Energy, Oil & Gas Issue 132 May 2016 by Finelight Media Group

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issue 132 MAY

changes Strategic

Why it is vital to review the efficiency of energy and ancillary services, and find potential opportunities to cut costs

Making progress When it comes to establishing smart grids in the UK, steps forward are being achieved

Critical decisions This yearâ&#x20AC;&#x2122;s OTC again focused on delivering a packed technical programme alongside thousands of exhibition stands

Also in this issue - Anaerobic digestion, flow meters, real estate

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

The world came to OTC to make critical decisions, share ideas and develop business partnerships to meet global energy demands

Were you at

OTC this year? I wasn’t able to attend, but from the reports I’ve seen the show was a great success, with more than 68,000 attendees from 120 countries coming through the doors. “As it has since 1969, the world came to OTC to make critical decisions, share ideas and develop business partnerships to meet global energy demands,” confirmed Joe Fowler, OTC 2016 chairman. “The commitment from OTC’s volunteers and staff ensured, regardless of the price of oil per barrel, that OTC upheld its unwavering commitment to delivering attendees unparalleled information on new technologies and global developments.” I’d love to hear some feedback from any visitors on what really caught their eye!

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

editor LIBBIE HAMMOND

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

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Regulars

Critical decisions

OTC 2016 was an impressive success, with more than 68,000 attendees from 120 countries visiting the show

Making progress

An increase in patent applications for smart grid technologies could be an indicator that smart grids are getting closer to reality

An introduction to anaerobic digestion

The process, applications and benefits of anaerobic digestion – the controlled breakdown of organic matter in a closed digester vessel

The future of flow

It can be said with confidence that smart meters are becoming smarter and are the future of flow measurement

Bricks and mortar

While market pressures are forcing a focus on cost reduction, there is a need to look at your real estate strategy

Strategic changes

Offshore efficiency and how certain improvements can support falling exploration budgets

News

Some of the recent developments within the oil and gas industry

14 2

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Profiles

24 Laggan-Tormore Project – Total E&P 30 Suomen Hyötytuuli 32 YPF Bolivia 34 Shawcor 38 Reelwell 41 JDR Cable Systems 44 OceanMaster Engineering 46 Vysiion 48 Cummins Middle East 50 Wilhelm Group 52 Norfolk Marine 55 Frese 58 VandeGrijp Group 60 Caspian Offshore Construction 62 Bohlen & Doyen 64 DUC Marine Group

Contents

66 AHI Carriers FZC 69 Shazand (Arak)

Petrochemical Company

72 VWS MPP Systems 74 Ledwood Mechanical Engineering 76 BST Supplies 78 PPS Pipeline Systems 80 Scaldis 82 DEA Deutsche Erdoel

84 Schmid AG Energy Solutions 86 Interocean 89 Archer UK 93 93 TANAP Project

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decisions Critical

ince its inception during 1969, the Offshore Technology Conference (OTC) has provided a platform for energy professionals to meet and exchange ideas and opinions regarding scientific and technical knowledge relating to offshore resources and environmental concerns. While the flagship OTC conference is held annually at NRG Park (formerly Reliant Park) in Houston, the success of the event has spurred the organisation to expand both technically and globally with the addition of the Arctic Technology Conference, OTC Brasil, OTC Asia and d5 exhibitions. Today the OTC is sponsored by 13 industry organisations and societies that work co-operatively to develop the exhibition’s technical programme. The OTC also maintains a strong network of endorsing and supporting organisations, which ensures that the event is underpinned by a broad base of technical knowledge and industry know-how. Through its industry sponsorship and supporting organisations, the OTC is able to give attendees access to leading-edge technical information, the offshore industry’s largest equipment exhibition and invaluable new professional contacts. The organisation champions the ideals of value and quality by delivering a technical programme selected by knowledgeable and experienced professionals and allowing visitors to see ground-breaking innovations and meet leading suppliers of products and services. The organisers of the OTC also ensure that the event is easily accessible and convenient for attendees. The event is always held during the full first week of May annually

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in the world’s energy capital, allowing visitors to combine OTC with client meetings, business proposals and company training. The city of Houston boasts 174 nonstop flights, world-class venues and hotels, as well as efficient and easily accessible public transportation. Through these values and strengths the event gives visitors simple access to more than 90,000 professionals from circa 120 countries, while OTC sponsoring organisations also use revenue to provide many other important programmes for its members such as training and technical journals. The first OTC exhibition was held in Houston's Albert Thomas Convention Centre and was such a success that the event grew almost overnight, resulting in the annual booking of Houston’s NRG Park. During the following 47 years the OTC has continued to grow alongside the global offshore industry, reaching an attendance of 108,300 visitors during 2014. OTC presently ranks among the largest 100 trade shows held annually within the US and is considered one of the ten largest trade meetings in terms of attendance, representing a significant forum for the offshore industry. The event is also the city of Houston’s largest convention and since 1969, OTC has generated approximately $2.5 billion in income for the city. The OTC has rapidly established itself as an important and dynamic meeting place for industry players within the offshore sector and has grown to extend its reach around the world to focus on specific and regional issues. The OTC Brasil and Arctic Technology Conference events were launched in 2011, while OTC Asia was created in 2012. During the same year the Brazilian Petroleum, Gas, and

OTC 2016 REVIEW

Biofuels Institute (IBP) was also confirmed as a regional sponsoring organisation and co-organiser of OTC Brasil. During 2013 the flagship OTC event in Houston reached a new record of more than 2,700 exhibiting companies in an exhibition space equivalent to ten US football fields, while in 2014 OTC set a new record for the size of its exhibit space, reaching some 680,025 sq ft. Over the decades OTC has maintained a leading position of relevance to the offshore energy industry and has initiated several initiatives, including all day education workshops and other programmes, to expand its service to the local and energy communities. By 2015 the OTC had hosted the largest show within its history, encompassing 695,005 sq ft. including outdoor exhibits. The sold-out 2015 event was held from the 4-7 May and attracted in excess of 94,700 attendees from 130 countries, representing the sixth largest event attendance in the 47- year history of the OTC. The conference was made up of 2682 exhibiting companies representing 37 countries, with 42 per cent of exhibitors made up of international companies. This represented an increase of 114 companies from 2568 attending exhibitors in 2014. Commenting on the success of the OTC in 2015, OTC Chairman Ed Stokes said: “OTC continues to bring the world to Houston. The record-setting number of paper submissions ensured a high-quality technical program, covering the latest innovations and applications within the industry. Coupled with superb panels, in-depth executive keynotes, a new crop of Spotlight on New Technology award winners and a record-setting exhibition, OTC drew everyone from CEOs to engineers to government officials.”

OTC 2016 has continued in this tradition and proven to be an impressive success. More than 68,000 attendees from 120 countries gathered at the annual conference, placing 2016’s OTC among the top 15 highest attended. The event again focused on delivering a packed technical programme that appeals to individuals working at all levels within the offshore business. The conference began with a breakfast discussion titled ‘The Next Chapter: How Oil and Gas Companies can adapt to the New Environment.’ Granherne Inc. Director, David Barton chaired the talk with BP’s Chief Executive, Bernard Looney acting as speaker. Mr. Looney discussed his perspective on the changing environment for the oil and gas industry, while looking ahead to the next decade and the challenges and opportunities that it presents. The opening day of OTC 2016 concentrated on the themes of ‘Thriving on Volatility: Opportunities, Challenges, and Solutions. The event also considered the ways that volatility can create challenges in the oil and gas industry, but also how it can equally breed new opportunities. In conjunction with this, OTC 2016 hosted its ‘The Next Wave 2016’ programme, which offered an opportunity for industry leaders and young professionals to share insight and experience relating to how to successfully navigate and thrive during times of volatility. Throughout the OTC 2016 programme a host of industry developments were addressed including the future of subsea separation; the need for change in major capital projects; alternative offshore gas modernisation; and cyber security assurance to name a few. The exhibition floor was sold out before the conference and was the third largest in show history at 672,300 ft², including outdoor exhibits. This year’s conference had more than 2,600 companies exhibiting. These exhibitors represented 47 countries, up from last year’s 37. Additionally, nearly 300 were new exhibitors, and international companies made up 51 per cent of exhibitors. “As it has since 1969, the world came to OTC to make critical decisions, share ideas and develop business partnerships to meet global energy demands,” concludes Joe Fowler, OTC 2016 chairman. “The commitment from OTC’s volunteers and staff ensured, regardless of the price of oil per barrel, that OTC upheld its unwavering commitment to delivering attendees unparalleled information on new technologies and global developments. Also, revenue from OTC directly benefits the member programs of its 13 nonprofit sponsoring organisations.”

Offshore Technology Conference Exhibition May 2016 For further information please visit: www.otc.org

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progress Making

According to Andrew Thompson, increased patent filing activity suggests Smart Grids are a step closer

n upturn in innovation activity in the area of Smart Grid technology in Europe is signalling a positive development in energy generation and distribution. This activity is helping to establish the infrastructure necessary to support some major scale energy projects and a growing number of localised energy producers. Desk research conducted by European intellectual property firm, Withers & Rogers, has revealed that over 450 patent applications for Smart Grid technologies were filed at the European Patent Office (EPO), based on the latest year of

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complete data1. This number has more than doubled in the space of three years and suggests a strong increase in research and development investment. Smart Grid technology is an umbrella term for interrelated technologies with the common aim of improving existing energy networks. It covers more efficient and flexible energy generation, storage and distribution, as well as allowing consumers to better control their consumption (through the use of smart meters, for example). A Smart Grid has the ability to manage a diverse input of energy sources, including wind, solar, and hydropower, as well

Smart grids

as more conventional fuel. Furthermore, an increased interconnectivity and efficient energy storage allows Smart Grids to better utilise distributed power generation, easing the pressure on central providers. As well as the focus on meeting targets for renewable energy production, there is growing interest in wind and solar energy projects as the technology becomes more accessible and cheaper to install. In addition, there are generous payback schemes, which allow consumers and other small-scale producers to sell back surplus energy to the grid and reward them with discounts on their energy costs

for doing so. Such incentives have inspired some exciting one-off energy generation projects. For example, work is nearing completion on what will soon be Europeâ&#x20AC;&#x2122;s largest floating solar power farm in Walton-on-Thames on the outskirts of London. With others also under construction, renewable energy projects on this scale are becoming an increasingly reliable source of energy. However, the growing prevalence of localised energy generation is putting pressure on an ageing national grid, which is in urgent need of modernisation. Supply from renewable energy projects is often erratic by nature â&#x20AC;&#x201C; solar

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When it comes to establishing smart grids in the UK, progress is being made. Many of the individual components that are required to establish an efficient and sustainable energy network are already in place and, as patent filing activity shows, investment in innovation is growing at a pace

panels wonâ&#x20AC;&#x2122;t produce energy at night and wind turbines donâ&#x20AC;&#x2122;t turn if there is no wind. This could lead to supply shortfalls if the situation is left unmanaged. Clearly there is a need to create an energy distribution infrastructure that is capable of taking energy from many different sources, storing it efficiently and effectively, and providing it as and when it is needed, where it is needed. It is only by casting the net as wide as possible to optimise smarter energy consumption that the grid can really become effective. Of course, in order for each individual energy initiative to fulfil its potential, supply side innovation needs to keep pace with that linked to the distribution and consumption

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of energy. For example, without establishing solid communication lines between homes and power stations, consumers do not have the ability to share usage data. Here, smart meters can play a role by providing accurate realtime data to power companies in such a way that demand is never overestimated. Similarly, by making customers aware of the real-time cost of energy, lower energy use is encouraged, especially at times of high demand and cost. Smart meters can also tie in closely with day-to-day activity by actively managing power use in the home, automatically switching off certain devices at times of peak energy demand, or making the most of cheaper energy at night. As well as improving efficiency, smart meters could also help reduce

Smart grids

some innovators have realised that one-off producers could also benefit from solutions in this area and have made some significant headway. Tesla, for example, has invented a lowcost home battery pack called Powerwall, which is small enough to be housed in customersâ&#x20AC;&#x2122; basements, garages or lofts. These packs use lithium-ion batteries that are designed to capture and store up to 10kWh of energy from wind or solar panels. Power reserves can be drawn upon when needed, for example when energy generation is not possible. A recent government white paper on smart energy investment provides a map showing investment levels in Smart Grids throughout Europe. Although general Smart Grid activity in the UK is currently the highest in Europe, it is clear that there needs to be a more even split between investment in one-off demonstration projects and long-term R&D initiatives that aim to optimise the grid for the benefit of all future users. Of course, a move to a more integrated energy market is likely to add complexity and make it even more important that the UK's national grid is able to cope. It is therefore essential that Government legislation does not hinder its development. Certainly in terms of a smart meter roll out, the government is committed to encouraging take up in millions of homes by 2020. However, measures must be taken to ensure that the grid continues to develop in a cohesive manner. When it comes to establishing smart grids in the UK, progress is being made. Many of the individual components that are required to establish an efficient and sustainable energy network are already in place and, as patent filing activity shows, investment in innovation is growing at a pace. While there is still some way to go until there is mass consumer buy-in and a solid infrastructure through which to administer home energy distribution and storage solutions, the race to establish essential standards for these new technologies is helping to fuel investment. 1 Due to the time it takes for an application to be published and to become public, the research is based on the latest complete data available.

energy theft through highlighting the misreporting of usage data. The worldwide cost of energy theft is estimated to top $200bn a year, so even a small percentage reduction can lead to significant benefits. In the race to establish essential standards for smart meter technology in the UK, a number of key players have emerged including Honeywell, Hive (owned by British Gas) and Nest (owned by Google). However, as yet there is no clear frontrunner. As standards become established, the importance of intellectual property protection comes to the fore, as this could allow companies to benefit from lucrative licensing deals in the future. While energy storage is principally a supply side problem,

withers & rogers Andrew Thompson is a patent attorney and clean tech energy specialist at European intellectual property firm Withers & Rogers. Established in 1884, Withers & Rogers LLP is a leading European intellectual property (IP) firm providing expert advice on the protection and enforcement of IP rights particularly for inventions, designs and trade marks. Reflecting the firmâ&#x20AC;&#x2122;s distinctive entrepreneurial personality, its patent and trademark attorneys come with a depth of specialist understanding and pride themselves on helping businesses to commercialise their IP. For further information please visit: withersrogers.com

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An introduction to anaerobic

digestion Martin Wager explains the process, applications and benefits of anaerobic digestion (AD)

revenue-boosting method of generating renewable energy is via anaerobic digestion (AD). This is the controlled breakdown of organic matter in a closed digester vessel. The air supply is restricted to stimulate anaerobic decomposition (unlike composting, which takes place in the presence of air). This process of decomposition, accelerated in the presence of bacteria, produces a methanerich biogas, which can then be turned into heat and electricity via a Combined Heat and Power (CHP) unit. Anaerobic digestion (AD) is an attractive proposition for suitable sites, especially for those organisations with organic waste and residues from manufacturing processes (such as food and drink) that are uneconomic to reuse or recycle. Instead, these waste products make good feedstock for AD.

How anaerobic digestion works Anaerobic digestion is a four-stage process in which the organic feedstock (containing proteins, carbohydrates and fats) is broken down by bacterial microorganisms in a sealed, heated digester tank. Typically, this takes 60 days, but it is dependent on the composition of the feedstock and the process parameters, e.g. digester temperatures. There are four stages: Stage 1: Hydrolysis, where the feedstock is broken down into simple sugars, amino acids and fatty acids Stage 2: Acidogenesis, which produces volatile fatty acids, alcohols, CO2, hydrogen sulphide and ammonia

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Stage 3: Acetogenesis, which produces acetic acid, CO2 and

hydrogen Stage 4: Methanogenesis, which converts the acetic acid,

CO2 and hydrogen into biogas (comprising 50-60 per cent methane and approx 40 per cent CO2 and trace compounds.

Digestate Some feedstocks produce an additional process by-product called digestate. This is indigestible feedstock (90â&#x20AC;&#x201C;95 per cent original volume) containing nutrient-rich materials and exhausted microorganisms with high contents of nitrogen, phosphorus and potassium. Typical uses for solid fibre and liquid digestate are soil conditioners and biofertilisers, or it may be treated and used as animal feed.

Renewables

Using biogas for CHP

Financial incentives and income

The primary use of biogas is in the generation of renewable energy, as it can be used as the combustion fuel in a Combined Heat and Power (CHP) unit. CHP, also known as cogeneration, is the simultaneous generation of renewable electrical power and heat energy (and cooling, if required). Electricity is used on-site to power production line equipment, site lighting, etc. Any excess electricity can be exported and sold to local customers or back to the local grid. Renewable heat energy is used in the site’s manufacturing processes, heating buildings, and warming the digester. Excess heat may be exported and sold to other local heat users.

Feed-in Tariffs (FiTs)/Contract for Difference (CfD), the Renewable Heat Incentive (RHI) and Renewable Obligation Certificates (ROCs) complement renewable energy savings with valuable revenue streams. These tariffs can present a fixed income for the life of the installation, based on the rate at time of construction. However, FiTs and the RHI are subject to a biannual degression, which can affect new projects. Other incomes and incentives might be derived from selling high-quality digestate as a biofertiliser, or the production and sale of biomethane for injection into the natural gas grid under the provision of the RHI tariff. Alternatively, it may be compressed and sold as transport fuel, which is eligible for Road Transport Fuel Certificates.

Biomethane

Is AD and biogas right for you?

If the biogas output is greater than required on-site, any excess capacity can be upgraded to biomethane – to the same quality as natural gas. Alternatively, the biomethane can be compressed for use as transport fuel.

You will need to check that you have the following: 1. A constant feedstock of good composition and quantity 2. Space on-site for equipment - with good access for any storage and transport. 3. A potential market for digestate - to be sold as biofertiliser. 4. A potential market for biomethane - if you are able to produce more biogas. 5. Finance for biogas - capital investment, or install under a hire purchase agreement.

What equipment is necessary for anaerobic digestion? Equipment specifications will depend on the intended use of the AD plant, i.e. whether the process will produce highquality digestate and/or is biomethane production viable. The main digestion equipment list comprises: a primary tank, digester tank, gas bag, flare and auxiliary equipment. Generation equipment includes a CHP unit, generally supplied as a packaged system, and an optional heating boiler.

The benefits of anaerobic digestion Generating on-site renewable electrical and heat energy from biogas via AD can mean energy self-sufficiency, with the benefits of increased reliability and security of supply. The combination of biogas production by AD and energy generation with CHP will result in significant energy and cost savings. CHP is around 30 per cent more efficient compared with conventional energy from fossil fuels. The potential energy savings and increased profit margins that biogas production will produce are wholly dependent on the amount of renewable energy that can be generated from the feedstock used, and whether the generated energy will be utilised on-site or exported. AD and CHP used for renewable energy generation is considered carbon neutral when biogas is used as the combustion fuel. This is because the methane is completely consumed and the amount of carbon in the CO2 exhaust gas emissions is the same as that originally absorbed during photosynthesis in the natural carbon cycle. Carbon savings will also be made by reducing or even eliminating the greenhouse gas emissions associated with transportation of food waste to landfill sites.

Environmental planning and permitting Planning permission is normally required for most new AD installations. Approval will be concerned with how the development may impact on the local environment and community. It may be necessary to undertake an Environmental Impact Assessment (EIA). The Environmental Permitting Regulations specify criteria for whether a permit or exemption is required for the operation of a new AD plant and the use of digestate. Some sites may be exempt from environmental permitting if their control of waste meets the criteria.

ENER-G Combined Power Ltd Martin Wager is Business Development Manager for ENER-G Combined Power Ltd. The UK headquartered manufacturing and engineering business is a global specialist in combined heat and power (CHP), biogas generation and anaerobic digestion. With over 30 years’ experience, more than 2625 units manufactured, some 5900 CHP running years logged and nearly two million tonnes of CO2 saved by its customers, ENER-G is the largest provider of small scale CHP units in Europe. For further information please visit: energ.co.uk/chp

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flow The future of

Craig Marshall takes a look at how smart flow meters will become smarter

Below Craig Marshall, Project Engineer at NEL

low meter technology is now highly advanced, with the next key milestone being to make the equipment more cost -effective for the end user. This process will be enabled by the correct use of flow measurement diagnostics and secondary measurements to create smarter flow meters. Advances in electronics has allowed the detailed monitoring of all the recorded data within a meter to be used as a diagnostic tool to complete a â&#x20AC;&#x2DC;health-checkâ&#x20AC;&#x2122; of the meter while it is in operation. By trending this

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information over time, changes can be linked to various flow disturbances to help resolve measurement accuracy issues. Some manufacturers have also created bespoke software for their meters, meaning that reports or live data can be accessed from anywhere in the world. Engineers can use this information to assess a meterâ&#x20AC;&#x2122;s ongoing performance, with alarms instantaneously alerting them to any problems. Additionally, trending of the data over time can then be used to provide regulators and auditors with information on the present state of meters, with the aim of reducing the need for recalibration.

Flow meters

Greater efficiency

A smarter future

Recalibrations are both costly and labour intensive, particularly when multiple meters are involved. However, incorporating diagnostics and utilising smart meters could reduce this cost. Taking a fingerprint of the diagnostic parameters during calibration can provide a traceable link to meter performance. Once the meter is installed for use in a process stream, comparing the fingerprint with calibration values can ensure no change or shift from the calibration. This provides confidence that the calibration is successfully transferred to the operating location and conditions. Using qualitative information about the meterâ&#x20AC;&#x2122;s performance and embedded technical knowledge, the resultant flowrate information can be reassessed and a confidence level applied. If there is no shift in meter diagnostics i.e. fingerprint, over a period of time, this indicates that the meter has not shifted in service and therefore does not need a recalibration. A good example of this is an ultrasonic meter with builtin diagnostic capabilities. An ultrasonic meter measures the time it takes for a pulse of ultrasound to traverse between two axially spaced transducers in both the forward and reverse directions. The ultrasound traverses through the flowing fluid medium where the signal is attenuated and distorted to some level. Measurement signal diagnostics such as signal strength, signal to noise ratio (SNR) and signal amplification (gain) can be monitored and trended over time to give an indication of meter performance. If these diagnostics do not change over the time period, there is an added confidence that the meter is still operating within specification and does not need to be recalibrated. In addition to these signal diagnostics, a functional diagnostic parameter can be used in the form of the calculated speed of sound from each measurement path in an ultrasonic meter. The speed of sound can also be calculated using knowledge of the process conditions i.e. temperature, pressure and gas composition alongside industry standard calculations. By comparing the metercalculated speed of sound with one calculated from other process measurements it is possible to further verify not only the meterâ&#x20AC;&#x2122;s performance but also the performance of the other measurement instruments involved. This technique can be used to validate a full measurement system, which can be extremely powerful and beneficial. For example, if the temperature measurement began to operate with a systematic bias, this would ripple through the speed of sound calculation method resulting in a discrepancy between the meter calculated value and the process measurement calculated value. This discrepancy would be highlighted by the alarm software and the user could take the appropriate action.

