European Oil and Gas Issue 103 Early Edition by Finelight Media Group

issue 103 ď ˇ EARLY

oil&gas european

europeanoilandgas.co.uk f r o m e x p l o r a t i o n t o e n d u s e r

Achieving Fast-reacting, flexible energy sources can ensure security of supply

Risky business Pursuing investments and managing corruption risks Watch your waste The importance of treating wastewater from fracking

this ISSUE: The challenges of noise control

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 Business Development Manager Mark Cawston Research Managers Natalie Martin Ben Richell 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.

Over the

coming years the energy sector is set to change, particularly as we continue with the drive to decarbonise our supply and ensure that renewable energies such as wind and solar account for a greater share of many European countries’ energy mix. While this will undoubtedly help us meet the ever more stringent environmental regulations, the increased use of renewable energies brings its own challenges in relation to security of supply, affordability and sustainability. The problem is that renewable energy can fluctuate – it is, in many cases dependent on the weather after all. It’s this consideration that has led operators to look to the development of fast-reacting and flexible back up energy sources that can ensure a secure, balanced grid, which is addressed in our lead feature this issue. We speak with Melle Kruisdijk of Wärtsilä, who believes that gas-fired generation from flexible and efficient gas plants could be the answer. As ever in the oil and gas industry, one of the main hurdles at present is overcoming the regulatory and financial challenges of bringing such technology to market. Whatever your opinions on Europe’s future energy mix, as Melle says: “Ultimately we have to see change so that we can create a balanced, secure and effective energy mix for the future.”

“In fact, it is estimated that by 2050 CCS could reduce CO2 emissions by 0.6 billion tonnes in the EU and by nine to 16 billion tonnes worldwide

editors Libbie Hammond & matt high

europeanoilandgas.co.uk

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

Ultimately we have to see change so that we can create a balanced, secure and effective energy mix for the future”

European oil & gas

Managing Editor Libbie Hammond libbie@schofieldpublishing.co.uk Editor Matt High mhigh@schofieldpublishing.co.uk Staff Writers Jo Cooper Drew Dann Steve Nash Editorial Administrator Emma Harris

Regulars

Lead feature

Fast-reacting, flexible energy sources can ensure security of supply

Big data and its challenges in oil and gas projects and organisations

News

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

Lead feature

HSE

Pursuing investments and managing corruption risk in Latin America

The importance of treating wastewater from fracking operations

The operational and reputation challenges of noise control in E&P

Technology

European oil & gas

europeanoilandgas.co.uk

Profiles

22 NIS Gazprom Neft 28 Offshore Energy 2013 - Conbit 30 Tideland Signal 32 Poole Process Equipment 34 Magyar Fรถldgรกztรกrolรณ Zrt 37 TESS 39 GPT 42 VerdErg Connectors 44 Aalborg CSP 47 TSC Offshore 49 Energinet.dk

12 42

18 49

Contents

52 Palfinger Ned-Deck/Fast RSQ 54 Preem 57 Rodoverken 59 Feoso Malaysia 62 BHDT 64 Awilco LNG 66 Innovative Input 57 68 Duiker Combustion Engineers

73 DanCopter 75 WEC Engineers & Constructors 78 Floatel 80 IHC Motion Control 83 SAL Heavy Lift 86 OHT 83 88 ARCA Regler 90 Mellish Engineering Services 92 Lankhorst Ropes 95 Leni Gas and Oil 97 PV Drilling 101 Audex Pte

70 Oil States 68

101

European oil & gas

70 Oil States Skagit Smatco

europeanoilandgas.co.uk

European oil & gas

europeanoilandgas.co.uk

Achieving

Melle Kruisdijk of Wärtsilä Power Plants discusses the importance of fast-reacting, flexible energy sources for ensuring security of supply

Below Melle Kruisdijk, director of market development at Wärtsilä Power Plants

here is little doubt that the energy sector is set to change in the future, particularly with the rise in demand for ensuring that renewable energies, such as wind and solar, account for a greater share of many European countries’ overall energy mix. The increased use of renewable energy, which brings its own challenges and raises issues around security of supply, affordability and environmental sustainability, means that utilities and system operators are looking towards fast-reacting and flexible backup energy sources to ensure a secure, balanced grid that can meet customer demand. This is highly likely to come in the form of gas-fired generation from flexible and efficient gas plants that are capable of providing power in the event of fluctuations in renewable energy. Gas-fired plants are seen as the preferred

method of meeting this challenge over more traditional, or ‘inflexible’ forms of power generation like coal-fired plants or conventional CCGTs, which usually operate at baseload only. European Oil and Gas Magazine recently discussed the recent developments within the new gas-fired plant market, as well as some of the potential regulatory challenges, with Melle Kruisdijk, director of market development responsible for leading market development activities in Europe, at Wärtsilä Power Plants, the global leader in Smart Power Generation. Wärtsilä sees Smart Power Generation as enabling the transition to a modern, sustainable power system due to its high efficiency, excellent operational flexibility, and multi-fuel capability. This technology has been developed by the business to provide a unique combination of features that will allow new horizons for sustainable, reliable and affordable power systems of the future.

European oil & gas

europeanoilandgas.co.uk

Lead one

In order to highlight the importance of these developments, as well as illustrate the benefits of gas-fired plants in bringing the necessary flexibility to the grid, Wärtsilä recently commissioned a study by Imperial College London and Redpoint Energy, a specialist energy consultancy, to investigate the savings that could be made in the market in the foreseeable future. The study indicated a number of positives, including that a saving of £380 million to £550 million per annum could be achieved from 2020, depending on the wind sector. Furthermore, it was highlighted that these figures can rise to as high as £1.5 billion per annum in 2030 if renewable energy generation becomes a key contributor to the UK’s energy mix. “In Europe in recent years we have seen a considerable focus on decarbonising the electricity sector to lower CO2 emissions, as well as a concentration on and support for

the development of renewable energy sources, the use of which has grown considerably,” Melle explained. “This has an affect on the residual part of the power generation sector, particularly as renewables have zero marginal running costs and thus take away a significant part of the operating hours of the rest of the generation fleet. They also bring down electricity prices in general so that the rest of the market has to deal with reduced operating hours and lower prices, and as a result many of these utilities are finding it difficult to keep plants profitable and are considering mothballing or even possibly decommissioning them. “This has led to the key challenge, in that it raises concerns around the issues of security of supply in the market,” he continued. “At present there are discussions ongoing around these themes at a European level because it is highly important that for the medium term we

europeanoilandgas.co.uk

European oil & gas

The plants that we have developed can start up from a standstill to full load within five minutes, and then go from full load to a standstill within one minute again, and you can do that numerous times daily without any risk on the equipment’s life or operational capabilities

reform the market to ensure that security of supply is still maintained. This will undoubtedly impact the medium and longer-term outlooks for gas generation, particularly in the UK and Europe.” Of course, different countries across Europe are developing their renewables programmes at different rates, with Germany in particular being a leader both in wind and in solar. “There has been some key developments, including very recently some of the larger utilities in Germany making public that they are considering closing down their gas fired generation because it is no longer profitable as a result of the growth in renewables,” Melle confirmed. “Where concerns around security of supply come into this is in the consideration that if this were to happen, then the levels or sustainability of wind power were to drop, the result will be a serious supply problem due to a lack of capacity on the grid.

“In dealing with this type of challenge it is important to distinguish between the two problems in security of supply,” he continued. “There is the longer-term problem of is there enough capacity to be able to meet peak demand? The more short-term challenge is the needed continuous balance between the inevitable fluctuations of the renewable energy sources in supply and demand, which is really where the flexibility comes in, and this what our solutions are able to address at Wärtsilä.” It’s clear from Melle’s points that the key way to meet this challenge and ensure that the issue of security of supply

significant impact in the future, which is why it is something that needs to be addressed.” While it is clear that steps are being taken to influence a change in the market, could more be done to make the markets work for flexible energy? There certainly needs to be further encouragement of the deployment of flexible energy sources and ensuring that the charges for imbalances are more cost reflective will be of high importance to create a market that values flexible energy. In order to achieve balance it will also be important for the market to be open for all participants to offer reserves of flexible energy to the system operator, while at the same time selling reserves to each other to meet their balancing needs. “The balancing arrangement will likely come into force next year,” Melle said. “There are other issues that need to be looked at however, such as capacity mechanisms in place, which could jeopardize the market signals for flexibility. It will also be important to measure the timing of these various policy measures. Firstly, the trading arrangements for balancing the power need to be addressed and improved, which will increase the investment cycle for more flexible power plants. Then it will be important to look at the specific markets for flexibility, which is a longer-term change that needs to implemented.” At present, while the measures that Melle highlights clearly need to be addressed, there is little doubt of the importance of introducing flexibility into the energy markets, and at Wärtsilä, confidence in the company’s own technology remains high. “There is a lot of industry interest, with many of the leading figures saying that this is exactly what we need,” Melle pointed out. “At present we are just faced with the frustration of the lack of investment incentives with the market not presenting a favorable rewarding system. I do however see a change looking ahead. The balancing arrangements are being addressed in the UK and in Europe and so I think that the future is positive. Ultimately we have to see change so that we can create a balanced, secure and effective energy mix for the future.”

Wärtsilä Power plants Melle Kruisdijk is director of market development at Wärtsilä Power Plants, and is responsible for leading the market development activities in Europe. He is a mechanical engineering graduate from Delft University of Technology and holds a Master in Business Administration from Berne University of Applied Science. He started his career in the energy industry in 1998 in a sales support function at Woodward Governor before joining Alstom Power in Switzerland. After holding several managerial positions in service management and strategy, he took on the position of business sales manager for new EPC turn-key Combined Cycle power plants in Europe. He joined Wärtsilä Power Plants in October 2011. For further information please visit: wartsila.com/en/power-plants/highlights

European oil & gas

is addressed moving forwards is in the implementation of fast and flexible ‘back-up’ energy sources that can be implemented quickly and efficiently when needed, and are not excessively expensive due to their sporadic operation. “Different technologies can be used to supply the flexibility that is necessary,” said Melle, “whether that is fastreacting gas plants such as those that we at Wärtsilä produce or other alternatives. Gas is well positioned to provide that flexibility because it is the most environmentally friendly conventional fuel with the least emissions, meaning that our gas plants represent an excellent opportunity.” Wärtsilä’s technology and power solutions have been developed to deliver against the principles of Smart Power Generation (SPG), which is a set of requirements that the company believes need to be delivered to enable sustainable energy. Essentially, SPG requirements encompass the need for very high energy efficiency, the need for outstanding operational flexibility, and the need for multi-fuel operation. Wärtsilä’s solutions are a form of highly flexible and efficient power plants that are based on reciprocating engines covering a capacity range of 10 to more than 500MW. “With the recent study we completed with Redpoint and Imperial College London we tried to illustrate that there are benefits of implementing SPG,” Melle added. “So, for example, we made the distinction between providing flexibility from a running/operational status to seeing what would happen if we required the same flexibility from a standstill position - and that is where our reciprocating engines come in to play. The plants that we have developed can start up from a standstill to full load within five minutes, and then go from full load to a standstill within one minute again, and you can do that numerous times daily without any risk on the equipment’s life or operational capabilities. “Taking that into consideration then there are real advantages of implementing this type of flexibility. These plants are not running when they are not needed but they offer added value to operators in that they can provide the reserve flexibility that is needed to deal with any fluctuations that occur on the grid, and at the same time, when they are not running they are not taking any space on the grid that can be used by renewables. We were amazed by the results of the study, which we found very beneficial. The figures were really quite significant, which leads us to the ultimate question of why is no one investing in this technology yet?” Unfortunately, there are still challenges in implementing this technology, as the positive investment market does not yet exist. “For the plant owner in the current market conditions, implementing our systems bring a very limited revenue stream, and that is where the challenges in investment lie. At present the problem lies in that there are no incentives to invest in this technology because the flexibility that the equipment can bring to the grid is not rewarded by any trading arrangements,” said Melle. “It hasn’t been a problem so far because the amount of renewable energy currently in the grid is limited, but it could have a

europeanoilandgas.co.uk

Lead one

Big

European oil & gas

europeanoilandgas.co.uk

challenges 8

Laura Shephard, of DataDirect Networks, discusses Big Data in oil and gas projects and organisations

ompanies engaged in oil and gas exploration recognise the true value of speed and precision, with tens of billions of pounds being invested in new gas and oil development projects. With this much money at stake, there is no room for anything but the most accurate information on where to drill, how much to bid on a site and how to apply the most sophisticated modeling and simulation technology to maximise reservoir performance. There are two fundamental ways in which oil and gas companies are pushing the boundaries of scientific discovery. The first of these areas is higher-resolution capture methods, such as wide azimuth (WAZ), which uses a multisensor array to produce a higher-fidelity image, as well as newer approaches, such as multi-azimuth (MAZ) or rich azimuth (RAZ). The second area where oil and gas companies are pushing the boundaries of scientific research is in constant algorithmic evolution. Incorporating new analytics that allow for continued advancement in the interpretation of seismic data both for new data coming in and also for historical oil fields. By stretching the boundaries of scientific discovery, companies engaged in seismic exploration and processing are also pushing the limits of their underlying technology infrastructures. With the transition to these new formats outlined above, ‘single file sizes in excess of 100TBs are not uncommon, and this data must be ingested before it can be analysed’1. According to Intersect360 Research, a market intelligence company specialising in high performance computing, “If there is a downside to the transition to these richer formats, it is in the vast increases in data sizes that companies must manage.”

One supercomputing class oil company summarised this as follows: “Before we go out into the field and contract with a company specialising in seismic data, we model the data in our computers… We’ve got a project that we’ve previously computed and moved the data off to tape, and there is about 115TB of data that we’re moving onto the spinning disk to do further analysis…” The push for constant advances in algorithms puts even more pressure on the storage infrastructure to handle highvolume and high-density data. The oil and gas companies engaged in seismic processing can be much more precise in their discoveries if they can process larger data sets in shorter periods of time, so they can conduct a greater number of simulations within a specified time-frame. In addition, another major change in seismic processing, which is also pushing the limits of data storage, is the use of pre-stack data in routine seismic interpretation and characterisation workflows. With pre-stack processing, organisations can use the entire seismic data set to create clearer understandings of earth models. This can help organisations make better business decisions in a much shorter time frame, but it puts a huge amount of pressure on the storage infrastructure. With pre-stack, “the storage requirements jump a hundred-fold and with that the stress on just about every component in the data chain: loading, storing, referencing and, most importantly, feeding to the computation/visualisation node of vast, randomly searched data samples in untold amounts,” according to an article in First Break2. With pre-stack processing, organisations can use the entire seismic data set to create clever understandings of earth models. Not only does this help organisations make better business decisions in a much shorter timeframe, but also it puts a huge amount of pressure on the storage infrastructure. The storage challenges faced by the oil and gas companies

1. Data Discovery: DDN Solutions for Seismic Processing, By Addison Snell, Intersect360 Research, September 2012 2. Intersect360 Research HPC market advisory service, “HPC user site census: Primary Applications at HPTC Sites”, August, 2011

DataDirect Networks Laura Shephard is director of HPC and Life Sciences Marketing at DataDirect Networks, the world’s largest, privately-held data storage infrastructure provider. The company has a unique focus on the requirements of today’s massive unstructured data generators, which has enabled it to develop a comprehensive product portfolio for big data applications that are optimised for the world’s most dataintensive environments. For further information please visit: ddn.com

European oil & gas

engaged in seismic exploration and production are in many ways unique to their specific requirements, but are in other ways, somewhat representative of what other industries are experiencing in the push towards analysing vast amounts of data – often referred to as big data. Big data has been described by McKinsey & Company as “the next frontier for innovation, competition and productivity.” The research firm IDC has characterised big data as one of the four pillars of computing’s next dominant platform, along with cloud computing, social networking and mobility. Gartner has defined big data as a term to describe “extreme information management and processing issues that exceed the capability of traditional technology along one or multiple dimensions to support the use of information assets.” This characterisation certainly fits the challenges faced in seismic processing, in particular, the growing volume of data, and the speed at which it must be processed and analysed. Inputs Outputs per Second (IOPS), a common performance measurement used to benchmark computer storage devices, is a major challenge for oil and gas companies and their big data workflows, and similarly storage capacity and I/O bandwidth are often cited as the two most important storage attributes for big data applications. In upstream oil and gas applications like processing, high performance for both IOPs and bandwidth are critical to the speed of the overall workflow, and this means storage can become the biggest bottleneck in the race to discovery. High-performance storage solutions, such as those from DataDirect Networks (DDN), must be designed to meet the most pressing storage challenges of the seismic processing, namely: capacity, speed, performance and scalability. DDN | SFA12K™ combines SATA, SAS and solid-state disks into a simply managed, massively scalable, multi-

petabyte platform that can be tailored to a balance of throughput and capacity. Data resides on the optimal disk technology, according to priority and access pattern, while the system sets the appropriate RAID level to maximise performance and cost-effectiveness. In the background, the system performs multiple levels of parity generation and realtime data integrity verification and error correction without impacting application performance. The SFA12K is capable of 40GB/second of throughput for both reads and writes, 1.4 million disk IOPS and 1.7 million cached IOPS. The combination of modularity and performance feature allows users in seismic processing environments to configure systems that meet current and foreseeable size and performance needs. There is no doubt that the leaders in the oil and gas industry will continue pushing the envelope for any competitive advantage in their quest to discover and manage the richest and most profitable reservoirs. It should be no surprise that, of all vertical markets in high performance technical computing, it is the oil and gas companies that have the highest overall rate of internal software usage – programmes and algorithms that are developed in house2. Better technology yields better information and better information yields better results. The shift to higher resolution capture methods, the constant evolution of algorithms and the increased use of pre-stack data are drivers of breakthrough discoveries, and drivers of dramatic changes in the requirements demanded from the underlying storage infrastructure. Storage solutions must be designed to deliver on the speed, precision, capacity, scalability and performance required for oil and gas companies to achieve both their scientific goals and their long-term business goals. DDN has been able to consistently deliver on all of these measures to some of the world’s largest national, major and independent energy companies and we are proud of our role in working with partners and customers in seismic exploration and production to push the boundaries of discovery.

europeanoilandgas.co.uk

Above: (l-r) Frederic Delormel, executive vice president and chief operating officer subsea, and Bill Morrice, UK managing director

europeanoilandgas.co.uk

Building for future Technip, world leader in project management, engineering and construction for the energy industry, has opened its brand new purposebuilt UK subsea headquarters in Westhill, on the outskirts of Aberdeen. Reinforcing the company’s

European oil & gas

long-term commitment to serving the North Sea market, this new

Technip’s people, a key priority for

site brings much of the company’s 1200-strong workforce together onto one site and aims at improving the quality of facilities for employees, which supports the development of the Group. This £15 million redevelopment project saw the construction of a 60,000 sq ft building and one and a half storey car park to replace existing buildings on the site. Bill Morrice, managing director of Technip’s UK operating centre, said: “The development of our Westhill site comes at an extremely positive time for the company. Providing these new facilities is an important step for us as we aim to ensure we continue to be in the best possible position to meet our clients’ developing needs, both now and in the future. People are central to Technip’s success and the investment in a new purpose-built site reinforces the company’s long-term connection of over 40 years with Westhill and its commitment to the North Sea market.”

Above: CNR International’s Murchison platform, which faces decommissioning

Important training Decommissioning industry body Decom North Sea (DNS) is launching a new training course to give an overview of the increasingly important sector. With decommissioning spend forecast to be around £1 billion a year for decades to come and the Government recently announcing changes to bring more stability to the sector, increased employee numbers will be needed to maximise the opportunities on offer to the supply chain. As a result, DNS is to start holding two-day training courses in key locations across the UK to give an overview of the activity involved with offshore decommissioning, how it is currently undertaken and what the future could look like. The first is taking place in Aberdeen on November 20th and 21st, with further courses to be scheduled for next year. These are the first training courses to be offered by DNS and are aimed at anyone working in, connected to or with an interest in decommissioning, including operators, contractors, regulators and the financial services sector. DNS director Callum Falconer, said: “Decom North Sea has now established a clear strategy in delivering value to its members, and this offering is aligned to this strategy. We believe these courses will increase knowledge of decommissioning and create a common understanding across our industry that will be of significant benefit to people working within our sector.”

Consult the experts Statoil has awarded a major frame agreement for drilling and well technology consultancy manpower to AGR Consultancy in Norway. Starting in January 2014, the agreement mainly covers Statoil’s operations in Norway, but the services may be performed globally. The five-year contract has extension options, which could see it extend to ten years in total. Based in Stavanger, the Norwegian AGR Consultancy team, part of global oil and gas service provider AGR, has grown considerably in recent years and is aiming for further growth under new manager Thomas Veseth Saue. As well as Norway, AGR Consultancy has teams in Aberdeen, Perth and Houston, and associated offices in all the main oil hubs around the world. Welcoming the latest contract win, Sjur Talstad, AGR’s executive vice president Norway and Russia, said: “We currently have a contract with Statoil for consultancy services and the company’s renewal of the agreement demonstrates how satisfied they have been with the quality of our consultants. “AGR has placed consultants for more than 180 clients in over 100 locations. What gives AGR Consultancy the advantage in this competitive market is being a business division within AGR, with its unrivalled expertise in well, reservoir and facilities engineering.”

