European Oil & Gas Issue 7 2013 by Finelight Media Group

issue SEVEN 2013

oil&gas european

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success Contract

LNG contracts and the potential EU competition law issues

Managing volatility Managing and mitigating risks caused by market volatility

Building the process Governance, risk and compliance â&#x20AC;&#x201C; the importance of process

this ISSUE: Collaborative partnerships

Editors Chairman Andrew Schofield Group Managing Director Mike Tulloch

Sales Director David Garner Corporate Advertising Sales David King dking@schofieldpublishing.co.uk Sales Finlay Johnson Head of Research Philip Monument Research Managers Natalie Martin Ben Richell Rick Liddiment Editorial Researchers Ed Hipperson Kieran Shukri Jeff Johnson Office Manager Tracy Chynoweth

© 2013 Schofield Publishing Limited all rights reserved 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 schofield-media.com 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.

This issue

we’re happy to announce some exciting new developments here at European Oil & Gas. Namely, this is the very first edition that will be presented as a digital magazine. This is going to be sent to subscribers via email and presents an exciting new way of keeping abreast of the latest developments in the European oil and gas industry in an easy to use format. Of course, we understand that for some of you nothing beats having a hard copy of the magazine in your hands so, if that is the case then not to worry as we are still producing a printed edition. If you’d prefer to receive your copy of European Oil & Gas in that format then please send an email to Iain Kidd at: ikidd@ schofieldpublishing.co.uk with your name and full postal address, and we’ll be sure to send one out to you. If you’re reading this in a hard copy and would also like a digital version then do get in touch. We’re looking forward to the launch and we hope you find it a useful new way of viewing the magazine. It’s also worth noting that our sister publications, Shipping & Marine, European Supply Chain Management and Modern Utility Management, are also going digital. If you’d like to receive copies of these then send a quick email to Iain as above.

editors Libbie Hammond & matt high

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Art Editor Gérard Roadley-Battin Advertising Design Jenni Newman Production Manager Fleur Conway Production Administrator Vicky Howes

This is the very first edition that will be presented as a digital magazine"

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Managing Editor Libbie Hammond libbie@schofieldpublishing.co.uk Editor Matt High mhigh@schofieldpublishing.co.uk Staff Writers Kirsty Birkett-Stubbs Jo Cooper Editorial Administrator Emma Harris

Regulars

Lead Feature

Julianne O’Leary on LNG contracts and the potential EU competition law issues

News

A look at some of the recent developments in the oil and gas industry

Technology

Why collaborative partnerships are essential to the success of new technology

Lead Feature

The factors that cause market volatility, and how to manage and mitigate risks

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Profiles

Governance, risk and compliance – the importance of process

37 Bristow Group

21 Decommissioning focus

40 Technip Umbilical Systems

Decom North Sea

23 Proserv

47 Technip MHB Hull Engineering

27 Simon Storage

49 Saint-Gobain

29 Wood Group Kenny

Performance Plastics – Seals Group

53 Applus RTD

32 Bilfinger Salamis UK

56 Granzow

34 Mammoet Decom

58 Seaonics 60 Arctic Base Supply

60 12

Contents

62 Flex coil 82 Sarens Group

70 Adria Winch

86 Axiom Engineering Associates 88 Pacific Central Teknik 90 BAPCO 92 EDC Romfor 95 Ross Offshore

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67 Atlantic Marine

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65 Strainstall Group

73 VSMPO Titan Ukraine 75 Bazan Group (Formerly ORL) 78 Seaward Safety 80 Africa Oil Corp

78 80

success Contract

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Julianne O'Leary discusses LNG contracts and the potential EU competition law issues

his article considers a number of common issues that can arise in relation to LNG contracts from a European Union competition law perspective. These can include: joint marketing arrangements; information exchanges generally; information exchanges and the erection of appropriate firewalls between joint venture companies (JVCs) and their parent companies; and territorial/destination restrictions and profit sharing mechanisms (PSMs). EU competition law prohibits anti-competitive agreements between companies (Article 101, Treaty on the Functioning of the EU (TFEU), as well as the abuse of dominance by a single company (Article 102, TFEU). This article is primarily concerned with breaches of Article 101. In order for EU law to apply the EU Commission must establish that there is an effect on trade between Member States (generally described as an effect on trade in the EU), and that such an effect is appreciable. However, these requirements are in practice normally reasonably easily met. In the context of LNG contracts, they can be subject to EU law where the LNG is intended for the EU, or at least where there is a possibility that the LNG (or some of it) could end up in the EU. It is not relevant – as such - that the companies involved are non-EU companies, that the JVC is established outside the EU, or that the LNG sales are made outside the EU, as long as the LNG ends up (or could end up) in the EU. Equally, from an EU law perspective, state involvement in a foreign (or indeed EU) company does not preclude competition law scrutiny so long as the state/company is involved in an economic activity.

Joint marketing As a matter of EU competition law, co-operation between competitors or potential competitors can fall to be considered under the EU Merger Regulation (EUMR), or under Article 101.

Merger control Joint marketing arrangements will not normally be regarded as a ‘concentration’ for the purposes of EU law. Only so-called ‘full-function joint ventures’ qualify as concentrations under the EUMR, i.e. joint ventures (JVs), which perform on a lasting basis all the functions of an autonomous economic entity. Normally a joint marketing arrangement will not qualify as a full-function JV because: 66 It only takes over one specific function of the parent companies. 66 There is a strong presence of the parents on the upstream market. 66 It is dependent on purchases/supplies from the parents.

Article 101 As such, joint marketing arrangements are normally considered under Article 101. Joint marketing between competitors or potential competitors will always in practice be treated with scepticism by the EU Commission, especially where either, or both, of the parties have significant market shares in the EU, or part of the EU. There are some circumstances where agreements that fall within Article 101 can be exempted from the prohibition. In principle, however, it is unlikely that the exemption would apply to arrangements where either or both of the parties have any significant market share/ presence on the market.

The consequences of a finding that an agreement or arrangement is in contravention of Article 101 are draconian, and include the possibility of a fine of up to ten per cent of the worldwide turnover of the Group company in the preceding financial year; unenforceability of the agreement; reputational costs; and the possibility of third-party actions for damages. In addition, some national laws (including the UK) have criminal sanctions, and can involve imprisonment and fines for individuals; as well as disqualification of directors.

Information exchanges Under EU competition law rules, the exchange of commercially sensitive information between actual or potential competitors can normally cause concern in two situations:

66 Where it is a facilitating mechanism for the implementation of an anti-competitive practice, such as monitoring compliance with a cartel. 66 Increasingly, it can constitute an infringement in its own right. The actual or potential effects of an information exchange will be considered on a case-by-case basis as the results of the assessment will depend on a combination of factors, each specific to the individual case. The structure of the market where the exchange takes place and the characteristics of the information exchange are two key elements that the EU Commission examines when assessing an information exchange. Certain types of information will not normally fall under the prohibition, for example: 66 Information already readily publicly available. 66 Historic information. But query on a case-by-case basis what is historic in any particular case. (Data can be historic, recent or future. Note that recent and particularly future data exchanges present serious competition issues.) 66 Sufficiently aggregated information. The level of aggregation will be closely scrutinised. Information that is not historic and relates to parameters of competition, such as price, capacity or costs will be considered commercially sensitive. The exchange of such data between actual or potential competitors is more likely to be caught by the prohibition. In the UK, even a one-off unilateral ‘exchange’ of sensitive information between competitors has been the subject of a successful cartel action. The consequences of a finding that an agreement or

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In the past, parties could apply to the EU Commission for an exemption. This is no longer possible, and the parties must now ‘self-assess’ the circumstances and decide for themselves, i.e. in practice take the risk of the EU Commission later investigating and finding an infringement. Marketing arrangements that do not fall within the prohibition, or that can qualify for exemption are reasonably limited in practice. Examples include: 66 Joint marketing between non-competitors will normally fall outside Article 101. 66 Joint marketing by competitors or potential competitors where either cannot enter or remain on a market on its own, for reasons of finance, technology, experience, risk or other factors, may be exempted in appropriate circumstances.

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Lead one

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To date, no fines have been imposed on any of the parties. This appears to have been at least partly due to the lack of progress with the liberalisation process, and perhaps to some element of legal uncertainty on the part of the parties involved. Also no doubt ‘political’ considerations may have played a role

arrangement is in contravention of Article 101 apply equally to infringements relating to exchanges of information, and include, as mentioned, the possibility of a fine of up to ten per cent of the worldwide turnover of the Group company in the preceding financial year. Again, in some Member States it can also give rise to criminal sanctions on individuals or/or disqualification of directors.

JVC to both of the parents not just with respect to protecting the other parent’s information but protecting the JVC information from both parent’s. The consequences of inappropriate information exchange are as previously discussed.

Information exchange and erection of appropriate firewalls between JVCs and parent companies

The situation with respect to destination or territorial restrictions now appears well settled in EU law. The EU Commission also considers the situation regarding PSMs as settled. Since 2001 the EU Commission has investigated and closed cases against a number of companies, including Norwegian Gas Producers; Nigerian gas company NLNG; Gazprom and ENI; E.ON, Ruhrgas and Gazprom; GDF, ENI and ENEL; and the import of Algerian gas into Europe. The issue of destination restrictions has most recently come up as part of the EU Commission's latest investigations of Gazprom's natural gas sales in Eastern Europe.

A further area where companies need to consider appropriate information exchange is in relation to the appropriate exchange of information between parent companies and their JVCs. For the purposes of EU competition law a JV is not part of the same corporate entity as its parent, and therefore it is inappropriate for information to flow freely through the JV and between the parents. At a minimum, firewalls will normally need to be constructed so that sensitive commercial information about one parent (which may very legitimately, in appropriate circumstances, be shared with the JVC) cannot be passed on to the other parent. Equally, where the JVC is competing with the parents, some firewalls, or depending on the circumstances equally strong firewalls need to be constructed between the JVC and both parents, i.e. to limit the flow of information from the

Profit sharing mechanisms (PSMs) and territorial/ destination restrictions

Destination restrictions The EU Commission has consistently maintained that destination restrictions are illegal under EU law, and moreover it has said that they are hardcore restrictions (i.e. the most serious kind and therefore in principle likely to attract the severest of penalties).

In all of the highlighted cases, the conclusion of the EU Commission’s case has been subject to (among other things) the abandonment of destination restrictions to EC destinations, both with respect to existing contacts and future contracts. In each of these cases the EU Commission closed its file upon receiving the required commitments regarding destination clauses from the parties. Consequently, there was no formal finding of infringement. To date, no fines have been imposed on any of the parties. This appears to have been at least partly due to the lack of progress with the liberalisation process, and perhaps to some element of legal uncertainty on the part of the parties involved. Also no doubt ‘political’ considerations may have played a role.

PSMs The position regarding PSMs has been a little more complicated, but the EU Commission clarified its position regarding PSMs in the Algerian case. This has probably been the longest and most fraught of the investigations. It finally settled in July 2007. The EU Commission closed its file subject to (in addition to the destination commitments described above) a commitment not to insert PSMs in new LNG contracts under Free on Board (FOB) and Cost, Insurance and Freight (CIF) conditions when the contracts are related to supply of gas to the EU.

Because title and risk does not pass until destination under a Delivered ex Ship (DES) agreement, the EU Commission found that PSMs could be applied in DES contracts. The consequences of infringement are in principle as stated, although to date the EU Commission has not imposed fines and has instead entered into settlement agreements with the offending companies.

Conclusion This has been a very brief overview of the types of issues that we commonly come across when looking at LNG arrangements, and we hope that this has highlighted some of the issues that companies regularly face when entering into LNG arrangements.

Stephenson Harwood LLP Julianne O’Leary is competition partner at Stephenson Harwood LLP, a full service international law firm that has over 120 partners and 600 staff worldwide. With nine offices across Asia, Europe and the Middle East, the company acts for a wide range of listed and private companies, institutions and individuals. For further information please visit: shlegal.com

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Lead one

Above:Troy Stewart, newly appointed head of service for ABB’s oil, gas and petrochemical business in the UK and Caspian regions

Expanding services Power and automation technologies leader, ABB, has appointed Troy Stewart as head of service for its oil,

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gas and petrochemical business in the UK and Caspian regions. The role sees Troy leading ABB’s service operations in the UK and Caspian, with a combined team of over 100 personnel. “It is a rapidly expanding and growing market that requires increasing service levels

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to meet customer demands now and in the future,” he says. “While

advanced control and remote

we are seeing continuing demand for traditional healthcare services, operators are looking to companies such as ABB to provide advanced services such as alarm management, operations.” The growth in the market is primarily from ABB’s installed base as its customers strive to maximise production by updating or modifying their automation systems while ensuring optimum safety requirements are met. “We are also experiencing an increasing demand for electrical and telecoms and have a range of services that are attractive to the market.” Troy has worked for over 25 years in various companies including ABB, Aspentech and Rockwell, providing solutions and services to the oil and gas industry. His experience extends from upstream offshore and onshore wellheads, through pipelines, refining and downstream processing plants. Troy has a B.Sc. in Physics, Masters in Control Engineering and an MBA.

Rising star North Star Shipping, a division of the family-owned global shipping and energy services firm The Craig Group, has been awarded a major contract with BP with a value of £63 million. The multi-service contract is for five years with a possible extension of five years and includes tanker assist, platform supply and emergency and response rescue vessels, all supporting BP’s operations in the North Sea. Four vessels, with a possible fifth to be added are being contracted - the Grampian Talisker, Grampian Frontier, Grampian Conquest and Grampian Dee. Callum Bruce, managing director of North Star, said: “The award of this contract strengthens our relationship with BP, who we have worked with for over 25 years. We continue to invest heavily in our fleet, which has cemented our position as the largest British wholly owned fleet engaged in the UK offshore industry.” Douglas Craig, chairman and managing director of the Craig Group, said: “Through continuous investment in our people, infrastructure and vessels, we are demonstrating our commitment to meeting the needs of clients with a service that is driven by safety and quality. “The vessels meet BP’s expectations in terms of safety, operability and efficiency and we continue to look for ways to provide the most innovative, cost effective solutions for all our customers.”

Expert recovery Vikoma International Limited, has unveiled the latest addition to its range of class-leading offshore oil pollution recovery systems. The OPRS 300 (Oil Pollution Recovery System) is based upon patented oil-attracting discs that have been proven to collect up to 300 m3 per hour of oil and can work across oils with viscosities ranging from one to one million cSt. Peter Tyler, managing director of Vikoma, said: “We are delighted to have launched this exciting new product at Spillcon 2013. Our design, engineering and manufacturing teams were presented with a challenging brief based on specific market feedback. Thanks to the introduction of a number of innovative solutions, the result is a system utilising a unique oil collection principle.” The OPRS 300 comprises of a floating skimmer head that utilises Vikoma’s tufted disc technology combined with both an on-board recovered oil discharge pump and thrusters for manoeuvrability. The unit is operated by a hand held remote control console. Mr Tyler continued: “This truly collaborative effort has seen us rise to the challenge of bringing this from an initial concept stage to delivering the largest capacity recovery system Vikoma has ever produced.”

News

Protect and serve Tyco Fire Protection Products is launching its latest innovation in engineered fire suppression, the unique and innovative i-Flow

Bringing development

technology system. Using inert

Proserv has officially launched a global research and development (R&D) hub in Norway to design innovative subsea controls and communications technologies. This new group strengthens Proserv’s evolving international infrastructure in support of its subsea production systems business, which includes facilities in the UK providing subsea systems test and assembly in Aberdeenshire and subsea controls systems design and manufacture in Great Yarmouth. This state-of-the-art R&D facility at Trondheim, Norway, represents a significant investment for the company and features an advanced electronics workshop spanning 500 sq m², a technology showroom for demonstrations and 1100 sq m² of office space for 50 new offices. Chief executive officer at Proserv, David Lamont, said: “The R&D facility represents another major milestone in Proserv’s exceptional growth story. The centre will serve as a global hub for all of our subsea communications and controls R&D activities, which are at the core of our business, and where we will develop fit-for-purpose systems and solutions that are reliable, efficient and delivered in an ingeniously simple way for clients around the world. New technology is the life-blood of Proserv and through the work of our talented engineering team in Trondheim, we aim to expand the Group’s R&D capabilities.”

and has minimal impact on the

Spotting potential

the safest valves on the market.

Trelleborg has announced the acquisition of Ambler Technology Limited (ATL), a leading manufacturer of syntactic foam and composite products based in Rochdale, England. This investment comes after the company enjoyed one of its strongest years to date in 2012, and is part of the organisation’s longterm strategy to invest in markets with encouraging growth potential. ATL has vast experience across a wide range of applications including offshore oil and gas, aerospace, automotive and energy. The company, which employs 55 staff at its factory North of Manchester, had net sales of approximately SEK 50 M in 2012, with good profitability. “ATL, which has been a key supplier to Trelleborg and other leading players in this field for over 20 years, offers a range of groundbreaking low density syntactic solutions capable of performance at depths in excess of 7000 MSW, and has a particular expertise in the fast-growing area of remotely operated vehicles,” commented Alan Burgess, managing director of Trelleborg Offshore U.K., within Trelleborg Offshore and Construction. “The acquisition of this established organisation will allow Trelleborg to leverage the experienced industry specialists, application expertise and cutting-edge technology which ATL can bring to the table, to ensure we are best placed to support our customers, now and in the future.”

environmentally friendly products

gases, it is one of the safest and most natural methods to extinguish fires in commercial and industrial application environment. i-Flow features patented

pressure spike associated with

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technology and incorporates three

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Above: (left to right) Proserv CEO David Lamont; Stein Arve Ytterdahl, Trondheim City chief executive; Tore Ernsten, Proserv’s facility general manager at Trondheim; and Tore Sandvil, Trondheim Country Mayor

conventional orifice systems. VdS

innovations working together: the i-Flow valve, the i-Flow check valve and the matrix cylinder racking design. The i-Flow valve regulates the flow and eliminates the peak

approved, the i-Flow valve limits the output pressure, even in the event of a discharge occurring against a closed distribution valve, making it one of “As the industry increasingly turns to green technologies, we are committed to developing that reduce the use and generation of hazardous substances,” comments Alan Elder, director of engineered systems. “The i-Flow system technology is a big step forward in the application of inert gas systems, offering opportunities to minimise disruption, due to smaller pipe size and reduced venting requirements. We also continually strive to provide innovative, cost-effective solutions to facilitate the design and installation process for architects and contractors.”

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together Working

Alasdair Cowie explains why collaborative partnerships are essential to the success and development of new technology

s new oil and gas resources become harder to find, exploration is moving into more challenging depths to squeeze the last reserves from the nooks and crannies of the ocean. With demand outstripping supply, we must ensure as much of the remaining oil reserves are recovered as possible. In turn, we are seeing more complex infrastructure on the seabed become commonplace in order to tap into the deepest deposits. Subsea portfolios of oil and gas companies are becoming larger and more diverse. The UK subsea sector has grown by 40 per cent in just three years. It now employs approximately 50,000, is worth almost ÂŁ6 billion and has more than 800 companies competing for projects. As the race heats up to develop new tools, how much longer can the UK lead the industry pack?

Nothing endures but change The industry has made great strides in recovering more oil through advanced techniques and technology. However, the growing demand for more complex solutions to overcome challenges means the development of products and their application continues daily. While sometimes these can be specific enabling technologies, mainly it is about optimising

existing technology from within and outside the sector. Environment, production reservoir, asset integrity and development design are all driving the desire for new technology. A prime example is the developments in Remotely Operated Vehicles (ROVs), which were introduced to the sector some 30 years ago. They have evolved from devices carrying out a variety of simple inspection and maintenance tasks in relatively shallow water, to being the enabling technology for deepwater subsea oil and gas production worldwide. No deepwater development can take place without one. The heavy reliance on ROVs has resulted in intense pressure on manufacturers and operators to advance the technology of these machines.

Queuing for second place The reaction to new technology over the years could be described as variable. Some individuals, teams and companies are receptive to new ideas but others have an aversion to being first. This reluctance to leave behind traditional methods, even though they may not be the most efficient or cost effective, can hinder innovation. Often a technology development that is operator-sponsored through a known application and has financial support provided leads to a relatively high rate of success. Whereas technology

Two heads are better than one Collaboration and innovation go hand-in-hand. Being partnered with organisations within and outside the sector that support, drive or lead the development of a product or service can aid the success of businesses massively. Partnerships between businesses, alongside collaborative research and development, can reduce financial and technical risks and encourage knowledge transfer, supply chain development and parallel working on complex challenges. I am a true believer that in almost every scenario, we are stronger when we work together. At Cortez we work in collaboration with a number of others in pursuit of a common goal. These partnerships enhance our network and ability to deliver a fully integrated service. Our partners vary from an Italian engineering company to an Egyptian ROV and inspection data processing equipment and services provider.

Case and point We are working with pipeline connection system, ZapLok®, to establish this unique form of pipeline installation capability in the UKCS. Zap-Lok is designed specifically to satisfy the fast-paced, cost-conscious requirements of today's pipeline construction projects. Fears of being the first to adopt the technology are alleviated as it has more than a 30 year successful history in other oil and gas regions for thousands of miles of flow lines, gathering lines, water lines and aided-injection systems. This is just one example of where working together brings rewards. Meeting clients’ financial and project timeline targets, Zap-Lok connections enable significant advantages in construction speed and overall cost when compared with other pipe joining methods. This system replaces the variable performance of human welders with a hydraulic machine, which can achieve consistent installation rates of 200 metres per hour and improved corrosion protection. We like to think of this as expanding our ‘toolbox’ to

deliver our clients’ needs. When we are approached about a project we can look into our box to see if we can fit the bill. Instead of trying to replicate the services of others, we join together to meet and exceed customer expectations. This business model not only results in development for Cortez but tremendously benefits the partner companies too. At a time when the oil and gas industry faces challenges and uncertainties, intelligent asset management to drive more efficient operations is crucial. Our partner companies benefit from an increase in asset utilisation. When a lot of money has been spent on physical machinery such as an ROV, or in the development of software, that cost needs to be recuperated. It removes obstacles for them in breaking into new markets, such as the North Sea, and also any language barriers. By buying into our operating model and execution of the project work, their services are promoted by Cortez and their client base extends as a result. In September 2012, we performed the subsea intervention operations for our client Micoperi and Lundin Petroleum onboard the Micoperi vessel Botnica for the decommissioning of two subsea wells offshore Tunisia. We provided two ROV systems from our collaboration partners DeepTech as part of the total scope of work to be performed, while Cortez provided the overall project management and engineering as well as specialist subsea tooling systems to be operated by the ROVs. Through our effective and collaborative partnership, this project was completed on schedule and most importantly, with no recorded incidents.

Smart thinking The future is bright for subsea with healthy recruitment and a competitive marketplace. The conditions and the nature of the energy sector will continue to test us. Innovations and being well equipped with technology that is slick and proven makes good business sense. Working together is paramount. Our partnerships have bolstered our reputation and given us access to new and innovative subsea frontiers. Imagine how much further the industry could flourish if more of these relationships were formed and developed. I foresee that technology will continue to progress rapidly in response to the needs of the industry. Smart application is of absolute importance for the subsea sector to maintain its stellar standing in the energy marketplace.

