ADIPEC 2014

Incorporating news from Projects Oil, Gas and Petrochemical database and Your Industry News - ADIPEC Edition 2014

GAS TECHNOLOGY PAGE 8

MIDDLE EAST PROJECTS PAGE 24

UAE UPSTREAM PRODUCTION PAGE 12

PLUS:

Ferguson Group, INTERKAB, SOS, Fifth Business, Sky-Futures, CMP Products, Eztek and Intergraph

PROJECTSOGP

CONTENTS CLIENT FEATURE

page

Ferguson Group Intergraph

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NEWS IN DEPTH Gas Technology Attracting Women to the Energy Sector UAE Upstream Production

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REGIONAL NEWS: MIDDLE EAST Khazzan and Makarem Upper Zakum Ruwais Refinery Expansion North East Bab

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MIDDLE EAST NEWS CLIENT FEATURE

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INTERKAB CMP Products Tank World Expo

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ProjectsOGP is once again proud to be a media partner with ADIPEC. This year we have our ProjectsOGP Magazine at the show, available to pick up at the media zone for your reading enjoyment.

Our special show edition focuses on inhouse News in Depth reports on Gas Technology, Upstream Production in the UAE and Attracting Women to the Energy Sector. We also have client features from Ferguson Group and Intergraph.

Our project profiles concentrate on the Middle East and cover the Khazzan and Makarem, Upper Zakum, Ruwais Refinery Expansion and the North East Bab projects. We also have a roundup of all the latest contract developments in the Middle East, Asia and around the globe.

I would like to thank all of our clients and partners for their continued support and hope that you enjoy both the publication and the show.

Editor: John Morrison

TECHNOLOGY

Welcome

SOS Eztek

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Editorial team: Ioannis Tzelepis & Louise Douglas

ASIA NEWS

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Design and production: Louise Douglas

GLOBAL PROJECTS

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ON THE MOVE

Advertise: john.morrison@redmistmedia.com t: +44 (0) 1224 582902

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CLIENT FEATURE Sky-Futures Specialist Services

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FINANCE NEWS

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ProjectsOGP Magazine published by: Red Mist Media Ltd INTERKAB House, Links Place Aberdeen, AB11 5DY, UK t: +44 (0)1224 582902 e: info@redmistmedia.com w: www.redmistmedia.com

REACHFURTHER

With our range of services and products including online marketing, advertising, brand awareness, industry news and business intelligence. to find out more: www.redmistmedia.com +44 (0) 1224 582902 info@redmistmedia.com

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CLIENT FEATURE

FERGUSON GROUP, MAKES THE MOST OF MIDDLE EASTERN E&P ACTIVITY Ferguson Group, Middle East Kitchen Space Ferguson Group, Refrigerator/chiller

Ferguson Group provides support services and accommodation for the demanding Middle Eastern region.

The Middle East has long since been a prime location for international oil and gas service companies, with consistent output from some of the highest producing fields in the world.

goods containers, mini containers, half heights, cargo baskets, chemical tanks and mud skips.

With reports suggesting that the Middle Eastern output could grow by as much as 14% in 2014, the region represents 33% of current global oil production. As operations in the region continue to require support, service companies are in region to provide support.

Offshore working requires living and working units, and Ferguson Group has designed a range that specifically addresses the requirements of the region.

The accommodation units, are designed to maximise the safety, security and comfort of the personnel, the footprint space, weight and hook-up capability for rig and vessel managers, transport and lift for the carriers and overall value for money. The A60 fire rated modules can be built to specification, and have been used as bedrooms, offices, gyms, locker rooms, mess with galley and tea shack, medical unit, laboratory and mud logging cabin.

Ferguson Group is a leading supplier of DNV 2.7-1/ EN12079 offshore containers, refrigerated modules, engineering workspace modules and accommodation modules to the offshore energy industry.

Ferguson Group has bases located in the UK, Norway, UAE, Singapore and Australia, and is supported by a network of partners in major oil and gas hubs around the world. Reacting to the high product demand from offshore operators in the region, Ferguson Middle East has a wide range of products to meet the region’s specific need.

Ferguson Middle East, is able to supply a full range of DNV 2.7-1/EN12079 offshore containers, tanks, baskets, workspace and accommodation modules. This includes various cargo carrying units (CCUs) from dry

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Accommodation and Workspace Modules

Temperature Controlled Transportation Through its IceBlue Refrigeration Offshore division, Ferguson Middle East also regularly supplies refrigeration/chiller modules ranging form 2.5m up to 6m dual zone unit.

The need for consistent temperature, of foodstuff, samples, chemical and oils, means that robust, reliable

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CLIENT FEATURE transportation and storage facilities are essential, to avoid costly and timely breakdowns. The reefers are all designed and manufactured to DNV 2.7-1/EN 12079 standards, which means that they are reliable, well made and expertly maintained. Reliability is essential in remote or hard to reach areas, where equipment cannot be replaced easily.

The 6m dual zone refrigerated/chiller module offers storage in either a single or dual zone compartment simultaneously, keeping the content stored at a set temperature which can range from -30°C to +20°C in one or both compartments.

The unit has a moveable bulkhead, which enables the unit to be partitioned and each partition to have a different temperature. This innovative, space efficient design has the same safety features, such as man trapped alarms and low voltage internal equipment, and the space saving features such as optional removable shelf system.

Ferguson Group, Accomodation cabins

Cargo Carrying Units, Waste Skips and Cargo Baskets In order to have the most efficient transport of materials offshore, it is essential that there is a wide range of cargo carrying units (CCUs), available. Ferguson Group’s CCUs are manufactured to DNV 2.7-1/EN 12079 standards, which means that they can withstand long periods in hot temperatures, thus minimising issues associated with broken containers.

For specialised equipment such as anchors, chains and drilling equipment, the group produces a series of cargo baskets that can be fitted out with cradles that protect the equipment, if required. Internal tie down points and a side personnel door, also make them health and safety aware.

Drilling produces waste, and in order to comply with waste management regulations, it is essential that there is a secure durable means of transporting them from the site, to be disposed of in accordance with local environmental legislation.

Ferguson Group waste skips are designed to be able to transport the waste for long distances, and with their lightweight lids and forklift pockets for ease of movement and sump plugs as standard, they form part of many operators’ equipment rosters.

Gearing up for continued growth Ferguson Group recognises the needs of the Middle Eastern oil and gas market and has already been investing significantly in its fleet of equipment, as part of its growth in the region.

They have a number of new product ranges coming

Ferguson Group, Refrigerator/chiller online, with acid and chemical tanks for the offshore movement and storage of liquefied chemicals, an enhanced fleet of mud skips and ancillary equipment such as spreader beams.

Mike Melville, Commercial Director Ferguson Group said: “All of Ferguson Group’s products are designed with a focus on safety, and our personnel are trained to the legally required standards as a minimum.

“There are levels of opportunity for service companies that have never been seen before, and Ferguson Group strives to make the most of this. We will continue offering our world class service to oil and gas companies operating in the region, with a service which is based locally to them.”

www.ferguson-group.com

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CLIENT FEATURE

GAINING TANGIBLE BENEFITS FROM VIRTUAL PLANT ASSETS Owner operators in the capital-intensive process, power, and marine industries are facing greater challenges to ensure their profitability and long-term viability than ever before.

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wners are expanding existing facilities and building new capacity to meet growing demands in the global market. They must do this safely, with finite resources, within demanding schedules to minimize time-to-market/maximize time-in-market, with an increasing number of local and global contractors and within strict capital expenditure (CAPEX) budgets.

In addition, increasingly stringent regulations all add unprecedented pressure when trying to maximize asset performance to achieve safe, sustainable production at lowest possible costs (OPEX). The ever increasing pace of change, volatility and globalization of business places additional demands on owners and their ability to respond flexibly to change. Business as usual is no longer an option.

In this business environment it is no longer sufficient to capture and manage the virtual plant asset which comprises 3D models, laser scans, intelligent and unintelligent CAD drawings, engineering databases etc. but exploit the value this offers to provide actionable information to achieve real business benefits. Key technologies to meet these demands include cloud computing, 3D visualization and mobile access.

IntergraphŠ SmartPlantŠ Enterprise for Owner Operators (SPO) not only manages the engineering design basis but leverages this in the context of critical work processes providing actionable information to support all phases of the facility life-cycle. These preconfigured work processes can be rapidly adjusted to meet specific requirements provide for rapid, low-risk, flexible implementations.

For brownfield facilities where documentation may only be available as files stored on shared drives or as hardcopy Intergraph offers SmartPlant Fusion a technology to rapidly capture existing documentation, extract information and enable effective access. This information and documentation can then be optionally promoted into SPO where it can be managed and maintained.

SPO supports efficient handover of information and

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documentation between contractors and between contractors and the Owner Operator. Costs of handover throughout the facility life-cycle have been estimated to over 2% of Total Installed Cost using traditional approaches, these can be reduced to a fraction if requirements are correctly specified and automated tools used to facilitate the verification and handover of information. SPO’s comprehensive solutions for data validation and handover reduce the time and costs of data take-on and ensure the quality and completeness of data handover.

During the CAPEX phase processes are provided to ensure effective management of stakeholder interfaces, project changes, non-conformities and queries. Management reports provide an oversight and enable management to take effective remedial action. Improved management of these processes can significantly reduce claims and schedule delays.

Systems completion refers to the transition between construction close-out and the plant entering operations. It includes activities such as mechanical completion, commissioning, preservation and pre-startup safety reviews. This is often a complex undertaking, involving many parties and data from many sources. At this stage, small delays in one area can have a serious knock-on effect elsewhere. SPO provides an effective solution to make the systems completion process more efficient with automated allocation of check sheets, 3D visualization and mobile capture of check sheets and punchlists.

SPO offers interoperability with third-party operations systems such as maintenance, reliability, and inspections systems, ensuring that data in these systems is kept in line with the dynamic engineering design basis. A common, role-based portal provides for ready access to information, eliminating painstaking information searches.

Managing change is a safety critical process and multiple, concurrent changes with overlapping scopes are a fact of life. SPO incorporates a change process in operations to provide rigorous Management of

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CLIENT FEATURE Change (MOC) of engineering information with full traceability and audit trail. This preconfigured MOC process includes an electronic workflow for managing the review, authorization, design, and approval of changes in the engineering design basis, and optionally the notification of maintenance to perform changes by creating notification records in a plant maintenance system (such as SAP PM).

Many Owner Operator work processes are undertaken in remote locations or on the plant floor where online access to information is not available. SPO provides mobile applications where information such as tag data and documentation – including 3D models, photorealistic laser scans and hot spotted drawings – can be downloaded into briefcases on tablet PCs or laptops.

This eliminates the need for cumbersome paper documentation and provides ready offline access to and intelligent navigation of information. Processes such as inspection, lock-out/tag-out, turnarounds and many more can be supported. Notes, photos and check sheets can be captured in the field and uploaded to SPO when network connectivity is available, eliminating the need to transcribe mark-ups from paper copies and increasing efficiency across a range of work processes.

Training of workers is an essential element of Process Safety and Asset Integrity programs. Intergraph offers

a 3D training module that uses available 3D CAD models or photo-realistic laser scans to provide highly immersive training scenarios. Complex scenarios can be run in tutorial or test mode and test results securely captured.

SPO has been adopted by a wide range of owner operators ranging from multi-national oil and gas majors and National Oil Companies to smaller single facility implementations. Both on premise and cloud based access is available.

In summary SPO solutions offer a well proven, rapid and low risk route to manage the virtual plant asset supporting a comprehensive range of key work processes throughout the facility life-cycle.

www.intergraph.com

NEWS IN DEPTH

GAS TECHNOLOGY

New technologies are playing a vital role in the production of natural gas around the globe. By: John Morrison The oil and gas industry over the past decades has become a technology leader, with new innovative technologies, helping the advance of natural gas exploration, production, storage and processing.

With end user demand growing, new technology has helped the development of both onshore and offshore, conventional and unconventional gas fields, helping to increase production and efficiency to meet demand.

by shale gas being explored and discovered in Europe, however Russia still remains one of the largest producers and exporters of gas.

Australia’s large gas fields, which dominate the Oceania region have also seen massive, and expensive LNG projects underway.

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China, India, South Korea, and Taiwan all experiencing demand growth of over 20% in 2009.

An increase in power generation using gas generators, has certainly been instrumental to the increase in demand, through the use of cogeneration, gas turbines and steam turbines, from as early as the 2 decades ago, which has been attractive to power generators due to how efficient natural gas is to produce energy.

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These new regions of natural gas resources have meant that the market has become more competitive; even with the efficiency, the end user demand can shift due to delays and costs involved.

Power generators have also started to switch due to the growing renewable surge and the need to cut carbon emissions, as natural gas burns more cleanly than other more traditional hydrocarbons.

A classic example is the US shale boom and its knock on effect to the Australian LNG projects, as well as large European/Russian projects in the Barents Sea. If the US was a target market in meeting the end user demand, the shale boom certainly has effected this target market, and placed doubts over the future of certain gas projects.

It is therefore no surprise then that operators have been focusing on new technology to explore and produce the gas from fields. Large gas discoveries in the US with its recent shale gas boom, has been closely followed

Asia, has been on a par with the US for its recent upsurge in demand, and according to Worldwatch Institute, has experienced the strongest growth, with China, India, South Korea, and Taiwan all experiencing

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NEWS IN DEPTH demand growth of over 20 % in 2009.

