Newsflash no. 13 Offshore Energy by Navingo BV

edition 13 - october 2012

newsflash

23 & 24 October 2012 amsterdam RAI | The Netherlands www.offshore-energy.biz

Read more about Michael Kahn’s (Managing Director, Jumbo) call for redesign in the offshore wind turbine industry on page 3.

exhibitor NEWS ON PAGE 2 & 7 • DylanGroup takes responsibility as a durable business • NOGEPA’s accreditation of Falck Nutec’s MoME Management Training • Seafox 5 expected in the North Sea

Industry Panel to discuss growth challenges Goof Hamers (CEO, IHC Merwede), Jan-Pieter Klaver (CEO, Heerema Marine Contractors) and Frans van Seumeren (Chairman, RollDock, Roll-lift, Barge Master) will engage in a discussion with other industry figureheads during the Offshore Energy Industry Panel on 23 October. Other confirmed speakers are Jan Lambregts (Global Head Financial Markets Research, Rabobank International) Vincent Oomes (Partner, Deloitte), Gilbert van den Brink (Managing Director, Wintershall) and Bram van Mannekes (former Secretary-General, NOGEPA). The central theme is The offshore sector - A driving force of economic growth. Contributing 1.9 billion euros in added value to the Dutch economy, the offshore sector is one of the largest growth generators of the maritime cluster. The sector is characterized by an overall increase in turnover, production value, added value, export value and employment. To be able to keep adding value to the economy, the industry faces a number of challenges. The sector is in dire need of highly educated people. Continuous research and innovation are required to maintain and expand the industry’s strong international position. Gold Sponsor

Finally - the industry would greatly benefit from consistent energy policy. The first ever Industry Panel aims to engage representatives from industry, education, government and politics in an open discussion. Deloitte supports the event as Knowledge Partner. The discussion is led by Rens de Jong, presenter of BNR Nieuws Radio. The event is sponsored by Rabobank. The Industry Panel is an invitation only event following the official opening of Offshore Energy.

Sponsors and partners

LIGHTWEIGHT MODULES

Ruud Zoon, Managing Director, GDF SUEZ E&P Nederland and chairman of NOGEPA, shares his view on the importance of Dutch gas on page 6.

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Exhibitor News

seafox 5 expected in the North Sea The self-propelled DP2 jack-up Seafox 5 is close to delivery in Singapore for subsequent dry-tow to the North Sea. Following the naming ceremony at Keppel FELS shipyard on 18 August 2012, the multi-purpose support vessel is currently carrying out sea trials and is expected in the North Sea early November. This new KFELS design is an innovative concept for a variety of offshore applications and based on the result of a combined market knowledge and technology expertise, and incorporates 20 years of Workfox jack-up operational experience. The Seafox 5 can be used for the heaviest foundation and turbine installations in the offshore wind market, as well as for installation of field development platforms and decommissioning activities (platform and jacket removals) in the Southern North Sea, Danish Sector and large parts of the Central North Sea up to depths of 65-70m for clients in the offshore wind and oil & gas industry. The self-propelled DP2 jack-up is equipped with a heavy-lift pedestal crane capable of hoisting 1,200 metric tons, a free deck area of more than 3,500 m2, a variable load of 7,000 metric tons and a jacking system for quick and frequent usage. The enhanced jacking and moving criteria (Hs 2.0m by 6-8/sec period) of the Seafox 5 will provide operators substantial added value, as well as the impressive survival criteria (Hmax 20m by associated period of 14.6 sec in 65 m water depth and current of 2 knots).

Upon arrival the Seafox 5 will be mobilised in Vlissingen for her first assignment. The jack-up has been chartered to Aarsleff & Bilfinger Berger Joint Venture (ABJV) to install offshore wind foundations in the 288 megawatt (MW) Dan Tysk wind farm in the German Sector of the North Sea.

NOGEPA accreditation for MoME Crisis Management Training Falck Nutec Falck Nutec in the Netherlands has received a NOGEPA accreditation for a newly developed Crisis Management Training. The curriculum for this training is recorded in the NOGEPA handbook as 2.14 Management of Major Emergencies (MoME). It is set as standard for training of crisis management teams on offshore production platforms. By training with various possible scenarios they are prepared for action during major incidents. This training is unique for Europe. Special facilities were built for it on the training location of Falck Nutec at the Maasvlakte, Rotterdam.

