Oil, Gas and Shipping Magazine

ISSUE 72 www.ogsmag.com

Cover Story:

BHP Billiton

A Leading Global Resources Company

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Contents

Cover Story Page 6:

BHP Billiton:

Contents

A Leading Global Resources Company

Page 12 (Feature) VersaDev Page 14 (Feature) Enefit Technology Industries- From

filter houses to subses structures Page 26 GE Oil & Gas supplies advanced turbomachinery

technology for development of ADMA-OPCO’s Umm Lulu full-field Page 27 Eni strengthens its presence in Turkmenistan Page 28 Repsol makes a significant oil discovery in the

United States’ Gulf of Mexico Page 28 INEOS moves to become biggest player in UK shale gas industry Page 31 MOL extends its upstream portfolio in the central North Sea Page 32 Indian Oil- Petroleum minister Dharmendra

Pradhan lays foundation stone for Indian Oil’s

3150 crore poly-propylene plant at Paradip Page 32 Lukoil signs protocol on cooperation with Perm territory for 2015 Page 35 ConocoPhillips Chairman and CEO Ryan Lance

urges U.S. crude oil exports Page 38 (Feature) Tullow Oil- Afica’s leading independent oil company

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Page 3 Exova Page 4 IT Vizion Page 13 VersaDev Page 29 Bohler Pacific Pte Page 30 Hart BV Page 33 Technip Page 34 FMC Technologies Page 36 C.C.Jensen Page 55 Zeal Environmental Technologies Page 56 The Heavy Lift Group Oil, Gas and Shipping 2014 Oil, Gas and Shipping Magazine is published by Worldwide Business Media Limited, London, EC1V 2NX United Kingdom. Registered No. 6809417 England/ Wales. VAT No. 972 7492 76. All rights reserved. Reproduction in whole or any part without written permission is strictly prohibited.

Liability: while every care has been taken in the preperation of this magazine, the publishers cannot be held responsible for the accuracy of the information herein, or any consequence arising from it. All paper used in this production comes from well managed sources.

Oil, Gas and Shipping Magazine Tel: +44(0)203 5751249 Sales email: info@ogsmag.com Editor email: editor@ogsmag.com

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BHP Billiton

BHP Billiton

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BHP Billiton A Leading Global Resources Company

BHP Billiton is a leading global resources company, formed from a merger between BHP and Billiton. From two small mining companies founded in the mid-1800s, BHP Billiton is now a world leader in the diversified resources industry. The company is among the world’s largest producers of major commodities including, aluminium, coal, copper, iron ore, manganese, nickel, silver and uranium, and have substantial interests in oil and gas. An unrivalled portfolio of high quality growth opportunities will ensure BHP Billiton continues to meet the changing needs of its customers and the resources demand of emerging economies at every stage of their growth. The diversification of the BHP Billiton portfolio continues to be its defining attribute.

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BHP Billiton

History Billiton’s roots trace back to 1851 and a tin mine on a little known island in Indonesia, Billiton (Belitung) island. Billiton became a global leader in the metals and mining sector and a major producer of aluminium and alumina, chrome and manganese ores and alloys, steaming coal, nickel and titanium minerals.

Billiton also developed a substantial and growing copper portfolio.

Broken Hill Proprietary’s rich history began in a silver, lead and zinc mine in Broken Hill, Australia.

Incorporated in 1885, BHP engaged in the discovery, development, production and marketing of iron ore, copper, oil and gas, diamonds, silver, lead, zinc and a range of other natural resources. BHP was also a market leader in value-added flat steel products.

BHP and Billiton merged in June 2001, becoming one of the world’s largest diversified resources businesses that is today among the world’s largest producers of major commodities, including aluminium, coal, copper, iron ore, manganese, nickel, silver and uranium, and with substantial interests in oil and gas. In 2010, BHP Billiton celebrated its 150th anniversary and three significant milestones: Billiton’s establishment on 28 October 1860, BHP’s incorporation on 13 August 1885 and BHP Billiton’s listing on the Australian and London Stock Exchanges on 29 June 2001.

Business Areas BHP Billiton’s’ aluminium business has a portfolio of assets in three stages of the primary aluminium value chain: mining bauxite, refining bauxite into alumina and smelting alumina into aluminium metal.

It is one of the world’s largest integrated producers with operations in South America, Southern Africa and Australia.

Aluminium is a widely used non-ferrous metal with demand driven by end use consumption in transportation, packaging, construction and household items.

Its nickel business is one of the world’s largest nickel miners, the fifth largest refined nickel producer and a global supplier of nickel to the stainless steel industry.

BHP Billiton has two producing assets located in Australia and Colombia. Austenitic stainless steel, or nickel-containing stainless steel, promotes a more stable and ductile structure that contributes to corrosion resistance. This product is instrumental to many industries including architecture, transport, aerospace, medical and heavy industries as well as chemical processing and energy applications.

Nickel is also an essential element in many non-stainless steel applications like specialty alloys, foundry, chemicals and refractory material industries.

The manganese business has two producing assets located in Australia and South Africa and is a world leader in the seaborne supply of manganese ore and a global producer of manganese alloy.

Manganese is an indispensable element in the manufacturing of steel, which in turn is an essential material in many industries including construction and transportation. Its use in the steel making process results in increased strength, resistance and machinability.

BHP Billiton’s globally diversified coal business produces thermal coal primarily for use in the electric power generation industry and high quality hard coking coal

for use in the international and domestic steel industry. With operations strategically located in areas with seaborne access, the business delivers logistical advantages to its customers.

BHP Billiton has access to dedicated deep-water ports allowing the use of large capacity vessels to further build on regional logistic advantages. There are eight thermal coal operations located in South Africa, Australia, the United States and South America.

In addition to seaborne supply into the Atlantic and Pacific markets, BHP Billiton services domestic markets in South Africa, Australia and the United States.

BHP Billiton

Metallurgical coal has a total of eleven operations and a further two green-fields mines under construction in Australia.

These assets produce high quality hard coking coal, which is an essential raw material in the production of steel. This high quality hard coking coal is produced from low cost asset bases in Queensland (predominantly open cut mines owned in an alliance with Mitsubishi Development Pty Ltd and Mitsui) and New South Wales (100 per cent underground operations). With long life reserves, a strong portfolio of undeveloped resources and key infrastructure, the Coal business

has the flexibility to continually expand BHP Billiton’s production capacity in line with customer needs.

BHP Billiton’s copper business has an excellent portfolio of mining operations with substantial growth opportunities and a number of expansion opportunities — both greenfield (new sites) and brownfield (developments on existing sites). This is allowing the company to expand production significantly through various projects. With a portfolio of large, low-cost mining operations — including the Escondida mine in Chile which is the world’s largest single producer

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of copper — the aim is to become the pre-eminent supplier in copper through capacity expansions, reliable supply and innovative solutions. The operations also produce uranium oxide concentrate, lead concentrates and zinc concentrates, and provide base metal concentrates to custom smelters and copper cathodes to rod and brass mills and casting plants. BHP Billiton is also focused on exploration. Its greenfield activities allow exploration of some of the most geologically prospective terrains across a wide array of countries and operating environments. Exploration activities include opportunity identification, application for and

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BHP Billiton

acquisition of mineral title, early reconnaissance operations to multimillion-dollar delineation drilling programs.

BHP Billiton Iron Ore is one of the world’s leading iron ore producers with operations in Australia and Brazil, selling lump and fine product from Australia and iron ore pellets from its Samarco operation in Brazil.

