Oil, Gas and Shipping Magazine

ISSUE 66 www.ogsmag.com

“Navigating complexity unlocking potential”

CONTENTS ADVERTISERS

Cover Story: Page 6

Maersk

“Navigating complexity unlocking potential

“Navigating complexity unlocking potential”

Articles 6 Maersk “Navigating complexity unlocking potential 38 IBS “Private maritime security service provider- Regulation and compliance 48 UK Shale Extraction 50 PetroSA “Proud to be South Africa’s national oil company 58 Shell Group “Pioneering for the future” 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.

CONTENTS

ISSUE 66 www.ogsmag.com

2 Emerson Process Management 4 Scana Skarpenord 5 Axis Energy Projects 18 Exova 19 Pon Cat 19 DHI Group 22 CC Jensen 22 TTV Fluval 23 Atkins Global 26 Petrofac 30 Danbor 31 Pentalver 34 Damen 35 IBS 37 D&R Valves 56 Workforce Group 57 Jan De Nul Group 60 Astrata Group 62 Technip 63 FMC Technologies 71 Drydocks World 73 Salalah Methanol Company 84 Sikorsky

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Maersk “Navigating complexity unlocking potential�

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The Maersk Group is a global conglomerate operating mainly in the shipping and energy industries.

Its shipping companies provide comprehensive coverage of the world’s need for cargo, oil and gas transport, terminal services and on-land logistics. The energy-related business units include drilling and platform service companies, as well as one of the world’s leading independent oil and gas firms. The diversity of the group has been a source of strength and success for more than a century.

The company was founded in 1904, when Arnold Peter Møller partnered with his father in their hometown of Svendborg, Denmark to purchase a second-hand steamship. A.P. Møller set a course of carefully managed expansion that would eventually see the family business grow into a major player in global shipping and energy. When A.P. Møller passed away in 1965, his son Mærsk Mc-Kinney Møller took charge of the business, piloting the company through a period of steady growth and success.

Mærsk Mc-Kinney Møller withdrew from day-to-day management in 1993. He continued to serve as chairman of the board until 2003, when Michael Pram Rasmussen assumed the chairmanship. Born in Copenhagen in 1913 to a Danish father and American mother, Mærsk Mc-Kinney Møller married Emma Neergaard Rasmussen in 1940. The couple had three daughters, two of whom currently serve on the Maersk board of directors. Mr Møller is the chairman of the A.P. Møller and Chastine Mc-Kinney Møller Foundation. He has been a partner in the Maersk Group since 1940, and senior partner since 1965.

Maersk operates in accordance with a set of official corporate values. But it doesn’t take a corporate mindset to understand the commonsense principles that distinguish its business philosophy. They are the same principles that Arnold Peter Møller and Mærsk Mc-Kinney Møller relied on as they guided their family business through a century of success.

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Innovation Maersk invests heavily in innovation at all levels of its organisation – whether designing the world’s largest and most eco-friendly container ships, developing sophisticated software to improve logistics in growth markets, or inventing technologies that enable reliable, safe drilling in the world’s harshest environments.

Innovation is a highly focused discipline that aims to deliver better service, protect employees and the environment, create new business opportunities and ensure cost-effectiveness. One example of innovation is Maersk Oil’s TriGen power generator that uses technology derived from the space industry. About the size of a shipping container, TriGen burns gas with pure oxygen to produce clean power, pure water and “reservoir ready” carbon dioxide that is captured and transported to oil and gas fields for enhanced oil or gas recovery. Because the CO2 is captured, the power produced is emissions-free. Another example of Maersk innovation is the Maersk Kalmar. This 300-metre-long Maersk Line container ship sails its normally scheduled route from Bremerhaven in Germany to Pipava in India, delivering cargo to the usual ports along the way. But it does so with a difference. As a supplement to traditional bunker fuel, Maersk Line has tested using fuel derived from algae to power the ship’s electronics along the route. Looking ahead, biofuel derived from algea could one day be used to power vessels. For Maersk Line, biofuels are part of a broader strategy for reducing CO2 and SOx emissions and for diversifying fuel supply.

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Areas of Operation MAERSK LINE - With 25,000 employees Maersk Line can offer customers access to a global network of feeder vessels and onshore logistics services. One of the key goals at Maersk Line is to transform the customer experience in the container shipping industry. Working closely with customers, Maersk Line has launched several major initiatives over the last few years, for example, the revolutionary Daily Maersk service. With 70 dedicated ships and port calls throughout the week, Daily Maersk provides unmatched flexibility and absolute reliability to customers in Asia and Northern Europe. Reliability is a top priority for Maersk Line and the company is frequently ranked by independent third parties as the most reliable carrier among the world’s 20 largest shipping lines. In addition, Maersk Line is also a leader in eco-efficiency, which is fast becoming a major differentiator in the container shipping industry. Being considerably more efficient than the industry average this enables customers to reduce the environmental footprint (including CO2) of their logistics solutions and supply chains.

SAFMARINE CONTAINER LINES - Safmarine Container Lines is a regional liner shipping company that specialises in the sea transport of cargo between Africa, the Middle East and the Indian sub-continent.

Most of our vessels are fully containerised, but the company also offer services for non-unitisable breakbulk and project cargo.

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MCC Transport is a liner company that is dedicated solely to the critical, fast-growing and ever-changing Asian market for container shipping. The company has deep local knowledge throughout the region, yet benefits from all the strengths that membership in the Maersk family entails. MCC Transport offers a reliable, very extensive network, and specialises in providing global and regional companies with effective, customised solutions, high-quality service and fast transit times at a competitive price.

SEAGO LINE A liner company dedicated to the intra-Europe market, Seago Line’s strengths lie in its intimate knowledge of the region, the ability to deliver exceptional value on short sea routes, agile operations, and an extensive network of feeder services. While maintaining a solid footing in the intra-Europe region, Seago Line is backed by all the expertise and capabilities of the Maersk Group.

TRIPLE-E VESSEL The Triple-E is the largest ship in the world, and it sets new standards in the container industry, not just for size, but also of energy efficiency and environmental performance. With unique design features for slower speeds and maximum efficiency, vessels in this series emit 50% less CO2 per container moved than the current average on the Asia-Europe route. Using the Clean Cargo Working Group’s internationally recognised methodology of grams of C02 emitted per container moved one kilometre, the Triple-E is the most efficient container vessel ever made. Maersk Line has ordered a total of 20 of these vessels, which will be phased in gradually over the next couple of years on the existing route between Asia and Northern Europe (AE10).

Four hundred meters long, 59 meters wide and 73 meters high, the Triple-E will be the largest vessel of any type on the water to date. Its 18,000 TEU (twenty-foot container) capacity is 16 % greater (2,500 additional containers) than currently the largest container vessels like Emma Maersk from the Maersk E-class type.

The Triple-E’s are designed with a ‘twin-skeg’ propulsion system (two-engine, two-propeller). Its two propellers are 9.8 meters in diameter with 4 blades each. The engine is an ultra-long-stroke engine, operating with a lower number of revolutions compared to a traditional engine. The total power is appr. 30,000 kW, per engine.

The hull of the Triple-E is more like a U-shape compared to traditional container ships. An additional row of containers has been added to the Triple-E, giving it 23 rows across its width, compared to 22 rows onboard Emma Maersk. The more spacious hull and extra row provides additional capacity and with the more forward navigation bridge, containers can be stacked higher in front of the bridge without losing visibility. In addition to that, more containers fill the space behind the bridge above deck and below deck, using the space created by the engine room’s position further to the back of the vessel.

Maersk Line’s Triple-E vessels will set a whole new standard for sustainable shipbuilding and recycling. Maersk is achieving this by introducing what it calls a Cradle to Cradle Passport, which details the materials used to build the ships. This will make it possible to recycle almost the entire ship, so in the future new ships will be built from old ones instead of using iron ore and other finite resources.

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DAMCO - With offices in more than 90 countries Damco is a global player that keeps things moving for more than 10,000 businesses worldwide. Damco creates value by simplifying complex supply chains, enabling businesses to cut their inventories, reduce their operating costs, and achieve short-term savings that improve long-term competitiveness. In 2011 Damco completed more than 300 supply chain projects that identified over USD 130 million in potential savings for its customers. Damco offers market-leading capabilities in key origin markets, and we are a leading operator in emerging markets such as China, South East Asia, India, Africa, the Middle East and Latin America. Damco’s greatest successes have always come from working closely with customers to understand their business and deliver the solutions they need.

This probably explains why Damco’s key customer retention rate over the last three years exceeds 97%, one of the highest customer retention rates in the industry.

APM TERMINALS is an independent operator with a global port, terminal and inland services network spanning five continents. Its assets include interests in 62 port facilities and over 150 inland service locations, providing a growing business presence in 63 countries. As the world’s leading port and terminal operating company, APM Terminals plays a critical role in facilitating world trade, which is a primary driver of global economic growth. Over 90% of world trade is transported by ship, and total container volumes at the world’s ports surpassed 600 million TEUs in 2012.