The recent Fukushima Nuclear incident in Japan has added to demand for natural gas power, as it seeks ways to find alternative power sources.

Advances in 3-D and 4-D seismic imaging, CO2-sand fracturing, coiled tubing, measurement while drilling, slimhole drilling, deepwater drilling and hydraulic fracturing technologies, can all be attributed to the growth of the natural gas industry, from the exploration and production side and are supporting the boom we are currently witnessing.

efficiency, and capital in the long term, to an already clean and easy to handle hydrocarbon.

For the transportation and processing of the gas, we are also seeing huge developments, with LNG/FLNG and GTL, downstream plants being developed on a large scale to support the current growth, and the technology has advanced with this in order to reduce costs with efficiency.

For upstream exploration, through to production, new smart data methods are being developed, much in the same way as smart grids have been introduced into power transmission. This relies on the input of data into software which can then evaluate any risks involved in the exploration side, from past data.

The liquification and re-gasification of natural gas is a cost effective way in which it is transported, and the new LNG Vessels being put out into the market are also becoming more advanced in the way they store the liquid gas and operate.

There is no doubt that with new technology advances in both the generation for power using natural gas, and the exploration and production, that this hydrocarbon will overtake the others and become dominant in the market.

Technology is also changing how we operate and monitor assets, to increase the efficiency, safety and overall capital of the systems, using gas detectors and leak detectors, as well as measuring technology for processing. Constant inspection of an asset can, with sensors, be a long term way to reduce the amount of inspections required.

It does however, draw concern over older traditional oil assets, as operators move their assets to focus on shale, and other gas projects. This is due to the age of the existing assets and the expense of going further into deepwater to look for new oil fields.

The more clever, modern/digital the asset, the more it can be measured, which then leads to better

The future of the oil and gas industry looks like it will therefore, be moving in favour of natural gas, and technology will play a vital role in helping the momentum of the industry.

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NEWS IN DEPTH

ATTRACTING WOMEN TO THE ENERGY SECTOR

Artist Sue Jane Taylor aboard the Murchison Platform by Robert Pogson

The rise and recognition of women working in the energy sector is becoming a world wide topic of discussion By: Louise Douglas

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ingers cold to the bone and dirt covered nails. The ‘protective’ hard hat constantly slides to one side.

Steel cap boots squeeze tight at your feet, yet they remain cold and damp. An image that is not usually associated with a woman in the workplace and yet this scenario is becoming an increased reality.

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Visual artist Sue Jane Taylor is no stranger to extreme working environments. She has worked for nearly thirty years recording the lives of workers in the North Sea Oil industry on sites such as Piper Alpha, Piper Bravo and Murchison platform.

However, amongst the 160 people on board the Murchison platform only 2 others were women.

72% of industry professionals believe that the sector is still male-dominated

The rise and recognition of women working in oil and gas is becoming a regular topic of discussion around the world. With women taking high ranking positions amongst their male counterparts in a variety of energy sector roles. This recognition is being used to encourage women to break through the outdated statistics that show men as the top leaders in oil and gas.

A survey undertaken in 2013 by NES Global Talent revealed that 45% of women who work in the oil

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and gas industry feel that they do not get the same recognition as their male colleagues. The results of the report highlighted that women feel as if they have to prove themselves and therefore work harder than their male equivalents. This is mainly due to the majority of workers in the industry being still, predominantly male.

However, there is an incentive to change this and create a clear career path of opportunity for women in the oil and gas sector. Positively, the report also revealed that 75% of women do feel welcome working in the oil and gas industry and 95% believe that mentors are important for career advancement. More efforts need to be taken in improving the route to employment for women in to the oil and gas market, whether this is through more available graduate schemes or educating others of the great opportunities that the sector can provide.

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As the oil and gas industry evolves due to advanced technologies, in turn there needs to be a skilled workforce to support this dynamic change. Without the closing of this concerning gender gap, the industry could miss out on leading engineers and a varied workforce that could ultimately be the key to providing solutions for industry clients and partners. Out of the 275 women that took

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NEWS IN DEPTH part in the report 42% said they were neither a mentor nor a mentee. This could be the root of the problem as there appears to be a lack of female representatives for the oil and gas working industry. This can be argued with the lack of women finding places at a Chief Executive level.

A Scandinavian woman, Petra Einarsson was promoted to head of the materials and technology division at Sandvick AB in 2013. Since then she has promoted the importance of entry-level recruitment for women. It was recorded that out of 145 Nordic large-cap companies only 3% had a woman as Chief Executive, compared with 5% of the US. Fortune 500. Sadly these Nordic countries are not alone in these statistics. A recent study by PricewaterhouseCoopers in association with the Women’s Oil Council looked at the 100 largest oil companies in the world and found that only 11% of board seats were in fact, held by women. Although these facts and figures suggest an excessive gender gap, there are companies who are tackling the issue head on. One main company who has gone to great lengths to welcome a female workforce and to support its current employees is global oil giant, Shell. Two female employees of Shell recently won awards for their talents at the esteemed Asian Women of Achievement Awards on 4 June 2014 in London.

In 2012 (Kuwait) Shell also played a dominant part at the International Professionals in Energy Conference for the first time in the GCC countries. The theme of “Empowering Women’s Leadership” ran throughout the conference with Shell shedding light on its global policy to encourage women into the oil and gas sector.

Shell now has a “Women Career Development Program” which is an internal training program that helps with the difficulties and the different transitions that go with a career in oil and gas. This in itself is a positive development because 82% of women that were asked in the NES Global Talent survey said they plan to stay in

the oil and gas industry for the next 2 to 5 years. This percentage is shown to be urgently needed as reports show an industry skill shortage. A recent paper by Twenty Recruitment Group documented that a forecast of 1.3 million positions need to be filled in the US oil and gas sector over the next 15 years, just 14 % are expected to be filled by women.

At ADIPEC 2014 the encouragement continues as female leaders from the Middle East take time to raise the topic and share their experiences of working in a male dominated industry. Women who have cultural challenges to overcome may find it even harder to break into senior positions. The landmark event at ADIPEC 2014 offers valuable insights on these challenges faced by women leaders in the energy sector.

This is a first for the Abu Dhabi International and Petroleum Exhibition and Conference, in time to celebrate its 30th anniversary. There will be a series of events dedicated to women in the oil and gas industry.

Prior to and during ADIPEC 2014, ladies can look forward to the opportunity of meeting with industry peers, in an exclusively female environment, discussing the future role of women in the energy arena. The main onsite gathering will take place on the 11th of November at the official event.

Conference Director Claire Pallen said, “We are very excited to be hosting an official series of Women in Industry events as part of ADIPEC 2014. We are dedicated to engaging with and creating a community for women working within the oil and gas sector, whether that be engineers, administration personnel, or senior managers.”

There is no doubt that the oil and gas industry itself is an industry which demands a diverse range of skills and expertise. There is still a long way to go before breaking this gender gap. With a recent survey conducted by BP and Rigzone showing that a large 72% of industry professionals said that they believed that the sector is still male-dominated.

Nevertheless there are still those 45% of women who feel welcomed in the industry today. Additionally, with the involvement of companies like Shell and the coming together of industry professionals at the ADIPEC Women in Industry Conference, there can be a slow but significant movement in attracting women to the oil and gas industry. Essentially, making sure that energy companies do not miss out on any untapped talent that future female employees may have to offer.

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NEWS IN DEPTH

UAE UPSTREAM PRODUCTION

Ruwais Reninery Expansion production image by Takreer

Future projects keep upstream production at a high for the United Arab Emirates By: Ioannis Tzelepis

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he UAE is one of the world’s top 10 oil producers and exporters with more than 95 per cent of the country’s oil and gas produced in the area around Abu Dhabi. The country which is a founding member of the Organization of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF) is the world’s second-largest exporter of petroleum, primarily due to the Abu Dhabi National Oil Company (ADNOC). However, with the likelihood of a new major discovery considered small, oil and gas production in UAE has mainly been based on the ADCO concession.

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terms are about to change in the next few years, with new companies expected to enter the market. For example, in the case of the established joint venture between China National Petroleum Company with ADNOC in April 2014. The new joint venture, named Al Yasat, is 40 per cent owned by CNPC and the scope behind the deal is to include a company with access to huge capital, but also with an investment culture that favours riskier and less developed assets.

the UAE holds the seventh-largest proved reserves of oil in the world at 97.8 billion barrels

This major project was signed with some of the largest oil and gas companies such as BP, Exxon Mobil and Shell in the early 1970s. As the field’s depletion rates started to rise, it became essential for the petroleum companies to invest money in enhanced oil recovery (EOR) techniques. With a purpose to increase the extraction rates of the countries mature oil and gas fields, while it was only in 2008 when the first new concession was offered by the Emirate in more than 20 years.

Currently, with two existing concessions expiring in January 2014 and in 2018, respectively, production

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This comes after Total, ExxonMobil, BP, Partex and Royal Dutch Shell, all historically prominent players in the country, lost in January the rights to an onshore concession, in an effort of the Abu Dhabi’s leading authorities to bring new players into the game such as Austria’s OMV, Germany’s Wintershall and Korea National Oil Company.

More specifically, in terms of the oil upstream sector, the UAE holds the seventh-largest proved reserves of oil in the world at 97.8 billion barrels, with the majority of reserves located in the Abu Dhabi area, while Dubai also holds approximately 4 billion barrels. The country has invested heavily on improving the recovery rates at the existing fields, managing to double the proved reserves over the past decade. Exploration and production in the

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NEWS IN DEPTH other Emirates is limited, with reserves nearly exhausted and the cost of recovery continuing to climb.

In general, the offshore projects have been given a priority and in July 2014, the Abu Dhabi Marine Operating Co. awarded Hyundai Heavy Industries a nearly US$2 billion contract to build platforms and install cables under the Gulf. Hyundai also constructed gas treatment and other platforms, all in an effort to further expand the existing offshore facilities.

One of the promising regions that will help boost production is the Zakum petroleum system, which could contain over 65 billion barrels of recoverable oil. The project is managed by ZADCO, a joint venture owned

by ADNOC (60%), ExxonMobil (28%) and the Japan Oil Development Company (12%). The overall project includes two main fields the Upper and Lower Zakum fields. The Upper Zakum currently produces 550,000 bbl/d and a US$800-million engineering, procurement, and construction upgrade project is currently being implemented by Abu Dhabi’s National Petroleum Construction Company with Technip to expand production to 750,000 bbl/d by 2016.

Moreover, ADNOC expects to support the growth in the upstream oil sector through raising production in the large fields such as the Bu Hasa, Bab and SAS fields with increases expected to approach 200,000 bbl/d by the end of 2014, as well as by investing in the expansion of smaller offshore fields like the Nasr, Umm Lulu, and Umm Shaif. More specifically, Umm Shaif field’s production could reach the 280,000 bbl/d, while the combined production of the Nasr and Umm Lulu is estimated to be around 170,000 bbl/d till 2018.

Furthermore, ADNOC’s plans also include the further development of the Mubarraz, Umm Al Anbar and Neewat AlGhalan offshore fields in the Persian Gulf and the national company has progressed with the second phase of the Nasser field off the coast of Abu Dhabi.

In terms of the Satah Al-Razboot (SARB) Full Field Development Project, two production platforms will transport the crude through subsea pipelines to a new facility to be built on Zirku Island. In general, the SARB project is of strategic importance for ADNOC within the context of contributing to Abu Dhabi’s broader development strategy, bringing the Emirate closer to its target of increasing oil production to 3.6mn barrels per day (b/d) by 2019.

On the other hand, the UAE gas upstream sector which has seen a serious technological revolution in recent years, has been struggling to meet the internal demand which is expected to grow significantly in the near future.

The country holds estimated proved reserves at over 215 trillion cubic feet (seventh-largest proved reserves of natural gas in the world), but is currently importing gas from Qatar through the Dolphin Gas Project to cover its needs, in an effort to maintain the gas exports volume.

The target is to commence the full exploitation of the

UAE MAIN DATA : ANNUAL STATISTICAL BULLETIN 2014 Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP at market prices (million US$) Value of petroleum exports (million US$) Proven crude oil reserves (million barrels) Proven natural gas reserves (billion cu. m.)

Crude oil production (1,000 b/d) Marketed production of natural gas (million cu. m.)

Refinery capacity (1,000 b/cd) Output of refined petroleum products (1,000 b/d) Oil demand (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (million cu. m.)

8.46 84 101 396,235 126,307 97,800 6,091 2,797 54,600 707 442.0 655 2,701 792.0 15,456

country’s large sour (high sulfur) onshore and offshore gas deposits, learning how to face the complexities of this relatively high sulfur content gas which is highly corrosive and difficult to process.

In terms of the onshore projects, the Emirate’s latest solution to the gas equation is to produce and process gas from the onshore Shah field. The US$10billion natural gas project, a joint development between ADNOC and US-based Occidental Petroleum, is expected to produce 14.2m cu metres of gas per day.

Additionally another project which will contribute to increasing gas production is the Bab field, located around 150km to the south west of the city of Abu Dhabi. The project is a joint venture between ADNOC and Shell and will add more than 14m cu metres of gas per day to available feedstock. In terms of the offshore projects now, Hail field, a shallow water sour gas field located off Abu Dhabi’s coast, has a far lower CO2 or H2S content than Shah or Bab, but according to an engineering and design study by Technip, the location of the deposit is an obstacle and requires a more detailed analysis of the gas deposit.