Principal iron ore operations are based in the Pilbara region of northern Western Australia. The operation comprises a complex integrated system of seven inland mining operations, more than 1,000km of rail, stockyards and two separate port facilities located in Port Hedland. These operations are owned through a number of Joint Venture arrangements. BHP Billiton Iron Ore is a 50:50 joint venture partner with Vale at the Samarco operations in Brazil. Iron ore is a major component in many modern office towers, including iconic structures around the world. It is also used extensively in motor vehicles, washing machines, refrigerators, ovens and other white goods. In pursuing ongoing growth plans, BHP Billiton Iron Ore is committed to working with its local communities to support sustainable development in the region and ensure their needs are incorporated into the company’s expansion plans.

working interest with a bias for operatorship. It also holds interests in exploration blocks, exploring for significant upstream opportunities in proven basins and promising prospects around the world using the latest seismic and geophysical technology to locate new resources.

BHP Billiton’s potash activities are aimed at potash project development. Its interest in potash is via development projects largely within the Canadian province of Saskatchewan. Potash is a globally traded commodity primarily used as a fertiliser. BHP Billiton has exploration rights to over 14,500 square kilometres of highly prospective ground in the Saskatchewan potash basin.

The Jansen Project, located 140 kilometres east of Saskatoon, Saskatchewan, is its most advanced project and is in feasibility study stage.

Sustainable Communities

This month, in response to the widespread devastation caused by the Ebola outbreak in West Africa, BHP Billiton Sustainable Communities has donated US$400,000 to the Pooled World Health Organisation (WHO) Ebola Response fund. The contribution from BHP Billiton will provide immediate actions to support affected countries and will provide interventions in neighbouring at risk countries until December BHP Billiton Petroleum has 2014. BHP Billiton has worked in exploration, development, West Africa for a number of years production and marketing activities through its iron ore exploration in more than a dozen countries assets. Business Director West around the globe, with a significant Africa Iron Ore, Graham Reynolds, position in the deep water Gulf of said: “The West Africa region is Mexico, onshore US and Australia. in desperate need of international Petroleum also operates assets assistance to contain Ebola. It in the United States, Australia, is both a direct and indirect United Kingdom, Trinidad and humanitarian disaster impacting on Tobago and Pakistan. Its oil and every person living in the affected gas strategy is to focus on material countries including our employees opportunities, at high

and contractors past and present.”

BHP Billiton Sustainable Communities is a charity established by BHP Billiton as part of its community investment program. Most projects supported

by BHP Billiton Sustainable Communities are multi-year projects and they predominantly focus on building capacity of individuals and institutions, ensuring the programs will leave

BHP Billiton

a lasting positive legacy after completion.

Striving For Excellence BHP Billiton never takes its performance for granted. It continues daily to strive to safely operate all of its assets at capacity and continue to identify those resources that it will leave to the next generation of BHP Billiton leaders.

BHP Billiton is committed to the health and safety of its people, the environment and the communities in which it operates. The long-term nature of its operations allows it to establish long lasting relationships with the host communities where it works together to make a positive contribution to the lives of people who live near its operations and to society in general.

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VersaDev

VersaDev Established in 2000 in Adelaide, South Australia, VersaDev provides businesses with turnkey off the shelf and bespoke technology solutions. At start-up the company worked on solutions for local government. In 2002 VersaDev were asked to become a Microsoft certified partner, a move that greatly increased the company’s visibility in the marketplace. VersaDev strengths are its staff and their ability to quickly respond to its clients’ needs. The business has been built through enterprise level managed solutions, and VersaDev’s close partnerships with its client base.

BHP Billiton is the world’s largest diversified resources company. It is also VersaDev’s biggest client in terms of software usage by processing volume. The partnership began with BHP’s Shared Services Centre in Adelaide.

BHP wanted a fast turnaround for their software needs and VersaDev were able to provide a range of solutions.

The business critical nature and deliverable timing of their projects, with implications for business process improvements and the need for access for independent auditing, required a solution which was flexible, easily manageable yet needing to be delivered rapidly. Based on the Microsoft .NET Framework and delivered through the web browser, VersaDev systems provide BHP Billiton personnel with the ability to use a solution which is real time, eliminate labour intensive manual processing, utilise user security based workflow and sign-off and report effectively on outcomes.

VersaDev also provides BHP Billiton with versaSRS, a flexible and scalable solution for managing service request processes. As a result, BHP Billiton has adopted versaSRS for managing service requests for both Human Resources, Supply & Financial Services to effectively manage required actions and requests internally throughout the organisation globally.

The nature of BHP Billiton’s business is continual improvement and they have people in the business who are dedicated to this, so the fit with VersaDev was good. As time as gone on and the partnership has grown this ethos remains within BHP Billiton right across the globe. Most recently VersaDev has been working with BHP Billiton at their headquarters in Saskatoon, Canada, to deliver a stakeholder community communications system that provides transparency across the various projects in the region. It is a reflection of BHP Billiton’s ongoing ethos that they are keen to be highly visible and accountable within the local community.

The partnership with BHP Billiton has been a good local story for a local Australian firm.

Photo: Arno Mikkor

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Enefit Technology Industries

From filter houses to This year began for me in a very interesting way – I, the Dutchman, living in Estonia for nearly 10 years, joined Enefit Technology Industries.

Why did I decide to move my life to this strange country? The country is small, but the ventures dealt with there are big in the European context. My employer Enefit Technology Industries is a company full of potential and more than 50 years of experience. Thanks to the work in the technology industry I get to be involved with world-class technological processes.

Enefit Technology Industries produces various metal products in our factory in Jõhvi in North-East Estonia,

around 160 km east of the capital Tallinn. Our main clients are in the energy field, as the parent company of Enefit Technology Industries is the state-owned company Eesti Energia, which is internationally known as Enefit. The parent company is active in shale oil production, oil shale mining and electricity generation. We serve all these activities one way or another.

by Enefit Technology Industries. For the new power plant our company constructed the fuel delivery systems for oil shale and biofuel and built the ash removal system.

Our main projects in recent years have been participation in the construction of the Enefit280 oil plant and in the building of the parent company’s new power plant.

The heart of the oil plant – the retort – was designed and manufactured

Enefit Technology Industries uses a large amount of the drawings made by customers in the export market, but our export customers have also started to appreciate our large engineering team and we are becoming the engineering

In addition to the oil shale industry, the company has competence and experience in other fields as well: offshore/subsea projects or even pulp and paper services.

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subsea structures partner in our export markets.

And we even go a step further by becoming their erection partner or supervisor. Sometimes our new customers with high quality requirements need proof of our quality system management. Enefit Technology Industries is ISO 9001 and 14001 certified. We have HSE standards in place and, due to many audits by our foreign clients, we are continuously able to improve our HSE standards as well our quality handbooks.

We offer many services to many industries and due to close cooperation with our customers we are able to make the required investments to make our produc-

tion more efficient and deliver the products we make within the timeframe requested by our customers, as deadlines become tighter and tighter. For example at the request of one of our customers we have invested into a brand new XYLAN coating line. These kinds of investment also require us to invest in our workforce.

For a long time our core business has been industrial equipment for power generation and mining industry. This is still an important part of what we do but, more and more every day, we are moving into new fields. A few years ago we also entered a whole new world and

started producing subsea structures.