Alasdair Cowie Alasdair Cowie has spent more than two decades working in the subsea and marine sector of the oil and gas industry. After serving an apprenticeship with the Ministry of Defence and working offshore in the subsea arena he moved into onshore management roles and held senior management positions with Saipem and Kvaerner Oilfield Products before becoming managing director of TSMarine, a subsea intervention and construction support company, in 2005. In 2010 Alasdair established Cortez Subsea, of which he is managing director. For further information please visit: cortezsubsea.com

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that is self-sponsored, by a business or individual, tends to have a longer road to travel to success - if at all. There are a number of ‘gates’ developers and sponsors of new technology must break through. Funding is one of the first challenges. In the majority of new technology cases, final cost will come in over budget. Prototypes must be verified to check they are in accordance with industry, regulatory and legislative standards. This can be time consuming and costly and become a barrier to entry into the market place. Knowing the market and introducing technology at the appropriate time is critical to success. Attitudes towards new technology also differ around the world. In the late 1990s within the UKCS, deep water was considered to be 500 metres. Ongoing subsea developments were highly expensive due to installation costs and the limited capability of existing technology. At the same time, just over 6000 miles away, Brazilian energy corporation Petrobras was installing subsea production systems in 1500 metre water depth with relatively simple adaptations to available technology and installation assets.

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Technology

volatility

Managing

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Lauren LaFronz looks at the factors that cause extreme market volatility, and the urgent need for technology solutions that manage and mitigate risk

il is a very popular commodity due to its high consumption levels and versatility as a key component in numerous products including fuels, chemicals, and plastic items. According to the International Energy Agency, close to 90 million barrels are used globally every day. This makes it the most widely traded commodity, both physically and financially, around the world. 1 However, high consumption and versatility aren’t the only things for which oil is well known. Mention the oil markets, and it’s a good bet that volatility and its cousins instability and unpredictability are among the first things that come to mind for many people. The oil market is highly complex, with multiple fluctuating supply and demand side variables including geopolitical issues, new oil sources, and speculative trading that contribute to oil’s extreme volatility. This volatility significantly increases risk exposure and makes price clarity elusive for producers, refiners, merchants, and traders. The most recent price outlook from the US Energy Information Agency 2 reflects this situation: its forecast for 2035 ranges from a low of $50/bbl to a high of $200/bbl.

Geopolitical risk Supply disruptions due to geo-political issues have become relatively frequent events, causing significant price spikes as the delicate supply – demand balance is thrown off kilter. Issues in the Middle East in particular have a large influence on oil prices because of the region’s massive reserves. For example, take the Arab Spring, which caused crude output to fall quickly and significantly. Oil prices rose from $92 per barrel in January 2011 just prior to unrest in Tunisia, to $120 per barrel in April after violence erupted in Libya. 3 In addition, if Iran makes good on threats to close the

Strait of Hormuz, through which one third of the world’s traded oil passes, energy analysts predict oil prices could rise 50 per cent or more within days. Speculation about the closure alone has been known to keep oil prices above $100 a barrel. 4 Outside of the Middle East, political issues in other important supply regions are creating additional market uncertainty. In Latin America, the trend towards greater nationalisation of private investment in energy production has had a detrimental impact on output, while in Russia, difficult business conditions have reduced the expertise 1.www.tradingeconomics.com/commodity/crude-oil 2.www.eia.gov/forecasts/ieo/liquid_fuels.cfm 3.www.bakerinstitute.org/publications/EF-pub-WhiteheadJaffe MillerArabAwakening-062912.pdf 4.www.nytimes.com/2012/01/05/business/ oil-price-would-skyrocket-if-iran-closed-the-strait.html?_r=0

and investments required to continue the development of production infrastructure. And in Argentina, a nascent nationalisation programme threatens at least part of the country's 700,000 bbl/day production. It is an understatement to say that the uncertainty and volatility caused by geopolitical issues makes for a very risky market, and renders any kind of business planning a complex and seemingly insurmountable task for oil market participants.

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Lead two

Shale oil Shale oil has enormous potential, with US reserves alone totaling an astounding 1.5 trillion barrels of oil â&#x20AC;&#x201C; more than five times the stated reserves of Saudi Arabia. 5 According to an International Energy Agency forecast, these shale reserves will help the US become almost self-sufficient in oil by 2035. However, they currently remain largely untouched because extracting oil from shale is expensive and complex. That is, for now. New technologies such as Shellâ&#x20AC;&#x2122;s in situ conversion process are being developed that could potentially revolutionise shale oil production by making it cheaper and easier to extract. Should one or more of these technologies become commercially viable, shale oil would become an abundant fuel source.

There is much debate in the industry about if and when feasible extraction technologies will come to fruition. The testing required to explore and perfect these technologies is extremely expensive, making it an endeavor largely limited to companies with exceptionally deep pockets. And some of the companies that do have the resources to forge ahead with development have not been very clear about how their technology is different or better than existing methods. These technical uncertainties further exacerbate the murkiness surrounding the worldâ&#x20AC;&#x2122;s future oil supply, and underscore the importance of having access to advanced analytics that enable accurate and informed decisions.

Demand side ambiguity While geopolitical developments and technical uncertainties create significant doubt as to the levels of future crude supply, forecasting market demand is no less challenging.

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It is an understatement to say that the uncertainty and volatility caused by geopolitical issues make for a very risky market, and renders any kind of business planning a complex and seemingly insurmountable task for oil market participants

14 All major centers of consumption have been affected to some degree by the global economic slowdown. While overall consumption continues to grow, according to the IEA, the rate of growth in global crude demand fell from an annualised growth rate of 3.2 per cent in 2010 to 0.9 per cent in 2012. 5.www.dailyreckoning.com/oil-shale-reserves/

In Europe, for example, the Euro crisis has reduced regional demand for crude and crude products to levels not seen since 1987. Full-year demand in 2011 fell below 13.5 million bbl/day. This is 1.5 million bbl/day lower than the ten year high in 2006, and more than 2.1 million bbl/day lower than the record high of 1979. And in China, an epicenter for global demand growth over the past decade, oil consumption in 2012 flattened out to the same levels seen in 2011. Furthermore, while the US is still the world's single largest consumer of crude, the recession of 2009 and a decrease in demand for motor fuels has driven oil consumption down to a 12-year low of 18.8 million bbl/day. However, the future of oil consumption is not relegated to the picture of doom and gloom painted by these numbers.

There are signs that the economy is starting to turn around. According to the International Monetary Fund, global economic conditions improved modestly in the third quarter of 2012, primarily due to increased activity in emerging market economies and the US, and economic growth is projected to rise throughout 2013. The fact of the matter is, despite all of these statistics, no one knows for certain what will happen. As a result, the global demand forecast remains ambiguous, with projections for nearterm demand only slightly clearer than the ten year outlook. Combine these conditions with the aforementioned supply side issues, and oil market participants are left with at best a cloudy view of the future riddled with unpredictable storms that can cripple their businesses if not properly managed.

The speculators effect Despite the global downturn, trading in physical crude and derivative instruments has been robust over the past few years. The NYMEX/CME exchange recovered from the financial crisis of 2008, with significant growth throughout 2012. Besides the larger producers, traders, industrial consumers, and merchants that have always participated in the market, many newer players are beginning to speculate

Lead two

participants must have sophisticated, end-to-end Commodity Management solutions that provide both the metrics required to measure exposure and the insights needed to successfully manage it.

Commodity Management solutions are most commonly available in traditional ‘local’ or desktop installations, however, they are increasingly being delivered through mobile platforms and as ‘in-cloud’ solutions, giving users multiple deployment options.

The new risk management imperative

with the sole purpose of financial gain. The oil futures market trades more than one billion barrels of oil each day. The entire world produces only around 85 million a barrels a day – meaning that more than 90 per cent of trading involves speculators, who never actually take physical possession of oil. 6 These speculators enter and exit the market quickly, basing trading decisions solely on price momentum and recent volatility. There is no absolute evidence to show that this activity has a sustained and quantifiable effect on the market, but many industry observers believe that volatility is being exacerbated through high-volume trading by speculators (the ‘speculators effect’) – particularly during periods with a high level of market uncertainty.

Solutions for an unstable market The potential for volumetric shocks on both the supply and demand side of the crude market combined with the potential for increased volatility due to the ‘speculators effect’ leaves companies increasingly exposed to risk. In order to effectively and efficiently manage this exposure, market 6.www.nytimes.com/2012/04/11/opinion/banpure-speculators-of-oil-futures.html?_r=0

The oil business was built on the reputation of mavericks and risk-takers. But in today’s climate, the risks are so much greater and the consequences of poor decision-making are far more serious. Unprecedented volatility due to a combination of geopolitical issues, changing demand, speculators, and a myriad of other factors make it exceptionally difficult to run a profitable business these days. An inability to manage this volatility-induced risk has an overwhelmingly negative impact on the bottom line. For many businesses it will be fatal. Mitigating these risks with the use of an advanced Commodity Management solution is imperative for any firm that plans on a long-term future and takes its shareholders’ interests seriously.

Triple Point Technology Lauren LaFronz is from Triple Point Technology, a leading global provider of cloud and on-premise commodity management software that delivers advanced analytics to optimise end-toend commodity and energy value chains. Founded in 1993, the company employs over 850 staff in 15 offices and support centers worldwide. For further information please visit: www.tpt.com

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66 Mitigate enterprise risk by delivering a real-time, holistic view of their business that integrates all physical and financial exposures alongside operational, counterparty credit, and regulatory risk exposures. 66 React quickly to unforeseen market events and daily volatility by providing advanced analytics that support smarter, faster decision-making. 66 Maximise profitability by integrating physical and financial instruments, optimising cross-commodity and FX hedging strategies, and rapidly identifying arbitrage opportunities across markets and products. 66 Minimise supply chain risk by providing inventory management functionality and optimising product movements and complex itinerary scheduling.

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These sophisticated solutions enable crude market participants to:

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process Building the

Governance, risk and compliance the importance of process, by Matthew Smith

n recent years there has been a radical shift of emphasis throughout the oil and gas sector, from one in which the principal business focus was on profit performance, to one that centres more strongly on managing and containing risk. The reasons are not hard to find. Recent global environmental issues in this sector have put the industry firmly in the public eye. As a result, in the area of governance risk and compliance (GRC) in particular, the primary emphasis has moved on from just ensuring compliance in meeting the tough - and increasing demands of external regulators. This is now overlaid with the additional pressure for the business to be seen to be doing the right thing. Today, every move is under the microscope, both in terms of building back public confidence and governmentsâ&#x20AC;&#x2122; willingness to work with the industry and individual companies within it.

Although this is undoubtedly having a dramatic impact on all aspects of the oil and gas sector, there is now light at the end of the pipeline. An integrated, process-driven approach to GRC, which provides full end-to-end process visibility across all parts of the company, can ensure that the business remains clearly in control of its destiny, rather than a victim of circumstance.

Reach and access Like other industries, oil and gas companies are faced with huge increases in information from diverse sources, including distributed platforms, autonomous rigs and other operating sites around the globe, in a similarly diverse variety of formats. Unlike other industries, however, in considering the implications of the big data explosion, the sector must go beyond the typical challenges of managing the growing volume, velocity and variety of data. In light of the dent

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in public confidence in the industry’s ability to respond effectively when problems arise, it has become equally essential to think about reach and access to data. Company executives and public relations teams, for example, need instantaneous access to information they may not even know exists. When an incident happens, it is no longer acceptable to stand in front of the cameras and say: ‘we don’t know’. Rather, in today’s 24/7 news world, where global reputations can be severely damaged in minutes, it is as important for the company to provide reach and access to key spokespeople as it is to the technical teams tackling the problem. However, there is another dimension here. Risk management is essentially process-driven, yet information must now be made available for the first time to staff that are neither technical nor familiar with process. To do this, collaboration across the oil and gas sector must move beyond the level of technical to that of social business collaboration.

This presents a problem for solutions providers to the oil and gas industry, who to-date have concentrated on technologies to improve process automation and optimisation. Yet, in order to support business users, it is necessary to go beyond straightforward access to accessibility of information. Here, social business collaboration is about bridging the gaps between disciplines and domains of knowledge across the business, so that an accountant, marketer or PR manager can access and understand the data as effectively as an engineer or process owner.

Perception and truth Providing the ‘face of the business’ with tools that will enable them to demonstrate that the organisation is in possession of the facts and is managing the situation in the best possible manner can go a long way in the event of a crisis, as well as improve corporate perception generally.

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Historically, decision-making in the oil and gas environment has always been complex, often with significant commercial, regulatory or environmental ramifications. In the glare of publicity, speed of response has now been added to the list of demands for effective decision-making. In response, modern technology has evolved to enable rapid data access, from remote seabed sensors to financial data and everything in between. Combined with decision analytics and process management, these technology innovations are helping to cross operational boundaries and enable informed decisions to be taken very quickly. Just as the business can no longer operate in separate silos, so problems have similarly become enterprise-wide. If something goes wrong with a rig, changing related processes is likely to have an impact across the business. Equally, it can no longer be contained in a world where news is just as likely to hit the internet before it reaches the boardroom.

Integration is key So what should a best practice solution incorporate if the business is to respond effectively in this fast-changing environment? Whether dealing with technical issues or interacting with customers, the business is driven by process. To work effectively today these must be joined up, integrating each step seamlessly as part of an end-to-end interaction. This has a number of implications. First, the business and IT teams must work closely together in ensuring that processes are running successfully, profitably, environmentally safely, transparently and understood by all relevant staff across the business. From a technical perspective, much of this is monitored through the use of remote real-time sensor technologies. At the same time, each process must be designed, built, consumed, shared and collaborated on in a way business users understand as easily as IT specialists. For example, a process can be represented pictorially – not as a traditional complex process diagram but in simple block flow format which is easy to collaborate on, shared and developed via a cloud application and taking advantage of each participant’s individual skills and expertise. This is true social business collaboration, as technical staff are not required at any stage. And, by joining business operations with IT and relating it to each process, this can now be represented visually via a role-specific activity monitoring dashboard. Crucially, these processes are only as good as the information they are based on. With data growing exponentially, information management has become critical in enabling effective data access. In-memory solutions are valuable here in allowing real-time access, as data moves away from monolithic legacy databases to more flexible, easyto-access online alternatives that enable decision-making now, not tomorrow. In delivering this, the best process integration technologies have operational management and

in-memory capability built in. Finally, a large element of decision-making in the oil and gas sector involves a critical time element, such as “when this happens and then that happens within 30 minutes, then do the following”, which requires the adoption of complex event processing technologies. Earlier rules-based events engines remain effective in industries such as financial services which focus more on simpler ‘if this, then do that’ scenarios, but are not capable of incorporating critical time-based analysis in the way oil and gas companies demand.

First steps Until now, different functions and industry sectors have tended to approach the challenge of developing an integrated solution from different perspectives, depending on their most important business drivers or points of pain. For example, a CIO typically focuses on the availability and delivery of information. Yet, arguably its true value lies in driving business process. Only by recognising this can an effective business case analysis be undertaken, which looks at who within the business is consuming what information and the value derived from it. The results will show that the true value of better information management is through its power to influence best practice processes. At a company level, those focused on brand quality or brand consistency are more likely to focus on process as the start point, in ensuring processes which deliver stable, standard quality products or services every time. Here, the

key is to ensure maximum end-to-end process visibility in order to ensure confidence that the organisation’s brand values are maintained. However, within the context of today’s changing oil and gas environment, in which social networking has rapidly become critically important in enabling the business to manage - and be seen to manage - its business in the most effective way, process has become the most effective start point. When creating a best practice GRC environment, one of the most crucial aspects of the puzzle is to make sure that processes have the flexibility to respond in a highly mobile working environment; whether it is the finance team looking at aspects of risk management or a retail team looking at data in supporting process-driven master data management (MDM). Here, managing process is of central importance, as it is quite simply unrealistic to expect an organisation to integrate its whole business. Yet, it is possible to understand and model processes, putting in check points along the way and reporting on what is happening across the organisation. In this way the business gains essential transparency of its end-to-end processes, which underpins the ability to get relevant information to key staff in real time, dealing with all aspects of business management, including handling crises.

Better processes, improved confidence With the growing importance of GRC, the key for operators is to model their existing processes - including both consumable and non-consumable resources – in a way that

produces tangible metrics. Establishing this as the ‘as is’ position, a simulation tool will then enable organisations to determine where improvements can be made to the process and a gap analysis undertaken to enable them to get to the ideal ‘to be’ goal. Working with a specialist third party who knows what ‘good’ looks like in terms of process and help undertake the journey can be valuable. Similarly, experience of different sectors can also be informative: retail, for example, understands customer interaction and management processes better than many other industries. In an industry such as oil and gas, which is under constant public scrutiny, the key to effective end-to-end process management is transparency. This means making information accessible in real time to the business, in a way that can be immediately understood, and using it in a way that gives confidence to a wider and more vocal group of stakeholders.

Software AG Matthew Smith is UK director of business solutions at Software AG, the global leader in business processes, integration and big data. The company offers customers a variety of end-to-end solutions that deliver low total cost of ownership and high ease of use, including ARIS, webMethods, Adabas, Natural, CentraSite, Terracotta and IDS Scheer. For further information please visit: softwareag.com

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Company executives and public relations teams, for example, need instantaneous access to information they may not even know exists. When an incident happens, it is no longer acceptable to stand in front of the cameras and say: ‘we don’t know’

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DECOMMISSIONING

FOCUS

Sharing

Decom Offshore was designed to provide a collaborative industry perspective on the key challenges facing the decommissioning sector over the coming years

in the North Sea is continuing to grow at a considerable rate, with analysts predicting activity levels of £4.5 billion between now and 2017. This increase means that Decom North Sea (DNS), the organisation that was established to represent the North Sea’s oil and gas decommissioning industry, is set to play an increasingly important role. Accordingly, over the last year the forum has been at the forefront of the industry, spearheading a number of initiatives and programmes designed to support long-term growth. These include a standard template for decommissioning programmes that will be used by operators to obtain approval for decommissioning operations in the North Sea, a joint industry project aimed at promoting the reuse of key items of equipment, remuneration models and the encouragement of greater knowledge transfer and market information between organisations and companies in the industry. The latter point remains a key objective for DNS as it strives to promote greater understanding and communication between entities to encourage the sharing of best practice, technological innovations and methods of overcoming challenges. While the organisation has a number of methods of achieving this, a major role is played by the various events that are planned and hosted by DNS each year. For example, its annual decommissioning conference, which in 2012 was jointly hosted by DNS and Oil & Gas UK was a great success and attracted leading industry figures from around the world with the sole purpose of sharing decommissioning knowledge and participating

in interactive discussions on topical issues. In fact, the success of the conference has led DNS to create a new event – Decom Offshore 2013 – held in March this year. “Decom Offshore was designed to provide a collaborative industry perspective on the key challenges facing the decommissioning sector over the coming years. Groups of our operators and main contractors, working together, outlined the main issues relating to the sub-surface, subsea, infrastructure removal and onshore disposal phases of a typical decommissioning programme,” explains DNS’ CEO Brian Nixon. “The event was designed to be highly interactive and each session included open discussion and debate. Importantly, it allowed individual supply chain companies to validate and clarify points of importance as they arose, meaning that they will have much greater confidence in their respective business opportunities. Furthermore, Decom Offshore 2013 served to highlight emerging technologies and techniques from decommissioning specialists, helping to introduce operators and major contractors to sources of talent and expertise.” The nature of the event was such that encouragement and collaboration was centre stage. As Brian comments: “Whilst it may be possible to anticipate some of the challenges likely to be highlighted, we purposefully organised the event in such a way that experienced representatives from our industry identified and articulated the outcomes.” Decom Offshore 2013 is just one example of the hard work that DNS engages in when supporting the growth and development of the North Sea decommissioning industry. “It’s just

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experience

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Over the next five to ten years we believe that there will be some acute capacity restraints and pinch points that may have a bearing on the industry due to increased activity in all of the operating sectors

For further information please visit decomnorthsea.com

FOCUS

one of the initiatives that we deliver throughout the year,” says Brian. “For example, we have also established a special interest group with companies in the Great Yarmouth and Lowestoft area to address the particular challenges and opportunities relating to the lighter weight assets in the Southern North Sea. We also lead regular learning journeys to Norway, Denmark, the Netherlands and key regions of the UK, and have recently completed our first visit to Louisiana to research synergies and approaches used in the active Gulf of Mexico market.” Alongside these developments, DNS continues to work towards the initiatives mentioned earlier in this article. One of the initiatives to come out over the last year was the development and introduction of a standard template for decommissioning programmes that will now be used by operators to obtain approval for all decommissioning projects in the North Sea sector. The standard template was the result of six months of collaborative work and was facilitated by DNS and supported by the Department of Energy and Climate Change (DECC) and a working group of DNS member companies (BP, CNR International, Talisman, Marathon Oil, GP Decom and Optimus Decom), with additional input from Perenco and Wood Group PSN. Speaking to European Oil and Gas earlier this year, Brian highlighted this initiative as an excellent example of the collaborative spirit across the industry and was highly positive about the benefits it would bring to the industry. Updating us on the progress, he explains: “The Standard Decommissioning Programme has now been formally endorsed by the UK regulators and has been used by two operators for different types of asset. The Template is now live on both DNS and DECC websites with operators being encouraged to adopt it during 2013 before it is

expected to become mandatory. It is hoped that in time this Template could also be adopted for use in other European countries (albeit with some minor alterations perhaps being needed), helping operators and contractors alike to standardise their efforts across the North Sea.” All of these projects are progressing well, underpinned by the aims of DNS and its desire to improve and support the industry. One of those aims, and a spirit that Brian is always keen to pursue is that of collaboration. “There is encouraging evidence of collaboration in many areas,” he says. “With work underway to map out the full supply chain, share experience through case studies, consider technology improvement, and establish joint venture arrangements to reduce the number of contracting interfaces. Cost remains a challenge for operators and taxpayers alike, with some parties looking for game-changing approaches to these complex projects.” If this spirit of collaboration continues, there is little doubt that the decommissioning sector in the North Sea will grow in a positive fashion despite any possible challenges. One that Brian highlights is the potential pinch points and restraints in terms of capacity. “Over the next five to ten years we believe that there will be some acute capacity restraints and pinch points that may have a bearing on the industry due to increased activity in all of the operating sectors. We will shortly conclude two consultancy projects; one is intended to provide an assessment of the strengths and weaknesses of the supply chain, while the second will hopefully provide an assessment of possible future capacity constraints. We hope these analyses will be complete by April.” With DNS maintaining its role at the forefront of the decommissioning industry, there is little doubt that 2013 looks to be a busy, and exciting year.