The use of diagnostics is not limited to the correction of measurement faults. For example, the use of diagnostics and secondary information will enable a condition-based monitoring recalibration timescale rather than a calendarbased one. Potentially, the benefits do not stop at extending recalibration intervals and diagnostics could take industry a step closer to the realisation of a recalibration-free utopia. If shifts in diagnostics can be detected and attributed to a specific source then models could be used to predict and correct the measured result. By having a good understanding of how diagnostics are generated in different metering technologies and how the different sources of shift in measurement performance influence their generation it may be possible to develop these relationships. Coupling this knowledge with new measurement techniques to identify and quantify the sources of shift would result in a very powerful tool for flow measurement technologies. Technology is now advancing to a point where much more computer processing can be completed in real-time allowing for the opportunity to further develop the field of diagnostics and smart metering. In the near future, the use of diagnostics could eliminate the errors associated with issues that affect meter performance. However, for true industrial scale uptake of smart meters, there will have to be evidence to support any models or systems developed in order to give end users confidence in their operation. At present, meters are much smarter than previous generations and are now able to qualitatively alert operators if something has gone wrong, but they are still unable to quantify the problem and correct themselves. Anything that can reduce the input effort and cost for the end-user such as making meters recalibration free for the entirety of their operating lives will always be of interest. With the developments in technology and growing interest in diagnostics it can be said with confidence that smart meters are becoming smarter and are the future of flow measurement.

nel Craig Marshall is Project Engineer at NEL. NEL is a world-class provider of technical consultancy, research, measurement, testing and flow measurement services to the energy and oil & gas industries, as well as government. For further information please visit: tuvnel.com

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mortar Bricks and

According to David McMillan, oil and gas companies are adjusting their corporate real estate strategies to respond to the new operational reality

he 18 months between July 2014 and the beginning of this year have been challenging for the oil and gas industry. Oil prices have fallen by more than 70 per cent, putting significant pressure on companiesâ&#x20AC;&#x2122; profit margins. A recent uplift, albeit encouraging, does not yet guarantee a permanent revival. Supply remains high, and is forecast to marginally surpass global requirements over the next two years, while oil producing countries continue to negotiate a joint protective strategy. As oil and gas companies tend to have significant capital expenditures and comparatively high space per employee ratios, they are looking at how real estate strategies can help them withstand market pressures.

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The effect the low oil price is having on real estate is multi-faceted. On the one hand, the overall impact on office real estate markets is quite limited. JLL continues to forecast increases in leasing and rental levels in 15 out of 24 key European markets in the next four years. Strong demand from other industries will maintain pressure on availability of space in prime locations, driving sustained rental growth and increasing office space costs for oil and gas companies in major European cities. On the other hand, for oil producing regions and cities heavily exposed to the industry, notably Aberdeen, UK and Stavanger, Norway the impact has been more keenly felt. Falling demand for products and services from the oil sector has had a knock on effect on these markets,

Real estate

resulting in reduced workforce requirements and slowing demand for real estate. Space requirements from smaller players and oil service companies are likely to drop further as many may lack the financial resources of the oil majors to weather the storm. In Aberdeen in particular there is a significant oversupply of corporate space. Prime headline office rents have been stable with increased incentives, which is in itself an indicator of weakened real estate market. In this time of market uncertainty, occupiers are reluctant to enter into pre-let agreements and are increasingly concerned about flexibility, workforce requirements, and space optimisation. Many have realised that they need a proactive long-term real estate strategy to be able to future-proof their business.

Above: Strategic responses from oil and gas companies are heavily focused on cost reduction

An immediate response from the oil and gas sector has been to focus on cost cutting and postpone further spending. For many companies this lead to headcount reductions and asset divestments. In the most acute examples, market pressures are forcing businesses to file bankruptcies and default on loans. According to Standard and Poorâ&#x20AC;&#x2122;s data, the oil and gas sector contributed to over a quarter of the total global corporate defaults in 2015. A number of oil and gas companies, especially those with low debt to equity ratios, are expected to explore options for raising capital and increase borrowing.

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Forward-looking companies are shaping their real estate strategies today around the talent needs of tomorrow. Whilst immediate market pressures force oil and gas companies to focus on cost reduction, there is still a strong argument for building a real estate strategy that can support the wider strategic objectives around growth, innovation, and talent

Real estate tends to be put under scrutiny when financial pressures are high. According to JLLâ&#x20AC;&#x2122;s latest Global Corporate Real Estate (CRE) Survey, 77 per cent of CRE teams reported increased demands to reduce operating expenses. Furthermore, we observe that the expectation that real estate should deliver cost savings is now part of business as usual. Adverse market conditions put additional pressure on oil and gas companies, impacting real estate strategies and demanding a plan of action from real estate teams. Real estate can deliver significant savings to the organisation, which is why many oil and gas companies are turning to proactive real estate management.

Real estate strategies to support the cost-cutting agenda Portfolio analysis and review Many oil and gas companies are reviewing and analysing their real estate portfolios. Understanding the composition and usage patterns of their corporate space helps them estimate excess costs arising out of highly expensive and underutilised locations. Forensic review of assets can identify space inefficiencies, which, when addressed in a

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timely manner, can substantially reduce operating expenses. General right sizing and consolidation of space equally supports the cost cutting agenda and improves efficiency of the corporate real estate portfolio, ensuring that the core operational requirements are met. Cost reduction Oil and gas companies are actively reviewing high cost production locations and associated real estate requirements and identifying savings from expensive offices. Many are using lease break options, subletting, and releasing excess space where demand from space remains strong. This way oil and gas companies can substantially reduce their costs without compromising on key locations. Many companies are benefiting from lease restructuring for the core locations, improving efficiency of their contract arrangements. Monetisation of assets Similarly, there has been a greater focus on capital-raising and exit options from core and non-operational portfolios, as occupiers with owned real estate seek to take advantage of wellperforming real estate investment markets. Since for many oil and gas leaders growth is still a priority, capital raised through

Real estate

the sale of real estate can be reinvested back into the business to support operations and business expansion. Increasing flexibility and agility of the portfolio The results of JLLâ&#x20AC;&#x2122;s Global Corporate Real Estate Survey suggest that well over half (64 per cent) of CRE executives experienced increased demand for bringing more flexibility to the leasehold portfolio and on-demand space. This trend is particularly relevant to the oil and gas sector, which in the current climate, is exposed to volatilities in workforce requirements and increasing disruption of traditional operational models by transformative technologies. Finally, as some larger and more financially robust companies are taking the opportunity to capitalise on the low oil price phenomenon and acquire assets and stakes at below-market value, the industry is likely to see some increase in targeted M&A activity in the near future. Those companies considering acquisitions should be preparing their real estate portfolios for the coming changes. M&A activity frequently becomes a catalyst for optimising space and taking a fresh look at how corporate real estate strategy can support wider strategic objectives. Growing global concerns around talent attraction and

retention are encouraging business leaders to evaluate their workplace environments. For oil and gas companies this is a great time to tackle pending talent shortfall as the current generation of senior executives begin to look towards retirement. Forward-looking companies are shaping their real estate strategies today around the talent needs of tomorrow. Whilst immediate market pressures force oil and gas companies to focus on cost reduction, there is still a strong argument for building a real estate strategy that can support the wider strategic objectives around growth, innovation, and talent.

jll David McMillan is Director & Energy Sector Lead, JLL. JLL is a professional services and investment management firm offering specialised real estate services to clients seeking increased value by owning, occupying and investing in real estate. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square metres, and completed $138 billion in sales, acquisitions and finance transactions in 2015. For further information please visit: jll.com

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changes Strategic

Dan Ibbetson takes a look at offshore efficiency, and how certain improvements can support falling exploration budgets

hether theyâ&#x20AC;&#x2122;re based in the North Sea or South America, oil storage tanks on platforms or Floating, Production, Storage Above and Offloading (FPSO) vessels require Dan Ibbetson, cleaning and maintenance once or twice Managing Director oC conditions are too hazardous, deadly a year. The 90 for Aggreko Northern Europe in fact, for workers to operate in and even at 25oC after concentrated cooling, they can only work in the confined space for around 15 minutes. The process would normally take three days; so reaching the required temperature in one day has significant financial benefits. The quicker a space is cooled to a safe temperature, the faster technicians can do their work and the operation

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can commence, and also reduce fuel costs. This mind-set should be adopted in every aspect of an operation. Effective temperature control technology plays a major role in the health and safety of employees and an operationâ&#x20AC;&#x2122;s ability to function. Its level of efficiency and impact on energy demands however also have more underlying consequences for productivity, operational expenditure and a projectâ&#x20AC;&#x2122;s bottom line. While demand for fossil fuel grows in line with energy consumption, and the oil price falls, as global storage figures rise, producers are under increasing pressure to reduce overheads. Only those that can adapt will overcome this challenging environment and prove profitable in the long

Efficiency measures

term – particularly those still bold enough to explore further offshore. Reviewing the efficiency of energy and ancillary services, and potential opportunities to cut costs, is vital to achieving this. In spring 2015 Wood Mackenzie predicted that offshore exploration budgets would fall by 33 per cent by 2016 as a result of declining opportunities, with improvements to efficiency expected to contribute five per cent towards cost cuts. More recently, Oil & Gas UK has announced that in spite of a rise in production last year, the declining oil price resulted in revenues falling by 30 per cent, again creating a stronger need to implement more cost-effective operations. The formation of ‘The Efficiency Task Force’ (ETF) in September 2015, which is driving attitude and behavioural change, demonstrates how high up cutting costs is on the industry’s agenda. While some companies are cutting jobs and extending operating periods, standardising processes and enabling shared resources, as well as simplifying complex operations, are emerging as significant strategic changes to save costs. Reducing fuel and energy costs is only one component of the wider issue. Re-assessing energy generation needs and adopting efficient, cost-effective energy strategies is a smart solution to avoid high operational costs but these are not always obvious. Similar to cooling, minimising downtime by mitigating the risk of power loss is vital to the operation regardless of expense. Doing this efficiently cannot only save, but also prevent rising costs. Reliability and flexibility are the keys here. One of the first priorities at the start of a project is adopting a reliable power supply that is tailored to the operation’s specific needs. On-site energy generation is typically provided by gas turbines, which can be expensive to operate and emit high levels of CO2. If a platform can be self-sufficient in its energy generation, there are obvious fuel consumption savings with reduced financial and environmental impacts. The economic and environmental benefits of offshore renewable energy sources on platforms are clear and as a result, gas-wind hybrid generation is growing in popularity, as is using operational waste gas. Reliability, however, remains a crucial factor. Reducing fuel consumption is meaningless if disruptions caused by intermittency cause greater expense and inefficiencies. Regardless of how energy is generated, having a contingency plan in place such as on-site back-up generators will avoid interruptions and help to maintain optimal productivity levels if this failed. It will also avoid the added expense of re-start costs and prevent potential litigation expenses associated with compromised health and safety. Minimising disruption, and loss of productivity during maintenance of turbines, whether it is planned or unplanned,

creates a smoother operation. The flexibility and relatively small footprint of modular power generation means that it can be easily integrated into a platform or FPSO’s generation infrastructure. They can also supplement the extra capacity demand associated with other operational maintenance needs, as and when needed. Similarly, load testing of equipment plays a key role in mitigating the risk of disruptions. Powering FPSOs for example is a major ongoing cost for producers – carrying out load bank testing of power systems prior to completion is vital to ensure they will meet capacity needs when fully operational, hundreds of miles offshore. Not only does this process mitigate the risk of power loss and associated costs, it also ensures production levels are met throughout the duration of the production and voyage periods. With energy consumption expected to rise by more than a third in the next 20 years, fossil fuels are set to supply around 60 per cent despite recent environmental policy changes. As a result, oil and gas operators can anticipate even greater pressures to meet demand while reducing costs. As a result of diminishing deepwater exploration opportunities and the falling value of oil, firms are gradually moving their investment out of the sector into others in their portfolio. Some are coming out of the sector completely. Improving efficiency and reducing costs will support the cause for continuing to invest in these operations. The landscape will undoubtedly see more dramatic changes in coming decades. As the global energy agenda continues to evolve and carbon emission regulations become increasingly stringent, more efficient and environmentally friendly oil and gas operations are essential. Until the renewables sector becomes more reliable and takes ownership of a larger proportion of capacity generation, the pressure on oil producers will continue.

aggreko Dan Ibbetson is Aggreko Managing Director for Northern Europe. Aggreko is the global leader in mobile power and temperature control solutions, operating in 204 locations worldwide. Its Power Solutions business operates in emerging markets, while its Rental Solutions arm is the market leader in oil and gas, petrochemical and refining, and mining industries, hiring equipment to customers to operate with the expertise and support of Aggreko technical teams. For further information please visit: aggreko.com/industries/oil-gas

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News

In Brief Light fantastic Lighting specialist Glamox has introduced a groundbreaking range of explosion-protected (Ex e) LED light fittings for Zone 1 hazardous areas, including oil & gas installations, where reduction of lighting maintenance and operating costs are critical. The TX60 range of LED light fittings are specifically designed to enable rapid, easy replacement of existing T8 fluorescent light fittings without requiring any additional design or installation changes.

Contract extension Archer Limited has announced a two-year extension of its contract for platform drilling services, as Statoil exercises the first option following the original four-year contract, with two additional two-year extension options remaining. Archer is currently the incumbent contractor for the Statfjord A, B and C platforms and was additionally awarded the Njord, Sleipner A, Snorre A and B, and Visund platforms under this extension.

Sellafield contract Effective from April 2016, WYG has been awarded the Civil Inspection and Topographical Surveying Services Term Contract at Sellafield. This contract is worth up to £1.8 million a year over the next three years, with an option to extend for a further year. A highly-skilled team will undertake the work. In particular, they will ensure the delivery of civil, structural and architectural inspections following the asset management principles of ISO 55000.

Solar farm support Anesco has played a key role in a groundbreaking new community solar farm near Stratford-upon-Avon, which will provide a long term funding stream for local charity groups over the next 25 years. Surplus profits from the sale of power will be fed into a community fund that directly benefits local people. Local projects and charities that will benefit include The Stratford Hospital Appeal, which is aiming to raise £1 million.

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£1 million investment Aberdeenshire-based Oilfield Machinery Ltd (OilMac) has invested almost £1 million into new premises in Forfar to facilitate client demand for cost effective serviced storage solutions. The move was supported with significant funding from Clydesdale Bank in a deal facilitated by Commercial Relationship Manager Ian Grant. The expansion has created two new job posts within the company, including the appointment of David Walker as financial director to enable the business to achieve its growth potential. Alex Fyfe, managing director at OilMac, said: “Investing in expanding our site in Forfar allows us to offer additional serviced storage to our clients at highly competitive rates and, in turn, to address storage cost issues being encountered by many of our customers.” He continued: “The increased storage space also provides us with the ability to source further surplus oil and gas equipment. By offering unused equipment, off the shelf, it ensures a quicker leadtime for clients - as we increase our available stock, it increases the likelihood that we will have the exact equipment our clients require. This all leads to significant cost savings for the client.”

Ready to face the future? The energy industry will need to forge new strategies to overcome significant challenges ahead, according to a new report released by Oliver Wyman. The international management consultancy firm has launched its second annual Energy Journal, which defines the latest thinking around macro-trends and micro-developments. “Change has become the new constant in the energy industry, with continuing pressure from record low oil prices, an excess of supply and not enough global demand,” said Francois Austin, Head of Oliver Wyman’s Energy Practice. “Unprecedented shifts are forcing oil and gas companies, utilities, governments, investors, regulators and even consumers to rethink basic assumptions that have guided the energy sector for decades worldwide. To stay ahead of the profound transformation under way, business and government leaders must forge new strategies, operating models and risk mitigation tactics.” The predictions for 2016 are around oil prices, demand/supply and energy M&A trends, and on that point Austin notes: “Deal-making in the oil and gas industry has been subdued as highly volatile oil prices have led potential buyers to sit on their hands. Though low oil prices typically produce more M&A, potential buyers may decide to wait for greater stability that may better align buyers and sellers on asset valuations.”

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MARKOS

MARKOS - Your Vision, Your Composites Manufacturer MARKOS is a fibre reinforced composites manufacturer located in the north of Poland with 25 years of experience and over 500 employees. Through implementation of Lean Manufacturing MARKOSâ&#x20AC;&#x2122; team has constantly been improving and optimising both the company and its performance. From the very beginning, since wind generators entered the market, MARKOS has been co-operating with global leaders manufacturing nacelles and hub covers for generators. Parts for wind generators are produced with open mould technology, RTM technology, vacuum bag or resin infusion. Lifeboats and rescue boats have been produced by MARKOS almost since the company's early beginning. In 1992 MARKOS started co-operation with the German company Fr. Fassmer, which resulted in wide and constant extension of the range of manufactured products. MARKOS has also been co-operating with producers of luxury sailing yachts and powerboats for many years. MARKOS manufactures flydecks, frames, ceilings, sanitary segments, platforms and other elements. RIBs production is growing very fast - hulls, with characteristic rubber tube around and mighty engines at transom can be seen frequently during the holiday season. Those boats are multi-purpose and they are successfully used by the police, coast guard, army and private owners. Leisure boats cruising European canals, rivers and lakes are often designed and manufactured by MARKOS. They are used for personal, family and sometimes sportsmanlike recreation. MARKOSâ&#x20AC;&#x2122; R&D Department and Design Office offer wide services, ranging from concept development and converting the discovered concept to 3D CAD models, CNC machining and the production.

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

RAVESTEIN

SKYJACK Ravestein is building a 3000 tonne capacity submersible jack-up dock (patent) called SKYJACK 3000. The SKYJACK 3000 is 60 metres long and 28 metres wide with a payload of 3000 tonnes. The legs are 52 metres long with a diameter of two metres. The submersible SKYJACK 3000 is currently under construction at Ravesteinâ&#x20AC;&#x2122;s own shipyard facility on the River Waal at Deest, The Netherlands and will be ready for charter in June 2016. SKYJACK is a submersible jack-up dock, which is able to operate offshore at high capacity to enable the delivery of equipment needed for offshore projects and to take redundant equipment away for repair or re-cycling, as well as for the transport of heavy parts for the purpose of offshore windfarms. The design is unique, as it does not need cranes, being a float-on float-off submersible and towable platform. Which also gives the SKYJACK the ability to be used as a barge to transport equipment, as it has a large deck area complete with a control room on top of the jackhouse. By being non-propelled, this kept the unit simple and cost effective to construct and to transport by way of a tug. Ravestein is able to offer a complete package of full logistics and operations, including marine engineering and project management. Ravestein has also developed a 16,000 tonnes capacity SKYJACK (with Lloydâ&#x20AC;&#x2122;s Class) that could be built for specific jobs. For example, the transport of gravity bases for offshore wind farms and dismantling oilrigs - a market that it expected to grow significantly during the next 20 years. Two SKYJACKS with a total capacity of 32,000 tonnes can be used for oil & gas platform de-commissioning works. This is to be done by jacking it up from its jacket and removing it. A methodology for dismantling rigs has been devised by Ravestein.

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

News

New CEO for ALL NRG Group

Revolution moves closer Grangemouth’s KG ethylene plant’s

On 1 March 2016, Ken Soerensen became CEO of ALL NRG Group. For the last four years, Ken has been head of Global Product Line Service Wind at Siemens Wind Power, and also has an extensive international background at Broen A/S and The Boston Consulting Group. “We foresee substantial growth of the Group in the coming years, and Ken’s unique insight into the service market from his time with Siemens Wind Power will be crucial in our future strategy work,” says Peter Thorlund Haahr, board chairman of ALL NRG Group. “Ken is a skilled businessman with great analytical capacity and he has the will power and the ability to execute. With Ken’s solid executive background and strong communication skills, we have found the right man who can help us take the next step towards becoming the leading supplier of competent solutions for the energy industry.” “ALL NRG Group is an exciting setup, with a great potential for growth, which I am very happy to be heading. During my time at Siemens Wind Power, I saw how important it is with competent subcontractors, who are able to help the OEMs in the continuing effort to lower the costs of wind energy. I already know several of the companies within ALL NRG Group from the customer side, and I consider them highly competent in their respective fields. All companies within ALL NRG have strong track records as independent companies, and there are significant synergies between them, which can be exploited going forward. I believe there is a need for consolidation in the industry, and I find the idea behind ALL NRG - a company with many complementary competencies - as highly visionary,” says Ken Sørensen. “I believe in partnerships. Based on the competencies ALL NRG already possesses and the plans I have discussed with the supervisory board, I feel confident that I can contribute to making ALL NRG Group an even more attractive partner in the coming years.”