This has now become increasingly important for us and we see great potential in that market, hoping to increase our exports by at least 15% if not more in the coming years.

When I look around this seems a modest goal. The market is rapidly expanding and we are ready to meet that growth.

Peter van Buuren Business Development Manager, Enefit Technology Industries

Photo: Arno Mikkor

Enefit Technology Industries

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Enefit Technology Industries

Enefit Technology Industries – Leading Through Experience Enefit group is the world’s leading oil shale energy company that recently celebrated its 75th anniversary. Enefit is Estonia’s national power company well placed at the forefront of oil shale extraction technologies.

One of Enefit group´s associated companies is Enefit Technology Industries. This company has played a very important role in the development of Estonia´s oil shale industry for more than half a century.

In recent decades they have been discovered by other companies as well. They have cooperated in different fields of industry both at home and abroad. Today Enefit Technology Industries is one of the largest metal processing, construction and maintenance companies in Estonia.

We spoke with Martti Kork, CEO of Enefit Technology Industries, and Otto Richard Pukk, member of the board of Enefit Technology Industries who is also responsible for the construction division.

To introduce the company, Martti Kork has to go back to more than half a century, “We have more than 50 years of experience in the energy sector and deliver into 40 different markets globally. In recent years Enefit Technology Industries has focused more and more on the offshore market with the focus on subsea structures.”

The company attaches great importance to its ability to develop, and the ability to be flexible. “Yes, it is important! For the benefit of our customers we are ready to improve not only our work equipment but

Martti Kork CEO, Enefit Technology Industries

our methods as well,” Martti Kork says. Otto Pukk adds that one good example from this area is recent investments into steel surface treatment (Xylan coating) and machining capabilities, “These have opened new opportunities for us in the offshore segment and our strategy is to vertically expand the services for subsea technology companies in the Europe and Africa region. Our geographical location (just 30 km from the most eastern deep sea port in the European Union) is helping us to offer cost effective logistics as well as fast deliveries for offshore companies.”

Martti Kork tells us that Enefit Technological Industries’ engineering department is the largest of its kind in the country, “Although we started deliveries to subsea market just few years ago already now about 50% of our engineering capacity is going to this market and the trend is growing fast.”

Otto Richard Pukk adds, “Our one stop service of complex industrial projects offers a full service from project management, design and

manufacture to equipment installation and maintenance. Enefit Technology Industries has over 27,000 m2 of production space.

This enables our company to have production capacity of 10,000 -12,000 tonnes per year working a single shift.” Otto Pukk says that metal structures, energy equipment and industrial machinery produced

by Technology Industries are mostly used in mines, power plants and oil plants as well as in offshore/ subsea projects or even in pulp and paper services. “Enefit Technology Industries uses its own designs for its products or works from customers’ designs,” takes Otto Pukk the possibilities together.

Martti Kork also described the parent company, “The Enefit group is the largest oil shale company globally and is Estonia’s biggest company with almost 7,000 employees. We were one of the first countries in the world to exploit oil shale reserves; in fact we have been involved in oil shale production since 1918. During almost 100 years, Estonia has mined more than one billion tonnes of oil shale, with

Enefit Technology Industries

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Otto Richard Pukk Member of the board, Enefit Technology Industries

Photo: Arno Mikkor

Enefit Technology Industries exports to more than 40 countries

Enefit Technology Industries

Photo: Arno Mikkor

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in excess of more than one billion tonnes still in reserve. Oil shale provides about ninety percent of Estonia’s electricity supply and Enefit group is also a big exporter of electricity across the Baltics and into Finland. The yield of oil from Estonia´s oil shale is in second position among oil shales from all over the world. Therefore Enefit

group is developing the shale oil business more and more. When the company built its new oil plant Enefit280, our enterprise had an important role there as well. This is a new generation oil plant.”

Enefit Technology Industries designed and manufactured the heart of the oil plant – the retort – and

built the retorting unit. Being part of this kind of construction process was a very valuable experience for the whole enterprise. “To construct the retort of a next generation oil plant, is a unique combination of processing units, each of them serving special purposes such as drying and pyrolysis of oil shale, combustion of semi-coke, as well

Enefit140 oil plant

Enefit Technology Industries as the dedusting and cleaning of vapours and gases. Enefit280’s modular design is essential to the allowance of easy maintenance, process optimisation and streamlined adaptability to the individual characteristics of different oil shale deposits. The efficiency of the technology comes from its one hundred per cent use of the mined oil shale. All organic matter is fully utilized, and high performance in oil extraction is further aided by additional revenue streams associated with utilisation of excess heat and gas generated in the process. Waste heat is used to generate electricity, making Enefit shale oil plants net producers of electricity. Nothing is wasted,” asserts Martti Kork as he describes the working process of oil plant Enefit280.

Expanding liquid fuels production is the cornerstone of Enefit group strategy. The plan for next few years is to develop operations upon a stable annual production of approximately 3 million barrels of shale oil.

The new Enefit280 plant produced its first oil in December 2012 and the operation of the plant will increase step-by-step to the designed parameters.

“Today we are finishing works in the new power plant of Enefit group.

Our enterprise designed and built the ash removal system for the plant and constructed the fuel delivery systems for oil shale and biofuel,” says Otto Richard Pukk, member of the board of Enefit Technology Industies. “Although we work largely on domestic projects we have, in recent years, been very focused on overseas growth. In recent years we have made a lot of collaboration with other industries besides our domestic oil shale industry.”

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Enefit Technology Industries focus for growth is in deep-sea oil and the supply of high quality equipment manufacturing and surface treatment services for the deep sea oil industry. To this end, they have been working in partnership with Aker Solutions, leaders in deep-sea oil technology. Otto Pukk says, “Our involvement in deep sea oil operations has grown fivefold. Our attendance at ONS in Stavanger this year will allow us to expand our name in this area. We are looking for vertical growth, adding value and providing additional services to our customers”.

The company’s largest customers include a wide range of well-known industrial firms like ABB, Andritz, ALSTOM, FLSmidth, Foster Wheeler, Aker Solutions, METSO, MW Power, Sandvik Mining and Construction, TLT Co-Vent, Vestas, YIT Industria Ltd, GEA Bischoff and others.

In conclusion, Enefit shines as a beacon for the world’s oil shale industry. Its track record of technological advancement combined with streamlined operations and a huge regard for the environment are sign to this.

Enefit280 oil plant

Enefit Technology Industries More Than 50 Years of Experience Industrial Equipment and Metal Structures for Energy Sector Enefit Technology Industries offers a wide range of competitive technological project solutions for energy and industry. Our single-source service of complex industrial projects ranges from design and manufacture to equipment maintenance.

re Manufactu

t anagemen Project m n and desig

Testing

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nce Maintena Our industry is ISO 9001, ISO 14001, ISO 3834 certified.

Peter van Buuren, Business Development Manager Phone: +372 715 3365; Cellular: +372 512 6143 E-mail: peter.vanbuuren@enefit.com

Enefit Technology Industries

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An Exception to the Main Trend: Finland Subscribes Steelworks for China from Estonia Enefit Technology Industries manufactures steel parts for GEA Bischoff Oy’s Ion Blast Electrostatic Precipitators (ESP) in Estonia for the China Market. GEA Bischoff Oy is a Finnish company belonging to Process Engineering Segment of GEA Group. The company is acting in Emission Control business, which means delivering gas cleaning systems for industry. Recently GEA Bischoff Oy has delivered Ion Blast ESPs for spent acid regeneration (WSA) plants mostly in China, but also in Russia, Poland, Saudi-Arabia and Serbia.

