Cavity Pumping Systems, to the hydrocarbon producers working within the region.

One such example is technical services for Submersible Pumping Systems including well sizing, installation and commissioning SPS, well analysis, well testing, surveillance and daily monitoring of the well using remote controlled SCADA systems.

Additionally, SPETCO provides SPS downhole equipment, downhole power cable, By-Pass System, Tubing Spool, Variable Speed Drives, EFT Systems, Tubing Hangers and Switch Board.

On a turnkey basis, SPETCO also offers the installation, commissioning and maintenance of Sucker Rod Pumping Units to Electric motor and Gas engine prime movers.

OIL & GAS PROJECTS Offering EPC and lease contracts for production facilities and

Source: SPETCO Google +

PAGE 83

systems, SPETCO engineer, construct, commission and operate these facilities for hydrocarbon processing requirements for clients.

The Gas Sweetening Facility (GSF) was commissioned to SPETCO by Kuwait Oil Company (KOC) to design, construct, commission, operate and maintain its gas processing facility located in Western Kuwait. Construction on the facility was completed in July 2010 and was commissioned just a month later in August 2010.

The aim of the project is to remove the sour gas components (H2S and CO2) from the natural gas to produce a sweet and dry product gas stream ready for delivery to the KOC pipeline.

It is hoped the facility will reduce flaring of the gas and condensates in the KOC West Kuwait operations which represents a major milestone in achieving KOC’s long term objective of zero flaring.

POWER PROJECTS DIVISION As a result of the power crisis during the early 2000’s, the Doha West Power project was based on utilising five GE LM6000 gas turbine generating sets and the associated Balance of Plant (BOP) to ensure it was capable of producing 141.25 MW net on demand.

The American company, Foster Jordan, now under the rights of SPETCO, was awarded the EPC contract in January 2007 and following the successful site performance test which produced 171 MW, construction was completed in 2010.

The performance test involved the Inlet cooling of both evaporative cooling (three units) and a chiller package (two units) which is capable of reducing the turbine inlet temperature to 11 ˚C when the outside temperature reaches above 55 ˚C. Starting in August 2010, phase II

is due for completion in August this year and involves the operating and maintaining of the plant for five years.

The units have now been in operation for two years, which has accumulated an exponential 2,500 running hours, producing more than 70,000 MWh for Kuwait. Throughout this time, the availability and reliability has not fallen below 99% which in turn has saved the company from financial penalties.

Since its inception, SPETCO has increased its services to provide an innovative and reliable service and in April 2013, it was awarded two excellence awards for its outstanding performance in HSE. Receiving a silver award for its KOC project, EPF 50 MBOPD North Jurassic Production, and a bronze award for Joint Operations project, Well Testing Services in Wafra, SPETCO is looking forward to a bright and productive future ahead

Source: SPETCO Google +

PAGE 84

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PAGE 85

The offshore mooring specialists Editorial: Ajuanne Payne

Editorial: Roland Douglas

A part of Swiber Group and an EPCI contractor leading the South East Asian market, Equatoriale Services is a company specialising in offshore mooring solutions for tankers, FSO, FPSO, etc. Recognised in the region for providing tailor-made solutions coupled with a high level of expertise, the company is now looking to extend international expansion. We speak with Guillaume Darmayan, Business Development Manager, about the nature of the business and what exciting prospects it has on the horizon for 2015.

Equatoriale Services has worked diligently over the years to build itself a reputation as the goto EPCI contractor for offshore mooring solutions. Founded as part of Swiber 12 years ago by CEO for PAPE and Equatoriale,

PAGE 86

Jean Pers, the very first contract Swiber won was for an SPM buoy EPCI. “We are a Business Unit of Swiber Group leading all of the mooring systems projects. We are supported by all other Business

Unit of the Group including PAPE Engineering (Swiber engineering arm)” explains Guillaume Darmayan, Business Development Manager.

“The CEO and the founder of Equatoriale is one of the founders

Equatoriale Services

of Swiber - Jean Pers. He has 40 years of experience in offshore business and he is running both Equatoriale and the engineering arm of Swiber.”

The company focuses on Single Point Mooring (SPM) buoys, FPSO Turret Systems, spread-mooring and any other system that may meet the requirements of its clients. SPM Buoys are, in simple terms, buoys that are moored to the seabed by way of multiple mooring lines. The buoy contains a bearing system that allows moored vessels to rotate fully around the mooring point. This is an obvious choice for Tanker offloading solutions or FSO mooring for the oil and gas sector. Turret Mooring Systems provide a very similar

service but are integrated into the vessel itself.

Part of the reason Equatoriale Services has built up such expertise in the offshore mooring market can be attributed to how the company has mostly focused on one area of specialty over the years. There are no ‘masters of none’ here – the Swiber Group knows what its companies are best at and allows them to develop.

Equatoriale maintains a core team of experts and operates independently, whilst still having access to the various entities of Swiber when the need arises.

“As of today, we are a team of 12 engineers with design, procurement, fabrication and project management skills. We

all have offshore experience of mooring system installation which allows the run off our projects by having a full overview of a field development.

“When you need to install an offshore asset, you are looking for a recognised name. With Equatoriale, even though it is a small set up with only a few guys, you have the flexibility of a highly specialized set up under the Swiber Group.”

“Swiber Group is a worldrecognised company publicly listed on the main SGX stock exchange.

Swiber has large track records including more than 60 offshore platforms and 2000km of subsea pipeline installed around the world”.

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TAILOR-MADE SOLUTIONS Equatoriale Services has been focused solely in the South East Asian market since inception. A recognised name in countries such as Indonesia, Malaysia, Thailand and Vietnam, the company has worked hard to build up and maintain its clients there – building lasting relationships with clients and suppliers.

“We are developing long term partnerships with clients in order to deliver solutions which suit their requirement and schedule.

We maintain their trust by staying close to our Client during good and bad weather,” explains Guillaume Darmayan.

The culture at Equatoriale is definitely one that fosters a flexible attitude. Approaching each project as a partnership rather than simply a service to be provided has given the company a competitive edge in an area where the competitors are larger companies.

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“To date, we are working on five projects that we have to deliver, all within the next six months”

“We have always delivered solutions which were fitted and customised for our clients, which made us more competitive in terms of fabrication. If we were asked tomorrow: “Can you provide me a mooring system, or SPM for an FPSO, you would usually need around one year to one and a half years.

“However in March we will supply and installed a SPM Buoy for a FSO within five months including the design, procurement and fabrication phases and that is our first time working for them,” explains Guillaume Darmayan.