News

Above: Proserv chief executive, David Lamont (right), receives Private Equity Backed Business Entrepreneur of the Year Award from Mark Sesnan, managing director of GLL

The chief executive of rapidly growing energy technology services company Proserv has scooped the award for

Subsea specialist ROVOP has appointed a finance director to further strengthen the company’s position for future growth. Alan Shanks takes up the post and also joins ROVOP’s board of directors, bringing extensive experience in successfully facilitating and managing strategic business expansion from a financial perspective. Previously financial director for subsea oil and gas group, Harkand ISS, Alan’s track record also includes considerable experience of working with owner managed and private equity backed businesses to help drive forward growth. Steven Gray, managing director at ROVOP, said Alan further strengthened the management team at the independent company, which focuses exclusively on providing remotely operated vehicle (ROV) services for the oil and gas and offshore wind markets. He said: “ROVOP has experienced exceptional growth since it was established and Alan joins at a time when the company enters an exciting new chapter. We are particularly pleased to have attracted someone of Alan’s caliber because his great depth of knowledge, both at an industry and corporate level, will be pivotal to helping ROVOP further build on its growth.” Alan added: “I’m joining an experienced and knowledgeable team. Their notable achievements and dynamic nature makes ROVOP an attractive company to work with and I look forward to playing a role in future successes.”

Private Equity Backed Business in the

Reaching new depths

and production, drilling, and

Churchill Drilling Tools, the provider of reliable and easy to use systems for the drilling and completions markets, has announced the deployment of its dart activated DAV MX™ circulating valve at a record measured depth of 26,012ft. Churchill’s DAV MX and its Smart Dart™ activation technology were deployed at the record depth in a development well off Louisiana in the Gulf of Mexico. Enabling rapid and assured reamer bypass in a sidetrack operation, the application exploited the deepwater capability of the Smart Dart to withstand both rapid delivery speeds and high temperature and pressure variations. Using its multi-cycle capability, bypass deactivation was equally simple and assured as the assembly was pulled from hole. This proved the capability of the system to give the operator total control over both the fluid path directions and the drilling equipment whilst maintaining the well control flow-rate objectives set out in the programme. The DAV MX is used globally across a range of drilling environments including deepwater, high-pressure, high-temperature (HPHT) and high-angle extended reach drilling. The Mechanical Extrusion system is significantly more reliable, faster and more cost effective than polymer extrusion, the process used for traditional ball-activated systems. The system’s previous record deployment exceeded 16,000ft in a well West of Shetland.

exceptional growth over the past 12

EY UK Entrepreneur of the Year 2013 awards. David Lamont was praised for the company’s impressive acquisition strategy, its geographical reach and the opportunities for further expansion. Mr Lamont reached the UK final after winning the Scottish Entrepreneur of the Year title in June. At the Scottish awards he had been recognised for moulding “a phenomenal business of a truly global nature”. Proserv, which is headquartered in Westhill, Aberdeenshire, has fast emerged as a leading industry specialist in exploration infrastructure technical solutions and services to the global energy industry. The company has experienced months particularly in the subsea services sector. Mr Lamont said: “This award is a tribute to the hard work and dedication of everyone at Proserv, indeed we believe it is the Proserv people and the way we work as a team that is the single greatest reason for our success and bright future. While I am very proud of this award and what Proserv has achieved over the last few years, I am most excited about what the future holds for us and ensuring we deliver on our very considerable potential.”

europeanoilandgas.co.uk

Strengthened team

Award winning business

European oil & gas

Above: Alan Shanks, newly appointed finance director at ROVOP

Risky European oil & gas

europeanoilandgas.co.uk

business

Tony Duthie and Rik Workman of Forensic Risk Alliance, on pursuing investments and managing corruption risks in Latin America

s Europe economically stagnates, or at best returns to anaemic growth, Latin America, along with other emerging markets, continues to become an increasingly attractive investment destination. With an abundance of natural resources, low cost labour and growing populations (and middle classes) seeking improved living standards, international businesses have expanded their footprint. But is the level of governance and transparency, so increasingly important to investors and regulators, in the Latin American private and public sectors developing at an equally rapid rate? The most recent Transparency International CPI report on the perception of public sector corruption suggests not. Whilst TI placed more than half of the Latin America countries in the top half of its Index only three countries - Chile, Uruguay and Costa Rica – were attributed a score of above 50. Indeed, whilst this may suggest a degree of progress, the Index also found that two thirds of America’s countries scored below 50, that is they were perceived to be more corrupt than not. Removing the US and Canada from this grouping, the picture of Latin America is even worse.

In recent years, international law enforcement, led of course by the US, has prosecuted many international businesses and businessmen involved in bribery in Latin America. The prosecutions of Alcatel-Lucent, Siemens, Biomet, ABB and Pride International span an array of industrial sectors and numerous Latin American countries. The penalties of some $800m imposed by the US DoJ and the SEC against Siemens still rank as number one in its FCPA enforcement (Foreign Corrupt Practices Act) efforts. In Latin America, Siemens paid bribes to public officials in Venezuela through sham consulting agreements with local ‘fixers’ in connection with transport infrastructure, used shell companies and middlemen in Argentina and is still being investigated in Mexico regarding allegations surrounding bribes paid to officials of PEMEX, the National Oil Company. The US FCPA medical devices investigation prosecuted Biomet for paying bribes to doctors in Argentina and Brazil to recommend and purchase its products, a practice that has been widespread for years. In Mexico, ABB used fictitious invoices and gave a Ferrari and a yacht to local officials. In Argentina, one medical device case had the perverse scenario of bribes being discovered by the tax police, yet instead of prosecution, the doctors were simply asked to pay tax on their illegal earnings. In today’s world of global business comes expanded global enforcement and co-operation. Anti-corruption authorities

European oil & gas

europeanoilandgas.co.uk

Lead two

are sharing information and intelligence on an increasing scale as the OECD and the US look to help emerging countries improve their own national enforcement capabilities. Furthermore, international development agencies such as the World Bank are also vigorously investigating corruption allegations linked to the projects it finances. Siemens itself was debarred – or voluntarily agreed – from bidding on World Bank projects for two years. Articles such as this require by definition sweeping generalisations and as such need to be appropriately caveated – recognising the geographical, economic and political diversity in the continent and indeed within the countries themselves, we thought we should highlight some relevant themes as regards some key Latin American oil and gas markets, as well as some more general trends in the natural resources sector.

Democratisation Similar to many other countries in Asia and West Africa in particular, greater freedom of information as well as growing middle classes, have led to an to increasing ‘democratisation’ and scrutiny – evidenced both in the media (especially social but also print and TV) as well as in the polling booth. This in turn has led to changes in elected governments, increased accountability, retrospective scrutiny and demands for reform. For example, in Brazil the street protests in June during the globally televised FIFA Confederations Cup, the dress rehearsal for the 2014 World Cup, were transmitted all around the world. What started off as a protest against increases in bus fares quickly turned into a wider protest

europeanoilandgas.co.uk

European oil & gas

against the government, the poor quality of public services and public sector corruption, which despite Brazil’s economic growth over the past decade, remains high at all levels of government and is particularly entrenched in respect of certain areas (e.g. customs, certain municipalities, police and the military). As a result, and in unprecedentedly short time for the Brazilian Congress, a new anti-corruption legislation law was passed that, for the first time, will make businesses vicariously liable for the bribes paid by their employees to either Brazilian public officials or foreign public officials. This new legislation follows pressure from the OECD and its 2007 peer review of its then existing laws. When enacted, the key to the commitment to root out public sector corruption will be measured against what it always has been, namely enforcement. Similarly the revelations around the mensalao scandal, where millions of dollars were paid in bribes to members of Congress, 25 of whom were convicted in 2012 including chief of staff Jose Dirceu to former President da Silva, points to greater transparency, accountability and critically enforcement – especially in the context of changes in Government. What is also interesting is the direct impact that this ‘democratisation’ can have on both inward and outward foreign investment. For example, in Guinea, Vale, the giant Brazilian mining group which acquired its stake in the Simandou mountain project from Beny Steinmetz Group Resources, has put the iron ore project on hold in light of the recently and democratically-elected Guinean government’s review of the award of the original licences and mining rights.

Nationalisation There are several examples of asset expropriations in Latin America. Most recently Argentina and Repsol, and historically Venezuela has been a noticeable recidivist. Typically the motivation is politically driven resource nationalism with contractual breaches and corruption allegations providing the justification. However, Latin America’s dilemma is an ongoing need for international investment, perhaps best demonstrated by Argentina’s recent ‘partial U-turn’ and its current Pemex backed efforts to re-attract Repsol’s millions by offering it a stake in Argentina’s shale formation. Certainly as regards Venezuela, there is too much oil and gas in the county for international investors to stay away permanently. Whilst the source of overseas investment during the Chavez years for the most part moved away from western partners, ventures with Russia and China in particular, grew. Ventures with Gazprom and CNPC have been established and even Chevron has re-invested. Venezuela remains an investment destination despite it remaining stubbornly perceived as one of the most corrupt countries in which to do business (it ranks as the most corrupt Latin American country – TI’s Index placed it 165 out of 176 scoring only 19 out of 100). Investors with sufficiently robust pre-investment due

diligence procedures and operational controls (which we discuss further below) are able to operate in these higher risk locations for appropriately higher returns. The key is to have sufficient and well-documented pre-investment due diligence to mitigate these corruption risks before they crystallise. It is also key to be able to walk away from an investment if this cannot be achieved and demonstrate a track record of doing so. This is further the case for investment structures that include multilateral and/or commercial political risk insurance mitigations. It is key to ensure the preinvestment DD can address fraud and corruption risks as any subsequent allegations and evidence of such risks can render policies null and void. We are also beginning to see examples where such allegations are being used by states to try to strike out their obligations under relevant Bilateral Investment Treaty arbitrations.

‘Operational’ corruption Day to day graft, extortion, bribery or facilitation payments are endemic – recent FCPA prosecutions and investigations in the oil and gas sectors have touched on Brazil, Argentina, Colombia, Venezuela and Mexico as mentioned above. Typical touch points in natural resources include customs, tax, local government and industry bodies (permitting and planning permissions etc.), environmental agencies, trade unions etc. The risks here are unlikely to threaten the viability of an investment (although not always the case) but expose the company to potentially extremely costly investigation risks – costly in terms of fees to external lawyers and forensic accountants as well as management time and supply chain impact. The drive for local content often requires the extensive use of local vendors and investors, which can heighten the risks. A good example of these operational risks can be seen in the numerous Panalpina related investigations and prosecutions, which touched on a number of countries globally including Brazil. The allegations surrounded customs clearance processes and bribes to expedite or avoid altogether cumbersome procedures – around for example customs assessment, temporary importations, pre-clearance regimes etc. The impact the investigations had on the logistics and in-country operations of the oil services companies cannot be understated. In addition, the companies that used Panalpina paid out very significant fines and investigation costs. Various risks exist in direct or indirect interactions with public officials. Managing these risks can only be effectively done by carrying out iterative risk assessments, transactional testing and implementing effective controls within key operations (e.g. logistics, tax, employment, CSR etc.) to prevent red flags from arising before they are contracted for, accounting to prevent payment in the event a red flag is spotted after the event and within compliance and internal audit – to prevent systemic red flags.

Lead two

European oil & gas

Corruption risks in Latin American remain high partly due to the endemic corruption within certain entities and offices but increasingly due to the local, international and multilateral regulatory enforcement regimes. This is true in Latin America and elsewhere (e.g. GSK and China). Dealings with public officials and entities must be highly transparent both pre-investment as well as throughout the operational phases. Senior legal and compliance oversight is a constant requirement. With close oversight in the early years of an investment, the culture and practices of local employees can be directed towards a system where incidents or concerns over bribery can be caught at the earliest possible opportunity. No system is perfect, and an on-going confidential whistleblower process in which local employees have faith, can greatly help a business operate to its highest compliance standards. A compliance driven culture allows companies to pursue higher risk and higher return investments. It underpins the value of the investment and protects investors from financial and personal risk. Given the typical value, profile and economic lifecycle of natural resource investments, businesses need to address and mitigate corruption risks up front and over time. Furthermore, as enforcement trends build momentum, it is always useful to consider how business conducted today will look a decade down the line â&#x20AC;&#x201C; bribery and corruption investigations take time and are often concluded five to ten years (or more) after the actual incident occurred â&#x20AC;&#x201C; governments change, and what was perceived as acceptable business practices a decade or more ago is seen as far from acceptable now.

europeanoilandgas.co.uk

Conclusion

Forensic Risk Alliance Toby Duthie, partner and Rik Workman, partner are from Forensic Risk Alliance, an expert provider of international eDiscovery and data forensics solutions and foreign accounting services. As a litigation consulting firm the company specialises in supporting clients facing cross-border litigation and multi-jurisdictional anti-corruption cases. For further information please visit: forensicrisk.com

waste Watch your

europeanoilandgas.co.uk

Water companies need to get more creative in their approach to the treatment of wastewater from fracking, as Richard Coulton explains

European oil & gas

Below Richard Coulton, CEO of Siltbuster Group

he recent exploitation of shale gas has dramatically increased the natural gas reserves in the US and from a consumerâ&#x20AC;&#x2122;s point of view has, in the short-term, significantly reduced energy costs. This trend now looks set to be repeated worldwide and in particular in those European countries such as the UK and Poland, where similar geological conditions exist. Like any energy source shale gas exploitation has an environmental impact, be that the effect of carbon based energy sources on global warming or localised impact during drilling and well development processes. These issues are not new and lie at the heart of the debate on how best to meet the ever-increasing worldwide demand for energy on a more sustainable basis. What is new about shale gas exploitation is that, unlike conventional oil or gas well drilling, shale gas exploitation generates a significant volume of wastewater, particularly in the short term during the well development stage and to a lesser extent throughout the operational life of the well, as well as in the long-term from limited drainage from the fractured strata (produced water). As the gas is found at great depths beneath the surface in highly compressed low permeability strata, it is necessary to artificially increase the permeability of the rock by hydraulically fracturing to allow the gas to flow into the well. Hydraulic fracturing (fracking) was first developed in the 1940s and has subsequently been used to enhance the recovery from over a million oil wells. The process is not new, it is well established. The associated risks are known and as far as possible have, based on previous experience, been managed down to an acceptable level. During the fracking process, significant amounts of fluid are pumped into the formation at high pressure to open existing fissures or develop new ones. Typically this fluid comprises 90 per cent water, around ten per cent sand (to hold the fissures

open whilst oil, gas and formation water flows into the well) and less than 0.5 per cent other additives (to keep the sand in suspension and improve fissure penetration). Once the high-pressure fracking pumps are switched off, the sand filled fissures partially close up and a proportion of the fluid flows back to the surface (flowback). Unlike conventional oil/gas wells the relatively low permeability of the shale means that a significant proportion of the fracking water flows back to the surface for either re-use or disposal. As each well is fractured in a number of short discrete lengths, the returned fluid can, with suitable treatment, be reused to fracture other sections of the well, thereby minimising the overall volume of wastewater generated. However, even with re-use, the development of each well results in the generation of a significant amount of wastewater. Water also continues to seep out of the formation during the operational life of the well, albeit at a much reduced rate. Initially its composition will be similar to the fracking fluid but will eventually revert to that of the formation water. Historically, this water was not reused and was either discharged locally or tankered away to the nearest municipal waste water treatment plant. Options that are no longer economically or environmentally acceptable. So, what are the key issues the water industry is faced with in developing a strategy for treating wastewater from the rapidly developing European shale gas industry? Different treatment strategies are required to allow the re-use of flowback water for ongoing fracking operations from those used to manage the off-site disposal of both the excess flowback water and the small volumes of production rate generated throughout the operational life of the well. During fracking on-site water treatment systems are

HSE

As the characteristics of the water generated from each gas field is different and each drilling contractor uses their own blend of additives during the fracking, the on-site treatment technology needs to be not only mobile, but also sufficiently flexible to cope with this variability. Consequently a one size fits all approach is not always viable and the water treatment system, based on a modular approach tailored to site specific chemistry, is required to provide the most effective approach in both maximising water re-use and minimising cost. To achieve this, the water treatment industry needs to: 66 Work closely with the drilling contractor to fully understand the nature of the contaminants to be removed and treated water requirements. 66 Move out of its current comfort zone of working either in the laboratory or a fixed location/permanent water

Shale gas is probably set to become a significant energy source. The challenge for the European water industry is to recognise this opportunity and develop appropriate treatment solutions for the wastewater generated.

Siltbuster Group Richard Coulton is CEO of Siltbuster Group, the UKâ&#x20AC;&#x2122;s leading authority on water treatment, wet waste and the prevention of waterborne pollution for construction sites. The business, which consists of highly experienced process engineers backed by the largest and most varied fleet of water treatment equipment in the UK, offers an unrivalled range of solutions for silt management and the prevention, control and treatment of water contamination. For further information please visit: siltbuster.com, Call 01600 772256 Email enquire@siltbuster.com

European oil & gas

required to treat the flowback water to a suitable standard for re-use without detrimental impact on the well. To achieve this, a mobile treatment solution is required to: 66 Remove suspended solids through flotation and/or clarification. 66 Reduce the concentration of scale forming constituents (such as calcium, magnesium, barium iron and manganese) by chemical precipitation. 66 Break down and remove unwanted organic compounds (such as hydrocarbons and organic based additives) by chemical/electrochemical oxidation followed by flotation/ clarification. 66 Destroy bacteria that could potentially adversely affect the performance of the wells using a combination of chemical oxidation (i.e. by the use of chlorine, ozone, etc.), UV sterilisation or the addition of biocides.

The requirements for off-site disposal of excess flowback and production waters are dictated by the ultimate need to release this water back into the environment without causing harm. In the US the most common method of disposal is to pump the water back deep underground via injection wells into suitably isolated geological strata, where the natural ground water is similar to that of the wastewater. However, such an approach is likely to be less acceptable in Europe due to increased environmental concerns regarding the small but perceived risk of shallow groundwater pollution from leaky injection wells and the possibility of inducing minor earth tremors. Consequently there is increased reliance on the wastewater industry treating this water to a suitable standard for disposal to surface water. To achieve this the principal issues that need to be addressed by the wastewater industry are: 66 The very high Total Dissolved Solids (TDS - chlorides and to a lesser extent sulphate) concentration found in the water. As these are typically around 100,000mg/l (but can be as high as 300,000mg/l) the use of RO to concentrate the TDS in a reduced volume is not viable and other options such as thermal evaporation are cost prohibitive. As a result, for most applications, the only economically viable option is tankering the wastewater off-site and diluting other wastewater streams to concentrations suitable for release into the environment following treatment to remove suspended solids and reduce the BOD/COD. 66 The removal of naturally occurring radioactive Minerals (NORMs) to safe level by chemical precipitation.

europeanoilandgas.co.uk

treatment facility and move on to site with the drilling contractor. 66 Develop a range of portable water treatment solutions that can be redeployed in a matter of days as the drilling contractor moves from one well location to another.

europeanoilandgas.co.uk

European oil & gas

advice Sound

Calum Forsyth, CEO of IAC Acoustics, analyses the operational and reputational challenge noise control poses for the industry

n evolving industry

In recent years the oil and gas industry has witnessed nothing short of a minirevolution: thanks to technological advances in horizontal drilling, combined with hydraulic fracturing, previously unreachable reserves of oil and gas are now becoming commercially viable to extract. This change has been most profoundly felt in the US, where shale gas is gradually transforming the country from an importer to a net exporter of energy, while at the same time providing cheaper feedstock for the nationâ&#x20AC;&#x2122;s manufacturing industry. Many European governments, looking on with envy, are now trying to kick-start their own energy revolution,

with the UK, Germany and Poland amongst a number of countries who have granted exploratory licenses to operators willing to commit the time and money required to confirm the size of the resource in place. In some cases, the numbers are already tantalising. For example, in June the British Geological Survey estimated that the UK could secure at least 25 yearsâ&#x20AC;&#x2122; worth of gas from just one prospect in the northwest of the country1. While the economic and social benefits from this new source of energy are clear, shifting the focus of exploration to onshore Europe, many parts of which are densely populated, poses a new set of challenges for an industry that has predominantly operated offshore for many years.