Largest UK airport PPA solar project Lightsource Renewable Energy has signed a 25-year Power Purchase Agreement (PPA) with Belfast International Airport for the largest solar project to connect to a UK airport. Lightsource will hardwire a 4.84MWp off-site solar farm into the Belfast International Airport private network - providing 27 per cent of the airport’s annual electricity demand. The entire project is being funded, installed and operated by Lightsource. Belfast International Airport will buy the clean electricity produced by the solar farm via a private wire, which connects the installation directly to the user without connecting to the national grid. By hard-wiring the solar farm directly into the airport, Lightsource will provide the airport with a source of renewable electricity, reduced energy costs and give a boost to their green credentials - with a saving of 2345 tonnes of carbon emission each year. Nick Boyle, CEO at Lightsource, said: “There remains huge opportunity for solar energy around the UK and Ireland. Large-scale PPA solar projects provide businesses with an opportunity to do just that by allowing them to fix their energy costs without the need for upfront investment.”

second manufacturing unit has been brought back to life eight years after being mothballed and INEOS has successfully completed operational trials as it prepares to receive shale gas ethane from the USA. “We are now in great shape to

REAL COPY

receive shale gas from the US and to finally run the Grangemouth plant at full rate,” says Gordon Milne, INEOS Grangemouth Operations Director.

REAL COPY

“When US shale gas finally arrives here in the autumn, this plant will move

into the premier league of European petrochemical plants. John McNally, CEO INEOS Grangemouth adds: “Bringing the site back into profitability is the best way to secure our future here in Scotland. We know that ethane from US shale gas has transformed US manufacturing and we are now a step closer to seeing this advantage being brought to here to Grangemouth.” The new import terminal at Grangemouth will also benefit the Fife Ethylene Plant facility in Mossmorran, Scotland after it was announced that the owners of the plant had agreed a long-term sale and purchase agreement to secure ethane from mid 2017. Access to this new source of feedstock will help complement supplies from North Sea natural gas fields. The agreement will also ensure the competitiveness of an additional major manufacturing facility in Scotland and help secure skilled jobs in the long run.

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Pushing the

boundaries In February 2016

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

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The Laggan field was first discovered in 1986, but it wasn’t until the discovery of the neighbouring Tormore field in 2007 that gas production in the region became economically viable and in 2010 the project to extract these resources and supply into the UK network via SGP and the Shetland Island Regional Gas Export pipeline (SIRGE) was sanctioned. Over the six years that followed, a hugely complex design, build and commissioning programme took place to develop the innovative subsea-toshore concept. Located at a depth of 600 metres, four wells are connected back to the Shetland-based gas plant via two 143km long 18” import lines, one of the longest tiebacks in the world. “We

PROFILE

Laggan-Tormore Project – Total E&P UK

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

are really pushing the extremes in terms of tieback distance whilst operating in such deep water,” explains Simon Hare, Operations Manager for the project. “In terms of technical feasibility, especially considering the harsh metocean conditions of this area, you can’t build a fixed platform in 600 metres of water. Floating systems were also ruled out as being inappropriate for a gas field development, so it was decided that a subsea tieback solution would be best for the Laggan-Tormore project. “This also eliminates the need to have personnel offshore, which has massive safety benefits. The onshore gas plant can be spread out and the risk of an incident occurring is reduced compared to an offshore installation.

Similarly, the logistics of operating an onshore plant are much simpler. We are also able to operate independent of the weather thanks to the whole design philosophy for the subsea installations which is centred on high reliability and redundancy. This means if we are unfortunate enough to experience any subsea equipment failures over the winter period we should be able to wait until a more clement time of the year when we can mobilise intervention vessels to fix them.” To mitigate many of the weather challenges during the construction phase of the gas plant, much of the construction work was carried out by building modules in the Middle East which were then shipped to and installed at site. ENERGY,oil&gas

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PROFILE

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

Laggan-Tormore Project – Total E&P UK

Working with multiple contractors and suppliers from around the world, a total of 2800 people were working on Shetland at the project’s peak. The SGP facility is designed to dehydrate and process gas for export into the FUKA system and the UK distribution network via the newly installed 234km SIRGE export pipeline. Condensate is partially stabilised on SGP prior to export to the Sullom Voe Terminal where it is stabilised and then exported via tankers. In terms of equipment and processes used, Simon notes that the best available technology and components were used both in terms of performance and environmental impact. “Two examples of this advanced technology are the MEG (mono-ethylene glycol – antifreeze) regeneration and water treatment systems,” he highlights. “The MEG is necessary

to stop hydrates forming in the subsea pipelines whilst transporting gas from the wells, but it is very expensive so we have installed a regeneration system to separate it from the gas, condensate and water before injecting it back into the subsea wells. Whilst it’s not the first time for a system like this to be used, it isn’t very common in the offshore industry, as it’s very complex with heat exchangers, pumps, distillation columns, separators, mixing vessels, filter presses and centrifuges. “In terms of water treatment, for an offshore platform to put water back into the sea you have to have no more than 30mg of oil per litre, but because we are discharging close to the shoreline in a sensitive environment the limits tighten to just 3mg/l, meaning we have to employ completely different technologies that are closer to those you find in a refinery waste water treatment plant.” This adherence to environmental regulation is an inherent part of developing any major oil and gas project, but Total’s responsibility to ecological and social sustainability has extended much further than this. The company has ensured that the plant can provide vital economic benefits to the Shetland Islands and has taken significant steps to engage local populations at every stage of the development. “We have worked with the communities right from day one to achieve two key things,” Simon indicates. “Firstly, that we cause as little disruption as possible to the local population, and secondly that we can benefit ENERGY,oil&gas

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PROFILE

Laggan-Tormore Project – Total E&P UK

the economy during the different phases of the project and in the future. “For instance, in normal operation a total of around 230 people will be employed directly or indirectly by the plant and around 80 of these are Shetlanders. We employ 15 apprentices from the island and have put them through the OPITO training scheme to become production technicians – this has proven to be incredibly successful. Beyond this, we have set up contracts with local businesses and suppliers to ensure that we make use of the services provided on the island and help contribute to the economy. We also work in partnership with schools, charitable organisations and the local authority on projects linked to our corporate social responsibility programme. “In terms of environmental protection, our focus covers everything from the careful protection of local wildlife to the preservation of 700,000 cubic metres of peat, which is being held in two large peat stores on site ready to be put back when the plant is eventually decommissioned.” Simon points out that this culture and attention to detail has been adopted widely by all workers on site and has resulted in an ‘Excellent’ rating from SEPA (Scottish Environment Protection Agency) in 2015 for its levels of compliance.

Safety remains a core value and has always been an important part of Total’s operations throughout the Laggan-Tormore Project. Across a total of 43 million man-hours, zero fatalities and only 16 lost time injuries occurred. This commitment to safety continues into the operational phase. Helping to support the development and operation of the Laggan-Tormore project are DONG E&P (UK) and SSE E&P (UK), both of whom hold a 20 per cent share. Simon highlights that DONG’s longstanding experience in the Shetland area and with deepwater tieback projects made DONG a very valuable partner throughout the programme, whilst SSE’s operational excellence brings key benefits as it looks to expand its own North Sea gas capacity. Looking ahead, the development of the Laggan-Tormore fields and the Shetland Gas Plant provides a sturdy platform upon which to open up new opportunities. The Edradour and Glenlivet fields, for example, are both located in close proximity to the existing Laggan-Tormore subsea facilities. “By themselves these would never have been economically viable, but because LagganTormore is already in place it allows us to install a relatively simple tieback into the existing pipelines and control systems in order to bring them in to production,” Simon outlines. “This project was given the go ahead in 2014 and Edradour is due to come on-stream in October 2017 with Glenlivet following in September 2018. This provides a great opportunity for the future of the gas industry in Shetland, as other stranded gas fields could be exploited through the existing infrastructure, making it a very exciting position to be in as we move forward.”

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

Total E&P total.uk

Project Shetland Gas Plant/ Laggan-Tormore Project

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Favourable wind

for Finland through

renewable energy

Founded with a mission

OFFSHORE SERVICES JAN DE NUL GROUP Services for the offshore oil, gas and renewable energy industries are a key part of the services provided by Jan De Nul Group. The Group provides services related to the installation of offshore wind farms, including installation of export and inter array cables, transport and installation of all types of foundations and high voltage stations, installation of scour protection around the foundations, and installation of the entire wind turbines itself. The combination of design and detailed engineering and all aspects of civil works, dredging works and rock and marine installation works enable Jan De Nul Group to offer a total package on an EPCI basis. The Group’s in-house engineering department provides clients with FEED design for the selection of foundation and for all aspects of the construction and installation.

to produce energy through wind power and to carry out marketing, research and development relating to wind power generation, Suomen Hyötytuuli Oy is owned by shareholders that comprise eight major Finnish energy companies. Across its operations, Suomen Hyötytuuli has significantly promoted Finnish wind power production, and was the first company in the country to introduce a megawatt-scale wind farm. “Suomen Hyötytuuli was established in 1998, and the first one megawatt turbines were built in Pori, Finland, during 1999,” explains Managing Director Toni Sulameri. Since then, the company has grown into one of the most important Finnish companies within the field of wind power with two wind farms in Raahe, Northern Ostrobothnia, including Kuljunniemi wind farm, Nikkarinkaarto wind farm that will be inaugurated during summer 2016, and the Reposaari wind farm in Pori.

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

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Nul. The offshore wind turbines will be located around Finland’s first offshore wind pilot turbine completed in 2010. Suomen Hyötytuuli expects wind power production to continue to expand into the sea due to better wind conditions and the possibility of building large-scale offshore wind farms. The project is feasible in terms of its technical requirements, as the area has excellent infrastructure and wind conditions.

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

PROFILE

Suomen Hyötytuuli Oy

Potential renewable energy form for Finland

Plans to increase capacity

“As a company, we see the role of wind power in Finland as being very important. In comparison to other renewable energy forms, wind power undeniably has some of the most potential in helping to reach climate targets within the region. For example, there is an EU target to reduce greenhouse gases by 40 per cent between 1990 and 2030 which will increase the share of renewable energy to at least 27 per cent, while the carbon neutral Finland objective targets to reduce greenhouse gases by even 95 per cent from the 1990 level to 2050. There is also a national wind power production target of six TWh by 2020, and nine TWh by 2025,” Sulameri says. “Currently Finland does not have enough of its own energy production, and old capacity is being taken out of use, which means that there will be a great need for new renewable energy production. Which part of that will be comprised of wind energy remains to be seen. Bioenergy is also a significant alternative for Finland.”

During the coming years, Suomen Hyötytuuli will continue in its mission to further Finland’s renewable energy capacity through the development of new wind farms. For example, the company is also planning a wind farm of ten wind turbines in Annankangas in the city of Raahe. Current and future projects, combined with the advantage of being owned by eight of Finland’s leading energy companies, will ensure that the company will remain a key player in the country’s energy future. “Over the next 18 months, we will focus on building new wind power capacity. During the same period, we will plan further projects while taking into consideration that national subsidies for renewable energy producers are currently going through major changes, which raises some questions over the future energy price.”

Suomen Hyötytuuli Oy, Finland hyotytuuli.fi

Services Wind power production

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economy

Energising an

Yacimientos Petroliferos Fiscales Bolivianos (YPFB) was first founded in 1936 by the Bolivian government following regional conflicts over the alleged existence of oil. What emerged was a very swift nationalisation of all Bolivia’s energy resources and the pillars of the company’s continued development were built through a thorough and professional training programme. For its first few decades YPFB experienced significant growth with the state supporting the construction of refineries, pipelines and important infrastructure to take its products to market in the forties. In the fifties, a decade often referred to as the business’s ‘Golden Stage’, the company hit a major milestone by, for the first time, exceeding domestic demand and allowing Bolivia to become an oil export nation, thus eliminating its need to import. Thanks to the construction of the Camiri-Yacuiba and Sica SicaArica pipelines, exports to neighbouring began. The sixties continued much of this positive development as the firm started to attract foreign investment into the continued exploration and drilling and in 1966 excellent results were born from the Monteagudo well. This decade also marked the creation of the Gas Division, which began exporting to Argentina in the seventies. Following this strong period of development, however, Bolivia and YPFB experienced social and political instability, which saw the company ‘dismembered’ by private investment. Yet during the 2000s, after continued civil unrest, nationalisation was restored and today, upon its 80th anniversary, the company continues its successful operation as the sole authority over the production and marketing of hydrocarbon products in Bolivia. At present YPFB is heavily committed to developing the industrialisation of its energy resources across Bolivia, and as such numerous growth projects have been put in place over recent years. In August of 2015 for instance a new hydrocarbon liquid separation plant went

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into operation. With the capacity to produce 2247 metric tonnes per day (TMD) of LPG and process 32 million cubic metres of natural gas per day, the new Gran Chaco plant in the Tarija region of Bolivia cost around 640 million USD and is the largest in the country – in fact it is that third largest of its kind in Latin America. Highlighting the significance of this plant, the current domestic consumption of LPG in Bolivia is around 1000 TMD making the state a key net exporter in the region. This increase in capacity is a key indicator to YFPB’s current state-led development programme which, over the next few years to 2020, will see additional investment of 12,681 million USD into the strengthening of exploration activities and the development of marketing activities across Bolivia. The majority of this – 57 per cent to be precise – will be directed towards the exploration and exploitation of hydrocarbons with the goal to increasing natural gas reserves from 10.45 trillion cubic feet (TCF) in 2013 to 17.45 TCF in 2020, and liquid hydrocarbon reserves from 211 MMbbl to 411 MMbbl over the same period. In turn this will allow for the increase of production from 60 MMmcd to 73 MMmcd, meeting the demand of both domestic supply and export contracts to Brazil and Argentina. In addition to this 2657 million USD will be allocated to the industrialisation of hydrocarbon activities in the market, with much of this aimed at the conclusion of a Urea and Ammonia Plant in the town of Bulo Bulo in the province of Cochabamba Carrasco. Set to begin operations in the second half of 2016, with its first bags of fertiliser hitting the market in time for the 2017 harvest, the new complex will have a production capacity of 1200 TMD of ammonia, and subsequent output of 2100 TMD of urea fertiliser. The impact of the plant will help serve the growing demand for high quality fertiliser

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in Bolivia, thus driving the modernisation of agriculture, whilst also creating value for its own natural gas supply and reducing the market’s import reliance. Further industrialisation projects include the building of a new propylene and polypropylene plant in Tarija, which is set for completion and start-up in 2021. The investment will also help continue the development of the country’s hydrocarbon transport infrastructure and around 871 million USD will be allocated to an important social project to connect a million households to the LNG network. The aim is to create 100,000 additional connections every year from 2016 to 2020, benefiting more than 50 per cent of the country’s population. Helping to deliver this is the establishment of a virtual gas network to compliment the conventional systems that fail to reach some of the most remote areas of Bolivia. By using a fleet of LNG tankers plus a network of satellite regasification stations, LNG will be transported from the Rio Grande liquid separation plant to

these remote populations, helping to not only boost the industrial productivity of Bolivia, but also improve the lives of its families and reduce their reliance on LPG and gasoline. It is no secret that Bolivia has experienced a tumultuous and challenging history and this has often impacted YPFB quite considerably. However, under a strong leadership and focused expansion strategy, the present state of growth and development as a national company serving the economic needs of its population, is extraordinary. Significant investment continues to be delivered into some of the most hugely important projects, which is allowing both reserve and production capacity to increase. With a focus on not only the industrialisation of Bolivia’s hydrocarbon activity, but also on the support of its people, YPFB’s activities are playing a key role in the growth of both the country’s domestic and export economy and looks set to secure a bright future for years to come. Source: all statistics taken from www.ypfb.gob.bo/es/

YPF BolivIa

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

YPF Bolivia ypfb.gob.bo

Services Bolivia’s state owned oil and gas company

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elements

When

Energy, Oil and Gas last spoke with Shawcor back in October 2014, the company was known commonly as Bredero Shaw by the market. Over the time since, Shawcor, the world’s leading integrated energy services provider, has undergone a process of change under the leadership of a new CEO with many of its brands consolidating under one banner. In total over the last 18 months, four individual businesses: namely Bredero Shaw, Socotherm,

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

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companies began at the start of 2016 and is still ongoing. Eventually the four businesses will fall under the same organisation and as a consequence we can provide a broader range of end-to-end coating solutions globally.” The division now provides customers a variety of integrated coating targeted towards onshore and offshore applications. Bredero Shaw and Socotherm traditionally hold a leading position in thermal insulation coatings, anti-corrosion coatings, internal coatings and concrete weight coatings for on and offshore pipelines. Canusa-CPS brings years of developing fieldapplied coatings. Dhatec’s preservation and transportation protection solutions complete the line-up. “We are the only company that can provide a real end-to-end coating solution,” Fernando says. “I think this is where our strength as a business lies. We have the technical knowledge from two of the biggest companies in the market, combined with the leading expertise of more niche segments. The other big strength is our operational excellence in executing big projects. We can provide solutions from different plants across the world.” One such project that perfectly illustrates this capability is a recently completed contract to coat 140 miles of 44” carbon steel pipe for the Wheatstone project, one of Australia’s largest and most prolific LNG resource programmes. Using SureFlow internal coating and HeviCote concrete weight coating, Shawcor’s pipeline performance business was chosen to protect and optimise flow efficiency across the trunklines and flowlines needed for gas and condensate gathering, processing and exporting. To maximise offshore flow assurance and provide the required insulation necessary to maintain temperature on the infield flowlines, the company also coated 45 miles of 24” corrosionresistant alloy production lines, 14” CRA utility lines and 6” carbon mono ethylene glycol lines with a three-layer polypropylene anti-corrosion coating and Thermotite polypropylene insulation coating. Shawcor was also able to employ its End Seal Tape solution, an innovative system designed to mitigate moisture absorption at the cutback areas, ensuring damage-free cutbacks during field application. Crucial to delivering the project on time and on budget, two of Shawcor’s worldclass manufacturing facilities based in Indonesia and Malaysia provided ideal local sites from which to deliver flexibility, rapid execution and

Shawcor

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

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

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Shawcor

competition, particularly in today’s challenging market conditions. “We are not seeing much new activity out there at the moment,” Fernando explains. “Luckily, we are still executing on projects previously secured and look forward to winning bids on several large projects.” Shawcor predicts that the market should start to show signs of picking back up by 2017, with

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the company’s activity rising accordingly shortly afterwards. “In the meantime it is important that we continue developing new solutions and over the coming months we will be looking at controlling our costs and consolidating our operations to improve overall performance in the market,” he says. “We are also looking to actively participate in more strategic partnerships with customers around the world, especially in relation to further product development – I think this is much the same across the rest of the Shawcor group.” With the capacity to deliver a wide range of projects and services, Shawcor’s pipeline performance division is perfectly positioned to take advantage of any improving conditions in the oil and gas market as and when they come about. Like many companies however, using this downtime to consolidate operations, improve cost efficiencies and enhance performance, will likely prove key to emerging stronger than ever and taking on even more challenges well into the future.

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

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

Local relationships

Significant cost savings on engineering and procurement

Access to our global pool of knowledge

Assurance on quality of service through our universal quality management system

We offer unrivaled project delivery, engineering and consulting services throughout your asset life cycle. All delivered through a combination of local support, networked to our high value engineering centre. Cost efficent. Quality assured. www.woodgroup.com/kenny

further Reaching

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

Since the company

was founded during 2004, Reelwell AS has dedicated over a decade to the development and promotion of its pioneering Reelwell Drilling Method (RDM). Reelwell operates from its base within Stavanger, Norway from where it unveiled its RDM technology introducing new concepts that challenge traditional methods of Managed Pressure Drilling (MPD) and Extended Reach Drilling (ERD). RDM employs revolutionary technology that utilises accurate pressure management and superior well control through the use of closed loop fluid circulation to push the limits of what was previously thought possible by the wider drilling industry. The application of RDM technology allows operators to access reservoirs that are considered to be extremely challenging or even impossible to drill conventionally, as well as to increase the overall efficiency of drilling operations. The technology employed by the RDM is based on the use of a Dual Drill String (DDS) in which drilling fluid flows to the drill bit via the string annulus, while the return flow of liquid to the surface is through an inner string. This process is achieved through the use of Top Drive Adapter (TDA), a dual conduit swivel that allows rotation of the drill string with the top drive. The TDA also routes drilling fluid from the top drive to the DDS annulus before the return flow is taken out via the TDA housing. Since Reelwell was previously featured in Energy, Oil & Gas magazine during October 2015, the company has continued to develop its RDM technology through the introduction of a new ERD solution that incorporates an

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The RDM Inner Pipe Valve (IPV) features a barrier for controlled pressure drilling and enables pressure-less pipe connections. The RDM is regulated through the Flow Control Unit (FCU), a control valve arrangement through which all active drill fluid is routed. The FCU assures constant downhole pressure during drilling and pipeline connection, and the unit is equipped with pressure and flow sensors on both the drilling fluid inlet and return lines. Furthermore the Reelwell control panel is fully integrated with the well control and monitoring system of the drilling facility. The result of the process is that drilling fluid is pumped into the DDS annulus via the TDA and down to the IPV at the top of a conventional Bottom Hole Assembly (BHA). From the IPV, cuttings are transported back to the surface inside the inner string, ensuring that the hole remains clean at all times. During March 2016, Reelwell announced the successful completion of trial well operations at the Killam land well in Alberta, Canada. Prior to being deployed in the field, the Ensign 127 rig was adapted and tested with the Reelwell equipment at a site in Nisku. The spud of the Killam land well in Alberta was performed on February 27, drilling a 20” vertical hole to 90 m and installing and cementing a 16” casing. The

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Reelwell Drilling Method was deployed, using the Halliburton Geopilot Rotary Steerable System to drill the first part of the horizontal section to 1100m using the single fluid with a density of 1.1 sg. The well annulus fluid in the casing was displaced to a heavy fluid of density 1.6 sg. The Reelwell Heavy Over Light (HOL) solution was used to continue drilling down to the target depth of 1510 m MD, 452 m TVD. The effect of HOL on torque and drag was measured by comparing torque and drag when the drill string was filled with respectively light and heavy fluid in both channels when the bit was at TD. The project was undertaken with support from Total, DEA, Petrobras, Halliburton and the Research Council of Norway and was concluded positively. The results including no lost time incidents, reduction of the MPD casing pressure from 25 bar to 3 bar, superior hole cleaning

and significant reduction of torque on the drill string, as predicted by the models. “We have been working hard on this technology for the past ten years now and we have done a lot of trialling and we have performed operations that have allowed us to adapt and further develop the technology. That takes time because there is a lot of testing required. We are grateful to our sponsors for the funds that has allowed us to demonstrate everything we wanted to demonstrate in terms of time and scope and can show that our equipment will work perfectly well every time with no downtime,” Ola concludes. “One of the reasons that the oil industry is so conservative is that it cannot afford mistakes, because everything is so expensive. Now we can show that our solution is both proven and reliable and we plan to further penetrate the market and to execute operations all around the world. Our technology can make it easier to access hard to reach reserves more economically and allow operators to improve the recovery from the fields.”

