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ISSUE 71 www.ogsmag.com

Cover Story:

Tullow Oil Africaâ&#x20AC;&#x2122;s leading independent oil company

Konepaja H채kkinen Oy Konekuja 4, FI-21200 RAISIO Tel. +358 207 813 400 E-mail: email@konepajahakkinen.fi Website: www.konepajahakkinen.fi

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Cover Story Page 6:

Contents

Tullow Oil: Africa’s leading oil company

Cover Story:

Tullow Oil Africa’s leading independent oil company

Page 24 Maersk Line and MSC’s vessel sharing agreement to be implemented as planned Page 25 Saudi Aramco wins major awards Page 25 ABB partners with Vestas to electrify off-grid communities in Africa Page 27 Consortium of DNV GL and Grontmij signs agreement with TenneT as regular supplier for further development of Dutch high- voltage grid Page 27 Statoil strengthens position on UK continental shelf Page 28 Weatherford reports third quarter 2014 results Page 28 Baker Hughes aquires Weatherford’s pipeline and speciality service business Page 31 Craig Group- £70 million investment plan in action Page 31 Craig Group takes gold for well-being in the workplace Page 32 Petronas announces the commencement of oil production via Gumusut-Kakap floating production facility Page 32 PetroSa records operating profit (before impairment) of R2, 2 billion for 2013/14 financial year Page 35 Port San Antonio’s East Kelly Railport continues strong performance Page 35 Tyco Fire and Integrated Solutions have secured chemical injection contract worth £5m Page 36 Wood Group Kenny awarded subsea pipeline FEED contract for carbon capture and storage project Page 36 Wood Group Mustang selected to provide engineering services for Statoil Snorre C Platform Page 38 (Feature) Dow Innovation- fuelling sustainability and productivity Page 52 (Feature) VSMPO Titan Ukraine “geared up for surging demand expected in titanium tube market” Page 2 Page 5 Page 23 Page 26 Page 29 Page 30 Page 33 Page 34 Page 37 Page 56

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Tullow Oil Africaâ&#x20AC;&#x2122;s leading independent oil company

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From small beginnings back in the mid 1980â&#x20AC;&#x2122;s Tullow has grown rapidly to become a major player in oil and gas markets in the Africa region, by taking up the challenge of working fields that nobody else could or would. Tullowâ&#x20AC;&#x2122;s founder is Aiden Heavey.

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

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

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In Ghana, the world-class Jubilee field was discovered in 2007. First oil production commenced on schedule in November 2010 and production averaged 103,000 bopd gross in 1H 2014. Tullow received Plan of Development (PoD) approval for the Tweneboa, Enyenra and Ntomme (TEN) fields in May 2013 and the development project is progressing on budget and is scheduled for first oil in mid2016 with a gross capacity of 80,000 bopd. In Uganda, Tullow has held interests in three licences in the Lake Albert Rift Basin since 2004. To date, over 70 wells have been drilled and 1.7 billion barrels of recoverable oil resources have been discovered. In February 2014, a Memorandum of Understanding (MoU) was signed between the Government of Uganda and Tullow, CNOOC and Total, which outlines the framework for the Lake Albert Rift Basin development which is targeting over 200,000 bopd gross production. The export of the Ugandan and Kenyan crude will be an integrated project requiring a regional pipeline. The governments have signed an MoU and formed a Steering Committee to progress the pipeline project. Tullow has had significant exploration success in the rift basins of East Africa, most recently in the South Lockichar Kenya Rift Basin. Accelerated exploration, appraisal and early development campaigns are now under way in parallel in Kenya and Ethiopia, across the 11 basins where Tullow has over 85,000 sq km of acreage.

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Kenyan Success Evidence of Tullow’s influence on African oil can be found in its ongoing operations in Kenya. The company invested in exploration of Kenyan fields in 2010 and the discoveries made by Tullow over the last four years have put Kenya at the heart of East Africa’s emerging oil province. Despite this success, Tullow does not underestimate the challenges that lie ahead in bringing first oil to market. Development and production of these resources is a long-term proposition, and so Tullow is working together with stakeholders to build understanding and knowledge about what activities need to take place at each stage of the journey. Securing an appropriate and economically viable plan for development will be critical to project success, however having the right infrastructure in place to support oil production will be equally important. Significant infrastructure upgrades will be required in order to transport the oil from an area largely inaccessible today by roads and rail to the sea, over 850 kilometres away. Furthermore, Tullow will require access to a wide range of skills as well as competitive, high quality goods and services. Key to growing a sustainable business in Kenya is Tullow’s recognition of the fragility of its operating environment. The environmental, social and cultural sensitivities will require careful management and extensive consultation and Tullow’s ability to develop the Nation’s resources will be a collective effort. Tullow is working with the National and County Governments, the communities in which it operates as well as with other stakeholders, to realise the full potential of Kenya’s resources.

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Kenya’s natural resources hold significant potential for the country’s people and Tullow is committed to ensuring this is delivered in a responsible manner. In Kenya, Tullow operates in one of the world’s most environmentally sensitive regions, which includes national parks, World Heritage Sites and areas of global archaeological and paleontological importance. From the outset, Tullow recognised the need to protect areas of cultural significance and partnered with the National Museums of Kenya (NMK) and Turkana Basin Institute (TBI) to help manage operations in these areas. The scale of Tullow’s licence areas in Kenya is comparable to the size of England. There is a wide variety of topography including very rough volcanic terrains in the southernmost and easternmost reaches, to vast savannahs and farreaching deserts. Rift basins are a core part of Tullow’s East African exploration strategy and the plays targeted in Kenya are relatively young, at a few million years old. Geological rifts occurred when the Earth’s plates were pulled apart by forces deep within the Earth’s interior. As separation occurred, the ground collapsed to create lakes, which deepened and linked to the sea. Over time the lakes became isolated and filled with sediment deposits. The organic remains of micro-organisms that accumulated on the lake floor were then heated, compacted and converted to oil as they became buried in the collapsing rifts. The early stages of rifting are present in Kenya as the chain of lakes were rapidly filled with sediment eroded from the surrounding mountains.

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The combination of shales and sands that are deposited contain the oil source and reservoir rocks that Tullow is now exploring. Rift basins in Kenya share many similar geological qualities with the Lake Albert Rift Basin in Uganda where Tullow has discovered estimated gross recoverable resources of over 1.7 billion barrels of oil since the first exploration well in 2006. This experience in the East Africa region gave Tullow valuable and advantageous technical insights, which it combined with the early adoption of key technologies in developing its exploration campaign in Kenya. Tullow conducted the world’s largest airborne Full Tensor Gradiometry (FTG) gravity survey, at that time, as well as more conventional 2D surveys across Kenya’s Tertiary Rift Basins. FTG is efficient in terms of time and provides high-resolution information about variations in the density of subsurface materials, which is highly valuable to Tullow’s exploration teams in identifying possible hydrocarbon deposits. Tullow is committed to bridging the existing skills gap to ensure that Kenya’s emerging oil and gas industry brings real, lasting benefits to the country’s people. At the end of 2013, there were approximately 100 permanent employees in Kenya, of whom over 70% are Kenyan nationals. To date, Tullow has achieved 100% localisation of its HR, External Affairs, Finance, Legal, IT and general support roles and the company is actively looking at development opportunities for graduates and experienced personnel to drive the localisation programme, both nationally and with respect to the area of operation.

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

Etom-1 exploration well

The Etom-1 well in Block 13T is the most northerly well drilled to date in the South Lokichar basin, 6.5 km north of the previous Agete-1 discovery. The well encountered approximately 10 metres of net oil pay, extending the proven oil basin significantly northwards. Based on this result the ongoing 550 sq km 3D seismic survey in the South Lokichar basin has been extended to cover a further 247sq km in this northern area, including several similar prospects, which are scheduled to be drilled in 2015. The Weatherford rig-804 rig drilled the Etom-1 well to a final depth of 2,000 metres. The well will be suspended for use in future appraisal and development operations, following which the rig will move to drill the Kodos-1 well in September 2014 to test the first of several prospects identified in the neighbouring Kerio Basin.

