Energy, Oil & Gas Issue 133 June 2016

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issue 133 JUNE

response A reactive

The place of nuclear power in developing a low carbon energy solution

Alternative paths Traditional IOCs are examining the key drivers of change in the sector and developing suitable answers to the challenges The real EVP An Employee Value Proposition characterises you as an employer and can differentiate you from the competition

Also in this issue - Transmission & Distribution, Helicopters, Liquid Air Energy Storage

Editor Editors Chairman Andrew Schofield Editor Libbie Hammond libbie@schofieldpublishing.co.uk Staff Writers Jo Cooper Ben Clark Andrew Dann Editorial Administrator Emma Crane Art Editor Gérard Roadley-Battin Production Manager Fleur Daniels Studio Assistant Barnaby Schofield Sales Director Joe Woolsgrove Operations Director Philip Monument Business Development Manager Mark Cawston Sales Tim Eakins Andy Ellis Darren Jolliffe Jonas Junca Dave King Theresa McDonald Elliot Scales Research Managers Ben Richell Natalie Griffiths Kieran Shukri Editorial Researchers Jeff Johnson Wendy Russell

In this issue of EOG we are able to bring not only coverage of the Laggan-Tormore project from Total E&P, but also Maersk Oil’s Culzean Gas Field development

I’m very pleased

that in this issue of EOG we are able to bring not only coverage of the LagganTormore project from Total E&P, but also Maersk Oil’s Culzean Gas Field development – this is valued at $4.5 billion.

The technology and innovation involved in these projects is astonishing, as is their scale. All the companies involved are totally dedicated to safe operations and are utilising all solutions available to ensure that risks to personnel are minimised.

The impacts these two projects will have on the UK economy are also significant – for example Maersk estimates $3.3 billion will be spent directly in the UK market over the lifetime of the project.

I’d love to hear more about these sorts of developments across the globe so if you’ve got a story to share, please get in touch!

editor LIBBIE HAMMOND

­Office Manager/Advertisement Administrator Tracy Chynoweth Digital Subscriptions Iain Kidd digital @schofieldpublishing.co.uk

© 2016 Schofield Publishing Limited all rights reserved 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131

@EOG_magazine please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

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1

Regulars

Profiles

4

A reactive response

The next few years are going to see a new generation of nuclear reactors come online

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The real EVP

Why would an EVP be valuable to companies in the oil and gas market?

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Alternative paths

Low oil prices are driving pervasive structural changes in the industry

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Duty of care

Standards and strategies for helicopter safety in the oil and gas market

14

A compelling solution

How Liquid Air Energy Storage (LAES) offers a new hope to the energy generation market

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News

Some of the recent developments within the oil and gas industry

20

A useful catalyst

The Low Carbon Networks Fund has achieved sector wide impacts, and has been a successful vehicle for change

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23 Parkwind 27 TANAP Project 33 Archer UK 37 Shazand Arak 40 Matco Asia 42 Maersk Oil – Culzean Gas Field 46 VBMS 49 JDR Cable Systems 54 Northern Gas Networks 56 Helgeland Kraft 58 Laggan-Tormore Project – Total E&P 64 YPF Bolivia 66 Shawcor 70 Reelwell 72 Suomen Hyötytuuli 74 OceanMaster Engineering 76 Vysiion 78 VWS MPP Systems 80 Ledwood Mechanical Engineering 82 BST Supplies

Contents

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84 PPS Pipeline Systems 86 VandeGrijp Group 88 Caspian Offshore Construction 90 Bohlen & Doyen 92 Cummins Middle East

94 Wilhelm Group 94 96 Scaldis 98 DEA Deutsche Erdoel 100 Schmid AG Energy Solutions 102 Interocean 104 DUC Marine Group 106 AHI Carriers FZC 109 Norfolk Marine 109

ENERGY,oil&gas

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3

response A reactive

As the impact of global climate change continues to be felt there is increasing demand for the development of low-carbon power generation technologies. Andrew Dann talks to Dr. Jonathan Cobb of the World Nuclear Association about the place of nuclear energy in developing a low-carbon energy solution

W

hile the debate surrounding climate change may still have some dissenters, the current scientific consensus is that manmade CO2 emissions are a major driving force in the warming of the Earth’s atmosphere. NASA for example, asserts that the planet’s climate is warming and lists statements from 18 leading American and international leading scientific organisations in support of this conclusion.

A statement from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report, Summary for Policymakers (2014) for example, states that: “Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have

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warmed, the amounts of snow and ice have diminished, and the sea level has risen.” While later adding that: “Human influence on the climate system is clear, and recent anthropogenic emissions of greenhouse gases are the highest in history. Recent climate changes have had widespread impacts on human and natural systems.”

The consensus on the issue of global warming now extends to every corner of the world. The State of California for example, currently hosts a list of around 200 global organisations ranging from the Academia Chilena de Ciencias, Chile to the Zimbabwe Academy of Sciences that all support the premise that climate change has been caused by human action. Also in support of the consensus are organisations such as the British Antarctic Survey and the

Nuclear Power

United Nations Intergovernmental Panel on Climate Change.

NASA and the Goddard Institute for Space Studies (GISS) have collaborated to collect data illustrating the change in global surface temperature relative to 1951-1980 average temperatures. The collected results show that in a 134-year record of results from 1881 to 2015, that the ten warmest recorded years have all occurred since 2000, with the exception of 1998. NASA and GISS temperature analysis further suggests that this translates to an average global temperature rise of about 0.8° Celsius (1.4° Fahrenheit) since 1880. To combat and limit the impact of industry on climate change through CO2 emission, governments around the world are increasingly implementing mitigation measures such as carbon taxes and subsidies for renewable

fuels. Crucially there is increasing interest in encouraging the further development of alternative power generation methods to take over from fossil fuel burning to aid the development an effective CO2 mitigation solution.

“It is clear that we need to make very significant reductions in global greenhouse gas emissions if we want to prevent the worst effects of climate change. The energy sector, electricity generation in particular, is an area where the ability to decarbonise has been demonstrated with technologies available today. By the middle of this century we may need to eliminate 80 per cent of our greenhouse gas emissions from this sector,” reveals World Nuclear Association (WNA) Senior Communication Manager, Dr Jonathan Cobb. “In Europe alone countries such as France,

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The national plans put forward by most nations ahead of COP 21 don’t come close to making the kinds of reductions in emissions that will be necessary. We will need to do more in all sectors, not just the energy sector, but nuclear energy has a very important role to play in more ambitious energy policies

Sweden and Switzerland have been able to reduce fossil fuel generation to very low shares of the generation mix and they have done this by combining nuclear energy with renewable power generation.”

Both the importance of limiting the global rise in temperature and the role of nuclear energy in mitigating CO2 emissions were discussed at the Conference of Parties (COP) 21, also known as the Paris Climate Conference, during 2015.

While the conference led to the establishment of ambitious targets for reducing the impact of global warming, there is less certainty regarding how the targets will be reached, as Jonathan explains: “The Paris Agreement committed the international community to keeping the global temperature rise above pre-industrial levels to less than 2° Celsius, with the aim of going further to limit the rise to 1.5° Celsius. To achieve even just the 2° Celsius target will require significant reductions in greenhouse gas emissions. What the Paris Agreement doesn’t do is say how the international community is going to achieve this. The national plans put forward by most nations ahead of COP 21 don’t come close to making the kinds of reductions in emissions that will be necessary.

We will need to do more in all sectors, not just the energy sector, but nuclear energy has a very important role to play in more ambitious energy policies.”

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Nuclear power possesses several benefits that differentiate it as a useful tool in limiting the impact of climate change.

For example, nuclear power is able to provide constant and reliable supplies of low carbon electricity when compared to other low carbon options. The development of a broader range of capacity options with the introduction of small modular reactors (SMRs) and the ability to adjust the output of power according to demand through the use of mod-merit power plants, will also increase the suitability of nuclear generation for different grid requirements. “Nuclear power supplies a reliable baseload that can complement generation from other low carbon sources. It also works particularly well with hydropower, as shown in France, Switzerland, Sweden and also the Canadian province of Ontario. The right mix of solar and nuclear can also make a good contribution, with solar helping meet daytime peaks and nuclear supplying the underlying demand,” Jonathan says. “France succeeded in moving from a fossil fuel-dominated generation mix to more than 75 per cent low carbon generation in just two decades with nuclear energy.

It is important that we make a priority of decarbonisation of electricity generation as achieving similar reductions in other sectors is likely to be much more challenging.”

Although the evidence over six decades shows that nuclear power is a safe means of generating electricity and

Nuclear Power

that the risk of accidents in nuclear power plants is low and declining, one of the greatest challenges facing the nuclear energy industry is one of public perception. There have been only three major reactor accidents in the history of civil nuclear power during over 16,000 cumulative reactor-years of commercial nuclear power operation in 33 countries, but public fears can still hinder the development of new plants.

“One of the issues facing the nuclear industry is that people hear about nuclear energy far more often than they do about the other forms of electricity generation and what they hear isn’t always correct - there’s no long running cartoon series where the lead character works in a coal-fired power plant!

For a better understanding of nuclear energy there needs to be a better education of all the different forms of electricity generation so that we can understand the comparative merits of all the different energy choices,” Jonathan explains. “Our website is one of the main ways in which we contribute to providing a better understanding of nuclear energy. Our information library offers in-depth profiles of more than countries as well as each stage of the nuclear fuel cycle. We also have a news service to bring information on the latest developments.”

Despite these challenges, at the time of writing there are currently 66 nuclear reactors under construction and

global and nuclear build rates are at their highest level for more than 25 years. During 2015 for example, nearly ten GW of new nuclear capacity started supplying electricity, representing twice the capacity added during previous years. Within the UK the industry is currently still waiting to see if the EDF Hinkley Point 3 project will go ahead, however should the plant be built it will represent the first of a new generation of new nuclear plants in the country and supply around seven per cent of the state’s energy needs. “This project at Hinkley, as well as other new nuclear projects proposed at Sizewell, Moorside, Wylfa, Oldbury and Bradwell, can make a very significant contribution to helping the UK meet its target of reducing greenhouse gas emissions by 80 per cent by 2050. We believe that globally we will need to add 1000 GW of new nuclear capacity by 2050 as our contribution to reaching the emissions targets agreed in Paris at COP 21. To do this we need to continue from the 10 GW additions seen in 2015 and ramp that up until global additions are running at 33 GW per year,” Jonathan observes.

“These build rates are similar to those seen in the 1980s.

To help encourage these rates in the future we need to see technology-neutral market frameworks that permit all lowcarbon technologies, valuing not only carbon costs, but also system reliability and environmental benefits. To this end the WNA will be focusing on helping its members with the continued operation of the existing global fleet of reactors, especially those facing challenging market conditions. This also means supporting our member companies working in mining, enrichment, fuel fabrication and the other sectors of the nuclear fuel cycle that support those reactors,” he concludes. “The next few years will also be an exciting time for us, as the first of a new generation of reactors start to supply electricity, including those soon to come online in China, in Europe and the US.”

the world nuclear association The World Nuclear Association is a network of around 170 of the world’s leading nuclear companies in over 35 countries and represents all aspects of the global nuclear industry. Its members include virtually all of the world’s uranium mining, conversion, enrichment and fuel fabrication companies, all major reactor vendors, nuclear utilities providing 70 per cent of world nuclear generation, major nuclear engineering, construction, and waste management companies. The association was established in 2001 with a mission is to promote a wider understanding of nuclear energy among key international influencers by producing authoritative information, developing common industry positions, and contributing to the energy debate.

For further information please visit: world-nuclear.org

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The real

EVP

EVPs: what they are and why they’re important in the oil & gas industry. Justine James explains

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here is a well-documented skills shortage in the oil and gas industry caused by older, skilled workers leaving the sector, and a lack of suitable graduates with STEM Below (science, technology, engineering and Justine James, mathematics) qualifications coming into it. This is creating a Founder of leading widening gap in mid-level jobs, despite tempting salary offers HR consultancy and benefits packages, and it’s creating fierce competition for Talentsmoothie the best talent.

So what can we learn from companies, like Apple, that never have a problem attracting top talent, that can be adopted by oil and gas organisations? Apple is as famous for the way it treats its staff, and the quality of its staff, as it is for its products and services. Apple doesn’t have to enter into a war for talent; it has great people queuing up to join

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it. One of the main reasons for this is its strong and credible Employee Value Proposition, or EVP. So what is an EVP? It’s the deal struck between an organisation and employee in return for their contribution and performance. At Talentsmoothie we call this the ‘People Deal’. It’s what characterises an employer and differentiates it from its competition. A well-articulated EVP will bring significant benefits. It can create an environment where people can thrive and do their best work, and in turn this impacts on the customer experience, customer loyalty and ultimately improves business performance.

Most organisations encounter two main problems when it comes to their EVP: SS Firstly they struggle to differentiate themselves from their competition. Differentiation is crucial if an organisation is

HR

to stand out from the ‘sea of sameness’ that characterises some sectors.

SS Secondly their branding is appealing, but it does not accurately reflect the reality.

An effective EVP enables an organisation to stand out as different, but also it ensures that the ‘packaging’ reflects the ‘contents’. All too often people join organisations tempted by the ‘branding’ and are disappointed when they experience the reality.

According to a recent Hays survey, company reputation is a significant factor for job seekers evaluating job opportunities in the oil and gas sector, and with information more readily available on the internet about what it’s really like to work for an organisation, it’s important that organisations deliver on their recruitment promises.

An effective EVP can bring an organisation significant benefits. According to the Corporate Leadership Council’s research, a well thought-through and executed EVP can: SS Improve the commitment of new hires by up to 29 per cent SS Reduce new hire compensation premiums by up to 50 per cent SS Increase the likelihood of employees acting as advocates from an average of 24 per cent to 47 per cent In addition, an effective EVP allows organisations to source more deeply within the labour market, increasing access to ‘passive’ candidates who may not have even considered entering the oil and gas industry.

Demographic predictions show that there will be a stark contrast in population growth in certain areas of the world.

Many countries will show a decline in population making it harder to source talent, whereas in countries such as India there will be large increases making it more difficult to attract the right talent from a potentially large pool. This will cause challenges for organisations in the future and builds an even stronger case for the importance of having an effective EVP. Our clients turn to us for help with their EVP usually because of recruitment or retention issues. All companies have an EVP, whether it is well articulated or not. To ensure your EVP generates maximum returns, it must be built around attributes that genuinely attract, engage and retain the talent you want. It must also be consistent with strategic objectives and clearly demonstrate its uniqueness. That’s why we work with employees and business leaders to define this two-way deal, focusing on action orientated solutions.

The EVP must also be real. That is to say a large proportion of it must be true now. We usually say around 70 per cent, and 30 per cent can be aspirational. This is important to drive change and progress, and also to give employees a sense that the organisation is responding to the changes they want to see.

As well as the ‘content’ of the EVP, it must also be

articulated in a style that appeals to the audience. So many companies write about themselves in a dull way and the net result is a lot of organisations that claim to be unique but all sound the same. Our research with graduates found this is the case.

The EVP is the bedrock of your people strategy and will inform what you should carry on doing, stop doing and start doing to support and drive your business strategy forward. It informs recruitment messages, communications and strategic HR priorities. Knowing where to spend your time and money will make a difference and is one of the great outputs of the EVP process.

We typically help organisations to define and implement their EVPs in eight stages. The full process can take anywhere from three to six months or more, depending on the size of the organisation.

We find that engaging employees in the EVP development process is a very powerful engagement tool in itself and people usually enjoy and appreciate it. It’s also important for building ambassadors who will help implement the EVP once it’s fully defined.

In the highly competitive hunt for talent, companies in the oil and gas sector with an attractive and effective EVP will more easily attract experienced industry professionals from other companies and abroad, and might even broaden the pipeline of talent from outside the sector. Can you afford not to strengthen yours?

talentsmoothie Justine James is Founder of leading HR consultancy Talentsmoothie.

Talentsmoothie is an organisational development consultancy.

Areas of expertise include Employee Value Proposition (EVP), Employee Engagement, Employer Brand and Future Focus. Clients include Atkins, Centrica, Enterprise Rent-a-car, KPMG, Kuoni Group Travel Industry Services, Warner Brothers and Sodexo, and its projects range from one-off reviews, to global strategies and large-scale implementations.

For further information please visit: talentsmoothie.com

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paths Alternative

Stephen Rogers and Ondrej Sanislo explain why low oil prices may drive pervasive structural changes in upstream oil and gas

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any of the highest-cost and technically most complex oil and gas development projects, including remote and deep-water fields, are still deferred or cancelled as their economic outlook remains poor. This presents international oil companies (IOCs, or the ‘majors’) with an increasing reserves-replacement challenge that the largest national oil companies (NOCs) do not face, or at least not in the same way.

Developing scenarios for IOC development As a consequence of these challenges, traditional IOCs’ future access to economically viable resources is becoming increasingly difficult, especially in this relatively low-oil-price environment and uncertain market. This presents IOCs with a growing strategic dilemma. The first step in analysing possible ways forward is to examine the key drivers of change in the sector, considering both their likelihood and impact, and then to develop coherent combinations of these changes that can be developed into scenarios.

SS Carbon constraint (likely/high impact): Current pressures for limits on carbon emissions are likely to become more severe.

SS Opening of closed resource areas (uncertain/moderate impact): The reform and opening up of E&P provinces that are currently closed to IOCs, particularly those involving less-developed NOCs, could generate very attractive prospects for IOCs. SS Supply security of major producers (likely/high impact):

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Changes to either the political or security environment that impacts a major oil or gas producer may have a critical impact on supply levels and pricing in the global market.

SS Advances in fracking technology (certain/high impact): The increasingly low-cost gas volumes that result will continue to displace gas from conventional projects elsewhere in the world and set a cap to gas prices. Several IOCs may, as a result, continue to establish significant positions in this unconventional sector.

SS Pace of demand recovery (uncertain/high impact): Given current production overcapacity in both oil and gas, and significant current levels of oil overstocking, it may be several years before demand growth leads to rebalancing of supply and demand.

SS Investment-capital spend rate (uncertain/moderate impact): The uncertain timing of future tightening of supply and demand is significantly governed not only by the rate of natural production decline in existing fields, but also by the depth and duration of the current slow-down in investment in new-production capacity.

Scenarios for IOC development By combining potential outcomes from the above drivers to form discrete and internally consistent scenarios for the sector’s development, we form a series of alternative future visions for the environments in which IOCs may come to live. These outcomes also describe the strategic responses that the IOCs may have to make.

Trends

demand in particular. Partly as a result, oil-demand growth is restored by continued Asian economic strength, and met by reinstated additional supply from markets such as Iran, Iraq, Libya and Mexico. These markets may have not only undergone political, and in some cases security, settlement, but will start to undergo major capacity overhaul.

In most of these cases the local NOCs will still lack the strengths and capabilities to perform this capacity overhaul themselves. The unlocking of the currently untapped, lowcost potential in these areas can therefore only be carried out by active engagement of IOCs and service companies. There will thus be significant growth in the opportunities open to these companies.

Scenario 3 – ‘Return to mega-projects’

Scenario 1 – ‘Carbon controlled’ This is a world in which effective policies to reduce worldwide carbon emissions are effectively enforced. There is continued rapid growth in renewable energy sources, driven by technology breakthroughs and progressive policy pressures. In the longer term there will be continued and even greater growth in renewable energy production, together with slow expansion of nuclear capacity. Progressive transport electrification and a shifting of gas-fired power from base load towards mid-merit and peak will lead to erosion of demand for both gas and liquids, and particularly for oil.

This reduced oil and gas demand growth will suppress prices and eliminate high-cost supply sources.

The early increase in demand for gas, as coal is displaced over the next 10–15 years, will strengthen gas prices sufficiently to stimulate major new gas projects. These will mostly be pursued by IOCs worldwide, together with expanded unconventional gas capacity in the US. This will be stimulated by continued fracking technology improvement, with the resulting associated gas liquids further dampening any oil-price rise.

As a consequence, it will be common for IOCs to shift towards being more strongly gas-dominated as the availability of project finance becomes more difficult for major new developments.

Scenario 2 – ‘Open house; return to easy oil’ The adoption of fossil-fuel constraints is relatively slow, though the gradual changes that are made will dampen coal

Slow oil and gas demand growth will prompt gradual strengthening of oil and gas prices over the next five to ten years, at least partly due to continuing security challenges or political instability in certain areas and continued closure of IOCs in many NOC provinces.

However, the next few years of low prices will result in a cash-flow crisis and low earnings, which will drive an extended and pervasive wave of M&A consolidation involving most IOCs, both majors and large independents (such as the recently mooted Anadarko/Apache tie-up and the Shell/BG merger). Mergers or fire-sales involving debtridden smaller independents are also very likely. As a result of these aggregations, the fewer remaining much-larger entities will be better able to take advantage of the slow oilprice recovery.

Conclusions These outlines should provide a selection of alternative visions of the future, against which companies might stresstest their own portfolios to identify the most viable and profitable strategies for long-term growth. The best approach would be to develop strategies that are resilient under most plausible scenarios and can be relatively easily adapted depending on which direction the energy world takes.

arthur d. little Stephen Rogers is a Partner and Ondrej Sanislo,is a Consultant at Arthur D. Little. Arthur D. Little has been at the forefront of innovation since 1886. It is a thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. Its consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. Arthur D. Little is present in the most important business centres around the world.

For further information please visit: adlittle.com

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care Duty of

After another tragic helicopter crash recently hit the headlines, proactive risk management and aviation safety in oil and gas have never been more important. Mark Rogers advises on standards and strategy

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ccording to the International Air Transport Association (IATA), in 2010 the global accident rate (measured in hull losses per million flights of Western-built jet aircraft) was 0.61. That is equal to one accident for every 1.6 million flights and is the lowest aircraft accident rate in history. Having said that, these statics change dramatically for the worse, when comparing oil and gas helicopter operations, particularly pipeline inspections, where the International Oil and Gas Producers (IOGP) quote a fatality factor of 52.0 per million flights. The causes of

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such incidents are varied. For example, an internal UK Civil Aviation Authority review of all UK offshore public transport helicopter accidents during the period 1976 to 2012, showed that 28 per cent could be attributed to ‘rotor and transmission failures ’and 28 per cent to ‘lightning strikes’ causes with the remaining 44 per cent attributed to ‘pilot performance / operational’ causes. But what role can proactive risk and safety due diligence play in minimising such risks?

Aviation safety and risk management is largely about meeting the standards of any particular organisation and (or) regulatory authority, within that specific jurisdiction.

Helicopters

It’s also about adhering to and maintaining these standards.

This is often done by applying due process, resources, quality and safety management systems, to help us monitor and control operational activities. One challenge that stands out across the aviation industry is the harmonisation of safety and quality standards. What is recognised as ‘best or good aviation practice’ on some continents might not correlate with the standards of an emerging or newly emerged geographic region. Indeed, by way of example, we once reviewed an operator's maintenance hangar that had passed an internal quality audit one month previously despite having shelf life expired lubricants that were 12 months out of date. The quality management system had apparently been approved by the National Aviation Authority. The same hangar had a small fire some months previously. Postincident, a risk assessment was conducted and all control measures were meant to be in place, however our review found a large stock of oil soaked rags and ignition sources at the head of the hangar, loose and disconnected bare wiring was also noted.

There are a number of industry organisations that help to ensure these standards are indeed harmonised. International Civil Aviation Organization (ICAO) works with the Convention’s 191 Member States and industry groups to reach consensus on international civil aviation Standards and Recommended Practices (SARPs). The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing around 260 airlines or 83 per cent of total air traffic. The IATA Operational Safety Audit (IOSA) program is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline. All IATA members are IOSA registered and must remain registered to maintain IATA membership. Aviation related safety data is becoming more accessible too; the European Aviation Safety Agency (EASA) is tasked to provide an annual review of aviation safety. The Agency has access to accident and statistical information collected by the International Civil Aviation Organisation (ICAO).

Within each organisation, there will be a corporate responsibility to implement, manage and proactively adhere to a wealth of regulatory, operational and safety management legislation, working towards zero incidents and accidents by assessing and mitigating identified risks, where practicable.

Of course, simply meeting such standards on paper, but not in practice, is where many operators fall down.

Indeed, in our experience it is often where an operator has an approved or recognised process that we find issues with such process adherence. For example, we have come across operators whose operating procedures (approved in accordance with IOSA guidelines) detail monthly pilots reports for flight data monitoring reviews, as well as three monthly flight data monitoring committee meetings, only to discover that due to service provider bills having not been paid, such information did not exist.

So what can be done to avoid these pitfalls?

Firstly, it’s important to work closely with other key stakeholders in the field of air safety, organisations such as the Air Accident Investigation Branch (AAIB), the Civil Aviation Authority and various regulatory bodies across the world. Close relationships with other key stakeholders such as the London Insurance Market can also be beneficial.

These organisations bring an unparalleled insight and understanding of aviation risk. Secondly, it’s important to ensure that your review follows due process. A typical review starts with a background review and analysis, this saves time on-site and minimises any potential burden to the Auditee, as highlighted within CAP1145 (safety review of offshore public transport helicopter operations). A start-up meeting of the key stakeholders is scheduled once on-site, it’s often at this stage through good questioning an early indication of the culture, level of co-operation and any areas of concern can be highlighted. If applicable and where appropriate, a typical review will include general observations of the operation, environment and facilities, with a high level review of the operational and technical procedures, including Safety and Quality management systems and processes. Personnel training, crew scheduling and incident / accident reporting processes will be reviewed for appropriate implementation, control, monitoring and timely feedback. The review is concluded with a post wash up meeting and final report containing an executive summary complete with any notable observations and ‘best practice’ recommendations.

Many oil & gas businesses outsource their air transport needs to aircraft operators and in doing so have a duty of care to their employees to perform the necessary risk and safety due diligence of the operator they select. A proactive operator audit program can help to mitigate the risks outlined above, whilst aviation manufacturers’ and operators’ ongoing adherence to the highest levels of safety and quality management ensures our aviation industry continues to be as safe as possible.

mclarens aviation Mark Rogers is Commercial Manager, Risk and Asset Management at McLarens Aviation.

McLarens Aviation is a leading provider of risk, survey and loss adjusting services to the global aviation industry, specialising in all types of aircraft. Clients include the aviation insurance market, aircraft operators, airports, maintenance and repair organisations (MROs), financiers, lessors, oil and mining companies, law firms and regulators. It has a team of over 75 in-house aviation specialists, operating across 32 offices, in 22 countries across the globe.