European oil & gas

europeanoilandgas.co.uk

Technology

Noise as an onshore pollutant One of these key challenges is the issue of noise. Like any other industrial sector, noise is by no means a new issue for the energy industry – particularly for oil and gas companies, who have been tasked with protecting their employees from the considerable operational noise experienced on drilling rigs around the world. However, as the industry comes into closer proximity with communities across Europe, gaining the consent of the public to explore – what’s referred to as a ‘social license to operate’ – requires a cultural shift in how the industry views issues like noise. This sentiment was echoed recently by the International Energy Agency, which cited public acceptance as the biggest obstacle facing the nascent onshore exploration industry in Europe.

Simply put, as the scale of onshore exploration expands in the coming years in Europe, so too will the level of noise associated with it. In a number of cases, the exploratory wells will be located just a few hundred metres from households or environmentally sensitive habitats. As a result, companies operating within the industry are set to come under increasing pressure – regulatory, politically and reputationally - to recognise and mitigate the impacts of their operations on the communities surrounding their sites. As a result of the rapid pace at which the industry has grown in Europe in recent years, the regulatory regime for noise from onshore exploration is only beginning to catch up. While the European Union has 19 pieces of existing or proposed legislation that regulates different

europeanoilandgas.co.uk

European oil & gas

As previously highlighted, the onshore focus of Europe’s nascent exploration industry will require oil and gas companies to take the impact of site noise on local residents into much greater consideration elements of onshore exploration, such as the Water Framework Directive and the Environmental Impact Assessment (EIA) Directive, there is still no noise-specific regulation for the industry. In its absence, some Member States have taken the initiative and elected to bring forward their own guidelines; for example, in July the UK Government published a new set of ‘Planning practice guidance for onshore oil and gas’ that identifies noise as one of the key issues to be considered as part of the planning process2. It also emphasises the importance of operators conducting robust noise mapping assessments to document the baseline level of ambient noise prior to any operations commencing on site.

Protecting onsite rig personnel While minimising the impact of noise on nearby communities will be essential for operators to gain public trust, they must also ensure that they continue to protect their staff working on the rigs themselves. Onsite rig personnel are naturally the most affected by industry noise, being subjected to the high volumes in closer proximity, and for a more prolonged period of time than those outside the site. Deafness and other hearing-related problems such as tinnitus are common risks of insufficient noise control, and – if severe enough to require medical treatment – can directly affect a company’s overall business performance, as sick leave results in lost manpower, working hours and, in turn, industry output. The distraction of noise can also significantly reduce workers’ levels of concentration, which is particularly dangerous given the high-risk environment of an oil or gas plant. Reduced productivity is a by-product of lost

concentration and, for the same reasons as sickness leave, can also diminish overall business performance. A study into worker productivity in the oil and gas industry found that whilst many enterprises consider the productivity of their employees to be linked to their skills and ability, as much as 86 per cent of productivity problems actually reside in the employees’ work environment3. Noise, as a consistent background disturbance, plays a large role in this environment. Aside from the physiological health consequences of acoustic overexposure, noise at oil and gas sites also poses a very real physical threat due to the mechanical stress it places on the machinery and equipment. Noiseinduced vibrations and pulsations in the rig apparatus can reach extremely high frequency and – if appropriate control products are not put in place – can cause cracks and fractures in the apparatus and lead to potentially fatal explosions and fire. In addition to the clear health and safety impact that such an incident would have on the workforce and those living in the immediate vicinity, an industrial accident would also be extremely detrimental to the company’s reputation and operational ability; a fact that helps to demonstrate the close connection between noise, health and safety, business repute and business performance. In contrast to the framework for onshore noise pollution facing communities, there are already a number of measures and noise-related rules in place to reduce the impact of high decibel ratings on industry workers. The UK’s Control of Noise at Work Regulations for example, state that employees should not be exposed to noise levels higher than 80 dB (A-weighted).

In many spheres, the oil and gas industry is viewed in a negative light, and the creation of a healthy and safe environment is a crucial means of ensuring that damaging opinions are kept to a minimum. A great deal of negative press for the onshore oil and gas industry relates to acousticrelated concerns, with noise induced stress and irritation particularly common. Whilst industry regulations state that noise generated by the rig must not be higher than the ambient noise measured before the site was there, the quiet, rural environment in which many of the proposed oil and gas plants will be located will mean that in reality, at least a low level of noise is likely to be audible. As previously highlighted, the onshore focus of Europe’s nascent exploration industry will require oil and gas companies to take the impact of site noise on local residents into much greater consideration. On a strategic level, noise can impact the health of the business. Even before an onshore oil rig is operational, the perceived level of noise that the site will generate is often a major source of disapproval in the local vicinity. Aside from the mechanical equipment and apparatus that emit loud noises in themselves, the sound from the workforce and increased traffic in the area are also often concerns. Noise is one of the most cited objections to the commissioning of onshore oil and gas sites, both at the planning and operational stage. At worst, such complaints could result in refused planning permission for the rig and at best, they could lay the foundations for ongoing community animosity towards the site, which can damage the company’s – and therefore industry’s - repute and potentially harm future business in the area.

In the oil and gas sector such outcomes would be farreaching and could severely hamper Europe’s projected energy production figures. If the onshore oil and gas sector is going to develop and become a widely accepted part of the energy provision network, companies acting in the field need to address noise-based issues up front. Incorporating practical and effective acoustic control products into the core fabric of site buildings and equipment can help, by tackling the issue of noise from the outset as a means of upholding industry regulations, maintaining good community relations and conveying a positive corporate image. 1 The Carboniferous Bowland Shale gas study: geology and resource estimation,

https://www.gov.uk/government/uploads/system/uploads/attachment_ data/file/209021/BGS_DECC_BowlandShaleGasReport_MAIN_ REPORT.pdf 2 https://www.gov.uk/government/uploads/system/uploads/attachment_

data/file/224238/Planning_practice_guidance_for_onshore_oil_and_gas.pdf 3 http://www.academicjournals.org/ajbm/pdf/pdf2010/Mar/Taiwo.pdf

IAC Acoustics Calum Forsyth is CEO of IAC Acoustics, the world’s largest provider of noise control products and systems. With over 60 years’ experience, the company has built a strong reputation based around its commitment to designing and manufacturing top quality products that make the world a quieter place. IAC Acoustics rightly holds the position of being a true pioneer in its sector, a position that has been built by its vision “To be globally recognised as the organisation that thinks bigger, innovates faster and delivers quicker in the field of sound control”. For further information please visit: iac-acoustics.com

European oil & gas

Noise and the wider community - conclusion

europeanoilandgas.co.uk

Technology

Pulling

European oil & gas

europeanoilandgas.co.uk

together

Naftna Industrija Srbije Above MHC/DHT complex in Pancevo Refinery enabled NIS to switch to production of environmentally friendly “Euro 5“standard fuel

(Petroleum Industry of Serbia, NIS) is a vertically integrated energy company operating from its headquarters in Novi Sad, Serbia, which is ideally located as the Balkans’ centre of trading and investment. NIS implements its vertical supply chain to provide a comprehensive package of oil and energy solutions and currently employees around 5500 people.

The company’s activities include exploration, production and the processing of crude oil, which are serviced by its two refineries in Pancevo and Novi Sad. Other areas in which the company operates include the use of modern technologies for electricity production by using domestic energy sources with minimum impact on the environment. This spirit of co-operation and affiliation has

NIS Gazprom Neft

With an impressive array of services and supporting divisions, strong industry ties and dedicated parent company investment, NIS is incredibly well placed to solidify its leading role within Serbia and the surrounding region over the coming years

become a major driving force for the NIS brand as the company works closely in partnership with the various disciplines within the brand, its investors and automotive companies including Mercedes-Benz, Ĺ koda, Halliburton, Chevron Lummus Global, GGE. The company is part of Gazprom Group, which at the time of writing operates 56.15 per cent stake in NIS, while the Republic of Serbia owns a further

29.88 per cent. Citizens, employees, former employees and other minor investors own the remaining portion of the company. At present NIS has around 2.4 million shareholders and as of September 2011 is listed on the Belgrade stock exchange. Currently NIS is focused on exploration and production, crude refining, sales and distribution, oilfield services, energy and

European oil & gas

europeanoilandgas.co.uk

PROFILE

energotehnika-juĹ˝na backa novi sad

Energotehnika-Juzna Backa Ltd. Novi Sad was founded in 1958 as a part of national electric company Elektrovojvodina, with the main purpose of constructing the electrical power network in the territory of Former Yugoslavia. The very first step in the erection and maintenance of electric power utilities and plants was made on June 28th 1958, when the companyâ&#x20AC;&#x2122;s experts took part in the realisation of a pioneering project for the introduction of 20 kV voltage level to an electrical energy transformation. Since then, the company has participated in the construction of almost all the major electric power facilities in the former Yugoslavia. Guided by the needs of the market, the business has consistently invested in the introduction of new technologies and the development of human resources, which has resulted in the ability to respond and perform the most demanding projects in the energy, and oil and gas engineering industries. Since July 2010, the company has been fully privatised and it represents one of the positive examples of privatisation in Serbia. Today it is a modern, highly organised business that employs more than 400 employees, of which 70 are highly skilled and more than 200 skilled workers (electricians, mechanical staff, certified welders). The company also employs more than 40 engineers (electrical, mechanical, civil and welding engineers). Energotehnika-Juzna Backa Ltd. Novi Sad has founded two subsidiaries in Germany and in Bosnia and Herzegovina. The revenue it generated in 2012 was 50 million euros. The company owns all of the necessary licenses required to operate in the energy, infrastructure and projects in the field of oil and gas technology. Furthermore, numerous references of the company, as well as the personal experience of employees, represent a guarantee for the successful implementation of even the most complex projects. The company has extensive experience in the implementation of IPC projects and further experience with foreign investors. Ever since 1976 Energotehnika-Juzna Backa Ltd. Novi Sad has been successfully participating in the construction of thermal power plants, construction of heating plants and the construction of thermal power and gas distributive networks. One very impressive fact to note is that the company has built over 400 kilometers of gas network, and installed over 8500 substations of all voltage levels, as well as over 13,000 km of electrical distribution network. Recent important references include the construction of the natural gas underground warehouse Banatski Dvor, and more than 25 million euros worth of projects in various fields for investor FIAT, Kragujevac. In the last ten years Energotehnika-Juzna Backa Ltd. Novi Sad has focused its capacities on the development and implementation of alternative energy sources and energy management.

Numerous projects have been implemented in the field of geothermal energy and in the usage of biomass. The most important projects in these areas are the construction of a biomass boiler with the capacity of 18 MW in Sremska Mitrovica, and the construction of a complete heating and cooling system in the Aqua Park complex in Backi Petrovac using the heat pumps. The company also has the ability to implement projects in the field of automatisation, instrumentation and remote control as well. The company has completed very demanding projects for investor NIS (PETROLEUM INDUSTRY OF SERBIA) in the field of electric power, thermal energy and process engineering, of which it would particularly highlight its electrical installation works on 220kV GIS in Oil Refinery Panževo. Current, ongoing projects that the company is carrying out for NIS include:  Design, supply and construction of cogeneration plant ’Kikinda Gornje’ with the capacity of 995kWe - turnkey project.  Construction of a gas pipeline from SS - Velebit to the MG-07 at a length of 6.9 km.  The separation of CO2 from a natural gas – construction of gas pipeline for transport of separated CO2 for injection into gas cap, at the length of 15km.  Reconstruction of heating system SS-1 Velebit - turnkey project. Energotehnika-Juzna Backa Ltd. Novi Sad is well equipped and owns over 100 light and heavy trucks, vehicles and specialised equipment to work on the installation of electric power and thermal power facilities, as well as high pressure gas pipelines and other types of pipelines. The company has implemented ISO 9001, ISO 14001, ISO 18001, and ISO 3834 in the field of welding. The key factor that distinguishes the company from others in the market is its ability to provide a complete support to the investor, and to take the complete responsibility for delivering turnkey projects.

Tubular goods for the Oil & Gas Industry Interpipe is a global steel pipe producer and one of the top ten largest producers of seamless pipes in the world. The company’s production facilities are located in Ukraine and are therefore well connected to serve the markets in the region. Annual production in 2012 was 1.1 million tons of steel pipes. Interpipe supplies tubular products to clients in 80 different countries all around the world via the network of sales offices located in the key markets of Europe, the CIS, the Middle East and North America.

Expert solutions for oil and gas industries Interpipe’s experience in and understanding of the oil and gas industry gives us the opportunity to find tailored solutions for clients and create long-term partnerships with them. Working closely with our clients we achieve efficiency increases in exploration work and cost reductions for oil extraction. Above all, we provide a reliable product for oil and gas pipelines.

Over the years Interpipe has built a strong partnership with Lukoil, Rosneft, Surgutneftegaz, Kaztransoil, Turkmenneft, Uzbekneftegaz, SOCAR, Kuwait Oil Company and SITEP. Amongst European oil and gas companies that purchase our products are Romgaz, NIS Serbia, NIS-Petrol Srl and Rompetrol. Ivan Mazanka, Regional Sales Director for the European market, explains how Interpipe is operating in the market: “The quality of our products and our continuously developing partnerships enable us to maintain and multiply our business with significant European customers. For instance, our partnership with NIS-Gazpromneft has seen our product purchase grow from 500 tons in 2011 to more than 7000 tons in 2013”.

transporting oil and gas. This includes tubing and casing OCTG pipes according to API 5CT standard, seamless and welded line pipes according to EN 10208-1, 2 and API 5L standard, special pipes and premium connections. Our products are applied in diverse hostile environments as basic elements for submerged pumps and engines. Pipes used for downholes are made of steel to sustain high gravity or heavy pressure. These pipes have close tolerances and high straightness. Mr. Mazanka points out: “For instance, Interpipe supplies a wide range of products to NIS’s divisions in Serbia, Bosnia and Herzegovina, Romania and Hungary. Most recently, Interpipe’s tubing and casing pipes according to API 5CT were successfully applied for NIS-Serbia ’s development of onshore fields”.

Quality focused pipe producer Quality control is a key part of Interpipe’s process when manufacturing products. The quality of our pipe products is approved by international standards API 5CT, API 5L, EN (DIN), ASTM, JIS, GOST and often exceeds customer specifications. “Quality control for pipe products is implemented at all stages of the production process, from continuous casting at Interpipe’s in-house state-of-the-art steel melting mill to the non-destructive testing of pipes and shipping to customers”, – Ivan comments. He also stresses that as the company not only meets standards requirements, but also those set by the industry, Interpipe is receiving approvals from major oil and gas companies including Shell, South Oil Company and ENI S.p.A, etc.

Development vector With the oil and gas industry still dealing with the aftermath of the global recession, the ability to equate potential or existing customers’ special requirements is a fundamental aspect of Interpipe’s growth strategy. Ivan highlights how Interpipe is going to remain at the industry forefront: “At the moment we are working on our transition to long-term contracts with key customers including NIS Gazprom. Developing these partnerships helps us to better understand their business and support where we are most needed. Another key priority for us is to develop close cooperation between our technical department and NIS-Gazpromneft’s technical experts. The collaboration will afford us the opportunity to produce pipe products in line with real market demands”.

A wide range of pipe products The Interpipe product portfolio is focused on creating value-added and technological advantages for companies extracting and

For more details visit our website www.interpipe.biz

PROFILE

NIS Gazprom Neft

secondary businesses, which include non-core assets like drinking water production and hotel operation. Currently, NIS is the only company in Serbia dealing with exploration and production of crude oil and gas, as well as the production of geothermal energy. Oil and gas are produced in 45 fields in Serbia and under concession with Angola, with NIS operating 650 wells, 95 of which are currently exploited. The company expanded its operations to Bosnia and Herzegovina, Bulgaria, Romania and Hungary, which remains a priority area for future development. At the time of writing the company’s production amounts to over 1.7 million tons of oil equivalent, which has been the result of significant growth in the past three years and this is a trend that looks set to continue. Complementing these operations, NIS has 18 systems for production of geothermal water and it produces liquid petroleum gas (LPG) in its Elemir production unit. As the majority owner of NIS, Gazprom Neft has executed a number of investment projects with an aim to increase oil and gas production since 2011. Until the end of 2015 NIS is set to invest around 1.5 billion euros. The objectives of this will be to encourage growth of production and an increase in resource base, to facilitate a high level of productivity, investment in the application of new technologies, industry

expansion in Serbia and abroad and a decrease in costs to increase investment efficiency. The ultimate goal of this investment will be to enable production of around five million by 2020. As a vertically integrated company, NIS is able to supply its own oilfield service capacity as well as to service the needs of third party companies. NIS Oilfield Services renders activities including; geophysical exploration, special operations for measuring oil, gas and water wells, maintenance and overhaul of facilities and equipment and the transportation of equipment and personnel. NIS Oilfield Services has obtained a certificate for providing services in the EU, along with national certificates for providing services in Romania and Hungary. Owing to its modern equipment portfolio and highly experienced personnel the company has also carried out operations in Egypt, Turkmenistan and Azerbaijan. According to its own philosophy ‘equipment modernisation, an innovative approach and application of new technologies are the essential requirements for progress, competitiveness and achieving regional leadership.’ With an impressive array of services and supporting divisions, strong industry ties and dedicated parent company investment, NIS is incredibly well placed to solidify its leading role within Serbia and the surrounding region over the coming years.

European oil & gas

europeanoilandgas.co.uk

Inset NIS' filling stations network operates under two brands; consumer brand NIS Petrol and premium Gazprom brand

Above NIS Oilfield Services has obtained a certificate for providing services in the EU

NIS Gazprom Neft nis.rs

Services Total energy solutions

Trusted

europeanoilandgas.co.uk

expertise European oil & gas

Founded in 1993 as a structural

BePe Construction BePe Construction makes the impossible possible. In three weeks they produced six spreader beams for us, meeting GL classification standards. In their range of products they consider the larger picture of the project and take responsibility for some of the engineering solutions. Innovation, quality and speed are key aspects of their mission statement.

engineering company, Conbit has grown significantly and expanded into new services and markets to earn a reputation as a leading brand in offering exceptional turnkey solutions within the field of offshore brownfield modification projects. Today the company employs 45 engineers from its main office in Best, the Netherlands. It is active in a diverse range of industries globally including offshore oil and gas, energy, petrochemical, infrastructure, and logistics. Key to its success has been the professionalism of its committed team who are divided into structural engineers, draftsmen, project managers, transport and installation technicians and other supporting staff. Conbit is proud of the high level of co-operation within its organisation and of the personal and informal relationships that have characterised the company as an approachable and professional business partner. Conbit has identified itself as a trusted expert in the field of complex and often challenging transport and installation projects. The installation of huge structures or manoeuvres under extreme conditions requires dedicated analysis and competent professional knowledge to be executed efficiently and safely. This is especially true when transport over sea is required, where acceleration forces due to ship motions act on the transported structure. Similarly, the offshore environment can create hazards to installation during even relatively calm weather, meaning that such work

should always be carried out with the highest professional proficiency. With an excellent track record of successfully carrying out such demanding installations, Conbit has won successive contracts from wellestablished and globally recognised operators like Total, Gaz de France, ExxonMobil and others. The company has been prevalent in helideck services, including supply and installation of perimeter netting installation, flare tip exchange, installation of offshore modules, the lifting of offshore living quarters and lifetime extension services. During 2012 Conbit completed a prestigious project of lifting two offshore accommodation units for the K6-P platform in the Dutch North Sea. The work was carried out for Total E&P Nederland BV. The project was a significantly complex one, involving engineering and method statement, load testing and inspection, the provision of lifting equipment, supply of rigging and rope access crew, co-ordination of third party activities and the provision of vessel support crew. Installation of the living quarters was compounded by the weight of the structures, coming in at 44 MT and the difficult location of the units, which were to be located just below the rig’s helideck. The rig’s own deck crane was not able to provide neither the capacity nor the dexterity to position the units and other lifting devices such as crane vessels were similarly disadvantaged. This, in part was what convinced the rig’s owners to employ the expert installation services that Conbit is able to offer.

offshore energy 2013 - Conbit

Conbit remains dedicated to its mission to deliver the most efficient, safe and reliable services and aims to develop and implement cutting-edge solutions globally

Conbit conbit.eu

Services Transport and installation solutions

europeanoilandgas.co.uk

requirement of the crew to be able to demobilise within 20 minutes to allow for helicopter activity to continue and bad weather that meant that installation work had to be stopped for two days. While the project was in its preparation stage, several meetings took place to ensure that all parties involved were clear on their part in the operation and once the crew arrived all of the necessary tools and equipment had been supplied ready for the job to commence. The nets were provided by Finnish company Frictape as one of Conbitâ&#x20AC;&#x2122;s carefully selected suppliers and are the only nets on the market with a third party type approval certificate stating that the nets comply with CAP437 and UK oil and gas guidance. Conbit remains dedicated to its mission to deliver the most efficient, safe and reliable services and aims to develop and implement cutting-edge solutions globally. By encouraging teamwork, operating in multiple disciplines and prioritising safe and efficient working conditions the company is well place to act as a market leader in transport and installation solutions.