Reelwell

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

Services Innovative drilling technology

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JDR Cable Systems

Building

connections The JDR name first emerged back in the 1990s after the merger of UK-based Jacques Cable Systems and Dutch De Regt Special Cable, but the combined experience in the design and manufacture of subsea umbilicals and power cables spans three-quarters of a century. In 2007, the company was acquired by Vision Capital, Goldman Sachs and Management from Bridgepoint Capital, enabling the commencement of a £30 million investment programme in 2009 to develop a new state-ofthe-art facility in Hartlepool. Following the sale of its Marine Cables division in 2011 and the subsequent financial injection, the past five years have been marked by significant growth. Today, JDR specialises in the design and manufacture of subsea production umbilicals, power cables and IWOCS (Intervention Workover Control Systems) and is making strong progress across the offshore renewables and oil and gas markets around the world. Close collaborative relationships with both its customers and supply chain have marked the company out in the market and have resulted

in an unrivalled responsiveness. “We have developed an ability to respond quickly and are very agile to the changing market needs and conditions. Because of this we have seen a number of successes,” says Richard Turner, Chief Operating Officer at JDR. “With our focus on technology, our customers are recognising our breadth and depth of knowledge for offshore energy projects.” It is from this sturdy foundation of agility that the company has experienced remarkable levels of growth over recent years. In 2015 alone JDR saw a 30 per cent increase in performance levels and a similar trend is expected in 2016. “Our ability to supply leading products to both the oil and gas and renewable energy markets has been key to this success,” Richard continues. “We have seen growing demand for wind farm projects and have secured a large number of projects within Europe. At the same time we continue to lead the market for IWOCS umbilicals and are growing our presence in the umbilical market through expansion into steel tube applications.” ENERGY,oil&gas

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JDR Cable Systems

Balmoral Offshore Engineering We have listened to our customers, including JDR Cable Systems, and acted upon this feedback to innovate subsea buoyancy, insulation and elastomer products for more than 35 years. Our hugely experienced engineering team works closely with clients to provide optimum valueadded solutions for their projects. Many of our SURF-related products have been approved by Bureau Veritas (BV) in line with American Petroleum Institute specification (API 17L) including distributed and umbilical buoyancy, associated clamping systems and ancillary products such as bend stiffeners and restrictors.

A number of important contracts have been central to achieving this level of growth, including two recent framework agreements signed with DONG Energy and Atlantis Resources for offshore renewables projects. “These are both examples of how we are entering into collaborations with customers to help develop technologies, optimise solutions and reduce costs together for the offshore energy industry,” notes Richard. The North Sea market has shown particularly positive signs for JDR over recent months as well with a number of projects delivered to leading energy companies. Richard also highlights the delivery of thermoplastic and steel tube umbilicals to the North Sea and African regions, pointing out a noticeable rise in demand for such systems as customers look to be supported with new technologies. “This has been one of the main drivers of our ongoing investment,” he says. In 2015 the company commenced the second stage of investment, with a programme to build brand new facilities in Hartlepool. The plant is due for completion later in 2016 and will be absolutely key to the future delivery of new technologies and contracts, plus the required capacity growth. “The expansion includes a facility that will house a large capacity Helical Assembly Machine for the manufacture of umbilical cables,” Richard continues to outline. “We see the market moving into harsher environments and this investment will enable us to efficiently manufacture long length, high pressure, deep water umbilicals. The machine itself has a capacity of 320Te total functional components, through 16 20-tonne reels. The investment also includes the installation of new large capacity carousels and handling equipment.”

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Further international expansion has also been high on the agenda of JDR over recent months. In Brazil for example, the company recently became a qualified supplier to Petrobras’ oil and gas projects in the region, and in Nigeria it has led the introduction of local development through the training of Nigerian nationals in the manufacture, testing and installation of subsea production umbilicals. “We have a number of service centres around the world providing local solutions to key markets and customers, so the project in Nigeria is key to helping to develop our presence in West Africa,” Richard explains. “The advantage of growing this international network is key to closely monitoring and taking advantage of any growth opportunities in the future.” JDR already sees a number of these new opportunities opening up within the offshore market as it looks forward. One amongst these is the market’s move towards subsea electrification, for which Richard notes the company is uniquely positioned to provide solutions given its knowledge and experience of subsea cables for both oil and gas and renewable energy power delivery. “We can provide a wide range of products and services for this market and believe that this could be a growth area moving forward,” he says. In terms of the future more generally, gearing up to become fully operational within its new facility will be a strong focus over the coming 12 months. “The next year will be about continuing to deliver our current projects whilst completing the investment programme,” Richard concludes. “We have already secured work for our new machine and will be building on this through continued customer collaboration, so the future is looking good.”

The Hotchkiss Group of Companies The Hotchkiss Group of Companies, John D. Hotchkiss Ltd and Westwell Developments Ltd, provide a complete engineering service through a unique combination of workshop-based heavy engineering machining and in-situ services. Drawing from over 78 years’ experience and utilising up to date technology, their highly skilled and experienced staff pride themselves on their innovative problem-solving capabilities. Over the past ten years, John D. Hotchkiss Ltd have worked with JDR Cable Systems Ltd on a number of different projects, both workshop based and in-situ, providing their bespoke 3D 2016 Inventor design, manufacture, installation and maintenance services. One of the largest projects undertaken with JDR Cables involved the design, manufacture and installation of a 35 metre diameter main carousel production machine for the sub sea cable market. The Hotchkiss Group of Companies have a proven track record of meeting individual customers' needs, within both budget and deadline, and thrive on new and exciting projects.

JDR Cable Systems Ltd jdrglobal.com

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

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Total

commitment With roots dating back

to 1989, OceanMaster Engineering Pte Ltd (OceanMaster) has earned a strong reputation in the marine and offshore industry with its total commitment to customer service and satisfaction. The company is today a global leader in the delivery of marine and offshore solutions, providing expert capabilities in engineering design, fabrication, installation, commissioning and preventative maintenance services. The business incorporates full office, workshop, storage and warehousing facilities comprising more than 70,000 square feet, from which it currently employs over 100 employees, including well trained and experienced service teams capable of carrying out operations on various types of marine vessels. OceanMaster is fully certified in compliance to ISO 9001 and OHSAS 18001 and further to its ship repair and general engineering capability, it also specialises in the field of marine refrigeration and air conditioning. Historically the

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company has maintained a niche specialisation in refrigeration, ventilation and air conditioning services and carries a large stock of new and reconditioned refrigeration compressors and spare parts. During its history OceanMaster has built a proven track record in the delivery of efficient refrigeration solutions and its capabilities in its steel, electrical, carpentry and machine works. Over the years the business has achieved several milestones, including becoming an authorised service and training centre for Emerson Climate Technologies in 2014, with its RHVAC engineers acquiring Environmental Protection Agency (EPA) certification during the same year. Following this success, OceanMaster has continued to service vessel owners across Southeast Asia as well as rig owners in Australia, Russia, India and Africa throughout 2015 and 2016. The company is based in Singapore, from where OceanMaster is able to offer wellequipped workshop facilities that provide all of the necessary machinery and tools to cater to

PROFILE

various ship repair requirements. This includes specialist tools and equipment for electrical, refrigeration and air-conditioning repair works. The company’s extensive fleet of equipment is further complemented by OceanMaster’s vast experience with advanced technologies to convert refrigeration systems from the use of the ozone refrigerant to ozone friendly refrigerant. This provides the company with a strong position in Singapore as clients, including rig owners, are able to send equipment to OceanMaster’s workshop for repair and maintenance. Further to its workshop-based competency, the company also managed a team of highly trained offshore engineers who have received industry-approved offshore medical, firefighting as well as helicopter underwater escape training. This allows OceanMaster teams to travel by helicopter to rigs to carry out works on any offshore rigs, platforms, FPSOs and other offshore vessels around the world on an ad-hoc basis. As the company has evolved it has continued to adapt to the changing needs of its customers. For example when OceanMaster was previously featured in Energy, Oil & Gas during October 2015, Managing Director, Lee Ee Win discussed how over the past decade the company’s focus has changed from providing around 80 per cent of its services in marine repair operations to as much as 90 per cent of its business originating from the offshore sector. To ensure that the company is able to fully address the changing needs of its clients, OceanMaster ensures the highest levels of training and works in collaboration with both global and local certification and training houses. For example, the company is a Certified On-TheJob Training Centre (COJTC) accredited by the Institute of Technical Education, Singapore. This is supported by its comprehensive in-house training facilities that allow OceanMaster to operate in accordance to its core values of customer focus, safety and people. Although the market within the offshore sector has slowed due to the current low price of oil, resulting in less vessels arriving in Singapore for maintenance, OceanMaster Engineering continues to cultivate a consistent level of business through its on-going maintenance work on existing rigs. Whatever the level of activity within the market, the company is differentiated from its competitors through its total commitment to customer satisfaction that is built on its focus on three key factors, comprising of the right team; the right process; and the correct control.

OceanMaster Engineering

With its high level of expertise and proven track record, OceanMaster has gained a trusted reputation in the industry, which will help it to continue to navigate offshore and marine markets throughout periods of both high activity and depression. While the market remains low in the wake of the low oil price, OceanMaster will focus on further increasing its level of service and developing cost-saving strategies that benefit both the business and it clients. The company will also continue to work with the Institute of Technical Education (ITE) in Singapore to provide more on-the-job training to its customers and clients so they can be better educated on the maintenance of air conditioning systems onboard vessels and rigs. Through these strategies OceanMaster Engineering will continue on its journey to achieve its vision of being recognised as the global leader specialising in providing marine and offshore engineering solutions and maintenance, repair and overhauling (MRO) services.

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

OceanMaster Engineering oceanmaster.com.sg

Services Ship repair, air conditioning and general engineering

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Connectivity, communication and technology solutions for the

energy industry Vysiion, with a heritage stretching back

The main strengths of Vysiion have always been in its flexibility and agility. We are completely vender-agnostic, which means that that we are able to source and supply the best solution for the job at hand

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to the early 1970s, has a long and proven track record in the supply of managed technology solutions across a number of distinct markets, with the Energy sector being key amongst them. Previously operating as RFL Communications PLC (RFL), the company has developed as a reliable turnkey systems integrator able to provide full design and installation services, in addition to a 24/7 service and support facility. Over time RFL quickly established itself as an internationally recognised company, offering clients full service packages covering everything from network upgrades to new offshore wind installation. Its customer base included the supply of systems for UK national and overseas national electricity grids within Jordan, Qatar, Azerbaijan, St Lucia, Abu Dhabi and Kenya, with further recent experience in the UK’s offshore wind farms. Vysiion’s expertise has been further developed following the integration of ITS, a provider of ‘best in class’ computing and IT solutions, and JAD, whose focus was on providing IT services to the commercial and public sector markets. 2015 was a year of change for all three businesses. Vysiion was created following RFL’s acquisition of both JAD and ITS with support from the Business Growth Fund (BGF) in the form of a £4 million equity investment. Vysiion has now become a full service integrator with a unique ability to support all aspects of systems integration, from hybrid, cloud and fixed hosting and enterprise solutions right through to full connectivity and communication options. The business today continues to provide turnkey integrated systems for the public and private sector as well as a full service of communication systems within the utilities market. With comprehensive accreditation and associated track record the reputation of Vysiion’s fibre team, for instance, is second to none.

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Bruce Brain, Vysiion’s Executive Chairman sums up the past 12 months: “This investment helped us to bring together these three companies to create one of the leading tier two companies supplying cloud-based managed services for computing and communications systems. The BGF’s funding was a key part of this. They have invested in other companies in our space, know our channel partners and trusted in the vision we have for the business.” The company has also further built on the previous experience of RFL in the renewables market and today works with substations for offshore wind farms, where it provides everything from fibre laying and splicing through to the implementation of transmission equipment, multiplexers and full communications links. Within this market operationally Vysiion broadly divides its specialist services into two areas, comprised of utility campus projects and renewable operations. These areas each represent around 40 per cent of the company’s overall business. “The main strengths of Vysiion have always been in its flexibility and agility. We are completely vender-agnostic, which means that that we are able to source and supply the best solution for the job at hand. We also have partners that we work with so we are essentially able to work completely across the board to give the customer the best solution to match their requirements. We work to be responsive, very customer focused, cost effective and ensure on-time deliveries,” elaborates Infrastructure Sales Manager, Michael Grimshaw. Although the oil and gas markets are currently in the midst of a significant slowdown brought about by the depressed price of oil, the offshore wind market is presently experiencing a period of buoyancy. Vysiion is well placed to help support in this arena following significant 2015 activity to support Gwynt y Môr and the London

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Array, representing the world’s second and first largest wind farms respectively. The Vysiion team is currently working to deliver solutions to the Dudgeon project with Siemens and is also engaged on the Galloper wind farm with Alstom. The company also continues to work on the German Wikinger wind farm with Vodafone and anticipates that several other wind farm projects will be implemented in near future. Within the field of wind farm operations, Vysiion is able to deliver a comprehensive package of telecommunications and securitybased solutions. “With the Dudgeon wind farm for example, our scope with Siemens is to design the network, to provide the supervisory control and data acquisition (SCADA) network and all of the routing and switching for the SCADA devices. We also supply and install all of the CCTV and telephony equipment on the offshore platforms and onshore substations,” Michael reveals. “We provide communications to site offices, telephony services out on the platforms as well as the necessary telephone exchanges. Finally we are also working on some security and perimeter detection systems for them. On a typical wind farm project the main required elements are SCADA networks, CCTV and telephony installation.” While Vysiion is fully vender-agnostic, it nevertheless nurtures long-lasting and close relationships with both its clients and its partners to ensure the on-time delivery of the best and most suitable communication systems. The company holds enhanced partner status with well-known brands such as Dell, Microsoft and VMWare, which allow it full access to the vendors’ range of products. Other partners in the field include Keymile, Alcatel, Siemens, ShoreTel and Hernis. During 2016 and beyond Vysiion will remain focused on supporting the delivery of services to the growing offshore wind sector as well as on maintenance works for fibre networks on the National Grid. Additionally the enhanced capabilities of the company’s product-service offering provides customers with the opportunity to discuss and review other IT managed solution cost efficiencies. Within the Energy sector Vysiion will seek to capitalise on the buoyancy of the offshore and utilities market, while leveraging its proven experience to secure further contracts with its existing and newly acquainted clients. As Michael acknowledges: “The delivery

of wind farm projects will definitely be a great opportunity for the next three to five years because some of these projects are not due to commence until 2018 at the earliest. Certainly in the next three to five years there will be more offshore wind work, however many future projects will be at the whim of the Government because wind farm projects need to be subsidised and that element of the market will need to be fortified by Government investment.” Vysiion is definitely working in a number of interesting arenas and as Michael concludes. “With our substation, communications and utilities capability we maintain a lot of diversification in the business. Since we have become larger this has extended further because we have a business that looks after public and private sector ICT, colocation and data centre support, which adds additional support to our respective markets – so we can provide quite a complete package.”

Vysiion

Vysiion vysiion.co.uk

Services Managed technology solutions

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grow Power to

The Cummins brand is recognised

Below Rachid Ouenniche, MD

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around the world as a leader in the design and manufacture of heavy-duty diesel and natural gas power solutions. With its home in Indiana, USA, the company currently employs 55,000 people around the world in 190 countries and in 2015 achieved sales of $19.1 billion. Part of being able to deliver on such a global scale is Cummins’ extensive network, which includes approximately 600 company-owned and independent distributor locations and around 7200 dealerships. The company took its first steps into the Middle East in 1956, appointing GCC Olayan as its first independent distributor in Saudi Arabia. Over the years more distributors followed, until in 2000 Cummins established its first company-owned business in the UAE. In 2014, the Cummins Middle East ABO (Area Business Organisation) was set up and headquartered in the UAE. The ABO consists of all Cummins business units, each represented in the region by a commercial leadership team. Energy, Oil & Gas last featured Cummins Middle East back in April 2015, and a year on MD Rachid Ouenniche is happy to report a strong 12 months. “It has been a very successful year for Cummins in the Middle East,” he says. “We gained significant market share and grew across all segments. In particular, we experienced double digit growth in our power generation segment, a market that actually shrank overall. As a matter of fact, the Middle East was the fastest energy-oil-gas.com

growing region for Cummins’ whole power generation division. This is due to our focus on adding value to our customers by providing engineered solutions. In 2015, to support this, we doubled our win ratio for turnkey power generation projects from two years ago and expanded our engineering group with significant investments in talent acquisition.” In general the Middle Eastern region is a lucrative market with widespread economic development taking place across a number of countries. However, Rachid notes that with the recent drop in oil prices, governments in the gulf region have reigned in infrastructure investment that has seen a softening to Cummins’ power generation business. Yet, with significant power plant projects won across a variety of sectors from infrastructure, healthcare and airport developments to manufacturing and residential complexes, the opportunities to grow still remain. “The oil and gas industry, which fuels much of this region’s growth, is a cyclical market and is bound to recover in the next few quarters and our ability to gain market share will allow us to continue capitalising on the momentum we have gained over the last couple of years as it does so,” he says. Indeed, despite the prospect of challenging market conditions, Cummins continues to invest heavily into the development of its business in the Middle East. The company has become an engineering hub for the international group, and it has plans to expand its scope beyond the region to support other developing markets

PROFILE

around the world. It is also home to a Cummins High Horsepower Master Rebuild Centre, part of a global network of purpose-built facilities designed to provide high quality, high volume rebuilds for Cummins 19 to 95 litre engines. “All engines of this sort require a rebuild at some point in the life cycle, so we moved away from a workshop environment into a manufacturing environment that has a production line and enables us to provide a complete rebuild in one location,” Rachid outlines. “We believe this is one of the best rebuild centres within Cummins Inc and the best in the region – it is generally benchmarked by other distributors around the world as best in class. Volumes have continued to grow as customers’ confidence that their Cummins engines will have much longer durability when they use this centre also rises.” Developing the scope and strength of its distribution capabilities has also been the focus of investment over recent years in the Middle East. In 2012, for example, it established a joint venture with Jaidah Group, which has represented Cummins in Qatar for 35 years. “Cummins manages the venture, using its people, systems and processes, allowing us to increase the focus on our customers,” Rachid continues. “It’s a much more efficient and effective model that allows us direct access to other Cummins business units that manufacture the products we sell and service in the region.” More recently, in March 2016, the company announced another joint venture, this time with The Olayan Group, which has distributed Cummins products in Saudi Arabia since 1956. The move to create Cummins Arabia is significant in that it consolidates the distribution

Cummins Middle East

of Cummins products across the UAE, Saudi Arabia and Kuwait, which represent three of the biggest markets in the Middle East. The partnership also allows Cummins to greatly expand access to the Saudi and Kuwaiti markets. Another key part of Cummins Middle East’s development of recent years has been its exemplary approach to increasing the representation of women in the workplace. The company has doubled its ratio of women over the last four years since it launched its internship programme. In 2015, 16 of the 18 annual interns brought on board were female and the business is now working with five regional universities to develop the scheme. “Crucially, what started out as an initiative to increase the representation of women in the workplace has now developed to become a great pipeline of future leaders,” Rachid highlights. “This is important, as whilst we have the international brand recognition of Cummins behind us, it is the dedicated, innovative and agile workforce that gives us a competitive advantage in the region so supporting their development opportunities is key to our continued success.” The future for Cummins in the Middle East looks bright then. Rachid notes that over the next 12 months continuing with the current growth strategy will be the primary focus. In particular, will be the integration of the Cummins Arabia joint venture, which is due to become operational by the second half of 2016 and which will improve the company’s service capabilities, especially in the oil and gas sector. “We also aim to continue market share growth in our power generation segment over the coming months despite what appears to be a shrinking market,” Rachid concludes.