For further information please visit: mclarens.com/mclarens-aviation/

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A compelling Austen Adams explains how Liquid Air Energy Storage (LAES) is offering hope to the energy generation market

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s nations the world over move towards renewable energy technologies such as wind and solar power, the requirement for a large-scale, long duration energy storage solution, capable of delivering a consistent supply to help balance the grid, has never been greater.

Like all energy storage systems, Liquid Air Energy Storage (LAES) technology comprises three primary elements; a charging system, an energy store and a

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power recovery unit. The real selling point however, is that each can be scaled independently to optimise the system for different applications - making it an incredibly versatile solution.

The differences continue further with LAES being free from geographical restrictions thanks to its use of liquid air stored at low pressure in tanks to power turbines. Other benefits of the system: it doesn’t require scarce materials and doesn’t give off harmful emissions, resulting in no damage to ecosystems.

LAES

The design has been brought to life by Highview Power Storage, which tested and demonstrated a fully operational LAES pilot plant (350KW/2.5MWh) at SSE’s 80MW biomass plant at Slough Heat and Power in Greater London from 2011 to 2014 – successfully connecting to the UK grid and complying with the necessary regulations and inspections.

Now, backed by £8m in funding from the Department of Energy and Climate Change, the Highview team and its

project partner, Viridor, have completed the construction of a 5MW, pre-commercial demonstration LAES technology plant at Viridor’s landfill gas generation site at Pilsworth Landfill facility in Greater Manchester.

Having been designed to demonstrate LAES technology at scale, the facility will operate for at least one year, providing energy storage as well as converting low-grade waste heat to power from the landfill gas engines.

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With 700 litres of ambient air being reduced to just one litre of liquid air, the storage capacity offered is significant, representing impressive GWh of energy potential

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LAES

How does LAES store and discharge energy?

Matthew Barnett, Head of Business Development, for Highview Power explained: “Our LAES technology stores liquid air in insulated tanks at low pressure before discharging it as electricity when required.

“The process involves taking off peak or excess electricity and using it to turn air into liquid by refrigerating it to -196 degrees and storing it in insulated vessels on a very large scale. When power is required, liquid air is drawn from the tanks and pumped to high pressure. Stored heat from the air liquefier is applied to the liquid air via heat exchangers and an intermediate heat transfer fluid. This produces a high-pressure gas that is then used to drive the turbine and create electricity.

“With 700 litres of ambient air being reduced to just one litre of liquid air, the storage capacity offered is significant, representing impressive GWh of energy potential.”

Where the technology really turns heads is in its ability to use waste heat and cold from its own and other processes to enhance its efficiency.

Matthew continues: “During the discharge stage, very cold air is exhausted and captured by a high-grade cold store that can be used at a later date to enhance the efficiency of the liquefaction process. In a similar way, we can integrate waste cold from industrial processes such as LNG terminals.

“Similarly, the low boiling point of liquefied air means the efficiency of the system can be improved with the introduction of ambient heat. The standard LAES system is designed to capture and store the heat produced during the liquefaction process (stage one), integrating it into the power recovery process (stage three). This makes it a great option for applications that have their own waste heat source, such as thermal power generation or steel mills.”

Manufacturing the technology A key element of LAES technology is the insulated vessels which store the liquid air. Avingtrans PLC’s Stainless Metalcraft business, in Cambridgeshire, has a long track record of working with companies to bring new concepts to life and specialises in manufacturing pressure vessels in a range of sizes and materials so the project was a great fit for the business.

While the 5MW/15MWh pre-commercial demonstration plant is appropriately sized to demonstrate grid scale storage, the supply chain is equipped to provide components that are scalable to hundreds of MWs in power for multiple hours.

The vessels used in the pre-commercial project are nearly 12 and a half metres high and three metres in diameter, with a shell thickness of 13mm. With an empty weight of 16,230kg, working on vessels this size and bigger gives rise to a range of manufacturing challenges, not least in finding production facilities large enough to house the vessels and their protective scaffolding as they are produced.

Making use of the specialist welding skills available at

Metalcraft, the vessels were manufactured from carbon steel EN 10028-1 P 265 GH (1.0425). With an elongation factor of more than 14 per cent, this material is sufficiently ductile for such an application and offers impact energy absorption greater than 27J at -20°C. Using the company’s on-site testing facility, the vessels were exposed to radiograph techniques, to in order to certify the high integral welds as non-destructive. Testing for the completed vessels also included hydrostatic testing to 12.6 bar, including an allowance for the static head as the vessel is around 12 metres tall. The actual test weight of the vessel was 94,000kg.

It is manufactured to PD5500:2012+A2:2013 Cat. 2 PED Cat IV Mod G – a code of practice that provides rules for the design, fabrication and inspection of pressure vessels.

Project goals As well as generating power, the pre-commercial project also aims to demonstrate how LAES can be used to help balance supply and demand on the grid during its time in operation, including Short Term Operating Reserve (STOR), Triad avoidance (supporting the grid during the winter peaks), and testing for the US regulation market.

Everyone involved in the project is excited by the potential LAES offers the energy industry and, considering the scalability of the technology using readily available equipment, liquid air looks set to become a compelling solution for this huge potential market.

Highview Power Storage/Metalcraft/ Avingtrans Austen Adams is divisional managing director of Avingtrans plc’s Energy & Medical division. Metalcraft forms part of Avingtrans PLC’s Energy & Medical division, which offers a one-stop shop for the design, manufacture, installation and maintenance of systems for the oil and gas, nuclear, power, renewables, environmental and medical markets.

Highview Power Storage is a designer and developer of largescale energy storage solutions for utility and distributed power systems. Using liquid air as the storage medium, Highview can design bespoke Liquid Air Energy Storage (LAES) plants, that can deliver around 5MW/15MWh – to significantly more than 50MW/200MWh to service a growing multi billion dollar energy storage market.

For further information please visit: metalcraft.co.uk avingtrans.plc.uk

highview-power.com

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News

In Brief High confidence RenewableUK has stated that the recent announcement by Statkraft, Statoil and Masdar that a £1.3 billion agreement has been reached, to achieve financial close on a major offshore wind farm project, shows that investor confidence in the UK’s offshore wind market remains high.

The 402 megawatt project is already under construction off the north Norfolk coast, creating local jobs and opportunities for supply chain companies throughout the UK.

LNG in Africa BMT Asia Pacific (BMT), a subsidiary of BMT Group Ltd, has been appointed Owners Engineer and lead design consultant by Endeavor Energy, for the development of the LNG storage and regasification facility as part of the Songon Gas-to-Power Project in Côte d’Ivoire. Songon, a greenfield development, will consist of combined cycle gas to power generation with an integrated fuel solution, featuring purpose-built LNG infrastructure and a floating storage and regasification unit (FSRU).

This appointment builds on the successful relationship established with Endeavor last year in developing Africa’s first ever LNG import terminal

Oil hungry bacteria Scientists at Heriot-Watt University have cracked the genetic code of the marine bacteria that helped ‘eat’ the oil spilled from the Deepwater Horizon disaster, information that could aid clean-up efforts for the next major spill.

In a paper published in Nature Microbiology, Dr Tony Gutierrez and his colleagues from the University of Texas and University of North Carolina at Chapel Hill reveal the genetic pathways these bacteria use to consume the oil, what conditions they thrive in, what oil hydrocarbons they can eat, and how they work in concert during an oil spill.

Dr Gutierrez, an Associate Professor of Microbiology at Heriot-Watt University, said: “Understanding which bacteria are important to breaking down oil could help lead to the design of emergency response plans that are more effective and environmentally friendly for combating a major spill. We knew that certain bacteria will respond to and thrive during an oil spill and helped break down oil, but we didn’t know how this was co-ordinated.

“By reconstructing the genomes of these bacteria, we’ve discovered the pathways they use to breakdown the different types of hydrocarbon chemicals in oil, including some of the highly toxic ones, and the way the bacteria work as a community to degrade the oil.

“Different bacteria have different appetites for different hydrocarbons, but they can work beautifully in concert together to clean up polluted water.”

via Endeavor and GE’s Ghana 1000

Cutting edge collaboration

Power Project.

CO2 report A new report produced for the Energy Technologies Institute (ETI) and published in May confirms that there are no technical hurdles to permanently and safely storing large quantities of carbon dioxide off the coast of the UK. There is also the potential that these sites in the North Sea could be developed to provide a CO2 storage hub for CO2 emissions from mainland Europe, enhancing their economic attractiveness. The report was produced by a consortium led by Aberdeen-based consultancy Pale Blue Dot Energy working with Axis Well Technology and Costain.

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Renewable electricity company Good Energy has signed an agreement to supply power for the production of hydrogen fuel. The firm will provide zero carbon electricity to ITM Power’s hydrogen car refuelling stations. The stations produce the hydrogen on site using electricity and tap water.

Juliet Davenport OBE, founder and chief executive of Good Energy said: “At Good Energy we’re proud to be working with ITM Power on this cutting-edge technology which can play a big part in the energy future of the world.

“The opportunities to work with ITM Power to see how we can integrate the transport, heat and electricity markets are really exciting, and we think we are a great fit to supply zero carbon renewable electricity for this inspiring venture.”

The companies are looking to supply renewable electricity to sites where hydrogen is produced through the electrolysis of tap water, meaning the fuel will be made with zero associated carbon emissions.

Good Energy, which owns two wind farms and seven solar farms, will supply more power when the generation of renewable electricity is greater than demand.

Dr Graham Cooley, ITM Power’s chief executive added: “Utilising surplus renewable energy lies at the heart of the proposition for hydrogen as a clean fuel. We look forward to exploring options for direct renewable energy contracts through collaboration with Good Energy.”

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MARKOS

MARKOS - Your Vision, Your Composites Manufacturer MARKOS is a fibre reinforced composites manufacturer located in the north of Poland with 25 years of experience and over 500 employees. Through implementation of Lean Manufacturing MARKOS’ team has constantly been improving and optimising both the company and its performance.

From the very beginning, since wind generators entered the market, MARKOS has been co-operating with global leaders manufacturing nacelles and hub covers for generators. Parts for wind generators are produced with open mould technology, RTM technology, vacuum bag or resin infusion.

Lifeboats and rescue boats have been produced by MARKOS almost since the company's early beginning. In 1992 MARKOS started co-operation with the German company Fr. Fassmer, which resulted in wide and constant extension of the range of manufactured products.

MARKOS has also been co-operating with producers of luxury sailing yachts and powerboats for many years. MARKOS manufactures flydecks, frames, ceilings, sanitary segments, platforms and other elements.

RIBs production is growing very fast - hulls, with characteristic rubber tube around and mighty engines at transom can be seen frequently during the holiday season. Those boats are multi-purpose and they are successfully used by the police, coast guard, army and private owners.

Leisure boats cruising European canals, rivers and lakes are often designed and manufactured by MARKOS. They are used for personal, family and sometimes sportsmanlike recreation.

MARKOS’ R&D Department and Design Office offer wide services, ranging from concept development and converting the discovered concept to 3D CAD models, CNC machining and the production.

For more information, please visit www.markos.pl MARKOS Sp. z o.o. Globino 79, 76-200 Slupsk, Poland, tel. (+48) 59 8485311, fax (+48) 59 8485326, markos@markos.pl, www.markos.pl

catalyst A useful

David McNaught discusses innovation in the electricity distribution industry

P

romoting and fostering innovation is a complex problem in any industry; the forward impetus of innovators, driven by a desire for competitive advantage, can be stymied by corporate inertia, entrenched interests, myopia or any other of a whole host of factors.

These barriers are a significant concern even in situations where organisations are fully able to exploit the benefits of their own innovation; they become stifling in the context of tightly regulated industries. Where an organisation has its role shaped primarily by licence and legislation, and its income calculated by a fixed return mechanism, innovative approaches are very unlikely to result.

The Challenge The UK’s electricity distribution networks, and the Distribution Network Operators (DNOs) licenced to run

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them, existed in just such an innovation limbo following privatisation in the 1990s. By the time the industry regulator, Ofgem, started consultation for the fifth Distribution Price Control Review (DPCR5) period, which was due to commence on the 1 April 2010, there was wide recognition within the industry that DNOs were not incentivised to take innovative approaches to service delivery. The DNOs argued that they were doubly bound: their licensing terms made them responsible for the full costs of any failed innovation projects, and the financial gains from successful innovation were likely to be subject to claw back at the next price control review period.

In short, the previous network price control regimes, despite the laudable aim of providing lowest price to electricity customers, had incentivised DNOs to reduce their cost bases, simply by driving down the cost of operations and maintenance and extending the life of their existing assets.

Transmission & Distribution

Incentivisation In response to this situation, Ofgem used the DPCR5 to establish the Low Carbon Networks Fund (LCNF); a £500 million competitive project fund whose intended purpose was to replicate the incentives supporting and promoting innovation present for companies in other industries. In addition, the fund was designed to help the DNOs ‘to prepare for their role in the low carbon economy’.

My organisation, Frazer-Nash Consultancy, was involved as technical consultants scrutinising and recommending potential projects on their effectiveness at facilitating carbon reduction, assuring security of supply and providing value for money for distribution customers.

The DPRC5 period came to an end on the 31 March 2015 and the LCNF closed to new projects. The fund’s conclusion, and the completion of the first tranche of projects commissioned under it, presents a natural opportunity for retrospection and to present an initial ‘hot take’ on the fund’s successes and imperfections.

Results In plain, numerical terms the LCNF has allocated over £240 million of funding on 23 major and 42 minor projects with each of the UK’s six DNOs having at least one major project funded. The fund has realised Ofgem’s objective to allow the DNOs to ‘try out new technology, operating and commercial arrangements’. All aspects of the ‘trilemma’ of challenges – reducing carbon emissions, increasing security of supply, and ensuring affordable costs to energy consumers – have been investigated. The projects have sought a variety of solutions for the unprecedented challenges to the UK’s energy infrastructure: new technology, novel management techniques and sympathetic policy approaches have all been investigated as providers of the necessary changes to the sector.

Beyond the delivery of individual projects, the biggest successes of the LCNF have probably been its sector-wide effects. By giving industry participants a ‘walled garden’ for new approaches, in which innovative ideas could be trialled on their own merits, the fund has fostered a sectorwide culture change. The best evidence for that success has been the introduction of the RIIO (Revenue = Incentives + Innovation + Outputs) funding mechanism as the follow up to DPCR5. Many of the assumptions that RIIO makes about the sector’s abilities to innovate and drive down costs would have been inconceivable without the LCNF. The LCNF itself has now been replaced for funding new projects by the Network Innovation Competition and the Network Innovation Allowance, both of which build on the LCNF’s structure, approach and achievements.

Some critics would suggest that, in purely project terms, the LCNF has failed to deliver a ‘killer app’: no single project

has broken through to make a significant impact outside of the industry. Despite some impressive aspirations, the projects have, on the whole, not been as effective as had been envisaged in engaging domestic consumers. Public engagement is vital for many of the issues facing the electricity network: distributed generation, electric vehicles, the electrification of heat and the provision of smart meters are all key issues for the coming decade, and many of the projects engaging on these topics have reported difficulties getting wider traction.

Conclusions These shortcomings notwithstanding, the sector-wide impacts that the LCNF has been able to achieve make it an interesting template for how innovation might be promoted in other heavily regulated markets. Firstly, a proactive regulator willing to recognise a shortfall in the industry structure and propose amendments to incentivise the innovative behaviour that is required. Secondly, a willingness to assign funding, not just to promote individual projects for immediate results, but to deliver structural change.

Thirdly the readiness of regulated organisations to engage and collaborate with new parties, seeking to draw in new expertise and fresh views of their industry.

The Low Carbon Network Fund was made available to the DNOs in recognition of the fact that the regulatory environment had, perversely, failed to incentivise network operators’ trialling of innovative methods, approaches and technology. On those terms, the LCNF has been a successful catalyst for changing the perspectives of the distribution industry. It has encouraged key players within the industry to value and seek novelty; to engage with new tools, techniques and partners and to initiate the development of an operational culture which is positive about participating in the transition to a lower carbon future.

frazer-nash consultancy David McNaught is a chartered mechanical engineer at Frazer-Nash Consultancy Ltd, a leading systems and engineering technology company. With around 700 employees, Frazer-Nash operates from a network of ten UK and Australian offices. The organisation excels in solving complex engineering challenges for clients in the aerospace, transport, nuclear, marine, defence, and power and energy sectors.

For further information please visit: fnc.co.uk

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3 HEMPEL HEMPEL ENSURES PROTECTION AND AESTHETICS IN THE NORTH ADRIATIC SEA Hempel is a global supplier of protective coatings, and in the offshore sector Hempel is a recognised world leader. A magnificent example of how Hempel can comply with all protection and decorative coating requirements for all underwater structures is that Hempel has been selected among other competitors to supply approximately 40,000 litres of coatings for Oil & Gas giant ENI’s new Bonaccia NW and Clara NW offshore gas platforms.

At present, the final touches are currently being made to the two platforms, which are due to be loaded for transport and installation in the Adriatic Sea, 45 kilometres off the Italian coast, in late summer 2015. Built in Italy by the Navalmare yard in Lerici, each rig has a gross weight of around 900 tonnes, and stands on four legs measuring up to 90 metres. ENI requested tenders for a paint system of its own specification (System N.004), which Hempel successfully fulfilled with a 3-layer scheme based on a primer of HEMPADUR PRO ZINC 17380, an intermediate layer of HEMPADUR MASTIC 45880, and a topcoat of HEMPATHANE HS 55610, applied by local firms Andaloro Srl and Nuova Oma Spa. HEMPADUR PRO ZINC 17380 is a grey, two-component epoxy zinc rich primer that is especially versatile as a high-solids, long-term primer on steel structures exposed to medium and severely corrosive environments, and conforms to NORSOK M-501, SSPC-Paint 20, type 2 and ISO 12944-5 standards. HEMPADUR MASTIC 45880 is also high-solids epoxy, although it is cured with polyamide adduct to form an extremely tough and resilient coating, which can thus be used in heavy-duty paint systems and immersed structures. Two-component HEMPATHANE HS 55610 polyurethane topcoat contains a high volume of solids and zinc phosphate, making it an ideal choice for structures in highly corrosive environments. Delivered white as standard, this paint can be perfectly tinted to any shade to provide a long-lasting colourful and glossy finish on all outdoor steel structures.

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PROFILE

Parkwind NV

© Menno Mulder

Sustainable

growth

Belwind - ® Vanoord Menno Mulder photography

Founded from the joint venture between Colruyt Group, Korys and PMV, Parkwind already had its roots in the Greenline environmental commitment programme founded by the Belgian retail giant Colruyt Group two decades ago. Each partner demonstrates a clear and constant responsibility to social entrepreneurship and sustainable action, making Parkwind a perfect platform to grow a renewable energy business.

In 1999, Colruyt built its first onshore wind turbine in the city of Halle through the Greenline programme and formed a joint venture with Aspiravi in 2006 to develop the Eldepasco wind farm project (renamed Northwind) after winning the concession for the Lodewiikbank. Three years later Colruyt joined forces with its investment partners Korys and PMV to take over the financially distressed project Belwind and started construction in the same year. Belwind became operational in 2010.

In 2013 the newly formed Parkwind started construction of the Northwind project – one of the largest investments in recent years – which became operational in 2014.

With two operational offshore wind farms in the North Sea, Parkwind’s activities already contribute heavily towards meeting European climate and energy targets: SS Northwind offshore windfarm, comprises of 72 wind turbines with a total capacity of 216MW, and provides electricity to 250,000 Belgian homes, saving 255,000 tonnes of CO2.

SS Phase I of Belwind, composes of 55 turbines with a total capacity of 165M, provides electricity to 160,000 Belgian homes and

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DESIGN BUILD CONNECT Jan De Nul Group is a leading expert in dredging and marine construction activities, and provides services related to the installation of offshore wind farms and related subsea export cables and umbilicals.

The combination of design and detailed engineering and all aspects of civil works, dredging and rock and marine installation enable Jan De Nul Group to offer a total package on an EPC basis.

www.jandenul.com

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10/05/2016 10:36:39

PROFILE

Parkwind NV

Belwind - ® Vanoord Menno Mulder photography

Parkwind is fully dedicated about finding innovative solutions to today’s energy problems.

Parkwind is confident that a low carbon future is possible and affordable

displaces 270,000 tonnes of CO2. For an investment worth €614 million, Belwind’s capacity alone contributes 4.7 per cent of the Belgian government’s target.

SS Keen to continue delivering more capacity, Parkwind has further extended the Belwind concession and is currently constructing its third wind farm: Nobelwind. The expected capacity is 165MW, with an estimated production of 679GWh a year. This is enough to provide 186,000 Belgian homes with electricity. Completion is set for December 2017.

Parkwind’s expertise in offshore windfarm development and construction is used to reduce environmental impact to the utmost

and to preserve the fauna and the flora. Both concessions are far out in the sea and are closed to shipping and fishing operations making them hotspots for marine animal and plant species to thrive around the foundations.

Parkwind is fully dedicated to finding innovative solutions to today’s energy problems.

Parkwind is confident that a low carbon future is possible and affordable. Parkwind focuses on sustainability to create long-term value to all its stakeholders.

Such is the extent of green energy generated

by Parkwind’s sites that Colruyt, a company with 400 of its own stores, 500 affiliated stores and 27,000 employees across France, Belgium and Luxembourg, produces more renewable energy than it uses.

Above Naamloos

Parkwind NV parkwind.eu

Services

© Menno Mulder

Leading offshore wind company in the Belgian North Sea

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PROFILE

Trans-Anatolian Natural Gas Pipeline (TANAP) Project

European

gateway With around 1.2 trillion cubic metres of natural gas in reserve, the Shah Deniz Field in Azerbaijan’s Caspian Sea is one of the largest natural gas reserves in the world. Creating a supply route to serve the ever-growing demands for gas on the European continent from the field is considered to be of great strategic importance for both European and global energy geopolitics.

Therefore, in 2012 an Intergovernmental Agreement cementing the bonds between the Republic of Turkey and the Republic of Azerbaijan was signed to secure the build of the Trans-Anatolian Natural Gas Pipeline (TANAP).

Due to stretch 1850km across the length of Turkey from the district of Ardahan Posof on its border with Georgia to Edirne’s Ipsala crossing to Greece, TANAP will be the most critical link of the Southern Gas Corridor when it is completed.

Construction began in 2015 and it is forecast that 1.28 million tonnes and 160,000 pieces of X70-type steel will be required to complete all pipe and junction materials along what will be Turkey’s longest and the world’s largest diameter gas pipeline at 56 inches from Ardahan to Eskisehir. In addition to the pipeline itself, numerous infrastructure services also have to be built along the route over the coming years.

These include two compressor stations, four measuring stations, 12 pigging stations, 49 block valve stations and two off-take stations to supply gas to Turkey’s national natural gas network at Eskisehir and Thrace.

“The initial cost of the project amounted to $11.7 billion,” outlines Saltuk Duzyol, TANAP’s CEO. “However, the decline in world oil prices has made it possible to save $2.5 billion on its implementation and it currently costs $9.2 billion.”

Passing through 20 provinces, 67 districts and 600 villages across Turkey, TANAP is undoubtedly a hugely demanding and significant construction project. However, the importance of the project in the country goes further than just a mammoth engineering task. As a result of economic growth and subsequent increases in energy demands, it is vital for Turkey to boost its natural gas supply by gaining access to new resources.

Thanks to a strong partnership with Azerbaijan, Turkey holds shares in both TANAP and Shah Deniz Gas Field, making it more than just a transit country for the natural gas. Significantly, this means that the Turkish authorities have a say in every link of the value chain between the producer and the final consumer helping it to become a key energy hub in the region. Indeed, the TANAP project is one of the most concrete projects being realised for the purpose of ensuring Turkey’s energy supply security and its ability to meet ever-increasing demands well into the future. “TANAP will be a crucial addition to both Turkey’s and Europe’s energy security,” says Saltuk. “Moreover, the project’s international nature will contribute to stability and co-operation in the region.”

In terms of employment alone, it is estimated that the project has provided, and will continue to provide, jobs for over 15,000 people who are either directly or indirectly involved in construction, support services, pipe manufacturing plus a range of other associated sectors. Crucially, the development of TANAP and the Southern Gas Corridor opens up future opportunities for natural gas fields further upstream to be commercialised through Turkey.

However, the challenges of rising population ENERGY,oil&gas

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www.ilf.com

ENGINEERING EXCELLENCE

Strategic decisions require a profound basis For decades, ILF is providing high-level consultancy and engineering services to major oil and gas companies, financing organisations in the private and public sector, as well as governmental institutions.

50 years of experience and innovation have shaped ILF into a trusted partner to support your investment decision, all over the world.

ILF Consulting Engineers Werner-Eckert-Strasse 7 81829 Munich, Germany Tel. +49 (89) 25 55 94 - 0 Fax +49 (89) 25 55 94 - 144 E-Mail postmaster@ilf.com 1110_einschaltung_oil_gas_spezial_TANAP.indd 1

09.05.2016 14:52:36

PROFILE

Trans-Anatolian Natural Gas Pipeline (TANAP) Project

and energy demands are not isolated to Turkey and are a trend noticeable across the rest of the European continent. The link provided by TANAP will at first be a crucial passage allowing resources in Azerbaijan to enter a high consumer market in the West. Furthermore, as time goes on other potential suppliers in Central Asia, the Middle East and Eastern Mediterranean will be able to gain access to the market through this new gateway. Saltuk highlights, for instance, the possibility for Northern Iraqi and Turkmen gas to also enter the supply line and is on the agenda with negotiations underway.

Initial gas flow to Turkey will begin in 2018 with six billion cubic metres entering the country’s network, by the start of 2020 an additional ten billion cubic metres will be transferred on to the European network via the TAP (Trans-Adriatic Pipeline), which will take the gas through Greece and into Italy. Total capacity will gradually increase over the following years hitting 24 billion cubic metres by 2023 and

31 billion cubic metres three years later.