Amosing-2 appraisal well

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

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The Amosing-2A sidetrack encountered up to 90 metres net oil pay in several oil pools. The Sakson PR5 rig drilled Amosing-2 to a final depth of 2,878 metres and the Amosing-2A sidetrack to a final depth of 2,165 metres. The rig will now be moved to explore the southern extent of the South Lokichar basin to drill the Ekosowan-1 well in September 2014, 11.9 km south east of the Amosing-1 well.

Ngamia-3 appraisal well

The Ngamia-3 well in Block 10BB continued the appraisal of the Ngamia field. The well was successfully drilled 1.6 km north of the Ngamia-1 discovery well and encountered 150 metres of net oil pay in both Auwerwer and Lokone reservoirs. The well has been suspended for likely use in future interference testing, appraisal and development activities. The Marriott rig PR-46 drilled Ngamia-3 to a final depth of 2,700 metres. The rig will now be moved to continue the appraisal of the Ngamia field, drilling the Ngamia-4 and Ngamia-5 wells which are planned to be used in an interference testing programme in the Ngamia field.

Ewoi-1 flow test

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

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Global Businesses Aside from its extensive operations across the whole of Africa, Tullow has interests in Europe, South America and in Asia. Tullowâ&#x20AC;&#x2122;s Europe, South America & Asia region consists of some of Tullowâ&#x20AC;&#x2122;s most mature producing assets and areas of frontier exploration. In 2013, Tullow announced the sale of its mature Asia gas businesses to allow it to focus on exploring for light oil. Its key activities in these regions last year included the acquisition of Spring Energy. Following this, Tullow commenced a high-impact exploration programme in Norway and the Wisting Central well made a play opening light oil discovery in the Hoop-Maud Basin in the Barents Sea. Tullow also divested its Asian businesses in 2013 and restructured the sale of its Southern North Sea Assets to suit current market conditions and facilitate a multiple asset disposal. Today, Tullow Oil operates in 24 countries and has more than 2,000 employees.

Zeal Ltd was founded in 1977 to provide corrosion engineering and structural maintenance solutions to the mining companies in Ghana. In 2006, Zeal Environmental Technologies Ltd (ZETL) took over the going concern of Zeal Ltd to operate the Takoradi Port Reception Facility in conformity with the International Maritime Organisation (IMO) Marpol 73/78 Treaty. ZETL is an indigenous industrial leader in Oil Field Waste Management, providing services to the jubilee partners which Tullow is the lead operator, as well as other Oil and

Gas Companies in West African countries. ZETL operates an Integrated oil field waste management facility at Nyankrom, providing best industrial practice in managing hazardous and non-hazardous waste, tank farm, supply vessel and oil rig tank cleaning. We also offer Oil Spill Response-Shoreline cleanup. With dedicated, hardworking and persevering work force, Zeal is the preferred choice of multi-national Oil and Gas companies in Ghana and the Gulf of Guinea as a result of our

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

technology transfer and human capital investment, in partnership with

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

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

complementing the governmentâ&#x20AC;&#x2122;s unemployment interventional measures. As part of our social responsibility programme, Zeal has been supporting the Shama district assembly in the following areas: Upgrading of single phase electricity to three phases at Nyankrom. Financial support for teacherâ&#x20AC;&#x2122;s accommodation at Nyankrom. Funding educational materials for schools within the catchment area of our operation. Financial support for brilliant but needy students at Nyankrom. Provision of toilet facility for the Nyankrom junior high school (on-going) Collaboration with traditional rulers.

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Maersk Line and MSC’s vessel sharing agreement to be implemented as planned On 10 July 2014, Maersk Line announced a 10-year vessel sharing agreement (VSA) with MSC Mediterranean Shipping Company S. A. on the Asia-Europe, Transatlantic and Transpacific trades. The agreement was subject to approval by relevant authorities. Today, the U.S. Federal Maritime Commission (FMC) announced that it will allow the VSA to come into effect. The U.S. was the only remaining jurisdiction where the VSA had to obtain approval. Maersk Line and MSC can now implement the VSA as planned. “We are very pleased that the FMC has decided to allow our VSA with MSC to become effective. In our view, this is a win-win situation. Due to a larger and more cost efficient network, we can continue to provide our customers in North America, Europe and Asia competitive and reliable container shipping services. We look forward to starting operations on our new East/West network in January 2015.” says Vincent Clerc, Chief Trade and Marketing Officer, Maersk Line. In the new East/West network, Maersk Line offers customers more services and ports: 21 strings (vs. 18 today), 1,036 port pairs (vs. 788 today) and 291 ports called (vs. 212 today). The VSA will also result in cost savings through the deployment of larger and more efficient vessels and improved utilisation. In addition, we will be able to lower our CO2 emissions. In total, the VSA has an estimated capacity of 2.1 million twenty-foot equivalent units (TEU) or approximately 185 vessels. Maersk Line will contribute around 55 % of the total capacity.

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ABB partners with Vestas to electrify off-grid communities in Africa ABB, the leading power and automation technology group, and global wind energy company Vestas today signed a partnership agreement whereby they will contribute with their respective technologies to help rural communities in developing markets gain access to affordable clean electricity. The two companies will jointly deliver power technology and system integration solutions for remote off-grid and microgrid communities. Under the agreement, factory-refurbished Vestas wind turbines will be combined with ABB microgrid power stabilization solutions to create hybrid generation systems well-suited to operate in remote locations with limited infrastructure. The project is part of Vestas’ Wind for Prosperity initiative, a commercially-based business model designed to bring affordable, reliable and stable windgenerated electricity systems to rural populations in developing countries. It was announced at the Global Green Growth Forum (3GF) in Copenhagen, an event hosted by the Danish government.

Saudi Aramco wins major awards Saudi Aramco won two major awards at the 5th Annual Oil & Gas Middle East awards held in Abu Dhabi on Oct. 22.

The company’s Exploration and Petroleum Engineering Center — Advanced Research Center (EXPEC ARC), meanwhile, won the Technical Innovation of the Year award for its research and implementation of nanoparticle agents through its Arab-D Reservoir Dots program, also known as A-Dots. The Production Manager of the Year award comes at a time when the Kingdom’s nonassociated gas reserves and production are increasing to meet the Kingdom’s growing need for power and for feedstock for the growing petrochemicals industry. As manager of GRMD, Al-Kanaan oversees the nonassociated gas development and production program in the Kingdom. “Saudi Aramco is pushing the envelope with technology to expand production and productivity, especially concerning gas development in Saudi Arabia,” Al-Kanaan said. Speaking specifically about the A-Dots program, Khaled A. Al Buraik, vice president of Petroleum Engineering and Development, described it as “one of the ground-breaking research programs that Saudi Aramco is undertaking as part of its diverse upstream technologies portfolio. These programs don’t benefit the company alone, but the rest of oil and gas industry.” he said. The A-Dots project is one component of the company’s program to develop reservoir nano-agents to enhance in-situ sensing. A-Dots are nano-particle fluorescent tracer agents designed to track the flow of water injected into wells. Nano-agents such as A-Dots will ultimately help increase the company’s overall recovery of hydrocarbons. Taken together, these two awards show that the company’s drive toward operational excellence and innovation are putting Saudi Aramco at the forefront of the oil and gas industry. Leading the way in operational performance, and coming up with gamechanging technologies that help improve future recoverability of hydrocarbons are not just good for business; they also give Saudi Aramco the ability to change the way in which the energy business is conducted, and to help the Kingdom become a magnet for innovation.