Another competitive advantage for Equatoriale and an asset to any industry leading company is its employees. With all the employees, including the CEO, having their roots in the engineering side of Swiber and subsequently bringing a wide range of expertise with them, the focus for the company has been very much technical and business. This

Equatoriale Services has allowed it to flourish and has contributed to Equatoriale’s reputation for quality products and service.

“That’s one of the usual feedbacks from our clients. As we come from an installation and engineering background, all propriety designs of our offshore mooring solutions that we have offered have been installationfocused and maintenance-free. All the designs are done with a view of looking after the project from A to Z. We are able to do everything thanks to our background,” Guillaume Darmayan explains.

CURRENT PROJECTS “To date, we are working on five projects that we have to deliver, all within the next six months,” explains Guillaume Darmayan. “The range of projects are quite different. We have two SPM buoys EPCI, one for a FSO contractor in Singapore and another

“When the oil price goes down, we can expect majors to look at fast track project and cost effective solution.

That is where Equatoriale Services make the difference”

one for an independent oil and gas company in Thailand. The one for the contractor is recurrent, they’ve always come back to us and we have quite a long-term relationship with them.

Both projects are to design, fabricate and install offshore a SPM Buoy mooring system for 2 FSO’s.”

“We also have 2 SPM Buoy refurbishment projects, one is completed and is leased to a major player in Malaysia. The second is the upgrading in-situ of the entire piping system of a buoy is on-going for a U.S. based oil and gas company.

“Last, we have been approached by one of our regular clients to design and supply within 4 months, 8 custommade chain-stoppers for their FPSO spread mooring.”

ROOM TO GROW A few years ago, Swiber has penetrated the Gulf of Mexico market

Chain-stopper

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and very recently moved to West Africa. It would be difficult for a small set-up like Equatoriale to move into those markets independently but with Swiber’s established network and worldwide presence, Equatoriale is able to expand in those areas along with the Group.

“We now try to move and become a worldwide contractor,” Guillaume Darmayan explains. “We have, thanks to Swiber, a lot of contacts in the Middle East, the Gulf of Mexico where we have some assets over there and in West Africa. So very soon we will try to get our first projects.

“We have two targets right now for what we want to do with Equatoriale in five years or three years’ time.

The first thing and the main target is

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“They are engineers most of the time, so if they have in front of them an engineer to discuss the technical points - later on when comes to the bidding process or the procurement process, the game is on”

to become a recognised worldwide EPCI contractor for offshore marine solutions. Meaning that, where we are right now in South East Asia, we need to be there in West Africa, the Gulf of Mexico and the Middle East. That’s what we want because if we are able to do what we do here, we must be able to do that there as well.”

With ongoing work and new bids both locally and internationally, Equatoriale has made a promising start to the new year considering the current climate. The major drop in oil prices that the industry is currently experiencing is affecting all companies that operate within the oil and gas sector. In times like these, Equatoriale’s flexible approach will be an asset to optimize solutions to reduce costs.

Equatoriale Services Equatoriale provides new, costeffective and safe solutions.

In some areas at least, Equatoriale will be able to make the best of a bad situation. With major oil companies stock-piling reserves to ride out the market, there will be a need for mooring solutions. For those companies that choose to use FPSO’s for this activity they will be looking for cost-effective and safe solutions.

“When the oil price goes down, we can expect oil majors to look at fast track project and cost effective solutions.” explains Darmayan.

“Through any crisis, you need to find good points in all bad situations. So that’s what we will try to do because we expect the market to be slow during the next few years due to the oil price, it is our responsibility to find new solutions to help oil and gas company to reduce their CAPEX and OPEX” Guillaume Darmayan explains further.

Equatoriale Services has managed to maintain its competitive edge over the years through a combination of attributes. Highly specialised, the company has focused on building up a strong reputation in the region. It makes a conscious effort to partner with its clients to give them a tailormade, cost-effective solution.

There is much to be said for a company that has become such a leading player in its region - the work must really speak for itself.

With business flourishing and new prospects on the horizon internationally, Equatoriale’s next step should be well within reach – to be as recognised worldwide for offshore mooring solution as it is in South East Asia.

“It’s very difficult for me to be objective but all the clients we have worked for always come back.

Meaning that we always deliver on time and with the quality that was expected by them and from the

“When you have an FPSO to install and your assets cost $500 million dollars, you are looking for a recognised name.

With Equatoriale, even though it is a small set up with only a few guys, we have the branding of Swiber behind us”

business point of view, I definitely also think that our key point is the low cost. The fact that we are from an engineering background is definitely something else the clients like. When you are approaching even the big U.S. companies, you will always have guys in front of you who are looking for solutions. They are engineers most of the time, so if they have in front of them an engineer to discuss the technical points - later on when it comes to the bidding process or the procurement process, the game is on.

“You already have the right information, you already have the right solutions and then if you have the best commercial offer you get the job. So I think those are the three things we have which have made Equatoriale what we are today,” concludes Guillaume Darmayan

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200 storage tanks installed and counting Editorial: Ajuanne Payne

A global EPC and project management contractor, with a presence in 36 countries and over 2,000 permanent staff – Chemie-Tech LLC is a leader in its field and a specialist in bulk storage installations for the oil, gas and petrochemical industries. Chemie-Tech’s Chairman and Managing Director, Mr. M.K. Saiyed, speaks to Total World Energy about the successes of the company and its plans for the future.

Headquartered in the UAE, Chemie-Tech is a global EPC multidisciplinary services provider with the breadth of technical expertise to respond to a complex variety of challenges. The company services projects for bulk liquid

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storage tank terminals and depots.

It also services off-sites and utilities, topside facilities and industrial construction projects worldwide with activities mainly in The Middle East, Africa, Indian Sub-Continent, Australasia and Americas.

With a 17 year history and a track record for providing highquality turnkey solutions, ChemieTech’s offerings encompass the whole project lifecycle. The company provides services for the design, construction, project

Chemie-Tech LLC management, commissioning, operations and maintenance support of customized industrial projects.

Chemie-Tech has the in-house capabilities to provide full project solutions for the oil and gas sector; anything from technology selection to complex front end engineering design. For their clients this means a single interface throughout construction, significantly reducing the risks, costs and time involved when dealing with multiple vendors.

Originally founded in India in 1998, the company started life as Chemie-Tech Projects Ltd and began trading globally in 2003 with its international division, Chemie Tech LLC. It has since completed over 30 turnkey projects across the Middle East, North America and Africa. In total the company has completed over 100 turnkey projects in locations around the world and installed over 200 storage tanks.