The design of the Ion Blast ESPs is constantly developed in order to serve the high technical and quality demands of the customer.

WSA process conditions are extremely challenging. Inside ESP there could be an over pressure of 150 mbar and temperature of 450 °C. Due to SO2 and SO3 in the flue gases, any cold bridges will result in imminent corrosion damage. The emission guarantees are on BAT level, ≤ 3 mg/Nm3.

Enefit Technology Industries has a key role in the GEA Bischoff Oy’s supplier network. Enefit engineers work hand in hand with GEA engineers. Enefit services also include workshop manufacturing of steel parts, packing and erection supervision. In some deliveries Enefit is also in charge of the site assemblies.

Up-to-date 3D modelling tools help to increase standardisation and quality of the GEA assembly

GEA Bischoff Electrostatic Precipitators (ESP) produced and delivered by Enefit Technology Industries to China are used in production processes in petrochemical industry

Photo: Arno Mikkor

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Enefit Technology Industries

Most advanced mobile 3D laser measuring equipment used in Enefit Technology Industries for fast and reliable checking of manufactured subsea oil industry equipment against 3D computer models and drawings

documentation. When delivering complicated steel structures to countries like China, the local assembly team needs clear and simple instructions. Selected snapshots of various views show different assembly stages in detail.

a full coverage of photos of the well tagged goods before they are packed in containers. With GEA’s special “Tracking Tool” all parts can be identified and it is possible to assist the search intercontinentally from Helsinki office.

When a large number of parts is sent far away and unloaded at site for assembly that will start months later, it may be difficult to find again the parts. Enefit provides GEA with

Since high quality is required, it makes sense to manufacture steel parts also for China market at Enefit’s modern Jõhvi work shop in Estonia, close to Finland. Hence

the strict time schedules can be kept. When one supplier provides mechanical engineering, manufacturing, packing and erection supervision services, the battery limits are minimized. Thus GEA project managers can handle more projects cost effectively and with high quality.

Everybody knows his task.

Timo Seppälä Managing Director of GEA Bischoff Oy

Enefit Technology Industries

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Oil shale + biomass: reality for a state-of-the-art power plant Europe. Estonia. Ida-Viru County.

Here, in the heart of the oil shale industry with 100 years of experience, a new 300 MW power plant is nearing completion and will be using up to 50% biomass besides oil shale.

Last works inside the fuel delivery system of the new power plant

Photo: Arno Mikkor

Systems for delivering both oil shale and biomass at the Auvere power plant have been built by Enefit Technology Industries, a company with more than half a century of experience. Under the guidance of the specialists in the construction division at Technology Industries, one of the most important systems at the power plant – its ash removal system – is about to be completed.

Ash to be transported by means of air and water Burning Estonian oil shale generates ash up to 50%. More efficient utilisation of oil in boilers of a new type and co-incineration with biofuel will decrease the ash yield; however, its quantity will still be large. Without a reliable ash removal system, a power plant cannot operate.

“At the plant facilities, ash will be collected in dedicated hoppers, whence it will be channelled via a pneumatic pipeline into a separate ash removal pumping station,” Ants Sumberg, Project Manager in the construction division at Technology Industries, outlines the ash removal process. “Ash will be raised to a height of almost 30 metres, whence it will drop into a dedicated container with a volume of 320 cubic metres, in which ash will be mixed with water. The resulting pulp will

be pumped by ash pumps along a 1.2 kilometre route to an ash field, where ash will subsequently settle.

Water will be channelled back into the system.”

Several kilometres of pipes Ash removal in its entirety recalls the human cardiovascular system – long pipelines with a pumping station, its ‘heart’, in the middle. Just like the heart, the ash removal system, too, has to be continuously operational.

“At the moment, three ash pumps have been installed, normally with 1 pump working and 2 providing back-up,” Ants explains. “The pulp pipeline is backed up the same way.

Looking at all the dry ash and pulp pipelines together, however, there are nearly 8.6 kilometres of pipes across the whole system. You can

imagine the huge job that had to be accomplished in order to assemble the entire system.”

Pipes and equipment by the German manufacturer Claudius Peters have been installed as pneumatic pipes in the ash removal system. Pipe walls are 12.5 millimetres thick, providing several times the margin for withstanding pressure. Ash pumps, too, are from a German manufacturer, Warman, whereas the biggest pieces of equipment – inlet and mixing hoppers and pneumatic containers – were assembled at the Jõhvi mill of Technology Industries.

Big job Naturally, electricity production is paramount at a power plant; however, it is impossible without fuel delivery and ash removal systems.

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Enefit Technology Industries

Technology Industries built the start and end points for fuels passing through the new power plant, constructing systems that will ensure the continuous delivery of oil shale and biofuel and the removal of ash from the plant. Both types of equipment have been designed by engineers at Technology Industries, with Technology Industries also managing general construction and the design of other dedicated components for the ash removal system.

“It was a massive job, one that had to be completed under a relatively tight deadline. Alongside staff from Technology Industries, another five companies participated in the construction and set-up of the ash removal system, charged with specific jobs, such as geodetic surveys, installing ventilation etc,” Ants Sumberg recounts.

Work to construct the ash removal system lasted 11 months. The value of investments in the ash removal system project is approximately 12 million euros. Investments in the fuel delivery systems for the Auvere power plant are 25 million euros.

Thus, during this short time the cost of the projects completed by Technology Industries at Auvere totals 37 million euros, a most significant amount given such a short period for design and construction.

Work using the ‘turn-key’ method “We are doing this job on a ‘turnkey’ basis; in other words, we will turn over a completed site to our client, Narva Power Plants,” Ants Sumberg continues. “Irrespective of whether the work was done by

our subcontractors or us, the entire system will undergo thorough testing and will be turned over once fully operational.”

According to Sumberg, the Auvere power plant involves projects so large in scale and so unique that nothing analogous exists in Estonia.

“Whereas a few years ago you could characterise Technology Industries as a metals industry company also incorporating an installation and construction department, today it is a different story. We are one of Estonia’s biggest construction companies and have a metalworking mill with diverse facilities.”

Enefit Tecnology Industries designed and manufactured oil plant´s retort and built the retorting unit

Ash removal system of Auvere power plant

Enefit Technology Industries

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Enefit´s oil shale industry in North-East Estonia

Photo: Arno Mikkor

Fuels delivery systems

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GE Oil & Gas Supplies Advanced Turbomachinery Technology for Development of ADMA-OPCO’s Umm Lulu Full-Field GE Oil & Gas has signed a contract for the supply of its advanced technology for Abu Dhabi Marine Operating Company’s (ADMA-OPCO) Umm Lulu Full Field Development project.

The contract, signed with the EPC consortium of National Petroleum Construction Company (NPCC) and Technip, comprises gas turbine generator sets, gas lift compressors and gas injection compressors. These products are based on GE’s advanced PGT25+ Aeroderivative gas turbine technology, an ecomagination product that brings high efficiency and reliable performance. The package also comprises GE’s highly reliable compressors that meet the requirements of all segments of the offshore development project.

Located some 30 km north-west of Abu Dhabi in the Arabian Gulf, Umm Lulu field will have a production capacity of 100,000 barrels of crude oil per day when fully developed.

The contract for GE covers design engineering, fabrication, testing, installation supervision and commissioning services.