On a first level the Emirates have managed to sustain their oil and gas production at high levels through heavily investing in EOR technology, as well as through diversifying it’s partnerships domestically. On a second level, it is significant to move forward with new exploratory projects to find the essential feedstock, in order to retain it’s position as the largest LNG exporter in the world.

It is estimated that over the next five years, Abu Dhabi will spend around US$60billion in investments in the petroleum industry, while according to MEED the country currently has US$37.45 billion worth of oil and gas projects under execution.

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MIDDLE EAST

MIDDLE EAST

highlighting major projects

KHAZZAN&MAKAREM PAGE 16

UPPER ZAKUM PAGE 18

RUWAIS REFINERY PAGE 20

NORTH EAST BAB PAGE 22

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MIDDLE EAST

KHAZZAN & MAKAREM Vibrator trucks in the desert image by BP

PROJECT PROFILE DETAILS In January 2007 BP signed a major exploration and production sharing agreement with the government of Oman for the appraisal and development of Block 61 and the Khazzan and Makarem gas fields. The agreement covers an area of some 2,800 square kilometres in central Oman, which contains a number of ‘tight gas’ reservoirs which were first discovered in the 1990s.

The Khazzan Project will provide new gas supply to Oman on a significant scale. The full field development of the resource was sanctioned in late 2013 and, will involve drilling around 300 wells over 15 years, with first gas targeted in late 2017.

The project will achieve production of around one billion cubic feet of gas per day, equivalent to an increase of around a third of Oman’s total daily domestic gas supply.

OPERATORS BP is the operator of Block 61 and holds a 60% share in the concession. Its partner in the development is the Oman Oil Company for exploration and production, which holds a 40% share.

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MIDDLE EAST

PROJECT UPDATES BP Oman plans vast drilling activity BP Oman has big plans to venture deeper into its Khazzan project. The company plans to increase its drilling activity in the Khazzan project to unlock the massive unconventional gas reserves in the field.

Khazzan, which lies in central Oman north of the Saih Rawl field, has a very complex structure but it is thought to have great potential and could prove one of the sultanate’s biggest producing gas fields.

Due to the extensive work so far on the field, more than 15 wells have been drilled and five or six more wells will be drilled by BP Oman and are positively expected to be completed by the end of 2014.

Jacobs to ensure process and infrastructure work on the Greenfield Khazzan Project Jacobs Engineering has been awarded a contract by BP for process and infrastructure work on the Greenfield Khazzan project in Oman.Under the terms of the contract, Jacobs is providing engineering, procurement and construction management services in relation to approximately US$2 billion of gas gathering and water pipelines, wellhead production facilities and export pipelines for the development of the southern sector of Block 61.

Jacobs’ scope of work also includes the detailed design and program management for the associated project infrastructure. The work utilises resources from multiple Jacobs offices located in the Middle East, the UK, India and the United Sates. Jacobs is also committed to supporting the in-country value goals of the Sultanate to build local content by developing the local workforce and engaging local suppliers.

NEWS IN BRIEF Veolia to design, build and operate for Khazzan Gas Field Veolia has been selected by BP to design, build and operate a raw water treatment plant for BP’s project to develop the Khazzan gas field, the biggest gas field development in Oman. The approximately US$50 million water treatment facility has a maximum capacity of 6,000 m3/ day, split between 4,000 m3/day of process water and 2,000 m3/day of drinking water. The overall plan for Veolia as it stands today is that the company will operate the plant for one year, with extension options of up to four additional years.

Petrofac awarded Khazzan CPF project Petrofac has been awarded a contract by BP, worth approximately US$1.2 billion, for the central processing facility (CPF) for the Khazzan gas project in the Sultanate. This has been awarded on a convertible lump sum basis and will convert to a full lump sum contract at a predetermined point during execution. The scope of work will include engineering, procurement and construction of the central processing facility (CPF) at the Khazzan field. The CPF will include two process trains, each having a capacity of 525 million standard cubic feet of gas per day. The project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure. The project is expected to be completed in 2017.

The project is expected to mobilise immediately. The Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations.

A civil works contract for Muscat Muscat Galfar Engineering and Contracting Company has received a US$16.98 million contract by BP Oman for civil works at the Khazzan project. The contract has been awarded for initial civil works, which includes general civil works (waste management area, sludge drying area, production well pads and associated infield roads). The contract also contains the responsibilities of the procurement and construction for the Khazzan project, all for a provisional contract value of US$16.98 million.

Oman operations image by BP

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MIDDLE EAST

UPPER ZAKUM Upper Zakum Complex image by ADNOC

PROJECT PROFILE DETAILS The Upper Zakum is the most important of ZADCO’s fields, located 84 Kms, North West of Abu Dhabi Islands, the Upper Zakum field covers around 1,200 sq Kms of the Gulf marine areas.

The Zakum field is the second largest field in the Gulf and the fourth largest field in the World, with a great value standing at US$15.6 billion. The accommodation platform of Upper Zakum field has the capacity to accommodate 550 personnel, making it one of the largest offshore living structures in the world.

OPERATORS The Upper Zakum field is a joint venture between ADNOC, ExxonMobil and Japan Oil Development Company. ADNOC holds the highest interest of 60%, ExxonMobil follows second with a 28% interest and Japan Oil Development Company has 12% interest in the Zakum field. Together the operators are called the Zakum Development Company (Zadco).

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PROJECT UPDATES

Specialist Services awarded a contract from Petrofac Specialist Services has been awarded a contract from Petrofac for the provision of Local Equipment Rooms and the official building of Local Control Rooms for the Upper Zakum 750 Island Surface Facility Project. This follows a previous award for the same development by Leighton Offshore to Specialist Services for the islands harbour house buildings.

Seven new drilling rigs are assigned to Zakum The National Drilling Company (NDC) has inaugurated seven new rigs assigned for drilling operations on artificial islands at the Upper Zakum offshore oil field.

The rigs are part of NDC’s fleet expansion plans that cover land, offshore and island rigs, to serve the oil and gas industry in Abu Dhabi and to remain well-informed of the long term plans of its clients.

A contract worth US$41 million won by Emirates Holding Prysmian Group has been awarded a new contract worth approximately US$41 million by UAE-based construction company Emirates Holding on behalf of major offshore oil and gas producer ADMA-OPCO (Abu Dhabi Marine Operating Company) for the design and manufacture of submarine cable links for the replacement of power feeding systems to Zakum offshore oil field, in Abu Dhabi.

NEWSIN INBRIEF BRIEF NEWS ABB to upgrade power generation capacity UAE-based Zakum Development Company (ZADCO) has awarded a US$175 million contract to power and automation technology group ABB to upgrade the power generation capacity at its Zirku oil and gas processing facilities in the Gulf. As part of the contract, ABB will install additional power generation facilities to improve overall energy efficiency and operational flexibility.

Lamprell bags big building contract Lamprell has won a contract to build almost 30 modules for Abu Dhabi National Oil Company (Adnoc)’s giant Upper Zakum 750 offshore oil project. Petrofac has contracted the United Arab Emirates-based builder to fabricate 29 modules on behalf of Zakum Development Company.

The modules will together weigh around 10,000 tonnes, with the first batch set for delivery in the second quarter of 2015. The final pipe-rack is scheduled for delivery in the first quarter of 2016. For this specific contract the value has been withheld.

The Zakum oil field is the first submarine electrification project planned by Adma-Opco and will be the benchmark for future projects aimed at developing and implementing a power distribution and transmission network among owned offshore oil fields, in order to increase capacity and improve reliability of their oil production facilities. In detail, the project includes the design and supply of about 200 km of Cross-Linked Polyethylene insulated Medium Voltage submarine cables for the distribution of energy to oil towers and platforms, plus accessories and network components.

The project will be implemented by the Group’s established offices in the UAE, using production from Pikkala (Finland) with first 70 km batch delivery in November 2014 and final delivery due by mid-2015.

Upper Zakum Field image by ADNOC

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MIDDLE EAST

RUWAIS REFINERY EXPANSION

Takreer Ruwais Refinery image by Takreer

PROJECT PROFILE

DETAILS

The Ruwais Refinery is located 240 kilometres west of Abu Dhabi. The expansion project is expected to be started up by 2014. Soon after commissioning the original 120,000 barrels per day (bpd) Hydro skimming refinery in June 1981, plans were drawn up to add a 27,000 bpd Hydro cracker complex that was started in 1985. To consolidate operations, the General Utilities Plant, set up in 1982 to provide electricity and water for the area, was merged with the Refinery in 1986. The total value of the expansion is around US$10,000 million.

Besides transportation fuels the Refinery will also produce light olefins (ethylene, propylene, butylene).

The Refinery does offer integration opportunities for polyolefin production, (mainly polypropylene). The project is also set to achieve the following objectives: an increase future Refining Capacity at Ruwais by 400,000 bpcd in a new Grass Roots facility, upgrade bottom of the barrel by Residue Fluid Catalytic Cracking (RFCC) when processing Murban Atmospheric Residue and will produce 1.1 million TPA of Propylene for petrochemicals feedstock.

OPERATORS The Abu Dhabi Oil Refining company’s subsidiary, Takreer is the only operator of the Takreer Ruwais Refinery Expansion with 100% interest in the project.

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PROJECT UPDATES Al Hassan wins a manufacturing contract from Takreer ADNOC subsidiary, Takreer has awarded the company Al Hassan a manufacturing contract for operations concerning the Ruwais refinery expansion. The contract involves the manufacture, supply, test and commission new three-way valves that will be used at a hydrocracker plant being built at the refinery. The contract is worth US$1.9 million and is hoped to be complete within 12 months of its production starting date.

Honeywell to supply purifying hydrogen system Abu Dhabi Oil Refining Co. has let a service contract to Honeywell’s UOP LLC for a purifying hydrogen system at its 350,000-b/d Ruwais refinery, some 385 miles west of Abu Dhabi City in the United Arab Emirates.

The UOP Polybed PSA system will recover and purify hydrogen for Takreer’s carbon black and delayed coker project to meet the increasing need for clean transportation fuels. In addition to recovering and purifying hydrogen from steam reformers and refinery off-gases, Polybed PSA systems can be used to produce hydrogen from other sources such as ethylene off-gas, methanol off-gas and partial oxidation/synthesis gas.

Metso to supply valve technology for Ruwais Abu Dhabi Oil Refinery Co. (Takreer), through a contractor, has let a contract to Metso Corp. to supply valve technology to its 350,000-b/d Ruwais refining complex about 385 miles west of Abu Dhabi City in the United Arab Emirates. As part of the contract, Metso will deliver its Neles Globe control and on-off valves, most of which are equipped with technology aimed at performance follow-up and predictive maintenance to boost process efficiency and uptime of production.

NEWS IN BRIEF Ruwais Refinery to be commissioned by the end of 2014 Tests on the long-awaited expansion of Abu Dhabi’s Ruwais fuel refinery have started and the project will be fully commissioned during the fourth quarter of 2014. Takreer signed contracts worth US$9.6 billion in March 2010 with SK Engineering, Samsung and Daewoo to increase the Ruwais facility’s daily output by about 415,000 barrels per day. The newly expanded plant will process Abu Dhabi’s Murban crude oil grade. The expansion of the plant, located some 240 kilometres west of Abu Dhabi city, was originally slated for completion by the end of 2013. The expansion of the Ruwais refinery is key to Abu Dhabi’s plan to diversify its economy away from upstream extraction by investing in its downstream capacities.

Al Hassan to manufacture and Supply at the Ruwais Refinery Takreer has awarded the company Al Hassan a manufacturing contract for operations concerning the Ruwais refinery expansion. The contract involves the manufacture, supply, test and commission new three-way valves that will be used at a hydrocracker plant being built at the refinery. The contract is worth US$1.9 million and is hoped to be complete within 12 months of its production starting date.

The valves will be installed in a carbon black and delayed coking plant which is currently under construction at the Ruwais complex. However, the overall value of the valve-supply contract was not revealed.

This operation is scheduled for completion in December 2015 and the plant is thought to process 30,000 b/d of crude and produce 40,000-tonnes/year of carbon black material. Moreover, Samsung Engineering of South Korea will provide project management services for the engineering, procurement, construction, and commissioning processes for the project on a turnkey basis.

Takreer Ruwais Refinery image by Takreer

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MIDDLE EAST

NORTH EAST BAB Mad Dog courtesy p.l.c.

North Eastimages Bab Field imageof:byBP ADNOC

PROJECT PROFILE DETAILS The North East Bab (NEB) asset is located 31 km from the UAE capital, Abu Dhabi. The asset comprises three producing fields: Al Dabb’iya, Rumaitha, and Shanayel, and one undeveloped culmination: Jumaylah. The Al Dabb’iya field lies on a coastal shallow and deep marine area, while the Rumaitha and Shanayel fields lie onshore. The developed fields cover an area greater than 1,400 km2.

NEB produces approximately 8% of ADCO’s production.

NEB is located in one of the most environmentally sensitive areas that include desert, sea, mangroves, salt marshes, coral reefs and Sabkha, all supporting diverse wildlife species. New technologies and management systems have been implemented to minimize the impact of ADCO’s operations on the environment.

OPERATORS The interest in the North East Bab field has been divided up between 6 companies. The main operator is the Abu Dhabi Company for Onshore Oil Operations (ADCO), who holds 60% interest in the field. The other operators are; BP, Exxon Mobil, Shell and Total who each have a 9.5% interest in the North East Bab field.

