Oil, Gas and Shipping Magazine by Oil, Gas and Shipping

ISSUE 79 www.ogsmag.com

Hyundai Heavy Industries: The happy heavyweight

The Editor

Editor

The

Martin Ashcroft

A Greek Odyssey (or should that be Grodyssey?)

ortmanteau words are all the rage. I don’t know if other languages do this, but English speakers love to join words together to name a new concept. Some trip off the tongue so naturally that you can’t see the join; ‘motel’, for instance, being a perfect conjunction of ‘motor’ and ‘hotel’, while ‘workaholic’ could describe some of our readers with clinical precision. Others can be horribly clumsy, however, like the awkward combinations used by some US border towns. Texarkana sounds smooth enough, but could you live in Florala or Marydel? A clumsy word currently making headlines is ‘Grexit’, a construction as ugly as the concept it describes – a Greek exit from the euro. Writing about current affairs in a monthly magazine is always risky, because events can easily overtake you before the publication reaches the reader. I worried about this until I remembered that I predicted a Greek exit from the euro three years ago in another magazine, and it hasn’t happened yet. The arguments for a Greek exit appeared compelling at the time, but it seems that the Eurozone has become a club with no way out. The eminently quotable Groucho Marx said he didn’t want to belong to any club that would have him as a member. If the Greeks had said that a few years ago, they may not have been in the mess they are today. With their economy on the rocks, however, they can’t afford to leave the club as long as it keeps putting lifeboats in the water. Europe can’t afford to abandon Greece, either. The worst possible

outcome for the European Union would be for a member in economic difficulties to go it alone and survive the storm. The Greeks have taken full advantage of that knowledge throughout the bailout negotiations. While economists analyse the economic consequences of austerity measures and fiscal policy, however, the ties that bind Greece to Europe are more about politics than economics. It’s been quite clear since the Maastricht Treaty in 1992 that there were forces in Europe that sought a closer political union than they admitted at the time. Every significant decision since then has brought the continent closer to becoming the United States of Europe. In their latest general election in January 2015 the Greeks had a choice of 18 parties and four party coalitions. After choosing a government, six months later they had a referendum on a European bailout offer, and after the people voted ‘no’, the government went back to Europe and accepted a bailout with less favourable terms. Perhaps you can have too much democracy, after all. But it’s ironic, however, that in the birthplace of democracy, where general elections and referenda are de rigueur, approval of the latest bailout will effectively render voting in Greece redundant, as it will result in its being ruled by the European institutions that own its economy, rather than its own elected politicians. The people who want to rule Europe now, are using banks instead of tanks. www.ogsmag.com

Contents Page 22 Cover story: Hyundai Heavy Industries: The happy heavyweight

The Editor: Greek Odyssey

IMarEST strengthens expansion into Asia-Pacific

News in Brief

The drachma drama

Major milestone for Craig Group

Argentina & China lead shale development

Lancashire (UK) wrong to block fracking

Peak launches FlexiDrift for accurate drift runs

Chapman Freeborn launches courier service

Tullow Oil: Exploring Africa

Tampnet extends 4G coverage

Marriott Drilling Group

Container shipping lucky to break even in 2015

Mercy Ships: A son’s wish, a father’s promise

OPEC pumps 31 million barrels of crude oil per day

Oil, Gas and Shipping media information

Kiefner & Associates relocation

Offshore Europe 2015

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News and features

News in Brief Global Marine Systems has been contracted to provide personnel and equipment to support the delivery of a submarine fibre optic link between BP platforms in the North Sea. Global Marine will provide skilled jointing personnel to work with its client Subsea 7 to deliver platform-to-platform connectivity from the existing Clair platform, 50 miles west of the Shetland Isles, to the new Clair Ridge platform. The team will work aboard Subsea 7’s vessel Seven Falcon.

Grampian Devotion marks major milestone for Craig Group

* * *

German-based BASF SE has selected Fluor Corporation as its global engineering partner for future chemical and petrochemical plant projects around the world. The services agreement includes engineering, procurement, project management, construction management and other services. Headquartered in Irving, Texas, Fluor has enjoyed a successful working relationship with BASF over the past four years through projects undertaken in Asia, Europe and North America. * * * International oilfield services company Expro has been awarded new contracts worth in excess of $100 million over three years from Tullow Oil plc, Africa’s leading independent oil company. Expro will work across Tullow Oil’s assets in Ghana, including the Jubilee Field and the Tweneboa-Enyenra-Ntomme (TEN) field project. The company has invested over $32 million in Ghana since entering the market in 2008 to support key clients like Tullow. * * * The UN General Assembly has adopted a formal resolution to develop a legallybinding treaty for the conservation of marine biodiversity. Under consideration are marine protected areas, environmental impact assessment (EIA) requirements, the transfer of marine technology and a regime for managing marine genetic resources, all of which have potentially significant implications for shipping, oil and gas, fishing, marine mining, biotechnology, submarine cable, and related sectors including maritime law, insurance and investment.

orth Star Shipping has taken delivery in Aberdeen of its new emergency response and rescue vessel (ERRV) Grampian Devotion, the eighth and final D-class IMT-950 ERRV that the company has had specially built as part of a major £110 million investment programme. “The delivery of the Grampian Devotion marks a key milestone in our investment programme because it both completes our D-class range of new builds and further enhances our fleet of vessels which are at the forefront of safety, technology and capability,” said Callum Bruce, managing director of North Star Shipping which is operated by Craig Group. North Star Shipping has added seven other D-class IMT-950 ERRVs to its fleet since 2011 with the company’s investment plan due to be complete over the next year with the launch of two F-class IMT958 multi-role ERRVs, the Grampian Fortress and Grampian Freedom. The D-class vessels, 50 meters in length, are outfitted as a minimum with one

daughter craft, one fast rescue craft and state-of-the-art rescue facilities. The F-Class vessels, which are slightly larger at 58 meters long, feature diesel electric propulsion via twin Azimuth Stern Drives. They will also be equipped with daughter craft and fast rescue craft as well as being able to transfer and store limited deck cargo and provide offshore locations with fresh water and fuel if required. Since 2003, Craig Group has invested £350 million in 26 new vessels for North Star Shipping including the Grampian Devotion. The company’s fleet, which now stands at 38 vessels, includes a mix of platform supply, tanker assist, ROV support and ERRVs. The company supports more than 50 installations in the UKCS and has rescued 73 people in the North Sea. Douglas Craig, chairman and managing director of Craig Group, said: “The arrival of the Grampian Devotion underlines our commitment to ensuring that we continue to deliver a safe, high quality and costeffective service to our clients.”

Lancashire wrong to block fracking

he Centre for Policy Studies has called the decision by Lancashire County Council to block shale gas exploration at the Preston New Road site “a terrible mistake”. The independent think tank released a statement saying that the economic, environmental and geopolitical arguments are overwhelmingly in favour of fracking, because shale gas

could provide thousands of jobs, boost productivity and increase energy security at a negligible risk to the environment. The organization believes the Government should consider allowing exploratory drilling to go ahead without requiring express planning permission if other relevant environmental permits are in place. www.ogsmag.com 9

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News and features

Chapman Freeborn launches courier service in Aberdeen

Tampnet extends 4G coverage in Norwegian North Sea

hapman Freeborn Airchartering has expanded its global on board courier (OBC) business with the launch of a new Aberdeen-based handcarry team dedicated to serving the North Sea energy market. “With existing cargo charter clients regularly asking us for on board courier services it was a logical step to permanently base an OBC team in Aberdeen,” said Jamie Evans, Chapman Freeborn’s sales manager for energy related services. “It means we can now provide the full range of services – whether the client is looking to move a 1kg component by courier or a 100-ton piece of drilling equipment by charter.” The company manages all of the details for the urgent shipment, from flight bookings to entry requirements and customs regulations, anywhere in the world. Available around the clock, its fully insured and trained hand-carry couriers hold passports and visas for countries that are traditionally difficult to access. “Chapman Freeborn’s OBC service is different to other express models because the cargo isn’t being passed around or moving from warehouse to warehouse, with the added risks of being misplaced,” added Alex Berry, global sales and marketing director. “Until they invent teleportation there really isn’t a quicker way of delivering a time-critical item from A to B.” Chapman Freeborn OBC was established in 2006 and is a specialist subsidiary of the Chapman Freeborn Group, a leading aircraft charter broker.

ampnet is strengthening its 4G LTE (Long Term Evolution) coverage in the southern part of the Norwegian side of the North Sea by commissioning a new 4G base station in the Ekofisk area. The added coverage complements and partially overlaps the significant coverage around the Valhall area. “This is yet another milestone for our roll out of 4G coverage in the North Sea,” says Tampnet CEO, Per Helge Svensson. “The service has proven a great success for the last two years, and this adds coverage to an extremely busy area of the North Sea. The coverage will provide a cost effective way of connecting to a proper fibre based, low-latency broadband network. Our network currently is and will remain the largest offshore 4G network in the world as we develop it further and we believe the service we offer will be of great benefit to

the oil & gas industry in the North Sea.” “For every 4G base station coming online we see the demand for low latency communications grow,” comments Tampnet sales manager, Per Atle Sørensen. “The feedback from our customer base has been excellent and is very motivating. With our recent base station additions and those planned in the coming months providing near contiguous coverage, our drilling and marine based customers are focusing on signing fleet wide agreements.” Tampnet operates the largest offshore high capacity communication network in the world, carrying traffic for approximately 200 platforms, FPSOs, rigs and vessels in the North Sea serving both the Norwegian and the UK sectors. Established in 2001 by Statoil, Tampnet was acquired in November 2012 by EQT. www.ogsmag.com

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News and features

Container shipping will be lucky to break even in 2015

toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening the profitability of the liner shipping industry for the rest of 2015, according to the Container Forecaster report published by global shipping consultancy Drewry. Earlier this year Drewry forecast that container shipping carriers would collectively generate profits of up to $8 billion in 2015, but its revised view now is that it will be lucky to break even this year. This means that some lines will be back in the red by the end of 2015. The only way to address this is for carriers to take much more radical action to address overcapacity which is now plaguing virtually all major trade routes. Drewry estimates that this year average global freight rates will decline at their fastest pace since 2011, when the fall in industry unit revenue was as great as 10 per cent. Average global head haul utilisation

fell to 83% during the first quarter of 2015, though this alone should not have precipitated the deterioration in spot rates. However, the perceived weakness pushed many lines into rate-war mode across a number of key trade routes. With the exception of the westbound Transatlantic and Asia to Middle East trades, rarely have so many major routes performed so poorly all at once. Spot freight rates have reached historical lows on the Asia to Europe and Asia to East Coast South America trades, which have been driven by carriers’ fear of losing volume base cargo to competitors as well as impending new build deliveries. Each quarter brings another 10 to 15 ULCVs (ultra large container vessels) into the market and the resultant cascade of tonnage into the TransPacific, Latin American and Asia-Middle East trades is having a genuine detrimental knock-on effect. “There are not enough good homes for

ships of over 8,000 teu where they can be placed without doing some damage to the supply/demand balance,” said Neil Dekker, Drewry’s director of container shipping research. “Ocean carriers do not want to idle these expensive assets. “The order book is starting to get out of control, with another 1.14 million teu added since January. Carriers’ emphasis on ordering so many big ships is starting to backfire and virtually all major head haul trades are plagued by overcapacity. We are entering a new era which will be dominated by big ships and all ocean carriers need to be thinking of average head haul trade route fill factors of 8085% as the norm, rather than 90% or more. They cannot keep adding capacity and expect there to be no substantial impact on unit revenues.”