ABB is a technology leader in microgrid solutions with more than 80 references around the world, providing electricity access to off-grid communities, mitigating the consumption of fossil fuels and enabling the integration of renewables to lower environmental impact. Wind for Prosperity is an opportunity for business, government, and financial institutions to improve lives and generate risk-adjusted returns for private investors. The initiative is focusing initially on rural Kenya, where 13 communities that are home to more than 200,000 people have been identified as potential project areas. Planning is being coordinated with the Kenyan Ministry of Energy, the Kenya Power and Light Company, and other government agencies. The scheme is expected to supply electricity at significantly lower cost than diesel-only power production. “The Vestas-ABB collaboration on Wind for Prosperity is a significant step forward in bringing these projects to life,” says Morten Albæk, Vestas Group Senior Vice President. “The agreement we announced today unites each company’s technological expertise to create a combined solution for exactly the type of off-grid and micro-grid wind-diesel hybrid power generation systems that we envision for Wind for Prosperity.” In addition to Africa, Wind for Prosperity partners are also exploring potential projects in other geographies with similar needs. The initiative plans to install hybrid power generation systems in 100 communities reaching at least one million people in the next three years. ABB’s microgrid is a small, self-sufficient power grid able to provide stable, utility-grade power to selfcontained entities like a municipality, communities and private users (buildings, residences, home), university campus, military base, industrial or mine site.

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Adnan A. Al-Kanaan, manager of the Gas Reservoir Management Department (GRMD), won Production Manager of the Year for his efforts in increasing overall production and reserves through new technologies, delineation and deepening drilling cost efficiencies and the expansion into Saudi Arabia’s gas program.

“We are proud to partner in the Wind for Prosperity development program,” said Claudio Facchin, head of ABB’s Power Systems division. “We are committed to help remote communities benefit from clean wind energy and stable power delivery. ABB’s proven microgrid technology will increase use of renewable energy while reducing costs for fossil fuels and ensuring utility-grade power quality.”

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News Consortium of DNV GL and Grontmij signs agreement with TenneT as regular supplier for further development of Dutch high-voltage grid On 31 October 2014, a consortium of DNV GL and Grontmij signed a framework agreement with TenneT TSO for the provision of engineering services. Based on the framework agreement, the consortium and its partners Roos+Bijl and Joulz will support TenneT in the further development of the Dutch high-voltage grid as preferred supplier for Connections and approved supplier for Stations.

In the coming years, TenneT will be executing a large investment programme to make its network and systems futureproof, considering the increasing production of renewable energy from wind farms. Also, connections with neighbouring countries in Europe will be expanded. Safety, security of supply and cost effectiveness are paramount. In essence, it’s about an extension of the national energy transportation capacity and system improvement and renewal. The consortium of DNV GL and Grontmij will support TenneT with services in the area of spatial integration of connectors and stations, environmental impact, soil surveys, permits, feasibility studies, high voltage engineering, architectural design and supervision. “As a longstanding partner of TenneT, DNV GL (formerly KEMA) – as a consortium member – delivers its expertise to support TenneT’s ambitions in integrating more renewables and securing a reliable energy supply in the future,” said Jacob Ruiter, director Benelux DNV GL Energy.

Erling Vågnes, senior vice president for exploration in Statoil

Statoil strengthens position on UK continental shelf Statoil was awarded interests in 12 new licences, 9 as operator, in the 28th licensing round on the UK continental shelf, announced today by the Department of Energy and Climate Change. “We were awarded all the acreage that we had applied for and are of course very pleased with the outcome of this licensing round. These awards strengthen our UK continental shelf portfolio significantly and underpin our long-term commitment as an operator in UK waters,” says Erling Vågnes, senior vice president for exploration in Statoil. Eleven of the licences are in the North Sea and the remaining one is West of Hebrides. In terms of size, this additional acreage constitutes almost 8000 square kilometres and thus represents access at scale. Significant positions have been taken both in mature parts of the Central North Sea, such as in the vicinity of the Mariner and Bressay projects, and in relation to plays largely untested in UK waters. In this latter category, the acreage picked up on the northern margin of the Mid North Sea High (Quadrants 37 and 38) and in the Halibut Horst area (Quadrants 13 and 14) can be highlighted. “This new acreage holds the potential for new high-value barrels in our greater North Sea core area, both near our existing heavy oil projects and in new areas. This is in line with Statoil’s exploration strategy of taking large, untested acreage positions and deepening existing core areas,” says Vågnes. Statoil is planning to drill two exploration wells in 2015 in acreage acquired in the previous UK licensing round, and also sees the potential for maturing several additional drilling candidates on the 28th round acreage. Statoil continues the development of the heavy oil Mariner field, planned to come on stream in 2017. The Bressay project is in the concept evaluation phase.

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The framework contracts have a total value of 39 million euros for the five selected parties together. The framework agreement has a duration of three years with twice the option to extend with two additional years.

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WEATHERFORD REPORTS THIRD QUARTER 2014 RESULTS Third Quarter 2014 Highlights: Completed the sale of the Russian and Venezuelan land rig operations; Completed the sale of the Pipeline and Specialty Services business; Reduced net debt by $717 million using proceeds from the successful divestiture of noncore businesses; Improved operating income margins by 145 basis points sequentially to 15.4% led by a 183 basis point gain in the international operations; North America improved by 92 basis points; Increased North America revenues by 9% sequentially and 14% year-over-year; and Completed the planned cost reductions in our core businesses. Third Quarter 2014 Results

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Revenue for the third quarter of 2014 improved 4% sequentially and was $3.88 billion compared with $3.71 billion in the second quarter of 2014 and $3.82 billion in the third quarter of 2013. Excluding the impact of our divested businesses, third quarter revenues improved 8% sequentially. GAAP Net Income for the third quarter of 2014 was $77 million, or $0.10 per diluted share. After-tax charges of $171 million for the third quarter included: $81 million, net of tax, consisting of severance, restructuring and exit costs related to the workforce reduction and closure of businesses in North Africa, principally Libya, that were negatively impacted by recent disruptions; $78 million, net of tax, consisting of severance, restructuring and exit costs related to the workforce reduction and the closure of underperforming operations in specific markets other than North Africa; $21 million of other costs, net of tax, primarily consisting of professional fees and other costs associated with the divestiture program; $4 million, net of tax, associated with the legacy lump sum contracts in Iraq; and Offset by a $13 million gain, net of tax, associated with the sale of non-core businesses. Net income on a non-GAAP basis for the third quarter of 2014 was $248 million compared to $186 million in the second quarter of 2014 and $177 million in the third quarter of 2013.

BAKER HUGHES ACQUIRES WEATHERFORD’S PIPELINE AND SPECIALTY SERVICES BUSINESS The acquisition provides Baker Hughes with an expanded range of pre-commissioning, deepwater and in-line inspection services worldwide. The addition of over 700 process and pipeline specialists to Baker Hughes’ Process and Pipeline Services further enhances the company’s ability to provide innovative solutions for oil and gas asset owners and operators, upstream, midstream and downstream. “This acquisition adds sophisticated subsea pipeline commissioning services and new ultrasonic inline inspection technologies to the Baker Hughes portfolio,” said Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes. “Expanding our services will allow us to more effectively address our customers’ process and pipeline challenges.”

Commenting on the closing of this transaction, Bernard J. DurocDanner, Chairman, President and Chief Executive Officer of Weatherford, stated, “We are Weatherford’s operating income margins continued to improve for the third consecutive pleased with the closing of this quarter, with strong incrementals of 48%, driven mainly by increases in the core business transaction with Baker Hughes. margins. The sequential operating income improvements were driven by: This combination enhances the focus and service delivery to our Europe/Sub-Sahara Africa/Russia, where a nearly 500 basis point improvement in pipeline and specialty services operating income margins was attributable to continued growth and new contracts in Sub-Sahara Africa and higher revenues and operating income from core businesses in customers worldwide and allows Russia; for growth opportunities for Latin America, driven by higher unconventional activity in Argentina, increases in Brazil the employees. This transaction on the start-up of new Well Construction contracts and increases in overall activity in also demonstrates the execution Venezuela; and North America, where margin improvements were attributable to higher activity levels in capabilities of the Weatherford Canada with the seasonal recovery following the spring breakup and stronger Formation team and is another important step Evaluation, Completion and Artificial Lift margins in the U.S. in our restructuring efforts this These improvements were partially offset by Middle East/North Africa/Asia Pacific, year. All proceeds will be used to where disruptions in Northern Iraq and North Africa weighed slightly on operating pay down outstanding debt.” income margins during the third quarter despite an improvement in overall operating income from higher revenues.