One key consideration that has underpinned the TANAP project from the start is its environmental impact – especially during its construction phase. In July 2014 the programme’s Environmental and Social Impact Assessment (ESIA) was endorsed in compliance with national

TEKFEN CONSTRUCTION AND INSTALLATION CO., INC., Tekfen Construction and Installation Co., Inc., Tekfen Construction and Installation Co., Inc., today a leading organisation in the challenging fields of contracting activities but also a studious environmentalist, traces its roots to an engineering consulting company established in 1956. An uncompromising dedication to global quality standards in its business conduct has underscored the company's consistent growth and stability for six decades.

Presently, Tekfen Construction, as an affiliate of Tekfen Holding Co., Inc., is a respectable signature as an international contractor with major accomplishments in Turkey, the Middle East, North Africa, Caucasia & Central Asia. Its wide span of activities range from heavy civil works to refineries and petrochemical plants; from high rise buildings to major industrial processing plants; from pipelines and marine structures to power plants, electrical and communication works.

With its sister companies and strategic partnerships, Tekfen is capable of extending its services to large span of clients, worldwide.

As an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified Company, Tekfen is dedicated to higher quality standards, aiming for excellence through ‘continual improvement’ and strict belief in ‘teamwork’ and that uncompromising commitment to people is evidenced by its outstanding accident-free record on projects throughout the world.

Within Tekfen’s ongoing projects, TANAP’s Lot 3, the Sivas Eskisehir section of the approximately 1.900 m long TANAP line, stretching through the provinces of Sivas, Yozgat, Kırsehir, Kırıkkale, Ankara and Eskisehir, is one of the most important ones. Ten percent complete in 2015, this 509-km section will be laid with 56 inch pipes and include 14 valve stations and two pigging stations. Contracted in 2014, and with 10 per cent completed in 2015, 71 per cent of the project is to be finished by the end of 2016, with full completion due at the end of 2017.

Added to the Lot 3 of TANAP’s main line, construction of three compressors and four metering stations are also within Tekfen’s scope with another contract.

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PROFILE

Trans-Anatolian Natural Gas Pipeline (TANAP) Project

legislation as well as international standards.

Ecological studies, to determine impact and the necessary measures to avoid damage, air quality, noise and vibration assessments, to prevent and mitigate the effects of possible gas and dust emissions, water quality and soil quality studies were all undertaken in advance to develop appropriate management plans to create as little environmental impact as possible throughout the project. As too were studies on the landscape, to ensure that soil and vegetation along the pipe’s route could be restored both during and after construction, and archaeological and cultural studies. One hundred and six archaeological sites have been discovered during TANAP’s route selection studies and the cultural assessments were a key part of determining the least disruptive and damaging route.

In terms of its social consideration 146 meetings in 20 provinces were held to inform stakeholders and local communities of the project’s plans and activities and nearly 3000 surveys were made in settlements along the route to ensure that impact on local

communities was as small as possible.

The vast scale of work undertaken by the TANAP project is unprecedented for this type of construction challenge in Turkey and the successful completion of it will be vital to the country becoming a major player in Europe’s gas industry. The impact for markets on both sides of Turkey will surely be felt for years to come, and with population rising across the continent, opening up more resources through new corridors will be key to sustaining a consistent energy supply.

TANAP’s stated vision is to open up new supply opportunities in order to enhance supply security and diversity across Turkish and European markets, whilst at the same time strengthening the economic co-operation between countries in the supply chain by stimulating investment and fostering gas-to-gas competition. Thanks to a careful and responsible approach to its development, and with construction well on its way, the programme looks set to achieve this when the pipeline becomes operational in 2018.

Trans-Anatolian Natural Gas Pipeline (TANAP) Project tanap.com

Services Project to build Turkey’s longest and largest diameter pipeline

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PROFILE

Archer UK

A renewed

approach First Integrated Solutions Ltd We are proud to have been supporting Archer since 2013. First Integrated Solutions Ltd was established in 1997 and is one of Scotland’s leading manufacturing and service companies.

The company’s core operations include the manufacture of wire rope slings, the supply and service of market leading lifting equipment, plant and tooling, as well as the provision of offshore and onshore inspection and load testing services. Our vision is to deliver a best in class experience to our clients around the world.

Operating as

global oil services company with a heritage in drilling and well services that dates back over more than 40 years, Archer currently employs more than 5000 people across 40 locations in 19 countries. The company provides services that range from well integrity and intervention, plug and abandonment to decommissioning operations, which is carried out in accordance to the highest levels of safety for the drilling and well service markets. The company was originally founded in 1972 as Smedvig Drilling AS, which provided mobile offshore drilling unit (MODU) and platform drilling and maintenance services to the Norwegian and UK sectors of the North Sea. During 2006 Smedvig Drilling AS was acquired by the Norwegian drilling contractor company Seadrill.

In 2007 the platform drilling, drilling facility engineering, wireline and oiltools divisions of Seadrill were spun off to create a new company called Seawell and Seadrill retained control of all of the existing semis, jack up and tender units. In February 2011, following a series of global land and offshore drilling, technology and service acquisitions, Seawell was subsequently rebranded as Archer Limited. Today Archer

operates with eight key product lines and services globally, consisting of platform drilling, offshore modular rigs, engineering, land drilling, wireline, oiltools, rental services and frac valves.

Within the UK, Archer currently maintains an operational headquarters in Blackburn, Aberdeenshire, located north of Aberdeen. “We currently employ over 700 on and offshore personnel at Archer UK Limited and the company is currently the largest provider of platform drilling operations and maintenance services on the UK Continental Shelf (UKCS),” said Vice President for Platform Drilling for Archer UK, Kenny Dey. “This includes drilling, maintenance and plug and abandon operations relating to 24 platforms as well as a MODU tender barge, with the provided products and services including drilling facility engineering, survey and inspection; drilling equipment rentals; oiltools; and wireline services.”

Archer UK clients include globally recognised industry players such as Apache, Chevron, Fairfield Betula, Marathon Oil, Shell UK Limited, Talisman Sinopec Energy UK Limited as well as Energean Oil & Gas – a Greek operation supported from the UK. Elsewhere in the ENERGY,oil&gas

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PROFILE

Archer UK

We currently employ over 700 on and offshore personnel at Archer UK Limited and the company is currently the largest provider of platform drilling operations and maintenance services on the UK Continental Shelf (UKCS)

MRDS Ltd MRDS Ltd operate from a world-class repair facility and base in Aberdeen.

Our team prides itself on having worked alongside Archer for a number of years to provide a comprehensive range of 24 hour services and flexible solutions to meet quick turnaround times.

This has enabled us to develop a strong relationship with Archer both here in the UK and worldwide giving them cost effective operating options and solutions for their rigs.

North Sea, Archer also provides extensive operation support services to market-leading operators within the Norwegian sector such as BP, ConocoPhillips, Repsol and Statoil. During March 2016, Archer announced a two-year extension to its contract to provide drilling platform services for Statoil. This includes the provision of onshore management teams and offshore drilling and maintenance personnel for Statoil’s Statfjord A, B, and C platforms. In addition Archer was awarded new assets as part of the re-bid exercise, these are the Njord, Sleipner A, Snorre A, Snorre B, and Visund.

These additional assets will be under Archer contract from October 1 2016.

“Archer will provide drilling and maintenance personnel and onshore management of the drilling facilities located on these contracted assets. For the operational assets, Archer provides the core operational drilling personnel to carry out all out client’s well programme

activities as safely and as efficiently as possible, while the support of our maintenance teams ensure that the drilling facilities deliver strong operational performance,” Mr Dey said. “Where the asset is non-operational, Archer offshore maintenance personnel supplemented by key designated operations support, preserve and maintain the drilling facility, to ensure that the assets are available as and when required to support remedial well intervention work and that a return to or from operational mode is conducted effectively.

“Our onshore support teams help to ensure that all assets under Archer’s control deliver safe and efficient operations and that these assets are maintained to a high standard. This includes the management of relevant certification and legislative requirements.”

While the low cost of oil has resulted in a significant slowdown of activity within the oil and gas market globally, Archer remains ENERGY,oil&gas

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Archer UK

confident that its proven excellence in delivering cost-saving efficiencies and reliable maintenance solutions will enable the company to continue to win new contracts during the coming years.

“Right now we are in one of the worst, if not, the worst downturns the industry has experienced.

However, there are opportunities out there, as many operators are looking to the market to establish what technical and commercial advantages there are. As a company, we are working hard on both a local and global level to seek these out and deliver strong technical and commercial solutions to these prospective clients.

We believe the unique combination of the people and technology that Archer offers, combined with the performance of our personnel, will give us opportunities to grow our business despite challenging conditions,” Mr Dey said.

“Archer endeavours to have a partnership approach with our key suppliers as we strongly believe this benefits both parties. Suppliers also need to have vision and a willingness to adapt quickly to support market conditions and their clients’ operational demands,” he said.

“A good supplier is one that offers strong service, high quality and solid reliability. Good communication is also key because we believe that working in close partnership with suppliers to improve systems and processes brings

visibility and a better understanding of one another’s needs. This adds value to supporting operational demands and client base, whilst helping to drive efficiencies and support a sustainable industry.”

Throughout all of its operations, Archer ensures that it works closely with its clients to ensure that it acts as a solution provider to technically demanding challenges. In recent years the company has invested significant time, resources and funds in focusing on its core values of safety, integrity and performance, with investments ranging from personnel training

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to competency development programmes to and new systems and technologies that make operations safer and ultimately save time and money for its customers. These values will continue to be of vital importance over the coming months and years as the offshore industry works to emerge from its current downturn and generate new growth in the future.

“During the next 12 months, Archer is focusing on safety and high quality service delivery to our clients and on ensuring a continuous improvement process to ensure a sustainable future performance,” Mr Dey said.

“Over the next three to five years, Archer will continue to build on our existing service and technology portfolio with one key focus area being plug and abandonment (P&A) service offerings. P&A activity is anticipated to increase significantly in the North Sea region over this period and Archer will seek to build on some of our technology and service offering differentiators.

In general, any opportunities for growth, whether organic, through acquisition and or collaboration will be addressed on a case by case basis.”

Archer UK Ltd archerwell.com

Services Offshore platform drilling and engineering

PROFILE

Shazand (Arak) Petrochemical Company

A grand

production Established as a

Below Sasan Talebnejad, Pd. D., Head of Market Research at Shazand Petrochemical Company

grass root complex for the production of a range of petrochemical products such as plastics, synthetic rubber and other chemicals from naphtha as feedstock, Shazand Petrochemical Company (ARPC) has grown since the initial approval of the project in 1984 and the production phase becoming operational in 1993. “The company was founded in 1984 for the production of versatile petrochemical products near Arak city in the centre of Iran. Its area is approximately 523 hectares and it has private sector ownership,” begins Sasan Talebnejad, Pd. D., Head of Market Research at Shazand Petrochemical Company (ARPC). “Revamp and expansion projects were accomplished in 2003, which boosted the total annual capacity by 15 per cent. Presently, the total sellable annual production capacity of the complex is around 870 KT/Y, which serves the domestic market as well as the global market.”

Today operating 18 production plants integrated in one larger industrial complex, the company is one of the leading producers of plastics, chemicals and second most consuming synthetic rubber (PBR) from naphtha feedstock in Iran and boasts a considerable annual production capacity. Approximately half of the products are sold to the domestic market through the Iran Mercantile Exchange (IME), while the rest is exported to key markets such

as China, Turkey and India. “Other regions such as Middle Asia, SEA and our Iranian neighbours are also considered significant markets for us as well,” notes Talebnejad. “Our end user clients utilise our products in diversified applications such as plastic pipes, paints, adhesives, packaging films, fibres, serum vials, polyester production, solvents, detergents and anti-foams, to name a few.”

By adapting modern technologies such as TPL, Axsens, Lyondell Basell, Ineos, Zeon, Oxiteno and Balestra and focusing on reliable quality control monitoring, Shazand Company ensures its production processes are wholly tailored to meet the internationally acceptable

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requirements for polymeric and chemical products. “Polyolefins such as PP, HDPE and LLPDE, as well as chemicals such as generic amines, oxo-alcohols, glycols and fuels comprising different kinds of gasolines are all

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produced by our company,” says Talebnejad.

To further strengthen its operations, the company established and put into operation a compounder section at its polypropylene unit in May 2015. Viewed as a great success to the company, this investment was established to improve the productivity of the PP unit by enabling the production of the corresponding valuable compounds and increasing extruder productivity by up to four tones per hour. With its machinery being supplied by Germany and Italy, the new compounder has the highest compounding capacity among all compounders in operation in Iran.

“Producing high quality PP compounds necessitates both high tech machinery and a stable supply of high quality polypropylene material. We thought that since we could produce our own raw PP material, installation of an industrial modern compounder would thus enable us to meet the automotive and appliance industry enquiries in both the domestic and export market,” explains Talebnejad. “In the near future Shazand Company will use its proprietary know-how to manufacture high performance, specialty PP compounds in accordance with formulas developed by its research and technology department. This formula will be widely used in the production of exterior and interior automotive components, including bumpers, instrument panels, door trim panels and other applications.”

Since this major investment, the company has been selected once again as one of the top companies of the country. Discussing the selection and the reasons behind this adulation, Talebnejad states: “Ranking top companies in Iran is accomplished in order to clarify business atmosphere and develop competitiveness among Iranian companies.

Among the selected top companies in terms of ranking parameters, Shazand Petrochemical Company has been one of the first three top exporters for several consecutive years. The main strengths of our organisation lie in the versatility of our production capabilities, our unique central location, and our medium range capacities that make grade change faster and more flexible. Furthermore, our network of customer-orientated sales and marketing systems in different locations has made us one of the most influential petrochemical companies in the Middle East.”

Although the company appears to be going from strength-to-strength, it faces the challenge

PROFILE

Shazand (Arak) Petrochemical Company CHIMEC

of feed price, as Talebnejad comments: “Margin of products out of naphtha is considerably lower than gas cracker margins. For promoting competitiveness, some modification on liquid feed prices should be done. That is the case; our wise managers are pursuing this process in both the oil ministry and parliament. Some revamping like using cheap condensate feed is also under study in ARPC to strengthen our margin in the future.”

Despite these challenges, the company is currently seeking to expand its presence across the globe following the lifting of economic sanctions on Iran in January 2016. “After the Iran and world powers nuclear deal and the lifting of imposed sanctions, Shazand Petrochemical Company and the entire Iranian petrochemical industry will be doing their best to regenerate lost European market share,” says Talebnejad.

Moving forward, the highly successful firm will not only focus on expansion but will also remain true to its four key objectives: to maintain and enhance value of the stock in the long-term, to meet the satisfaction of

key stakeholders or beneficiaries, to increase the proportion of new target markets, and to manufacture new or developed products as a way to hold its leading position in a competitive market. “Although many delayed and new petrochemical projects will be implemented in the country, especially after lifting up sanctions based on feed availability, none of these developments can affect Shazand Petrochemical Company effectively because of the great strengths and reputation for excellence that we have,” concludes Talebnejad.

CHIMEC are an Italian company that have been active worldwide for over 45 years. We have distinguished ourselves in developing and providing innovative chemical treatments, technologies and consulting services to the upstream, refining and petrochemical industries.

CHIMEC’s philosophy is to apply tailored solutions aimed at optimising processes, maximising profits and reducing environmental impact.

The experience gained in an intense field activity in more than 50 countries, supported by our proprietary monitoring systems, allows us to solve even the most peculiar issues. Thanks to our qualified technical assistance, we are often known as the company providing the highest level of service.

Shazand (Arak) Petrochemical Company arpc.ir

Services Produces versatile petrochemical products

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Surging Established in 1981

ahead

as the first Asian-based valve automation centre for Bettis actuators, Matco Asia provides a comprehensive service of mounting, calibration and testing of valves and actuators. With over three decades of experience within the oil and gas industry, the company has grown to represent a market-leader in the actuator and valve automation sector that incorporates a network of professional supply, distribution and representative firms across the South East Asia region. Matco Asia also plays an active role in the promotion and distribution of valve and actuation equipment through the engineering and supply of technologies to a diverse spectrum of industries including the petrochemical, chemical, pulp and paper, water treatment and process sectors.

The company was last profiled in Energy, Oil & Gas magazine during November 2013, at which time the company reported continued growth and the award of several new contracts, including a three-year service contract with Petronas Carigali Vietnam (PVCL). Although the company has remained strong during the subsequent years and continued to be awarded the contract of supplying all the actuated valves packages for Chevron Thailand Exploration & Production ( CTEP ) the depressed price of oil and its impact on global oil and gas operations has

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had a knock-on effect on the business. As such Matco Asia has implemented a strategy of further diversification while developing additional value adding solutions within its existing business.

“The impact of the low oil price has had a significant effect on everyone operating within the oil and gas industry and Matco Asia is no different, however we as a business are not resting on our laurels and are actively looking to diversify into other industries. These include the pharmaceutical and power plant industries, as well as other sectors relating to energy infrastructure,” reveals CEO, William Fong.

“Just as significant for the company is further value creation, through the development of new systems and competencies with the objective of creating a brand new product or service to differentiate Matco Asia from the competition.

For example we have recently enhanced our service offering by introducing high pressure testing facilities, which is something that has been greatly appreciated by our clients.”

The Matco Asia high-pressure gas testing facility is a state-of-the-art resource that is fully capable of pressure testing valves with capacities including hydro testing up to 20,000 psi; gas testing up to 6000 psi with portable blast proof wall; and flange testing with ASME of up 30 inches and all API sizes. The test centre includes four CCTV cameras and recording equipment, which allows both customers and inspectors to witness pressure testing from a safe distance and to record testing for future reference. This also enables Matco to provide clients with visual

PROFILE

documentation of their products being tested, which enables them to order from Matco Asia with the complete peace of mind of knowing that the product is tested and up to the job at hand.

The integrated valve automation packages provided by Matco Asia are specifically designed and assembled efficiently and reliably to suit the customer’s control loop requirements.

These packages are fitted to existing valves and extensively tested, calibrated and warranted by the company’s valve automation experts.

To ensure that the company is able to provide an excellent level of customer service, Matco Asia also manages its own strategically located valve automation centres (VAC) that allow it to provide services when and where they are needed. These VAC facilities provide access to the company’s complete product line and offer a broad variety of services, as well as a broad variety of automation solutions for virtually any valve. In addition, Matco Asia works in collaboration with a global network of authorised manufacturers and distributors that augment its own facilities.

This global support means that Matco Asia is always on hand to deliver a series of value adding services that support valve and automation implementation.

For example, clients are able to schedule actuator maintenance during plant shutdown periods or other convenient times. The company’s technicians work according to the customer’s scheduled downtime to provide a comprehensive preventative maintenance programme. Matco Asia is also able to provide an extensive retrofit package, which allows the customer to modernise their plant facilities for increased efficiency, better control, easier operation or improved security of all types of valves and dampers.

The company ensures that its technicians visit the client’s site to discuss the necessary requirements and take measurements where appropriate before installing and commissioning actuators on location.

During 2014 Matco Asia also began the implementation of its A3 problem solving methodology – a structured problem solving and continuous improvement approach first employed at Toyota in Japan. This provides a simple and relatively strict approach that systematically leads to problem solving solutions and is commonly employed by lean manufacturing practitioners. “Essentially through A3 we identify any existing problems and utilise an eight step column structure that

Matco Asia Pte

visualises the problems and the required steps to solve them,” William explains. “Problems are identified by both clients and Matco Asia staff and representatives from all departments within the company are encouraged to participate and offer solutions, which are then checked to ensure that the solution is effective and sustainable.”

Throughout its history, Matco Asia has developed a trusted reputation with clients operating within a broad base of industries.

During May 2016 the company celebrated its 35th year in operation, representing a significant milestone for the business as it continues to move forward and develop into new markets. “Not many companies can remain profitable within the same area for 35 years and this is something that we are very proud of,” William concludes. “Our strength comes from our ability to be flexible in a way that giants in this field are unable to, as we are able to implement changes at the last minute if required and deliver excellent designed solutions to the client.”

Not many companies can remain profitable within the same area for 35 years and this is something that we are very proud of Matco Asia Pte Ltd matcoasia.com

Services Actuators, valve automation and engineering

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A sturdy

platform Discovered in 2008

by Maersk Oil and its co-venturers, JX Nippon and BP, the Culzean gas condensate field is one of the most significant of its kind and is estimated to hold up to 250m-300m boe. Development of the field was approved by the UK Oil and Gas Authority in August 2015 with first gas set to be drawn in 2019 and peak production of an estimated 60,000 to 90,000 boepd reached in 2020. Production will run for at least 13 years and, in line with the UK’s commitment to bringing increased gas-fired electricity generation capacity online, is expected to contribute five per cent of the UK’s total demand. “It’s UK gas to the UK market,” notes

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Martin Urquhart, Culzean’s Project Director at Maersk Oil. Indeed, the UK doesn’t even have to wait until 2019 before it starts seeing some of the benefits.

The project represents a total investment value of $4.5 billion, and over the lifetime of the development an anticipated $3.3 billion in operating expenditure will be spent directly in the UK domestic market. Moreover, in addition to the 400 jobs that will be created directly, the development and ongoing operation of the Culzean Gas Field is set to support around 6000 jobs across the UK. Located 260km east of the coast of Aberdeen in the UK North Sea, the field is made up of

PROFILE

Maersk Oil – Culzean Gas Field

Main picture left The WHP jacket undergoing final checks ahead of sailaway Bottom left The steel cutting for the first of the three topsides took place in April 2016 Left WHP jacket installation Below The WHP jacket prior to sailaway earlier in 2016

need three wells to meet the required capacity, so we need to start drilling approximately two years before the topside is installed.”

The second significant challenge is ensuring the processes and materials are suitable for reliable operation in such conditions. Andrew Lough, Wells Project Manager explains: “The complexities of the drilling programme are driven by the challenges of the pressures and the temperatures. That’s what makes this type of field unique in its development. It’s not just a challenge for Maersk Oil, but also the

MODEC MODEC delivers and operates highquality, innovative floating production solutions for the offshore oil and gas industry. It does so by cultivating a talented team that works with integrity, communicates openly, serves the community and protects the environment. In 2015, MODEC gained entry into the important North Sea oil and gas industry with a contract for supply of a FSO awarded by Maersk Oil North Sea UK Limited.

two deep reservoirs at a depth of 15,000 feet.

Sitting beneath traditional reservoir depth and a large chalk package, the hydrocarbons are present in some extremely harsh conditions.

With temperatures of 175 degrees Celsius and pressures of 13,500 PSI, this ultra high pressure, high temperature (HPHT) environment poses a number of complex challenges.

First of these is the amount of time that will be needed to complete drilling works. “Because we’re operating in a HPHT environment, we’re required to start drilling years before the platform is installed,” explains Stuart McAuley, Engineering Manager for the project. “It will take around nine months to drill one well and we ENERGY,oil&gas

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PROFILE

entire industry in order to be able to deal with the conditions throughout both drilling and production operations.

“Because of the dimensions of the well, for instance, we’re limited in the well thickness that we can use to gain strength,” he continues.

“The problem with high strength steel is that it doesn’t like the sour service nature, so we’re asking the industry to supply steels that are very strong. In this respect we are being supported by some very bespoke steel making capabilities in Japan which is dedicated to making high-end oil field tubulars.”

The depth of the wells also poses a challenge requiring a vertical jacket that has to be installed in a number of campaigns. The wellhead jacket has recently been installed. This section demonstrates an unusual twisted base in order to allow the rig to come in as close as possible.

In 2017, two further jackets will follow allowing drilling operations to commence, and a year later the top side, including processing facilities, wellhead platform, CPF (central processing facility) and ULQ (utility and living quarters) will all be installed. “By splitting the jackets from the topside we have de-risked the top side’s installation by getting the jackets out of the way and in the water as the piling activities can take several months,” notes Martin.

Across all of its operations Maersk Oil places safety as its top priority to ensure that all activities are incident free. Nowhere is this more evident with the Culzean project than above water, where a unique platform design puts all possible safety-critical distances between its personnel and the production facilities.

“Personnel safety is key and is the most important factor in how we lay the platform out,” outlines Stuart. “The wellhead platform is separated from the main CPF by a 150 metre bridge, which itself is separated from the ULQ by another 100 metre bridge, so we have maximum separation between the high pressure wellhead and the accommodation.”

At the time of writing (May 2016) numerous significant milestones have recently been passed. Chief amongst these is the successful installation of the wellhead jacket, which left the shores of the Netherlands on 13 April 2016. The EPC contract for the wellhead jacket, access deck and access ways, was awarded to Heerema Fabrication Group in 2014, with the jacket being constructed at the firm’s Vlissingen site in Holland. The twisted jacket has a height of 114 metres, a footprint of

Maersk Oil – Culzean Gas Field

31x31 metres at the bottom and 22x22 metres at the top, and complete with the access deck and access ways weighs in at 7100 tonnes.

“We were pleased to see the first of three jackets leave on schedule,” notes Koos-Jan van Brouwershaven, CEO of HFG. “This first one was challenging because of its complicated shape. Maersk Oil has pushed us as a company to deliver the highest possible quality and we are very proud to have achieved this.”

In addition to this, on 7 April 2016, the steel-cutting ceremony for the first of the three topside modules took place at the Sembcorp Marine Offshore Platforms (SMOP) shipyard in Singapore. SMOP was awarded the contract for all three topside modules and the two interconnecting bridges worth over $1 billion in September 2015. The topside modules will also include digital monitoring technology, which as Martin explains, will be key to improving the operational performance of the platform: “We will be harnessing technology to develop a 21st century facility with the ability to remotely monitor critical equipment 24 hours a day, and enable offshore colleagues to access real time data and immediate technical evaluation and onshore support. The technology will minimise time spent on plant and enhance safety and efficiency. Maersk Oil estimates this digital toolkit can save more than $10m annually.”

It’s a significant project in both its size and complexity, but also in the impact it can have on the UK economy as demand for gas and cleaner electricity rises. Maersk Oil, together with BP and JX Nippon, is demonstrating a key commitment to delivering this in as safe and efficient way as possible.

Top Culzean Middle above The WHP jacket is now installed on location

Maersk Oil – Culzean Gas Field maerskoil.com

Services The largest field discovered in the UK North Sea for more than a decade

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Simultaneous

opportunities

With roots dating back

to the late 2000s, VBMS specialises in subsea power cable and SURF installation. The company was founded as a subsidiary of Visser & Smit Hanab during 2007, and originally named VSMC (Visser & Smit Marine Contracting). With a strong base of power cable laying experience the company quickly became highly successful and in 2013 the company reached a significant milestone when Royal Boskalis Westminster N.V. acquired a 50 per cent stake in the business. This allowed VSMC to further leverage its existing resources with those of Boskalis to allow the company to fulfil larger contracts while drawing on the expertise of two highly successful companies. During 2014 VSMC was rebranded as VBMS and today the company is the leading European subsea power cable installation company, offering total subsea power installation solutions for offshore grids, onshore and in shallow and deep water.