Cummins Middle East middleeast.cummins.com

Services Middle Eastern business of global power leader, Cummins

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Expanding

focus “

Wilhelm Group started off in the 1980s as a small welding consumables distributor to various organisations in the oil and gas industry,” begins the Singapore-based company’s Managing Director William Chan. “With only three staff and modest annual turnover, we have grown significantly over the last 35 years.” Indeed, now turning over in excess of 15 million USD a year and employing 150 people under four subsidiaries in Singapore, Malaysia, Shanghai and Suzhou, growth has certainly been a defining piece of the company’s history. Following approximately 20 million USD worth of investment into equipment and facilities, Wilhelm Group now offers a complete range of welding solutions to oil and gas end users and OEMs in the region. “This includes advanced cladding services in hot-wire TIG (tungsten inert gas) and a laser cladding process, plus CNC precision machining with testing capabilities,” William outlines. “We offer turnkey solutions for corrosion resistant, wear and tear applications in the exploration, drilling and production of oil and gas. This helps to boost performance and prolong the lifetime of exploration tools, as well as surface and subsea components.” Approximately 90 per cent of the company’s revenue stems from the oil and gas sector across

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Singapore, Malaysia, China and the Philippines. Others include revenue from the general engineering, manufacturing, shipbuilding and offshore service customers. Illustrating the high level of technical work carried out by Wilhelm Group is a recent development project carried out in collaboration with Emerson Process Management. “Our most notable achievement recently, was the cladding of flow control valves,” William explains. “Through the development of new welding techniques and methods, we successfully achieved 100 per cent fullyautomated internal cladding for Fisher flow control valves with sizes ranging from 8-24 inch. Previously, competitors were only able to achieve less than 40 per cent automated cladding, so this is the first of its kind in the Asia-Pacific region.” Other recent developments within the group include the investment into a new batch of CNC systems at its newest subsidiary in Malaysia, set up in end 2014. “This is to complement our cladding capability so that we can offer turnkey solutions. It also enhances our ability to take on machining of more complex components and parts in the future – particularly when the oil price picks up,” adds William. The challenges of the oil and gas market is faced by every company operating in this industry, not only Wilhelm Group. William shared, “people have realised that the oil and gas crisis might last for some time and it will be a game of who is able to wait out this crisis. It is therefore important to restructure and consolidate. Reposition yourself based on what you do best today as well as seek new opportunities going forward. Companies that invest in marketing and development during the tough times can potentially increase market share, putting them in a great position when the economy picks up again,” he says. For Wilhelm Group, the approach is continued investment into new technologies and new solutions that can boost its competencies when the market returns to health. “With the present downturn, we are focusing on consolidating our resources,” William continues. “The aim is to look for a new direction, new growth opportunity and a competitive advantage in the welding market. There is no doubt that the industry will certainly look very different in ten years’ time and we have to reinvent the way things are done now so that we can remain competitive.” Wilhelm Group has a strong reputation

PROFILE

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

wilhelm group

highlights William. “With this in mind, we strongly believe in upholding the quality of the services we provide and represent. We also believe in adding value to the services we offer. Pre-sales consultation and timely delivery are what we regard as value-added services that customers are actively looking for today. Only by providing these are we able to secure the trust of customers and translate this into long-term partnerships.” This attitude will be critical for Wilhelm Group to continue achieving its steady growth levels. Looking ahead, William is keen to take the company’s experience as a specialist welding provider to diversify into new industries and new markets around the world. “We want to diversify into other industries that also require high precision welding besides just oil and gas,” he concludes. “We aim to break into the much larger American and South American markets within the next three years. In the longer term we will also be looking at potential mergers and acquisitions to support this vision.”

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

Wilhelm Group wilhelm-group.com

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

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A co-operative

partner Since the company

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

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

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broad base of industry sectors, including marine civil engineering; vessel maintenance and salvage; port and harbour authority; renewable energy; utility and infrastructure; nuclear; and oil and gas applications. To further increase the value of its extensive service package for its clients, Norfolk Marine also operates as a member of the Achilles Community, allowing the company to share high-quality, real-time data in a global collaborative network. Achilles was founded in Norway in 1990 with the goal of helping organisations to identify, assess, qualify and monitor suppliers throughout the supply chain. Its community structure provides buyers with access to a broader range of verified and compliant suppliers, while buyers gain access to a broader base of potential buyers. Presently around 860 of the worldâ&#x20AC;&#x2122;s leading buying organisations and some 133,000 key suppliers benefit form being members of the Achilles network. The organisationâ&#x20AC;&#x2122;s members comprise over 40 different communities in 11 industry sectors and include customers including wellknown brands such as Shell, Balfour Beatty, Toyota Motor Europe, E.ON, EDF, Vale, ABB, Santos, Petrobas, Chevron, Maersk, Skanska, Statoil, Vattenfall, Repsol YPF, Alstom, Iberdrola, Acciona, Abertis, National Grid, BHP Billiton,

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Yamana Gold, Halliburton, Anglo American, Aston Martin, Jaguar Land Rover, Petrobras and Exxon Mobil. “Norfolk Marine is able to provide a diverse range of services to customers through in house expertise and partnering specialist contractors,” says Senior Contracts Manager for Norfolk Marine, Laurie McCaughan. “The company can offer a range of personnel and equipment resources from its various operation bases, which enables a timely and cost effective response to customers’ needs. Joining the Achilles community presents the company’s services to a significant number of existing and potential customers and increased tendering opportunities.” As the company has continued to grow, Norfolk Marine has worked to further develop its service offering throughout the UK, while embracing opportunities that are currently being generated within the offshore renewable energy market. During August 2014 for example, the company opened a new operations base in the Port of Lowestoft. With Lowestoft rapidly developing as a hub for the offshore renewable sector and its vessels operating from the port’s harbour area for several years, Norfolk Marine considered it to be a natural progression to establish a permanent base in the region. Both mobile and containerised diving systems currently operate from the Lowestoft South Quays facility along with the company’s inspection class ROV units and a full range of in-house underwater non-destructive testing (NDT) equipment. This allows Norfolk Marine to carry out comprehensive inspections of clients’ underwater assets in both inland and offshore deployments. Operations can be carried out from the company’s own fleet of vessels, meaning that customers have a single point of contact, hence minimising both logistical considerations and costs. “The operations base at Lowestoft has allowed Norfolk Marine to increase its scope of services in the UK and consists of extensive quay as well as office, storage, workshop and warehouse space,” Laurie explains. “This allows the company to provide a much greater range of resources including diving, ROV, survey and wind farm support vessel services from its own easily accessible location. With the current growth of Lowestoft and surrounding areas in the offshore renewable energy sector, Norfolk Marine is able to provide services and facilities locally and from a single supplier.”

Norfolk Marine

It is envisaged that Lowestoft will grow to become the company’s operations headquarters during the coming years for both European and further international contracts, while the Norfolk Marine office in Ireland will continue as the administrative hub of the business. Furthermore, space is also offered for rent within the Lowestoft office complex, which attracts complimentary service providers within the renewable sector and quay space is also made available along with storage facilities and equipment. This allows both the mobilisation and demobilisation of contracts through the facility as well as the opportunity for other parties to use and benefit from its resources. With the opening of its operational base in Lowestoft, Norfolk Marine has continued to develop its service offering and delivered several projects within the offshore wind industry. During February 2016 for example,

As the company has continued to grow, Norfolk Marine has worked to further develop its service offering throughout the UK, while embracing opportunities that are currently being generated within the offshore renewable energy market

the company completed the installation of its tyre filled net (TFN) scour remediation system at E.ON’s Scroby Sands offshore wind farm. “The TFN project at Scroby Sands involved the installation of the company’s patented scour protection system to a number of turbine monopiles across the site. The TFN system utilises recycled car tyres to create a protective apron around the base of the monopiles, which not only prevents further scouring but also allows the reinstatement of seabed material by trapping migrating sand suspended in the tidal flow. The system presents significant benefits in cost, environmental impact, logistics and resources when compared to aggregate based solutions ENERGY,oil&gas

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Norfolk Marine

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

that are currently used,” Laurie elaborates. “Renewable wind energy promotes the replacement of non-renewable resources, and the associated cost and environmental impact. The TFN system reinforces this goal. The supply and installation of the TFN system at Scroby Sands was carried out almost entirely in-house, from the company’s Lowestoft base, with assembly, diving, crew and material transfer being provided using existing personnel and equipment resources.” In February 2016, Norfolk Marine also announced that it has entered into a co-operation agreement with the highresolution hydrographic and geophysical survey company, Geomara. Working from Norfolk Marine’s Lowestoft facility, the partnership will offer an extensive range of interrelated maritime services and forms part of the company’s strategy to further increase its service offering and market presence over the coming years. “The co-operation with Geomara allows both companies to expand the services they can provide and the resources available to them. Customers can source a single supplier capable of providing survey expertise, support vessels and equipment from a number of locations throughout the UK, Ireland, and further afield. Hydrographic surveys are currently being carried out jointly in West Africa from Norfolk Marine’s local facilities,” Laurie says. “The next 12 months will see increased activity in the East Anglia area with a number of offshore wind farms being developed,” he concludes. “The primary focus will be to remain in a position to provide a range of support services during this growth phase.

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

Norfolk Marine norfolkmarine.ie

Services Diving and marine engineering solutions

PROFILE

Frese

controls

Dynamic hydronic balancing With roots dating back

as far as 1944, Frese has more than seven decades of experience and specialist knowledge in developing innovative fluid control and component solutions for the HVAC, plumbing, marine and offshore market sectors. Børge Frese founded the business when he acquired a modest foundry producing small-machined products in a basement in the Danish city of Slagelse. The company soon established a solid reputation across Denmark for the production of metal products including aluminium pots and pans, doorknockers and bronze candlesticks. As Frese continued to expand Børge gradually extended the foundry and soon made room to accommodate the production of valves. This development allowed the business to expand rapidly and quickly establish itself as a leading specialist in the production of valves and associated components for clients operating within the commercial heating, ventilation, and air conditioning (HVAC), shipping and offshore sectors. Throughout the 1960s Frese continued to invest heavily in advanced valve production machinery, which later enabled the company to develop and patent innovative new valve technologies. During the 1980s Frese finally introduced its renowned dynamic balancing valves and by 1989 had taken the milestone step of dividing the business into two separate companies, forming what would eventually grow

into the Frese Group. Frese Metal - og Stålstøberi A/S operates as a high-tech foundry, while Frese A/S continues to develop and produce dynamic balancing valves. Today the Frese Group continues to operate two separate businesses that provide a solid group structure that incorporates the skills and collective knowledge base to develop and deliver the best fluid control and component solutions to its customers across the globe. The continued success of the business has lead to the development of a global network of specialist distributors, sales offices, partners and subsidiaries. Frese is currently represented throughout the world with subsidiary offices within China, the UK, Germany and Turkey and sales offices in the Middle East, Australia and Europe. Frese continues in the tradition of being a family-owned company that divides its focus across four key business areas, comprised of HVAC, foundry, marine and plumbing applications. To further emphasise the group’s competency across its four targeted market sectors as well as the common synergies throughout the business, the Frese Group unveiled a reinvigorated brand image and newly designed website during January 2016. The new brand image consists of a refreshed Frese logo that combines the traditional and recognisable Frese logo with the company’s corporate colours, which is today used across the Frese Group to create a common brand identity. In addition to ENERGY,oil&gas

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the new logo, a new Frese Group website has been developed to deliver information about the Frese Group as well as providing a gateway to the individual business unit websites. “These changes form part of our strategy that aims to present a stronger, united group image to all of our stakeholders,” comments Frese Group CEO, René Barington. “The new branding will help to create a consistent image for the Frese brand globally whilst helping to demonstrate our knowledge and expertise across the individual areas of our business.” “The approach for Frese over the past couple of years has been to have a more dedicated industry focus. To do this we can take the same innovative valve technology and deploy it in various industry applications,” adds Business Development Director, Morten Møller. “This means that we are able to adapt our valve technology to meet the environmental or other unique requirements of each market sector. For example the oil and gas and marine industries each have stringent requirements such as special test qualifications and certification to obtain, which is where having different focus areas across the company allows us to provide each industry with best solution for the application.” Core to the success of the Frese Group is the company’s position as a global leader in manufacture of dynamic balancing valves for a range of markets including HVAC, marine and industrial. Dynamic balancing valves represent an innovative alternative to traditional hydronic balancing methods through the use of static balancing valves to provide a system with efficient and accurate flow limitation as well as differential pressure control. This means that intended flow conditions are achieved at all time, regardless of pressure fluctuations. “The general benefits of using dynamic valve technology are huge, as the basic principle of dynamic balancing is that it is possible to always control the flow through various systems at all times,” Morten explains. “In typical marine and offshore heating and cooling applications for example, systems do not control themselves due to the constant changes in the system characteristic but dynamic balancing valves control the hydrostatic balance in the system at all times. This offers significant cost savings in terms of the amount of energy used, the increase in system performance and efficiency as well as in terms of the number of valves installed. Dynamic balancing valves have three distinct functions, flow, pressure and temperature control, that can reduce the initial

cost of investment in a new system by reducing the number of required valves.” The Frese range of dynamic balancing valves include pressure independent control valves (PICV) and flow limiting valves in a range of materials that ensure that clients have control of their systems at all times. Dynamic balancing valves offer a huge variety of additional benefits including energy savings, increased overall efficiency, low initial investment costs and reduced commissioning costs. Throughout the remainder of 2016 and beyond, Frese will seek to continue to highlight the benefits of dynamic balancing valve technology to offer clients an effective solution with both environmental and cost-saving implications. “The offshore and oil and gas industries tend to have a very traditional and conservative approach towards changes in technology. However this is not a new technology, as we have been providing dynamic balancing valves for over 25 years meaning that it is a proven solution with many domestic, marine and industrial installations,” Morten observes. “With the on-going push for reduced energy consumption in environmental legislation throughout world, dynamic balancing valves offer greater environmental accountability and increased sustainability,” he concludes. “We are specialists in working with special alloys and we manufacture all of our products ourselves, which means that we can control the manufacturing process and the resulting quality of the valves. We intend to see Frese continue to be the leading supplier of dynamic valve technology and will continue to push the benefits of this system as a green and sustainable solution.”

Frese

Frese AS frese.eu

Services Foundry and valve manufacturer

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A gripping

answer Beginning operations

as Fa. A v/d Grijp during 1928 as a company focused on the selling and renting of flat top barges and houseboats, today the VandeGrijp Group has grown into an internationally operating company specialised in the production of steel tubes, piles, tubular constructions and the rental of pipeline systems and floating equipment for both onshore and offshore projects. The group currently comprises two companies, with one side of the business focused on manufacturing while the other operates within the rental market. VandeGrijp was previously featured in Energy, Oil & Gas magazine in April 2015, during which time Managing Director, Paul Nederlof discussed the on-going development of a new pile hammer and the company has continued to progress positively in the months following its last appearance despite challenging market conditions. “Over the past 12 months we have completed the building of an innovative new pile hammer for a company that was developing this technology for the offshore wind sector. The pile hammer itself was delivered on time and was subsequently successfully tested. In spite of difficulties in the oil and gas market we completed a lot of work for offshore contractors and dredging companies, including the delivery of several spreader bars, pile followers and spud poles,” Paul elaborates. “Market conditions are not favourable since investments within the oil industry are significantly down and several big dredging projects are nearing an end, further

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reducing market investments in that industry. The offshore wind industry however is still booming for many companies, which generates a market for tools and repairs that has continued to create work for us and we completed 475 projects during 2015. From small to large projects, our expertise is in the ability to carry out so many diverse projects at the same time. The eye-catching projects last year naturally were the larger ones, like the pile hammer and the spreader bars, but the lower pipes and dredger board lines that we constructed were no mean feat either!” Across all of it operations, VandeGrijp maintains the highest levels of quality and customer service and acts in accordance to ISO 9001 and ISO 3834-2 specifications and is fully EN-1090 qualified. The company further assures the quality of its output through detailed analysis of its production process and continually works to find ways to improve even further. VandeGrijp also currently has more than 150 weld qualifications and encourages the continuous education of its employees. At present it employs some 50 people plus subcontractors and maintains property that encompasses 85,000m2 of space, including three well-equipped production halls and a harbour with its own RORO quay. The company’s 3000m2 production hall is used for the construction of limited series and custom pieces while its hall with the smallest area contains a highly efficient pipe mill where VandeGrijp produces flanged pipes with a capacity of up to 4.5km per month as required. The company’s third production hall has a floor space of 2600m2 but has increased height that

PROFILE

allows it to be used for the production of large tube sections up to 10,000mm in diameter. “Our manufacturing facilities are located close to Rotterdam harbour providing good access to the world by road or water and we have our own harbour with RORO load out quay and 7000 square metres of covered production area. The covered production area contains three roll bending machines with varying bending capacities of up to 150mm wall thickness and there is also a pipe mill for flanged dredge lines or pipes of up to 25mm wall thickness,” Paul says. “The main strength of VandeGrijp is our flexibility in terms of timescales and varying types of project. We are capable of delivering thick walled tubes within very short time periods, but at the same can also fabricate more complex projects.” On the rental side of the business, VandeGrijp maintains a comprehensive fleet of equipment, including dredge line components that are ready for deployment following the culmination of several rental

VandeGrijp IGS

projects during 2015. Within both its rental and manufacturing operations it is the aim of the company to be able to deliver an expert service extremely quickly, therefore in addition to its stock of rental equipment VandeGrijp maintains close relationships with trusted steel suppliers to ensure the rapid turnover of manufactured projects. During the duration of 2016 and beyond VandeGrijp will continue to work to deliver expert solutions in rented and manufactured pipes and equipment, while ensuring the highest levels of customer service. “The main focus of our company during the next 12 months is to continue to deliver quality products matching our customer’s specifications on time - every time. We aim to continuously reduce the fabrication period between order and delivery, thus helping our customers reach their goals,” Paul concludes. “Our long term strategy is to further strengthen our flexibility and be a smarter part in our customer’s supply chain.”

VandeGrijp IGS B.V. vandegrijp.com

Services Equipment manufacture and rental

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An offshore

partner From its headquarters

in Almaty, Kazakhstan, Caspian Offshore Construction (COC) owns and operates a fleet of 43 vessels that provide marine fleet operation and management services to offshore oil and gas industry. The business was incorporated during 2003 and finally commenced operations in 2005, following the acquisition, refurbishment and complete overhaul of the Shkotov and Caspian Princess floating living quarters. Today COC operates as a leading provider of marine fleet operation and management services in the North Caspian Sea as a 100 per cent private Kazakhstani entity, with offices in Aktau and Bautino in Kazakhstan, Astrakhan in Russia, Baku in Azerbaijan and Turkmenbashi In Turkmenistan. Caspian Offshore Construction was previously featured in Energy, Oil & Gas magazine in March 2015. During the company’s previous profile, Aktau branch director, Stanislav Belov discuss on-going events in the company including the commencement of construction of a new operating base in Bautino incorporating accommodation, canteen and workshop facilities, the delivery of its new multicat Kulan and Kanysh Satpayev survey vessels and the further modernisation of its Shkotov and Caspian Princess floating living quarters. Despite the impact of the depressed price of oil, COC has progressed well and remained highly active during the past 12 months. Further to completing the construction of a new offshore support base and continuing to expand its fleet of vessels, the company has also won a significant tender that will provide the business with activity for several years. “Developments have been slow because the oil

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and gas business is suffering due to the low price of crude oil. The Caspian region is no exception and there has been a slowdown of the two major oil and gas projects that form our primary business, however, despite stiff competition, the company overcame to win a tender to manage a new vessel for Van Oord which operates as a Dutch dredging company,” reveals COC Deputy General Director, Shaun Daniels. “This vessel is an ultra shallow draught multi-cast general purpose tug called the Arlan. The work is to support the dredging of a channel of over 60 Km from the eastern approaches of the Caspian Sea, with the channel intended to land at shore at a place called Prorva. There is a facility also to be built at Prorva by the Tengizchevroil (TCO) Future Growth Project, which will serve as the offloading facility for the expansion of the Tengiz refinery. TCO are going to offload around 60 major modules using tugs, barges and speciality purpose-built vessels and the contract is set to last for approximately three years. It has allowed us to construct a new build vessel, at the Vard shipyard in Brăila, Romania. The vessel was built according to a design produced by Ship Design Group (SDG) and was part of a very competitive tender that we were proud to win.” On October 2, 2015 COC also accepted delivery of the latest ship to join the company’s fleet of owned vessels. The ARLAN ultra shallow draft multi-cat AHT was ordered during February 2015 and constructed at the Vard Brăila shipyard. At a cost of $2.4 million, ARLAN was successfully launched during August 2015 to begin an extensive series of sea trials before IDU Shipping finally delivered the vessel from Romania to Kazakhstan. Co-operation between COC and the Vard shipyard dates back to 2009, when a contract for the ice-breaking standby support vessels of the ‘Mangistau’ series was closed. During the period between 2009 and 2011 five Mangistau vessels were constructed, while another survey vessel, Kanysh Satpayev, was built later in 2014. “Kanysh Satpayev cost $9.2 million and is capable of carrying 20 scientists as well as ten crew. She was specifically designed to deploy various types of survey equipment for ecological, environmental and geophysical surveys. She is built to the latest standards with modern equipment and facilities onboard including laboratories and accommodation space with onboard recreation for scientists and the ship’s crew,” Shaun elaborates. “She can operate in as little as 1.5 metres of water, which is a must for

PROFILE

the client because their operating depths run from three metres to nothing. She is the most modern research vessel in the Caspian Sea at present and I would say the most versatile vessel in terms of research operations.” Further to expanding its presence through the award of competitive new tender and the arrival of the ARLAN multi-cat AHT, COC has also invested in a new offshore support base in Bautino, Kazakhstan. The new base is comprised of three complexes that include office, hotel, crew change, canteen and gym facilities, which ensure that the base is fully equipped to provide accommodation to crew and engineering staff travelling through the region. Additionally, the Bautino complex also includes an education facility that offers expert training to both COC staff and external organisations as well as educational programmes for the local community. Through its continued investment into the company’s facilities, COC is well prepared to carry out its current tenders while it continues to weather the tough trading conditions brought

Caspian Offshore Construction

on by the low price of oil. Over the coming years the business will seek to capitalise on its current success and continue to distinguish itself as a trusted partner within the Caspian Sea, which it will achieve through further investment in its people to match that of its fleet. “This is a fully Kazakh owned company and we have 60 Kazakh nationals currently undergoing various education programmes to get them qualified to progress into positions we have identified suitable for their skill sets,” Shaun concludes. “Further to the Caspian Sea, we are looking at international markets. These include areas such as Venezuela, South East Asia and Africa and the challenge for the future is to identify opportunities within those markets and open up offices within those regions.”