With their focus being very much on bulk storage tanks for the oil and gas sector, petrochemical and process plants, power and water treatment facilities, Chemie-Tech has grown exponentially over the last decade in both expertise and size.

“We also construct on mini refineries, general industrial construction and other civil and infrastructure construction projects,” states Mr. Saiyed.

The company has a presence in 36 countries over four continents and has plans to expand further – with key projects currently under construction in Yemen, Iraq, Australia and Ghana. “Currently we have our headquarters in Sharjah,” explains Mr. Saiyed. “We have a multidisciplinary engineering office in India and other main offices in South Africa, Ghana, Nigeria,

Mr. M K Saiyed

Australia, Houston and Hong Kong.”

SERVICING THE MARKET Due to increased international trading in the oil and gas sector in recent years, there has been a paralleled rise in the logistics activity servicing the market. As a natural result of this, the demand for bulk storage facilities has grown also - with major projects, such as the Fujairah Terminal in UAE, Jurong Rock Caverns in Singapore and the Pengerang Deepwater Terminal in Malaysia, being commissioned to meet the demand.

Because of the high levels of import and export activities, three strategic regions for bulk storage facilities in the petrochemical, oil and gas industries are South

East Asia, the Middle East and Africa. Chemie-Tech is already positioned to service all these large market areas and in an extremely competitive arena, the company continues to consistently win new business.

“The global market is very competitive. We are ready for the competition and currently we are already delivering projects in a very competitive environment,” explains Mr. Saiyed. “All our contracts have been taken in competition with large global contractors. I think we are a really competitive contractor.”

KEY PROJECTS “One of the key contracts we’ve got is we are delivering a project for the Republic of Yemen,” explains Mr. Saiyed.

“This is the Ras Issa Oil Terminal

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Project. This project actually has a lot of strategic importance to the country because the country exports the crude oil and so is dependent on this project. The key thing about this project is that the terminal is modern in nature with all automation facilities and has large tank farms. Each tank is 85 meters in diameter, which is almost the size of a football field.”

The Ras Issa Oil Storage Terminal Project will boost the country’s ability to export and is crucial for the development of Yemen’s oil infrastructure. The facility will have a substantial capacity of 2.2 million barrels and is owned by SEPOC, Yemen’s national oil company and the government of Yemen.

Another important project Chemie-Tech is currently working on is an oil terminal project in

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“We have an engineering office in India and other offices in South Africa, Ghana, Nigeria, Australia, Houston and also in Hong Kong”

Ghana for Quantum Terminals Ltd. Chemie-Tech’s role in the engineering, procurement and construction of the storage tanks is one part of a larger drive by Quantum Terminals. A subsidiary of Quantum Group, they aim to provide the vital integrated infrastructure needed to import, store, re-gasify and deliver LNG to large-scale users in Tema, Ghana by 2016.

“We are delivering an oil terminal in Ghana, which is also a key project for the country itself because the terminal will be responsible for the delivery of the demand for diesel and other petroleum products which the country needs,” states Mr. Saiyed.

The US$32 million project for Quantum Terminals will have a total capacity of 75,000m³.

Chemie-Tech LLC TECHNICAL EXPERTISE AND QUALITY Chemie-Tech has cemented its place in the market over the past 17 years, making a name for itself as a contractor able to provide tailor-made turnkey solutions. As well as using more conventional methodology, the company has embraced the use of the jacking up method for its storage tank projects.

Mr. Saiyed explains further: “We are utilising the jacking method technology for the construction of big storage tank farms. This jacking method saves us a lot of manpower and there is less risk and a shorter timeline also. We can say tentatively that we are saving 40% of the resources in terms of the cost, in terms of the timeline and in terms of the manpower by utilising this technology.”

Although less straightforward than the more traditional method of essentially building the tank from the bottom up, the jacking method uses hydraulic jacking systems to lift the tank walls as they are constructed on the ground. This technique eliminates any need for working at height and greatly reduces the risk of accidents, creating a safer environment for the company’s employees. Mr. Saiyed explains: “It is actually our commitment. We are a company which does not take HSE or safety seriously by compulsion; we take it seriously by choice.”

In order to achieve the strong growth that Chemie-Tech has displayed over recent years it is clear they have had a genuine focus on quality work. In such a competitive market, reputation is everything and Chemie-Tech has ensured its long-term success by showing a real passion for high standards and superior workmanship.

“We are a company which has been sustaining in a competitive environment for more than 17 years,” explains Mr. Saiyed. “It is the leadership of the

company. The company is led with the immense industry quality of myself, Mr. Bawa, and Mr. Hiren Adhiya - as well as its employees. We are very glad that we have very dedicated employees and the company has a very good employee-friendly environment.

So altogether the leadership, the employees, the environment and the resources, is what has brought the company to this level.”

Looking to the future, Chemietech envisions continued success and growth within the market. The company is in an ideal position to increase its reach with plans to expand further into GCC, North America and

Australia to better serve its customers.

With a strong track record and a focus on quality work, Chemie-Tech will continue to deliver the types of projects that provide the foundations of the oil and gas industry.

“We want to be the global preferred contractor for oil and gas projects and we want to be the global preferred contractor which delivers a project within the time and to a high quality.

We are looking forward and aim to have our business in each and every continent wherever we are present.

We want to be around a billion dollar company in the next two to three years,” concludes Mr. Saiyed

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PAGE 95

Efficient transshipment in the Port of Ventspils Editorial: Rosie DeWinter

As the most technologically advanced and largest crude oil and petroleum product trans-shipment company in the Baltic Sea region today, Ventspils nafta terminals (VNT) has a total tank storage capacity of an exponential 1.2 million cubic metres. Providing a range of transit services, this Latvian company continues to diversify, placing environmental and community projects high on its list of commitments‌ With an irrefutable reputation as the largest and most technologically advanced crude oil and petroleum product trans-shipment company within the Baltic States region, Ventspils nafta terminals (VNT) is a core company of one of the largest group of companies in Latvia – the

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Ventspils Nafta Group.

With five decades of invaluable experience operating within the icefree port of Ventspils, its facilities today cover a total area of more than 100 hectares including a tank farm with 105 storage tanks.

Operating in such a vast area,

VNT is able to offer innovative and competitive services, all from one united control room.

PETROLEUM PRODUCT SERVICES The handling and storage of petroleum products requires not

Ventspils Nafta Terminals only the highest safety measures to be implemented but environmental care and consideration, which has been integral to the company, especially within the last decade.

