Energy, Oil & Gas Issue 129 February 2016

Page 1

energy-oil-gas.com

issue 129 FEBRUARY

review A year in

Countries around the world are struggling to balance the complexities of carbon, cost and security – and this isn’t going to get easier

A sunny outlook More investment is needed to make solar powered vehicles a viable alternative

The H Factor Human factor analysis can be effective in identifying safety critical operations

Also in this issue - Big data, flare gas measurement, Government ‘take’



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 Corporate Advertising Sales David King dking@schofieldpublishing.co.uk Sales Director Joe Woolsgrove Operations Director Philip Monument Business Development Manager Mark Cawston Research Managers Ben Richell Natalie Griffiths Ben Lister Kieran Shukri Editorial Researchers Jeff Johnson Wendy Russell

I am thrilled that we could feature companies in our profiles section from so many different locations around the globe

With the

Prime Minister’ recent affirmation of UK Government’s ongoing commitment to the UK’s oil and gas industry, is the industry feeling reassured? What is your opinion of The Oil and Gas Authority? Will it fulfil its stated claims to ‘drive greater collaboration and productivity in the industry, attract investment, create jobs and help it to remain competitive for the future?’ I’d love to hear your thoughts on the Government’s proposals. Moving on, I am thrilled that we could feature companies in our profiles section from so many different locations around the globe. When we changed over to Energy, Oil & Gas we had a vision to cover more of the world, and I feel that we are now getting some traction. If you’d like to see your organisation in our pages, please do get in touch.

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

editor LIBBIE HAMMOND

© 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.

ENERGY,oil&gas

energy-oil-gas.com

1


The production of LSAW pipes for the offshore oil and gas industry is the traditional strength of EEW. With more than 75 years of experience in the steel branch, we are able to fulfill our customers’ highest requirements. Apart from standard steel grades used in conventional jacket constructions, the fabrication of high-strength steels for racks and chords for jack-up rigs or low-temperature steels for the use in arctic environments is our daily business. As a special service for our customers in the construction branch, we offer our Point-to-Point Construction Service. This service involves the prefabrication of ready to assemble piping components and saves both, time and money.

www.eew-group.com


Contents

Regulars

4

Mutual benefits

Governments should work with oil producers to develop fair fiscal structures

6

News

Some of the recent developments within the oil and gas industry

8

How big are your flares?

With increasing global regulation around the emission of flare gas, accurate measurement data gets more important

12

Get smart

Utilities companies must address the implications of big data as it provides a great opportunity

14

A sunny outlook

Why we need to support and encourage manufacturers that are pushing solar vehicle technology

16

The H Factor

Human factors needs to be an integral part of safety engineering – the oil and gas industry is moving in the right direction

20

A year in review

After the rollercoaster year that was 2015, it looks like 2016 will see even more changes and technological advances

Profiles

24

24 SAL Heavy Lift 27 Iceland Drilling 30 Perfect Bore Manufacturing 33 Jan De Nul Group 35 GPT 38 Gulf Drilling International 40 VTTI Kenya 43 Radius Systems 43 46 DeepOcean Group 48 Holborn Europa Raffinerie

51 8

51 Essentra Pipe Protection

20

54 Kuwait Energy 56 Pressure Tech 58 Haven Fire & Safety 60 Frerk Aggregatebau Germany

Technologies

ENERGY,oil&gas

energy-oil-gas.com

3


benefits Mutual

Government take in E&P: framing a more balanced dialogue. By Iván Martén, Philip Whittaker, and Álvaro Martínez de Bourio

Below Iván Martén

Below Philip Whittaker

Below Álvaro Martínez de Bourio

4

T

he decline of crude oil prices since mid2014 has hit oil producers hard, wiping out 36 per cent of revenues across the industry. Not surprisingly, companies have responded to this decline by aggressively cutting costs - but one cost has been impossible for companies to cut: the ‘government take’ or the share of oil and gas upstream revenues that governments capture. The percentage of government take of upstream revenues is particularly critical because it defines a country’s competitiveness for internationally mobile exploration and development capital and it shapes global oil prices. If a country’s take is too onerous, companies will choose to explore elsewhere, leaving potentially lucrative reserves untapped. The percentage of government take becomes even more relevant as oil prices fall and companies cut capital spending, because countries find themselves competing to attract a shrinking pool of capital. The government take is by far the largest cost for E&P companies and has been on the rise since 2000. Governments increased their take for several reasons, including rising oil prices. Some countries realised that the existing financial terms they had established for producers

ENERGY,oil&gas

energy-oil-gas.com

when oil was $20 a barrel were poorly suited for a world in which the price was closer to $100 per barrel. Declining prices, of course, decrease the government take automatically - average lifting costs have fallen by about $9 a barrel in the past year - but more government action to reduce take is needed in a number of countries. So far, governments have responded more slowly than they did to rising prices in the past. Despite these pressures, some governments still see capturing a significant share of oil and gas revenues as a route to shoring up government finances. For example, Russia’s finance and economic ministries are debating tax changes that could increase the government’s take by more than $20 billion over the next three years. Both governments and oil companies would benefit from a level of government take that is more appropriate for today’s market. Fiscal regimes that are out of step with industry revenues constrain oil companies, preventing them from pursuing viable project opportunities. In the longer term, some governments’ revenues will fall as a result of these lost opportunities. Governments and operators must work together to frame a balanced dialogue so that fair responses on taxation and other forms of government take can be executed. On the basis


Finance

of our experience, both sides should work together and take these three steps in order to have a more balanced dialogue. 1. Conduct a strategic review of the country’s competitiveness related to resource development. The government and operators should honestly assess the competitiveness of the country’s resources and its current level of take. Our experience is that both aspects must be assessed on four dimensions: The Attractiveness of the Country’s Resources. The government and operators should evaluate the attractiveness of the country’s resources - particularly the remaining recoverable reserves - and the success of recent exploration investments. The Current Fiscal Package. A government must reflect on the types of contracts and the terms it puts in place. The Current Nationalisation Requirements. Both sides must candidly explore the costs, practicality and effectiveness of local content requirements. The Country’s Perceived Institutional Stability. Lower political, economic, and reputational risks can make a country’s resources more attractive and justify marginally higher government take. 2. Consider adapting the country’s fiscal regime if

necessary. Being open to changing tax and non-tax measures can lead to a more balanced dialogue and, ultimately, to improving a country’s competiveness. We have found three areas in which tax packages typically can be adapted: Tax Mechanisms. A country can adjust its tax or royalty terms by field type or size to compete for investment. Tax Regulations. A government can change tax rules governing depreciation, losses, and ring fencing and adopt a cost-recovery scheme. Tax Refunds and Deferrals. These measures can be incorporated in the terms and conditions of a contract to incentivise exploration and accelerate payback periods. 3. Be open to adopting an alternative fiscal regime. Governments can facilitate a more balanced dialog by assessing whether the current fiscal regime creates a competitive investment environment and, if not, by making changes, such as offering various types of contracts. Concession agreements that offer ownership of oil reserves have been the most effective way to attract exploration investment, as they hold the potential for large gains. Production-sharing agreements (PSAs) can offer a fair return for both parties. Investors find the stability of PSAs appealing, given that they are governed by the principles of international commercial contracts. Service contracts are generally less attractive because they limit potential benefits and relegate oil companies to a contractor role. These contracts are often employed in situations in which competition for access is fierce. In the current environment of lower oil prices, governments must work with producers to develop fiscal structures that accommodate the current price environment and address the rising impact of government on the industry. By working co-operatively and with greater urgency than we currently see, governments and operators can shape a more appropriate level of government take that will be mutually beneficial and ensure that oil and gas production will continue to power local economies regardless of crude oil prices.

the boston consulting group Iván Martén (Marten.Ivan@bcg.com) is a Senior Partner, Managing Director and Energy Practice Global Leader; Philip Whittaker (Whittaker.Philip@bcg.com) is a Director, and Álvaro Martínez de Bourio (Bourio.Alvaro@bcg.com) is a Principal - all at The Boston Consulting Group. The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. It partners with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. For further information please visit: bcgperspectives.com/energy_and_environment

ENERGY,oil&gas

energy-oil-gas.com

5


New facility In a move to help ensure Floating Production Storage and Offloading (FPSO) operators achieve the highest possible standards in seal quality Trelleborg Sealing Solutions has opened a dedicated climate-controlled swivel stack seal inspection facility for the validation of bespoke seals. Based in Barendrecht, in the Netherlands, the facility provides a temperature-controlled environment to avoid fluctuations in the dimensions of the seals caused by temperature changes, with specialist storage racks allowing the seals to be acclimatised prior to inspection. A bespoke inspection table has been installed, on which seals up to 3000mm can be measured with special lighting to aid visual inspection. Trelleborg’s FPSO Focus Group, which is based on site, is made up of a team of experts trained to inspect the specialist seals. Henk-Willem Sanders, Technical Manager Oil & Gas and FPSO Focus Group leader at Trelleborg Sealing Solutions, said: “Oilfield operators need to be confident about their equipment – if a seal fails during an operation this can lead to lost production revenues amounting to millions of dollars. “The quality of seals for our customers is of the upmost importance and we are continually striving for excellence, which is why we have launched this dedicated seal inspection and validation facility. “Typical FPSO seals are from 100mm up to 3000mm in large cross sections. The controlled environment in combination with the fact that large diameter seals can be inspected, gives our customers unrivalled reassurance when selecting a seal partner.”

6

ENERGY,oil&gas

Reinforced capacity AlMansoori Specialized Engineering, the oilfield services leader in the Middle East, has deployed the first of two planned production testing and stimulation vessels in the Arabian Gulf. The vessel, MV Al Nisr DP-II, brings with it the capability to offer production testing and well stimulation of the highest level. All onboard testing equipment has been designed to conduct production testing on oil and gas wells with high H2S & CO2 levels. Additionally, the vessel has been fitted with the latest safety equipment available in the industry in order to ensure safe and trouble-free operations. The oil production/testing capability of the vessel can accommodate up to 15,000 bbl/day with re-injection using oil re-injection pumps. The gas production/testing capability of MV Al Nisr can reach 70 MMSCFD (million standard cubic feet per day). The vessel has the ability to test single or multi-well developments and to allow full-scale production tests to be performed at remote offshore locations with the minimum of down time. The MV Al Nisr is also equipped with high pressure pumping equipment and related facilities that are capable of handling various well servicing applications such as chemical pumping and squeezing; acid mixing and pumping for well stimulation; well killing operations; pressure testing; nitrogen lifting and well unloading and pigging pipelines. The pumping and stimulation system has been configured to the latest international standards for automated mixing and pumping operations for a wide range of fluid volumes to efficiently enable various operations requirements.

Landmark LNG project West African Gas Limited (WAGL), a joint venture owned by subsidiaries of the Nigerian National Petroleum Corporation and Sahara Energy Resource Ltd, has been advised by global law firm Clyde & Co in its development of a liquefied natural gas import project at the port of Tema on the coast of Ghana. This project is the first of its kind in sub-Saharan Africa. In the short term it will play a key role in alleviating Ghana’s ongoing energy crisis, but longer term it will enable Ghana to become an energy hub in the region. The project has a scheduled start-up date of Q2 2016. The deal will see LNG cargoes shipped to Tema and then transferred to a Floating Storage and Regasification Unit (FSRU) to be moored at Tema port where the LNG will be regasified and then transported through pipelines to several power plants, which have recently been built or are under construction. Clyde & Co Partner Dean Norton, commented: “There is an urgent and growing requirement for many African countries to develop their power sectors and this project structure provides a real solution in a short timeframe. “As a firm we are pleased to have been able to offer the full range of expertise required for both the offshore and onshore elements of the project and look forward to working on similar projects in the future.”

energy-oil-gas.com


News

Finalised agreement Amplus Energy Services has agreed a new venture with Technip to develop marginal fields in the North Sea. With much of the remaining reserves inaccessible using existing infrastructure, the two firms have joined forces using their individual expertise to provide an integrated and fit for purpose solution for challenging field developments. There is an estimated 24 billion barrels of oil equivalent (boe) still to be developed and produced in the UKCS and Sir Ian Wood’s report last year outlined a requirement for collaboration to maximise recovery of the country’s oil and gas resources. The collaboration between Technip in the UK and Amplus is in line with the recommendations of the report and will help streamline costs, allowing companies to safely tap into more challenging reserves. Technip in the UK will bring its extensive project management, engineering and market leading products to the relationship, developing cost efficient subsea infrastructure, while Amplus has developed an innovative dynamically positioned (DP) versatile production unit (VPU). The Amplus VPU utilises proven FSPO (floating, production, storage and offloading) and DP vessel technology. The vessel has been specifically designed to meet the rigorous safety and environmental conditions of the North Sea and is also suitable for projects in other areas of the world such as West Africa, Gulf of Mexico, Brazil and South East Asia.

New industry partnership Stirling Group has partnered with the EU Iraq Energy Centre (EUIEC) to provide risk management training to the Iraqi oil and gas industry to help build a highly skilled and competent workforce. The company will deliver a series of three-day courses on dealing with uncertainty and risk in the global energy sector from its training centre in Erbil, Kurdistan. Angus Neil, managing director of Stirling Group said: “We have a major role to play in the reduction of risk and to the safety and health of our clients,

Pipeline to success

our own employees, our contractors,

According to research and consulting firm GlobalData, an export pipeline is needed to catalyse the East African oil production boom. With recoverable oil reserve estimates of approximately 750 million and 600 million barrels (mmbbl) in Uganda and Kenya respectively, and with government share of the reserves expected to be about 30-50 per cent, the potential impact on economic development in these countries could be great. However, new infrastructure, including an export pipeline, is required to enable commercialisation of these discoveries. According to Jonathan Markham, GlobalData's Upstream Oil & Gas Analyst, while a range of possible pipeline routes to ports in Lamu, Mombasa or Tanga have been proposed, upstream development in the region has stalled due to a lack of progress in developing an export route for these inland discoveries. Markham explains: “Operators have been lobbying for an export pipeline since the discoveries were made to enable development of the area. Tullow Oil and Africa Oil have cautiously welcomed progress made in agreeing a pipeline route from Uganda through northern Kenya to Lamu, but Total prefers routes further south, citing security concerns in northern Kenya.” The analyst adds that the development of an export pipeline would also be a driver for upstream exploration in the region. Some blocks have already been licensed by governments in central and eastern Africa, but the remote locations have dampened interest from major oil companies. Markham continues: “Discoveries in Kenya and Uganda have favourable subsurface characteristics and relatively low exploration and appraisal costs compared with the deepwater dominated exploration in West Africa. Estimated full-cycle capital expenditure per barrel for these upstream developments is about US$8–12, which is increasingly enticing, as the oil and gas industry cuts back on costs. However, without an economical export route, the inland discoveries will remain commercially unviable at current oil prices.”

specifically developed and delivered to

and also in the protection of the environments within which we work. “Our training programmes are meet a range of rigorous professional standards in line with the needs of the industry, now and in years to come. “It’s vital that oil and gas workers are exposed to the potential risks and are equipped with the skills and knowledge to ensure compliance in the hazardous, high-risk and hostile environments. “Working in partnership with industry bodies like the EUIEC ensures that our training is going some way in building the workforce required to meet the region’s future energy targets.” Aimed at graduates and developed in partnership with the KRG Ministry of Natural Resources’ Competency Development Programme, the course will cover a range of concepts, principles and practices for dealing with potential risks when working offshore.