European oil & gas

The lift was successfully achieved through the combination of the teamâ&#x20AC;&#x2122;s expert engineering skills and the creation of several strategic lifting points to facilitate the lift. The lifting system ultimately consisted of a lifting boom with a height of approximately eight metres and another lifting point, which was created to hold a lift line that ran through the helideck. Each of these lines was connected to a 15 MT lifting winch. Prior to the lift the hoist system was tested several times and full safety briefings were issued. Once the lift was started a 0700 on 10th June the lift was completed and the unit connected in less than 24 hours. During June this year Conbit won a repeat contract from Dana Petroleum after successfully completing a previous contract for the company. Tasked with helideck net fitting on the F2-A Hanze Platform, located in the Dutch sector of the North Sea, 200 km northwest of Den Helder, a dedicated crew was flown offshore on the 20th June and was able to finish the installation six days later. This was achieved despite the

europeanoilandgas.co.uk

European oil & gas

industry Guiding the

With over 55 years of industryleading products and a knack for introducing globally recognised ‘firsts’ within the aid to navigation (AtoN) market, it is hardly surprising that Tideland Signal has garnered a reputation as a world-class partner within the oil and gas sector and beyond. Founded in 1954 the company has continued to grow, expanding its business to operate on a truly global level. Currently Tideland Signal is headquartered in Houston, Texas with offices located in Canada, Singapore, China, the United Arab Emirates and the United Kingdom. As part of its business strategy the company operates divisions dedicated to AtoN services in the Middle East, offshore oil and within gas exploration in the Gulf of Mexico as well as facilities for buoy construction in Canada, Asia, South America, the United Kingdom, Italy and the Middle East. Marine aids to navigation are at the core of the company’s business and are an area with far reaching applications, as executive vice president Paul Burford elaborates: “The kind of service we provide is essentially that if you’re sailing a ship we provide all the things that you would see from the vessel that stop you from running into rocks and guide you home safely. So it’s solutions like lighthouse beacons, fairway buoys and jetty lights that you would find at harbour entrances.” Currently Tideland Signal’s operation is largely centered around three areas; harbour

installations, offshore and wind farms. Each area comes with its own unique requirements and challenges that potential suppliers need to be aware of, as Paul details: “Port and harbour equipment is usually for general marine use and tends to be fairly rugged to meet the challenge of the harsh marine environment. Within the offshore energy market there is a much more of a technical requirement because we are providing equipment in an environment where gases are present, so our equipment cannot give off a spark or have hot surfaces otherwise there is a risk of explosion, the results of which can be catastrophic. Finally, the offshore wind farm sector rather falls roughly in between the two. It does not carry the same risk as oil and gas installations but it is offshore, so it has all the challenges of operating on a remote structure in unforgiving conditions.” The company’s product portfolio is as extensive as its global reach. It is able to provide first-class products including lanterns, buoys, radio aids, power sources, helideck systems and many others. Within the market Tideland Signal has pioneered a host of leading technologies since the 1960s including the world’s first transistorised, automatic lamp changer that was introduced in 1965. Other innovations include the first Microsoft Windows based AtoN satellite monitoring system (1991), production of the lowest power Racon unit, the System 6 (2002)

PROFILE

Sea they did not expect to be recovering oil by now, but with advanced exploitation techniques operators are still able to get product out of the ground meaning they are prolonging the life of the oil rigs.”

Tideland Signal tidelandsignal.com

Services Aids to navigation solutions

europeanoilandgas.co.uk

At present Tideland is active in almost every country in the world that has a coastline or inland sea, offering service contracts to some of the oil and gas sector’s leading operators

European oil & gas

and the first 30 degree vertical divergence LED lantern (2011). During the 1990’s Tideland Signal was one of the first companies to introduce LED’s to the AtoN market, which has been an innovation that has gained so much traction that LED lights now almost entirely dominate the sector. A major differentiating factor for Tideland Signal is in its ability to provide turnkey solutions in a niche market where most operators are focused on only part of the full package. It offers the full range of products, engineers to install and maintain them and large solar OV arrays to power them. A further major strength for the company is in its years of experience within the market, allowing it to anticipate its customers needs in an expert and professional manner. “We pride ourselves on our customer service,” Paul exclaims. “We’re not a company that sells consumables at the cheapest possible price, we offer full solutions to our clients and we value their custom. We want them to come back to us time and time again, so it’s about forming relationships with them. It’s a specialist area and often our customers depend on us to know what they need. “Rather than the client having to have the expertise in-house, they can rely on Tideland to have the knowledge of industry requirements and regulations. So when it comes to deciding which systems they will need they don’t even need to know the details of their requirement; our customers can rely on us to be able to tell them.” At present Tideland is active in almost every country in the world that has a coastline or inland sea, offering service contracts to some of the oil and gas sector’s leading operators. It has recently won a contract with Technip for 20 sets of its HeliLED status beacons including the solar power units to operate them, for a project in the Middle East. Another of its successes of which it is proud is the solar PV system used to power GUPCO’s Hilal B platform in Egypt. Tideland worked with the engineering company ENPPI to design, deliver and commission a 35kW system that is the only source of power on the platform The company can also boast a rich history serving the North Sea market as Paul explains: “We have been supplying North Sea platforms since the industry began; we have worked with hundreds of platforms in the area. A lot of those early systems we put out in the 1970’s are still working so operators are now upgrading them. This is partly because within the North

Tideland Signal

perfection Process

European oil & gas

europeanoilandgas.co.uk

Part of a £60m privately-owned group

of companies, Poole Process Equipment is a global leader in the design, manufacture and renovation of shell and tube heat exchangers, air cooled heat exchangers and pressure vessels, serving the oil and gas, energy and process industries all over the world. The company is located in Poole in the UK with administration, HR, IT and treasury functions based nearby in Southampton. The history of Poole Process Equipment spans over 40 years, and over this time it has refined its working processes and enhanced its approach in order to meet the needs of its demanding and successful blue-chip clients. Major investment and a new management approach have moved the business from being a predominantly local manufacturer to a regional and international company. “Our strategy is called our 2020 vision. We promote and create continuous improvement, which generates real value and upper quartile service for our clients – safely and profitably,” explains Paul Drennan-Durose, managing director, on the company’s brand new website, www.poole-process.co.uk. “Leaders in our chosen sectors and recognised as a supplier of choice. Our level of passion and the personal commitment to our objectives make us a powerful force – we exceed and excel.” The main area of expertise for Poole Process Equipment is shell and tube and air cooled heat exchangers, where it is an expert in design, build and manufacture, testing and overhaul, and can offer a complete solution – a one-stop shop. Clients that use Poole Process Equipment Ltd include those in oil and gas exploration, gas terminals, refineries, petrochems and power generation. A recent project in an oil refinery is a good example of how the company works. Poole Process Equipment Ltd provided the

complete design, manufacture and supply of eight air cooled heat exchangers simultaneously for a critical and dangerous process hydrofluoric service. Attention to detail and an acute awareness of getting it right for process and safety reasons is a key strength of Poole Process Equipment. Another contract recently won was from a major gas terminal. Poole Process Equipment's reputation for being reliable and credible coupled with a track record of build success for these kinds of units in high pressure services generated confidence with the client in awarding this project. The organisation completed the units in full and on-time. This included operating closely with the client and their inspection body and the exchangers met all the service demands they were designed for. This successful result has led to further project awards from this client’s other sites. Poole Process Equipment Ltd can manufacture in a wide range of metallurgies from carbon steel to exotic alloys. It also offers carbon steel/corrosion resistant clad exchangers, which can deliver a cost effective alternative to complete alloy units too - providing clients with choice and value. Completing the product portfolio are pressure vessels, which are designed and built at Poole Process Equipment Ltd’s enlarged facility in the UK to industry design standards including ASME and PD5500 and cover a wide range of sizes, complexities and metallurgies. Poole Process Equipment’s capability to manufacture and also repair, re-tube and renovate has built a reputation in the oil and gas world for being a leading facility and solution provider. Its investment, skill and experience allow the business to take on the most complex of repair requirements in the shortest possible guaranteed turnaround time. For example, on a project

strategy is based on having the best people in the right roles and aligning them effectively with our clients.” “With foresight we see that businesses face challenges from skills shortages and we don’t take any challenge for granted. It was against this backdrop that we launched Skills 2020, an integrated skills and education strategy involving our entire business. This is already helping us shape our existing team to meet today’s and tomorrow’s client needs, and has seen us successfully introduce an apprenticeship programme in 2010 and launch a graduate scheme in 2012. This is already supporting the controlled development of our client base and the structure is firmly focused on generating engineering and service excellence for our clients.” Poole Process Equipment Ltd is eager to discuss where it can help and add value to your business and is contactable on +44 (0)1202 674683; email:- enquiries@poole-process. co.uk and more details are available on our new website www.poole-process.co.uk.

The main area of expertise for Poole Process Equipment is shell and tube and air cooled heat exchangers, where it is an expert in design, build and manufacture, testing and overhaul, and can offer a complete solution – a one-stop shop

Poole Process Equipment poole-process.co.uk

Services Shell and tube exchangers, air cooled heat exchangers and pressure vessels

europeanoilandgas.co.uk

undertaken for an international gas terminal client, Poole Process Equipment Ltd was called upon to re-tube multiple heat exchanger bundles. It was supporting a turnaround team who were faced with an unplanned need to complete the refurbishment within a major turnaround in a short time window. Its successful track record with this client combined with the investment the company had already made in tripling the size of its production premises, its leading edge equipment and the quality of its team all generated client confidence on this project. Furthermore its agility, service and quality performance resulted in further projects being awarded to it during the duration of the turnaround. Successful project completions such as this are testament to the skills and dedication of Poole Process Equipment Ltd’s staff. Managing director Paul Drennan-Durose is “eager to stress just how important our staff are and the plans the company has going forward to recruit and develop even more valuable employees. Our

Poole Process Equipment

European oil & gas

PROFILE

europeanoilandgas.co.uk

European oil & gas

Supplying

security

of clients from the biggest to the smallest range. The so-called virtual product enables us to satisfy injection needs during withdrawal periods and vice versa, as well as the withdrawal needs of the customer throughout the injection period. The second product we have introduced over the last 12 months is the Flex Plus, which allows customers to acquire additional flexibility and we also have products to enable customers to buy additional peak.” Furthermore, Hungarian Gas Storage is currently attempting to implement a gas loan product that can be offered to the customers on a 30-day period. However, the product is still under approval by the responsible authorities, there are already requests from more customers to support their portfolio through this product. In Hungary today, natural gas is one of the country’s most important energy sources, and Hungarian Gas Storage is the country’s largest commercial natural gas storing firm. As part

Following months of discussion,

state-owned MVM Hungarian Electricity Ltd acquired the previous E.ON Földgáz Storage and Trade companies, valued at approximately HUF260 billion. The transaction includes all shares of the natural gas trading and storage firms, including the underground gas storage facilities and all natural gas stored there. This acquisition is in line with the Hungarian government’s plans to make all gas storage units state-owned, which will ensure security of supply and also control gas prices on a long term. “From 1st October our name became Hungarian Gas Storage; the takeover process took from March to October and the company is now 100 per cent state owned. Aside from these developments the business is the same, we still have the four storage sites with a total capacity of 4.4 billion cubic metres and still have the same customer base,” explains Mr. László Fritsch, CEO of Hungarian Gas Storage, previously board member of E.ON Földgáz Storage. The main client of Hungarian Gas Storage is the Hungarian Gas Trade Ltd, however it also works with third party firms such as the Hungarian branch of RWE, GDF Suez, as well as ENI. “We also work with a couple of smaller companies with smaller shares on the Hungarian gas market, such as Shell, Exxon and some others,” says Mr. Fritsch. “Over the past two to three years we have tried to introduce some new products to enhance the service we deliver to our customers in order to fulfil requirements

of the MVM Group the company has adopted MVM’s values in all operations, which includes responsibility for all employees, the environment and society. On top of this, the company is customer and performance focused; open to improvements and strong on teamwork, with a core objective to ensure long-term gas supply for Hungary throughout the winter period and to participate in the country becoming an unavoidable player in Central Europe. “Our location is highly advantageous to us as we are in the centre of Europe, which means we are able to offer flexibility not only to Hungary but to the Central European region as a whole. We keep trying to gain export deals with limited success for the time being, however this is an area we believe to grow in the future,” highlights Mr. Fritsch. “Furthermore, our location enables us to offer security of supply, which will make us crucial not only to Hungary but also to Romania, Croatia and even Ukraine.” The company’s four primarily sandstone facilities were first built in the 1970’s and were

injection mode to withdrawal. Thanks to the earlier developments, Zsana today can change its operation mode within less than 12 hours.” Following this development of the Zsana site, which ran from 2007 until 2009 and enhanced mobile capacity by over 400 million cubic metres, there are potential plans to reconstruct the injection part of the Pusztaederics site. “The filling level of the storage is lower than previous years therefore we might expect challenges during the next months, however the storages are in proper technical condition so we are confident to provide the necessary security of supply for our customers,” says Mr. Fritsch. Despite the challenges it has faced, Hungarian Gas Storage has a strategic focus for the years ahead: flexibility to help balance the difference in demand between summer and winter peak consumption, optimisation of trading tools and security of supply. On top of this, the company’s long-term plan is not to increase capacity, but to ensure its sites operational function as efficiently as possible through ongoing refurbishments.

Zsana is the largest site and the flagship of the company, with more than 2.1 billion cubic metres of gas capacity. The second largest is Hajdúszoboszló with 1.5 billion cubic metres capacity

Magyar Földgáztároló Zrt. (Hungarian Gas Storage Ltd) magyarfoldgaztarolo.hu

Services Gas storage

europeanoilandgas.co.uk

owned and operated by MOL before being acquired and privatised by E.ON Ruhrgas in 2006. They are located near the towns of Hajdúszoboszló, Zsana, Pusztaederics and Kardoskút. Two of the sites have the majority of the gas capacity share, while the other two are much smaller, as Mr. Fritsch discusses in more detail: “Zsana is the largest site and the flagship of the company, with more than 2.1 billion cubic metres of gas capacity. The second largest is Hajdúszoboszló with 1.5 billion cubic metres capacity. Pusztaederics and Kardoskút both share 300 million cubic metres in total, with Pusztaederics particularly important in the equilibrium of the whole system, as it is the only site in the western part of the country. “To fulfil all customer demands, our four storage sites and their technical flexibility are of key importance. It happened several times that during the summer injection period one of the sites was operating in withdrawal mode. To ensure the maximum flexibility it is also crucial to minimise the time-need of switching from

Magyar Földgáztároló Zrt

European oil & gas

PROFILE

36 European oil & gas

europeanoilandgas.co.uk

PROFILE

TESS

hose Specialised in the production of low and medium pressure rubber hose on rigid mandrel, IVG is today oriented to develop a range of special products and complete assemblies to ensure the best service and quality support in the most specialised industrial sectors. The co-operation between IVG and TESS International is an example of success of the teamwork for the satisfaction of the international market needs.

Since it was last featured

in European Oil and Gas Magazine during 2010, TESS has continued in its mission to ‘hose the world’ and maintained steady momentum in recent years. It has increased its turnover from 1.9 billion NOK in 2010 to an estimated 2.5 billion NOK for 2013, and in addition to this it has continued to develop the TESS Hose Management (THM) database. THM was developed to catalog hose specifications and performance rates to reduce the delivery time of suitable replacements and equivalents. The system also allows for a detailed analysis of hose suitability in various applications. During 2010 there were 23,894 registrations and so far in 2013 there have been 50,396 additions to the register. This gives a total of around 240,000 hoses logged to the THM system. Further developing its business, TESS has opened new branches in Macae (2011) and Houston (2012), as well as four new Partnershops, which offer localised hose solutions to customers, as well as becoming active in a further ten locations across Norway. The company has also continued to develop its reputation within the oil and gas

sector and has been awarded several new frame agreements with key clients including Statoil, FMC and Shell. The backbone of the company continues to be hoses, couplings and related services. Since 2010 it has continued to develop and improve its product range so that it remains able to offer products and services with market leading returns on investment. This is an area in which the company feels its services have become even more prudent in recent years, as business co-ordinator Bent-Ole Hilbert explains: “While TESS is founded on safety and quality, we are concerned by an increasing number of examples of quality being compromised by price in an industry where uptime and safety are in the spotlight. TESS will stay loyal to its principles and has instead focused its resources on developing and designing complete uptime solutions and concepts.” The core of this approach will be to work closely with its clients to develop long-term relationships and establish a firm understanding of their challenges and needs. By working in collaboration with its customers TESS is committed to providing tailor made concepts through its range of integrated solutions including its TESS Pertnershops, e-commerce and container solutions. These, in conjunction with the knowledge and expertise gained through the TESS Hose Management database, are all focused on the reduction cost related to downtime, maintenance and logistics and to optimise the refurbishment process and improve HSEQ. TESS integrated solutions represent an innovative approach to customising a supply solution in close collaboration with customers.

European oil & gas

IVG

europeanoilandgas.co.uk

Right on the

European oil & gas

europeanoilandgas.co.uk

PROFILE

TESS

As a result, clients can expect an impeccable level of knowledge and professionalism as well as a more efficient and cost effective buying solution, with an agreed and customised product range. During July of 2013 TESS opened a Partnershop at the processing company Boliden Odda, which is set to greatly reduce Boliden’s buying operations. “The reasoning behind establishing the Partnershop was based on the fact that Boliden themselves understood that they had a purchasing solution which was unnecessarily costly. Almost all of the employees were purchasing their own item, and both the resources used on purchasing and the transaction costs where high,” begins Bent-Ole. “Through close collaboration and thorough analysis the foundation of a good tailor made solution was made. Instead of a large number of invoices, it was agreed that there would only be 12 invoices throughout the year. TESS is replacing 70-80 different suppliers and the agreement guarantees that Boliden will save 25 per cent compared to how purchasing was previously organised,” he explains. TESS has established several Partnershops over the years, including customers like FMC and Wärtsila. TESS International remains focused on the professional market, with solutions for both onshore and offshore applications. It operates with a diverse client portfolio in a range of sectors including offshore oil and gas, maritime markets and the subsea environment. Offshore and subsea markets are an area where the company anticipates significant growth and has invested heavily in during recent years. “TESS was one of the founding companies of Subsea Valley, a cluster of companies representing market leading technology in the area between Oslo and Kongsberg,” says Bent-Ole. “It is estimated that the companies in this area alone account for 73 per cent of global subsea installations, with FMC and Aker Solutions being two of the biggest players.” The group has over 190 members representing 55,500 employees and a turnover of 111 billion NOK. The ethos that drives the group is one of co-operation; by working in partnership the companies involved are able to create a strong value chain with all members pulling together with a focus on expertise, quality and capacity. The company maintains a close relationship with and supplies major subsea companies. For example, it tenders a frame agreement with FMC for the supply of hydraulic flying leads. Australia and Angola are some of the

areas currently being supplied, with further operations starting in Brazil. Within the oil and gas sector TESS is involved in most applications where there is transfer of fluid ranging from subsea jumpers and drilling hoses to jet cleaning and bunkering operations. Looking to the future TESS is focused on continuing to meet the needs of its customers and anticipating the direction of the oil and gas sector. It sees the need for oil companies to reduce costs and therefore collaborates with

operators to analyse challenges and optimise processes. Through its THM system and co-operation with fellow Subsea Valley members TESS represents a key player in enabling the oil and gas industry to progress efficiently. “Some people believe the oil boom is halting,” Bent-Ole says. “We do not believe that. The ‘age of oil’ will go on for a long time and at the same time the renewable energy segment will continue to increase. One of our two founders, Mr Jolberg, believes that the move from oil and gas to renewable energy will be much shorter than many people believe. Within this sector the focus will still be on competency, experience and quality. Many of our partners feel the same way and we will work hard to follow the development into this new market.” Within this the company’s goal is both clear and ambitious. By 2020 TESS is aiming for a turnover of ten billion NOK. The company is serious about its fundamental business philosophy of following its customer, and is looking to expand to have 200 locations within Norway. As it expands into new areas it is committed to opening facilities in new geographical locations around the world as it follows customers depending on where their needs take them. As 2014 dawns part of its market anticipation will see TESS develop its own daughter company, TESS Subsea, to further strengthen it’s presence in this rapidly growing industry.

Some people believe the oil boom is halting,” Bent-Ole says. “We do not believe that. The ‘age of oil’ will go on for a long time and at the same time the renewable energy segment will continue to increase. One of our two founders, Mr Jolberg, believes that the move from oil and gas to renewable energy will be much shorter than many people believe

OP srl OP srl was founded 30 years ago with the aim of producing equipment for hydraulic hoses for hydraulic systems. OP srl is capable of developing evertopnotch equipment so as to meet all rigid and flexible hoses manufacturing requirements including crimping machines, cutting machines, hose skiving machines, inserters, markers, hose unwinding machines, test and cleaning benches, pre-assembly and 37° and 90° flaring machines, deburring machines, hose benders as well as complete machining centers. Our wide range of products has enabled us to work closely with Tess International, which has lasted for over ten years, providing them with equipment for both the rigid tube and flexible hose, which are used in its workshop and resold to its customers.