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Craig Group Takes Gold for Well-being in the Workplace Craig Group has been awarded a top accolade for promoting a healthier workforce.

£70million investment plan in action Craig Group, has announced the launch of two new D-class IMT 950 Emergency Response and Rescue Vessels (ERRVs). Part of a £70million investment plan for North Star Shipping which will see a total of six vessels delivered between 2014 and 2016, they have been named the Grampian Dynamic and the Grampian Dynasty and will create 48 new jobs.

Douglas Craig, Chairman and Managing Director of Craig Group, said:

The company’s newly devised programme raises awareness of the impact of employees’ working life and their lifestyle on the wider environment, as well as delivering health and safety training. Douglas Craig, chairman and managing director of Craig Group, said:

“This is a significant investment by Craig Group and is one we are making as a result of our commitment to our clients, our employees and the marine industry. These new vessels are now part of a fleet that is not only at the forefront of technology but also at the forefront of safety.”

“Working towards the Gold Award has allowed us build a company-wide culture which has motivated and encouraged staff members to address their health goals and workplace objectives.

50 metres in length, the vessels will be outfitted as a minimum with one daughter craft, one fast rescue craft and state of the art survival facilities. An additional two D-class vessels the Grampian Deliverance and the Grampian Devotion will be launched by North Star Shipping in 2015, followed by two F-class IMT 958 multi-role ERRVs in early 2016, completing the investment plan.

Craig Group’s success in securing the Healthy Working Lives Gold Award is testament to the firm’s commitment to its most valuable asset – its people.

Slightly larger at 58 metres long with diesel electric propulsion via twin Azimuth Stern Drives, the F-Class vessels 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.

Healthy and motivated staff are essential to any organisation and is something we place great importance on.”

Callum Bruce, managing director, of North Star Shipping which is operated by Craig Group said:

The Healthy Working Lives Award Programme is designed to promote a healthier workplace, offering support to employers and employees to develop practical health promotion and safety themes in the workplace.

“Our new build programme cements North Star Shipping’s position as the largest wholly owned British fleet, engaged in the UK offshore industry.” Craig Group has invested a total of £350 million in 28 new vessels for North Star Shipping, since 2003, including this most recent commitment. This investment also allows North Star Shipping to continue to support British Shipping by training almost 100 cadets, supporting the next generation of seafarers in the industry. At present, including the two new D-class ERRVs, the fleet stands at 37 vessels and includes a mix of Platform Supply, Tanker Assist, ROV Support and Emergency Response and Rescue Vessels.

The programme provides a step by step route to improving health at work, including healthy eating, health and safety awareness, supporting staff attendance and addressing mental health and wellbeing issues.

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Built at the Balenciaga Shipyard in Northern Spain, the vessels have secured contracts with North Sea Operators, commencing immediately following delivery from the shipyard.

Building on its existing NHS Healthy Working Lives Silver Award the company has been awarded the highest level possible, Gold, for their commitment to improving the health and well-being of staff. They received the award following their development of a three year health, safety and well-being strategy.

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PETRONAS ANNOUNCES THE COMMENCEMENT OF OIL PRODUCTION VIA GUMUSUT-KAKAP FLOATING PRODUCTION FACILITY PETRONAS is pleased to announce that the Gumusut-Kakap floating production facility, located approximately 120 kilometres off the coast of Sabah, Malaysia has started oil production.

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The Gumusut-Kakap field sited in waters up to 1,200 metres deep is Malaysia’s third deepwater field brought on-stream after Kikeh and Siakap-North Petai fields. The Gumusut-Kakap field is expected to reach an annual peak oil production of around 135,000 barrels a day. The field’s full development system currently comprises 14 out of 19 planned subsea wells tied back to a permanent structure of a semi-submersible floating production system and an oil export pipeline that will bring the crude to the Sabah Oil and Gas Terminal (SOGT) in Kimanis, also in Sabah. “The move into deepwater is a natural step that we have undertaken towards realising our priority to monetise, increase and maximise our resources and values while we continue to sustain and grow production,” said PETRONAS President and Group CEO, Tan Sri Dato’ Shamsul Azhar Abbas.

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PetroSA records operating profit (before impairment) of R2, 2billion for 2013/14 financial year PetroSA, South Africa’s National Oil Company (NOC), has recorded a solid performance in a challenging 2013/14 financial year that saw the NOC achieve an operating profit before impairment of R2, 2billion (2012/13: R983million). The R3, 4billion impairment charge was against the NOC’s onshore and offshore assets, resulting in an overall net loss of R1, 65billion. This is the result of a volatile economic environment; creep in project costs and delays in the feedstock drilling programme (Project Ikhwezi). “PetroSA has had a trying year with the main focus being on the sustainability of the refinery, given the declining gas feedstock. The sustainability of our refinery is critical as it not only contributes to the sustainability of our business but also to our total revenue,” Ms Nosizwe Nokwe-Macamo, the PetroSA Group CEO said. Despite a challenging operating environment and tough macro-economic conditions, PetroSA managed to book a 12% increase in revenue to R21, 2 billion (2012/13: R18, 9billion). The R2, 2billion operating profit was also the highest the company has achieved in three years. The better-than-expected revenues were the result of increased local trading of finished products, the good performance of the company’s subsidiary PetroSA Ghana and a positive impact of the Rands 15% weakening against the US Dollar and other major currencies. PetroSA Ghana contributed R328million towards net profit (2012/13: R232million). PetroSA’s financial position also continues to remain strong. In the year under review the company had total assets valued at R34billion (2012/13: R35, 7billion), with a cash balance of R5, 5 billion (2012/13:R7, 4billion). Due to diminishing gas feedstock, PetroSA has seen significant challenges at the Mossel Bay-based Gas-To-Liquids (GTL) refinery. In the 2013/14 financial year the GTL refinery produced 5.8 MMbbls of refined products, 14% below target.

This, he added, further strengthens PETRONAS’ rationale for developing expertise in deepwater due to the readily available opportunities in Malaysia, which contributes positively to PETRONAS and the nation.

“The Group experienced a challenging financial year, with lower than expected landed gas, production volumes as well as sales volumes not meeting the expectations of the corporate plan,” Ms Lindiwe Mthimunye-Bakoro, the PetroSA Group CFO said.

“Deepwater is a technology-intensive discipline with many risks that require skilled players to unlock hydrocarbon potential. Credit for this significant milestone goes to the collaborative efforts among Sabah Shell Petroleum Co., Murphy Sabah Oil Co., Conoco Philips Sabah Ltd. and PETRONAS Carigali Sdn Bhd.

In an effort to deal with the feedstock challenge, PetroSA has embarked on various initiatives aimed at sustaining the GTL refinery and viability of the company. These include the five-well drilling programme called Project Ikhwezi, the Asset Development Plan, an initiative to look at alternatives to sustain the GTL refinery, and a project to import Liquefied Natural Gas to South Africa.

“Therefore developing and harnessing these capabilities domestically will enable PETRONAS to compete globally for opportunities in these areas,” said Tan Sri Dato’ Shamsul Azhar Abbas

“The Board believes that the Group is a going concern and has adequate financial resources to continue operations into the foreseeable future,” she added.

The company has also embarked on a rigorous cost optimisation initiative that seeks to realise a R1billion permanent cost saving per annum over the next few financial years. During the 2013/14 period PetroSA also made significant strides in reducing fruitless and wasteful expenditure from R31million in the 2012/13 financial year, to R6million. Payments to suppliers of goods and services totalled R24, 19billion. The total procurement expenditure for Broad-Based Black Economic Empowerment-compliant companies (as per the codes; level 1-8) equated to R13, 93billion for the period.

