North Sea Oil & Gas: Norwegian Continental Shelf Records High Deep Sea Project in 2018 by OIL AND GAS REPUBLIC

...creating global opportunities Aug/September Issue 2018

USA $12, Europe €10, UK £8, Nigeria N1500, South Africa R60

MEET US AT THE EVENT 27 - 30 August

Tanzania set to host Africa Upstream Summit 2019 Norway’s largest oil pipeline now in place in the North Sea Total’s Egina FPSO sails to OML 130, Offshore Port Harcourt Nigeria is business ready and our oil and gas free zones are conduits of economic prosperity – OGFZA CEO

Afe Mayowa, President, OGTAN and CEO, Danvic Petroleum International Corporation - PG 35

INTRODUCTION Oil and Gas Republic's quarterly magazine explores the global oil and gas industry, featuring latest trends and innovation in the industry. This publication is focused on the North Sea oil and gas where there have been various deep sea projects ongoing. In this publication, we also featured some of the industry's key milestones especially in the Nigerian Oil & Gas Industry as the sail away of Total's Egina FPSO to the Egina Oil Field, Offshore Port Harcourt is a huge success for the Nigerian Content. The Egina project was a successful collaboration between LADOL, Total, and several Government agencies and proved that the largest industrial projects in the world can be completed in Nigeria. This is a first not only for Nigeria but also for Africa and it represents a remarkable achievement in local content development in Nigeria.

Published by Nobilitas E.C. Limited No.1, Abegbe Ariyo Street, Off Addo Road, Ajah, Lagos - Nigeria

Publisher & Editor-In-Chief: Engr. Idowu Babalola (MBA, MNSE, MEI)

We look forward to continuing reporting about the oil & gas industry on our next edition. Please send your feedback or general inquiries as we will be happy to respond as soon as possible.

Editor: Tobi Owoyimika

Tobi Owoyimika Editor

Senior Correspondent, Technical and Creative Writer: Ndubuisi Micheal Obineme

Correspondents: Genevieve Aningo Jackson Olagbaju

Contributing Authors: Ayobami Adedinni Binutiri Samson

Oil and Gas Republic (OGR) Reg. Number: 2347423

EDITORIAL CONTENTS SPONSORED CONTENT

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INDUSTRY NEWS

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NIGERIAN CONTENT

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LNG WORLD NEWS

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FINANCE

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Oil and Gas Republic is an international publication covering the entire value chain of the Renewable Energy, Power & Electricity, Aviation, Mining, and Oil & Gas Industry. For more information, please visit www.oilandgasrepublic.com

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RESEARCH & DEVELOPMENT

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G20 ARGENTINA 2018

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PHOTO GALLERY

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RENEWABLE ENERGY

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EXCLUSIVE INTERVIEW

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TOP STORY

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INDUSTRY NEWS

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DIGITAL TECHNOLOGY

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...creating global opportunities Aug/September Issue 2018

USA $12, Europe €10, UK £8, Nigeria N1500, South Africa R60

MEET US AT THE EVENT 27 - 30 August

Afe Mayowa, President, OGTAN and CEO, Danvic Petroleum International Corporation

WAIPEC 2019 - The leading event for Sub Saharan Africa

Innovention – Sustaining West African oil and gas production through innovation and collaboration The 3rd West African International Petroleum Exhibition and Conference (WAIPEC 2019) will return to Lagos from 23-24th January 2019 - now the largest petroleum event of its kind in West Africa. WAIPEC was established in 2017 by the Petroleum Technology Association of Nigeria (PETAN) to promote the West African oil and gas industry, seek best practice, explore new technologies and develop commercial opportunities for business and international investment. Given its sell out success since, it has developed hugely today, and is now widely regarded as the major think-tank, collaboration platform and sprouting base for innovative ideas across the entire Sub Saharan African energy industry.

‘WAIPEC’s mission is to promote the region’s oil and gas industry, seek best practice, explore new technologies and develop commercial opportunities for business and international investment.’ Bank Anthony Okoroafor, Chair PETAN

WAIPEC attracts the most senior level representation and participation from all of the major countries in the West African region including Angola, Equatorial Guinea, Nigeria, Côte d’Ivoire and Ghana, in addition to many Sub Saharan and international organisations.

Strategic Conference and International Exhibition Throughout the two-day event, emphasis at WAIPEC will be placed on networking and interaction among influential industry leaders - with the conference bringing hundreds of global and regional influential petrochemicals industry professionals together. Its content and proceedings are driven by an esteemed steering committee and speakers, representing a cross section of key stakeholders and the most senior representatives from the West African oil and gas industry, delivering high-level strategic sessions and discussions on game-changing solutions, combined with an international exhibition.

WAIPEC in numbers

In 2018, WAIPEC featured over 50 industry leaders and global experts on an insightful programme, which was supported by a sold-out exhibition of over 300 companies and over 6,000 visitors with business interests throughout Nigeria and West Africa. Organisations included: Total, Exxon Mobil, NNPC, Nigeria LNG, Shell, SEPLAT, Sonagas, GNPC, First E&P, Addax Petroleum, Chevron, Niger Delta E&P plus many more.

Secure your involvement for WAIPEC 2019- special rates for Oil & Gas Republic readers Whether you are interested in sponsoring, exhibiting, or participating as a delegate - contact the WAIPEC 2019 organising committee today to discuss your involvement in the event. There are special rates available for Oil & Gas Republic readers quoting this advert. Paul Gilbert, Event Director, WAIPEC +44 7850 025 295 pagilbert@gep-events.com

Adejumoke Oyedun, PETAN 080 372 55190 adejumoke.oyedun@petan.org

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Tanzania set to host Sub-Sahara Africa Upstream Oil & Gas Summit in April 2019

he Annual Sub-Sahara Africa Upstream Oil & Gas Summit & Exhibition, is scheduled to take place in Tanzania from 9th - 11th April 2019 with the theme: “GROWING THE AFRICA BARRELS.’’ Dapo Ayoola, Managing Director & CEO of Zenith Professional Training (ZPT) Limited, said that the platform was conceived as means for exchange of ideas on the mutually beneficial opportunities by oil, gas and power sectors. According to Ayoola, the theme was carefully selected to deliver the maximum returns to all participants hence the addition, for the first time, an investment forum dubbed ‘Invest Energy Africa’ and a session dedicated to women in petroleum.

He further stated that they also want to inspire young ladies in the Universities and Polytechnics to see the oil and gas industry as one that is encompassing for everybody. “So we have women in petroleum day where successful female practitioners based from HR or technical backgrounds, geoscientists, finance or petroleum engineers would come together and talk to the upcoming ones that there is an opportunity for everyone in the oil and gas. “The Women in Petroleum Section is a lovely one and we have invited top women across the continent,” he added. Over the years, the Sub-Sahara Africa Upstream Oil & Gas Summit has become the premier event for advancing Africa’s oil and gas development, innovations and discoveries. Africa is the last true oil and gas frontier with more than 4,200 oil and gas blocks identified. Almost half of these blocks are open, subject to force majeure or in the application phase. More than 80% of the 1,300 blocks in North Africa are licensed, while in sub-Saharan Africa it is estimated that only about 30% of 2,900 blocks are licensed. In the sub-Saharan regions it is evident that many new opportunities still exist, especially for the exploration and production (E&P) companies that are willing to take risks. In April 2018, industry players across the oil and gas value chain in Africa gathered in Abuja to discuss & strengthen the region’s oil and gas operations and to gearing up the growth & development in the oil and gas industry. The 2018 edition featured speakers from the Ministry of State for Petroleum of Nigeria, Nigerian National Petroleum Commission, (NNPC), Shell Nigeria Exploration & Production Company (SNEPCo); Kaduna Refining & Petrochemical Company (KRPC), ExxonMobil Nigeria, EnerWise Africa; Seamfix, East Africa Petroleum Institute, Petroleum Commission, Ghana; Tanzanian Petroleum Corporation, Central Bank Governors and Crude Oil Marketers.

Dapo Ayoola, Chief Executive Officer, Sub - Sahara Africa Upstream Oil & Gas Summit and Exhibition

The Honourable Minister who was represented by his Special Technical Adviser (STA), Mr. Gbite Adeniji, extolled the Summit for providing veritable platform for intellectual discourse, knowledge sharing and showcasing giant strides made by the industry. In his words, "The Sub-Saharan African (SSA) countries need to continue to cooperate with each other to achieve the desired success stories in the industrialisation and developments in the resources, especially in the Oil and Gas sector." The Minister rated high the current reform of the African Petroleum Producers Organisation, championed by Nigeria as a major key collaborative effort that must be pursued to achieve the Continent’s lofty aspirations as a geopolitical bloc. “Oil, Gas and Power yield a variety of benefit to our countries, ranging from revenues for governments, nations’ development, to employment opportunity for our citizens; “The different segments, upstream to downstream, undoubtedly bring benefit to our nations. As such realization of the entire value chain of these petroleum resources within our countries, presents a virile opportunity to alleviate socio-economic challenges and foster sustainable growth in our countries”. He said there was no better time than now to take all necessary actions that would facilitate the realisation of these potentials for desired success stories. The Nigerian Oil and Gas Industry Roadmap ‘7 big wins, Dr Kachikwu said, reflects the country’s efforts towards realization the value chain of oil, gas and power. “The 7 key initiatives entail an interplay of innovative technology, economics and public policy,” he added.

Speaking further, he said the present administration has deployed framework for the value chain of gas to be extended. “The Nigerian Gas Flare Commercialization Programme (NGFCP) targets to eliminate flares by ensuring that these currently unexploited gases are converted into benefits using proven technological innovations, while also perpetuating socio-economic benefits for the Country”, the Minister explained. On the state of the local refineries, he said, “Our refinery initiative drive is yielding result, as numerous investors/licensees are presently at advanced stages of modular refinery establishment with planned commissioning of at least two modular refineries before the end of the year”. Security-wise, he noted that the state of security in the local communities in the Niger-Delta has improved due to constant engagement with the oil producing regions. “The most glaring result is the rise in GDP (to 1.40%), partly attributed to the stable and sustained level of petroleum production. With a proactive agenda for 2019 edition, industry players from across Africa will meet again in Dar es Salaam for the 5th edition of the Sub-Sahara Africa Upstream Oil & Gas Summit. The summit also aims to unlocking the potentials in the Sub-Sahara region. The event is a dynamic and innovative platform that will feature major projects and new opportunities that still exist in the Sub-Sahara region. The exhibition will provide a veritable opportunity for established oil and gas companies, government agencies, services providers, equipment manufacturers and new entries to interact and showcase their possibilities. The summit is organized by Zenith Professional Training (ZPT), a firm with several years’ of building oil and gas capacity through industry specialized training in the oil and gas sector.

INDUSTRY NEWS

Issue 3 2018 www.oilandgasrepublic.com

DLO Energy to invest in Gas-To-Power projects in Africa By Ndubuisi Micheal Obineme She said DLO Energy is one of the only black female owned power company, operating one of the largest Wind Farms of about 244MW in the African continent. The company is also looking at developing projects outside South Africa with different technologies. “We are also looking at Gas-to-power in South Africa. We have also been shortlisted for a Rural Electrification Program in Bostwana and we are looking at opportunities here in Nigeria as well. “Each countries has its own challenges but South Africa started up very well but they only had a two and half year break when they were deliberating between Nuclear and Renewables. “Nigeria i feel is the story of the giant that hasn’t reach its potential as far as the power sector is concerned and i think it has a lot to do with the political will more than it has to do with an investment drive. We need a clear political leadership in Nigeria in order to make power work,” she added. DLO Energy Resources has been successful under the South Africa’s Renewable Energy Independent Power Producer Programme and has been awarded 3 projects of up to 249 MW of which 244 have reach commercial operation.

inda Mabhena Olagunju, CEO & Managing Director, DLO Energy Resources Group has said that their company will invest in Gas-To-Power Projects in the African region.

Lastly the group owns and operates a boutique energy & infrastructure events company through DLO Energy Resources Events (Pty) Ltd which in turn owns the Africa Power Roundtable.

Linda, disclosed this during a media chat with our correspondent in Lagos at the sideline of the DLO Africa Power Roundtable event scheduled to hold in London in October 2018.

CWC Events Africa and NCDMB signs MoU, Group to Organize PNC for 5 Years

WC Events Africa and The Nigerian Content Development and Monitoring Board (NCDMB) has signed a MoU at the Nigeria Oil & Gas Conference and Exhibition (NOG) 2018 held in Abuja for the hosting and organising of the Annual Practical Nigerian Conference (PNC) for the next 5 years. The Eexcutive Secretary of NCDMB Simbi Wabote signed the MOU on behalf of the board while Wemimo Oyelana signs for CWC Group.

The Executive Secretary explained that the MoU is for five years and revenues generated from hosting the annual event would be shared between the Board and CWC. He also stated that CWC was working to be incorporated in Nigeria. “I look forward to welcoming oil and gas industry players to what promises to be a useful and impactful gathering. Now in its’ 7th year, the Practical Nigerian Content Forum, organised in partnership with the CWC Group, remains the annual industry gathering on Nigerian Content implementation,” Engr Simbi Wabote, Executive Secretary, Nigerian Content Development & Monitoring Board The 2018 edition will be held at the Board’s new headquarters building, which is being completed in Yenagoa, Bayelsa State.

INDUSTRY EVENTS

Issue 3 2018 www.oilandgasrepublic.com

Africa welcomes first ever full-stream oil, gas & energy transformation dais

peaking on Africa’s hydrocarbon development, Niall Kramer, CEO, South African Oil and Gas Alliance (SAOGA) said, “Growing a gas economy in South Africa and regionally is imperative. We need to do this to partner and to enable renewables but fundamentally to provide the catalyst for the sorely needed growth, business activity and jobs that give us the opportunities for inclusive growth. The wherewithal that oil and gas can bring is potentially large, but to know that we must explore for indigenous gas and import LNG. Policy attractiveness is certainty needed, as are regional partnerships. The biggest opportunity I see is the massive proven gas resources in Mozambique alongside South Africa as the largest industrial economy in Africa. My vision is the region becomes like the North Sea. But with good weather.” The global energy industry has been experiencing a radical transformation in recent years. Replacing large-scale nuclear and fossil fuel power stations, the energy supply of the future will be secured by millions of decentralized renewable energy plants in combination with intelligent storage, distribution and consumption solutions for existing oil & gas resources. Africa’s newly launched meeting point, the Future Energy Africa Oil & Gas Exhibition & Conference 2018, propositions a power packed 3-day exhibition and conference, dedicated to advancing future oil, gas and energy solutions for the continent. With far reaching industry collaboration, under the esteemed patronage of the Department of Energy of the Republic of South Africa, the event will provide in-depth analysis and an

honest reflection of Africa’s set to revolutionize the future. In addition, the event provides an intensive tour across Africa, revealing insights on the issues confronting Africa’s future commercial, business and socio-economic trajectories. The event is supported by numerous international industry associations including South African Oil & Gas Alliance (SAOGA), South African Chamber of Commerce & Industry (SACCI), European Association of Geoscientists and Engineers (EAGE), Association for the Development of Energy in Africa (ADEA), Power Africa (a USAID initiative), Oil & Gas Safety Council (OGSC), Petroleum club of Romania, Nigerian Gas Association and CEDIGAZ.

As Sub-Saharan Africa charges towards a low carbon energy future, events such as the Future Energy Africa Oil & Gas Exhibition & Conference 2018 provide valuable forums for the international oil, gas and future energy industry to debate the issues directly with Africa’s leaders. Projected to attract over 1,500 trade visitors, 50+ exhibiting companies, 120+ conference and technical speakers and 300+ delegates, the three-day event promises to be a valuable platform for interactive networking and knowledge exchange.

OPEC’s World Oil Outlook to be launched in Algiers

he 2018 OPEC World Oil Outlook (WOO) will be presented at a press conference to be held at the El Aurassi Hotel in Algiers, Algeria, on Sunday, 23 September 2018 at 3:15 pm (Algiers time). According to a statement made available to Oil and Gas Republic, the launch will coincide with the 10th Meeting of the Joint Ministerial Monitoring Committee (JMMC) in Algiers, and form part of the celebrations of the 2nd Anniversary of the seminal Algiers meeting (the 170th Extraordinary Meeting of the OPEC Conference) that took place on 28 September, 2016. This meeting was a major landmark on the road to the historic ‘Declaration of Cooperation’ between OPEC and non-OPEC producers that was put together in Vienna on 10 December, 2016.

Algeria’s Minister of Energy, HE Mustapha Guitouni and OPEC’s Secretary General, HE Mohammad Sanusi Barkindo, will provide opening remarks to the WOO launch.

First published in 2007, the WOO is one of OPEC’s flagship annual publications, providing expert analysis of the many challenges and opportunities facing the global oil industry.

The Secretary General and senior members of OPEC management will then present the key messages from the publication, which provides an in-depth review and analysis of the global oil industry, and offers a thorough assessment of various sensitivity cases related to supply and demand trends in the medium- and long-term.

It serves as an important reference tool, providing insights into the upstream and downstream, as well as issues related to costs, investments, and the potential impact of policies and new technologies.

For the first time, a Smart APP for the WOO will be made available, which will give increased access to the publication’s vital analysis and energy data. And for the fourth year in a row, a comprehensive interactive version of the WOO will also be made available. More details on these will be provided when the publication is launched.

NIGERIAN CONTENT

Issue 3 2018 I www.oilandgasrepublic.com

KINGS supports Nigerian Content with Cutting Edge Technologies By Ndubuisi Micheal Obineme

ings Industrial Tools Limited, a Nigerian company specializing in offering marine and vessel support services, is bringing cutting edge technology to support the Nigerian offshore oil and gas industry.

“My background is in Marine. We use to handle a lot of vessels on behalf of NNPC, Glenco, Trafigura, Addax Petroleum as we have been working on about 300 tankers yearly such as product tankers, crudeoil tankers and much more.

Kings Industrial Tools, which is based in Victoria Island Lagos, met with Oil & Gas Republic at the 2018 Nigeria Oil & Gas Conference and Exhibition held in Abuja.

“Our Electronic Fuel Monitoring Systems (EFMS) is using cutting edge metres that has an accuracy threshold of plus or minus of about 0.1 pecent and we have been able to use it to locate vessels at any given time including the fuel consumption of the vessel, work quality, the qulaity of the bunkers the vessel has received and when it has received it. They are all backedup on our micrososft cloud.

Abdulrahman Ahmed, Chief Executive Officer at Kings Industrial Tools Limited said that the company currently have partnership with Krill Systems. Krill Systems is an Electronic Fuel Monitory System (EFMS) provider to the International Oil Companies (IOCs) in Nigeria. “We currently have Chevron approval to install our Krill Systems on their chartered vessels for their upstream operations. Our accountability, integrity in the fuel supply chain process is what we are all about.

“We are also able to do Geo-fencing. If your vessel is operating in the offshore environment and the vessel is going outside a pre-determiend longitude & latitude bearer, you will get an email to inform you that your vessel is outside of your Geo-fence which isn’t where it is suppose to be and you will be able to run all the analysis of the vessel directly from the

office where there is satellite connection,” Abdulrahman added. Kings Industrial Tools Limited was registered in Nigeria in 2002 to provide cutting edge technology solutions to the Nigeria Oil and Gas Industry. Kings provides engineering and technology solutions, with after sales maintenance and the company is the sole Representatives to Krill systems for Africa and the Middle East. Krill Systems Inc. is a Leader in EFMS (Electronic Fuel Monitoring Systems), Bunker, Emissions and LNG Re-gasification Efficiency Monitoring. Going forward Kings is also providing general, engineering contracting including fuel monitoring services to its prospective clients.