Ali Jarwan CEO of ADMA-OPCO, said: “Umm Lulu is of strategic importance to Abu Dhabi in achieving its production enhancement goals. GE Oil & Gas, a longterm partner in the oil and gas sector of Abu Dhabi, was chosen for the project for the innovative and reliable technologies it brings to this time-sensitive project.”

Rami Qasem, President & CEO of GE Oil & Gas for the Middle East, North Africa and Turkey, said: “The contract to supply advanced turbomachinery equipment in plug & play modules for ADMA-OPCO further builds on our strong partnership with the organisation and our long-term presence in Abu Dhabi, where we have an installed base of over 700 rotating equipment.

“The modularized turbomachinery packages being supplied bring the cutting edge in GE’s innovative technology, assuring higher efficiency and reliability. They will contribute to increasing operational efficiencies in offshore development through the introduction of our latest aeroderivative technology to the region.”

GE’s advanced gas turbine PGT25+ draws its high efficiency and light weight from GE’s aeroderivative technology and its ruggedness from heavy duty gas turbine designs. It brings reduced maintenance cycle time while keeping NOx at lower levels even at higher firing temperatures. It also has a two-stage high-speed power turbine module with increased flow capacity.

With a global installed base of more than 20,000 units from production through transportation and processing into finished products, GE’s centrifugal compressors to be installed at Umm Lulu bring high levels of reliability and high-performance through advanced technology components and design procedures.

GE’s advanced plug-and-play technology solutions are helping solve some of the world’s most complex energy challenges in remote locations. In addition to the Umm Lulu Full Field Development project, GE is also supplying six modules for the Upper Zakum UZ750 field in Abu Dhabi, developed by ZADCO (Zakum Development Company).

Since 1985, GE has designed, constructed and delivered more than 45 modules and preassembled units of various sizes to customers around the world.

GE’s advanced technologies enable customers to enhance the efficiency, reliability and productivity of their operations. GE Oil & Gas has conducted its highly acclaimed Oil & Gas University program for ADNOC professionals covering various aspects such as energy sources, exploration, production and utilization.

27

Eni strengthens its presence in Turkmenistan The Director of The State Agency for Management and Use of Hydrocarbon Resources, Yagshygeldy Kakayev, the chairman of State Concern Turkmenneft, Tachdurdy Begdjanov, and Eni’s CEO, Claudio Descalzi, today signed an addendum to the Production Sharing Agreement (PSA) with respect to the onshore Nebit Dag Area located in West Turkmenistan.

In a separate agreement, Eni and the Turkmen State Agency for Management and Use of Hydrocarbon Resources signed a Memorandum to explore the possibility of extending Eni’s activities to Turkmenistan’s offshore sector of the Caspian Sea. These strategic agreements strengthen Eni’s presence in Turkmenistan, a country with a high exploration upside, where it began activities in 2008, and consolidates Eni’s cooperation with the national authorities and the State company Turkmenneft.

Lord Deighton KBE, the Treasury Minister, and Jean-Claude Depail, Executive VicePresident in charge of the Infrastructures Business Line of GDF SUEZ, have today opened the Stublach Gas Storage Facility in Cheshire (United Kingdom), representing an investment of £500 million by GDF SUEZ subsidiary Storengy.

The Stublach site has so far commissioned two salt caverns, which represent a capacity of 40 million cubic metres now available to the UK gas market. A further three caverns will be available by the end of December 2014, bringing capacity to 100 million cubic metres.

The site will eventually have up to 20 caverns with a total capacity of 400 million cubic metres.

With a current 6% gas storage ratio (storage capacity/gas consumption), the UK is well below the European Union average (22%). As the UK becomes more dependent on gas imports and the likelihood of an increasingly flexible demand, new storage sites will play an important role to meet the needs of the gas market, and by 2020 Stublach will be the largest UK onshore underground gas storage facility.

Opening the site today, Lord Deighton KBE, the Treasury Minister, said : «Energy security is central to the government’s long-term economic plan, and we are focusing on investing in infrastructure to achieve this. Sites like Storengy at Stublach play a crucial role in our energy security strategy, allowing gas suppliers and others the flexibility to store gas safely in preparation for when demand is high, or when other supplies are restricted.»

«I am delighted to open the site today. This site has been constructed to the highest safety and hygiene standards, with no public investment required. It demonstrates a real vote of confidence in the UK economy by GDF SUEZ, another example of companies confirming that the UK has created the right environment for investment.»

Jean Claude Depail, Executive Vice-President of GDF SUEZ in charge of the Infrastructures, added : «Stublach is the first investment in the UK for our gas storage business, following many years of operation in France and Germany. I am delighted that the project has just achieved a major milestone and the first salt caverns are now full of gas and already contributing to the security of supply of natural gas across the UK.

News

The agreement was signed in the presence of the President of Turkmenistan, Gurbanguly Berdimuhamedov, and the Italian Prime Minister, Matteo Renzi.

The addendum extends the duration of the PSA to February 2032 and a 10% stake out of the contractor share is transferred

by Eni, operator of the block, to Turkmenneft. Eni will keep the remaining 90% interest stake in the PSA. This agreement will enable further E&P investments in Burun and other satellite fields of the Nebit Dag block.

GDF SuezOfficial opening of the Stublach gas storage facility, a key asset to meet UK gas market needs

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Repsol makes a significant oil discovery in the United States’ Gulf of Mexico

News

Repsol has made a new discovery of high quality oil in the United States’ Gulf of Mexico. The find was made 352 kilometres from the Louisiana coast in an ultra-deep water well named León, located in the Keathley Canyon 642 block.

Repsol is the operator of the discovering consortium. The well found more than 150 metres of net oil pay within a column of over 400 metres. The well was drilled in water 1,865 metres deep, and reached a total depth of 9,684 metres, making it one of the deepest wells operated by the company.

The company has a long experience in deep-water well drilling and is internationally recognised for its technological capacity with cutting-edge projects in hydrocarbon exploration and production such as the Kaleidoscope and Sherlock projects.

Repsol has a 60% participation in the license, with Colombia’s Ecopetrol holding the remaining 40%.

The US Gulf of Mexico is amongst the world’s most profitable and promising deep water plays. Repsol holds 119 blocks in this prolific area together with a share in the Shenzi field, which boasts 16 wells in production connected to two platforms.

In 2009, Repsol had already made one of its most important discoveries in this region. The Buckskin well, 50 kilometres from León, was, like the León discovery, one of the deepest wells operated by the company. The resource potential being carried out by the current operator will lead to a development plan for this and other fields in the near future.

INEOS moves to become biggest player in the UK Shale Gas Industry INEOS has today announced it is planning to invest $1 billion in UK onshore Shale gas exploration and appraisal. Substantial further investment would follow if the company moved into development and production.

If INEOS wins all the Petroleum Exploration and Development licences (PEDLs) it has bid for from the Department of Energy & Climate Change (DECC), the company would become the biggest player in the UK’s Shale gas industry.* The vast majority of the INEOS bids are in Scotland and the North of England, where the local populations have either a mining or an industrial heritage.

INEOS believes that an indigenous Shale gas industry would transform UK manufacturing and that the gas can be extracted safely and responsibly.

Gary Haywood, CEO INEOS Upstream, says, “Whilst the awarding of the licences is a matter for DECC, we believe our knowledge and experience in running complex petrochemical facilities, coupled with the world class sub surface expertise we have recently added to our team, means that INEOS will be seen as a very safe pair of hands”.