In 2011 alone APM Terminals committed USD 3 billion to new port facility development and existing facility expansion and is targeting emerging high-growth markets in Asia, Africa, Latin America, the Middle East and Eastern and Central Europe, which are currently underserved by modern port and transport infrastructure.

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Within two years, Hague-based terminal operator APM Terminals won over container handling in Russia.

Petrolesport, the biggest container port of St. Petersburg was only seven years ago an old Soviet-type port for timber and scrap metal, but in the meantime these flows of goods have vanished into the background.

Now, containerships and car carriers set the tone. Long line-ups of brand new Toyota Land Cruisers on the quay site demonstrate increased prosperity of part of the Russian population. After Russia joined the World Trade Organization (WTO) in 2012, market conditions have to open up. That explains why APM Terminals struck the Russian market. End 2012 it took a substantial interest of 860 million USD in the Russian Global Ports and thereby gained a foothold in major container ports in Russia and Finland. Most recently, Global Ports took over its main competitor in Russia, National Container Company (NCC) for more than 1.5 billion USD. After all transactions were closed APM Terminals has an interest of 30.75% in Global Ports, which has a market share of over 40% in Russia. Other shareholders are the Russian N-Trans (30.75%) and the former owners of NCC (18%). In addition, 20% of the shares are listed on the London Stock Exchange. With these acquisitions, APM Terminals becomes the biggest player in Eastern Europe and Russia.

Winning new business in an increasingly competitive global market requires not only a successful strategy for portfolio management and investment, but also a commitment to innovation and sustainable business practices. APM Terminals is an industry leader in innovation, with major projects including the productivity-doubling FastNet crane system and its announced portfolio-wide conversion to electrified Rubber-Tire Gantry Cranes (RTGs) from diesel power.

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MAERSK OIL - With 3,200 employees, turning marginal and challenging fields into commercial successes has been the cornerstone of Maersk Oil’s business since the company was founded in 1962. Maersk Oil developed groundbreaking technologies while working with tight chalk reservoirs in the Danish North Sea and enabled Denmark to become an
 oil and gas producing country. Later, the company deployed these technologies abroad and became an international player in the upstream business. Today, Maersk Oil operates some 625,000 barrels of oil equivalent per day, with production in Denmark, the UK, Qatar, Algeria, Brazil and Kazakhstan. Exploration activities are ongoing in Angola, Norway, Greenland, Kurdistan, the U.S. Gulf of Mexico and in the producing countries.

FLYNDRE AND CAWDOR FIELDS - Maersk Oil UK Limited has received approval from the UK and Norwegian authorities to develop the Flyndre and Cawdor fields. The Flyndre field was discovered in 1974 and straddles the UK/Norway median line. Cawdor was discovered in 2008. The fields will be codeveloped as a subsea tie-back to the Talisman Sinopec Energy UK Limited operated Clyde platform.

Flyndre will be developed with a single production well. The Cawdor field will be developed initially with a single production well, with potential development of two further wells based on field performance. As development operator, Maersk Oil UK Limited holds a 59.966% interest in Flyndre and a 60.6% interest in Cawdor.

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The Flyndre well is expected to peak at around 10,0001 barrels of oil per day (gross production) with first oil expected in 2016, with Cawdor expected to peak at around 5,000 barrels per day (gross production) with production beginning in 2017. Total recoverable resources are expected to be approximately 30 MMboe for the initial development phase, with further upside depending on performance and further development phases. Maersk Oil UK Limited’s investment in the field developments is expected to be approximately £300million.

“Approval of this plan supports our long-term strategy for growth and our aim to double production in the UK North Sea by 2020. Together with approval of the Balloch field development in 2013, Flyndre/Cawdor underscores our momentum in progressing the development opportunities from our strong North Sea portfolio,” said Martin Rune Pedersen, Managing Director of Maersk Oil in the UK. The UK Energy Minister, Michael Fallon MP said, “Through technological innovation and extraordinary human effort the North Sea oil industry continues to confound expectations with record investment supporting jobs and the economy. The close co-operation with Norway over this significant cross border development is particularly welcome. This approval reinforces the case for similar projects across the rest of the North Sea.”

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Partners in the Flyndre field development are Maersk Oil UK Limited (59.966%), Talisman Sinopec Energy UK Limited (20.678%), Talisman Sinopec North Sea Limited (3.856%), Maersk Oil Norway AS (13.694%), Statoil Petroleum AS (1.031%) and Petoro AS (0.775%). All Flyndre field equities are subject to a final equity determination process, presently ongoing under the UK/Norway Framework Agreement.

Partners in the Cawdor field are Talisman Sinopec Energy UK Limited (35.17%), Talisman Sinopec North Sea Limited (4.23%) and Maersk Oil UK Limited (60.6%).

The Culzean project has taken a significant step forward. Maersk Oil UK and its co-venturers JX Nippon Exploration and Production (UK) Limited and Britoil (BP) have chosen a new standalone facility to develop the discovery: a complex of bridge linked platforms comprising a 12 slot wellhead platform (WHP), a central processing facility and utilities/living quarters. The total investment for the project is expected to be in excess of £3bn (US$4.7bn). To develop the project further, Maersk Oil UK can announce on behalf of its co-venturers that KBR London has been selected as the successful FEED contractor. In addition, a significant drilling commitment has been announced, with the selection of a newbuild Heavy Duty Jack Up (HDJU) rig provided by Hercules Offshore, Inc. Ultra High Pressure/ High Temperature (uHP/HT) projects require significant pre-investment and in order to commence drilling in 2016 contracts will be placed now for the rig and later in Q3 2014 for the WHP jacket. If successfully developed, the Culzean field could provide around 5% of the UK’s total gas consumption by 2020/21. First gas from the project is currently expected in 2019.

MAERSK OIL PARTNERSHIPS Maersk Oil’s strong technical capabilities and pioneering mindset allow it to move very quickly from the point of discovery to first oil – making Maersk Oil a valuable partner for host countries.

It has a proven track record of diligent project execution, completing large, complex projects on time and on budget. The development of the Al Shaheen field in Qatar is an example of this. Maersk Oil took over the abandoned field in 1992 and produced the first oil in 1994. In 2011, it finalised the latest USD 6 billion development of the field – including the installation of 15 new platforms and 160 production and water injection wells.

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MAERSK TANKERS – a vital part of the Maersk Group, Maersk Tankers owns and operates a large, modern fleet of crude oil, product, and gas tankers, all built and operated in accordance with our high standards for quality and reliability. Tankers form a vital link in the global energy industry, as well as playing a key role in ensuring that the industry operates safely, efficiently and with a minimal environmental impact. Maersk Tankers has been transporting oil since 1928, and today has one of the largest and most diversified independent fleets in the world.

Maersk Tankers aims to be the industry leader by offering customers unmatched service, scale and flexibility. One example of its strength is the 2012 founding of the Nova Tankers VLCC pool, which is the market leader in this segment.

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Maersk Tanker’s three product tanker brands also enjoy a commanding market position. The LR2 Pool operates double-hull coated Aframaxes, primarily carrying naptha and gasoil from the Arabian Gulf to East Asia. Handytankers is one of the world’s largest pool managers of vessels between 25,000 and 51,000 dwt. Broström, acquired in 2009, is a leading tanker company specialising in vessels below 25,000 dwt.

Finally, Maersk Tankers has a strong presence in the handy-size and VLGC gas segments under its own name.

Safety and sustainable operations are top priorities for the company and are of increasing important to its customers. When forming part of a customer’s supply chain, Maersk Tanker’s track record is part of theirs. That’s why it has integrated safety and sustainability considerations into all decision-making and management processe, including regular CSR audits of yards, TC owners and other major suppliers.

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We’ve been active in the oil and gas sector for almost fifty years. Our expertise covers all stages of the facility lifecycle, from concept design through to operation and decommissioning.

Our planners, designers and consultant engineers actively seek to introduce or develop methods that challenge the norm. They view engineering as an opportunity to do something unique, breaking down the conventions and going beyond the code – this is the Atkins culture.

People choose to work in our oil and gas business because they know some of the most rigorous engineering problems are there to be solved; through design or modification.

We work closely with key industry operators such as Maersk to ensure the safety and longevity of assets is maximised throughout the UK and Europe, North America, the Middle East and Australia. www.atkinsglobal.com/oilandgas

MAERSK FPSOs develops, builds, owns and operates floating production, storage and offloading (FPSO) vessels that are tailor-made for oil and gas production in demanding environments. FPSOs are some of the world’s most complex vessels. They are designed to receive reservoir fluids from nearby platforms, separate the oil, gas and water, and process and store the oil or gas until it can be offloaded onto a tanker or transported through a pipeline. FPSO’s are especially effective in remote and deepwater locations where other solutions are not technically feasible. Maersk FPSOs is a contractor to some of the world’s leading energy companies.

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Its produc tion units ensure safe and reliable exploitation of offshore oil and gas fields, and meet the highest standards in some of the world’s most strictly regulated and harshest offshore environments.

The Maersk Peregrino is the newest FPSO in the fleet. This state-of-the-art vessel is the Maersk Group’s most expensive unit, and is able to produce up to 100,000 barrels of heavy oil per day from the Campos Basin off the coast of Rio de Janeiro.