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News and features

OPEC pumps 31 million barrels of crude oil per day in June

il production from the Organization of the Petroleum Exporting Countries (OPEC) totaled 31.28 million barrels per day (b/d) in June, up 170,000 b/d from May and the fourth consecutive monthly increase since February, as Saudi Arabia and Iraq pushed out more oil, according to a Platts survey of OPEC and oil industry officials. “This is the highest monthly level since August 2012, when the survey estimated output at 31.54 million b/d,” said Margaret McQuaile, senior correspondent for Platts. “At that point, output was on the way down. Now, output seems to be on the way up, and at a time when the market could be looking at a lot more oil from Iran.”

The June total leaves OPEC pumping nearly 1.3 million b/d in excess of its official 30 million b/d ceiling. Top producer, Saudi Arabia, driver of the oil producer group’s current market share strategy, further increased its output to produce an average 10.35 million b/d in June. A spike in air-conditioning demand has traditionally boosted the volume of crude burned directly in the kingdom’s power plants during the summer months. In addition, new refineries are pushing domestic use of crude oil higher. Iraq pushed volumes from its Gulf terminals up by nearly 330,000 b/d to more than 3 million b/d following the commissioning at the beginning of the

month of a new storage and pumping system at the onshore Fao terminal. As well as Basrah Light, Iraq is now exporting the newly-introduced Basrah Heavy crude oil. But volumes exported from Turkish Mediterranean port Ceyhan via the pipeline system of semi-autonomous Iraqi Kurdistan fell by more than half from May levels, raising a question mark over the future of an oil export agreement signed by Baghdad and Erbil late last year. OPEC said after its 5 June agreement that members had been urged to adhere to the 30 million b/d ceiling. There is, however, no mechanism in place to enforce any level of adherence as no individual country quotas have been distributed under the ceiling.

Kiefner and Associates relocates in response to growing business

engineering and technical services provider Kiefner and Associates has moved to a new location in Columbus, Ohio. Its new facility offers 40,000 sq ft of purpose built office, laboratory and training space, the first time the company has had all three functions within one building. Complete with a new laboratory, the testing facility spans over 20,000 sq ft to

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News and features

IMarEST strengthens expansion into Asia-Pacific

he Institute of Marine Engineering, Science & Technology (IMarEST) has strengthened its expansion in the Asia-Pacific region by appointing David Kelly MCIM MIMarEST, currently Head of Marketing at IMarEST’s London headquarters, as Director of Asia-Pacific.

The new position, based in Singapore, will be taken up in August this year and has been created to support the existing Asia-Pacific team and to drive growth and awareness of the Institute in the region. David Loosley, IMarEST Chief Executive, commented: “David is the perfect candidate to further our exciting expansion in the very important Asia-Pacific region. He brings a great depth of knowledge and experience in creating and delivering strategies for developing business and this, coupled with his enthusiasm, is sure to generate some very successful activity here.” A Chartered Marketer, David graduated with a degree in Marketing and Public Relations and rose through the ranks to become Marketing Manager at IWSC Group Ltd. before going on to manage Group Sales and Marketing. He joined the IMarEST in 2012 and has since spearheaded the development and execution of a completely reinvigorated marketing strategy which has fortified the Institute and supported rapid growth over the past three years. Of his new role he said, “There are huge opportunities for the marine sector across the Asia-Pacific region and I am thrilled to be able to support the growth of the Institute’s reach at such an exciting time. I am very much looking forward to working with the executive team and members across the region to increase our activity in this part of the world, with respect to events, conferences, training, Special Interest Groups, local branches and our technical output.”

About the Institute of Engineering, Science and Technology (IMarEST)

The IMarEST is an international membership body and learned

society for all marine professionals. It is the first Institute to bring together marine engineers, marine scientists and marine technologists into one international multi-disciplinary professional body. It is the largest marine organisation of its kind with a worldwide membership of over 15,000 based in over 100 countries. Working with the global marine community, the IMarEST promotes the scientific development of marine engineering, science and technology, providing opportunities for the exchange of ideas and practices and upholding the status, standards and expertise of marine professionals worldwide. The IMarEST has a growing network of Corporate Marine Partners who benefit from a tailored programme to support each global organisation’s specific requirements. Packages provide companies with a competitive edge by investing in staff and supporting Initial and Continuous Professional Development, supporting local, national, or international promotional programmes, providing specialised recruitment solutions, accrediting training courses, creating exclusive online networking and collaborative working, developing bespoke networking events and providing company employees with access to one of the largest online knowledge resources – the IMarEST’s extensive Virtual Library. The IMarEST is a respected authority in every maritime country. It is a Non-Governmental Organisation with consultative status at the International Maritime Organization (IMO), observer status at the Intergovernmental Oceanographic Commission and International Hydrographic Organization (IHO), and it has special consultative status with the Economic and Social Council of the United Nations (ECOSOC), which facilitates its access to other international intergovernmental meetings where its specialized marine expertise is of particular use, e.g., the United Nations meetings on Areas Beyond National Jurisdiction, the Intergovernmental Panel on Climate Change (IPCC) and the work of the International Seabed Authority on marine mining. It is a nominated and licensed body of the Engineering Council (UK), a member of the Science Council and has significant links with many other maritime organisations worldwide. IMarEST runs a series of industry leading and technically excellent events and conferences as well as publishing the internationally recognised publication, The Marine Professional. www.ogsmag.com 21

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Hyundai Heavy Industries: The happy heavyweight

In a little over 40 years, Hyundai Heavy Industries has grown into the worldâ&#x20AC;&#x2122;s leading heavy industry conglomerate with global operations across seven business divisions from shipbuilding to electrical installation and industrial process plant

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hung Ju-yung, the late founder of the Hyundai Group, created Hyundai as a construction company in 1947. Chung decided to enter into shipbuilding in the early 1970s despite having no experience, capital, or shipbuilding technology. Despite these challenges, the company received orders for two 260,000-DWT crude oil tankers from Greek magnate George Livanos while Hyundai’s Shipyard was still in the planning stages.

In March 1972, ground was broken on an empty stretch of beach in Ulsan to construct what would become the world’s largest shipyard. Hyundai then started building the two oil tankers and 24

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the shipyard at the same time. Two years later, in 1974, Hyundai held a ceremony to simultaneously name the two tankers and dedicate the shipyard. Capturing the imagination of the international maritime community, the event was a historical first step for Hyundai Heavy Industries. Now the world’s biggest shipbuilder and a leading integrated heavy industries company with seven business divisions, 25 overseas-incorporated firms and 17 overseas subsidiaries, Hyundai Heavy Industries (HHI) has grown dramatically through innovation. A decade after its first delivery, the Hyundai Shipyard topped 10 million deadweight tons in aggregate ship production, and has maintained its leading position in the world shipbuilding market ever since, mirroring the growth of modern Korean heavy industry. Its success has allowed the company to expand into other heavy industry areas, ultimately leading to the formation of the integrated Hyundai Heavy Industries after its separation from the Hyundai Group in February 2002. The independent establishment of the Hyundai Heavy Industries Group included

Hyundai Heavy Industries

HHI quick facts: HHI employs around 26,000 people in production, R&D, management and administration The Shipbuilding Division has delivered more than 2,000 ships to 305 ship owners in 51 countries Hyundai-10,000 can lift objects up to 10,000 tonnes, about six times more than the Goliath crane The Offshore & Engineering division has successfully completed more than 170 projects, including over 100 EPIC turnkey projects The Industrial Plant & Engineering division’s experience in combined-cycle power plants includes the 2,000MW Sabiya Combined Cycle Gas Turbine in Kuwait and the 1,729MW Riyadh PP11 Independent Power Project in Saudi Arabia In March this year HHI-EMD reached a manufacturing milestone of 9,000 Hyundai HiMSEN diesel and gas engines, a reflection of the remarkable growth in the 4-stroke engine market HHI-EES manufactures high-quality power and distribution transformers with a rated voltage of up to 800 kV and a capacity of up to 1,500 MVA

mergers with Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard. Today HHI employs around 26,000 people in production, R&D, management and administration. Its key shipbuilding yard covers 1,500 acres. The Gunsan and Onsans yard are also worldclass production yards, supporting a wide range of client and partner needs. HHI has a global business network in each of its seven business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems, Green Energy and Construction Equipment.

Shipbuilding

Hyundai Shipbuilding Division, the world’s number one shipbuilder, leads the global shipbuilding industry with a 15% share of the market. The Hyundai shipyard stretches over four kilometres along the coast of Mipo Bay in Ulsan, Korea. The Shipbuilding Division is capable of building all types of ships to meet the various demands of its clients, with ten large-scale dry docks and nine huge ‘Goliath Cranes’. The division has garnered

many awards and set many records within the shipbuilding industry, having delivered more than 2,000 ships to 305 ship owners in 51 countries since its foundation in 1972.

“Hyundai Heavy Industries and Accenture are collaborating to design a ‘connected smart ship’ that will enable ship owners to improve fleet management and achieve potential operational savings through the application of digital technologies” A subdivision within Shipbuilding is HHI’s Special & Naval Shipbuilding Division. As a licensed National Defense Industrial Shipbuilder and engineering consultant for the Korean navy, it has the technology to design and build modern, reliable submarines, naval ships and auxiliary service vessels of various proven and advanced hull forms. www.ogsmag.com

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Hyundai Heavy Industries

Currently Hyundai Heavy Industries and its partner Accenture are collaborating to design a ‘connected smart ship’ that will enable ship owners to improve fleet management and achieve potential operational savings through the application of digital technologies. Using a network of sensors that will be built into new vessels, ship owners will be able to capture a range of voyage information including location, weather and ocean current data, as well as on-board equipment and cargo status data. By applying realtime analytics to new and historical fleet data and using data visualization technology to present the insights, ship owners will be able to monitor their vessel’s status and condition in realtime to make data-driven decisions that support more efficient operations.