Falck Nutec was approached by NOGEPA to write the curriculum. Direct cause for this was the event of the Deep Water Horizon Incident (Gulf of Mexico 2010) after which the NOGEPA has set itself twelve objectives to prevent incidents like this in the future. One of the objectives was to develop a Crisis Management Training for Offshore Installation Managers (OIM). ,,Well trained Offshore Installation Managers are of great value to us. The MoME training will prepare them properly for major incidents on drilling platforms and offshore production installations.’’ Cees van Oosterom, advisor at NOGEPA. The Offshore MoME training is the first higher management training to be accredited by NOGEPA. The accreditation indicates that the training meets the high standard of representatives of the Dutch Oil- and Gas Production Industry. In various scenario’s participants on the MoME training will be confronted with incidents that can occur while executing daily activities on a offshore platform. The scenario’s can include

both higher management and operational staff because the training facilities are placed in close range of the process site on the training location. Centrica was the first company to participate in the training. ,,The training is very instructive. After a couple of assignments we were more and more acting as a close team. Once a scenario was started and the first instructions were given by the OIM every team member acted like the situation was real. It actually felt like a real crisis situation. Quote from Jan Jaap Haan, Ton Verweij (both E&I Technician) and Martin Boertjes (Lead Process Operator), all employees of Centrica. In developing the MoME training Falck Nutec has cooperated closely with E-Semble. Based on the curriculum Falck Nutec has invested in dedicated hardware and a training accommodation that resembles a control room. E-Semble is responsible for the virtual software simulations.

offshore energy Ensuring the future of offshore wind farms a call for some redesign Renewable energy is a growing market, especially in the Northern European countries. Government policies are aiming for a society that will be less dependent on fossil fuels. However wind energy is still partly dependent on governmental subsidies and tax advantages. This makes the industry vulnerable in economically turbulent times. Governments, although they strongly believe in renewable energy, are nowadays forced to cut budgets which may lead to more short term thinking and decision making within the utility companies. Catch-22 Heavy lift contractors like us have the capabilities and new types of installation vessels on their drawing boards, but are hesitant to invest in an industry that is only able to commit to projects up to the year 2015. At the same time operators can only commit to the construction of new wind farms when the projects will become financially more viable. The floating option The wind industry has to become profitable and that can only be achieved by dramatically lowering the cost of ownership, starting with the installation costs. The offshore wind energy sector should re-invent itself. The present turbine designs are very efficient for land applications, but the installation process at sea craves for new designs and a new installation philosophy. Jumbo strongly believes in the floating option and in pre-piling and mounting transition pieces in an industrialized serial way. We dare to offer a fixed price per jacket-type-foundation as we

are able to work much more efficiently than jack-ups. At the same time we are challenging the turbine industry to alter their design in such a way that they can be mounted by floating vessels as well. Such innovation would lower the costs and shorten the lead times of the construction of wind farms. Lift. Ship. Install. All in one go! Based upon our experience on the Greater Gabbard and Anholt wind farms, Jumbo is convinced it has confirmed that its ‘Lift. Ship. Install. All in one go’-concept in the renewable market is the way forward. Using DP2 heavy lift vessels for the transport and installation of various wind turbine foundations is a very effective way of execution, which we see the market is beginning to recognize. But for a truly successful industry there is a need for more cost reductions. Jumbo has been heavily investing in its fleet and its engineering capabilities to cater for more and more challenging projects, further away from the coast in deeper waters. At the same time we have been continuously improving Jumbo’s Quality, Health, Safety & Environment (QHSE) performance, with our “Stay Well” program and general QHSE focus, so that it goes above and beyond all the latest standards and international regulations. Safety awareness is engrained into the DNA of our employees.

Michael Kahn, Managing Director, Jumbo

We believe that the renewable energy market, in particular the wind farms at sea, is there to stay therefore Jumbo is prepared to break the deadlock by meeting the industry halfway. We

will invest in specialized equipment and the industry will commit to larger contracts. The bold ones will be the winners; we look forward to teaming up with true industry leaders.

Building a reputation for floating installation solutions In the last three years Jumbo has been involved in the safe and successful completion of two prominent offshore wind projects. In 2010 Jumbo efficiently installed 131 transition pieces for the Greater Gabbard Offshore Wind Farm in the UK. In 2012 Jumbo outperformed itself with an even more efficient installation rate at the Anholt Offshore Wind Farm in Denmark, where Jumbo installed a total of 111 transition pieces within a record breaking timeframe. Projects like this give us a ‘professional kick’, our engineers were ambitious at the drawing board and our crew showed what excelling in practice really means. Jumbo uses its DP2 J-class heavy lift vessels, Jumbo Javelin and Fairplayer, for the transport and installation of transition pieces. The vessels are able to carry up to nine transition pieces at a time, stowed vertically in the hold. The vessels are free floating, use their DP2 system combined with a Taut Wire and DGPS reference systems for positioning, have a transit speed of upto 17 knots and are able to sail with open hatches. This means a large transport capacity, fast transit times to and from the offshore field, efficient installation and easy relocation from one position to the next. Our new K-class vessels are pre-fitted for DP2 too and will provide even more cargo and crane capacity than the current J-class.