Maersk FSPOs’ purpose-built Maersk Curlew and North Sea Producer vessels have operated off the coast of Aberdeen since the late 1990s, while the NKOSSA II LPG storage ship operates off the coast of DR Congo, and the Volve production module is mounted on the Maersk Inspirer, currently operating off the coast of Norway.

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Discover the difference Petrofac is a safety-focused, flexible and customer-orientated oilfield services business.

We always look for ways to meet our customers’ needs – by aligning our performance with their goals.

To do this we draw on the breadth of our capabilities across the asset life cycle but adapt our approach to delivery.

It’s not just what we do, it’s what we can do that makes us different.

Discover what Petrofac can do for you.

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Driven to Deliver Differently

Discover the difference

Bob Egan’s first experience offshore was to have a profound effect that would shape and influence the next 20 years of his career.

It was 1992; Bob was on the Piper Bravo hook-up, close to the site of the 1988 Piper Alpha disaster in the North Sea. He and his workmates were able to look across at a beacon marking the spot where 167 men had been killed just a few years earlier.

This was the beginning of a journey that has been marked by a fierce personal commitment to workplace safety, a commitment that was recognised at the 2014 UK Oil and Gas Industry Safety Awards when he was named Safety Representative of the Year.

Bob, from Dundee, is a trade foreman with Petrofac and one of the 110-strong Petrofac offshore and onshore team providing engineering services to Maersk Oil’s Gryphon, Janice and Global Producer III in the North Sea. As an elected safety representative on the Global Producer III FPSO, he has been at the forefront of Maersk Oil’s ‘Incident -Free’ campaign, taking part in intensive workshops, set up to establish a shared commitment to safety, and engaging with his work colleagues to gain their feedback and ideas to help strengthen the campaign. Now the Incident-Free mind set is something Bob helps support every day.

Petrofac is a safety-focused, flexible and customer-orientated oilfield services business.

‘Safe’ is Petrofac’s number one value. But while it is for Maersk Oil too, it is expressed as ‘Constant Care’ – and it was this articulation of core values that Petrofac’s Business Improvement Director Martin Kilmurry homed in on when undertaking a wide ranging business improvement plan for the Maersk Oil contract.

Martin says: “As a Company, we’re driven by a clear set of values, with ‘Safe’ being at the core. It’s not surprising to find that both Petrofac WeMaersk always for safety waystotobemeet our customers’ needs – byoutaligning and Oillook consider fundamental; however, I wanted to find if our other values were aligned.

“Maersk Oil’s culture has developed from what was fundamentally a family-run company, and as a result, the company values – our performance with their goals.

‘Humbleness’; ‘Constant Care’; ‘Uprightness’; ‘Our Employees’ and ‘Our Name’ – are quite different to those of most multinationals, To do this drawon oncloser the inspection breadth we of found our capabilities across including ours.we However, that ‘Humbleness’ couldthe be equated with our own values ‘Ethical’, ‘Innovative’ and ‘Responsive’, for example, and ‘Constant Care’ with ‘Safe’, ‘Innovative’ and ‘Quality and Cost Conscious’.” asset life cycle but adapt our approach to delivery.

This exercise was one part of an in-depth comparison that enabled Petrofac’s project team to develop an innovative induction process that would ensure Petrofac working on can the contract understood Oil’s values and how they related to Petrofac’s – giving It’s not just all what we personnel do, it’s what we do that makesMaersk us different. them a deeper understanding of the customer.

Business Improvement has also allowed Petrofac to identify other services that can be offered in addition to the original scope. In 2013, Discover what do foronyou.

Petrofac took over the Petrofac managementcan of shutdowns Maersk Oil’s North Sea assets – a service not included in the original contract scope – the first of which was a successful 15 day shutdown on the Janice platform.

Martin concludes: “Having a business improvement plan is crucial. It helps the entire teams, from core project to the supporting departments, take ownership of improvement, drive success and add value to our customers where possible. By involving our customers in its development, we have a greater understanding of their needs, the challenges they faces and how we can support them into the long europe@petrofac.com term.” www.petrofac.com/europe

MAERSK DRILLING – now with 3,300 employees, Maersk Drilling has been an export in drilling since it started operating in 1972. Maersk Drilling is currently drilling in the North Sea, West Africa, Malaysia, Brunei, Egypt, the Gulf of Mexico, Australia, the Caspian Sea and Venezuela – applying efficient, highperformance equipment to break new ground in the global energy business.

Maersk Drilling is a leader in the North Sea, where it operates the world’s largest and most advanced ultra harsh environment jack-up rigs at water depths up to 150 metres. These highly automated rigs provide safe working conditions for its crews and an unsurpassed drilling efficiency for its customers. The fleet also includes three highly sophisticated deepwater development semi-submersibles that are capable of operating at depths up to 3,000 metres. In line with Maersk’s accelerated growth strategy, six new drilling rigs are currently due for delivery in by the end of 2014. Maersk Drilling continues to lead the way in the technological advancements of ultra harsh environment drilling. With the XLE Rigs currently in construction, it will deliver the most advanced jack-up drilling rigs in existence.

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All of them will be customized to handle demanding and complex well drilling operations in the North Sea. The four XL Enhanced harsh environment jack-up rigs are based on the design of the MÆRSK INNOVATOR and the MÆRSK INSPIRER, currently the world’s largest and most advanced jack-up drilling rigs.

Significant operations in other regions of the world include the Egyptian Drilling Company (EDC), a joint venture formed with the Egyptian General Petroleum Corporation. This venture owns and operates a fleet of more than 60 land rigs and five jack-up rigs in the Middle East.

The work Maersk Drilling undertakes relies heavily on advanced engineering. It has its own in-house engineering department that develops newbuildings and modifies existing rigs to deliver exactly what customers want. Maersk Drilling also applies its technical know-how to the critical work of improving sustainability. It has adopted an ISO 14001-certified environmental management system, and is involved in a number of sustainability initiatives, including the optimisation of newbuilding designs to reduce its environmental footprint by 10%.

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MAERSK SUPPLY SERVICE – this business area supports the oil, gas and renewable energy industries around the world with a large fleet of modern, advanced vessels. Maersk Supply Service has the technology and know-how to meet almost any customers need. Its diverse and highly sophisticated fleet includes powerful anchor handlers, platform supply vessels and advanced subsea support vessels. This fleet is contuniously renewed, whether through newbuilding projects, modifications to existing vessels or divestment of older tonnage.

Maersk Supply Service capabilities cover all areas of offshore supply services, from rig moving, installation

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work, anchor handling and pipeline ploughing to supply services, iceberg management, subsea support, offshore fire-fighting and pollution control. It can move and install virtually any kind of rig or offshore installation, and has particular expertise in deepwater operations. Maersk Supply Service operates worldwide and in all major offshore areas, from Brazil and East Coast Canada to Africa, Asia and Australia.

The operations performed involve difficult work with complex, heavy equipment in very harsh environments, making safety a critical issue. Maersk Supply Service works constantly to improve its safety performance through training, risk assessment and strictly enforced procedures.

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The Specialists for armed maritime protection, consultancy and training.

W W W. B O D Y G U A R D A G E N T U R . C O M

SVITZER is the global market leader in towage and emergency response. Its towage arm provides harbour, terminal and ocean towage services, as well as pilotage, firefighting, pollution response and escort assistance. It provides crew training in advanced tug simulators that replicate real-life port situations.

Simulator training also prepares crews to navigate around terminals even before they are built.

Svitzer’s rescue and recovery specialists and fleet of tugs and emergency response and rescue ships are always on standby to respond to an incident
, whether to refloat a grounded ship, save a vessel or installation from sinking, or take part in an oil recovery and clean-up operation.

OTHER OPERATIONAL AREAS Danbor Service is a provider of support services for the offshore industry. Maersk Container Industry provides global clinest with cargo transport equipment. Maersk Fluid Technology performs vessel fuel analysis and management. Star Air provides air cargo services. Maersk also own Dank Supermarked, parent company of four retails chains operating in Denmark and across several European countries.

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europeanoilandgas.co.uk

EuropEan oil & gas

00

Issue 108 Ref: PlastoIl THE FUTURE

Please confIRm 6 / 5 / 14

As part of its long-term focus, the Maersk Group is working to develop sustainable solutions in all its businesses. It has taken significant steps in recent years to become industry leaders with regard to the environment, including substantial reductions in CO2 emissions. It is strongly committed to the safety of its people. In all its businesses, Maersk Group aims for long-term profitable growth, combining focused innovation, a performance-based culture and a philosophy of constant care, to build and maintain leading positions in attractive industries and growth market.

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aPP

Private Maritime ”Chances, which you do not Service use yourself are Provider Security not wasted.

– Regulation They will simply be and used by somebody else.“ Compliance

The Specialists for armed maritime protection, consultancy and training.

W W W. B O D Y G U A R D A G E N T U R . C O M

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With the introduction of the new § 31 of the German Industrial Code and an amendment of the German Arms Act in 2013, the regulation of armed security service providers has been implemented concretely and comprehensively during the past year, especially for vessels sailing under the German flag in Germany.