ENERGY,oil&gas

energy-oil-gas.com

7


flares How big are your

Accurate measurement is critical to safety and profitability in the oil & gas industry. Adam Chapman outlines some of the key considerations for industry parties in ensuring that monitoring and measurement is accurate, effective and meaningful

T

he Deepwater Horizon oil spill of 2010 is estimated to have released 210 million gallons of oil into the environment around the Gulf of Mexico. The cost of the tragedy was measured in human lives, environmental damage, broken businesses and reputational disaster, aside from the billions in compensation paid. Oil exploration can be a risky business and reducing risk is one of the most critical elements to the industry. Central to understanding and managing risk is access to accurate information, which drives better business decisions, as BP discovered during a tortuous three months in 2010. Accurate information in the oil & gas industry is driven by measurement technology. In an industry where explosive

8

ENERGY,oil&gas

energy-oil-gas.com

and highly combustible (and of course extremely valuable) resources are being managed, accuracy takes on a completely new level of importance. The difference between delivering success 99.9 per cent of the time and 99.999 per cent of the time may not be important in many industries but for oil and gas that difference could be a matter of life and death.

An example: flare gas measurement Take one single example. In many parts of the world gas that is extracted with oil is flared. There may be many reasons for the seemingly insane process of burning a valuable and rare fossil fuel. These include the inability to store the gas locally or the risk associated with storing gas at too high a pressure. What is certain is that burning the gas – though still not great - is better environmentally than simply venting it. What


Measurement technology

is also needed is the ability to accurately measure how much gas is being flared.

Why is the volume important? Flaring gas is subject to regulation in many parts of the world. In the US the Environmental Protection Agency regulates this area whilst the 2008 Climate Change Act in the UK also sets out a framework for North Sea Oil. Penalties, taxes and fines for flaring are commonplace around the globe and flaring itself is an issue that is being addressed by the European Union, the United Nations and the World Bank. Even the leading oil companies have committed to reducing or virtually eliminating flaring, hardly surprising considering that more than 300 million tonnes of carbon dioxide are estimated to be created by flaring every year.

ENERGY,oil&gas

energy-oil-gas.com

9


How to measure accurately? Where taxes are imposed accurate measurement is intrinsically required to demonstrate both good practice and accurate payment. Accuracy provides reassurance that a business is not paying more in dues than needed but also demonstrates compliance with regulation. There are a number of considerations around accurate measurement. It goes without saying that measurement tools need to be reliable in some of the most extreme environments on earth, where exposure to temperature and environmental conditions cannot impact accuracy. Reliability is also critical as servicing equipment in the middle of the sea can be expensive. Measurement tools cannot impact safety requirements, which is more of a challenge than it sounds when you are measuring resistance to force without creating heat! Another consideration is the turndown ratio of equipment. The turndown ratio indicates the range of flow that a meter is able to measure with acceptable accuracy. If, for example, gas flow varies from 100,000m3 per day to 1,000,000m3 per day, a meter would require a turndown ratio of at least 10 to be accurate in such an environment.

10

ENERGY,oil&gas

energy-oil-gas.com

There are four primary technologies around gas measurement: Differential pressure (DP) devices: 66 These devices were used in the earliest days of flow measurement and are often deployed for transmission and distribution of gas. DP devices have a limited turndown ratio and often need a long, straight line of piping to be effective. That piping, and the space it requires, is expensive. Thermal mass measurement: 66 These meters use two sensors to determine flow rate: one of the sensors is constantly heated and flow is measured by monitoring the cooling effects of gas on the temperature of the sensor – the faster the flow, the cooler the sensor will become. With turndown ratios of up to 600, these meters are suitable for the unpredictable nature of flare measurement but require constant correction when gas composition changes. Photo/optical technology: 66 This method of measurement uses particles in the gas stream to reflect laser beams. The volume and velocity of gas is proportionate to the time it takes particles to travel between the laser beams. With a turndown ratio


Measurement technology

Indeed there is already a body of opinion that believes that the current industry standard or +/- 5 per cent accuracy is too high and should be reduced. The industry should not shy away from this but embrace it

of 1500, this method of measurement is flexible enough for flow monitoring but it does not work with clean gas (where there are few or no particles) and is susceptible to degradation caused by moisture and condensation meaning there are high maintenance costs. Ultrasonic: 66 The most reliable measurement tool for gas is ultrasonic. This method measures the time it takes for ultrasonic waves to travel across a pipe both upstream and downstream. The difference between these two values provides accurate measurement of flow. Ultrasonic measurement is not impacted by the composition or cleanliness of gas and with no mechanical parts within the line, maintenance and support requirements are low while safety is increased (nothing impeding the flow of gas in a high velocity flaring event). Finally, ultrasonic technology has the highest level of turndown ratios at 3000.

Increasing regulation, increasing accuracy, increasing profitability With increasing global regulation around the emission of flare gas, accurate information will become more important

to the industry. Indeed there is already a body of opinion that believes that the current industry standard or +/- 5 per cent accuracy is too high and should be reduced. The industry should not shy away from this but embrace it. A global and industry-wide commitment to the reduction of flaring is critical to ensuring that limited natural resources are used optimally and that profits are maximised. Accurate measurement is a cornerstone of this. After all, it might as well be dollars that are being burned.

Fluenta solutions Adam Chapman is Director of Global Marketing at Fluenta. Founded in 1985 Fluenta is the global leader in flow monitoring, measurement and sensing using ultrasonic technology. Currently the company primarily serves the oil & gas market where it is the leader in European off shore flare gas monitoring. The company also provides flow monitoring and measurement services to the chemicals, medical and other industries. Fluenta was established in Haugesund, Norway and has is headquartered in Cambridge (UK), with offices around the world. For further information please visit: fluenta.com

ENERGY,oil&gas

energy-oil-gas.com

11


smart Get

Improving data quality in a smart world. By Miguel TorrĂŁo Mendes

I

t is no secret that missing or inaccurate data is a major problem within the utility industry. According to Ofgem, the government regulator for the electricity and natural gas markets in Great Britain, three quarters of all utility company complaints relate to structural issues based on the accuracy of bills, estimates or readings. Further research conducted into the area of customer experience increasingly points to poor data quality as a major cause of dissatisfaction and customer complaints, often resulting in customers switching to new suppliers. Poor data quality also contributes to utility companies losing revenues or overspending, mainly due to the fact that they are unable to address issues within their workflow processes and interfacing within their systems which lead to reading errors and inaccuracies in contracting, prices and billing. The telecoms industry faced a similar issue ten to 15 years ago, when it was apparent that although huge amounts of data were being collected, the interfacing between their business systems were not adequate and so they needed a monitoring solution to place on top of their processes to ensure the data was kept consistent. Similarly, utility companies also contain many business systems that need to interface with one another, and as the EU continues its roll out of smart meters, providers are today able to collect huge amounts data.

Smart meters – opportunity or cost? Previously, customers with a traditional analogue meter read their meter once a month giving utility companies 12 readings per year, but now smart meters measure consumption every 15 minutes which give utility

12

ENERGY,oil&gas

energy-oil-gas.com

companies 35,000 readings a year – a jump of almost 2000 percent. This will not only have an impact on data storage and IT network capacity, but also on the systems having to process this data, which need to be kept up-todate and secure. It is known that whenever large volumes of billable data are seen, the risks to data integrity increase exponentially. Smart meters are also providing complexity within the business value chain. In order for smart meters to be adopted on a large scale, suppliers will need to provide flexible and dynamic plans which change during the time of day and even by type of usage. This will mean a change to the existing systems and processes and thus, there will be a large positive or negative impact on the business value chain. This increase in accessibility of data has also empowered users to be able to monitor their gas and electrical consumption, which puts further pressure on utility companies to make sure all data relating to consumption, is accurate. Any inconsistencies with bills received and consumption will cause customers to contact customer service and an increase in bill queries will increase the operational costs of correcting errors, as well as adding to call centre workload, which thus results in poorer overall response times for new customer queries. Apart from an enhanced customer experience, an increase in data quality can also improve the capabilities of marketing departments by providing them with the ability to segment customers based on usage; consequently this improved capability enables utility providers to offer more targeted packages of deals and bundles to people nearing the end of their contracts, helping to incentivise customers to stay with their current provider, reducing customer churn.


IT

In order to improve data quality, utility companies need to review both the business processes and the systems, which support these processes. This view should not only be approached from a technological standpoint i.e. IT solutions, as IT solutions are merely tools which can be implemented and outputs collected, but also from an organisational standpoint, because if no department or person is tasked with putting these conclusions into actions, no improvements to the processes will be made.

Improving the process Another way the process can be improved is by adopting an Enterprise Business Assurance (EBA) approach and implementing mechanisms, which improve utility companies’ support systems, as well as overall business performance. By looking across an organisation holistically, utility companies auditing teams can find where errors occur, where revenue is being lost and where inefficiencies exist. This methodology allows companies to not only address the challenges, but also provide the companies with a better financial and operational view of the business and so offer a high level view of the customer experience. As data directly impacts revenues, profits and customer experience; there is a greater need for it to be high quality and reliable. Built for purpose EBA software solutions are designed to provide this through the quality control process they use to validate data. This is due to the solution collecting data directly from the source (in this case the smart meter), with a clear methodology of how any changes are applied, so any discrepancies will be alerted to the relevant department or authority. The data is also able to be kept

consistent by revenue assurance processes, and with more tariff plans in place, together with having time of day, day of week or bundle discounts, there is a need to guarantee that the right tariff plan and an accurate bill is applied to the right customer. This EBA methodology ensures that data in all of the systems and platforms in the value chain is consistent and customer integrity is maintained.

Resting assured As the technology and telecoms industries struggle with the implications of ‘big data’, so too will the utilities sector. The problems caused by inaccurate data - incorrect billing, delays due to switching and an inability to resolve issues quickly, cause it to repeatedly be at the root of customer complaints, creating a large barrier to delivering consistently good customer service. By adopting an EBA methodology, smart meters can provide a great opportunity for companies to provide an accurate and consistent service in the presence of large amounts of data.

WeDo TECHNOLOGIES Miguel Torrão Mendes is Utilities Market Director at WeDo Technologies. WeDo Technologies is a worldwide leader in Enterprise Business Assurance, providing software and expert consultancy, to intelligently analyse large quantities of data from across an organisation. This helps to negate or minimise operational or business inefficiencies and allows businesses to achieve significant return on investment via revenue protection and cost savings. For further information please visit: wedotechnologies.com

ENERGY,oil&gas

energy-oil-gas.com

13


A sunny

outlook? A number of concept cars with solar-powered capability have been showcased at motor shows in recent years. Many manufacturers claim that their technology is pushing the boundaries, but the average car roof simply does not provide enough space to generate the power needed to propel anything more than a featherweight vehicle. Current solar-powered car endurance competitions are invariably held in locations where there are high levels of solar irradiation and very little cloud cover, such as the Australian Outback or Chile’s Atacama Desert. The ‘cars’ are ultra-lightweight, one-person vehicles designed to have the highest amount of surface area possible completely covered by solar cells. The technology used in these vehicles varies. Some use

14

ENERGY,oil&gas

energy-oil-gas.com

Do solar-powered vehicles have a viable future asks Ian Draisey

the power to directly run the vehicle’s motor (or motors), while others use the power to charge multiple batteries and provide a more consistent power source to the motor. Both vehicle and solar technology manufacturers have commendably invested millions in making them work efficiently. As we know, it is this level of investment and boundary pushing that helps technology grow and reach


Renewables

or charging station roof could charge a car while the owner is sat at their office desk during daylight hours. Another set of batteries is charging from the driver’s PV array back at home. The driver could then return home in the charged vehicle that evening and simply swap the fully charged batteries for evening journeys and the emission-free drive back to work the next day. Right now, lithium-ion battery design does not allow for this interchange as their weight, the safety requirements and charging time means that they must be connected to the main power grid, especially for ‘fast’ charging. In light of the recent VW admission, where VW cars have allegedly been cheating emissions regulations, Greenpeace has launched a campaign calling on supporters to sign a petition. This petition could force VW to mass-produce a commercially viable electric car (or even solar-powered car) and bring electric cars closer to the mainstream. It will be interesting to see how developments pan out over the next months and years, and whether something genuinely positive comes from this negative scandal. With the level of potential investment and further economy of scale that such a large organisation could bring, it really could make a difference to the potential of solar power to move people around in their everyday lives. While solar-powered vehicles are some way off being a viable commercial option, we all need to encourage and support the manufacturers that are pushing the technology to help protect all our futures. viability ‘tipping-points.’ As the efficiency of lithium-ion batteries or similar battery technology improves and the take-up of electric vehicles increases, we will inevitably see better performance and reductions in the price. But for the foreseeable future, this doesn’t overcome the issue of generating enough power to move a significantly heavier vehicle and multiple occupants over a useful distance. The potential for solar-powered vehicles lies in the principal of harnessing the sun’s power from a static solar PV array to charge an electric vehicle’s battery system. This is where the future of electric — and more specifically solar-powered — vehicles will have the best opportunity of becoming a viable option for transport. Picture this ideal scenario: a solar PV array on a car port

bayWa Solar Systems Ian Draisey is the Managing Director at BayWa r.e. Solar Systems Ltd, one of the UK's leading wholesale suppliers to the solar PV installer network. Headquartered in Machynlleth, midWales and operating across the UK and Ireland, BayWa r.e. is an approved ISO 9001:2008 company for the procurement and supply of high-quality products for solar PV applications. As part of the German BayWa r.e. renewable energy GmbH group of companies, BayWa r.e. Solar Systems offers competitive pricing with direct access to Europe-wide stocks of high quality, high profile solar PV brands and products. For further information please visit: baywa-re-solarsystems.co.uk

ENERGY,oil&gas

energy-oil-gas.com

15


TheH

H

Factor

Dr Ian Randle, PresidentElect of the Chartered Institute of Ergonomics & Human Factors (CIEHF) and Managing Director of Hu-Tech Human Factors asks: Is human error avoidable?

uman error has been implicated in the great majority of major industrial accidents. Investigations may end with a conclusion of human error as if this is something that can’t be avoided or prevented. However from a Human Factors (HF) perspective this marks the beginning of the investigation, where work is done to

16

ENERGY,oil&gas

energy-oil-gas.com

identify the causes behind the human error and find means to prevent recurrence. Humans by our very nature are unreliable and make mistakes, and we will never eliminate all errors in the operation of complex systems. The objective is to help ensure that individuals are never put in a position where a simple error or combination of errors will have a catastrophic outcome.