NIGERIAN CONTENT

Issue 3 2018 www.oilandgasrepublic.com

Nigeria’s Vice President Professor Yemi Osinbajo Visit LADOL

is Excellency Acting President Professor Yemi Osinbajo SAN visited LADOL on Friday 10th August 2018. The visit turned into a high-profile celebration of the power of local content to create jobs, build the economy and stimulate global prosperity.

His Excellency and the dignitaries present commended LADOL’s commitment to sustainable industrialization in Nigeria and urged more indigenous private companies to make similar investments. The tour also highlighted LADOL’s plans to diversify and use its facilities to sustainably support a wide range of industries, including agriculture and textiles. LADOL’s success shows that Ease of Doing Business and the local private sector have had a real impact on Nigeria’s economy. Lagos Deep Offshore Logistics (LADOL), is a leading indigenous offshore logistics service provider and has invested $350 million for the integration of the Floating Production Storage Offshore (FPSO) vessel for the Egina deep-water oil field being developed by Total Upstream Nigeria Limited. The project, which was handled by LADOL in a joint venture with Samsung Heavy Industries (SHI) ensured in-country integration of FPSO for the first time in Nigeria and indeed Africa. LADOLS's Logistic base has the capacity to handle more project of that magnitude and others such as; ship and rigs repairs, as Ladol provides a one-stop-shop for multinational industrial and oil and gas companies operating in West Africa. However, Ladol was licensed by Nigeria Export Processing Zones Authority (NEPZA) and all its operations were based on legal clear regulatory platform.

PENGASSAN, NUPENG Pledges Collaboration with NCDMB

he joint national executive of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and their counterpart Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has pledged their readiness to collaborate with the Nigerian Content Development and Monitoring Board (NCDMB) in monitoring and development of local content in the Nigerian Oil and Gas Industry. The groups made this commitment when they paid a courtesy visit to the Nigerian Content Development and Monitoring Board in Yenagoa. The national chairman, PENGASSAN, Comrade Francis Johnson appreciated the Board’s effort towards the growth and development of the oil sector by encouraging indigenous participation. He said, “this engagement with the Board is quite revealing, we have learnt a lot about the laudable interventions of NCDMB. There is no better time to work with the Board, we are committed to work with you.” Johnson encouraged the Board to continue the good job it’s doing and prevent portfolio companies from grabbing contracts which will help to build and deepen Nigerian content in the sector. On the Board’s headquarters building project, the chairman PENGASSAN described the project as remarkable. He said, “on behalf of PENGASSAN/NUPENG, I want to commend NCDMB for this project and I hope for it to be

completed soonest as we will be here to be a part of the official commissioning”. In his presentation on the structure and operation of the Board, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote urged the union executives to dispel the notion among their members that the Board awards contract in the oil sector. He reiterated that the NOGICD Act 2010 mandates the Board to review and approve the Nigerian Content Plan and issue compliance certificates to companies adhering to the Law. “Contrary to the widespread believe that NCDMB award contracts, let me categorically say the Board is mandated to review, assess and approve Nigerian Content plans developed by operators. We issue certificate of authorization for projects that comply with Nigerian Content provisions” Wabote said Wabote further highlighted the structure and operations of the Board and how both unions can enhance Local Content. He explained that Nigerian Content is not about Nigerianization, rather domestication and domiciliation of value adding activities in-country. He stated that the Board’s effort since the enactment of the Act has yielded tangible benefits, notably establishment and upgrade of fabrication yards, pipe coating plants, upstream production managed by indigenous companies, production of low/high voltage cables and partial integration of Egina FPSO among others.

The NCDMB boss mentioned that the major challenges of the Board include infrastructures for the movement of materials, inter-agency collaboration, policy consistency and attraction of risk averse investors to set-up manufacturing outfit locally. Wabote while calling for the Union’s support for the Board also disclosed his agency’s readiness to collaborate with the union continuously for the benefit of all. In his own remark, the Chairman, NUPENG, Comrade Williams Akporeha stated their collaboration with the Board will be total. He noted that they were happy with the great achievements of the Board. He however suggested that NCDMB should introduce periodic consultative forum with both unions to explore areas of collaboration for effective Nigerian content practice in the industry. Akporeha said the Board has major role to play to ensure smooth operations in the oil and gas industry and advised that NCDMB examine international practices on remunerations to employees In his closing remark, General Secretary, NUPENG, Comrade Adamu Song commended Wabote for his leadership style and achievements through rigorous implementation of the Nigerian Content Law . He thanked the Board for hosting the two unions and for the insightful presentation on the Board’s activities in the industry.

Expand your knowledge and discover the latest advances in Gas-to-Power by attending this year’s Generation Knowledge Hubtaking place atFuture Energy Nigeria ADVANCING GAS-TO-POWER IN NIGERIA Gas in Nigeria’s generation mix - How can gas complement renewables? How are the Transmission Company of Nigeria aligning with the generation expansion plans? MYTO 2.2 and gas pricing realities How is the LNG industry supporting gas generation industries?

13 – 14 NOVEMBER 2018 Eko Hotel & Suites, Lagos, Nigeria With the official support of

T: +27 21 700 3500 I E: future-energy@spintelligent.com

NIGERIAN CONTENT

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Total’s Egina FPSO sails to OML 130, Offshore Port Harcourt By Ndubuisi Micheal Obineme

developed by TOTAL in Nigeria. These projects have brought progressive increase in levels of Nigerian Content and this is well illustrated by the percentage of total project workload performed in Nigeria: from 44 per cent for Usan, Total recorded 60 per cent for Akpo and now 77 per cent is achieved for Egina just before the FPSO sails away from the SHI-MCI Yard in LADOL Island. Mr. Musa said that the FPSO is one of the deepest offshore developments in Nigeria, designed to produce 200, 000 bpd which is about 10 percent of Nigeria’s oil and gas production. In addition, he added that the Egina field will produce gas. Associated gas will be partly reinjected into the reservoir to maintain reservoir pressure, and partly channeled to supply the domestic gas market. Mr. Musa further explained that the six of the 18 topside modules were fabricated and integrated at the SHI-MCI facility at LADOL when the FPSO arrived from Korea in the last week of January.

otal’s floating production storage offloading (FPSO) vessel for the Egina deepwater oilfield departed for the oilfield in the early hours of Sunday August 26th, 2018. The Egina oil field is located in OML 130, 150km offshore Port Harcourt, Rivers state with a production capacity of 200,000 barrels of oil per day.

The oil field is controlled by Total Upstream Nigeria (24 per cent) in partnership with CNOOC (45 per cent), Sapetro (15 per cent) and Petrobras (16 per cent). Present during the sail away were Nicholas Terraz, managing director, Total Upstream Companies in Nigeria, Ahmadu-Kida Musa, deputy managing director, deep water, Total

Exploration and Production Nigeria, Amy Jadesimi, managing director, Lagos Deep Offshore Logistics Base (LADOL), and executives from Samsung Heavy Industries (SHI-MCI). The FPSO which is 330-metres long was berthed at the SHI-MCI Yard, Ladol Island in Lagos where the integration of locally fabricated modules was done – a first for Nigeria and in fact Africa- took place few months ago. Total E&P Deputy Managing Director, Ahmadu-Kida Musa made a presentation about Egina FPSO at the Nigeria Oil & Gas Conference & Exhibition (NOG) held on 2 – 5 July 2018 in Abuja. According to him, TOTAL took the FID of EGINA in 2013, 3 years after the NOGIC Act. It became the test case of the law. The FPSO is the third of its kind

“Nigeria is proud that TOTAL has advanced Egina contract. For the first time for an FPSO, all management teams were based in-country. “It has generated significant opportunities from administrative work to top flight engineers. It employed about 250 Nigerian engineers. We recorded 560,000 man-hour during the contract cycle. It is Africa’s first FPSO integration on land. “For local content to succeed, we need to have an investor friendly legislation. If we have that, Wabote’s words that a full integration of an FPSO must happen in Nigeria will come through. “Government and industry have critical roles to play. We need to put in place a sustainable PSC and gas plan regime. This is important to maintaining industry capacity. We need to take a bold step in moving to the next level. Nigerian content is possible,” Mr. Musa concluded. Today, reference is being made to Total as the industry benchmark for the Nigerian content, given its significant support and investment in local content development through major oil and gas projects such as Egina projects. Egina has the highest deep water local content ever in Nigeria. This is an evident for Total's support and engagement for local content development in Nigeria, investing in human capacity development and contribution to building and expanding local fabrication yards.

NIGERIAN CONTENT

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Eroton adopts cutting edge technology, creative thinking to reduce oil production cost

By Ayobami Adedinni

roton Exploration & Production Company Limited is on an aggressive campaign to ensure a reduction in its oil production cost.

Speaking with newsmen on the sideline of the 2018 Nigerian Oil and Gas conference, Theo Okeke, executive director and chief technical officer, Eroton E&P, said the company adopted a new way of thinking to its operation in order to achieve success.

According to him, the success story of moving from less than 10,000 bpd oil production to almost 65,000bpd can be hinged on the company’s creativity. He said, “We have a lot in the pipeline. As you know, we started production about three years ago and we have been optimizing our operations to get the best out of the old assets. For instance, we were producing less than 10,000 bpd but now we have been able to move up to 65,000 bpd peak production and we keep growing. “We achieved this by optimizing and using the new ways of thinking. We added this production not by drilling a single well but by optimizing the existing infrastructure.

“I personally believe strongly in new way of doing things, thinking out of the box and being creative. For instance, within our asset because it’s a brown field- old asset we produce oil and water and everything is pumped to the terminal. “We told ourselves why are we doing this because what they charge as tariff on the pipeline is the liquid and the total volume we put in the pipeline- both the crude and the water. So, why are we paying to export water from our field to the terminal? “Why don’t we take out the water within our field and inject it for pressure maintenance? And we’ll impact on that. Hopefully before the year runs out, we will be injecting it into some reservoirs that we have identified which will save us cost. It will save us about $3.20 we are paying now as tariff for any barrel of liquid. So, imagine that. “We do a lot of Do –It –Yourself. We do the entire major overhaul in-house. When we started there was a lot of corrective maintenance but now we have very minimal breakdown of facility and equipment,” he added. According to him, this was done in order to deepen its Nigerian content drive as it engages its host communities in its operations.

In his words, “We recognized that the communities have something to offer. I mean we should give them the opportunities to also benefit from what is happening. “We told them it will be a win-win situation and because of that, we have not had any shutdown due to community issues because we have a special way of dialoguing with them. “We develop their capacities to get to do things for us. So, we told them it is not a matter of we giving you bread every time, we also want to help you so that you can do it yourself. “So, they bid for contracts just like any other person, they win and get the job done. So, we are happy about that which has helped us a lot,” he stated.

LNG WORLD NEWS

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BHS-Sonthofen launches five filter systems to ensure efficient natural gas processing in Iran

HS-Sonthofen has produced five filter systems for use in natural gas production in southwest Iran, together with its Iranian sales partner Faris International. Full turnkey systems that combine several process steps for processing amine, which is crucial to gas scrubbing, in one closed process were accepted at the end of April. The new plants allow for the environmentally friendly and efficient circulation of raw materials.

120,000 barrels of liquid natural gas (LNG) per day – This is the planned capacity of a new gas refinery in Iran that is currently being constructed under the project name ‘Bid Boland II’. In the future, natural gas will be extracted from the earth and separated from contaminants in the first process step. BHSSonthofen supplied expertise in the clarifying filtration of process liquids as a specialist in filtration technology. Optimizing the ‘amine sweetening’ process with BHS Natural gas is extracted from the ground as a mixture of gases, and some of its components are not suitable for further processing. These include sour gases such as hydrogen sulfide and carbon dioxide. These contaminants can be washed out using the ‘amine sweetening’ process, an internationally licensed process developed by the French license provider PROSERNAT. An amine solution and the gas mixture are combined in a scrubber. The undesired components in the natural gas are absorbed into the solution due to their affinity to amines.

The sour gases are then removed, together with tiny piping abrasion particles and other impurities, so that the solution can be reused for further washing cycles. After this cleaning process, the receptive pure amine solution is fed back into the scrubber. The first thermal processing step of the solution takes place in the ‘reboiler,’ where it is separated from the sour gases. BHS-Sonthofen has developed a complete system that comprises several components for the subsequent process steps to remove hydrocarbons and dissolved contaminants. The end result is an efficient circulation process that ensures optimal resource usage. Three filters combined in one ready-to-go system The overall turnkey concept devised by BHSSonthofen consists of three process steps in total: A candle filter separates the smallest particles from the amine solution that has been introduced. This is necessary to prevent the system from clogging up. Due to the small particle size, the filter needs to be precoated. To this end, a pumpable cellulose suspension is mixed in the precoating tank of the system, which produces a 5-10 mm thick precoat filter cake in the candle filter. Even the finest particles are suspended in this. After the precleaned amine solution has passed through the candle filter, the hydrocarbons are removed in the activated carbon filter. The activated carbon residues are removed in a polishing filter in the final step. Following this process, the amine solution is once more ready to fulfil its true purpose in the scrubber. This ‘pit stop’ in the BHS filter system therefore ensures both increased efficiency and process reliability by separating the amine solution from hydrocarbons

and foreign particles that cause wear. Furthermore, only minimal amounts of amine are lost in doing so. BHS-Sonthofen supplies the three filters and the precoating unit as a complete preinstalled one-point lifting unit. The filters are ready for immediate use after connecting them to operating resources and feeding in product streams. International collaboration with our sales partner on site “System assembly is usually carried out in Germany entirely,” says Tim Ochel, Project Manager at BHSSonthofen. “But there was one restriction for this project: You can only import components that can’t be manufactured in Iran. That’s why we looked for and found a strong local partner.” BHS-Sonthofen fully engineered and designed the five systems. The containers, steel constructions and piping were constructed by local suppliers with the support of Faris International. Special components that were not available within the country, such as pumps, valves and measuring instruments, were shipped from Germany. Final assembly was carried out near Tehran under the expert supervision of BHS engineers. Ochel is satisfied with the successful completion of the project. “The oil and gas industry has been benefiting from our turnkey filtration solutions for years. With the acceptance of these five systems at the end of April, we were able to successfully conclude the first project with our new sales partner in Iran and thus contribute to efficient and environmentally friendly gas extraction in the region.”

ADIPEC 2018 FAST FACTS

pec.com/bookastand

LNG WORLD NEWS

Issue 3 2018 I www.oilandgasrepublic.com

NLNG awards FEED contracts for Train 7 expansion

igeria LNG Limited (NLNG) has awarded the contracts for Front End Engineering Design (FEED) of its planned plant expansion project, Train 7, to B7 JV Consortium and SCD JV Consortium, inching closer to realising its expansion goals of increasing liquefied natural gas production output from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

This was revealed at a ceremony in London to commemorate the award of FEED to the consortia and signing of the contract documents. A completed FEED process will pave way for Engineering, Procurement and Construction (EPC) pricing and bidding processes which are preconditions for Final Investment Decision (FID). The consortia, B7 JV Consortium comprising American company KBR Inc., Technip of France and Japan Gas Corporation (JGC); and SCD JV Consortium, made up of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, will participate in the Dual FEED Process and produce a Basic Design Engineering Package (BDEP) that will determine their EPC pricing, and eventually their bids to construct the train. Speaking on the Dual FEED strategy at the ceremony, Managing Director and Chief Executive Officer of NLNG, Tony Attah, said “The Front End Engineering Design is the most crucial part in the build-up to the actualisation of Train 7, after some delay and lost opportunities to reinforce Nigeria’s position prominently on the global energy map. Today’s event goes to show that Train 7 is alive.

“Typically, FEED takes about 9-12 months but we have explored another strategy for this project by adopting the Dual FEED Process which awards this crucial part of the Train 7 project to two prospective engineering consortia, instead of one contractor. What this does for us is give us a degree of freedom to start FEED and sometime after, EPC Bidding, with both activities overlapping. We remain committed to taking FID as soon as these processes are complete. “The history of the LNG industry in Nigeria is chequered. After about 30 years of trying to get an LNG project going, in 1989 NLNG was incorporated and one FID after the other, 6 trains were built in quick succession, making us the fastest growing LNG company in the world at the time. But we lost steam just after 2007, while the rest of the world went past us with the development of their gas resources and the gain of greater market share. We started our LNG industry 24 months after Qatar, but Qatargas has attained a production capacity of 77 MTPA with additional target of 30% LNG production in the immediate future. I believe it is time to reset the narrative. It is time for gas revolution in Nigeria. “So, 30 years after the incorporation of NLNG, and 20 years after we exported our first LNG cargo, we are looking to the future and that future for us is Train 7. Activities are lining up for this project. With the continued support of the Federal Government of Nigeria and the Shareholders towards this future, the odds are clearly in our favour,” he said. The Chairman, NLNG Board of Directors, Dr O. R. LongJohn, in his remarks, said the FEED contracts

signing ceremony was a visible start to the actualisation of the Board’s vision for Train 7, adding that NLNG was committed to its vision to help build a better Nigeria through unleashing Nigeria’s gas potentials. He stated that the process of unleashing needed a monumental event such as Train 7 to trigger further development in the gas sector. The Deputy Managing Director, Sadeeq Mai-Bornu, also in his remarks, commended the Federal Government and Shareholders for the support towards achieving the Train 7 dream. He reiterated NLNG’s commitment to its expansion goals and being in the top quartile of LNG suppliers in the world. In November 1995, the first FID to build an LNG plant in Finima, Bonny Island was taken. This was followed by the award of EPC contract to a consortium of engineering firms comprised Technip, Snamprogetti, M.W. Kellogg and JGC for a plant of two trains, Trains 1 and 2. Thereafter, the FID to develop Train 3 and the plant’s Natural Gas Liquids (NGLs) Handling Unit was taken in February 1999. After Trains 1 and 2 became operational, FID for the NLNGPlus Project, comprising Trains 4 and 5, was taken in March 2002 and soon after, the construction of Train 6, dubbed NLNGSix Project, commenced with FID in 2004. NLNG is owned by four Shareholders, namely, the Federal Government of Nigeria, represented by NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N. V. S.àr. l (10.4%).

LNG WORLD NEWS

Issue 3 2018 I www.oilandgasrepublic.com

Total Sells Equity in India’s Hazira LNG Terminal to Shell otal has signed a binding Letter of Intent (LOI) with Shell for the sale of its 26% minority equity stake in Hazira LNG regasification terminal in India. The transaction remains subject to the approval of regulatory authorities.

In parallel, Total has signed an agreement to sell 0.5 million tons of liquefied natural gas (LNG) per year to Shell over 5 years, on a delivery basis to supply the markets of India and neighboring countries. The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2019. “This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio,” said Philippe Sauquet, President Gas, Renewables and Power. “We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”

Excelerate Energy Commissions Bangladesh’s First LNG Import Terminal

to the Bangladesh power and gas sector, and IFC’s support to the project has been multifaceted as an early shareholder, and the lead debt arranger. Moheshkhali LNG is a transformational project that will create a new market for energy supplies into the country, help diversify fuel sources and secure the much-needed additional natural gas to address power shortages in the country,” stated IFC Regional Head of Infrastructure, Asia, Mr. Hyun-Chan Cho.