“The collaboration with Accenture is part of Hyundai Heavy Industries’ plans to expand its business from manufacturing into services” Services are expected to include real-time alerts and warnings, predictive maintenance and more efficient scheduling. The connected smart ship will be developed using a combination of Hyundai Heavy Industries’ shipbuilding and manufacturing expertise and Accenture’s digital and shipping industry experience. As ship owners seek innovative new ways to reduce vessel operating expenses, this collaboration will deliver a range of real-time services to improve the efficiency of their ships, while simultaneously strengthening Hyundai Heavy Industries’ competitiveness. “Businesses can gain a competitive advantage by embracing the connectivity wave underpinning the Internet of Things and integrating digital services into their products to keep pace with the next wave of innovation,” said Eric Schaeffer, senior managing director, Accenture. “Our collaboration with Hyundai Heavy

Industries utilizes our digital technology and deep industry experience to enable a traditional ‘products’ company to adapt its business model, taking advantage of digital technologies like analytics. Hyundai Heavy Industries’ willingness to create value for its customers through adopting elements of the Internet of Things is a great step on its digital transformation journey.” “Through this collaboration with Accenture, our ambition is to lead innovation in ship operations, shipping and the port logistics sector,” said Moon-kyoon Yoon, Chief Operating Officer of the Shipbuilding Division of Hyundai Heavy Industries. The connected smart ship uses Hyundai Heavy Industries’ on-ship platform and the Accenture Connected Platforms as a Service (CPaaS) and all connected devices can be monitored and maintained remotely. With real-time data collection and exchange across vessels, ports, cargo and land logistics, Hyundai Heavy Industries will be able to create additional services and revenue streams to customers across the lifecycle of ships and journeys, removing barriers between different elements of a ship’s operation. The collaboration is part of Hyundai Heavy Industries’ plans to expand its business from manufacturing into services. HHI has also recently developed the ‘Sea Weather Forecasting System’ in partnership with the Korean Institute of Ocean Science & Technology (KIOST). The system will enable HHI to manage sea trial schedules of ships it builds at its Ulsan yard 72 hours in advance, by analysing sea weather information such as wave height, wind speed and current patterns on an hourly basis in seven offshore areas including Ulsan, Gunsan and Jeju Island. The weather system is also expected to minimize any possible delay in lifting work by the floating crane due to unexpected weather conditions, through precision forecasting of the sea weather every 60 metres in Mipo Bay and Jeonha Bay where HHI is based. The geographic information system (GIS) can also display sea weather information on the specific spots on an electronic navigational chart. www.ogsmag.com 27

“HHI has also recently developed the ‘Sea Weather Forecasting System’ in partnership with the Korean Institute of Ocean Science & Technology (KIOST)” An HHI official said, “The weather forecasting system we developed is linked to 530 pieces of weather observation equipment across the nation and it can forecast 10 per cent more precisely than other existing weather systems by analysing adjacent sea topography 16 times more accurately.” In April 2015, Hyundai-10,000, HHI’s newest floating crane, took its place as the ‘symbol of HHI’, by lifting a topside module of Moho Nord tension leg platform by itself, thereby replacing the two 1,600-ton gantry cranes at its offshore yard. Hyundai-10,000 can lift objects up to 10,000 tonnes, about six times more than the Goliath crane, hence its name. Construction 28

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of Hyundai-10,000 commenced at Hyundai Samho Heavy Industries (HSHI) in October 2013 and it was delivered to HHI’s offshore yard in late March this year. The world’s largest shear-leg type floating crane in terms of lifting capacity, the 10,000-ton shear-leg floating crane is equipped with two 180 metre long crane booms and two sets of 70m high back stays. The crane is operable with 16 sets of main hoisting winches, eight sets of jib hoisting winches and 72mm and 54mm wire ropes, which are each 5,700 meters long.

“If we build an 8,000 ton topside module with the Goliath Crane, our employees have to repeat the same operations five times” The main hook is made of eight sets of 1,250-ton hooks. The four sets of 2,200 kW main generators, two sets of 600 kW harbour generators and one set of 100 kW emergency generator produce the electricity the crane needs. The vessel also has a ballast system

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Hyundai Heavy Industries

for purifying the sea water the crane takes in while it is on the sea or at berth. To enhance safety, Hyundai-10,000 is specially designed to hold objects in the air even in an emergency situation when one of the two wire ropes is compromised. The crane is also engineered to maintain a hook angle of 15 degrees towards starboard/portside and 20 degrees towards the stern to handle the cargo in an optimal condition. The vessel can maintain its horizontal position automatically within a deviation of +/-100 mm when it lifts up a 50 metre-long cargo. The floating crane is expected to bring substantial benefits to HHI and its clients with on-time and early delivery.

“There was a time when a 10,000-ton offshore facility deserved to be called “a big order”, but now offshore facilities need to weigh more than 20,000-tons to earn that description”

I 108 R :P

“Let’s say the maximum weight of a topsidessue block we can make for offshore facilities such as FLNG, FPSO and 1,600 tons,” efFPU islastoIl said Park Jong-bong, COO of HHI’s Offshore & Engineering Division. “That means if we build an 8,000 ton topside module with the Goliath Crane, our employees have to repeat five times lease confIRm aP all the same prerequisite works to lift a 1,600 ton block such as hooking the crane’s wire ropes and rearranging the crane’s lifting points to the optimal locations, striking perfect balance. However with the Hyundai-10000, HHI can make a single 8,000-ton module, pick it up and install it at one time. It wouldn’t be hard to calculate the man-hours and construction time HHI can save from the streamlined lifting process.” There was a time when a 10,000-ton offshore facility deserved to be called “a big order”, but now offshore facilities need to weigh more than 20,000-tons to earn that right. A series of “big projects” lined up to be built with the world’s largest shear-leg floating crane in HHI’s offshore yard this year include, Quad 204 FPSO and Aasta Hansteen spar platform, Jangkrik FPU and Bergading central processing and wellhead platform. www.ogsmag.com 29

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Offshore & Engineering

The Offshore & Engineering division of HHI is located 5 kilometres away from the main shipyard and operates the world’s largest offshore yard, covering 292 acres. HHI’s involvement in offshore structures began with a Saudi Arabian order for 89 jackets and deck structures for the Open Sea Tanker Terminal, as part of the Jubail Industrial Harbor Project in 1976. Since 1991, the Offshore & Engineering division has been a world-leading EPIC contractor, providing integrated services including engineering, procurement, installation, construction, transportation, offshore hook-up and commissioning, and project management. The Offshore & Engineering division has successfully completed more than 170 projects, including over 100 EPIC turnkey projects and is recognized as one of the most experienced and advanced offshore yards in the world. The range of products and services covers FPSOs, FLNGs, FPUs, semisubmersibles, jack-ups, TLPs, fixed platforms, subsea pipelines, and land-based LNG and processing modules. 30

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HHI’s Offshore & Engineering division combines onshore process plant expertise with offshore module fabrication experience, to create a high-value added service. The division will continue to develop state-of-the-art technology and provide high quality services for the oil and gas industry.

Industrial Plant & Engineering

The Industrial Plant & Engineering division has 38 years’ experience in industrial plant projects. It provides sophisticated engineering capabilities for power plants and carries out, on a turnkey basis, all phases of project implementation including engineering, procurement, fabrication, construction, commissioning, and training. The division’s core business activities are EPC thermal power plants, co-generation power plants, combined-cycle power plants, desalination plants, and oil & gas production facilities, gas processing plants, LNG liquefaction, refineries, petrochemical plants as well as the fabrication and supply of key equipment for nuclear power plants.

Hyundai Heavy Industries More HHI divisions: Construction Equipment The Construction Equipment division is widely recognized as an industry leader for its use of advanced ergonomic engineering and technology. Backed by highly advanced factory automation, a zero-tolerance quality control inspection system and innovative engineering, the division offers a wide range of construction equipment to satisfy its customers’ needs. The division started production in 1985, and now manufactures hydraulic excavators, wheel loaders, backhoe loaders, skid steer loaders as well as industrial vehicles. The division markets and supports its products through 500 local distributors in 140 countries. It also maintains nine global operation centres in the United States, Europe, India, Indonesia, Brazil, and China (Jiangsu, Shandong, Beijing).

Green Energy Green Energy Division produces solar power, wind turbine energy and energy storage systems. HHI’s Green Energy Division has a total capacity of 600MW in solar modules and is the key supplier of wind turbines in Korea. Hyundai Solar is the largest and longest standing PV cell and module manufacturer in South Korea, with 600MW of solar cell and module production capacity. Since its first European solar module sales in 2006, HHI has established a worldwide network with a reputation for manufacturing high quality high-voltage modules and wind turbine systems. In 2011, HHI’s Green Energy division established the Euiwang solar power plant and the Taeback wind power plant, to expand its ability in power plant maintenance and inspection. Hyundai Heavy has installed an accumulated 100MW of wind turbines in Korea and around the world to date, including last year the largest unit ever installed in Korea with a 100 metre hub height and 140 metre rotor diameter.

Co-generation facilities simultaneously produce electricity and process steam from a single source of fuel. This system reduces overall fuel consumption and has therefore been selected for various applications such as petrochemical process plant, refinery plant and district heating, etc. HHI has constructed 23 cogeneration plants domestically and internationally. The division’s experience in combined-cycle power plants includes the 127MW Inchon Airport Combined-Cycle Power Plant in Korea, the 210MW Shaybah Power Generation Plant in Saudi Arabia, the 2,750MW Marafiq Independent Water and Power Project in Saudi Arabia, the 2,000MW Sabiya Combined Cycle Gas Turbine in Kuwait and the 1,729MW Riyadh PP11 Independent Power Project in Saudi Arabia.

Engine & Machinery

The Engine & Machinery division is the world’s largest marine diesel engine builder with approximately 35% global market share. The division reached the production milestone of 130 million bhp (brake horsepower) in 2-stroke engines in 2013. It is

also a leading manufacturer of propellers, cargo oil pumps, ballast water treatment systems, and side thrusters. In March this year HHI-EMD also reached a manufacturing milestone of 9,000 Hyundai HiMSEN diesel and gas engines, a reflection of the remarkable growth in the 4-stroke engine market and confirming Hyundai Heavy’s place as a market leader. The HiMSEN GenSet can use both diesel and LNG on LNG carriers and conventional LNG fueled ships. Sales of power plants including Packaged Power Stations (PPS) have increased dramatically in markets including Cuba, Brazil, the Middle East, Africa, Europe, and Asia. Sales of industrial pumps and robot systems are also increasing rapidly. These products have become strategic items in the division’s plan for long term growth. In terms of innovative and cutting-edge technology, 15 products have been selected as World-Class Products by the Korean government, a record achieved by no other Korean business to date. These include the 2-stroke marine engine, 4-stroke marine engine, crankshaft, propeller, marine propulsion shafts, www.ogsmag.com

Hyundai Heavy Industries

cylinder liner, cylinder frame, turbocharger, engine power plants, packaged power stations, cargo oil pumps, side thrusters, industrial robots and LCD handling robots.

various panels. These products have been installed on a large number of ocean going vessels and are highly regarded for their economy, efficiency, and outstanding performance.