TESS tess.no

Services Hoses, hydraulics and related services

PROFILE

GPT

of the world’s largest manufacturers of flange isolation kits came together. PSI (Pipeline Seal & Insulator Co Ltd) of St Neots UK and Pikotek of Denver, Colorado have combined manufacturing and engineering expertise totalling nearly 80 years. GPT manufactures a wide range of engineered products for the pipeline industry and has a vast portfolio of products dedicated to sealing, isolating and connecting the world’s pipelines. A main focal point for GPT is assisting pipeline owners and operators to protect their assets in the fight against pipe and flange corrosion and to enhance safety. Since the early days of oil and gas exploration and production, pipeline and flange corrosion has always been a major issue, costing operators billions of dollars a year. In fact, industry sources estimate the global cost of corrosion in the oil and gas industry to be in excess of $1.3 billion. For offshore facilities, some operators estimate 60 to 70 per cent of maintenance costs are directly related to corrosion issues. Robert Colton, GPT’s Oil & Gas segment

Right Robert Colton, GPT’s Oil & Gas segment leader

leader states: “Over the past 30 years, operating conditions in the oil and gas industry have changed hugely and have become more challenging not only from a production perspective and the complexities that brings, but also in terms of the transportation and refining of the highly corrosive media that is being extracted. We have found that the offshore oil industry in particular is continually pushing oil exploration to greater depths than ever before, which in turn leads to greater pressure conditions and harsher environments. Advanced technologies developed over many years have meant that drilling to exploit hydrocarbons is now reaching greater depths, thus producing a higher rate of production from domestic reservoirs. However, whilst deeper drilling increases the life of these wells and production, this comes at a cost in that the media can contain much higher levels of highly corrosive Hydrogen Sulphide H2s. As a result of these increasingly sour environments, GPT (PSIPikotek) has over the last 20 years, seen an increased demand for higher corrosion resistant alloys, which are utilised in its critical service flange isolation kits.” GPT manufactures its full range of flange isolation kits in two locations: Denver, Colorado, US and St Neots in the UK. These kits are made up of a number of vital components, which together ensure the integrity and safety of piping systems is maintained. Flange isolation kits are designed to seal and electrically isolate complete flange assemblies. By isolating the flanges, current flow in cathodic protection systems can be controlled and by eliminating metal-to-metal

European oil & gas

Back in November 2011, two

europeanoilandgas.co.uk

Fighting corrosion with

PROFILE

Our expertise in pipeline corrosion protection and integrity, product innovation, engineering excellence and safety truly allow us to seal, connect and protect the world’s pipelines

Left Todd Anderson, vice president of GPT

nickel alloys and titanium cores to meet the everincreasing demand for these products. GPT’s PSI and Pikotek brands are recognised globally and have been installed in many offshore and onshore facilities worldwide. As it moves into the future, GPT is dedicated to continuing to grow and develop its product range, as Robert concludes: “GPT is well placed to achieve its vision and to continue to step up the standard for engineered pipeline solutions.” Todd Anderson, GPT’s Vice President adds: “As a global organisation, servicing industries that are both global and local, we are committed to provide regional support structures to best meet the demands of our customers. Our expertise in pipeline corrosion protection and integrity, product innovation, engineering excellence and safety truly allow us to seal, connect and protect the world’s pipelines. GPT has an aggressive growth plan and has made major investments to create a stronger foundation to support this growth. We are excited to work with the industry to meet the challenging pipeline needs. Along with other EnPro Industries companies, our passion and dedication toward excellence and improvement drive us to be number one in the world at meeting the pipeline industries needs. We look forward to working with customers in these dynamic areas.”

europeanoilandgas.co.uk

GPT is also the manufacturer of the VCFS range of flange isolation kits, which were the first flange isolation kits in the world to be approved to API 6FB standards. The gaskets utilised in the VCFS design have a patented seal system that in the event of a fire will contain the media. This technology has become a standard offering for North Sea platforms and is fast becoming the norm for facilities worldwide. As with the standard range of critical service isolation kits, the GPT VCFS fire safe seals can also be manufactured with any core material to suit the application. GPT’s US and UK facilities now hold large stocks of laminated stainless steels, high

European oil & gas

contact, galvanic corrosion cannot occur. GPT manufactures a number of different flange isolation kits to suit varying applications and conditions. For critical service applications, the company manufactures systems that have a metallic central core, which has a high dielectric strength GRE retainer bonded to both sides so as to effect the electrical isolation. Historically, the core material utilised was generally a stainless steel 316. However, over recent years there has been a growing demand for more corrosion resistant materials. GPT’s engineering teams in the UK and US have developed gaskets with a number of different cores, which have been required by operators to suit various applications. Such cores include 316L, Duplex, Super Duplex, Inconel 625, inconel 825 and titanium. Robert elaborates: “We are the world leaders in the design and manufacture of flange isolation kit technology and we expect to maintain our standing because we listen to the customer, understand their needs and invest heavily into research and development so as to meet their needs and maintain the integrity, and indeed safety of our clients’ facilities worldwide.” With conventional metallic ring joint (RTJ) and spiral wound gaskets, there is always the opportunity for corrosion to occur. Galvanic corrosion can be a major issue with metal-tometal contact. Different metals have differing potentials and when they come into contact with each other can cause a galvanic reaction that results in corrosion, which can be costly and dangerous. Also, as the RTJ and spiral wound gaskets do not match the flange bore, there is a small gap between the flanges in which deposits can build up, thus creating the potential for corrosion. GPT’s Isolation Gaskets match the bore of the flange and pipe schedules, which eliminates the risk of deposits forming and reduces the risk of flange corrosion. The whole range of GPT flange isolation gaskets have seals, which are fitted into machined grooves on the sides of the gaskets. This means that the GPT’s Flange Isolation Kits can be utilised in any flange type including RTJ. For RTJ flanges, the seal location is fixed between the RTJ groove and the bore of the flange thus rendering the groove redundant. The robust design and construction of the isolation gaskets means that they can withstand extremely high-pressures and are regularly used in ANSI flanges up to class 2500 and API 10,000.

GPT

GPT gptindustries.com

Services Engineered pipeline solutions

Poised for

European oil & gas

europeanoilandgas.co.uk

growth

VerdErg Connectors Ltd

is a company destined for meteoric growth. Since it was last featured in European Oil and Gas Magazine in 2010 its turnover has risen by 300 per cent and similar growth is planned to continue to £100 million per annum by March 2018. To contend with the significant contracts awarded in 2011/12, the company has increased its workforce from around 50 personnel to over 140 in the last 12 months. However, there is more to come. VerdErg, it seems, is placed to become a major force within the oil and gas sector in the coming years. The company can trace its history back to the late 1970’s as one of the original engineering consultancies in the emerging subsea market. Its founders were originally experts from Vickers Oceanics’ manned submersibles business, who left to create their own company, knowing that advances in robotics and instrumentation would give Remotely Operated Vehicles industry dominance. The company was originally known as FUEL (Furness Underwater Engineering Limited) and gained a respected reputation for developing advanced subsea technologies. In 2002, it was acquired by the Houston-based INTEC Engineering as a springboard for its entry into the European market place. Later that same year the Dutch Heerema Group purchased INTEC, including its ex-FUEL business unit. By 2005 the ex-FUEL segment of INTEC’s operation was subject to a management buyout and renamed VerdErg; ‘Verd’ is a word with the root meaning green in many European languages and ‘erg’ is a unit of energy. The new name was chosen to be representative of the

company’s ongoing philosophy of providing ecological solutions to the energy market. Today, VerdErg’s operations are divided into two distinct areas: VerdErg Connectors, servicing the subsea energy market and VerdErg Renewable Energy developing wave, tidal and river hydropower technology. The company has enjoyed a longstanding relationship with BP, operating within the environmentally hostile West of Shetland region of the North Sea. Since 1991 VerdErg has provided BP with all of its connection equipment in the Shetlands basin, representing a core of VerdErg’s business. However, in recent years, as VerdErg has grown and developed, it has expanded into new areas and increased its customer base to include several other major operators such as Chevron and ExxonMobil. “Up until 2005 we had been serving one major client, which was BP,” begins managing director Richard Freeman. “Following the management buyout we invested in product development, giving breadth to our product range to be able to appeal to new clients. A major milestone for us was that in 2009 we had shifted from being largely dependent on BP to their projects being only 30 per cent of our turnover.” In 2012 the company was awarded a contract that would again change the focus of its business. Reflecting its long-term history with the company, VerdErg was awarded a major contract by BP within its ambitious Quadrant 204 project, West of Shetlands. The contract not only provides immediate activity for VerdErg, but is set to run for the next 20 years with various field developments evolving to carry it forward. However, while involvement with the Quad 204 project will undoubtedly be a major source of activity for VerdErg in the next few years, work for new clients has also been secured as Richard elaborates: “You could be forgiven for thinking that our work is again rather dominated by BP, however we have won another contract with a major operator that is of comparable size that we hope to be able to announce soon. We were also involved in the Angola Block 31 project and are currently bidding for similar work offshore Angola that gives us an exciting prospect for growth there too.” VerdErg was also awarded a contract with yet another major operator during 2012 to design 20” connectors for offshore Eastern Canada. More recently still, it has been awarded a contract for the supply of a side-by-side, run-toplace rigid horizontal system combined for 8”

clients” comments Richard. “We join their teams early on, looking at field layout design to make sure the connections can be made and obviously we work in designing and procuring the equipment for them. We aim to have the same relationship going forward with our newer clients and we have engineers embedded within their teams to achieve this. In some ways being a smaller company allows us to be more collaborative than some of the larger companies.” Moving into the future the company is keen to continue to build on its current strengths and further solidify its reputation, as Richard closes: “There are very few companies that focus solely on connectors. We are currently about the fifth largest out there and we plan to be the third largest within five years; and with our current contracts we are set to do that. We are then keen to grow from 20 per cent to 33 per cent market share, which would put us just behind the major hardware manufacturers. They obviously have a lot of other equipment in their portfolios, whilst we work exclusively in connection systems.”

There are very few companies that focus solely on connectors. We are currently about the fifth largest out there and we plan to be the third largest within five years

VerdErg Connectors verderg.com

Services Subsea connector solutions

europeanoilandgas.co.uk

and 16” connection sizes, this time for one of the industry’s leading main contractors. The company’s success in maintaining long-term relationships and in attracting new clients can be attributed to the high quality of its product and in the professional approach it takes in its operations. “The connectors we supply are owned by the operator for the entire life of the field, this ties us in to the field throughout its operational lifetime. So we have developed very close relationships with our customers and especially our longer-term

VerdErg Connectors

European oil & gas

PROFILE

europeanoilandgas.co.uk

A renewable

European oil & gas

The past three years

Above Solar towers at Abengoa Solar's Solucar Complex, Seville, Spain Below Svante Bundgaard, CEO of Aalborg CSP, at Abengoa Solar's Solucar Complex, Seville, Spain

have been an important period in the development of Aalborg CSP. The company was formed after the successful merger of BK Aalborg and BK Engineering, which took place on the 1st January 2011. Owing to the onset of the global financial crisis it was decided that co-operation between the two companies would allow for a more streamlined approach to the market and strengthen both entities under a single brand. The sharing of knowledge and expertise within the new company also means that Aalborg is able to offer highly targeted and focused solutions to the growing concentrated solar power (CSP) market at a time when renewable energy sources are becoming increasingly important to the environment and to the global economy. Despite the growing need for affordable energy within domestic and commercial markets, the global economic crisis has had a significant impact on the renewable energy sector as a whole, as governments and industry turn to more traditional energy suppliers. “In general our key market has been difficult since the financial crisis,” explains Aalborg CSP CEO, Svante Bundgaard. “The power plant sector of CSP is mainly driven by government programmes for renewable energy and also by the financing market’s ability to support renewable energy. This has been under pressure for some time so the development period for projects within our sector is relatively long, sometimes between two to four years. Often developments have been postponed so that we have projects that were first talked about

in 2009, which may be going ahead as ‘real’ projects in 2014. Sometimes it can be as much as five years before we can expect to move out of development and into production.” While the renewable sector faces significant challenges, it retains an important role in helping to meet the world’s growing energy needs and as such remains a robust market. Through its strategy of streamlined co-operation and by operating in markets outside of Europe and the US, where CSP is more readily embraced, Aalborg CSP has developed a strategy for positive growth over the coming years. “The European market for CSP has been really diminished in recent years and in Spain where we have been active, operating companies have been hit with some severe changes in operational tariffs. This has brought real insecurity to the market, however looking outside of Europe it’s clear that the current development is within the Middle East, particularly Saudi Arabia where there are there are some very aggressive plans to develop renewable energy as an alternative to fossil fuel. This has been promoted and initiated with some promising pace, which is very encouraging,” Svante oberves. The company continually invests in the development of new technologies and expansion into more receptive markets. Currently it is active within the Middle East and South Africa as well as Spain and it plans to expand in Chile in the near future. Within these markets Aalborg CSP specialises in the provision of advanced concentrated solar power plants. From a technical standpoint, Aalborg benefits from being the ‘new

Left Parabolic trough system for district heating in Thisted, Denmark Above 50 MWe solar steam generator system in Seville, Spain

Aalborg CSP aalborg.csp.com

Services Concentrated solar power

europeanoilandgas.co.uk

kid on the block’ and considers itself to be at the cutting edge of CSP development. “We are boiler people,” Svante says. “We are based in Aalborg, Denmark, which has a strong tradition of boiler production, which has inspired world-class boiler engineering. This is what drives us in developing the CSP market; we are focused on delivering the quality standard usually reserved for more traditional power plants to the renewable market. “The CSP industry has a precondition that power boilers leak. They are using heat exchangers that leak under high stress situations, but if you look at the oil and gas industry, it would simply be unacceptable to buy a power plant boiler that leaks. Yet somehow the CSP industry has not really realised this. We are still getting specifications from customers saying you need to allow five per cent allocation for spare parts for leaking, but if you allow leaks for any amount of time over the 25 year lifespan of these plants you are encouraging a lot of down time. Our major contribution is to focus on the traditional virtues of the oil and gas boiler market and bring them to the renewable sector.” Offering design values and standards usually found within the oil and gas sector to the CSP market is a dual-layered strategy for the company as it reinforces the need for renewable solutions in the eyes of the world’s governments and provides a real incentive for future partners to invest into the business. “We are certainly looking to grow the company, but really we are interested in lowering the cost of energy,” says Svante. “As we have seen with the wind sector, subsidies run out if you do not show you can lower the cost of energy. So we are interested in promoting the technologies that make renewable energy more effective. If you can deliver even a three to five per cent increase in energy it makes a huge difference.” Aalborg also delivers a firm understanding of the principles and challenges involved in CSP energy production. As such, it is able to deliver market-leading solutions in the design of its CSP power plants. For example, knowing that the ‘burner is not always active,’ its plants are

designed with energy storage and ramp up and down operations in mind to accommodate for diminished sunlight. It is paramount that CSP plants are able to respond quickly to changes to weather conditions and ramp up and down quickly to run as efficiently as possible, as well as to be constructed handle the stress that this imposes on the equipment. Understanding these principles has enabled the company to work with established industry partners across the globe to bring CSP to new areas. Recently, it completed an ambitious project in India with Godawari Green Energy and Lauren CCL Engineers Pvt. Ltd. Moving into the future Aalborg is committed to growing the company as well as continuing to develop the utilisation of renewable energy. One area it is keen to invest in is the development of molten salt power plants due to the relative ease of deployment and the effective storage solutions offered by the process. As the world begins to fully address the need for renewable energy in the future, Aalborg is ready to ensure that CSP energy is available to play its part in a wider energy solution.

Aalborg CSP

European oil & gas

PROFILE

TSC Offshore

success Part of TSC Group Holdings Ltd, TSC Offshore is a business division specialising in product and service supply, serving both the onshore and offshore drilling industries around the world. As such the company offers a comprehensive range of products including drilling equipment, mechanical handing equipment, solids control equipment, power control and drives, and tensioning and compensation systems for semisubmersible rigs and drillships. One prominent activity is the design, build and sale of complete rig packages for jackup rigs, semi-submersible rigs, and platform modular rigs, as well as individual jacking systems and rack materials. In addition, TSC Offshore designs and builds offshore deck cranes for drilling rigs and production platforms. Completing the supply chain, the company also provides maintenance, repair and operations (MRO) services to its clients. The in-house design capabilities means that TSC Offshore is able to meet the needs of today’s drilling operations with innovative and reliable products. Finite element analysis and 3D modelling techniques are used to simulate operating conditions, ensuring that risks are eliminated at the design stage. The company

works alongside its clients to fulfil their specific needs, and as part of this is able to develop customised solutions. Priding itself on working around the clock and around the world, TSC Offshore maintains a whole network of engineering centres, manufacturing facilities, sales offices, distribution and service facilities strategically located in all major oil and gas producing regions. This all stems from, and is managed by, TSC Offshore’s operational headquarters and central distribution centre in Houston, Texas. The wide scope of TSC Offshore has earned the company a client base that consists of many of the world’s leading drilling contractors, oil majors, offshore engineering and construction companies, and major shipyards. Many of these clients have worked with the business for over a decade, and TSC Offshore is committed to remaining their preferred vendor for future projects and upgrades. One such relationship is with Yantai Raffles Shipyard Ltd, which since March has been a wholly owned subsidiary of CIMC, which TSC Offshore signed a market agreement with in February 2010. Since then the company has delivered many projects for YSR, including a recently announced eighth jack-up rig package.

European oil & gas

europeanoilandgas.co.uk

Rigged for

PROFILE

TSC Offshore

European oil & gas

europeanoilandgas.co.uk

Worldwide Oilfield Machine (WOM)

This is for Yantai CIMC Raffles’ new Y13-1293 rig, and has a value of approximately $29.6 million to TSC Offshore. Two previous projects for Yantai CIMC Raffles have also now entered into the final stages of completion, and show the progress TSC Offshore and client have made in achieving an effective co-operation to meet the increased demand for jack-up rigs. The combination of new discoveries of offshore reserves, and the aging nature of existing jack-up fleets means that drilling rig packages and solutions are a key future requirement. By 2015, it is estimated that more than 117 jack-up rigs will have been in service for over 35 years, and as such in need of upgrade or replacement, and TSC Offshore is well positioned to benefit from this trend. Mission critical drilling rig packages are a core element of the integrated solutions offered by TSC Offshore. It’s also a main driver of the company’s revenue growth as internally designed and manufactured equipment continues to be recognised for its reliability and efficiency. In addition, TSC Offshore products are certified by the American Bureau of Shipping – Certified Drilling Standards (ABS-CDS) and other internationally notable classification authorities, assuring the industry of their high quality. This year has seen the TSC Group put in place a number of other key strategic alignments, including one with Lanzhou Lanshi Oil Equipment Engineering Co Ltd to develop the on- and offshore drilling market. This will see the two companies co-operate on equipment supply, promotion, after-sales services and global network to enhance mutual growth and market share. For TSC Offshore this means being able to take advantage of the world-class manufacturing facilities of the Lanshi Group. The company will also provide Lanshi with

competitive prices for its solid and electric control systems, and maintenance services, which will increase TSC Offshore’s share of the oil and gas equipment industry. The two companies will also jointly bid for additional offshore and land rig drilling tenders. Another new co-operation is with the China Industrial and Commercial Bank (ICBC), which will assist TSC Offshore in its aspiration to become a major player in the global shale gas equipment manufacturing market. Even more recently though, TSC Offshore has entered into a strategic framework agreement with Wuyand Iron and Steel Co Ltd, a subsidiary of Hebel Iron and Steel Group (HBIS), which will enable it to provide a one-stop service for jack-up leg rack products within China’s offshore equipment manufacturing industry. Capable of putting together the perfect package at any stage of its clients operations, TSC Offshore is a first name within its market. This is backed by the company’s strict corporate social responsibility programme, and quality management system. The effectiveness of this can be seen in TSC Offshore’s attainment of ISO 9001, and is continuously improved through planned reviews. As such the company’s customers receive only the highest quality products and services at a competitive price, in a timely manner, and with a safe working environment. It’s this model that TSC Offshore will continue in, particularly as more customers look towards end-to-end solutions. Likewise, TSC Offshore’s ability to put together an added value proposition of all products, equipment and services related to drilling, which is also managed in-house, results in highly integrated seamless solutions that deliver for the client, whatever their demands.