INEOS today is already the owner of two substantial Shale licences in Scotland comprising over 120,000 acres, in addition to investing a further £400 million in an ambitious project to bring US Shale gas to Grangemouth.

The company has also announced plans to give local communities 6% of the revenues from any Shale gas it produces (4% going to home & land owners above the well and 2% to the wider local community). This offer is typically worth £375 million to a community and evidence is starting to emerge that suggests many communities welcome it.

Jim Ratcliffe, INEOS founder and chairman, says, “I want INEOS to be the biggest player in the UK Shale gas industry. I think Shale gas could revolutionise UK manufacturing as it has done in the USA. I believe INEOS has the resources to make it happen, the skills to extract the gas safely and the vision to realise that everyone must share in the rewards”

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MOL EXTENDS ITS UPSTREAM PORTFOLIO IN THE CENTRAL NORTH SEA

The portfolio includes non-operated equity stakes in the Scott (21.84% unitised Working Interest [“WI”]), Rochelle (15% unitised WI) and Telford (1.59% unitised WI) fields, as well as participating interest in further exploration licences such as the Rochelle Upper Jurassic deep prospect.

The acquisition is estimated to increase MOL’s 2P Reserves by 14.3 MMboe from the three producing fields (Scott 9.3 MMboe, Rochelle 4.4 MMboe, Telford 0.5 MMboe), deriving from 73% oil and 27% from gas. Besides the reserves, further Prospective Resources (7 MMboe, unrisked) provide additional upside potential.

Year to date production from above-mentioned assets has averaged 3.7 mboepd, while the peak production of the assets is expected to reach 6.2 mboepd in 2016. Overall UK peak production for MOL now is expected to reach 20-22 mboepd in 2018. Together with MOL Group’s already existing assets in the UK North Sea, this transaction will combine to create considerable operational synergies. Key assets (Scott, Telford and Rochelle) are operated by Nexen, one of the largest and most reputable and experienced operators in the region.

Alexander Dodds, Group Executive Vice President for Upstream commented: “This transaction extends the presence of MOL Group on the global map of offshore E&P and provides several additional strategic rationales.

Building on our already existing assets in the UK North Sea, this acquisition represents a significant step forward in growing a solid sizable North Sea portfolio. I am certain that these assets are of considerable quality and will bring further positive results. The synergies gained with this transaction will complement MOL‘s ambitions, and help realize the company’s vision of considerable growth of its international portfolio.”

News

In line with MOL Group’s active portfolio development strategy, a Sale and Purchase Agreement has been signed with Premier Oil UK Limited (“Premier”) to acquire shareholding interest in Central North Sea offshore assets in 6 licences. The transaction contains certain assets of Premier Oil UK Limited including a balanced mix of existing and new production as well as both operated and non-operated exploration opportunities in the ScottTelford and Rochelle Area for a consideration amounting to USD 130mn.

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Petroleum Minister Dharmendra Pradhan lays Foundation stone for IndianOil’s 3150 Crore Poly-Propylene Plant at Paradip Union Minister of State for Petroleum and Natural Gas (Independent charge) Mr. Dharmendra Pradhan laid the foundation of Rs.3150 Crore Poly-Propylene Plant at IndianOil’s Paradip Refinery Project complex, Paradip on 16th November,2014. Cabinet Minister for Co-operation and Excise Odisa and MLA, Paradip Dr. Damodar Rout, Cabinet Minister for Industries, School and Mass Education, Odisha Mr. Debi Prasad Mishra and Member of Parliament, Jagatsinghpur, Dr. Kulamani Samal were present on the occasion.

Referring to the future plans in this direction, the Union minister said that IndianOil is also evaluating the feasibility of setting up of Ethylene Derivative Plant at an estimated cost of nearly 4000 crore. This will indeed act as a catalyst in the socio economic development of the country and the state in particular. This plant will provide products that will facilitate manufacturing of Polyester Chips, Fibers, PET bottles ,PET Chips, Polyester yarn etc.

Vagit Alekperov, OAO LUKOIL President, and Viktor Basargin, Governor of the Perm Territory (Perm Krai), signed a protocol on cooperation between the company and the territory for 2015. The document, executed in the presence of Mikhail Babich, authorized representative of the RF President for the Volga Federal District, is an integral part of the effective five-year Economic and Social Cooperation Agreement. The latter provides funding for a number of investment programs. In 2014, LUKOIL sponsored construction in the region of 15 infrastructural projects and 29 cultural facilities. Also, funds have been earmarked for 35 educational and 31 healthcare projects.

Earlier, Chairman, IndianOil, Mr. B Ashok outlined the key benefits of the project aligning with the coming up of Paradip Refinery slated to be commissioned this fiscal.

The upcoming, Paradip Refinery is IndianOil’s most prestigious and capital intensive project till date and this will be the 11th refinery of Indian Oil Corporation Ltd. It is configured to contribute enormously to the capacity and profitability of IndianOil and the nation as a whole. Upon its commissioning, the state of Orissa and the entire Eastern Region would get a boost, said Shri Ashok.

“The territory boasts a huge resource potential, while the local authorities are our reliable partners. I am sure the 2015 cooperation protocol will be as efficient and fruitful as the previous one, both in the interests of our company and the region as a whole,” Mr. Alekperov noted.

IndianOil Director, (Refineries), Mr. Sanjiv Singh welcomed the dignitaries and spoke about IndianOil’s foray in Petrochemicals. The laying of the foundation stone of the 700 TMTPA Poly-Propylene (PP) Unit marks the first step in the direction of integration and progress. The consumption of Polypropylene in India has seen a steady rise in the last decade and the trend is likely to continue with the increased use of plastics in automotive, processing and packaging industries.

“Being the true flagship of the oil and gas industry, the LUKOIL Group organizations in the Perm Krai determine the development trend for the whole of the region’s industry. I am grateful to the oilmen for the high level of responsibility demonstrated by them as related to the areas covered by their activities,” Mr. Basargin said.

Addressing the gathering Mr. Dharmendra Pradhan described the project as a dawn of new era for the industrial development. Emphasising the need for faster pace of Industrial development to realize Prime Minister’s dreams, Shri Pradhan said that this Poly Propylene plant will also pave way for developing Petrochemical Hub in this zone, he added. Polypropylene produced by this unit of IndianOil’s Paradip Refinery will be used in ancillaries to make moulded furniture, packaging material, containers, medical disposables, adhesive tapes etc.

News

LUKOIL SIGNS PROTOCOL ON COOPERATION WITH PERM TERRITORY FOR 2015

With the commissioning of PP Unit, expected to be commissioned in the next three years, a number of plastic processing Industries will also come up in the area, paving way for the development of a petrochemical hub in this zone.

Paradip Refinery will be catering to the energy needs of Odisha, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Chattisgarh and West Bengal.

This project truly demonstrates that IndianOil is keenly and aggressively pursuing its business goals of being an integrated energy company. With the commissioning of IndianOil’s 15 MMTPA grassroots refinery at Paradip, IndianOil shall be further augmenting its refining capacity, taking it over 80.0 MMTPA.

As part of his visit, Mr. Alekperov participated in a festive ceremony dedicated to the opening of social facilities in Chernushka, one of the leading oil production centers of the Perm Krai. Also, the LUKOIL President took part in the Perm Engineering and Industrial Forum.