Electro Electric Systems

Legacy

Hyundai Heavy Industries has earned a worldwide reputation as a business partner in the power industry with the manufacture and supply of a wide range of electrical equipment, such as transformers, gas insulated switchgear, switchgear, LV & MV circuit breakers, electric motors, generators, integrated control & monitoring systems, and power electronics. With cutting-edge designs, state-of-the-art manufacturing facilities and innovative production technology, HHI-EES manufactures high-quality power and distribution transformers with a rated voltage of up to 800 kV and a capacity of up to 1,500 MVA. HHI’s SF6 Gas Insulated Switchgear (GIS) is a major piece of electrical equipment used in substations, and contains a gas circuit breaker, disconnecting switch, earthing switch, voltage transformer, current transformer, and lightning arrester in a grounded metallic enclosure. The GIS is filled with sulphur hexafluoride gas (SF6), which has the best insulation and arcquenching capability. HHI’s marine electrical products include dry-type transformers, generators, motors, main switchboards, engine control room consoles, bridge control consoles, automation systems, and

Since its establishment in 1972, Hyundai Heavy Industries has grown into the world’s leading heavy industries company by successfully diversifying from shipbuilding into offshore and engineering, industrial plant and engineering, engine and machinery, electro electric systems, construction equipment and green energy businesses. HHI is proud to have played a pivotal role in Korea’s economic development, but also to have become a responsible global corporate citizen, contributing to the sustainable development of the world economy. The key to HHI’s success lies in its business philosophy, characterised by creative wisdom, positive thinking, and unwavering drive, inspired by the indomitable pioneering spirit of its late founder Chung Ju-yung.

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FMC Technologies SA Route des Clérimois - CS10705 89107 Sens Cedex France Tel. : +33 3 86 95 87 00 www.fmctechnologies.com

Heatric printed circuit heat exchangers are unlocking the future of FLNG The key technical challenge of FLNG is to take a process developed in the relatively calm, accessible and ‘spacious’ onshore environment and deploy it where few of these things are true – with all the heightened safety considerations that this brings. Heatric printed circuit heat exchangers (PCHEs) are already well-established in FPSO applications because they help simultaneously tackle the three great offshore challenges – space, weight and safety. Now they are also playing an important role in shrinking and lightening the topside bulk of the new global fleet of FLNG facilities, including Shell Prelude. A total of 18 Heatric PCHEs are being installed on Prelude. Their duties embrace a wide range of operations, among them natural gas extraction and fractionation including first and second stage cold recovery, gas dehydration, and gas and refrigerant compression. Together they save some 1500 tons of topside weight, lowering the vessel’s centre of gravity and improving stability in heavy weather. A PCHE will typically be just onefifth the size and weight of an equivalent shell and tube-type unit thanks to its exceptionally high heat transfer-to-volume ratio. But for all their light weight and compact footprint, PCHEs are still comfortably able to handle pressures up to 650 bar (almost 9450 psi) and temperatures from cryogenic to 900°C (1650°F) while delivering closely-controlled process parameters. For existing platforms, PCHEs can debottleneck and boost throughput. For newbuild projects, like FLNG, they offer the opportunity

to design-in higher levels of process efficiency, safety and durability right from the start, unlocking a host of additional financial and operational benefits along the way.

Pioneer and leader It is fair to say that no-one understands printed circuit heat exchangers (PCHEs) like Heatric. It was the pioneering research of the company’s founders that created the very ﬁrst PCHE in 1985. Only Heatric has invested continuously for more than 30 years in reﬁning and developing the technology, working with the world’s leading oil and gas companies along the way. Today the company’s 15,000m2 of advanced production facilities – a single, integrated operation which includes one of the largest radiography and pressure-testing facilities in the UK – are still unique in being dedicated exclusively to PCHE design, development and manufacture. Heatric PCHEs are fully scalable with the recently extended factory able to accommodate the construction of the highest duty exchangers either

as single units or as multiple manifolded units – as was the case with some of the largest PCHEs provided for the Prelude project.

Light and effective The key to a Heatric PCHE’s powerful package of weight savings and capabilities is its diffusion-bonded core, which creates an exchanger with exceptionally high transfer efficiency and structural integrity. The characteristics of this design provides PCHEs with inherent and integral safety benefits which, together with a host of operational features, are of particular value to remote, floating processing applications. The seamless core construction minimises hold-up as well as vibration fracture risks, rendering PCHEs immune to catastrophic failure modes seen in other exchanger designs. Fire risks are also reduced because each PCHE is constructed entirely from stainless steel or higher alloys, with no aluminium or other low melting point material used in their construction. The future shape and disposition of a fullyfledged global FLNG fleet remains to be seen. But whatever liquefaction choices an operator makes, the compactness and robustness of PCHEs renders them uniquely able to deliver strong, powerful, structurallysimple solutions, all within an unmatched security and safety ‘envelope’.

Heatric. Leading heat transfer solutions www.heatric.com

info@heatric.com

T: +44 (0)1202 627000

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Interview: Hartmut Goeritz, CEO & terminal manager at APM Terminals at Tanger-Med, Tangier, Morocco

Hartmut Goeritz brings the knowledge and experience of 32 years in the shipping industry to one of the most dynamic and fast-growing ports in the world. What are the key strengths of Tanger-Med?

The port of Tanger-Med can handle the biggest vessels in the world and is strategically located in the Straits of Gibraltar, at the crossroads of major East/West and North/South trade lanes between Africa, Northern Europe, the Middle East, Far East and the Americas. Our location also allows us to benefit from Morocco’s attractive features; a stable macroeconomic and political situation, a valued destination for investors because of the incentives system and security of investments. Our workforce is very competitive and skillful, too. We believe we can be part of Morocco’s development and support its global development ambitions.

Is the nearby Spanish port of Algeciras a rival?

On the contrary! A partnership between both terminals and Maersk line was established in 2013 to capitalize on the proximity of APM Terminals Tangier to Algeciras. This aims to align the priorities of the three entities to increase operational stability and improve operational efficiency. Evolving a ‘hub partnership’ philosophy improves the handling of exceptional situations by anticipating volume variation and collaborating between terminals and shipping line. Time and 36

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cost reductions derived from this partnership have provided better returns for all stakeholders, and of course the final customer.

What are the key values of your organization?

APM Terminals Tangier is focused on safety and operational excellence, through our continuous improvement policy. Process Excellence (PEX) is a culture within our organization, so our employees are continuously running projects that have a significant effect on cost reduction, performance improvement, decreasing environmental impact, etc. Right from the beginning, APM Terminals Tangier implemented a process of compliance with the best international standards, in order to become a world-class facility. In 2012, we succeeded in obtaining three ISO certifications delivered by Bureau Veritas; ISO 9001 for quality, ISO14001 for environment and OHSAS 18001 for health and safety. In 2013 we obtained ISO 28000 for security management systems for the supply chain, and more recently ISO 27001 for the information security. We are the first Moroccan company to obtain such certifications.

Interview

What are the main challenges for APM Terminals over the next 12 months? Safety is a priority and an everyday challenge. We need our people, but also our stakeholders to stay safe and be able to return home without injury. We also work hard to maintain a sustainable level of productivity.

How do you start a normal day?

My day usually starts by preparing the baby bottle for my little daughter. It is important for me to create a ‘distance’ between home and work, which includes a physical journey, too. This allows me to balance work and family life, so in the morning while I’m driving to work I think about my plans for the day, while on the way home in the evening I can digest things and arrive ‘work stress’-free for my family life!

What has been most exciting about your career?

The most exciting is my career path itself, which has brought me in 32 years to live in 18 countries, discovering a multitude of different cultural environments and allowing me to grow individually and, as business leader, to collect my knowledge to be appointed as senior leader in our company’s head office.

Your favourite book…

This is not a ‘one-size-fits-all’ answer. Long books are not for me. I prefer short-stories and have a passion for Africa, having lived there for about 23 years. African fairytales are a great inspiration….

Your favourite ship...

Professionally speaking it is the Mærsk Mc-Kinney Møller, both from the name/history and industry development angle and what it stands for within the Mærsk Group, but also from having had the opportunity to visit her in our terminal in Tanger-Med. Incredible dimensions and begging the question: how can these mega vessels float? On a personal and more nostalgic level, it is the Port of Hamburg ferryboats crossing the river Elbe from Landungsbrücken. You get such a nice view of the city, such an intimate proximity to the operating port terminals and so close to big ocean vessels; that is the experience of a lifetime! First published by P. Gonzalez- Morgan in Gibraltar Shipping, July 2015 @ShippingGib www.ogsmag.com

The drachma drama David Blond examines the effects on the Greek economy of an eventual exit from the eurozone

t the time of writing, Greece is still in the euro, but while every new dawn seems to bring a new deal, nobody can be sure it won’t all change again tomorrow. The Greeks should never have joined the euro. Greece is a country whose economy thrives on low wages and sunny beaches on islands steeped in the magic of past glories of Greco-Roman civilization. I’ve modelled tourism flows for years and exchange rates and proximity are often the key reasons for foreign travel on vacation. A weak drachma against a stronger euro would have filled Greek hotel rooms. Even a small difference in relative value would make Germans, Dutch and even French choose Greece over Italy or Spain or Portugal for their holidays. What can they do? The truth is that any change over will be far from easy for the government and the people. What would an exit look like if done right? Or is there a better solution that could be implemented that would protect not just Greece, but the next dominos that will likely fall as a result of a sudden introduction of the drachma, Spain, Portugal and possibly even Italy? A devalued drachma would transfer tourist revenues from these other weak links in the euro chain. A weak exchange rate will encourage exports, making Greece more competitive against these other countries. But introducing the drachma would also limit Greece’s ability to import the necessary products that its economy has become dependent upon. Prices would soar for what did come in. But would that be any worse than the position it is in now? For many years, except two (2012 and 2013), Greece has been running a negative trade account. Some of the red ink is obviously made up by service exports – tourism and shipping – but in 2014 38

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it balloons to almost $6 billion. The trade account is what people consume every day, including food products. But could Greece find other countries to trade with? One possibility might be to make peace and a trade pact with another country like Turkey, a mortal enemy, but also a country with a strong agricultural sector that might be a good replacement for the higher cost foods coming in under the European Union’s common agricultural policy barrier. Limits on imports will also force Greeks to become more self-sufficient. Imports subtract from GDP, exports add to it; without imports of many products sourced from other European countries, domestic suppliers would have to step up production, and of course tastes will change – French wine goes, Greek ouzo returns. Much of what are considered to be necessities – food and shelter – can be produced at home. In my production models imports tend to reduce domestic production, destroying whole industrial sectors. At the same time a weak drachma may encourage more investments, taking advantage of being within the European Union but paying lower wages when drachma wages are converted into euros or dollars. Of course, it would have been better for the EU if they had been a bit more flexible. If I had been negotiating early on with the Germans and the European Central Bank then I would have asked for the creation of a junior euro, a euro set initially at 85% of the full euro, and introduced into the other tourism and debt ridden economies of Spain and Portugal. The debts would be paid back at 85% of the full euro with the difference

Economics

being shared between the banks and the European Central Bank. Greece would sign up for much of the same austerity, but it should have been able to use the weaker currency to make up the difference in trade and service advantages. Every effort would be

A weak drachma against a strong euro would have filled Greek hotel rooms

made to help with the transition but with the goal of reducing, not increasing, poverty, as poverty weakens the domestic economy on which so many people depend (most of the transfers are between consumers and businesses that are primarily local and thus not impacted by outside events until they lead to wholesale collapse of the underlying economy). The Southern euro would be allowed to float within a narrow range over and under the full euro through ECB intervention as necessary. The Phoenix Year â&#x20AC;Ś Greece on Steroids In my debut novel, The Phoenix Year, originally written about forty years ago during the first debt crisis in the developing countries with the sudden increase in the price of energy due to

OPEC, a pact of the dammed was used as a plot device to lead to a deep drop in the stock markets worldwide (one of several known causes of investor panic introduced at the same time). A similar device is used in the updated version of the novel with the same impact. Greece is not the only country with financial and debt problems. Any country without a fully convertible currency today and facing a flat or declining world economy will eventually face these same risks. Low interest rates have pushed more money into overheated equity markets, pushing some to new highs or off-lows. Any sudden panic could turn a recession in the real economy into a disaster in the financial markets. In the novel one of the precursors for the financial disaster is a slowing or even sudden collapse in China, leading to $30 oil and falling prices for minerals. Add to this a trans-Pacific dock strike on both sides of the ocean, with dock workers in Asia unionizing and working in tandem with nominally unruly West coast workers to demand higher wages and you have the seeds of my far-fetched fiction coming true. In the novel the target date is October 2016, so beware!