Today VBMS specialises in subsea power cable

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installation and since its inception, the scope of VBMS operations has grown to further include activities such as ‘balance of plant’ maintenance for the renewable industry, SURF installation for the oil and gas sector and the installation of cable interconnectors.

During its early history, VBMS was primarily involved with the installation of export and electrical power cables. During its second year in operation the company acquired its first cablelaying vessel, while today VBMS operates four fully owned cable overlay spread vessels (COV).

As part of its total solutions offering VBMS has developed a unique technology that enables the company to simultaneously lay and bury power cables and umbilicals, rather than having to complete these operations on two separate occasions. This offers the client significant benefits in terms of reduced cost, risk and installation time.

“Traditionally, companies contracted to lay cable would lay cable on the surface of the

PROFILE

seabed and subcontract a separate company to bury the cables. In time the development of larger cables to deal with the higher capacities required to transport energy from A to B was increasingly tied to the need to lay greater lengths of cable.

“We observed that the lengths of cable we were laying were getting longer, reaching between 40km to 80km for example, or crossing directly from the Netherlands to the UK,” explains Commercial Business Director – Oil & Gas, Leo van Vliet. “Laying cable on the seabed leaves cable exposed and also requires the use of a guard vessel to be employed every 5km.

This is less safe and in terms of cost, the offshore wind market is very competitive meaning that it is important to reduce cost as much as possible.

By installing and burying power cable or umbilical in a single simultaneous operation, it is possible to increase safety and reduce cost. So for example, if a vessel lays 4km of cable a day that 4km of cable will also be buried. Although

VBMS

the first few projects were difficult, this is now a proven technology and we have installed around 600km of power cable and umbilical, which is quite an achievement.”

Indeed, during August 2015 it was announced that VBMS had been contracted by E.ON for the installation of Rampion export cabling off the Sussex coast. The company will undertake the installation of two 16 kilometre-long export cables for the Rampion Offshore Wind Farm.

These 150kV HVAC cables will transport power ashore from the 400 MW wind farm to the onshore cable in Brooklands Pleasure Park in Worthing, South East England. VBMS will deploy its proven DP2 cable-laying vessel Stemat Spirit during the operation, which is set to be executed in Q3 2016. The simultaneous laying and burial of cables is a critical aspect in the scope of the project and VBMS has recently added a new plough to its existing spread, which provides a high-performance trenching solution

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PROFILE

VBMS

for large diameter cables. The Stemat Spirit has previously demonstrated its capacity in this type of project during the Humber Gateway OWF export cable installation for E.ON in 2013.

VBMS has demonstrated the strength and capacity of its cable and umbilical laying installation method in both the renewable and oil and gas sectors, however the company is also able to deliver interconnector, nearshore and repair services as required. “Over the last few years many companies within the oil and gas industry have expanded more into the offshore wind market, while we are doing just the opposite. We started in this market almost two years ago when we installed our first umbilical for Wintershall and in 2015 we installed the second umbilical for the company.

We have also installed power cables for Statoil.

These projects were undertaken using our simultaneous laying and burial technology, which is a real achievement because this is not a widely recognised technique within the oil and gas market – even the largest operators in this market still use two vessels to lay cable, while we can do it with only one,” Leo concludes. “The market is

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very challenging at present, however especially mid-size operators are increasingly looking for alternative, cheaper solutions meaning that they are willing to adapt to new technologies. In one way, yes it is a very difficult market, but equally the market is more open for us and we want to achieve several projects to further demonstrate our capability in the oil and gas market.”

VBMS vbms.com

Services Subsea power cable and SURF installation

PROFILE

JDR Cable Systems

Building

connections The JDR name first emerged back in the 1990s after the merger of UK-based Jacques Cable Systems and Dutch De Regt Special Cable, but the combined experience in the design and manufacture of subsea umbilicals and power cables spans three-quarters of a century. In 2007, the company was acquired by Vision Capital, Goldman Sachs and Management from Bridgepoint Capital, enabling the commencement of a ÂŁ30 million investment programme in 2009 to develop a new state-ofthe-art facility in Hartlepool. Following the sale of its Marine Cables division in 2011 and the subsequent financial injection, the past five years have been marked by significant growth.

Today, JDR specialises in the design and manufacture of subsea production umbilicals, power cables and IWOCS (Intervention ENERGY,oil&gas

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PROFILE

JDR Cable Systems

Balmoral Offshore Engineering We have listened to our customers, including JDR Cable Systems, and acted upon this feedback to innovate subsea buoyancy, insulation and elastomer products for more than 35 years. Our hugely experienced engineering team works closely with clients to provide optimum valueadded solutions for their projects.

Many of our SURF-related products have been approved by Bureau Veritas (BV) in line with American Petroleum Institute specification (API 17L) including distributed and umbilical buoyancy, associated clamping systems and ancillary products such as bend stiffeners and restrictors.

Workover Control Systems) and is making strong progress across the offshore renewables and oil and gas markets around the world.

Close collaborative relationships with both its customers and supply chain have marked the company out in the market and have resulted in an unrivalled responsiveness. “We have developed an ability to respond quickly and are very agile to the changing market needs and conditions. Because of this we have seen a number of successes,” says Richard Turner, Chief Operating Officer at JDR. “With our focus on technology, our customers are recognising our breadth and depth of knowledge for offshore energy projects.”

It is from this sturdy foundation of agility that the company has experienced remarkable levels of growth over recent years. In 2015 alone JDR saw a 30 per cent increase in performance levels and a similar trend is expected in 2016. “Our ability to supply leading products to both the oil and gas and renewable energy markets has been key to this success,” Richard continues.

“We have seen growing demand for wind farm projects and have secured a large number of projects within Europe. At the same time we continue to lead the market for IWOCS umbilicals and are growing our presence in the

umbilical market through expansion into steel tube applications.”

A number of important contracts have been central to achieving this level of growth, including two recent framework agreements signed with DONG Energy and Atlantis Resources for offshore renewables projects.

“These are both examples of how we are entering into collaborations with customers to help develop technologies, optimise solutions and reduce costs together for the offshore energy industry,” notes Richard. The North Sea market has shown particularly positive signs for JDR over recent months as well with a number of projects delivered to leading energy companies. Richard also highlights the delivery of thermoplastic and steel tube umbilicals to the North Sea and African regions, pointing out a noticeable rise in demand for such systems as customers look to be supported with new technologies. “This has been one of the main drivers of our ongoing investment,” he says.

In 2015 the company commenced the second stage of investment, with a programme to build brand new facilities in Hartlepool.

The plant is due for completion later in

The Hotchkiss Group of Companies The Hotchkiss Group of Companies, John D. Hotchkiss Ltd and Westwell Developments Ltd, provide a complete engineering service through a unique combination of workshop-based heavy engineering machining and in-situ services. Drawing from over 78 years’ experience and utilising up to date technology, their highly skilled and experienced staff pride themselves on their innovative problem-solving capabilities.

Over the past ten years, John D. Hotchkiss Ltd have worked with JDR Cable Systems Ltd on a number of different projects, both workshop based and in-situ, providing their bespoke 3D 2016 Inventor design, manufacture, installation and maintenance services.

One of the largest projects undertaken with JDR Cables involved the design, manufacture and installation of a 35 metre diameter main carousel production machine for the sub sea cable market.

The Hotchkiss Group of Companies have a proven track record of meeting individual customers' needs, within both budget and deadline, and thrive on new and exciting projects.

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PROFILE

JDR Cable Systems

JDR already sees a number of these new opportunities opening up within the offshore market as it looks forward. One amongst these is the market’s move towards subsea electrification, for which Richard notes the company is uniquely positioned to provide solutions given its knowledge and experience of subsea cables for both oil and gas and renewable energy power delivery. “We can provide a wide range of products and services for this market and believe that this could be a growth area moving forward,” he says.

In terms of the future more generally, gearing up to become fully operational within its new facility will be a strong focus over the coming 12 months. “The next year will be about continuing to deliver our current projects whilst completing the investment programme,” Richard concludes.

“We have already secured work for our new machine and will be building on this through continued customer collaboration, so the future is looking good.”

JDR Cable Systems Ltd jdrglobal.com

Services A world-leading supplier of subsea production umbilicals, power cables and IWOCS for global oil, gas and renewable energy markets

2016 and will be absolutely key to the future delivery of new technologies and contracts, plus the required capacity growth. “The expansion includes a facility that will house a large capacity Helical Assembly Machine for the manufacture of umbilical cables,” Richard continues to outline. “We see the market moving into harsher environments and this investment will enable us to efficiently manufacture long length, high pressure, deep water umbilicals. The machine itself has a capacity of 320Te total functional components, through 16 20-tonne reels. The investment also includes the installation of new large capacity carousels and handling equipment.”

Further international expansion has also been high on the agenda of JDR over recent months.

In Brazil for example, the company recently became a qualified supplier to Petrobras’ oil and gas projects in the region, and in Nigeria it has led the introduction of local development through the training of Nigerian nationals in the manufacture, testing and installation of subsea production umbilicals. “We have a number of service centres around the world providing local solutions to key markets and customers, so the project in Nigeria is key to helping to develop our presence in West Africa,” Richard explains.

“The advantage of growing this international network is key to closely monitoring and taking advantage of any growth opportunities in the future.”

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Considerate

deconstruction Gas holders

Below Mark Johnson, NGN’s Major Projects Team Lead

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have been an iconic part of the British skyline since the nineteenth century, yet as modern natural gas networks now have the capacity to cope with demand, many of these towers have now become obsolete and a UK-wide programme to dismantle them is underway. Northern Gas Networks (NGN), whose area covers much of Yorkshire, the North East and northern Cumbria, initially had a network of circa 47 gas holders but is currently in the process of removing just under half of these between now and 2021.

A legacy from another time, the towers are often held in fond regard by local communities, who have strong attachments to them dating back decades. So the project is a fantastic opportunity to involve residents in commemorating the structures before they disappear from the nation’s skyline.

NGN’s community artist Mick Hand hosts workshops at nearby schools where children create giant murals of the holders, and residents can also share memories of them through a Gas Holder Memories social media campaign. This offers people a chance to talk about the towers, using the hashtag #gasholdermemories on Twitter and Facebook.

NGN’s Major Projects Team Lead, Mark Johnson, explains the challenges surrounding the removal of such structures and the company’s progress so far.

“Over the first three years we have taken energy-oil-gas.com

down six gas holders, working closely with the local community and stakeholders to influence how we deliver our programme.”

In March 2016, the company began the dismantling of two above ground gas holder tanks in Howdon, Newcastle upon Tyne.

Representing £680,000 of investment, the project is set to take 32 weeks. In April another major project followed to remove a single belowground tank at Ayres Quay, Sunderland.

Only estimated to take 23 weeks, £500,000 has been invested into the project. Mark also notes that a third scheme will begin at the end of June in Leeds city centre.

Emptying the containers of potentially hazardous materials and removing tonnes of metal from structures that in some cases are over a century old is no mean feat, and NGN’s commitment to doing so in as safe and as environmentally friendly a way as possible is exemplary. “After making the site and the surrounding area operationally safe, one of the first challenges we have to overcome is making the sure the water sealed gas holders are emptied of their tank water and associated residuals,” Mark explains. “There is an element of water within the tanks that we have to discharge to foul. However, this is always accompanied by a layer of emulsion that also needs removing, so we pump all the water through a filtration system and then a methane stripper and associated equipment before discharging it.

“Throughout this process we have to monitor the water quality and gain consent from both the local water authority and the Environment Agency to ensure the discharge meets the correct standards. The next complex challenge comes in the form of a layer of sludge that has formed on the bottom of the tank and requires several stages of pumping before being removed separately as hazardous waste.”

The next stage involves following a detailed technical specification to dismantle the structure.

“We begin by removing around 30 per cent of the tank’s crown to allow light and air into the tank so that specialist colleagues can work safely,” Mark continues. Once the cleaning phase is done we widen the openings to send in an excavator with snips to start dismantling each lift of the tank at a time, the resulting scrap metal is the also processed within the tank itself.”

During the dismantling phase numerous safety measures are taken and as with any major demolition project hazards need careful planning and control. Mark highlights that building

PROFILE

strong relationships with local stakeholders is essential to alleviating significant concerns.

Some of its sites, such as that at Howdon, can be placed in close proximity to live rail lines or residential properties, so engaging with local communities to ensure people understand the process, are aware of the safety measures being taken and that the contractors understand the potential impact their activities could have on them is a key part of NGN’s philosophy.

Such responsibility does not stop there.

Keen to improve its de-construction and environmental understanding and to operate within the Considerate Constructors Scheme, NGN constantly monitors its inspection processes so that it can see exactly where scrap materials are headed. “We are legally required to be able to see exactly where, for instance, the tonnes of scrap metal are being recycled,” adds Mark. “We have also been able to support local contractors in utilising recycled aggregates from other projects to back-fill the voids left behind by removing belowground tanks.”

Northern Gas Networks

Working in close partnership with its contracting partners KDC and G O’Brien & Sons, NGN demonstrates an exemplary approach to conducting these works in a responsible manner. Mark sums up the overriding philosophy that continues to allow the team to achieve such success: “Our top priority first and foremost is safety,” he says. “Completing the work on time, within programme and on budget follows closely, as does ensuring we operate within the principles of the Considerate Constructors Scheme. At the heart of everything we do is ensuring that we’re true to NGN’s core values of working in partnership and engaging with our customers and local stakeholders throughout the process.”

Share your gas holder memories with NGN by using #gasholdermemories on Facebook.com/ northerngasnetworks and Twitter @NGNgas, or by emailing gasholdermemories@northerngas.co.uk or writing to NGN, 1st Floor, 1 Emperor Way, Doxford International Business Park, Sunderland SR3 3XR.

Northern Gas Networks northerngasnetworks.co.uk

Services Responsible for operating and maintaining the gas network in the North of England

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power Aesthetic

Operating from Mosjøen

, Norway, Helgeland Kraft AS is engaged in the production, transmission, distribution and power sale of renewable energy throughout Norway. Although the roots of the business can be traced back to the development of Norway’s first hydropower plant to be built on the Revelfossen section of the Tverråga River during 1907, the company as it is recognised today was founded in 1946. The introduction of new energy legislation in the 1990s led to the restructuring of the organisation as a stock-based Aksjeselskap (AS) company, which is today still owned by 14 Helgeland municipalities.

In 2001 the company was restructured from a co-operative venture into a limited company, while retaining the same ownership and reorganising its hydropower, networks and power sales business areas into separate divisions. During 2014 the business was finally rebranded as Helgeland Kraft AS. Today the goal of Helgeland Kraft is to increase the security of energy supply throughout Helgeland, while continuing to provide increased value to its customers and partners.

Helgeland Kraft Nett for example, operates

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as the company’s infrastructure division that is currently engaged in a significant renewal of the power network throughout the region of Helgeland, which commenced during 2010 and is set to continue well into 2020. Helgeland Kraft Nett manages a network of power lines that spans 7800 kilometres, which roughly translates to 3.5 times the length of Norway! The Helgeland Kraft energy grid provides power for approximately 45,000 customers, with around 6TWh carried on the network.

Helgeland Kraft Vannkraft is responsible for the development and operation of power production across 12 hydroelectric plants within Helgeland as well as the further construction of seven new plants over the coming years. Two of these plants will be constructed in Rødøy in co-operation with SKS, while the other five will be built at Tosbotn in the Brønnøy municipality.

Helgeland Kraft is keen to build plants that utilise the regions available water assets, while working to safeguard the natural beauty of the area. All of the new plants along the Tosboth are expertly designed to provide the best possible balance of productivity, sustainability and responsible operation. The first of the company’s

PROFILE

new plants, Øvre Forsland, was completed in August 2015 and the remaining plants are set to be built between now and 2018. The completed Øvre Forsland plant is located on the riverbank in a clearing at the edge of a spruce forest.

Its unique design is fully inspired by nature intentionally environmentally friendly, which has earned the plant an international architectural prize and a description as ‘paradoxically beautiful’ by the world’s media.

Helgeland Kraft Strøm is responsible for the power sale, supplying 80 per cent of total customers within the region with a 35 per cent of turnover throughout the rest of Norway.

Helgeland Kraft’s 296 employees work according to the company’s vision of operating as a value creating enterprise with a strong focus on preventative health and safety management systems. This has allowed Helgeland Kraft to generate a turnover of 1,155,509 million NOK and pre-tax profits of 224,791 million NOK as of 2015. While the business has enjoyed stabile income and profitability in recent years, Helgeland Kraft remains fully committed to further expanding protecting the power generation security of Helgeland and increasing its market position.

Indeed, the company has significant development plans in place for the next ten years and currently has five license applications in process with the possibility of increasing power production by 10 GWh. With investment in a new generation of power facilities and new investment and maintenance on its existing network, Helgeland Kraft has earmarked around 2.5 billion NOK of capital for investment over the coming ten years. The construction of its seven new power plants represents an investment of 1100 million NOK and will increase its total power generation capacity by 25 per cent.

The development of Øvre Forsland and the five remaining new hydroelectric power plants in Tosbotn was in part facilitated by a loan of 470 million NOK, which was provided by the Nordic Investment Bank (NIB). “It has been

Helgeland Kraft

important for us to show that it is possible to build hydropower plants that are both beautiful and adapt to surrounding nature. We are proud of our hydropower projects in Tosbotn and Øvre Forsland, and that they qualify for a loan from NIB. NIB provides us with long term funding and is a new funding source for us,” says Helgeland Kraft CEO, Ove Brattbakk.

During May 2016, representatives from both Helgeland Kraft and the designers of the Øvre Forsland plant, Stein Hamre Arkitektkontor travelled to New York to attend the Architizers 2016 A + Awards. There they received major recognition for the Upper Forsland power plants as the winner of the Architecture and Sustainability category following a poll in which about 400,000 votes from 100 countries were submitted. While this recognition and global acclaim are indeed welcomed by Helgeland Kraft, the real benefit for the company and its clients will come from the additional power that the business is able to supply to the Helgeland grid, which is an area in which the business is set to continue to expand during the coming years.

Helgeland Kraft AS helgelandkraft.no

Services Renewable infrastructure and power generation

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Pushing the

boundaries In February 2016

, Total announced that it had officially started production from the Laggan-Tormore gas and condensate fields.

The Laggan-Tormore development consists of a 140-kilometre tie-back of four subsea wells to the new onshore Shetland Gas Plant (SGP) site on the Shetland Islands. The fields themselves are located 125km north west of the island’s coastline and are set to produce 90,000 barrels of oil equivalent a day (boe/d). At the fields’ peak production, the 500 million standard cubic feet of gas per day will contribute eight per cent to the UK’s total gas consumption. This makes it a hugely significant development project for Total and its partners DONG E&P (UK) and SSE E&P (UK).

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The Laggan field was first discovered in 1986, but it wasn’t until the discovery of the neighbouring Tormore field in 2007 that gas production in the region became economically viable and in 2010 the project to extract these resources and supply into the UK network via SGP and the Shetland Island Regional Gas Export pipeline (SIRGE) was sanctioned. Over the six years that followed, a hugely complex design, build and commissioning programme took place to develop the innovative subsea-toshore concept.

Located at a depth of 600 metres, four wells are connected back to the Shetland-based gas plant via two 143km long 18” import lines, one of the longest tiebacks in the world. “We

PROFILE

Laggan-Tormore Project – Total E&P UK

To mitigate many of the weather challenges during the construction phase of the gas plant, much of the construction work was carried out by building modules in the Middle East which were then shipped to and installed at site

are really pushing the extremes in terms of tieback distance whilst operating in such deep water,” explains Simon Hare, Operations Manager for the project. “In terms of technical feasibility, especially considering the harsh metocean conditions of this area, you can’t build a fixed platform in 600 metres of water.

Floating systems were also ruled out as being inappropriate for a gas field development, so it was decided that a subsea tieback solution would be best for the Laggan-Tormore project.

“This also eliminates the need to have personnel offshore, which has massive safety benefits. The onshore gas plant can be spread out and the risk of an incident occurring is reduced compared to an offshore installation.

Similarly, the logistics of operating an onshore plant are much simpler. We are also able to operate independent of the weather thanks to the whole design philosophy for the subsea installations which is centred on high reliability and redundancy. This means if we are unfortunate enough to experience any subsea equipment failures over the winter period we should be able to wait until a more clement time of the year when we can mobilise intervention vessels to fix them.”

To mitigate many of the weather challenges during the construction phase of the gas plant, much of the construction work was carried out by building modules in the Middle East which were then shipped to and installed at site.

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PROFILE

The Moorfield Hotel The Moorfield Hotel is a contemporary 100 bedroom property, nestled in the picturesque village of Brae, offering accommodation to employees at TOTAL’s gas plant at Sullom Voe. The hotel provides a welcoming, spacious and comfortable home away from home, boasting a restaurant with sea views, relaxing bar, function room and fitness suite. BDL Shetland Operations Ltd was set up to develop the £10m hotel. BDL Shetland worked closely with TOTAL on the specification and design of the hotel and an occupancy agreement was entered into when the hotel opened in 2013.

Laggan-Tormore Project – Total E&P UK

Working with multiple contractors and suppliers from around the world, a total of 2800 people were working on Shetland at the project’s peak.

The SGP facility is designed to dehydrate and process gas for export into the FUKA system and the UK distribution network via the newly installed 234km SIRGE export pipeline.

Condensate is partially stabilised on SGP prior to export to the Sullom Voe Terminal where it is stabilised and then exported via tankers.

In terms of equipment and processes used, Simon notes that the best available technology and components were used both in terms of performance and environmental impact.

“Two examples of this advanced technology are the MEG (mono-ethylene glycol – antifreeze) regeneration and water treatment systems,” he highlights. “The MEG is necessary

to stop hydrates forming in the subsea pipelines whilst transporting gas from the wells, but it is very expensive so we have installed a regeneration system to separate it from the gas, condensate and water before injecting it back into the subsea wells. Whilst it’s not the first time for a system like this to be used, it isn’t very common in the offshore industry, as it’s very complex with heat exchangers, pumps, distillation columns, separators, mixing vessels, filter presses and centrifuges.

“In terms of water treatment, for an offshore platform to put water back into the sea you have to have no more than 30mg of oil per litre, but because we are discharging close to the shoreline in a sensitive environment the limits tighten to just 3mg/l, meaning we have to employ completely different technologies that are closer to those you find in a refinery waste water treatment plant.”

This adherence to environmental regulation is an inherent part of developing any major oil and gas project, but Total’s responsibility to ecological and social sustainability has extended much further than this. The company has ensured that the plant can provide vital economic benefits to the Shetland Islands and has taken significant steps to engage local populations at every stage of the development. “We have worked with the communities right from day one to achieve two key things,” Simon indicates. “Firstly, that we cause as little disruption as possible to the local population, and secondly that we can benefit ENERGY,oil&gas

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PROFILE

Laggan-Tormore Project – Total E&P UK

the economy during the different phases of the project and in the future.

“For instance, in normal operation a total of around 230 people will be employed directly or indirectly by the plant and around 80 of these are Shetlanders. We employ 15 apprentices from the island and have put them through the OPITO training scheme to become production technicians – this has proven to be incredibly successful.

Beyond this, we have set up contracts with local businesses and suppliers to ensure that we make use of the services provided on the island and help contribute to the economy. We also work in partnership with schools, charitable organisations and the local authority on projects linked to our corporate social responsibility programme.

“In terms of environmental protection, our focus covers everything from the careful protection of local wildlife to the preservation of 700,000 cubic metres of peat, which is being held in two large peat stores on site ready to be put back when the plant is eventually decommissioned.” Simon points out that this culture and attention to detail has been adopted widely by all workers on site and has resulted in an ‘Excellent’ rating from SEPA (Scottish Environment Protection Agency) in 2015 for its levels of compliance.

Safety remains a core value and has always been an important part of Total’s operations throughout the Laggan-Tormore Project. Across a total of 43 million man-hours, zero fatalities and only 16 lost time injuries occurred. This commitment to safety continues into the operational phase.

Helping to support the development and operation of the Laggan-Tormore project are DONG E&P (UK) and SSE E&P (UK), both of whom hold a 20 per cent share.

Simon highlights that DONG’s longstanding experience in the Shetland area and with deepwater tieback projects made DONG a very valuable partner throughout the programme, whilst SSE’s operational excellence brings key benefits as it looks to expand its own North Sea gas capacity.

Looking ahead, the development of the Laggan-Tormore fields and the Shetland Gas Plant provides a sturdy platform upon which to open up new opportunities. The Edradour and Glenlivet fields, for example, are both located in close proximity to the existing Laggan-Tormore subsea facilities.

“By themselves these would never have been economically viable, but because LagganTormore is already in place it allows us to install a relatively simple tieback into the existing pipelines and control systems in order to bring them in to production,” Simon outlines. “This project was given the go ahead in 2014 and Edradour is due to come on-stream in October 2017 with Glenlivet following in September 2018. This provides a great opportunity for the future of the gas industry in Shetland, as other stranded gas fields could be exploited through the existing infrastructure, making it a very exciting position to be in as we move forward.”

In terms of environmental protection, our focus covers everything from the careful protection of local wildlife to the preservation of 700,000 cubic metres of peat, which is being held in two large peat stores on site ready to be put back when the plant is eventually decommissioned

Total E&P total.uk

Project Shetland Gas Plant/ Laggan-Tormore Project

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economy

Energising an

Yacimientos Petroliferos Fiscales Bolivianos (YPFB) was first founded in 1936 by the Bolivian government following regional conflicts over the alleged existence of oil. What emerged was a very swift nationalisation of all Bolivia’s energy resources and the pillars of the company’s continued development were built through a thorough and professional training programme. For its first few decades YPFB experienced significant growth with the state supporting the construction of refineries, pipelines and important infrastructure to take its products to market in the forties. In the fifties, a decade often referred to as the business’s ‘Golden Stage’, the company hit a major milestone by, for the first time, exceeding domestic demand and allowing Bolivia to become an oil export nation, thus eliminating its need to import. Thanks to the construction of the Camiri-Yacuiba and Sica SicaArica pipelines, exports to neighbouring began.