Human factors

Human Factors is the scientific study of how people interact with equipment and work systems. HF uses similar methods for modelling human failure as process engineers apply to modelling equipment failure. The aim is to identify critical errors and to eliminate them or mitigate their consequences. This is where a deeper understanding of the type

and cause of error is essential. The UK Health & Safety Executive (HSE) has identified four main types of human error: slips (unintended actions), lapses (lack of appropriate action), mistakes (knowledge-based errors), and intentional violations. Each has different causes and requires different solutions. Training can form part of the solution for knowledge-based errors but may be ineffective in preventing

ENERGY,oil&gas

energy-oil-gas.com

17


It is important to note that people not should be seen just as a potential source of error but also as an important part of the system integrity; it is their intelligence and adaptability that makes them able to identify problems and intervene when processes are going wrong

slips. An example of a slip is misdialling a routinely used telephone number – extra training won’t eliminate the error, however a better designed interface with clear and consistent labelling will help. Lapses are often caused by distractions, having to divide attention between concurrent tasks, and by fatigue. Ensuring that the task and workload is designed to minimise distractions during critical procedures, and effective shift-management to minimise fatigue are appropriate strategies in such cases. Major accidents are seldom caused by a single human error; they are normally the consequence of a series of errors and a certain set of conditions. However, HF analysis can be effective in identifying safety critical operations and where high levels of human performance are essential in maintaining barriers to major accident risks. HAZOP and Bowtie analysis are good sources of identifying such situations. Any operating procedures that form part of the safeguard or barrier against a major accident risk can be thought of as a safety critical task. The

18

ENERGY,oil&gas

energy-oil-gas.com

objective will be to eliminate these where possible and to replace the human in the loop with engineering safeguards. For example, responding to a high-level alarm requires an operator to detect the alarm, determine the appropriate response and then execute the response correctly. This gives a number of opportunities for human error and makes the system significantly less reliable than an engineered safeguard. It is not feasible or cost-effective to completely eliminate human-based safeguards. Where critical tasks cannot be eliminated, a structured human error analysis is undertaken on the associated tasks and procedure. The objective is to determine where errors that could have critical consequences can occur, and to devise practical means to reduce the likelihood or consequence. This can be via error-tolerant interface designs as well as well-designed operating procedures and additional checks. It is important to note that people not should be seen just as a potential source of error but also as an important part of


Human factors

the system integrity; it is their intelligence and adaptability that makes them able to identify problems and intervene when processes are going wrong. The human operator will therefore never be completely eliminated from the operation of complex process plant. Piper Alpha, Texas City, Buncefield and Macondo are all incidents, which are associated with a combination of technical and human failures. Whilst significant advances have been made in technical and process safety engineering, it is clear that it will not be possible to prevent future major incidents without also considering the human failures. Human Factors therefore needs to be an integral part of safety engineering with the same degree of attention paid to analysing and designing the human safeguards as is the case for engineering safeguards. The oil/gas industry has some way to go before this becomes a reality, however, increasing awareness and regulations on human factors contributions to major accident risks means that the industry is moving in the right direction.

Dr Ian Randle will be joined by Professor Ron McCloud, ex-Head of Human Factors at Shell, to discuss human factors in barriers to major accident risk at the Ergonomics & Human Factors 2016 Conference at Staverton Park this April. To reserve your place, please visit www.ehf2016.org.uk.

CIEHF The Chartered Institute of Ergonomics and Human Factors (CIEHF) is a UK-based professional body with over 1700 members. CIEHF members are practitioners, researchers and students working or studying in ergonomics and human factors or a related field. The CIEHF sets and maintains standards, provides resources, and promotes networking and communication among members and organisations that have an interest in ergonomics and human factors. For further information please visit: ergonomics.org.uk hu-tech.co.u

ENERGY,oil&gas

energy-oil-gas.com

19


review A year in

2015 - when volatility in energy markets became the ‘new normal’. By Joanne Smalley

2

015 has seen a sea change in global energy markets – with the long talked about ‘Energy Trilema’, balancing cost, carbon and security, becoming something of a multi-dimensional polyhedron! The end of 2015 saw oil at its lowest point in four years, gas and Below power prices following suit, and despite great advances Joanne Smalley is the Head of Energy in technology ‘normalising’ the costs surrounding solar as Aspectus and wind generation, the continued downward trajectory in commodity prices makes renewables look increasingly expensive next to low priced fossil generation. The phrase ‘the new normal’ seems a perfect description of where we are today. From a UK perspective, the energy world has never

20

ENERGY,oil&gas

energy-oil-gas.com

seemed so complicated! A new Conservative government in May 2015 set about reversing some of the renewable and self generation subsidies (feed in tariffs, large scale solar, and on-shore wind are all examples) that the previous governments had implemented, as well as appearing to indicate that gas should be the fuel of the future for the UK. These policy u-turns, designed to reduce the stress on consumer bills, had a catastrophic effect on the UK energy efficiency and renewable industries, with job losses and bankruptcies. UK Energy Minister Amber Rudd herself has commented that she expects the UK to miss its renewables targets. The 2nd Capacity Market Auction, finalised in December 2015, and designed to bring on spare capacity to back up


Energy markets

intermittent renewable energy methods and ageing fossil fuel generation which will come offline in the next few years, didn’t yield the expected results, with no large-scale additional gas fired capacity reaching the market. It had the added problem of bringing through a surge of investor backed diesel generation; investors sought out loopholes in the tax rules which led to double subsidies on this generation type, after the Government closed down tax breaks on solar and onshore wind. Dirty diesel was not what the UK government had in mind when they implemented plans for the Capacity Market. So the UK looks to face a looming energy gap, and increasing emissions over coming years, in a direct contradiction to stated aims. In Europe, the situation is no less complicated. The

long-heralded European Energy Union took a big step forward with the publication of a ‘plan of action’ in February, outlining steps to be taken to bring about cross border collaboration in this area. The Energy Union is designed to reduce dependence of EU members on single suppliers (and therefore a single point of failure) of energy supply, facilitate free flow of energy across borders, and promote energy efficiency and a low carbon economy across the EU. The problem will come in reconciling the different priorities of the member states – the UK position being a case in point! Renewable adoption and acceptance is at very different levels across the EU, and each country has their own preferred method of keeping the lights on. France is still holding onto its fleet of nuclear, the majority of the electricity

ENERGY,oil&gas

energy-oil-gas.com

21


These are just a few of the many issues that face European leaders over the coming months and years as they aim for a true ‘energy union’. The political future of the European Union as a whole is only one part of the puzzle that has to be completed

generation coming from this method. Germany, EU’s largest consumer of electricity, on the other hand is going through its own energy transformation, or Energiewende and is getting an increasing amount of its electricity from renewables, whilst attempting to phase out nuclear altogether. Some of the Eastern European states however, are still heavily reliant on gas flows coming from Russia, and geopolitical issues have played heavy on the minds of energy leaders in those countries. Despite this, late in 2015 Russian state gas provider Gazprom agreed a fixed price gas contract with Ukraine for the 2015/2016 winter, which has hopefully offered security to the pipeline running through Ukraine and into central Europe – for the next few months at least.

22

ENERGY,oil&gas

energy-oil-gas.com

These are just a few of the many issues that face European leaders over the coming months and years as they aim for a true ‘energy union’. The political future of the European Union as a whole is only one part of the puzzle that has to be completed. In the rest of the world, geopolitics is one of the major causes of the volatility we’ve seen over the past year. OPEC and North America have been locked in an oil production war that has seen prices tumble to lows not witnessed since the 1990’s and the Middle East driven oil cartel’s strategy of attempting to choke US production off via low pricing seems set to backfire. The sudden glut in oil production is a result of the US exploiting new, ‘non-traditional’ drilling


Energy markets

dramatic impacts on the oil and gas industry globally – and the depression looks to continue. With the prospect of Iran joining the oil exporting world once export sanctions are lifted, and global oil storage almost full, there is little sign of the situation stabilising in the near future. Current market observers are taking an even more bearish position – whilst forecasts of the $40 dollar barrel of oil were mocked at the beginning of 2015, reports only 12 months later are of the possibility of a $10 barrel! The year wrapped up with the long awaited COP21 conference in Paris. Leaders from around the world came together to define what a legally binding climate commitment to limiting global warming to two degrees looked like. And it appears a resolution was reached after days of late night negotiations. However, the current low prices of traditional fossil fuels – oil, gas and coal (echoing the worldwide depression in commodity prices) – means that the promises made in Paris may soon only become words on paper as countries rush to secure their future energy supplies at the lowest possible cost to consumers. So where does that all leave us going into 2016? Global energy infrastructure, methods of generation and extraction, and changes in regulation around carbon emissions are all at a turning point. Countries are still struggling to balance the complexities of the trilemma – carbon, cost and security, and it’s not going to get any easier as the goalposts continue to move. 2016 will be focused on answering some of the questions that the global move away from traditional fossil fuel poses. Battery storage on a consumer level came to the market in 2015 with the launch of Tesla’s Powerwall technology and whilst no-one expects this to solve the problem of intermittent generation from renewables on its own, it is clear that we are on the cusp of a major leap forward when it comes to answering the question of where we source our electricity when the sun doesn’t shine, or the wind doesn’t blow. So after the roller-coaster year that was 2015, it looks like 2016 will see even more change and technological advances – that will bring us toward the new energy future. Volatility looks set to be the ‘new normal’ for a long time to come!

technologies such as fracking and has meant that for the first time in 40 years, the country is planning to export its own homegrown ‘black gold’. Their self-sufficiency, as well as the threat of export into the open market, has panicked OPEC into over-production, and this shows no sign of abating going into 2016. Global economics is also playing a role – China’s sudden economic ‘slow down’, which gathered pace (or should that be lost!) throughout 2015 has meant that the world’s biggest consumer of oil and petrochemical products has reined back its demand for oil products, which has contributed to the global glut. This bottoming out of oil prices has had sudden and

Aspectus Joanne Smalley is the Head of Energy as Aspectus, looking after the strategy and communications needs for a broad spread of clients across the energy sector. She’s spent the last 12 years working in marketing and communications roles within the energy industry, for the likes of E.ON, EDF Energy, British Gas and ELEXON. Her experience covers European and global energy issues, energy regulation, metering, smart grids, retail, generation (traditional, renewables and nuclear) and trading. For further information please visit: aspectuspr.com

ENERGY,oil&gas

energy-oil-gas.com

23


service Heavyweight With roots dating back

as far as 1865, SAL Heavy Lift specialises in sea transport of heavy lift and project cargo, while its offshore subsidiary focuses on developing and delivering installation solutions for the oil and gas and renewables sectors. SAL Heavy Lift operates as a member of the ‘K’ Line Group from eight offices located within Finland, the Netherlands, UK, US, Shanghai, Singapore, Japan and Australia, employing some 670 people. Further to its strong global network of offices, SAL Heavy Lift maintains a fleet of 16 heavy lift vessels that allow the company to offer its clients highly flexible and dependable solutions. Within the oil and gas market large and heavy components need to be lifted and installed. SAL Heavy Lift represents a key partner with the necessary experience to assist clients from first contact during the project-planning phase through to lift execution and installation. Since the company was previously profiled during October 2014 it has continued to serve clients within the oil and gas sector and completed several complex and technically demanding lift

24

ENERGY,oil&gas

energy-oil-gas.com

operations. “2015 offered several significant and interesting projects – in the very beginning of the year our Offshore division finished our pre-piling work on the Wikinger Wind Farm in the Baltic Sea with our DP2 vessel MV Lone,” reveals Head of Marketing and Corporate Communication, Christian Hoffmann. “Later in the year our MV Svenja undertook a remarkable job, when she engaged as the main installation platform in Alaska, installing the gas development platform, Kitchens Light Unit 3. The job was undertaken for Crowley Maritime which was appointed


PROFILE

SAL Heavy Lift

Within the oil and gas market large and heavy components need to be lifted and installed. SAL Heavy Lift represents a key partner with the necessary experience to assist clients from first contact during the project-planning phase through to lift execution and installation

general EPC for the entire project by Deutsche Oel & Gas S.A. The project comprised the installation of a huge monopod structure on top of the already drilled wellhead at 1224 tonnes and 45 metres high, piling of the monopod, installation of the topside and helideck and connection to the pre-laid gas pipeline. We were also busy shipping more than 270,000 freight tonnes of heavy equipment for a huge refinery project in Vietnam. So 2015 offered a great deal of heavy shipping business as well as a few significant offshore jobs.” Throughout all of its operations, SAL Heavy Lift is committed to the highest levels of customer service, as well as the safe and responsible execution of its clients’ heavy lift projects. This dedication to efficient, safe lifting operations remains a cornerstone of the overall service that the business offers its customers. “Our primary corporate focus is safety, indicating our uncompromising attitude towards HSSE,” Christian elaborates. “We know that inside the business segments we operate and with the engineering and energy consortiums ENERGY,oil&gas

energy-oil-gas.com

25


PROFILE

SAL Heavy Lift

we work with, our HSSE offering has to be best in class. We therefore continuously provide safety training of various kinds to the company’s officers and crew, we invest in common training for the crew enabling them to develop greater skill-sets within their job functions, which ultimately also enables greater HSSE performance. Next to this we invest in technologies and IT systems that make our HSSE reporting, tracking and implementation of lessons learned more efficient.” Its dedication to responsible operation and the provision of expert knowledge enables SAL Heavy Lift to offer a best-in-class service, which is reflected by the company’s continued award of projects, despite the volatile nature of the global oil and gas market, as Christian explains: “Our clients know that we are the best in what we do – we are capable of delivering shipping and installation solutions matched by very few within our segment. It is the combination of high quality vessels, great

26

ENERGY,oil&gas

energy-oil-gas.com

engineering capabilities, paired with a crew onboard that possess a very deep knowledge in the job at hand. This along with a strong HSSE setup is what gives us a competitive edge. Currently the offshore sector faces significant challenges – the offshore oil and gas market is currently at a stand still in most regions and we see very little business activity. Offshore wind appears to be a market that will enjoy more growth over the coming few years and we naturally hope to position ourselves for a few projects here as well.” During 2016 and beyond, SAL Heavy Lift will continue to adapt to the needs of its clients, as well as the wider requirements of the global energy market to ensure its position as a marketleader within the heavy lifting sector. Although the low cost of oil has resulted in a severe slow-down of operations within the oil market, the company is keen to continue a strategy of investment and of targeting greater efficiency and new opportunities. “We currently perceive greater competition in several of the business areas, in which we operate. This is naturally something that challenges all of us within the heavy lifting industry. On a microscale, SAL Heavy Lift considers newbuilding options, as we still see opportunities in the market for certain types of vessels. But it is something that is done with great care and evaluation. We naturally wants to maintain a strong fleet offering to the market,” Christian concludes. “Over the coming years we will work to maintain a strong standing in an otherwise very difficult shipping market. Our Energy and Infrastructure segments will be focus areas where we believe we can provide strong offerings. We will also hope to develop our offshore installation service further.”