Dr. David L Blond is President of Quantitative Economic Research International www.ogsmag.com

Eagle Ford shale drilling rig, Texas 40 44

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Shale development

Argentina and China lead shale development outside North America A

s recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring hydrocarbons from shale and other tight resources, but they are still short of reaching commercial production. In the last two years, China has drilled more than 200 wells, and Argentina has drilled more than 275 wells. Each country has the potential to increase production of shale gas and tight oil significantly, as predicted in the 2013 World Shale Gas and Shale Oil Resource Assessment, produced by the US Energy Information Administration (EIA) and Advanced Resources International (ARI), which noted large shale deposits in these two countries. In Argentina, many international companies hold leases and have drilled wells in shale formations. Much of the initial activity has targeted shale oil and natural gas in the Neuquen Basin’s Vaca Muerta shale formation, located in west-central Argentina. National energy company Yacimientos Petroliferos Fiscales (YPF), the largest shale operator in the country, reported production in April 2015 of 22,900 barrels per day (b/d) of oil and 67 million cubic feet per day (MMcf/d) of natural gas from three joint ventures in Vaca Muerta: one with Chevron at the Loma Campana field, a second one with Dow Chemical at the El Orejano field, and a third joint venture with Petronas at La Amarga Chica field. In addition, China’s national oil company Sinopec and Russia’s national oil company Gazprom have recently signed a memorandum of understanding with YPF to jointly develop shale from the same basin. China has targeted the Longmaxi formation in the Sichuan Basin, located in south-central China, as its initial shale

gas exploration and development objective. While several international companies are active in China, much of the early effort has been led by Sinopec and China National Petroleum Corporation’s (CNPC) PetroChina, two of China’s national oil companies. According to China’s Ministry of Land and Resources, these two companies are on schedule to reach 600 MMcf/d of shale gas production by the end of 2015. CNPC has drilled 125 shale wells, bringing 74 of them into production, and is on schedule to produce 250 MMcf/d of shale gas by the end of this year. Sinopec has a commercial-scale effort underway at the Fuling shale gas field in the Sichuan Basin, currently producing 130 MMcf/d. By the end of 2014, Sinopec completed 75 test wells at the Fuling field, with plans to drill an additional 253 wells. Other countries have also begun to explore shale gas and tight oil, including Poland, Algeria, Australia, Colombia, and Russia. Shale oil and natural gas exploration drilling is also underway in Mexico, particularly in the country’s portion of the Eagle Ford Shale and in La Casita formation within the Burgos Basin in northeastern Mexico. In May 2015, the national oil company Petroléos Méxicanos (Pemex) released the results for 13 of its shale exploration wells, with 10 of these categorized as commercial. These 10 shale gas wells have initial production ranging from 2 to 11 MMcf/d. Pemex also drilled three horizontal wells into the TampicoMisantla Basin’s Pimienta formation in 2013, and the company plans to complete all three wells this year.

Other countries have begun to explore shale gas and tight oil, including Poland, Algeria, Australia, Colombia, Russia and Mexico

Oil, Gas & Shipping magazine welcomes your editorial contributions. Please submit them to martin@ogsmag.com Original research by US Energy Information Administration www.ogsmag.com 41

Peak launches FlexiDrift for accurate adjustable drift runs in a single tool

eak Well Systems (“Peak”), a leading specialist in the design and development of advanced downhole tools for well intervention, is pleased to announce the launch of the FlexiDrift – an accurate, adjustable tool to confirm the minimum diameter specification of well bore tubing with the ability to cover a range of tubing sizes. Unlike other drift tools on the market that require up to five tools to cover the full range of wellbore tubing sizes, the FlexiDrift is available in three standard tool sizes that can be accurately adjusted to within 10 thous of the desired diameter to span drift diameters of 2.000” – 2.750”, 2.720” – 3.750” and 3.700” – 5.750” respectively; thereby reducing the inventory required to run standard toolstring operations. www.ogsmag.com 42

The FlexiDrift consists of a mandrel with two sets of extendable rails that can be manually extended with ease using the adjustment sleeves to the desired radius of the well tubing. When run downhole, the unique positioning of the extended rails provides the highest radial contact across the widest operating range of required drift sizes ensuring no unforeseen obstructions, debris or damage is present in the well prior to other operations. Moreover, the FlexiDrift’s unique design allows for sufficient bypass of fluid to enable efficient toolstring conveyance in well fluids. It can be accurately adjusted and deployed via slickline and all other standard industry conveyance methods at the well site without the need for specialist training. A shear release function triggered through upwards jarring allows the FlexiDrift to retract to its minimum ID to enable reliable retrieval to surface - even when working in highly deviated wells or those with high levels of scale and debris. Gus Brown, Engineering Manager - at Peak Well Systems said:

Peak Well Systems

“Until now multiple drifting tools have been required to cover a range of well OD’s for any given operator. This usually results in increased inventory and consequential increased costs for customers. Peak’s FlexiDrift meets market demand for an alternative accurate drifting tool that offers the ultimate flexibility whilst minimising inventory and reducing costs.” Peak recognises that advanced, more reliable technology is a key strategic enabler for future competitiveness in today’s marketplace. The company is therefore focused on developing well intervention tools that maximize effectiveness whilst reducing operating costs. The FlexiDrift is one such tool in Peak’s portfolio that achieves this.

About Peak Well Systems

Peak Well Systems (“Peak”) is a specialist innovator of technically advanced downhole tools that extend well life, restore well integrity and enhance well performance. Peak’s portfolio of products includes solutions for flow control, routine and highdeviation well intervention, extending or restoring well integrity, downhole data acquisition, heavy- duty fishing, wellbore cleanup and debris removal. Peak has Technology Centres in Perth (Australia), Aberdeen (United Kingdom) and Dubai (United Arab Emirates). This is supported with sales and rental offices in Kuala Lumpur (Malaysia) as well as distribution agents. For more information visit: www.peakwellsystems.com.

Robust and reliable, the FlexiDrift can be run multiple times for multiple applications and, as with most Peak products, it is fully field redressable offering further cost savings to customers. The FlexiDrift can also be supplied with multiple connections to ensure compatibility with customers’ existing toolstring products. The FlexiDrift is available for both sale and rental from any of Peak’s Technology Centres and Rental Hubs worldwide. www.ogsmag.com

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Tullow Oil: Exploring Africa Tullow Oil has become a major force in Africa over the last 30 years, and is well positioned to take advantage when market conditions improve www.ogsmag.com

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rom humble beginnings back in the mid-1980s, Tullow Oil has become a major player in oil and gas markets in Africa, by taking up the challenge of working fields that nobody else could or would. Ghana and Uganda have been the main focus of the company’s capital spend and operational activities since 2007, where numerous fields have been discovered and developed.

More recently, however, exploration in Kenya and Ethiopia has been a major focus for the business and will continue to be so as it looks to make further discoveries and move towards development of the discovered resources. Today, Tullow Oil operates in 24 countries and has more than 2,000 employees. In Ghana, the world-class Jubilee field was discovered in 2007. First oil production commenced on schedule in November 2010. Tullow received plan of development (PoD) approval for the Tweneboa, Enyenra and Ntomme (TEN) fields in May 2013 and the development project is progressing on budget and is scheduled for first oil in mid-2016 with a gross capacity of 80,000 bopd. 46

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In Uganda, Tullow has held interests in three licences in the Lake Albert Rift Basin since 2004. To date, over 70 wells have been drilled and 1.7 billion barrels of recoverable oil resources have been discovered. In February 2014, a memorandum of understanding (MoU) was signed between the Government of Uganda and Tullow, CNOOC and Total, which outlines the framework for the Lake Albert Rift Basin development that is targeting over 200,000 bopd gross production. The export of the Ugandan and Kenyan crude will be an integrated project requiring a regional pipeline. The governments have signed an MoU and formed a steering committee to progress the pipeline project. Tullow has had significant exploration success in the rift basins of East Africa, most recently in the South Lokichar Kenya Rift Basin. Accelerated exploration, appraisal and early development campaigns are now under way in parallel in Kenya and Ethiopia, across the 11 basins where Tullow has over 85,000 sq km of acreage.

Kenya

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

Tullow Oil

Tullow plans to drill some 15 exploration wells this year, and will continue to be a leading explorer within the oil sector

Development and production of these resources is a long-term proposition, so Tullow is working together with its supplier and stakeholder partners to build understanding and knowledge about what activities need to take place at each stage of the journey. Securing an appropriate and economically viable plan for development will be critical to project success, but having the right infrastructure in place to support oil production will be equally important. Significant infrastructure upgrades will be required to transport the oil from an area largely inaccessible today by roads and rail to the sea, over 850 kilometres away. Furthermore, Tullow will require access to a wide range of skills as well as competitive, high quality goods and services. Key to growing a sustainable business in Kenya is Tullow’s recognition of the fragility of its operating environment. The environmental, social and cultural sensitivities will require careful management and extensive consultation and Tullow’s ability to develop the nation’s resources will be a collective effort. Tullow is working with the national and county governments, the communities in which it operates as well as with other stakeholders, to realise the full potential of Kenya’s resources. Kenya’s natural resources hold significant potential for the country’s people and Tullow is committed to ensuring this is delivered in a responsible manner. In Kenya, Tullow operates in one of the world’s most environmentally sensitive regions, with national parks,

world heritage sites and areas of global archaeological and paleontological importance. From the outset, Tullow recognised the need to protect areas of cultural significance and partnered with the National Museums of Kenya (NMK) and Turkana Basin Institute (TBI) to help manage operations in these areas. The scale of Tullow’s license areas in Kenya is comparable to the size of England. There is a wide variety of topography from very rough volcanic terrains in the southernmost and easternmost reaches, to vast savannahs and far-reaching deserts. Rift basins are a core feature of Tullow’s East African exploration strategy and the plays targeted in Kenya are relatively young, at a few million years old. Geological rifts occurred when the Earth’s plates were pulled apart by forces deep within the Earth’s interior. As separation occurred, the ground collapsed to create lakes, which deepened and linked to the sea. Over time the lakes became isolated and filled with sediment deposits. The organic remains of micro-organisms that accumulated on the lake floor were then heated, compacted and converted to oil as they became buried in the collapsing rifts. The early stages of rifting are present in Kenya as the chain of lakes was rapidly filled with sediment eroded from the surrounding mountains. The combination of shale and sands that are deposited contain the oil source and reservoir rocks that Tullow is now exploring. Rift basins in Kenya share many similar geological qualities with the Lake Albert Rift Basin in Uganda where Tullow has discovered estimated gross recoverable resources of over 1.7 www.ogsmag.com