PROFILE

PROSERV

Above Proserv technician operating subsea control system Below Proserv's Marine Growth Removal (MGR) Tool

Proserv

, a production technology and services company for the global energy industry, credits its success on the strength of its engineering capabilities, innovative solutions and field proven technologies. Headquartered in the UK, Proserv works closely with clients to maximise recovery, minimise costs and enhance sustainability, and offers them a wide range of products and services for the entire oilfield lifecycle. The company has a large global footprint, and employs over 1600 people in 12 countries. Proservâ&#x20AC;&#x2122;s products and services fall under four categories â&#x20AC;&#x201C; drilling and production, subsea technology, equipment and support, and infrastructure services. These divisions then cover their own range of services, so for example, infrastructure services includes automated pressure test facilities, marine growth removal, friction stud welding, and infrastructure decommissioning and abandonment. In this last area, Proserv is a global leader in the abandonment and decommissioning of offshore structures and pipelines. With over 35 years experience, Proserv has abandoned and decommissioned over 600 structures worldwide. It offers an extensive range of equipment and services for marine and subsea

operations, including ROV and diver deployed equipment, which is being used within remote and challenging environments around the world. Furthermore, using the companyâ&#x20AC;&#x2122;s in-house manufacturing capabilities and expertise, it is continually developing new tooling solutions in order to meet complex engineering project requirements worldwide. A recent addition to the facilities at Proserv in Trondheim will further enhance the solutions available from the company. This new flagship research and development (R&D) centre, which

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Above Proserv technician offshore

opened in April 2013, is designed to create new subsea innovations worldwide, and contains vast workshops and office space as well as an impressive technology showroom for client demonstrations. The opening of this centre is only the latest in a raft of exciting announcements Proserv

has made in 2013. In February the organisation secured two major contract wins worth in excess of £15 million for work in the North Sea, which further strengthened its market-leading position in the subsea controls and communications field. The first deal is with TAQA for the control of subsea wells approximately 16.5km from the Tern platform in the Cladhan field. Proserv will implement a system to control three subsea wells as part of a significant development project for the company. Using Proserv’s proprietary Open Communications Controller (OCC) technology, the system will provide a high-speed network capable of communication speeds up to 1.3Mbps. The second contract award is with another leading operator and also involves work to control the subsea wells. Proserv will use a cutting-edge system, which will control a number of wells and manifolds. This features a fibre-optic communications system using Proserv’s Open Communications Hub (OCH) technology for fully transparent communications and high-speed data monitoring from the subsea multi-phase flow meters and control modules. Commenting on the recent award wins, David

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Services Drilling and production, subsea technology, equipment and support, and infrastructure services

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offering and will enable us to provide the offshore and land based drilling sector with a more comprehensive drilling controls solution.” He added: “We are thrilled to welcome the TIC team to Proserv. They bring a broad range of technical skills and experience, but most importantly they share our core values and ambition to be the provider of choice to our customers and together, as one company, we are even stronger.”

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Lamont, Proserv’s chief executive officer, said: “Both contract wins reflect Proserv’s industryleading position and strong track record for delivering high-value integrated technology systems on time and within budget. “Proserv’s fast-growing suite of technologies have been developed based on the company’s ‘ingeniously simple’ philosophy and are underpinned by our international talent pool of technical and engineering expertise.” The beginning of the year also saw Proserv consolidate its position following the successful completion of a $215 million refinancing agreement. Proserv has experienced exceptional growth within the past two years with turnover rising from $181 million in 2011 to around $316 million within 12 months. The refinancing agreement reinforces Proserv’s fast-growing status and came after the company made two high-profile acquisitions in 2012, which not only bolstered its capabilities but saw its global talent pool increase by more than 600 people to over 1600. In May 2012 more than 300 members of Weatherford staff joined Proserv when the company’s subsea controls subsidiaries were acquired. Six months later, in December 2012, Proserv acquired major US company Total Instrumentation & Controls (TIC), a company that specialises in advanced process and control systems equipment and has a manufacturing facility in Lafayette (LA). TIC provides a broad range of installation and maintenance services to equipment manufacturing, drilling, production and pipeline companies. Specialising in blowout prevention (BOP) stacking and installation services for offshore applications, the company manufactures drilling and production control systems and supplies ancillary subsea components such as remote terminal units (RTUs) and topside umbilical termination units (TUTUs). The deal reinforces Proserv’s position as a leading player in the drilling and production controls market and provides it with enhanced capabilities to expand its offering into the BOP subsea controls and services sector. David commented: “This is a significant development for Proserv as TIC is a leading independent contractor to subsea BOP manufacturers, meaning the deal will create a greater stronghold for Proserv in the Gulf of Mexico market, enhancing our integrated capabilities. In turn, this will allow us to crosssell Proserv products and services through TIC’s customer base, creating considerably more capacity to develop our international business. “Existing product lines, such as our Gilmore Valve range, are complemented by TIC’s service

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PROFILE

Simon Storage

growth Simon Storage is able to remain strong in uncertain market conditions due its diverse operational nature and its flexibility in responding to the market

independent bulk liquid and gas logistics service provider that has eight terminals in prime locations in the UK, Ireland and Germany. The business has over 80 years of experience in developing its own assets and infrastructure, and prides itself on understanding the value of effective asset development in order to meet the current and future demands of the oil, gas and petrochemical sectors through continuous investment in infrastructure, combined with cost-effective solutions for specific storage and handling requirements. Simon Storage has a long history, with roots that date back to the early part of the last century. Since that time the business has experienced progressive expansion, growing organically as well as by adding to its capabilities through various strategic developments and acquisitions. In 2005 the business was acquired by Canadian company, Inter Pipeline Fund, which is a major transportation, storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Simon Storage was last featured in European Oil and Gas in early 2012, and since that time has continued to enjoy further success. One large development for the business has been the entering into an agreement with Centrica Storage Limited for the receipt, storage and redelivery of gas condensate, which has involved Simon Storage building two new storage tanks for the project.

The Centrica project represents a significant development for Simon Storage, with the business recently completing the construction on time and within budget of the two new 3000m3 carbon steel tanks for the contract, together with dedicated pipelines for handling the products. These incorporate internal floating roofs to minimise vapour emissions as well as externally stiffened roofs to maximise internal volume. Importantly, they have been designed and built in accordance with process safety standards, including the fitting of overfill safety systems linked to remotely operated shut-off valves (ROSOVs), as well as having tank levels and other process information communicated to a supervisory control and data acquisition (SCADA) and tank visualisation system. For the contract, Simon will receive condensate into storage at its Immingham West Terminal from Centricaâ&#x20AC;&#x2122;s processing plant at Easington, East Yorkshire directly by said pipelines. The contract coincides with the completion of Centrica Energyâ&#x20AC;&#x2122;s York Project, which is a significant project to build a gas platform and pipeline approximately 34km off the coast of East Yorkshire, UK. The gas from this field will be processed at Centricaâ&#x20AC;&#x2122;s Easington plant, and Simon Storage will provide a strategic storage and distribution hub for the condensate that is produced during the processing. The Centrica project represents an important contract for Simon, both in terms of further developing its prestigious customer

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Simon Storage is a leading European

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Handling

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PROFILE

Simon Storage

products, vegetable oils and renewable fuels. When European Oil and Gas last featured Simon Storage the European tank storage industry was operating in a highly challenging environment, which was being directly affected by changes in oil supply, volatility of prices and other economic pressures. The oil business, specifically the downstream wholesale market, is still not too strong as a result of reduced investment, but conversely, the chemical sector has been strong for Simon Storage this year. Simon Storage is able to remain strong in uncertain market conditions due its diverse operational nature and its flexibility in responding to the market. The key for the company is its very broad portfolio of products and customers, which is a real strength of the business. So, while one area may be witnessing portfolio and extending its presence in the North Sea oil and gas sector. There is little doubt that the North Sea is an area that has presented a number of opportunities to Simon Storage of late. A good example, particularly in the expanding North Sea sector, is the growth of various decommissioning projects and associated services. In this particular area Simon Storage has received enquiries from decommissioning companies related to the produced water â&#x20AC;&#x201C; so handling the liquids and bringing them to shore, along with the treatment and disposal that is needed through the warehouse and liquid storage receipt facilities that it is able to provide. The decommissioning market in particular is one that Simon Storage is certainly aware of in terms of potential. An example of this type of work is that which Simon Storage has been undertaking with Enviroco, a leading provider of waste management and industrial cleaning services that has been carrying out work in decommissioning. The company has had a long-standing partnership with Enviroco based around landing process water from offshore, and providing warehousing to land the product, safely store it and handle it before distribution to the disposal or treatment site. Of course, this is just one small area of Simon Storageâ&#x20AC;&#x2122;s overall business, as the company works for a diverse range of customers handling more than 250 different products and blends for a wide range of areas. Primarily this consists of the blending and storage of a full range of petroleum and petrochemical products, as well as refined products like liquefied petroleum gases, chemical

a downturn in activity it is often offset by increased activity in other sectors. In terms of moving forwards, the UK is a fairly mature market in relation to its requirements, which means that as a business Simon Storage is increasingly looking beyond that. As mentioned, it has some facilities in Germany and its parent company has recently acquired some facilities in Denmark, so the company is looking for further development opportunities in terms of energy infrastructure in Europe over the coming years. This will be, as per its strategy, through acquisition and organic development. The company covers a number of areas, which means that ultimately there will remain a lot of opportunities in the future to continue to provide cost-effective solutions to the commercial needs of the tanks storage market.

P&I Design Ltd P&I Design Ltd is pleased to have worked with Simon Storage for over 20 years, providing instrument, electrical consultancy and design, together with installation and commissioning services across the group. Following the Buncefield incident in 2005, P&I Design Ltd has been involved with a number of industry and competent authority working groups and has implemented many BS EN 61511 compliant systems. Other areas of expertise are process design, training and competency demonstration.

Simon Storage simonstorage.com

Services Bulk liquid and gas logistics provider

PROFILE

Wood Group Kenny

The voice of

Wood Group Kenny

Lessons from Brent Spar are still very much the talk of how decommissioning should happen, and how shareholders may react

has forged a reputation as a leading provider of lifecycle pipeline and subsea engineering and project management services. With over thirty years of worldwide experience covering subsea, pipeline and riser design, materials engineering and renewable energy developments, Wood Group Kenny is uniquely placed to deliver multidisciplinary project teams backed by specialist, high-end, niche technology services. While Wood Group Kenny’s capabilities were initially established in the design and delivery of new subsea and pipeline projects, its skills and expertise are now deployed further along the lifecycle chain with service offerings in asset management, integrity management and decommissioning. As in other areas of the Wood Group business, Wood Group Kenny delivers a wide range of services in decommissioning beginning with liability studies, supporting due diligence processes, and assisting with environmental applications and presentation of decommissioning cases. When it comes to actually deconstructing the asset, Wood Group Kenny can select and arrange contractors, review procedures, and supervise the offshore work through to completion. Describing the company’s most recent

decommissioning activities Graham Ling, decommissioning team leader, says: “The bulk of decommissioning work has consisted of engineering studies and cost estimates. My team at Wood Group Kenny serves subsea decommissioning worldwide and the last year has seen input into decommissioning planning in countries including Canada, New Zealand, Qatar, Angola, and Russia as well in the North Sea.” He continues: “Operations wise, we recently completed the subsea campaign at North West Hutton, on which we supported the operator

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and socio-political impacts of the existing infrastructure and it’s decommissioning. “Lessons from Brent Spar are still very much the talk of how decommissioning should happen, and how shareholders may react. The advantage of working for an engineering contractor which sits between the operators and the vessel contractors is that we can be objective, but I have high hopes of a much improved understanding of decommissioning impacts and the correct choices that should follow,” he adds. In order to ensure that it has the expertise needed to accommodate a growing volume of work, Wood Group Kenny continues to recruit high calibre graduates from esteemed universities every year. The company has also seen success through its New Energy Programme, where it has recruited experienced personnel from other industries and crosstrained them in the subsea sector. Combining this new talent with Wood Group Kenny’s existing skills base and experience in handling decommissioning projects, the company is confident it can support the industry as it steps towards another phase of its lifecycle. “I see our decommissioning experience and expertise being crucial for the emerging market,” concludes Graham. “Resource constraints are making it increasingly difficult for operators to build their own teams for each and every decommissioning project, which is where we step in. Our aim is to continue to build a team that uses industry best practices and develops broad experience, which can support our clients’ needs and those of the other stakeholders, as well as protecting the environment.”

BEL Valves Deepwater challenges facing BEL Valves Working at the forefront of subsea engineering with companies like JP Kenny, BEL Valves is delivering high integrity valves designed to operate at depths reaching 3000m. These deepwater reservoirs present many engineering and technical challenges. From ambient pressures reaching thousands of psi and sea water temperatures just above freezing to reservoir pressures reaching 20,000 psi and temperatures over 140 degrees C. With strong working partnerships BEL Valves is overcoming the challenges presented by this rapidly growing sector of the subsea market and is delivering the reliable solutions needed for these demanding operating conditions.

Wood Group Kenny woodgroupkenny.com

Services Umbilicals, riser design and flowline engineering and management services

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with project management and technical representation. Our decommissioning team is now looking at the next BP assets that are to be decommissioned.” Wood Group businesses will often join together in order to ensure the seamless delivery of its decommissioning package to clients: “We will also be continuing to work very closely with Wood Group PSN’s decommissioning team as many decommissioning activities cannot easily be separated into subsea or topside,” says Graham. “Many of the projects we work on are already an internal joint venture between Wood Group Kenny and Wood Group PSN.” As decommissioning becomes a more widespread global activity, there is in turn growing interest in looking at the different approaches taken. “I visited Kuala Lumpur last year and they are intrigued as to how things are done in the North Sea,” explains Graham by way of an example. “The Association of Southeast Asian Nations (ASEAN) countries have so far exerted less pressure for a clean seabed than is the rule-of-thumb for the North Sea, and are equally interested in the decommissioning arrangements in the Gulf of Mexico for example exploiting the benefits of Rigs-to-Reefs. “I’ve been asked to speak at a subsea conference in China this year, about the regulatory differences around the world, amongst other subjects. The Chinese decommissioning market shows large potential at present. Most months I am contacted by Wood Group offices from around the word for decommissioning support because as with many things offshore, the North Sea standard has set the bar,” he continues. Of course, decommissioning may not necessarily be the most suitable immediate course of action for some developments. Wood Group Kenny believes that its later life asset management services can help to extend useful life and effectively delay these activities to exploit more value for customers. When assets reach a point where they are no longer economical to operate, one of the biggest challenges is the selection of the most appropriate decommissioning method. As Graham outlines, there is now a lot of work being carried out to this end: “The impacts of different decommissioning methods are often misunderstood. I am very interested in studies currently being undertaken by Oil & Gas UK (OGUK) and IMSA. These results will offer a better understanding of the environmental

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European oil & gas

growth Accelerated

Headquartered in Aberdeen

, leading offshore services provider Bilfinger Salamis UK Ltd celebrated a record year of economic growth in 2012 with a rebrand from its previous name BIS Salamis. Delivering industrial services to the oil and gas markets throughout the lifecycle of offshore installations, the company has nearly tripled its turnover in the last ten years. This impressive growth has been part of the company’s strategic plan since Bilfinger Industrial Services entered the UK in 2006 through the acquisition of Salamis Group; since then the company has increased its service offering to become a global engineering and industrial provider, as Murray Strachan,

strategic development director at Bilfinger Salamis UK elaborates: “Bilfinger Industrial Services and Bilfinger Salamis are new names but we have been finding solutions to the requirements of our clients in the UK oil and gas industry for nearly 40 years. In March 2013 all of the sub divisions of Bilfinger Industrial Services, which accounts for circa 3.7 billion euros of the circa 8.6 billion euro turnover of Bilfinger Group, were rebranded to bring client and industry focus to the wider capabilities we at Bilfinger can offer.” Initially focused on painting and blasting services, Bilfinger Salamis UK today provides integrated cost effective multi-disciplined offshore support services and maintenance solutions, such as rope access, deck services, architectural services, specialist cleaning and inspection, to a range of clients. The company has evolved from fabric maintenance contracts and there is an ongoing strategic goal of developing a stronger foothold in the decommissioning sector, within which it has recently become a player. Viewing this step into decommissioning as a natural progression of the specialist services currently offered to clients, Gary Cruickshank states: “We have been providing aspects of decommissioning for a number of years in services such as cleaning, asbestos removal, minor modifications and the identification and cleaning of naturally occurring radioactive material (NORM). These services are part of our day to day activity and are part of our growing decommissioning scope.” To further strengthen its competitive edge in the decommissioning sector and expand its current service offering in the offshore industry, Bilfinger Salamis announced a technical alliance with Star Net Geomatics, a leading provider of surveying, inspection and design and modeling services, and PDL Solutions (Europe), a leading provider of advanced 3-dimensional computer aided design, in 2012. The agreement will allow the Inspection division of Bilfinger Salamis, the opportunity to offer a fully integrated factsbased approach through the utilisation of stateof-the-art 3D laser scanning and true-to-view photographic technology. The combination of this integrated engineering solution will provide clients with accurate dimensional information and a clear range of options throughout the entire decommissioning process. The influx of decommissioning work has led to the company creating its own decommissioning team so the specialist service

and is expected to run until 2014, creating an anticipated ten onshore positions and a further 200 offshore jobs. “Over the next five years we want to increase business turnover by £100 million. We aim to do this through a combination of developing the inspection and testing division and significantly increasing the specialist services division. Ultimately, expanding our business will come down to a combination of organic and acquisitive growth,” Murray concludes.

Bilfinger Salamis UK Ltd salamis.com

Services Offshore support services and maintenance solutions

European oil & gas

unit of the business will not be disrupted from everyday projects when a tender for a large scope of work comes up. While other companies may be struggling to find personnel, Bilfinger Salamis has vastly increased its offshore work force, as Murray highlights: “Between our bases in Aberdeen and Lowestoft we have circa 2000 people offshore and in excess of 200 people onshore. In terms of the wider Bilfinger UK we have up to 5000 employees, and our Norwegian sector has 2000, so we have a wide resource capability.” Proud of its workforce, Bilfinger Salamis has its own skills centre, where courses are offered to both internal and external personnel at various career stages. Courses are offered in specialist areas such as working at height, blasting and painting, bespoke client specific services and confined space and vessel entry. Learning is a key part of the company’s culture and there is a firm belief that continuing to be better than competitors is the best way to ensure its status as a leader in the offshore industrial services

Bilfinger Salamis UK

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PROFILE

market. It is for this reason that the company developed the employee development strategy and competency system that assesses and certifies each individual employee’s competence in both the technical and soft skills necessary to carry out his or her role. Throughout 2013 the company will continue its focus on the offshore oil and gas market, which includes completing a major piece of research into decommissioning opportunities for both Bilfinger Group and Bilfinger Salamis in May 2013. Following a period of competitive tender, the company was appointed to provide services for an upgrade project by Shell in March 2013. The win extends Bilfinger Salamis’ portfolio of projects with North Sea operators

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European oil & gas

Decommissioning

differently Mammoet is the world’s leading tailor-made heavy lifting and multimodal transport solutions specialist. Its core business is the transport, shipping, installation, and removal of heavy or large objects, to and from any location, onshore or offshore. As a recognised leading contractor in heavy lift and transport, and wreck removal and salvage, the company is also confident to develop the same presence in the decommissioning sector. In the past such activities were predominately serviced through Mammoet Salvage and its subsidiaries for offshore projects, or the heavy lift side of the business, but at the start of 2013 the Group took the decision to create a separate decommissioning entity that was better aligned to what the industry needs. As such, Mammoet Decom was born to solely focus on the decommissioning and removal of offshore installations such as platforms and pipelines. “Our approach to the decommissioning industry is indicative of that of Mammoet in general in that we identified that no two platforms or installations are the same,” elaborates Jelle Lanting, general manager of Mammoet Decom. “Many may have similar characteristics in terms of often being built on a steel jacket and with a topside, but there are so many factors playing a role in considering the best option for removal that we felt decommissioning was another sector which is often not best served with just one tool.”

Decommissioning is still quite a young market, and as such is being approached in quite a conservative manner by many in the industry. This means that most platforms are removed with the same types of heavy lift vessels that were used in the original installation. “Our approach is quite different compared to what is usually done in the market,” confesses Jelle. “Our techniques are used cross-industry, as opposed to having a fixed approach to either heavy lift or salvage, and as such we opt to build a custom solution tailored to each project through a configuration of our different types of equipment and tools. “We do have a standard kit of floating and lifting equipment, but often what converts this from just equipment into a solution is a small amount of investment into steel work or additional development for example. Quite often though the cost of this is not so high that it cannot be borne by one project, and in fact, creating a job-specific solution can be more economic than using a large heavy lift vessel,” he continues. Each job starts with an inter-office brainstorm where Mammoet Decom can draw upon the different expertise of its marine engineers, structural engineers, naval architects, and project managers. “Decommissioning projects often have long lead times from project initiation to contract award, so we usually work to develop three or four high level methods, and then try to bring these together into one optimal solution.

challenge now is for this division to establish itself outside of the shadow of this larger Group entity. “We want the market to recognise us as a decommissioning contractor that is taking a smart look at decommissioning,” concludes Jelle. “Our approach may take operators out of their comfort zone, but we hope to demonstrate that the techniques of other industries can also be proven for the offshore sector as well. “I want to innovate the decommissioning industry a little bit, and try to widen the possibilities of how these activities can be done. What has been seen quite often in the recent past is that a lot of decommissioning tenders are written with the focus on removing a platform with a heavy lift vessel, and that makes it quite difficult to come up with an approach other than a heavy lift vessel. If we can inform the market that there are alternative ways of removing their installation that would be a big benefit. This is what I want to achieve because I truly believe that it will have a favourable effect on decommissioning costs and planning.”