Subsequent to the development of directives of the IMO (MSC.1 Circulars 1405, 6 and 8), a number of other EU countries have passed relevant acts or regulations for the deployment of armed security service providers on vessels, or are in the process of politically preparing such legal initiatives. In addition, the market currently regulates itself and is supported by directives of associations, like for instance the increased utilisation and extension of the BIMCO GUARDCON contract format.

Since normally new standards for service provision are established through legal regulations, the vessel owner does receive an additional decision-making baseline for the deployment of armed security service providers on their vessels, besides the references of the security service provider in the maritime environment, insurance aspects and the financial costs as a result of the clearly defined legal minimum standards; however, they do not get an overview of the resilience of the offered services.

Therefore the focus shall subsequently be on selected elements of the deployment of armed security service providers on vessels at sea, which are only insufficiently taken into consideration within the framework of existing regulation initiatives, or of which the relevance is not sufficiently known due to the complexity of the circumstances.

This is mainly about the skills and knowledge of the operative providers of such services, which allow the low-risk and effective execution of a protection assignment. Curiously, many service providers are currently being selected exclusively according to the criteria of “price” and, increasingly, “compliance”, irrespective of whether the company can realistically implement a specific protection concept (provided that such a concept is presented). By comparison, this would correspond to the chartering of a vessel only based on rate and class, irrespective of whether the type and size match the cargo.

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Furthermore, it is often argued that regarding “quality”, no vessel with armed security forces has to date been hijacked by Somalian pirates. Thereby it is deliberately overlooked that the shipping company can very well suffer damages due to inadequate quality of a service provider, even if the vessel is not hijacked.

In an article in a renowned international maritime magazine, i.b.s. (Internationale Bodyguard- & Sicherheitsagentur e.K.) has previously already presented the minimum requirements for a protection concept in detail.

• Risk evaluation and matching team size and equipment • Selection and state of training of team members,

knowledge of the operational area and regionally

specific patterns of behaviour • Implementation and adaptation of BMP and pro

tective measures to the relevant situation • Training and education of crew members and the

vessel’s command, including exercises • Individual training of the relevant security team • Guard routine by the deployed task force on

board (24/7) • Valid procedures and instructions for routine and

alarm cases (SOP´s, ROE´s) • Post Mission Reports (actual/target state

description, improvement potentials, observed

behaviour of potentially dangerous contacts at sea) Even if the records comply with the stipulated legal criteria, the evaluation of the implementation on board is quite often difficult, because there is no generally applicable catalogue of criteria which clearly indicates what should be considered specifically by the vessel’s command and the management of the shipping company regarding the deployment of armed protection teams on board.

The following aspects are based on information of about one hundred private security service providers, of which thirty were subjected to a special audit to establish their organisation value, as well as on interviews with deployed security staff and own observations.

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Training and knowledge of the embarked task force The training of maritime protection forces is proven by training certificates, participation lists and, if applicable, training material. But which training is of qualitative value and complies with the requirements for an armed deployment on board? When answering this question one must differentiate between the theoretical and practical level of knowledge of the private maritime task force. While the theoretical part can readily be checked against the specifications of the revised current version of MSC.1/Circ. 1405, an evaluation of the practical skills, especially regarding the handling of firearms, is significantly more difficult.

Realistically speaking, it can be stated that all training courses of less than one week and repetition intervals of only six months or longer can neither establish a suitable level of training nor maintain it. Training sessions on topics such as knowledge of the operational area or pirate tactics with a duration of forty five minutes or one hour are inappropriately short. In addition, many providers do not have access to suitable sources of information, so that wrong insights and speculations are regularly passed on, which can certainly result in harmless small boats, mostly local fishermen, being identified as pirate vessels and fired at during subsequent deployments.

Besides the required physical sea fitness, most security employees at sea lack an understanding of nautical matters and sea tactics. This quite often also applies to the team leader, who should be able to keep a cool and collected overview in danger situations and lead his team. A classic example of the mostly land-based military orientation of most security service providers is the complete lack of indication regarding nautical manoeuvres to resolve tactical situations at sea without the application of force – be it the avoidance of encountering a suspicious boat or dhow, or manoeuvring into a position that is unfavourable for the potential or actual attacker.

Regarding soldier skills, reference is frequently made in curriculum vitae and brochures to extensive military deployment experience in urban combat operations within the framework of deployments in Iraq or Afghanistan or other crisis regions.

Here the focus on modern military concepts for the safe handling of firearms and the tactical use thereof in urban areas rather represents a “pernicious skill�, which can only be maintained at a high level through intensive and continuous training.

This clearly requires more than two to three days of shooting practice per year.

In addition, many task force members with experience from previous land-based deployments must discover that the conditions for a focused and controlled deployment of weapons at sea drastically differ from those on land.

Furthermore, due to individual limitations of the home countries, most of the service providers can only occasionally or not at all train with the actual weapon types which will later be used during assignments, because these opportunities do not exist in the home country due to legal limitations.

Quite frequently, disproportionately more capabilities and skills of deployed staff than is actually present or can be proven is suggested through the use of complex military terminology and abbreviations in order to conceal the lack of relevance of training.

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Weaponry and equipment The assumption that the type of weaponry does not matter because embarked security teams dispose of such tactical advantage that they outclass the attackers in the small boat in any case is negligent and even dangerous.

On the other hand, the performance of individual pieces of equipment is often exaggerated with references to manual-based technical data, without taking into consideration the environmental and deployment conditions in the deployment area, in order to prove the technical superiority over the regional organised criminals.

Besides various often-ignored limitations in the field of technical control and safe working conditions when using such equipment, a healthy portion of self-deception is involved here for some providers (and customers). In this way a feeling of security is suggested to themselves, the client and later the crew members too, which in connection with a higher risk selection of course and speed, and a lesser emphasis on BMP and self-defence measures by the vessel’s owner, can have fatal consequences.

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Deployment procedures and instructions Training and equipment are directly related with the deployment procedures and instructions (Standard Operating Procedures), which normally also contain the deployment or defence directives (Rules for the Use of Force). Here one frequently finds procedures which are not realistically oriented. Instances include the escalation of a danger situation through the use of weapons, or general references to “best management practice” although it is known that a) the staff of the provider cannot properly implement these due to lack of training and experience, or cannot evaluate the implementation thereof by the crew, and b) required material is not present on board in sufficient volumes, and therefore objectives can either not be realised or only realised insufficiently.

Just as unrealistic are instructions where, for instance, an armed resolve is described from the citadel. Even in the military, such procedures are reserved only for highly specialised and trained troops, but normally not for private providers due to a lack of extensive military equipment and capabilities.

Another problem is posed by SOPs which define procedures and instructions clearly contradicting legal and contractual stipulations, and should therefore at best be described as “unsuitable”.

In as far as the SOPs are not inadequate from the start, a large proportion of observed inappropriate behaviour of private security service providers at sea can be ascribed to insufficient knowledge of the procedures. Especially in the Anglo-Saxon domain, this can be ascribed to the predominant “independent contractor” culture, where employed staff often work for a number of companies simultaneously within the framework of limited time intervals.

Accordingly little effort is made by the security service providers to thoroughly train and re-train staff employed by them in companyinternal procedures. They like to refer to the allegedly uniform level of training of members of the military (particularly special forces), which, however, requires extremely high training costs in order to maintain and expand such capabilities. Why should private security service providers invest in staff who would possibly make their capabilities available to another provider within a few weeks?

The strong focus during the development of SOPs on military members with experience in recent conflict areas, like for instance Afghanistan and Iraq, entails the risk that many members of private security service providers will interpret instructions and directives against the background of their battle experience. It is overlooked that the context of piracy combat is different in principle: it is a civil protection assignment under peace conditions.

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Team size While it is wise that economic considerations dominate the selection of the team size, it is advisable to consider the size of the embarked team and to reflect on the argumentation of the security service provider in order to determine whether the offered size of an armed task force forms part of a serious concept.

In this discussion, which has been going on for years, a team size of four members is considered to be “standard”, even if many providers go to sea with only two or three members. The background to this is in most cases not the maximum task force size, but rather the aim to be and remain competitive even in the market of “discount providers”.

Depending on the embarkment conditions, this is also of considerable relevance for the duration and resilience of the defence actions, based on international regulations for the transport of hazardous materials.

Under the assumption which was valid for the years 2011 and 2012, that a large portion of the Somalian pirate attacks are performed with one to three boats and up to fifteen attackers, whereby occasionally simultaneous attacks on a vessel are performed from two sides, a team size of less than four members can hardly be justified logically and tactically.

In the same way, such “minimalistic” team sizes for vessels operating on a stationary basis in the danger zone, for instance within the framework of ship-to-ship or offshore operations, are less expedient.

This is because an essential tactical advantage in the defence of armed encroachments – the speed and manoeuvrability of the own vessel – is lacking.