The sixties continued much of this positive development as the firm started to attract foreign investment into the continued exploration and drilling and in 1966 excellent results were born from the Monteagudo well. This decade also marked the creation of the Gas Division, which began exporting to Argentina in the seventies.

Following this strong period of development, however, Bolivia and YPFB experienced social and political instability, which saw the company ‘dismembered’ by private investment. Yet during the 2000s, after continued civil unrest, nationalisation was restored and today, upon its 80th anniversary, the company continues its successful operation as the sole authority over the production and marketing of hydrocarbon products in Bolivia.

At present YPFB is heavily committed to developing the industrialisation of its energy resources across Bolivia, and as such numerous growth projects have been put in place over recent years. In August of 2015 for instance a new hydrocarbon liquid separation plant went

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into operation. With the capacity to produce 2247 metric tonnes per day (TMD) of LPG and process 32 million cubic metres of natural gas per day, the new Gran Chaco plant in the Tarija region of Bolivia cost around 640 million USD and is the largest in the country – in fact it is that third largest of its kind in Latin America.

Highlighting the significance of this plant, the current domestic consumption of LPG in Bolivia is around 1000 TMD making the state a key net exporter in the region.

This increase in capacity is a key indicator to YFPB’s current state-led development programme which, over the next few years to 2020, will see additional investment of 12,681 million USD into the strengthening of exploration activities and the development of marketing activities across Bolivia. The majority of this – 57 per cent to be precise – will be directed towards the exploration and exploitation of hydrocarbons with the goal to increasing natural gas reserves from 10.45 trillion cubic feet (TCF) in 2013 to 17.45 TCF in 2020, and liquid hydrocarbon reserves from 211 MMbbl to 411 MMbbl over the same period. In turn this will allow for the increase of production from 60 MMmcd to 73 MMmcd, meeting the demand of both domestic supply and export contracts to Brazil and Argentina.

In addition to this 2657 million USD will be allocated to the industrialisation of hydrocarbon activities in the market, with much of this aimed at the conclusion of a Urea and Ammonia Plant in the town of Bulo Bulo in the province of Cochabamba Carrasco. Set to begin operations in the second half of 2016, with its first bags of fertiliser hitting the market in time for the 2017 harvest, the new complex will have a production capacity of 1200 TMD of ammonia, and subsequent output of 2100 TMD of urea fertiliser. The impact of the plant will help serve the growing demand for high quality fertiliser

PROFILE

in Bolivia, thus driving the modernisation of agriculture, whilst also creating value for its own natural gas supply and reducing the market’s import reliance. Further industrialisation projects include the building of a new propylene and polypropylene plant in Tarija, which is set for completion and start-up in 2021.

The investment will also help continue the development of the country’s hydrocarbon transport infrastructure and around 871 million USD will be allocated to an important social project to connect a million households to the LNG network. The aim is to create 100,000 additional connections every year from 2016 to 2020, benefiting more than 50 per cent of the country’s population.

Helping to deliver this is the establishment of a virtual gas network to compliment the conventional systems that fail to reach some of the most remote areas of Bolivia. By using a fleet of LNG tankers plus a network of satellite regasification stations, LNG will be transported from the Rio Grande liquid separation plant to

these remote populations, helping to not only boost the industrial productivity of Bolivia, but also improve the lives of its families and reduce their reliance on LPG and gasoline.

It is no secret that Bolivia has experienced a tumultuous and challenging history and this has often impacted YPFB quite considerably.

However, under a strong leadership and focused expansion strategy, the present state of growth and development as a national company serving the economic needs of its population, is extraordinary. Significant investment continues to be delivered into some of the most hugely important projects, which is allowing both reserve and production capacity to increase.

With a focus on not only the industrialisation of Bolivia’s hydrocarbon activity, but also on the support of its people, YPFB’s activities are playing a key role in the growth of both the country’s domestic and export economy and looks set to secure a bright future for years to come.

Source: all statistics taken from www.ypfb.gob.bo/es/

YPF BolivIa

YPFB’s activities are playing a key role in the growth of both the country’s domestic and export economy and looks set to secure a bright future for years to come

YPF Bolivia ypfb.gob.bo

Services Bolivia’s state owned oil and gas company

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Protected from the

elements

When

Energy, Oil and Gas last spoke with Shawcor back in October 2014, the company was known commonly as Bredero Shaw by the market. Over the time since, Shawcor, the world’s leading integrated energy services provider, has undergone a process of change under the leadership of a new CEO with many of its brands consolidating under one banner.

In total over the last 18 months, four individual businesses: namely Bredero Shaw, Socotherm,

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Dhatec and Canusa have been brought together under Shawcor’s pipeline performance group.

“The integration of Bredero Shaw and Socotherm began in January 2015,” explains Fernando Ulecia, VP Marketing and Global Sales Operations for Shawcor’s pipeline performance group. “These were the two biggest coating companies in the market so it was a complex programme to bring them in line with each other. The introduction of the other two

PROFILE

companies began at the start of 2016 and is still ongoing. Eventually the four businesses will fall under the same organisation and as a consequence we can provide a broader range of end-to-end coating solutions globally.”

The division now provides customers a variety of integrated coating targeted towards onshore and offshore applications. Bredero Shaw and Socotherm traditionally hold a leading position in thermal insulation coatings, anti-corrosion coatings, internal coatings and concrete weight coatings for on and offshore pipelines.

Canusa-CPS brings years of developing fieldapplied coatings. Dhatec’s preservation and transportation protection solutions complete the line-up.

“We are the only company that can provide a real end-to-end coating solution,” Fernando says. “I think this is where our strength as a business lies. We have the technical knowledge from two of the biggest companies in the market, combined with the leading expertise of more niche segments. The other big strength is our operational excellence in executing big projects. We can provide solutions from different plants across the world.”

One such project that perfectly illustrates this capability is a recently completed contract to coat 140 miles of 44” carbon steel pipe for the Wheatstone project, one of Australia’s largest and most prolific LNG resource programmes.

Using SureFlow internal coating and HeviCote concrete weight coating, Shawcor’s pipeline performance business was chosen to protect and optimise flow efficiency across the trunklines and flowlines needed for gas and condensate gathering, processing and exporting. To maximise offshore flow assurance and provide the required insulation necessary to maintain temperature on the infield flowlines, the company also coated 45 miles of 24” corrosionresistant alloy production lines, 14” CRA utility lines and 6” carbon mono ethylene glycol lines with a three-layer polypropylene anti-corrosion coating and Thermotite polypropylene insulation coating.

Shawcor was also able to employ its End Seal Tape solution, an innovative system designed to mitigate moisture absorption at the cutback areas, ensuring damage-free cutbacks during field application. Crucial to delivering the project on time and on budget, two of Shawcor’s worldclass manufacturing facilities based in Indonesia and Malaysia provided ideal local sites from which to deliver flexibility, rapid execution and

Shawcor

At present the business is in the commercialisation stage of a thick finish coating solution for thermal insulation and is diligently working on the development of high temperature insulation coatings for offshore projects that are entering ever harsher conditions

minimal risk across the project’s lifetime.

Complementing this operational strength, Shawcor’s consistent approach to product development continues to maintain a strong lead in the industry. Fernando highlights that by forming strong customer relationships the pipeline performance group is always working to develop advanced coatings for new solutions and applications. For instance, at present the business is in the commercialisation stage of a thick finish coating solution for thermal insulation and is diligently working on the development of high temperature insulation coatings for offshore projects that are entering ever harsher conditions. “These are both great examples of how we engage with the market challenges to develop new products and come up with new solutions that meet market needs,” Fernando notes.

With global coverage, the need to maintain a committed focus towards product development is critical for Shawcor to stay ahead of the ENERGY,oil&gas

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Shawcor

competition, particularly in today’s challenging market conditions. “We are not seeing much new activity out there at the moment,” Fernando explains. “Luckily, we are still executing on projects previously secured and look forward to winning bids on several large projects.”

Shawcor predicts that the market should start to show signs of picking back up by 2017, with

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the company’s activity rising accordingly shortly afterwards. “In the meantime it is important that we continue developing new solutions and over the coming months we will be looking at controlling our costs and consolidating our operations to improve overall performance in the market,” he says. “We are also looking to actively participate in more strategic partnerships with customers around the world, especially in relation to further product development – I think this is much the same across the rest of the Shawcor group.”

With the capacity to deliver a wide range of projects and services, Shawcor’s pipeline performance division is perfectly positioned to take advantage of any improving conditions in the oil and gas market as and when they come about. Like many companies however, using this downtime to consolidate operations, improve cost efficiencies and enhance performance, will likely prove key to emerging stronger than ever and taking on even more challenges well into the future.

In the meantime it is important that we continue developing new solutions and over the coming months we will be looking at controlling our costs and consolidating our operations to improve overall performance in the market Shawcor shawcor.com

Services Global leader in the development and manufacture of pipe coating solutions

RAVESTEIN

SKYJACK Ravestein is building a 3000 tonne capacity submersible jack-up dock (patent) called SKYJACK 3000.

The SKYJACK 3000 is 60 metres long and 28 metres wide with a payload of 3000 tonnes.

The legs are 52 metres long with a diameter of two metres.

The submersible SKYJACK 3000 is currently under construction at Ravestein’s own shipyard facility on the River Waal at Deest, The Netherlands and will be ready for charter in June 2016.

SKYJACK is a submersible jack-up dock, which is able to operate offshore at high capacity to enable the delivery of equipment needed for offshore projects and to take redundant equipment away for repair or re-cycling, as well as for the transport of heavy parts for the purpose of offshore windfarms.

The design is unique, as it does not need cranes, being a float-on float-off submersible and towable platform. Which also gives the SKYJACK the ability to be used as a barge to transport equipment, as it has a large deck area complete with a control room on top of the jackhouse.

By being non-propelled, this kept the unit simple and cost effective to construct and to transport by way of a tug.

Ravestein is able to offer a complete package of full logistics and operations, including marine engineering and project management.

Ravestein has also developed a 16,000 tonnes capacity SKYJACK (with Lloyd’s Class) that could be built for specific jobs. For example, the transport of gravity bases for offshore wind farms and dismantling oilrigs - a market that it expected to grow significantly during the next 20 years. Two SKYJACKS with a total capacity of 32,000 tonnes can be used for oil & gas platform de-commissioning works. This is to be done by jacking it up from its jacket and removing it. A methodology for dismantling rigs has been devised by Ravestein.

Ravestein BV Waalbandijk 11 6653KD Deest Netherlands +31 (0) 487 51 20 34 sales@ravestein.nl

further Reaching

aluminium dual drill pipe to counteract high torque and drag. “The special equipment that we have developed and proven through successful operations features a new drill string partly made of aluminium and that has the benefit of being very resistant to high torque that can cause wear and damage to components. We are also able to make the string buoyant so that the torque and drag in the horizontal drill section is greatly reduced, which is one of the main challenges with both horizontal and extended reach drilling,” explains Chief Technical Officer, Ola Vestavik. “This is possible since our solution allows the use of two different drilling fluids within the well at the same time. This enables improved wellbore stability due to stable pressure in the well during the drilling process and torque and drag reduction due to the buoyant pipe.”

Since the company

was founded during 2004, Reelwell AS has dedicated over a decade to the development and promotion of its pioneering Reelwell Drilling Method (RDM). Reelwell operates from its base within Stavanger, Norway from where it unveiled its RDM technology introducing new concepts that challenge traditional methods of Managed Pressure Drilling (MPD) and Extended Reach Drilling (ERD). RDM employs revolutionary technology that utilises accurate pressure management and superior well control through the use of closed loop fluid circulation to push the limits of what was previously thought possible by the wider drilling industry. The application of RDM technology allows operators to access reservoirs that are considered to be extremely challenging or even impossible to drill conventionally, as well as to increase the overall efficiency of drilling operations.

The technology employed by the RDM is based on the use of a Dual Drill String (DDS) in which drilling fluid flows to the drill bit via the string annulus, while the return flow of liquid to the surface is through an inner string.

This process is achieved through the use of Top Drive Adapter (TDA), a dual conduit swivel that allows rotation of the drill string with the top drive. The TDA also routes drilling fluid from the top drive to the DDS annulus before the return flow is taken out via the TDA housing.

Since Reelwell was previously featured in Energy, Oil & Gas magazine during October 2015, the company has continued to develop its RDM technology through the introduction of a new ERD solution that incorporates an

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The RDM Inner Pipe Valve (IPV) features a barrier for controlled pressure drilling and enables pressure-less pipe connections. The RDM is regulated through the Flow Control Unit (FCU), a control valve arrangement through which all active drill fluid is routed. The FCU assures constant downhole pressure during drilling and pipeline connection, and the unit is equipped with pressure and flow sensors on both the drilling fluid inlet and return lines. Furthermore the Reelwell control panel is fully integrated with the well control and monitoring system of the drilling facility. The result of the process is that drilling fluid is pumped into the DDS annulus via the TDA and down to the IPV at the top of a conventional Bottom Hole Assembly (BHA). From the IPV, cuttings are transported back to the surface inside the inner string, ensuring that the hole remains clean at all times.

During March 2016, Reelwell announced the successful completion of trial well operations at the Killam land well in Alberta, Canada. Prior to being deployed in the field, the Ensign 127 rig was adapted and tested with the Reelwell equipment at a site in Nisku. The spud of the Killam land well in Alberta was performed on February 27, drilling a 20” vertical hole to 90 m and installing and cementing a 16” casing. The

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Reelwell Drilling Method was deployed, using the Halliburton Geopilot Rotary Steerable System to drill the first part of the horizontal section to 1100m using the single fluid with a density of 1.1 sg. The well annulus fluid in the casing was displaced to a heavy fluid of density 1.6 sg.

The Reelwell Heavy Over Light (HOL) solution was used to continue drilling down to the target depth of 1510 m MD, 452 m TVD. The effect of HOL on torque and drag was measured by comparing torque and drag when the drill string was filled with respectively light and heavy fluid in both channels when the bit was at TD. The project was undertaken with support from Total, DEA, Petrobras, Halliburton and the Research Council of Norway and was concluded positively. The results including no lost time incidents, reduction of the MPD casing pressure from 25 bar to 3 bar, superior hole cleaning

and significant reduction of torque on the drill string, as predicted by the models. “We have been working hard on this technology for the past ten years now and we have done a lot of trialling and we have performed operations that have allowed us to adapt and further develop the technology. That takes time because there is a lot of testing required. We are grateful to our sponsors for the funds that has allowed us to demonstrate everything we wanted to demonstrate in terms of time and scope and can show that our equipment will work perfectly well every time with no downtime,” Ola concludes. “One of the reasons that the oil industry is so conservative is that it cannot afford mistakes, because everything is so expensive.

Now we can show that our solution is both proven and reliable and we plan to further penetrate the market and to execute operations all around the world. Our technology can make it easier to access hard to reach reserves more economically and allow operators to improve the recovery from the fields.”

Reelwell

One of the reasons that the oil industry is so conservative is that it cannot afford mistakes, because everything is so expensive. Now we can show that our solution is both proven and reliable and we plan to further penetrate the market and to execute operations all around the world Reelwell AS reelwell.no

Services Innovative drilling technology

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Favourable wind

for Finland through

renewable energy

Founded with a mission

OFFSHORE SERVICES JAN DE NUL GROUP Services for the offshore oil, gas and renewable energy industries are a key part of the services provided by Jan De Nul Group. The Group provides services related to the installation of offshore wind farms, including installation of export and inter array cables, transport and installation of all types of foundations and high voltage stations, installation of scour protection around the foundations, and installation of the entire wind turbines itself.

The combination of design and detailed engineering and all aspects of civil works, dredging works and rock and marine installation works enable Jan De Nul Group to offer a total package on an EPCI basis. The Group’s in-house engineering department provides clients with FEED design for the selection of foundation and for all aspects of the construction and installation.

to produce energy through wind power and to carry out marketing, research and development relating to wind power generation, Suomen Hyötytuuli Oy is owned by shareholders that comprise eight major Finnish energy companies. Across its operations, Suomen Hyötytuuli has significantly promoted Finnish wind power production, and was the first company in the country to introduce a megawatt-scale wind farm.

“Suomen Hyötytuuli was established in 1998, and the first one megawatt turbines were built in Pori, Finland, during 1999,” explains Managing Director Toni Sulameri. Since then, the company has grown into one of the most important Finnish companies within the field of wind power with two wind farms in Raahe, Northern Ostrobothnia, including Kuljunniemi wind farm, Nikkarinkaarto wind farm that will be inaugurated during summer 2016, and the Reposaari wind farm in Pori.

World’s first offshore wind farm for icy conditions Further to its existing assets, Suomen Hyötytuuli has just started a unique arctic Tahkoluoto offshore wind farm project. In the first phase, the company will build ten 4 MW Siemens offshore wind turbines outside Tahkoluoto in Pori. Marine operations are carried out by a Belgium-based company, Jan De

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Nul. The offshore wind turbines will be located around Finland’s first offshore wind pilot turbine completed in 2010.

Suomen Hyötytuuli expects wind power production to continue to expand into the sea due to better wind conditions and the possibility of building large-scale offshore wind farms. The project is feasible in terms of its technical requirements, as the area has excellent infrastructure and wind conditions.

Doubling the production Suomen Hyötytuuli is currently commissioning a wind farm comprised of ten wind turbines in Nikkarinkaarto in the city of Raahe. The wind turbines were delivered by Vestas Wind Systems.

The erection of the turbines started in March this year, and the production is due to commence during June. The Nikkarinkaarto wind farm will be connected to the local energy grid using technology from ABB. As of summer 2016, Suomen Hyötytuuli will produce at total of 71.6 MW of wind power with Reposaari producing 17.9 MW, Kuljunniemi generating 20.7 MW, and Nikkarinkaarto delivering a further 33 MW. Wind power is widely considered to be an important part of Finland’s energy future, and during the next two years Suomen Hyötytuuli plans to introduce 110 MW of wind energy, with the realisation of this target progressing well.

PROFILE

Suomen Hyötytuuli Oy

Potential renewable energy form for Finland

Plans to increase capacity

“As a company, we see the role of wind power in Finland as being very important. In comparison to other renewable energy forms, wind power undeniably has some of the most potential in helping to reach climate targets within the region. For example, there is an EU target to reduce greenhouse gases by 40 per cent between 1990 and 2030 which will increase the share of renewable energy to at least 27 per cent, while the carbon neutral Finland objective targets to reduce greenhouse gases by even 95 per cent from the 1990 level to 2050. There is also a national wind power production target of six TWh by 2020, and nine TWh by 2025,” Sulameri says.

“Currently Finland does not have enough of its own energy production, and old capacity is being taken out of use, which means that there will be a great need for new renewable energy production. Which part of that will be comprised of wind energy remains to be seen. Bioenergy is also a significant alternative for Finland.”

During the coming years, Suomen Hyötytuuli will continue in its mission to further Finland’s renewable energy capacity through the development of new wind farms. For example, the company is also planning a wind farm of ten wind turbines in Annankangas in the city of Raahe. Current and future projects, combined with the advantage of being owned by eight of Finland’s leading energy companies, will ensure that the company will remain a key player in the country’s energy future.

“Over the next 18 months, we will focus on building new wind power capacity. During the same period, we will plan further projects while taking into consideration that national subsidies for renewable energy producers are currently going through major changes, which raises some questions over the future energy price.”

Suomen Hyötytuuli Oy, Finland hyotytuuli.fi

Services Wind power production

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Total

commitment With roots dating back

to 1989, OceanMaster Engineering Pte Ltd (OceanMaster) has earned a strong reputation in the marine and offshore industry with its total commitment to customer service and satisfaction. The company is today a global leader in the delivery of marine and offshore solutions, providing expert capabilities in engineering design, fabrication, installation, commissioning and preventative maintenance services. The business incorporates full office, workshop, storage and warehousing facilities comprising more than 70,000 square feet, from which it currently employs over 100 employees, including well trained and experienced service teams capable of carrying out operations on various types of marine vessels.

OceanMaster is fully certified in compliance to ISO 9001 and OHSAS 18001 and further to its ship repair and general engineering capability, it also specialises in the field of marine refrigeration and air conditioning. Historically the

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company has maintained a niche specialisation in refrigeration, ventilation and air conditioning services and carries a large stock of new and reconditioned refrigeration compressors and spare parts. During its history OceanMaster has built a proven track record in the delivery of efficient refrigeration solutions and its capabilities in its steel, electrical, carpentry and machine works.

Over the years the business has achieved several milestones, including becoming an authorised service and training centre for Emerson Climate Technologies in 2014, with its RHVAC engineers acquiring Environmental Protection Agency (EPA) certification during the same year. Following this success, OceanMaster has continued to service vessel owners across Southeast Asia as well as rig owners in Australia, Russia, India and Africa throughout 2015 and 2016.

The company is based in Singapore, from where OceanMaster is able to offer wellequipped workshop facilities that provide all of the necessary machinery and tools to cater to

PROFILE

various ship repair requirements. This includes specialist tools and equipment for electrical, refrigeration and air-conditioning repair works.

The company’s extensive fleet of equipment is further complemented by OceanMaster’s vast experience with advanced technologies to convert refrigeration systems from the use of the ozone refrigerant to ozone friendly refrigerant.

This provides the company with a strong position in Singapore as clients, including rig owners, are able to send equipment to OceanMaster’s workshop for repair and maintenance. Further to its workshop-based competency, the company also managed a team of highly trained offshore engineers who have received industry-approved offshore medical, firefighting as well as helicopter underwater escape training. This allows OceanMaster teams to travel by helicopter to rigs to carry out works on any offshore rigs, platforms, FPSOs and other offshore vessels around the world on an ad-hoc basis.

As the company has evolved it has continued to adapt to the changing needs of its customers.

For example when OceanMaster was previously featured in Energy, Oil & Gas during October 2015, Managing Director, Lee Ee Win discussed how over the past decade the company’s focus has changed from providing around 80 per cent of its services in marine repair operations to as much as 90 per cent of its business originating from the offshore sector. To ensure that the company is able to fully address the changing needs of its clients, OceanMaster ensures the highest levels of training and works in collaboration with both global and local certification and training houses. For example, the company is a Certified On-TheJob Training Centre (COJTC) accredited by the Institute of Technical Education, Singapore.

This is supported by its comprehensive in-house training facilities that allow OceanMaster to operate in accordance to its core values of customer focus, safety and people.

Although the market within the offshore sector has slowed due to the current low price of oil, resulting in less vessels arriving in Singapore for maintenance, OceanMaster Engineering continues to cultivate a consistent level of business through its on-going maintenance work on existing rigs.

Whatever the level of activity within the market, the company is differentiated from its competitors through its total commitment to customer satisfaction that is built on its focus on three key factors, comprising of the right team; the right process; and the correct control.

OceanMaster Engineering

With its high level of expertise and proven track record, OceanMaster has gained a trusted reputation in the industry, which will help it to continue to navigate offshore and marine markets throughout periods of both high activity and depression. While the market remains low in the wake of the low oil price, OceanMaster will focus on further increasing its level of service and developing cost-saving strategies that benefit both the business and it clients.

The company will also continue to work with the Institute of Technical Education (ITE) in Singapore to provide more on-the-job training to its customers and clients so they can be better educated on the maintenance of air conditioning systems onboard vessels and rigs. Through these strategies OceanMaster Engineering will continue on its journey to achieve its vision of being recognised as the global leader specialising in providing marine and offshore engineering solutions and maintenance, repair and overhauling (MRO) services.

During its history OceanMaster has built a proven track record in the delivery of efficient refrigeration solutions and its capabilities in its steel, electrical, carpentry and machine works

OceanMaster Engineering oceanmaster.com.sg

Services Ship repair, air conditioning and general engineering

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Connectivity, communication and technology solutions for the

energy industry Vysiion, with a heritage stretching back

The main strengths of Vysiion have always been in its flexibility and agility.

We are completely vender-agnostic, which means that that we are able to source and supply the best solution for the job at hand

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to the early 1970s, has a long and proven track record in the supply of managed technology solutions across a number of distinct markets, with the Energy sector being key amongst them.

Previously operating as RFL Communications PLC (RFL), the company has developed as a reliable turnkey systems integrator able to provide full design and installation services, in addition to a 24/7 service and support facility.

Over time RFL quickly established itself as an internationally recognised company, offering clients full service packages covering everything from network upgrades to new offshore wind installation. Its customer base included the supply of systems for UK national and overseas national electricity grids within Jordan, Qatar, Azerbaijan, St Lucia, Abu Dhabi and Kenya, with further recent experience in the UK’s offshore wind farms.

Vysiion’s expertise has been further developed following the integration of ITS, a provider of ‘best in class’ computing and IT solutions, and JAD, whose focus was on providing IT services to the commercial and public sector markets.

2015 was a year of change for all three businesses. Vysiion was created following RFL’s acquisition of both JAD and ITS with support from the Business Growth Fund (BGF) in the form of a £4 million equity investment.

Vysiion has now become a full service integrator with a unique ability to support all aspects of systems integration, from hybrid, cloud and fixed hosting and enterprise solutions right through to full connectivity and communication options. The business today continues to provide turnkey integrated systems for the public and private sector as well as a full service of communication systems within the utilities market. With comprehensive accreditation and associated track record the reputation of Vysiion’s fibre team, for instance, is second to none.

energy-oil-gas.com

Bruce Brain, Vysiion’s Executive Chairman sums up the past 12 months: “This investment helped us to bring together these three companies to create one of the leading tier two companies supplying cloud-based managed services for computing and communications systems. The BGF’s funding was a key part of this. They have invested in other companies in our space, know our channel partners and trusted in the vision we have for the business.”

The company has also further built on the previous experience of RFL in the renewables market and today works with substations for offshore wind farms, where it provides everything from fibre laying and splicing through to the implementation of transmission equipment, multiplexers and full communications links.

Within this market operationally Vysiion broadly divides its specialist services into two areas, comprised of utility campus projects and renewable operations. These areas each represent around 40 per cent of the company’s overall business. “The main strengths of Vysiion have always been in its flexibility and agility. We are completely vender-agnostic, which means that that we are able to source and supply the best solution for the job at hand. We also have partners that we work with so we are essentially able to work completely across the board to give the customer the best solution to match their requirements. We work to be responsive, very customer focused, cost effective and ensure on-time deliveries,” elaborates Infrastructure Sales Manager, Michael Grimshaw.