Our approach may take operators out of their comfort zone, but we hope to demonstrate that the techniques of other industries can also be proven for the offshore sector as well

Mammoet Decom BV mammoet.com

Services Decommissioning, removal and transport projects

europeanoilandgas.co.uk

The result of this is a practical and workable method that is often quite low-tech and therefore less vulnerable in the field than a high-tech engineered solution,” notes Jelle. As a market leader in its core business segments, Mammoet’s growth is somewhat limited within those areas, therefore the decommissioning sector presents a prime growth opportunity. “We are taking two different approaches to these projects,” highlights Jelle. “There are some opportunities where I believe Mammoet Decom can contribute to more effective and efficient decommissioning as a main contractor, and there are others where we are discussing just a small scope of the works where we can deliver a smart solution. Our approach may mean we cannot serve the entire market, as in some cases a heavy lift vessel will be the best tool for the job, but for certain applications we can undoubtedly offer a cheaper, faster, and better method.” Although the Mammoet name certainly helps to open doors for Mammoet Decom, the

Mammoet Decom

European oil & gas

PROFILE

Bristow Helicopters

of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated, and one of two helicopter service providers to the offshore energy industry with global operations. Bristow Helicopters Ltd. is an affiliate that has operated in the UK and Europe for more than 50 years, primarily providing crew transport services to offshore drilling rigs and production platforms in the North Sea. Bristow Helicopters Ltd. also has a long history of providing search and rescue (SAR) helicopter services in the UK, starting in 1971. The company then went on to deliver SAR services for HM Coastguard from four bases, Stornoway, Sumburgh, Lee-on-Solent and Portland, until 2007. In 2012 the company was awarded the UK Gap SAR providing SAR helicopter services from bases in Sumburgh and Stornoway, starting summer 2013. In March 2013, this mandate was expanded when Bristow Helicopters won the contract to deliver SAR services to the UK. Bristow Helicopters’ history in SAR is exceptional, with more than 44,000 SAR operational hours in the UK and over 15,000 SAR missions, during which more than 7000 people were rescued. The company has also led the industry in introducing new aircraft types and technology to the civil market. Some of the SAR equipment it introduced has become the industry standard, resulting in Bristow Helicopters being recognised with the Queen’s Award for Innovation for its technical developments. The company’s long and successful tenure in SAR, its leadership in advanced technology and its commitment to operational excellence and to delivering world-class service contributed to it

having been awarded the UK SAR contract. Mike Imlach, Bristow Helicopters’ managing director, explained that this is a ten-year contract that begins in 2015. “To service this contract we will commission 22 advanced technology aircraft, the Sikorsky S-92 and the AgustaWestland AW189.” These helicopters are fitted with state-of-the-art SAR support technology and offer significantly improved capabilities when compared to the SeaKing helicopters they will replace. “The technologies we are introducing have never been used before in SAR operations and will permit us to deliver a higher level of service and extended coverage,” Mike emphasised. Under the new contract, the company will operate from ten bases across the UK, strategically located near areas of high SAR incident rates. New facilities will be established at Inverness, Manston, Prestwick, Caernarfon, Humberside, Newquay and St Athan. Existing facilities at Lee-on-Solent and Sumburgh will continue to be used, and the base at Stornoway will be refurbished. The base locations and equipment will allow the ability to immediately surge up to seven aircraft simultaneously to a single incident. Bristow will create approximately 350 new jobs to support the contract, with about 55 per base, comprising of pilots, engineers, rear crew and also support administration staff. A transition agreement with the Ministry of Defence will ensure continuity of service and experience for military personnel transferring to the new operator. “Existing expertise and local SAR knowledge is immensely valuable and we will ensure that this is not lost,” said Mike. In May, Bristow is touring existing military bases in a recruiting effort co-ordinated closely with the Ministry of Defence. “Bristow is

European oil & gas

Bristow Group is the leading provider

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Flying

sikorsky

Trusted - and better than ever Sikorsky Aircraft on its next-generation S-76D™ helicopter We are excited that the FAA Type Certificate of Sikorsky’s venerable S-76® series helicopter was amended in October of 2012 with the addition of the latest variant, the S-76D™. We would like to take a moment to share with you some of the 35-year, 6,200,000-flight hour history of the S-76 series helicopter; and the enhancements we’ve built into the S-76D. • The S-76 is the safest aircraft in its class: Nothing is more important to us, or probably to you, than this. With more than 800 aircraft delivered, the S-76 safety record sets a bar that the entire industry envies. That’s a record that is built on fleet experience and the maturity that only time in service can assure. • The S-76 offers unmatched reliability: The S-76 family of aircraft has accrued more than six million fleet flight hours – more than ten times that of other competitors. Throughout those years of experience, Sikorsky has continuously invested in reliability improvements, delivering more profitability to operators year after year. It is without question the helicopter to turn to for day-after-day dependability – whether your mission is flying others for hire or flying yourself to that ‘can’t miss’ event. • Lowest operating cost: Whether you’re driven by economics or energy efficiency, the S-76D is the best choice, with 30 percent less fuel consumption than its closest competitor. And while you’re saving money, you’ll also be flying with the lowest impact you can, given the lowest noise level of any intermediate class helicopter. • S-76D Safety Enhancements: Improvements in safety include a new, flaw-tolerant composite main and tail rotor. Pilot workload has been reduced through the Thales cockpit, with Dual FMS and Autopilot with Flight Director, Power Limit Indicator, Digital Map, Early Ground Proximity Warning System, and Weather Radar. This avionics suite is based on the mature and reliable system developed for Airbus, particularly the A380. Also, an integrated Health and Usage Monitoring System (HUMS) will collect data that will be analyzed at a Fleet Management Operations Center (FMOC) to predict maintenance needs and remove components before failure occurs. • S-76D Enhancements: Proven Pratt & Whitney industry expertise is delivered in the 1000 shaft horsepower class PW210S engines. These engines will deliver an eight percent improvement in fuel consumption, 14 percent more takeoff power – all at the same weight as the prior engines. Thanks to its unprecedented levels of reliability and economy, the PW200 family is the best-selling in its market segment. With more than 10 models of PW200 engines produced and more than 2800 engines in service, their versatility has been demonstrated in a wide variety of applications.. PW200 engines power aircraft in service with 580 operators in 74 countries, accumulating more than six million flying hours in emergency medical service, utility, law enforcement, business and other operations. While the attributes described above make a compelling case for selection of the S-76D, that choice becomes even more obvious because the S-76 is typically priced at a level ten percent below its competitors. S-76D helicopters are in full-rate production and customer deliveries have already begun. As we start a new chapter in this modern helicopter’s story, there is much more we could tell you, and we would welcome the chance. For more information, contact us today. 6900 Main Street, Stratford, Connecticut 06615 USA +1 (800) WINGED-S (946-4337) or +1 (203) 386-4282 www.sikorsky.com S-76® and S-76D™ are trademarks or registered trademarks of Sikorsky Aircraft Corporation.

commenced a scheme with a charity institution where we put selected cadet pilots through the Bristow Academy and training scheme,” he explained. “In parallel to that we are running a sponsorship programme to introduce further cadet pilots because of the increased activity we see going forward.” In addition to recruiting, crew training has become a major priority. “We have leading edge simulators in Aberdeen where we train pilots. We have a new Sikorsky 76C++ simulator being installed at the moment that should be operational in May,” he said. “We are also planning for an AgustaWestland 189 simulator to be based in Aberdeen to service both the search and rescue and the oil and gas brackets.” With the oil and gas industry expanding into deeper waters, and SAR operations beginning in 2015, Mike expects Bristow Helicopters to be very busy in coming months. “Overall this is one of the most buoyant periods we have experienced, and I think we are putting together a pretty good success story.”

Whether it’s expanding into SAR, or helping its clients deal with the EC225 situation in the oil and gas sector, Bristow has shown resilience and responsiveness to its clients and government agency partners

Bristow Helicopters bristowgroup.com

Services Helicopter services

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bringing a SAR helicopter and a team that includes pilots, engineers and rear crew,” said Mike. “For staff currently working on military bases that are discontinuing SAR, we are offering the opportunity to come on board with Bristow after suitable training and selection.” In addition to hiring experienced SAR talent, Bristow also envisions a benefit to local communities in which Bristow will operate. Mike continued: “We are very committed to supporting the communities around our bases and anticipate our new staff will live in and become part of these communities. We also plan to use local services wherever possible,” he added. Bristow Helicopters’ oil and gas operations continue to be robust and very active. Mike noted that this area had been dominated over the last six months with the issues surrounding the Eurocopter 225. After the controlled landing of another operator’s EC225 into the North Sea in October 2012 - the second incident in six months - authorities suspended the industry’s global fleet pending further investigation. “The fact that the aircraft is suspended has created a shortage in capacity, and because of our disciplined financial management, we were able to respond quickly. We’ve introduced additional Sikorsky 92s in oil and gas mode and we have also put in some of our AS332 Tigers back to work as well.” Mike also noted that the company is going to be the introductory client for the new AgustaWestland 189, which it regards as a potential replacement for the AS332. “We hope to take delivery of the first oil and gas certified aircraft towards the end of this year to go operational in early 2014. We are working with some oil and gas operators to secure work for that aircraft.” He added: “This also ties into the search and rescue aircraft we were discussing, as the AgustaWestland 189 is going to be used for SAR across the UK.” Mike believes Bristow Helicopters is well positioned to do well in a helicopter transport market that has been growing increasingly challenging. Whether it’s expanding into SAR, or helping its clients deal with the EC225 situation in the oil and gas sector, Bristow has shown resilience and responsiveness to its clients and government agency partners. Part of this success is the company’s ability to anticipate future needs. Mike cited one example: developing the talent pipeline with sustained recruitment and a dedicated apprentice programme. “We have

Bristow Helicopters

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PROFILE

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European oil & gas

excellence Record of

Above R&D centre and team

Technip Umbilical Systems

markets a comprehensive range of bespoke umbilical systems, subsea products and offshore services, which are backed by a 30-year record of excellence in project execution and strong engineering capabilities. Sarah Cridland, Vice President, Projects and Engineering at the company, emphasised that Technip Umbilical Systems’ track record of successful projects is one of the company's main strengths, and something that clients are

very reassured by. She said: “Of course we focus on quality, reliability, and innovation, but our clients do want to know that products have been proven in the field. We can illustrate major projects where products have been used in the past, but in addition we can unite this with brand new cutting edge technology as well.” Another area that is linked to Technip Umbilical Systems’ stellar reputation is customer relationships, as when the right kind of trust is established it creates a valuable way of working for both parties: “Customer relations are very important to us,” confirmed Sarah. “We have a history of long-term relationships with bluechip clients such as Total, Chevron, Shell and BP. Through these relationships, clients become used to working with us and we can learn a lot about what they need and how they work, which is then fed back into our own product research and development (R&D).” R&D is hugely important to Technip Umbilical Systems and as Sarah noted, staying at the very top of the market in this area has been one of the driving forces behind a brand new R&D facility in Newcastle, in the UK. “It is important to always be looking ahead and be developing solutions for the clients of the future,” she said.

Technip Umbilical Systems

“This is partly why we developed the R&D facility in Newcastle, so that we could dedicate that expertise in one area. It allows us to let clients know we are looking at the latest materials and are working on solutions that will improve areas such as ease of installation and reliability. “We are also looking at developing our own solutions to common problems, so for example we are bringing our own stab plate to market this year.” A multiple quick connect (MQC) stab plate is fitted to the ends of flying lead and jumper umbilicals, enabling hydraulic and electrical connection between subsea control equipment such as umbilical termination assemblies, distribution units and wellhead Xmas trees. The plate is designed in two mating halves, an outboard plate on the flying lead, and an inboard plate on the subsea hardware. “Traditionally these units deteriorate after they’ve been mounted and de-mounted a few times, but the new Technip Umbilical Systems /DUCO product is going to offer a lot more reliability and quality, so that the product can be used many more times by the operator,” added Sarah. In addition to the R&D facility that is already up and running in Newcastle, Technip Umbilical Systems is also currently building a world-class

steel tube umbilical plant at the site, which will be on stream later in 2013. “This is going to include a state-of-the-art vertical helix machine and large carousels, and will be the industry’s most modern umbilical manufacturing facility,” said Sarah. “It is able to supply today’s products but is also being designed to be future proof with respect to its capacity, as we can see from the market that clients will be needing longer length, bigger tubes, for the deeper waters that are being explored. We have been awarded four large steel tube projects, which will go through that facility, so we already have a good backlog of work at that plant.” Sarah explained that Newcastle was the ideal site for Technip Umbilical Systems to create this world-leading addition to its facility, as it has 30 years experience of supplying umbilicals. She added: “Here at Newcastle, we employ 600 high calibre, experienced people, and already have a substantial track record in steel tube umbilicals. Another reason for adding this capacity in Newcastle is that we are ideally located next to a deep water berth so it provides easy access to all of the European fields, the southern North Sea fields and all of the Norwegian fields, as well as offering very good shipping to the rest of the world.”

Of course we focus on quality, reliability, and innovation, but our clients do want to know that products have been proven in the field. We can illustrate major projects where products have been used in the past, but in addition we can unite this with brand new cutting edge technology as well

European oil & gas

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PROFILE

Technip Umbilical Systems

General Cable

We have got the capability to supply total subsea systems, which goes from topside pipe work right down to the stab plates on the well

European oil & gas

europeanoilandgas.co.uk

General Cable offers oil and gas (OGP) cabling solutions relying on 57 modern production facilities and 14,000 associates worldwide, addressing the three market segments onshore, offshore topside and subsea*. Exceeding 20 years of experience in subsea cables and junctions supply to major EPCs, General Cable has delivered thousands of kilometres of highly specialised products (low, medium & high voltage, from high to arctic operating temperatures) to demanding oil and gas companies worldwide. Investments in extra long lengths provide General Cable’s partners with a competitive edge, as do current developments by addressing market trends (ultra-deep, gas blocking, higher voltage). *subsea = Subsea Power Distribution and SURF (Subsea Umbilicals Risers & Flowlines)

She added: “Another of the company’s strengths is that we have facilities located in four areas of the world – the UK, US, Angola and Malaysia. There is a lot of flexibility between the plants, so they can help one another meet clients’ needs anywhere in the world. This multi-site manufacturing means we always have the flexibility to suit the client’s delivery or completion date needs.” It is clear that manufacturing innovative products is one of the foundations of Technip Umbilical Systems, but Sarah also emphasised that this is just one string to its bow – the company’s strong project management and engineering expertise means it can offer an

end-to-end solution to its clients. “We have got the capability to supply total subsea systems, which goes from topside pipe work right down to the stab plates on the well. We also provide offshore support services and have very experienced technicians who follow the installation.” She continued: “We are very much a global organisation and are working with all the major operators including Total, Chevron, Shell, Exxon and BP. But we also support smaller operators, and this is where our strong management and engineering expertise really helps.” Technip Umbilical Systems also works with the other subsidiaries of Technip, which further

strengthens its knowledge resource and the availability of expertise and advice for its clients. It also means Technip Umbilical Systems benefits from Technip’s investment budgets, and over the past 18 months the company has been the recipient of some significant spending. Said Sarah: “As a Group, Technip invested around 519 million euros in 2012 on the company as a whole and on the umbilical side we have had good support. In our plant in Angola we have substantially upgraded machinery and installed two very large carousels, which allows the plant to supply long length umbilicals. It also means we have the ability to support from in-country all of the Angolan market’s needs - the subsea oil and gas market in Angola and West Africa is experiencing strong growth. “In Houston we have also invested in substantial equipment and site improvements and upgrades as well. The US focuses primarily on the Gulf of Mexico and also the Asia Pacific market has been supported from that plant. Our Malaysian facility has also seen some investment as well.” Given the state-of-the-art facilities that Technip Umbilical Systems is operating, it is not a surprise to hear the company is involved in many of the most significant oil and gas projects currently underway. “We are working

on the Hibernia project for Exxon, which is being delivered to Canada. We have used our innovative Kevlar armour package and the new technology allows clients to install this workover umbilical from a small construction vessel over the side, where traditionally it had to be done from a drill rig.” This project is a perfect example of how Technip Umbilical Systems can work between it’s sites, as the workover umbilical is being manufactured in Newcastle, and it is also producing a large steel tube umbilical in Houston for the same project. “In Angola we are working on the Clov project,” Sarah added. “This is for 76 kilometers of umbilicals, supplied in 29 lengths, for a water depth of 1400 metres. And in Newcastle, we are working on the Wheatstone project for Chevron, where the actual field is located in northwest Australia. These umbilicals will be manufactured at Newcastle in the new facility.” It is clearly an exciting time for Technip Umbilical Systems, with so many significant contracts underway and more in the pipeline. “We see a lot of very good opportunities going forward,” confirmed Sarah. “We are ideally placed with all of our assets around the globe to support clients as they go into deeper waters and more challenging environments, and that is a big focus for us. There is definitely a very positive outlook in the umbilical business and the investments we have made have all been calculated to ensure that we are very much a part of that market. “Our vision is to maintain our growth and continue to deliver the high-end thermoplastic umbilicals that we are renowned for, as well as successfully delivering the very large steel tube projects that we are working on at the new facility in Newcastle, in Angola and Houston. “Technology is one of our strategy pillars and is a key differentiator, as is the quality of our products. We have already established a track record for the longest, deepest, and heaviest umbilicals and as these boundaries push further, we aim to keep our position at the front of the market, and uphold the recognition we have earned for providing revolutionary technology.” She concluded: “What is important to us is that we are recognised as a total solutions provider that can supply the whole end-toend system to the client, and offer them total support. We are so much more than just a manufacturer and can really provide solutions that help our clients be more successful.”

We have already established a track record for the longest, deepest, and heaviest umbilicals and as these boundaries push further, we aim to keep our position at the front of the market, and uphold the recognition we have earned for providing revolutionary technology

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Technip Umbilical Systems

European oil & gas

PROFILE

Technip Umbilical Systems technip.com/ en/entities/tus

Products Umbilical systems, subsea products and offshore services

OffshoreTech, LLC

Offshore Tech LLC (OTL) is very proud to be a contributor to TMH on the Malikai TLP project. OTL’s engineering team has a deep connection with this project which began several years ago while the project was in the Pre-FEED stage. At this point, many of OTL’s team members participated in the Pre-FEED design of the TLP. OTL was then invited by TMH to work on the bid engineering leading to the successful award of the TLP EPC contract to TMJV. OTL is glad to take part in the solid team built by Technip for the detail design of the Malikai TLP hull and mooring engineering.

European oil & gas

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Our multi-disciplinary team has a long association with Technip. Besides the Malikai TLP project, OTL plays a crucial role for several high-profile deepwater projects that Technip and TMH are currently developing. A recent example is our participation to perform critical analysis and design of the pre-service engineering for what could be the largest Spar in the world.

OTL's engineering team has an extensive track record of successfully executed projects. Just to mention a few of the projects where our engineers played a key role, we can highlight our participation in the detail design of the hull structure and hull pre-services for the world’s first buoyant tower to be installed offshore Peru by ‘forklift floatover method’. Another project worth mentioning is our accomplishment in the engineering analysis and design of the largest Jacket in Asia. OTL is thrilled and proud to continue developing its relationship with TMH and Technip. Our best wishes go to the Malikai TLP project, to become one of the many Technip’s ground breaking successful endeavors.

First choice

partner

Technip MHB

Hull Engineering (TMH) is a joint venture between Technip and Malaysia Marine and Heavy Engineering Holdings Bhd (MHB). The company was established to create a first choice partner for hull design and engineering on floating production facilities that is based in South East Asia. For its global customers, TMH provides worldclass and customer-focused services, delivering robust, safe and fit-for-purpose fabricationfriendly solutions. Based in Kuala Lumpur, TMH operates with a highly skilled team of Malaysian and international professionals. Maarten Spilker, TMH’s MD, explains the benefits that being a joint venture between Technip and Malaysia Marine & Heavy Engineering (MHB) brings to TMH: “The key to successful execution of large oil and gas projects is to understand the complete chain and manage the interfaces. Combining specialised hull and mooring engineering knowledge with Technip’s technical and execution strength, while bringing in the fabrication experience from MHB is our winning formula.” He added: “Of course, we also benefit from having a close working relationship with our parent companies, and we have created some good, personal relationships at a working level.” Maarten goes onto give a few more details of the company’s main activities: “We provide engineering services for floating offshore

structures, with a focus on large production facilities (FPSO, SEMI, TLP, and spars). Our scope of services includes all engineering and design for the hull structure and marine systems, design of the mooring system and integration of the topsides facilities. This is of course complimentary to the fabrication and topsides design services our parent companies provide.” TMH also benefits from the decades of experience that its team can already draw upon thanks to the history of its owners. This background of innovation has created a portfolio of demonstrated technologies that provide overlapping solutions to clients’ development challenges. Indeed, Technip is bringing its experience in delivering some of the largest FPSO units in the world to TMH. Its systems are appropriate for developing large deposits in deep or ultra-deep water, or to start early production for operators’ needs. They are also well adapted to regions where few subsea export infrastructures exist. Via Technip’s expertise, TMH is also able to work on semi-submersible platforms. These are suitable for mid and deepwater production and drilling operations with a large topside capability up to ca 40,000 tonnes. Good motions permit the use of steel catenary risers (SCRs) in deep water. Technip is developing its own semisubmersible hull design – to be available globally through its integrated platform for analysis and

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Technip MHB Hull Engineering

European oil & gas

PROFILE

European oil & gas

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PROFILE

Technip MHB Hull Engineering

design software module. This semi-sub hull design is being developed for both wet and dry tree applications. In water depths up to 1500 meters, the tension leg platform (TLP) offers a cost-effective platform for supporting dry trees. Technip has worked with experienced TLP designers to develop its own conventional TLP design. As a result market-ready designs are available for South East Asia that can utilise tender assisted drilling (TAD). These designs, and others incorporating full drilling, can be readily adapted to other regions. As part of the TMH JV, Technip will also bring its experience in spar delivery. Technip has delivered 14 spar platforms to date that have been deployed in a water depth range of 590 – 2382 meters using both dry and wet tree completions. Maarten emphasised that this combination of skills and competences is what is going to set TMH apart from the rest of the competition: “There are very few engineering houses in the region that have all of our hull and mooring engineering capabilities. Historically, FPSOs have been the floating production solution of choice in the Asia Pacific region, but looking forward we will see other solutions coming into the regional market and we have made a commitment to establish the first true all-round hull design company.” In order to achieve this vision TMH has put a lot of effort into streamlining its work processes. “This shortens the time from conceptual sketch to steel cutting machine dramatically while minimising the risk of introducing errors on the way,” said Maarten. TMH has already worked on several significant contracts, with one of the most recent

undertakings being a large contract from Shell on the Malikai TLP project, which was awarded to TMH in late 2012. Maarten explained: “The Malikai is the first TLP designed in Asia. Our team of Malaysian and international deepwater experts worked through the conceptual and FEED stages to develop a robust and fit-forpurpose design. Understanding the client’s key drivers and translating those into a technical solution proved to be the deciding factors with the contract win.” He also highlighted another project that is underway at TMH: “At present we are executing the conversion and mooring engineering for the Bukit Tua FPSO for M3nergy. This involves the conversion of an Aframax tanker into an FPSO that will be spread-moored offshore Indonesia,” he said. The successful execution of these projects is at the top of TMH’s agenda for 2013, and long-term its vision is to become established as a preferred partner in the Asia Pacific region. “We are setting ourselves up to become a trusted regional deepwater expert,” confirmed Maarten. “There are very few naval architects and marine engineers with offshore experience in South East Asia. This is a challenge, but also presents an opportunity. Whichever company manages to attract the best local talent and is willing to invest in its development in all possible ways will come out on top. Backed by Technip and MHB we are in a great position to do just that.” He concluded with an admirable ambition for the future: “Many of the regional operators have relied heavily on expertise from outside the region to execute their hull design work. My vision is that highly competent engineers will perform this work regionally.”