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

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Tyco Fire & Integrated Solutions have secured Chemical Injection contract worth £5m PORT SAN ANTONIO’S EAST KELLY RAILPORT CONTINUES STRONG PERFORMANCE Port San Antonio’s East Kelly Railport experienced another strong year in logistics activity in FY2014, ending Oct. 1. Operations at the 350-acre railpark, located minutes from downtown San Antonio and adjacent to Union Pacific’s South San Antonio Classification Yard, served almost 10,000 railcars over the 12-month period, setting a new record. The 350-acre site has direct access to Union Pacific Railroad and BNSF Railway trains. It is centrally located with quick access to major area highways, and has important opportunities ahead in its ongoing support for key sectors of the local economy, including energy, retail, construction and manufacturing.

Rico indicated that logistics service providers at East Kelly Railport processed 9,983 railcars in FY2014—a slight increase over the previous record of 9,693 railcars handled in FY2013. About two-thirds of the volume is the result of sand, pipe and equipment that arrives by train and is transferred onto trucks for delivery to oil and gas well sites throughout the Eagle Ford Shale region. Traffic during the last two years reflects an almost four-fold growth in activity since the launched the railpark. In FY2008, the first full year of operations, 2,764 railcars were processed at East Kelly, with similar activity through FY2010. Port tenants who handle rail cargo include RLI Logistics, a transload specialist for bulk commodities and oversized equipment; Fiesta Warehousing & Distribution, which operates more than 300,000 square feet of railand truck-served space for storage and distribution of food and other consumer goods; and The Greenbrier Companies, which specializes in railcar maintenance and repair. About 150 acres remain for new built-to-suit facilities at East Kelly, including logistics and manufacturing options with direct rail access. Port customers who do business internationally can also activate a foreign-trade zone option, eliminating or deferring import duties on finished products, components or raw materials arriving from abroad. Customers can also use FTZ services on an as-needed basis through The OpTech Group, which operates a 50,000-square-foot facility at the Railport that serves as the city’s only public FTZ. The company also provides warehousing and order fulfillment services. Watco Companies has played an essential role in the Railport’s growth. Starting in 2012, the Kansas-based firm, a leading operator of short rail lines across the country, doubled track at East Kelly from four to eight miles, including a new spur that allows the handling of unit trains (approximately 100 railcars at a time with the same type of cargo). These additions have grown the Railport’s capacity four-fold--from 5,000 railcars a year before the track additions to a current limit of up to 20,000 railcars a year. Furthermore, in 2012 Watco launched the San Antonio Central Railroad, whose engine hauls railcars from Union Pacific Railroad and BNSF Railway trains outside the Railport and delivers them directly to customers’ facilities within Port property. As it grows the Railport, the Port and its customers have worked closely with surrounding communities to ensure safety. The Port does not allow placarded hazardous material railcars to enter the site. Furthermore, the organization has been working closely with the City of San Antonio to ensure that trucks accessing the railpark to pick-up rail cargo use special routes that provide quick access to U.S. 90 and area interstate highways. Currently, the Port is working with the City of San Antonio to undertake about $8 million in road improvements on Quintana Road immediately outside the Railport, which will begin in 2016. The new infrastructure, whose funding includes $6 million provided by the San Antonio-Bexar County Metropolitan Planning Organization (MPO), will widen the road and improve drainage—increasing overall safety at the Railport and for the surrounding community.

Ian Birks, General Manager of Tyco’s division in Norwich has stated that the deal has justified a £2m investment programme to move to bigger premises. The new office based in Bowthorpe with a work force circa 100, is four times larger than their previous location. Tyco’s Wellhead Process Control and Chemical Injection division has been based in Norwich for 19 years and is one of eight offices throughout the UK working within the Oil, Gas, Marine and Energy markets. This investment has enabled the business to target more overseas work, focus on growth and take on larger projects. Henry Green, Operations Director has said securing these projects has been fantastic news for Tyco especially the Norwich team and is great for the local economy.

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“This has been another good year at East Kelly Railport—the result of having a strategic location and working closely with customers and partners to capture a range of opportunities,” said Germán Rico, East Kelly Railport General Manager. “When the Railport was launched a few years ago, we saw moderate increases year-over-year. Eagle Ford has accelerated that process significantly, and we continue to see robust activity in other sectors throughout the region as well.”

The contract will see Tyco Fire & Integrated Solutions (Tyco) supply hydraulic chemical injection equipment for a Floating Production Storage and Offloading Vessel off the Western Isles of Shetland. The package includes design, engineering and manufacture of a 60,000 litre storage system and future servicing and maintenance. This new project has come at a great time for Tyco as they continue to focus on growth and development within the Oil and Gas market, not just within the North Sea but worldwide.

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Wood Group Mustang selected to provide engineering services for Statoil Snorre C platform

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Wood Group Mustang has been awarded the pre-front-end engineering design (preFEED) contract by Statoil for the proposed Snorre C tension leg platform (TLP) to be located on the Norwegian continental shelf. Work is being conducted by Wood Group Mustang and Wood Group Kenny and follows their completion of the feasibility phase of the project in 2013.

Wood Group Kenny awarded subsea pipeline FEED contract for carbon capture and storage project Wood Group Kenny has been awarded the front end engineering design (FEED) for the subsea and pipeline element of the Peterhead Carbon Capture and Storage (CCS) project in Aberdeenshire. The project, the world’s first full-chain CCS project on a gas-fired power station, is being developed by Shell, with strategic support from Scottish and Southern Energy (SSE). The scope of the six-month contract includes: developing a landfall solution at the Peterhead Power Station; design of a new carbon dioxide (CO2) export pipeline from Peterhead Power Station to a subsea tie-in with the existing Goldeneye pipeline; and, a new subsea intervention valve (SSIV), including controls system and tie-in spools. A total of 80 engineers will support the project from Wood Group Kenny offices in Aberdeen and London. Wood Group Kenny Regional Director Bob MacDonald said: “We are honoured to be involved in this unique project in the North Sea. Using our 30 years of subsea infrastructure design, Wood Group Kenny is well placed to deliver high-quality, cost-effective solutions that will help achieve the targets of the UK Government.” Business, Enterprise & Energy Minister Matthew Hancock said: “We are leading the way in Europe in developing this innovative low-carbon technology. Testing the commercial feasibility of Carbon Capture Storage is an important step. “So far, more than 20 Front End Engineering and Design subcontracts have been awarded supporting both the Peterhead and White Rose CCS Commercialisation Programme projects. Combined, these projects if successful could support jobs during construction and generate enough clean electricity for over one million homes upon completion.” The Peterhead CCS project forms a significant part of the UK Government’s CCS roadmap. The development of cost-effective technology and infrastructure is the only way to collect the CO2 from heavy industry and achieve decarbonisation in the UK’s power and industrial sectors.

Wood Group Mustang is performing the pre-FEED study and is responsible for project management, topsides design, and integration of the hull, drilling and riser facilities. Wood Group Kenny is responsible for the engineering of the production, injection and drilling top tensioned risers, the import/export flexible and umbilical systems, and subsea drilling template. Simon Harris, Wood Group Mustang’s Offshore business unit manager for Europe, said“We are very excited to be involved in the Snorre C project. Wood Group Mustang has been involved in the design of half of the TLPs in operation around the world and we will use our knowledge and expertise to challenge the norm for North Sea platforms. We are pleased to be continuing our relationship with Statoil and assisting them to deliver a cost-efficient facility.” Wood Group has supported Statoil for more than 20 years. Other current projects for Statoil include Wood Group Kenny’s detail design for the Edvard Grieg oil and gas export pipelines, and Wood Group Mustang’s concept selection studies for the Krafla facility for the Norwegian continental shelf. In addition, Wood Group Mustang is working on the Ivar Aasen topsides for Det Norske, which will also be located on the Norwegian continental shelf.