WOM’s patented, field-proven technologies have broken industry records and set new standards of performance making WOM products preferred by TSC Offshore. WOM has been partnered with TSC since their acquisition of Patriot Crane Company five years ago. Since then, WOM has provided TSC with ABS and CDS certified choke, cement and standpipe 15k manifolds for their H211 and H212 projects on the Super M2Self elevated drilling units constructed at the Raffles shipyard in Yantai, China. Currently, WOM is providing TSC with the control package for their H213 project. WOM is also working with TSC to provide manifolds and BOP’s for trailer mounted drilling rigs for deployment in Latin America and South America. The manifolds were manufactured at WOM’s Houston and India facilities and were assembled and tested at WOM’s API approved India and Singapore locations. Utilising the patented Magnum gate valve that has made WOM the industry standard for reliability and quality, the 10,000 and 15,000 PSI manifolds produced for TSC are well-suited to operate under the most rigorous conditions and at the highest expectations. WOM possesses the capability to fully customise and manufacture manifolds for onshore, offshore and subsea applications, for virtually any environment and to any industry requirement.

TSC Offshore t-s-c.com

Services Offshore rig packages

PROFILE

Energinet.dk

energy The Energinet.dk pipeline project was a significant undertaking, with high complexity, intensity and many technical challenges. Energinet.dk looked for a engineering partner that was able to securely take it from A to Z. Energinet.dk trusted COWI to manage the project's main challenges. Close collaboration and a very dedicated and experienced team secured the success. COWI is very proud of this achievement and is ready to add value in future projects.

Below Torben Brabo, gas division director at Energinet.dk

Owned 100 per cent by the Danish state, Energinet.dk was established in December 2004 as the transmission system operator (TSO) for Denmark’s gas and electricity networks. It is also the co-owner of the electrical interconnections to Norway, Sweden and Germany. Furthermore, Energinet.dk is responsible for the natural gas storage facility at Lille Torup in northern Jutland, and has access to a similar site at Stenlille in Zealand. “We own, operate, and invest in the development of the main transmission infrastructure in Denmark, in close co-operation with the Government and our neighbouring countries,” highlights Torben Brabo, gas division director. “On top of that we have some public service obligations such as paying subsidies in green gas production, along with our efforts to integrate renewable energies into the systems, which is all part of our focus on investment and initiatives for the implementation of green energy. We are also very involved in developing and ensuring national energy security of supply for the future.” He goes on to outline an important aspect of Energinet.dk’s operations: “Although we are a state owned company, we are run as a private business in the sense that we try to take best practice from the sector and incorporate it into our business processes. This includes things like targets, KPIs, and efficiency goals. Since our formation we have improved our benchmarking

compared to other electricity TSOs, which saw us noted as being amongst the most efficient electricity transmission system operators in Europe according to independent analysis. We also have a similar voluntary benchmarking initiative for our gas operations, in agreement with a number of other TSOs. These results are not public, but they help us to identify best practice and possible areas where efficiency changes can be made.” On the gas side of the business Energinet.dk has seen a larger shift from domestic production from the North Sea to rising imports of gas through Germany from the north European markets. As such, the company has recently inaugurated a new 94-kilometre pipeline, parallel to an existing pipeline, and a new compressor station. “This is a direct result of our open season process that we were partaking in alongside Germany, Poland, Norway, Sweden, and the Netherlands in 2009-2010. Alongside this we conducted a cost benefit analysis, which shows how the market function will improve, and how our security of supply increases in accordance with different infrastructure investments. Essentially, open season is more or less the commercial business indicator for some of these projects,” explains Torben. “With a need to ensure security of supply though, our regulator required us to invest in 30 per cent additional capacity for the new pipeline,

European oil & gas

COWI Oil & Gas

europeanoilandgas.co.uk

Bursting with

50 European oil & gas

europeanoilandgas.co.uk

PROFILE

Energinet.dk

security of supply, storage facilities for excess (wind) energy, and flexibility so that when conditions aren’t favourable we can still produce energy. For example this may be a gas system, which can generate power when the wind isn’t blowing or sun doesn’t shine. “We have two main development tasks for achieving this. The first is to integrate the wind turbines into the network with transformer stations and offshore cables, and the second is the need to upgrade the interconnectors to neighbouring countries for optimum development. This is both in terms of technical engineering so that we have a stable power system, but also commercially so that we have enough interconnectors to ensure Danish consumers have the cheapest possible power supply, and producers the bigger market areas,” he continues. Parallel to this Energinet.dk is also investigating different paths for its gas operations, both in terms of renewables and fossil fuels. “The general agreement within the Danish government is that as long as Denmark has fossil fuels in the North Sea, both oil and gas, they should be extracted,” describes Torben. “There is also the potential option of shale gas developments. Although as a country we are aiming for clean energy, we still have a large energy sector based on the production of gas. Therefore we need to ensure we have the infrastructure, for both distribution and transmission, so we can export and import these resources. But we are also looking at the introduction of green gases, such as biogas, and the possibilities of converting excess power from wind turbines into hydrogen. So there’s quite a lot that we’re doing to secure the networks for the future,” he concludes.

Energinet.dk energinet.dk

Services Gas and electricity transmission system operator

European oil & gas

to ensure that it not only supports existing needs and market players, but also that we had a better market function in the medium to long-term,” he adds. A total of 1.5 billion Danish Krone (DKK), and one million man-hours has been put into the construction of the new pipeline and compressor station. In developing the system, Energinet.dk visited several other similar projects to identify best practice for implementation. “Originally we had looked at positioning the compressor station at our border to Germany, but we concluded that there was a point elsewhere where our two main pipes meet, and so it was preferable to have the station at this intersection. The infrastructure has been prepared in such a way that it can pressurise gas at different levels for transit in each direction, giving us multiple usages from the investment. As such, in the medium to longterm the pipeline can be used to strengthen Norwegian imports, gas supply from Germany, and delivery to Poland and Sweden as required,” notes Torben. Understanding the energy mix for the future is an important task for Energinet.dk. To this end the company undertakes complex planning, which considers future capacity requirements and long-term security of supply. As a power TSO, Energinet.dk subscribes to a national energy strategy, which covers users of primary fuels in all consumption types. Into this political goals are then incorporated, which are dominated by a move towards renewable energy. “By 2020 the aspiration is to have 50 per cent of electricity derived from wind turbines, and 100 per cent from renewable sources by 2050 aiming at carbon neutrality,” reveals Torben. “This creates a number of points of note, namely

With 3600 employees the Aarsleff Group is one of Denmark’s leading civil engineering contractors with an annual revenue of DKK 6.7 billion – of which 42 per cent comes from abroad. We work as a general infrastructure contractor, and we specialise in civil engineering work, underground structures and marine construction. Within the past ten years, Aarsleff has developed competencies within railway work and establishment of offshore wind farms, and today we are among the industry’s leading players. With a history of more than 100 years, the STREICHER Group combines quality and expert know-how with many years of experience in different sectors such as pipelines and plants, mechanical engineering, civil and structural engineering as well as raw and construction material. Within its parent company MAX STREICHER GmbH & Co. KG aA, with its headquarters in Deggendorf/Germany, employs 3200 people in about 30 locations worldwide. JOHANN BUNTE is a leading German construction company with some 1600 employees and an annual turnover of more than 500 million euros. From its inception as a haulage contractor in 1872 JOHANN BUNTE became an experienced and reliable partner in different sectors such as road construction, civil engineering, pipeline and plant construction, hydraulic engineering and project development. With its headquarters in Papenburg, JOHANN BUNTE operates both nationally and internationally.

europeanoilandgas.co.uk

JV AARSLEFF – STREICHER – BUNTE I/S

Delivering satisfaction

European oil & gas

europeanoilandgas.co.uk

Established in 1996

, Palfinger Ned-Deck today is one of Palfinger Marine Group’s five business units, where it focuses on the manufacture of launch and recovery systems (LARS) such as davits and cranes for life saving purposes, work boats, daughter crafts, fast interceptors and fenders. “Originally, Palfinger Ned-Deck (Ned-Deck Marine until May 2013) was an equipment manufacturer of LARS for the marine offshore and naval industry. In 2010 we were acquired by the Palfinger Marine Group, which is focused on supplying complete deck equipment for the navy, marine and oil and gas industries,” explains Alexander Schouten, Palfinger Ned-Deck’s commercial director. Striving to provide highly reliable, innovative and customised products that reflect Palfinger Marine Group’s promise of ‘lifetime excellence’, Palfinger Ned-Deck offers LARS that are safe, economical, user-friendly and high quality. In 2009 internationally operating rescue craft designer and manufacturer Fast RSQ became a subsidiary of Palfinger Ned-Deck, a development that complements both firms’ commitment to offering excellent services in demanding market segments. “Fast RSQ is involved in rescue and daughter crafts, which are mostly SOLAS regulated designs, oil spill recovery work boats and interceptor boats for navy/coastguard vessels and release mechanisms” says Matthijs van der Ham, managing director of Fast RSQ. “We are both in markets that overlap in the offshore platform or offshore drilling unit market segment, and also in the offshore support/safety sector and our involvement in Navy/government projects. However, Fast RSQ also works on projects involving non-SOLAS workboats, such as specialised workboats, inflatable boats or for specific customer needs that could involve a local government requesting a boat for an internal lake. We can provide boats for projects that are beyond the market that Palfinger NedDeck is focused on.” Both belonging to the same group, Palfinger Ned-Deck and Fast-RSQ benefit from sharing available information internally, which enables

them to offer packages for boats and davits to clients in the oil and gas industry. A recent major contract win for the two companies was announced in September 2013 and involves the supply of UKOOA compliant rescue equipment for four emergency response and rescue vessels (ERRVs). Coming from Aberdeen based Sentinel Marine Ltd, the prestigious order announces the arrival of Fast RSQ as Palfinger Ned-Deck’s sister firm and will enable Palfinger Ned-Deck to retain its foothold on the davit sector for ERRVs. The order involves a type FRSQ 700 A seven metre aluminium fast rescue craft, a type FRSQ 1000 A ten metre aluminum daughter craft, a PRH 35H FRC davit and PRH 75AP daughter craft davit. Built according to the latest stringent industry standards, each vessel will boast fuelefficient design and a higher level of quality in on-board comfort. Once launched, Sentinel Marine’s fleet will be the youngest and most advanced serving the North Sea. “Sentinel Marine came to us wanting innovative products, so we looked at the client’s requirements and the solutions we could deliver; following this, we developed an updated davit that is based on an already proven design. Furthermore, our completely new boat design is unique and of the highest quality, which was important to Sentinel. Both boats will be manufactured out of an aluminium hull design, which is far more cost effective due to very little maintenance requirements for the material,” highlights Matthijis. “You can not get a newer design, this really is the cream of the crop for both of us,” enthuses Alexander. “By giving our customer constant input on the product they will receive we have delivered satisfaction by merging years of proven experience with innovation. We appreciate the trust and support we have received from Sentinel, which has led to us supplying them with this high-tech new and innovative concept.” Striving to offer customers excellence without compromise through reliable and profitable solutions within a worldwide network of reputable service partners, Palfinger Marine’s five business units deliver a lifelong product as part of a global brand. “Because we are part of the group we benefit from a lot of information and ideas being thrown around internally as we brain storm with one another about the needs of the market,” explains Alexander. With a strong commitment to deliver the best quality and safety standards, efficient service, reliability in every situation and capability to

To meet these needs we have been listening to what our clients want and analysing the market ahead of us so we can then set our own strategic goals for the near future and the long-term,” says Alexander. Looking ahead, Palfinger Ned-Deck sees opportunities to expand in the Gulf of Mexico, the North Sea, Africa and Brazil, while Fast RSQ is focusing on the development of its oil spill recovery boats and preparing for contracts located in arctic conditions. “The oil and gas industry is going more North of the world, so it is logical for us to further develop our deck equipment to be compliant with these harsh conditions,” explains Alexander. “As the market becomes more demanding for better technology and low cost ownership, we too must constantly develop and be innovative. We understand the challenges in the global oil and gas industry and have adjusted our company in preparation for the future. We want to be the biggest player in the oil and gas market and we see only opportunities ahead.”

Palfinger Ned-Deck and Fast RSQ palfingerneddeck.com fastrsq.com Palfinger Ned-Deck Services Designer and manufacturer of launch and recovery systems Fast RSQ Services Designer and manufacturer of rescue craft

europeanoilandgas.co.uk

deliver expert support under the umbrella of its parent company, Palfinger Ned-Deck and Fast RSQ complement one another by sharing mutual strengths and goals. “Palfinger Ned-Deck believes in sharing experience and knowledge through having an organisation structure that is flat, which means we can share information that is available between the two companies easily. This enables us to offer suitable packages for completely traceable boats and davits to our customers in the oil and gas industry,” says Alexander. Dedicated to constant development, Palfinger Marine has a strong focus on quality and pushes its divisions to improve products; this commitment ensures Palfinger Ned-Deck and other divisions change and improve in line with the ever-evolving demands of the offshore oil and gas industry. “There are a lot of initiatives within Palfinger Marine to continue developing in line with the market, which we have noticed has an increasingly higher demand on quality, supplier performance, traceability of materials.

Palfinger Ned-Deck and Fast RSQ

European oil & gas

PROFILE

quality

European oil & gas

europeanoilandgas.co.uk

Focus on

Midroc Rodoverken Midroc Rodoverken has a long history with Preem in Lysekil. Rodoverken was one of the companies that built the refinery in the 1970s and has been a strong partner since then. During the years Rodoverken has had a fixed staff on site, knowing the plant inside out and managing the daily maintenance and project. Today Rodoverken is stronger than ever, and is the biggest contractor with over 400 people on site during the turn over 2013.

Below Petter Holland, VD Preem

With a turnover of

£11.1 billion, a refining capacity of more than 18 million cubic metres of crude oil every year at its two ultramodern refineries, a lubricant factory (J/V), six operational depots and approximately 600 gas stations, Preem AB holds the crown as the largest oil company in Sweden. On top of this, the company is the biggest supplier of MK-1 diesel in the Swedish market; the diesel is a typical ‘city diesel’ with a sulphur content of less than five parts per million (ppm) and very low particles content in the emissions, vastly lower than the maximum 50 ppm quality that has been required in Europe since 2005. Focused on supplying the Swedish market with environmentally adapted, effective oil products, Preem AB’s two refineries, located in Lysekil and Gothenburg, are managed and optimised as one system, with common management, strategy, development and future plans. As a result of continuous investment, the two refineries are today among the most modern and environmentally friendly in Europe and the world; furthermore, they have been certified in accordance with ISO 14001, which represents the core set of standards utilised by companies for the design and implementation of an effective environmental management system. Recent investments, in line with new EU regulations, include the refinery in Lysekil being extended with the most up-to-date technology for the production of wholly sulphur-free vehicle fuels; the facility became operational in 2006 and makes it possible for more fuel-efficient

engines to be built in the future. Current plans are underway to construct an additional facility in Lysekil, which will have the capabilities to separate the heaviest fractions of crude oil from both refineries and refine them to create diesel, gasoline and LPG. Headquartered in Stockholm, Preem AB buys and supplies its two refineries with crude oil, before marketing and selling all products. Its strategy is to operate its refinery system at maximum capacity; approximately 18 million cubic metres per year, while also focusing production on environmentally classed products based on renewable tall oil from the Swedish forests. Qualities produced include gas oil, gasoline, diesel oils, aviation fuel and heating oils for supply customers and companies in Sweden. It is also one of the country’s major exporting firms, with more than 67 per cent of production exported primarily to northwestern Europe. To ensure high quality, all production is monitored and controlled from Preem AB’s central control room, which uses advanced regulatory systems, instruments and computers. Taking advantage of its location, which offers privileged access to Sweden as well as close proximity to crude oil supply from the North Sea and Russia, the organisation’s two refineries are both connected to deep-sea harbours. The harbours enable the company to receive very large crude carriers (VLCC) and facilitate access to export markets. Established in May 1996 when industrial firm OK Petroleum changed its name to Preem, the

PROFILE

Preem preem.se

Services Produces and sells oil

europeanoilandgas.co.uk

other adverse impacts on the environment during the energy-efficient production of high-quality fossil fuels, grow the utilisation of wind power for electrical production and upgrade waste heat into a usable energy. Following a three-year contract worth approximately SEK10 million that was signed in autumn 2010, Preem is further extending its co-operation with Chalmers University, in Gothenburg. A world leader in the research of renewable fuels, Chalmers has been involved in projects to enhance utilisation of waste heat and the optimisation of winter properties in tall oil. With refinery development playing a critical role in the transition from fossil to renewable fuels, Preem has chosen Chalmers as a key partner in its innovative work for future sustainability through carbon capture and storage (CCS) and the use of raw materials such as vegetable oil and animal waste. Over the next five years the two companies aim to focus on Preem’s sustainable refineries and the development of sustainable fuels in order to meet the increasingly important environmental and climate requirements.

Current plans are underway to construct an additional facility in Lysekil, which will have the capabilities to separate the heaviest fractions of crude oil from both refineries and refine them to create diesel, gasoline and LPG

European oil & gas

company quickly became a familiar brand to the public, as 400 Texaco gas stations and 130 OK stations in western and southern Sweden were rebranded under its new name and ‘bear’ symbol. Deriving from the English word ‘pre-eminent’, Preem’s biggest challenge is to live up to its name as a company that delivers a superior service to its competitors. Keen to market itself as an oil firm with a friendly, strong, customer focused side, a smiling bear was chosen as the symbol to reflect both the company’s size and professionalism. Boasting a 30 per cent share of the overall fuel market in Sweden, Preem is also the leading supplier in the commercial market, with a 37 per cent share in diesel sales, 38 per cent in heating oil sales and 64 per cent in fuel oil sales. With a focus on the production of high quality, high margin, cost-effective transportation fuels that meet stringent standards in both Europe and Sweden, the company’s core priorities are to lead the transition to a future sustainable society. To do this, Preem AB intends to grow the share of highquality and environmentally adapted renewable fuels it produces, minimise emissions and any

preem

56 European oil & gas

europeanoilandgas.co.uk

standpoint

Founded in Gothenburg during

Above Inside of the tank as it is almost fully erected. Visible is the scaffolding needed to build the tank, which is mainly used for inspection

1944, Rodoverken AB has a long history in storage design and installation. Its roots are naturally humble compared to the company Rodoverken would become, however when Rodolfo Arabella first began installing storage tanks for oil heating systems for domestic use, he was sowing the seeds for an industryleading brand within industrial design and installation. Crucial to the company’s growth was the unique Spiral construction method that Rodolfo pioneered and that the company has refined ever since. Today Rodoverken’s legal name is Midroc Rodoverken AB and it operates as part of the Midroc Europe group, primarily serving clients within the Nordic region but with increasing focus further afield as

emerging markets offer promising opportunities for expansion. Its business is largely split into two divisions offering storage tank solutions on one hand and pipeline installation and servicing on the other. Additionally, within each of these sectors Rodoverken is able to offer comprehensive aftersales and maintenance support for ongoing operations. For many companies operating within Europe and the Nordic region, the onset of the financial crisis emerging around 2008 caused a significant decline in business. However, Rodoverken has not only weathered the storm but has also managed to grow convincingly in recent years. Under its current CEO, Magnus Dahlberg, the company has managed to more than double its turnover since he took the helm some six years ago. Reflecting on this Magnus comments: “I would say that we have been very flexible and that we have seen opportunities early on. So we have been able to move effectively into areas where we have seen our clients’ needs developing. We have a lot of experience in these markets and with two key areas; we are able to lean on one when the other is a little slow. That has been a strong combination to have.” The intuitive nature of the company, which results from its years of experience, is complimented by the strength of its parent company as well its innovative Spiral Production method. As part of the Midroc group, Rodoverken is well supported and can rely on extensive in-house services that might otherwise prove costly to obtain. Its spiral design technique is an innovation that has proven beneficial to Rodoverken and it clients time and time again as it eliminates the need for time-consuming scaffolding and continuous heavy lifting. The technique involves the rotating of the tank from a single point so it turns almost like a screw. As it rises it can be welded at ground level so that the need for heavy lifting equipment is largely eliminated. This can be of enormous benefit where construction is taking place in tight spaces, as marketing director Fredrik Nilsson elaborates: “Sometimes a customer needs a big tank on a small site, which means it can’t be pre-built and transported, but has to be constructed on-site. With the spiral method the sheetmetal plates are welded in place from the same position at ground level, which requires only a small work area, and weather protection can be provided together with an optimum work environment. We’ve put a lot of effort into developing this method and it is something we

europeanoilandgas.co.uk

A unique

Rodoverken

European oil & gas

PROFILE

European oil & gas

europeanoilandgas.co.uk

PROFILE

Rodoverken

are really trying to make the market aware of.â&#x20AC;? A recent example of the spiral technique in operation is the highly successful installation of a storage tank for an LNG plant in Lysekil for Skangass. Having been heavily involved in the development of the LNG receiving terminal itself through its piping and engineering division, Rodoverken also provided the necessary storage solutions. The project was scheduled for completion in early 2014, however as of October 2013 the construction is complete and

the terminal and supporting infrastructure are close to operational readiness. Commenting on the progress of the installation, project manager Maths Gustasson says: â&#x20AC;&#x153;We started the Skangass project about a year and a half ago in the middle of May. By January we began the construction of the tank itself using our Spiral construction technique, then during May we had started the internal piping and by July we had finished and begun pressure testing. This is a very good technique as we are able to work safely. We have very good safety accreditation and we make sure we carry out a risk evaluation at every stage so that we are able to minimise the dangers as much as possible.â&#x20AC;? By being able to carry out projects efficiently, safely and ahead of schedule Rodoverken has earned a reputation as a reliable and trusted partner in the installation of storage tanks in the LNG market and other sectors including water, gasoline and other products. Because of this the company has a long list of satisfied customers including big names within the oil and gas industry such as ExxonMobil, Skangass and Statoil. Its recent work in Lysekil is one example of the growing list of references that Rodoverken is able to present to demonstrate its undisputed competency as it moves forward to win new contracts. Traditionally the company has been focused on Sweden and has enjoyed high volumes of work in Norway and while these will continue to be key markets for Rodoverken, it is committed to exploring new opportunities as the LNG market grows throughout Northern Europe.