Many of the regional operators have relied heavily on expertise from outside the region to execute their hull design work. My vision is that highly competent engineers will perform this work regionally

Technip MHB Hull Engineering Sdn Bhd tmhoffshore.com

Services Hull design and engineering on large production facilities

PROFILE

Saint-Gobain Performance Plastics – Seals Group

approach Established in

with its clients to deliver custom-designed polymer and sealing solutions. “We are a madeto-order company so we work with customers on their projects for sealing solutions and these

European oil & gas

Garden Grove (California) in the fifties and in Belgium as of 1983 as part of the Saint-Gobain Group, SaintGobain Seals Group has approximately 700

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Innovative

Through conducting its own R&D on its materials in-house, the company has created high performance seals that range from three to 3000 mm

employees worldwide and a global presence, with 14 manufacturing sites in Europe, the US and China and more recent sites opened in Poland, Brazil, Mexico and China. SaintGobain Seals Group is market leader in the design and manufacture of innovating seals and polymer components for various industries. However, one of its core markets is the oil and gas industry, as Christophe Valdenaire, oil and gas market manager for Saint-Gobain Seals Group, elaborates: “We focus on the oil and gas sector, supplying our flagship product line OmniSeal® polymer spring-energised seals for engineered topside and subsea valves, FPSO turret swivels, liquid transfer equipment, pumps, compressors, just to name a few.” As a global leader in the energy sector, SaintGobain Seals Group is dedicated to working

relationships are based on our engineering skills, materials expertise and the client’s specific demands,” says Filip Staelens, operations manager of Saint-Gobain Seals Group Europe. The Omniseal polymer spring-energised seals can operate in harsh environments, reduce friction and downtime and extend the service life of equipment. OmniSeal is a popular choice for those in the oil and gas industry due to its extreme reliability and durability under extreme temperatures and high sour gas (H2S) concentrations. More than a seals manufacturer, the company is a materials expert, combining over 50 years’ experience in materials and component technology to provide superior engineered polymer and thermoplastics solutions for a number of applications under its wholly owned brands Rulon® and Meldin®.

50 European oil & gas

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PROFILE

Saint-Gobain Performance Plastics – Seals Group

Dyneon

aggressive environment testing on our materials and seals. We are also working within a global innovation programme to improve the level of sales for our new products that have been developed over the past three years; currently our sales statistics for new products is at 45 per cent.” Innovation is a key focus for the company and it is aiming to find solutions to cope with high pressure applications; it is also aiming to develop sealing solutions that can be used at 20,000 psi in deepwater, with greater pressures and higher temperatures to coincide with oil and gas exploration and production into deeper water reservoirs. This requires collaboration across the industry and Saint-Gobain feels positive about the challenge. “New solutions are needed to unlock deepwater oil and gas resources from high pressure areas at 20,000 psi as the current technology only has a technical limit of 15,000 psi,” highlights Christophe. Over the coming years it will be focusing on expanding into new areas, such as India, Russia and the Middle East, while developing recently opened plants in China and Brazil. “Our vision is to expand our global presence in the oil and gas market, which is forecast to keep growing for the next ten to 20 years. The boom is great for our customers, but at the same time finding and winning oil is becoming more complex as new technologies are needed for use at 20,000 psi. We are in a strong market position as there are limited companies that can offer the solutions we can, so these challenges are an opportunity for us,” Filip concludes.

Saint-Gobain Performance Plastics – Seals Group seals.saint-gobain.com

Services Innovative sealing and polymer solutions

European oil & gas

Through conducting its own R&D on its materials in-house, the company has created high performance seals that range from three to 3000 mm and work in control elements offshore, onshore and even for subsea. The seals can be made out of NORSOK M710 certified materials and are suitable to meet the strict requirements of Low Fugitive Emission industry standards, such as ISO 15848-1 and SHELL MESC SPE77-300. Able to work under the harshest environments, from high pressure, high temperature, to cryogenic, Saint-Gobain’s superior OmniSeal products are well suited for the oil and gas industry. “Our solutions can be used from cryogenic at minus 196 degrees Celsius for liquefied gas applications to 315 degrees Celsius in high temperature environments and we work within that range for the oil, gas and energy industries,” says Christophe. As an integral part of the global giant SaintGobain, the Performance Plastics division contributes approximately 2.5 per cent of the 40 billion euros revenue that the group makes overall, equaling a turnover of around one billion euros. Following 300 years of excellence it was recognised as one of the 100 most innovative companies in the world for the second consecutive year in 2012, as Filip explains: “We were nominated for the award as a complete company and there are a number of reasons for that. A significant amount of money is spent on our R&D facilities and we put a considerable amount of effort into high pressure, high temperature,

Dyneon, a 3M company, is focusing on development, production and sales of fluoroelastomers, fluorothermoplastics, Polytetrafluoroethylene (PTFE) and PTFE compounds, with operations in more than 50 countries through the sales organisation of its parent company 3M. Each of the product groups consists of a broad product portfolio to meet customers’ needs. Indicative of Dyneon’s commitment, all development, production and service facilities have achieved global quality management certification. The company assists equipment designers and manufacturers in pinpointing solutions for a broad variety of sealing and containment applications within the oil and gas industry. The Dyneon Application and Product Development team is capable of supporting equipment manufacturers in selecting and testing the optimum fluoropolymer grade to meet specific application requirements. Working in close partnership with seal and gasket manufacturers, converters and users, the company develops a steady flow of new fluoropolymer materials that enable tailored protection of parts, equipments and facilities.

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3M™ Dyneon™ Fluoropolymers are supporting breakthrough innovations for the increasing challenges in the oil and gas industry

52 European oil & gas

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PROFILE

Applus RTD

test

RSL NDT Limited At our three locations throughout the UK (Aberdeen – head office, Hamilton – Kenged NDT, Sheffield – RSL Sheffield) we stock equipment and consumables ready for same/next day delivery, which means we can respond very quickly to any enquiry throughout the UK. Our GE Inspection Technologies, Labino and Spectroline Approved Service Centre offers repair and calibration services on most types of NDT Equipment. Calibrations are done in accordance with the relevant British and International Standards. All work is carried out in accordance with our BS EN ISO 9001:2008 accreditation

in the global pipeline sector. Through subsequent decades RTD continued to expand, both from establishing divisions in countries including Germany, Belgium, Canada, the Czech Republic and Slovakia, and by acquisitions. In 2006 the company became part of the Applus+ Group, a global leader in inspection, testing, certification and technology. Today Applus RTD has become a leader in the industry, developing and honing an unrivalled bank of knowledge of the processes involved in the energy and power industries and capable of delivering its services worldwide. A key reason for Applus RTD maintaining its leading position is its dedication to technology and innovation. The business has been at the forefront of R&D in its field since its establishment and today carries out this work at its Technological Centre in Rotterdam. This location has witnessed the development of many widely used and highly regarded technologies that are in operation every day around the world. In Rotterdam Applus RTD’s R&D team is divided into three departments – Physics, Hardware/Electronics and Software – each responsible for optimising existing technologies and techniques and creating new, highly efficient and reliable technologies that meet and exceed the challenges found in the oil and gas industry. This work is carried out collaboratively, as Applus RTD works both with clients on specific developments and takes part in wider joint industrial projects and collaborations with universities and international research institutions. In terms of the oil and gas industry Applus RTD works with clients in both the downstream and upstream sectors. In the former, the business acts as a leading service provider that predominantly delivers inspection, testing, certification and technology focused on the

European oil & gas

Applus RTD

is a leading global energy service provider dedicated to delivering the highest possible levels of quality by meeting customer needs and exceeding their expectations. The business, which is part of the Applus+ Group, focuses on delivering technical excellence and assurance through non-destructive testing, inspection and certification to capital intensive, high-risk energy, utility and infrastructure industries in every region of the world. The company has industry-leading experience and expertise in project management for pipelines, offshore and onshore production facilities, refinery and storage facilities in the oil and gas, traditional and renewable energy sectors and national utility and infrastructure markets. At the core of this exceptionally high level of service and ability lies Applus RTD’s people and its technologies, the combination of which allows it to successfully serve clients across North and South America, including Canada, the US and Brazil, as well as in Europe, South East Asia and Australia. Applus RTD can trace its roots to 1937, when marine welding engineer Lambertus van Ourwerkerk, who believed that NDT would play a crucial role in the use of welding techniques as a replacement for traditional riveting in steel construction, founded his NDT firm, RTD. The business continued to grow, illustrating the benefits of NDT techniques in a number of sectors before taking its first steps into the oil and gas industry when gas production began in the Netherlands. It was at this early stage that the benefits of NDT became hugely important for the energy industry as RTD carried out detailed inspection of welds and other infrastructural elements in the growing gas pipeline network. In fact, from this early success Applus RTD has maintained its premier position

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Passing the

54 European oil & gas

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Alongside NDT services Applus RTD is widely recognised for its testing capabilities, including in-service inspection and certification, new construction inspection and consultancy, radiation protection services and rope access. The correct inspection and certifications are essential aspects of operating and maintaining an asset or worksite effectively, and to ensuring that the assets and all equipment complies with the various national and international standards. Of course, Applus RTD’s services would be nothing without its highly skilled and experienced workforce. Indeed, the company believes that its people are the very heart of the business and accordingly it places considerable emphasis on training and investing in its employees. The company delivers a broad range of training programmes at in-house centres around the world and also provides tailored courses that have been developed to ensure compliance with even the most stringent international standards. These cover a number of key competencies including hardness measurement, IRATA rope access, ionizing radiation, NDT technics, materials science, radiographic testing, and ultrasonic testing. Operating as an established leader in the industry, it is little surprise that Applus RTD regularly works with many of the major oil and gas companies. Most recently the business has signed a four year global Enterprise Framework Agreement (EFA) with Shell, a contract that represents a significant milestone in a long-term relationship between the two companies. The EFA identifies Applus RTD as a provider of services related to vendor and quality assurance/ quality control inspections, as well as NDT testing and related services to Shell and will cover many of Shell’s direct operations as well as its affiliates worldwide, both for capital projects and existing operating assets. This is just one contract win of many that continues to cement Applus RTD’s reputation across a range of industry sectors worldwide. For over 70 years the business has been at the forefront in a number of fields, developing solutions and services to meet the most demanding industry requirements and pioneering innovative products. The company is currently in a positive growth period and hopes to raise its profile even higher in the sector, a target that seems all to achievable bearing in mind its track record to date.

For over 70 years the business has been at the forefront in a number of fields, developing solutions and services to meet the most demanding industry requirements and pioneering innovative products

LeasePlan Go LeasePlan Go, part of the world’s largest leasing company LeasePlan, provides international vehicle leasing support and expertise to Applus RTD. LeasePlan operates in over 30 countries offering a variety of leasing services from vehicle funding, fleet management, daily rental and a whole host of additional products and services, making it easier to LeasePlan!

Applus RTD applusrtd.com

Services Global energy service provider

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integrity and technical assurance of major assets such as refineries, petrochemical plants and chemical plants. This covers existing and new build facilities in the US, the Gulf of Mexico, Canada, Brazil, the UK and continental Europe, South East Asia and Australia. For clients in the upstream sector the business provides a similar level of service – covering inspection, testing, certification and technology for major exploration, drilling, production and transmission assets such as onshore facilities and pipelines, offshore FPSOs and drilling platforms and storage facilities. While its range of services covers all of the key requirements of clients, Applus RTD is perhaps best known for its world-leading NDT services and solutions. The company is the global number one in this field and has been responsible for pioneering the use of a number of innovative and highly advanced solutions and non-destructive investigation methods including magnetic flux leakage, radiographic and ultrasonic. Customers choose Applus RTD’s services as they are industry proven to deliver technical assurance, reduce risk and non-productive time and allow a complete picture of the asset’s condition to be built, which in turn enables efficient and safe operations in any environment. The range of NDT services provided by Applus RTD encompasses: 66 Eddy Current 66 Laser Profilometry 66 Leak Testing 66 Magnetic Particle Inspection (MPI) 66 Magnetic Flux Leakage 66 Material testing 66 Penetrant testing 66 Pressure testing 66 Positive Material Identification (PMI) 66 Thermal testing 66 Radiography testing 66 Ultrasonic testing 66 Visual testing

Applus RTD

European oil & gas

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European oil & gas

package A complete

Established in 1935

, Granzow A/S is one of Denmark’s leading specialists in compressors, pneumatics and automation. Focusing on the pharmaceutical and oil and gas markets, the company supplies high quality industrial products, such as screw compressors, compressed air treatment, energyfriendly controls and container solutions, in areas where security and safety are priority. Consistently offering state-of-the-art solutions to customers, it recently developed its newest product, the instrument air compressor (screw compressor) and dryer package (heatless dryer) for offshore industry. “We are currently building platforms for the offshore industry and from last year through to the present we have been doing the same for FPSOs, which supply to other ships and sometimes need a lot of air from large compressors; nitrogen generators are used to fill up the tanks for the oil but there must be a gas with no oxygen in. The nitrogen generators use a lot of compressed air to the ISO 8757 3-1 quality standard so the instrument air compressor and dryer package is equipped to compress air up to 300 kW at minus 40

degrees Celsius. The control of these systems can be complicated because demand for air in the nitrogen generators varies from 100 per cent load to ten per cent load, which means the machines must be controlled in the correct way to prevent unnecessary consumption,” says Torben Mortensen, consultant compressors and export project manager. There are already orders for the utilisation of the instrument air compressor and dryer package for projects in Vietnam and Singapore; the company also has a strong interest in India. Offering Denmark’s most complete line of compressors SO, with 13 models and 31 variants, Granzow A/S can find a solution to the most complex of requests. The oil free screw compressor SO series, designed to produce oilfree compressed air at a level not seen before, came on to the market recently. Operating at much higher speeds than its oil-injected counterparts, the BOGE oil-free screws special airend and cooling concept provide the highest levels of safety and maximum efficiency, making the product ideally suited for sensitive areas. With more than 75 years in the business Granzow A/S has developed a strong reputation

PROFILE

Granzow A/S granzow.dk

Services Equipment for compressed air, vacuum pumps and automation products

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Offering Denmark’s most complete line of compressors SO, with 13 models and 31 variants, Granzow A/S can find a solution to the most complex of requests

European oil & gas

and scored highly in a 2012 customer satisfaction survey; 99 per cent of customers said they are satisfied with the service they received and 73 per cent said they are very satisfied. The company’s flexibility to requests around the globe, its 24/7 dedicated service and its department for documentation give it a competitive edge. “The building of the compressors is one integral part of our role, the other is to fulfil the demand for documentation,” states Torben. “This is complicated because each consulting expert has their own way of describing quality electrical demands and we have to read all of them; on top of that, we must comply to third parties such as ATEX, DNV and Lloyds and ensure the equipment we produce will fulfil all requirements. The documentation can be up to 400-500 words that need to be understood so this service is an integral part of our company; it is costly and time consuming, but without it we cannot meet demands in the oil and gas industry.” Costs for documentation can be up to £20,000, emphasising the importance of adhering to the stringent regulations of the oil and gas industry and requests of the customer. Prior to production Granzow A/S creates an unconditional release note as equipment cannot be amended once production begins, the company also has a meeting to confirm all parties are satisfied with the equipment. “By the time we are running the machinery and having our equipment validated by the Factory Acceptance Test there should be only minor issues, such as wires that need to be rebuilt, to deal with. It is too expensive by that point to change the main equipment, which is why it is so important that everyone reaches an agreement,” says Torben. A recent project for the company was with Ecco Sko A/S in Bredebro, Denmark, which involved replacing an outdated 40kW compressor solution with more energy efficient

equipment. Granzow A/S upgraded the used technology with a 18.5 kW Boge compressor type SF 24-2 and a Boge capacity controlled absorption, type DA29 with dew point, which will save Ecco Sko A/S 67,000 kW annually. “We have seen a change in the past 12 months concerning energy efficiency in the pharmaceutical and oil and gas industries. Saving kW consumption will be a continued focus from now on,” says Torben. Granzow also designed, created and developed several custom built solutions for pumping stations to Danish power plant specialist Burmeister & Wain Scandinavian Contractor A/S (BWSC). Looking to the future, Granzow A/S has strategic plans to be among the leading suppliers in the compressor, vacuum/ pump and automation market and to further develop its reputation for high quality, competent and cost-effective solutions. It also aims to continue providing customers with a reliable option that will contribute to the profitable growth of their company.

Granzow

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European oil & gas

Improving by

Seaonics is a Norwegian company that specialises in the field of innovative handling equipment and associated solutions for customers in the marine and offshore industry. The business, which is a joint venture between ICD Industries and VARD, has considerable industry and field experience and places innovation at the core of its business, operating according to its motto of ‘Improving by simplifying’. “Our slogan of ‘Improving by Simplifying’ represents our way of working and is behind everything that we do. Our core focus lies in developing and improving handling systems and the products that we offer in a simple and effective way, because many of the existing solutions on the market are extremely complex operationally,” says Jan Kjaerstad, sales manager at Seaonics. “Our people, who have considerable competence and large amounts of experience in these fields, are one of our biggest strengths in this sense and are a key factor in our overall success,” he continues. “We are able to look at handling

systems and operations through a fresh pair of eyes, deciding how we can not only improve the product or solution but also make the operation simpler or more efficient for the client. “We have the knowledge to develop the right product and our clients have the knowledge to use it operationally, and by working together we can develop the right solution. In our development process this close interaction is really important to us, as only our clients can give us the feedback of what they want and it is our challenge to meet those requirements. It is a two way process, we can’t do it alone.” The idea of developing superior products through simplifying the design runs through all of Seaonics’ work, which can loosely be divided into a number of categories. The company currently offers solutions for clients involved in reservoir exploration, subsea construction, offshore supply and ocean trawling and this includes products such as launch and recovery systems (LARS), offshore cranes, module handling towers, and trawler winch packages. “It is typical of our design approach, and there are examples in all of our solutions,” says Jan. “Take our winches, for example, where we have introduced permanent magnetic motors on the LARS system, which takes away much of the

Seaonics AS seaonics.com

Services Handling equipment for marine and offshore

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complicated gearbox mechanism by reducing the gear ratio, using less rotating parts and in turn reducing the risk of failure. The LARS, which is used for subsea construction as well as other applications, has been a real success for us coming into the market.” Seaonics’ LARS systems are offered as either moonpool or overside systems and feature an A-Frame with extensive range both inwards and outwards, high performance and electric or hydraulic drive. As Jan explains, they also feature other Seaonics innovations: “We developed the A-Frame so that it has great reach, both outwards and inwards, and we have also designed a sectioned hangar port that offers significant improvements operationally for the crew and the working environment.” Other examples of Seaonics’ approach to design include a new boomerang crane design (patent pending), the main advantage of which is that the wire goes directly from the winch to the tip of the crane, eradicating the need for guide sheaves over the boom or knuckle and thus reducing wear and maintenance requirements. “We have also developed a hybrid drive solution for this crane that has both electric and hydraulic drive on the same winch/gearbox,” Jan highlights. “This means that there are two independent systems driving the winch, which in addition to reduced power consumption, gives a much higher level of redundancy operationally. The crane is currently being tested and performing very well, with the first delivery due to take place very soon.” Moving forwards the business is concentrating on the module handling and well intervention market. In this field it operates together with Castor Drilling and ICD to develop a module handling system/tower with high capacity, which is one complete plug and play type unit, is flexible in terms of module size and has an entrance for cranes through its top. This is an area that will become of increasing priority as the company moves forward in the market. Alongside oil and gas applications, Seaonics is

different from many of its competitors in that it provides solutions for trawler vessels. However, as Jan highlights, this application in fact provides a number of benefits. “The reason we stay involved in this area is that modern trawler winches operate 24/7, 365 days per year in extremely rough weather and harsh conditions. It acts like a proving ground for our products because if our winches can survive this kind of treatment then they are more than capable of operating in the oil and gas industry, so it is a mark of our overall quality.” Quality and simplicity remain the cornerstones of Seaonics’ success, and with the market offering opportunities for further growth Jan rightly remains positive. “More and more oil exploration is going subsea, and that means that there will be an increase in demand for vessels that operate the machinery we provide, like LARS, big AHC cranes and the module handling well intervention towers. Therefore, we see real potential for growth in this area and are dedicated to becoming a major player within the industry in the coming years,” he concludes.

Seaonics AS

European oil & gas

PROFILE

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European oil & gas

Cool

exterior Arctic Base Supply

was established in 2010 in response to the growing oil and gas market in the Arctic/Greenland region. The formation of the business represented a powerful alliance between Danbor Service Group and Royal Arctic Line. The combination of these two successful businesses enabled Arctic Base Supply to quickly achieve growth by leveraging a number of key strengths. For example, Danbor Service Group’s employees are well versed in dealing with sensitive or complex handling operations in the most challenging environments, while Royal Arctic Line has extensive knowledge and expertise in navigating and operating in Arctic waters and a strong network of facilities in the region. At the time of its formation the oil and gas industry in Greenland was growing as a number of major players made advances in exploration drilling wells and acquired licenses. However, when European Oil and Gas Magazine last featured the business, in early 2012, the sector had seen a downscaling in drilling and exploration work. “The pace of oil excavation in Greenland did

indeed slow down in 2012 and it looks like the current pace will continue throughout 2013 as well,” says Jens Panum Have, who was appointed as managing director of Arctic Base Supply at the beginning of this year. “This has given Arctic Base Supply the time to consolidate our agreements with partners and subcontractors with a specific focus on safety and security, procedures and formal training of staff and workers. Due to the big seasonal variations in the sector and the fact that the oil industry is essentially still in the excavation phase, Arctic Base Supply has to rely on its business with partners and subcontractors that, for the most part, do not have any experience in the oil and gas industry. “This means that they do not have any experience with the safety and security requirements and what is necessary to be able to document every work procedure and process as is required by the oil and gas industry,” he continues. “We understand that to be 100 per cent successful as a Greenlandic company that can meet the international oil and gas industry’s demands, all of our partners and subcontractors have to be trained and guided in meeting these requirements, which is what we have been focusing on. In that sense, Arctic Base Supply can claim with pride to be a 100 per cent Greenlandic company that supports oil excavation in Greenland, and that it will be able to meet all of the demands and needs in terms of future production.” Essentially, as the Greenlandic market has slowed Arctic Base Supply has been working hard to strengthen its business in order to ensure that it can meet the future work that is predicted in the area. Considering this, Jens highlights some of the recent developments at the business. “One area that we have been looking at is the harbour facilities that are present in the area, which are dimensioned to handle daily import and export cargo and to supply the remote villages of the region with supplies like food and petrol. “The harbours in Greenland are vital to the survival of the country’s 57,000 inhabitants,

While some of the focus will remain on continuing to develop this infrastructure, looking more generally at the future Jens predicts further consolidation of Arctic Base Supply’s business. “Over the next three to five years I don’t predict the oil and gas industry moving from excavation to production, meaning that companies will continue to primarily operate during the short summer period. That means that we will consolidate with our partners and subcontractors to ensure that when it comes to oil and gas logistics and base supply, and when the companies need these services, we can be the strongest partner in Greenland. “I feel very fortunate to be appointed as CEO for Arctic Base Supply, and to be given the possibility to experience the magnificent nature and the challenges associated with operating in the Arctic. In the coming years I aim to keep Arctic Base Supply in its leading position within the oil and gas industry while looking to expand and exploit our knowledge in other industries such as mining,” he concludes.

LNS Greenland A/S LNS Greenland A/S was established in South Greenland in 1990 under the name R.C. Entreprenørservice A/S and was one of the first Greenlandic companies that provided services to the oil-, gas-, and minerals industry in Greenland. Today the company is a part of the Norwegian LNS Group and provides services within marine operations, diving, transportation, contracting, construction, tunnelling, camp solutions, catering, logistics and various other tasks tailored to Greenlandic industry practices.