During 2016 and beyond, SAL Heavy Lift will continue to adapt to the needs of its clients, as well as the wider requirements of the global energy market to ensure its position as a marketleader within the heavy lifting sector

SAL Heavy Lift sal-heavylift.com

Services Sea transport of heavy lift and project cargoes


PROFILE

Iceland Drilling

Generating

growth This year Iceland Drilling

will be celebrating its 30th year in operation under its current name, but its true origins reach back twice as far to 1945 when State Drilling Contractors (SDC) was first established in Iceland. With much of the Icelandic economy relying heavily on geothermal energy from its volcanic landscape, SDC was set up to ensure that high quality drilling services were provided to ensure this demand was reliably supplied. When Iceland Drilling was founded 41 years later, its primary purpose was to maintain and enhance the powerful knowledge and skills in the field of onshore drilling that its predecessor had amassed. As such, today, not only does the firm have a dominant market share in Iceland, but also a growing presence on the international market. Since 1970 the business has drilled over 250 deep wells and, demonstrating the rapid growth of recent years, 180 of these have been in the past decade. Operations are currently located in Iceland, New Zealand, Montserrat, Dominica and the Philippines, as well as across Europe. Delivering these projects across the world are eight individual drilling rigs ranging from small truck-mounted units through to large drilling rigs with 3500kN lift capacities. Such a range

enables the company to operate with a high degree of mobility, flexibility and efficiency in remote and sensitive locations. Decades of experience around the world has also resulted in a team of highly trained people capable of delivering a fully integrated project management service as a single contractor, which includes everything from staffing, testing and all other associated engineering services. Speaking to Energy, Oil & Gas back in 2013, Chief Technical Officer, Sturla Fannddal Birkisson explained that the need to offer this complete package stems from Iceland’s remote location. “As the drilling contractor we have developed an integrated solution for our customers within Iceland, which means that we can take care of the whole well provision,” he says. “Project management in this sense is part of our culture, and we will subcontract the necessary service companies, some of which exist within our own company’s structure, for things like casings, cementing and logging. We also have a strong purchasing department where we buy all the materials needed to deliver a well and supply into that contract.” One of Iceland Drilling’s key successes over recent years is its international expansion into other volcanic landscapes and markets within ENERGY,oil&gas

energy-oil-gas.com

27


28

ENERGY,oil&gas

energy-oil-gas.com


PROFILE

the ‘ring of fire’. In April 2015, it was reported that the company had been contracted by Emerging Power Inc (EPI) in the Philippines to perform drilling operations for the Montelago project in Oriental Mindoro. With work starting in July of the same year, Iceland Drilling is expected to drill at least two wells in the project, which has a total value of $185 million and is estimated to produce 40MW of geothermal energy upon completion. In a statement given by Martin Antonio G. Zamora, Chairman of EPI, it was revealed that Iceland Drilling was selected for the project in order to ensure technically superior work. Winning such projects and building this kind of reputation in the region of the Philippines, and also Indonesia, is critical to Iceland Drilling’s successful international expansion. “To win contracts in this region you inevitably have to have a presence to show yourself and to prove you really exist,” explains Sturla. “We set up offices to market ourselves better and to be a connection close to our customers. Around 40 per cent of all geothermal energy is stored in the region and there hasn’t been much development yet, mainly because oil and gas has been fulfilling the electrical production needs. However, as this has become more expensive, the governments have started preparing a change in legislation to develop this renewable possibility, so we want to be present for when this happens.” In September 2015, Iceland Drilling successfully secured another significant international project, this time for the drilling

Iceland Drilling

of two wells and work-over on four existing wells at the San Jacinto-Tizate geothermal plant in Nicaragua. Working for its client, Polaris Infrastructure, the company started work in October and the contract comes with an option for a third new production well. Aside from these projects, work for Iceland Drilling continues across the world, particularly in Iceland, New Zealand and Ethopia. With a growing presence in these regions and a strengthening reputation to match, the future for the company looks bright as renewable energy sources become ever more focused upon. Speaking in 2014, Sturla commented on the future vision for the business: “Over the next few years we aim to become established in Indonesia and Africa, as well as retaining a strong presence in our existing markets.” It is clear that with such an inclusive service offering, long history and growing project portfolio programme, Iceland Drilling are on course to realise such ambitions.

R.G.R. – Global Energy Logistics The RGR group of companies, offering logistics solutions to the oil and gas industry throughout the world, has a solid reputation when it comes to global transportation and tubular storage services. Besides regular transports, the organisation offers full program supply chain management from supplier to well, including on-site project management where necessary. With offices in Rotterdam, Antwerp, London, Tananger, Singapore, Dubai and Houston, supported by a network of reliable agents, there is no location in the world it cannot support.

Iceland Drilling jardbornanir.is iceland-drilling.com

Services A leader in geothermal drilling

ENERGY,oil&gas

energy-oil-gas.com

29


Total

investment Based in the

Hampshire town of Andover, Perfect Bore Manufacturing (PBM) Ltd is a market leader in honing, super finishing, gundrilling and tooling, specialising in premier deep-hole drilling and turnkey solutions. The company was founded during 1988 and over the past 27 years has demonstrated itself to be a trusted solutions provider to clients operating within several markets, including the aerospace, oil and gas, defence, power generation and scientific industry sectors. Clients within the company’s target markets require the production of bores in components and in some cases, to sub-micro geometrical tolerances combined with specific surface finish requirements. “PBM prides itself on being a sub contract gundrilling, deep-hole boring, honing, superfinishing and CNC turning provider giving renowned service to its customers. Bore solutions supplied by Perfect Bore can be found in components manufactured by major OEMs such as Airbus, BAe, Goodrich Actuation Systems, Boeing, Moog and Rolls Royce; supporting projects including the Boeing B787 Dreamliner, Airbus A400M and Airbus A350,” elaborates Managing Director, Jason Wyles. “The main strengths of the business stem from the huge investment in its plant and machinery,

30

ENERGY,oil&gas

energy-oil-gas.com

people, processes, site and infrastructure. Coupled with sticking to our core values of ‘right first time’ and on time delivery, as well as ensuring there is a manager directly responsible for each service allows the company’s customers to trust in its service and become a valuable partner in the overall supply chain.” Indeed, since 2004 the company’s investment into its machinery, management infrastructure and employees has lead to an impressive increase in its manufacturing footprint from 6000 sq ft to 32,000 sq feet. This has further enabled PBM to meet the ever-increasing demands of its clients and to provide additional services that allow the production of complete preparatory turning operations and the boring and honing of billets up to 300mm diameter and three metres in length. “Furthermore, PBM has operated a fully documented Quality System since 1994 and is fully AS9100/ISO9001: 2008 approved and a SC21 bronze signatory,” Jason adds. “Whilst recognised as market leaders in gundrilling, deep-hole boring and honing, PBM also offers research and development into oneoff prototypes and has a dedicated facility to produce high quality volume parts to exacting tolerances if required.” Throughout all of its operations PBM invests


PROFILE

heavily in the development of enhanced machining capabilities and continually undertakes pure research on new techniques around its core deep-hole processing services. Along with the intention of stretching achievable boundaries, it allows the company to offer true value for money to its customers, with reduced cutting times enabling parts to be manufactured to an acceptable budget. “PBM’s technical engineers have extensive experience of international markets and keep themselves up-to-date with advances in tooling, exploiting years of embedded knowledge to fully utilise the latest deep hole boring technique,” Jason reveals. “Adapted machinery contributes to making the machining of parts quicker, easier and in some cases - possible.” During December 2015, PBM enjoyed further success when it was revealed that the company had been awarded Fit 4 Nuclear (F4N) status following an audit of the business during June 2015 focusing on all of its processes including strategy and leadership, people, project management and health and safety. This significant and prestigious achievement is representative and a result of the experience and proven expertise that PBM has earned throughout a host of industry sectors. “By using its experience from the aerospace and defence SC21 process PBM quickly found this to be an extremely useful tool in co-ordinating all of its business activities and to ensure that every employee is working to achieve the company’s goals,” Jason explains. 2015 also saw the completion of a £1 million investment in the company’s new CNC/prismatic drilling division that allows it to drill multiple holes in various shape blocks and to offset holes in round billets. These machines make it possible to provide cost-effective solutions in drilling holes in mould tools for high-end automotive applications, manifolds for oil and gas applications and plates for nuclear fabrications. Although 2015 was a successful year in terms of the growth and development of PBM, the company acknowledges that the current low cost of oil has created difficult trading conditions throughout the supply chain. Despite these challenges it is keen to continue to work with both new and returning clients by capitalising on its recent investments. “PBM’s main customers tend to be first and second tier suppliers within the oil and gas tool, aerospace, commercial and automotive sectors and the company is

Perfect Bore Manufacturing

actively looking at new opportunities in other energy sectors, such as the nuclear industry,” Jason concludes. “Whilst the aerospace market is buoyant there is a continued threat of ‘offshoring’, while the automotive market is also buoyant a lot of the supply chains are staid and it really is a case of where the business sits in the life cycle of a product. As has been the case with a lot of engineering companies, 2015 has been a very tough year for PBM, however it has carried on with key investments in its facilities and has continued with ongoing business improvement activities to provide maximum value to its clients around the company’s core services. Throughout 2016 PBM will focus on key account development through providing an excellent service at a long-term affordable cost.”

Perfect Bore Manufacturing pbm-ltd.com

Services Deep-hole drilling and turnkey solutions

ENERGY,oil&gas

energy-oil-gas.com

31


DESIGN. BUILD. CONNECT. Jan De Nul Group offers specialized services for the installation of subsea structures for oil, gas and renewable energy industries. They comprise seabed preparation, trenching, stabilization and ballasting and can be related to subsea pipelines, cables, umbilicals, foundations or platforms. In addition, Jan De Nul Group also installs cables and umbilicals for these three offshore industries. These types of services are offered on an EPC basis and are always tailormade to the client’s specific wishes.

www.jandenul.com

Energy, Oil & Gas.indd 1

follow us on

04/12/2015 14:39:09


PROFILE

Jan De Nul Group

fleet An unrivalled

Jan De Nul Group

was originally a small civil engineering company, however, upon seeing opportunities in the dredging sector, the company took on its first dredging project in 1951. Following this milestone, the company secured its first international dredging project and the rest, as they say, is history. Today the forward thinking group boasts an impeccable worldwide reputation as a global leader in the dredging industry; a position that was attained through a vision to continuously invest in new equipment, a new dredging fleet, new employees and new activities, as Carl Heiremans, Business Development Manager of Jan De Nul Group, explains: “Over the last two decades we have steadily increased our presence in the offshore services, with our vessels gradually being used more for dredging services. Meanwhile, over the last ten years we have begun building specific vessels for other services such as rock installation, pipeline installation and electrical cable installation. We are currently continuing this trend of expanding into new markets by moving into the windfarm market by adding new vessels to our portfolio that are suitable for the installation of foundations for windfarms. We have more than 6500 personnel working for us and over 600 civil engineers, this means we have a lot of competence and knowledge within our business that complement our strong fleet.”

Another way the group strengthens its services is through acquisitions of companies that enable it to increase its capabilities. For example, Jan De Nul added Envisan, a specialist in soil remediation and groundwater redevelopment, as a subsidiary in 1992. In 2000 Envisan executed its first major international assignment: the rehabilitation of the dump site of Zagreb, in 2000. More recently, Jan De Nul Group added PSR Brownfield Developers to its portfolio in 2012 as well as Algemene Ondernemingen SOETAERT nv in 2015. This long-term vision has led to incredible results for the company, which today has an unrivalled reputation for excellence and the world’s most modern and diverse dredging fleet, including the most powerful self-propelled cutter suction dredger, the record breaking J.F.J. De Nul. It also includes the identical Cristóbal Colón and Leiv Eiriksson, the largest trailing suction hopper dredgers in the world; these two vessels have a hopper capacity of 46,000 m3 and are capable of dredging to a depth of 155 m. In addition, the identical Simon Stevin and Joseph Plateau are the world’s largest rock installation vessels. By merging a superior fleet with 500 expert civil engineers, the group is wholly capable of handling the most challenging of projects. Notable contracts awarded to Jan De Nul Group over the last 15 years include the dredging and reclamation of the second Palm Island in Dubai ENERGY,oil&gas

energy-oil-gas.com

33


PROFILE

Jan De Nul Group

in 2002, the building of the six new jumbo locks in the Panama Canal from 2009 to 2014 and the installation of 16 foundations for a Windfarm in Sweden in 2009. “To further strengthen our activities in the offshore wind segment we have recently acquired the jack-up heavy lift vessel Vidar for an offshore wind contract with Nobelwind. This job will take place in Belgium and involves the installation of 51 monopile foundations and 50 wind turbines for the Offshore High Voltage Substation (OHVS). This new vessel has an impressive lifting capacity of 1200 tonnes, making it the second biggest of its kind in the world; because of these strengths, it offers a lot of opportunities for us to take on projects involving the installation of monopiles, jackets and so on and the fact it is already booked up until the end of 2016 is very positive for us,” says Carl. Alongside this major project, where Jan De Nul Group will execute the design, fabrication and installation of 50 wind energy generators for the OHVS, the company has also secured a contract with DONG Energy to execute cable installation works for the Burbo Bank Extension Offshore Windfarm in Liverpool Bay. Beginning in Spring 2016, Jan De Nul Group will install and bury 25 km export cable between the offshore transformer platform and the beach as well as 32 infield cables between the wind turbines as well as the offshore transformer platform. The Willem de Vlamingh will be used to bury the export cable, while the trenching of the infield cables will be completed by its subsea trencher UTV1200. The company has also won another contract with DONG Energy for the laying and burying of export cables for the Race Bank offshore wind farm during Summer 2016. In line with this contract, Jan De Nul Group ordered a new multi purpose vessel, the Isaac Newton, which was launched at the Croatian shipyard Uljanik Brodogradiliste. Due to its versatility, the unique vessel can be deployed on a range of niche

34

ENERGY,oil&gas

energy-oil-gas.com

projects, from installing subsea cables to trench dredging to subsea rock installation. In cable installation mode, Isaac Newton can transport and lay cable in a single length with a total weight of approximately 10,500 tonnes – an amount far exceeding any of its competitors. Elaborating on the contract, Carl states: “This is an interesting contract for us as it is a technically demanding job that requires a contractor that is capable and willing to develop new technology and new machines in very shallow water where Isaac Newton could not go. The beach in this area has sensitive vegetation that can not be touched or damaged in any way so over the weeks we designed and developed technolgies that are now being constructed. These two huge machines, named Sunfish and Moonfish, will then be tested over the next few weeks so they can go on the beach; one will then plough the cable through the sensitive vegetation while the second machine will go underwater to a depth of six metres below sea level.” With a wealth of major projects to focus on throughout 2016, the future looks bright for Jan De Nul Group as it continues to enhance its solid reputation as to go-to company for niche or challenging projects. On top of this, the company will naturally remain focused on investment in all areas of operation, from personnel to vessels, as Carl concludes: “We are positive about the long-term future, however in the short term the oil and gas market remains sluggish. In response to this we have two multipurpose vessels under construction for delivery in 2017 that will be used in niche projects such as cable handling, cable installation and rock installation. We are also investing in some dredgers, with one being built in Croatia; this one will be the biggest cutter suction dredger ever made by far. In fact it will be 50 per cent bigger than its nearest competitor!”