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Dow Innovation:

Fueling Sustainability & Productivity This is an exciting, and challenging, time to be part of the global oil and gas industry. Population growth, emerging economy urbanization and industrialization, freshwater scarcities, and environmental pressures are converging to generate enormous performance imperatives as the industry strives to meet the steadily rising worldwide demand for energy.

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Increasingly, operators are harvesting oil and gas from previously inaccessible sources, ranging from deeply embedded shale and oil sands to deep water and ever more high-temperature, high-pressure reserves. New solutions are necessary to extract energy efficiently from these unconventional sources, and to enhance recovery from existing wells. Technologies are required to remove different contaminants from unconventional oil and gas sources, and to minimize emissions and overall environmental impact. Water-intensive operations need innovative, economical solutions for minimizing water consumption, treating and disposing wastewater, and optimizing water acquisition and utilization processes. The energy industry requires more innovative, productive and sustainable solutions that are less time, capital and physical resource intensive. These new challenges are complex and difficult for any single stakeholder to solve. They require multidisciplinary science and technology solutions â&#x20AC;&#x201C; precisely what Dow offers the oil & gas and energy industries.

Norm Byrne, R&D Director of Dow Oil Gas & Mining and Larry Ryan, Business President of Dow Energy & Water Solutions

A respected partner in the global oil patch for more than 70 years, Dow understands these emerging challenges. For decades, the industry has relied on Dowâ&#x20AC;&#x2122;s advanced chemistry, engineering and materials science capabilities to help turn the biggest challenges into unique opportunities for maximizing production and optimizing efficiency while helping to minimize costs, resource consumption and emissions â&#x20AC;&#x201C; from exploration and production to refining and distribution.

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Today, Dow is uniquely positioned to address local and regional hydrocarbon industry challenges worldwide. Familiar with individual company and local needs, Dow’s oil and gas experts draw upon global R&D resources and decades of experience for customizing solutions and services tailored to the evolving needs our customers. And Dow’s experts routinely leverage a first-class toolbox of technologies for addressing customer challenges:

• Dow’s branded systems and solutions for cost-effective, sustainable operations relating to exploration,

production, enhanced oil recovery, transportation, refining, gas processing and distribution are industry standards.

• With a broad portfolio of ion exchange resins, reverse osmosis membranes, ultrafiltration membranes and electrodeionization products – Dow spearheads the development of sustainable technologies that integrate water and energy requirements to help oil and gas customers optimize all phases of their water usage.

• Dow also offers the oil and gas industry a broad portfolio of innovative microbial control technologies to help maximize production quantity and quality, combat microbial formation damage and enhance site safety. An optimized biocides program can help control microbial growth and microbially influenced corrosion, reduce well and reservoir souring, and improve production and resource recovery safely and sustainably in a variety of hydrocarbon operations.

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Dow’s Community Approach Dow believes the health of its business is fundamentally intertwined with the social and economic health of every community and region where it conducts business. The company’s goal is to be perceived as a local company with global resources, not the reverse. For instance, after 40 years in the Middle East and North Africa region, Dow maintains seven offices, six manufacturing plants, two technical service centers and an R&D center … but numbers don’t tell the real story.

For more than 100 years, innovation has been the key to Dow’s ability to solve tough customer problems. Today, Dow is a global enterprise combining the power of science and technology to help address many of the world’s most challenging problems in more than 180 countries. With more than 10,000 active patents, 5,500 dedicated esearchers worldwide and a 2014 R&D budget of approximately $2.0 billion, Dow has deep and broad expertise in chemistry, analytical science, biotechnology, catalysis, ceramics, materials science, polymer science, separation science and engineering. Dow recognizes that the source of its innovation prowess is the most valuable element of all – the human element. The company is continually seeking the best and the brightest scientific, engineering and commercial talent from around the world.

Dow’s growing team of local technical and commercial experts partner face-to-face with regional businesses on a daily basis. Dow’s people are intimately familiar with customer, community and regional challenges and aspirations. The company routinely delivers tailored regional solutions. For example, Dow is developing a high-temperature specialty solvent for gas treating designed to eliminate the need for cooling in hot climates – a product that has the potential to save Middle Eastern gas plants and refineries approximately 30 percent in both capital and operating costs, while minimizing environmental impact. The company’s regional research center is based at King Abdullah University of Science and Technology (KAUST) in Saudi Arabia to support Dow’s goal of helping the country foster a knowledge-based economy. The R&D center is currently developing innovative, science-based solutions for challenges in the region’s water, energy and infrastructure industries – just one of many examples of Dow’s local initiatives for helping to build stronger, healthier communities throughout the region.

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Natural Gas Processing: More Productivity + More Efficiency Natural gas exploration, production and use have become a high priority worldwide for many reasons: it is a relatively clean-burning fuel and a valuable industrial feedstock; it is relatively abundant; it is comparatively inexpensive in certain regions; and it can be efficiently processed to pipeline specification for local use. Consequently, natural gas is becoming the fuel of choice for industrial, power, and residential applications. These and other factors have generated new technical and economic challenges that vary from region to region for natural gas processors. In North America, supply is close to outpacing demand, placing downward pressure on prices and operating margins. In gas-rich regions such as the Middle East, there is growing interest in using gas for domestic power generation by drawing from local reserves high in CO2, H2S, water and other impurities. Tightening environmental regulations in many regions intensify the demand for cleaner gas solutions and efficient, cost-effective operations.

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Combined, these and other issues add up to one thing for natural gas processing: a critical need to maximize output and minimize costs. With seven decades of experience in gas treating and more than 1,000 gas treating references worldwide, Dow recognizes the cost and performance pressures gas processors are facing today. The companyâ&#x20AC;&#x2122;s team of research scientists and application engineers focus on helping customers around the world meet their unique gas specification and emission requirements, increase plant capacity, decrease capital and operating expenses, and extend asset life. Solving customer efficiency and margin challenges is routine for Dowâ&#x20AC;&#x2122;s global team of experts, who draw upon one of the broadest portfolios of proven, reliable products for gas sweetening (heat management) and one of the broadest selections of gas treating technologies and services available. Dow is a leading manufacturer of amine and physical solvents used in gas sweetening processes for the selective removal of CO2, the selective separation of CO2 and H2S, mercaptan removal, bulk removal of acid gases, and acid gas removal from liquid hydrocarbons.

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The company’s UCARSOL™ and SELEXOL™ specialty solvents and alkanolamine offerings cover the widest range of gas impurities and treatment requirements for natural gas, unconventional gas, refinery gas, and liquid hydrocarbon treating. Dow’s experts routinely formulate solvents to provide specific acid gas removal performance for gases with widely varying H2S and CO2 content. Dow is also the only gas treating solvent supplier providing a solvent purification system to reduce heat stable amine salts – the patented UCARSEP™ Process. This electrodialysis purification system treats a slipstream from the amine system while the system is still running to preserve the amine solution’s functionality, while avoiding costly shutdown time. Many customers take full advantage of Dow’s AMINE MANAGEMENTS Program (AMP) for integrated gas treating processes – a comprehensive monitoring and maintenance system designed to help optimize amine usage, reduce emissions and energy use, maximize solvent life, and minimize contaminants and corrosion. Advanced technical support from Dow includes: simulation capabilities to model current and future gas treating needs; access to a state-of-the-art pilot plant that can reproduce processes; ongoing analytical support, including troubleshooting analytical capabilities; plus an experienced technical service team to assist with gas treating challenges as they arise. Through AMP, Dow also offers customers comprehensive gas treatment solutions for all phases of a facility’s life cycle, including plant design, start-up and operational phases. For new or expanded liquefied natural gas (LNG) trains and gas treating facilities, Dow’s assistance begins with proprietary simulation capabilities for calculating optimal design and performance parameters. Dow works closely with contractors during construction, and helps train plant personnel to help ensure smooth, on-time start-ups. This free service is offered for all natural gas facilities, including many of the multi-billion dollar mega-projects recently completed