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PROJECT UPDATES A second major contract for the North East Bab Field On February 2014, project operator Abu Dhabi Company for Onshore Oil Operations (ADCO) invited firms to bid for the second major contract on phase three of the North East Bab (NEB) asset. ADCO is assessing commercial bids for the Engineering, Procurement and Construction (EPC) contract for the third phase of the project, focusing on the expansion of the offshore AI-Dabbiya oil field. The engineering firms invited to bid for the contract include South Korea’s Daewoo and GS Engineering & Construction, Saipem and Maire Tecnimont SpA from Italy, Petrofac from United Kingdom and Tecnicas Reunidas from Spain.

According to sources, Maire Tecnimont SpA submitted the low bid and is therefore considered the frontrunner to win the contract. ADCO is likely to award the EPC contract after the Eid ai-Adha religious holiday, which is approximate due to fall during October 2014. The AIDabbiya field forms part of Adco’s North East Bab asset, which also includes Rumaitha and Shanayel.

NEWS IN BRIEF A Crude Oil Processing Plant to be built by GS Engineering and Construction The Abu Dhabi Company for Onshore Oil Operations has awarded a consortium led by South Korea’s GS Engineering and Construction a U$1.44 billion contract to build a crude oil processing plant in the UAE. The deal includes the third phase of the Rumaitha-Shanayel oil field expansion project. The first and second phases of the project have been completed with production standing at 46,000 barrels per day (bpd). Once the third phase is completed, daily output will rise to 85,000 bpd.

However, AI-Dabbiya lies on a coastal shallow and deep marine area and since the development of the onshore part and offshore portion of NEB-3 had to be split anyway, ADCO decided to organize the call for tender separately for the onshore and offshore packages of the NEB-3 project.

Pivot awarded contract for Abu Dhabi’s North East Bab Expansion project Pivot Engineering received a letter of award for the North East Bab Field in Abu Dhabi, UAE. The project includes the construction of new accommodation for all staff and contractors. Overall, the projects initiative is to provide efficient accommodation for 650 people with associated amenities such as a restaurant and a mosque.

The project also includes the expansion of the existing administration building, fire station and the construction of a new administration building to accommodate an additional 107 employees and workshops.

Pivot Engineering will also carry out the upgrading of the existing utilities and the installation of new systems, including STP, chilled water yards and a variety of other needed amenities. The company’s scope of work includes all civil and MEP works and the project is scheduled for completion in 2016.

North East Bab Field images by ADNOC

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MIDDLE EAST

PROJECT UPDATES Basic repair works at Shazand Petrochemical Complex in Arak successfully completed For the first time basic repair works at Shazand Petrochemical Complex in Arak were successfully completed by domestic experts who enabled the complex to start its operation. Basic repair works should be conducted every two or three years but for the past seven years due to the sanctions and lack of cooperation by foreign companies these operations have been delayed.

It has been noted that 90% of the specialized parts required for the repair works were manufactured inside the country and only 10% were foreign made. One of the achievements in the basic repair works is gaining access to the technical knowledge and self-sufficiency in changing catalysts in the reactors of oxide ethylene unit which previously used to be done by a Korean company.

Performance of this operation by the experts of the company and cooperation of domestic companies resulted in saving the country 700 thousand euro.

Implementation of the plan for the development of linear low-density polyethylene (LLDPE) unit had been on the company’s agenda since 10 years ago which, despite the sanctions and lack of cooperation by the British, Italian and Japanese companies was carried out by domestic experts. Over 1.6 million tons of chemical and polymer products are produced in Shazand Petrochemical Complex annually.

Field Personnel Return to the Barda Rash Field Staffing levels are returning to normal at the Barda Rash field with a view to resuming drilling and production activities as soon as possible. This follows the temporary and precautionary step of implementing a phased withdrawal of field personnel as announced on 8 August 2014. Field operations at Ain Sifni, operated by Hunt Oil, have already resumed to normal levels. The decision to resume full operations at Barda Rash has been made following a close monitoring of the situation in Iraq and in close consultation with the relevant authorities.

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NEWS IN BRIEF CB&I to provide FEED services for the Ain Tsila gas field development

CB&I has been awarded a contract by Groupement Isarene, a joint venture between Sonatrach, Petroceltic International plc and Enel Trade S.p.A, to provide front end engineering and design (FEED) services for the Ain Tsila gas field development located in onshore Algeria. CB&I’s project scope includes FEED development for a grassroots 420 million cubic feet per day gas plant facility, plus three associated pipelines and well collection.

The gas plant facility will include a gas processing plant with water separation, condensate and liquefied petroleum gas recovery equipment, gas compression, export pumps and metering facilities.

China Petroleum Pipeline to construct an oil storage depot for Nassiriya oilfield

Iraq approved a US$607 million contract with China Petroleum Pipeline for the construction of an oil storage depot near its Nassiriya oilfield in the south of the country. The oil ministry delayed last month an international tender for the development of the Nassiriya field and construction of an associated 300,000 barrel a day refinery. The four billion barrel Nassiriya oilfield is currently producing around 40,000 barrels per day.

UOP has been selected to help speed up gas production at SIBA gas field

Honeywell subsidiary UOP has been selected by Kuwait Energy Company and its partners to help speed up gas production at Iraq’s SIBA gas field in southern Iraq. The US process technology supplier will provide modular equipment at the field which lies in the Basrah Governorate in order to meet pipeline specifications and to recover valuable natural gas liquids (NGLs) in the process. The equipment will allow Kuwait Energy to process 110 million standard cubic feet per day (mmscfd) of natural gas from the field in two parallel processing trains which will begin production in 2015.

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MIDDLE EAST

PROJECT UPDATES Amarinth to deliver self-priming AP 610 super-duplex pumps to ADMAOPCO for SARB3 project Amarinth has been awarded a contract to supply 16 API 610 super-duplex pumps, some of which will be selfpriming, for use on the ADMA-OPCO SARB3 project.

Following previous successful projects undertaken

by Amarinth for ADMA-OPCO, this new contract is to supply 16 API 610 super-duplex pumps in A-series and C-series configurations to be used for various duties including fire water supply and diesel transfer in the ADMA-OPCO Satah al-Razboot (SARB) offshore oil field.

The SARB field is located 200km northwest of Abu Dhabi with drilling conducted from two artificial islands.

It is expected to add an additional 100,000 barrels per day of oil to the overall oil production capacity of UAE upon commissioning in 2016. The duty of four of the pumps is to lift sea water to the rigs which requires self-priming units so the pumps do not run dry with the subsequent damage this would cause before the water enters the pump at the top of the lift.

Technip wins Bahrain refinery upgrade Technip has been awarded a Front-End Engineering Design (FEED) contract for four main work packages to upgrade the Bahrain Petroleum Company’s (BAPCO) main refinery in Bahrain. The FEED for the work packages include units aimed at processing the “bottom of the barrel” components to high value products, and all associated off sites and utilities to provide seamless integration with existing refinery facilities earmarked for retention post this major modernisation.

The project aims at enhancing the refinery configuration, by increasing the throughput from 267,000 to 360,000 bpd as well as improving the product slate and profitability. Technip’s operating centre in Rome, Italy, in cooperation with a similar centre in Abu Dhabi, will execute the contract which is scheduled to be completed at the end of 2015.

NEWS IN BRIEF Saudi Aramco and Sumitomo will transfer ownership of the petrochemical facility to PetroRabigh

Saudi Aramco and Sumitomo Chemical will transfer ownership of the petrochemical facility to their joint venture PetroRabigh. The new facility, known as Rabigh II, is to be built as an expansion of PetroRabigh’s existing petrochemical plant, increasing output and introducing higher-margin products. Ownership of the planned new facility will be transferred from Aramco and Sumitomo to PetroRabigh in the fourth quarter of 2014.

However, both Aramco and Sumitomo would continue to guarantee finance needed to build the project. The two firms will each put in around 100 billion yen (US$975 million), with the rest coming from project financing.

Xodus Group has been awarded a contract with Qatargas

Xodus Group has been awarded a contract with Qatargas to provide vibration engineering services at onshore and offshore facilities. Working in partnership with Chiyoda Almana Engineering, Xodus will look to develop a long term piping integrity management program to assess, reduce or eliminate vibration in all of the Qatargas facilities, both onshore and offshore. The US$1million one-year contract is for a Technical Services Vibration Programme at the Qatargas QG1, QG2 and QG3&4 LNG Facilities, Ras Laffan refinery and associated offshore assets, with the option of an extension for a further two years.

The operations for the completion of project 12+1 in Kish field have been launched

The operations for the completion of project 12+1 in Kish onshore gas field as the second Persian Gulf gas hub have been launched. In this project 12 development wells plus one repair well will be completed in the two A and B clusters. Pointing to drilling operations and completion of the wells according to required standards especially in the field of environment protection, the final area of drilling in Kish field wells will amount to 60 thousand metres. The volume of gas in Kish field is 66 trillion cubic foot and volume of gas condensates in place is 514 million barrels.

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SUBSEA FOCUS

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REPORT

UK OIL INVESTORS URGE REFORM AFTER REFERENDUM CLIFF-HANGER Platts oil and gas review on the recent Scottish referendum The upstream oil and gas industry called on the 5th September 2014 for a focus on reforms needed to revive the UK’s flagging North Sea production, following Scotland’s decisive rejection of independence in a referendum.

Shell was among those greeting the vote for staying in the UK, following warnings the uncertainty was clouding investment decisions in the UK’s main oil producing region. Shell said it “welcomes the decision by the people of Scotland to remain within the UK, which reduces the operating uncertainty for businesses based in Scotland.” Shell had warned against independence and also voiced concern at a potential further referendum on whether the UK should leave the EU — a vote that remains a possibility following a general election next May. Others highlighted the need for the UK to stick with plans for an overhaul of an upstream tax regime widely seen within the industry as a drag on investment, as well as the importance of a planned new regulator that would focus on upstream production issues. UK oil and gas production has fallen rapidly in recent years, with oil output last year down 62% from a decade earlier, at 820,000 b/d.

Amid a tight political timetable ahead of next year’s election, industry lobby group Oil and Gas UK said that, “to safeguard the industry’s future, it is particularly important that the government now presses swiftly ahead with fiscal reform”, as well as implementing recommendations made earlier in the year on setting up a new, dedicated regulator.

BP, the target of an angry outburst threatening nationalization by a key figure in the Scottish Nationalist campaign for independence, said, “The North Sea is important to BP and we expect to be an active participant in the oil and gas industry in Scotland for years to come.”

In the downstream segment, traders expressed relief that the potential disruption of a “yes” vote had been averted, including in relation to Scotland’s only refinery, Grangemouth. One trader said nationalization of the loss-making facility “would have been a very real prospect in the early years” simply in order to keep it open and avoid 100% import dependence.

Amid a boost to UK business confidence from the vote

on the 18th of September 2014, there were signs the country would continue to hold attractions for oil and gas investors, including a benign security environment and high levels of industry expertise.

However, the mood remained fragile, even as some in the sector saw signs of output recovering slightly in coming years following record investment aimed at tackling chronic inefficiency at aging North Sea facilities.

BP CEO Bob Dudley said on July 2014 that the average rate of “up time” across all North Sea assets was about 57% and that BP’s own assets were “not a whole lot above that”.

Referendum uncertainty has added to the UK industry’s underlying issues, which include tax rates as high as 81% for fields approved before 1993, a higher rate than in neighbouring Norway. On top of fiscal reform and the setting up of a new regulator to drive cooperation within the industry, the issue of liability for decommissioning aging assets remains a drag on deal-making in the UK, said Jon Clark, Ernst & Young’s oil and gas transaction advisory leader for Europe, the Middle East, India and Africa.

“Business as usual has had a degree of a pause with the uncertainty on the potential outcome of the referendum,” he said. “I think the key now is for the industry and government to get on with the various proposed initiatives. With aging infrastructure there is a time-critical element to all of this.”

Amid moves to set up the new regulator in the Scottish city of Aberdeen, and ahead of a announcement by the government on fiscal changes, the sense of impatience felt by some in the industry has been voiced by Bill Transier, CEO of struggling Houston-based Endeavour International, which has most of its assets in the North Sea. “The North Sea is a tremendous petroleum system that has been there producing for over 40 years. It still has a lot left behind, but the industry itself, the government, the traditional way in which we do things...will not allow you to use new technologies, will not allow you to get access to infrastructure. They changed the tax code on us several times. The tax code is just too high to incentivize investment...You have got to look at the facts and say, here are the facts and if we do not do something dramatic fairly soon, something that I consider a national treasure for the UK is going to just go away.”

www.Platts.com

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CLIENT FEATURE

CMP PRODUCTS proudly presents its new revolutionary sealing solution, cable cleats and cable gland products

F

or almost 60 years, CMP Products has continued to have an international reputation for Quality and Reliability across the industry and is regarded as a world leader in the field of Industrial and Explosive Atmosphere Cable Gland, Connector and Accessory design and manufacture. With a presence on every continent, CMP Products is able to deliver high quality, safe products, regardless of location.

CMP Products maintains its position as a leader in the business of terminating cables through its commitment to meeting customer needs, developing new products such as flat form Cable Glands and Multi-Angle Union Range, providing solutions whether standard or bespoke, that pay close attention to application and installer requirements.

International Approvals

CMP Products remains in constant touch with the changes and development of national and international standards that products and equipment intended for use in Explosive atmospheres must meet.