In 2014, Tullow had ten exploration and appraisal successes in Kenyaâ&#x20AC;&#x2122;s South Lokichar Basin and two in the Lake Albert Rift Basin in Uganda

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Tullow Oil billion barrels of oil since the first exploration well in 2006. This experience in the East Africa region gave Tullow valuable and advantageous technical insights, which it combined with the early adoption of key technologies in developing its exploration campaign in Kenya. Tullow conducted the world’s largest airborne full tensor gradiometry (FTG) gravity survey, at that time, as well as more conventional 2D surveys across Kenya’s Tertiary Rift Basins. FTG is efficient in terms of time and provides high-resolution information about variations in the density of subsurface materials, which is highly valuable to Tullow’s exploration teams in identifying possible hydrocarbon deposits. Tullow is committed to bridging the existing skills gap to ensure that Kenya’s emerging oil and gas industry brings real, lasting benefits to the country’s people. At the end of 2013 there were approximately 100 permanent employees in Kenya, of whom more than 70% are Kenyan nationals. To date, Tullow has achieved 100% localisation of its HR, external affairs, finance, legal, IT and general support roles and the company is actively looking at development opportunities for graduates and experienced personnel to drive the localisation programme, both nationally and with respect to the area of operation.

New approach

Since the beginning of 2014 Tullow has been adapting its approach to exploration to fit the changing economic environment, protect the best interests of its shareholders and capture new opportunities. The company accepted that drilling complex wells, such as those in over-pressured deepwater plays, became too high-risk and expensive in the prevailing industry cost environment. Many deepwater prospects, once considered to be material, are no longer commercially viable, so Tullow refocused its drilling on low cost onshore and offshore plays which do not involve complex wells. The dramatic drop in the oil price in the second half of last year and the consequent pressure on Tullow’s overall expenditure saw it reduce its planned investments in exploration to $200 million in 2015. In 2014, Tullow had ten exploration and appraisal successes in Kenya’s South Lokichar Basin and two in the Lake Albert Rift Basin in Uganda. Tullow also carried out well flow tests to gain a better understanding of the basin’s oil production deliverability and encountered a natural range of flow rates with particularly encouraging high rates at Twiga South-2A. The exploration team’s work extends beyond finding untapped oil, however, as it’s also important to increase the size of existing discoveries. J-24, a Jubilee development well, was successfully deepened to test near-field exploration objectives and added high-value new oil to the near-term production reserves of Tullow’s major operated asset in Ghana. Integrated geoscience and reservoir engineering offshore Ghana, in Jubilee and TEN, has also delivered some contingent resource additions which will extend production life and sustain cash flows.

Future exploration

Tullow’s target for 2015 is to achieve a programme of low cost onshore and low complexity offshore drilling with the revised exploration budget of $200 million. These prospects will inevitably target a smaller volume of potential resources than previous exploration and appraisal campaigns when the budget was around $1 billion. Tullow plans to drill some 15 exploration wells this year, and will continue to be a leading explorer within the oil sector. Wells for 2015 and 2016 include basin testing prospects in the Kenya www.ogsmag.com

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Tullow Oil Rift Basins, turbidite plays in benign shallow water offshore Namibia and Suriname, and potential high-impact plays near infrastructure offshore Norway. Opening more new oil basins along Kenya’s Tertiary Rift Valley, where Tullow has a commanding operated acreage position, would be a transformational achievement for the company and would directly impact the global non-OPEC oil supply equation from 2020, so this remains Tullow’s key campaign for 2015 and beyond.

Going global

Looking further ahead, the company has some exciting exploration opportunities within its portfolio that are likely to be drilled when market conditions improve. Its Namibian oil prospects target a new light oil play where turbidite fans, which were deposited in deepwater, are now buried in shallower water settings. Tullow has basin commanding positions in Mauritania and in the Caribbean-Guyanas where it hopes to utilise its expertise and knowledge from oil wells already drilled in those regions and in the West Africa turbidite plays that resulted in the Jubilee and TEN discoveries. The Caribbean-Guyanas oil plays are especially well positioned to attract the attention of an industry which is currently excited about opening up the full potential of the greater Gulf of Mexico region. And the game changing plays within Tullow’s Norwegian acreage represent an exciting set of exploration opportunities which also have the potential to be transformational. Tullow’s European, South American & Asian regions contain some of Tullow’s most mature producing assets and areas of frontier exploration. In 2013, Tullow announced the sale of its mature Asia gas businesses to allow it to focus on exploring for light oil. Its key activities in these regions last year included the acquisition of Spring Energy. Following this, Tullow commenced a high-impact exploration programme in Norway where the Hanssen-1 exploration well in the Barents Sea successfully added to the volumes of oil already discovered in the Hoop-Maud Basin acreage, a new basin opened in 2013 with the Wisting-1 discovery.

Supply chain and sustainability

Suppliers are critical to Tullow’s success as a business. The company is committed to encouraging and supporting local suppliers, either by working with them directly or through its own supplier network. A diverse and dynamic local economy benefits local people, and through its supply chain Tullow can help to build the right environment to attract investment and create jobs in host countries. By developing these suppliers, it helps to create value, manage cost and reduce risk, which in turn enables Tullow to keep its projects running efficiently and profitably in the long term. Tullow’s strategy is focused on building sustainable long-term value growth, while ensuring safe and responsible people and operations. Its approach to sustainability focuses on a commitment to managing risks and mitigating the impacts of its operations, while creating shared prosperity for shareholders, governments, employees and industry partners alike. Tullow is rightly proud of its entrepreneurial culture, something it works hard to preserve. As Africa’s leading oil & gas company, Tullow focuses on developing long-term relationships with host governments and safeguarding the communities and the environments in which it works, ultimately protecting its business, people and reputation. www.ogsmag.com

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Marriott drilling group The late Richard Marriott, grandfather of three of the management team in the Marriott Group today, started the company in 1947. Today, the Marriott Drilling Group is the largest onshore deep drilling company based in the United Kingdom operating 20 drilling and workover rigs and a wide range of drilling and associated services to the oil, gas, shale gas, gas storage, coal, CBM, mining, water and geothermal industries and for specialised geoscientific drilling projects in Europe and selected international markets.

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Tullow Kenya CEO, Martin Mbogo presenting Safety Award to Marriott Kenyaâ&#x20AC;&#x2122;s Country Manager, Vignir Demusson

Marriott offers a selection of business arrangements from traditional day rate type contracts to incentive contracts, alliances and partnerships to provide clients with a wide range of services, particularly for special and long-term projects. The Marriott Drilling Group has an ambitious growth strategy including plans for increasing the rig fleet by adding state-of-theart equipment where opportunities arise and developing further international markets. Oil and Gas

In 2014 Rig 46 working for Tullow in Northern Kenya, won a customer Health and Safety award, for operating for one year without a lost time accident. Operations in Northern Kenya are particularly challenging in the harsh desert environment with summer temperatures up to 50Â°C. As well as operating a land rig drilling exploration wells in a remote area, Marriott also manages a 225-man camp facility for the crews, service companies and the client.

Success in Africa

Shale Gas

Marriott undertakes oil and gas exploration, appraisal and development drilling in both environmentally sensitive areas of Europe and at a variety of international locations including remote jungle and arid locations using global experience and local knowledge and resources. Recent contracts have included deep HT/HP wells in Africa, exploration and development drilling in jungle terrain in Central America as well as exploration drilling for projects in Europe. In 2013, Marriott Drilling Africa Limited (MDAL), a subsidiary within the Marriott Drilling Group, was awarded a threeyear contract with options to extend for a programme of oil exploration in Northern Kenya by Tullow Oil Kenya, a subsidiary of Tullow Oil plc. MDAL has established an office in Nairobi to support this contract and other operations in East Africa. 54

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Marriott has been involved in the pioneering shale gas exploration programme in the UK as part of a longterm alliance with an Operator since 2009. This includes drilling vertical and lateral wells, wireline coring, workover programmes, hydraulic stimulation and the provision of cementing services and also shallow hole drilling for the

Marriott Drilling Group Marriott Rig 10 drilling geothermal wells for OrPower in Hellsâ&#x20AC;&#x2122; Gate National Park, Kenya

(above and below)Marriott Rig 46 has successfully completed twelve deep oil wells for Tullow Kenya in the remote and inhospitable desert region of Turkana, northern Kenya

installation of instrumentation for monitoring potential induced micro-seismicity during stimulation programmes. The Company has also assisted in workover and hydraulic stimulation programmes in continental Europe.

Geothermal

Marriott and the key personnel within the Marriott Group have been involved in geothermal exploration and development for over 30 years. Projects carried out include high temperature hydrothermal wells and hot aquifer wells as well as for engineered geothermal systems projects in basement rocks. The Marriott rig inventory includes rigs with high substructures to accommodate the large blow out preventers necessary for geothermal exploration and development.

Gas Storage

The Marriott team has been involved in both depleted reservoir and multi-well leached cavern gas storage investigation and development programmes in layered salt and the associated pad drilling operations, including rig skidding, and the supporting workover activities. Marriott is currently involved in the design and planning for an unusual leached cavern gas storage facility involving an innovative solution to the need for accurate directional wells to access a shallow salt deposit from pad sites. Marriott offers an integrated service package for these major projects.

Mining

Marriott carries out deep mining exploration boreholes including boreholes for coal and potash with particular experience in the use of heavy-duty mining wireline system for large diameter high quality core and associated testing programmes. These systems have been successful used in boreholes, which have been sidetracked to obtain additional geometric control on formation structure. Similar heavy duty coring systems has been used by Marriott personnel for geological and hydrological investigations

for potential sites for deep mined repositories for radioactive waste disposal in a range of geologies.

Water

Water well drilling was the origin of the Marriott Group over 65 years ago and today the Company operate a range of small drilling rigs suitable for water well drilling and refurbishment including large diameter wells up to 60 in (1.5 m) using normal and reverse circulation, air drilling and down-the-hole hammer methods. Marriott has the equipment and capability of drilling water wells up to 1000 m depth.