Although the oil and gas markets are currently in the midst of a significant slowdown brought about by the depressed price of oil, the offshore wind market is presently experiencing a period of buoyancy. Vysiion is well placed to help support in this arena following significant 2015 activity to support Gwynt y Môr and the London

PROFILE

Array, representing the world’s second and first largest wind farms respectively.

The Vysiion team is currently working to deliver solutions to the Dudgeon project with Siemens and is also engaged on the Galloper wind farm with Alstom. The company also continues to work on the German Wikinger wind farm with Vodafone and anticipates that several other wind farm projects will be implemented in near future.

Within the field of wind farm operations, Vysiion is able to deliver a comprehensive package of telecommunications and securitybased solutions. “With the Dudgeon wind farm for example, our scope with Siemens is to design the network, to provide the supervisory control and data acquisition (SCADA) network and all of the routing and switching for the SCADA devices. We also supply and install all of the CCTV and telephony equipment on the offshore platforms and onshore substations,” Michael reveals. “We provide communications to site offices, telephony services out on the platforms as well as the necessary telephone exchanges.

Finally we are also working on some security and perimeter detection systems for them. On a typical wind farm project the main required elements are SCADA networks, CCTV and telephony installation.”

While Vysiion is fully vender-agnostic, it nevertheless nurtures long-lasting and close relationships with both its clients and its partners to ensure the on-time delivery of the best and most suitable communication systems.

The company holds enhanced partner status with well-known brands such as Dell, Microsoft and VMWare, which allow it full access to the vendors’ range of products. Other partners in the field include Keymile, Alcatel, Siemens, ShoreTel and Hernis.

During 2016 and beyond Vysiion will remain focused on supporting the delivery of services to the growing offshore wind sector as well as on maintenance works for fibre networks on the National Grid. Additionally the enhanced capabilities of the company’s product-service offering provides customers with the opportunity to discuss and review other IT managed solution cost efficiencies.

Within the Energy sector Vysiion will seek to capitalise on the buoyancy of the offshore and utilities market, while leveraging its proven experience to secure further contracts with its existing and newly acquainted clients.

As Michael acknowledges: “The delivery

of wind farm projects will definitely be a great opportunity for the next three to five years because some of these projects are not due to commence until 2018 at the earliest.

Certainly in the next three to five years there will be more offshore wind work, however many future projects will be at the whim of the Government because wind farm projects need to be subsidised and that element of the market will need to be fortified by Government investment.”

Vysiion is definitely working in a number of interesting arenas and as Michael concludes.

“With our substation, communications and utilities capability we maintain a lot of diversification in the business. Since we have become larger this has extended further because we have a business that looks after public and private sector ICT, colocation and data centre support, which adds additional support to our respective markets – so we can provide quite a complete package.”

Vysiion

Vysiion vysiion.co.uk

Services Managed technology solutions

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Sole

supplier Photographer : Thea van den Heuvel www.th-fotografie.nl

Operating predominantly

Photographer : Thea van den Heuvel www.th-fotografie.nl

within the oil and gas industry, MPP Systems is renowned around the world for its specialist treatment systems designed to remove dissolved and dispersed hydrocarbons from water. The company was first founded in the 1990s under the Dutch AkzoNobel chemicals group, and was later bought by global water treatment specialist Veolia in 2006.

“It was one of the best moves we could have made as a company,” says Erik Middelhoek, the Managing Director. “AkzoNobel had become a chemicals company, not so focused on neither water treatment systems nor the oil and gas industry. Veolia on the other hand is the world’s largest water business, present in almost all countries and working with most oil and gas companies. This made it a perfect fit for MPP. It means we are able to work closely with the rest of the group as we develop and can offer a complete and wide range of technologies when solving our clients’ problems.”

Product-wise MPP Systems splits into two channels: MPPE (Macro Porous Polymer Extraction) technology and TiPSS (Tilted Plate Separation Systems) technology. MPPE is one of the proven technologies in the world capable of removing dissolved and dispersed hydrocarbons, used to treat gas-produced water and clean up harmful discharges. TiPSS technology is used widely in numerous industries such as oil and gas, food, textile, automotive, steel and groundwater remediation to separate contaminants based on particle size and density differences.

Energy, Oil & Gas last spoke with Erik back in March 2015 and a year on he is happy

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to report another busy year. “We have been primarily focused on developing the Inpex Ichthys project, which is the most complex and technically demanding challenge we’ve ever faced as a company,” he says. “The level of specification is extremely high and the materials required are very difficult to purchase so with everyone on the project trying to buy them the market has become stressed. Therefore, it has been a struggle for our suppliers, and it has been a struggle for us understanding the exact specifications and ensuring we can deliver on them in time.”

INPEX’s Ichthys LNG project off the west coast of Australia is one of the largest hydrocarbon liquid discoveries in the region in 40 years, and its construction is currently ranked amongst the most significant oil and gas projects in the world. MPP Systems was awarded the contract by DSME shipbuilders to supply a MPPE unit to a brand new FPSO vessel, and with such high standards to meet the company has been able to demonstrate its leading operational expertise in developing and delivering such a complex system. “A number of changes were made throughout the project, many more than usual,” Erik continues. “For instance, the total number of on/off valves and instruments in the module has doubled since the initial instruction, but this still had to be designed into the same footprint. We contracted the final construction of the module to Hollandia Offshore in the Netherlands who only had a 12-month window (March 2015 to March 2016) to complete it, so that was another challenge.

“The unit has now been built and is currently on its way to Korea to be installed but I don’t

PROFILE

think we would have managed it without the close co-operation between us, Veolia, INPEX, DSME and Hollandia. In total it has involved about 30,000 man hours from Veolia for the fabrication and an additional 200,000 from Hollandia to build the module.”

Ichthys is a hugely important project for MPP Systems, especially amidst the internationally challenging oil and gas market. However, despite the pressures, Erik is confident that the gas industry will eventually pick itself back up and activity surrounding future projects in Mozambique and the Leviathan project in Israel is positive. Critical for MPP, is its unique position as one of the only solutions in the global market to meet the stringent zero discharge legislation that is being steadily applied to key markets around the world. Erik highlights that legislation is the company’s biggest opportunity and is an area where it is looking to capitalise with future developments.

“In the background we are working on a similar technology to remove other components from hydrocarbons such as heavy metals,” he

VWS MPP Systems

explains. “Metals like mercury are almost always present in gas produced water and feature highly on environmental concerns for discharged water. However, there is currently no solution to remove these and we are trying to change this.

Crucially, if we can develop a viable solution then legislation can follow and it will open up a big opportunity for us.”

MPP Systems is a highly unique company demonstrating the opportunities that can result from offering a quality and proven technology that is unrivalled in performance and availability.

Maintaining this position through continued development and market expansion therefore is a key part of its vision as it looks ahead. Erik talks positively about pushing its technology into new markets such as gas storage and tank cleaning, and even diversifying beyond oil and gas into groundwater remediation and other markets where water treatment is equally as important. Ultimately, as environmental legislation continues to put pressure on gas operators around the world, MPP Systems is perfectly positioned to provide the best solution.

VWS MPP Systems B.V. vwsmppsystems.com

Services Specialist manufacturer of wastewater treatment systems for oil and gas applications

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name Trusted

Based at the

Waterloo Industrial Estate in Pembroke Dock, the Welsh business Ledwood Mechanical Engineering (Ledwood) represents a market leader in delivering complex projects in support of the energy and process sectors. The company’s competence is applied to a number of market sectors, including heavy industry, allowing Ledwood to design, procure, fabricate, protective coat, construct, install and project manage the delivery of complex plant internationally. Ledwood specialises in handling complex, large facilities such as oil, petrochemical, gas processing and power generation, with an enviable track record of delivering quality projects on time, to budget and with an unbeaten safety record.

“One of the main reasons behind the foundation of the company was to service four large oil refineries that existed within its locality with engineering, fabrication, installation services, as well as maintenance and operational

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support. These refineries were all major facilities owned by international oil companies and it was later realised that we could further service refineries throughout the UK and indeed the world,” explains Managing Director, Nick Revell.

“Ledwood has continued to gain market share while entering into new markets within its traditional business sectors. Our skill sets and capabilities allow us to participate at the initial stages of a project lifecycle, which positions us for delivering the engineering, procurement and fabrication. We also have another business within the group, which is called Ledwood Protective Coatings (LPC), this business provides different types of protective coatings, including Thermal Spraying and Fireproof systems. LPC is complementary and vertically integrated in this respect and once we have completed the fabrication and coatings, we undertake the transportation wherever that may be prior to executing installation.”

Ledwood has represented a trusted name in engineering excellence for more than three decades, but it was during 2000 the company reformed under the name Ledwood Mechanical Engineering, supported by investment from the external shareholders. With this backing the business has continued to thrive and has become involved in a range of major engineering projects globally in recent years. Its ten-acre dockside location puts Ledwood in an ideal position to supply vital plant and equipment to clients worldwide via marine transport.

This has allowed clients within the offshore oil and gas exploration sector to take advantage of the company’s strategic location and core competence, through the delivery of equipment bound for oil rigs and similar installations and the shipment of modules globally.

During 2010 Ledwood was restructured under new ownership, with the business maintaining its independence by becoming owned by its management team. Today Ledwood continues to operate from its substantial engineering facilities in Pembroke Dock that incorporate workshops and paint facilities designed to accommodate major module production. Just adjacent to Ledwood is the Cleddau estuary, which offers quayside facilities with an 11-metre water depth for shipping. “The ownership of the business is all within the management team. Prior to 2010 there were some external investors in the company and to further the focus of the business we have reorganised so that there are no longer any external investors involved. We also have

PROFILE

zero debts meaning that we are not leveraged at all, which is a great position to be in,” Nick says.

“Over the years we have also brought a lot of new skills into the business, because at the end of 2010 there were a lot of personnel within the company who were reaching the end of their careers. We have now brought in the ‘next generation’ to a certain extent. This didn’t happen overnight, it has been a gradual process and we have continued to grow organically at the same time.”

As the company has continued to grow and diversify into new market sectors, Ledwood has made several investments into new equipment and facilities to ensure that it is able to offer best-in-class solutions to its new and existing clients. Recently the decision was taken to invest £1.5 million into the business for new coating equipment to expand the company’s overall service portfolio. “The decision to make this investment was primarily driven by wanting to change our profile and level of accreditation.

One aspect of our accreditation was focused on health and safety and environmental concerns and at the time we did have existing painting and coating facilities on site that were operated by another company owned by Ledwood, but the facility would not have met new legislative requirements. We decided that we would make an investment in new equipment to be self-sufficient, rather than having our own fabricated items coated by another company.

As result of this we have been able to secure further work from other clients. It is again very complementary to our overall skill set and helps us to deliver an extensive and more comprehensive service portfolio with vertical integration,” Nick elaborates.

“We have also opened up a new facility located in Teesside, which provides very much the same services that we have in our head office in Pembroke. This has given us greater geographic representation and has opened up our client base,” he adds. “The new site also improves our expertise and capability and we have certainly secured more market share in the petrochemical sector as a result of having a presence in the Teesside area. Furthermore we have also won additional work in onshore gas reception facilities that are operated by international offshore gas companies.”

Although the company’s traditional markets in the on shore oil and gas sectors are currently depressed owing to the low cost of oil, Ledwood has remained buoyant due to its broad customer base and diversification into the steel and renewable energy sectors. Moving forward

Ledwood Mechanical Engineering

Nick is presently on the Advisory Board for the planned Tidal Bay project in Swansea and believes that Ledwood is in an excellent position to supply this and other projects over the coming three to five years. “Around three years ago I had an introduction to the Tidal Bay project’s owners, Tidal Lagoon Power and the company asked me to assist on a steering committee, which I am today part of. Our facilities in Pembroke are on the quayside and some of the items that we have tendered are not road transportable and need to be fabricated and assembled near the quayside to be shipped to the final destination,” he concludes. “Over the next 12 months we have a very good order book and our revenue is set to be up on 2015.

We are focused on sustainability and underpin this with the competence of our personnel and the services that we provide in a cost-effective manner. We have an exemplary safety record, which is vital in the market sectors in which we are active and believe that we represent the company of choice for our clients.”

Ledwood Mechanical Engineering ledwood.co.uk

Services Turnkey engineering, procurement, fabrication, protective coatings and construction

ENERGY,oil&gas

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High integrity fasteners With close to three decades

KAL Technology KAL Technology produce fully traceable components to customer drawings and international industry standards in materials from B7/L7 and EN24 steels to heat resistant alloys and exotics including S32760, Inconel, Titanium and many others.

We specialise in threaded components for the energy and construction industries, often delivering custom solutions on very short lead times. We work extensively with leading fastener companies such as BST, where a focus on price, quality and on time delivery are paramount to customer satisfaction and success.

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of industry experience, BST Supplies Ltd (BST) has developed a reputation as a leading independent manufacturer of top quality and fully traceable, high-integrity fasteners that are used in a host of critical applications in harsh environments. The business was founded by its current owners Tony Lawless and Stuart Mee during 1987 and has since grown to employ some 110 members of staff with a turnover of over £10 million per annum.

The company was previously featured in Energy, Oil & Gas magazine during October 2015, during which time BST had recently opened a new in-house testing laboratory. Over the following months the outlook has remained promising for the company, with positive audit results and the on-going development of its on-site facilities. “BST has seen customer growth since 2015, securing additional major OEM approvals in several market sectors as a direct result of audits to on site processes and working practice,” Sales Manager, Simon Peaty explains.

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“The company has also seen its in-house testing laboratory gain BSEN 17025 approval for a number of in-house testing processes and has recently installed a self-sufficient NDT facility with operators fully qualified to both PCN and ASNT Levels.”

BST Supplies manufactures a comprehensive portfolio of premium fastenings and machined components, whether they’re dimensionally standard components made from specialist materials, or unique design components constructed from standard materials. Since the business was founded, BST has maintained a high level of focus in delivering high-integrity, superior quality engineering and fully traceable nuts, bolts, fasteners and CNC precision machined components. Its proven reputation in supplying world-class engineered products has allowed BST to build a strong presence within some of the world’s most demanding market sectors, including the oil and gas, nuclear, defence and marine and power generation industries.

PROFILE

While BST does not design the fastenings that it manufactures, it does provide professional and expert guidance to the development of new components to meet new industry regulations.

Therefore the company is able to offer clients confident peace of mind and the guarantee that their safety critical applications will be fully protected. BST fastenings are high integrity, full traceable and manufactured using only the highest quality EU raw materials. It is not uncommon for clients to demand fastenings that will last for as long as 25-30 years and that are often incorporated into equipment that is not easily accessible, meaning that the exercise of reaching units for replacement or repair is very costly. As such, clients operating within technically demanding and remote environments recognise the value in investing into a reliable fastening solution that provides the dependable and robust nature that they need.

Throughout its history BST has continued to invest into the development of the business, beginning with the purchase of modern CNC multi axis machines and the establishment of a full in-house manufacturing plant early on in the company’s development. During the subsequent years, as BST has continued to grow the company has further re-invested a significant percentage of its profits in to the acquisition of new machines and infrastructure. In recent years, these have included the introduction of a new computer system and the building of its on-site UKAS approved laboratory. By maintaining a full manufacturing facility, BST is able to control the entire manufacturing process, from sourcing EU raw materials to delivering the final fully certified product.

In the past decade operators within the oil and gas industry in particular have further recognised the importance of high-integrity fasteners in the protecting their assets, resulting in significant growth for BST in this sector as a trusted supplier. “Our business has seen considerable growth as a supplier to the oil, gas and subsea markets over recent years, with EU raw materials and fully traceable fasteners being increasingly in demand. BST has become a supply partner to companies such as FMC Technologies, Aker Solutions and GE,” Simon reveals. “We have as a result of ‘dedicated on time delivery’ and ‘right first time’ quality expectations, seen global growth of BST’s product to customers with a global presence.”

Its dedication to providing the highest levels of excellence from the board room to the shop floor, has established BST as a world-leader in the supply of premium quality fastenings that

continues to welcome new customers. While the market remains depressed in the wake of the current low price of oil, the company has taken the opportunity to consolidate its leading market position to enable it to further develop its service offering. “In the current market, BST has taken the decision to restructure itself and invest in capital equipment. We have used this lean period to improve the strength of our internal team, make additions to CNC machine equipment / software and set up our own NDT facility so that we can offer our customers a greater service from order placement right through to final delivery,” Simon concludes.

“BST are working toward gaining API 20E accreditation to further expand our portfolio of product to an ever-growing customer base.

Our customer is at the heart of everything we do, as an independently owned company we believe that investment is the key to the future success. As such we are willing to position our business ahead of our competition by continued investment in the company’s people, processes and equipment.”

BST Supplies

BST Supplies Ltd bstsupplies.com

Services Fully traceable, high-integrity special fasteners

ENERGY,oil&gas

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A pipeline

network

Welding Company With its head office based in Antwerp, Belgium, Welding Company is one of Europe’s leading suppliers in the heavy steel processing industry. Skilled technicians and engineers together with a team of technical consultants provide machinery and expertise for Europe’s largest projects.

Whether it is oil and gas, petrochemical, renewable energy or heavy wall construction, the business ensures the best solution for every industry.

Welding Company sells and rents Miller welding equipment, induction machinery and welding and cutting automation. It is specialised in induction equipment and has the largest rental fleet on the European mainland.

After thoroughly listening to its customers, Welding Company has developed the most versatile digital welding bug on the market: The Firefly.

It can be customised to fit your project and improve your overall welding quality. Clients can lower production costs and reduce construction time by using this easy to handle automation.

Welding Company is an expert in turnkey solutions and is happy to help you with all of your welding and heating challenges.

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Over the course of more than

six decades, PPS Pipeline Systems (PPS) has grown from a mid-size service provider to an internationally acknowledged pipeline and plant builder. The roots of the business date back to 1954 and the foundation of Winter & Co – a core division of modern PPS – as a service company for North Germany’s growing oil and gas industry. PPS Pipeline Systems GmbH was finally founded during 1999, through a spin-off of the pipeline and plant construction unit of Preussag Water and Pipeline Engineering GmbH and has continued to develop as a leading supplier for the gas and oil industry. Although today around 80 per cent of its business is still generated within the oil and gas market, PPS is also highly renowned by companies operating within the chemical and water supply industries.

In 2002 HABAU Hoch- und Tiefbaugesellschaft mbH of Austria (HABAU) acquired a 100 per cent interest in PPS and moved to integrate its Eastern European and Russian activities into the business. The growth of the company and its ability to respond quickly to the needs of its clients were further enhanced during 2013 through the creation of the PPS Western Europe Business Unit, including new offices in Belgium and France that also incorporated the organisation’s activities in the UK. The scope of professional services provided by PPS today encompasses engineering, delivery, construction, and commissioning of pipelines and plants in the sectors of pumping, transport, storage, and distribution of oil, gas, and other media. As a general contractor the company further takes on an important role in the execution of large-scale projects across Europe

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and as part of the HABAU Group, PPS can also help to deliver a broad base of further technically demanding construction projects.

The PPS Group currently employs approximately 730 workers across the business and posted construction sales of circa €170 million for the fiscal year 2014-2015. To better serve its customers, PPS today divides its services across several divisions comprised of pipeline and plant construction, Winter Rohrbau, foreign units, PPS Western Europe, commercial and machine technical units. These units all ensure that PPS is able to supply leading technical solutions, where and when they are required.

Across the group, PPS remains in high demand all over Europe to undertake technically challenging projects and to act in the role of general contractor. Within its pipeline and plant construction division for example, the company’s daily business includes pipelines of every diameter, pressure rating and media of every type, open and closed crossing processes for streets, railways, and rivers - including the construction of pumping stations stations. In the field of plant construction the company’s services include the building of compressor stations, terminals, gas processing plants, measuring and regulation systems. Additionally, PPS’ services in plant construction also include the construction of underground storage caverns and since 2003 for example, the company has been involved in the development of several storage caverns for Essent, Nuon and Eneco.

Within Germany, the company’s Winter Rohrbau business unit offers customers customised solutions relating to pipes that are developed and realised in accordance to the client’s requirements. Winter Rohrbau manages plants throughout Germany that enable it to quickly reach its clients, with offices in Quakenbrück,

PROFILE

Ingolstadt, Landau Palintinate, Leipzig, Sande/ Wilhelmshaven and Stade. The range of projects undertaken by Winter Rohrbau includes gas plant construction, buried pipeline construction, industrial plant construction and maintenance and service operations. Furthermore, the unit is also able to provide EPC services during the full duration of site operations.

Throughout Western Europe, PPS manages a network of business locations that allow the company to implement projects across the region and to ensure that contracts are smoothly executed at all project phases. Its bases in Drongen, Belgium; Astley, UK; and Entzheim, France ensure that PPS can act as a trusted EPC contractor and to provide plant construction, buried pipe and industrial power plant construction. In addition to its comprehensive package of EPC and construction services, PPS Western Europe is also able to undertake special projects including API pipelines for mines and mining operations, pump skids for liquid media, construction and repairs of pressure vessels, and the repair of separators.

PPS Pipeline Systems

Further to its German and Eastern European divisions, PPS has also successfully positioned itself as a complete systems supplier for large plants and pipelines at the international level.

Its subsidiaries and partnerships in England, Benelux, France, Austria, Lithuania, Romania and Italy have already realised a number of challenging projects and have proven to be reliable and expert partners for the company’s customers. While extensive investments in the expansion of pipeline infrastructure are planned to enable Europe to tap into the crude oil and natural gas reserves of the Caspian Sea and Middle East regions, PPS is present within this market with its location in Istanbul and is focused on the development of pipeline, station, and gas storage projects.

As such PPS represents a turnkey partner in the construction of pipeline and plant projects, which will prove to be invaluable to clients both in the present and in the future as Europe’s need for pipeline infrastructure continues to grow.

The company’s daily business includes pipelines of every diameter, pressure rating and media of every type, open and closed crossing processes for streets, railways, and rivers - including the construction of pumping stations stations PPS Pipeline Systems ppspipelinesystems.com

Services Pipeline and plant construction solutions

ENERGY,oil&gas

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85

A gripping

answer Beginning operations

as Fa. A v/d Grijp during 1928 as a company focused on the selling and renting of flat top barges and houseboats, today the VandeGrijp Group has grown into an internationally operating company specialised in the production of steel tubes, piles, tubular constructions and the rental of pipeline systems and floating equipment for both onshore and offshore projects. The group currently comprises two companies, with one side of the business focused on manufacturing while the other operates within the rental market.

VandeGrijp was previously featured in Energy, Oil & Gas magazine in April 2015, during which time Managing Director, Paul Nederlof discussed the on-going development of a new pile hammer and the company has continued to progress positively in the months following its last appearance despite challenging market conditions. “Over the past 12 months we have completed the building of an innovative new pile hammer for a company that was developing this technology for the offshore wind sector. The pile hammer itself was delivered on time and was subsequently successfully tested. In spite of difficulties in the oil and gas market we completed a lot of work for offshore contractors and dredging companies, including the delivery of several spreader bars, pile followers and spud poles,” Paul elaborates. “Market conditions are not favourable since investments within the oil industry are significantly down and several big dredging projects are nearing an end, further

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reducing market investments in that industry.

The offshore wind industry however is still booming for many companies, which generates a market for tools and repairs that has continued to create work for us and we completed 475 projects during 2015. From small to large projects, our expertise is in the ability to carry out so many diverse projects at the same time.

The eye-catching projects last year naturally were the larger ones, like the pile hammer and the spreader bars, but the lower pipes and dredger board lines that we constructed were no mean feat either!”

Across all of it operations, VandeGrijp maintains the highest levels of quality and customer service and acts in accordance to ISO 9001 and ISO 3834-2 specifications and is fully EN-1090 qualified. The company further assures the quality of its output through detailed analysis of its production process and continually works to find ways to improve even further. VandeGrijp also currently has more than 150 weld qualifications and encourages the continuous education of its employees. At present it employs some 50 people plus subcontractors and maintains property that encompasses 85,000m2 of space, including three well-equipped production halls and a harbour with its own RORO quay. The company’s 3000m2 production hall is used for the construction of limited series and custom pieces while its hall with the smallest area contains a highly efficient pipe mill where VandeGrijp produces flanged pipes with a capacity of up to 4.5km per month as required.

The company’s third production hall has a floor space of 2600m2 but has increased height that

PROFILE

allows it to be used for the production of large tube sections up to 10,000mm in diameter.

“Our manufacturing facilities are located close to Rotterdam harbour providing good access to the world by road or water and we have our own harbour with RORO load out quay and 7000 square metres of covered production area.

The covered production area contains three roll bending machines with varying bending capacities of up to 150mm wall thickness and there is also a pipe mill for flanged dredge lines or pipes of up to 25mm wall thickness,” Paul says. “The main strength of VandeGrijp is our flexibility in terms of timescales and varying types of project. We are capable of delivering thick walled tubes within very short time periods, but at the same can also fabricate more complex projects.”

On the rental side of the business, VandeGrijp maintains a comprehensive fleet of equipment, including dredge line components that are ready for deployment following the culmination of several rental

VandeGrijp IGS

projects during 2015. Within both its rental and manufacturing operations it is the aim of the company to be able to deliver an expert service extremely quickly, therefore in addition to its stock of rental equipment VandeGrijp maintains close relationships with trusted steel suppliers to ensure the rapid turnover of manufactured projects.

During the duration of 2016 and beyond VandeGrijp will continue to work to deliver expert solutions in rented and manufactured pipes and equipment, while ensuring the highest levels of customer service. “The main focus of our company during the next 12 months is to continue to deliver quality products matching our customer’s specifications on time - every time. We aim to continuously reduce the fabrication period between order and delivery, thus helping our customers reach their goals,” Paul concludes. “Our long term strategy is to further strengthen our flexibility and be a smarter part in our customer’s supply chain.”