With a wealth of major projects to focus on throughout 2016, the future looks bright for Jan De Nul Group as it continues to enhance its solid reputation as to go-to company for niche or challenging projects

Jan De Nul Group jandenul.com/en

Services Dredging and marine construction


PROFILE

GPT

Seal of

approval Since the early days

of oil and gas exploration and production, pipeline and flange corrosion has been a major issue for those in the oil and gas industry, costing operators billions of dollars a year. In fact, some operators estimate that 60 to 70 per cent of maintenance costs are directly related to corrosion issues. With the oil and gas industry moving into deeper waters, these costs have been increasing as oil exploration equipment is based in harsher environments under greater pressures. In response to this, GPT was created in March 2012 by the combination of PSI (Pipeline, Seal & Insulator) Pikotek and another company - three business under the EnPro Industries

umbrella, to manufacture and supply reliable, high quality products to major international oil and gas operators, pipeline transmission companies, engineering and construction contractors. “GPT is currently the world’s leader in flange isolation products and pipeline accessories and was an evolution of the original Pikotek product, which was the development of a new isolation gasket to be used in the Alaska pipeline in 1979. Those original products are

still there and many other new and advanced isolation products have been developed since then. Today our customers include Shell, BP, Chevron, Exxon, PDVSA, Aramco, Qatar Petroleum and many others,” begins Ian Morris, Subject Matter Expert for Oil and Gas at GPT. From its two locations in Denver, Colorado, the US, and St Neots in the UK, GPT manufactures a full range of flange isolation kits that are made up of vital components; together these ensure the ongoing integrity and safety of piping systems. Designed to seal and electrically isolate complete flange assemblies, the flange isolation kits can control the current flow in cathodic protection systems, while also eliminating galvanic corrosion by removing metal-to-metal contact. A number of different flange isolation kits have been developed to suit varying applications and conditions. For example, the company manufactures systems that have a metallic central core with a high dielectric strength GRE (glass reinforced epoxy) retainer bonded to both sides to effect electrical isolation for critical service applications. Within the company’s extensive portfolio are highly reliable, robust and innovative products, such as Electrostop® Monolithic Isolation Joints to provide electrical isolation for cathodic protection systems in transmission and flow lines, natural gas plants and pipelines. There are also Linebacker flange sealing and isolating devices, Ranger II® pipeline casing spacers/ isolators; the original LinkSeal® modular sealing system for piping penetrations through walls, floors, ceilings and bulkheads; Riser-Wrap® manhole filtration sealing systems; hole-forming products; and safety-related pipeline signage. “One notable product is a fire safe isolating gasket, the patented VCFS (very critical fire ENERGY,oil&gas

energy-oil-gas.com

35


Sealing, Connecting and Protecting the World’s Pipelines Proven reliability and safety assurance

GPT manufactures pipeline solutions that ensure the transportation of oil and gas products is done safely and efficiently. Our complete line of isolating gaskets, monolithic isolation joints and wall penetration seals and more are durably constructed to withstand the extreme rigors of the environment. But our commitment doesn’t end with our products. On-staff industry experts are readily available to work with your business to create the most logical solution to your needs— from concept to completion.

VCS | VCFS | VCXT ™ | VCS-ID™ | ELECTROSTOP® | LINK-SEAL®

With global focus on safety, reliability and sustainability, we produce innovative solutions that enhance the integrity of pipeline systems today to meet the demands of tomorrow.

Denver, US | Houston, US | St. Neots, UK | Dubai, UAE

w w w.gptindustries.com


PROFILE

safe) product; this is best-in-class for fire safe isolation and is used globally. To quote one of our customers, it is ‘the best gasket in the world, not only the best isolating gasket, but the best gasket, period,’” highlights Ian. Discussing why GPT is relied upon by such a wealth of clients, Ian states: “There are three primary areas that give GPT a competitive edge. The first is the fact that GPT has been producing isolation kits longer than any other manufacturer for critical applications. This experience is immeasurable when it comes to product performance. The applications for the products are normally high pressure, environmentally sensitive, remote locations (where leakage could go undetected for extended periods), flammable and could have significant safety concerns. With GPT products, customers know that they are using robust, time proven designs that will last for years.” He continues: “The second area is that we have the largest staffing of engineers for any isolation kit manufacturing company. Engineers provide technical support to our customers, develop new designs and offer regional support; this is extremely important to our customers because applications vary so widely in design, in media types, in temperatures and pressures, that having an engineer do the research on chemical compatibility, thermal limits, pressure ratings, corrosion activity, metallurgy and so on at no charge is a great advantage. The third area is new product development, with GPT known as the leader in new isolation technology. This effort is a combination of a super engineering group matched with strong marketing tools such as Voice Of the Customer and In-Depth Interviews (IDI). These tools ensure that products developed meet the current and future needs of our customers.” The most recent example of the company’s drive for innovative solutions that will enhance the integrity of pipeline systems while also meeting the demands of tomorrow is the new VCXT high temperature flange insulating kit, which was launched in April 2015. “There have been higher temperature isolating products available by GPT and other manufacturers in the past, but the development of the new VCXT really puts it in a category by itself. The new VCXT has the highest temperature rating available, it has steam resistance and it has the best sealability of any high temperature isolating product on the market,” highlights Ian.

“The steam resistance may not sound overly exciting, but most high temperature isolating products do not fare well in steam. Steam use has grown in the extraction of oil globally and in fracking use, so this is an important attribute. Also, most high temperature isolating products don’t seal extremely well due to short fiber makeup. The VCXT has best-in-class sealability and pressure resistance. The VCXT has passed API 6FB fire testing, so it is well suited for installation in applications with flammable media,” he adds. Key to the development of these solutions are the company’s R&D facilities, which include more than 6000 square feet of test laboratories, where an engineering group of over 23 engineers develop concepts, research new high tech materials and test products. Additionally, there is a functional test lab to replicate customer issues, tests include steam testing, salt spray testing, blowout at high temperature testing and pressure testing. While the oil and gas industry remains stagnant due to the price of oil, GPT is using this mild lull in activities to focus internally on boosting efficiency in manufacturing, standardising processes, training personnel and, of course, continuing to develop new and innovative products. “Over the next 12 months our internal people will continue to be trained on the many aspects of isolation products in pipelines, but we will begin to train our distribution and customers with a new training programme we are calling ‘GPT University’. This is a very hands-on training program where participants will learn proper installation methods, electrical isolation, sealability/permeation and many, many other useful tools in the constant battle against corrosion,” says Ian. “Meanwhile, over the coming years, we will re-invent the isolating kit. Customers have been very helpful in describing their issues with gaskets in general and GPT intends to address all of these issues and wishes so that our customers can rest assured that their isolation systems are operating perfectly,” he concludes.

GPT

The most recent example of the company’s drive for innovative solutions that will enhance the integrity of pipeline systems while also meeting the demands of tomorrow is the new VC X T high temperature flange insulating kit, which was launched in April 2015

GPT gptindustries.com

Services Sealing, connecting and protecting the world’s pipelines

ENERGY,oil&gas

energy-oil-gas.com

37


Drilling and

beyond Established during May 2004, Gulf Drilling International Limited (GDI) was founded as the first onshore and offshore oil and gas drilling company in Qatar that was originally formed as a joint venture between Qatar’s national corporation, Qatar Petroleum (QP) and Japan Drill Co., Ltd (JDC). During July 2007, QP acquired 25 per cent of the shares owned by JDC, raising its ownership to 70 per cent of the company. In February 2008, all shares of QP were transferred to Gulf International Services, q.s.c. (GIS), which became a public shareholding company in May 2008 and is listed on the Doha Securities Market. During May 2014 GIS acquired all of the remaining JDC shares in GDI so that it became a one hundred per cent Qatari owned company. The importance of 2014 as a landmark year for GDI was further underlined by the company’s celebration of its tenth anniversary during the same month. In the decade since the company was founded, GDI has grown to include a fleet of 17 rigs, while its workforce has increased to over 1600 employees including some 120 Qatari nationals. One of the core strengths of GDI lays in the fact that it is a multi-cultural company, with trained staff from more than 32 countries. This allows the business to embody

38

ENERGY,oil&gas

energy-oil-gas.com

a diverse culture that promotes teamwork and understanding. This unique culture is reflected in GDI’s outstanding performance and ability to implement rapid problem resolution that allows it to adapt to the fast changing environment in the oil and gas drilling industry. To date GDI manages a fleet of nine offshore jack-up drilling rigs, six land rigs, one lifeboat and one accommodation jack-up. In addition the company has a lifeboat that it operates under a management agreement. This extensive portfolio of equipment allows GDI to provide trusted solutions to a host of drilling contractors. In October 2014 for example, it was announced that GDI had placed its new jack-up rig,


PROFILE

Gulf Drilling International

first lift boat job with DEL back in 2013. GDI’s relationship with GLB has endured two years and will be continuing for another eight months. GLB has stood side by side with GDI throughout the DEL contract and the relationship has proved to be durable. GDI also appreciates the confidence that DEL has placed in it and is grateful for the opportunity to continue providing lift boat services to such a highly valued client. Throughout its history GDI has established a proven track record of industry success and reliable operation. Despite the challenges and relative slowdown within the oil and gas industry owing to the current low oil price, the company is set to continue to grow with the future delivery of four new assets including the GDI 7 and GDI 8 land rigs, the ‘Al Safliya’ lift boat and a high specification premium jack-up rig named ‘Halul’. Each of these assets is already signed to a multiyear contract that will help the business to enter 2016 in a strong market position.

Throughout its history GDI has established a proven track record of industry success and reliable operation

Gulf Drilling International Ltd gdi.com.qa

Services Drilling services provider

Dukhan, into service for Qatar Petroleum. Dukhan is the ninth offshore jack-up rig in GDI’s fleet and the third jack-up rig to be placed under contract to QP, joining the ‘Al Doha’ and ‘Al Zubarah’ rigs. The Dukhan rig was delivered to GDI from the Keppel Fells Shipyard in Singapore during August 2014; prior to having the unit dry towed to Qatar. While undergoing final commissioning and testing in NKOM Shipyard, comprehensive third party equipment was installed and the drill pipe loaded into the rig to achieve QP’s final acceptance. The rig was customised to meet QP’s requirements and is capable of performing drilling operations anywhere in Qatar. It is equipped with a 75-inch cantilever outreach, 150-man accommodation, high volume centrifuges, high capacity for bulk mud treatment and the capability of drilling wells up to a depth of 30,000ft. This marks the fifth state-of-the-art cyber rig of GDI’s fleet and will serve to further enhance its operational capabilities while lowering the average age of its rigs. The inspection and acceptance process went very smoothly, allowing drilling services to commence earlier than expected. During January 2015 GDI signed a contract with Gulf Lift Boat (GLB) for the provision of lift boat services to Dolphin Energy (DEL). The contract covered services that commenced in January and continued through to August 2015. GDI began using the Dixie Patriot for its ENERGY,oil&gas

energy-oil-gas.com

39


future Opportunities for the

With a capacity of 111,000 m3,

ten tanks, one jetty and a maximum draft of 13.25 m, VTTI Kenya is one of the largest and modern facilities of its kind in East Africa. Operational since July 2013, it is the only privately owned terminal to tie into the Kenya pipeline in Mombasa; the pipeline takes product from Mombasa to Nairobi, before progressing further afield onto Nakuru, Eldoret and Kisumu. This available infrastructure in Western Kenya provides the terminal access to Ugandan markets as well as other land-locked countries found further west. Discussing the relatively short but eventful history of VTTI Kenya, Jerome Gelineau, General Manager and Commercial Manager of the terminal, begins: “VTTI Kenya purchased this facility after clearance from the Ministry of Finance in December 2009 after which it spent about 16 months completing and expanding the initial set up. VTTI Kenya bought it because it was located in Mombasa, the

40

ENERGY,oil&gas

energy-oil-gas.com

regional hub for product imports and because of its connectivity with KPC and the perceived friendly investment climate in Kenya. The total investment cost was $60 million. Today the terminal handles Automotive Diesel Gasoil which is ultimately delivered by either pipeline and/or by trucks to Mombasa, Nairobi, Kisumu, Eldoret, Nakuru, Uganda, South Sudan, Eastern DRC and Rwanda.� Created to ease the region’s overstretched oil storage and transportation network, the terminal is one of the largest liquid petroleum storage facilities in East Africa following major investment over 16 months. For example, phase one of developing the terminal included the installation of six tanks, while phase two include four additional tanks. The first phase was completed in March 2012, while the second phase was completed in final quarter of the same year. On top of this, the state-ofthe-art storage facility boasts new technology, including automated tank gauging, automated


PROFILE

VTTI Kenya

The major edge of this terminal is its excessively low operational loss which puts it far above the others. This is a key factor because operational losses translate in costs for the importer and the Kenyan people

tank valves, fire suppression systems, cone bottom in all tanks to drain water, tank high level alarms, a high tech security system with 22 surveillance cameras and impervious tank containment systems. Furthermore, the facility is operated from a centralised control room through the utilisation of the very latest in terminal automation. Following these major developments, on January 23rd 2013 the terminal reached a major milestone when it was successfully commissioned after discharging 9600 m3 of automotive gas oil from MT Uzava for Vivo Energy Kenya Limited. Relied upon by major organisations in the oil and gas industry, VTTI Kenya offers a range of advantages to those operating in the exposed Kenyan fuel import market, as Jerome highlights: “The major edge of this terminal is its excessively low operational loss which puts it far above the others. This is a key factor because operational losses translate in costs for the importer and the Kenyan people. Kenya normally has storage

of only two weeks for automotive gas oil and one week for premium mogas. This means any shock that impacts the supply chain will be felt immediately, for instance if the Kipevu and Shimanzi Oil Jetties became inaccessible the country will run out of stock within one week. Utilisation of VTTI will have the following advantages for customers: It will increase the stock cover of the automotive diesel gasoil by more than 100 per cent. It will also reduce the demurrage costs as the large vessels will now be discharged within 42 hours without having to wait for ullage. Meanwhile, there are benefits for larger vessels as the price premiums will reduce due to the economies of scale.� In July 2015 VTTI Kenya proved its capabilities in handling large vessels when it received its largest cargo from the 78,000 m3 oil vessel MT Hafnia Europe berthed at its terminal for oil discharge. The cargo was nominated for the terminal via the Kenyan governmentcontrolled Open Tender System, which tends ENERGY,oil&gas

energy-oil-gas.com

41


PROFILE

VTTI Kenya

to be reserved for cargoes destined for government controlled facilities that are used by all oil marketing companies in the region. “The arrival of MT Hafnia demonstrated the ability of VTTI to receive large cargoes efficiently as a flow rate of over 1800 m3 per hour was achieved. Also this cargo was loaded on to trucks and through the pipeline within a period of 30 days. This has shown that VTTI can be the solution for receiving large cargoes at low premiums for the country due to large

42

ENERGY,oil&gas

energy-oil-gas.com

cargo sizes and the fast discharge rate will also save the country demurrage as this rate is two times faster than other alternative terminals,” highlights Jerome. While VTTI considers other potential investments in Kenya that will be located near the consumption centres and also connected to the KPC pipeline system, VTTI Kenya will be focused on creating a close co-operation between itself and KPC with the goal of being part of its ongoing investment programme. “The programme is aimed at increasing the distribution of all clean products to the Kenyan markets as well as markets further west,” explains Jerome. “Kenya is at the centre of the different oil routes, whether for products import or for crude export, and has great opportunities to reinforce its position if it can seize them and quickly monetise them. However this will only be achieved if it can improve its business environment, especially as far as the land issues are concerned,” he concludes.