Specialist Services

Marriott offers a range of integrated service packages and alliance relationships for special projects. Marriott also offers service groups a drilling capability for their integrated service projects. The capability also extends to include deep drilling and associated services for high quality geoscientific investigations for such projects as geology and hydrogeology characterisation, carbon capture feasibility and investigations of sites for radioactive waste disposal. Other services include cementing in certain locations, waste treatment and disposal services. Marriott is a member of the International Association of Drilling Contractors (IADC) and a member of the Well Drillers Association (WDA). www.marriottdrilling.com +44 (0)1246 861900 Springwater House/Old Pit La, Chesterfield S45 9BQ. UK www.ogsmag.com

Zenith Consultants work across the UK and globally and have been successful in building strong working relationships with our clients across all sectors. Our Clients include some of the largest oil, gas, power and petrochemical companies in the world and we have developed a diverse portfolio of complex and interesting projects in each sector. Recently Zenith Consultants were responsible for the detailed design of a bespoke strengthening scheme for an existing multi flare support structure for Qatar Shell GTL Ltd. on the Ras Laffan site in Qatar. In conjunction with the strengthening design, Zenith Consultants were also responsible for the detailed design, procurement and supply of the specialist lifting and winching equipment to service the operation, allowing two flare tips to be replaced at any one time. The exposure of Zenith Consultants to the oil, gas, power and petrochemical industries has served to provide an excellent platform to develop the Consultancy services. In addition to our working at height and off shore abilities, we have been able to combine our skills to establish a diverse and complete business. We are able to offer full structural and civil engineering support services in conjunction with highly experienced survey and inspection capabilities. Our inspection services include (not limited to) detailed visual inspection, material NDT, verticality/tension checks and guy wire magnetic flaw detection. Zenith Consultants core values are ‘Design – Innovation – Excellence’. We work closely with all our clients to fully understand their brief and assist to value engineer solutions to minimise time and out turn costs. We are experienced at working within small working windows and utilise up to date techniques to capture key critical information in short periods of shutdown or closure to build templates of information to allow our assessments, designs and specifications to be made.

www.zenith-consultants.co.uk Tel: +44 (0)131 440 3000

If you wish to discuss any of your project requirements with a member of Zenith Consultants team please do not hesitate to contact us at: 38 Dryden Road Bilston Glen Industrial Estate Loanhead, Midlothian EH20 9LZ Scotland United Kingdom

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Mercy Ships: A son’s wish, a father’s promise

Volunteers on board the world’s largest civilian hospital ship, Africa Mercy, make a dream come true for a young Malagasy boy www.ogsmag.com

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n the developed world, little boys often ask their fathers for expensive toys or to play a game of football. In Madagascar, however, a young boy called Rajo would often ask his father for one thing in particular – to rearrange his feet. Rajo had been born with a left clubfoot, which made his father Tojo want to cry as he felt the pain of his son’s condition. Living with a clubfoot meant that Rajo found it difficult to walk, play and interact with kids his age. Despite worrying about his son’s future, Tojo would assure his son “Daddy will find a way to fix it.” Tojo said, “Every day, just looking at him, I have the strength to take care of him. I have the strength to carry on. I love my children so much.” In Madagascar, where Rajo and his father live, there are only two physicians and three hospital beds available for every 10,000 people, so getting the level of medical attention required is practically impossible. On top of that, over 90% of Madagascar’s population lives on less than 75p a day. After doing some research Tojo discovered that there was a cure for his son, the only problem being that the treatment would

Mercy Ships

“Every day, just looking at him, I have the strength to take care of him. I have the strength to carry on”

cost around one million Malagasy Ariary (£200), a sum that was completely beyond his imagination. One evening Tojo heard on the radio that a floating hospital was on its way to Madagascar to provide free healthcare and surgery for the country’s 24 million population. Run by international charity Mercy Ships, the Africa Mercy is a state of the art hospital ship which offers free medical care and humanitarian aid to some of the world’s poorest people. It has been docked in Madagascar since October 2014. Thanks to the skills and care of the Africa Mercy’s voluntary crew, Rajo was able to receive the surgery and treatment to straighten his clubfoot. However, the crew understood that for a young child like Rajo the healing process would be as mental as it was physical and set Rajo and his father Tojo back on the pathway towards validation and hope. Tojo said: “There was never, ever happiness like what I have now happening in my life.” Judy Polkinhorn, Executive Director of Mercy Ships UK, said: “Rajo is one of the many deserving patients who visit our ship

every year. We would like to thank the support of all the parents that come aboard our ship, as without their guidance and energy little boys like Rajo wouldn’t see their wishes come true.” * * * Mercy Ships is an international charity which operates the world’s largest civilian hospital ship, the Africa Mercy, providing free healthcare services to people living in developing countries in Africa, where the services of professional medical staff are most needed. Professionals including surgeons, dentists, nurses, health care trainers, teachers, cooks, seamen, engineers and agriculturalists donate their time and skills to the effort. For further information about Mercy Ships, please visit www.mercyships.org.uk or contact info@mercyships.org.uk. www.ogsmag.com

OIL GAS AND SHIPPING MAGAZINE

MEDIA PACK 2015-2016 Our reader numbers globally (for both our printed and electronic magazine version: Argentina 845 Belgium 991 Belize 118 Brazil 3238 China 7236 Denmark 3253 Faroe Islands 14 Finland 1457 France 2322 Germany 2723 Greece 233 India 2564 Italy 934 Japan 453 Kazakstan 392 Netherlands 2789 Norway 9868 Poland 976 Russia 5769 Saudi Arabia 6921 South Africa 3512 Singapore 1986 Spain 1056 Sweden 4121 UAE 7219 Ukraine 645 United Kingdom 9961 USA 14763 Other 9122

TOTAL 105,481 Readers by position: President/CEO/ MD 32% Sales Director 9% Marketing/ BusDev. Director/ Mgr 12% Operations Director/ Mgr 4% Purchasing Director/ Mgr 25% Ship Owner/ Operators 8% Other 10%

About us: Oil, Gas and Shipping Magazine is produced by Worldwide Business Media Limited. It is published monthly and distributed in hardcopy print to over 24,000 readers and over 80,000 in electronic format globally. Our total readership is just over 105,000 and grows daily. As well being distributed to our readers we also offer customers the opportunity to have the magazine distributed to areas of their choice increasing their chances of response and making sure their advertising material is seen by the right people. Oil, Gas and Shipping is the media partner and supporter of many exhibitions and conferences worldwide and additional copies of the magazine are printed and distributed at these events. Founded in 2009, by Simon Ward, the magazine has grown to become a world renowned and respected media journal for the oil, gas and shipping industries. We hope this media pack offers the information you need and if you require more please contact us.

Exhibitions and confereces we support and partner: Oil Gas and Shipping Magazine is the media partner and supporter of some of the largest exhibitions and conferences worldwide. As well distributing magazines as to our normal readers globally we also distribute additional copies at these events. These include: World Gas Conference, France Offshore Europe, UK ADIPEC, UAE OSEA, Singapore CIPPE, China LNG 17, USA SMM, India SMM, Hamburg ONS, Norway ESGOS, UK Gastech, UK LNG, USA World Shale Oil and Gas Summit, USA OTC, USA OTC, Brazil

“Oil, Gas and Shipping Magazine has a readership of over 105,000 people across the globe every month”

Advertisement prices: Front Page (dedicated to your company) and 12 Page lead/ main editorial £19,995.00 Double Page Advertisement £6000.00 Full Page Advertisement £4895.00 Half Page Advertisement £2450.00 Quarter Page Advertisement Banner Ad on www.ogsmag.com Side Ad on www.ogsmag.com £1450.00 (All prices quoted are in Great British Pounds and payments can be taken through bank transfer or credit card. If you require a quotation in any other currency please contact us)

Specifications: Double - page: 426mm (width) x 303mm (height) - includes of 3mm bleed Full-page: 216mm (width) x 303mm (height) - includes 3mm bleed Half-page: 190mm (width) x 131.5mm (height) Quarter-page: 93mm (width) x 131.5mm (height)

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Media information cover, nor anyone apart from the customer and associated advertisers who would read a four page article at the back of one of these monstrosities. Oil, Gas & Shipping magazine will generally publish a readable 60 to 100 pages, because I want our customers to have their articles and advertisements read.

How do you reflect on the challenges of your early years? When I started the company with my wife Vanessa we had very little money, no backing from the banks and there was a worldwide recession going on! All we had was an idea to sell to our customers. Our plan was to build a solid readership based on quality editorial and we believed that advertising would follow. Our readership is now almost 110,000 and is producing great business for our clients and ourselves. We now feature the biggest players in the industry in our editorial coverage and these customers find that promoting themselves in our magazine is a cost effective alternative to printing their own brochures and distributing them themselves.

How do you plan to develop in the future? We have no ambition to become the world leader in our sector! We leave that to those with greater resources (and egos) than we have. We do want our magazine to be a voice for its customers, however, rather than preaching to them, and for it to continue to develop as a valuable marketing resource. We welcome suggestions and editorial contributions because we want to publish a magazine that people want to read and respond to. What was your motivation for starting We have recently added Martin Ashcroft to your own magazine? our editorial team to help us step up to the next I had been an employee of media companies for a level. Martin has edited business magazines for long time and while their magazines were often good 20 years and his professionalism and insight publications, their relationships with their customers into news stories and features has already left a lot to be desired, failing to deliver what was made an impact on our website and our printed needed to promote their products and services. magazines. I believe strongly that when customers spend time Any company looking for editorial coverage and money promoting their business, every effort should contact Martin as he has the gift of should be made to help them get their message across writing the most readable, promotable and unto their target audience. When the customer gets a brochure like material you will ever read. positive response, we have a great chance of doing With Martin’s help we have launched a new business with them again in the future! magazine called World Mining, which follows We have significant readership across the globe the same concept as Oil, Gas & Shipping and we offer our clients the opportunity to have the magazine. World Mining has already achieved magazine distributed to companies of their choice. a readership of approximately 93,000 with This helps our customers and ourselves; ensuring its 4th issue. It’s a logical development for us, that the magazine is read by the customer’s target as many of our clients in Oil, Gas & Shipping audience helps us to grow our distribution list. operate in, or sell products and services to the mining industry, too.

Simon Ward founded Worldwide Business Media in 2009 to produce the magazine Oil, Gas & Shipping. Here, he shares his value-for-money vision for serving customers.

What is your major objective for Oil, Gas & Shipping magazine?

Quite simple, really. To publish a magazine with a quality readership and quality content that promotes its customers by covering the subjects and issues that concern them.

What makes Oil, Gas & Shipping magazine different? My previous employers were committed to maximising the number of adverts in their magazines, to such an extent that issues containing 200 or even 300 pages were being published every month. These were very well designed, pleasing on the eye, and quite profitable, but did little for the benefit of their readers or clients. I don’t know anybody (apart from the proofreader) who has read a magazine of this size from cover to

Contacts: Worldwide Business Media Ltd. Oil, Gas and Shipping Magazine World Mining Magazine London, EC1V 2NX. United Kingdom Tel: +44 (0)203 5751249 Reg No: 6809417 News and Features Editor: Martin Ashcroft martin@ogsmag.com General Editor: Vanessa Ward vanessa@ogsmag.com Sales: sales@ogsmag.com General: info@ogsmag.com Artwork: artwork@ogsmag.com

www.ogsmag.com If you would like to advertise or feature over several issues of the magazine please contact us for our reduced price deals we can offer for frequent advertisers.