VandeGrijp IGS B.V. vandegrijp.com

Services Equipment manufacture and rental

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87

An offshore

partner From its headquarters

in Almaty, Kazakhstan, Caspian Offshore Construction (COC) owns and operates a fleet of 43 vessels that provide marine fleet operation and management services to offshore oil and gas industry. The business was incorporated during 2003 and finally commenced operations in 2005, following the acquisition, refurbishment and complete overhaul of the Shkotov and Caspian Princess floating living quarters. Today COC operates as a leading provider of marine fleet operation and management services in the North Caspian Sea as a 100 per cent private Kazakhstani entity, with offices in Aktau and Bautino in Kazakhstan, Astrakhan in Russia, Baku in Azerbaijan and Turkmenbashi In Turkmenistan.

Caspian Offshore Construction was previously featured in Energy, Oil & Gas magazine in March 2015. During the company’s previous profile, Aktau branch director, Stanislav Belov discuss on-going events in the company including the commencement of construction of a new operating base in Bautino incorporating accommodation, canteen and workshop facilities, the delivery of its new multicat Kulan and Kanysh Satpayev survey vessels and the further modernisation of its Shkotov and Caspian Princess floating living quarters.

Despite the impact of the depressed price of oil, COC has progressed well and remained highly active during the past 12 months. Further to completing the construction of a new offshore support base and continuing to expand its fleet of vessels, the company has also won a significant tender that will provide the business with activity for several years.

“Developments have been slow because the oil

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and gas business is suffering due to the low price of crude oil. The Caspian region is no exception and there has been a slowdown of the two major oil and gas projects that form our primary business, however, despite stiff competition, the company overcame to win a tender to manage a new vessel for Van Oord which operates as a Dutch dredging company,” reveals COC Deputy General Director, Shaun Daniels. “This vessel is an ultra shallow draught multi-cast general purpose tug called the Arlan. The work is to support the dredging of a channel of over 60 Km from the eastern approaches of the Caspian Sea, with the channel intended to land at shore at a place called Prorva. There is a facility also to be built at Prorva by the Tengizchevroil (TCO) Future Growth Project, which will serve as the offloading facility for the expansion of the Tengiz refinery. TCO are going to offload around 60 major modules using tugs, barges and speciality purpose-built vessels and the contract is set to last for approximately three years. It has allowed us to construct a new build vessel, at the Vard shipyard in Brăila, Romania. The vessel was built according to a design produced by Ship Design Group (SDG) and was part of a very competitive tender that we were proud to win.”

On October 2, 2015 COC also accepted delivery of the latest ship to join the company’s fleet of owned vessels. The ARLAN ultra shallow draft multi-cat AHT was ordered during February 2015 and constructed at the Vard Brăila shipyard. At a cost of $2.4 million, ARLAN was successfully launched during August 2015 to begin an extensive series of sea trials before IDU Shipping finally delivered the vessel from Romania to Kazakhstan. Co-operation between COC and the Vard shipyard dates back to 2009, when a contract for the ice-breaking standby support vessels of the ‘Mangistau’ series was closed. During the period between 2009 and 2011 five Mangistau vessels were constructed, while another survey vessel, Kanysh Satpayev, was built later in 2014.

“Kanysh Satpayev cost $9.2 million and is capable of carrying 20 scientists as well as ten crew. She was specifically designed to deploy various types of survey equipment for ecological, environmental and geophysical surveys. She is built to the latest standards with modern equipment and facilities onboard including laboratories and accommodation space with onboard recreation for scientists and the ship’s crew,” Shaun elaborates. “She can operate in as little as 1.5 metres of water, which is a must for

PROFILE

the client because their operating depths run from three metres to nothing. She is the most modern research vessel in the Caspian Sea at present and I would say the most versatile vessel in terms of research operations.”

Further to expanding its presence through the award of competitive new tender and the arrival of the ARLAN multi-cat AHT, COC has also invested in a new offshore support base in Bautino, Kazakhstan. The new base is comprised of three complexes that include office, hotel, crew change, canteen and gym facilities, which ensure that the base is fully equipped to provide accommodation to crew and engineering staff travelling through the region. Additionally, the Bautino complex also includes an education facility that offers expert training to both COC staff and external organisations as well as educational programmes for the local community.

Through its continued investment into the company’s facilities, COC is well prepared to carry out its current tenders while it continues to weather the tough trading conditions brought

Caspian Offshore Construction

on by the low price of oil. Over the coming years the business will seek to capitalise on its current success and continue to distinguish itself as a trusted partner within the Caspian Sea, which it will achieve through further investment in its people to match that of its fleet. “This is a fully Kazakh owned company and we have 60 Kazakh nationals currently undergoing various education programmes to get them qualified to progress into positions we have identified suitable for their skill sets,” Shaun concludes.

“Further to the Caspian Sea, we are looking at international markets. These include areas such as Venezuela, South East Asia and Africa and the challenge for the future is to identify opportunities within those markets and open up offices within those regions.”

Caspian Offshore Construction coc.kz

Services Marine fleet operation and management

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89

Bursting with

energy Delivering 24 hour service, seven days a week, 365 days a year for more than six decades, Bohlen & Doyen GmbH, previously known as Bohlen & Doyen GmbH Bauuternehmung GmbH, has long been renowned for its outstanding expertise in a comprehensive range of services for sectors including gas, water, waste water, electricity, oil and telecommunications.

Having set up a nationwide presence, the company is able to offer constant availability to customers while operating as a highly capable partner and complete service provider.

With a decentralised structure in place, the company guarantees rapid availability for clients

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requiring fully qualified personnel and the right equipment for each unique task. To ensure this way of operating remains at optimum levels of efficiency, Bohlen & Doyen’s permanently manned control centre in Wiesmoor co-ordinates the nationwide on-call services and makes contact with each customer’s contact person. This ongoing flexibility and co-operation with clients has created a relationship built on trust, reliability, quality and the ability to develop the best possible solutions.

To further enhance its reliability, the company’s on-call team and fault rectification service ensures grids continue to run smoothly and customers can remain competitive. This strong customer focus is merged with a broad service portfolio for the energy industry, which includes its own spare parts stock, cable measuring vehicles, 50 specially equipped vehicles and more than 150 technicians; all of which help ensure Bohlen & Doyen competitively meet the needs of those in the fields of electricity, gas, water and telecommunications.

Using its many years of experience in the power industry, the company has progressed into the offshore renewable sector where it offers grid connection and services to offshore platforms.

Indeed, the complete package is offered to

PROFILE

customers, which includes the laying of onshore and offshore cables as well as the connection of offshore wind farms to substations; this applies to all voltage levels. For this challenging industry, the company has its own high-quality equipment and a selection of well trained personnel to ensure projects are carried out in the most reliable and quality conscious manner.

Furthermore, the company works closely with other departments within its parent company, SAG Group, to take care of servicing and maintenance in this sector.

Committed to its motto of ‘Everything from a single source’ for all voltage levels, Bohlen & Doyen delivers a complete service to its clients who include, but are not limited to, energy suppliers and/or grid operators who are legally required to connect these wind power systems and cable manufacturers, private investors and regional energy suppliers. In more detail, these services include underwater cable-laying with its own ships and laying equipment such as vertical injectors, jetting sledges, vibration swords, vibration ploughs and chain ploughs; implementation planning, infield cabling of an offshore windfarm, civil engineering work, horizontal drilling technology, cable laying and cable installation and cable terminations up to 145 kV. As wind energy is one of the mainstays of renewable energy in Germany, the company is well versed in overcoming the challenges in connecting wind farms to the main grid, particularly when in harsh environments offshore. Operating as a general contractor, Bohlen & Doyen takes care of everything in the realms of configuration and set-up of the electro-technical infrastructure on offshore wind farms. For these specific projects, the company, alongside SAG, delivers internal windfarm cabling, transfer station, substations and high voltage overhead lines and cable systems. Once grid connection is complete, the company is able to take over the operation of the electro-technical infrastructure and monitor substations from its logistic center. Furthermore, it can deliver all maintenance, fault clearing, overhauling and repair services.

A recent project for the dynamic and dedicated firm was awarded in February 2015 from Prysmian, a market-leading cable manufacturer for the connection of the wind farm cluster Westlich Adlegrund in the Baltic Sea. Connected via HVAC cable systems, the cluster’s routes on-shore end in the 50Hertz transformer substation in Lubmin. Approximately 39 km

Bohlen & Doyen

of the cables, which are 90 km long on the sea and three km on-shore, will be laid by SAG Group, with construction of the grid connection scheduled to reach completion in the final quarter of 2018. Worth approximately 130 million euros, the order shows the confidence Prysmian has in the technical expertise of both SAG Group and Bohlen & Doyen and will further enable the company to cement its reputation in the offshore wind sector.

With its own fleet of vessels, trained personnel in the area of cable installation and cable and the ability to carry out cable checks with its own cable test vehicles, Bohlen & Doyen is truly able to carry out a one-stop-shop solution to customers seeking interdisciplinary clientspecific solutions while also delivering full documentation from A to Z. These capabilities, merged with a long history for reliability and a customer-centric approach to business, means Bohlen & Doylen is certain go from strength to strength for many decades to come.

Bohlen & Doyen GmbH bohlen-doyen.com

Services Digital documentation, electrical tests, EMC service, gas detection, cable measuring and other energy-related services

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grow Power to

The Cummins brand is recognised

Below Rachid Ouenniche, MD

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around the world as a leader in the design and manufacture of heavy-duty diesel and natural gas power solutions. With its home in Indiana, USA, the company currently employs 55,000 people around the world in 190 countries and in 2015 achieved sales of $19.1 billion. Part of being able to deliver on such a global scale is Cummins’ extensive network, which includes approximately 600 company-owned and independent distributor locations and around 7200 dealerships.

The company took its first steps into the Middle East in 1956, appointing GCC Olayan as its first independent distributor in Saudi Arabia.

Over the years more distributors followed, until in 2000 Cummins established its first company-owned business in the UAE. In 2014, the Cummins Middle East ABO (Area Business Organisation) was set up and headquartered in the UAE. The ABO consists of all Cummins business units, each represented in the region by a commercial leadership team.

Energy, Oil & Gas last featured Cummins Middle East back in April 2015, and a year on MD Rachid Ouenniche is happy to report a strong 12 months. “It has been a very successful year for Cummins in the Middle East,” he says.

“We gained significant market share and grew across all segments. In particular, we experienced double digit growth in our power generation segment, a market that actually shrank overall. As a matter of fact, the Middle East was the fastest energy-oil-gas.com

growing region for Cummins’ whole power generation division. This is due to our focus on adding value to our customers by providing engineered solutions. In 2015, to support this, we doubled our win ratio for turnkey power generation projects from two years ago and expanded our engineering group with significant investments in talent acquisition.”

In general the Middle Eastern region is a lucrative market with widespread economic development taking place across a number of countries. However, Rachid notes that with the recent drop in oil prices, governments in the gulf region have reigned in infrastructure investment that has seen a softening to Cummins’ power generation business. Yet, with significant power plant projects won across a variety of sectors from infrastructure, healthcare and airport developments to manufacturing and residential complexes, the opportunities to grow still remain.

“The oil and gas industry, which fuels much of this region’s growth, is a cyclical market and is bound to recover in the next few quarters and our ability to gain market share will allow us to continue capitalising on the momentum we have gained over the last couple of years as it does so,” he says.

Indeed, despite the prospect of challenging market conditions, Cummins continues to invest heavily into the development of its business in the Middle East. The company has become an engineering hub for the international group, and it has plans to expand its scope beyond the region to support other developing markets

PROFILE

around the world. It is also home to a Cummins High Horsepower Master Rebuild Centre, part of a global network of purpose-built facilities designed to provide high quality, high volume rebuilds for Cummins 19 to 95 litre engines.

“All engines of this sort require a rebuild at some point in the life cycle, so we moved away from a workshop environment into a manufacturing environment that has a production line and enables us to provide a complete rebuild in one location,” Rachid outlines. “We believe this is one of the best rebuild centres within Cummins Inc and the best in the region – it is generally benchmarked by other distributors around the world as best in class. Volumes have continued to grow as customers’ confidence that their Cummins engines will have much longer durability when they use this centre also rises.”

Developing the scope and strength of its distribution capabilities has also been the focus of investment over recent years in the Middle East. In 2012, for example, it established a joint venture with Jaidah Group, which has represented Cummins in Qatar for 35 years.

“Cummins manages the venture, using its people, systems and processes, allowing us to increase the focus on our customers,” Rachid continues. “It’s a much more efficient and effective model that allows us direct access to other Cummins business units that manufacture the products we sell and service in the region.”

More recently, in March 2016, the company announced another joint venture, this time with The Olayan Group, which has distributed Cummins products in Saudi Arabia since 1956. The move to create Cummins Arabia is significant in that it consolidates the distribution

Cummins Middle East

of Cummins products across the UAE, Saudi Arabia and Kuwait, which represent three of the biggest markets in the Middle East. The partnership also allows Cummins to greatly expand access to the Saudi and Kuwaiti markets.

Another key part of Cummins Middle East’s development of recent years has been its exemplary approach to increasing the representation of women in the workplace. The company has doubled its ratio of women over the last four years since it launched its internship programme. In 2015, 16 of the 18 annual interns brought on board were female and the business is now working with five regional universities to develop the scheme. “Crucially, what started out as an initiative to increase the representation of women in the workplace has now developed to become a great pipeline of future leaders,” Rachid highlights. “This is important, as whilst we have the international brand recognition of Cummins behind us, it is the dedicated, innovative and agile workforce that gives us a competitive advantage in the region so supporting their development opportunities is key to our continued success.”

The future for Cummins in the Middle East looks bright then. Rachid notes that over the next 12 months continuing with the current growth strategy will be the primary focus.

In particular, will be the integration of the Cummins Arabia joint venture, which is due to become operational by the second half of 2016 and which will improve the company’s service capabilities, especially in the oil and gas sector. “We also aim to continue market share growth in our power generation segment over the coming months despite what appears to be a shrinking market,” Rachid concludes.

Cummins Middle East middleeast.cummins.com

Services Middle Eastern business of global power leader, Cummins

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Expanding

focus “

Wilhelm Group started off in the 1980s as a small welding consumables distributor to various organisations in the oil and gas industry,” begins the Singapore-based company’s Managing Director William Chan. “With only three staff and modest annual turnover, we have grown significantly over the last 35 years.” Indeed, now turning over in excess of 15 million USD a year and employing 150 people under four subsidiaries in Singapore, Malaysia, Shanghai and Suzhou, growth has certainly been a defining piece of the company’s history.

Following approximately 20 million USD worth of investment into equipment and facilities, Wilhelm Group now offers a complete range of welding solutions to oil and gas end users and OEMs in the region.

“This includes advanced cladding services in hot-wire TIG (tungsten inert gas) and a laser cladding process, plus CNC precision machining with testing capabilities,” William outlines. “We offer turnkey solutions for corrosion resistant, wear and tear applications in the exploration, drilling and production of oil and gas. This helps to boost performance and prolong the lifetime of exploration tools, as well as surface and subsea components.”

Approximately 90 per cent of the company’s revenue stems from the oil and gas sector across

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Singapore, Malaysia, China and the Philippines.

Others include revenue from the general engineering, manufacturing, shipbuilding and offshore service customers.

Illustrating the high level of technical work carried out by Wilhelm Group is a recent development project carried out in collaboration with Emerson Process Management.

“Our most notable achievement recently, was the cladding of flow control valves,” William explains. “Through the development of new welding techniques and methods, we successfully achieved 100 per cent fullyautomated internal cladding for Fisher flow control valves with sizes ranging from 8-24 inch.

Previously, competitors were only able to achieve less than 40 per cent automated cladding, so this is the first of its kind in the Asia-Pacific region.”

Other recent developments within the group include the investment into a new batch of CNC systems at its newest subsidiary in Malaysia, set up in end 2014. “This is to complement our cladding capability so that we can offer turnkey solutions. It also enhances our ability to take on machining of more complex components and parts in the future – particularly when the oil price picks up,” adds William.

The challenges of the oil and gas market is faced by every company operating in this industry, not only Wilhelm Group. William shared, “people have realised that the oil and gas crisis might last for some time and it will be a game of who is able to wait out this crisis. It is therefore important to restructure and consolidate. Reposition yourself based on what you do best today as well as seek new opportunities going forward. Companies that invest in marketing and development during the tough times can potentially increase market share, putting them in a great position when the economy picks up again,” he says.

For Wilhelm Group, the approach is continued investment into new technologies and new solutions that can boost its competencies when the market returns to health. “With the present downturn, we are focusing on consolidating our resources,” William continues. “The aim is to look for a new direction, new growth opportunity and a competitive advantage in the welding market.

There is no doubt that the industry will certainly look very different in ten years’ time and we have to reinvent the way things are done now so that we can remain competitive.”

Wilhelm Group has a strong reputation

PROFILE

within its core markets. The company’s experience in the industry has resulted in an ingrained understanding of the high costs and risks associated with the infrastructure, extraction, transport and maintenance activities facing operators. Therefore, as a subcontractor providing value-added services, it is critical that it can offer high precision and quality services to support this as best as possible.

“Every mistake can have a major impact on profitability, productivity and safety,”

wilhelm group

highlights William. “With this in mind, we strongly believe in upholding the quality of the services we provide and represent. We also believe in adding value to the services we offer. Pre-sales consultation and timely delivery are what we regard as value-added services that customers are actively looking for today. Only by providing these are we able to secure the trust of customers and translate this into long-term partnerships.”

This attitude will be critical for Wilhelm Group to continue achieving its steady growth levels. Looking ahead, William is keen to take the company’s experience as a specialist welding provider to diversify into new industries and new markets around the world. “We want to diversify into other industries that also require high precision welding besides just oil and gas,” he concludes. “We aim to break into the much larger American and South American markets within the next three years. In the longer term we will also be looking at potential mergers and acquisitions to support this vision.”

Through the development of new welding techniques and methods, we successfully achieved 100 per cent fullyautomated internal cladding for Fisher flow control valves with sizes ranging from 8-24 inch

Wilhelm Group wilhelm-group.com

Services A complete welding solutions provider to the oil and gas industry in South East Asia

ENERGY,oil&gas

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Focus on offshore wind and

Since the company

Innovative Input BV Innovative Input BV in Ridderkerk is a specialist in the area of conventional and unconventional mechanical engineering constructions. The keywords are: Knowledge, Creativity and Experience. It designs and produces cranes, winches, lifting gear and special equipment – for offshore, onshore and civil engineering applications. The company operates worldwide and serves the needs of dredging companies, shipyards and shipping companies for example. You can call on Innovative Input for all your mechanical engineering questions. It will provide a perfect solution - from a concept study all the way to final delivery. And, of course, all of its products come with the required certification.

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was founded in 1995, Scaldis has established a reputation as a solid, reliable and customer-focused international marine offshore contractor for transportation, installation and heavy lifting operations in offshore markets. Today, Scaldis broadly divides its business into five market sectors: civil construction; O&G; renewables and environmental; deconstruction; and salvage.

Scaldis’ head office, located in Antwerp, Belgium, is home to a team of highly qualified and experienced engineers who work closely with clients to develop innovative and bespoke lifting techniques that form reliable and costeffective transport solutions.

“The market for offshore structures for the renewables sector, as well as the oil and gas market, remain important to our current business and we have gained an enviable track record and reputation in these sectors,” elaborates Linda Vanhaelst, Business Development and Marketing co-ordinator. “Within the oil and gas market, most large projects are currently related to decommissioning operations, because installation works is a little bit slow right now due to the low cost of oil.”

In all of its operations, Scaldis prioritises teams delivering unique solutions. This is a core value and a tangible strength that runs throughout the business. With over 20 years of industry experience, the company fully understands the difficulties that clients face and knows that the best way to find the right solution is to have an open mind and an innovative approach. This method has found effective solutions for heavy lifting operations for market-leading customers including ENI, Wintershall, Perenco and ConocoPhillips.

Within the wind industry, Scaldis has worked

energy-oil-gas.com

with leading names including DONG Energy, RWE and E.ON. “Scaldis works closely with its clients from the early stages of their projects in order to develop the most efficient and effective methodology for the task to be performed.

Additionally, optimisation of the planning and thorough preparation is key. Being a project-driven organisation we have the strength and flexibility to achieve the tasks that we undertake,” Linda reveals. “To anticipate the changes within the offshore industry, Scaldis is always looking for innovative technologies that will answer new and technically demanding challenges while reducing costs, limiting offshore time and mitigating risks.

Ultimately, we develop inventive solutions that make installation both safer and more efficient.”

To meet the demanding requirements of its clients within the offshore industry, Scaldis places a high level of emphasis on research and development to remain a leader in the heavy lifting field. In particular, in the offshore wind market R&D is of vital importance as the industry pushes the extremes of technology, location and water depth that all generate greater challenges in terms of equipment transport and installation. “What we are seeing in the wind industry is very rapid growth combined with new technology. Installation contractors throughout the industry must contend with the fact that the structures are getting larger and larger, and need to be installed in deeper and deeper water depths. These are essential elements to keep in mind when we develop inventive solutions to overcome the industry’s challenges,” Linda says.

“Decommissioning is another important segment for our company, as we have removed several platforms over the past few years,” continues Linda. “Decommissioning is, to a

PROFILE

certain extent, just reversing the installation sequence we use for the offshore wind and O&G industries. There are also some interesting developments for the minimum facility platforms that are planned in the North Sea. A good example is L6-B project that originally was fabricated in Rotterdam. Our Heavy Lift vessel RAMBIZ picked up the structure in Rotterdam and sailed with the complete platform, including suction cans, to the installation site in the Dutch North Sea. The installation work was completed in a tight offshore work window of less than 24 hours.”

As the company continues to develop new solutions for the expanding and evolving marketplace, it has taken the decision to invest in the construction of a new DP II heavy lift vessel.

“The new vessel will be in Europe in the middle of 2017. The vessel’s keel laying ceremony took place on Saturday 27 February 2016 at the Hong Qiang shipyard near Shanghai,” Linda explains.

“Following this event, it is now time to reveal the name of the vessel, which has been called Rambiz 4000 during the design phase. Scaldis and its shareholders are very proud to announce that the vessel will sail under the name of GULLIVER.” The new build heavy lift vessel GULLIVER will share many of the key assets of the company’s RAMBIZ vessel, but will also incorporate improved features including: increased lifting capacity of up to 4000 tonnes; increased workability; fully self-propelled; dynamic positioning; skidding cranes and its own helideck. With a proven track record and the future arrival of the GULLIVER vessel, Scaldis is on track to remain an important offshore fixture for years to come. “We look forward to the arrival of our new build vessel so that we can take on even more and bigger challenges to serve our clients better,” Linda concludes. “With the new vessel, Scaldis is ready for the future.”

Scaldis NV scaldis-smc.com

Services Heavy lifting and transportation ENERGY,oil&gas

energy-oil-gas.com

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Scaldis

Current

developments Operating from

Below Uwe Balasus-Lange, Head of DEA’s Germany/ Denmark division

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its head office in Hamburg, Germany, DEA Deutsche Erdoel AG (DEA) represents an international exploration and production company for oil and gas. While the company has a 117-year history dating back to when the business was incorporated during 1899, DEA today operates as part of the LetterOne Group of businesses following the acquisition of the company from RWE AG during 2014 at a cost of around €5.1 billion.

“The acquisition completed during March 2015 when the final closing of the deal was achieved.

In my perception this was a very positive step for DEA because the company’s new owner, LetterOne, has a very strong exploration and production (E&P) background,” reveals Head of DEA’s Germany/Denmark division, Uwe Balasus-Lange. “Staff members of the new parent company have an in-depth knowledge of our business and as a result, decisions relating to the E&P sector can now be made much more rapidly than was previously possible.”

Beside Germany and Denmark DEA has operations within Egypt, Algeria, Guyana, Ireland, Libya, Norway, Suriname, Trinidad and Tobago, and Turkmenistan. However according to Uwe, since taking on the role of Head of DEA’s Germany/Denmark division following the acquisition by LetterOne the company has also continued to enjoy exciting development within both Germany and Denmark. “The main responsibilities within my role are of course are to run the business safely as well as economically, the second of which is currently quite challenging due to the current low oil price. Nevertheless our OPEX in Germany are relatively low compared to the cost of assets in other regions that DEA is currently active in, meaning that we are still generating profit with our German activities,” he reveals. “In terms

energy-oil-gas.com

of production, during 2015 for example, we produced 60 billions of cubic feet (BCF) of gas and 4.7 million barrels of oil in Germany and almost 850,000 barrels of oil within Denmark (all DEA share).”

Within Germany DEA currently operates the Mittelplate field and production facilities in Holstein, including its artificial island situated seven kilometres west of the coast on the southern fringes of Schleswig-Holstein’s Wadden Sea National Park. The company also manages an onshore plant in Dieksand that also serves Mittelplate, meaning that the field has two facilities that produce from the same source and benefits from production that derives from both onshore and offshore exploitation.

DEA also maintains a strong presence within Lower Saxony, which represents the centre of Germany’s natural gas production with over 95 per cent of the natural gas produced in Germany coming from the federal state. The company’s facilities in the region comprise 38 natural gas production wells, a substantial gas treatment plant and a multi-compression plant, as well as a limited number of older oil wells.

The natural gas fields of Hemsbünde, Bötersen and Völkersen operated by DEA in the northwestern region of Lower Saxony are amongst the top ten of Germany’s highest-yielding fields and to date, the company has produced approximately 1,750 BCF of natural gas from a depth of around 5000 metres.

Within Bavaria DEA operates three underground storage facilities with a combined storage capacity of around 66 BCF, which makes the company one of the largest gas storage operators in Southern Germany. Its comprehensive network of storage infrastructure allows the company to provide gas storage solutions to third parties while supplying a

PROFILE

continued flow of gas to the German national grid. “As part of our overall strategy we do not store our own gas, meaning that the gas that we produce in Lower Saxony for example, is immediately sold and provided for use in the grid,” Uwe explains. “We currently operate short and long term contracts for both storage and injection activities with third party suppliers that rent our facilities.”

Within Denmark DEA has traditionally partnered with operator DONG Energy to undertake activities within the Nini East, Nini and Cecilie fields, however on 6 April 2016 the company was awarded with two new licenses that allow it to act as an operator within Denmark for the first time. DEA applied for two concessions as part of the 7th licensing round during October 2014. Together with the Dutch exploration and production company Dyas and the Danish state-owned company Nordsøfonden, DEA was recognised when awarding the licences and is now an operator in Denmark for the first time with a share of

DEA Deutsche Erdoel

50 per cent each in licences 8/16 and 9/16. The concession area of about 530 square kilometres is located in the southern Central Graben in the western part of the Danish North Sea. “We’re delighted to have been awarded these two licences as a positive supplement to our portfolio and that we’re now also represented as an operator in Denmark,” Uwe emphasises. “We see exploration potential in the region and it is certainly good news that we have been awarded two new exploration licences.”