Caspian Offshore Construction coc.kz

Services Marine fleet operation and management

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Bursting with

energy Delivering 24 hour service, seven days a week, 365 days a year for more than six decades, Bohlen & Doyen GmbH, previously known as Bohlen & Doyen GmbH Bauuternehmung GmbH, has long been renowned for its outstanding expertise in a comprehensive range of services for sectors including gas, water, waste water, electricity, oil and telecommunications. Having set up a nationwide presence, the company is able to offer constant availability to customers while operating as a highly capable partner and complete service provider. With a decentralised structure in place, the company guarantees rapid availability for clients

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requiring fully qualified personnel and the right equipment for each unique task. To ensure this way of operating remains at optimum levels of efficiency, Bohlen & Doyenâ&#x20AC;&#x2122;s permanently manned control centre in Wiesmoor co-ordinates the nationwide on-call services and makes contact with each customerâ&#x20AC;&#x2122;s contact person. This ongoing flexibility and co-operation with clients has created a relationship built on trust, reliability, quality and the ability to develop the best possible solutions. To further enhance its reliability, the companyâ&#x20AC;&#x2122;s on-call team and fault rectification service ensures grids continue to run smoothly and customers can remain competitive. This strong customer focus is merged with a broad service portfolio for the energy industry, which includes its own spare parts stock, cable measuring vehicles, 50 specially equipped vehicles and more than 150 technicians; all of which help ensure Bohlen & Doyen competitively meet the needs of those in the fields of electricity, gas, water and telecommunications. Using its many years of experience in the power industry, the company has progressed into the offshore renewable sector where it offers grid connection and services to offshore platforms. Indeed, the complete package is offered to

PROFILE

customers, which includes the laying of onshore and offshore cables as well as the connection of offshore wind farms to substations; this applies to all voltage levels. For this challenging industry, the company has its own high-quality equipment and a selection of well trained personnel to ensure projects are carried out in the most reliable and quality conscious manner. Furthermore, the company works closely with other departments within its parent company, SAG Group, to take care of servicing and maintenance in this sector. Committed to its motto of ‘Everything from a single source’ for all voltage levels, Bohlen & Doyen delivers a complete service to its clients who include, but are not limited to, energy suppliers and/or grid operators who are legally required to connect these wind power systems and cable manufacturers, private investors and regional energy suppliers. In more detail, these services include underwater cable-laying with its own ships and laying equipment such as vertical injectors, jetting sledges, vibration swords, vibration ploughs and chain ploughs; implementation planning, infield cabling of an offshore windfarm, civil engineering work, horizontal drilling technology, cable laying and cable installation and cable terminations up to 145 kV. As wind energy is one of the mainstays of renewable energy in Germany, the company is well versed in overcoming the challenges in connecting wind farms to the main grid, particularly when in harsh environments offshore. Operating as a general contractor, Bohlen & Doyen takes care of everything in the realms of configuration and set-up of the electro-technical infrastructure on offshore wind farms. For these specific projects, the company, alongside SAG, delivers internal windfarm cabling, transfer station, substations and high voltage overhead lines and cable systems. Once grid connection is complete, the company is able to take over the operation of the electro-technical infrastructure and monitor substations from its logistic center. Furthermore, it can deliver all maintenance, fault clearing, overhauling and repair services. A recent project for the dynamic and dedicated firm was awarded in February 2015 from Prysmian, a market-leading cable manufacturer for the connection of the wind farm cluster Westlich Adlegrund in the Baltic Sea. Connected via HVAC cable systems, the cluster’s routes on-shore end in the 50Hertz transformer substation in Lubmin. Approximately 39 km

Bohlen & Doyen

of the cables, which are 90 km long on the sea and three km on-shore, will be laid by SAG Group, with construction of the grid connection scheduled to reach completion in the final quarter of 2018. Worth approximately 130 million euros, the order shows the confidence Prysmian has in the technical expertise of both SAG Group and Bohlen & Doyen and will further enable the company to cement its reputation in the offshore wind sector. With its own fleet of vessels, trained personnel in the area of cable installation and cable and the ability to carry out cable checks with its own cable test vehicles, Bohlen & Doyen is truly able to carry out a one-stop-shop solution to customers seeking interdisciplinary clientspecific solutions while also delivering full documentation from A to Z. These capabilities, merged with a long history for reliability and a customer-centric approach to business, means Bohlen & Doylen is certain go from strength to strength for many decades to come.

Bohlen & Doyen GmbH bohlen-doyen.com

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

ENERGY,oil&gas

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Perfect

solution

DUC Marine Group

first emerged in 1984 focusing predominantly on providing diving services to inshore projects. An initial foray into offshore work began in 1987, and since then the company has steadily been expanding both into the international inshore market and the offshore sector. Today, DUC operates two vessels on its own fleet, the largest being a 56-metre multipurpose diving support vessel (DSV) called Ram, perfectly suited to undertake coastal operations with two cranes and a four-point mooring system. However, as the company looks towards the offshore renewables and oil and gas markets as its major opportunity for the future, a second state-of-the-art vessel is currently being built. “Ram is employed throughout the year and we have been chartering several vessels that were either too big or too small for the required services,” explains Henk Kapitein, Owner of DUC Marine Group. “The charter vessels would have insufficient accommodation, deck space or cranage, no proper mooring system, or they were simply too overkill and completely cost ineffective. Some of the bigger vessels were using up to 12 tonnes of fuel per day.”

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The decision was made then to order a purpose built vessel to support the growing demand for DUC’s services in the offshore market. Appropriately named the MPSV Solution and with the official naming ceremony taking place in May 2016, it was decided that the vessel would remain a Dutch enterprise with naval architects Hernand Jansen, hull yard Shipcon and outfitting-yard Hoekman Shipbuilding all based in Holland. “We believe that at 55 metres, Solution is perfectly sized with 42 beds on board, 250 square metres of deck space and a proper four point mooring system, which can be radio controlled,” details Henk. “It has a shallow draught, so can be operated near to shore, is capable of beaching, and has two moon pools for survey work. There are two knuckle boom cranes mid-ship (90Tm) and on the aft deck (290Tm), and the main crane includes a tentonne active heave compensated winch. It is more or less the Swiss army knife of vessels, particularly for the offshore wind industry.” Displaying an average fuel consumption of around three tonnes a day, the smaller but well-equipped MPSV Solution is a perfect fit for today’s offshore industries, particularly amidst challenging economic conditions. Henk notes that with the state of the current oil price, more and more service companies are starting to diversify from oil and gas into renewables

PROFILE

making it a very crowded and competitive market place. “It is getting tougher, but we think with this new vessel we can provide a one-stop-shop for clients,” Henk adds. “We can provide rope access, we have the divers, we can perform the surveys and so on, so as soon as Solution is ready we can start promoting ourselves as a complete service package and we think this will be of interest to the market.” Alongside this fleet expansion DUC has also been making significant progress towards gaining full accreditation within the industry. Over the past few years the company has invested heavily to achieve ISO 9001, ISO 14001, OHSAS 18001 and SCC two-star certification. Helping to deliver such quality is a team of committed and highly experienced divers. “We employ most of our divers directly, which means that our personnel are committed and we can keep that excellent know-how within DUC Marine Group,” says Henk. “With the business, many of these divers have amassed years of experience diving in inshore conditions with strong currents and with numerous vessels, so they have a DNA within the company to operate and adapt to changing conditions

DUC Marine Group

whether they be in or offshore. “We’ve got a great family-feel and a lot of our operatives are able to use this open culture to think very inventively and apply new solutions to projects. We try to monitor our customer satisfaction scores with regular questionnaires and we have averaged about 8.8 over the past two years, which is fantastic for us.” The addition of the MPSV Solution will be vital to DUC expanding its capacity within the market whilst at the same time providing a cost effective service within a highly competitive sector. Over the coming months the new vessel will enter service and the company is confident that it will start to show its talents immediately. “The focus for the next year is going to be trained mainly on the wind industry but oil and gas will also feature,” Henk concludes. “We expect to sign a joint venture agreement in Iran over the next couple of months to take advantage of the growing opportunities for offshore maintenance and inspection work in the Middle East. In the longer term we continue to see the biggest opportunities in offshore, rather than inshore projects, and I can see us expanding into ROV services as well.” The challenges of low oil prices are sending reverberations throughout the offshore industry and these pressures are facing everybody. However, the need to continue operation remains and companies like DUC that are able to adapt and refocus their market offering are those best equipped to overcome the stresses. Whilst operators are looking to bring the cost of offshore work down, with a clear strategy and a growing fleet of perfectly suited vessels, it looks like DUC Marine Group may just have the solution.

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

DUC Marine Group ducmarinegroup.com

Services Diving and construction services to offshore and inshore industries

ENERGY,oil&gas

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Conditioned for

success

AHI Carrier

, formerly known as AirConditioning & Heating International (AHI), became a Carrier joint venture company on December 18th 2008; however, the partnership between the companies dates back to December 1997, when the two signed their first agreement for the distribution of Carrier products in Russia as well as all CIS countries (12 countries). Following this development, Carrier and Toshiba Air-conditioning entered into a joint venture, which led to Toshiba’s air-conditioning product portfolio being added for distribution in AHI Carrier’s territories. Success came quickly, with Carrier rewarding AHI Carrier with expanded distribution rights to East and Central Africa; more countries were added after the creation of AHI Carrier in 2008, such as the Middle East, Central and South Eastern Europe, Australia, New Zealand and South Africa, bringing the total to 42 countries. Key to the success of AHI Carrier is its versatile and aggressive sales structure, which is comprised of sales offices and dealer network, and builds sales support functions in a centralised back office in Sharjah, UAE. This strategic way of operating focuses on economies of scale and enables AHI Carrier to respond swiftly to opportunities when it comes to sales;

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alongside this, the company has built a superior system of product specification and technical support, logistics co-ordination, finance and MIS. However, the most critical factor in AHI Carrier’s trend for success and profit is its commitment to service, a commitment that will only grow over the coming years. Indeed, setting the foundation for AHI Carrier’s strong global reputation is its dedication to customer care; with the provision of the best possible service a top priority, the company aims to achieve 100 per cent satisfaction, which will further build on its strong, loyal and ever-increasing client base. On top of this, the company focuses on performance, which it views as a testament to its abilitities in delivering on its promises to clients; employee development through the building of a culture centred on inspiration and mutual respect and good business practices. Indeed, the company is driven by a fundamental sense of global citizenship and responsibility through maintaining the highest ethical and environmental standards; it also actively supports the communities where it conducts business. Another key strength for the company is its connection to Darwish Bin Ahmed Group UAE, one of the major business houses in UAE,

PROFILE

which has diversified interests in construction, automotive and real estate in addition to HVAC. Under the Darwish Bin Ahmed Group UAE, AHI Carrier is further able to perform with confidence in the market. In locations such as Australia, New Zealand and the Middle East the company has set up TOTALINE stores, with many more stores due to be added. These stores stock and sell a comprehensive range of HVACR parts, consumables and tools for residential and commercial applications. Moreover, AHI Carrier also now distributes Carrier and Toshiba HVAC products in 63 and 50 countries respectively. With an annual turnover close to $500 million dollars, the company has developed a strong reputation in sectors such as airport, commercial, educational, hospital, hotel, industrial, office complex and the oil & gas. Within the oil & gas industry AHI Carrier provides engineered solutions for HVAC, E&I systems for oil and gas, energy, mining and petrochemical projects across the globe; this work includes providing appropriate HVAC, E&I system designs that are capable of handling challenging and harsh environments such as extreme temperatures, corrosive conditions and explosion proof zones. Services include HVAC engineering and

AHI Carrier FZC

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

Setting the foundation for AHI Carrierâ&#x20AC;&#x2122;s strong global reputation is its dedication to customer care; with the provision of the best possible service a top priority, the company aims to achieve 100 per cent satisfaction, which will further build on its strong, loyal and ever-increasing client base

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PROFILE

AHI Carrier FZC

packing and storage and insurance, while commissioning and completion includes services such as integrity check for full systems, verification on compliance to intent/specifications and technical service reporting to conclude all systems components work to the design reference. After-sales support includes the establishment of SPIL/SPIR, the provision of quote support for operational spares, option to provide local/remote annual inspection/ maintenance contract and the maintaining of the information database for technical updates and upgrades. With blue chip organisations such as Shell, Technip, Total and Siemens within its impressive customer base, AHI Carrier has cemented its reputation for delivering optimum quality solutions. Recent projects for the company include working on Ichthys Onshore LNG Facilities in Australia, which represents the largest discovery of hydrocarbon liquids in Australia in 40 years and has a total project value of $33 billion. Currently in the construction phase, the Ichthys LNG project is viewed as one of the most significant oil and gas projects in the world as it involves some of the largest offshore facilities in the industry, a cutting edge onshore processing facility and an 889 km pipeline that connects them for an operational life of at least four decades. AHI Carrierâ&#x20AC;&#x2122;s part in this major project involved the design, validation and supply of major HVAC equipment; this was completed in 2013. One year later, the company was awarded a contract for work for the South Tambey field LNG plant project in Yamal peninsula. One of the largest industrial undertakings in the Arctic, this project is focused on the development of one of the largest natural gas projects and is estimated to cost $27 billion in total. AHI Carrierâ&#x20AC;&#x2122;s role in this project includes the detailed engineering of 52 modules, including 3D modeling, procurement and delivery as well as certification and permits and services on site. This project is particularly challenging due to its location in the estuary of the Ob river, which is ice bound nine months of the year. The company is the main HVAC subcontractor, installation scope excluded, for this project; engineering is due for completion in the final quarter of 2016, while the delivery of equipment is anticipated to be completed by summer 2017. With an experienced team at its helm, wholly

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

AHI Carrier FZC ahi-carrier.com

Services HVAC distribution

PROFILE

Shazand (Arak) Petrochemical Company

A grand

production Established as a

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

grass root complex for the production of a range of petrochemical products such as plastics, synthetic rubber and other chemicals from naphtha as feedstock, Shazand Petrochemical Company (ARPC) has grown since the initial approval of the project in 1984 and the production phase becoming operational in 1993. “The company was founded in 1984 for the production of versatile petrochemical products near Arak city in the centre of Iran. Its area is approximately 523 hectares and it has private sector ownership,” begins Sasan Talebnejad, Pd. D., Head of Market Research at Shazand Petrochemical Company (ARPC). “Revamp and expansion projects were accomplished in 2003, which boosted the total annual capacity by 15 per cent. Presently, the total sellable annual production capacity of the complex is around 870 KT/Y, which serves the domestic market as well as the global market.” Today operating 18 production plants integrated in one larger industrial complex, the company is one of the leading producers of plastics, chemicals and second most consuming synthetic rubber (PBR) from naphtha feedstock in Iran and boasts a considerable annual production capacity. Approximately half of the products are sold to the domestic market through the Iran Mercantile Exchange (IME), while the rest is exported to key markets such

as China, Turkey and India. “Other regions such as Middle Asia, SEA and our Iranian neighbours are also considered significant markets for us as well,” notes Talebnejad. “Our end user clients utilise our products in diversified applications such as plastic pipes, paints, adhesives, packaging films, fibres, serum vials, polyester production, solvents, detergents and anti-foams, to name a few.” By adapting modern technologies such as TPL, Axsens, Lyondell Basell, Ineos, Zeon, Oxiteno and Balestra and focusing on reliable quality control monitoring, Shazand Company ensures its production processes are wholly tailored to meet the internationally acceptable

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

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produced by our company,” says Talebnejad. To further strengthen its operations, the company established and put into operation a compounder section at its polypropylene unit in May 2015. Viewed as a great success to the company, this investment was established to improve the productivity of the PP unit by enabling the production of the corresponding valuable compounds and increasing extruder productivity by up to four tones per hour. With its machinery being supplied by Germany and Italy, the new compounder has the highest compounding capacity among all compounders in operation in Iran. “Producing high quality PP compounds necessitates both high tech machinery and a stable supply of high quality polypropylene material. We thought that since we could produce our own raw PP material, installation of an industrial modern compounder would thus enable us to meet the automotive and appliance industry enquiries in both the domestic and export market,” explains Talebnejad. “In the near future Shazand Company will use its proprietary know-how to manufacture high performance, specialty PP compounds in accordance with formulas developed by its research and technology department. This formula will be widely used in the production of exterior and interior automotive components, including bumpers, instrument panels, door trim panels and other applications.” Since this major investment, the company has been selected once again as one of the top companies of the country. Discussing the selection and the reasons behind this adulation, Talebnejad states: “Ranking top companies in Iran is accomplished in order to clarify business atmosphere and develop competitiveness among Iranian companies. Among the selected top companies in terms of ranking parameters, Shazand Petrochemical Company has been one of the first three top exporters for several consecutive years. The main strengths of our organisation lie in the versatility of our production capabilities, our unique central location, and our medium range capacities that make grade change faster and more flexible. Furthermore, our network of customer-orientated sales and marketing systems in different locations has made us one of the most influential petrochemical companies in the Middle East.” Although the company appears to be going from strength-to-strength, it faces the challenge

PROFILE

Shazand (Arak) Petrochemical Company CHIMEC

of feed price, as Talebnejad comments: “Margin of products out of naphtha is considerably lower than gas cracker margins. For promoting competitiveness, some modification on liquid feed prices should be done. That is the case; our wise managers are pursuing this process in both the oil ministry and parliament. Some revamping like using cheap condensate feed is also under study in ARPC to strengthen our margin in the future.” Despite these challenges, the company is currently seeking to expand its presence across the globe following the lifting of economic sanctions on Iran in January 2016. “After the Iran and world powers nuclear deal and the lifting of imposed sanctions, Shazand Petrochemical Company and the entire Iranian petrochemical industry will be doing their best to regenerate lost European market share,” says Talebnejad. Moving forward, the highly successful firm will not only focus on expansion but will also remain true to its four key objectives: to maintain and enhance value of the stock in the long-term, to meet the satisfaction of

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

CHIMEC are an Italian company that have been active worldwide for over 45 years. We have distinguished ourselves in developing and providing innovative chemical treatments, technologies and consulting services to the upstream, refining and petrochemical industries. CHIMEC’s philosophy is to apply tailored solutions aimed at optimising processes, maximising profits and reducing environmental impact. The experience gained in an intense field activity in more than 50 countries, supported by our proprietary monitoring systems, allows us to solve even the most peculiar issues. Thanks to our qualified technical assistance, we are often known as the company providing the highest level of service.

Shazand (Arak) Petrochemical Company arpc.ir

Services Produces versatile petrochemical products

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Sole

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

Operating predominantly

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

within the oil and gas industry, MPP Systems is renowned around the world for its specialist treatment systems designed to remove dissolved and dispersed hydrocarbons from water. The company was first founded in the 1990s under the Dutch AkzoNobel chemicals group, and was later bought by global water treatment specialist Veolia in 2006. “It was one of the best moves we could have made as a company,” says Erik Middelhoek, the Managing Director. “AkzoNobel had become a chemicals company, not so focused on neither water treatment systems nor the oil and gas industry. Veolia on the other hand is the world’s largest water business, present in almost all countries and working with most oil and gas companies. This made it a perfect fit for MPP. It means we are able to work closely with the rest of the group as we develop and can offer a complete and wide range of technologies when solving our clients’ problems.” Product-wise MPP Systems splits into two channels: MPPE (Macro Porous Polymer Extraction) technology and TiPSS (Tilted Plate Separation Systems) technology. MPPE is one of the proven technologies in the world capable of removing dissolved and dispersed hydrocarbons, used to treat gas-produced water and clean up harmful discharges. TiPSS technology is used widely in numerous industries such as oil and gas, food, textile, automotive, steel and groundwater remediation to separate contaminants based on particle size and density differences. Energy, Oil & Gas last spoke with Erik back in March 2015 and a year on he is happy

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to report another busy year. “We have been primarily focused on developing the Inpex Ichthys project, which is the most complex and technically demanding challenge we’ve ever faced as a company,” he says. “The level of specification is extremely high and the materials required are very difficult to purchase so with everyone on the project trying to buy them the market has become stressed. Therefore, it has been a struggle for our suppliers, and it has been a struggle for us understanding the exact specifications and ensuring we can deliver on them in time.” INPEX’s Ichthys LNG project off the west coast of Australia is one of the largest hydrocarbon liquid discoveries in the region in 40 years, and its construction is currently ranked amongst the most significant oil and gas projects in the world. MPP Systems was awarded the contract by DSME shipbuilders to supply a MPPE unit to a brand new FPSO vessel, and with such high standards to meet the company has been able to demonstrate its leading operational expertise in developing and delivering such a complex system. “A number of changes were made throughout the project, many more than usual,” Erik continues. “For instance, the total number of on/off valves and instruments in the module has doubled since the initial instruction, but this still had to be designed into the same footprint. We contracted the final construction of the module to Hollandia Offshore in the Netherlands who only had a 12-month window (March 2015 to March 2016) to complete it, so that was another challenge. “The unit has now been built and is currently on its way to Korea to be installed but I don’t

PROFILE

think we would have managed it without the close co-operation between us, Veolia, INPEX, DSME and Hollandia. In total it has involved about 30,000 man hours from Veolia for the fabrication and an additional 200,000 from Hollandia to build the module.” Ichthys is a hugely important project for MPP Systems, especially amidst the internationally challenging oil and gas market. However, despite the pressures, Erik is confident that the gas industry will eventually pick itself back up and activity surrounding future projects in Mozambique and the Leviathan project in Israel is positive. Critical for MPP, is its unique position as one of the only solutions in the global market to meet the stringent zero discharge legislation that is being steadily applied to key markets around the world. Erik highlights that legislation is the company’s biggest opportunity and is an area where it is looking to capitalise with future developments. “In the background we are working on a similar technology to remove other components from hydrocarbons such as heavy metals,” he

VWS MPP Systems

explains. “Metals like mercury are almost always present in gas produced water and feature highly on environmental concerns for discharged water. However, there is currently no solution to remove these and we are trying to change this. Crucially, if we can develop a viable solution then legislation can follow and it will open up a big opportunity for us.” MPP Systems is a highly unique company demonstrating the opportunities that can result from offering a quality and proven technology that is unrivalled in performance and availability. Maintaining this position through continued development and market expansion therefore is a key part of its vision as it looks ahead. Erik talks positively about pushing its technology into new markets such as gas storage and tank cleaning, and even diversifying beyond oil and gas into groundwater remediation and other markets where water treatment is equally as important. Ultimately, as environmental legislation continues to put pressure on gas operators around the world, MPP Systems is perfectly positioned to provide the best solution.