Top The big roof almost in place on top of the tank Above The big roof being lifted from its production site on the ground to its place on top of the tank Left One of the best teams in the world when it comes to running the spiral method

Rodoverken AB rodoverken.de

Services Design, prefabrication and installation of industrial plants

Far East Oil Terminal Two (Feoso Malaysia)

Slick

europeanoilandgas.co.uk

solutions Incorporated in 2003, Far East Oil Terminal Two (M) Sdn Bhd (Feoso Malaysia) is a specialist third party manufacturer of lubricants for passenger car, motorcycle, heavy and light commercial vehicles, metalworking, and general industrial and marine applications. It also provides packed lubricant warehousing, base oil storage and lubricant laboratory testing services. With a strategic vision to become a world-class specialist OEM lubricant manufacturer and a one-stop lubricant solution to its customers, the plant already services both local and major companies in the majority of South East Asia and Australia. “We are a 100 per cent third party toll blender; we don’t make our own brand but blend for other companies, both local and international. A major local customer is BHP, which took over all BP gas stations; we also pack for oil companies such as BP and the Philippines firm Petron too,” explains Gan Eng Kiong, general manager of Feoso Malaysia. With its office and manufacturing plant located in a free trade zone in Westport, Port Klang, the division of Hong Kong headquartered FEOSO Group has spent the last decade earning itself a reputation as a reliable manufacturer of high quality

lubricants. “We have had a fairly challenging few years, particularly in 2008 when the financial crisis hit us quite badly,” says Gan. “The plant only really began to grow three years ago and after we improved a number of key issues including quality assurance, filling capacity, staff competencies and high staff turnover. For example, we had a very high staff turnover, which meant training people up for jobs was almost impossible. To stabilise turnover we empowered staff by getting personnel involved in decision making and offered training.” Strategically located in the West Port of Port Klang, the 12th largest port in the world, Feoso Malaysia’s plant of 6.7 acres has a dedicated base oil pipeline of 0.7 km length that connects with the shared jetty; it is through this pipeline that base oils via vessel are transferred directly to and from the plant. “The fact we are located at a port where we can buy our main ingredient, base oil, in bulk is definitely a key strength of Feoso Malaysia,” highlights Gan. With a production capacity of 50 million litres of lubricant annually in one single shift, Feoso Malaysia has a total of 24 base oil storage tanks that range in size from 17 MT to 1750 MT. These have a total storage capacity of 10,000

European oil & gas

PROFILE

60 European oil & gas

europeanoilandgas.co.uk

MT, however Gan has plans to double this amount over the coming years. “We have 6.7 acres so there is a lot of space for us to expand into, and we are currently looking to expand our sheltered warehouse where we store both raw materials and the finished products; once we get local council approval we aim to expand it by 25,000 square feet. This will enable us to enhance our warehouse and transport services to become more of a one-stop lubricant solution to our customers,” he says. “We are also looking at building new tanks and taking our capacity to 20,000 MT, which will allow us to store much more base oil for both manufacturing and rental services. We want to deliver a complete solution, customers can give us an order, we can send it to their end user; our clients don’t even need to see the product.” Having earned a reputation as a manufacturer of high quality lubricants, the terminal prides itself as a specialist in its field and is committed to constant improvements in all areas of production and services to meet the evolving needs of its wide customer base. To deliver satisfaction, each and every blend made by Feoso Malaysia is tested at its state-of-the-art lubricant testing laboratory, which ensures each and every blend made by the terminal passes its stringent quality control process. All raw materials for the manufacture of blends must also be quality tested and monitored by its qualified chemists. On top of this, the laboratory provides analysis on used oil, reporting on the condition of the used oil

as well as an insight into the engine’s/machine’s condition. Committed to a high standard of quality, the ISO 9001: 2008 certified Feoso Malaysia works only with reliable suppliers of its raw materials that are also approved by major oil firms. Suppliers of base oils include Petronas (Malaysia), ExxonMobil (Singapore) and S-Oil (Korea); the company also works closely with the best additive suppliers such as Infineum Lubrizol and Afton. Other facilities at the terminal include a drum yard, which takes up an acre and a half of land to store finished lubricants and additives in drums, five blending tanks in sizes ranging from 40 MT, 20 MT, 15 MT, ten MT and five MT; these give the terminal flexibility in the blending of lubricants for a variety of volume requirements. With a strategic vision to become a one-stop solution, the terminal is focusing on warehouse and facility expansions; these include acquiring a further three filling machines to triple filling capacity and building four new blending tanks of 50MT each. “The reason for the tank increase is to be able to blend additives for major oil companies,” explains Gan. “We have been approached by a number of them but we don’t have the necessary facilities to deliver this service; seeing this demand in the market, we plan to move down from purely providing lubricants to also manufacture additives and brake fluids. Ultimately we want to deliver a complete solution to all of our customers, not just manufacturing, but all related services.”

BRB International BRB International is an international additives, chemicals and silicones producer dedicated to servicing its customers with a wide range of tailor-made solutions. BRB has nine locations worldwide from which it can supply its markets and meet its customers’ needs. BRB’s strength lies in the commitment of its 150 employees, putting the customer first and being flexible in both service and product solutions. Its focus on R&D, technical field support, customised products and problem solving mentality gives BRB a unique position in the market. BRB is able to service smaller and middle size customers as well as larger multinationals.

Far East Oil Terminal Two (M) Sdn Bhd (Feoso Malaysia) feoso.com.my

Services Lubricant toll blending

europeanoilandgas.co.uk

Far East Oil Terminal Two (Feoso Malaysia)

European oil & gas

PROFILE

solution

European oil & gas

europeanoilandgas.co.uk

The whole

With the pressure for business development and growth at an all time high, BHDT has been taking growth in its stride. Having expanded into its role as a key manufacturer and supplier to the oilfield market, European Oil and Gas Magazine spoke with project manager Wolfgang Lussner in June 2012 about BHDT achieving a balance between its traditional approach and future progression, and 16 months on, there have been significant changes at the business. Between 2009 and 2012, alongside customer growth and product development, BHDT actively pursued its premises growth with the purchase of a new workshop and new properties for future expansion. The challenge, reiterated by Wolfgang in the previous feature, was to maintain the high quality and reliability that it is renowned for, whilst increasing its speed of operation. In an industry that relies on the highest quality materials, manufacture and testing, it is essential to have state-of-the-art production processes. To conform with the standards required and expected by customers and industry, one of the steps in the process of manufacturing high pressure systems and components is to perform destructive material tests and non-destructive examination at its premises, alongside an array of other standard examinations. Since entering the market, it was of fundamental importance to BHDT to improve all aspects of the different processes needed to deliver such critical parts as, for example, high

pressure piping for swivel systems on FPSOs. Whilst retaining overall interest in design, purchasing, fabrication and quality control, in the time since the last interview, BHDT has invested â&#x201A;Ź5.9 million into its growth with two main developments. The first of these investments was made with the focus of equipping the business to tackle the increasing demands of quality assurance imposed by the industry and demanded by its customers. BHDT has used its investment to commission a new building of 700m2, constructed solely to house its development and growth of product control. BHDT now provides the additional space to nurture and grow in this area, with the testing of industry specific high-pressured materials in a uniform fashion alongside the manufacturing process. By drilling to the core requirements of its customers, BHDT has displayed understanding in its desire to provide the market with adaptable components and systems based on quality. Using the same strategic approach for the design and development procedures of its products as it does with business strategy BHDT is showing outstanding results both in production and growth. Its policy to improve the business as a market leader for the entire product field by using top technology and quality has been supported in its investment in an innovative fatigue testing machine, which offers high frequency pulsation testing of new materials with pressures to 4000

BHDT is also offering a 100 per cent leak free connection in its range of metal-tometal connections with special steel seal rings, providing three sealing surfaces in one joint

BHDT GmbH en.bhdt.at

Services High-pressure equipment and high-pressure components

europeanoilandgas.co.uk

bar, allowing the business to meet the global demand of the capacity increase that the industry is experiencing. Alongside quality, its president Dr. Harald J. Aichhorn recognises the importance of the development of technology, and has actively sought to further this area of the business. A large part of the investment, mentioned previously, has been made in the acquisition of two new deep hole-drilling machines - doubling the capacity of its deep hole-drilling. The increase of its high precision drilling operation allows BHDT to comfortably meet the demand to manufacture high-pressure tubes up to 21m in length with a drilling diameter from 20 to 200mm. The modern production equipment and the knowledge of its highly trained work force permit the treatment of a range of materials, whilst allowing very small fabrication tolerances. BHDT produces a wide product line of flanges in all sizes, including weld neck, blind, cladded and swivel flanges, but has further developed its range of compact flanges. This design offers outstanding benefits in situations where weight and stress are critical factors in pipe design. In comparison to the ANSI flange connection the compact flange range can save up to 80 per cent of weight, withstanding high bending and tension loads without leaking. A massive benefit of this is the reduction in time spent on retightening bolts following such stresses on these joints in systems. BHDT is also offering a 100 per cent leak free connection in its range of metal-to-metal connections with special steel seal rings, providing three sealing surfaces in one joint. The development of this range is providing a secured future for high-pressured installations.

Having developed a key working relationship with the specialist coating company, Stieg GmbH, the last 16 months have continued to show increased demand within the oilfield equipment market. The willingness of the company to adapt to demand and produce industry ready products is proving an influential trait in the market. In recognising the importance of knowledge development, and adhering to its direction of working closely with its customers, BHDT has recently involved itself in workshop training. This equips it to offer in-depth instruction on an array of its products. As the industry rolls into 2014 BHDT is looking towards its own role. Continual growth, and developing its core infrastructure to maintain its position as an industry leader will feature heavily in its scope, and by working closely with its customers BHDT is continually reviewing their fundamental needs, which will drive the business forward through the next year.

BHDT GmbH

European oil & gas

PROFILE

strongly

European oil & gas

europeanoilandgas.co.uk

Sailing

Part of the long established Awilco AS Group, Awilco LNG has been operating LNG vessels since early 2011. The company was formed following the acquisition of three 125,000 cbm LNG carriers: WilGas, WilPower, and WilEnergy, which it has been operating ever since out of its headquarters in Norway. Speaking previously to European Oil & Gas Magazine, chief executive officer Jon Skule Storheill said: “Arguably the core strength of the company is the fact that it has available ships to be utilised in the very tight tonnage situation that exists today, whereas most LNG vessel

owners have fixed the majority of their fleets to long-term contracts. “This fact places the company in a particularly good position, especially at a time when the market has quickly improved for ship owners. This clearly demonstrates the increased demand for LNG transportation services.” 2011 was a very strong year for LNG transportation following the Fukoshima tragedy with increased ton-mile and high production from LNG plants and through 2011, Awilco LNG’s vessel utilisation increased from 27 per cent in the second quarter to 88 per cent by the fourth quarter. 2012 proved a little disappointing with LNG production coming off rather than showing the expected increase, leading to a slightly more challenging market with rates coming off their highs of some USD 150,000 pd for modern vessels early in the year to around USD 100,000 pd at year end. This is a level that has been more or less unchanged for 2013, as Awilco LNG is taking delivery of its two newbuildings from Daewoo Shipbuilding & Marine Engineering Co Ltd in Korea. Both are built with membrane tanks, as

Clearly Awilco LNG continues to see good things from the market as the company is currently considering plans to expand its fleet even further with a number more newbuild vessels, which would be delivered in 2017. This development is in tune with the strategy that Jon had set down previously: “Awilco LNG’s overriding goal is to create shareholder value. To do this we need to continue to show excellent performance to our customers and make the most of what we have in terms of capabilities and assets, while also making sure to grasp the right opportunities to grow the business as and when the chances present themselves.”

From an environmental perspective, the company continues to work to minimise the impact of its fleet with a zero tolerance for spills, emissions of ozone depleting substances, and dumping of waste

Awilco LNG awilcolng.no

Services LNG vessels

europeanoilandgas.co.uk

opposed to the moss type tanks that are on the original three vessels, and boast tri-fuel DFDE engines, which are the most efficient and ecofriendly technology, as well as being larger at a capacity of 156,000 cbm. The first new vessel, WilForce, joined the fleet recently and has already fixed its maiden voyage, with the second, WilPride, due to be delivered by the end of the year. At present both the WilForce and WilPower are being technically managed by Awilco LNG Technical Management AS (ALNG TM), which is the company’s in-house technical management business. The WilGas is also set to join shortly. On delivery, WilPride will also come under ALNG TM’s management. In contrast V.Ships LNG, the largest player in that market, is technically managing WilEnergy. All commercial operations of the vessels are handled from Awilco LNG’s main office in Oslo. The main objective of Awilco LNG is to ensure the satisfaction of its clients. As such the company strives to attain and maintain a level of quality that is considered to be the best in the business. This includes the application of international standards for quality and safety such as ISO and ISM, and employment of professional staff with training delivered in all areas of responsibility. Safe and efficient ship operation not only means on-time delivery and high service levels, but also ensuring there is no accidents, personal injuries, or environmental damage as a result of these activities. By managing the safe custody of its vessels, and customers’ cargoes, Awilco LNG believes it can position itself as the shipping company of choice. From an environmental perspective, the company continues to work to minimise the impact of its fleet with a zero tolerance for spills, emissions of ozone depleting substances, and dumping of waste. Likewise, Awilco LNG is undertaking work to reduce its NOx and SOx emissions in line with industry regulations. Well-trained and informed staff are key to achieving these aspirations, as is a robust safety management policy. The volume of short-term contracts being awarded in the LNG market has certainly been a boost for Awilco LNG as the company has a fleet of tailored tonnage that is readily available to meet those needs. It has also benefited from the extensive experience within the shipping and offshore segment of its parent company, which has helped it quickly establish itself.

Awilco LNG

European oil & gas

PROFILE

Redefining

boundaries

European oil & gas

europeanoilandgas.co.uk

Asisto

Asisto specialises in the design, engineering and manufacture of control systems for the dredging, offshore, underwater and heavy lift industry, and is the main supplier for electric and software control systems to Innovative Input (II). The company delivered its first control system to II about ten years ago, for winches on a 2000T sheerleg in Dubai, and since that time the relationship has gone from strength to strength. Asisto is frequently consulted by II in its quotation phase, and can offer advice on the selection of electric parts, sensors and software solutions.

Perhaps more so

than other companies operating within the oil and gas sector, Innovative Input is a company founded on a principle. During 2001 Innovative Input was established by its current managing director Piet Kalkman with the vision of supplying specialised heavy equipment for offshore, onshore and civil applications. Coming from an acclaimed background within the sector Piet founded the company with a profound commitment to knowledge, creativity and experience. As such, it is renowned for expecting that its engineers are able to judge what is technically possible; thinking as inventors and acting innovatively to reach goals. By committing to this philosophy of innovation, the company has set itself apart as a forward thinking and progressive partner. Innovative Input is headquartered in Ridderkerk, Holland and started life purely as a design office. However, following the success of its product applications it expanded into the delivery of tailored equipment and began to co-operate with external partners to facilitate the production of its bespoke designs. Furthermore, the company is able to work with its clients at every level of product application including concept studies, basic designs, calculations, detailed designs, drawing plans and the final delivery of manufactured equipment. Although the company provides specialised designs based on its customers’ requirements its product portfolio can be broadly separated into cranes, winches, lifting gear and special equipment. Its cranes have been designed for applications including heavy lifting work, floating derricks, A-frame constructions and pipe handling systems and can be manufactured for weights of 400t, 600t and more. All of its cranes are delivered completely assembled and are fully tested for functionality in the presence of an independent, certified inspection authority. Similarly, a global network of aftersales support ensures that service levels are

maintained and that customers can operate the company’s innovative design with confidence. Complimenting its cranes, Innovative Input’s range of lifting gear is likewise designed to meet the requirements of its customers ranging from lifting, cantilever/equaliser and spreader beams to yokes, swell compensators and more. As well as supplying its clients with tailored design applications, Innovative Input is able to recognise industry trends. To this end it includes equalisers as part of its standard delivery programme in anticipation of customer requirements. In terms of its winches, Innovative Input is able to provide lifting solutions of a capacity up to 650 tonnes for a variety of offshore and onshore applications. Winches are often subjected to high stresses and demands and as such, special designs are often required to ensure the suitability of the equipment. Owing to its bespoke design portfolio, Innovative Input is able to provide winches for a host of applications including anchor, traction, hose and umbilical winches as well as capstans and for floating derricks. At the core of the company’s vision is its commitment to providing unique solutions to more unconventional jobs. Over recent years Innovative Input has delivered a number of highly specialised and challenging solutions to clients all over the world. These include the engineering of an Upper Side Arm to aid the pipelaying process onboard a deepwater vessel operating within a high swell environment. The arm was designed to guide special pipeparts vertically and consists of a stable arm and ‘hand’ coated by a polymeric material. The arm is designed to be rested on a diagonal pipe that also serves as storage for the equipment when it is not in operation. As well as fully designing this custom machine the company also carried out full FEM calculation to assess its working capability. For all of its design applications, Innovative Input’s specialist team are on hand to help customers establish how to best meet their requirements. Innovative Input is able to count itself as an industry leader when it comes to cutting edge design solutions. It has developed a close relationship with its producers and subcontractors as well as with its suppliers to ensure that it can service its customer effectively. This spirit of co-operation helped the company win a challenging project for a modular spreader beam system during July 2013. The requirement

market, however despite the international placement of its clients it is interesting to note that increasingly its operations are focused in China. “A lot of European firms are keen to build in China because they think it is cheap,” says Piet. “However, when you are building ships you need to produce the equipment there too due to the cost of transport. Because of this we are becoming increasingly active with partners in China in the production of equipment for European clients.” As it moves in to 2014 and beyond, Innovative Input is committed to continuing to provide robust and revolutionary design in the ever increasing demands of the oil and gas industry, as Piet concludes: “Conformity becomes an enemy for us. We see new inventions as not being a threat to shareholders and business, but as the key in driving industry forward. We are keen to improve the efficiency of the industry and we are looking for people with the courage to try new designs and innovations, both as part of our company and as partners.”