Excelerate first began developing the MLNG terminal with the Government of Bangladesh in 2012 which, at the time, was seeking reliable gas import infrastructure solutions that could withstand the demanding operational conditions of the Bay of Bengal. As the global leader in floating LNG and having the proven track record of implementing complex projects in similar environments, Excelerate was identified as the most qualified partner for Petrobangla to realize its objective of bringing LNG into the country to address the growing energy deficit.

xcelerate Energy Bangladesh Limited completed the commissioning of its Moheshkhali Floating LNG (MLNG) terminal – Bangladesh’s first liquefied natural gas (LNG) import facility – signifying the official commencement of operations for the project. This milestone was achieved approximately 25 months after the execution of project agreements, which took place in July 2016, with the state-owned Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) and 13 months following the receipt of all permits required to achieve financial close in August 2017 with its lenders, led by the International Finance Corporation (IFC). Located offshore Moheshkhali Island in the Bay of Bengal, the terminal has begun delivering natural gas to the Chittagong region of Bangladesh, marking the first time the country has received natural gas from the global market.

The new terminal enables Petrobangla to procure LNG from international natural gas markets and is expected to increase natural supply to the country by twenty percent. “This innovative project would not be possible without the tremendous support and collaboration of Petrobangla and the Government of Bangladesh,” stated Excelerate’s Managing Director, Mr. Steven Kobos. “I am proud of our team for successfully completing this critical piece of infrastructure under some of the most challenging offshore conditions. I believe that MLNG will support the future growth of Bangladesh’s economy, and we are committed to providing safe and reliable operations for many years to come.” “This is a thrilling achievement for Bangladesh, and IFC congratulates the Government of Bangladesh, Petrobangla, and Excelerate Energy who have been tremendous partners to work with. IFC is committed

“Excelerate has always been at the forefront of developing creative offshore LNG solutions in a safe, sustainable manner for our customers,” stated Mr. Kobos. “This same culture of technical, operational, and commercial innovation was employed throughout the development of MLNG in Bangladesh, where the demanding sea states and monsoon weather patterns in the Bay of Bengal can present unique challenges. This project has demonstrated the resilience of our technical and operational teams in responding to diverse circumstances. We are a stronger company for having executed this critical infrastructure project for Bangladesh.” Through the implementation of a variety of technical studies and the design of the MLNG terminal, Excelerate was able to achieve commercial operations for MLNG within 13 months of financial close – three months ahead of the 16 months allowed under its agreements with Petrobangla – and was able to complete its construction activities in the middle of the Southwestern Monsoon.

LNG WORLD News

Issue 3 2018 www.oilandgasrepublic.com

NOVATEK and JOGMEC Sign MOU on LNG Cooperation

n Vladivostok, a meeting was held between the President of Russian Federation Vladimir Putin and the Prime Minister of Japan Shinzo Abe, Chairman of the Management Board of PAO NOVATEK (“NOVATEK”) Leonid Mikhelson and Chairman and CEO of Japan Oil, Gas and Metals National Corporation (JOGMEC) Tetsuhiro Hosono, signed a Memorandum of Understanding (MOU). According to the MOU, the parties agreed to explore opportunities to cooperate on NOVATEK’s projects in the Yamal and Gydan peninsulas, including the Arctic LNG 2 project, on developing a regular transport link via the Northern Sea Route for LNG deliveries to the Japanese and Asia-Pacific markets, as well as exploring LNG marketing opportunities in the Asia-Pacific region. “We welcome the expression of interest from international partners to our LNG projects in the Yamal and Gydan peninsulas.” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board, “Our prolific hydrocarbon resource base combined with our experience in implementing large-scale LNG projects and navigating the Northern Sea Route creates a solid platform for mutually beneficial cooperation. Japan is one of the most significant global LNG markets, and we expect further expansion of cooperation in this area which will facilitate the development of trade and economic relations between our countries.”

Yamal LNG Realized LNG Commissioning in Record Time ahead of original schedule – an unprecedented achievement for the LNG industry. The total operating capacity of the two working LNG trains already approximates about 3.5% of the global LNG market and becomes a significant project in the context of the global LNG landscape. Our strategic goal is to produce between 55 and 60 mmtpa by 2030”. Moving forward, Total has also announced that the first shipment of Liquefied Natural Gas (LNG) from the second train of the Yamal LNG project in Northern Russia is ready to leave Sabetta. This train adds an additional 5.5 million tons per year of LNG capacity to the facility, bringing the total capacity in operation to 11 million tons per year. At full capacity, the three-train facility will supply 16.5 million tons of LNG per year to Asian and European markets. The third train is expected to start up in early 2019.

AO NOVATEK has announced that Yamal LNG has launched the second LNG train and dispatched the first cargo from this unit. The second LNG train commissioned six months ahead of its original schedule, and combined with the first LNG train launch in December 2017, has achieved the commissioning of the first two LNG trains in record time. The first gas input into the second LNG train occurred on the 21st July and is now operating

at its rated nameplate capacity of 5.5 million tons per annum (mmpta). The total capacity of the two working LNG trains is 11 mmpta. ”We have not only commissioned the first train at Yamal LNG on time and on budget, but we have significantly expedited the formal commissioning of the second train.” noted NOVATEK’s Chairman of Management Board Leonid Mikhelson. “Presently, the third LNG train start-up is also expected to be launched significantly

“Following the successful start-up of Yamal LNG in December last year, the first shipment from the second train ahead of schedule is another major milestone for this world-class LNG project,” commented Patrick Pouyanné, Chairman and CEO of Total. “The Yamal LNG production adds competitive LNG resources to our growing portfolio. We will keep developing new LNG projects in the Russian Arctic with our strategic partner Novatek, as illustrated by the recent announcement of our entry in Arctic LNG 2 with 10% direct working interest.” Last May, Novatek and Total also agreed that Total will have the opportunity to acquire a 10 to 15% direct interest in Novatek’s future LNG projects in Yamal and Gydan.

FINANCE

Issue 3 2018 I www.oilandgasrepublic.com

German bank invests EUR 9.7 billion in developing, emerging countries ... almost 40 percent of all new commitments go to Africa and the Middle East

n 2017, KfW Development Bank further increased its commitments for financing and promotion in the field of development cooperation on behalf of the German Federal Government to EUR 9.7 billion (2016: EUR 8.8 billion). Of this total, KfW Development Bank commited EUR 8.2 billion, and DEG EUR 1.6 billion. The activities of KfW Development Bank and DEG span 531 projects in developing countries and emerging economies. SubSaharan Africa, North Africa and the Middle East accounted for EUR 3.7 billion (2016: EUR 3.0 billion) of total funding. “KfW has once again set a new record in its support for developing countries and emerging economies. This growth is due to a significant extent to funding in Africa and the Middle East and reflects the increasingly important role that our commitment is having in these regions in contributing to peace and addressing the root causes of migration,” said Dr Joachim Nagel, member of KfW Group’s Executive Board.

obligations in the fields of poverty alleviation, climate change mitigation, environmental protection and – increasingly – supporting crisis regions.

KfW Development Bank again increased its commitments further, setting a new record high. Last year, around EUR 8.2 billion in financing was provided to developing countries and emerging economies (2016: EUR 7.3 billion). Around 55% of financing was earmarked for climate change mitigation and environmental protection projects. Almost 40% of all new commitments go to development projects in Africa and the Middle East; 65% of the Federal Government’s budget funds are channelled to this region.

DEG, a subsidiary of KfW, also had a successful financial year in 2017. It pledged about EUR 1.6 billion to finance investments by private companies in developing countries and emerging economies, and thus maintained the previous year’s record high (2016: EUR 1.6 billion). At EUR 830 million, financing for small and medium-sized enterprises in developing countries was once again a focus in 2017. Financing for German companies increased significantly by 70% to EUR 436 million (2016: EUR 253 million).

Internationally, KfW Development Bank currently oversees 117 ongoing projects directly related to refugees in 28 different countries with an overall volume of more than EUR 3 billion. A total of EUR 1.2 billion of new commitments were allocated for projects in this area in 2017. The regional focus of involvement in this field is also the Middle East. These funds will reach around 11 million refugees and people living in the host communities.

The 2017 financial year was also encouraging in terms of developmental impact. DEG’s existing customers employ around 1.5 million people and generate annual local income of EUR 67 billion in developing countries, of which EUR 14 billion are comprised of wages and salaries. In regional terms, DEG’s commitments in Asia developed particularly well at EUR 601 million, recording an increase of around 18 per cent over the previous year. Asia was followed by Latin America with EUR 502 million. By sector, the financial sector and infrastructure projects topped the list.

KfW also makes a significant contribution to sustainable urban development around the world with EUR 4.7 billion and 58% of new commitments, for example with financing for the metro in Lima, the water supply in Timbuktu and flood protection in Tegucigalpa, the capital of Honduras. Alongside budget funds, which stem primarily from the Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank committed own funds amounting to EUR 4.9 billion (60%). In this way, it helps the German Federal Government to meet its international objectives and

“In 2018, we want to intensify our efforts to promote innovative business ideas, for example in the area of fin-techs. We see digitalisation as an important trend and driver, also in our partner countries. We also aim to promote ideas by female entrepreneurs in developing countries and contribute to greater participation of women in business,” said Christiane Laibach, Chairwoman of the DEG Management Board.

KfW IPEX-Bank finances Överturingen wind farm in Sweden

fW IPEX-Bank is financing the construction and operation of the Överturingen onshore wind farm in Västernorrlands Län, a county in central Sweden. KfW IPEX-Bank is partnering with Crédit Agricole CIB to provide the project with around EUR 160 million in longterm debt capital, with each bank providing EUR 80 million. The financing is covered by the Danish export credit insurer EKF. The overall investment cost adds up to EUR 270 million. By financing the wind farm, KfW IPEX-Bank is helping Siemens Gamesa to launch its latest generation of onshore turbines to the market. The turbines reach a maximum height of 220 metres and are equipped with a new de-icing system

Construction of the wind farm is imminent and commissioning is planned for December 2019. The wind farm project’s installed capacity will amount to 235 megawatts (MW), which will be generated with altogether 56 Siemens Gamesa SWT-4.2-130 wind turbines. The wind farm is owned and sponsored by Green Investment Group Limited (GIG), a member of the Macquarie Group. Siemens Gamesa has signed a 25-year full-service agreement for the wind farm’s operations. The generated power will be delivered under a base load PPA (Power Purchase Agreement) with Hydro Energi AS, a wholly owned subsidiary of Norsk Hydro ASA, the Norwegian aluminium company. Another distinctive feature of the PPA is its unusually long term of 29 years, making it one of the worlds longest of its kind. The Överturingen wind farm on the Gulf of Bothnia is a follow-up project to the Markbygden ETT wind farm, for the financing of which KfW IPEX-Bank acted as Mandated Lead Arranger last year. The project received multiple awards from leading trade media, including Wind Deal of the Year (Project Finance International - PFI).

AVIATION

Issue 3 2018 www.oilandgasrepublic.com

Shell Aviation Introduces Industry-First Electric Pump Jet Refueller The introduction of the refueller saw Shell Aviation working with Esterer, a leading manufacturer of aircraft refuellers. Developed by Esterer with input from Shell Aviation, the electric refuelling system allows the vehicle’s diesel engine to be switched off during refuelling, reducing CO2 emissions at the point of use by lowering diesel consumption. Noise and particulate emissions on the aircraft stand are also reduced, due to the diesel engine running for less time compared to a conventional refueller. “With more than 40 years of experience and a longterm partnership with Shell Aviation, we at Esterer are very proud of this development which introduces the worldwide first electrical refuelling system,” said Julia Esterer, Managing Director and Owner of Esterer. “Reducing emissions from ground operations is a priority for the aviation industry, and this technology will help deliver significant benefits in terms of reducing fumes and noise emissions.”

hell Aviation has introduced a first-ofits-kind electric pump jet refuelling vehicle in its operations at Stuttgart Airport, Germany. The vehicle significantly reduces diesel consumption during aircraft refuelling, supporting airports in their efforts to reduce emissions across their operations. This refueller is a part of Shell Aviation’s commitment to develop innovative technologies that deliver benefits across airport operations globally. “The electric pump jet refueller system is an example of the spirit of innovation we bring to our customers, working with airports and airlines to provide solutions to the operational challenges they face,” said Anne Anderson, Vice-President Shell Aviation. “We are excited about the potential for electric pump jet refuellers to help reduce the carbon footprint of

airports. We are hopeful that this pilot programme at Stuttgart Airport will prove successful and these vehicles will have an important role to play in airports of the future.” The 20,000-litre refueller features a fully electric fuelling system and pressure control, enabling a significant reduction in diesel consumption when compared to conventional refuellers which use the diesel engine to power refuelling. The new refueller uses its diesel engine solely for moving around the apron, switching it off while refuelling takes place. Following extensive trials, the refueller is currently being piloted with the support of Stuttgart Airport. It is anticipated that the refueller will deliver a reduction in diesel consumption of 2,200 litres during the course of the pilot, compared to a conventional refuelling vehicle.1

Walter Schoefer, Management Spokesman of Stuttgart Airport, added: “Reducing the carbon footprint of our airport operations by electrifying ramp equipment is a priority for our business. Innovative technologies such as this have potential to deliver significant emissions savings across our refuelling processes. We are pleased to be partnering with Shell Aviation on this pilot and look forward to seeing the results.” Following the pilot of the electric pump refueller at Stuttgart Airport, Shell Aviation will assess opportunities to deploy the technology across its extensive refuelling network.

Nigeria unveils name, logo of new national flag carrier

he Nigerian government has unveiled a new national carrier, nearly 15 years after the previous state-run airline, Nigerian Airways ceased operations.

Nigerian Minister of State for Aviation, Hadi Sirika unveiled the name and logo of the new national flag carrier at the Farnborough International Airshow in the UK. The national airline is named Nigeria Air.

The airshow is the meeting place where aircraft manufacturers, engine manufacturers, aircraft leasing companies, aviation consultants and marketers gather every two years to do business. “The new national carrier will bring Nigeria closer to the world,” the presidency said. The name was chosen after Nigeria's Ministry of Aviation invited Nigerian youth and students to contribute "their ideas and creativity in developing the new Nigerian Flag carrier," according to the website nameyourairlinenigeria.com

INDUSTRY AWARDS

Issue 3 2018 www.oilandgasrepublic.com

Aiteo adjudged Company of the Year at Nigeria Oil and Gas Conference Awards 2018

(L-R) Mr. Ewariezi Useh, Managing Director, Downstream, Aiteo Group; Mr. Emmanuel Ukegbu, Chief Operating Officer, Aiteo Eastern Exploration and Production Company; Engr Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board and Dr. Ransome Owan, Group Managing Director, Aiteo Power, at the 2018 Nigeria Oil & Gas Conference where Aiteo Group emerged Indigenous Oil & Gas Company of the year, in Abuja

he Aiteo group was declared Indigenous Oil and Gas Company of the Year at the Nigerian Oil and Gas(NOG) Awards, on July 4, 2018 at the International Conference Centre(ICC), Abuja. The gala rounds off the Nigeria Oil and Gas Conference and Exhibitions, holding from July 2 to July 5, 2018.

Organised by London-based CWC Group and now in its 18th edition, the NOG is Nigeria’s most prestigious annual oil and gas industry event which draws key players across the Nigerian Energy sector. It is a viable platform for networking, sharing ideas, and exploring new opportunities and innovations in the industry. This year, hundreds of industry professionals were gathered from both the public and private sectors. Dignitaries at the conference included the Secretary-General of OPEC; Dr Sanusi Barkindo, Nigeria’s Honourable Minister of State for Petroleum Resources; Dr Ibe Kachikwu, Group Managing Director of the Nigerian National Petroleum Corporation, Dr Maikantu Baru, and Chief Executives of major oil and gas companies operating in Nigeria.

Responding to the award, Aiteo’s CEO and Executive Vice Chairman, Benedict Peters, attributes the company’s emergence as the indigenous oil and gas company of the year to the depth of its human resources, and sustainable investments in the industry, and the Nigerian economy. “We remain committed to our vision of shaping the future of sustainable energy in Nigeria and beyond, strategically deploying resources and technologies that lead to sustained economic development and value for all stakeholders. This honour from the NOG is fulfilling, particularly coming from our peers and a reputable industry platform. We dedicate this award to the highly committed, talented and industrious people working at Aiteo and making things possible on a daily basis.” Peters added. In the CSR arena, Aiteo gives back to the local communities in which it operates through grants and donations, seed capital and philanthropy. It has also supported several social investment projects, including special focus on supporting the study of Engineering in host communities and sports.

In sports, Aiteo has become the foremost financier of football in the country after a string of contributions to the Nigerian Football Federation (NFF) and the Super Eagles. To support local football, Aiteo took over the sponsorship of the Federation Cup, Nigeria’s oldest football tournament, now renamed Aiteo Cup. On the continental stage, Aiteo partnered with the Confederation of African Football(CAF) to sponsor the African Football Awards in January this year.

INDUSTRY AWARDS

Issue 3 2018 www.oilandgasrepublic.com

NCDMB Receives Award For Outstanding Contributions To Nigeria Oil & Gas Industry he Nigerian Content Development and Monitoring Board (NCDMB) has been conferred with the first 1st Dr Alirio Parra Award for Outstanding Contributions to the Nigerian Oil and Gas Industry.

The award was presented to the Executive Secretary, NCDMB, Engr. Simbi Wabote at the gala dinner held on Wednesday in Abuja to mark the end of the 2018 Nigerian Oil and Gas Conference and International Exhibition. Total Exploration and Production Company was also recognized for its sterling contributions to the growth of Local Content through the execution of the Egina deepwater project. NCDMB was established by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) of 2010. NCDMB's mission statement is to be the catalyst for the industrialization of the Nigerian Oil and Gas Industry and its linkage sectors, to promote the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act.

LADOL recognised by NCDMB, PETAN, others At 330 metres long, it is the largest FPSO ever installed in Nigeria and the largest FPSO built by the Total Group worldwide. It is currently berthed at the newly-built 500-metre FPSO integration quayside at the SHI-MCI Yard, Ladol Island, Lagos, where the integration of 6 locally-fabricated modules took place. This is a first not only for Nigeria but also for Africa and it represents a remarkable achievement in local content development in Nigeria. The Egina FPSO has a storage capacity of 2.2 million barrels of crude oil and a daily production of 200,000 barrels per day capacity. It is 35 meter high, 330 meters long, with a flare boom that is 100 meters high just as it has capacity to accommodate 200 people at a time.

LADOL has been recognised by the Nigerian Content Development and Monitoring Board (NCDMB), Petroleum Technology Association of Nigeria (PETAN), and other key stakeholders in Nigeria’s oil and gas industry for championing and implementing Local Content Law. At a breakfast event, titled ‘The Role of Nigeria’s Local Content Policy and its Impact on Sustainable Economic Value Creation’, LADOL ED Jide Jadesimi collected the accolades.

PETAN Chairman, Engr. Bank Anthony Okoroafor, described the integration of the Egina FPSO as a success story for Local Content Law. The FPSO started its journey from South Korea to Nigeria on 31st October 2017 and arrived at LADOL on the 24th January 2018. The arrival of the Egina FPSO represents a real landmark for the Nigerian oil and gas industry.

Key Nigerian Content features of the Egina project include: Employment: 24 million man-hours worked in Nigeria (77% of total project workload), equivalent to a workforce of 3,000 persons on average over a period of 5 years; Fabrication: 60,000 tons of equipment to be fabricated in Nigeria; Training: over 560,000 man-hours of human capacity development training across Egina contracts; Infrastructure: construction of several large-scale new fabrication facilities in Nigeria and upgrade of several existing fabrication yards.

FREE TRADE ZONE

Issue 3 2018 www.oilandgasrepublic.com

Nigeria is business ready and our oil and gas free zones are conduits of economic prosperity – OGFZA CEO By Ndubuisi Micheal Obineme

he Managing Director & CEO of Oil and Gas Free Zones Authority (OGFZA), Mr. Umana Okon Umana, has said that the OGFZA is a channel for conveying the nation’s growth opportunities.