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in the Middle East for companies such as RasGas, GASCO, KNPC and others. These services are a major reason that the majority of LNG produced in the Middle East is processed using Dow technology. Dow is also a leading supplier of high temperature heat transfer fluids and expert advice that helps customers reduce the piping and equipment size of their operations compared to steam systems. The company’s DOWTHERM™ line of heat transfer fluids are used extensively in the Middle East and globally to transfer heat from fired equipment generating the heat to process operations needing the heat. Recently DOWTHERM™ G was selected for the Saudi Aramco project called Shaybah. Dow offers low-temperature fluids for cooling loops, high-temperature fluids for heating loops, and silicone-based fluids for challenging operating conditions. The company also offers sample analysis to ensure customer heat transfer fluids are performing at optimum conditions over a long period of time. The company offers many other solutions for efficient gas processing, including cost-effective methods for removing scale, grease, and the hydrocarbon-agglomerated iron sulfide foulant common to amine systems; dessicants for dehydrating natural gas prior to transmission through pipelines; and coolants for freeze and burst protection. Whether customers are seeking total or selective acid gas removal, Dow has the know-how and technologies to evaluate unique needs, develop customized solutions, and provide experienced technical service and support. Dow offers a broad range of solutions for the challenges of natural gas processing: amines, physical solvents, hybrid solvents, antifoams, glycols for dehydration, high temperature heat transfer fluids, low temperature heat transfer fluids, silicone based heat transfer fluids, reclamation technologies, and many others. his allows Dow to help customers select the best technology or combination of technologies for specific needs. Regional teams are available for quick response to customer requirements, with the backing of the global team to assist as required.

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EOR: More Oil, More Efficient Water Treatment As “easy oil” from established wells deplete over time, enhanced oil recovery (EOR) becomes an increasingly important strategy in terms of meeting global demand for energy and reaching company financial targets. EOR techniques are especially water intensive – injecting large quantities of water into reservoirs at high pressures to stimulate 20 to 30 percent additional oil recovery from existing wells.

source waters for injection or produced and flowback waters for reuse or discharge. During the primary separation step, crude oil is treated with emulsion breakers that aid in removing water from water-in-oil emulsions. For instance, Dow’s DEMTROL™ line of emulsion breakers is widely used for quickly and efficiently enabling water removal from water-inoil emulsions to provide dry, on-specification oil.

This presents oil operators with water management issues for both onshore and offshore operations, including water acquisition, utilization, treatment and disposal. By volume, water production represents approximately 98 percent of the non-energy related waste produced by the industry, placing additional stress on limited global freshwater supplies. Consequently, operators are actively seeking efficient technology and water strategy solutions for their EOR and other operations to help reduce costs, increase uptime, protect downstream assets and meet environmental requirements.

Water clarifiers are then used to further separate oil from water streams to meet regulatory discharge limits required for reinjection, disposal and reuse – but there are certain challenges involved. For instance, conventional clarifying technologies sometimes cause downstream issues, including water handling system fouling and the extraction of gel-like solids during and after the clarification step. Consequently, it is of the utmost importance that produced water is treated with precise, reliable chemistry that not only reduces solids and contaminants based on application perimeters, but also helps prevent pump and system fouling.

A range of advanced water systems and innovative chemistries are available to meet these objectives and efficiently remove solids from produced and flowback water, which have widely varying characteristics depending on location, formation geochemistry, and other factors. These technologies also open the door to broader water sourcing strategies, including brackish surface or groundwater, treated industrial or municipal wastewater, and recycled produced or flowback water.

Dow’s ROMAX™ 6000 and 9000 series of water clarifiers were designed to address these issues and help protect the chemical injection pumps used to dose them into the produced water stream by minimizing fouling. While easy to use and apply, Dow’s clarifier chemistry also effectively streamlines treatment and increases operational efficiency, which can ultimately reduce operational costs, maintenance and handling. The treated, produced water helps meet regulatory oil and grease specifications, and can be re-injected, reused, or discharged back into the environment.

Dow offers a suite of products for chemical and miscible gas flooding in EOR applications. For instance, in heterogeneous reservoirs or those with mobility control issues or gravity override, producers can utilize Dow’s ELEVATE™ line of CO2 foaming surfactants to help improve CO2 conformance, enhance reservoir sweep, reduce CO2 cycling and lower gas-to-oil ratios. To effectively apply the proprietary ELEVATE™ CO2 Enhanced Oil Recovery Conformance Solution, Dow’s technical service and support team offers reservoir evaluations and modeling, customized product selection and validation, economic evaluations and field implementation. A variety of aqueous-based technologies are available today to facilitate complete or targeted removal of ionic, organic and particulate contaminants from

Today’s conventional clarifier technologies often are delivered either as a solid or as a hydrocarbonbased solvent. These products require inversion or a maintenance intensive dilution process which can take up to 18 hours of mixing time prior to dosing. Dow’s aqueous-based clarifiers can be dosed directly without inversion. ROMAX water clarifiers also eliminate the need for dilution or activation, which ultimately helps reduce operating expense. In fact, the ROMAX 6000 series of anionic, cationic and nonionic water clarifiers are fully formulated and ready to use as soon as they arrive at the field.

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Microbial Control Solutions Bacteria will grow just about anywhere water can be found. In hydrocarbon production and processes, the large volume of associated water provides an environment in which bacteria will thrive. Their presence impacts the quality and quantity of production, but also the safety of the operation. Microbes contribute to the souring of production, corrosion of pipelines and equipment, and the plugging of reservoir pore throats. Advanced stimulation techniques like hydraulic fracturing and enhanced oil recovery (EOR) are more water-intensive processes that provide opportunities for bacterial contamination if not properly controlled with a more advanced biocides program. Dow provides one of the worldâ&#x20AC;&#x2122;s broadest ranges of microbial control actives for oil and gas applications as well as state-of-the-art diagnostic techniques and expertise required for advanced sustainable microbial control. Dow works with multiple collaborators in the hydrocarbon value chain to design and implement novel applications that provide specific, yet extended, microbial control, all while facilitating minimal negative impact on the environment. Microbial control applications can be found all the way from reservoir treatment options to near wellbore treatments, ranging from hydraulic fracturing to topsides remediation of produced and recycled waters. At Dow, treatments are designed to meet three important sustainability criteria: they do their job, do no harm, and go away.

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Shale Oil & Gas: More Water Reuse, More Sustainable The use of hydraulic fracturing to recover oil and gas from shale in North America, Australia and beyond has generated headlines, public concern, entrepreneurial speculation, and government action worldwide. Public concern has centered on possible groundwater contamination and potential overuse of scarce freshwater supplies. Globally, these concerns have limited hydraulic fracturing and production of shale reserves so far to the US, Canada, and Australia, with fledgling production in Argentina, China and Poland. With 32 percent of total estimated global natural gas reserves and 10 percent of estimated oil reserves in shale or tight formations, many other countries are interested in shale gas and tight oil recovery. Resolution of the public concerns and development of safe, sustainable water management in hydraulic fracturing is critical to the industry and our energy-dependent world. The water issue surrounding hydraulic fracturing is part of the inescapable water-energy nexus: water is needed to extract hydrocarbons, and energy is required to produce usable water. Hydraulic fracturing can use more than five million gallons of water per well, which generally ranges from less than 0.1 to 0.8 percent of total water use by basin. Nevertheless, this level of water use can be significant in arid regions or areas experiencing drought. Shale energy operators and regulators in many countries are working to find ways to supply water to the industry without disrupting farms, municipalities and local populations. Of equal concern to the oil and gas industry is the need for precision water quality to ensure that unwanted salts and compounds do not interfere with performance of the fracturing liquid. Shale production water management issues can be summarized as finding economical and sustainable means for water acquisition, water utilization, and wastewater disposal.