CMP design and produce Cable Glands with Ex d/Ex e Zone 1, Zone 2, Zone 21 & Zone 22 Approvals for use in Gas Group IIC environments under CENELEC & IEC Area Classification rules. Additionally Cable Connectors for NEC and CEC Classified Explosive Atmosphere Locations, are available for Class I, II & III, Divisions 1 & 2, where Gas Groups A, B, C, D and Dust Groups E, F & G are present.

International Explosive Atmospheres Approvals are held including ATEX, IECEx, INMETRO, CSA, UL, NEPSI, CIDET, CCOE/PESO as well as Russian Trade Union certificates. In addition Marine Classification Society Approvals from Lloyds, DNV & ABS are also held.

At CMP Products, safety and customer service is a priority

but also design bespoke applications to suit the needs of its clients. Exceptional customer service, continued research, development and global free training on all of its products is what sets CMP Products apart from its competitors.

RapidEx, the innovative sealing solution

CMP Products has developed a revolutionary sealing solution for barrier glands that delivers increased reliability, cuts time and cost whilst improving safety.

RapidEx is a liquid pour, fast curing, liquid resin seal which has successful results: - Installs in seconds and cures within minutes - Contains a unique formula which begins with a low viscosity liquid that pours into the cable interstices - The formula surrounds the cable conductors and displaces the air from the cable gland’s sealing chamber.

This eliminates the human error risks associated with clay compounds as, instead of being manually compressed down; using this liquid resin to naturally flow around all the cable conductors ensures a perfect seal. This enhanced accuracy of application allows for a fully reliable sealing solution.

CMP Products proudly present its new range of cable cleats

CMP Products has harnessed its extensive knowledge and experience in industrial and hazardous environments, to design and manufacture its wide range of cleats. CMP’s cable cleats have been designed and manufactured to withstand the industrial and hazardous environments that CMP’s products specialise in.

All cable installations vary in design from one installation to the next, which is why CMP Products design and manufacture cable cleats for all applications, including single, trefoil, quad and matrix applications. They offer a range that is both comprehensive and diverse including specialist applications such as railway and underground, oil and gas, and petrochemical.

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CMP Products’ cable cleats are designed, constructed and third party certified in accordance with IEC 61914:2009, to ensure both the safety of personnel and the protection of the cable system.

CMP Products has the capabilities within its technical department to not only assist with technical queries

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CLIENT FEATURE

TANK WORLD EXPO

Tank World Expo continues to grow with the industry with the 3rd annual show returning to the Dubai World Trade Centre in April 2015.

Now in its third year, the 2015 edition of Tank World Expo (Dubai, 13-14 April) is already confirmed as the biggest one yet. In 2014 visitors increased by a massive 640% to over 1670 and with growth levels continuing over 3000 are on track to attend in April at the Dubai World Trade Centre.

Whilst Expo space has already increased by 50% and with six months remaining, Tank World 2015 is set to be a sell out before the year’s end. With exclusive rights in Dubai, Tank World 2015 will provide a unique platform for over 80 speakers and 90+ technology and solutions providers. Supported by the Ministry of Energy, Lead Sponsors – Emerson & Endress+Hauser, Knowledge Partners Ernst & Young, Ratio Group (Pte) ltd. and PJK International, terminal operators including Horizon, GPS Chemoil, Gulf Petrochem and global ports including Salalah, Amsterdam, DP World and Tarragona.

Speaking at the launch, Alex Williamson, Managing Director, Tank World Expo stated:

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“Following the huge growth that we experienced in 2014, it is a strong indication of both the vibrancy and evolution of our industry and the importance of this event to the global business of storage that Tank World Expo is expanding significantly again in 2015. It’s the only event that brings global expert speakers, visitors and exhibitors from across the entire tank storage value chain to one location and with the Middle East at the heart of the global oil and petrochemical industry Dubai is the perfect host.”

Leading speakers within the executive congress already confirmed for 2015 include: H.E. Sharief Habib Al Awadhi (Director General and CEO, Fujairah Free Zone), David Gledhill (CEO, Port of Salalah), Nizamuddin Noorali (COO, Socar Aurora Fujariah Terminal). Manoj Ramdin (CEO, Galana Petroleum) and many more.

www.tankworldnews.com

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TECHNOLOGY

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Ask the Experts VISIT US ON STAND 13026 and nd out how we can make your operations safer www.projectsogp.com - AOG Edition 2014

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TECHNOLOGY

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TECHNOLOGY

EZTEK

Eztek to showcase new products and services at ADIPEC and the SPE ICoTA’s 20th Well Intervention Conference 2014 Eztek Limited, suppliers of hazardous area and harsh environment electronic equipment, will have its largest ever stand at SPE ICoTA’s 20th Well Intervention Conference. The show, held November 12th and 13th will allow the company to showcase its range of wireline instrumentation, including its popular 2 Way TalkBack system.

“This is one of our most important trade shows of the year,” says Regional Sales Engineer, Tom McMillan.

“We will be bringing our flagship products, such as the TallyBook Winchman and our EziPod data loggers. We’re also excited to be incorporating a video presentation into our stand, which will allow clients to see even more of what we can offer.”

Eztek recently supplied a Zone 1 EziPod for use in wireline operations offshore, in high risk environments.

The unit was built with a frame to aid handling and increase safety.

Eztek also continues to focus on its international clients, with Business Development Manager Mervyn Newberry heading to ADIPEC in November.

“This will be the biggest ADIPEC yet and I am looking forward to catching up with existing clients and building new relationships,” said Mr. Newberry.

Eztek moved into its new, purpose built office building in June and will hold an open day for clients on Friday, November 21.

www.eztek.co.uk

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ASIA

ASIA

NEWS IN BRIEF

PROJECT UPDATES Shandong Shouguang Luqing (SSLPC) Petrochemical Complex Shandong Shouguang Luqing Petrochemical Co. Ltd. (SSLPC) has let a contract to Honeywell’s UOP LLC for technology to produce isobutylene at its integrated refining and petrochemical complex located in Bohai Industrial Park, in Shouguang City, Shandong Province, China. UOP will supply its C4 Olefex processing technology to be used for a new unit at the complex that will be able to produce 170,000-tonnes/year (tpy) of isobutylene, a key ingredient for making high-octane fuel and synthetic rubber. UOP’s scope of work includes engineering, design, technology licensing, as well as providing catalysts, adsorbents, equipment, staff training, and technical service for the project.

Foster Wheeler secures coker training, commissioning and startup services contract Foster Wheeler AG through a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Petron Corporation to provide operator training, commissioning, and start-up assistance services for the new delayed coking unit at Petron’s Bataan Refinery in the Philippines. The new delayed coking unit at the Bataan Refinery is based on Foster Wheeler’s leading SYDECSM delayed coking technology and includes a Foster Wheeler delayed coker heater.

The company also undertook the detailed engineering and procurement services for the new coker. Foster Wheeler’s scope of work is scheduled to be completed by the end of 2014.

Rotary Engineering Limited has secured a contract with IHI Corporation Rotary Engineering Limited has secured a contract with IHI Corporation to provide tankage works for two 160,000m3 LNG storage tanks for the LNG receiving terminal expansion project, Phase II at Map Tha Phut petrochemical hub in Rayong, Thailand.

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Kuwait Petroleum eyes 50 per cent stake in Paradip refinery

Kuwait Petroleum Corp (KPC) aims to pick up a significant stake in Indian Oil Corp’s Paradip refinery and supply about 60 percent of the oil needs of the plant. State-run IOC, the country’s biggest refiner, aims to start crude processing at its 300,000 barrels per day (bpd) coastal refinery in the eastern state of Orissa. KPC wanted to reserve the right to later sell a part of its stake in the Indian project to any international oil company.

Paradip is IOC’s most complex refinery and capable of handling cheaper grades that are more difficult to handle. The refinery will have a potential to produce about 6.3 million tonnes of diesel and 3.6 million tonnes of petrol, which will largely be absorbed by the domestic market.

IKM Subsea awarded a firm long-term contract by Eni

IKM Subsea has been awarded a contract by Eni Indonesia to provide ROV services onboard the drill rig Scarabeo 7, operating in Indonesia for exploration and completion wells. The contract value is in the region of US$16million and the duration term is for 2.5 years.

Brightoil adds new deep drilling well for Xinjiang Gas Field

Business Petroleum has entered into a contract with China Petrochemical Shengli Oil Construction Limited for the drilling and completion work of a new deep drilling well regarding the gas field located in the Tarim Basin in Xinjiang Uygur Autonomous Region jointly developed by Win Business Petroleum and China National Petroleum Corporation.

Currently, the project contractor has started the pre-drilling preparation work, including the construction work of roads, bridges and well field. It is anticipated that Tuzi 4 deep drilling well will drill to target layer around the middle of 2015 and commence gas testing for result confirmation.

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ASIA

PROJECT UPDATES Technip awarded contract by Air Products for a new industrial gas complex in Kochi Technip has been awarded a contract by Air Products a contract to provide project management, as well as engineering, procurement and construction management (EPCM) services for a new industrial gas complex for Bharat Petroleum Corporation Limited – Kochi Refinery (BPCL-KR) located in the state of Kerala, India.

Being built on a “Build-Own-Operate” basis (BOO), the industrial gas complex of Air Products is designed to cater to the requirement of industrial gases (Hydrogen, Nitrogen and Oxygen) of BPCL-KR for its Integrated Refinery Expansion Project (IREP), which will increase BPCL-KR’s crude refining capacity from 9.5 million metric tons per annum to 15.5 million metric tons per annum (from 190,000 barrels per day to 310,000 barrels per day) and produce clean transportation fuels to meet Euro IV/V specifications.

The BOO project of Air Products includes the following main units: • Two trains of hydrogen production unit (based on steam methane reforming), of 8.2 metric tons per hour capacity (approximately 91,000 Nm3/hr).

• An air separation unit to produce nitrogen and oxygen.

• Steam generation and export to BPCL’s manufacturing process.

• A gas turbine to produce power for the Air Products facility.

• Any other utilities required for the BOO facility.

The plant will feature the latest technology advancements to maximize energy efficiency and minimize emissions, and will include optimal heat integration, which in turn lowers feedstock consumption during production. The contract will be managed by Technip’s operating center in Delhi, India, as well as Technip in the Netherlands.

NEWS IN BRIEF PBJV to provide hook-up, commissioning and topside maintenance services for Lundin’s offshore oil and gas fields

Barakah Offshore Petroleum Berhad has through its subsidiary PBJV Group Sdn Bhd, entered into a contract with Lundin Petroleum. Barakah Offshore scores contract with Lundin (Malaysia).

PBJV will provide hook-up, commissioning and topside maintenance services for Lundin’s offshore oil and gas fields in Malaysia.

The value of the contract will depend on the work order to be issued by Lundin for the duration of the contract. Lundin Petroleum is currently working on its Bertam field development, in the Block PM307, offshore Malaysia. The completion of the offshore platform topsides and modification work on the 100 percent owned Bertam FPSO is expected to be completed this year with first oil in the second quarter of 2015.

Petronas started the lifting of the first topside module for its floating liquefied natural gas (PFLNG1) facility Petronas started the lifting of the first topside module for its floating liquefied natural gas (PFLNG1) facility at the Quayside of Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in Okpo, South Korea. The topside module lifting marks another major construction milestone for the facility, as it signifies the near completion of the PFLNG1, which will be the world’s first floating LNG facility in operation.

The first topside module, on which power generation and control functions instruments are to be installed, weighs about 2,000 tonnes and this is equivalent to the weight of approximately 100 ordinary cargo containers. A 3,600-ton marine crane was used to conduct the lifting operation by DSME. There are 20 remaining modules weighing approximately 40,000 tonnes that are to be installed on the hull and the topside module lifting is scheduled to be completed in the first quarter of 2015.

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GLOBAL PROJECTS

GLOBAL PROJECTS

\ Updates from around the world

NORTH AMERICA Chevron Canada Limited, has reached agreement to sell a 30 per cent interest in its Duvernay shale play to Kuwait Foreign Petroleum Exploration Company’s wholly-owned subsidiary, KUFPEC Canada Inc., for US$1.5 billion. The agreement creates a partnership for appraisal and development of liquids-rich shale resources in approximately 330,000 net acres in the Kaybob area of the Duvernay.

EUROPE Wintershall, Germany’s largest internationally active oil and gas producer has announced the award of its first significant subsea contract for its Norwegian activities.

The contract for Wintershall’s Maria development goes to FMC Technologies’ Norwegian subsidiary FMC Kongsberg Subsea AS.

SOUTH AMERICA Halliburton has signed long-term contracts with Petroamazonas, Ecuador’s state-run oil company, to provide field development and project management, as well as drilling and completions services, across nine mature fields, including the Palo Azul, Lago Agrio and Victor Hugo Ruales fields. The contracts terms are 15 years plus a potential five-year extension.

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AFRICA Vallourec has started delivering premium line pipe for the offshore Egina field, operated by Total Upstream Nigeria. The field is currently under development and the production is scheduled to begin at the end of 2017.

GLOBAL PROJECTS ASIA Lundin mobilised the jack-up rig Hakuryu-11 for the drilling of the Gobi-1. Joint venture partner Nido Petroleum confirmed the rig was on the way to the Gurita production sharing contract, offshore Indonesia. Once the rig is onsite, drilling will get underway at the wellsite.

OCEANIA Neptune Marine Services Limited has been awarded a framework agreement by INPEX for the provision of Neptune’s range of specialist services.