Mr. Umana made the statement during an exclusive interview with our correspondent, at the sideline of the 2018 Africa Trade & Investment Global Summit (ATIGS) in Washington DC. Mr. Umana said: “Nigeria is business ready and our oil and gas free zones are conduits of economic prosperity. Nigeria is the largest producer of oil and gas in Africa and the 6th largest in the world. The real growth of its oil sector as at Q1. 2018 was 14.77% year on year. In addition, we are the largest economy in Africa, the only country in Africa with dedicated oil and gas free trade zones and we are open for business. “The country is on a growth trajectory with a GDP growth of 1.95% y-o-y (as at Q1, 2018); and a projected growth rate of 4.8% for the year 2018. The Federal, State and Local Governments are committed to maintaining this growth trend. The Nigeria Economic Recovery and Growth Plan [ERGP] is the encapsulation of this commitment; and since its implementation, Nigeria has moved 24 points up in the ease of doing business ranking according to the World Bank Ease of Doing Business Index for 2018. “With a population of more than 185 million, Nigeria is the most populous country in Africa (one in every six Africans is a Nigerian) – Nigeria is a large consumer market and it is the seventh most populous country in the world and 75% of the population is under the age of 30 (with 70% being 15+) – we have a vibrant labor force. Nigeria’s long coastline reduces the cost of logistics, is fuel efficient and environmentally friendly,” he said. Dapo Ayoola, Chief Executive Officer, Sub - Sahara Africa Upstream Oil & SpeakingGas further, disclosed that the core SummitMr. andUmana Exhibition

mandate of OGFZA is to attract foreign direct investment (FDI) for Nigeria; as a result, the business model offers a level playing field for all investors. One of the incentives in operating as a licensed free zone enterprise is 100% expatriate quota which offers opportunities for technology transfer so that local population is trained in competitive and viable fields of specializations. Through technology transfer, Nigerian youths get equipped with the technical know-how to start off their enterprises within the customs territory. Mr. Umana Okon Umana, The Managing Director & CEO of OGFZA

The Oil and Gas Free Zones Authority is the Apex Regulatory Authority established by Act No. 8 (section 51) of 29th March 1996 .OGFZA regulates and manages Nigeria’s Oil & Gas Export Free Zones. It is the only regulatory authority under the law of Nigeria to issue licenses and manage various enterprises that operate within the oil and gas free zones. OGFZA also coordinates the activities of government agencies such as customs, police, immigration and similar offices in the free zones. It provides a One-Stop-Shop where all the critical agencies of government operate to enable efficient government service delivery to enterprises.

“Our zones offer them the opportunities to acquire these skills through mentorship in paid employment, obviating the need to travel overseas for training. “As a regulator of Oil and Gas Free Trade Zones, we are particularly interested in attracting modular refineries, gas plants, petrochemical plants and companies along these value chains. “The Zabazaba FPSO project is strategically positioned in proximity to our free zone in the Brass Oil and Gas City, Southern Nigeria. The existence and success of this oil and gas offshore project will directly impact on our zones. Its success will make our free zone a more attractive site for businesses along the FPSO value chain to situate.

FREE TRADE ZONE

Issue 3 2018 www.oilandgasrepublic.com

“We are of course excited to receive interests from developers who want to develop and operate any of our Greenfield zones on a long term concession period through a BOT PublicPrivate-Partnership model.” Since Mr. Umana was appointed as CEO of OGFZA, they have been making progress to attracting foreign direct investment in Nigeria’s Oil & Gas Value Chain. OGFZA has also engaged with Oracle to deploy Oracle Cloud to help streamline its operations and promote efficiency. Activities such as license renewal took 14 days, but presently it takes three days to renew investors’ licenses in oil and gas free zones. With the Oracle technology, it have successfully automated the processes and engendered transparency in its operations. Prior to this development, The Authority recently uploaded a SERVICE CHARTER that details the products and services, requirements, timelines and fees for various services issued. The Authority is fully committed to license investors for business within seven (7) days of submission of complete application, renew Investors Licenses within three (3) days of submission of complete applications and ensure that cargo delivery to investors is within 48hrs from date of submission of complete. OGTZA has also implemented a strategic three year roadmap which includes; Creating an Enabling Environment where businesses can thrive and to attract FDIs, Financial Independence, where OGFZA will rely on internally generated revenue (IGR) rather than the Federal Government funding for its recurrent expenditure, Improve operational efficiency by automating its service deliveries and deploying ERP to ensure improved access and better services. “We have successfully expanded investment opportunities open to tenant investors by licensing another free zone operator in our Onne/Notore Free Zone. We have created an enabling environment for competition amongst service providers in the zone so as to afford greater choice and reduced costs to our zone enterprises. “We have been taking practical steps towards amending the OGFZA Act to rid it of ambiguity in its functions and jurisdictional challenges as well as to empower the agency to regulate more effectively. The proposed amendments to the Act also look at our revenue structure, which will better empower us to partner with private investors who can help us realize our developmental goals. “Most of our free zones are strategically located on the Gulf of Guinea, on the Atlantic Ocean Coast and in proximity to major offshore oil and gas fields in Nigeria. “Our Oil & Gas free zones are located near major onshore, offshore, ultra-deep sea projects, with easy navigational access to the entire Sub-Saharan West African Region. "They serve as logistics base for some of the international oil companies carrying out exploration and production (E&P) activities in the deep offshore or ultra-deep offshore.

“In addition, our zones house companies investing along the oil and gas value chain. Currently, we have the Notore Free Zone where we have investors extensively involved in fertilizer and petrochemical business." Mr. Umana added Recently, The Presidential Enabling Business Secretariat conducted an assessment of the nationwide implementation of EASE OF DOING BUSINESS Executive Order (EO1), to which OGFZA was highly commended and ranked No 1. Across all Ministries, Departments and Agencies of government. Executive Order (EO1) was signed on 18 May, 2017, by Vice President of Nigeria, Professor Yemi Osibanjo (SAN). The very first executive order of this administration, its objective is to promote transparency and efficiency in the business environment. EO1 has been acknowledged as one of the Federal Government of Nigeria (FGN)’s most innovative strategic initiatives to deliver quick, pragmatic changes for Nigerians. EO1 has the following indicators: Entry & Exit of people, Starting a Business, Trading Across Boarders, Registering Property, Paying Taxes, Dealing with Constructing Permit, Getting Credit and Getting Electricity. According to the report, 44 MDAs were benchmarked against EOI indicators and OGFZA ranked number one in the list. OGFZA business model offers various investment opportunities for investors looking to invest in Nigeria’s Oil & Gas Free Zones. One of the incentives in operating as a licensed free zone enterprise is 100% expatriate quota which offers opportunities for technology transfer so that local population is trained in competitive and viable fields of specializations. As part of the effort to attract foreign direct investment (FDI) for Nigeria, OGFZA uses its Special Purpose Vehicle (SPV) – Free Zone Global Investments Ltd, to facilitate public private partnership investments in the Nigeria’s oil & gas

free zones, maximizing their potential as vehicles for promoting accelerated growth and sustainable development. Moving forward, OGFZA has also partnered with Pricewaterhouse Coopers (PwC) for investment advisory services. OGFZA have been taking practical steps towards creating an enabling environment and attracting investments into Nigeria’s Oil & Gas Free Zones. The Authority is involved in reputable international activities all in a bid to competitively position the organization in the global market place of Special Economic Zones (SEZs) and benchmark OGFZA against other world class free zones across other regions of the world. In Conclusion, Mr. Umana stressed that the challenges peculiar to Nigeria such as the impact on the annual budgeting exercise from the global shock in oil prices, drop in production due to pipeline vandalism and weakening of the Naira relative to the Dollar have increased cost of doing business in the industry and deterred investments in the Sector. But, the recent uptake in global oil prices is a welcome relief, which will make oil investments attractive again across board. He said that some other challenges of the industry such as oil spills, gas flaring and environmental pollution are currently being addressed by the new petroleum policy, new gas policy and proposed establishment of modular refineries respectively. He concluded that the intervention of the Federal Government to security threats on activities that involve oil exploration, production and distribution; has led to a marked improvement in oil and gas exploration and production in Nigeria.

RESEARCH & DEVELOPMENT

Issue 3 2018 www.oilandgasrepublic.com

Cranfield University and partners unveils new aerospace technology

ranfield University and partners are presenting a new concept in personal air mobility for fast, efficient and congestion-free urban and inter-city air travel.

electrification of aerospace, and is an excellent example of how the University combines cuttingedge research, academic rigour and real-world application.”

Uk’s leading aircraft design and production SME we are excited to be playing this key role in the Volante Vision Concept and so to be at the vanguard of this revolution in aerospace.”

The Volante Vision Concept, developed in partnership with Aston Martin, Cranfield Aerospace Solutions and Rolls-Royce, is a nearfuture study that previews a luxurious flying autonomous hybrid-electric vehicle with vertical take-off and landing (VTOL) capabilities.

Aston Martin President and CEO Dr Andy Palmer said: “With the population in urban areas continuing to grow, congestion in towns and cities will become increasingly demanding. We need to look at alternative solutions to reduce congestion, cut pollution and improve mobility. Air travel will be a crucial part in the future of transportation. The Volante Vision Concept is the ultimate luxury mobility solution.

Director, Rolls-Royce Electrical, Rob Watson said: “We are delighted to be involved in the Volante Vision Concept, which showcases the best of British design and engineering. Rolls-Royce has already delivered hybrid-electric systems for other applications including ships and trains, and we’re very excited about the potential of the technology in aerospace. This is a great opportunity to collaborate on a pioneering project which will use high performance hybrid-electric propulsion technologies for personal air mobility concepts that could transform the future of transportation.”

The concept takes full advantage of expertise at Cranfield’s global research airport, located at the heart of the Cambridge – Millton Keynes – Oxford arc, coupled with Aston Martin’s signature design and powered by Rolls-Royce hybrid-electric systems. Cranfield is leading work on the autonomous flight controls, connectivity and security of the aircraft. Digital aviation research at the University will also support how the aircraft fits into the wider transportation ecosystem. Professor Iain Gray, Director of Aerospace at Cranfield University said: “We’re delighted to be part of this exciting and forward-thinking project that showcases British innovation and the way that Cranfield works with and supports business. The Volante Vision Concept exemplifies Cranfield’s unique capabilities in digital aviation, autonomous systems and the

“Humans have always spent, on average, one hour commuting to and from work. The distance we live from our workplace has been determined by the methods of transportation available. The Volante Vision Concept will enable us to travel further with our hourly commute, meaning we are able to live further away from where we work. Cities will grow, and towns that are today too far away from cities to be commutable will become suburban. “With Aston Martin and our ‘dream team’ of British innovation across industry and academia, we are positioned to change the future of transportation, giving our customers a new dimension of freedom.” Cranfield Aerospace Solutions (CAeS) CEO Paul Hutton said: “The introduction of autonomous and electric propulsion technologies into new aircraft designs is both inevitable and challenging, and as the

The next phase of the project will focus on engineering and technical development, with the aim of working towards a full-size flying demonstrator prototype. The skills offered by each partner ensures that the Volante Vision Concept promises to offer an exciting alternative transportation solution for customers across the globe.

RESEARCH & DEVELOPMENT

Issue 3 2018 www.oilandgasrepublic.com

OGTAN advocates for inter-agency collaboration to enhance R&D in Nigerian universities By Ndubuisi Micheal Obineme

r. Afe Mayowa, president, Oil and Gas Trainers Association of Nigeria, (OGTAN) and chief executive officer, Danvic Petroleum International Corporation has called for collaboration by all inter-governmental organization to further improve Research & Development (R&D) in Nigerian universities.

Dr. Afe who spoke with our correspondent at the sideline of the Nigerian Oil and Gas Conference (NOG) in Abuja said that there is need to put more collaborative efforts in place between Nigerian universities and the oil and gas industry. He said that there is nothing wrong if about 10 PhD candidates are selected as a research team to work on a particular project in the University of Ibadan while Chevron becomes the sponsor which in return the candidates will be able to deliver the work with a positive result. He adds: “This is the kind of collaboration we really want to see. But as at today, we are not seeing too much of that.” He further explained that in the developed countries, you will see companies investing in departments who have personnel; doctoral students and the students will devote their time in carrying out specific research that could help the oil and gas industry. This is because the companies are in business to make money while the universities are in the process of adding knowledge. So the companies help the students who want to go into research and add to knowledge which they will also benefit from. “This is because if you improve technology, a lot of things will be easy for the oil company. There is a lot of benefit in inter agency collaboration. This is to forestall duplication of efforts,” Dr. Afe said. Dr. Afe also called for Government support to ensure that there is an enabling environment for every operation to be useful. He adds: “Chevron cannot collaborate with the University of Ibadan if the environment for Chevron to do their business is not there.” He said that there should be some tax concession to companies that are sponsoring research in universities. There should be some form of tax holiday. For instance in developed nations, if you sponsor anything charity, what they do is that the money is tax free. It encourages you to do more because you know that you will get some of the things that you are doing tax-free. An enabling environment is a key and the government should be able to provide it. As part of the association efforts to contribute to the oil and gas industry, OGTAN recently organised an education summit which was attended by stakeholders from across the Nigerian oil & gas industry.

Dr. Afe Mayowa

Nigeria's former Minister of Education, Dr Oby Ezekwesili, Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, was a key speaker at OGTAN’s 1st National Education Summit held recently in Lagos. Ezekwesili said that the development of human capital and local content is vital to the nations’ development. She further explained that without the development of human capital and local content, Nigeria’s vast natural resources would amount to nothing when put at par with developed countries of the world. She said, “It doesn’t matter what quantity of oil and gas, and minerals still existing in our grounds, without developing human capacity and local content, we might as well be heading for collapse”. “Oil and gas is a means to an end. The end is about the development of human capital”, she said.

industry on research to attract investments into the country. Baru who was represented by Managing Director of NETCO, Mr. Mustapha Yakubu said, “research must be prioritised in order to keep up with the developmental changes in the world”. He added that developmental frameworks that will address stumbling blocks to investments should also be put in place. The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote on his part explained that with the enabling frameworks backed with the right legislative push, the nation’s economy will be heading towards meeting up with international standard. According to him, structures that will encourage capacity building, research and development, provide finding and incentives should be put in place to encourage local development. He added that the board is preparing to launch a research and development fund where academia and industry practitioners will be funded to carry out researches for development of the economy.

Ezekwesili added that discretionary allocation of oil blocks gave rise to “massive” corruption in Nigeria. “The discretionary allocation of oil blocks led to massive and grand corruption in Nigeria.” “So to this end, we entrenched the system of licensing and marginal fields allocation in order to encourage local players”. “But I guess politicians assumed marginal fields would be distributed to them without due process”. According to her, right policies need to be put in place in the oil and gas sector to avoid political sentiments.

OGTAN have also developed a communiqué which are giving to government, ministry of education and every industry stakeholders.

The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, urged for collaboration between academia and the

OGTAN has also created a technical business meetings that will enable people to be able to express themselves.

“Access to the fund will be on an international standard. And those research will not end on paper but will lead to collaborations between academia and industry experts”.

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G20 ARGENTINA 2018

Issue 3 2018 www.oilandgasrepublic.com

G20 leaders meets in Argentina, reaffirms commitment towards a Transparent Systems

he G20 energy ministers has reaffirmed their commitment to provide affordable access to energy, take actions to address climate change and energy security in order to meet-up with the 2030 Agenda for Sustainable Development. The ministers disclosed this at the G20 summit for energy ministers held in San Carlos de Bariloche, southern Argentine region of Patagonia on 14 - 15 June, 2018. The meeting was attended by representatives of member countries and international organizations, namely; Juan Jose ARANGUREN, Minister of Energy & Mining Argentina, Sean Sullivan, First Assistant Secretary, Department for the Environment & Energy Australia, Secretary of International Relations, Ministry of Mines & Energy Brazil, James Gordon Carr, Minister of Natural Resources Canada, Liu Baohua, Vice Administrator of the National Energy Administration China, Carole Lancereau, Directorate for Energy & Climate, Ministry of Ecological Transition France, Thorsten Herdan, Director-General of Energy Policy, Federal Ministry for Economic Affairs & Energy Germany, Abhay Bakre, Director-General of the Bureau of Energy Efficiency, Ministry of Power India, Yudo Dwinanda Priaadi, Senior Advisor for Strategic Planning, Ministry of Energy & Mineral Resources Indonesia, Gilberto Dialuce, General Director for Energy Security, Ministry of Economic Development Italy, Yoji Muto, State Minister of Economy,

Trade & Industry Japan, Mitsunari Okamoto, Parliamentary Vice Minister for Foreign Affairs Japan, Leonardo Beltran, Deputy Secretary of Planning & Energy Transition Mexico, Vyacheslav Kravchenko, Deputy Minister of Energy Russia, Khalid Abuleif, Chief Negotiator for the Climate Agreements, Ministry of Energy, Industry & Mineral Resources Saudi Arabia, Lim Ki-mo, Ambassador to Argentina, South Korea, Alparsian Bayraktar, Deputy Undersecretary, Ministry of Energy & Natural Resources Turkey, Dan Dorner, Head of BEIS-FCO International Energy Unit, Department for Business, Energy & Industrial Strategy United Kingdom, Rick Perry, Secretary of Energy United States, Christopher Jones, Hors Classe Adviser, Energy Directorate-General European Union, Susana Jimenez, Minister of Energy Chile, Betsy Bandy, Director of the Policy, Planning, Development & Evaluation Division, Ministry of Science, Energy & Technology Jamaica, Yvette van EECHOUD, Director of European & International Affairs, Ministry of Economic Affairs Netherlands, Tan Wu Meng, Senior Parliamentary Secretary, Ministry of Foreign Affairs and Ministry of Trade & Industry Singapore (ASEAN), David Izquierdo, Ortiz De Zarate, Counsellor, Embassy of Spain in Buenos Aires, other international organization includes; Ariel Yepez-Garcia, Energy Division Chief InterAmerican Development Bank, Tim Gould, Head of Supply Division, World Energy Outlook International Energy Agency, Sun Xiansheng, Secretary-General International Energy Forum, Benoit Lebot, Executive Director - International Partnership for Energy Efficiency Cooperation, Henning Wuester, Director of the Knowledge,

Policy & Finance Centre - International Renewable Energy Agency (IRENA), Simon Buckle, Head of Climate Change, Biodiversity & Water Division Organization for Economic Cooperation & Development, Douglas Linton, Senior Research Specialist - Organization of the Petroleum Exporting Countries (OPEC), Oliver Waissbein, United Nations Development Programme The discussions focused on energy transitions, promoting fair and sustainable development, building upon the in valuable outcomes of the previous Presidencies and Ministerial Meetings including issues such as access to energy in Latin America and the Caribbean, transparency of information the sector and the gradual reduction of inefficient energy subsidies. Participants addressed a series of reports by international organizations about renewable energies, energy efficiency and data transparency, among other topics. The ministers recognised the crucial role of energy in helping shape the future, as well as the need to transform countries energy systems which will be in line with the spirit of the 2030 Agenda for Sustainable Development, as well as the need for persistent actions to address the global challenges, including climate change and energy security. While speaking on their commitments to work towards low greenhouse-gas (CHG) emissions, increased innovation on sustainable and clearner energy systems, the ministers commended Argentina Presidency for dealing with issues surrounding Energy Transitions, Energy Efficiency, Renewable Energy, Data Transparency, and Energy Access and Affordability.