VNT offers a variety of services, namely the receipt of gas oil from the Polotsk-Ventspils pipeline and petroleum products by either rail or sea. The company also deals in the storage of these products – the VNT petroleum product storage tank farm, with a total capacity of 1,195 000m 3, is the largest in the Baltic Sea region.

Since 2010, VNT has been recognised as the sole provider within the region of butanisation – a method involving the mixing of gasoline with liquid butane using in-line blending technology.

In addition to the storing of petroleum products, VNT provides the trans-shipment of gasoline and gas oil which takes place at four berths located in the port of Ventspils. This facility can also service four vessels and is able to withstand a deadweight of between 2,500-100,000 tons.

Impressively, VNT’s facilities do not stop at the storage and transportation of petroleum products and gas oils, the facility also includes a laboratory where 165 quality tests can be carried out each day which works out to be 40,000-60,000 every year.

Operating on a 24/7 basis, VNT’s on site fire-fighting station, with a fully automated control centre boasts some of the most advanced equipment and technology in Latvia today. With over 300 fire extinguishing foam and water hydrants and a fleet of eight fire-fighting vessels, this only cements the importance of safety standards further and illustrates how regulated environmental and safety measures is instrumental to

the company.

A member of the Management Board and Managing Director of VNT, Lars Pantzlaff has got his fair share of experience within the industry, previously working for U.S. company APV Systems Inc., where he monitored projects from Australia to the USA and Uzbekistan.

Also working for Lurgi Oel Gas Chemie GmbH, Pantzlaff managed communications and interfaces with investors and local communities at the Trinidad Methanol plant construction site and more recently, he has worked with Uhde GmbH on an industrial chemical complex in Egypt before joining Ventspils nafta terminals in 2009.

Instrumental to the industry, VNT provides specialised petroleum product handling processes and trans-shipment, placing it as an important transit market leader. It currently has three rail racks which are used for the handling of rail tank cars carrying the products VNT transports; including gasoline, gas oil and crude oil. Railway rack No.4 has the option of being utilised for gasoline blending with liquid butane – from August 2009 VNT began to provide blending operations on vessels – and allows for the servicing of up to 10 rail tanks cars simultaneously.

VNT is able to discharge 176 tank cars at the same time with a

staggering total annual capacity of the terminal of 7, 000 000 tons for receiving products via the railway.

ENVIRONMENTAL MANAGEMENT SYSTEM The topic of sustainability and environmental awareness is integral to the company, setting up its Environmental Management System, this helps to analyse the operations of the company and the potential risks, ensuring regular and efficient environmental monitoring.

A network of groundwork monitoring wells, allow VNT to assess the quality within both the terminal and along the pipeline corridor up to the port. The information collected is then analysed, summarised and inputted into an ecological database.

This information is then regularly reported to the City Council and Regional Environmental Board of the State Environment Service regarding air quality observation.

In addition to the data system it

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operates, VNT has in place a number of environmental measures including a petroleum product vapour recovery system which has been implemented on several of its tanks and one rail tank car loading rack.

With ten years’ worth of investment in resources for the remediation of the environment, VNT has adopted a noteworthy responsibility to reduce its impact on the environment, which has been heavily influenced through the introduction of the Environmental Management System.

COMMUNITY FOCUS In September 2013, Riga Technical University (RTU) and Ventspils nafta terminals signed a mutual cooperation agreement in science and professional development. W ith VNT’s ongoing commitment to the community and students, it provides internships in

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“VNT is the largest trans-shipment company for petroleum products in the Baltic States and we have the constant ambition as to our technological base providing a wealth of opportunities to grow cooperation on the technical field”

the affined fields of studies according to the curriculum.

The agreement between these two companies will help to promote innovative learning, joint research activities and development.

In a statement, Lars Pantzlaff explained: “Exposing students to the business environment, such as VNT, along with their academic curriculum is an important cornerstone for becoming a wellrounded future professional. For us such interaction is exciting and we are confident in this cooperation between RTU, its students, and VNT. VNT is the largest trans-shipment company for petroleum products in the Baltic States and we have the constant ambition as to our technological base providing a wealth of opportunities to grow cooperation on the technical field.”

Ventspils Nafta Terminals A BRIGHT FUTURE In November last year, Ventspils Nafta reported profits of €6.87 million in 9M/2014 which is largely attributed to the €6.37 million dividend income derived from its investment in Ventspils nafta terminals.

Reporting its net profit of €10.29 million, VNT’s income also rose by €4.53 million to €59.95 million which the company attributes to the minor growth in its volumes of petroleum products to 8.5 million tonnes.

Receiving a Gold in the Sustainability Index in June last year, Pantzlaff explained: “Over several years we have purposefully worked to reach one of the best positions in Latvia regarding matters of occupational safety and environmental

“Over several years we have purposefully worked to reach one of the best positions in Latvia regarding matters of occupational safety and environmental protection, therefore we are really pleased that our efforts have led to us being awarded with the Golden category”

protection, therefore we are really pleased that our efforts have led to us being awarded with the Golden category” - the future for this company, which has now spanned half a century, is looking positive. And now, VNT is gearing towards insuring the efficiency of its operations remains positive and contributes in bringing value to both the customers and company shareholders.

Impressively, over the course of the last five years, an estimated 15 million LVL (lats) has been invested in the development of this company which no doubt will continue to invest its experience and technical knowledge, resulting in a very successful and bright future within the Port of Ventspils

We wish our partner Ventspils Nafta Termināls Ltd a prosperous, happy and successful New Year 2015!

Created by Nikola (6 y.) daughter of BTS employee

JSC “BALTIJAS TRANZĪTA SERVISS” Andrejostas Street 10, Riga, Latvia, LV-1045, Tel: +371 67233633 Fax: +371 67704222 E-mail: bts@bts.lv

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Proven experience in ship building and repairs Editorial: Tim Hands

Built between 2007 and 2009 by the Besiktas Group, one of Turkey’s leading shipping and shipbuilding companies, Besiktas Shipyard is one of the most well established ship building and ship repair yards in the country. With its state-of-the-art facilities, experienced human resources and service oriented company culture, it aims to be one of the most reliable ship building and ship repair yards in Europe.

Boasting one 235 metre long, 40 metre wide dry dock alongside two slightly smaller panamax size floating docks dedicated to repairs and conversions, Besiktas Shipyard has been able to put together a strong and

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experienced team to head up its Ship Repair division, to provide the highest level of performance. The extensive services on offer include dry docking, manoeuvring and berth services and steel renewal works, while the yard also has

at its disposal lay berths, lifting capacities, ship repair tools and equipment - all of them central to the aim of becoming a leading ship repair & conversion shipyard in Europe.