Under this agreement, Neptune has been awarded a 40 month rig positioning and survey services contract for the Ichthys LNG Project. The services are expected to generate revenue of approximately US$3.5 million.

MIDDLE EAST Dana Gas has secured a US$100 million Term Facility for the Zora Field Development Project in Sharjah, the United Arab Emirates. This facility will contribute the debt component of the financing needed to complete the project and bring the Zora gas field on-stream.

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GLOBAL PROJECTS

GLOBAL NEWS AFRICA

US$216 million gas treatment plant in Tunisia ABB has been awarded a US$216 million contract to deliver a gas treatment plant to the South Tunisian Gas Project (STGP). The order was awarded by OMV Tunisia Production GmbH, a subsidiary of Austrian energy group OMV. ABB will be responsible for the turnkey delivery of the Nawara gas treatment plant (GTP) including gas separation and Liquefied Petroleum Gas (LPG) extraction units. It will also provide key automation, communications and power components, including the control system and transformers and switchgear for the electrification of the plant. The GTP will separate commercial natural gas from heavier hydrocarbons, which will then be fractionated to produce propane, butane and LPG used in many industrial, commercial and manufacturing applications. The plant will have a design capacity of 2.7 million standard cubic metres per day, and is expected to start production by October 2016.

Foster Wheeler awarded an EPCM services contract for Temane gas processing facility Foster Wheeler AG through its subsidiary Global Engineering and Construction Group has been awarded an engineering, procurement and construction management (EPCm) services contract by Sasol Petroleum Temane Limitada (“Sasol”) for an Electrical Expansion and Fuel Gas Superheater Project at Sasol’s Temane gas processing facility in Mozambique. The Foster Wheeler contract value was not disclosed.

The objective of the project is to expand the electric generation capacity of the Temane Central Processing Facility through the addition of a new gas turbinedriven electric generator and a new gas superheater.

The project is scheduled for completion during the first quarter of 2016.

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NEWS IN BRIEF Subsea 7 awarded contract by CNR in support of Baobab Field Phase III development

Subsea 7 S.A. has been awarded a contract in the Ivory Coast by CNR International in support of its Baobab Field Phase III development. The scope of work covers the installation of spools and umbilicals. The main offshore installation phase is expected to be executed by the Subsea 7 vessel the Seven Pacific in the second quarter of 2015.

Onshore project management and engineering will be carried out from the Company’s Paris office.

DOF Subsea UK Limited begun work on a contract with Saipem S.A.

DOF Subsea UK Limited has begun work on a multi-million dollar contract with Saipem S.A. The scope sees the provision of DOF Subsea’s DSV Skandi Singapore and project crew, to complete two key construction projects offshore West Africa. As well as supplying the Skandi Singapore, DOF Subsea will provide Project Management and Technical Support, specialist survey services, ROV services, and offshore project crew to assist Saipem S.A. in operations for the Nene/Litchendjili & Congo River Crossing (CRX) projects taking place in Congo, Angola and D.R.Congo respectively.

Subsea 7 orders MaXccess walk to work system for project off Angola

Tyne Gangway and Osbit Power joined forces to design and manufacture the MaXccess P35 telescopic gangway system, for installation at the Lianzi oil field off the coast of Angola, which is due to start production in 2015. On site, the walk-to-work gangway will provide a safe and reliable means of transferring personnel from their accommodation vessel to and from the oil platform.

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GLOBAL PROJECTS

EUROPE

NEWS IN BRIEF

Fugro wins Schiehallion support contract from BP Fugro has been awarded a contract by BP Exploration Operating Company for the provision of wellhead and riser monitoring services. The contract will support BP drilling activities for the Quad 204 redevelopment of the Schiehallion field, West of Shetland. A total of 25 wells are to be drilled over the next seven years using the new Deepsea Aberdeen semi-submersible rig.

Under the contract Fugro will provide its wellhead and riser instrumentation service, which has the DeepData subsea motion monitoring pods at its core. The DeepData pods are ROV recoverable, can be deployed for up to one year and will be positioned on the blow out preventer, lower marine riser package and selected riser positions.

Exova wins testing contract for UHP/HT Culzean project in North Sea

Exova has won a contract to provide material selection and qualification, and mechanical/ corrosion testing for downhole tubulars to be deployed in Maersk’s Culzean development in the UK central North Sea. The testing program will replicate the sour and ultra-high-pressure/high-temperature (uHP/ HT) subsurface conditions found in the Culzean field. Mechanical tests will characterize the properties of the materials; and autoclave corrosion testing will also be conducted, the aim being to select the optimum material and qualify suppliers/manufacturers.

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GLOBAL PROJECTS

GLOBAL NEWS

SOUTH AMERICA Seaway Heavy Lifting has been awarded the transportation and installation contract for the Dolphin Module Seaway Heavy Lifting has been awarded the transportation and installation contract for the Dolphin Module. The weight of the module is 1120Mt and water depth at location is 109 metres. BG Trinidad & Tobago has awarded Seaway Heavy Lifting the contract for the transportation and installation of the Dolphin Permanent Living Quarters Module.

The Dolphin development is located in the East Coast Marine Area of the coast of Trinidad. Seaway Heavy Lifting’s crane vessel the Oleg Strashnov will lift the module onto its deck in the USA and will sail down to Trinidad. The PLQ module will then be lifted on top of the already existing Dolphin platform. The weight of the module is 1120Mt and water depth at location is 109 metres. This project is to be executed in 2015.

Technip awarded a substantial EPIC contract for the Juniper field offshore Trinidad Technip has been awarded a substantial (EPIC) lump sum contract by BP Trinidad and Tobago LLC for the development of the Juniper project, to be located off the South East coast of Trinidad. The scope of work consists of design, detailed engineering, procurement, construction, load out and mechanical completion of: 4,300 short ton topsides that can process 590 million standard cubic feet per day of gas, 6,100 short ton jacket.

Additionally, it includes the transport and installation of client supplied umbilical’s, trees and flying leads.

Technip’s operating center in Houston, Texas, USA, will perform the overall design, detailed engineering and project management. Offshore installation is scheduled for the second half of 2016.

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NEWS IN BRIEF Two subsea contracts in the bag for Wood Group Kenny

Petrobras has awarded Wood Group Kenny (WGK) two contracts with a total value of over US$2 million. One is a conceptual engineering study for the pre-salt Lapa field (ex-Carioca) in 7,021 ft (2,140 m) of water in block BM-S-9, 170 miles (273 km) off the south coast of Rio de Janeiro.

This concerns two alternative pipeline heating systems, water-heated pipe-in-pipe (WH-PiP) and electrically trace-heated pipe-in-pipe (ETH-PiP). The results should provide Petrobras and partners BG and Repsol Sinopec with the basis to evaluate the technical feasibility of a southwest area tieback on the field and to determine the most cost-effective technology.

The second contract involves engineering support to provide conceptual, basic and detailed design deliverables to their subsea engineering group. In addition, WGK will be responsible for various engineering studies, focusing on optimizing riser, pipeline and equipment engineering design, with a view to increasing the competitiveness of a rigid solution for Petrobras’ subsea development.

Karoon executed final agreements with QGOG Constellation for contracting the Olinda Star semisub

Karoon has executed final agreements with QGOG Constellation S.A. group for contracting the “Olinda Star” semi-submersible drilling rig. The “Olinda Star” has been contracted to complete up to four wells in Karoon’s 65% owned and operated Santos Basin blocks, S-M-1037, 1101, 1102, 1165 and 1166.

The rig contract consists of two firm wells (the Kangaroo-2 appraisal well and the Kangaroo West-1 exploration well) and two option wells.

The rig contract provides Karoon with two firm wells plus two option wells allowing maximum flexibility for further appraisal of the Kangaroo discovery, including testing and appraisal of the Kangaroo West prospect in the event of successful drilling.

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GLOBAL PROJECTS

NORTH AMERICA Saipem wins US$750 million EPC contract for Lakach field Saipem has been awarded new offshore Engineering & Construction contracts in the Gulf of Mexico, for a total amount of approx. US$750 million. Pemex has awarded Saipem an EPCI contract for the development of the Lakach field, located 98 km southeast of Veracruz and 131 km northwest of Coatzacoalcos, at a water depth varying between 850 and 1,200 metres.

The scope of work of the contract involves the engineering, procurement, construction and installation of the system connecting the offshore field with the onshore gas conditioning plant. This includes two 73 km long 18-inch diameter flow-lines for the transportation of gas, and a main umbilical approx. 50 km long. Also in the Lakach field, Saipem will develop the SURF facilities which include subsea equipment, infield umbilicals, flexibles and trees and control system installation. The project will be completed by the end of 2017.

NEWS IN BRIEF NWR lets contract to Emerson to provide automation services and technology for first phase of Sturgeon greenfield bitumen refinery

North West Redwater Partnership (NWR) has let a contract to a division of Emerson, St. Louis, Mo., to provide automation services and technology for the first phase of NWR’s greenfield bitumen refinery project in Sturgeon County, about 45 km northeast of Edmonton, Alta.

As the main automation contractor, Emerson Process Management will provide engineering, configuration, start-up, training, commissioning support, and other services related to the control and operations at the refinery. The contract includes delivery of Emerson’s DeltaV distributed control system and DeltaV safety instrumented system, both of which include Emerson’s Electronic Marshalling technology with characterization modules designed to simply connections between the control system and other instruments throughout the plant.

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GLOBAL PROJECTS

GLOBAL NEWS

OCEANIA

Neptune awarded further Ichthys subcontracts Neptune Marine Services Limited was recently awarded two subcontracts by McDermott Australia for the Ichthys LNG Project. McDermott is the appointed main contractor for the Subsea Umbilical’s, Risers and Flow lines (SURF) engineering, procurement, construction and installation portion of the project. The initial subcontract includes the design and fabrication of specialist scour protection systems and the secondary scope entails the grouting of the Riser Support Structure (RSS) and grouting of the SPS. Neptune’s in-house engineering team in Perth provided the engineering design of the scour protection systems and the fabrication is managed at Neptune’s facilities in Asia. Delivery of the scour protection systems is expected to commence in the third quarter of 2014, with third-party installation of the offshore structures to begin the following quarter.

Downer EDI Limited secures contract for miscellaneous works on Gorgon Project Downer EDI Limited secured a contract for miscellaneous works on the Gorgon Project, located on Barrow Island off the north-west coast of Western Australia. The initial term of the contract is for 12 months, with extension options. The value of the contract is not to exceed US$170 million and will depend on what work orders are placed. Under the contract, Downer expects to create up to 400 Australian jobs predominantly located at Barrow Island. The new roles will be across multiple construction trades disciplines including structural, mechanical, piping, electrical, instrumentation and civil. There will also be a number of new project administration and functional support roles located in Downer’s Perth office.

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NEWS IN BRIEF Monadelphous is granted an extension to the facilities management services contract

Monadelphous Group has been awarded an extension to the facilities management services contract for the Gorgon LNG project operated by Chevron Australia.

The contract extension, valued at approximately US$200 million, is to continue the operation and maintenance of construction facilities and utilities on Barrow Island, Western Australia. The scope of services includes the operation and maintenance of water and wastewater treatment plants, power generation and distribution systems, as well as the management and maintenance of various buildings, vehicles, plant and equipment.

The contract was first secured in November 2009. More than 200 people will continue to be employed as a result of the contract.

ExxonMobil selects Flowcal for PNG LNG facility

Flow-Cal, Inc. has been selected to provide an advanced gas and liquids measurement solution at ExxonMobil Corporation’s Liquefied Natural Gas (LNG) plant in Papua New Guinea.

The project includes a gas conditioning plant, and liquefaction and storage facilities with a large-scale capacity of 6.9 million metric tons of LNG per year. PNG-LNG ExxonMobil selected Flow-Cal’s measurement software solution to store and validate all gas and liquid values going into the PNG LNG facility.

The flow computers used on the project poll data from each of the three PNG facilities and generate Flow-Cal’s secure CFX file format. The proprietary CFX format allows for the import of gas and liquid data into the FLOWCAL measurement application. Generating the file format within the flow computer offers an additional level of data security and integrity.

New custom reporting tools and functionality were built into the FLOWCAL application to meet the PNG project requirements.

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NEWS IN DEPTH

NEWS IN BRIEF

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ON THE MOVE

ON THE MOVE Highlighting new hires, appointments and movement within the industry

BP Names New Chief Executive of US Lower 48 Onshore Business

Paul Hopkins

John Morgan appointed new MD of Equalizer International

David Lawler, 46, takes over just months before BP formally establishes a separate business to manage its onshore oil and gas assets in the continental United States.

John Morgan Equalizer International has appointed John Morgan as its new Managing Director. Mr Morgan, the company’s Director of Engineering for the past five years, takes over the role from Ian McCormick, the company’s Chairman and MD for the past 20 years.

David Lawler Lawler joins BP from SandRidge Energy, Inc., an Oklahoma City-based independent oil and gas producer, where he most recently was Executive Vice President and Chief Operating Officer. The move is designed to give the business the flexibility it needs to aggressively compete in the rapidly changing market.

Decom North Sea announces New General Manager Decom North Sea has selected Karen Seath to join the organisation, in the role of General Manager. With significant experience in both the public and private sectors.

2H Offshore appoints Paul Hopkins to support Norway growth 2H Offshore has appointed Paul Hopkins as Principal Engineer, to develop 2H Offshore’s growing client base in Norway. Hopkins worked for 2H Offshore from 2001 2006 on a diverse range of riser projects, including Exxon’s Kizomba A and B developments and BP’s Shah Deniz project. Hopkins commented, “I am delighted to return to 2H, and I look forward to the many opportunities ahead to further grow 2H Offshore’s business in Norway.”