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Staff and sub-contractors More than three hundred “security service providers for pirate combat” meanwhile offer their services in the Internet or by email. However, less than two hundred can actually prove that they run a business. Just over half of these companies have their Head Office in Great Britain. The initial indication of a qualitative market leadership of British companies is, however, essentially the result of the cosmopolitan structure of many companies, which makes it difficult even for profound experts in the industry to correctly evaluate the staff numbers and the capability of individual security service providers.

In fact, a large proportion of the market consists of a high number of relatively small companies, which are managed by one or two “managing directors” in cooperation with various cooperation partners, in order to be able to dispose of a handful of independent sub-contractors to provide a task force in case of an order being concluded. Since many of these small companies lack the capacity and the required authorisations, they either work in association or they compete for possible contracts for larger companies. The few large security service providers make use of smaller providers in order to cater for peaks in demand.

Without an explicit enquiry, normally no information regarding the contractual conditions of the employed staff is provided. This practice is problematic in more than one respect: on the one hand, there are grave insurance and contractual shortcomings in the internal conditions of these structures, especially in view of the ever more frequently practised form of temporary employment.

On the other hand, hardly any security service provider has a functioning management for handling subcontractors in order to ensure that the procedural specifications of the main company are complied with during the assignment. This is currently reflected particularly in view of the assignment of sovereign forces (local security staff) within the framework of separate contractual agreements with various neighbouring countries, which are normally concluded at the expense of the client, without explicit clarification of matters of jurisdiction, liability and insurance.

Summary The above-listed items only represent a limited selection of criteria which should be taken into consideration beyond compliance and legal constraints, in order to see through superficial legally conformant protection concepts with reduced efficiency or total ineffectiveness. Besides a purely economic evaluation of the cost/benefit relationship, such superficial measures entail their own risks, for instance through misconduct or failure of employed staff, which is not necessarily covered by insurance.

AZ Chances you do not 3959_Layout 1 13.02.13 16:49 Seite 1

The regular evaluation of actual performance and capabilities of security service providers against the background of an escalating threat is of decisive importance for quality assurance of private maritime security service providers. Concretely, this means that procedures which were found to be good and correct can become obsolete within a short period of time. In this way a provider can comply with the (static) regulation and certification requirements for a long time, but not or only conditionally stand up to the requirements of the protection assignment. Vessel owners should therefore check the advertised procedures against the actual performance, especially for longer contractual conditions, according to the motto: “Check before you buy!”. i.b.s. was established in 1996 as a world wide operating private security provider with representative offices on Maldives, Oman and the US plus two branches in Germany and is certified by the German Government.

Since the year 2011 i.b.s. is a reliable provider of private armed maritime security services for MAERSK time chartered vessels.

Contact: www.bodyguardagentur.com

UK Shale Extraction Gathers Pace Shale gas could be fuelling British homes for the first time by late 2015, under plans from fracking firm Cuadrilla. The company is preparing to submit planning applications by the end of this month to frack at two sites in Lancashire next year. Francis Egan, Cuadrilla chief executive, said that, if successful, it planned to connect the test fracking sites up to the gas grid, in what would be a milestone first for the fledgling British shale gas industry. He also suggested homeowners hostile to fracking beneath their land should be entitled to only minimal compensation, if any.

Cuadrilla hopes to gain planning permission for its two sites, near the villages of Roseacre and Little Plumpton, in time to start drilling at the end of this year. They could then be fracked next summer “in a best case scenario”.

“After the initial flow test period, which is up to 90 days, if the flow rates look good then we would want to tie the well into the gas transmission system and flow it for a longer period to assess the flow rate over 18 to 24 months,” Mr Egan said.

The first shale gas could be flowing into the grid by the end of next year. Although quantities of gas from the exploratory sites would be relatively small, the step would be a symbolic first for the industry in Britain.

Just one shale gas well has been partially fracked in the UK to date, by Cuadrilla in 2011, with work halted when it caused earthquakes. Cuadrilla, however, faces a number of hurdles if it is to proceed as planned at its new sites. As well as planning permission it must obtain numerous permits from the Environment Agency. Industry sources fear any permission to frack may face judicial review challenge from environmental campaigners.

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Cuadrilla could also find its optimal drilling routes blocked by hostile homeowners. The company intends to drill down vertically at each of its sites then out horizontally west for up to two kilometres. It has signed agreements with farmers at each site allowing it to drill under their land – meaning at least some drilling will be possible - but not with all homeowners above the potential underground drilling area.

“If we were unable to get permission from householders we would have a smaller area, but we could still drill,” Mr Egan said.

Under current trespass law Cuadrilla would have to take hostile landowners to court to gain the right to drill beneath them, but the government is planning give companies an automatic right to drill.

Asked whether compensation should be paid to landowners, Mr Egan said: “I don’t think there’s any disturbance. If someone flies two miles above your house, do you get compensation?”

He said if compensation were due it should be “in the region” of a test case on the issue, involving oil drilling, in which Mohamed Fayed’s company Bocardo was awarded £1,000 for trespass under its land, but an appeal court judge later ruled this to be “generous” and suggested £82.50 would have been fair.

He insisted the law change was necessary in order to achieve widespread shale production in the UK. “If you can’t get access at all, if there’s no amount of money people are interested in, then the resource can’t be developed,” he said.

Taking homeowners to court would take “years” and “no company would hang around for that”, he said. “I don’t think companies will invest if they think it will take years to drill each horizontal well.”

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PetroSA Proud to be South

Africa’s National Oil Company

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PetroSA was formed in 2002 upon the merger of Soekor E and P (Pty) Limited, Mossgas (Pty) Limited and parts of the Strategic Fuel Fund, another subsidiary of the Central Energy Fund (CEF). The Petroleum Oil and Gas Corporation of South Africa (SOC) Limited (PetroSA) is the national oil company of South Africa and is registered as a commercial entity under South African law. PetroSA is a subsidiary of the CEF, which is wholly owned by the State and reports to the Department of Energy. The company holds a portfolio of assets that spans the petroleum value chain, with all operations run according to world-class safety and environmental standards. The core business activities of PetroSA are: the exploration and production of oil and natural gas; the participation in, and acquisition of, local as well as international upstream petroleum ventures; the production of synthetic fuels from offshore gas at one of the world’s largest Gas-to-Liquid (GTL) refineries in Mossel Bay, South Africa; the development of domestic refining and liquid fuels logistical infrastructure, and the marketing and trading of oil and petrochemicals.

PetroSA operates the FA-EM, South Coast gas fields as well as the Oribi and Oryx oil fields. The producing gas fields provide feedstock to the Mossel Bay GTL refinery. Outside South Africa, the company has exploration acreage in Equatorial Guinea and Namibia. The company’s GTL refinery produces ultra-clean, low-sulphur, low-aromatic synthetic fuels and high-value products converted from natural methane-rich gas and condensate using a unique GTL Fischer Tröpsch technology. Key commodities produced include unleaded petrol, kerosene (paraffin), diesel, propane, liquid oxygen and nitrogen, distillates, eco-fuels and alcohols. Its world-class synthetic fuels and petrochemicals are marketed internationally.

The PetroSA Centre of Excellence (COE) in Mossel Bay is responsible for recruiting and training the young people whose experience and expertise are essential to the future of our business = and our country.

Established in 2002, the COE was the first learning establishment dedicated to teaching the essential skills demanded by South Africa’s petrochemical sector. Accredited by the Chemical Industry and Energy Training Authority (CHIETA), it provides learnerships, NQF Levels 2-4, and qualifications for chemical electricians, instrument mechanics, fitters, riggers, welders and boilermakers. In addition, it is the only nationally accredited trade test centre in the southern Cape. By the start of 2012, 732 young learners had qualified through the COE. In addition, it has trained around 420 safety watchers, 258 mechanical operators and 504 floggers involved in the PetroSA refinery’s statutory shutdowns. Around 70% of young learners are recruited from local communities, with the others recruited nationwide. The centre’s 99% success rate testifies to the professionalism of its staff, the quality of its courses and the standard of its facilities. The COE is among PetroSA’s most important strategic assets. Its graduates are already making an invaluable contribution to our operations, onshore and offshore.

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Vision 2020 PetroSA’s Vision 2020 strategic objective is to become a fully integrated, commercially competitive national oil company, supplying at least 25% of South Africa’s liquid fuel needs by 2020. It aims to achieve this by sustaining the Mossel Bay GTL refinery as a profitable operation and use it as a platform to sustain the company; growing the company into a significant industry player, while ensuring security of energy supply for the country; transforming the company, the sector and society, and by ensuring that the above are carried out in line with the highest safety, health, quality and environmental standards. PetroSA continues to play an instrumental role in the country´s transformation through a range of activities that span the petroleum chain. Starting with the exploration and production of oil and natural gas, PetroSA sells petrochemical products to South Africa´s major oil companies and exports petrochemical products to the international markets.

Innovation PetroSA’s talent for innovation is recognised across the globe. In 1992, it started operating the world´s first gas-to-liquid (GTL) refinery at Mossel Bay. It remains the third largest GTL refinery amongst the five now operating worldwide. Here some of the cleanest fuels on the market are produced using some of the most environmentally friendly processes ever developed.