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“The economic transformation resulting from the renaissance in light sweet oil production has been great for our industry and our country. It has proven to be a job-creation machine, an engine for the country, as well as a source of economic development,” Lance told members of the Independent Petroleum Association of America (IPAA) last week. “Since 2007, oil and gas jobs grew by 65 percent. These tend to be high-paying jobs with good benefits. Meanwhile, total private-sector job growth was only 2 percent.”

Allowing exports could raise U.S. future production by 1.5 million to 3 million barrels per day, according to the Brookings Institution, a 10 to 20 percent increase over likely production levels without exports.

“There’s also a huge multiplier effect from our investments as they pass through the oil and gas supply chain, such as for materials, manufacturing and all the services and support equipment we use,” Lance said. “And these jobs aren’t confined to traditional areas, with 35 states now producing oil and gas. Also, IHS (an energy consultancy) found that one-in-four jobs created by the exports would be in states that don’t even produce oil today.”

The U.S. could benefit in the geopolitical arena as well by gaining the ability to provide allies with secure energy supplies.

ConocoPhillips Chairman and CEO Ryan Lance Urges U.S. Crude Oil Exports ConocoPhillips Chairman and CEO Ryan Lance (pictured above) says exports of the nation’s impending surplus of light (unconventional) oil could benefit the United States by encouraging further job creation and economic development, while reducing gasoline prices and improving global energy security.

Enabling such exports requires lifting the federal government’s outdated 1970s-era export ban, implemented at a time when U.S. oil production was falling. In contrast, U.S. production increased from a low of about 7 million barrels of oil per day (MMBOD) in 2008 to about 10 MMBOD last year, primarily due to rapid growth in unconventional production of light oil and condensate from shale rock and tight sands. Further growth is expected.

“We’d likely use most of our oil here at home, (and) we would only export the (light oil and condensate) surplus that doesn’t match U.S. refining capacity,” he added.

Growing light oil and condensate production is a mismatch for a number of U.S. refineries that have invested billions of dollars to handle heavy, sour crude oil. Light oil and condensate don’t yield an optimum product mix when processed by such refineries or could require cuts in run rates. Consequently, they would likely require a steep crude price discount to enable these refineries to process it.

“Without a lifting of the export ban, we’ll face an impact from the resulting domestic crude price discount,” Lance said. “The discount would ultimately threaten the producing industry’s ability to make investments in new crude supplies. In short, it could shut down the energy boom.”

News

Lance added that consumers could also benefit from lower prices on gasoline, heating oil and diesel fuel. Prices on these fuels are set by the global market, and exporting our excess light oil into that market could reduce upward price pressure, he said. American consumers could expect to save $18 billion annually, while governmental entities could gain $1.3 trillion in revenue from higher federal, state and local taxes and royalties from 2016 to 2030. These estimates are from an IHS study.

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38

Tullow Oil

Tullow Oil Africa’s leading independent oil company

Tullow Oil

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From small beginnings back in the mid 1980’s Tullow has grown rapidly to become a major player in oil and gas markets in the Africa region, by taking up the challenge of working fields that nobody else could or would. Tullow’s founder is Aiden Heavey.

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Tullow Oil

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An Unlikely Success Story Aiden says of his business: “It started in a small town called Tullow, about 35 miles south of Dublin, Ireland. In the 80s there were loads of companies starting off in the North Sea and Irish Celtic Sea. I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal. They had some small gas fields that they were trying to get people to develop, so I setup Tullow Oil to rework those old fields. I knew nothing about the oil and gas industry at the time, which made it more challenging. No one thought Tullow would succeed because of my lack of knowledge of the industry, no major backers and I was starting a company in a country with no oil industry.”

Areas of Operation Ghana and Uganda have been the main focus of the company’s capital spend and operational activities since 2007, where numerous fields have been discovered and developed. More recently, exploration in Kenya and Ethiopia has been a major focus for the business and will continue to be so as we look to make further discoveries and move to towards development of the discovered resources.

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Tullow Oil

In Ghana, the world-class Jubilee field was discovered in 2007. First oil production commenced on schedule in November 2010 and production averaged 103,000 bopd gross in 1H 2014. Tullow received Plan of Development (PoD) approval for the Tweneboa, Enyenra and Ntomme (TEN) fields in May 2013 and the development project is progressing on budget and is scheduled for first oil in mid2016 with a gross capacity of 80,000 bopd.

In Uganda, Tullow has held interests in three licences in the Lake Albert Rift Basin since 2004.

To date, over 70 wells have been drilled and 1.7 billion barrels of recoverable oil resources have been discovered. In February 2014, a Memorandum of Understanding (MoU) was signed between the Government of Uganda and Tullow, CNOOC and Total, which outlines the framework for the Lake Albert Rift Basin development which is targeting over 200,000 bopd gross production. The export of the Ugandan and Kenyan crude will be an integrated project requiring a regional pipeline. The governments have signed an MoU and formed a Steering Committee to progress the pipeline project.

Tullow has had significant exploration success in the rift basins of East Africa, most recently in the South Lockichar Kenya Rift Basin. Accelerated exploration, appraisal and early development campaigns are now under way in parallel in Kenya and Ethiopia, across the 11 basins where Tullow has over 85,000 sq km of acreage.

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Kenyan Success Evidence of Tullow’s influence on African oil can be found in its ongoing operations in Kenya. The company invested in exploration of Kenyan fields in 2010 and the discoveries made by Tullow over the last four years have put Kenya at the heart of East Africa’s emerging oil province. Despite this success, Tullow does not underestimate the challenges that lie ahead in bringing first oil to market.

Development and production of these resources is a long-term proposition, and so Tullow is working together with stakeholders to build understanding and knowledge about what activities need to take place at each stage of the journey. Securing an appropriate and economically viable plan for development will be critical to project success, however having the right infrastructure in place to support oil production will be equally important. Significant infrastructure upgrades will be required in order to transport the oil from an area largely inaccessible today by roads and rail to the sea, over 850 kilometres away.

Furthermore, Tullow will require access to a wide range of skills as well as competitive, high quality goods and services.

Key to growing a sustainable business in Kenya is Tullow’s recognition of the fragility of its operating environment. The environmental, social and cultural sensitivities will require careful management and extensive consultation and Tullow’s ability to develop the Nation’s resources will be a collective effort. Tullow is working with the National and County Governments, the communities in which it operates as well as with other stakeholders, to realise the full potential of Kenya’s resources.

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Tullow Oil

Kenya’s natural resources hold significant potential for the country’s people and Tullow is committed to ensuring this is delivered in a responsible manner. In Kenya, Tullow operates in one of the world’s most environmentally sensitive regions, which includes national parks, World Heritage Sites and areas of global archaeological and paleontological importance. From the outset, Tullow recognised the need to protect areas of cultural significance and partnered with the National Museums of Kenya (NMK) and Turkana Basin Institute (TBI) to help manage operations in these areas. The scale of Tullow’s licence areas in Kenya is comparable to the size of England. There is a wide variety of topography including very rough volcanic terrains in the southernmost and easternmost reaches, to vast savannahs and farreaching deserts.

Rift basins are a core part of Tullow’s East African exploration strategy and the plays targeted in Kenya are relatively young, at a few million years old. Geological rifts occurred when the Earth’s plates were pulled apart by forces deep within the Earth’s interior.