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www.projectsogp.com - ADIPEC Edition 2014

Karen Seath

ON THE MOVE Karen has significant experience in both the public and private sectors, Karen has spent over 20 years ensuring that collaboration, strategic development and risk and regulatory management are top of the agenda.

Commenting on her appointment, Karen said:“I am delighted to be joining Nigel and the team at Decom North Sea - this is an exciting time for the North Sea decommissioning sector”.

Two new appointments selected Bristow’s Europe Business Unit

Paul Duncan appointed Managing Director of Labtech in Aberdeen

in

Paul Duncan The Board of Specialist Services Group and of Labtech Services Limited are pleased to welcome aboard Paul Duncan as the new Managing Director of Labtech Services Limited in Aberdeen.

Oladapo Oyeleke, Mike Imlach and Alan Corbett Bristow Helicopters has appointed Alan Corbett and Oladapo Oyeleke (Dapo) to start their new roles in the Europe Business Unit (EBU) at Bristow Helicopters Ltd as Director and Deputy Director respectively.

These appointments within the commercial arm of the helicopter operator come as a result of the appointment of former Director, Mike Imlach, to the position of Vice President of Global Operations in the organization.

For almost three decades Paul held a number of senior management positions and developed a strong commercial and operational background in the energy and oil and gas sectors across Europe and North America.

Unique Maritime Group board introduces new member to its family

Aubin navigates to success with John Payne John Payne a Master Mariner and Chartered Director has more than 25 years’ experience in the subsea oil and gas, renewable and subsea telecom sectors. His extensive offshore and leadership experience will allow Aubin to deliver a growing number of projects across the business.

John Payne

Steve MacMillan Unique Maritime Group has formally announced the joining of a new member to its family – Steve MacMillan as the Global Project Director for its Diving Division and the Global QHSE Director.

Steve’s main responsibilities will focus on managing and coordinating large and complex diving related projects through all phases of design, permitting and construction. He will also provide leadership for the regional site project management teams by managing, coordinating and developing UMG staff. Steve will also be responsible for developing and driving the companies QHSE culture in his role as Director of QHSE.

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ON THE MOVE

ON THE MOVE

Mark J. S. Tonkens joins Borealis Executive Board

North-east specialist project management and subsea firm makes key appointment

Mark J.S Tokens Iain Fullerton Aberdeen based, CSL has appointed Iain Fullerton as Business Development Manager – Subsea Engineering and Projects, to assist with the firm’s five-year growth and development plan bringing both new and enhanced services to clients. Mr Fullerton brings a wealth of knowledge and more than 30 years’ experience within the oil and gas and offshore industry having held various business development and sales and marketing roles for leading organisations within the oil and gas and marine manufacturing sector.

Hunting Targets Scandinavian Market with New Regional Manager

Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, has appointed Mark J. S. Tonkens as Chief Financial Officer (CFO) and member of the Executive Board.

He succeeds Daniel J. Shook who has decided to pursue career opportunities outside Borealis. Mark J. S. Tonkens joined Borealis in 2009 and last held the position of Senior Vice President Group Controlling.

He has a Master of Science (MSc) degree in Business Economics and a post graduate Chartered Accountant (Register accountant) degree from the University of Groningen in the Netherlands.

Goodyear names Christina Zamarro Vice President, Investor Relations

Christina Zamarro

Ørjan Frøyland Hunting Energy has welcomed Ørjan Frøyland to the role, who will be responsible for overseeing the establishment of the Hunting brand within the region, with a particular focus on the growing Norwegian and Danish markets. Ørjan brings nearly 20 years of experience to the position, having previously worked within some of the world’s leading energy sector firms.

Christina Zamarro has been named Vice President of Investor Relations effectively immediately. Zamarro has been assistant treasurer, capital markets and risk management since 2010 with responsibility for the company’s global capital markets, creditor relations, risk management and pension asset management activities.

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TECHNOLOGY

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REPORT

MENA UPSTREAM PROJECTS

A report by Robert Stevens, GlobalData’s Lead Upstream Analyst covering the Middle East and North Africa.

South Pars Phase XI, Iran South Pars Phase XI is one of the 25 to 30 phases through which the Iranian government has planned to exploit its portion of the giant offshore gas-condensate field which straddles the maritime border between Iran and Qatar. After first Total SA and then the Chinese National Petroleum Corporation backed out of the development of Phase XI, in August 2013 the Iranian Petropars Ltd was awarded the US$5 billion buyback contract under which the field will be developed within 52 months.

Each of the 27 drilling islands (25 for oil drilling and 2 for water injection) is approximately 9 hectares in area and a total of 4 km of bridges were built into the causeways for environmental reasons. In addition to the offshore work much of the development activity occurred on the coast. Onshore wells used extended reach drilling from the 15 drilling sites. These wells reached over 32,000 feet in total length, making them the longest ever drilled in Saudi Arabia.

North Alexandria Concession, Egypt

South Pars Phase XI is going to feed the South Pars liquefied natural gas (LNG) export terminal, providing 1,900 million cubic feet per day (mmcfd) when operating at full capacity. The overall production will comprise a further 100 mmcfd of sour gas and 80,000 barrels per day (bd) of condensate. The project is the first of the South Pars developments aimed at producing gas for liquefaction and export and will therefore, once completed, represent a milestone for both Iran and for global LNG markets.

The BP-operated North Alexandria Concession is located in the deep water offshore the West Nile Delta, 40 km off the coast of Egypt. Awarded in 2000, the area is the first part of a two-phase development planned for the West Nile Delta region expected to cost at least US$13 billion. Five gas-condensate fields are to be developed using subsea infrastructure within North Alexandria – Fayoum, Giza, Libra, Raven and Taurus – at an estimated cost of US$9 billion, with the second phase of the project located in the West Mediterranean Deep Water Concession.

The South Pars Phase XI offshore development will comprise two independent platforms from which a total of 24 wells will be drilled. Two 32” 136 km long subsea pipelines will be installed to connect the platforms with the onshore section. The onshore section of the project will be located in the Pars Special Economic Energy Zone 2, approximately 60 km west of Asalouyeh and about 100 km northeast of the South Pars field. Early production from Phase XI, if further delays do not affect the development of the project, could start in 2017.

Production had initially been anticipated by 2015 but development work stalled in 2011 owing to the political crisis in Egypt and the inability of the government to meet its financial obligations with several International Oil Companies (IOCs). In March 2014 LetterOne acquired RWE Dea and in the second quarter of 2014 BP and the Egyptian authorities pledged further commitments for the concession with the intent to start production by 2018,

Manifa, Saudi Arabia The Manifa field is located offshore in the Persian Gulf, 120 miles north of Dhahran, in water approximately 5 meters deep. Discovered in 1957, the field was put into production in 1964 but was mothballed in the mid1980s because of a lack of demand for its heavy crude.

Due to the rising demand for heavier oil, Saudi Aramco made the decision to redevelop the field in 2006. The field has been developed using a series of man-made islands, which were completed in 2009. Drilling at the field began in March 2010 and production commenced on April 10, 2013.

An expected gross production of 5 trillion cubic feet of wet gas is being targeted over the first 20 years with a peak rate of around 800 mmcfd of dry gas. The production will be piped to a new onshore gas processing facility in Kafr El-Sheikh.

The project is set to meet about 25% of the Egyptian domestic gas demand, which is increasing rapidly.

The importance of the asset prompted the Egyptian authorities in 2007 to raise the project’s gas price ceiling from US$2.72 per thousand cubic feet (mcf) to US$4.84 per mcf, and in 2010 the fiscal terms were changed from a production sharing mechanism to a tax and royalty structure in order to ensure the commercial viability of the development.

The Manifa development plan included 27 drilling islands linked to the coast by 41km of causeways, 15 onshore drilling sites and 13 offshore drilling platforms.

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CLIENT FEATURE

‘Unmanned technology improving inspection efficiency’ Whatever phrase you may have heard repeated in the media perhaps, ‘drone,’ maybe ‘UAV,’ you will have almost certainly read or seen the many discussions had on its numerous potential applications across many different commercial sectors.

In the Oil and Gas industry, UAV (Unmanned Aerial Vehicles) are already being used routinely for inspections of on and offshore oil and gas assets. Sky-Futures is one such example of a company already proving the benefits that can be gained through utilising unmanned technology in the oil and gas sector. The oil and gas industry as a result, is at the forefront of the unmanned revolution.

Technology advances UAVs are able to fly close to structures to capture data, in HD video, stills and thermal formats. The systems have built-in safety structures, such as a ‘fly home’ setting where the UAV lands safely in a pre-determined spot, in the case of signal interference or system failure.

As well as this, the operators are required to complete a thorough in-house training course. With 5000 hours’ worth of experience flying, the operations stay safe, and the operators gain experience in flying in order to obtain the best imagery and video needed for detailed inspection reports. Following the data collection, SkyFutures’ in-house experts, from CSWIP / ASME integrity inspectors and their own flare expert, are able to write reports on the asset’s condition.

Repair and Maintenance efficiency Carrying out inspections offshore has traditionally been the job of rope-climbers and scaffolding teams. The job is dangerous, costly and heavily dependent upon the weather. In addition, for many inspections, assets are often required to be shut down whilst they take place.

Typically stopping production on an offshore platform costs USD$4m+. For onshore shutdowns the savings of keeping a system running are upwards of USD$1m+ per day.

Their flare expert, David English, explains how unmanned technology has enabled engineers such as himself to assess the conditions of vital assets such as flares quickly and safely; “Unmanned technology allows engineers to assess data on ‘live’ flares. The engineer is able to understand and review the condition of individual components that make up the complete flare tip and therefore assess the

overall condition of the system, establish its ability to continue in-service and enable an informed decision to be made for maintenance/replacement during a planned shut-down’’ It is this ability to allow companies to pre-plan, that means maintenance can be carried out far more efficiently, time to order parts is increased, and unnecessary shutdowns are avoided.

One recent inspection in South East Asia demonstrates such efficiencies. Their client wanted an inspection prior to a scheduled maintenance shutdown of its offshore facility. The UAV gathered data allowing SkyFutures’ flare expert to identify that the gas pilots on the flare tip had severely degraded.

The technical report that followed explained the critical nature of the anomalies identified. This allowed the client to plan to replace the complete flare tip during the next planned shut-down.

Had the client waited until the planned maintenance shutdown to identify anomalies, then a further shutdown to replace the flare tip would have had to take place at a later date. Such shutdown avoidance can save clients significant amounts of lost revenue.

The Future Sky-Futures already list some of the world’s largest oil and gas companies as its clients, and has been providing flare and asset integrity inspections to regions from the UK North Sea, the Middle East, and South East Asia.

The USA is the next big market, for oil and gas UAV inspections. With companies like Sky-Futures gearing up towards offering services there as soon as the FAA (Federal Aviation Authority) allows commercial UAV flights in the region.

What is certain is that such services are already revolutionising inspection services globally and the future looks set to improve inspection efficiency only further, as new advances in technology allow for even better management of data and the more efficient use of individual’s skills within the industry.

www.sky-futures.com

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CLIENT FEATURE

Specialist Services awarded project by Petrofac for UZ 750 Specialist Services has been awarded a large contract for the provision of LERs and LCRs for the Upper Zakum 750 project by Petrofac.

Specialist Services have been awarded a contract from Petrofac for the provision of Local Equipment Rooms (LER) and Local Control Rooms (LCR) buildings for the Upper Zakum 750 Island Surface Facilities Project (EPC 2). This follows a previous award for the same development by Leighton Offshore to Specialist Services for the islands harbour house buildings.

Petrofac is a leading international service provider to the oil and gas industry. Its Petrofac Emirates operation in Abu Dhabi, in consortium with Daewoo Shipbuilding & Marine Engineering, has a contract for engineering, procurement, construction, transportation and commissioning of island surface facilities on four artificial islands with the Zakum Development Company (ZADCO) for their UZ 750 field development project in Abu Dhabi. Petrofac has subcontracted to Specialist Services the provision of LERs and LCRs. All buildings will be installed on the Abu Dhabi ZADCO Upper Zakum Offshore Field located in the Arabian Gulf, 84 km from Abu Dhabi.

details, and PDMS software for complete modelling and inter-disciplinary clash-checking. All buildings will be fabricated and loaded out from Specialist Services waterfront facility in Mussafah, Abu Dhabi.

“Having already completed successful projects as part of the UZ 750 project we are keen to continue our strong performance in terms of quality and on time delivery with this new project,” concluded Chris Ridley.

The first steel cutting ceremony will take place on Thursday, 28th August 2014, at the Specialist Service facility in Mussafah, Abu Dhabi. The project is expected to be completed by August 2016.

Chris Ridley, Group Sales and Marketing Director at Specialist Services Group said: “This is a very large and demanding project that we are proud to have been selected to execute. Our unique capabilities in terms of our in house engineering, strong project management, in house fabrication and ideally located waterfront facilities ensured we were viewed by Petrofac as the ideal partner to complete this complex project.”

Following the Letter of Award from 18th December 2013, a contract was signed on 2nd April 2014 for the design, engineering, fabrication and supply of eight LER and four LCR buildings. The scope of work includes detailed design, engineering, fabrication, commissioning and load-out of the 12 modules with total built-up weight of 8,170 tons. The Specialist Services scope includes structural, architectural, electrical, HVAC and fire & gas works, as well as the installation of all client free issue electrical and control equipment including interconnection and FAT in Specialist Services facility.