Arctic Base Supply arcticbasesupply.gl

Services Logistics and support

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particularly as cities and villages are not connected with roads but only via the sea or air,” he says. “Bearing that in mind the harbour facilities left to the oil and gas industry are actually quite limited. For this reason we have come up with a proposal for a new 65,000 m2 supply base to be established somewhere on the Greenlandic west coast. The importance here is not necessarily the location, but if the site can facilitate the industry when it comes to supplying the water, electricity, ice free environment, food accommodation and air access. “Arctic Base Supply is not large enough on its own to develop this facility so we are actively looking for partners on the project because when the time comes for multiple oil and gas companies to operate in the area the existing base facilities will definitely be in short supply. The big question for us, and one that we are trying to solve, is who will finance the development of the facility. Once we have this established the running of it is not a problem – Arctic Base Supply is more than ready.”

Arctic Base Supply

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Expert

Flex coil a/s

was founded in 1992 by a team of four colleagues who for several years had been specialising in all types of heat exchangers for cooling, heating and ventilation. Today Flex coil supplies coils in all sizes and virtually all material combinations in accordance with the needs, wishes and requirements of customers. In addition, its experts are always on-hand to provide advice and guidance on topics such as relevant materials, sound specifications, assembly, and operating and

maintenance instructions for products. The products available from Flex coil include dry coolers/condensers, coils, condenser/ evaporator coils, electric heaters, standard stocked coils and special products (CO2 coolers,

titanium heat exchangers, unit coolers, stainless steel heat exchangers and FSA steam coils). The titanium coils available from the company are ideal for the offshore market, and in fact, Flex coil has delivered fan coils for the offshore industry for the past 15 years. The products delivered are condensers, evaporators, heating and cooling coils fitted with fans. The choice of materials for offshore installations is vital for the equipmentâ&#x20AC;&#x2122;s longevity, and Flex coil is one of the leading suppliers of titanium heat exchangers for harsh environments that demand extra durable products. According to Flex coil, the maritime environment is one of the reasons for short lifetime when inappropriate materials are used. When it comes to fins, when corrosion begins, the fins exhibit reduced heat transfer and thus a lower efficiency of the coil. Tests conducted in a salt spray chamber confirmed that a pretinned copper fin gives superior resistance to corrosion. Moving onto the coil tubes, in addition to being resistant to maritime atmospheres, they must also be resistant to the medium inside the tubes. For condensers, evaporators and heating coils it is sufficient to use pretinned copper or CuNi alloys. For seawater cooling coils however, it can be problematic finding

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With an ongoing commitment to research and development programmes, EVAPCO provides the most advanced products in the industry – and prides itself on manufacturing technology for the future, and making it available today.

Flex coil flexcoil.dk

Products Coils in all sizes

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with customers and other stakeholders. Today Flex coil is a wholly owned subsidiary of EVAPCO inc. Since it was founded in 1976, EVAPCO Inc. has become an industry leader in the engineering and manufacturing of quality heat transfer products around the world. Its mission is to provide first class service and quality products. EVAPCO is an employee-owned company with a strong emphasis on research and development and modern manufacturing plants. EVAPCO has earned a reputation for technological innovation and superior product quality by featuring products that are designed to offer the following operating benefits: 66 Higher system efficiency 66 Environmentally friendly 66 Lower annual operating costs 66 Reliable, simple operation and maintenance

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materials. Previously, experts recommended CuNi alloys, and then SMO took over as the best material. However, Flex coil has trialled materials in a salt spray chamber and reached the conclusion that titanium is the most resistant material for this environment. As a unit’s casing and the fan coil will also be exposed to a maritime atmosphere, Flex coil uses corrosion resistant steel with extra strengthening in the most exposed points in their construction. Finally, when selecting fans/motors, Flex coil uses special software to design and ensure good quality and also to optimise the fan selection. Zone definition, temperature and type of protection will dictate the type of motor as well as materials for the fan unit. Of course, alongside titanium, Flex coil also utilises a number of other materials in the manufacture of its products, including stainless steel, aluminium, copper, AIMg and galvanised steel in a variety of options. It is this flexibility to be able to supply coils in accordance with the needs of the customer that makes the company such an attractive partner. Optimal project solutions are adopted in all cases and customers benefit automatically from Flex coil’s expertise in the areas of thermo, aero and hydrodynamics and acoustics. Flex coil also guarantees the thermal performance of its equipment (as shown on the performance datasheets) when the equipment is installed in accordance with good engineering practice. If after installation and start-up there is any question regarding thermal performance of the equipment, Flex coil will send its engineers at the owner’s request - to the jobsite to conduct a performance test. This test may be observed by the owner and the consulting engineer or by their authorised representatives. If the results of the evaluation show the equipment to be deficient, Flex coil will make the necessary repairs or alterations to correct the deficiency. If the equipment is found to be performing in accordance with the performance datasheets, the owner is expected to reimburse the company for its costs associated with this performance test. As an ISO 9001 company, Flex coil prioritises quality, and it also works actively for long-term, sustainable development that respects both people and the environment. Accordingly, it continuously optimises its activities in order to prevent or minimise any adverse impact on the environment and health and safety in the workplace. This is done by using sustainable, energy efficient and recyclable materials, by an open dialogue and through close co-operation

Flex coil

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developments Monitoring

Strainstall

We provide solutions for load measurement and monitoring operations across a wide range of industries, but are particularly focused on the oil and gas market

, a member of James Fisher and Sons plc group, is a broad-based engineering firm that specialises in load measurement and sensor based safety technology. Established in 1965 in the Isle of Wight, the company has developed more than 45 years’ experience in the manufacturing of standard and bespoke load cells; it also assists industries through operations by ensuring structures, equipment and infrastructure are safe to use. “Today Strainstall has over 140 employees around the globe, in locations such as the UK, Dubai, Singapore and Australia. We provide solutions for load measurement and monitoring operations across a wide range of industries, but are particularly focused on the oil and gas market,” says Simon Everett, managing director. With a focus on technology and engineering expertise, Strainstall has mechanical, electrical, electronic and software engineering capabilities available in-house to consistently develop new products and technology. “Engineers make up approximately a third of the headcount of our company and our in-house capabilities give us the opportunity to bring multi-discipline teams together to produce integrated solutions,” says Simon. “We emphasise the importance of reliability and have developed specific technologies for use in harsh environments and subsea. We can also provide solutions where our competitors can’t due to our extensive hazardous area expertise.”

Working with a diverse range of customers across a variety of market sectors, ranging from oil majors, EPCs, service companies and lifting equipment firms, Strainstall is proud of its ability to find solutions to even the most complex of demands due to its dedication to customer service and expansive knowledge in load monitoring and environmental applications. “To solve the problems of our customers it is imperative we work closely with them, in many cases we have become the technology partners to a growing list of key clients who use us as an extension of their own teams, thus making us an integrated part of their solution,” highlights Simon. Load monitoring has always been at the centre of Strainstall’s activities, but there has been increasing interest in the oil and gas sector. Using the offshore and marine experience it has, the company provides integrated management solutions from its range of information and control outputs. A recent product developed by Strainstall is the Vessel Motion Monitoring System (VMMS), which monitors transfer boat movements. Its primary function is to enable the safe transfer of personnel from vessel to vessel/structure; it can also provide a more comprehensive monitoring system and has widespread applications from operations in the offshore oil and gas industry to the offshore wind turbine industry. Another state-of-the-art product that Strainstall is due to deliver is its quick release

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Strainstall Group

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Strainstall Group

hook (QRH) system for the Shell Prelude project, the world’s first floating liquefied natural gas (FLNG) project. “Along with our colleagues in Fendercare Marine, we have worked with Samsung Heavy Industries (SHI) to develop QRHs specifically suited for this demanding offshore application,” says Simon. “We believe this is the first time QRHs have been developed for green seas conditions and are proud to support SHI and Shell on this prestigious project.” The FLNG will be deployed at Shell’s Prelude gas field, 120 miles offshore Western Australia, where it will be permanently moored for approximately 25 years. Strainstall will supply the vessel’s QRH systems and an instrumentation package to provide the safe and quick mooring of LNGs to the FLNG. The mooring loads will also be monitored by the firm in real-time by strain gauged load pins that have been incorporated into the QRHs, enabling each mooring line to be pre-tensioned to satisfactory load values as well as providing data to protect line performance. Digital signals from the hook sensors are transmitted to the FLNG control room, where mooring line tension is displayed and visual and audible alarms are provided in the event of under/overloads. Furthermore, the QRHs are fitted with remote release to enable an emergency release from the control room. This project follows Strainstall Marine joining forces with Fendercare Marine, another James Fisher and Sons firm, in 2012. It is a mutually beneficial partnership that further enhances both companies’ prospects to develop a stronger foothold in the oil and gas industry. “We have

a great opportunity to grow the business over the next five years and beyond. Becoming part of Fendercare Marine enables us to extend our global reach and bring our combined expertise for the benefit of our customers, as has been demonstrated on the Shell Prelude project,” enthuses Simon. Following this project with Shell and future expectations of growth in the LNG market, Strainstall has invested in a 10,000 square foot facility dedicated to the production of jetty systems. Over the coming years Strainstall aims to continue improving the solutions it can offer customers by investing in new product research and development, which will enhance opportunities for international growth. “We have expanded our engineering and project management, and engineering teams and will continue to do so in order to deliver increasing numbers of tailored solutions. With a foundation of engineering excellence and the ongoing oil and gas industry boom we believe the prospects for Strainstall are excellent,” concludes Simon.

AMDA AMDA bvba have supplied gearboxes to Strainstall Group for over a decade. Since the year 2000, they have not only provided a continuous supply of their standard product range, but also worked together to develop special bespoke capstan and winch solutions. Such solutions include a manually driven winch with line pull up to five metric tons and a pneumatic capstan with line pull up to 25 ton - used for the mooring of the QEII.

Strainstall Group Ltd strainstall.com

Services Solutions provider for load measurement and monitoring applications

PROFILE

Atlantic Marine

DanBunkering Dan-Bunkering has maintained a leading position in the bunker business for more than three decades, arranging bunker supplies; fuels, lubricants, and other related products and services for vessels all over the world. The head office is situated in Middelfart with offices in Copenhagen, Shanghai, Kaliningrad, Singapore, Monaco, Houston, Beijing, and Dubai. Dan-Bunkering offers more than 70 dedicated and service-minded bunker traders ready to guide new and established clients. DanBunkering’s bunker traders always seek to find the ideal bunker solution taking all aspects into consideration. Acting in its own name and on its own account, Dan-Bunkering offers you one contact person and one set of terms worldwide. DanBunkering guarantees you the right bunker quality at the right price at the agreed place and time. Dan-Bunkering is part of a professional and financially strong group with interests in ship-owning and other shipping activities.

something of a gap in the market for that type of vessel. We acquired the first vessel of our new fleet, the Atlantic Guardian, in early 2010 and from there we have gone on to purchase five more ships.” Most recently this has included the Atlantic Wind and Atlantic Carrier, which came into the fleet in 2012, joining the Atlantic

Cougar, Atlantic Surveyor, Atlantic Rescue, Atlantic Guardian, and SB Kitty. “Our unique selling point is that each one of our vessels is multipurpose with its own unique capabilities,” notes Paul. “Every vessel is capable of doing something different to its sisters in the fleet. Our model is based upon purchasing older tonnage that is in a good condition and then putting a lot of investment into the vessel at the outset to make it as multipurpose as possible. This enables us to offer extremely competitive rates of between 20 and 30 per cent less than anyone else in the marketplace for our particular vessel.” Although the offshore wind sector was the

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Atlantic Marine

is a UK-based offshore and subsea vessel expert, operating as a global business. The company is part of a group with a wealth of expertise across air, sea, and property. As of 2012 the new face of this rapidly expanding business is Atlantic Marine and Aviation LLP, which comprises three main sectors – commercial shipping, yacht management, and aviation. “The commercial shipping sector is purely engaged in chartering vessels that are fully managed and crewed,” begins managing director Paul Crowther. “In particular we specialise in offshore support and supply vessels, as well as survey craft. The smaller side of the business is our yacht management division where we offer crewing, management and charter services for 30 to 80-metre vessels, primarily within the Mediterranean. Finally we have the aviation sector, where we own and operate private jet aircraft for charter.” Today perhaps 70 per cent of the business is commercial shipping, with the other two sectors making up the remaining 30 per cent. As Paul explains though, this wasn’t always the case: “In 2003 we virtually closed the commercial shipping side in order to expand the yachting and aircraft businesses. Then in 2009 several companies in the offshore wind sector approached us due to our expertise in 50 to 90-metre vessels, and the fact that there was

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dynamic positioning (DP) software system that we developed in-house in conjunction with a software company in Sweden,” describes Paul. “This gives us the ability to put bespoke solutions onto the vessel where we can actually tailor the software to the client’s requirements which you can’t do with an off-the-shelf system. It’s also an extremely cost effective way of offering DP tonnage to the market at around 50 per cent less than the nearest average rates.” Such has been the success of this investment that Atlantic Marine has now fitted the Atlantic Surveyor with the same DP software. The company is not stopping there either in terms of investment into its vessels as it aims to strengthen its position in the market. “Later in the year our expectation is to purchase further tonnage with the aim of one or two 70 to 90 metre offshore vessels. We feel we have cornered a particular market niche with our lower cost and well-maintained tonnage combined with excellent service, and we want to continue to build on that,” concludes Paul.

Our model is based upon purchasing older tonnage that is in a good condition and then putting a lot of investment into the vessel at the outset to make it as multipurpose as possible

Atlantic Marine atlantic-marine.co.uk

Services Ship charter and management

European oil & gas

original driving force behind Atlantic Marine’s re-entry into the commercial shipping market the company has also been busy in the oil and gas sector. Last year the Atlantic Wind was involved in seismic survey operations in the Barents Sea, whilst the Atlantic Guardian was operating as a rig supply vessel in the gas fields of the southern North Sea. “A very different thing about our company is that we are fundamentally service driven,” highlights Paul. “Our structure is designed so that we actually go onboard the vessel to meet and work with the client rather than in an office based environment. As such, we are a virtually paperless company with all vessels connected using VSAT broadband. All management tasks are handled in-house including safety and crewing, primarily using European seafarers.” For the first six months of this year Atlantic Marine is focusing upon consolidation and the completion of several conversion projects amongst its vessels. This includes the Atlantic Wind, which is being converted from a specialist

Atlantic Marine

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seismic source vessel to fit a much more multipurpose role. “We are fitting her with transfer systems and general survey equipment such as an hydraulic A-frame so she can offer survey spreads for the oil and gas, and wind sectors. We’re also entering the cable installation market later in the year due to the award of a major charter with E.ON to install inter array cables on the Humber Gateway wind farm project. This will involve the conversion of the Atlantic Carrier into a cable laying vessel,” explains Paul. The company also exhibited the Atlantic Cougar at Oceanology 2012 with a focus on the vessel’s groundbreaking design for personnel transfer to the bows. It also employs a number of other specialist capabilities to cater towards the demand that Atlantic Marine sees coming for large offshore catamarans capable of servicing the Round 3 wind farm developments, and supporting installations further offshore. “The Atlantic Cougar is fitted with a

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Season of the

Small yet flexible

Stigterstaal The offshore market is constantly changing and encompasses a wide variety of high-tech structures. Specifications are subject to strict requirements, since structures are exposed to dynamic forces and heavy swell, they must withstand severe elastic forces. Metal fatigue can also be aggravated by the nature of the seabed, corrosion and sub-zero temperatures. Fast delivery and punctual compliance with customer agreements is crucial. It is precisely on these points that Stigterstaal’s quality has made all the difference for the past five decades.

, Adria Winch has existed under its present name for over 20 years. Boasting a long history of design expertise for the marine and oil and gas industry, the company offers high quality state-of-the-art products to its customers. Set up as a ship’s machinery repair company in Split, Croatia, more than 55 years ago, it has a long tradition in machine building, deck machinery production, tool machines manufacturing, precise machining, electronics and hydraulics. Employing approximately 110 personnel, in Adria Winch Group, the company serves its customers around the globe by finding solutions through designing and producing equipment relevant to their specific needs. “Our main strength is our design office, which has 15 mechanical engineers - designers and five electrical power and control designers. We also offer a complete solution from the design through to the end of production; everything is done in-house,” states Marijo Bucan, head of sales at Adria Winch. Offering exceptional service and performance for clients working in the harshest of environments, Adria Winch’s main business is deck machinery for vessels in Norway and Russia, as Marijo highlights: “We make a wide variety of deck winches, from anchor-mooring winches, towing winches, tugger winches, capstans, rope reel to cargo securing winches. Our main market is in Norway and Russia, but we also work in China, Brazil, Vietnam, Dubai and other countries around the globe. Some 15 years ago our company started on projects in harsh environments, an area we now specialise in, and our equipment is usually for the minus 40 degrees Celsius operations.” In 13 years

Adria Winch has worked on more than 30 such ‘minus 400C’ projects without damage to equipment, which is due to the stringent controls and testing during the production process, thermal spray metalization and multilayer marine grade coatings. When designing machinery, its engineers use the latest technology in order to achieve a quick and accurate response to customer demand. Special attention is paid to high quality design regarding ease of use, servicing, and safety; the company’s quality system is certified and registered by RW TÜV Essen, Germany and conforms to the ISO 9001 quality system standard. With flexibility to design and manufacture both bespoke and custom projects, Adria Winch has developed a competitive edge in a difficult market. “It is very hard to enter Norwegian markets from small countries like Croatia so we have to be very good at what we do and offer more than our competitors. Other companies don’t have the capabilities to design and manufacture like Adria Winch and we aim to continue offering more to our customers by investing in new machines. Recently 1.7 million euros were spent on new machines and new cranes, which is all part of our strategy to become bigger and more advanced in the future,” says Marijo. Recent projects for the company include an equipment order for two offshore subsea construction vessels, which are currently under construction at STX OSV Brattvaag Shipyard for Norwegian owner Siem Offshore. Together with partner Seaonics AS, Adria Winch will supply custom designed deck equipment, such as two electrical anchor-mooring winches for 56K3 chain category with stoppers and two electrical

its specialised solutions. “Currently the market is down in Europe, there seems to be less and less projects every day, but we recently entered the Chinese and Turkish market where we will be working on projects with new and special designs. We are even expanding into software programming. On top of that we have a strong position in Russia, an area where we have excellent connections and representative offices to serve our customers,” adds Marijo. Cautiously optimistic about the long-term future of the company, Adria Winch is focusing on developing sophisticated and advanced products with a specialised purpose; it is also looking for a partner with design office and production requirements. “It is hard to have vision in a changeable industry,” says Marijo, “We are discussing every day what our official vision should be, but our strategy remains to offer advanced products, in particular mechanical and electrical parts, and to continue offering state-of-the-art, high quality, safe equipment to our customers.”

In 13 years Adria Winch has worked on more than 30 such 'minus 400C' projects without damage to equipment, which is due to the stringent controls and testing during the production process, thermal spray metalization and multi-layer marine grade coatings

Adria Winch adriawinch.com

Products Hydraulic, electrical and pneumatic deck equipment

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mooring winches that boast 100kN pulling force, for the vessels. The value of each contract is 203,400 euros. Having worked with STX OSV on three fishing vessels for Norwegian firm Aker Seafood ASA in the past, Adria Winch views the new contract as a successful continuation for the two firms. It also delivered anchormooring equipment for three of Norwegian firm Hayvard’s new platform supply vessels, with the contract estimated at approximately 550,000 euros, in March 2013. Following the completion of a number of projects for the oil and gas industry with its partner Seasonics AS, Adria Winch is aiming to develop a stronger foothold in the market over the coming years. “With our bespoke and custom equipment and a number of successful projects behind us we feel there are great opportunities for us in the oil and gas industry, particularly in rigs and drilling,” states Marijo. Despite difficulties in the economy, the company is positive that its innovation, flexibility and quick delivery will bring further demand for

Adria Winch

European oil & gas

PROFILE

VSMPO Titan Ukraine

Nikopol Pivennotrubniy Zavod Olimpia 80 Olimpia 80 is an Italian company that has specialised for over 40 years in engineering and manufacturing a wide range of tube mill for carbon steel, stainless steel, titanium and non ferrous materials to produce round, square, rectangular and special profiles. We can produce tube mills in different sizes and technical characteristics, for OD up to 24” (610 mm) with HF, Laser or TIG welding system. Tube mills and complete test line for round tube The two first test lines engineered and manufactured by Olimpia 80, for our customer VSMPO, were completed and checked in our plant on November 2012 before the final delivery. The tube can be tested with different systems: 66 eddy current test 66 ultrasonic test 66 pneumatic test 66 hydraulic test The complete lines start with two TIG tube mill for titanium material, to produce round tube in a range from 12.0 mm O.D. to 60.3 mm O.D. and from 0.4 mm to 2.5 mm thickness. Every line can test 100 per cent of the tube, according to the international standard rules, for a max length of tube 26 m.

was founded in 1935 when a small tube-rolling mill began operating; it soon became the biggest industrial enterprise in Europe and by 1955 its tube shop Number five (TESC-5) was the USSR’s core producer of seamless cold-worked tubes from titanium and titanium alloys. Following a number of acquisitions throughout 2000 – 2009, OJSC VSMPO-AVISMA registered the company as VSMPO Titan Ukraine Ltd in August 2008. Today the subsidiary produces seamless titanium pipes for industries such as power generation, oil and gas, shipbuilding and chemical processing. In 2011, VSMPO Titan Ukraine’s chief executive officer Kostyantin Antonov, spoke to European Oil and Gas on the company’s services: “Our titanium tubes and pipes are used in the oil and gas industry; we have been involved in several projects under Pemex, Qatar Gas, Maersk Qatar and Exxon Neftegas over the last five years,” Demand for industrial CP titanium after the boom in 2010 lowered and was average in 2011-2012, and this tendency is anticipated to continue through 2013 and 2014. Some ramp up is expected in the aerospace industry, which parent company VSMPO-AVISMA is focusing on. Nevertheless, investments are extensively made within the corporation to remain at technologically and commercially high levels. “In November 2012 VSMPO-AVISMA decided to create a high technology site for manufacturing welded tubes for titanium alloys at VSMPO Titan Ukraine, and in December 2012 we received complex equipment of tube welding lines, which were produced by the Italian firm

Olimpia 80 SRL, for fabricating welded titanium tubes with an outside diameter of 12.0 to 60.3 mm with a wide range of wall thickness,” highlighted Kostyantin. “Implementation of this project will allow the manufacturing of especially thin-walled welded tubes from titanium alloys at a length of up to 26 metres, which will be offered to the market in 2014.” To further enhance its competitive offering on the market, the subsidiary was included in the list of approved suppliers according to NORSOK M-650, Rev. 4, qualification of special material manufacturers, after participating in Statoil’s qualification programme. According to Statoil, VSMPO Titan Ukraine is the first manufacturer of seamless titanium tubes to be entered into this list of subcontractors; the approval includes seamless titanium tubes according to ASTM B338 and pipes according to ASTM B861. “NORSOK qualification gives the subsidiary opportunities to take on engineering and building projects in the oil and gas industry, such as shelf developments and construction of static and floating oil and gas extracting platforms,” enthuses Kostyantin. Proud to offer products of the highest quality to its customers, VSMPO Titan Ukraine complies with world standards for production and is approved with a multitude of certificates, such as the TUV Nord certificate for compliance of quality management system, with requirements for international standard ISO 9001. It is also SAE AS 9100 and ISO 14001 approved. Annual shipment volume of seamless tubular products is more than 300 tonnes at VSMPO Titan Ukraine’s enterprise area, which consists of a manufacturing building, plant office building

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VSMPO Titan Ukraine

and auxiliary buildings and premises. The total area of the territory is an impressive 1504 hectares, of which the manufacturing building takes up 54,000 square metres. It is the largest of its kind in the country and the company’s development and investments programme, approved to run into 2015, will lead to further improvements in the facilities, equipment, tools and products. With markets in 25 countries around the world, including the US, Asia, Europe and Russia, VSMPO Titan Ukraine anticipates a production increase over the next few years. Its current range of manufactured tubular products includes ASTM B 338, ASTM B 861, AMS 4943, AMS 4944, AMS 4945, AMS 4946 and DIN 17861. In July 2012 VSMPO Titan Scandinavia AB, a wholly owned subsidiary of VSMPOAVISMA and an official selling agent of titanium tube products of VSMPO Titan Ukraine, signed a distribution agreement with US based Uniti Titanium to represent the firm in Scandinavian countries. Since 2012 this has allowed VSMPO Titan Scandinavia AB to sell the whole range of mill products including plate, sheet, coil, bar,

seamless tube/pipe, and welded tube/pipe. Despite economic crises, VSMPO Titan Ukraine was quite stable in its sales over the last few years and Kostyantin believes there is ample opportunity to thrive in the current market. “Titanium is a sustainable solution for corrosion problems across a wide range of industries, which is why we have expectations for continued expansion in the market. We want to continue increasing brand recognition and to participate in many large projects,” he told European Oil and Gas in 2011. To prepare for the influx of potential future projects, the company has expanded its workforce and is developing new products in its state-ofthe-art facilities. “Our in-house technology and metallurgical expertise, along with the exclusiveness of our materials, gives us the opportunity to offer a wide production range and meet any of our customers’ demands,” concluded Kostyantin. Through preparation, investment and innovation the Ukrainian facilities, together with its parent company and distribution offices, are true titans in tubular and other titanium products.