Kenya is at the centre of the different oil routes, whether for products import or for crude export, and has great opportunities to reinforce its position

VTTI Kenya vtti.com/terminals/vttikenya-mombasa

Services Oil terminal


PROFILE

Radius Systems

pipeline

Plans in the In the face of

a decade of challenging conditions in the gas and water industries in the UK and worldwide, pipeline specialists have had to adapt and innovate in order to thrive in recent years. Radius Systems is a resilient UK provider with global reach that has clearly succeeded, thanks to its track record of innovation, breadth of products and services, and underlying financial stability. Today, it is a key player within Radius Group, one of Europe’s leaders in thermoplastic compounds and polyethylene pipes and fittings. Offering a full range of end-to-end capabilities is one way in which Radius Systems stands apart from others in a highly competitive market. Subsidiary company acquisitions have bolstered the Radius portfolio and today the company not only manufactures and installs new pipelines, it also offers a portfolio that includes specialist connections, valves, commissioning services and repair and rehabilitation solutions for pipeline networks. Radius Systems CEO, Andy Taylor explains: “We look after the whole pipe life cycle: we can manufacture and supply all pipeline components, and install, repair and rehabilitate pipes all within one group of companies. This unique ‘joined-up’ approach gives us a competitive edge whereby we can look at a particular pipeline infrastructure project and provide a comprehensive offering.” Radius Systems has also succeeded in finding new ways to meet industry demands

for more cost-effective solutions to complex problems. A prime example is the issue of aging infrastructure. Replacing underperforming pipelines can be prohibitively expensive however Radius offers alternative pipe lining solutions through Subterra that are cheaper and faster to deliver and meet modern safety guidelines. But saving money is not the only driver. As both the manufacturer and installer, Radius effectively cuts out a step in the supply chain and unlocks new benefits with its unique approach: “Our understanding of both the products and the installation allows us to be innovative in both areas and to find the best value solution without some artificial barrier about where value sits in this area of the supply chain. That allows us to think differently, hence the idea around some of the off-site processing of pipes for pipeline renovation being devolved to a factory environment before being delivered and installed. Equally as a large enterprise we have the resources to invest in this business area, covering the liner technology, related fittings and installation processes,” explains Andy Taylor. Innovation is part of the Radius Systems DNA. From the development of the first ProFuse peelable pipes for drinking water and gas applications back in the late 90s to the recent rehabilitation of the legs of the Alpha Fortis oil rig using polyethylene close-fit PE pipe liners: the company continues to break new ground ENERGY,oil&gas

energy-oil-gas.com

43


44

ENERGY,oil&gas

energy-oil-gas.com


PROFILE

across the utility, oil and energy industries. One of the latest innovations to be launched is the recently developed ‘Anaconda’ fitting which is designed to resolve service connection issues in the gas market. Andy Taylor says this new solution will make a real difference. “The fitting comprises an electrofusion tapping tee (or tapping saddle) with a factory welded flexible pipe on the outlet of the tapping tee. The flexible pipe can be bent to avoid obstacles within the trench, allowing for a connection to be effected when the position of the tapping tee is off-line with the service pipe. This removes the number of joints required within the system which in turn brings installation costs savings.” It is clear that gas utilities continue to seek material savings. Radius is well placed to respond to the particular challenges facing this industry in the UK and Europe where vast swathes of old metal underground pipelines are in urgent need of repair or replacement. Radius subsidiary company, Subterra, specialises in close-fit polyethylene relining of existing metallic pipelines and is a credible alternative to expensive new super duplex steel pipe systems. In a climate where cost is still very much a deciding factor, this is a solution that delivers better value outcomes too. Andy Taylor says this is exactly the kind of sensible thinking that Radius System is renowned for. “We are challenging the use of super duplex stainless steel pipes as a default assumption for the replacement of aging pipeline networks. Value engineering the pipeline element by using systems such as PE liners in metallic pipes instead of costly pipeline replacement is ideal for those searching for efficiencies when earnings are feeling the pinch and the outlook is for no major recovery in the near term.” From a long-term perspective, Andy Taylor remains steadfastly positive. “Yes, the UK market for pipes has suffered in recent years as a reflection of the difficulties of the construction sector, delays in investment in the utilities and reduced expenditure on publicly funded projects. However, the longer term prospects are for a period of sustained growth with a re-start within the construction industry and significant infrastructure projects within the energy, transport, water and waste sectors.” The big picture is a positive one too. Although headquartered in the UK, Radius Systems has achieved significant global reach, supporting clients in Asia including Hong Kong and Singapore; Europe (East and West) including

Radius Systems

Russia, Germany, France, Latvia, Poland, Sweden and Czech Republic; Africa and the Middle East with clients in Egypt, Cameroon and UAE; as well as an active presence in Australia and New Zealand. As part of the company’s ongoing global growth strategy, it will soon be opening a new WOFE (Wholly Owned Foreign Enterprise) in China to manage existing activities in the region as well as sourcing key components and products, identifying new core product manufacturing opportunities, and sales of pipe re-lining consumables. With a period of sustained growth predicted, the future looks positive for Radius Systems as it continues to find the best possible solutions for its customers through innovation and acquisition. “The immediate priority for Radius is to consolidate and grow the new additions to our company. We will continue to look for new ‘bolt-on’ opportunities which add to our technology portfolio and give us wider geographical presence,” Andy Taylor concludes.

Radius System radius-systems.com

Services Manufactures and installs new pipelines, as well as providing specialist connections, valves, commissioning services and repair and rehabilitation solutions for pipeline networks

ENERGY,oil&gas

energy-oil-gas.com

45


Powerful

connections

Since its incorporation

Aquatic Aquatic is the leading independent operator of modular equipment for the global oil and gas, telecommunications and energy industries. It is a global partner for complete lay solutions, delivering assured, optimised project outcomes through the consistent provision of the best people, equipment, reach and approach.

46

ENERGY,oil&gas

during May 2011, DeepOcean Group has established a proven reputation as an integrated provider of safe, high quality and innovative services and technologies for the subsea industry. The group was formed through the merger of the inspection, maintenance and repair (IMR) and decommissioning services of DeepOcean, the seabed intervention company CTC Marine Projects and the towing and supply services of Trico Supply. The combined efforts of these three divisions established DeepOcean Group as a leading provider of driverless subsea construction services and operations. Operating as a single company under the name DeepOcean, the company today offers solutions through five main service streams, comprised of survey and seabed-mapping, subsea installation, seabed intervention, inspection, maintenance and repair (IMR), and decommissioning. Its strong service portfolio, coupled with a fully owned and maintained fleet of specialist equipment and multi-purpose support spreads, enables DeepOcean to bundle its subsea services to deliver cost-effective, tailored solutions to meet individual client needs. “Our strength is essentially derived from the company’s versatility and expertise, which has been built up over the last two to three

energy-oil-gas.com

decades of working in the oil and gas industry,” reveals Senior Business Development Manager, Andy Readyhough. “Certainly from a project engineering perspective, we believe that we have very high calibre and experienced personnel that we can progress the front-end engineering to produce a successful execution.” DeepOcean’s competitive strength is further enhanced by its ability to provide a suitable spread for solving its clients’ subsea challenges. The company utilises both owned and chartered DP2 class vessels as platforms for mobilising the right equipment to fit every work scope. This fleet of equipment is supported by DeepOcean marine base facilities within the UK, Norway and the Netherlands, in addition to mobilisation capacities in Brazil, Mexico and Singapore. The combination of the company’s fleet equipment, global presence and highly experienced and expert staff and crew, allows DeepOcean to provide its clients with a complete solutions package. Further to the company’s experience within the oil and gas sector, its comprehensive scope of marine experience and offshore equipment has allowed DeepOcean to build a strong and proven track record within the renewables industry. The company has established a solid fleet of installation and trenching spreads so that it able to provide a turnkey power cable service.


PROFILE

In addition to world-class subsea equipment, DeepOcean provides premier services in engineering and design, route optimisation, geotechnical support, project management and feasibility studies. This impressive in-house capability has helped to established DeepOcean as a true market-leader within the offshore and subsea sectors. In the face of the falling price of oil and its resulting impact on activity within the global oil and gas market, DeepOcean’s ability to recognise emerging trends and adapt into new markets has proven to be a key strategy. “During 2014 the oil price was still relatively high, so there was a lot of enthusiasm in the oil and gas sector. At that time a lot of our business was still in place supporting the offshore oil and gas and subsea industry. Since then there has been a dramatic decline in the oil and gas price and operators have been significantly cutting back in their CAPEX, which has had a major impact in the support industry in the oil and gas sector,” Andy explains. “This has in turn affected DeepOcean and our revenue streams from the oil and gas sector have been impacted accordingly. However, we have been fortunate in that we had already identified that the offshore renewables sector was picking up in its activities, a lot of which had good synergies with DeepOcean.” Today DeepOcean is increasingly active within the renewable market and is currently undertaking preparations for several projects that were awarded during the latter half of 2015. During October 2015 for example, the company announced that it had won contracts with DONG Energy for its Walney wind farm extension project in the Irish Sea, as well as for cable installation and trenching work for the company’s Race Bank offshore wind farm. Additionally during November 2015, DeepOcean also announced the award of an installation contract with J-Power Systems Corporation for the Nemo Link interconnector between the UK and Belgium. The project will be executed over a three-year period starting in 2016 with the offshore works completing in 2018. Since the company was last featured in Energy, Oil & Gas magazine during August 2014, DeepOcean has continued its programme of investment to support its expansion into new markets and regions. Prior to this the company invested in a major refit and lengthening of its Havila Phoenix subsea vessel at the Havyard shipyard in Norway and the vessel has since executed a number of successful projects within the renewables sector. During July

DeepOcean Group

2015, DeepOcean celebrated the launch of the new Damen Offshore Carrier 8500, the Maersk Connector. The vessel is due for final delivery during 2016 and will further extend the company’s capabilities in the larger cable-laying end of the market. Both vessels will play key roles in DeepOcean’s recently awarded projects. Despite the tough global trading conditions resulting the present low cost of oil, DeepOcean remains highly active through its operation within the renewables market and through its oil and gas activities in emerging markets within Asia, the Middle East and Africa. During 2016 the company will continue to closely monitor the global market and engage wherever there are opportunities to support its clients. “I think we all understand these are challenging times at present and are likely to remain so during the foreseeable future,” Andy concludes. “But we are confident and looking at how we can maintain our leading position within the industries that we are working in.”

DeepOcean Group deepoceangroup.com

Services Subsea services and offshore construction

ENERGY,oil&gas

energy-oil-gas.com

47


PROFILE

Holborn Europa Raffinerie

A refined

process

The Holborn refinery

Intertek Intertek helps maximise efficiency and minimise risks The need for quality, safety and reliability is paramount as companies strive to meet the growing global demands for secure and sustainable sources of energy. Whether we are managing specific processes or entire supply chains our areas of expertise include technical inspection services, technical staffing, non-destructive testing, in-service inspection, engineering consulting as well as 3D laser scanning and dimensional control. We help our clients from the global oil, gas, petrochemical, petroleum, and marine industries protect and manage their risk during custody transfer, storage, transportation and other activities related to their cargo assets. We also provide technical and additive treatment services, helping clients to protect and optimise their cargo business activities. With one of the largest networks of analytical testing laboratories globally we support quality control, troubleshooting and R&D processes. Utilising services such as these help our customers maximise efficiency, ensure the quality of their products, processes, and assets, and minimise risks that could impact personnel safety and the environment.

48

ENERGY,oil&gas

has operated as part of the wider Oilinvest Group since October 1987, when the company acquired the facility from its former owners Exxon. Located in the outskirts of the city of Hamburg, the ‘Holborn Europa Raffinerie,’ consists of approximately 87 hectares of land and is located at the south fork of the Elbe River and seaport basin. The refinery is well placed for easy access by ships arriving from the North Sea, by the inland waterways of the Elbe, by motorway, as well as by rail, with

energy-oil-gas.com

sidings on-site and an adjoining rail yard. Thus the refinery is able to receive ships of up to 80,000 metric tonnes carrying crude oil and feedstocks. Finally, the refinery receives VLCC delivered crude oil supplies via its 147 km pipeline from the North West Oelleitungs GmbH deep-water terminal in Wilhelmshaven. Holborn is owned by the Oilinvest Group overall, but operates more directly as a subsidiary of Holborn Investment Company, based in Larnaca, Cyprus. “It operates under the Oilinvest umbrella for the German market in the same way as all Tamoil companies,” explains Corporate Communications Officer of the Oilinvest Group, Marja van Renesse. The Holborn refinery was originally built during the 1920s and was expanded in 1950 and again in 1972. It was shut down 13 years later and finally taken over by Holborn Europa Raffinerie in 1987, before restarting crude oil processing in January 1988, with the plant’s FCC unit going into operation during April of the same year. Since the acquisition, the refinery has progressed with the modernisation of units, which are essential to long-term productivity. As a result it is able to produce sulphur-free fuels to meet today’s most stringent standards. “The Holborn plant is a medium conversion cat-cracking refinery with a processing capacity of around 105,000 barrels of crude per day, and


an average annual throughput of up to five million tonnes,” elaborates Managing Director, Frank Heyder. “The refinery is well equipped with desulphurisation capacity to meet most stringent European fuels standards and, with more than 50 per cent of yield pattern, focused on ULSD production.” One of the most significant developments that occurred at the Holborn Europa Raffinerie was the modernisation programme that took place at the beginning of the new millennium. This was undertaken in order to conform to a European Union Clean Air Directive, which came into effect on 1st January 2005. Approximately €200 million were invested at the Hamburg oil refinery. The new units have been tied into the course of a scheduled five weeks turnaround and trouble-free commissioned in the course of re-commissioning the refinery after completion of the TA. “The ‘Clean Fuels Project’ resulted in a deep desulphurisation unit for diesel and distillates, an isomerisation unit, crack naphtha desulphurisation and the steam reforming unit, as well as desulphurisation and modification of the original gas oil hydrotreater,” Frank Heyder says. “This was an old design from the 1970s and is now a unit that can also produce diesel and sulphur, at sulphur-free quality. Today, the Hamburg refinery is not only able to fulfil the

European Union specifications but can also produce high quality products for niche markets and cyclohexane for the chemical market. Since we went through the Clean Fuels Project the refinery has been running smoothly and on a stable level.” Presently the refinery employs 293 dedicated members of staff and is able to handle a full range of refined products including, liquefied petroleum gases, petrol, petrochemical grade naphtha, kerosene, diesel, heating and fuel oils. To support its operations Holborn also maintains

Heitmann IndustrieBauleistungen Heitmann Industrie-Bauleistungen is a medium sized company based in Hamburg, Germany. It offers construction services such as building construction, concrete work, pipeline and sewage duct construction, canalisation, maintenance of industrial plants and groundwork using the latest suction excavator technology. It mainly works for leading industrial companies such as refineries and chemical plants.