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COD Technology PetroSA operates the only conversion of olefins to distillate (COD) plant in the world – another example of its proven talent for innovation. The COD process involves synthesizing petrol and diesel by adding together short-chain unsaturated carbons to form longer chain hydrocarbons in the petrol and diesel boiling range. This is carried out at relatively high temperatures and pressures over a catalyst. PetroSA has used COD commercially technology since 1992. Today, it is rapidly emerging as a fuels technology of the future. This because rising oil prices are intensifying the demand for cheaper raw materials and more efficient, more cost-effective processes. At the same time, there is an accelerating worldwide trend towards high quality diesel − and COD diesel is exceptionally good. COD has a number of other important strengths. It produces relatively pure fuels that are low in sulphur and aromatics and meet stringent specifications such as Euro V. These fuels have significantly better exhaust emission properties than their conventionally produced equivalents. This makes them particularly suitable as blend materials for conventional and bio-derived fuels. What’s more, COD fuels have outstanding cold flow properties, making them highly attractive in countries with cold winters. In fact, diesel derived from COD has been used in special applications in the polar region, such as polar diesel. COD also produces specialty fuels and solvents that are low in aromatic content, and are used as indoor fuels and biodegradable drilling fluids. With their environmentally friendly qualities, these products are among the cleanest on the market.

Even though PetroSA is a COD technology leader with no followers, it continues to explore new ways of doing good things even better and more cheaply while reducing its dependence on traditional feedstocks, an important factor in today’s tough economic climate. In parallel, PetroSA is focusing on making its processes greener. In future, for example, it is possible that the company could use biologically derived components to feed the COD plant. With the future in mind, PetroSA has signed an agreement with the University of the Western Cape on that has to two important objectives: to further develop COD and its associated technologies for PetroSA; and to help develop South Africa’s human capital.

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PetroSA Commercial Business In 2006, PetroSA established a Commercial Business unit in direct response to the Government’s mandate to create opportunities for previously disadvantaged people in the petroleum industry. Initially, the unit focused on BEE wholesalers and later expanded its focus to include liquid petroleum gas (LPG). Today, Commercial Business wholesales and markets petroleum products to a mixed customer portfolio that includes wholesalers, state-owned enterprises (SOEs) and gas customers.

The department employs around 10 staff, most of them based in Cape Town, and accounts for 10% of PetroSA’s revenues. Establishing the Commercial Business unit reflects the company’s strong commitment to the principles of Broad Based Black Economic Empowerment (BBBEE). Its mandate is to provide the country with security of supply – and also drive transformation within the oil industry.

PetroSA continuously finds ways of supporting BEE in its business approach, especially when it comes to engaging and nurturing oil industry suppliers within previously disadvantaged communities. With the focus on developing productive and sustainable partnerships, especially in the B2B sector, PetroSA works closely with its customers to deliver quality, cost-effective products and services that will help them to achieve their long-term strategic objectives. In line with the principles of key account management, the Commercial Business unit has full-time sales managers whose main responsibility is to manage customer relationships. This dedicated service ensures that PetroSA stays as close as possible to the day-to-day operational and strategic needs of its customers. The company also plays an expert role in keeping customers fully up-to-date with important legislative and petroleum industry developments and issues. PetroSA endeavours to provide its customers with high quality products that meet the standards and specifications set out by the Department of Energy of South Africa. It sources products from a combination of supply points including its GTL refinery in Mossel Bay, together with hospitality supply agreements with other oil companies (OOCs) within South Africa. PetroSA recently acquired key depots in Tzaneen and Bloemfontein as part of its efforts to further reinforce its supply and logistics infrastructure. These assets will help to place the company among the strongest players in the Tzaneen and Bloemfontein markets. PetroSA also has a call centre in Cape Town, which is responsible for taking orders and answering customer queries.

Community Affairs At the heart of PetroSA’s culture lies an uncompromising commitment to uplifting and developing South African society, especially among previously disadvantaged communities. PetroSA recognises that it has a transformative role to play in giving everyone in our country the opportunities to make the most of their talents and achieve a decent standard of living.

Structured, targeted policy PetroSA’s vision for South Africa goes well beyond monetary gain. With the emphasis on sustainability, its most urgent priority is to ensure that its Community Affairs policy delivers long-term, tangible benefits to people at grassroots level.

Ultimately, PetroSA measures the returns on its community investment according to the sense of hope, pride and ownership it fosters among communities.

The Future As part of ensuring shared growth and development, the Government has placed a strong focus on infrastructure development and industrial manufacturing capacity. The Presidential Infrastructure Coordinating Commission (PICC) has been established to coordinate and monitor the implementation of the National Infrastructure Plan.

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Fittingly, ikhwezi is the Nguni word for ‘morning star’. As one of the most strategically important initiatives PetroSA has ever undertaken, Project Ikhwezi marks the start of a new dawn for its business. Formally approved by the PetroSA Board in March 2011, Project Ikhwezi is set to play an instrumental role in sustaining the life of the company’s gas-to-liquids (GTL) refinery in Mossel Bay. It involves tapping into gas reserves in Petro SA’s F-O field, which is located 40km south-east of PetroSA’s F-A production platform off the south coast of South Africa. Project Ikhwezi is set to extend the refinery´s life and consolidate the position of PetroSA at the heart of South Africa´s transformation. At the same time, the company is vigorously pursuing new investment opportunities across Africa as part of its commitment to supporting the continent´s accelerating development.

This Committee has identified 17 Strategic Integrated Projects (SIPs) to support economic development and address service delivery in the poorest areas and provinces. Project Mthombo has been identified as one of the critical infrastructure projects planned for the Eastern Cape region. Project Mthombo supports the National Development Plan and its vision to create a competitive, energy-efficient industry that can grow and leverage the benefits of regional cooperation and trade. The project is informed by the underlying principles of IPAP-2, which aim to create a good balance between import replacement and exports to reduce the balance of payments risk and improve on local supplier development; while increasing competitiveness in local procurement and support for BBBEE. Project Mthombo is aimed at ensuring security of supply for the country by reducing importation of petroleum products and producing cleaner fuels. The project is expected to result in significant macroand socio-economic benefits for the country.

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SPECIFICATIONS OF WILLEM DE VLAMINGH

SPECIFICATIONS OF THE TURNTABLE

Deadweight

6,500 tonnes

Capacity Turntable

5,400 tonnes

Length o.a.

115.0 m

Inside outer basket diameter

27.4 m

Breadth

23.0 m

Basket wall height (open structure) 6 m

Draught loaded

5.35 m

Max. speed at inner diameter

900 m/h

Dynamic positioning

DP2

Hydraulic driving motors

5 3

Total installed diesel power 8,975 kW Speed

13.0 kn

Loading arm movement degrees of freedom

Accommodation

35 + 24 (optional)

Loading tower tensioner

5 Te

Built in

2011

Deck tensioner

10 Te

INSTALLATION OF SUBSEA CABLES & UMBILICALS Jan De Nul Group ranks at the top of the international marine construction industry.

For the installation of large subsea cable systems, our shallow draft multi purpose vessel Willem de Vlamingh is equipped with a 5,400T capacity turntable. With trenchers installed on the aft deck and through accurate rock installation by means of her fall pipe system, she can provide burial and protection for the cable systems without the need for separate equipment mobilisation. Also our fall pipe vessel Simon Stevin, largest in the world in its kind, is equipped with cable installation equipment.

With these vessels, Jan De Nul Group offers its clients one vessel solutions for their multifaceted scopes reducing costs for mobilisation and demobilisation.

www.jandenul.com JAN DE NUL GROUP 34-36, Parc d’ActivitÊs Capellen I Luxembourg T +352 39 89 11 F +352 39 96 43 I info@jandenulgroup.com

Shell Group

Pioneering for the future

Shell is a global group of energy and petrochemical companies, headquartered in The Hague, the Netherlands, and its Chief Executive Officer is Ben van Beurden. The parent company of the Shell group is Royal Dutch Shell plc, which is incorporated in England and Wales.

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For over a decade, the global leader in Location Based IT solutions for the Oil and Gas sector.

Headquartered in Singapore and with operations on six continents, Astrata is a global leader in Location Based IT Solutions and Advanced Telematics Services. With a reputation for sophisticated high-end deployments, Astrata serves major enterprise and government customers worldwide with the provision of their mission critical fleet management, safety and security applications. Astrata’s turn-key solutions are based around a full range of proprietary hardware along with its best-inclass Global Location System, or GLS ™ for the control, management and profit maximization of high value assets.

Astrata Solutions Fleet Management Vehicle & Fleet Performance Driver Profiling and Safety Fuel Economy Remote Diagnostics Cold Chain Assurance Real-Time Sensoring Trailer Tracking & Management Cash In Transit Homeland Security Astrata Customer Sectors Transport/Logistics Retail Delivery Services Government Military Oil and Gas OEMs Fleet Leasing

We are pleased to announce that Omnitracs Europe (f.k.a.

Qualcomm Enterprise Services Europe) is now an Astrata Group company.

ASTRATA GROUP PTE. LTD.