G20 ARGENTINA 2018

The Energy Transitions Working Group highlighted, "We recognise that energy transitions are an essential element of longterm development strategies that should combine economic growth with decreasing GHG emissions. We acknowledge the importance of energy transitions to achieve emissions reductions and for those countries that are determined to implement the Paris Agreement; and we note the linkage between country-driven energy transitions that provide affordable and reliable energy and the important role of energy markets and innovation in providing energy security, economic growth, and a cleaner environment." Energy Transitions towards Cleaner, more Flexible and Transparent Systems In their words, Germany's G20 Presidency 2017, supported by the G20 membership, emphasised the topic of energy transition, and stated that G20 members should lead the transition and jointly work to transform their energy systems into affordable, reliable, sustainable and low GHG emissions systems as soon as possible. "We welcome the approach of Argentina's G20 Presidency, which recognises that there are different possible national paths to achieve cleaner energy systems-while promoting sustainability, resilience and energy security-(in plural). This view reflects the fact that each G20 member-according to its stage of development-has a unique and diverse energy system as starting point, with different energy resources, demand dynamics, technologies, stock of capital, geographies and cultures. "At a worldwide level, while it is important to acknowledge that fossil fuels still play a major role, we stress the need to successfully transform energy systems, by increasing investments in cleaner technologies,

Issue 3 2018 www.oilandgasrepublic.com

cooperation in energy efficiency and deployment of renewables and innovation.

They added: "We will include Behaviour Change in the current EELP implementation plan.â&#x20AC;?

"We reaffirm G20's leading role in encouraging effective energy transitions processes, through combined efforts on both the demand and supply sides. These processes should involve a costeffective approach, including in their design not only environmental, but also social and economic dimensions. We intend to collaborate closely to successfully address these challenges, with a view to foster economic growth and welfare."

Renewable Energy According to them, the progress achieved with regard to the development and deployment of renewable energy has been remarkable, benefitting from innovation and in part from significant cost reductions (notably for solar and wind, which are now cost competitive in many cases), but much more progress will be needed, not only in G20 member countries, but also worldwide.

Energy Efficiency Energy efficiency has been prioritised by G20 members and has also become one of the pillars of the 2030 Agenda for Sustainable Development, due to its contribution to energy security, industrial competitiveness, emissions reduction, economic growth, job creation and others social benefits when introduced in a cost-effective manner. International collaboration, including through the G20, is critical to effectively support the design and implementation of national energy efficiency policies and programmes.

"We encourage G20 members that opt to enhance their renewable energy strategies considering national circumstances, needs and priorities to accelerate their implementation, where appropriate.

The participants acknowledged the work of the Task Groups of the Energy Efficiency Leading Programme (EELP) and encourage the Group to significantly scale up public and private investments and financing in energy efficiency across all sectors in order to transform the energy sector to a cleaner, more flexible and transparent systems. Building on past achievements, Argentina's G20 Presidency 2018 continues to support these efforts and has proposed to consider and promote other critical aspects that contribute to the success of energy efficiency policy options, such as Behaviour Change initiatives. Behaviour Change can act as a bridge between innovation, technological progress, and nationally driven energy efficiency measures, delivering greater benefits for consumers and all sectors of the economy.

"We encourage increased investment and financing in renewable energy production, including through barrier reduction and risk mitigation initiatives, which is particularly important for developing countries. "We recognise that system integration of variable renewable energy is crucial for electricity security and expanded deployment of renewables, which includes a number of elements, such as regional integration of grids, flexible power plants, electricity storage, grid stabilisation through digital technologies and demand-side management. We acknowledge the benefits of international collaboration,â&#x20AC;? they added. G20 members would foster efforts to take the lead to provide market design options that can be used to adapt electricity markets, facilitating their ability to integrate higher shares of variable renewables. "We note that base load generation remains an essential element of energy security, depending on national circumstances and preferences. In this regard, for many countries large-scale hydropower plays a key role."

G20 ARGENTINA 2018

"Renewable energy progress should be accelerated beyond the power sector. We acknowledge that some renewable energy sources, such as bioenerg (including biofuels), solar and geothermal energy, can play an important role in some G20 countries inreducing emissionsin the transportation, heating and cooling, and industrial sectors worldwide, depending on national circumstances and conditions," they commented Natural Gas They also acknowledged that natural gas currently palys a key role for many G20 countries, and the need to expand significantly over the coming decades, supporting transitions towards lower emission energy systems. Speaking on the gas potentials, the ministers promised to improve the functioning, transparency and competitiveness of gas markets, with a strategic view of the supply chain-including Liquefied Natural Gas (LNG) and storage facilities at a global level. "We will encourage an expanded dialogue with relevant international organisations on more effective and flexible use of natural gas." Other Fossil Fuels In their words, for those G20 countries that opt to continue utilising fossil fuels will endeavour to spur innovation through the use of advanced and cleaner technologies which will contribute to reduce emissions and encourage investment and financing in advanced and cleaner fossil fuels technology options (including Carbon Capture, Utilisation and Storage). "We reaffirm the importance of using the most advanced and cleaner technologies in order to address the environmental impacts, including GHG emissions, of the production, transport and consumption of fossil fuels. We encourage countries to enhance cooperation in developing and applying best available technologies."

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Inefficient Fossil Fuel Subsidies that encourage wasteful consumption In 2009, the Pittsburgh Leaders Declaration called for medium term rationalisation and phasing-out of Inefficient Fossil Fuel Subsidies that encourage wasteful consumption while providing targeted support for the poorest. They commended the efforts made by those G20 members who have already participated in voluntary peer reviews, and used the medium to encourage those who have not yet done so to initiate their peer reviews as soon as possible. Nuclear Energy For those countries that opt to use nuclear energy, it contributes to the reduction of GHG emissions and to base load and the significant innovations underway (including in small modular and advanced reactors) were noted. The ministers calls on those countries to uphold the highest standards of nuclear safety, security and non-proliferation, including the compliance with an independent and effective regulator, and to exchange their expertise and experiences. The Key Role of Innovation They said that they will continue to foster innovation as one of the key drivers of the energy transitions processes. "We will encourage and facilitate research, development, demonstration and deployment (RDD&D) of innovative, cleaner and efficient energy technologies, recognising the need for these to be competitive and commercially viable. "We will encourage greater cooperation in developing, sharing and applying best available technologies, and will also encourage multilateral development banks and finance institutions to facilitate investment, and technology transfer. We will support flexible energy systems and distributed generating capacities.â&#x20AC;? Energy Data Transparency and Markets Digitalisation They also said that a more robust and comprehensive energy data is important for

effective decision-making to face the challenges of its energy transitions. In this note, the minsiters noted that they will promote market digitalisation - minimising the risks of malicious use of ICT technologies - with a view to increase flexibility and enable integration across entire systems, as well as to open up the opportunity for millions of consumers, producers and investors to sell electricity or provide valuable services to the grid. "We will encourage G20 members to foster closer collaboration among international, regional and national organisations, to set up training programmes to build and implement capacity for energy data collection and management. Energy Security "We acknowledge energy security as one of the guiding principles for the transformation of our systems, and will continue to promote policy options that facilitate open, flexible, transparent, competitive and reliable markets for energy commodities and technologies. "We stress the importance of diversification of energy sources, suppliers and routes, and the need to facilitate the proper conditions for continued and increasing investments to ensure sustainable, affordable, reliable, resilient and cleaner energy systems. Investment in infrastructure is essential, but a persistent financial gap remains. We encourage increased contributions from both public and private financial resources. Energy Access and Affordability "We recognise that energy is at the heart of economic growth and sustainable development, and that access to modern energy services and clean cooking facilities is one of the prerequisites for social and economic development. "We reaffirm our commitments to promote universal energy access, with special emphasis on the need to eradicate energy poverty and ensure gender equality across the value chain. Fostering cooperation on energy access in disaster-impacted and remote areas is particularly important. We also recognise the need to provide access to displaced people.

G20 ARGENTINA 2018

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We note "Energy Access and Affordability Voluntary Action Plan for Latin America and the Caribbean" put forward by Argentina's G0 Presidency, which highlights the need to tackle energy service cost and affordability issues, in addition to access challenges. We will explore ways to further advance energy access, including through enhanced implementation of G20 regional plans and increase international financing for access, in particular for those countries that have limited financial resources," they concluded. At a press conference, Juan Jose Aranguren, Minister of Energy and Mining of Argentina; Thorsten Herdan, Managing Director of Energy Policy in Germany and Yoji Muto, Minister of Economy, Trade and Industry of Japan, which make up the troika of energy ministers of the G20, announced that after several months of work and two days negotiations came to a statement by consensus. The Aranguren minister said: " We recognize the crucial role of energy to improve our future, taking into account the circumstances of each country and the need to achieve the overall objectives including climate change and energy security. We recognize that energy transitions are essential for developing long-term strategies that combine economic growth and reduction of greenhouse gases ". In the statement, the approach proposed by Argentina admits that there are several possible ways to achieve national cleaner energy systems, while sustainability, resilience and energy security is promoted. According to the proposed vision, each member of the G20 account, according to their stage of development, with a system of unique and diverse energy as a starting point, with different energy resources, dynamics of demand, technologies, capital stock, geographies and cultures . For its part, the CEO Herdan whose country chaired the G20 in 2017 said: "I want to congratulate you for your leadership, not only these two days but also throughout the presidency that took us to the current result, a statement adopted by all G20 members. You should be very proud of this achievement because it was under his leadership. " At the same time, Muto whose country will chair the G20 in 2019 said: "We would like to build on this achievement next year and deepen the discussion on the role of innovation in energy transitions." Aranguren concluded: "Now we must move from consensus to action." On the margins of the G20 energy ministerial meeting in the Patagonian city of Bariloche, Argentina and Canada announced cooperation in energy and mining, and in the transition to a low-carbon economy, at the G20 meeting. Argentina and Canada have agreed to combine their countries’ expertise to deliver clean energy solutions for the future, signing MoUs on energy efficiency, mining policy, and nuclear energy cooperation, and agreeing to peer reviews of inefficient fossil fuel subsidies.

Demonstrating global leadership and collaboration to achieve climate change goals and enable the transition to a low-carbon economy, Argentina’s Minister of Energy and Mining, Juan José Aranguren, and Canada’s Minister of Natural Resources, Jim Carr, have agreed to combine their countries’ expertise to deliver clean energy solutions for the future. The ministers signed three Memoranda of Understanding (MoU) - one each on energy efficiency, mining policy, and nuclear energy cooperation - at the G20 Meeting of Energy Ministers in the Patagonian city of Bariloche. The MoUs demonstrate that the two countries: · place a high priority on energy efficiency as a means to reduce energy use and costs and achieve their climate goals; · share a commitment to sustainable mineral resource development, which will result in economic growth and environmental stewardship; · continue to work toward a bilateral framework for collaboration on nuclear energy projects, research and development, and policies aimed at the sustainable development of nuclear energy. “These agreements confirm Argentina’s interest to enhance international collaboration in key areas”, said Minister Aranguren during the announcement. “We ratified our commitment to mitigate climate change aligned with the Paris Agreement’s goals. We pursue sustainable energy and mining development together with a policy of energy savings and efficiency that allows us to take care of our natural resources and those of the planet,” he added.

The two countries also agreed to demonstrate leadership, domestically and internationally, in the transition to a low-carbon economy, announcing that they will conduct peer reviews to ensure both countries are on track to phase out inefficient fossil fuel subsidies. “As a G20 country, Argentina reaffirms its commitment to rationalize and phase out, over the medium term, inefficient fossil fuel subsidies that encourage wasteful consumption, recognizing the need to support the poor, and we will endeavour to make further progress in moving forward on this commitment,” stated Minister Aranguren. “This joint peer review will help us to enhance our energy security, mitigate climate change and keep our focus on those people who really need subsidies,” he concluded. “Canada’s partnership with Argentina in this peer review demonstrates our commitment to ambitious climate and energy policies,” said Minister Carr. Argentina and Canada have both made significant progress in phasing out inefficient fossil fuel subsidies and are on track to achieve their commitments. Phasing out inefficient fossil fuel subsidies is an important step in the transition to a low-carbon economy. In 2009, G20 countries made a landmark commitment to phase out and rationalize inefficient fossil fuel subsidies over the medium term while providing targeted support for the poorest citizens.

“Major breakthroughs that truly accelerate our transition to a low-carbon economy can only come from collaboration,” said Canadian Minister Carr, also stressing the importance of cooperation.

Argentina is fully committed to its energy and climate goals and is eager to fulfil its international agreements. Ensuring energy security for a developing country as well as mitigating environmental impacts remain central components for Argentine energy policy.

“These agreements demonstrate that by leveraging our expertise and advancing energy cooperation we will move closer to meeting our climate change commitments and position Canada to be a leader in the clean growth economy.”

As part of the Argentine G20 energy meetings, senior energy officials of G20 member and guest countries visited the headquarters of INVAP, in Bariloche, in the southern Argentine region of Patagonia.

G20 ARGENTINA 2018

Issue 3 2018 www.oilandgasrepublic.com

The energy ministers and heads of delegations, who were welcomed by Juan José Aranguren, Argentina’s Minister of Energy and Mining; Alberto Weretilneck, governor of the province of Río Negro; and the company’s managers, had the opportunity to explore INVAP’s achievements over the last 40 years in the nuclear, space, defence and security, medical and technological fields.

launched in the last quarter of 2018 - and the SAOCOM 1B satellites, in their different stages of integration. These Earth observing systems are designed specifically to prevent, monitor, mitigate and assess natural and man-made disasters, by measuring soil humidity and its applications in the event of an emergency, such as the detection of hydrocarbon spills in the sea, or the monitoring of water levels during flooding.

During the tour, they visited the satellite integration area, or “clean room”, where they were able to observe the SAOCOM 1A satellites - which will be

The ministers also visited CEATSA, a high-tech company founded in 2010 after an agreement between the Argentine telecommunications

company ARSAT S.A. and INVAP, that provides environmental testing services. The G20 was established in 1999 as a technical meeting of finance ministers and Central Bank presidents. During the economic crisis of 2008, it became what it is today: a key discussion and decision-making space in which top world leaders and major economies participate. Together, members represent 85% of the total crude product, two thirds of the world population and 75% of international trade.

President Macri calls on Belgian businesses to invest in energy, agriculture, tourism and infrastructure in Argentina at the same time to important G20 priorities this year. “Argentina has been undergoing historical change over the last two and a half years; it has decided to put behind decades of frustration.” “Now we want this amazing country to grow, to be a part of the world. For this to happen, we need to be honest, credible and trustworthy, and we have to set clear rules so that businesses like yours will come and invest,” he added. “Argentina will develop faster if it works together with good partners.” Macri underlined the country’s development potential in conventional energies, solar and wind, paying special attention to the Vaca Muerta, one of the largest shale gas reserves in the world. He also mentioned the mining sector as another good destination for investments, with Argentina’s mining exports at levels of only 10% of that of its neighbour Chile, despite both countries sharing the Andean Cordillera.

resident Mauricio Macri received Princess Astrid of Belgium at the Casa Rosada, together with five Belgian ministers and a large delegation of Belgian business leaders, calling on them to take advantage of the country’s investment opportunities in the agribusiness, energy and mining, tourism and infrastructure sectors. “We hope that you will join the efforts being made across the world to support our country,” Macri said to the business delegation accompanying Princess Astrid. The visit is part of a weeklong economic mission to Argentina and Uruguay that has already seen agreements signed with local Argentine companies and organizations in sectors such as food and

beverages, energy efficient lighting, port infrastructure and proton therapy solutions for cancer treatments. In his speech to the Belgian business delegation, Macri underlined that the current Argentine presidency of the G20, the country’s hosting of the World Trade Organization (WTO) Ministerial Conference last December, and the recent historical agreement with the International Monetary Fund (IMF), “show that the country’s return to international markets has been welcomed by the world.” “We can contribute an enormous amount to energy security, food security and the challenges of the ongoing technological revolution,” he said, alluding

He added too that the Argentine Government expects food production to increase by more than 50% in the next five years. “We are looking for partners to help us add value to our crops so that Argentina can become the world’s supermarket,” he said. Making reference to the country’s breathtaking landscapes and the vibrant, cosmopolitan city of Buenos Aires with its European feel, the president also spoke of tourism as another sector with enormous potential. “We are looking for big tourism operators; this is a very dynamic industry and it requires the vitality that only new businesses can provide,” he said. President Macri also called for infrastructure sector development, encouraging investment in larger transport networks to support local production, and in improving communications and the internet to boost virtual connectivity.

PHOTO GALLERY

Issue 3 2018 www.oilandgasrepublic.com

Snapshot at PDAC Convention 2018 in Canada

PHOTO GALLERY

Issue 3 2018 www.oilandgasrepublic.com

RENEWABLE ENERGY

Issue 3 2018 www.oilandgasrepublic.com

Bechtel Selected as PM Contractor for Nuclear Plant Project in Wales, UK Bechtel project management, procurement, and subcontract management professionals will be embedded within Horizon’s organization to lead the commercial and contractual relationships with local, UK, and global suppliers that will be required to complete the project. Bechtel has been a leader in nuclear services across the facility lifecycle. Since the 1950’s, Bechtel has performed services on more than 150 nuclear power plants around the world including Watts Bar Unit 2 in Tennessee, the last reactor to start up in the U.S. and the first to come online in the 21st century. Bechtel is now completing construction on Plants Vogtle Units 3 and 4 in the U.S. state of Georgia, the only active construction of a new nuclear plant in the nation. Bechtel is actively engaging the advanced reactor community as newer technologies emerge. And, Bechtel led efforts to complete the design and federal license application for Yucca Mountain, a repository for used fuel from U.S. nuclear power plants. echtel, a global leader in engineering, procurement, construction, and project management, has been selected by Horizon Nuclear Power to be project management contractor for a new, tworeactor nuclear plant in Wales, United Kingdom.

The Wylfa Newydd power station is to be built on the Isle of Anglesey in North Wales and is a key part of the UK’s plans to provide low

-carbon energy by replacing aging nuclear stations and fossil fuel plants with modern nuclear plants and renewable energy. “This is a critically important project for the UK and the future of nuclear power,” said Barbara Rusinko, president of Bechtel’s government services and commercial nuclear power business. “We are honored to be selected for this important role and committed to the long-term future of nuclear as a safe and reliable, 24/7 provider of electricity.”

Clarke Energy selected as Preferred Bidder for Symbion Power’s Lake Kivu Power Projects larke Energy will Provide Approximately 25 of GE’s Jenbacher Gas Engines for Symbion Power’s Kivu 56 and KP1 Power Plants in Rwanda; Two Power Projects at Lake Kivu Will Increase Capacity by 81 Megawatts and Significantly Reduce the Current Cost of Generation in Rwanda; Clarke Energy Will Create New Jobs in Rwanda to Service GE’s Jenbacher Gas Engines.