These competitive services

Besiktas Shipyard are geared toward high-profile shipping segments such as offshore ships, oil rigs and gas carriers. This is both high-profile and technically demanding work, which is consistently underpinned by the strong values dictating the division’s operations, which sees an experienced work force strive tirelessly to provide this fast and reliable service for its diverse customer set. The enlisting of permanent contractors means that quality is proven and always in evidence, and all its work refers back to a strong, self-imposed customer orientated mentality.

Established by the renowned maritime services company Besiktas Group, itself founded in the 1960s to provide vessel management to the oil industry, first put to use shipyards’ facilities to begin building vessels in co-operation with a range of subcontractors in the early

2000s. Clearly this proved hugely advantageous for the Group, as it enabled it to build vessels exactly to its own specifications. As shipyard manager Zeki Korkmazgil adds: “At the end of the day, in 2007, the Group had a lot of good men with experience in building and repair and also wanted to own its own shipyard,” and it was inevitable that the beginning of 2007 would see Besiktas building its own shipyard.

TAILOR-MADE SOLUTIONS Besiktas Group had already amassed a portfolio of 21 tankers as project manager and builder of these vessels, before its yard was opened in 2008, having overseen the various aspects of shipbuilding by providing not only the design, equipment, workmanship, but also full contractual responsibilities through its third party facilities. Of these high value and sophisticated

vessels, the majority have been employed by owners in operations worldwide, by such esteemed players as Unitankers Denmark, Groupe Desgagnes Canada, Petromarine France and Unifleet Netherlands, to name but a few.

The provision of these services to such renowned and first class clients, along with having accrued a full awareness of the industry standards thanks to the culture received from the ship management arm of the company, has enabled Besiktas Shipyard to become established as a shipbuilder with an excellent reputation and a solid reference list. Besiktas Shipyard has in recent years concentrated on providing special purpose vessels with tailor made solutions in order to diversify the ship building portfolio, which has seen it focus its building efforts on several key markets in recent times.

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Of these markets, it was contracts from Gas and Heat of Italy which enabled the yard to explore the sophisticated and complex gas focussed arm of shipbuilding, and as Korkmazgil explains, “these are very sophisticated builds carried out in conjunction with our trusted subcontractors.” The successful delivery of four vessels and good cooperation with Gas and Heat allowed the yard to proceed to an even more complex field in the gas segment, with two 9000 cbm Ethylene Carrier vessels delivered to Galata Shipping towards the end of 2013. Also among the targeted areas were the offshore and fishing markets, with Besiktas providing vessels intended to be used by oil major and energy conglomerate LUKOIL in their operations in the Caspian Sea. All of them boast multi-purpose service capabilities in operations under high ice class conditions, including the carrying of various cargoes, rescue, standby and oil recovery functions. During the same period in 2012, the YTTERSTAD fishing company, located in the northern part of Norway, opted to acquire its new flagship from Besiktas Shipyard, a 75 meter long vessel delivered in 2014, with the main purpose of pelagic fishing and pelagic trawl. In a similar vein was the contract with THOR of Faroe Islands, to supply four units of 65 metre Seismic Support Vessels.

An important aspect of Besiktas Shipyard’s plans for further development was its recent sale of a pilot boat, already under construction at its yard, to Sea Eagles Shipping of Hamriyah Port. Sea Eagles Shipping has gained its reputation through providing marine and offshore services to the oil and gas sector, as well as engineering groups, operating from its main office in UAE and two

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branch offices in Saudi Arabia and Bahrain. Announced at last year’s Seatrade Middle East Maritime, the maritime market place for the Middle East, the steel-made craft measures 17 metres, with capacity for six pilots, 1,500 horsepower and 19 knots maximum speed. Although active in the workboat sector, Besiktas Shipyard has historically been better known for its larger craft, of sizes such as trawlers and fishing vessels, seismic support vessels and LPG carriers.

“The Group had a lot of good men with experience in building and repair and also wanted to own its own shipyard” This workboat arm of the business is however clearly a central focus for Besiktas, with its 2014 tally standing at six vessels, alongside three tugs, two mooring boats and one pilot vessel. This number is expected to rise to between ten and 15 vessels in 2015, while in 2016, it hopes to deliver a 100 metre multi-purpose supply vessel to deep-water operator Myklebust of Norway.

“We recently signed two firm new build contracts with a Canadian owner for two 15,000 dwt bitumen carriers of 130 metres in length,” said Mesih Behkam, a representative of the workboats division at Besiktas told Seatrade Global.

It is the myriad of services that supplements the shipyard’s duo of floating docks and a 235 metre

graving dock that really helps set it apart from its peers. There is a steel fabrication workshop capable of producing 30 tons per day, while a 2.100 square metre storage facility is managed by an online stock program, enabling efficient logistic services and with the monitoring of critical stock levels. Equally impressive are the shipyard’s blasting and tank coating facilities - the painting workshop area boasts the most modern of equipment providing painting, blasting and scraping facilities without falling foul of issues of dust, humidity or temperature.

Step away from the operations area, however, and Besiktas Shipyard again comes into its own. The Shipyard’s offices, meeting and conference rooms and guest rooms allow clients and representatives unprecedented comfort in which to work on site, or one of its 15 rooms for overnight accommodation, offered free of charge during vessel repairs. There is even a large mess room and cafeteria serving breakfast and dinner, and a basketball and football pitch for those break times so necessary to effective productivity, all serving to make this a company with whom dealings are never less than pleasurable.

EXPANSION ON THE HORIZON This is all paving the way nicely for some significant further developments for Besiktas Shipyard, and its intention of leading the market nationally. Perhaps the most significant of these are the expansions planned across its diverse set of workshops, the ten of which are located across a total area of 50 thousand square metres.

These cater for all things mechanical, electrical, insulation and steel, and their housing of everything under one roof means a huge saving in

Besiktas Shipyard otherwise wasted transportation time. The workshops are operated by yard technicians under the watchful eye of project engineers, and extensive machinery such as lathes, balancing equipment and electrical motor ovens enables most repairs to be carried out without even leaving the premises. All of this exemplary work across such a diverse set of operations relates back to a strong and overarching vision: to become a leader in the national market and gain a foothold as a building and repair shipyard in the international market.