WWW.ASTRATAGROUP.COM

Shell’s strategy to generate profitable growth remains to drive forward with its investment programme, to deliver sustainable growth and provide competitive returns to shareholders, while helping to meet global energy demand in a responsible way.

In Upstream Shell focuses on exploring for new oil and gas reserves and developing major projects where its technology and know-how adds value to the resource holders. In Downstream the emphasis remains on sustained cash generation from existing assets and selective investments in growth markets.

From the extraction of the fuel to the generation of electricity, modern gas-fired power plants emit around half the CO2 of modern coal plants. Natural gas is also the preferred fuel for combined cycle heat and power plants because it is densely packed with energy that is released when burned. In these plants the heat produced from generating electricity is used for industrial or domestic heating, raising overall efficiency.

Renewable energy sources could supply up to 30% of the of the global energy supply by 2050.

But wind and solar can only provide intermittent power, as the wind drops or the sun goes down. Fortunately natural gas can provide flexible back-up power – since it can quickly ramp up and down – allowing more plants to also integrate wind and solar.

Thanks to the backup it provides, natural gas can help the world to move towards greater use of renewable energies.

Shell continues to use advanced technologies and an innovative approach to unlock more natural gas resources to help meet global energy demand.

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Building The Future At Technip, we are building the future through today’s most ambitious energy infrastructure projects. We are also creating the conditions that will generate tomorrow’s game-changing innovations by developing our people.

Entrepreneurial attitude, investment and anticipation are at the very heart of how we are taking it further.

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Prelude FNLG project Shell announced in 2011 its investment decision for Prelude FLNG, a floating liquefied natural gas facility to be located off the coast of Australia. This would be the first of its kind in the world.

Hundreds of engineers from across the world have combined their experience and expertise to design the world’s largest floating offshore facility. It will be used to help open up new natural gas fields at sea that are currently considered too costly or difficult to develop.

Shell has five decades of experience in the liquefied natural gas (LNG) industry and is a pioneer in this field. Chilling gas to -162° Celsius (-260°F) turns it into liquid and shrinks its volume by 600 times, allowing it to be shipped to far-off towns and cities where the energy is needed. Moving the production and processing out to sea where the gas is found is a major innovation that brings huge new energy resources within reach. It also avoids the potential environmental impact of constructing and operating a plant on land, including laying pipelines to shore and building other infrastructure. The first site to use Shell’s FLNG will be the Prelude gas field, 200 kilometres (around 125 miles) off Australia’s northwest coast.

Shell has progressed the Prelude FLNG project at rapid pace. “This is revolutionary technology developed

by Shell,” says Neil Gilmour, Shell Vice President Integrated Gas Development. “It has the potential to change the way we produce natural gas.”

The Prelude FLNG facility will produce at least 5.3 million tonnes per annum (mtpa) of liquids: 3.6 mtpa of LNG – enough to easily satisfy Hong Kong’s annual natural gas needs – 0.4 mtpa of liquefied petroleum gas and 1.3mtpa of condensate (equivalent to 35,000 bbl/d). Once complete, the facility will have decks measuring 488 by 74 metres, the length of more than four football fields. With its cargo tanks full it will weigh roughly six times as much as the largest aircraft carrier.

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More than 600 people around the world spent over 1.6 million hours working on different design options for the facility. “This has never been done before,” says Neil. “We had to find ways to adapt our technology for off shore.”

Despite its impressive proportions, the facility is one-quarter the size of an equivalent plant on land. Engineers have designed components that will stack vertically to save space. The operating plant, for example, will be placed above LNG storage tanks. They also came up with the idea of tapping the cold of the ocean depths by pumping water to help cool the gas, avoiding the need to for extra equipment on deck. “For LNG you need a cooling medium, like in your fridge at home,” says Neil. “We’ve invented a system to take water from deep in the ocean.” An assembly of eight one-metre diameter pipes will extend from the facility to about 150 m below the ocean’s surface.

It will deliver around 50,000 m3 of cold seawater each hour. This helps to cool the gas from below the facility, saving deck space.

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The FLNG facility is designed to operate and stay safely moored even in the most extreme weather conditions. The sheer size of the full-scale facility will help it to withstand very high winds and giant waves. In addition, it will be secured in place by one of the largest mooring systems in the world. A 93-metre (305-foot) high turret, spacious enough to house the Arc de Triomphe, will run through the facility. Four groups of mooring lines will anchor it to the seabed. The system allows the facility to turn slowly in the wind – absorbing the impact of strong weather conditions – while remaining moored over the gas field. It can stay safely moored at sea even during the most powerful cyclones. This saves valuable production days that would otherwise be lost on disconnecting the facility and moving it off the field.

Three 6,700-horsepower thrusters will sit in the rear of the facility. Two of these will operate at any one time to turn the facility out of the wind and allow LNG carriers to pull safely alongside to load.

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The facility’s storage tanks will be below deck. They can store up to 220,000 m3 of LNG, 90,000 m3 of LPG, and 126,000 m3 of condensate. The total storage capacity is equivalent to around 175 Olympic swimming pools.

The project will create around 350 direct and 650 indirect jobs. Recruitment of staff to operate the facility will ramp up during 2013 and 2014. Prelude will also provide taxes and revenue to Australia, create opportunities for local businesses and result in Shell spending billions in capital and operating expenditure.

The Australian Government gave the Prelude FLNG Project environmental approval on November 12, 2010.

The Prelude FLNG Project will use significantly less materials, land and seabed area than developing the same gas via a similar onshore facility.

Developing the gas at the location of the gas field will reduce impact on sensitive coastal habitats as FLNG avoids the need for shoreline pipe crossings, dredging and jetty works. Product carriers will be far from coastal reefs or whale migration routes.

In December 2013 the 488-metre-long hull of Shell’s Prelude FLNG facility was floated out of the dry dock at the Samsung Heavy Industries (SHI) yard in Geoje, South Korea, where the facility is currently under construction. Once complete, Prelude FLNG will be the largest floating facility ever built.

“Making FLNG a reality is no simple feat,” said Matthias Bichsel, Shell Projects & Technology Director.

“A project of this complexity – both in size and ingenuity – harnesses the best of engineering, design, manufacturing and supply chain expertise from around the world. Getting to this stage of construction, given that we only cut the first steel a year ago, is down to the expert team we have ensuring that the project’s critical dimensions of safety, quality, cost and schedule are delivered.”

Shell is the operator of Prelude FLNG in joint venture with INPEX (17.5%), KOGAS (10%) and OPIC (5%), working with long-term strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium).

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Gas to Liquid – Pearl GTL project Today, more than ever, energy powers human civilisation. At the same time, the world needs to mitigate the threat of climate change by reducing greenhouse gas emissions. An affordable, environmentally acceptable and technically proven option to power and sustain people’s lives is to increase the world’s reliance on natural gas, the cleanest-burning fossil fuel. Shell is one of the world’s largest suppliers of natural gas.

For most countries, using more gas in power generation can make the largest, fastest and most affordable contribution to meeting short-term emission-reduction targets. Natural gas will play an increasingly significant role in reducing CO2 emissions in the coming decades if combined with renewable energy and carbon capture and storage technology (CCS). But both of these will take time to achieve widespread use. As technology advances, so does the ability of energy companies to unlock the world’s gas resources. Technically available gas resources equal 250 years of current production, according to the IEA. Natural gas is abundant, acceptable and affordable. Shell believes that it is an important component of a sustainable global energy mix. It is helping to meet the world’s growing energy demand while limiting CO2 emissions by delivering more cleaner burning natural gas. Shell is also pioneering new techniques to help tap difficult-to-reach natural gas deposits. These include unlocking natural gas trapped tightly in rock pores, producing gas in harsh sub-Arctic conditions, and cooling gas at sea to turn it into liquid for shipment by carriers. Shell develops groundbreaking technology that transforms natural gas into valuable liquid products. A good example is Pearl GTL, the world’s largest gas-to-liquids plant, located in Qatar.

The Pearl GTL project was developed in two phases after major construction was completed at the end of 2010. The first phase started up in early 2011 and exported the first commercial shipment of gasoil in June 2011. Phase 2 of the plant started up in early November 2011 by bringing in sour gas from offshore wells. The whole plant ramped up to full production towards the end of 2012. Pearl GTL now runs some of the largest gas processing trains in the world and is doing so safely and reliably.

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Upstream, Pearl GTL produces and processes around 1.6 billion cubic feet a day of wellhead gas from the world’s largest single non-associated gas field - the North Field - which stretches from Qatar’s coast out into the Gulf. The plant will process about three billion barrels-of-oil-equivalent over its lifetime. The offshore scope includes 22 development wells, two unmanned wellhead platforms in about 30 metres of water and two 30-inch pipelines running about 60 km to shore.

Onshore gas-processing facilities treat the sour, rich wellhead gas to remove contaminants such as metals and sulphur and further extract natural gas liquids: ethane for petrochemical processes; liquefied petroleum gas (LPG) for domestic heating and cooking; and condensates as a feedstock for refineries. Elemental sulphur produced as a by-product is turned into pellets and shipped to the nearest market to make hydrosulphuric acid, fertilizer or other valuable products. The pure gas, or methane, that remains then flows to the GTL section of the plant, where it is combined with oxygen and converted in a state of the art three-stage process into a range of gas-to-liquids products using Shell proprietary technology.