Symbion Power has named Clarke Energy as the preferred bidder for two important power plants in Rwanda, which will generate power from dissolved biogas from deep below Lake Kivu. The projects include approximately 25 Jenbacher* gas engines from GE’s Distributed Power business (NYSE: GE). This announcement coincides with a British Government trade delegation’s visit to Africa. Clarke Energy will deliver GE’s J620 3megawatt (MW) Jenbacher gas engines across Symbion’s Kivu 56 and KP1 power plants, which are located on the shores of Lake Kivu in Rwanda. Clarke Energy will also create jobs in Rwanda to support the servicing of the engines. Symbion Power is an independent power producer that has secured the rights to deliver

two projects in Rwanda on Lake Kivu. The Kivu 56 project is planned to export 56 MW of power into the Rwandan grid under a 25-year concession.[1] KP1 originated as an earlier pilot project, and Symbion has acquired the plant and will upgrade it from 3.6 MW to 25 MW, which will be delivered to the Rwandan grid system under a separate 25-year concession. Symbion Power’s Founder and Chief Executive Officer Paul Hinks said, “After a long and rigorous competitive process, we have selected Clarke Energy, using GE’s Jenbacher gas engines, as our preferred technology provider. These two power projects at Lake Kivu will increase capacity by 81 MW and significantly reduce the current cost of generation in Rwanda.” Lake Kivu, one of the African Great Lakes, is a unique body of water in the world, which at its base is saturated with biogas that is a combination of methane and carbon dioxide gases. This gas is produced by way of the unique combination of 500meters (m) depth, heat originating from magma under the rift valley and microbes, breaking down organic material that falls from higher in the lake. The surface of the lake is 1,460 m above sea level. Unlike normal biogas, which is produced in

anaerobic digesters, organic process plants process biodegradable waste, so at the base of the lake, the biogas contains only 20 percent methane. This level is lower than that required even in a Jenbacher gas engine. The plan is to strip the carbon dioxide—which forms the balance of the volume of the gas—using water and then to put the gas into reciprocating gas engines located at discrete power stations on the shores of the lake. The electricity from the engines will be put directly into Rwanda’s electricity distribution network. Clarke Energy’s Managing Director in Africa Alan Fletcher said, “We are delighted to have been named the preferred bidder by Symbion Power for these two key projects on the shores of Lake Kivu. Our proposed solution is able to deliver reliable supplies of sustainable energy and support jobs in Rwanda and the United Kingdom.” The result of continuous enhancements and extensive experience, GE’s Jenbacher Type 6 gas engines are an advanced and reliable addition to its product line. The 1,500-rpm engine speed results in a high power density with low installation costs, and its pre-combustion chamber achieves high efficiency with low emissions. “GE’s Jenbacher gas engines will provide higher efficiency and increased capacity for Symbion Power’s projects, helping to solve the energy challenges in the region,” said Leon van Vuuren, general manager, global sales and commercial operations for GE’s Distributed Power business.

RENEWABLE ENERGY

Issue 3 2018 www.oilandgasrepublic.com

Enel starts construction work on 34MW solar plant in Zambia nel Green Power (EGP) has started the construction of the 34 MW1 Ngonye solar PV plant, which is the Group’s first power plant in Zambia. The PV facility, which is located in Lusaka South Multi-Facility Economic Zone in the country’s south, is part of the World Bank Group’s Scaling Solar programme carried out by Zambia’s Industrial Development Corporation (IDC), which awarded Enel in June 2016 the right to develop, finance, construct, own and operate the plant.

“The start of construction of Ngonye solar plant is a new milestone in the strengthening of the Enel Group’s presence in the African continent, where we already are the first private renewable operator in terms of installed capacity,” said Antonio Cammisecra, Head of Enel’s Global Renewable Energies Division, Enel Green Power. “Ngonye, with its clean, sustainable and reliable power, will play a significant role in helping Zambia to meet its electrification goals, demonstrating once again that renewable utility-scale power plants are the most effective solution to give access to electricity in the continent.”

The Enel Group will be investing around 40 million US dollars in the construction of Ngonye, which is expected to be completed in the first quarter of 2019. In June, the Enel Group signed with IDC a financing agreement of around 34 million US dollars for the construction of the PV plant, involving senior loans of up to 10 million US dollars from the International Financing Corporation (IFC), a member of the World Bank Group, up to 12 million US dollars from the IFC-Canada Climate Change Program and up to 11.75 million US dollars from the European Investment Bank (EIB). Ngonye solar plant, which will be owned by a special purpose vehicle 80% held by EGP and 20% by IDC, is supported by a 25-year power purchase agreement signed with Zambia’s state owned utility ZESCO. Once fully up and running, the facility is expected to produce around 70 GWh per year, avoiding the annual emission of over 45,000 tons of CO2 into the atmosphere. Zambia, which features an average annual growth in electricity consumption of around 5-6% and a significant need to diversify its energy generation mix dominated by hydro, aims to increase the

security and quality of supply, while encouraging the electrification of rural areas. For this reason, Zambia’s government launched a series of initiatives to promote the development of renewables, with a particular focus on photovoltaic power, setting the goal of installing up to 600 MW of solar power within the next two to three years. In this framework, IDC launched a tender for the development of two PV projects with a total capacity of up to 100 MW structured according to the World Bank Group’s Scaling Solar programme, with the International Finance Corporation acting as advisor. Enel Green Power, the Renewable Energies division of Enel Group, is dedicated to the development and operation of renewables across the world, with a presence in Europe, the Americas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with a managed capacity of around 42 GW across a generation mix that includes wind, solar, geothermal and hydropower, and is at the forefront of integrating innovative technologies into renewables power plants.

WorleyParsons to deliver second largest wind power project in Kenya orleyParsons has signed a 22-month engineering contract with Kipeto Energy Limited for the Kipeto Wind Power Project in Kenya. The project is the second largest in the country after the Lake Turkana Wind Power Project, which WorleyParsons provided the overall project management, engineering review and construction management services for.

“Our successful execution of the Lake Turkana Wind Power Project and the experience gained

played a key role in WorleyParsons winning the Kipeto project,” said Project Director Tim Gaskell. Located in the south west of Nairobi, the Kipeto project will include the construction of 60 GE wind turbines, and produce an additional 100 MW of renewable energy onto the Kenyan Grid. WorleyParsons’ ability to leverage on its global expertise combined with excellent in-country knowledge is an added advantage to ensuring the successful completion of this project.

The company’s strong focus on localization will contribute significantly to the Kenyan economy, creating job opportunities for approximately 1,000 locals. Continued employment will also be afforded to local contractors and some of the local personnel who were part of the Lake Turkana Wind Power Project team. When asked what it means for the wind power industry, Gaskell said, “This project reinforces Kenya’s commitment to the wind power industry and adds to Kenya’s already strong renewable energy mix.”

ENGIE to build 8 hybrid solar power plants in Gabon ENGIE has signed an agreement with CDC, the Gabonese financial institution Caisse des Dépôts et Consignations, to deploy eight hybrid solar power plants in Gabon, representing a combined capacity of 2.2 MW. The project will save the country 1 million litres of fuel oil per year, or 2,600 tonnes of CO2, and reduce generation costs by 30% The implemented solution was developed by ENGIE’s subsidiary, Ausar Energy in collaboration with CDC, the Gabonese Ministry of Energy, and the Gabonese energy and water company Société d’Énergie et d’Eau du Gabon

(SEEG) and means that solar energy can be used in eight locations that are currently supplied by oilfired thermal power stations. With construction set to begin in a few weeks, this project will contribute to the Gabonese Republic’s proactive policy of using renewable energy – solar and hydropower – to increase the country’s energy capacities. The project will save the country 1 million litres of fuel oil per year, or 2,600 tonnes of CO2, and reduce generation costs by 30%. Ausar Energy offers the African continent a hybrid solar power plant solution, with or without storage

facilities, with capacities ranging from 50 kW to 2.5 MW. This solution is in line with ENGIE Group’s strategy of promoting decentralised generation and distribution of electricity from renewable sources. This strategic priority is designed to ensure continuous access to energy in isolated areas that are not and cannot be connected to grids, as well as to limit the consumption of fuel oil, manage costs and reduce pollution.

EXCLUSIVE INTERVIEW

Issue 3 2018 www.oilandgasrepublic.com

Afe Mayowa Afe Mayowa, president, Oil and Gas Trainers Association of Nigeria, (OGTAN) and chief executive officer, Danvic Petroleum International Corporation in this interview with our correspondent on the sideline of the 2018 Nigerian Oil and Gas Conference, in Abuja speaks on the need for an enabling environment to aid collaborative efforts in the nation’s oil and gas industry. Ayobami Adedinni brings the excerpts:

OGR: In terms of collaborative roles between government agencies as regards research and development, can we say the Nigerian oil and gas industry has come of age?

In the developed world, you see companies investing in departments who have personnel; doctoral students and they devoted their time in carrying out specific research that could help the oil and gas industry.

Afe: There is still a lot of work to be done although we are improving. After 50 years, we suddenly woke up that there needs to be. I think after 50 years of exploration and oil production business, we should be champion in Africa.

This is because they are in business to make money but these universities are in the process of adding knowledge. So they help the people who want to go into research and add to knowledge which they also benefit from.

This is because we are not making much progress and the more reason we have some of these agitations which was what led to the holistic preparation of the PIB that we are still hoping will see the light of the day. I think we need to put more collaborative efforts in place in the universities and the oil and gas industry. For example, there is nothing wrong in the University of Ibadan having a project sponsored by chevron and they put in about 10 PhD candidates to sit on those projects while chevron is relying on the work. They pump money into those projects and they are getting results which are also advancing education and they are getting result. This is the kind of collaboration we really want to see. But as at today, we are not seeing too much of that.

This is because if you improve technology, a lot of things will be easy for the oil company. There is a lot of benefit in inter agency collaboration. This is to forestall duplication of efforts. OGR: Earlier, a speaker in one of the sessions advocated for a clear cut job description for the boards and agencies of government to forestall duplicity of functions, what’s your take? Afe: I subscribe to that because as at now, the PTDF is involved in training and the NCDMB is also involved in training. In fact they can even be sponsoring the same project in the same university. But if we know that research and development is essentially for Petroleum Training Institute in Warri, Scholarship is for PTDF and training is for Nigerian Content Development and Monitoring Board, (NCDMB), it will make everyone focused. There’s a lot of benefit in that.

OGR: So, what are some of the collaborative efforts you suggest for government to take?

Afe: Government is to ensure that you have an enabling environment for every operation to be useful. Chevron cannot collaborate with the University of Ibadan if the environment for chevron to do their business is not there. There should be some tax concession to companies that are sponsoring research in universities. There should be some form of tax holiday. For instance in developed nations, if you sponsor anything charity, what they do is that the money is tax free. It encourages you to do more because you know that you will get some of the things that you are doing tax-free. An enabling environment is a key and the government should be able to provide it. OGR: What is OGTAN doing in terms of ensuring the success of the collaboration? Afe: Recently, we had an event that we call education summit where we brought stakeholders together. Some of these things we can start by talking. We have a communiqué we have developed which we are giving to government, ministry of education and everyone concerned. We are having technical business meetings. We are creating platforms for people to be able to express themselves.

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TOP STORY

Issue 3 2018 www.oilandgasrepublic.com

By Ndubuisi Micheal Obineme

il and gas was first discovered in the North Sea in December 1969, when Phillips Petroleum discovered oil in Chalk of Danian age at Ekofisk, in Norwegian waters in the central North Sea. Recent statistic report shows that there were about 184 offshore rigs in the North Sea. The North Sea and the Gulf of Mexico (United States) are home to many offshore rigs, totaling 184 rigs and 175 rigs, respectively as of January 2018. This article explores some of the deep sea projects and business opportunities in the North Sea, covering major Exploration & Production (E&P) Companies operating in the region. In the Norwegian petroleum industry, The Petroleum Safety Authority Norway (PSA) is the regulator that supervise and responsible for the safety, emergency preparedness and the working environment in Norwegian petroleum activities offshore and on land. PSA’s supervisory responsibility embraces oil and gas activities on the whole Norwegian continental shelf (NCS), at eight facilities on land, and with associated pipeline systems. PSA covers operators, licensees, contractors and vessel owners, and the whole petroleum-industry life cycle from exploration drilling, development and operation to cessation and removal. It supervises that the companies operate prudently at all times and applies its enforcement notices if they fail to do so.

In addition, PSA is authorised to take administrative decisions in the form of consents, orders, coercive fines, shutting down operations, prohibitions, exemptions and so forth. The PSA is also a directorate. In Norway’s system of government administration, these bodies develop, manage and communicate knowledge about their area of responsibility. In a nutshell, PSA is both guidedog and watchdog for the industry – with the first of these roles related to the continuous dialogue it maintains with the industry. In recent times, PSA has issued exploration & drilling licenses to E&P companies operating in the NCS. Some of the companies includes; Faroe Petroleum, Equinor, ExxonMobil, Eni Norge and much more... In July 2018, Petroleum Safety Authority Norway (PSA) gave Eni Norge consent to use Floatel Endurance on the Goliat field. Due to the work on the Goliat field, Eni requires more cabin capacity, and has therefore applied to the PSA for consent to use the Floatel Endurance mobile accommodation facility as a floatel. Floatel Endurance will be dynamically positioned and linked to the Goliat facility by a telescopic footbridge. The consent applies for the period 20 August to 5 November 2018.

Floatel Endurance is a semi-submersible accommodation facility delivered by the Keppel FELS yard in Singapore in 2015. It is owned and will be operated by Floatel International AB of Sweden. In the same month, PSA gave Equinor consent to use a facility to supply power from onshore to the Johan Sverdrup field. Electrical power will be obtained from the onshore grid and converted to DC at a transformer station at Haugsneset close to the Kårstø facility in Rogaland. From here, a submarine cable will carry it through the Boknafjord, over the Norwegian Trench and out into the North Sea to the riser platform on the Johan Sverdrup field, where it will be converted to AC. Equinor is the operator of the Johan Sverdrup field, which is in the North Sea around 155 kilometres west of Karmøy in Rogaland county. The field is in development and production is planned to start in 2019. PSA have also granted Equinor the license to use the Martin Linge B facility. The Martin Linge field is in the North Sea, close to the UK sector, 42 kilometres west of the Oseberg field. Water depth in the area is 115 metres. Martin Linge was proven in 1978, and the plan for development and operation (PDO) was approved in 2012. Martin Linge is in development, with Equinor as the operator.

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The development concept is a fully integrated production facility with a steel jacket – Martin Linge A, and a floating oil storage and offloading unit (FSO) – Martin Linge B. In August 2018, Faroe Petroleum received consent for exploration drilling in the North Sea. The license was issued by The Petroleum Safety Authority Norway (PSA). Faroe Petroleum is now the operator for production licence 825 in the North Sea. PSA have given the company consent to drill exploration well 30/6-30 Rungne. Drilling is scheduled to begin in October 2018 and last around 44 days, depending on whether a discovery is made. The geographical coordinates of the drill site will be: 60° 43' 23.253? N, 02° 43' 12.554? E The well is to be drilled by Transocean Arctic, which is a semi-submersible drilling facility of the Marosso 56 type, built by Mitsubishi Heavy Industries in Japan in 1987. It is classified by DNV GL and registered in the Marshall Islands. The facility is operated by Transocean Ltd and received Acknowledgement of Compliance (AoC) from the PSA in June 2004. In January 2018, Aker Solutions was awarded contracts from Statoil which is now Equinor to provide subsea production systems and services for the Troll Phase 3 and Askeladd natural-gas developments offshore Norway. Aker Solutions is a global provider of products, systems and services to the oil and gas industry. Its engineering, design and technology bring discoveries into production and maximize recovery. The company will deliver a subsea production system consisting of two manifolds and nine trees for the Troll development in the North Sea. The system for Askeladd in the Barents Sea will be comprised of two manifolds and four trees. Both orders include installation and commissioning support services. The contracts have a total estimated value of between NOK 1.5-2 billion kroner and will be booked in the first quarter. Work starts this month, with final deliveries scheduled for 2020.

In May 2018, Aker Solutions secured a contract valued at over NOK 1 billion from Equinor to deliver a module for the Troll A platform that will help increase output at one of Norway’s largest natural gas fields. The engineering, procurement, construction and installation (EPCI) contract is the company’s latest award for work at phase 3 of the Troll development. Aker Solutions in January won work to provide the subsea production system and services for the field. Integrating the company’s capabilities in both subsea and topside installations can help optimize the development and lower costs. “We’re delighted to extend our work at Troll, a field that will help maintain Norway as a major gas exporter for decades to come,” said Aker Solutions’ Chief Executive Officer Luis Araujo. “Working on these two significant sections of the development allows us to bring efficiencies across the project,” he added. The EPCI work for the module is an option on the front-end engineering and design work Aker Solutions won in September 2017. The module will receive and process gas from the Troll West field, before it is piped to the onshore Kollsnes gas processing facility near Bergen, Norway.

First gas is expected from the phase three project in the second quarter of 2021. Oil on the Troll field is found in thin oil columns and efficient recovery has required innovative solutions and technology. The result proves that the effort pays off: In fact, Troll B has soon produced three times more than the expected volume stated in the plan for development and operation (PDO). Troll B has produced one billion barrels of oil equivalent since it came on stream on 19th September 1995. Troll B and C combined have been the largest oil producer on the Norwegian continental shelf for the last three years. When Troll B came on stream in 1995, nine oil wells and one gas injector had been pre-drilled. For more than 21 years the platform has delivered high oil volumes with excellent regularity. The average daily oil production has been 20,600 cubic metres. In 2016 the average will be 12,000 cubic metres per day, an impressive rate for a 21-year-old “oil lady”. Based on the average oil price for the years in production, one billion barrels of oil from Troll B has given a revenue of NOK 268 billion. Around 200 of these billions have been channelled back to the Norwegian state through direct ownership and taxes – almost 75%.

“We look forward to working with Statoil on these fields, which are key to further developing Norway as a major gas supplier,” said Aker Solutions Chief Executive Officer Luis Araujo. “We expect to generate significant synergies by building on our work on another major ongoing Statoil project, the delivery of the subsea production system for the Johan Castberg field in the Barents Sea.”

The Troll field, located about 65 kilometers west of Kollsnes, contains about 40 percent of Norway’s offshore gas reserves. Production from the field is expected to continue beyond 2050.

“The combined oil and gas produced from the Troll field so far represent values worth NOK 1300 billion. After 20 years of production Troll will probably be the highest oil producing field on the NCS for the fourth year in a row. Troll B is delivering high regularity and good HSE results, and this is the result of dedicated employees doing a fantastic job every day, both offshore and onshore,” says Lars Høier, vice president of Troll operations.

Work on the two systems will involve facilities in Norway, Brazil, the UK and Malaysia. Initial deliveries are scheduled for the second quarter of 2019. Aker Solutions’ facilities in Ågotnes on the west coast of Norway and Hammerfest, located on the country’s northern tip, will provide the subsea services for Troll and Askeladd.

Troll oil and gas field is located 60km west of Sognefjorden in the Norwegian North Sea, at a water depth of 300m. It is the biggest oil-producing field within the continental shelf of Norway. Operator Equinor currently holds 30.58% ownership of the field, while the remaining stake is held by Petoro (56%), Norske Shell (8.10%), Total E&P Norge (3.69%) and ConocoPhillips Skandinavia (1.62%).

During the past years Troll B has had a “flat” production profile thanks to an efficient and active drilling programme as well as technology development and implementation. We still forecast another 8-10 years of oil production on the platform. In 2015 a new record was set when a distance of 145,000 metres were drilled in the reservoir. The budget aims for start-up of 15 new wells in 2016.

At peak the contract will provide work for as many as 500 employees in Bergen, Egersund and offshore Norway and in Mumbai, India. The contract will be booked in the second quarter.

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The Troll field is divided into three main areas: 1) Troll East contains two thirds of the gas reserves on Troll, in addition to hosting the Troll A and Troll-Oseberg gas injection project (TOGI). 2) Troll Oil Gas Province contains one third of the Troll gas reserves as well as a 13metre thin oil layer. 3) Troll Oil Province mainly contains oil.