newsflash MEET PEOPLE, SHARE KNOWLEDGE AT OFFSHORE ENERGY 2012 Tailored sessions Offshore Energy also offers tailored sessions, which are an opportunity for exhibitors and non-exhibitors alike to present a fully customized presentation to an audience of offshore professionals. The following companies already confirmed their participation in the tailored sessions:

23 October 2012

Offshore Energy provides a forum for discussion of topical industry developments. Conveniently running parallel to the Offshore Energy exhibition, the conference program offers both ticketed sessions and free to attend side events and tailored sessions organized by supply chain companies. This year’s program will cover such topics as perspectives on new North Sea oil and gas discoveries, challenging hydrocarbons and future offshore vessel concepts. Sessions on renewable energy offer insights into the challenges of an offshore grid and developments in wave & tidal energy.

Conference program Please visit www.offshore-energy.biz for the full speaker faculty.

10.30 - 11.30 Bentley Introduction to the features of the SACS and Maxsurf suite of applications for the offshore industry

DAY ONE: 23 OCTOBER 2012

12.00 - 14.00 AYOP Amsterdam IJmuiden, the North Sea wind energy hub

13.30 - 14.30 Navingo B2B Online Communication Online B2B communication, what’s in it for me?

24 October 2012 10.00 - 11.00 Swiçalment Save up to 18,7% fuel and reduce your carbon footprint significantly with SSL Petrol Energizer 11.30 - 12.30 Newton Europe Delivering our Engineering Programmes: How to be 20% earlier for 20% less cost with 100% more confidence 11.00 - 12.00 Lloyd’s Register Ensuring rotordynamics of critical rotating equipment during upgrade projects 14.00 - 16.00 Bayards Ensuring rotordynamics of critical rotating equipment during upgrade projects

09.30 - 10:00 Official opening Offshore Energy 2012 Introduction by Joep Athmer, Director, Van Oord Offshore

Key note speaker: tbd. The official opening is open to all exhibitors, sponsors, partners and conference delegates.

10:00 - 11:45 Meeting the challenges of developing and maintaining an offshore grid

Does offshore grid development keep up with wind farm developments? What are lessons learned in calamity response?

Chair: Jan de Decker, Project Manager, 3E (invited)

11:00 - 12:00 Developments in the Mexican petroleum industry NEW! What are the latest developments in upstream oil and gas in Mexico and what is Pemex’s strategy for the future? Key note speaker: Carlos Morales-Gil, Director-General Exploration & Production, Pemex

13:15 - 15:00 Perspectives on new North Sea oil and gas discoveries

The role of the maturing North Sea is fare from over. What is the potential of new discoveries and what are the latest solutions to extend the operational life of oil and gas fi elds?

Chair: Ante Frens, Asset Manager Offshore, NAM

13:30 - 17:30 Drilling and Wells Cluster Meeting: Managing the human element in well operations side event

Chair: George Galloway, Drilling and Wells cluster chair

Key note speaker: tbd.

15:30 - 17:00 Changing market demands and the offshore vessel of the future As market demands change, so do offshore vessels. This session looks at recently delivered offshore vessels, current newbuild projects and concepts for the future.

Chair: Martijn Nieuwenhuijs, Technical Director North Europe, Bureau Veritas

RESERVE YOUR SEAT NOW AT WWW.OFFSHORE-ENERGY.BIZ

offshore energy OE12 CONFERENCE BENEFITS •A ccess expert knowledge and make new contacts • Meet our industry speakers and discuss their topics with fellow offshore professionals • Combine your conference attendance with a visit to the Offshore Energy Exhibition and meet face-to-face with any of the 400 international exhibitors

Bart van de Leemput, Managing Director, NAM B.V. OE11 conference speaker

DAY TWO: 24 OCTOBER 2012 09:30 - 11:00 Developments in wave & tidal energy What is the state of play in wave & tidal energy? Which technologies have proven to be viable solutions and which test projects are ready for commercialization?

WHO SHOULD ATTEND? The 2012 Offshore Energy Conference is suited to those working in the industries of oil & gas, offshore wind and utilities, as well as offshore contractors, suppliers and service providers. This conference is also beneficial to industry entities, port authorities, certifi cation and classification entities, government and research institutes.