Have electronic magazines replaced hard copy printed magazines? Definitely not! An electronic magazine is a great vehicle for sending out an instant promotion, but a printed magazine can be used at exhibitions and faceto-face meetings with greater effect than a tiny image on a tablet, mobile or laptop. Companies that produce only electronic magazines still charge hard copy print rates for advertising, despite their online magazines being cheaper to produce. We take a belt-and-braces approach to publishing by producing a printed hard copy and an emailed electronic copy of our magazines, so our customers can benefit from the best of both worlds.

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Be on the front cover and have the lead 1218 page editorial of an edition of your choice

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Oil, Gas and Shipping Magazine offers its customers the opportunity to feature as the front cover and the main/lead article of the magazine. This gives companies the opportunity to discuss their operations and developments in more depth and reach our large global audience at a fraction of the cost it would take to publish sole brochures.

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All companies who take this option will also be given magazines to distribute on their own behalf. Previous customers have found this particularly useful for exhibitions and conferences and when new products have been developed.

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Previous companies who have taken this option include Maersk, Statoil, Tyco, Shell Group, Subsea 7, Teekay Corporation, Halliburton, Hyundai Heavy Industries, Tullow Oil, BP and many more. This complete package includes: Front Page (dedicated to your company) 12-18 Page Lead/ Main Editorial Full Page Advertisement Total price: £19,995.00 This package is available for all our editions including our editions distributed at our supporting and partnering exhibitions/conferences. If you would like to appear as the front cover and lead article please contact us at info@ogsmag.com or editor@ogsmag.com

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“Na v com igatin g p unl lexity o pot cking ent ial”

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ISSUE 67 www.ogsmag.com

Media information

(Issue 67: Subsea 7- article snippet below and cover image right) (Left: Previous front covers of Oil, Gas and Shipping Magazine)

A PARTNER IN PIONEERING SUBSEA TECHNOLOGY Subsea 7 builds on its track record in the harshest offshore environments

depth of expertise Investing in technology

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In the offshore energy industry, Subsea 7 is the leading global contractor in seabed-to-surface engineering, construction, inspection, repair and maintenance (IRM) and other services. In recent years, this subsea market has entered an era of increasing challenge, with reservoirs at greater depths and in more hostile environments. The company has responded by developing a wide and versatile range of market-driven, enabling technologies and by extending its technical expertise. “Many of the large subsea developments in recent years are either marginal or extremely technically challenging, and probably wouldn’t have been attempted a decade ago,” says Øyvind Mikaelsen, Subsea 7 Senior Vice President, North Sea and Canada. “Today, Subsea 7 is much more than an installer of subsea infrastructure – we design pipeline systems for clients, develop technologies to support flow assurance in hostile conditions, and invest in world-class high-performance vessels which enable the execution of large, complex projects even in extremely deep waters.” The catalyst for this accelerated commitment to technology was the successful combination between two complementary predecessor companies, Acergy S.A. and Subsea 7 Inc. in 2011. “The 2011 merger delivered much more than enhanced volume, capacity and geographical range,” says Steve Wisely, Subsea 7 Executive Vice President Commercial. “It also gave us the widest range of technologies in key sectors in the subsea market, including pipeline riser systems, pipelay techniques, pipeline Bundles, Life-of-Field services and Remotely Operated Vehicles (ROVs). “As a result, the technologies we use are independent and fit for purpose. We are not committed to using in-house hardware – we meet the challenge of delivering each complex subsea project through selecting the most effective technical solution.”

Subsea 7 operates in every major offshore region worldwide, including the North Sea, the Gulf of Mexico, West Africa, Brazil’s pre-salt fields, West of Shetland, Western Australia and, most recently, the Norwegian Sea. Well established for decades in the Norwegian offshore market, and listed on the Oslo Børs, Subsea 7 is focused on playing a leading role in delivering technology-rich subsea projects in Norwegian waters. Safety remains the number one priority in all Subsea 7’s operations, and powerful hazard identification, risk assessment and safety management processes all contribute to the highest levels of safety performance. In Norway, Subsea 7 has had no Lost Time Incidents in over a year during more than 2,000 vessel days and 12 current projects.

Subsea 7 is certainly well placed to meet this requirement. The company has extensive global project experience in every element of subsea construction and engineering, from conceptual design through to installation and commissioning.

“Many of our areas of technological expertise are not what clients expect from an ‘installer’; flow assurance, Finite Element Analysis (FEA), concept analysis, structural riser design, the development of Autonomous Inspection Vehicles and other cutting-edge areas.”

“We have executed a huge number and diversity of subsea projects on a worldwide basis, and we harness all this technological expertise and know-how into safe, reliable delivery,” says Sunde.

As a result of this experience, the company is an acknowledged leader in key sectors of the subsea market, including Subsea Umbilicals, Risers and Flowlines (SURF) and Life-of-Field (LOF).

Subsea 7’s Seven Borealis a world-leading pipelay and subsea construction vessel

The subsea market Subsea installation is already a major growth sector of the oil and gas market, as operators explore technological alternatives to conventional offshore drilling and platform production, most notably for deepwater field developments. Industry analysts forecast that subsea production will match or exceed conventional platform production in the next 15 years, with the subsea processing market in particular estimated to grow from its current annual value of $500 million to a projected $8 billion by 2020. As subsea infrastructure grows in size and complexity to meet the demands of higher pressure deepwater installation, an increasing number of operators are demonstrating a preference for the packaged EPIC (Engineering, Procurement, Installation and Commissioning) or EPCI (Engineering, Procurement, Construction and Installation) contract models, which only a number of large top-tier contractors are able to deliver. “Innovative subsea technologies and large EPIC/EPCI contracts represent the future, but cost and reliability remain the two principal drivers in this industry,” says Thomas Sunde, Subsea 7 Vice President Technology. “Operators are prepared to give increased installation responsibilities to their contractors – but they want confidence in the contractors’ track record.”

SUBSEA 7

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Offshore Europe 2015 EXHIBITION AND CONFERENCE SIGN UP AT

8-11 SEPT 2015

OFFSHORE-EUROPE.CO.UK/ ATTEND

ABERDEEN, UK

SPE OFFSHORE EUROPE

LEADING INTERNATIONAL E&P EVENT MEET FACE-TO-FACE WITH 1,500 EXHIBITORS

“

ACCESS NEW TECHNOLOGIES ACROSS THE E&P VALUE CHAIN

Impressed by the number of exhibitors covering all aspects of the oil and gas industry particularly the focus on subsea.

INNOVATE WITH 130+ NEW EXHIBITORS

SUBSEA PROJECT MANAGER, BP

PARTICIPATE IN 40+ FREE CONFERENCE SESSIONS

“

DEVELOP GLOBAL BUSINESS AT 34 INTERNATIONAL PAVILIONS

An excellent mix of super major & major oil companies, with niche oil services and product vendors. CONSULTING PARTNER, WIPRO UK

NETWORK WITH 63,000+ INDUSTRY PROFESSIONALS

The worldwide development of deep and ultra-deep field discoveries is essential for sustainable oil and gas production. Our Deepwater Zone showcases the advanced subsea, seabed and floating production hardware and expertise being utilised in these frontier projects. Benefit too from meeting suppliers from Aberdeen, a major global exporter of subsea products and services.

30+

NETWORK WITH

EXHIBITORS

8,000+

SHOWCASING SPECIALIST TECHNOLOGIES AND SERVICES

INTERESTED IN DEEP AND ULTRA-DEEP WATER

ATTENDEES

OVER

15 HRS OF FREE EXPERT CONTENT FROM GLOBAL ASSOCIATIONS

Programmed by:

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Organised by:

TURN OVER FOR CONFERENCE! www.ogsmag.com

EXHIBITION AND CONFERENCE

HOW TO INSPIRE THE NEXT GENERATION

PEOPLE • TECHNOLOGY • BUSINESS Keynote Programme

Technical Programme

Hear senior global representatives and government officials debate current issues and critical future trends in the E&P industry, at the free to attend Keynote Programme.

“

The Keynote Programme will focus on the basic challenge of meeting energy demand while balancing concerns over climate change, security of supply and consumer affordability. This challenge incorporates related issues: the well-being of our people and neighbouring communities, environmental risks and the safety and security of upstream assets. MICHAEL ENGELL-JENSEN, SPE OFFSHORE EUROPE 2015 KEYNOTE CHAIRMAN

Over 100 selected papers will feature in the 2015 Technical Programme, which will cover the breadth of the E&P value chain with expertise from across the globe.

“

Whilst we continue to push the boundaries of technology and innovation, we must find better ways to attract and encourage the next generation of talent into our industry. For the first time we are inviting technical papers based on both people and technical challenges, to address both aspects in parallel. CHARLES WOODBURN, SPE OFFSHORE EUROPE 2015 TECHNICAL CHAIRMAN

TECHNICAL SESSIONS WILL INCLUDE:

> DEVELOPING TALENT TO MEET DEMAND Insight on current challenges and best practices to develop our young and experienced professionals.

> HSE - A FOCUS ON PROCESS SAFETY New insights into health, safety and environmental management with a specific focus on process safety.

> FIELD RESTORATION (WELL ABANDONMENT & DECOMMISSIONING) The latest legislation, practices, case studies and activity with regards to well abandonment, abandoned well monitoring and the decommissioning of platform and pipeline infrastructure.

> SMARTER AND MORE EFFICIENT FIELD DEVELOPMENT The latest practices, concepts and case studies on the innovative, efficient and smarter development of offshore oil and gas fields. > ASSET & WELL INTEGRITY Advancements in assessing, monitoring, managing and assuring the integrity of the well, production facilities and field infrastructure. > SUBSEA Insight into latest drilling, completion, intervention and production technologies for subsea developments.

“

> MAXIMISING RECOVERY The latest technical advancements in sub-surface practices and technologies to enhance production and increase the recovery of mature fields. > SHALE AND OTHER UNCONVENTIONAL HYDROCARBONS The latest technologies, practices, legislation and general state of this area of the industry.

SPE Offshore Europe helps me keep up to date with “step changes” in our industry. MECHANICAL ENGINEER, AMEC

Official Patron:

WHEN: WHERE: STAY:

8-11 SEPTEMBER 2015 AECC, ABERDEEN, UK OFFSHORE-EUROPE. CO.UK/SLEEP

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OFFSHORE-EUROPE. CO.UK/TRAVEL

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Offshore Europe 2015

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Providing Oil & Gas solutions for tomorrow’s needs

EverSea provides integrated contract solutions to the following focus markets: • engineering, procurement, construction and installation of minimum facility platforms; • engineering, preparation, removal and disposal of decommissioned platforms; • offshore service and maintenance support for platforms facilities; • well intervention services and P&A of wells. EverSea NV Part of GeoSea NV Haven 1025, Scheldedijk 30 . B-2070 Zwijndrecht, Belgium T +32 3 250 53 12 . F +32 3 250 55 41 info.eversea@deme-group.com . www.deme-group.com/eversea

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Member of the DEME-Group

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connected at sea

Delivering high-powered satellite capacity across Europe and the Middle East Regardless of location, whether on land or at sea, Telenor Satellite Broadcasting provides uncompromised satellite-based communication solutions , helping you to stay connected at all times. www.telenorsat.com