However, this is a yard committed to going about its business in the correct way, too, both built and managed with maximum respect to human health, safety and environmental protection. It is, in a sense, a

“It is the myriad of services that supplements the shipyard’s duo of floating docks and a 235 metre graving dock that really helps set it apart from its peers”

collection of examples of the very best practice from all around the world, as Besiktas Shipyard’s safety managers regularly visit several well-established yards in order to improve the safety and environmental practices in use at its own yard. Its receipt of the Outstanding Safety Achievement Award underlines such unwavering commitment to exemplary practice: “The Besiktas Group has managed a complex transition, in a challenging trading geography, while consistently delivering safe operations consistent with the highest standards,” and goes some way to underlining just how expertly the balance between quality and safety has been achieved, as this new yard seeks to establish itself among the greats

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Investment support for Scotland Editorial: Ajuanne Payne

Hunterston offshore testing facility

“Scotland is recognised to be world-leading in terms of innovation and enterprise,” says Bob Keiller, Wood Group CEO, and now, with Scotland home to more than 2000 companies working within the energy sector, there has never been a better time to invest in Scotland. Total World Energy speaks to Ewen Cameron, International Sector Head, Renewable Energy & Low Carbon Technologies, SDI who explains why so many foreign investors are now looking to this key UK energy hub for future renewable project investment and how SDI is able to support them every step of the way…

Q. Could you tell us a little bit about the background and history of Scottish Development International (SDI), and why it was setup?

Scottish Development International is a joint

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v e n t u re b e t w e e n t h e S c o t t i s h Government and the two enterprise entities of Scotland: Scottish Enterprise, the main economic development agency in Scotland and Highlands & Islands Enterprise,

accommodating the Highlands and Islands.

O u r ro l e i s t o p ro m o t e S c o t l a n d a s a g re a t l o c a t i o n to develop business, attract i n w a rd i n v e s t m e n t , a n d t o support the internationalisation

Scottish Development International o f S c o t l a n d ’s g ro w t h s e c t o r s .

S D I h a s 4 1 o ff i c e s a c ro s s 1 9 c o u n t r i e s , s t a ff e d b y a m i x of international trade experts f ro m t h e U K a n d l o c a l p e o p l e f ro m t h e re s p e c t i v e m a r k e t s .

Some of these international o ff i c e s a re c o - l o c a t e d w i t h U K Tr a d e a n d I n v e s t m e n t ( U K T I ) and this is obviously a very i m p o r t a n t re l a t i o n s h i p f o r u s .

i n t ro d u c t i o n s t o o r g a n i s a t i o n s that can support the organisation.

We a l s o t a k e a n a c c o u n t m a n a g e m e n t a p p ro a c h t o potential investors overseas.

T h i s m e a n s p ro v i d i n g e a c h i n t e re s t e d i n v e s t o r w i t h a dedicated account team of four or five people to facilitate the i n v e s t m e n t p ro c e s s .

Q. What is the aim of the organisation? What kind of support do you provide for inward investors and Scottish companies? What is the process?

Q. Are your offices placed in strategic locations for the energy industry?

O u r f i e l d o ff i c e r s e n g a g e w i t h p o t e n t i a l i n w a rd i n v e s t o r s a ro u n d t h e g l o b e t o u n d e r s t a n d t h e i r re q u i re m e n t s in developing and operating their business in the UK and S c o t t i s h m a r k e t s . We t h e n t r y and match their needs with our existing capabilities to help them to achieve their business objectives.

We h a v e a n u m b e r o f l e v e r s that we can use to support their financial investment. For example, Regional Selective Assistance, which is a E u ro p e a n U n i o n g r a n t f u n d i n g mechanism that is available in c e r t a i n re g i o n s o f S c o t l a n d , t o support companies looking to i n v e s t h e re .

We a l s o h a v e t r a i n i n g support capabilities and dedicated grants available to i n t e re s t e d c o m p a n i e s .

S o i t ’s a l l a b o u t understanding what the i n v e s t o r ’s l o o k i n g t o d o , demonstrating that Scotland has the capabilities to re s p o n d t o t h e i r n e e d s a n d w h e re p o s s i b l e , t o p ro v i d e financial support and facilitate

Ye s , d e c i s i o n s a b o u t o ff i c e l o c a t i o n s a re b a s e d on potential business opportunities. For example, o u r D u s s e l d o r f o ff i c e i s strategically located to support o u r i n t e re s t s i n o ff s h o re w i n d o p p o r t u n i t i e s . R e c e n t l y, w e ’ v e a l s o o p e n e d o ff i c e s i n We s t Africa, Brazil and Calgary to take advantage of the opportunities in oil and gas a n d t o p ro v i d e s u p p o r t f o r Scottish companies looking to export into these markets.

Q. Today, what would you say are the main reasons to invest in Scotland? What sets Scotland apart and what are the key energy projects which inward investors are interested in?

Scotland is home to a b u n d a n t n a t u r a l re s o u rc e s , which makes it a natural home f o r s u c c e s s f u l re n e w a b l e e n e r g y g e n e r a t o r s . We a re h o m e t o a q u a r t e r o f E u ro p e ’s wind and tidal energy and t e n p e rc e n t o f i t s w a v e re s o u rc e , w e h a v e e x c e p t i o n a l experience, a highly qualified w o r k f o rc e a n d f a n t a s t i c re s e a rc h f a c i l i t i e s . A t t h e same time, we enjoy unrivalled

s u p p o r t f ro m t h e S c o t t i s h Government which is deeply committed to the success of t h e s e c t o r.

Only the last 12 months, 4 . 1 G W o f o ff s h o re w i n d p ro j e c t s h a v e b e e n c o n s e n t e d by the Scottish Government.

T h i s re p re s e n t s c o n s i d e r a b l e o p p o r t u n i t i e s f o r i n w a rd i n v e s t o r s w h o a re l o o k i n g to enter the Scottish wind market.

Q. What are some of the ongoing renewable initiatives in Scotland at the moment?

O n e o f t h e m a i n a re a s of focus for us within the re n e w a b l e s s p a c e i s o ff s h o re wind, which we believe re p re s e n t s a s i g n i f i c a n t economic opportunity for Scotland. Marine energy is a l s o a s e c t o r w h e re S c o t l a n d has developed a global lead.

O n s h o re c o n s t r u c t i o n h a s a l re a d y c o m m e n c e d o n t h e w o r l d ’s l a r g e s t p l a n n e d t i d a l a r r a y – t h e M e y G e n p ro j e c t – in the Pentland Firth. Once completed, the 269-turbine development could power almost 175,000 homes and s u p p o r t m o re t h a n 1 0 0 j o b s i n the north of Scotland.