ENERGY,oil&gas

energy-oil-gas.com

49


PROFILE

Holborn Europa Raffinerie

off-site areas of the facilities comprised of tank farms, product shipping and receiving facilities, product blending systems and wastewater treatment plants. The refinery’s principle client is the Holborn European Marketing Company in Cyprus, with customers taking delivery of the products at the refineries loading facilities. While the refinery benefits from its association with the wider Oilinvest Group, it must continue to focus on efficient operation to meet the demands of an increasingly competitive market. “The Holborn refinery is an integral part of our overall business and has played an important role in achieving our success in Germany,” Marja van Renesse says. “As with all our assets we continue to run the refinery in an efficient and cost effective manner whilst adhering to environmental, health and safety regulations.” “We are in a shrinking market so we are not making ambitious expansion plans. Rather, we are concentrating on the execution of smaller efficiency programmes, energy conservation investigations and cost improvement projects, all of which will be ongoing over the next

50

ENERGY,oil&gas

energy-oil-gas.com

Today, the Hamburg refinery is not only able to fulfil the European Union specifications but can also produce high quality products for niche markets and cyclohexane for the chemical market

few years,” Frank Heyder concludes. “We are well located within the market with demand patterns well above refinery capacity. We also benefit from engaged and loyal staff, lean organisation with minimum head count and excellent traffic connections.”

Holborn Europa Raffinerie tamoil.com

Services Oil refinery


PROFILE

Essentra Pipe Protection Technologies

Robust

innovation With over 35 years’

Above Overview of Essentra Pipe Protection Technologies 136,000 sq. ft. facility in Houston Below Exterior shot of Essentra’s new 23,000 sq. ft. purposebuilt distribution centre in Leduc, Canada

experience within the global energy sector, Essentra Pipe Protection Technologies has established a leading reputation - coupled with a trusted industry brand - for providing high quality pipe and thread protection products. And over and above the latest technology and innovative offering, Essentra Pipe Protection Technologies is committed to the highest standard of customer service throughout its operations, from initial customer enquiries to product delivery and aftersales support.

Since Essentra Pipe Protection Technologies was previously profiled in November 2014, it has continued to develop to meet the diverse needs of its customers within the energy, oil and gas sectors. With the requirement to operate in increasingly hostile and hard to reach environments – combined with the current low price of oil - there is growing pressure on operators within the energy sector to continue to reduce cost and operate ever more efficiently. Essentra Pipe Protection Technologies is acutely aware of the challenges facing the market and is committed to delivering close support and effective solutions. “The challenge we all have in our industry today is to be as efficient as possible in all aspects of developing the oil and gas resources we have globally. Along with improved efficiencies, identifying cost savings throughout the drilling supply chain are critical to compete in a global market,” explains President of Essentra Pipe Protection Technologies, John Boben. “Our customers know that even in these very challenging times for our industry Essentra will continue to deliver value as the industry leader in pipe and thread protection. Therefore Essentra Pipe Protection is currently investing - and will continue to invest - in enhanced efficiencies ENERGY,oil&gas

energy-oil-gas.com

51


Above and below New 16 cavity tooling which has recently been developed

52

ENERGY,oil&gas

throughout our manufacturing processes and in new technologies to support our industry.” From its state-of-the-art 136,000 sq. ft. manufacturing, warehouse and office facility in Houston and its sites in Leduc, Canada, Veracruz, Mexico and Aberdeen, Scotland, Essentra Pipe Protection Technologies is able to manufacture and deliver high-performance API, premium and custom thread protection for a complete range of oil country tubular goods in a host of applications. “Throughout our facilities we continue to add the latest in technology for large capacity, energy efficient injection presses to manufacture our products. In addition, we have developed the latest in part moulding tooling, utilising multi-cavity moulds that can produce up to 16 parts per moulding cycle. These advances help to ensure consistent quality while reducing cost,” John elaborates. “We also recently added robotics and automated parts handling systems to over 60 per cent of our presses, resulting in further improvements in quality and labour cost savings. Overall, our customers benefit from these technology implementations through reduced product pricing and even higher delivery and service levels.” In addition to the equipment technology implementations that the company has introduced, Essentra Pipe Protection Technologies continues to invest in its site energy-oil-gas.com

footprint. The opening of its state-of-theart world headquarters in Houston in 2012 saw the company complete an infrastructure build-out and total refurbishment of its former injection moulding activities into a centre to accommodate an expanded CNC threading plant to support its customers’ needs. As a result, Essentra Pipe Protection Technologies is one of the few thread protector manufacturers globally to offer its customers two separate facilities for product moulding and high-speed product threading capabilities. And, with both functions located on a single site, the company is wellpositioned to provide exceptional customer service and efficient product manufacturing. “More recently in our Houston location, we have added automated computerised indexing tool and mould storage systems installed in our dedicated fireproof tool storage room. This technology investment, of over $300K, will provide a more secure environment for the storage of our high value tools and moulds, which are the foundation of our capability to manufacture the broadest range of thread protection products in the industry. This automated indexing system for the storage and retrieval of tooling will provide even greater efficiencies in our production process,” John continues.“ Finally, in Leduc, we have added a 23,000 sq. ft. purpose-built distribution centre in 2015, strategically located in the heart of the Alberta oil patch. Consolidating Essentra’s Pipe Protection Technologies and Components previous businesses on the west coast, this new location provides the necessary space to better meet the needs of our Canadian customers from a single ‘One Essentra’ facility.” Building on its years of expertise and continued investment, Essentra Pipe Protection Technologies continues to offer new product lines to service the needs of its customers and to meet the requirements of industry standards. A recent example is the development of the MaxX® product line, which is certified by independent laboratory testing to comply with the stringent American Petroleum Institute (API) 5CT Annex-I 9th Edition specifications. From an all-new plastic resin formulation to the use of durable pads and diaphragms, the MaxX® was designed to withstand the most testing industry conditions, from extreme temperatures to earth-crushing impact. Another launch is the Eco thread protector, developed to address environmental considerations associated with


PROFILE

Essentra Pipe Protection Technologies

disposal of plastic resins into landfills. Essentra’s Eco protector offers the durability of a heavy duty, all-plastic protector, and is manufactured using qualified reprocessed resin generated from the company’s internal moulding processes. As such, the Eco is a high quality, environmentallyfriendly and economically-priced product to meet even the most demanding requirements. As an industry leader, Essentra Pipe Protection Technologies has been successful in building long-term customer relationships as a trusted partner. These include with companies operating not only in the oil and gas sectors, but also in mining and water well applications, with customers ranging from major and independent

oil operators, drilling contractors and oil service companies to OCTG pipe manufacturers, pipe threaders and a cross-section of associated players that provide services to the energy industry. Looking forward, Essentra Pipe Protection Technologies is as committed as ever to supporting its customers with the latest technology, innovative products and excellent distribution fulfilment. “We will continue to emphasise our new product development and line extensions that support our customers’ needs, as well as servicing our industry globally with more locations than any competitor. New technology to improve production efficiencies will remain a focus for the company,” John concludes. “Essentra Pipe Protection Technologies has invested millions of dollars in the past few years, and we will maintain our commitment to the industry going forward. We are all currently facing challenging times: however, Essentra Pipe Protection Technologies will not just sit idly by and wait for conditions to improve. Rather, we will continue to ensure that we are optimally positioned to provide a market-leading product range and superior service level to our customers from a site footprint based on future growth opportunities.”

Above Large cavity moulds for MaxX products on a 1100 tonne injection press Left Additional view of tool indexing unit

Essentra Pipe Protection Technologies essentrapipeprotection.com

Services High performance innovative pipe and thread protection products

ENERGY,oil&gas

energy-oil-gas.com

53


focus An energetic

“Kuwait Energy is an independent oil and gas entity actively engaged in the exploration, appraisal, development and production of hydrocarbons,” begins its CEO, Sara Akbar. “Since our establishment in 2005, we have built a high quality, diversified portfolio of oil and gas assets in the MENA (Middle East and North Africa) region. The MENA portfolio consists of 12 exploration, development and production assets across Egypt, Iraq, Yemen and Oman, of which we operate seven.” Producing from all of its active regions, as of December 2014, Kuwait Energy’s 2P working interest reserves are approximately 671 mmboe and over the course of that year it averaged a daily working interest production of 25,252 boepd. Sara puts the company’s historical success down to three things: its operational excellence, solid financial position and strong regional relationships. “Operationally, we enjoy material and low risk exploration and appraisal upside within our existing portfolio,” Sara explains. “As we remain strategically focused on the most prolific and cost effective hydrocarbon regions globally we are ideally positioned to secure future potential opportunities in the MENA region.” Kuwait Energy’s performance in this respect has already earned itself a strong track record with operations in Egypt contributing to 82 per cent of its total production, which will be balanced once production begins in Iraq where 94 per cent of its total 2P reserves sit. Illustrating the operational excellence on which the company prides itself, average working interest production within the MENA region has increased by 57 per

54

ENERGY,oil&gas

energy-oil-gas.com

cent in the ten years of operating. “Financially, our existing production as well as our new future production projects in Iraq provide stable cash flows and mitigate financing risk,” Sara continues. “Our revenue has been steadily increasing and is up 40 per cent since 2007. Essentially, our strategy is to maintain relatively low operating costs for producing assets and this has resulted in consistently high EBITDA margins. Both our operational and financial strengths are supported by the strong regional networks and relationships we have established with key decision makers, enabling us to access new opportunities and support current operations. In addition, our management team is well known in the regional oil and gas sector and has a solid track record of reserves, resources and production growth delivery.” As the company has grown according to these strengths its vision and strategy has evolved to focus more consistently on strong markets with good potential. As such, in 2014 Kuwait Energy exited from the Ukrainian and Russian fields to rationalise and refocus its commitment on the MENA region. This exit successfully coincided with its largest discovery in the Block 9 field in Iraq. Block 9 and the Siba gas project, also in Iraq, have therefore become the major focal points for Kuwait Energy as it works to realise its ambition of becoming one of the largest E&P companies in the Middle East. “According to our plans, we are allocating great effort and finances to fast-track these two projects into their final stages of completion,” outlines Sara. “Drilling activities are ongoing


PROFILE

in Siba, along with pipeline construction and, very recently, the commencement of the main processing facilities and EPC works. All this should enable us to start production in late 2016. Regarding Block 9, we successfully made our first discovery last September and our second in December. Production followed in October 2015 and with these successes in mind this field’s complete development is being fast-tracked.” As part of developing the Block 9 project, at the start of 2014, Kuwait Energy farmed-out a ten per cent participating interest in the service contract to its Egyptian partner, the Egyptian General Petroleum Council (EGPC) in the partner’s first international investment. “The merit of this investment is its contribution to building an economic relationship between Iraq and Egypt,” notes Sara. Another area of particular focus for the company is Oman, into which it entered in August 2006 through a service contract for the Karim Small Fields cluster. With a 15 per cent revenue interest, Kuwait Energy has successfully operated in this region where 18 mature oilfields exist, 12 of which are still producing, and still sees a wealth of opportunity in the area. “There is really good potential to expand the Oman assets base in the future,” highlights Sara. “Recently, we were granted a 25-year extension to our contract for the fields as we believe in the potential for growth and this location remains strategically important for us as we aim to maintain and strengthen our presence in the MENA region.” Alongside the commercial and operational success achieved by Kuwait Energy over the past decade is its strong corporate social responsibility programme. Within this programme the company has engaged in a number of social initiatives in the region including supporting youth development – it recently supplied school provisions to children in Egypt and Iraq – responding to the emergency needs of deprived families in Iraq and Yemen, and providing opportunities to enable and empower women in the region. This latter subject is aimed at everything from educating illiterate women to setting up small businesses and giving them a better quality of life to inviting female engineering students to begin their careers at the company. It also concentrates carefully on its own environmental impact, monitoring and continuously upgrading its procedures in line with the highest safety and sustainability standards.

Kuwait Energy

“We strongly believe that we are part of every community in which we work,” Sara says, highlighting the importance of these kinds of programmes. “We have a duty to enrich the lives in the diverse areas where we operate – beyond the employment and other commercial opportunities we create.” In working towards achieving its vision to become the pre-eminent independent oil and gas company in the Middle East, Kuwait Energy is always on the look out for new growth opportunities in the region. Having spent the last decade establishing itself a reputation for operational excellence as well as building its financial strength, the company is well placed to take advantage of any exploration and production prospects that may emerge in the MENA area. Taking this into account with its exemplary approach to social responsibility and engaging with its local communities, the future for Kuwait Energy looks positive as it moves ever closer towards realising its aspirations.

Kuwait Energy kuwaitenergy.co

Services Independent oil and gas company based in the Middle East

ENERGY,oil&gas

energy-oil-gas.com

55


Regulating

success Since the company

was founded during November 2000, Pressure Tech has developed a leading reputation for its provision of an extensive range of high quality stainless steel pressure regulators for use in both liquid and gas applications. The business was established by its Managing Director, Steve Yorke-Robinson in response to market demand for high quality pressure regulators within a number of industry sectors and has grown to provide components to clients around the world. “Pressure Tech started as a ‘one-man-band’ in 2000 when I realised that the main supplies of high quality pressure regulators for the oil and gas market were predominantly manufactured in the USA. The buzzwords at the time were things like ‘globalisation’, ‘e-commerce’, and ‘the internet,’ Steve explains. “I quickly recognised the opportunity to offer a European sourced range of pressure regulators that could be sold directly to business-to-business to clients anywhere in the world. While today it seems the internet and e-mails have been around for eternity, it was only in 2000 that it suddenly seemed a lot easier to communicate with customers from Australia to America, and more recent developments with Skype and Facetime, mean that virtual meetings can be arranged with customers without the need to spend excessive amounts of time and resources travelling around the world.”