According to Wood Mackenzie's report, there will be high level activities on NCS in 2018 and beyond. There will also be an upturn in investments in 2019. In the first quarter of 2018, The Norwegian Ministry of Petroleum and Energy awarded five new licenses to German based company, DEA in this year’s APA round. Awards in Predefined Areas is the annual licensing round for award of licences in mature areas on the Norwegian Continental Shelf, with known geology and good infrastructure. The APA system was established in 2003. This year, the Norwegian Ministry of Petroleum and Energy is offering shares in 75 new production licences.

The Troll Oil development was originally based on production from the oil province with potential to cover future production from the gas province. Troll B is currently producing oil from the whole oil province and parts of Troll Oil Gas Province.

DEA has been involved in some of the most important recent discoveries on the NCS, and has grown into a key player in the industry. Hans-Hermann Andreae, Managing Director of DEA in Norway believes the awarded areas will strengthen the DEA license portfolio further.

Troll B is located east of the oil province, around 100 kilometres west of Bergen and around 50 kilometres from the Oseberg field centre. The distance between Troll A and Troll B is approximately 20 kilometres. Business opportunities are on the up on the Norwegian Continental Shelf (NCS). An impressive NOK 90 billion of new projects are added to the NCS portfolio annually in 2017 and 2018. Norwegian Petroleum Directorate (NPD) recently published a report that expected recoverable resources for the eastern part of Barents Sea North are estimated at 1.37 billion standard cubic metres of oil equivalent (scm oe). Out of this, 825 million scm oe is expected to be fluids and 545 billion scm oe gas. NPD published another report which shows that less than half the resources on the NCS have been produced. It further points out that there are at present 77 discoveries on the NCS being considered for development, the resources in which amount to 700 million scm oe. The report further claims an additional 850 million scm oe can be produced through increased oil recovery measures. A new study by Wood Mackenzie on what to expect from the Norwegian Continental Shelf (NCS) in the coming years shows that there will be massive investment in the Norwegian oil & gas industry.

Malcolm Dickson, Research Director at Wood Mackenzie Malcolm Dickson, Research Director at Wood Mackenzie said: “We expect US$ 80 billion to be invested over the next 5 years in Norway which ranks it 6th globally – the same position it occupied for investment during the preceding 5 years. “In terms of FIDs (Final Investment Decision), Norway continued to sanction projects at a similar rate to before the oil price drop. This is testament to exploration success over the last decade and the level of cost reductions that have been achieved so far. “The outlook is similarly optimistic, and we expect 20 projects to get the greenlight over the next 5 years,” Malcolm added. Wood Mackenzie's analysis shows that the NCS market is picking up and it is the most important offshore market in Europe, a market with a projected Capex of some NOK 154 billion in 2017 and NOK 144 billion in 2018, Statistics Norway (SSB) states *2).

DEA’s Exploration Manager Svend Erik Pettersson said: “We got the areas that we ranked as most interesting. Although the areas are mature, we see great potential. Throughout our 40 years on the Norwegian Continental Shelf (NCS), we have built knowledge and expertise, and that, in combination with technology, gives us the capability to seek out new possibilities.” Hans-Hermann Andreae, Managing Director of DEA said: “We are pleased to see that the Norwegian government acknowledge our commitment to further search for and develop new business on the NCS. With the new areas, DEA will continue to grow in line with our overall business strategy.” DEA has a solid and promising license portfolio in Norway consisting of assets in all main phases, in every region of the Norwegian Continental Shelf (NCS). At present, DEA has shares in 54 licenses on the NCS. The following licences were awarded to DEA: North Sea: PL 929, DEA share 20%, PL 153C, DEA share 8% Norwegian Sea: PL 832B, DEA share 15%, PL 937, DEA share 30% Barents Sea: PL 533B, DEA share 30%

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our growth ambitions in Norway.” Spirit Energy is gearing up the exploration activity on the Norwegian Shelf in 2018, and plans to drill four exploration wells during the current year. Mr Meland said: “We have a strong exploration track record and will continue to explore for new oil and gas resources. New licences are important for us to continue to create value.”

n June 2018, Royal Dutch Shell plc, through its affiliate A/S Norske Shell, has reached an agreement with OKEA AS to sell its entire 44.56% interest in Draugen and 12.00% interest in Gjøa in Norway for $556* million (NOK 4,520 million). The transaction is subject to regulatory approval and is expected to complete in Q4 2018. The transaction’s expected effective date is 1 January 2018. Upon completion OKEA will become the new operator of Draugen. The decommissioning costs associated with the assets are currently estimated to be $120 million after-tax (NOK 1,000 million); Shell will retain 80% of this liability up to an agreed cap and OKEA will assume the remaining liability. From left to right: Morten Eriksrud, Managing director, ASN, Eric Bouvart, Director oil & gas – Sales & marketing, ASN, Geir Bjaanes, head of subsea power and pipelines – Johan Sverdrup, and Sølve Grude, head of procurement – Johan Sverdrup. (Photo: Håkon F. Nordang, Statoil.)

n the same first quater of 2018, Statoil awards a contract to Alcatel Submarine Networks for Permanent reservoir monitoring (PRM) on the Johan Sverdrup field. The seismic technology – a potential digital enabler for the field – will be a key contributor to delivering on Johan Sverdrup’s 70 percent recovery ambition. Kjetel Digre, Project Director for Johan Sverdrup disclosed that Johan Sverdrup will make up a significant part of Norwegian oil production going forward and has a lifespan of over 50 years. PRM plays an important role in this, and they will be a key tool in realizing the 70% recovery ambition on Johan Sverdrup. With 380 kilometers of fiber optic seismic cables installed on the seabed and more than 6500 acoustic sensors covering an area of more than 120 square kilometers, Johan Sverdrup will have one of the largest fiber optic seismic systems of its kind. For the first time on any field on the Norwegian continental shelf (NCS), the seismic technology will be in place ready to optimize production in time for start-up. The seismic cables will be installed on the seabed of Johan Sverdrup during 2019. With PRM, seismic sensors are permanently embedded into the seabed which enables more frequent and much improved seismic images of changes in the reservoir. The system on Johan Sverdrup will use optical fiber technology which allows for continuous recording of changes in the subsurface.

analytics,” says Eli Eikje, head of Petroleum technology for Johan Sverdrup. “This should give us improved precision in our well locations, help us better control production and injection, but should also contribute with information about the condition of wells and subsea infrastructure – which is critical for a field with a 50-year lifespan,” continues Eikje. With a recovery ambition of 70%, Johan Sverdrup will become one of the fields in the world with the highest recovery factor. Statistics from the Norwegian Petroleum Directorate shows that average recovery from the NCS is at 46%. “The NCS is world leading in terms of resource recovery. Johan Sverdrup is drawing on the experiences of giants like Statfjord, Gullfaks, Oseberg, Snorre og Troll. And PRM will lay the foundation for future recovery initiatives such as infill wells, water and gas injection, but also in the area of digitalization,” says Digre. The frame agreement with Alcatel Submarine Networks also includes opportunities for future collaboration around technology development and solutions to further maximize the potential from the PRM system. The frame agreement also includes an option to extend seismic coverage to include the southernmost part of the Johan Sverdrup field. The decision to install PRM at Johan Sverdrup meets an authority requirement set in the Plan for Development and Operation (PDO).

The significant data generated by this system is considered a key input to enable Statoil to deliver on its digital roadmap for the field.

In the same January 2018, Spirit Energy received 11 New licences in Predefined Areas (APA) round on the Norwegian Continental Shelf. Spirit will operate three of the licences awarded in the latest round, which marks the highest number of licences ever won in an APA round by Spirit.

“We see great potential with PRM on Johan Sverdrup in terms of improved visualization, modelling and eventually also predictive

Spirit Energy Exploration Director Steinar Meland said: “This is a great outcome and adds to our diversified exploration portfolio, designed to support

The Shell share of the assets’ production amounted to approximately 25 kboe/d in 2017, representing about 14% of Shell’s Norwegian production in 2017. “This deal is part of Shell’s global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio”, said Andy Brown, Shell’s Upstream Director. “Shell has a long and proud history in Norway. We continue to have strategic, long-term positions in Troll and Ormen Lange and are actively seeking new growth opportunities.” On completion, Draugen staff onshore and offshore are expected to transfer to OKEA with full continuity of service. “We are pleased to have found a buyer with an experienced leadership team and with a business strategy that aligns very well with the opportunities offered by Draugen and Gjøa” said Rich Denny, Managing Director of A/S Norske Shell. “We are happy that OKEA’s ambition is to uphold and strengthen Draugen’s footprint in mid-Norway. They will also be welcoming transferring staff in Kristiansund and Stavanger in order to leverage their substantial experience and competence for the safe and efficient operation of Draugen in the future. This deal is a good strategic move for both companies. Draugen has been a defining asset for Shell in Norway, and we are confident it will prove to be similarly important to OKEA as a springboard in further developing their operating capabilities on the Norwegian Continental Shelf.“ Shell remains committed to Norway, operating Ormen Lange and Knarr and partnering in Troll, Valemon and Kvitebjørn. In addition, Shell is drilling two exploration wells on the Norwegian continental shelf this year. A/S Norske Shell continues to be the Technical Service Provider of the Nyhamna Gas Processing Plant, and partner in the Norwegian full-scale CCS project and CCS test facility at Mongstad.

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n the North Sea, Shell made a final investment decision (FID) on the redevelopment of the Penguins oil and gas field in the UK North Sea. The decision authorizes the construction of a floating production, storage and offloading (FPSO) vessel, the first new manned installation for Shell in the northern North Sea in almost 30 years. The redevelopment is an attractive opportunity with a competitive go-forward break-even price below $40 per barrel. The FPSO is expected to have a peak production (100%) of circa 45,000 boe/d. “Penguins demonstrates the importance of Shell’s North Sea assets to the company’s upstream portfolio,” said Andy Brown, Upstream Director. “It is another example of how we are unlocking development opportunities, with lower costs, in support of Shell’s transformation into a world class investment case.” The Penguins field currently processes oil and gas using four existing drill centres tied back to the Brent Charlie platform. The redevelopment of the field, required when Brent Charlie ceases production will see an additional eight wells drilled, which will be tied back to the new FPSO vessel. Natural gas will be exported through the tie-in of existing subsea facilities and additional pipeline infrastructure. Steve Phimister, Vice President for Upstream in the UK and Ireland said: “Shell has had a strong presence in this part of the northern North Sea for more than forty years. Having reshaped our portfolio over the last twelve months, we now plan to grow our North Sea production through our core production assets. In doing so, we will continue to work with the UK government, our partners and the regulator to maximise the economic recovery in one of Shell’s heartlands.” The Penguins field is in 165 metres (541 feet) of water, approximately 150 miles north east of the Shetland Islands. Discovered in 1974, the field was first developed in 2002 and is a joint venture between Shell (50% and operator) and ExxonMobil (50%). A joint venture-owned/Shell-operated Sevan 400 FPSO has been selected as the development option for the field. Oil will be transported via tanker to refineries and gas will be transported via the FLAGS pipeline to the St Fergus gas terminal in north-east Scotland. Petrofac have also secured key North Sea contract from Chevron. Petrofac’s Engineering and Production Services (EPS) division was awarded a new Offshore Manning Services contract by Chevron North Sea Limited. The three-year award, will involve the provision of Operations, Maintenance and Construction personnel across five of Chevron’s North Sea assets – the Captain Wellhead Protector Platform, Captain Floating Production Storage and Offloading vessel, Alba North platform, Alba Floating Storage Unit and the Erskine platform. Around 85 personnel currently supporting these assets will transfer to Petrofac from multiple organisations at the end of a transition period.

The contract builds upon Petrofac’s existing relationship with Chevron in the UKCS where it currently provides Engineering and Construction Services. As part of this new scope, Petrofac will support and deploy offshore personnel via its dedicated 24/7 Operations Hub, through which all of its labour supply contracts are managed. The Hub offers the flexibility of shared resources across contracts, enabling fluctuating client requirements to be managed in a flexible, cost-effective way. Dave Blackburn, Senior Vice President, EPS West, said: “We are delighted to have secured this new scope with Chevron in support of its North Sea business. Our offshore labour supply expertise is strong and assured. This award is testament to our ability to provide a tailored, scalable approach to manning services, in pursuit of efficiency. “We look forward to deploying our expertise and working collaboratively with Chevron and our new team members to effect a safe and seamless transition to operations across these five assets.” Spirit Energy, one of the top independent oil and gas operators in Europe, is extending the life of one of its key North Sea fields by tapping into new reserves in 2018. Spirit Energy will drill a new well at the Chiswick field in the Southern North Sea to bring around a further 50 billion cubic feet of gas on stream. The new well, which represents a £75million investment from Spirit Energy, will be drilled by Noble’s Hans Deul jack-up rig, one of five rigs Spirit Energy has on hire in 2018 – accounting for 10% of the active rig market in Europe. The Chiswick field is part of Spirit Energy’s Greater Markham Area, which also includes the Markham,

Grove and Kew fields. Combined, the Greater Markham Area fields produced 23 billion cubic feet of gas net to Spirit in 2017. Fraser Weir, North Sea Director at Spirit Energy, said: “Having already produced billions of cubic feet of gas since coming on stream 11 years ago, we are delighted that the hard work and collaboration of our teams in both the UK and the Netherlands has led to us continuing our investment in the Chiswick field and extending the life of a key part of our portfolio. “This is just one part of a busy rig programme for Spirit Energy in Europe this year, as we explore for fresh discoveries, maximise the potential of existing fields and plug wells which have ceased production.” The infill well at Chiswick, which first came on stream in 2007, will be the fifth well drilled in the field, and the first since 2010. The Hans Deul started preparatory work at Chiswick in April. In terms of new discoveries, BP has made two new exploration discoveries in the North Sea. The discoveries are Capercaillie, in Block 29/4e in the Central North Sea, and Achmelvich, in Block 206/9b west of Shetland. BP is 100% owner of Capercaillie and the Achmelvich well partnership comprises BP (operator, 52.6%), Shell (28%) and Chevron (19.4%). Both wells were drilled by the Paul B Loyd Junior rig in Summer 2017. The Capercaillie well was drilled to a total depth of 3,750 metres and encountered light oil and gascondensate in Paleocene and Cretaceous-age reservoirs. The well data is currently under evaluation. Options are expected to be considered for a possible tie-back development to existing infrastructure. The Achmelvich well was drilled to a total depth of 2,395 metres and encountered oil in Mesozoic-age reservoirs. Evaluation and interpretation of the well results is ongoing to assess future options.

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“Johan Sverdrup has in many ways become known for its focus on continuous improvement, also in terms of our focus on reducing our climate footprint and finding more environmentally sustainable solutions. As soon as power from shore became part of the Johan Sverdrup development concept, we’ve worked hard with our partners and suppliers to capture the full potential of this solution,” says Trond Bokn, senior vice president for the Johan Sverdrup development. “Another important benefit of power from shore is that the working environment for the almost 900 workers offshore also improves significantly. Noise offshore is significantly reduced as are local emissions, so it is a winwin all around,” says Bokn. In phase 1 of the Johan Sverdrup development the power-from-shore solution has a capacity of 100 MW, based on a production capacity of up to 440,000 barrels per day. The Norwegian Minister of Petroleum and Energy, Kjell-Børge Freiberg, officially opened the power-from-shore solution to Johan Sverdrup. (Photo: Ole Jørgen Bratland / Equinor ASA)

Mark Thomas, BP North Sea Regional President said: “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050. “We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business, sitting alongside major developments like Quad 204, which came onstream in 2017, Clair Ridge, due to come into production this year, and the non-operated Culzean field, expected to start-up in 2019.” According report, quieter offshore construction will commence in the North Sea by 2019. Construction will get underway in the North Sea of offshore wind generators using a new method that will create less noise during the construction period. The Canadian energy concern Northland Power is building the windpark “Deutsche Bucht” with 31 generators 95 kilometres north of the North Sea island of Borkum. The company said it will construct two additional windmills using the socalled “suction buckets” method. In this case, instead of the foundations being hammered into the seabed, their own weight and low air pressure help them to dig as deep as 18 metres below the seabed. This reduces the noise pollution which porpoises, seals, fish and other marine animals usually suffer during the offshore construction. Noise-reducing foundations for offshore windpower generators are to help protect porpoises and other marine animals. ecently, The Norwegian Minister of Petroleum and Energy, Kjell-Børge Freiberg, officially opened the powerfrom-shore solution which will provide the Johan Sverdrup field in the North Sea with electricity for more than 50 years. Power from shore makes Johan Sverdrup one of the most carbon-efficient fields worldwide. The giant development in the North Sea has been through the busiest installation campaign ever for a field in the North Sea. Today Johan Sverdrup reached another milestone, when power

from shore was officially switched on about a year before production start-up. With electric power supplied from shore Johan Sverdrup operations can be run without the use of fossil fuels, which makes it one of the most carbon-efficient fields worldwide. The Minister of Petroleum and Energy, Kjell-Børge Freiberg, had the honours of switching off the temporary generators which had supplied the field with electricity during the first months of the installation campaign offshore. And after the four generators had quietened down, the milestone was celebrated in the traditional offshore style with coffee and cake. “This is an important day for Equinor and the Johan Sverdrup partners, so it is a great honour to get help from none other than the Minister with this final task to fully operationalise the power-from-shore solution,” says Jez Averty, senior vice president for operations in the south of the North Sea. “With estimated resources of up to 3,2 billion barrels, and a production horizon of more than 50 years, it is key that Johan Sverdrup production is as effective as possible with the lowest possible emissions. Low carbon production is a key element of the company’s strategy and fully aligned with our roadmaps for climate and for the Norwegian continental shelf,” says Averty. Johan Sverdrup full-field production is estimated to reach 660,000 barrels of oil per day at plateau, with a break-even of less than 20 dollars per barrel, and with CO2 emissions of only 0.67 kg per barrel. Power from shore to Johan Sverdrup will help reduce emissions by an estimated 460,000 tonnes of CO2 per year, equivalent to the emissions of 230,000 private cars each year. Working closely with partners and suppliers, Equinor has taken initiatives to enable the supply of power from shore already in the commissioning phase offshore. With several energy intensive operations planned prior to production start-up – including the tieback of the eight predrilled production wells – the early supply of electricity from shore helps further reduce the carbon footprint of the project. The Johan Sverdrup partnership has also, in collaboration with the supplier Master Marine, taken steps to ensure that the temporary accommodation rig Haven – where most of the offshore workers currently live – is also supplied with power from shore during the remainder of the project finalization stage.

Several suppliers across several countries, both onshore and offshore, have been involved in developing and delivering the chosen solution for power from shore to Johan Sverdrup phase 1. “While this is primarily known technology, the size of Johan Sverdrup increases the complexity of this. Seamless collaboration across the project has been key to the success of Johan Sverdrup so far – also as regards power from shore,” says Bokn. ABB delivered the HVDC equipment for the two converter stations, onshore at Haugsneset close to Kårstø and offshore at the Johan Sverdrup field centre. First, at Haugsneset, the electric current is converted from alternating current (AC) to direct current (DC), enabling the transmission of electricity for 200 km offshore, while minimizing loss. Then, offshore, the electric current is converted back to the alternating current needed to run the field centre equipment. Aibel was responsible for all construction related to the onshore converter station at Haugsneset. Aker Solutions was responsible for the engineering and Samsung Heavy Industries built the riser platform including the converter module where the HVDC equipment is placed offshore. And NKT was responsible for fabrication and installation of the 200 km power cables from Haugsneset out to the Johan Sverdrup field centre offshore. In Johan Sverdrup phase 2, with start-up expected in Q4 2022, the power from shore capacity will be expanded with 200 MW, giving a total capacity of 300 MW. This enables Johan Sverdrup to facilitate access to power from shore to the other fields at Utsira High – Edvard Grieg, Gina Krog og Ivar Aasen. The expanded power capacity will also be needed for the added Johan Sverdrup production capacity of 220,000 barrels per day, and the total full field production capacity of 660,000 barrels daily. Project activities in the North Sea is booming and E&P companies are key industry players in the oil & gas value chain. Some of the Plans for Development and Operation (PDOs) expected in 2018 includes; Troll Future (AKA Phase III), Askeladd (AKA Snøhvit Future), Eirin, Skarfjell, Krafla, Johan Sverdrup Phase 2. There have been new exploration discoveries and offshore projects going on in the North Sea. In 2019 it will still increase making the region open for new business.