A dedicated project management team has been appointed for the execution of the project.

The detailed engineering of the buildings will be completed by the company’s in house multi-disciplined engineering resource using the latest software support including TEKLA for the structural steel design to produce accurate weights and detailed connection

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FINANCE

FINANCE NEWS Chevron’s sale and joint venture partnership for Duvernay Shale Assets in Canada with KUFPEC Chevron Corporation’s wholly-owned subsidiary, Chevron Canada Limited, has reached agreement to sell a 30 percent interest in its Duvernay shale play to Kuwait Foreign Petroleum Exploration Company’s wholly-owned subsidiary, KUFPEC Canada Inc., for US$1.5 billion.

The total purchase price includes cash paid at closing as well as a carry of a portion of Chevron Canada’s share of the joint venture’s future capital costs. The Duvernay is located in west-central Alberta, and is believed to be among the most promising shale opportunities in North America.

The agreement creates a partnership for appraisal and development of liquids-rich shale resources in approximately 330,000 net acres in the Kaybob area of the Duvernay.

“This sale demonstrates our focus on strategically managing our portfolio to maximize the value of our global upstream businesses and is consistent with our partnership strategy,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation.

Atkins acquires Houston based oil and gas engineering business WS Atkins plc has achieved the acquisition of Houston Offshore Engineering, LLC (“HOE”), a leading oil and gas offshore engineering business based in Houston, Texas, for US$73million.

HOE has specialist experience in the design of offshore deep-water floating production platforms with a well-established project and client base in

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the international oil and gas market. In the year to 31 December 2013, HOE reported revenue of US$41million.

Energean purchases new rig and begins new US$225 million investment programme in Greece Energean Oil & Gas, the International Oil & Gas Exploration and Production Company focused on the Mediterranean and North Africa launched a new US$225 million investment programme to develop 30 million barrels of reserves in North West Greece and to increase production from the Prinos, Prinos North and Epsilon fields to; 10,000 bbls/day by 2016.

The new investment programme involves the drilling of 15 wells and the installation of two new unmanned platforms for the Prinos North and Epsilon fields which will be tied back to the existing infrastructure Energean already operates.

In addition, Energean has purchased the tender assist drilling rig Glen Esk from KCA Deutag and will be utilising its own drilling crews to drill the wells, significantly reducing drilling costs and giving Energean operational flexibility to maximise recovery of the reserves from the Prinos basin.

The new rig will be re-named “Energean Force” and is expected to commence drilling in Greece in the beginning of December 2014.

INPEX Insurance Subsidairy awarded excellent rating by A.M. Best INPEX Insurance, Ltd. has been awarded a financial strength rating of “A-” (excellent) and an issuer credit rating of “a-” by A.M. Best, considered one of the world’s leading insurance company rating services.

The ratings, to which A.M. Best assigned stable outlooks, reflect IIL’s robust risk-adjusted capitalization, conservative

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FINANCE operating strategy and the explicit support. INPEX expects the ratings awarded by A.M. Best to strengthen its credibility through improved objective evaluation of IIL’s insurance business and financial standings by third parties.

Woodside CEO Peter Coleman said the outstanding financial results reflected Woodside’s disciplined approach and commitment to performance excellence.

The ratings will help INPEX promote more effective insurance procurement and operational risk management group-wide.

“Our half-year profit was up 27 per cent on the same period as last year, reflecting our record production, higher realised prices and increased sales volumes, our record production is a testament to our assets’ on-going reliability.”

JX Nippon Oil & Gas Exploration Corporation invests in Japan Methane Hydrate Operating

AMEC takes on the rest of 2014 with stability

JX Nippon Oil & Gas Exploration Corporation has invested in Japan Methane Hydrate Operating Co., Ltd., a joint venture company established on October 1, 2014 aiming to participate in the Medium to Long-term Offshore Production Test of methane hydrate conducted by the Japanese government.

JX Nippon are committed to utilizing the technology, knowledge and experience it has accumulated through exploration and production of oil and natural gas operations to contribute for research and future commercialisation on Japan’s methane hydrate resources as a pioneer.

A substantial quantity of methane hydrate is estimated in the offshore areas around Japan. Serving as a new domestic energy source, with the potential to make a major contribution to a stable national energy supply for Japan, technological development is expected for its commercialisation including establishment of production technologies.

Woodside achieves record first half profit of US$1.105 billion Woodside has achieved a record half-year reported net profit after tax (NPAT) of US$1.105 billion, underpinned by record production of 46.5 MMboe and record operating revenue of US$3.551 billion for the period.

Woodside’s record half-year operating revenue of US$3.551 billion puts the company at a 24% increase on 1H 2013.

This reflected higher realised prices due to the transition to the new Pluto pricing regime and higher sales volumes primarily attributed to an entire half of Vincent production, which came back online in Q4 2013 and increased reliability at Pluto and North West Shelf.

In August 2014, AMEC issued its half year results for the six months which ended on the 30th of June 2014.

The report recorded a 4% growth along with stable margins for the company. Trading since then has been in line with expectations, the group’s outlook remains unchanged and the financial position of the group remains strong.

AMEC continues to see less Greenfield activity in some of the group’s key upstream oil and gas markets, which is partially offsetting the strong growth from Clean Energy and Middle Eastern Oil & Gas. It is expected that the company will see a modest underlying revenue growth throughout the rest of 2014, for its existing operations.

Murphy Oil Corporation has closing sale success Murphy Oil Corporation’s Board of Directors declared a quarterly cash dividend on the Common Stock of Murphy Oil Corporation of US$0.35 per share, or US$1.40 per share on an annualised basis. The dividend is payable December 1, 2014 to holders of record November 14, 2014.

In an operational update, the Company has confirmed the successful closing on the sale of the U.K. retail gasoline network on September 30, 2014 to Motor Fuel Group. The sale of the Milford Haven refinery remains on track to close on October 31, 2014.

Roger Jenkins, President and Chief Executive Officer commented: “We are pleased to conclude the sale of the U.K. retail business and expect to complete the Milford Haven refinery divestiture in the near term.”

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FINANCE Boardwalk completes acquisition of evangeline pipeline system

EOS instigates offer for all shares of Dune Energy

Boardwalk Pipeline Partners LP has completed the acquisition of Chevron Petrochemical Pipeline LLC, which owns the Evangeline ethylene pipeline system from Chevron Pipe Line Co.

EOS’s directly wholly owned subsidiary, Eos Merger Sub Inc., has begun a tender offer to acquire all of the outstanding shares of Dune common stock for US$0.30 per share in cash, without interest and less any applicable withholding taxes.

Evangeline will be operated by Boardwalk Louisiana Midstream (BLM), a subsidiary of Boardwalk that provides transportation and storage services for ethylene and natural gas liquids, natural gas storage, and brine supply services for producers and consumers of petrochemicals through two hubs in southern Louisiana: the Sulphur Hub in the Lake Charles area and the Choctaw Hub in the Mississippi River Corridor.

The Evangeline system is a 176-mile interstate pipeline capable of transporting 2.6 billion pounds of ethylene per year and is supported by long-term, fee-based contracts. Evangeline transports ethylene between Port Neches, Texas, and Baton Rouge, Louisiana, where it interconnects with BLM’s ethylene distribution system that includes BLM’s storage facilities at the Choctaw Hub.

Callon completes core Midland basin acquisition Callon Petroleum Co. has closed its acquisition of 6,230 gross (3,862 net) surface acres and associated production located in Midland, Andrews, Martin, and Ector counties, Texas.

Including estimated purchase price adjustments, total net consideration paid for the acquisition was US$205 million. The properties have historically been developed with vertical wells, although horizontal activity has recently been progressed.

Two horizontal Wolfcamp B wells have been drilled since June 2014 with one, the Casselman 8-1H, currently flowing back and another, the Bohannon 24-2H, in the process of completion. In addition, the Casselman 404H, a horizontal Lower Spraberry well, is in the process of drilling.

In conjunction with the acquisition, the company has completed an equity offering for US$129 million in gross proceeds and a new term loan for US$300 million in gross proceeds.

Pro forma for the completion of the acquisition and closing of the financings, the company estimates its total liquidity position to be US$242 million as of Sept.

30 2014, including availability under an amended borrowing base level of US$250 million.

The offer is being made pursuant to the terms of the previously announced definitive merger agreement entered into between Eos, Eos Merger Sub, and Dune on the 17th of September 2014.

If the offer is successfully completed, it is expected that Eos will acquire any of the Dune common shares not tendered in the offer through a merger transaction in which the remaining shares of Dune are converted into a right to receive the same consideration per share as paid in the offer.

REX acquires stakes in licenses offshore Norway Rex International Holding Ltd. has completed the acquisition of 5% stakes in each of two licenses – PL591 and PL591B – from North Energy, following receipt of regulatory approval.

Tullow Oil Norge AS is the operator of both licenses.

Exploration drilling in the licenses is expected to begin in the first half of 2015.

Lime Norway is a wholly owned subsidiary of Lime Petroleum Plc. Lime Petroleum Plc is a jointly controlled entity in which the Rex holds a 65% indirect stake, of which 8.6% is held by Schroder & Co Banque SA on a fiduciary basis for Rex. Lime Norway currently has stakes in 13 licenses in Norway. With capital injections totalling US$23 million made by the shareholders of Lime Petroleum Plc in November 2013 and January 2014, as well as with the NOK 300 million financing facility secured from Skandinaviska Enskilda Banken AB, Lime Norway has adequate financing to fulfil its work commitments into 2015.

Craig Group enters league table of UK’s mid-market private companies for the first time Craig Group has been named as one of the UK’s leading private mid-market companies in the latest annual Sunday Times Grant Thornton Top Track 250.

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FINANCE FINANCE The Aberdeen head-quartered global shipping and energy services firm has entered the list for the first time, ranked 236th. The Top Track 250 is sponsored

by Grant Thornton and Barclays, and compiled by Fast Track, the Oxford-based networking events and research Company.

The company reported turnover of £146.8million for the year ended April 2013 with operating profits of £17.4million. One of Scotland’s top 100 companies and in the top 20 of offshore service companies in the North Sea, Craig Group operates in Europe, Africa and the US in the areas of offshore support, ROV survey, emergency response and rescue vessels, oilfield supplies and leisure.

Craig Group Chairman and Managing Director, Douglas Craig, said: “This national recognition reflects the steady, sustainable growth our business achieves through the expertise of our people, the quality of our service and our continued investment in new vessels and new bases around the world.”

Neste Oil`s biopropane will be sold to SHV Energy Neste Oil and SHV Energy have agreed that SHV Energy will market and sell biopropane to be produced at Neste Oil`s Rotterdam refinery. The agreement to supply some 160,000 tons of biopropane over a four-year period is the first of its kind anywhere in the world. SHV Energy plans to sell the biopropane in several European markets and has initiated discussions with customers in France, Germany, Benelux, Scandinavia and the UK. Replacing existing fossil fuels with biopropane will result in significant carbon savings.

“Biopropane is a wonderful addition to our product portfolio, and our customers can benefit from it,” says Fulco van Lede, Management Board Member of SHV Energy. LPG already provides our customers with a cleaner rural energy choice to the high-carbon fuel alternatives many are dependent on in off-grid areas.

Biopropane means this option will become even cleaner.

In use, it is identical to conventional propane and can be blended and used by all existing appliances suitable for use with propane.”

Chamber calls for oil and gas tax rate cut in autumn statement The leading business network in the North-east of Scotland has urged the Chancellor to cut the tax rate for the oil and gas sector in his Autumn Statement.

In its submission to HM Treasury’s Oil & Gas Tax Review, Aberdeen & Grampian Chamber of Commerce says this

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may be the last chance for action before companies abandon wells, remove infrastructure and leave the UKCS. Its response to the review was developed with input from operators involved in exploration and production both in the UKSC and globally, and reflects its concern that the current fiscal regime does not take into account the maturity of the basin and the risks involved in investing in the area.

James Bream, research and policy director at the Chamber, said: “Operators tell us the UKCS fiscal regime is unpredictable, unnecessarily complex and simply too burdensome. In a mature basin, the industry must cut costs, innovate and increase collaboration, but it cannot work in isolation of Government and a consistent, fair and stable tax regime is crucial. Companies are not convinced they can get a fair return on their investment and in a global industry, it is very simple for them to move their capital elsewhere.”

Statoil sells 15.5% share in Shah Deniz to PETRONAS for US$2.2 billion Statoil has sold its 15.5% participating interest in the Shah Deniz production sharing agreement, 15.5% share in the South Caucasus Pipeline Company (SCPC), 15.5% share in the SCPC holding company, and 12.4% share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas company PETRONAS. The transaction value is US$2.25 billion.

“Statoil has created significant value by participating in the development of this asset over the years and we are pleased to announce this deal with PETRONAS. The divestment optimises our portfolio and strengthens our financial flexibility to prioritise industrial development and high-value growth,” says Lars Christian Bacher, Executive Vice President for Development and Production International in Statoil.

In recent years Statoil has strengthened its resource base and industrial opportunity set. Statoil has realised substantial value from transactions on the Norwegian Continental Shelf and internationally. This portfolio optimisation continues to increase financial strength and flexibility to deliver on our strategy for high-value growth.

The effective date is 1 January 2014. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.

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