The proprietary Shell Middle Distillate Synthesis (SMDS) process is at the heart of the two-train Pearl GTL plant. Developed over more than three decades, the process has been proven on a commercial scale at the 14,700-barrel-per-day Bintulu GTL plant in Malaysia, which began operation in 1993. Shell has over 3,500 patents across all stages of the GTL process. The Bintulu experience helped improve the chemical catalysts integral to the SMDS process. These improvements help reduce unit capital expenditure, allow faster processing and should enable Shell to produce greater volumes of fuel and other products at Pearl.

The plant includes systems to capture energy given off during the processes, converting it to steam that drives the plant’s compressors and generates electricity.

The water recycling plant – the largest of its kind – treats water for re-use in steam production and cooling. It can process 45,000m3 per day of water, without discharging any liquids from the plant.

Building on its extensive experience marketing GTL products from Bintulu, Shell exports Pearl’s high value, differentiated premium products, including GTL gasoil, kerosene, naphtha, normal paraffin and base oils for lubricants, to markets around the globe.

Together with Qatargas 4, Pearl GTL represents a multi-billion dollar commitment to Qatar by Shell and the project was developed in line with its sustainable development principles.

The project was designed to use technology that helps limit any environmental impact. The facility is designed to use every drop of water as part of our approach to not release any liquids from the plant. Pearl GTL’s industrial water processing plant is the world’s largest, recovering, treating and re-using all the industrial process water. With a capacity to treat 280,000 barrels a day of water, Pearl GTL’s water treatment plant is comparable to that for a city of 140,000 people.

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Tight and Shale Gas Across the world, in North America, China, Australia and the Ukraine, Shell is exploring for and producing tight and shale gas is natural gas held in rock pores up to 20,000 times narrower than a human hair. Often the gas will not flow freely into a well, or it flows at a much slower rate than in normal gas reservoirs. The amount of gas that would be recovered from each well would be low but the overall volume of available gas in the reservoir can be much higher than conventional gas reservoirs. Technology is needed to produce it safely, economically and in a way that helps protect the environment.

Shell has decades of production experience with tight gas – in the North Sea, mainland Europe, the USA and Canada. Over time it has found ways to safely develop the fields and produce the gas with greater efficiency, lowering costs and limiting our environmental impact.

Engineers must drill many more wells than in a conventional field to access volumes large enough to make a project worthwhile. Shell uses seismic sensors and advanced software to map out underground fields and pinpoint the best locations to drill.

Shell uses steerable drills to extend many wells horizontally into the rock, often up to 2.5 km (1 mile) away, from one location on the surface. This also helps to increase efficiency and lower the environmental impact of the operation. The rock is cracked open at selected intervals within the well by pumping fluids into the well bore at high pressure, a technique known as hydraulic fracturing.

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The fluids are around 99% sand and water, with 1% chemicals added to help the gas flow more freely.

This creates hairline fractures in the rock, opening the microscopic pores in which the gas is trapped, allowing it to flow out and be captured.

Shell started producing tight gas in the early 1950s in south Texas, but it is only in recent years that technologies and improved efficiency have allowed Shell to produce high volumes of gas economically from some tight gas fields.

Now Shell is producing enough gas to meet the energy needs of nearly 6 million homes from six locations in North America: Groundbirch and Deep Basin (Canada); Pinedale (Wyoming); Haynesville (Louisiana); Eagle Ford (new Texas acreage) and Marcellus Shale (acquisition of East Resources in Pennsylvania.) Pinedale alone produces around 350 million cubic feet of gas a day, enough to power 1.6 million US homes. In Western Canada Shell acquired the Duvernay natural gas company in 2008. It also produces enough tight gas in the Groundbirch area of British Columbia, Canada, to meet the needs of over 400,000 Canadian homes.

Building on its experience in North America, Shell is developing tight and shale gas operations globally, including in South Africa and, together with XOM, in the Lower Saxony Basin of Germany.

It is producing 117 billion cubic feet of tight gas a year at the Changbei field in China – enough to power 12.5 million Chinese homes– and is exploring for more resources in other parts of the country including the Sichuan and Ordos Basins.

In Australia Shell acquired Arrow Energy in 2010 in a $3.5 billion joint deal with PetroChina, to produce another form of tight gas called coalbed methane – natural gas found in coal seams.

In 2011, Shell re-signed an agreement with the largest state gas production company, Ukrgasvydobuvannia, to jointly explore and produce tight gas in Eastern Ukraine, and in 2013 it signed a production-sharing agreement to develop the approximately 8,000 km² Yuzivska field in the same area.

At all its tight gas operations Shell uses hydraulic fracturing to break open rock and release the gas. A recent study conducted by the Royal Society and Royal Academy of Engineering on behalf of the UK government concluded that fracking is safe “as long as operational best practices are implemented and robustly enforced through regulation”.

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Other research, such as the European Parliament report on the environmental impacts of shale gas and shale oil extraction activities and a study conducted by the Royal Society and Royal Academy of Engineering on behalf of the UK government, support these findings.

The technology has been developed and refined over 60 years, and is today used in drilling thousands of wells each year. Shell takes many steps to protect the local environment. Fracturing typically takes place a kilometre or more below drinking water supplies. Concrete and steel barriers are inserted into the wells as standard practice to prevent any drilling or fracturing fluids from entering into local water supplies.

As Shell expands its activities in these fields it remains sensitive to specific social and environmental challenges. These vary according to region. Pinedale, for example, is situated in the rural Rocky Mountain region and teems with wildlife: antelope, mule deer and sage grouse are common here.

Shell has implemented a number of environmental measures with the aim of protecting local biodiversity, keeping air and water clean, and reconstructing the land once drilling ends. 
In the Shaanxi Province of China it has supported a programme to train doctors and has helped to develop and equip schools. 

China and Europe are not yet experiencing the same transformation in energy security as North America. But tight gas is expected to play an important role in providing these regions with a cleaner, more secure energy supply and we are working to develop its potential.

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Investing in a Safe and Sustainable Future Shell plans to spend $100 billion from 2011-2014 to support new energy production. It is entering more challenging environments to unlock new resources and boosting production from existing fields, at the same time using new technologies and an innovative approach to limit the impact on the environment and find effective ways to engage with communities near to its operations.

Shell is developing cleaner energy sources, such as natural gas, the cleanest burning fossil fuel. From the extraction of the fuel to the generation of electricity, natural gas power plants emit around half the CO2 of coal power plants. Natural gas complements wind and solar power, which need a highly flexible backup supply when the wind stops or the sun goes down.

For its customers Shell offers advanced fuels and lubricants to help boost fuel efficiency, as well as driving tips and programmes to help save fuel.

The company believe the most practical, commercially viable way to reduce CO2 from transport fuels over the next 20 years will be lower-carbon biofuels. Already one of the largest suppliers of biofuels, Shell has moved into biofuel production. Through the RaĂ­zen joint venture in Brazil, Shell is producing the lowestcarbon biofuels commercially available today in the form of ethanol from Brazilian sugar cane.

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Out on the roads, Shell technology allows surfaces to be laid at lower temperatures, with lower CO2 emissions.

Shell has been developing scenarios to explore the future since the early 1970s. Scenarios are stories that consider “what if?� questions. Whereas forecasts focus on probabilities, scenarios consider a range of plausible futures and how these could emerge from the realities of today. They recognise that people hold beliefs and make choices that lead to outcomes. Shell’s scenarios team considers changes such as in the global economic environment, geopolitics, resource stresses such as water, greenhouse gases, and energy supply and demand to help business leaders make better decisions.

In Canada oil sands, Shell is investing in debottlenecking opportunities and carbon capture and storage to improve the efficiency and environmental footprint of this asset. It is permitting for further larger expansions for the longer term.

Shell also has growth projects underway in Kazakhstan, Iraq and Nigeria all of which have significant resource positions, but each has its unique challenges, which require a measured investment pace.

Shell is a leader in an industry expansion into offshore arctic regions. In 2012 it drilled top holes off the north coast of Alaska, resuming activity there after a 10-year industry absence. This is a high potential exploration province, however any potential development is at least a decade away from fruition.

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Sikorsky S-76D™ helicopter is

Entering Service

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When launch availability is critical to your mission, you need a machine that is ready to go when you are.

Sikorsky’s S-76D helicopter is your solution. It has all-weather capability, including optional de-ice for launch into known icing conditions, as well as a leading-edge cockpit that enhances situational awareness. A smooth ride and the quietist acoustic signature in its class make those in the air and on the ground happy. These features offer aircrews and operators something the competition cannot: complete confidence in mission performance.

Building on more than 6 million flight hours of the proven S-76® helicopter series, the modern S-76D makes a legendary aircraft even better. Its balance of excellent performance, improved safety and unrivalled efficiency make it the standard for helicopters in its class.

Sikorsky S-76D: It’s ready to go. Are you?

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