VSMPO Titan Ukraine Ltd tw-vsmpoavisma.com

Services Manufacture and production of titanium tubes and pipes

refined Highly

Located in Haifa Bay, Oil

Refineries Ltd (ORL), or the Bazan Group as it is known locally, is one of Israel’s largest and most complex refining and petrochemical groups processing around 200,000 barrels of oil per day (bopd). State-of-the-art facilities that are fully Euro V compliant enable ORL to manufacture a broad range of refined products for industry, transportation, agriculture, infrastructure, and household consumption. About 75 per cent of these products are distributed on the domestic market with the rest exported, mainly to the Eastern Mediterranean. Whilst refining makes up the largest percentage of its business, ORL is uniquely integrated with petrochemicals through its 100 per cent subsidiaries Carmel Olefins Ltd, Gadiv Petrochemical Ltd, and Haifa Basic Oils Ltd. In 2012 the business took the strategic decision to consolidate all of these entities into one business, which enables it to extract as much value as possible from its raw materials and final products. All four facilities are located on the same site, which enables ORL to drive synergies through integration to improve margins and flexibility. Elaborating a little on what each of these divisions brings to the business, chief technology officer Yaron Nimrod says: “The refinery itself is a full-cracking facility, which means we

are processing all the vacuum gas oil (VGO) product. We operate three crude distillation unit trains, two Visbreakers, a catalytic reformer, a hydrocracker and mild hydrocracker, and a catalytic cracker (FCC) and several Hydrodesulfurization (HDS) units for the production of the various products. “Carmel Olefins produces around 150 kilotonnes of polyethylene, and 550 kilotonnes of polypropylene each year. It also produces the monomers by processing feed streams from the refinery such as LPG and Naphtha. Carmel also uses ethylene and refinery produced Butelene in a metathesis reaction to make even more propylene, which can then be used for polypropylene production. Our second subsidiary, Gadiv, is an aromatic complex which takes the reformate naphtha that has been through the catalytic reformer and extracts the aromatic compounds to produce a range of products. Finally, Haifa Basic Oils uses components produced at the refinery to manufacture base lube oils and wax for local industry,” he continues. In November 2007, ORL announced a fiveyear strategic investment plan of $1.1 billion to improve and expand its operation. Included within this was a $500 million investment project into a new VGO hydrocracker, which

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Bazan Group (formerly ORL)

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PROFILE

converted the refinery to gaseous fuel only. Describing the reasons behind this shift, Yaron says: “The most important motivator was the environment. Even burning a low sulphur fuel oil meant we were emitting sulphur oxides into the atmosphere. By changing to natural gas, which is sulphur free, we have reduced these emissions to almost zero, which has had a very positive effect. Furthermore, nitrogen oxide levels have dropped significantly as well as particulate emissions. This required investment into all of the heaters and boilers around the site, as well as a network of piping in order to bring in and utilise the gas. We also see an economic benefit from using natural gas as it costs less than fuel oil, which we hope to see reflected in our balance sheet.” Having placed a focus on profitability, flexibility, and the environment for the last five years, ORL is now confident it will be able to reap the benefits of its investment. The company believes that it is better placed than ever to exploit the opportunities in the market, and as such is now discussing its line of focus for the next years. “Having executed the majority of our strategic plan for 2007 to 2012, we are planning on the second half of the year to begin work on our next five-year strategic plan in order to realise the new opportunities and synergies of our re-organisation and the new investments. We are also looking at new opportunities that come with the availability of natural gas in Israel,” explains Ben-Moshe. “The fact that we have the petrochemical, aromatics, and base oils plants within our group as well gives us a lot of advantages over traditional refineries,” concludes Yaron. “As we continue to optimise our new integrated structure and realise the benefits of these synergies, we will be able to offer even more improved and higher quality products to our marketplace.”

The fact that we have the petrochemical, aromatics, and base oils plants within our group as well gives us a lot of advantages over traditional refineries

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was successfully activated at the end of last year. The hydrocracker is currently working on an input of around 25,000 barrels per day and producing LPG, naphtha, kerosene, and diesel of a very high quality. The new unit significantly improves ORL’s competitive positioning by increasing its complexity and ability to produce a more profitable product mix. “It has been very successful since its introduction exceeding not only the forecasted capacity, but also the efficiency and quality properties,” notes Yaron. “The investment has given us excess cracking capacity, which means we can import cheap VGO, crack it, and sell the premium products that come from it.” Zachi Ben Moshe, VP strategy & business development continues: “We have the flexibility to go to the market and react according to the benefit of each product. We can improve production depending upon the profitability of each element at the time, and have a much wider range of options in terms of working with different types of crude, which opens up new opportunities.” Unusually for the industry, the project was managed and executed by ORL’s own development group as opposed to an EPC contractor. “As a group we have strong engineering capabilities and this was proven by our ability to deliver this complex project,” highlights Yaron, who also served as the Hydrocracker project manager. “The advantages of this are that the know-how remains within the company, and that the operation and maintenance teams are involved at a very early stage when they can still influence the design. Likewise, this means that at the start of the commissioning stage we were able to bring the hydrocracker online in a very swift and streamlined way.” Other investments contained within the strategic plan included a hydrogen plant to accompany the new hydrocracker, the conversion of an old desulfurization unit into a mild hydrocracker, and the addition of a distillation column and heater to the large crude distillation unit. This increased its ability to process both very light and very heavy crudes. Around 25 per cent of the investment in the strategic plan, or $270 million, was allocated for environmental projects, the largest of which was ORL’s decision to exclusively use natural gas as its primary energy source. This resource has been part of the company’s energy mix since 2009, but with the full commercialisation of the Tamar gas-field offshore from Haifa, it has now

Bazan Group (formerly ORL)

European oil & gas

PROFILE

Bazan Group (formerly Oil Refineries Ltd ORL) bazan.co.il

Services Refining and petrochemicals

signs European oil & gas

europeanoilandgas.co.uk

Positive

Established in 1994

, Seaward Safety Ltd offers an unmatched range of resources to the marine and offshore industries in the specialised field of signage packages and escape route systems. This includes the surveying of signage requirement, and design, manufacture, and installation of safety, ID, generic, and corporate signage, often on a turnkey basis. Over the years Seaward has completed numerous contracts for the petrochemical and oil and gas industries, from new builds to the upgrade of existing systems. This experience has led the company to develop a complete range of safety signage, using tried and tested, and innovative materials suitable for use in the harshest of environments where the oil and gas industry is present. Furthermore, throughout the late 1990s the company was instrumental, alongside a major drilling company, in the creation of a new innovative Safety Awareness System (SAS). This pictorial-based system was designed to provide a standard in communication and safety that crosses national language and cultural boundaries. In particular, it is intended to enhance personal awareness of hazardous areas and operations, mandatory requirements and prohibited actions. Since its introduction, SAS has been embraced by the oil and gas industry with wide recognition of the benefits it brings to enhancing health and safety of employees. Whilst at one time Seaward did quite a lot of marine work, today around 90 per cent of its activity is in the oil and gas industry. Describing the company’s latest progress within the sector John Williams, managing director says: “In mid2012 we signed a two-year agreement with a

major player in the oil and gas exploration sector to become their preferred vendor globally, in addition to similar arrangements with others that have been in place for a number of years now. “For example, we have just won the contract for the first of two drill ships that are being built in Korea, which will see us provide all the pipe markers, signage, special boards, and escape route systems,” he continues. As with many of its projects, Seaward is executing this programme as a turnkey contract, following design procedures developed and proven since the company’s formation. These include five main stages – design, site survey, manufacture and supply, installation, and aftersales support. Seaward has its head office in the UK, supported by other sales sites and manufacturing units around the globe. Just over two years ago the company took the decision to invest in Brazil due to the volume of activity it foresaw in the country over the next ten years. Coupled with Brazil’s restrictions surrounding local content it proved to be a shrewd move with Seaward now well established with its own production factory and office in Rio de Janeiro. The company is perfectly placed to serve Brazil’s oil and gas industry and is already winning contracts across the market. John partly puts this success down to Seaward’s highly specialist nature: “There are hundreds of sign companies, but there isn’t really anybody that does what we do,” he remarks. “This is in terms of being able to send a surveyor to a rig or platform anywhere in the world, and to ensure that the signage and pipe markers meet the local regulations. This is whether the asset is in Angola, Brazil, Kurdistan, Korea or

has given the business the confidence to move forward in the task of setting up a local entity, in much the same way as it did in Brazil. Given Korea’s importance as a manufacturer of assets at present, as evidenced by its role in major projects, even closer connections to this market are likely to point Seaward in the right direction for the future. Seaward has added another string to its bow by investing in new digital printing technology that will work alongside the more traditional Screen printing methods, which have proved so successful in the past. The new HP Scitex equipment, along with laminator and cutting tables, have been installed in their own purpose built temperature controlled room, and have already been put through their paces on a number of challenging commissions from clients The use of UV curing inks means the whole process of printing full coverage signage can be speeded up significantly, particularly when it comes to the manufacture of pipe markings.

Seaward Safety Ltd offers an unmatched range of resources to the marine and offshore industries in the specialised field of signage packages and escape route systems

Seaward Safety Ltd seawardsafety.com

Products Corporate safety signage and escape route systems

europeanoilandgas.co.uk

the North Sea, we can check that it is fit for that market from a signage perspective. We also carry out corporate audits for companies that have their own particular safety system that they adhere to so we make sure we follow those guidelines as well.” With positive forecasts for the oil and gas industry over the next decade at least, Seaward is pressing ahead with its plans for further expansion. In particular the company is looking into the potential of opening a new office and manufacturing facility in Korea, either in its own right or through a joint venture. “South Korea is a major builder of drill ships, whilst Singapore for instance builds jack-ups and semi-submersibles. Each drill ship is a huge investment as they’re so sophisticated, but we’re seeing quite a few now being ordered that we have been contracted for,” describes John. Seaward’s reputation as a market leader has stood it in good stead in helping secure the signage contracts for assets to come out of Korea and Singapore in recent years, and this

Seaward Safety Ltd

European oil & gas

PROFILE

good Prospects look

European oil & gas

europeanoilandgas.co.uk

Founded six years ago, Africa

Newport Africa Securing the East African Oil prize We support clients and projects in many of the active oil and gas blocks in Eastern Africa and the Horn of Africa. We bring together knowledge and experience in the region to support clients from their first interest in a potential Block, through assessment, exploration and on to production. We stand at the meeting point between companies, governments and communities, managing risk through liaison, information, co-ordination, field support and emergency response.

Oil Corp is a Canadian oil and gas company with a special focus on the prospects of East Africa. At present the company has assets in Kenya and Ethiopia, and in Puntland, Somalia (Puntland assets held through a 45 percent equity interest in Horn Petroleum Corporation). These operated and non-operated blocks contain unexplored plays in basins that have proven and productive nearby analogues. Initially the company started out acquiring acreage and completing seismic campaigns, and as of last year launched the first stages of an active drilling programme. For 2013 this has accelerated even further with a net exploratory budget of $184 million for the year. Whilst East Africa was perhaps previously overlooked with the rush for development to the west, it seems this tide is now turning. Indeed Africa Oil Corp was the number one stock in Canada last year, suggesting significant value is being seen in its activities. “I think now people have really woken up to East Africa, not just through what we’ve done, but the large gas discoveries in offshore Tanzania and Mozambique. The good news for us is that we were able to get in there first and have tied up most of the good acreage. This has enabled us to attract in high quality partners such as Tullow Oil and Marathon Oil, whilst we go out and drill wells and figure out what to do in the next phase of our exploration and development,” describes Keith Hill, president and chief executive officer of Africa Oil Corp. Since the beginning of 2012, Africa Oil Corp has drilled three wells, and has just begun work on a fourth. With its first Tullow-Africa Oil joint venture exploration well, Ngamia-1, the company discovered over 100 metres of net oil pay. Following completion of this well, the

joint venture partners moved on to drill Twiga South-1 in a different block on the same trend as Ngamia-1, which also successfully encountered 30 metres of net oil pay. “The Ngamia-1 and Twiga South-1 wells both look like very sizeable discoveries, and we are very excited about the potential not only of those basins, but the entire Tertiary rift trend that they are a part of. Having tested the well, Twiga South-1 looks to have a combined flow rate of around 2800 barrels of oil per day (bopd), and we believe that it is capable of over 5000 bopd. We are now testing the Ngamia-1 well to estimate recoverable reserves there,” highlights Keith. Africa Oil Corp also has an active exploration

programme in Somalia where the Shabeel-1 and Shabeel North-1 exploration wells have been drilled and encountered a working petroleum system but did not recover oil. There is enough encouragement to continue operations and a seismic programme is planned later this year. Completing the current well portfolio is the Sabisa-1 well in Ethiopia just over the border from the Kenyan assets, which should be completed shortly. “This well has the potential to open up the northern portion of the Tertiary rift basin,” explains Keith. “It’s a very frontier well

big the reserves are and how many basins are prospective. Once we confirm we have sufficient volumes to justify development, the biggest challenge will be the lack of infrastructure in East Africa. Either ourselves, or someone else, will have to build a several hundred kilometer long pipeline to the coast and a terminal, so that will be a large undertaking.” It may still be early days for the business but the preliminary results from the exploration wells drilled so far are encouraging. Emphasising the sheer scale of return that could be possible from Africa Oil Corp’s asset base to date, Keith concludes: “We had an independent study carried out which estimated up to 27 billion barrels of recoverable gross prospective resources in these blocks. This has got us, and our shareholders, very excited as you can’t really find onshore blocks with good contract terms and this type of resource potential anywhere else in the world. The blocks we have now are roughly the size of the entire UK North Sea so it’s a very large acreage position with a lot of potential upside.”

I think now people have really woken up to East Africa, not just through what we’ve done, but the large gas discoveries in offshore Tanzania and Mozambique

Africa Oil Corp africaoilcorp.com

Services Exploration

europeanoilandgas.co.uk

and the first to be drilled anywhere within that area, which means that although it is higher risk, if successful it will de-risk a large portfolio of prospects up there.” At this point Africa Oil Corp is keen to focus on the three regions it is active in – Kenya, Ethiopia, and Somalia, as opposed to pursing new ventures. With three drilling rigs already mobilised, and another three coming in, the company has an intensive drilling programme in the immediate future, which will explore some of the over 130 identified prospects and leads amongst its acreage. This includes the exploration wells Paipai-1, and Marathon Oil partnered Bahsai-1 in the Cretaceous basins in Kenya. Before any decisions are taken about the longterm propositions for the business, Africa Oil Corp is looking to gather a lot more data about these assets and what might lie within them. “It’s really just a question of getting out and drilling the wells and trying to open up some new basins,” confirms Keith. “We think short-term it will take around 25 wells to understand how

Africa Oil Corp

European oil & gas

PROFILE

Highly

European oil & gas

europeanoilandgas.co.uk

thought of

As much of a giant in its sector as the equipment it operates, Sarens is a recognised worldwide leader in heavy lifting and engineered transport. The Group utilises state-of-the-art equipment and value engineering to offer its customers creative solutions to today’s heavy

lift and transport challenges. The business subscribes to the model ‘nothing too heavy, nothing too high’ which has enabled it to open up a truly global marketplace with offices in 54 countries worldwide. Accordingly the strategy for 2012 to 2013 has remained one of growth and expansion. In fact Sarens was awarded the title of ‘Trends Gazelle Ambassador 2013’, for its province VlaamsBrabant. The initiative of Belgian financial magazine Trends, this yearly event recognises the fastest growing companies of the five Flemish provinces. “During this period we have purchased three new crawler cranes with capacities of over 1000-tonnes, an additional 100 axle lines of self-propelled modular trailers (SPMTs), lifting towers, telescopic cranes, and new barges,” notes Marcel Roovers, global sales and marketing director. This is in accordance with the direction of the market itself, in particular the move towards bigger and heavier cargoes, which has seen

The business subscribes to the model ‘nothing too heavy, nothing too high’ which has enabled it to open up a truly global marketplace with offices in 54 countries worldwide cranes of above 1000-tonnes in strong demand. At the upper end of this trend is the Sarens Giant Crane (SGC-120), which was developed internally and launched in March 2011. The SGC-120 is one of the biggest cranes in the world, and has recently been used at the Cosco shipyard in Nantong, China to lift modules for the construction of the topside of a drilling platform with a total weight of 15,000 tonnes. With 600 new employees hired worldwide in 2012, another focus area for Sarens has been improving personnel and operational safety. “In recognition of this even more of our global entities have achieved ISO and OHSAS certification including Mexico and Colombia. We have also launched the BlueSafety programme, which is a worldwide safety behaviour scheme aimed at further increasing the safety awareness of staff,” explains Marcel. The focus here is on discovering and eliminating possible safety risks and encouraging a safe attitude towards equipment and all on-site activities.

Sarens’ move from a localised Belgium family business to a truly multinational organisation can be seen most clearly in the scope of contracts that it has been delivering. At the turn of the year Sarens was awarded a new frame agreement by Statoil for the provision of crane and lifting operations, including transport logistic services, for the Kårstø and Tjeldbergodden onshore facilities. This contract will form an integral part of Sarens’ foundation for further growth within Norway, and may foster demand for further recruitment of engineers. Another notable contract was for the transportation of perhaps Sarens’ most valuable cargo to date – the space shuttle Endeavour. After 25 missions into space the Endeavour’s final journey was the 12-mile distance between Los Angeles International Airport and the California Science Centre. Months of meticulous planning saw an array of specially designed SPMTs used to transport the craft. Comprising four independent, multi-axle, computercontrolled wheeled vehicles, the SPMTs ensured

europeanoilandgas.co.uk

Sarens Group

European oil & gas

PROFILE

welex Nothing too heavy for a Welex mat Welex manufactures crane mats for lifting and construction companies across the world. It is one of the oldest and largest businesses of its kind with a history stretching back almost 100 years, and today offers a huge variety of industry-renowned crane mats.

European oil & gas

europeanoilandgas.co.uk

To produce its mats, the company has four unique automatic production machine that can create mats at high speeds of anywhere between 75,000 and 100,000 mats per year. These mats can be made to any specification required by the customer. Welexâ&#x20AC;&#x2122; standard programme runs from three to 12 metres in length and seven to 30 centimetres in thickness, and comes in two different qualities: complete ekki hardwood that is more durable and the best hardwood there is, and a combination mat dabema hardwood wood sandwiched between ekki hardwood.

Not only does it sell mats, the company also provides the opportunity to use the products on a rental basis too. It is speed of service that has made Welex an outstanding company. Big names such as Sarens recognise Welex as being able to deliver even large volumes of mats with a very quick turnaround time. Because off its several depots in the Netherlands, Germany, and the UK, Welex is able to react on short notice and keep transport cost as low as possible. Welex - your partner for crane mats

Sarens Group

precision maneuverability and stability to navigate the myriad of obstacles encountered on the two-day journey. Closer to home, Sarens executed all the heavy lifts and site moves for the upgrade of the semisubmersible drilling vessel Scarabeo 6 by Keppel Verolme. Taking place in one of the biggest dry docks in the world, a 600-tonne CC 2800-1 and 750-tonne LR 1750 were rigged with 80-metres of main boom and superlift. The company also assisted with the assembly of two 400-tonne tunnel-boring machines in Warsaw, Poland for the construction of a second metro line. In Bulgaria, Sarens transported two enormous fuel reactors with SPMTs from the port of Bourgas to an oil refinery. Each vessel, of 1400tonnes in weight, 57-metres in length, and ninemetres in height, was transported through the city centre, which meant street and traffic lights, and high-tension cables had to be removed. Meanwhile, in Brazil Sarens and its partner

BSM have been awarded the crane services for the Trairi project by Siemens. This includes preassembly and final execution of the first 50 wind turbine generator units including concrete towers. With a hub height of 80-metres and weights of up to 156-tonne for the tower sections, Sarens and BSM are proud to announce that the first nacelle was put in place in midMarch. Based upon this performance, the two companies have also been awarded work for the next project of 34 turbines by Siemens. Another important project on Sarens’ agenda is the transport and installation of 16 new lock doors for the Panama Canal, a part of the renovation and enlargement of the Canal. These lock doors weigh between 1.900 and 4.300 tonnes and measure 58,7 x 10,0 x 34,7m. Starting in June, Sarens’ SPMT’s and barges will bring the doors from the manufacturer in the Italian San Giorgio di Nogaro to the port of Trieste and load them onto STX sea-going vessels for the sea transport to Panama. Sarens will take care of the loading and unloading of these vessels and will, once in Panama, bring eight lock doors through the canal to the Pacific side with barges. Sarens will carry out all transport and installation in Panama. With many more international projects on its books for the coming years, Sarens’ strategy for delivering these is very likely the same as it was in previous years. This is to continue to expand its business with investment into new equipment and personnel in order to be able to act on a project-basis anywhere in the world.