Chair: tbd

11:30 - 13:00 Field development in increasingly complex areas Will today’s frontiers become tomorrow’s heartlands? What is the outlook for frontier E&P and what steps are currently taken? This session is kindly sponsored by VMW Taxand.

Chair: Andrew Gavan, Managing Director, Taxand UK

14:00 - 15:30 Future offshore wind turbine foundation needs The next generation of offshore wind farms will lie further offshore. Which new technologies are needed to access greater water depths and withstand larger wind and wave forces?

Chair: tbd

SPONSORSHIP OPPORTUNITIES A number of profile-enhancing promotional opportunities are still available. Offshore Energy provides solutions which will suit your company’s needs and budget. Call Femke Hoogeveen today on the number +31 (0)10 209 2634 to discuss the items listed in our sponsorship prospectus or a tailor-made branding solution to complement your company’s strategy.

14:00 - 16:00 Decommissioning Seminar side event

Organized in cooperation with IRO and Decom North Sea.

Chair: Sander Vergroesen, Managing Director, IRO

Free access to the CONFERENCE LOUNGE Delegates are welcome in the Jade Lounge, a part of the conference area reserved especially for conference delegates. In the Jade Lounge delegates can sit down, check their e-mail (free WiFi available) and exchange ideas with other delegates. Complimentary drinks and refreshments are available throughout the day.

DISCUSS YOUR SPONSOR BENEFITS TODAY - CALL +31(0)10 209 2634

newsflash Obvious. Indispensible. Natural Gas. The importance of Dutch Gas Ever since the discovery of the giant Slochteren gas field in Groningen in 1959, natural gas has played an indispensible role in our Dutch energy supply. For over 50 years natural gas has brought significant wealth to our nation (the “gasbaten”), has created thousands of well paid jobs, and has helped secure our energy supply. Gas production companies, like any other company in the Netherlands, pay corporate income tax. In addition they pay a supplementary state profit share tax, resulting in an effective tax rate of some 50%. Also the Dutch state, via EBN, participates for 40% in all gas field developments. This implies that for every € in profits, 70% or 70 cents goes to the Dutch government (40% via EBN and 50% tax on the remaining 60%). In 2012 the “gasbaten” are forecasted to be in excess of € 12 billion. Our industry employs well over 6,000 people, and indirectly another 10,000 via suppliers and contractors. The importance of gas to Dutch society is often overlooked, taken for granted, but cannot be stressed often enough. It is expected that sustainable energy sources such as biogas, solar energy and wind power will foresee us in the vast majority of our energy needs, but the transition to a fully sustainable energy supply will take a long time. In the meantime natural gas will continue to play a key role. It is flexible and, unlike electricity, can be easily stored and readily produced when needed. It is also the cleanest fossil fuel; a logical, safe and indispensible complement to solar and wind energy. Natural gas is a key ingredient in a sustainable energy mix, for now and for the foreseeable future. The Dutch E&P sector is attractive to GDF SUEZ since over the years the organization has built an extensive knowledge base of the Dutch subsurface, has significant drilling and construction experience, and owns and operates an impressive pipeline and facilities infrastructure that facilitates quick and efficient development of new fields. At the basis of GDF SUEZ’s success in the Netherlands is an intensive exploration and development program. The company has three drilling rigs operating simultaneously, drilling exploration, appraisal and development wells. In addition, it is executing a capital program in excess of

Produced volume (BCM)

Historic production & forecast (Bron: EBN 2012)

Year

€ 500 million which includes three new field developments (Amstel, Orca and Sierra) which will come into production in 2013 and 2014. It is important to continue to explore for and produce gas from new fields in the Netherlands, especially as Groningen and other production declines. The declining Dutch production is illustrated in the graph below. Whether the Dutch E&P industry will be able to commercially exploit new Dutch gas reserves depends on the gas price, how much will have to be invested in production installations and infrastructure, the willingness of companies to invest and the investment climate in the Netherlands. The gas fields that we are finding in the Netherlands are getting smaller, more expensive to drill and more challenging to develop. Production from small fields in the Netherlands in 2011 was 10% less compared to 2010 due to natural declining production. Nonetheless, there are still significant quantities of gas to be found and produced. We will have to reduce costs even further, come up with new, innovative technology and convince our government to adapt its fiscal system to stimulate further exploration and development investments. The life span of our offshore platforms and pipelines is finite. When the existing fields are empty and the infrastructure has to be removed, we will not be able to develop the smaller fields of the future. This means that there is time pressure on our industry. The current fiscal system does not contain