As separation occurred, the ground collapsed to create lakes, which deepened and linked to the sea. Over time the lakes became isolated and filled with sediment deposits. The organic remains of micro-organisms that accumulated on the lake floor were then heated, compacted and converted to oil as they became buried in the collapsing rifts. The early stages of rifting are present in Kenya as the chain of lakes were rapidly filled with sediment eroded from the surrounding mountains.

Tullow Oil

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The combination of shales and sands that are deposited contain the oil source and reservoir rocks that Tullow is now exploring.

Rift basins in Kenya share many similar geological qualities with the Lake Albert Rift Basin in Uganda where Tullow has discovered estimated gross recoverable resources of over 1.7 billion barrels of oil since the first exploration well in 2006. This experience in the East Africa region gave Tullow valuable and advantageous technical insights, which it combined with the early adoption of key technologies in developing its exploration campaign in Kenya. Tullow conducted the world’s largest airborne Full Tensor Gradiometry (FTG) gravity survey, at that time, as well as more conventional 2D surveys across Kenya’s Tertiary Rift Basins. FTG is efficient in terms of time and provides high-resolution information about variations in the density of subsurface materials, which is highly valuable to Tullow’s exploration teams in identifying possible hydrocarbon deposits.

Tullow is committed to bridging the existing skills gap to ensure that Kenya’s emerging oil and gas industry brings real, lasting benefits to the country’s people. At the end of 2013, there were approximately 100 permanent employees in Kenya, of whom over 70% are Kenyan nationals. To date, Tullow has achieved 100% localisation of its HR, External Affairs, Finance, Legal, IT and general support roles and the company is actively looking at development opportunities for graduates and experienced personnel to drive the localisation programme, both nationally and with respect to the area of operation.

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Tullow Oil

In August this year Tullow reported on progress within this region.

Etom-1 exploration well

The Etom-1 well in Block 13T is the most northerly well drilled to date in the South Lokichar basin, 6.5 km north of the previous Agete-1 discovery. The well encountered approximately 10 metres of net oil pay, extending the proven oil basin significantly northwards.

Based on this result the ongoing 550 sq km 3D seismic survey in the South Lokichar basin has been extended to cover a further 247sq km in this northern area, including several similar prospects, which are scheduled to be drilled in 2015.

The Weatherford rig-804 rig drilled the Etom-1 well to a final depth of 2,000 metres. The well will be suspended for use in future appraisal and development operations, following which the rig will move to drill the Kodos-1 well in September 2014 to test the first of several prospects identified in the neighbouring Kerio Basin.

Amosing-2 appraisal well

The Amosing-2 well in Block 10BB is the first appraisal well on the Amosing field discovered in January 2014, and was drilled from the Amosing-1 well pad. The well was deviated 1,350 metres towards the northeast and downdip from the discovery well to calibrate the oil-water contacts of the several oil pools identified in Amosing-1. The Amosing-2 well encountered up to 30 metres net oil pay. As planned, the well was then sidetracked back to some 400 metres from the discovery well to provide additional insight into reservoir distribution in the area and for use in interference testing, planned to start later in 2014.

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The Amosing-2A sidetrack encountered up to 90 metres net oil pay in several oil pools. The Sakson PR5 rig drilled Amosing-2 to a final depth of 2,878 metres and the Amosing-2A sidetrack to a final depth of 2,165 metres.

The rig will now be moved to explore the southern extent of the South Lokichar basin to drill the Ekosowan-1 well in September 2014, 11.9 km south east of the Amosing-1 well.

Ngamia-3 appraisal well

The Ngamia-3 well in Block 10BB continued the appraisal of the Ngamia field. The well was successfully drilled 1.6 km north of the Ngamia-1 discovery well and encountered 150 metres of net oil pay in both Auwerwer and Lokone reservoirs. The well has been suspended for likely use in future interference testing, appraisal and development activities.

The Marriott rig PR-46 drilled Ngamia-3 to a final depth of 2,700 metres. The rig will now be moved to continue the appraisal of the Ngamia field, drilling the Ngamia-4 and Ngamia-5 wells which are planned to be used in an interference testing programme in the Ngamia field.

Ewoi-1 flow test

The SMP-5 testing/workover rig recently completed testing activities at the Ewoi-1 well. The well demonstrated good permeability in the water-bearing Lokone reservoirs and a programme to target these updip is under consideration. Flow rates from the Auwerwer reservoir DST were limited to around 50 bopd, potentially due to the high wax content and shallow depth of this DST. The lightweight rig is currently testing the Twiga South2A appraisal well where two to three tests are planned.

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Tullow Oil

Global Businesses Aside from its extensive operations across the whole of Africa, Tullow has interests in Europe, South America and in Asia. Tullow’s Europe, South America & Asia region consists of some of Tullow’s most mature producing assets and areas of frontier exploration. In 2013, Tullow announced the sale of its mature Asia gas businesses to allow it to focus on exploring for light oil. Its key activities in these regions last year included the acquisition of Spring Energy. Following this, Tullow commenced a high-impact exploration programme in Norway and the Wisting Central well made a play opening light oil discovery in the Hoop-Maud Basin in the Barents Sea. Tullow also divested its Asian businesses in 2013 and restructured the sale of its Southern North Sea Assets to suit current market conditions and facilitate a multiple asset disposal.

Today, Tullow Oil operates in 24 countries and has more than 2,000 employees.

Zeal Ltd was founded in 1977 to provide corrosion engineering and structural maintenance solutions to the mining companies in Ghana. In 2006, Zeal Environmental Technologies Ltd (ZETL) took over the going concern of Zeal Ltd to operate the Takoradi Port Reception Facility in conformity with the International Maritime Organisation (IMO) Marpol 73/78 Treaty.

ZETL is an indigenous industrial leader in Oil Field Waste Management, providing services to the jubilee partners which Tullow is the lead operator, as well as other Oil and

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Gas Companies in West African countries.

ZETL operates an Integrated oil field waste management facility at Nyankrom, providing best industrial practice in managing hazardous and non-hazardous waste, tank farm, supply vessel and oil rig tank cleaning. We also offer Oil Spill Response-Shoreline cleanup.

With dedicated, hardworking and persevering work force, Zeal is the preferred choice of multi-national Oil and Gas companies in Ghana and the Gulf of Guinea as a result of our

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demonstration of competence, reliability and honesty in our service delivery.

ZETL do not only take great pride as an indigenous home growing company offering the best Oil Field Waste management services of International standards, but also using our integrated Oil Field waste management facility, as a centre of excellence for skills training,

technology transfer and human capital investment, in partnership with

institutions of higher learning like the Kwame Nkrumah University of Science and Technology, University of Ghana, Legon, University of Cape Coast, University of Mines Tarkwa, Ghana Atomic Energy Commission and the Ghana Petroleum Commission

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among others.

ZETL currently employs 44 permanent employees of various professional backgrounds, eg, chemical engineers, environmental scientists, industrial chemists, mechanical and electrical engineers, financial / accounting officers and about 80 casual workers of diverse skills at our Integrated Oil Field Waste Management Facility at Nyankrom,

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complementing the government’s unemployment interventional measures.

As part of our social responsibility programme, Zeal has been supporting the Shama district assembly in the following areas: Upgrading of single phase electricity to three phases at Nyankrom.

Financial support for teacher’s accommodation at Nyankrom.

Funding educational materials for schools within the catchment area of our operation.

Financial support for brilliant but needy students at Nyankrom.

Provision of toilet facility for the Nyankrom junior high school (on-going) Collaboration with traditional rulers.