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Norway’s largest oil pipeline now in place in the North Sea the pipeline was laid through the Fensfjord before the vessel set course for the Johan Sverdrup field. The operations have been executed with high quality and no serious incidents. With the oil pipeline installed Saipem Castorone is now getting ready for the next stage – laying the 156 km long gas pipeline that will extend from the Johan Sverdrup field to the Statpipe pipeline, from where gas from the field will eventually be shipped to Kårstø. The pipeline installation operations are expected to be completed during the autumn. “We have spent many years with Saipem planning these operations. We’re all very aware of the size of the task, with several months at sea with a significant installation scope. The key is to follow the thorough plans that we’ve prepared and maintain our significant focus on HSE along the way, until also the gas pipeline is in place,” says Tor Kåre Egelandsdal, responsible for the pipeline installation and the contract with Saipem. orway’s largest and longest pipeline has been laid by the vessel Saipem Castorone, reached the Johan Sverdrup field in the North Sea.

The last pipe of what is now Norway’s longest and largest oil pipeline was installed right next to the riser platform at the Johan Sverdrup field. The 36-inch pipeline extends 283 km from the Mongstad oil terminal outside Bergen to the giant field in the North Sea. “We have together with our supplier Saipem succeeded in laying the oil pipeline to Johan Sverdrup without any serious incidents. It has been a

significant operation, involving more than 600 people at the most, who have welded together over 23,000 pipes to create what has now become Norway’s largest and longest oil pipeline,” says Geir Bjaanes, responsible for subsea, power and pipelines for the Johan Sverdrup project. “The oil pipeline plays a really central role in the project. When the Johan Sverdrup field produces at peak, 660,000 barrels of oil valued at more than NOK 350 million each day, will flow daily into Mongstad,” says Bjaanes. The vessel Saipem Castorone began pipelaying operations at Mongstad in late April this year. After,

When the pipeline operations are complete, the 2018 Johan Sverdrup installation campaign will be over. With three jackets, two topsides, one bridge, over 400 km of pipelines, and 200 km of power cables, the 2018 campaign is probably the busiest installation campaign ever for a project on the Norwegian continental shelf. And in 2019 the last two topsides and remaining bridges will be put in place before startup of the first phase of the Johan Sverdrup development expected in November next year.

Rystad Energy launches new OilMarketCube ystad Energy has launched a new OilMarketCube, a comprehensive, monthly, field-by-field database for global field production of oil. The OilMarketCube provides a complete, monthly, and field-by-field production overview for oil analysts globally. It is an ideal solution for analysts who need the best granular data available on oil supply.

OilMarketCube is a highly granular database with production overviews at a global and fieldlevel perspective. The tool allows users to obtain monthly production analysis with historical overview and future projections. Providing a short-term forecast, the OilMarketCube accounts for the effects of outages, seasonality, and policy decisions on field production. Our five-year, complete global production forecast allows users to assess the

data across multiple dimensions, including country, supply segment, life cycle, and many others.

inventories, field outages and relevant market topics.

OilMarketCube comes with a user-friendly graphical interface, Cube Browser, enabling fast filtering, extraction and display of data. Data feed delivery options are available for those who prefer to work with the data in other software.

With the OilMarketCube, you will also obtain quick and efficient analysis of short-term monthly supply trends, acquire a comprehensive view of the current facts and future projections globally, at the field, operator, and country-level, get complete global medium-term supply-demand analysis along multiple dimensions, make informed trading and investment decisions, direct and easy access to Rystad Energy’s senior oil markets.

The features includes; Short-term field production forecast including effects of outages, seasonality, and policy decisions, historical global production coverage from the year 2013, five-year, mediumterm oil production forecast, overview of marketmoving fundamentals: demand, supply, field outages, balances, inventories and positioning of traders, detailed coverage of the upstream trends: field start-ups, exploration, field decline, reserves and cost-of-supply, weekly commentaries on DOE

And it is very ideal for paper traders (funds, investors), market analysts at E&P companies, oil trading houses and trading arms at E&Ps, downstream players, midstream companies, oil storage and logistics, corporates (hedgers – buyers and seller of oil products).

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Jesper Ridder Olsen appointed as new CFO of Maersk Drilling

esper Ridder Olsen has been appointed as new CFO of Maersk Drilling. The appointment follows A.P. Moller – Maersk’s intention to pursue a demerger of Maersk Drilling via a listing on Nasdaq Copenhagen in 2019. With a long career in KPMG and Ernst & Young, Jesper Ridder Olsen has been involved in a number of capital market transactions, including IPOs, in addition to serving as auditor and advisor for large Danish companies, such as A.P. Moller – Maersk, ISS, Carlsberg and Danske Bank. As member of the Nordic Leadership in Ernst & Young from 2014 to 2016, Jesper Ridder Olsen was responsible for Strategic Growth Markets comprising among others Nordic IPO services. “Jesper brings with him in-depth knowledge of Maersk Drilling and more than 25 years of experience, combined with the wide-ranging strategic and practical competences needed, as we prepare for becoming a separately listed company. With Jesper on board, the Maersk Drilling management team is well prepared to separate and demerge from A.P. Moller – Maersk,” says CEO in Maersk Drilling, Jørn Madsen. Jesper Ridder Olsen joined A.P. Moller – Maersk in November 2017 as Head of

Jesper Ridder Olsen

Accounting, Control & Tax. Jesper served as A.P. Moller – Maersk’s external auditor from 2001 until 2013 and as signing partner from 2006 to 2013, where he was also responsible for the audit of Maersk Drilling. Jesper Ridder Olsen has over the years also been involved as advisor on several of A.P. Moller – Maersk’s large transactions, latest the acquisition of Hamburg Süd in 2017.

Maersk to pursue a separate listing of Maersk Drilling on Nasdaq Copenhagen in 2019

.P. Moller – Maersk has decided to pursue a demerger via a separate listing of Maersk Drilling on Nasdaq Copenhagen in 2019. Having evaluated the different options available for Maersk Drilling, A.P. Moller – Maersk has concluded that listing Maersk Drilling as a standalone company presents the most optimal prospects for its shareholders, offering them the opportunity to participate in the value creation of an industry leading pure play offshore drilling company with long-term development prospects.

Maersk Drilling has a leading position within high-end harsh environment jack-ups and the modern deep-water floater segment, providing superior and safe drilling performance under some of the world’s most demanding conditions and with a unique stronghold in the North Sea, which is currently seeing a recovery in tender activity. Recognised for its collaborative and innovative business approach, as well as its young fleet, which is amongst the most sophisticated in the industry, Maersk Drilling has achieved an industry leading backlog of USD 2.7bn with long-term customer relations counting some of the world’s leading and most innovative oil and

gas companies. Maersk Drilling has a superior through-the-cycle financial profile based on best in class financials and a conservative balance sheet philosophy. In second quarter 2018, Maersk Drilling reported a revenue growth of 4.9% to USD 366m, while EBITDA increased by 2.3% to USD 159m. Competitive long-term debt financing of USD 1.5bn has been secured from a consortium of international banks to ensure a strong capital structure after a listing. “Maersk Drilling is an industry leader in the offshore market. Based on its well-reputed and safe operations and a fleet that is among the youngest and most sophisticated in the industry, Maersk Drilling has achieved one of the strongest contract backlogs in the market, as well as a superior financial profile. A separate listing will ensure that Maersk Drilling can continue to uphold and develop its unique position to the benefit of both its longterm blue-chip customer base and its investors,” says Claus V. Hemmingsen, Vice CEO of A.P. Moller – Maersk and CEO of the Energy division. Maersk Drilling will be demerged from A.P. Moller – Maersk via a separate listing, subject to A.P. Moller – Maersk maintaining investment grade rating. Listed

shares in Maersk Drilling will be distributed to A.P. Moller – Maersk shareholders pro-rata. A.P. Møller Holding has confirmed its intent to uphold a significant shareholding in a separately listed Maersk Drilling. The process to ensure Maersk Drilling is operationally and organisationally ready to stand alone and for a separate listing in 2019 has been initiated. “Maersk Drilling has the position, the people, the assets and the expertise to meet the demanding drilling requirements for a diverse group of oil and gas customers worldwide. We provide superior and safe drilling performance under some of the world’s most demanding conditions. Through innovative technologies combined with new business models, we are optimising drilling programmes, reducing overall well cost and risk, and shaping the future of offshore drilling,” says Jørn Madsen, CEO of Maersk Drilling. In a demerger, Maersk Drilling will continue to operate under the name “Maersk Drilling”, on which its global leading market position is built and recognised, using the A.P. Moller – Maersk sevenpointed star-logo as part of its brand. Further details on the separate listing will be announced at a later stage.

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Equinor taps into FutureOn’s Cloud-base Offshore Data Visualization Software

utureOn, a leading oilfield software and data visualization solutions provider, has disclosed that a new multi-license agreement has been signed with Equinor for its cloud-based software Field Activity Planner.

FutureOn, together with Equinor, will pilot FieldAP to digitalize and integrate data from existing North Sea brownfields operated by Equinor, enabling real-time engineering and cost analysis of potential tie-back opportunities. FutureOn’s easy-to-use 2D/3D data visualization platform provides a compelling user experience while integrating Equinor’s backend systems for enhanced decision making. In the early phase, the work will focus on using FieldAP to increase efficiency in concept development and selection. The ambition is to further reduce cost and select the concepts which provide the best value supported by digital tools.

FieldAP is the first global collaborative tool allowing oil and gas operators to digitally merge and visually design large volumes of offshore oilfield data in a centralized cloud platform. The tool allows rapid visualization of offshore engineering workflows, next-generation project planning to collaborate more productively, and provide greater insights into working smarter with enhanced results. “Digitalization is more than a buzzword in the oil and gas industry,” said FutureOn’s Chief Technology Officer Olav Sylthe. “Our partnership with Equinor is a testament to our software’s ability to effect meaningful change, enabling improvements in safety, security, sustainability, productivity and cost efficiency through digitalization, data integration and visualization. We look forward to being a part of the digital journey ahead with Equinor.” However, with larger volumes of oilfield data amassing daily amid intensifying pressure for higher environmental and safety performance, oil and gas companies are turning to digitalization not just for

making better sense of the data but to shake business and operations up. Norway’s Equinor sees digitalization as a critical element to boosting revenue by $2 billion, reducing offshore drilling costs by 5%, lowering future investment by 30%, improving safety, and reducing the carbon footprint of its operations, according to a June Hart Energy article Energy Companies Give Meaning to Digital Hype. To parlay digitalization into even bigger returns, Equinor, among other companies, is tapping FutureOn’s oil and gas digitalization expertise to make and see more of the data.

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Ten companies selected for Techstars Energy Accelerator in partnership with Equinor

From left: Jens Festervoll, Equinor’s Corporate Liaison, Audun Abelsnes, Techstars Managing Director, Eldar Sætre, President and CEO of Equinor and Alex Karevoll, Techstars Programme Manager at Screening Day where 20 start-ups pitched their solution.

he ten start-up companies have been selected from hundreds of applicants across 38 countries. They will seek to accelerate their development through an intensive 13-week program, tapping into a global network of experts from Equinor and Techstars as well as the partnering companies KONGSBERG and McKinsey & Company.

“We are excited and privileged to welcome these companies to the first Techstars Energy accelerator. We in Equinor are proud of our technology leadership in the energy sector. But we also recognize that the pace of innovation is speeding up. Energy sources and markets are transforming – becoming smarter, cheaper and cleaner. That is why we look forward to learning from the best, brightest and boldest to test new ideas and find new solutions to the world’s energy needs,” says Al Cook, Equinor’s executive vice president for Global Strategy & Business Development.

The selected companies represent solutions within oil and gas, new business models, digitalisation and renewables. At the end of the program in December, they will present their solutions to Equinor, the partners and other potential investors at a Demo Day. “Our Techstars partnership and the Techstars Energy Accelerator is a great match for KONGSBERG. The Accelerator’s ambition to use knowledge sharing, innovation and digitalization as means to provide new and improved solutions to the energy sector matches ours. Our great advantage is that we are able to draw on a long history of technology innovations and experience with developing digital industrial solutions to the industry. We want the smartest start-ups in the sector to benefit from that advantage too. In this way, we will build great partnerships, more synergies and opportunities for everyone involved,” says Christian Møller, CTO in Kongsberg Digital.

“This unique partnership between a leading energy company like Equinor and Techstars, together with partners KONGSBERG and McKinsey & Company, provides a great opportunity for companies that aspire to shape the future of energy. These ten startups now get the opportunity to gain traction through deep mentor engagement, rapid iteration cycles and fundraising preparation. We are excited to get started and help more entrepreneurs succeed,” says Audun Abelsnes, Managing Director for Techstars Energy. The accelerator is hosted at Equinor’s Oslo offices with access to Norway’s world-class energytechnology industry. Norway is the 8th largest exporter of oil, the 3rd largest exporter of gas in the world, and Norway itself is run on 97% renewable energy sources.

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Issue 3 2018 www.oilandgasrepublic.com

Point Resources Extends Contract with Aker Solutions

oint Resources has executed the remaining part of the option for the maintenance and modifications contract with Aker Solutions. The Engineering, Procurement and Construction. Operations and Maintenance (EPC O&M) contract between Point Resources and Aker Solutions was first signed in June 2012, covering the Jotun A, Jotun B, Balder and Ringhorne operating facilities in the North Sea. The contract extension starts at year-end and runs until June 2022. “We pride ourselves on delivering top quality services to our clients, so it’s always very gratifying when a partner extends an existing agreement. Through our ongoing work with Point Resources, our dedicated on- and offshore teams will continue to deliver great HSSE results and high-quality projects for many years to come,” said Knut Sandvik, EVP Projects at Aker Solutions. “Aker Solutions has now delivered maintenance and modifications work continuously at these offshore facilities for more than 20 years. It’s a great testament to the quality of service our teams have provided. We look forward to using our experience to help Point Resources during the coming years,” he continued.

Point Resources is a mid-sized, independent exploration and production company, built mainly on the heritage of ExxonMobil’s more than 50 years of operations on the Norwegian Continental Shelf. The order will be booked in the third quarter 2018.

Aibel to build new Johan Sverdrup power plant Equinor has awarded Aibel the contract to build phase 2 of the onshore power plant at Haugsneset east of Kårstø. The phase 2 development will contribute to secure the power supply from land to the further development of Johan Sverdrup, and also contribute to establishing the area solution for power from shore to the remaining fields on the Utsira formation (Edvard Grieg, Ivar Aasen and Gina Krog). At Haugsneset, Aibel will build a new converter substation with double the capacity compared to the plant in phase 1. The contract is valued at around NOK 500 million.

“It is both a great honour and a major vote of confidence that we are now continuing our collaboration with Equinor and will play a key part in phase 2 of Johan Sverdrup. Here we are also building the P2 process platform and are thus making important contributions to more eco-friendly operations on the Norwegian continental shelf,” says Aibel’s EVP of Field Development and Offshore Wind, Nils Arne Hatleskog. Aibel was also responsible for the converter substation and pump station and associated infrastructure at Haugsneset in phase 1. That plant will supply the four first platforms on the Johan Sverdrup field.

Just as with the first phase of the power plant at Haugsneset, the project will start at Aibel’s office in Asker. Work will gradually be moved to Haugesund for implementation of the project phase, and to Haugsneset for follow-up of construction. “By virtue of our previous work at Haugsneset and other onshore facilities, we have an extremely experienced and competent organisation, which is well-equipped to ensure proper execution and delivery,” says Aibel’s project manager Ole Kristian Halvorsen, who also headed up phase 1. The contract will be carried out in cooperation with Norconsult in Sandvika for detailed engineering of the actual building. Aibel itself is responsible for engineering of all technical disciplines, including a comprehensive ventilation system (HVAC) for cooling the converter facility. Siemens will supply the actual converter components (HVDC), while Aibel will be responsible for all other deliveries, including installation of the HVAC and HVDC facilities. Subcontractor contracts for erecting the actual building will be awarded in 2019 under Aibel’s contact with Equinor. Work starts immediately and will engage approximately 50-60 employees in the engineering phase in the first year. In the actual construction phase, which will start after the summer of 2019 at Haugsneset, around 120 Aibel employees will be involved. In addition there will be contributions from subcontractors. The completed plant will be handed over to Equinor by the end of 2021.

DIGITAL TECHNOLOGY

Issue 3 2018 I www.oilandgasrepublic.com

Schneider Electric’s Digital Solutions set to Increase Profitability and Optimise Costs for Oil & Gas Companies

chneider Electric, the foremost innovator and specialist in energy management solutions has re-affirmed its commitment to providing the industry with digital solutions for businesses that are guaranteed to enhance profitability and optimise costs. This was made known by the Oil and Gas Segment Lead, Schneider Electric, Mrs Tolulope Falola, during the Society for Petroleum Engineers/Nigerian Annual International Conference and Exhibition themed: “The role of the Oil and Gas industry in enabling diversification of Nigeria’s Economy” which held from the 6th -8th August, 2018 at Eko Hotels & Suites, Victoria Island, Lagos, Nigeria. Speaking at the workshop on Digitalization sponsored by Schneider Electric, Tolulope stated that given the recent challenges in the industry, there is a need for Oil and Gas companies to optimize costs, reduce down time and increase availability. Tolulope said Schneider Electric’s EcoStruxure platform will help the industry address these current challenges, with a range of digital solutions for asset modernization, predictive maintenance and onlineprofit advisory service.

Source: Orient Energy

“EcoStruxure is Schneider Electric’s IoT-enabled architecture and platform of connected products, edge control, applications, analytics and services that guarantees the provision of enhanced value around safety, reliability, efficiency and connectivity across segments, the Oil and Gas industry inclusive”, she stated. Tolulope further stated that several International Oil Companies in Nigeria fully equipped with Schneider Electric’s EcoStruxure solutions are already benefiting from this enhanced value. While speaking at the event, the General Manager, Process Automation, Schneider Electric, Nabil Djhouri emphasised that every organization who wants to grow must take advantage of Schneider Electric’s EcoStruxure solutions. “We deploy EcoStruxure in a tailored instance for each of the vertical end markets from Industry to Data Center, Buildings and Infrastructure, where Schneider Electric has decades of deep domain expertise and applied experience” he stated.

Nabil further encouraged Oil and Gas companies who are not presently benefiting from Schneider Electric’s digital solutions to come on board, as such an investment will result in measurable high returns. With over 170 years of history, Schneider Electric develops connected technologies and solutions to manage energy and process in ways that are safe, reliable, efficient and sustainable. The Group invests in R&D in order to sustain innovation and differentiation, with a strong commitment to sustainable development. Today, energy is at the heart of every ones concern. More than ever, the current situation compels each and everyone to achieve more while using fewer resources. Global specialist in energy management, Schneider Electric makes energy safe, reliable, efficient, productive and green.