Scottish Enterprise has also been working with a n u m b e r o f p a r t n e r s t o p ro v i d e financial investment support t o m a k e t h a t p ro j e c t g o a h e a d . G l o b a l l y, t h e re a re a lot of people looking at this p a r t i c u l a r p ro j e c t b e c a u s e i t could have a significant impact not just for how tidal energy is developed in Scotland but how i t ’s d e v e l o p e d g l o b a l l y.

Scotland also has some expertise in Smart Grid Te c h n o l o g i e s , d u e t o o u r

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i n c re a s i n g l y d i v e r s e m i x o f e n e r g y s o u rc e s a n d t h e associated need to integrate i n t e r m i t t e n t re n e w a b l e s .

Scotland has a number of companies who’ve developed n e w t e c h n o l o g i e s i n t h i s a re a , also known as Active Network Management.

This expertise can then be e x p o r t e d a ro u n d t h e w o r l d t o c o m m u n i t i e s l o c a t e d o ff t h e g r i d f o r e x a m p l e , a n d a re l o o k i n g t o u t i l i s e n e w s o u rc e s o f re n e w a b l e e n e r g y m o re e ff i c i e n t l y.

Q. With the companies you have previously worked with both the inward investors and the Scottish companies - how did you help them secure investment?

I’ll give you some examples: Scotland has a significant heritage in the oil and gas sector so we have a number of subsea engineering companies who have been looking to d i v e r s i f y i n t o o ff s h o re w i n d .

Some good examples include Ecosse Subsea, a specialist in boulder clearance work a n d F o u n d O c e a n , a g ro u t i n g specialist which has been very successful in accessing G e r m a n p ro j e c t s w h e re t h e re a re f e w i n d i g e n o u s G e r m a n companies with the same level o f e x p e r t i s e o r t r a c k re c o rd .

I n t e r m s o f i n w a rd investment, our key focus o n t h e o ff s h o re w i n d s i d e is to attract added value manufacturing, so we’ve been d e v e l o p i n g re l a t i o n s h i p s w i t h a l l t h e m a i n m a n u f a c t u re r s who have aspirations to m a n u f a c t u re i n E u ro p e a n d t h a t involves, working with them c l o s e l y, u n d e r s t a n d i n g w h a t

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Ewen Cameron

t h e i r p l a n s a re a n d p ro m o t i n g S c o t l a n d ’s p o r t c a p a b i l i t i e s .

We a l s o h a v e s o m e g r a n t s t h a t w e c a n o ff e r t o c o m p a n i e s to support them to come and d o p ro t o t y p i n g o f t u r b i n e s i n Scotland with the intention that i f t h e y p ro t o t y p e h e re , t h e y would bring the manufacturing at a later date.

One of the grants funding w e h a v e h e re i s c a l l e d t h e Scottish Innovative Foundation Te c h n o l o g i e s F u n d a n d t h a t i s t o a t t r a c t m a n u f a c t u re r s of innovative foundations to c o m e a n d m a n u f a c t u re h e re i n S c o t l a n d . We ’ re t r y i n g t o tie our innovative funding mechanisms to economic benefit to our aim, which is to attract added value m a n u f a c t u r i n g h e re .

Q. In recent years, have you found more foreign companies are looking to invest in Scotland and in renewable energy projects?

I n t h e re n e w a b l e e n e r g y s e c t o r, y e s t h e re h a s b e e n a d d e d i n t e re s t a n d s u p p o r t .

We h a v e s u c c e s s f u l l y b u i l t a g o o d i n t e r n a t i o n a l p ro f i l e in terms of our ambition f o r re n e w a b l e e n e r g y. F o r e x a m p l e , i n a re a s l i k e f l o a t i n g wind - technology which is c u r re n t l y b e i n g d e v e l o p e d - Scotland is viewed as a good location to test these devices. Japan is also looking to develop their floating wind m a r k e t , s o t h e re h a s b e e n s u s t a i n e d i n t e re s t f ro m t h e m in Scotland and exploring opportunities to collaborate.

Scottish Development International S i m i l a r l y, J a p a n e s e c o m p a n i e s also look to Scotland for investment. For example Japanese company Mitsui i n v e s t e d i n o n e o f S c o t l a n d ’s large energy fabricators, G l o b a l E n e r g y G ro u p , a s a w a y o f t a p p i n g i n t o t h e re n e w a b l e energy sector in the UK. So there are quite a few companies looking at the opportunities to invest in Scotland, partner with a Scottish company or inject capital into the Scottish supply chain.

Q. Where does this investment leave Scotland?

How does it benefit the country economically?

The reason we want to attract a turbine manufacturer to come here is if you can anchor significant added value manufacturing, then you can build a cluster of Scottish companies around that and subsequently develop expertise, capabilities and exports.

W ithout that type of significant

manufacturing here, it’s not as easy to attract more new companies developing expertise in the renewable sector. We’re making good progress in that regard but it is challenging.

Q. How are the Scottish companies exporting their expertise to companies and projects abroad? Have these expertise developed?

Scottish Enterprise supports individual companies to help them export so that can be any n u m b e r o f t h i n g s : re s e a rc h i n g the market on their behalf, p ro v i d i n g i n t e r n a t i o n a l s t r a t e g y advice, working with the company to match their own capabilities with opportunities a b ro a d . I t i s i m p o r t a n t t o m a k e s u re t h e y c l e a r l y u n d e r s t a n d what the opportunity is in the specific market, trying not to access too many markets at one time, so a strategic a p p ro a c h a n d a n a c t i o n p l a n .

S o w e p ro v i d e s t r a t e g y development support,

we work with a company and its management team over a period of time to fully understand what the o p p o r t u n i t i e s a re a n d h e l p them understand a strategy p l a n . We a l s o a c c o m p a n y t h e m during industry exhibitions.

We also organise a number of meet-the-buyer supply chain events. For example, the key developers of wave, tidal and offshore wind projects in Scotland, we have members of staff working in a very focused way with each of these developers from the stand, with timelines of the projects, supply chain requirements and we will organise events jointly with the developers to provide them with access to a number of companies in Scotland who could potentially become suppliers.

S o w e h a v e a s t ro n g facilitation rule and we would do the same with a key customer in Germany looking for companies in Scotland who c o u l d re s p o n d t o t h e i r n e e d s

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©Tesla Motors

The behemoth from Belarus Editorial: Roland Douglas

Coal fired power stations still play a major role around the world in the production of electricity. But how do we get coal from mine to processing plant, in sufficient quantities, in a way that is environmentally friendly? Maybe the BelAZ 75710, with its electric drive system, holds the answer or at least some inspiration for the future…

Two of the world’s most important energy sources: Coal and electricity.

They go hand-in-hand. Coal powers some of the world’s greatest and most reliable electric-generating power stations and electricity is now a staple of life – could you survive without it?