Ruud Zoon, Managing Director, GDF SUEZ E&P Nederland and Chairman of NOGEPA

sufficient measures to stimulate a comparable active program over the years to come. E&P companies have investment opportunities elsewhere in the world, and we need to ensure that the Netherlands continues to be a country where investments can compete internationally so we can replace gas reserves and continue to reap the very significant benefits from our valuable natural gas resources. GDF SUEZ and NOGEPA are involved in an active dialogue with the Dutch government to consider measures to further stimulate exploration activities. This to ensure that activity levels and jobs are protected, to replace declining reserves and to attract future investments. In our industry, success is determined by high levels of seismic acquisition, with the studying of seismic maps and geological data, and with exploration drilling. For a number of years now, the rate of success for exploration drilling in the Netherlands has been steady around 50%. However, the volume of new gas found has been diminishing. In 2000 this was approximately 2 billion m3 per successful exploration well. In 2009, this reduced to approximately 0.7 billion m3. This makes exploration in the Netherlands less attractive, so that companies will be less likely to invest their limited exploration capital in the Netherlands. If we can adapt our investment and fiscal climate in the Netherlands I am confident companies such as GDF SUEZ will continue to invest in the Dutch E&P sector for many more years to come. So that also in the future we can say: “Obvious. Indispensible. Natural Gas.”.

offshore energy gold sponsor offshore energy 2012:

Projects

MRO Cost Savings through Reduced Downtime

through Knowledge and Flexibility

Daily Trade Fast and Reliable Deliveries through Stock Availability

Industries Offshore, Power Generation, Petrochemical, Pipeline Construction, Engineers & Contractors, Vessel Building, Process Control Services Stock Distribution, Pipe Processing, Machining, Testing Warehousing, Materials Management

pipe valves bar specials Meet us at

Jan van der Heijdenstraat 13 3261 LE Oud-Beijerland, The Netherlands Tel. +31 (0)186 64 15 55, Fax +31 (0)186 61 21 57

Standno: 219

DylanGroup rebuilDS Head-Office as an energy-saving workplace Durability is a hot item, and for a reason. DylanGroup, a trading company in the energy sector, and chemical and petrochemical industry, has changed her existing head-office in Oud-Beijerland – The Netherlands into a new and durable building. DylanGroup wants to stress to the outside world, that, with this renovation, they take their responsibility as a durable business. DylanGroup managed to considerably cut down on raw materials and energy, by deliberately choosing for re-development and conversion. The conversion entailed a thorough renovation and expansion into the existing warehouse. A part of this has been converted into office-space. By choosing to renovate, one also saved a considerable building plot from being pulled from nature. Energy-efficient The renovation and extension were tackled thoroughly. The aim: to save energy. The existing insulation of the front and the roof were improved upon. The existing installation was also replaced by an energy-efficient system. The ventilation system uses the warmth of the expelled air, to heat up the intake of “fresh” outside air in winter. During summer, the expelled cool air from inside can be used to cool down the intake of air from outside. The focus is not just on energy efficiency, there is also attention for the efficient use of raw materials such as energy-efficient LED lighting systems, water saving technologies and maximum use of day light. The conversion was realized using only FSC certified timber. DylanGroup aims to provide a complete package of steel piping products and services. From strategic subsidiaries all over the world, Dylan distribute pipe, fittings, flanges, solid bar and valves to all kinds of industries worldwide. DylanGroup received ISO9001 certification in 1993 and has been preferred distributor for quality mills for many years.

SOCIAL PROGRAM OFFSHORE ENERGY 2012 Kick-Off Party

Networking Event

All early arrivals and exhibitors who are building up their booths are welcome for a kick-off drink in the Jade Lounge (on your way out using entrance F)

The Official Networking Event offers an excellent opportunity to meet new potential clients or further cement your existing business relations. The set up of the venue will enable you to do so in an informal but stylish setting.

CLOSING drinkS Day 1

•O pening speech by Ruud Zoon, Managing Director, GDF SUEZ E&P Nederland B.V. • Keynote speech by Edward Heerema, founder and president, Allseas.

Monday 22 October, 18.00 hours

Tuesday 23 October, 17.30 hours

All those present are invited for closing drinks on the exhibition floor.

CLOSING drinkS Day 2 Wednesday 24 October, 15.30 hours

All those present are invited for closing drinks on the exhibition floor.

Tuesday 23 October, 19.00 hours

Attending the Networking Event All exhibitors and their relations are invited to attend the Networking Event. Attending the Networking Event costs € 99,- per person. The event takes place in the Park Foyer of the Amsterdam RAI, immediately next to the Exhibition Hall.