Moving forward it is clear that DEA is in a strong position within the E&P market despite the current depressed price of oil.

Out of four major E&P companies operating within Germany today the company is the second largest and the only business to retain its own in-house drilling rigs. With a history of experience spanning over more than a century and the support of the LetterOne Group, DEA Deutsche Erdoel AG is set to continue as a market leading business in Germany, Denmark and beyond.

DEA Deutsche Erdoel AG dea-group.com

Services International exploration and production

ENERGY,oil&gas

energy-oil-gas.com

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Reducing Operating as a highly regarded and

Imperative Energy Imperative Energy are the UK’s exclusive Schmid AG partner, having installed over 55MW of biomass boiler systems across the UK & Ireland since 2007. Every bespoke installation delivers a client focused solution. Facilitating Schmid’s entire range of industrial boiler technologies generating hot water & steam into diverse applications from education to distilling, agriculture, food process, dairy, sawmills and district heating.

Imperative Energy delivers complete turnkey design, assembly and installation service as well as lifetime service & maintenance including RHI guidance & support. We also provide competitive fuel supply contracts to complement your complete Schmid solution.

fully family owned business, Schmid AG Energy Solutions (Schmid) is a leading international specialist and manufacturer of systems and associated equipment for biomass energy applications. The company was founded during 1936 and has subsequently grown to employ around 300 people while establishing a trusted reputation with operators throughout the biomass energy industry globally. The willingness of Schmid to explore new avenues of opportunity is mirrored by its customer-focused services and company culture. Schmid develops pioneering innovations, while providing optimum levels of service through close proximity to its clients, a rapid decision making process and efficient manufacturing elements and procedures. “We are one of the oldest companies that is solely focused on the development of biomass energy,” observes Sales Director, Patrick Schär. “This is really quite important because we are always aware of biomass energy trends, normally as an industry pioneer.”

Schmid celebrated its 75th anniversary on the first weekend of July 2011 and held an open day event, during which guests were offered an insight into the company’s production procedures and its modern manufacturing facilities. During the celebrations the business officially entered into its third generation when after 52 years working for the company, the then CEO of Schmid Hans-Jürg Schmid handed over management of the organisation to his son-in-law Philipp Lüscher. Hans has since

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taken on the role as Chairman of the Schmid advisory board and will continue to be involved with the company that he helped to build. “The company has defined my life, so it is obvious that I cannot simply give it up. I am withdrawing from the operational business and handing over management, but for the time being I will remain as chairman of the advisory board,” he explains.

“In addition I will continue as a consultant for the Innovations and Client Service division but with a smaller workload. The future CEO and company management have my full confidence.

I am certain that the Schmid Group will continue to lead the market with ground-breaking innovations and will remain an important player in the field of wood energy.”

With almost 80 years of industry experience, Schmid today continues to deliver marketleading biomass energy solutions. The comprehensive portfolio of product solutions provided by the company includes applications for domestic, industrial and cogeneration systems as well as dedicated aftersales support.

Within the domestic market it delivers power plants with a capacity of up to 250kW through the provision of an efficient wood firing system for detached homes or apartment buildings, while its industrial wood fire systems begin at 250kW upwards. Its most powerful installations serve the needs of a broad range of customers including individuals, the public sector, the timber industry, contractors and the agricultural and forestry sector. The company’s cogeneration systems provide intelligent furnace and gasifier units for generating sustainable electricity from wood, including organic rankine cycle (ORC) systems, hot-air turbines and wood gasifier units. “We’re a market leader in a country that implements one of the strictest standards in environmental protection worldwide. We have a long tradition in the industry, pushing and mastering the technology for decades,” says CEO, Philipp Lüscher. “We focus on what clients need and not on what we want to sell them. Every installation is customised to give the customer the best solution every time.”

The research and development of new technologies is regarded as a high priority for Schmid, which has greatly contributed to the company’s leading position within the biomass energy sector. Schmid maintains its own in-house testing installation at its company headquarters and has installed an air-cooled and water-cooled moving grate boiler and pellet furnaces, equipped with appropriate measuring

PROFILE

instruments. This allows Schmid energy to test innovative new solutions or carry out fuel trials on potential installations at any time and by undertaking in-house research and development operations the company is also able to ensure continued operation according to ISO 9001 certification as well as maintain the highest levels of environmental control.

Schmid actively promotes sustainable development by behaving in a professional and environmentally conscious way. By acting as a leading provider of biomass-based energy generation systems, the company not only aims to make a positive contribution towards mitigating climate change with its products, but also works to fulfil its environmental responsibilities as a leading business. “Within Switzerland there is an incentive tax on all hydrocarbon fuels that are not used for energy,” Patrick details. “Therefore there is increased interest within the renewable sector across an number of industry applications. This is something that is not as prevalent in most other

Schmid AG Energy Solutions

countries yet, but we expect similar incentives to come into existence. In countries where subsidies are awarded according to certification according to European standards we believe our technology has a significant advantage and this is something we expect to increase.”

During the coming months Schmid AG Energy Solutions will continue to build on its reputation as a leading European supplier of systems for biomass energy, while looking to increase its presence in international markets. There is currently significant interest in CO2 reduction technology in the US and the company is also interested in exploring potential markets in South America as well as opportunities in South Korea, Taiwan and mainland China. “We are excited to explore the growing international market with companies that have considerable background in energy and mechanical engineering,” Philipp concludes.

“We are also willing to invest in training potential new partners in all aspects of the business to cover client needs from end to end.”

We’re a market leader in a country that implements one of the strictest standards in environmental protection worldwide. We have a long tradition in the industry, pushing and mastering the technology for decades Schmid AG Energy Solutions schmid-energy.ch

Services Systems for biomass energy

ENERGY,oil&gas

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New

horizons Now a part of the

Rigmar group of companies, a globally leading source of support services to the offshore energy sector, Interocean was originally formed in 2007 to provide rig move services to the industry. “We were established primarily to focus on the marine and engineering services surrounding the requirement to relocate semi-submersible and jack-up rigs, and we have been very successful in doing this,” begins Group Development Manager, Duncan Cuthill. Historically the company has been active internationally in the UK, Canada, Angola, UAE and Singapore.

Interocean’s success comes from its market leading technical expertise and know-how in marine operations and offshore engineering, combined with its ability to provide flexible and cost effective solutions. The expansive range of services offered by Rigmar also helps to support and add value to its clients. Critically, with such a robust set of strengths at its core, the company is able to adapt its market offering in response to market conditions, something that is proving particularly useful in today’s pressurised oil and gas market.

“It is a very challenging environment to be in at the moment,” Duncan explains. “This means that we have to focus carefully on making our core business as efficient as possible. However, we have also found that a lot of our skills and

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competencies are very transferable and as such we are making significant efforts to diversify the business, both geographically and in terms of the service lines that we can provide.”

Over the past year, for example, Interocean has taken great strides in introducing an improved business management system, which underpins many of its activities, and this has allowed it to implement a new survey and positioning service in the market whilst ensuring quality demands are met. “Historically we would contract rig positioning services out to trusted third parties, but we have now brought this in-house, secured two major rig positioning contracts in the North Sea and recently completed our fourth rig positioning operation,” he continues. “We have also opened a new office in Newfoundland, Canada, as we have been carrying out offshore work in the region for a while and thought it necessary to develop our local presence further, especially amidst an increase in activity there. In addition to establishing and staffing our new office, our financial commitment to the area has included a significant investment in marine equipment.

This has already rewarded us with a contract with a major operator and we are starting to integrate with the local supply chain.”

Back in the North Sea, Interocean has recently secured a five year marine technical services

PROFILE

contract with a major oil & gas operating company and also been awarded the marine and engineering work for a major decommissioning project for a floating production installation.

Due to be completed in the third quarter of 2016, this contract is very important for the company as it looks to apply its skill set to a much broader range of activities. “This is almost a step change for us as it allows us to use our full range of marine and engineering expertise, and decommissioning will be a significant direction for us moving forward,” Duncan adds.

“However, beyond this we would also like to change the perception that we are firmly set within the oil and gas market.”

As a company, Interocean performs a number of other services in the wider marine industry, including being flag state inspectors for the Republic of Marshall Islands and the Republic of Vanuatu, providing casualty response, marine warranty and assurance services and mooring equipment hire and installation services. “It

company has been rewarded with new contracts, plus two contract renewals in the UKCS and the Eastern Mediterranean regions, Duncan carefully recognises that this doesn’t equal security. “We are very lucky having won these contracts and it demonstrates confidence in the quality of our services, but in order for us to get the work the activity needs to be there,” he says. “This is why we have made an effort to look outside of our traditional sphere of work to apply our skills to other applications and industries. Being part of the Rigmar Group helps to support this and gives us the chance to think a little bit more creatively as to where we can target our efforts.”

In this respect then it is no surprise that Interocean has set itself the vision to be recognised as a contractor perfectly capable of working across a broad range of sectors over the coming years. With a number of contracts under its belt and a clearly outlined expansion strategy, the business looks ready to experience even more success.

Interocean

Interocean interocean.co.uk

Services Marine and engineering consultant and contractor

is a real benefit for clients who would usually employ mainstream consultants to turn to someone like us who also has long standing experience of being a contractor,” Duncan says, commenting on the business’ consultancy capabilities. “We’ve done the hands-on stuff so it’s not a challenge for us to monitor work being carried out by another contractor.”

Breaking into the renewables sector will also be a key part of the company’s vision as it moves forward, with it recently completing a major survey and positioning project for offshore cable repair at a wind farm off the west coast of the UK. Diversifying in this way is a smart reaction to the current market conditions, and whilst the ENERGY,oil&gas

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Perfect

solution

DUC Marine Group

first emerged in 1984 focusing predominantly on providing diving services to inshore projects. An initial foray into offshore work began in 1987, and since then the company has steadily been expanding both into the international inshore market and the offshore sector. Today, DUC operates two vessels on its own fleet, the largest being a 56-metre multipurpose diving support vessel (DSV) called Ram, perfectly suited to undertake coastal operations with two cranes and a four-point mooring system.

However, as the company looks towards the offshore renewables and oil and gas markets as its major opportunity for the future, a second state-of-the-art vessel is currently being built.

“Ram is employed throughout the year and we have been chartering several vessels that were either too big or too small for the required services,” explains Henk Kapitein, Owner of DUC Marine Group. “The charter vessels would have insufficient accommodation, deck space or cranage, no proper mooring system, or they were simply too overkill and completely cost ineffective. Some of the bigger vessels were using up to 12 tonnes of fuel per day.”

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The decision was made then to order a purpose built vessel to support the growing demand for DUC’s services in the offshore market. Appropriately named the MPSV Solution and with the official naming ceremony taking place in May 2016, it was decided that the vessel would remain a Dutch enterprise with naval architects Hernand Jansen, hull yard Shipcon and outfitting-yard Hoekman Shipbuilding all based in Holland.

“We believe that at 55 metres, Solution is perfectly sized with 42 beds on board, 250 square metres of deck space and a proper four point mooring system, which can be radio controlled,” details Henk. “It has a shallow draught, so can be operated near to shore, is capable of beaching, and has two moon pools for survey work. There are two knuckle boom cranes mid-ship (90Tm) and on the aft deck (290Tm), and the main crane includes a tentonne active heave compensated winch. It is more or less the Swiss army knife of vessels, particularly for the offshore wind industry.”

Displaying an average fuel consumption of around three tonnes a day, the smaller but well-equipped MPSV Solution is a perfect fit for today’s offshore industries, particularly amidst challenging economic conditions. Henk notes that with the state of the current oil price, more and more service companies are starting to diversify from oil and gas into renewables

PROFILE

making it a very crowded and competitive market place. “It is getting tougher, but we think with this new vessel we can provide a one-stop-shop for clients,” Henk adds.

“We can provide rope access, we have the divers, we can perform the surveys and so on, so as soon as Solution is ready we can start promoting ourselves as a complete service package and we think this will be of interest to the market.”

Alongside this fleet expansion DUC has also been making significant progress towards gaining full accreditation within the industry.

Over the past few years the company has invested heavily to achieve ISO 9001, ISO 14001, OHSAS 18001 and SCC two-star certification. Helping to deliver such quality is a team of committed and highly experienced divers. “We employ most of our divers directly, which means that our personnel are committed and we can keep that excellent know-how within DUC Marine Group,” says Henk. “With the business, many of these divers have amassed years of experience diving in inshore conditions with strong currents and with numerous vessels, so they have a DNA within the company to operate and adapt to changing conditions

DUC Marine Group

whether they be in or offshore.

“We’ve got a great family-feel and a lot of our operatives are able to use this open culture to think very inventively and apply new solutions to projects. We try to monitor our customer satisfaction scores with regular questionnaires and we have averaged about 8.8 over the past two years, which is fantastic for us.”

The addition of the MPSV Solution will be vital to DUC expanding its capacity within the market whilst at the same time providing a cost effective service within a highly competitive sector. Over the coming months the new vessel will enter service and the company is confident that it will start to show its talents immediately. “The focus for the next year is going to be trained mainly on the wind industry but oil and gas will also feature,” Henk concludes. “We expect to sign a joint venture agreement in Iran over the next couple of months to take advantage of the growing opportunities for offshore maintenance and inspection work in the Middle East. In the longer term we continue to see the biggest opportunities in offshore, rather than inshore projects, and I can see us expanding into ROV services as well.”

The challenges of low oil prices are sending reverberations throughout the offshore industry and these pressures are facing everybody.

However, the need to continue operation remains and companies like DUC that are able to adapt and refocus their market offering are those best equipped to overcome the stresses.

Whilst operators are looking to bring the cost of offshore work down, with a clear strategy and a growing fleet of perfectly suited vessels, it looks like DUC Marine Group may just have the solution.

The focus for the next year is going to be trained mainly on the wind industry but oil and gas will also feature

DUC Marine Group ducmarinegroup.com

Services Diving and construction services to offshore and inshore industries

ENERGY,oil&gas

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Conditioned for

success

AHI Carrier

, formerly known as AirConditioning & Heating International (AHI), became a Carrier joint venture company on December 18th 2008; however, the partnership between the companies dates back to December 1997, when the two signed their first agreement for the distribution of Carrier products in Russia as well as all CIS countries (12 countries).

Following this development, Carrier and Toshiba Air-conditioning entered into a joint venture, which led to Toshiba’s air-conditioning product portfolio being added for distribution in AHI Carrier’s territories. Success came quickly, with Carrier rewarding AHI Carrier with expanded distribution rights to East and Central Africa; more countries were added after the creation of AHI Carrier in 2008, such as the Middle East, Central and South Eastern Europe, Australia, New Zealand and South Africa, bringing the total to 42 countries.

Key to the success of AHI Carrier is its versatile and aggressive sales structure, which is comprised of sales offices and dealer network, and builds sales support functions in a centralised back office in Sharjah, UAE. This strategic way of operating focuses on economies of scale and enables AHI Carrier to respond swiftly to opportunities when it comes to sales;

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alongside this, the company has built a superior system of product specification and technical support, logistics co-ordination, finance and MIS. However, the most critical factor in AHI Carrier’s trend for success and profit is its commitment to service, a commitment that will only grow over the coming years.

Indeed, setting the foundation for AHI Carrier’s strong global reputation is its dedication to customer care; with the provision of the best possible service a top priority, the company aims to achieve 100 per cent satisfaction, which will further build on its strong, loyal and ever-increasing client base. On top of this, the company focuses on performance, which it views as a testament to its abilitities in delivering on its promises to clients; employee development through the building of a culture centred on inspiration and mutual respect and good business practices. Indeed, the company is driven by a fundamental sense of global citizenship and responsibility through maintaining the highest ethical and environmental standards; it also actively supports the communities where it conducts business.

Another key strength for the company is its connection to Darwish Bin Ahmed Group UAE, one of the major business houses in UAE,

PROFILE

which has diversified interests in construction, automotive and real estate in addition to HVAC. Under the Darwish Bin Ahmed Group UAE, AHI Carrier is further able to perform with confidence in the market.

In locations such as Australia, New Zealand and the Middle East the company has set up TOTALINE stores, with many more stores due to be added. These stores stock and sell a comprehensive range of HVACR parts, consumables and tools for residential and commercial applications. Moreover, AHI Carrier also now distributes Carrier and Toshiba HVAC products in 63 and 50 countries respectively.

With an annual turnover close to $500 million dollars, the company has developed a strong reputation in sectors such as airport, commercial, educational, hospital, hotel, industrial, office complex and the oil & gas. Within the oil & gas industry AHI Carrier provides engineered solutions for HVAC, E&I systems for oil and gas, energy, mining and petrochemical projects across the globe; this work includes providing appropriate HVAC, E&I system designs that are capable of handling challenging and harsh environments such as extreme temperatures, corrosive conditions and explosion proof zones. Services include HVAC engineering and

AHI Carrier FZC

design validation, customisation, electrical and instrumentation, project delivery, commissioning and completion and after-sales support.

HVAC engineering and design validation includes cooling/heating load estimation, optimised selection of HVAC equipment and subsystems, detailed data sheets, ducting and piping layouts, layout detailing with service/maintenance access; inter-discipline co-ordination, 3D modeling, compliance to international standards and technical document translation. Meanwhile, customisation offers customers protection from corrosion, extremely low temperature, highly efficient air filtration and hazardous environments. Electrical and instrumentation services include SLD, panel internal arrangement and wiring design and assembly and functional testing at the motor control centre for HVAC equipment. This service also includes control panel and instrumentation for HVAC systems, such as control philosophy, cause and effect analysis, D & ID, P & ID, instrument calibration, instrument calibration, control panel internal arrangement and wiring design, loop drawings and field interface diagrams and integrated FAT. Project delivery includes project scheduling and planning, procurement, export documentation,

Setting the foundation for AHI Carrier’s strong global reputation is its dedication to customer care; with the provision of the best possible service a top priority, the company aims to achieve 100 per cent satisfaction, which will further build on its strong, loyal and ever-increasing client base

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PROFILE

AHI Carrier FZC

packing and storage and insurance, while commissioning and completion includes services such as integrity check for full systems, verification on compliance to intent/specifications and technical service reporting to conclude all systems components work to the design reference.

After-sales support includes the establishment of SPIL/SPIR, the provision of quote support for operational spares, option to provide local/remote annual inspection/ maintenance contract and the maintaining of the information database for technical updates and upgrades.

With blue chip organisations such as Shell, Technip, Total and Siemens within its impressive customer base, AHI Carrier has cemented its reputation for delivering optimum quality solutions. Recent projects for the company include working on Ichthys Onshore LNG Facilities in Australia, which represents the largest discovery of hydrocarbon liquids in Australia in 40 years and has a total project value of $33 billion.

Currently in the construction phase, the Ichthys LNG project is viewed as one of the most significant oil and gas projects in the world as it involves some of the largest offshore facilities in the industry, a cutting edge onshore processing facility and an 889 km pipeline that connects them for an operational life of at least four decades. AHI Carrier’s part in this major project involved the design, validation and supply of major HVAC equipment; this was completed in 2013.

One year later, the company was awarded a contract for work for the South Tambey field LNG plant project in Yamal peninsula.

One of the largest industrial undertakings in the Arctic, this project is focused on the development of one of the largest natural gas projects and is estimated to cost $27 billion in total. AHI Carrier’s role in this project includes the detailed engineering of 52 modules, including 3D modeling, procurement and delivery as well as certification and permits and services on site. This project is particularly challenging due to its location in the estuary of the Ob river, which is ice bound nine months of the year. The company is the main HVAC subcontractor, installation scope excluded, for this project; engineering is due for completion in the final quarter of 2016, while the delivery of equipment is anticipated to be completed by summer 2017.

With an experienced team at its helm, wholly

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capable of taking on challenges in the industry, AHI Carrier appears to have a bright future ahead as it further cements its leading position in the market through the successful delivery of demanding projects across the globe.

AHI Carrier FZC ahi-carrier.com

Services HVAC distribution

PROFILE

Norfolk Marine

A co-operative

partner Since the company

was established during August 2003, Norfolk Marine Ltd has established a trusted reputation as a leading supplier of high quality diving and marine engineering solutions. From its base in Mountcharles, Ireland the company has

continued to develop and expand its range of services with a keen focus on quality and customer satisfaction. Today Norfolk Marine is able to deliver a comprehensive portfolio of service solutions to clients operating within a

broad base of industry sectors, including marine civil engineering; vessel maintenance and salvage; port and harbour authority; renewable energy; utility and infrastructure; nuclear; and oil and gas applications.

To further increase the value of its extensive service package for its clients, Norfolk Marine also operates as a member of the Achilles Community, allowing the company to share high-quality, real-time data in a global collaborative network. Achilles was founded in Norway in 1990 with the goal of helping organisations to identify, assess, qualify and monitor suppliers throughout the supply chain. Its community structure provides buyers with access to a broader range of verified and compliant suppliers, while buyers gain access to a broader base of potential buyers. Presently around 860 of the world’s leading buying organisations and some 133,000 key suppliers benefit form being members of the Achilles network. The organisation’s members comprise over 40 different communities in 11 industry sectors and include customers including wellknown brands such as Shell, Balfour Beatty, Toyota Motor Europe, E.ON, EDF, Vale, ABB, Santos, Petrobas, Chevron, Maersk, Skanska, Statoil, Vattenfall, Repsol YPF, Alstom, Iberdrola, Acciona, Abertis, National Grid, BHP Billiton, ENERGY,oil&gas

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Yamana Gold, Halliburton, Anglo American, Aston Martin, Jaguar Land Rover, Petrobras and Exxon Mobil.

“Norfolk Marine is able to provide a diverse range of services to customers through in house expertise and partnering specialist contractors,” says Senior Contracts Manager for Norfolk Marine, Laurie McCaughan.

“The company can offer a range of personnel and equipment resources from its various operation bases, which enables a timely and cost effective response to customers’ needs.

Joining the Achilles community presents the company’s services to a significant number of existing and potential customers and increased tendering opportunities.”

As the company has continued to grow, Norfolk Marine has worked to further develop its service offering throughout the UK, while embracing opportunities that are currently

being generated within the offshore renewable energy market. During August 2014 for example, the company opened a new operations base in the Port of Lowestoft. With Lowestoft rapidly developing as a hub for the offshore renewable sector and its vessels operating from the port’s harbour area for several years, Norfolk Marine considered it to be a natural progression to establish a permanent base in the region. Both mobile and containerised diving systems currently operate from the Lowestoft South Quays facility along with the company’s inspection class ROV units and a full range of in-house underwater non-destructive testing (NDT) equipment. This allows Norfolk Marine to carry out comprehensive inspections of

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clients’ underwater assets in both inland and offshore deployments.

Operations can be carried out from the company’s own fleet of vessels, meaning that customers have a single point of contact, hence minimising both logistical considerations and costs. “The operations base at Lowestoft has allowed Norfolk Marine to increase its scope of services in the UK and consists of extensive quay as well as office, storage, workshop and warehouse space,” Laurie explains. “This allows the company to provide a much greater range of resources including diving, ROV, survey and wind farm support vessel services from its own easily accessible location. With the current growth of Lowestoft and surrounding areas in the offshore renewable energy sector, Norfolk Marine is able to provide services and facilities locally and from a single supplier.”

It is envisaged that Lowestoft will grow to become the company’s operations headquarters during the coming years for both European and further international contracts, while the Norfolk Marine office in Ireland will continue as the administrative hub of the business.

Furthermore, space is also offered for rent within the Lowestoft office complex, which attracts complimentary service providers within the renewable sector and quay space is also made available along with storage facilities and equipment. This allows both the mobilisation and demobilisation of contracts through the facility as well as the opportunity for other parties to use and benefit from its resources.

With the opening of its operational base in Lowestoft, Norfolk Marine has continued to develop its service offering and delivered several projects within the offshore wind industry. During February 2016 for example, the company completed the installation of its tyre filled net (TFN) scour remediation system at E.ON’s Scroby Sands offshore wind farm. “The TFN project at Scroby Sands involved the installation of the company’s patented scour protection system to a number of turbine monopiles across the site. The TFN system utilises recycled car tyres to create a protective apron around the base of the monopiles, which not only prevents further scouring but also allows the reinstatement of seabed material by trapping migrating sand suspended in the tidal flow. The system presents significant benefits in cost, environmental impact, logistics and resources when compared to aggregate based solutions

PROFILE

Norfolk Marine

Renewable wind energy promotes the replacement of non-renewable resources, and the associated cost and environmental impact

that are currently used,” Laurie elaborates.

“Renewable wind energy promotes the replacement of non-renewable resources, and the associated cost and environmental impact.

The TFN system reinforces this goal. The supply and installation of the TFN system at Scroby Sands was carried out almost entirely in-house, from the company’s Lowestoft base, with assembly, diving, crew and material transfer being provided using existing personnel and equipment resources.”

In February 2016, Norfolk Marine also announced that it has entered into a co-operation agreement with the highresolution hydrographic and geophysical survey company, Geomara. Working from Norfolk Marine’s Lowestoft facility, the partnership will offer an extensive range of interrelated maritime services and forms part of the company’s strategy to further increase its service offering and market presence over the coming years. “The co-operation with Geomara allows both companies to expand the services they can provide and the resources available to them. Customers can source a single supplier capable of providing survey expertise, support vessels and equipment from a number of locations throughout the UK, Ireland, and further afield. Hydrographic surveys are currently being carried out jointly in West Africa from Norfolk Marine’s local facilities,” Laurie says.

“The next 12 months will see increased activity in the East Anglia area with a number of offshore wind farms being developed,” he concludes. “The primary focus will be to remain in a position to provide a range of support services during this growth phase.

Other activities will include further marketing and installation of the TFN scour protection system, development of the company’s activities in Africa and to continue providing new and existing customers in the UK and Ireland with quality services.”

Norfolk Marine norfolkmarine.ie

Services Diving and marine engineering solutions

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Schofield Publishing Ltd 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 Editor Libbie Hammond libbie@schofieldpublishing.co.uk Sales Director Joe Woolsgrove jwoolsgrove@schofieldpublishing.co.uk

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