VWS MPP Systems B.V. vwsmppsystems.com

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

ENERGY,oil&gas

energy-oil-gas.com

name Trusted

Based at the

Waterloo Industrial Estate in Pembroke Dock, the Welsh business Ledwood Mechanical Engineering (Ledwood) represents a market leader in delivering complex projects in support of the energy and process sectors. The company’s competence is applied to a number of market sectors, including heavy industry, allowing Ledwood to design, procure, fabricate, protective coat, construct, install and project manage the delivery of complex plant internationally. Ledwood specialises in handling complex, large facilities such as oil, petrochemical, gas processing and power generation, with an enviable track record of delivering quality projects on time, to budget and with an unbeaten safety record. “One of the main reasons behind the foundation of the company was to service four large oil refineries that existed within its locality with engineering, fabrication, installation services, as well as maintenance and operational

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support. These refineries were all major facilities owned by international oil companies and it was later realised that we could further service refineries throughout the UK and indeed the world,” explains Managing Director, Nick Revell. “Ledwood has continued to gain market share while entering into new markets within its traditional business sectors. Our skill sets and capabilities allow us to participate at the initial stages of a project lifecycle, which positions us for delivering the engineering, procurement and fabrication. We also have another business within the group, which is called Ledwood Protective Coatings (LPC), this business provides different types of protective coatings, including Thermal Spraying and Fireproof systems. LPC is complementary and vertically integrated in this respect and once we have completed the fabrication and coatings, we undertake the transportation wherever that may be prior to executing installation.” Ledwood has represented a trusted name in engineering excellence for more than three decades, but it was during 2000 the company reformed under the name Ledwood Mechanical Engineering, supported by investment from the external shareholders. With this backing the business has continued to thrive and has become involved in a range of major engineering projects globally in recent years. Its ten-acre dockside location puts Ledwood in an ideal position to supply vital plant and equipment to clients worldwide via marine transport. This has allowed clients within the offshore oil and gas exploration sector to take advantage of the company’s strategic location and core competence, through the delivery of equipment bound for oil rigs and similar installations and the shipment of modules globally. During 2010 Ledwood was restructured under new ownership, with the business maintaining its independence by becoming owned by its management team. Today Ledwood continues to operate from its substantial engineering facilities in Pembroke Dock that incorporate workshops and paint facilities designed to accommodate major module production. Just adjacent to Ledwood is the Cleddau estuary, which offers quayside facilities with an 11-metre water depth for shipping. “The ownership of the business is all within the management team. Prior to 2010 there were some external investors in the company and to further the focus of the business we have reorganised so that there are no longer any external investors involved. We also have

PROFILE

zero debts meaning that we are not leveraged at all, which is a great position to be in,” Nick says. “Over the years we have also brought a lot of new skills into the business, because at the end of 2010 there were a lot of personnel within the company who were reaching the end of their careers. We have now brought in the ‘next generation’ to a certain extent. This didn’t happen overnight, it has been a gradual process and we have continued to grow organically at the same time.” As the company has continued to grow and diversify into new market sectors, Ledwood has made several investments into new equipment and facilities to ensure that it is able to offer best-in-class solutions to its new and existing clients. Recently the decision was taken to invest £1.5 million into the business for new coating equipment to expand the company’s overall service portfolio. “The decision to make this investment was primarily driven by wanting to change our profile and level of accreditation. One aspect of our accreditation was focused on health and safety and environmental concerns and at the time we did have existing painting and coating facilities on site that were operated by another company owned by Ledwood, but the facility would not have met new legislative requirements. We decided that we would make an investment in new equipment to be self-sufficient, rather than having our own fabricated items coated by another company. As result of this we have been able to secure further work from other clients. It is again very complementary to our overall skill set and helps us to deliver an extensive and more comprehensive service portfolio with vertical integration,” Nick elaborates. “We have also opened up a new facility located in Teesside, which provides very much the same services that we have in our head office in Pembroke. This has given us greater geographic representation and has opened up our client base,” he adds. “The new site also improves our expertise and capability and we have certainly secured more market share in the petrochemical sector as a result of having a presence in the Teesside area. Furthermore we have also won additional work in onshore gas reception facilities that are operated by international offshore gas companies.” Although the company’s traditional markets in the on shore oil and gas sectors are currently depressed owing to the low cost of oil, Ledwood has remained buoyant due to its broad customer base and diversification into the steel and renewable energy sectors. Moving forward

Ledwood Mechanical Engineering

Nick is presently on the Advisory Board for the planned Tidal Bay project in Swansea and believes that Ledwood is in an excellent position to supply this and other projects over the coming three to five years. “Around three years ago I had an introduction to the Tidal Bay project’s owners, Tidal Lagoon Power and the company asked me to assist on a steering committee, which I am today part of. Our facilities in Pembroke are on the quayside and some of the items that we have tendered are not road transportable and need to be fabricated and assembled near the quayside to be shipped to the final destination,” he concludes. “Over the next 12 months we have a very good order book and our revenue is set to be up on 2015. We are focused on sustainability and underpin this with the competence of our personnel and the services that we provide in a cost-effective manner. We have an exemplary safety record, which is vital in the market sectors in which we are active and believe that we represent the company of choice for our clients.”

Ledwood Mechanical Engineering ledwood.co.uk

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

ENERGY,oil&gas

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High integrity fasteners With close to three decades

KAL Technology KAL Technology produce fully traceable components to customer drawings and international industry standards in materials from B7/L7 and EN24 steels to heat resistant alloys and exotics including S32760, Inconel, Titanium and many others. We specialise in threaded components for the energy and construction industries, often delivering custom solutions on very short lead times. We work extensively with leading fastener companies such as BST, where a focus on price, quality and on time delivery are paramount to customer satisfaction and success.

ENERGY,oil&gas

of industry experience, BST Supplies Ltd (BST) has developed a reputation as a leading independent manufacturer of top quality and fully traceable, high-integrity fasteners that are used in a host of critical applications in harsh environments. The business was founded by its current owners Tony Lawless and Stuart Mee during 1987 and has since grown to employ some 110 members of staff with a turnover of over £10 million per annum. The company was previously featured in Energy, Oil & Gas magazine during October 2015, during which time BST had recently opened a new in-house testing laboratory. Over the following months the outlook has remained promising for the company, with positive audit results and the on-going development of its on-site facilities. “BST has seen customer growth since 2015, securing additional major OEM approvals in several market sectors as a direct result of audits to on site processes and working practice,” Sales Manager, Simon Peaty explains.

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“The company has also seen its in-house testing laboratory gain BSEN 17025 approval for a number of in-house testing processes and has recently installed a self-sufficient NDT facility with operators fully qualified to both PCN and ASNT Levels.” BST Supplies manufactures a comprehensive portfolio of premium fastenings and machined components, whether they’re dimensionally standard components made from specialist materials, or unique design components constructed from standard materials. Since the business was founded, BST has maintained a high level of focus in delivering high-integrity, superior quality engineering and fully traceable nuts, bolts, fasteners and CNC precision machined components. Its proven reputation in supplying world-class engineered products has allowed BST to build a strong presence within some of the world’s most demanding market sectors, including the oil and gas, nuclear, defence and marine and power generation industries.

PROFILE

While BST does not design the fastenings that it manufactures, it does provide professional and expert guidance to the development of new components to meet new industry regulations. Therefore the company is able to offer clients confident peace of mind and the guarantee that their safety critical applications will be fully protected. BST fastenings are high integrity, full traceable and manufactured using only the highest quality EU raw materials. It is not uncommon for clients to demand fastenings that will last for as long as 25-30 years and that are often incorporated into equipment that is not easily accessible, meaning that the exercise of reaching units for replacement or repair is very costly. As such, clients operating within technically demanding and remote environments recognise the value in investing into a reliable fastening solution that provides the dependable and robust nature that they need. Throughout its history BST has continued to invest into the development of the business, beginning with the purchase of modern CNC multi axis machines and the establishment of a full in-house manufacturing plant early on in the company’s development. During the subsequent years, as BST has continued to grow the company has further re-invested a significant percentage of its profits in to the acquisition of new machines and infrastructure. In recent years, these have included the introduction of a new computer system and the building of its on-site UKAS approved laboratory. By maintaining a full manufacturing facility, BST is able to control the entire manufacturing process, from sourcing EU raw materials to delivering the final fully certified product. In the past decade operators within the oil and gas industry in particular have further recognised the importance of high-integrity fasteners in the protecting their assets, resulting in significant growth for BST in this sector as a trusted supplier. “Our business has seen considerable growth as a supplier to the oil, gas and subsea markets over recent years, with EU raw materials and fully traceable fasteners being increasingly in demand. BST has become a supply partner to companies such as FMC Technologies, Aker Solutions and GE,” Simon reveals. “We have as a result of ‘dedicated on time delivery’ and ‘right first time’ quality expectations, seen global growth of BST’s product to customers with a global presence.” Its dedication to providing the highest levels of excellence from the board room to the shop floor, has established BST as a world-leader in the supply of premium quality fastenings that

continues to welcome new customers. While the market remains depressed in the wake of the current low price of oil, the company has taken the opportunity to consolidate its leading market position to enable it to further develop its service offering. “In the current market, BST has taken the decision to restructure itself and invest in capital equipment. We have used this lean period to improve the strength of our internal team, make additions to CNC machine equipment / software and set up our own NDT facility so that we can offer our customers a greater service from order placement right through to final delivery,” Simon concludes. “BST are working toward gaining API 20E accreditation to further expand our portfolio of product to an ever-growing customer base. Our customer is at the heart of everything we do, as an independently owned company we believe that investment is the key to the future success. As such we are willing to position our business ahead of our competition by continued investment in the company’s people, processes and equipment.”

BST Supplies

BST Supplies Ltd bstsupplies.com

Services Fully traceable, high-integrity special fasteners

ENERGY,oil&gas

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A pipeline

network

Welding Company With its head office based in Antwerp, Belgium, Welding Company is one of Europe’s leading suppliers in the heavy steel processing industry. Skilled technicians and engineers together with a team of technical consultants provide machinery and expertise for Europe’s largest projects. Whether it is oil and gas, petrochemical, renewable energy or heavy wall construction, the business ensures the best solution for every industry. Welding Company sells and rents Miller welding equipment, induction machinery and welding and cutting automation. It is specialised in induction equipment and has the largest rental fleet on the European mainland. After thoroughly listening to its customers, Welding Company has developed the most versatile digital welding bug on the market: The Firefly. It can be customised to fit your project and improve your overall welding quality. Clients can lower production costs and reduce construction time by using this easy to handle automation. Welding Company is an expert in turnkey solutions and is happy to help you with all of your welding and heating challenges.

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Over the course of more than

six decades, PPS Pipeline Systems (PPS) has grown from a mid-size service provider to an internationally acknowledged pipeline and plant builder. The roots of the business date back to 1954 and the foundation of Winter & Co – a core division of modern PPS – as a service company for North Germany’s growing oil and gas industry. PPS Pipeline Systems GmbH was finally founded during 1999, through a spin-off of the pipeline and plant construction unit of Preussag Water and Pipeline Engineering GmbH and has continued to develop as a leading supplier for the gas and oil industry. Although today around 80 per cent of its business is still generated within the oil and gas market, PPS is also highly renowned by companies operating within the chemical and water supply industries. In 2002 HABAU Hoch- und Tiefbaugesellschaft mbH of Austria (HABAU) acquired a 100 per cent interest in PPS and moved to integrate its Eastern European and Russian activities into the business. The growth of the company and its ability to respond quickly to the needs of its clients were further enhanced during 2013 through the creation of the PPS Western Europe Business Unit, including new offices in Belgium and France that also incorporated the organisation’s activities in the UK. The scope of professional services provided by PPS today encompasses engineering, delivery, construction, and commissioning of pipelines and plants in the sectors of pumping, transport, storage, and distribution of oil, gas, and other media. As a general contractor the company further takes on an important role in the execution of large-scale projects across Europe

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and as part of the HABAU Group, PPS can also help to deliver a broad base of further technically demanding construction projects. The PPS Group currently employs approximately 730 workers across the business and posted construction sales of circa €170 million for the fiscal year 2014-2015. To better serve its customers, PPS today divides its services across several divisions comprised of pipeline and plant construction, Winter Rohrbau, foreign units, PPS Western Europe, commercial and machine technical units. These units all ensure that PPS is able to supply leading technical solutions, where and when they are required. Across the group, PPS remains in high demand all over Europe to undertake technically challenging projects and to act in the role of general contractor. Within its pipeline and plant construction division for example, the company’s daily business includes pipelines of every diameter, pressure rating and media of every type, open and closed crossing processes for streets, railways, and rivers - including the construction of pumping stations stations. In the field of plant construction the company’s services include the building of compressor stations, terminals, gas processing plants, measuring and regulation systems. Additionally, PPS’ services in plant construction also include the construction of underground storage caverns and since 2003 for example, the company has been involved in the development of several storage caverns for Essent, Nuon and Eneco. Within Germany, the company’s Winter Rohrbau business unit offers customers customised solutions relating to pipes that are developed and realised in accordance to the client’s requirements. Winter Rohrbau manages plants throughout Germany that enable it to quickly reach its clients, with offices in Quakenbrück,

PROFILE

Ingolstadt, Landau Palintinate, Leipzig, Sande/ Wilhelmshaven and Stade. The range of projects undertaken by Winter Rohrbau includes gas plant construction, buried pipeline construction, industrial plant construction and maintenance and service operations. Furthermore, the unit is also able to provide EPC services during the full duration of site operations. Throughout Western Europe, PPS manages a network of business locations that allow the company to implement projects across the region and to ensure that contracts are smoothly executed at all project phases. Its bases in Drongen, Belgium; Astley, UK; and Entzheim, France ensure that PPS can act as a trusted EPC contractor and to provide plant construction, buried pipe and industrial power plant construction. In addition to its comprehensive package of EPC and construction services, PPS Western Europe is also able to undertake special projects including API pipelines for mines and mining operations, pump skids for liquid media, construction and repairs of pressure vessels, and the repair of separators.

PPS Pipeline Systems

Further to its German and Eastern European divisions, PPS has also successfully positioned itself as a complete systems supplier for large plants and pipelines at the international level. Its subsidiaries and partnerships in England, Benelux, France, Austria, Lithuania, Romania and Italy have already realised a number of challenging projects and have proven to be reliable and expert partners for the company’s customers. While extensive investments in the expansion of pipeline infrastructure are planned to enable Europe to tap into the crude oil and natural gas reserves of the Caspian Sea and Middle East regions, PPS is present within this market with its location in Istanbul and is focused on the development of pipeline, station, and gas storage projects. As such PPS represents a turnkey partner in the construction of pipeline and plant projects, which will prove to be invaluable to clients both in the present and in the future as Europe’s need for pipeline infrastructure continues to grow.

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

Services Pipeline and plant construction solutions

ENERGY,oil&gas

energy-oil-gas.com

Focus on offshore wind and

Since the company

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

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was founded in 1995, Scaldis has established a reputation as a solid, reliable and customer-focused international marine offshore contractor for transportation, installation and heavy lifting operations in offshore markets. Today, Scaldis broadly divides its business into five market sectors: civil construction; O&G; renewables and environmental; deconstruction; and salvage. Scaldis’ head office, located in Antwerp, Belgium, is home to a team of highly qualified and experienced engineers who work closely with clients to develop innovative and bespoke lifting techniques that form reliable and costeffective transport solutions. “The market for offshore structures for the renewables sector, as well as the oil and gas market, remain important to our current business and we have gained an enviable track record and reputation in these sectors,” elaborates Linda Vanhaelst, Business Development and Marketing co-ordinator. “Within the oil and gas market, most large projects are currently related to decommissioning operations, because installation works is a little bit slow right now due to the low cost of oil.” In all of its operations, Scaldis prioritises teams delivering unique solutions. This is a core value and a tangible strength that runs throughout the business. With over 20 years of industry experience, the company fully understands the difficulties that clients face and knows that the best way to find the right solution is to have an open mind and an innovative approach. This method has found effective solutions for heavy lifting operations for market-leading customers including ENI, Wintershall, Perenco and ConocoPhillips. Within the wind industry, Scaldis has worked

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with leading names including DONG Energy, RWE and E.ON. “Scaldis works closely with its clients from the early stages of their projects in order to develop the most efficient and effective methodology for the task to be performed. Additionally, optimisation of the planning and thorough preparation is key. Being a project-driven organisation we have the strength and flexibility to achieve the tasks that we undertake,” Linda reveals. “To anticipate the changes within the offshore industry, Scaldis is always looking for innovative technologies that will answer new and technically demanding challenges while reducing costs, limiting offshore time and mitigating risks. Ultimately, we develop inventive solutions that make installation both safer and more efficient.” To meet the demanding requirements of its clients within the offshore industry, Scaldis places a high level of emphasis on research and development to remain a leader in the heavy lifting field. In particular, in the offshore wind market R&D is of vital importance as the industry pushes the extremes of technology, location and water depth that all generate greater challenges in terms of equipment transport and installation. “What we are seeing in the wind industry is very rapid growth combined with new technology. Installation contractors throughout the industry must contend with the fact that the structures are getting larger and larger, and need to be installed in deeper and deeper water depths. These are essential elements to keep in mind when we develop inventive solutions to overcome the industry’s challenges,” Linda says. “Decommissioning is another important segment for our company, as we have removed several platforms over the past few years,” continues Linda. “Decommissioning is, to a

PROFILE

certain extent, just reversing the installation sequence we use for the offshore wind and O&G industries. There are also some interesting developments for the minimum facility platforms that are planned in the North Sea. A good example is L6-B project that originally was fabricated in Rotterdam. Our Heavy Lift vessel RAMBIZ picked up the structure in Rotterdam and sailed with the complete platform, including suction cans, to the installation site in the Dutch North Sea. The installation work was completed in a tight offshore work window of less than 24 hours.” As the company continues to develop new solutions for the expanding and evolving marketplace, it has taken the decision to invest in the construction of a new DP II heavy lift vessel. “The new vessel will be in Europe in the middle of 2017. The vessel’s keel laying ceremony took place on Saturday 27 February 2016 at the Hong Qiang shipyard near Shanghai,” Linda explains. “Following this event, it is now time to reveal the name of the vessel, which has been called Rambiz 4000 during the design phase. Scaldis and its shareholders are very proud to announce that the vessel will sail under the name of GULLIVER.” The new build heavy lift vessel GULLIVER will share many of the key assets of the company’s RAMBIZ vessel, but will also incorporate improved features including: increased lifting capacity of up to 4000 tonnes; increased workability; fully self-propelled; dynamic positioning; skidding cranes and its own helideck. With a proven track record and the future arrival of the GULLIVER vessel, Scaldis is on track to remain an important offshore fixture for years to come. “We look forward to the arrival of our new build vessel so that we can take on even more and bigger challenges to serve our clients better,” Linda concludes. “With the new vessel, Scaldis is ready for the future.”

Scaldis NV scaldis-smc.com

Services Heavy lifting and transportation ENERGY,oil&gas

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Scaldis

Current

developments Operating from

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

ENERGY,oil&gas

its head office in Hamburg, Germany, DEA Deutsche Erdoel AG (DEA) represents an international exploration and production company for oil and gas. While the company has a 117-year history dating back to when the business was incorporated during 1899, DEA today operates as part of the LetterOne Group of businesses following the acquisition of the company from RWE AG during 2014 at a cost of around €5.1 billion. “The acquisition completed during March 2015 when the final closing of the deal was achieved. In my perception this was a very positive step for DEA because the company’s new owner, LetterOne, has a very strong exploration and production (E&P) background,” reveals Head of DEA’s Germany/Denmark division, Uwe Balasus-Lange. “Staff members of the new parent company have an in-depth knowledge of our business and as a result, decisions relating to the E&P sector can now be made much more rapidly than was previously possible.” Beside Germany and Denmark DEA has operations within Egypt, Algeria, Guyana, Ireland, Libya, Norway, Suriname, Trinidad and Tobago, and Turkmenistan. However according to Uwe, since taking on the role of Head of DEA’s Germany/Denmark division following the acquisition by LetterOne the company has also continued to enjoy exciting development within both Germany and Denmark. “The main responsibilities within my role are of course are to run the business safely as well as economically, the second of which is currently quite challenging due to the current low oil price. Nevertheless our OPEX in Germany are relatively low compared to the cost of assets in other regions that DEA is currently active in, meaning that we are still generating profit with our German activities,” he reveals. “In terms

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of production, during 2015 for example, we produced 60 billions of cubic feet (BCF) of gas and 4.7 million barrels of oil in Germany and almost 850,000 barrels of oil within Denmark (all DEA share).” Within Germany DEA currently operates the Mittelplate field and production facilities in Holstein, including its artificial island situated seven kilometres west of the coast on the southern fringes of Schleswig-Holstein’s Wadden Sea National Park. The company also manages an onshore plant in Dieksand that also serves Mittelplate, meaning that the field has two facilities that produce from the same source and benefits from production that derives from both onshore and offshore exploitation. DEA also maintains a strong presence within Lower Saxony, which represents the centre of Germany’s natural gas production with over 95 per cent of the natural gas produced in Germany coming from the federal state. The company’s facilities in the region comprise 38 natural gas production wells, a substantial gas treatment plant and a multi-compression plant, as well as a limited number of older oil wells. The natural gas fields of Hemsbünde, Bötersen and Völkersen operated by DEA in the northwestern region of Lower Saxony are amongst the top ten of Germany’s highest-yielding fields and to date, the company has produced approximately 1,750 BCF of natural gas from a depth of around 5000 metres. Within Bavaria DEA operates three underground storage facilities with a combined storage capacity of around 66 BCF, which makes the company one of the largest gas storage operators in Southern Germany. Its comprehensive network of storage infrastructure allows the company to provide gas storage solutions to third parties while supplying a

PROFILE

continued flow of gas to the German national grid. “As part of our overall strategy we do not store our own gas, meaning that the gas that we produce in Lower Saxony for example, is immediately sold and provided for use in the grid,” Uwe explains. “We currently operate short and long term contracts for both storage and injection activities with third party suppliers that rent our facilities.” Within Denmark DEA has traditionally partnered with operator DONG Energy to undertake activities within the Nini East, Nini and Cecilie fields, however on 6 April 2016 the company was awarded with two new licenses that allow it to act as an operator within Denmark for the first time. DEA applied for two concessions as part of the 7th licensing round during October 2014. Together with the Dutch exploration and production company Dyas and the Danish state-owned company Nordsøfonden, DEA was recognised when awarding the licences and is now an operator in Denmark for the first time with a share of

DEA Deutsche Erdoel

50 per cent each in licences 8/16 and 9/16. The concession area of about 530 square kilometres is located in the southern Central Graben in the western part of the Danish North Sea. “We’re delighted to have been awarded these two licences as a positive supplement to our portfolio and that we’re now also represented as an operator in Denmark,” Uwe emphasises. “We see exploration potential in the region and it is certainly good news that we have been awarded two new exploration licences.” Moving forward it is clear that DEA is in a strong position within the E&P market despite the current depressed price of oil. Out of four major E&P companies operating within Germany today the company is the second largest and the only business to retain its own in-house drilling rigs. With a history of experience spanning over more than a century and the support of the LetterOne Group, DEA Deutsche Erdoel AG is set to continue as a market leading business in Germany, Denmark and beyond.