Interestingly, the transport sector, a sector where we have seen huge innovations in the past decade, has

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used coal as a primary fuel and also electricity. But as we move towards a cleaner, more environmentally friendly future, are coal powered vehicles now rightly kept in museums, with electric power driving the industry forward?

One thing that is for sure, while steam trains and ships that use coal as fuel are rightly only used for show, we still need coal to generate the electricity that will take its place in the

transport industry. So what about a vehicle that is a workhorse of the coal production business but is powered by electricity? Yes, of course, we are talking about the dump truck. Small or large, they are vital in coal mines for moving product but one of their pitfalls is the amount of petrol or diesel that they burn. But in 2013, a breakthrough was made when BelAZ, a major world manufacturer of mining

Future Power dump trucks of heavy-duty and super-size load capacity from Belarus, unveiled the 75710 – one of the world’s largest dump truck, powered by electric motors.

The truck is more than 20 meters long, almost ten meters wide, and eight meters high. It weighs 360 tons when empty and can transport around 500 metric tons of material – that equates to about seven fully fuelled and loaded Airbus A320-200 planes or more than 350 VW Golf cars. It can travel up to 40 mph when empty and started at its first job in a Siberian open-pit mine in the Kuzbass region of Russia The Belarusian manufacturer wanted the 75710 to be not only the biggest in the world but also to carry 25% more than the previous record

holder. With six times the power of a modern Formula 1 car and with an extremely sophisticated power setup, this is a truck that easily achieves its goals.

The truck is powered by an electric drive system comprising four electric traction motors from Siemens, each with an output of 1,200 kilowatts (approximately 1,800 hp). The electricity is provided by two generators, each of which is driven by a 16-cylinder diesel engine with an output of approximately 1,700 kW; so while all the effort has been made to make the system as environmentally friendly as possible, CO2 emissions still remain. But this is a step in the right direction; fuel consumption is an estimated 1,300 litres per 100km, however the truck can be run on

just one of its engines when it is not loaded in order to save fuel.

Some critics have said that it’s a shame the vehicle couldn’t be 100% emission free; maybe with a pantograph to power it from overhead wires rather than petroleum-burning engines, or batteries to run on the flats, completely eradicating the need for fossil fuel but Siemens insist that this is still a ground-breaking vehicle.

Unlike previous models, the truck is outfitted with eight tyres (each double the height of a tall person), because each tyre is designed to carry a load of only about 100 tons.

An extensively tried and tested drive system is used as the basis of the truck’s drive system, and Siemens engineers also developed a new type of control system using all of the 15

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years of experience in finding ways to make these giants of the mines more efficient.

One of the other major successes of the 75710 is the trucks turning circle. With power stations demanding coal at ever increasing rates, there is no time left for dump trucks that are difficult to manoeuvre and have to shunt forwards and backwards before crawling at a snail’s pace to the unloading location. Both axles of the 75710 can steer allowing for a turning radius is 19.8m – only a few feet more than its smaller brother (17.2m), the BelAZ 360. This means the truck can pull up, fill up and then turn around and depart all in the space between two cricket wickets.

Then the truck can pull away and hit speeds of 25mph on a 10% gradient and even tackle gradients of up to 18% (depending on load).

One of the most important figures that we have neglected to mention so far is the price. As you can probably imagine, for a vehicle of this size,

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the price tag is equally as immense.

If you want one for your coal mining operations, you’re going to have to fork out at least £3.85 million. But for that price, you will also receive full support from Siemens who can monitor the operational efficiency of the electrical motors from a base in Alpharetta, in the US state of Georgia, thanks to remote connectivity.

Of course, this is not like a regular company car. When you get your hands on one, you will have to invest time and money into training drivers; no matter their experience, driving the 75710 is different. Andrej Vashkevich, a Belaz test driver and one of the first people to drive the truck after it was released, said: “I feel proud to be driving such a giant. It is easy to drive but you do need a little time to get used to its dimensions. The all-wheel drive makes it easier to drive in tough conditions such as on slippery roads and braking is more efficient.”

The largest dump truck in the world prior to the launch of the 75710

was the Liebherr T 282B which had a capacity of 363 tons and was manufactured in Newport News, Virginia, USA. This truck also made use of Siemens electric motors for the drive system. However, these were again powered by diesel generators meaning that although the truck was extremely powerful, it was still not completely carbon neutral.

The next step in this industry; an industry that is home to some of the most unique engineering skills out there; is to develop a system to transport coal and other precious materials from mine to processing plant in a way that has no impact on the environment. Perhaps electric motors are the way forward or maybe we need to look to other, completely revolutionary methods; one thing that is for sure, these trucks will only get bigger, they’ll only get faster and they’ll only become more sorely demanded as the global demand for power from traditional power stations continues to grow

Gadget Box

ZAHARA GROUP is a Middle East based conglomerate in downstream petrochemical business since 2003. With its group Corporate Office in Dubai – UAE ZAHARA GROUP has established its businesses in India, Singapore, Kuwait and Saudi Arabia

Manufacturing & Refining

Grease & Lubricants

Storage Terminals

Shipping & Logistics

Trading

Our presence

ZAHARA Group owns two Refining & Distillation plants in the Middle East in Sharjah, UAE and Riyadh, Saudi Arabia with capacity of 170,000 MT/annum.

ZAHARA has a storage terminal at Hamriyah free zone with capacity of 100,000 CBM. The storage facility also has the capability to handle high viscosity products like Rubber Processing Oil and Heavy Oils. The company is planning to come up with 500,000 CBM capacity at Fujairah.

Our core trading products are Base Oil, Bitumen, Fuel Oil, Gas Oil, Naphtha, RPO, Grease and Lubricants.

Our Corporate office Address Al Zahara Petrochemicals llc No. 1705, Citadel Tower,Business Bay, P O Box # 49875, Dubai – UAE

Our Brand is “LUBISLE”, with the capacity of 200,000 MT /annum for all kinds of Lubricants and Lithium and Calcium based Grease 50,000 MT / Annum.

ZAHARA owns two vessels with a capacity if 4000 DWT each. One is exclusively for dirty cargo loading like bitumen, RPO and fuel oil and the other is exclusively for gas oil. Also we do chartering vessels on a time basis as well as a spot basis to ensure proper supply of trading without disturbing commitments with customers.

UAE, India, Singapore, Indonesia, Malaysia, KSA, Kuwait, Bahrain.

Our Contact Details T: +971 4 4522230 F: +9714 4504114 E: info@zaharagroup.com

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