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Numerous water treatment technologies are available today to address all of the shale production industry’s water management needs, including water quality, expanded water sourcing, water recycling, sustainable and cost-effective operations. Many of them are relatively unfamiliar to the oil and gas industry, including ultrafiltration (UF), reverse osmosis (RO), nanofiltration (NF), and ion exchange (IO), but these advanced water treatment technologies are widely used in other industries where water scarcity drives reuse and conservation. Existing water treatment technologies not only make it possible to use the lowest quality source water available for fracking, but contribute to higher production at lower costs. For instance, Dow helped a shale producer in the western US achieve a 99.5 percent recovery rate in their flowback water treatment by converting them from traditional bag filters to the TEQUATIC™ PLUS self-cleaning fine particle filter system for removal of oily solids. Designed to facilitate more continuous injection into disposal wells and provide a cleaner water supply around the shale formation, this technology eliminated the need for frequent bag filter change-outs, reduced solid waste disposal, and enabled a cost-saving staff reduction. DOW OPTIPORE™ polymeric adsorbent technology will allow for capture of residual hydrocarbons while protecting the RO system at Encana Oil and Gas’ Neptune Water Treatment Facility in Wyoming which is designed to desalinate produced water to “receiving body quality” – the same purity as mountain spring water. This allows Encana to minimize the use and cost of freshwater resources while minimizing the complexities of local wastewater disposal and the cost of onsite wastewater trucking. Dow also collaborated with Omni Water Solutions in Texas to develop a mobile water treatment unit to effectively treat flowback and produced water at their Eagle Ford shale site. This system combines nanofiltration, ultrafiltration and reverse osmosis membrane technologies to reduce water hardness and boron levels, and to selectively remove ions – such as calcium, magnesium and sulfate. Omni is now able to reuse the high-salinity produced water

that would otherwise interfere with fluid and formation chemistries, and reduce the use of freshwater resources in a state experiencing severe drought conditions. There are many other examples of utilizing available water treatment technology to improve production while reducing costs and environmental impact. Dow believes that the most sustainable hydraulic fracturing process – environmentally and economically – is a cost-effective, closed loop system where none of the materials, including water, are ever exposed to people or the environment. Dow has a wide range of advanced chemistry, bacterial, and technology solutions for water treatment to make this possible – helping operators improve shale oil and gas recovery while minimizing cost and environmental impact throughout the hydraulic fracturing process.

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Working Toward a Sustainable Energy Future As the global population continues to grow and the world gradually transitions to a sustainable, increasingly lower-carbon energy future, balancing the need for clean water and energy will remain a top priority for operators, regulators, and Dow. Experts agree that we will continue to rely on hydrocarbon fuels for many more decades, so Dowâ&#x20AC;&#x2122;s goal is to strengthen every link in the hydrocarbon value chain, continually breaking ground to help optimize supply, improve efficiencies and manage emissions. Whether customers are looking to maximize oilfield production, improve refinery or gas processing operations, optimize water management or reduce their carbon footprint, Dow will always be a trusted collaborator for innovation. Dowâ&#x20AC;&#x2122;s mission is to be a game-changing partner dedicated to fueling innovations that create new opportunities and provide solutions for the most compelling challenges the oil and gas industry is facing now, and in the future. The companyâ&#x20AC;&#x2122;s approach toward a sustainable energy future is elemental. Dow harnesses the power of the periodic table and the human element to build bridges between possibilities and progress at the intersection of chemistry, biology and physics.

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VSMPO Titan Ukraine

“geared up for surging demand expected in titanium tube market”

VSMPO Titan Ukraine Ltd. and VSMPO Titan Scandinavia AB are members of the titanium industry’s largest fully integrated producer, VSMPO-AVISMA Corporation. With production of seamless titanium tubes since 1964 in Nikopol, Ukraine, VSMPO Titan Ukraine Ltd. is a unique special-purpose tube works focused on manufacturing of both seamless cold-worked and welded tubes from titanium and its alloys. VSMPO Titan Scandinavia AB manages the Ukraine operation and sales in Scandinavia from the business office in Örnsköldsvik, Sweden. In November 2012 VSMPO-AVISMA Corporation decided to create a high technology site for manufacturing welded tubes of titanium alloys at VSMPO Titan Ukraine Ltd. and in December 2012 two automated tube welding lines, were purchased for fabricating welded titanium tubes with outside diameter from 12.0 to 60.3 mm with a wide range of wall thickness. To support the production of hydraulic tubes from titanium alloys for aerospace application, long-term investments will be made in 2016 by purchase of new pilger mills.

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VSMPO Titan Ukraine Ltd. complies with world standards for production and is approved with a variety of certificates, such as the TUV Nord certificate for compliance of quality management system, with requirements for international standard ISO 9001. It is also SAE AS 9100, ISO 14001, EN/ISO 17025, PRI Nadcap (MTL, CP, NDT, HT and Fluid Distributional Systems) approved. After participating in Statoilâ&#x20AC;&#x2122;s qualification program in 2011, the enterprise was included into the TR-2000 list of approved suppliers according to NORSOK M-650 Rev. 4, qualification of special material manufacturers. Both aerospace and NORSOK vendor approvals conduct more detailed, technically superior audits which improves supplier quality throughout industry through stringent requirements. It is one of the way in which the petroleum and aerospace industries identifies those who excel at manufacturing quality products. These approvals establish a set of qualification requirements to verify that the manufacturer has sufficient competence, experience, necessary facilities and equipment to manufacture these high-quality products and to provide a full range of programs and services designed to improve manufacturing process, product quality and promoting collaboration between global stakeholders in the petroleum and aerospace industries. The technical case for titanium application to seawater service was well established in the early 1970â&#x20AC;&#x2122;s and performance of titanium over the last 40 years has validated the technical case. With expanding global production the application base for titanium was able to expand and this expansion allowed the stocking of service centers worldwide to support existing and developing applications. Resistance to the various forms of corrosion in seawater compare to Al, Cu, Ni and stainless steel alloys show that only titanium is resistant to all forms of corrosion in seawater to temperature exceeding 70 0C.

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The markets for traditional corrosion resistant materials like copper, copper-nickel are facing some important supply side constraints that could potentially lead to price rises, improving the economics of substitute materials. The price differential between copper and titanium can be a good indicator of the business case for using titanium in industrial heat exchange applications since copper-nickel and titanium tubes are to a certain degree interchangeable. Production of copper and nickel is relying on continually decreasing ore grades as high grade readily accessible resources have been mined. With energy prices continuing to rise for many of the same reasons, the expectation is that copper and nickel prices will continue steady escalation. Regulatory restrictions on exports of non-processed nickel ore and increasing production and mining costs for copper and nickel, along with global demand forecasts for electricity and clean water, will result in a cost advantage for titanium products. As titanium has twice the strength of copper-nickel alloys and is nominally Â˝ the density there is significant weight and space savings to be realized when designs are optimized for titanium. Titanium application to industrial processes can grow by new application development or substitution for historical materials of construction. There is a large potential for substitution as strong economic activity has impacted copper and nickel prices dramatically in the recent history, recovering global economic growth can be expected to repeat this trend going forward. The growing stress on the supply side of these commodity metals is impacting on the economics of material selection and titanium will be shown to be an attractive alternative for many applications within these industrial processes. VSMPO Titan Ukraine Ltd. supplied 300MT of Grade 2 seamless titanium tube for the Gasco 4th NGL project in UAE, 60MT â&#x20AC;&#x201C; for KNPC 4th Gas Train project in Kuwait and have been included into such manufacturer lists as Saipem, Shell, Exxon, KNPC, GASCO, Statoil, Dow and Sabic.

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VSMPO-TITAN UKRAINE LTD. 56, Trubnikov Ave. 53201, Nikopol, Ukraine tel: +380 566 638810 fax: +380 566 638800 e-mail: info@tw-vsmpoavisma.com.ua web: www.tw-vsmpoavisma.com web: www.vsmpo.ru

VSMPO Titan Scandinavia AB Sjรถgatan 1A SE-891 60, ร rnskรถldsvik, Sweden tel: +46 660 15473 fax: +46 660 15474 e-mail: kosta.antonov@tw-vsmpoavisma. com natalia.antonova@tw-vsmpoavisma.com web: www.tw-vsmpoavisma.com web: www.vsmpo.ru

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