DEA Deutsche Erdoel AG dea-group.com

Services International exploration and production

ENERGY,oil&gas

energy-oil-gas.com

Reducing Operating as a highly regarded and

Imperative Energy Imperative Energy are the UK’s exclusive Schmid AG partner, having installed over 55MW of biomass boiler systems across the UK & Ireland since 2007. Every bespoke installation delivers a client focused solution. Facilitating Schmid’s entire range of industrial boiler technologies generating hot water & steam into diverse applications from education to distilling, agriculture, food process, dairy, sawmills and district heating. Imperative Energy delivers complete turnkey design, assembly and installation service as well as lifetime service & maintenance including RHI guidance & support. We also provide competitive fuel supply contracts to complement your complete Schmid solution.

ENERGY,oil&gas

fully family owned business, Schmid AG Energy Solutions (Schmid) is a leading international specialist and manufacturer of systems and associated equipment for biomass energy applications. The company was founded during 1936 and has subsequently grown to employ around 300 people while establishing a trusted reputation with operators throughout the biomass energy industry globally. The willingness of Schmid to explore new avenues of opportunity is mirrored by its customer-focused services and company culture. Schmid develops pioneering innovations, while providing optimum levels of service through close proximity to its clients, a rapid decision making process and efficient manufacturing elements and procedures. “We are one of the oldest companies that is solely focused on the development of biomass energy,” observes Sales Director, Patrick Schär. “This is really quite important because we are always aware of biomass energy trends, normally as an industry pioneer.” Schmid celebrated its 75th anniversary on the first weekend of July 2011 and held an open day event, during which guests were offered an insight into the company’s production procedures and its modern manufacturing facilities. During the celebrations the business officially entered into its third generation when after 52 years working for the company, the then CEO of Schmid Hans-Jürg Schmid handed over management of the organisation to his son-in-law Philipp Lüscher. Hans has since

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taken on the role as Chairman of the Schmid advisory board and will continue to be involved with the company that he helped to build. “The company has defined my life, so it is obvious that I cannot simply give it up. I am withdrawing from the operational business and handing over management, but for the time being I will remain as chairman of the advisory board,” he explains. “In addition I will continue as a consultant for the Innovations and Client Service division but with a smaller workload. The future CEO and company management have my full confidence. I am certain that the Schmid Group will continue to lead the market with ground-breaking innovations and will remain an important player in the field of wood energy.” With almost 80 years of industry experience, Schmid today continues to deliver marketleading biomass energy solutions. The comprehensive portfolio of product solutions provided by the company includes applications for domestic, industrial and cogeneration systems as well as dedicated aftersales support. Within the domestic market it delivers power plants with a capacity of up to 250kW through the provision of an efficient wood firing system for detached homes or apartment buildings, while its industrial wood fire systems begin at 250kW upwards. Its most powerful installations serve the needs of a broad range of customers including individuals, the public sector, the timber industry, contractors and the agricultural and forestry sector. The company’s cogeneration systems provide intelligent furnace and gasifier units for generating sustainable electricity from wood, including organic rankine cycle (ORC) systems, hot-air turbines and wood gasifier units. “We’re a market leader in a country that implements one of the strictest standards in environmental protection worldwide. We have a long tradition in the industry, pushing and mastering the technology for decades,” says CEO, Philipp Lüscher. “We focus on what clients need and not on what we want to sell them. Every installation is customised to give the customer the best solution every time.” The research and development of new technologies is regarded as a high priority for Schmid, which has greatly contributed to the company’s leading position within the biomass energy sector. Schmid maintains its own in-house testing installation at its company headquarters and has installed an air-cooled and water-cooled moving grate boiler and pellet furnaces, equipped with appropriate measuring

PROFILE

instruments. This allows Schmid energy to test innovative new solutions or carry out fuel trials on potential installations at any time and by undertaking in-house research and development operations the company is also able to ensure continued operation according to ISO 9001 certification as well as maintain the highest levels of environmental control. Schmid actively promotes sustainable development by behaving in a professional and environmentally conscious way. By acting as a leading provider of biomass-based energy generation systems, the company not only aims to make a positive contribution towards mitigating climate change with its products, but also works to fulfil its environmental responsibilities as a leading business. “Within Switzerland there is an incentive tax on all hydrocarbon fuels that are not used for energy,” Patrick details. “Therefore there is increased interest within the renewable sector across an number of industry applications. This is something that is not as prevalent in most other

Schmid AG Energy Solutions

countries yet, but we expect similar incentives to come into existence. In countries where subsidies are awarded according to certification according to European standards we believe our technology has a significant advantage and this is something we expect to increase.” During the coming months Schmid AG Energy Solutions will continue to build on its reputation as a leading European supplier of systems for biomass energy, while looking to increase its presence in international markets. There is currently significant interest in CO2 reduction technology in the US and the company is also interested in exploring potential markets in South America as well as opportunities in South Korea, Taiwan and mainland China. “We are excited to explore the growing international market with companies that have considerable background in energy and mechanical engineering,” Philipp concludes. “We are also willing to invest in training potential new partners in all aspects of the business to cover client needs from end to end.”

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

Services Systems for biomass energy

ENERGY,oil&gas

energy-oil-gas.com

New

horizons Now a part of the

Rigmar group of companies, a globally leading source of support services to the offshore energy sector, Interocean was originally formed in 2007 to provide rig move services to the industry. “We were established primarily to focus on the marine and engineering services surrounding the requirement to relocate semi-submersible and jack-up rigs, and we have been very successful in doing this,” begins Group Development Manager, Duncan Cuthill. Historically the company has been active internationally in the UK, Canada, Angola, UAE and Singapore. Interocean’s success comes from its market leading technical expertise and know-how in marine operations and offshore engineering, combined with its ability to provide flexible and cost effective solutions. The expansive range of services offered by Rigmar also helps to support and add value to its clients. Critically, with such a robust set of strengths at its core, the company is able to adapt its market offering in response to market conditions, something that is proving particularly useful in today’s pressurised oil and gas market. “It is a very challenging environment to be in at the moment,” Duncan explains. “This means that we have to focus carefully on making our core business as efficient as possible. However, we have also found that a lot of our skills and

ENERGY,oil&gas

energy-oil-gas.com

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

PROFILE

contract with a major oil & gas operating company and also been awarded the marine and engineering work for a major decommissioning project for a floating production installation. Due to be completed in the third quarter of 2016, this contract is very important for the company as it looks to apply its skill set to a much broader range of activities. “This is almost a step change for us as it allows us to use our full range of marine and engineering expertise, and decommissioning will be a significant direction for us moving forward,” Duncan adds. “However, beyond this we would also like to change the perception that we are firmly set within the oil and gas market.” As a company, Interocean performs a number of other services in the wider marine industry, including being flag state inspectors for the Republic of Marshall Islands and the Republic of Vanuatu, providing casualty response, marine warranty and assurance services and mooring equipment hire and installation services. “It

company has been rewarded with new contracts, plus two contract renewals in the UKCS and the Eastern Mediterranean regions, Duncan carefully recognises that this doesn’t equal security. “We are very lucky having won these contracts and it demonstrates confidence in the quality of our services, but in order for us to get the work the activity needs to be there,” he says. “This is why we have made an effort to look outside of our traditional sphere of work to apply our skills to other applications and industries. Being part of the Rigmar Group helps to support this and gives us the chance to think a little bit more creatively as to where we can target our efforts.” In this respect then it is no surprise that Interocean has set itself the vision to be recognised as a contractor perfectly capable of working across a broad range of sectors over the coming years. With a number of contracts under its belt and a clearly outlined expansion strategy, the business looks ready to experience even more success.

Interocean

Interocean interocean.co.uk

Services Marine and engineering consultant and contractor

is a real benefit for clients who would usually employ mainstream consultants to turn to someone like us who also has long standing experience of being a contractor,” Duncan says, commenting on the business’ consultancy capabilities. “We’ve done the hands-on stuff so it’s not a challenge for us to monitor work being carried out by another contractor.” Breaking into the renewables sector will also be a key part of the company’s vision as it moves forward, with it recently completing a major survey and positioning project for offshore cable repair at a wind farm off the west coast of the UK. Diversifying in this way is a smart reaction to the current market conditions, and whilst the ENERGY,oil&gas

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PROFILE

Archer UK

A renewed

approach Operating as

global oil services company with a heritage in drilling and well services that dates back over more than 40 years, Archer currently employs more than 5000 people across 40 locations in 19 countries. The company provides services that range from well integrity and intervention, plug and abandonment to decommissioning operations, which is carried out in accordance to the highest levels of safety for the drilling and well service markets. The company was originally founded in 1972 as Smedvig Drilling AS, which provided mobile offshore drilling unit (MODU) and platform drilling and maintenance services to the Norwegian and UK sectors of the North Sea. During 2006 Smedvig Drilling AS was acquired by the Norwegian drilling contractor company Seadrill. In 2007 the platform drilling, drilling facility engineering, wireline and oiltools divisions of Seadrill were spun off to create a new company called Seawell and Seadrill retained control of all of the existing semis, jack up and tender units. In February 2011, following a series of global land and offshore drilling, technology and service acquisitions, Seawell was subsequently rebranded as Archer Limited. Today Archer

operates with eight key product lines and services globally, consisting of platform drilling, offshore modular rigs, engineering, land drilling, wireline, oiltools, rental services and frac valves. Within the UK, Archer currently maintains an operational headquarters in Blackburn, Aberdeenshire, located north of Aberdeen. “We currently employ over 700 on and offshore personnel at Archer UK Limited and the company is currently the largest provider of platform drilling operations and maintenance services on the UK Continental Shelf (UKCS),” said Vice President for Platform Drilling for Archer UK, Kenny Dey. “This includes drilling, maintenance and plug and abandon operations relating to 24 platforms as well as a MODU tender barge, with the provided products and services including drilling facility engineering, survey and inspection; drilling equipment rentals; oiltools; and wireline services.” Archer UK clients include globally recognised industry players such as Apache, Chevron, Fairfield Betula, Marathon Oil, Shell UK Limited, Talisman Sinopec Energy UK Limited as well as Energean Oil & Gas – a Greek operation supported from the UK. Elsewhere in the ENERGY,oil&gas

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

MRDS Ltd MRDS Ltd operate from a world-class repair facility and base in Aberdeen. Our team prides itself on having worked alongside Archer for a number of years to provide a comprehensive range of 24 hour services and flexible solutions to meet quick turnaround times. This has enabled us to develop a strong relationship with Archer both here in the UK and worldwide giving them cost effective operating options and solutions for their rigs.

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North Sea, Archer also provides extensive operation support services to market-leading operators within the Norwegian sector such as BP, ConocoPhillips, Repsol and Statoil. During March 2016, Archer announced a two-year extension to its contract to provide drilling platform services for Statoil. This includes the provision of onshore management teams and offshore drilling and maintenance personnel for Statoil’s Statfjord A, B, and C platforms. In addition Archer was awarded new assets as part of the re-bid exercise, these are the Njord, Sleipner A, Snorre A, Snorre B, and Visund. These additional assets will be under Archer contract from October 1 2016. “Archer will provide drilling and maintenance personnel and onshore management of the drilling facilities located on these contracted assets. For the operational assets, Archer provides the core operational drilling personnel to carry out all out client’s well programme activities as safely and as efficiently as possible, while the support of our maintenance teams ensure that the drilling facilities deliver strong operational performance,” Mr Dey said. “Where the asset is non-operational, Archer offshore maintenance personnel supplemented by key designated operations support, preserve and maintain the drilling facility, to ensure that the

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assets are available as and when required to support remedial well intervention work and that a return to or from operational mode is conducted effectively. “Our onshore support teams help to ensure that all assets under Archer’s control deliver safe and efficient operations and that these assets are maintained to a high standard. This includes the management of relevant certification and legislative requirements.” While the low cost of oil has resulted in a significant slowdown of activity within the oil and gas market globally, Archer remains confident that its proven excellence in delivering cost-saving efficiencies and reliable maintenance solutions will enable the company to continue to win new contracts during the coming years. “Right now we are in one of the worst, if not, the worst downturns the industry has experienced. However, there are opportunities out there, as many operators are looking to the market to establish what technical and commercial advantages there are. As a company, we are working hard on both a local and global level to seek these out and deliver strong technical and commercial solutions to these prospective clients. We believe the unique combination of the people and technology that Archer offers, combined with the performance of our personnel, will give

PROFILE

us opportunities to grow our business despite challenging conditions,” Mr Dey said. “Archer endeavours to have a partnership approach with our key suppliers as we strongly believe this benefits both parties. Suppliers also need to have vision and a willingness to adapt quickly to support market conditions and their clients’ operational demands,” he said. “A good supplier is one that offers strong service, high quality and solid reliability. Good communication is also key because we believe that working in close partnership with suppliers to improve systems and processes brings visibility and a better understanding of one another’s needs. This adds value to supporting operational demands and client base, whilst helping to drive efficiencies and support a sustainable industry.” Throughout all of its operations, Archer ensures that it works closely with its clients to ensure that it acts as a solution provider to technically demanding challenges. In recent years the company has invested significant time, resources and funds in focusing on its core values of safety, integrity and performance, with

investments ranging from personnel training to competency development programmes to and new systems and technologies that make operations safer and ultimately save time and money for its customers. These values will continue to be of vital importance over the coming months and years as the offshore industry works to emerge from its current downturn and generate new growth in the future. “During the next 12 months, Archer is focusing on safety and high quality service delivery to our clients and on ensuring a continuous improvement process to ensure a sustainable future performance,” Mr Dey said. “Over the next three to five years, Archer will continue to build on our existing service and technology portfolio with one key focus area being plug and abandonment (P&A) service offerings. P&A activity is anticipated to increase significantly in the North Sea region over this period and Archer will seek to build on some of our technology and service offering differentiators. In general, any opportunities for growth, whether organic, through acquisition and or collaboration will be addressed on a case by case basis.”

Archer UK

Archer UK Ltd archerwell.com

Services Offshore platform drilling and engineering

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TKFN.0024-IMAJ ILAN_(A4)_R1.pdf

CMY

25.04.2016

17:21

PROFILE

Trans-Anatolian Natural Gas Pipeline (TANAP) Project

European

gateway

With around 1.2 trillion cubic metres of natural gas in reserve, the Shah Deniz Field in Azerbaijan’s Caspian Sea is one of the largest natural gas reserves in the world. Creating a supply route to serve the ever-growing demands for gas on the European continent from the field is considered to be of great strategic importance for both European and global energy geopolitics. Therefore, in 2012 an Intergovernmental Agreement cementing the bonds between the Republic of Turkey and the Republic of Azerbaijan was signed to secure the build of the Trans-Anatolian Natural Gas Pipeline (TANAP). Due to stretch 1850km across the length of Turkey from the district of Ardahan Posof on its border with Georgia to Edirne’s Ipsala crossing to Greece, TANAP will be the most critical link of the Southern Gas Corridor when it is completed. Construction began in 2015 and it is forecast that 1.28 million tonnes and 160,000 pieces of X70-type steel will be required to complete all pipe and junction materials along what will be Turkey’s longest and the world’s largest diameter gas pipeline at 56 inches from Ardahan to Eskisehir. In addition to the pipeline itself, numerous infrastructure services also have to be built along the route over the coming years. These include two compressor stations, four measuring stations, 12 pigging stations, 49 block valve stations and two off-take stations to supply gas to Turkey’s national natural gas network at Eskisehir and Thrace. Passing through 20 provinces, 67 districts and 600 villages across Turkey, TANAP is undoubtedly

a hugely demanding and significant construction project. However, the importance of the project in the country goes further than just a mammoth engineering task. As a result of economic growth and subsequent increases in energy demands, it is vital for Turkey to boost its natural gas supply by gaining access to new resources. Thanks to a strong partnership with Azerbaijan, Turkey holds shares in both TANAP and Shah Deniz Gas Field, making it more than just a transit country for the natural gas. Significantly, this means that the Turkish authorities have a say in every link of the value chain between the producer and the final consumer helping it to become a key energy hub in the region. Indeed, the TANAP project is one of the most concrete projects being realised for the purpose of ensuring Turkey’s energy supply security and its ability to meet ever-increasing demands well into the future. In terms of employment alone, it is estimated that the project has provided, and will continue to provide, jobs for over 15,000 people who are either directly or indirectly involved in construction, support services, pipe manufacturing plus a range of other associated sectors. Crucially, the development of TANAP and the Southern Gas Corridor opens up future opportunities for natural gas fields further upstream to be commercialised through Turkey. However, the challenges of rising population and energy demands are not isolated to Turkey and are a trend noticeable across the rest of the European continent. The link provided by ENERGY,oil&gas

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12 half page version TEKFEN CONSTRUCTION AND INSTALLATION CO., INC., TEKFEN CONSTRUCTION AND INSTALLATION CO., INC., Tekfen Construction and Installation Co., Inc., today a leading organisation in the challenging fields of contracting activities but also a studious environmentalist, traces its roots to an engineering consulting company established in 1956. An uncompromising dedication to global quality standards in its business conduct has underscored the company's consistent growth and stability for six decades. Presently, Tekfen Construction, as an affiliate of Tekfen Holding Co., Inc., is a respectable signature as an international contractor with major accomplishments in Turkey, the Middle East, North Africa, Caucasia & Central Asia. Its wide span of activities range from heavy civil works to refineries and petrochemical plants; from high rise buildings to major industrial processing plants; from pipelines and marine structures to power plants, electrical and communication works. With its sister companies and strategic partnerships, Tekfen is capable of extending its services to large span of clients, worldwide. As an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified Company, Tekfen is dedicated to higher quality standards, aiming for excellence through ‘continual improvement’ and strict belief in ‘teamwork’ and that uncompromising commitment to people is evidenced by its outstanding accident-free record on projects throughout the world. Within Tekfen’s ongoing projects, TANAP’s Lot 3, the Sivas Eskisehir section of the approximately 1.900 m long TANAP line, stretching through the provinces of Sivas, Yozgat, Kırsehir, Kırıkkale, Ankara and Eskisehir, is one of the most important ones. Ten percent complete in 2015, this 509-km section will be laid with 56 inch pipes and include 14 valve stations and two pigging stations. Contracted in 2014, and with 10 per cent completed in 2015, 71 per cent of the project is to be finished by the end of 2016, with full completion due at the end of 2017. Added to the Lot 3 of TANAP’s main line, construction of three compressors and four metering stations are also within Tekfen’s scope with another contract.

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PROFILE

Trans-Anatolian Natural Gas Pipeline (TANAP) Project

TANAP will at first be a crucial passage allowing resources in Azerbaijan to enter a high consumer market in the West. However, as time goes on other potential suppliers in Central Asia, the Middle East and Eastern Mediterranean will be able to gain access to the market through this new gateway. Initial gas flow to Turkey will begin in 2018 with six billion cubic metres entering the country’s network, by the start of 2020 an additional ten billion cubic metres will be transferred on to the European network via the TAP (Trans-Adriatic Pipeline), which will take the gas through Greece and into Italy. Total capacity will gradually increase over the following years hitting 24 billion cubic metres by 2023 and 31 billion cubic metres three years later. One key consideration that has underpinned the TANAP project from the start is its environmental impact – especially during its construction phase. In July 2014 the programme’s Environmental and Social Impact Assessment (ESIA) was endorsed in compliance with national legislation as well as international standards. Ecological studies, to determine impact and the necessary measures to avoid damage, air quality, noise and vibration assessments, to prevent and mitigate the effects of possible gas and dust emissions, water quality and soil quality studies were all undertaken in advance to develop appropriate management plans to create as little environmental impact as possible throughout the project. As too were studies on the landscape, to ensure that soil and vegetation along the pipe’s route could be restored both

during and after construction, and archaeological and cultural studies. One hundred and six archaeological sites have been discovered during TANAP’s route selection studies and the cultural assessments were a key part of determining the least disruptive and damaging route. In terms of its social consideration 146 meetings in 20 provinces were held to inform stakeholders and local communities of the project’s plans and activities and nearly 3000 surveys were made in settlements along the route to ensure that impact on local communities was as small as possible. The vast scale of work undertaken by the TANAP project is unprecedented for this type of construction challenge in Turkey and the successful completion of it will be vital to the country becoming a major player in Europe’s gas industry. The impact for markets on both sides of Turkey will surely be felt for years to come, and with population rising across the continent, opening up more resources through new corridors will be key to sustaining a consistent energy supply. TANAP’s stated vision is to open up new supply opportunities in order to enhance supply security and diversity across Turkish and European markets, whilst at the same time strengthening the economic co-operation between countries in the supply chain by stimulating investment and fostering gas-to-gas competition. Thanks to a careful and responsible approach to its development, and with construction well on its way, the programme looks set to achieve this when the pipeline becomes operational in 2018.

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

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

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

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