56

ENERGY,oil&gas

energy-oil-gas.com

After the manufacture and introduction of an analytical range of core products to market in 2001, Pressure Tech further developed a range of over 40 different pressure regulator models. A key factor in the early success of the business was the approval of its heated pressure regulator for use on gas analyser systems meeting ATEX regulations. “The EU directive had just changed from the CENELEC/BASEFA approval system to ATEX and we were the first company to achieve this certification for the European market. Being creative, innovative, and generally ahead of the game, has helped ensure Pressure Tech is seen as a leader in the pressure regulator business,” Steve reveals. “The company’s present range covers pressure control from 1bar to 1400bar, and the regulators are used in offshore applications down to 3000m subsea, up to 3000m in aerospace applications, and anything in between.” The robust design and reliability of its units has allowed Pressure Tech’s pressure regulators to be deployed in some of the world’s most demanding environments. Within the oil and gas industry for example, the company’s client base is prominently involved with hydraulic control systems for subsea systems or analyser systems for a variety of gases and environmental applications. Furthermore, the adaptability of the design of its pressure regulators has allowed Pressure Tech to diversify in the face of challenging market conditions. “The current downturn in oil prices has had an impact on our core business in the oil market and we have had to adapt to find new products, markets, and applications, which we have been able to do very successfully,” Steve explains. “For example, we are presently talking to a company in the USA involved with legally extracting the medical benefits of marijuana that requires several hundred back pressure regulators to control pressures on their supercritical fluid extraction process. We have also expanded within the commercial diving and hyperbaric chamber business with a range of brass regulators, which are cleaned and degreased for use on oxygen service. To demonstrate our commitment to developing this range, we have invested £100,000 in cleaning processes and an ISO8 clean room to ensure the parts are completely degreased prior to assembly and the regulators are suitable for use on oxygen, which we also offer as a new subcontract cleaning service.” By drawing its strength from a combination


PROFILE

of pioneering innovation and a highly skilled and dedication team of professionals, Pressure Tech celebrated 15 year’s in operation during November 2015 and met several important milestones along the way. “Every employee involved in the business has an interest in how the business is developing, which projects we have secured, how the products are performing, as well as which customers we are dealing with. Our culture is one of very open and honest communication. From the CNC and production teams, to the people in the office, everyone knows how the company stands financially and what needs to be done to meets our customers’ expectations. This caring approach to what we do means the customers needs are fully supported,” Steve says. “Key milestones for Pressure Tech have got to include; making our first investment in our CNC machines providing much greater control over our production and quality; reaching our £1million then £2million turnover points within one year of each other; moving our CNC machine shop and

expanding our production facility in 2014/2015 with employee numbers reaching 30 in 2015; securing our first €0.5million contract for a project in Brazil in 2014. Towards the end of 2015 our e-commerce website went live which allows customers to easily select the correct part number configuration, generate their own quotes, and order products directly on line.” Throughout 2016 and beyond, Pressure Tech will seek to continue to capitalise on its momentum and further establish itself as a leading market player, as Steve concludes: “Our focus will be on our sales and marketing strategy as we progress through 2016. The shock drop in oil pricing has clearly identified the need to look for new areas to reduce the risk of being heavily involved in the offshore market. Our £0.75m investment last year in new CNC machinery and our production facility is intended to cover our manufacturing needs up to at least £5m turnover, so we will definitely be focusing on generating the sales to ensure we generate an acceptable return on investment.”

Pressure Tech

Throughout 2016 and beyond, Pressure Tech will seek to continue to capitalise on its momentum and further establish itself as a leading market player

Pressure Tech pressure-tech.com

Services Stainless steel pressure regulators

ENERGY,oil&gas

energy-oil-gas.com

57


Fired

up

support capabilities. Moreover, by working in collaboration with customers and end users, Haven Fire & Safety is thus able to achieve cost-effective solutions that wholly meet the requirements of customers and their relevant Authority Having Jurisdiction. “We are careful to ensure that this end solution also takes in to account cost of ownership, ease of maintenance and reliable operation throughout its life, not just the initial ‘bottom line’.” This way of operating has enabled the company to prove itself in major safety related projects such as the retrofit of total fire and safety systems, packages for offshore drilling and accommodation facilities. Other significant projects include the design and supply of high and low expansion foam systems in the aviation and oil and gas sectors and integrated fire and

Based in the UAE

, with branches in Abu Dhabi (Musaffah) and Dubai (Al Quoz) industrial areas, Haven Fire & Safety has developed a leading reputation for the delivery of fire protection, engineering, supply and service for clients requiring a one-stop-shop offering for their system solutions and equipment needs. Discussing the history of Haven Fire & Safety, Managing Director Gerry Boux begins: “Haven Fire & Safety was established in early 1997 with a permanent original staff of less than ten. Historically, the company’s early roots were in marine and offshore service, but rapidly developed into a fully-fledged fire system solutions organisation enjoying fairly continuous growth up to this date with facilities throughout the UAE and a permanent staff of over 100 employees.” Elaborating further on Haven Fire & Safety’s one-stop-shop solution, he continues: “The company’s early background in marine and offshore servicing ensured that in-house facilities and capabilities were a priority from the start. Today the company has a very strong internal design and support capability, which enables us to provide the necessary overall package along with our world class principals. This covers fire detection, fire suppression, gas detection, portable fire extinguishing equipment, foam fire fighting systems, service/ maintenance as well as specialist activities such as Halon recovery/recycling and management.” Proud of its commitment to provide first class products and services by working with major players in the industry worldwide, the company also boasts unrivalled design and

58

ENERGY,oil&gas

energy-oil-gas.com

gas solutions for FPSO/FSO conversions. This diversity in markets and versatility in serving a broad customer base has led to the company enjoying steady growth over the years; it has also maintained a strong level of business despite the current difficult economic trends that are affecting the region. Although the company has continued to enjoy steady growth and demand in the market, it has used the slightly depressed economic trend to invest in the future of the business, as Gerry notes: “The company is continually investing in maintaining/updating and improving its facilities. A recent example is the procurement and installation of a proprietary cylinder agitation machine capable of handling the largest clean agent cylinders currently under production, to meet the latest requirements of UL and FM under our facility certification with those bodies. On top of this, we are always looking for talented employees to support our business, which led to us recruiting additional personnel in 2015. This has allowed us to position for


PROFILE

further growth by improving enquiry response and handling times as well as improving the efficiency of our customer interaction. Also during 2015, we adopted a cloud based service/ maintenance system across the company which provides real time monitoring of service contract status etc. This has resulted in a significant increase of our service/maintenance efficiency and certification/project tracking activities.” Alongside these developments within the business, the company has also expanded its product range with the ACAF compressed air foam systems, which offer a new approach to foam fire fighting systems for oil and gas/offshore applications. Designed and manufactured exclusively in the US by ACAF Systems-PFS Fire Suppression Group LLC, the ACAF Systems Compressed Air Foam products are suitable for industrial and commercial markets such as production and manufacturing, oil & gas, military, warehousing, marine, aviation, mining, transportation and heavy equipment. Available in 20, 30, 60, 120, 250 and 500 gallon sizes, the premium ACAF product line offers choices of skid or wheeled extinguisher configurations and is available in custom sizes upon request. Unique features include a patented mixing chamber that yields consistent foam from start to finish, a corrosion resistant stainless steel tank that eliminates the cost and maintenance associated with emptying and inspecting for rust on the inside of the tank; stainless steel, corrosion resistant connectors that resist leaking; chip resistant zinc-based paint that inhibits corrosion, no mixing of metals, which avoids interaction between the metals themselves as

Haven Fire & Safety

well as the foam agent. Haven Fire & Safety LLC’s ACAF Systems Compressed Air Product is also proven to be the more effective foam mixing / firefighting method as it utilises nitrogen gas as the primary offering. Despite the oil price leading to postponements in markets including the offshore sector, Gerry anticipates a positive future for Haven Fire & Safety LLC as it focuses on consolidating on efforts made in 2015 and finding opportunities in line with the World Expo in 2020, as Gerry concludes: “With the build up to the Dubai World Expo in 2020, we are beginning to see an increase in demand in the construction industry in general and will be focusing on 2020 related projects and infrastructure over the coming years. “Ultimately our strategic vision is to continue to consolidate and develop the company along its present path, by embracing new technologies in service/maintenance and providing cost effective, sustainable products and solutions to our clients.”

Haven Fire & Safety LLC havenfire.com

Services Leading fire protection, engineering, supply and service

ENERGY,oil&gas

energy-oil-gas.com

59


A powerful

With over 50 years of industry experience, Frerk Aggregatebau Germany has developed a leading reputation in the manufacture of electric power supply systems across a broad range of applications. The company was founded during 1964 and has operated at its current location in Schweringen, Northern Germany since 1978. During this time the business has accumulated a great wealth of experience, which enables Frerk to offer modular power supply solutions, from initial concept through to handover. Furthermore the company provides service and technical support for the entire life of the delivered system if required. The professionalism of Frerk construction means that not only does the completed system meet the customer’s individual needs, but is also produced in accordance with the necessary standards making it safe to operate even under

60

ENERGY,oil&gas

energy-oil-gas.com

the most difficult usage and environmental conditions. Since moving into its Schweringen headquarters the company has experienced a significant step-up in its capacity, beginning with the construction of a new production facility in addition to its existing four and a further four state-of-the-art test bays. This was completed in 2001 and followed by an additional production bay during 2005 to expand the plant’s total production area to 11,000 square metres. Further expansion to 25,000 square metres followed during 2008 and most recently in 2011, Frerk installed a new 1500 square metre storage building and additional office space. Finally, a 2100 square metre production bay for the reconditioning of used Caterpillar generator sets was also erected. The company’s current product line extends to generator sets with an output of up to six MW per unit in both low and medium-voltage ranges.


PROFILE PROFILE

Frerk Aggregatebau GmbH / Germany

Frerk power generating systems are available in natural and biogas, diesel, heavy fuel and crude oil as well as dual fuel configurations, enabling the client to select the most appropriate design for the most economic fuel utilisation

The applications for these vary from black-start engine generator sets to emergency power solutions and combined heat and power (CHP) packages. Frerk power generating systems are available in natural and biogas, diesel, heavy fuel and crude oil as well as dual fuel configurations, enabling the client to select the most appropriate design for the most economic fuel utilisation. Frerk only packages engines and alternators from first class manufacturers. These are selected on an independent basis in line with the best fit for the customer’s requirements. “Our main focus is on modular containerisation, preferably in standard ISO dimensions to simplify worldwide shipment. For those power generating systems where standard ISO container dimensions do not provide sufficient operation and maintenance space, Frerk is able to develop special container designs,” explains Sales and Project Director Mr. Claus Bormann.

“These allow the company to meet the target of simple and economic transport, as well as to supply all of the equipment necessary for operation at the job site, which has been installed and pre-tested.” Through the development of bespoke power generating systems, Messrs. Frerk has established itself as a market leader in innovative design solutions. Furthermore in light of decreasing resources accompanied by the increasing price of fuels, Frerk is able to supply alternative fuels and power generating systems to provide clients with an economic power generation solution. Within this application the company is able to provide systems including natural gas powered engines connected to combined heat and power units fed from any gas pipeline; biogas powered engines connected to combined heat and power units fed from sewage, landfill or biogas plants; associated gas from oil production powered ENERGY,oil&gas

energy-oil-gas.com

61


engine generating electricity for the grid; dual fuel generating sets running on 50-95 per cent natural gas and five per cent pilot diesel; heavy fuel oil (HFO) powered engines generating electricity for the grid in case there is lack of power because one water turbine power station does not provide sufficiently; and crude oil powered engines generating electricity for the grid.

62

ENERGY,oil&gas

energy-oil-gas.com

“HFO (heavy fuel oil) systems used to consist of heavy duty medium speed marine engines that were originally designed and manufactured for burning HFO with a viscosity of up to 700cSt. Because this fuel is given very little refinery treatment, the selling price is lower and transport efforts are marginal and therefore fuel oil costs are low,” Claus says. “Treating the HFO with special separators and viscosity control and regulating units can make the fuel made suitable for engines. The entire power station inclusive of fuel treatment device is designed and installed by Frerk, preferably in a modular container design or alternatively in local erected turnkey powerhouses.” Similarly the crude fuel oil systems provided by Frerk are in general based on the same power generating packages as for HFO. However, because crude oil is usually taken directly from the well, without any refinery process, further treatment is required to make the fuel usable in systems, such as filtering, separation, viscosity control and regulation. Additionally further precautions, such as explosion proof components are incorporated to the power generation units.


PROFILE PROFILE

Frerk Aggregatebau GmbH / Germany

Out of this portfolio Frerk manages a special process to design and fabricate modular containerised HFO power generation systems for rental use. The challenges in delivering this equipment to the rental market include developing systems that can be simply and economically transported by both road and sea in CSC certified containers. Likewise the simple and rapid erection of power station equipment on site, plus ‘plug and play’ concepts are vital to ensure rapid deployment. To provide a fully inclusive package, the systems provided by Frerk also include low fuels costs, standardised components for ease of operation, as well as rapid and low-cost maintenance. “All of the above design solutions can be achieved by installing HFO burning Caterpillar 9CM20 engine powered generator sets, each 1650 kWe, in 40ft super-silenced containers, with combustion and ventilation air treatment units including a horizontal outdoor radiator and exhaust gas silencer integrated into each,” Claus says. “One additional 40ft container is installed on top of the basic generator set container onsite. Both ready equipped containers are tested for function and performance to meet

the specific conditions of the job site at Frerk’s special test facility in Schweringen. Following the test, the two containers will be disconnected, all openings will be closed by means of claps or doors and then shipped abroad for easy re-assembling at the site. Once on site usually a maximum four working days will be sufficient to erect and commission the fully operational power station.” Recently Frerk has won a project to design, fabricate, test and finally install three nos. 9CM25 powered medium speed heavy fuel oil 750 rpm generator sets. Each set is a 2600 kWe at 50Hz, 6.6kV, and will be installed in a local power house to provide electricity for a marine fuel farm in Indonesia. “Frerk Aggregatebau will provide all of all systems components inclusively as well as the necessary installation materials on a turnkey base,” Claus details. “For optimum installation of the auxiliary systems, as many of the systems components as possible are modular prefabricated and skid mounted to minimise any local installation efforts, welding and machining processes. Packaging power stations in this way will also ensure the customer will receive maximum quality, even if the power station is to be erected at remote locations.” Over the course of the past five decades, Frerk Aggregatebau Germany has established itself as a premier supplier of power generating systems. Its bespoke systems, project planning and aftersales support services have made the company a leader in the field of on-site power generation that is trusted by clients in projects across the globe. During the coming months and years, through its dedication and proven industry experience, Frerk Aggregatebau will continue to serve its clients and ensure the effective supply of power, wherever it is needed.

Over the course of the past five decades, Frerk Aggregatebau Germany has established itself as a premier supplier of power generating systems. Its bespoke systems, project planning and aftersales support services have made the company a leader in the field of on-site power generation that is trusted by clients in projects across the globe Frerk - your partner for power generating systems.

Frerk Aggregatebau GmbH / Germany frerk-aggregatebau.com

Services Power generating systems

ENERGY,oil&gas

energy-oil-gas.com

63


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

energy-oil-gas.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.