European oil & gas

With many more international projects on its books for the coming years, Sarens’ strategy for delivering these is very likely the same as it was in previous years. This is to continue to expand its business with investment into new equipment and personnel in order to be able to act on a project-basis anywhere in the world

europeanoilandgas.co.uk

PROFILE

Sarens Group sarens.com

Services Heavy lift and special transportation services

europeanoilandgas.co.uk

European oil & gas

assets Maximising

Now celebrating its milestone

tenth anniversary, Axiom Engineering Associates Ltd is a company whose success has far outpaced its early projections. Indeed, from a founding staff of just one mechanical and one materials engineer, the business now numbers 32 with typically three new personnel taken on every year. “Our idea was to put mechanical and materials engineering services back into the small chemical plants of the time, which once had support from the likes of Imperial Chemical Industries (ICI), but saw those services disappearing. Individually we have a broad experience in these types of plants, which means that we can offer our clients an understanding of their problems from an operators point of view, as well as a practical hands-on approach to finding a solution,” begins Dr René Hoyle, co-founder, and principal materials engineer. Careful and proactive management of assets can have significant benefits including extending the lifetime, reducing downtime and increasing productivity, and understanding failure. Today Axiom Engineering Associates is largely contracted by the petrochemical, oil and gas, and storage industries, but the transferable nature of its skills means it has also worked for a unicycle

manufacturer and ice cream factory in the past. “It doesn’t matter if someone is making widgets to go in beer cans or the beer itself, we can help them identify what’s going wrong with their infrastructure,” notes Dr Hoyle. “There are three main facets to our business; inspection, materials engineering, and mechanical engineering. The model we quote is that our inspectors will find any problem, our materials engineers will understand what that problem is in terms of what is causing it and the likely outcome, and the mechanical engineers will assess if repair or replacement is necessary. So the client gets a complete knowledge service for any problem from a single source. We can follow a project the whole way through, or provide any single component of that service so it’s a very flexible offering in that sense,” he continues. Often the starting point for Axiom Engineering Associates’ client relationships is the failure of an asset, whether it is a pressure vessel, tank, pump, lifting equipment, or other parts of site infrastructure. Through analysis and testing at its fully equipped laboratory, the company can identify the root cause of failure and advise on how best to rectify it. Likewise, only by understanding the degradation and the impact of running conditions on this can future

Integrity Management’, this department takes a step back to look at a site as a whole and identify the areas that are the most critical or pressing concerns. Having this wider view means that clients can focus their investment in the right places to deliver the appropriate outcome. Another change in the business is the intention to open one or two additional offices alongside Axiom Engineering Associates’ current headquarters in Stockton on Tees. Primarily this is aimed at increasing the company’s inspection offering with a localised service in key areas. “Inspection tends to be quite geographically sensitive because there are so many inspection bodies around, meaning it is not always viable to supply personnel into regions where there is a local offering. “We are therefore looking to potentially open an inspection office in the central belt of Scotland around the Grangemouth area, and another in the south-east of England near the Thames Estuary. These services will then be supported by the materials and mechanical expertise at Teesside to provide the full solution cycle,” concludes Dr Hoyle.

Inspection tends to be quite geographically sensitive because there are so many inspection bodies around, meaning it is not always viable to supply personnel into regions where there is a local offering

Axiom Engineering Associates Ltd ax-ea.co.uk

Services Asset management

European oil & gas

failures be prevented, and Axiom Engineering Associates can use this data to prepare a programme of focused inspection, maintenance, and investment. As an UKAS-accredited inspection body, the company also carries out statutory inspections according to regulatory requirements. “Today’s economic climate means many customers are not prepared to invest in new assets, instead opting to keep the older ones going for longer,” says Dr Hoyle. “This generally means that they require more inspection to ensure ongoing fitness for purpose and assessment of degradation, which fits well with our combined materials and mechanical engineering expertise.” One example of where all three facets of Axiom Engineering Associates’ capabilities have come into play is the inspection of storage spheres. “We have been looking at a number of those for various clients that are using them to store liquefied gas,” explains Dr Hoyle. “One of the biggest challenges here is preparing the assets for their periodic inspection as they have to be emptied and de-gassed to ensure that it is safe for entry, and then internal scaffolding

Axiom Engineering Associates

europeanoilandgas.co.uk

PROFILE

constructed to carry out the inspection. “What we have been able to do is carry out a non-invasive inspection, so although the sphere has to be emptied and de-pressurised, we can do the inspection itself from the outside. Instead of just assessing ten or 15 per cent of the welds, this means we can actually check 100 per cent. This is achieved by a deep understanding of the history of the item, the materials of construction, the welding detail, and any likely defects that could cause problems. The cost savings of inspecting the assets from the outside as opposed to inside are astronomical, with an up to 90 per cent reduction in the six figure budget,” he adds. Given the overlap and interaction between Axiom Engineering Associates’ inspection, materials, and mechanical fields, the company is now in the process of establishing a new division that brings all of these together. Titled ‘Asset

europeanoilandgas.co.uk

European oil & gas

Seamless integration

Above 2 x 17.5MW thermal oil heater system supply onboard a FPSO operating in Brazil Above right Containerised boiler leaving PCT factory

Siemens The requirements on automation within today’s oil and gas projects have never been greater, with ever increasing demands on safety, reliability and availability. Siemens is the right partner, with our world leading automation products and systems. With our integrated engineering software solutions you can design, install, commission, operate and maintain your assets throughout the complete life-cycle, from concept to modernisation. Coupled with Siemens’ broad portfolio of process instrumentation, including process analytics, we are able to measure all parameters to enable optimal control of your process. Our unified approach reduces project engineering, leading to earlier operation, faster ROI and reduced OPEX costs. All these products and systems are integrated to provide the optimum balance between flexibility and efficient engineering.

Pacific Central Teknik

Pte Ltd (PCT) serves OEM boilermakers, shipping companies carrying out FPSO/FSO conversions on boiler systems, shipyards, and platform operators. It represents a number of European brands on an exclusive basis in the Asia Pacific region such as the OILON - burner system, Vahterus – plate & shell heat exchangers, RMG - gas pressure regulators and flow measurement systems, KRAL- screw pump and the Volumeter for liquid measurement. and Siemens PLC system, which form part of a complete package for its customers. When PCT was established in February 1993, it had the prime objective of promoting OILON burners in the Asia Pacific Region. The sales of OILON burners was successful because there was a great demand for burners in the region. The main portion of these sales originated outside Singapore from locations such as Indonesia, Malaysia, Philippines and Thailand. The primary target audience for PCT are the boiler manufacturers in these countries, where the volume sales can be captured. In addition, with the exploration of natural gas in these countries, the conversion of oil firing plant into gas firing is another potential market for OILON burners. After the OILON burner gained some

awareness in the boilermakers' market, PCT’s management decided to market other products in the same field. Lanemark Tank Heaters and Process Burners are also products that PCT was given the sole agency to market in the region from the result of PCT’s sales effort. Today PCT offers both the Lanemark TX and TRX Series tank heaters and the FD-E, FD-C, FD-E (GA) and FD-C (GA) direct-fired oven burners. These products all boast their own range of advantages – for example the Lanemark FD-E (GA) series packaged burners offer low cost, high turn-down (gas and air) control for process air heating applications in convection ovens, dryers and spray booths where maximum combustion efficiency and minimum emissions are of prime importance. As well as its ongoing founding relationship with OILON and Lanemark, PCT is an agent for RMG. RMG is one of the leading partners in the global gas industry, specialising in the design and manufacture of quality equipment. As the sole distributor, PCT can offer clients strong competencies across the whole gas supply chain ranging from pressure regulators, control valves, safety shut off valves, and gas meters to filters. The company has also designed, built, and commissioned Metering Pressure Reducing Stations (MPRS) and high-pressure metering stations for co-generation systems and CNG stations respectively. Aside from the industrial division, PCT also created a marine boiler sales department to cover the shipyard/shipbuilding industry in its region, Today PCT is integrating

over the years, and as stated in its mission statement on www.pacific-central.com, it still has firm aspirations for development and a clear strategy established to help pursue these goals: 66 To undertake feasible projects and to complete them within the stipulated budget, time-frame and at a set level of quality so as to make profit upon completing the projects 66 To supply and delivery the products as per clients requirement and satisfaction 66 To actively participate in M&E and gas contracting and to seek business opportunities in variety of fields, to develop and maintain a reservoir of know-how and expertise in the participated field Overall, PCT has a simple aim - to be one of the leading system integrators in the combustion and energy markets. By prioritising price competitiveness, quality of workmanship, after sales support, and service, the company is ideally positioning itself for another two decades of development.

Above 2 x 17.5MW thermal oil heater system supply onboard a FPSO operating in Brazil

Pacific Central Teknik Pte Ltd pacific-central.com

Services System integrator in combustion and energy

europeanoilandgas.co.uk

the steam/hot water boiler in containerised design and supply to offshore platforms, and a spare parts department was also set up to cater for a separate group of customers: marine based companies, including shipping agents, ship owners, ship management companies, ship chandlers and so on. With this spare parts sales operation, a long list of marine spare parts suppliers located worldwide is being approached; in order to serve the complete range of spare parts required onboard vessels. The initial intention of PCT was to deal with burner sales only. But over the course of its evolution, the company has become a foremost total engineering solutions partner, consistently working hand-in-hand with its customers to provide comprehensive and customised solutions to the evolving global market. In taking the steps to achieving this goal, the business has focused on constantly boosting its expertise and experience, and creating effective engineering solutions that cater to diverse business needs. Its ambition has not wavered

Pacific Central Teknik Pte

European oil & gas

PROFILE

Remarkable

European oil & gas

europeanoilandgas.co.uk

achievements

Established in 1929

Andritz S.A.S. Andritz Separation offers reliable and efficient system solutions for solid/liquid separation based on technical expertise, engineering know-how, innovative thinking, as well as decades of experience. BAPCO was able to benefit from this expertise by purchasing a complete system for industrial membrane sludge treatment (including D-series decanters) while dealing with difficult weather conditions. Due to its proximity to the open sea, sand, saline content and warm weather, all had to be taken into account at the BAPCO refinery in Bahrain.

, the Bahrain Petroleum Company (BAPCO) was the first to discover oil in the Arabian Peninsula in 1932 and began exporting in 1934. Refining began in 1936 and the company has since helped shape the modern Kingdom of Bahrain through its wealth and the development of Bahrain’s manpower, with many of the highly skilled personnel occupying senior positions in both private and government sectors. The company boasts a 260,000 barrel per day refinery, storage facilities for over 14 million barrels, a marine terminal for its petroleum products and a marketing terminal. Approximately one-sixth of the crude refined in the Bahrain Refinery originates from the Bahrain Field, while the remainder comes from Saudi Arabia through pipelines extending 27 kilometres over land and a further 27 kilometres under the sea. Almost 90 per cent of the refined products, such as LPG, aviation jet fuel, gas oil, heavy lube distillate and fuel oil are exported into the international market. Mahdi Hassan, maintenance general manager of BAPCO, elaborates on the exporting side of the business: “Our prime

customers for crude oil and refined products are based in the Middle East, the Far East, India, South East Asia and Africa and through our JV with Neste and Nogaholding we export high quality Group III lube base oils. We also sell aviation fuel at the Bahrain International Airport through our affiliate, Bahrain Aviation Fuel Company (BAFCO), in which we are a 60 per cent share holder.” The company also provides the full requirements of natural gas to the power generating plants and other industries in Bahrain. To remain innovative and competitive in an ever-changing market, BAPCO has completed its $725 million low sulphur diesel plant, allowing the company to export ultra low sulphur diesel to countries with stringent environmental standards. “Environmental protection plays a major part in our $1 billion investment programme, which includes the commissioning of the $151 million Refinery Gas Desulphurization Plant (RGDP), and air quality has been further improved,” says Mahdi. The company is also continuing with its strategic Bapco Modernization Program (BMP), which has the primary objective of improving competitiveness through selling highquality value-added products and increasing the efficiency of the refinery in compliance with the most stringent international safety and environmental standards. The BMP is anticipated to raise the output of the refinery in the future. To ensure the skills of its workforce match modern business and technological demands BAPCO has created an ambitious human resource development programme. Spread across different levels of pre-service and in-service training, the company gives employees new and old the opportunity to gain skills and qualifications. “Every year we provide a number of local and overseas scholarships to secondary school graduates in specializations related to the oil industry, which gives us the opportunity to contribute in the development of the young Bahraini generation and also prepare a new highly skilled workforce with rare specializations to join us,” enthuses Mahdi. “We also offer a number of management and leadership programmes to prepare individuals to take up higher managerial positions within the firm.” BAPCO strives to retain its excellent reputation by continuing its compliance with the highest international safety and environmental and quality control standards. The company recently completed a successful

PROFILE

To remain innovative and competitive in an ever-changing market, BAPCO has completed its $725 million low sulphur diesel plant, allowing the company to export ultra low sulphur diesel to countries with stringent environmental standards

BAPCO bapco.net

Products Petroleum and natural gas

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quarter of 2014, the project will involve shutting down the Low Sulphur Fuel Oil (LSFO) complex, the fourth Crude Distillation Unit (4ACDU), BAPCO’s largest crude unit, and the fifth Vacuum Distillation Unit (5VDU), expected to consume in excess of one million man-hours. These shutdowns will involve more than 2,500 BAPCO and contractor personnel. With exciting new initiatives, programmes and investments within the company, the future is looking positive for BAPCO, as Mahdi concludes: “More than 80 years after company’s establishment the adventure continues for us with new ambitions in exploration, new initiatives in oil and gas field development and new global markets opening up. Our main focus for the future is completing the BAPCO Modernization Program and also looking into the replacement of the current crude pipeline, which will have the potential to deliver 350 KBPD. We will also continue to retain excellent relationships with our customers both on a local and international scale.”

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major maintenance project that involved shutting down 12 process units and interrelated facilities; one of which was the Fluid Catalytic Cracking (FCC) Complex, one of BAPCO’s oldest units that consists of five separate, but linked, process units. “The planned Turnaround and Inspection (T&I) was completed in a record time of 33 days from oil out to oil in and there were no recordable injuries in nearly 700,000 man-hours of work,” highlights Mahdi. “That is a remarkable achievement considering the congested layout of the units and the hazardous nature of shutdown work. The success of this operation was made possible by the meticulous planning and enthusiastic efforts of both BAPCO and contractor safety officers.” Following the recently completed maintenance programme, which also included the successful shut down of the fifth Crude Distillation Unit (5CDU) for a planned T&I, BAPCO is commencing with the planning and preparations for the biggest turnaround in its 80 years history. Scheduled for execution in the first

BAPCO

option European oil & gas

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The ideal

The acquisition of Romfor International Ltd by Eurasia Drilling Company Ltd (EDC) in July 2012 represents a fundamental new step in the evolution of the Romanian Drilling Company. Romania’s drilling contractors were first nationalised by the government sometime before 1956 to create a drilling trust, which then split in 1983 with one part taking on the Romfor name. Almost a decade later this business was incorporated as a public company with the government retaining around 25 per cent of the shares, which in turn were purchased by Romfor International in 1998. As Romfor International the company expanded outside its traditional market to take on contracts across the globe in areas such as Gabon and Congo in Africa, and then in later years Iraq. “It was since being in Iraq that EDC approached us about purchasing the company,” elaborates senior vice president Jennifer Breckon. “EDC Romfor, as we are now known, is EDC’s first venture outside of Russia operating solely in the Kurdistan region of Iraq. “This acquisition has been very good for the business as Kurdistan is growing at present, requiring more rigs as evident by the tenders coming out. However many of the current players have a lack of capital from the market to make these purchases. EDC brings with it a healthy bank balance and they plan on investing in Kurdistan with both infrastructure and new technology,” she adds. This is already becoming apparent with EDC

Romfor having recently purchased a new ‘cyber’ rig from NOV, which is currently on contract for Marathon. This is NOV’s Ideal rig concept combined with the Amphion drilling control system and Cyberbase operator stations in order to increase atomization and minimise the more dangerous jobs on the rig. “We chose this rig in particular as the Ideal range is very well known and trusted in the market, and likewise the Amphion system is used on a lot of rig assets. We had in mind that we needed something that was technologically advanced, but at the same time simple and proven, which is the great thing about this system,” highlights Jennifer. She continues: “The rig is a 1500 hp model, and although a lot of tenders in the Kurdistan region are for 2000 hp rigs when

expansion is also at the heart of EDC Romfor’s strategy for the other parts of the business. “We would like to purchase another one or two 1500 hp rigs for the Kurdish region over the course of the year and have those up and running. This is dependent upon government approval of projects. It is our aspiration to be a very well established name in Kurdistan for having stateof-the-art rigs tailored to that environment, and a strong reputation for safety and good local relationships. EDC Romfor is a pure play drilling contractor with out distractions of other product lines,” concludes Jennifer.

The great thing about this rig setup is that it reduces the number of people you actually physically need operating on the rig floor and therefore increases safety

EDC Romfor edcromfor.com

Services Contract drilling

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you look at the depths they are going to really a 1500 hp one can do the job. We strongly believe that once operators have made their finds and begin developing their fields with an awareness of the geology below, they’ll start taking on more 1500 hp rigs. Another aspect of this decision is the fact that NOV currently pre-fabricates the rigs which means you can take delivery fairly quickly, and that you can get a fleet of identical assets. This means that all the spare parts are the same for example, and the drill components are interchangeable.” From EDC Romfor’s perspective this has enabled the business to hire a number of experienced hands that have previously worked with this rig type to assist in training. “The great thing about this rig set-up is that it reduces the number of people you actually physically need operating on the rig floor and therefore increases safety. At the same time by having less need for people on the ground we can focus on training people in the new technology. We have hired a lot of locals for this particular rig in the hope that one day we will be able to operate with a fully Kurdish crew,” notes Jennifer. As the first drilling contractor in Kurdistan, EDC Romfor has amassed a huge network of local support, which it can draw upon to help its clients find solutions to their specific challenges. Likewise the company is attuned to the huge wealth of opportunity the region offers. “There have been some amazing finds with large volumes of oil and gas so we’re very positive about what lies ahead,” enthuses Jennifer. “At present we don’t have a single idle rig in the fleet, with assets operating across the country for several different clients. Previously a lot of this activity was concentrated in one part of Kurdistan, but now we’ve seen a major shift into the Erbil province so we’ve purchased a workshop locally and are building a new office as well. Further on we plan to buy another yard in Erbil to house rigs for full inspection,” she continues. With the backing of its new parent company,

EDC Romfor

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InterMoor InterMoor, an Acteon company, is the leading global mooring, foundations and subsea services company, providing innovative solutions for rig moves, mooring services and offshore operations including engineering, survey and positioning, and subsea installation. IOS became part of InterMoor in 2010 and comes with over 25 years of experience. IOS InterMoor is servicing Ross Offshore and the Norway market from three bases in the country and is in the process of opening another one in Hammerfest.

Over the last 12 months leading consultancy, engineering and project management services provider Ross Offshore has expanded its business and gained more contracts. Reborn in 2011 from a merger between Odfjell Well Management, with a 40 per cent cut, and the former manifestation of the firm, Subsea Technology Group, with 40 per cent, and the minority held by shareholders and management; Ross Offshore has a unique blend of industrial and financial ownership that drives the performance of the company through direction, support and expertise. Reaping the benefits of the oil and gas boom, Ross Offshore AS has recently been awarded contracts with Statoil, Detnorske, E.ON, Wintershall, Repsol and Tullow. “We have been busy. Statoil is our main contract for the moment and this is a total well management contract where everything is done in our offices; we have found that Statoil is using well management to increase its capacity, which is very positive,” says Ulf Vegard Jensen, COO at Ross Offshore. The contract has an estimated value of NOK 200 million – NOK 350 million for the first two years, with the option of two more two-year contracts. It is a significant deal for Ross Offshore, as it adds to an already existing positive working relationship between the two companies. Keen to find solutions to the biggest challenges, Ross Offshore completed a trenching project in the North Sea in Autumn 2012, a first on the

Norwegian Continental shelf. Following this, the company will soon be working for the Borgland Dolphin Consortium operators, which is set to start in Q1 2014. Continuous operations are anticipated to last until 2017. Major projects such as these bring Ross Offshore closer towards its long-term goals in expanding and will also help further develop the company’s young, dynamic team of personnel through hands-on experience. The company offers interesting starting positions to young graduates, giving them exposure to a lot of areas and various different professions early in their career. Giving the graduates a multidisciplinary exposure gives them a boost in their careers, something that Ross’ seasoned personnel are proud about as it achieves an old school/new school mix to get young candidates up to speed quickly. Being a relatively small company, with approximately 250 working for it, Ross Offshore can offer a more hands-on experience and increased opportunities for personnel to develop their competencies in a structured manner. A key focus for the company in 2013 is to secure rig operations for management, as Ulf explains: “Our young engineers are keen to be exposed to the real thing, which should include drilling activities on the rig as well as planning and engineering activities, otherwise the job will not be as attractive. We want them to follow a rig project from beginning to end and have that opportunity to develop.” An ongoing challenge in the offshore industry is resourcing employees with a high education or with the right experience and skills, due to need

currently outweighing availability in a highly competitive market. To attract and retain staff the company has focused on being competent through flexibility, smart utilisation of resources and offering an excellent work environment to its engineers, as Ulf highlights: “We attract people to the company all the time and have been successful in keeping the turnover to a minimum. To do that, we focus on flexibility within the work environment, utilising state-of-the-art equipment and online collaboration solutions that make it possible to perform the work wherever and

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Upstream

Ross Offshore

European oil & gas

PROFILE

European oil & gas

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PROFILE

Ross Offshore

whenever necessary. This gives our clients and personnel satisfaction when performing quickly and efficiently from any location. In addition to having created a positive and good working environment, we also have a very good off work programme, called ‘Ross Welfare’, which has trips, gatherings, and other social activities so that people are interested in working for us instead of going to an operator as an employee or consultant. With us our employees get more than just pay.” Consistent in its delivery to customers, Ross Offshore offers a total solution in-house from its premises in Stavanger, Bergen, Sandefjord and Oslo, but this can in some cases, cause challenges with newer customers who may want the Ross back-office staff in their offices, as Ulf explains: “We have to convince clients frequently, by showing that it is beneficial all round for us to have our personnel in our premises and working as one large team with senior staff in the teams performing daily QA and QC tasks. This results in a higher quality product that is produced in a shorter time frame and at a lower cost.” This way of finding

solutions for customers is showing positive results and Ross Offshore is confident that over time more companies will reap these benefits. Currently offering four main business streams, Well Management, Resources (consultancy), Subsurface (Reservoir and Petroleum Technology) and Logistic and Marine Management, to operators on the Norwegian Continental Shelf, the firm has a long-term vision to become an international service provider and is evaluating its options further afield. “We are pre-qualified to bid for work for several projects internationally, but the market is very good in Norway at the moment, so it will be a matter of choosing the right opportunities as we go ahead,” says Ulf. “Overall our focus is to expand the value chain and become a natural part of the operators’ tool box. Securing work that promotes organisational learning and individual development is essential. The resource availability is challenging in Norway, as for any other region, and we believe our way of delivering services, requiring less capacity within the E&P companies, is the solution for many,” Ulf concludes.

Ross Offshore AS rossoffshore.no

Services Consultancy, project management and engineering

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from exploration to end user

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from exploration to end user

Schofield Publishing Ltd 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 Editor Matt High mhigh@schofieldpublishing.co.uk Sales Manager Rob Wagner rwagner@schofieldpublishing.co.uk