Innovative Input innovativeinput.nl

Services Unique design solutions

europeanoilandgas.co.uk

for the system was that it was able to spread from 2m to 26m in multiple steps with a design load of 1250t. The beam sections were required to fit in a single 40ft container for transportation purposes and had to be designed according to DNV specifications. The relatively short delivery time of the project meant that many companies were not able to meet these requirements in a satisfactory enough way to convince its client to award the contract, however Innovative Input was able to demonstrate its readiness and take on the project. Piet elaborates: “We have very good contact with our suppliers, classifying bodies and subcontractors. In this case got them all together in one room along with our client to host a meeting showing that we had every stage of the project in hand and accounted for. The client was impressed to see how effectively we could manage and centralise all of the project’s needs and awarded us the contract, which we were able to undertake successfully.” The company’s dynamic product portfolio and bespoke solutions find it servicing a global

Innovative Input

European oil & gas

PROFILE

europeanoilandgas.co.uk

European oil & gas

Burning

ambition Duiker

Combustion Engineers has earned a reputation as a leading name in combustion technology since it began supplying equipment to the petrochemical industry during the 1950s. Its main activities include designing, supplying and installing a range of gaseous fuel process burners for oil refining, chemical and natural gas processing ventures all over the world. It provides a comprehensive range of equipment including burners, vessels, waste heat boilers, burner management systems and instrumentation. Whatever the project, the company’s expert team of engineers is dedicated to delivering cost-effective, environmentally friendly and uniquely tailored solutions. During the 1950’s the company’s original portfolio included mainly in-line, reducing gas generator and incinerator burners. However, as the company has progressed its global experience and technology-focused innovation have allowed it to further push the limits of burner design for a range of applications including normal

air, enriched air and pure oxygen. Duiker is committed to investing in the development of new technologies and currently has five dedicated research and development engineers as well as a fully functioning in-house test facility for burners and associated equipment. The company built the world’s first oxygen enriched burners for sulphur recovery and today is able to supply its smallest burners with a capacity of three tons of sulphur per day to its main burners that handle 2000 tons per day. At present sulphur recovery remains Duiker’s main market. It supplies equipment for sulphur recovery units to most of the major refiners and gas processing companies around the world and can rightfully be considered the market leader in this niche industry. The company takes a uniquely innovative approach to the combustion process, which starts with the high-intensity mixing technology that forms the basis for all of its process burners. The burners are designed to have mixing characteristics that result in extreme reliability and allow operators to achieve the lowest possible emissions. Equally, continual refinement and innovation of the incineration process have introduced increasingly economical designs. In all of its designs Duiker is focused on low emissions, excellent flame stability, high turn-down ratios, low maintenance, reduced lifetime cost, energy cost savings and the ability to deal with upstream upset conditions. What sets Duiker apart is its knowledge of the processes in which its combustion equipment is applied. As sales manager Stijn Hoffland elaborates: “This knowledge allows us to design specialised equipment such as the Duiker high intensity, multiple vortex burner, which provides a cleaner input for the downstream equipment and is much more reliable than the industry standard. This reduces scheduled and unscheduled downtime and thus adds a lot of value to the unit.” Within the industry there have also been innovations and the introduction of new regulations that have also driven the need for innovation, as Stijn elaborates: “Legislation such as the systematic reduction of sulphur allowed in bunker fuels as well as emission reductions in the petrochemical industry drive our market. There are therefore a lot of opportunities for companies that can provide innovative solutions for the complex challenges faced by refiners and gas processing companies. “Within the industry, the shift from conventional oil to super heavy oil and tar

suitable to debottleneck existing facilities.” Duiker enjoys global coverage with its head office based in Holland, sales offices in China and subcontracted manufacturing plants in Malaysia, China, Netherlands and Vietnam. Eighty per cent of the company’s business is currently found outside of Europe. This global reach has allowed the company to focus on consolidating its position in existing markets and allow natural growth by expanding the product range that it offers its customers. Looking to the future the company is likely to remain focused on the oil and gas industries, but it is also interesting in following the renewable power industry as a possible new market. Duiker is committed to continuing the level of growth it has seen in its main markets during the past ten years by providing bespoke solutions to the complex challenges faced by its clients. With a strong product portfolio, dedicated development team and market-leading reputation, Duiker is set to lead the way in sulphur recovery over the coming years.

Gouda Refractories Duiker Combustions Engineers B.V. - Gouda Refractories B.V. The relationship between our companies is long lasting, successful and intense. Both companies are active at the high end of their markets and share certain core values such as quality and innovation. A perfect example of this relationship is the recent customised one-day refractory training course that Gouda Refractories organised at its premises for a group of sales engineers and product specialists from Duiker Combustion Engineers B.V.

Duiker Combustion Engineers duiker.com

Services Sulphur recovery and combustion solutions

europeanoilandgas.co.uk

sands results in much larger amounts of sulphur which need to be processed at refineries and upgraders. Exisiting plants often have to resort to technologies such as oxygen enrichment to debottleneck their facilities or invest in new equipment. Furthermore we see that the increased amount of bound nitrogen in the crudes further increases the hydraulic load of sulphur recovery units, due to the high amount of ammonia which needs to be treated.” Resulting from the industry trend towards super heavy oil and tar sands, Duiker has developed a patented technology that allows the processing of ammonia outside of sulphur recovery units. “This stoichiometry-controlled oxidation process can reduce the capital investment in a grass roots sulphur recovery unit (including a sour water stripper and tail gas treating unit), by ten per cent,” Stijn explains. “As the operational expenditures of this technology also lie lower, we are able to provide the industry with a cost effective alternative processing option. Finally the technology is very

Duiker Combustion Engineers

European oil & gas

PROFILE

strength europeanoilandgas.co.uk

Combined

European oil & gas

Oil States Skagit Smatco

PACCAR Winch PACCAR Winch is a global leader in the manufacture of gear, hoist, winch, and drive products. Comprised of brands BRADEN, CARCO, and Gearmatic; PACCAR Winch provides industry leading customer service both before and after the sale with over 300 team members working for its customers. PACCAR Winch is a PACCAR Company, traded publicly on the NASDAQ as PCAR.

LLC operates as part of the wider Oil States Industries Group, which can trace its roots back to 1942 when it was founded as a supplier of rubber components and other products for the Texas oil patch. During this time the group began to develop clutch and brake product lines, which would become precursors to its hugely successful ElastaFlex clutches that are now staple components in the marine, mining, paper and logging sectors. The Skagit Smatco division is a conglomeration of three companies that each brings unique experience and skill-sets to the group. The Skagit Smatco division maintains the Skagit and Smatco winch brands and also operates the former Applied Hydraulics group, which manages the company’s Nautilus range of marine cranes. Combining the strengths of each of these brands has given the group an impressive product portfolio and range of services, which has earned Oil States Skagit Smatco a reputation as a leading provider of bespoke solutions to a host of marine lifting applications. The Smatco brand was established in 1948 as the Southern Machine and Tool Company. Based in Houma, Louisiana the development of the region’s offshore drilling industry led to the manufacture of Smatco’s first winch in 1967. Since then the company has developed a standard line of winches with models ranging from 10,000 to 1,320,000 pounds line pull. As it has progressed Smatco has expanded its product line to include low-pressure hydraulic driven winches, diesel engine powered winches, electric

motor driven winches, combination drum/ traction winches, as well as storage reels, stern rollers, accessories and deck fairleads. Today, all Smatco winches are designed using a modular concept and are available with diesel, hydraulic and electrical power sources. The group’s Nautilus cranes have been successfully installed in all parts of the world since 1985, catering for offshore drilling and production duty cycles on fixed and floating structures. Nautilus cranes are globally recognised for their quality and reliability. This reputation is founded on a bedrock of efficiency, safety and functionality, which is supported by a continuous development and design process. “We have been manufacturing these cranes since the 1980s, and have an installed base of thousands globally, but the designs continue to evolve and there have been many developments that have changed the way we build cranes,” begins Tim Reggio, director of sales & marketing for Oil States Skagit Smatco. “Everything including the look and structure of the cranes has changed, so we are continuing to develop our cranes and design new models. For example, we are getting increasingly involved in the removal of older platforms from offshore oil fields, plus assisting the offshore wind farm industry with turbines being installed in various parts of the world today, which are larger and have a heavier tonnage, up to 500 tons and some of them work on what we call the cone design. What this means is that everything is contained within one central housing unit.

with the division as a whole that each piece of equipment should be tailored to its customers’ needs. Tim elaborates: “We don’t build anything that we would call ‘cookie cutter,’ everything we build is a custom application. We get in at the early stages of the design studies and co-operate with engineering companies as early as possible so that when the product goes out to the market it has already been designed for that application.” As it moves into the future Oil States Skagit Smatco anticipates significant growth. With it entering into what it identifies as ‘hot spots’ around the globe, it is safe to assume that the company will see even greater returns in the coming years. There are challenges facing the market but, as Tim concludes, Oil States Skagit Smatco is well placed to meet them: “When I think about our company, I think everybody is excited about what we are doing. We are keen to tell our customers that we are here and ready to work for them. We want to make sure that we take care of our people while at the same time giving customers excellent service and I think that we are doing just that.”

Oil States Skagit Smatco LLC oilstates.co.uk

Services Bespoke engineering solutions

europeanoilandgas.co.uk

“The idea behind this is that all of the crane’s machinery and hydraulics are contained internally inside the crane. This way, it is protected from the weather and the crane itself has offers a smaller swing radius. When you combine the cone design with the advantage of the smaller swing radius, installation of this type of crane uses less valuable floor space on a jackup, freeing deck for other functions.” Since the early 1900’s Skagit Products has been involved in the construction of heavyduty machinery for a variety of industries. It has a firmly established reputation as a leader in supplying and manufacturing deepwater mooring systems for offshore drilling vessels, pipelay and derrick barges as well as floating production systems. The brand offers windless, mooring winches, traction winches, traction winch/windless mooring units, conventional drum/windlass combination mooring units, construction vessel winches, jack-up winches, as well as hoists, underwater fairleads and deck fairleads/guide sheaves. While it offers a diverse range of products, the Skagit brand shares a belief

Oil States Skagit Smatco

European oil & gas

PROFILE

( THINK OIL & GAS ) The rugged and reliable Eurocopter range is put to the test transporting crews safely to and from assignments. Enduring extreme heat and freezing weather conditions to reach offshore rigs and wells in remote land-based locations. Specify an EC225.

Thinking without limits

EC225-O&G-EuroOilGasMag-EN-210x297.indd 1

11/10/2013 18:14

PROFILE

DanCopter

It has been a positive 12 months for Danish operator DanCopter A/S since it was last in European Oil & Gas Magazine in November 2012; currently operating in Denmark, Great Britain, the Netherlands and Nigeria, the company celebrated its first year of successfully transporting passengers in the North Sea for Shell in July 2013 and received its fourth EC225 model the same month. “Since our last interview we have invested in two new aircraft, EC225 models, one of which was delivered July 2013 and the other is due for delivery in July 2014. They will be operating within the Norwegian oil and gas market, where we are mainly focusing our attentions alongside our daughter company Blueway Offshore Norge; the North Sea’s Norwegian continental shelf is an area of huge growth right now,” highlights Jens Anders Jensen, managing director of Dancopter. Operating in the North Sea since 2003, DanCopter has successfully transported 42,000 passengers along with 740 tonnes of baggage in the first 12 months of its contract with Shell, which is due to last until at least 2017. In relation to this, the business has contracted all passengers and freight to and from Shell platforms, as well as check-in, processing and security services to SaxonAir, which has a multi-million pound business aviation centre in Norwich airport. “We started this contract with four aircraft, which has now gone up to five; three of which operate out of Norwich and two out of Dan Helder. The past 12 months

have been a very positive period for us, with operations very busy at the beginning,” says Jens. “This is due to us winning two major deals that are both starting up around the same time, one being the biggest contract in the Danish sector with Maersk Oil, the other being the Shell contract. However, operations are now more stable and are going very well; we are now focusing on consolidating these contracts and also preparing for another contract with Shell that will start on 1st July 2014.” Traditionally the role of crew transfer vessels, the offshore transportation of personnel and materials has seen increased competition from helicopters, which offer a cost-effective alternative with benefits such as faster flying times and the ability to bypass challenging wave conditions. Undertaking its first flight on 1st February 2003, the operator today has ten years experience in serving major oil companies such as Hess, Dong Energy, Det Norske and Wintershall. In 2008, the company’s market was further strengthened when Norwegian group Blueway AS, boasting many years experience in providing helicopter services both on and offshore, acquired 100 per cent of its shares. Following this takeover, Blueway and DanCopter formed a new daughter company in 2009 to specifically serve its customers in the Norwegian sector, Blueway Offshore Norge Since its inception, DanCopter has aimed to provide safe and punctual transportation of personnel to vessels and platforms in the

European oil & gas

chopper

europeanoilandgas.co.uk

Happy

PROFILE

DanCopter

European oil & gas

europeanoilandgas.co.uk

eurocopter

North Sea. To consistently meet these goals, it adheres to three core values: safety, flexibility and precision, with safety taking a core area of interest, following the suspension of the EC225 from service in 2012. “Safety is a top priority for us as we focus on trying to be the best in class for flight data monitoring, particularly in the way our pilots operate the aircraft and monitor components to prevent breakdowns,” says Jens. “We have had a policy for mandatory analysis of the component monitoring system in order to pursue any unwanted developments in the components of the helicopter. This is an area where we believe there is a lot of work to do in order to improve safety, both in the way we operate the helicopter and also the condition of components in the helicopter.” The EC225 was suspended from service by EASA after an investigation into the main gearbox shaft failures of this type of helicopter in the North Sea in 2012. However, EASA approved the prevention and detection measures developed by Eurocopter, allowing the EC225 to return to service around the world. “Because the EC225 was not accepted to fly for a period of time with our customers we are now getting back into full operations for that helicopter type. Our two new EC225 investments will be operating in the Norwegian offshore market, with one dedicated to our July 2014 contract with Shell.” Able to carry 19 passengers on heavy-lift missions to platforms 150-155 miles from land, DanCopter is confident the helicopter type’s large cabin and ability to deal with winds, icy conditions and waves makes it ideally suited for the challenging task of transportation in the North Sea. Executing operations with helicopters

representing ultra-modern technology, safety and comfort, DanCopter’s fleet includes six Eurocopter EC 155 B1 helicopters, six AgustaWestland AW139 helicopters and four Eurocopter EC225 helicopters. Despite a focus on the North Sea, in and around Northern Europe, the company’s long-term relationship with Shell resulted in operations expanding into Nigeria for the first time in July 2010. Activities commenced for the multi-annual contract in co-operation with DanCopter’s Nigerian partner and are still ongoing as the country continues to gain increased interest from the oil and gas industry, as Jens elaborates further: “We are working with our Nigerian partner Caverton Helicopters on the Shell contract, with six AW139’S operating out there on a fleet basis. We are also looking at other areas of interest in Africa, particular where we can use our experience with the knowledge of a local partner.” With 95 per cent of DanCopter’s business based around crew transportation, the company has rapidly established itself as a leader in its field by ensuring personnel arrive at their required destination on time and fit to work. Having developed a solid reputation, the company has grown from a small operator to one of the largest in the oil and gas sector; a development that Jens views as advantageous to its future growth. “DanCopter has enjoyed huge growth over recent years, which is because we are a very practical company that is trying to retain the flexibility of our smaller company roots while also offering the safety and quality of a large company. We aim to continue focusing on safety throughout all of our operations in the North Sea and Africa,” he concludes.

Energy high in the sky Eurocopter is well aware that of all its civil customers, it is oil and gas operators who face the most demanding working conditions: maximum availability, the highest possible safety standards and optimised operating costs. Eurocopter makes all its resources available to customers such as Dancopter, helping to ensure their missions are a success. Operating six five-ton twin-engine EC155s, Dancopter has been carrying out missions on behalf of Shell to platforms in the southern North Sea and Den Helder since 2003. Thanks to this helicopter’s fast cruising speed and spacious cabin accommodating up to 12 passengers, Dancopter’s EC155 fleet has carried nearly 42,000 people in the last 12 months. Dancopter also has four EC225s, with a fifth scheduled for delivery in summer 2014. These aircraft perform passenger transport missions to offshore oil platforms in the Danish sector for customers such as Maersk Oil and Gas. The EC225 is the oil and gas industry’s helicopter of choice thanks to its seating capacity of up to 19 passengers, its state-ofthe-art technology - with modern avionics and a next-generation autopilot - and its improved safety features. In 2012 Dancopter completed nearly 150 flight hours a month with some of its EC225s. Dancopter performs to the very best of its ability in the challenging environment of the North Sea, and Eurocopter is by its side 365 days a year to safeguard the success of its missions.

DanCopter A/S dancopter.dk/en

Services Offshore helicopter transportation

Clear

transmissions

WEC Engineers & Constructors Pte

Ltd, which was formerly known as Wah Chang Engineering Corporation Pte Ltd, was originally established in 1972 and since then has worked with numerous industries worldwide offering an extensive spectrum of services covering design, procurement, construction, commissioning and project management. Since its establishment the business has continued to evolve, and from 1997 it has secured wide-ranging projects in areas such as Singapore, Hong Kong, Indonesia, Vietnam and PRC. Typically, these are for clients including government bodies, public utilities companies, pipeline and plant customers, airport service providers, and international engineering and construction contractors. In order to service these regions effectively WEC has a number of operations centres established throughout the South East Asian sector, China and in India, where it has built and established strong relationships with suppliers, sub-contractors and business partners. Building such a strong base has been important in allowing WEC to expand its business further into the Greater Asia region, the Middle East and beyond, which is a key part of the companyâ&#x20AC;&#x2122;s forward vision. Today, WEC is principally a specialist provider of engineering, procurement, construction and commissioning (EPCC) services for large-scale infrastructure projects for the transmission and storage of commodities like oil and gas, and

water. Its core business involves offering the entire spectrum of EPCC services, encompassing everything from engineering design, sourcing and procurement services through to fabrication, installation, testing and final commissioning. Whilst the company carries out this work for a range of clients the core of its EPCC activities revolve around the key areas of aviation fuel system storage, transmission pipelines, and plant engineering and specialised projects. However, thanks to its considerable experience in the industry WEC regularly partakes in the design and construction of long distance transmission pipelines, complete with leak detection, SCADA and CP systems, as well as specialised plant piping systems complete with process storage tanks. Experience and skill are in fact some of the key strengths of WEC in setting it apart from its competitors in the industry. The business has a long tradition of working closely with clients across a broad spectrum of sectors, including both multi-nation and local conglomerates in the oil and gas industry. This is demonstrated in the companyâ&#x20AC;&#x2122;s proven track record of repeat contracts with many clients, including Power Gas of Singapore and the Changi Airport Fuel Hydrant Installation Company Pte Ltd. In order to maintain such a reputation, and thus continue to be a leading player in its field, WEC relies on the expertise of its people and the stringent quality standards that exist throughout the organisation. As Lee, Chak

europeanoilandgas.co.uk

WEC Engineers & Constructors Pte

European oil & gas

PROFILE

76 European oil & gas

europeanoilandgas.co.uk

WEC Engineers & Constructors Pte

Through a combination of high-quality and superior expertise and knowledge, WEC Engineers & Constructors has achieved its vision of becoming the preferred engineering services company in Singapore for infrastructure works WEC Engineers & Constructors Pte Ltd wec.com.sg

Services Provider of EPC work

europeanoilandgas.co.uk

Meng, company managing director, explains on WEC’s website: “We pride ourselves on having the best safety records in the industry. We make a concerted effort to ensure that this culture is weaved seamlessly into best practices in our projects. We are ready for our next growth phase as we continue to embrace safety and quality through people empowerment, continual improvement through staff/worker training, and the application of cutting-edge technology as our way of life. In WEC we have dedicated and committed people working as a team, who have the passion to overcome challenges and to meet customers’ stringent quality and safety objectives.” When it comes to oil and gas projects the company is regularly involved in specialised contracts related to plants and facilities, such as oil and gas production and petrochemical plants. For example, WEC has occasionally been involved in the construction of civil works and the installation of underground pipelines and above ground piping works for use with petrochemical facilities in and around Singapore. These have been for clients such as Bechtel International, Foster Wheeler, Stone and Webster Asia Inc, and WorleyParsons. While this is related to onshore production the company also has experience of contracts in the offshore market. In 2004 for example WEC successfully completed the installation of a multi-deck offshore facility platform for oil production that is owned by CNOOC SES Ltd. This particular project, worth US$5.2 million, marked the company’s first offshore operation, during which it carried out project management

services and supervised installation works. In relation to offshore oil and gas, WEC is also involved in the construction of onshore transmission pipelines carrying natural gas from offshore installations. Such transmission pipeline systems include a number of specialised areas, such as emergency shut down valve stations, receiving stations and off-take stations, line valve stations, and launcher/receiver stations. Alongside these aspects, WEC is also capable of completing pigging operations such as calliper and intelligent pigging. Through a combination of high-quality and superior expertise and knowledge, WEC Engineers & Constructors has achieved its vision of becoming the preferred engineering services company in Singapore for infrastructure works. Over the coming years the business aims to consolidate its position in transmission pipelines and tank farms, while at the same time expanding in aviation fuel system works and creating new growth markets in plant engineering and the rehabilitation of pipelines.

European oil & gas

PROFILE

comforts European oil & gas

europeanoilandgas.co.uk

Home

Established in 2006

Flowserve Flowserve has led the development of marine thruster designs for 50 years under the heritage Pleuger brand. The Pleuger WFSD azimuthing thruster combines this experience with the latest market requirements to produce a versatile design that exceeds the demands of the offshore industry. The 7° tilted-shaft propeller maximises thrust, while a broad range of mounting options reduces installation and maintenance costs making the Pleuger WFSD the first choice for drilling, construction, and accommodation vessels.

to satisfy market demand for a new generation of offshore floatels, Floatel International Ltd has since grown to become a major player in the floating accommodation market. With ongoing contracts for both its present DP semi-submersible vessels, Floatel Superior and Floatel Reliance, both built at Keppel FELS Shipyard, Singapore, the company also has a third semi-submersible accommodation vessel, Floatel Victory, due for delivery in the final quarter for 2013, a fourth accommodation vessel, the Floatel Endurance, due for delivery in early 2015 and the recently ordered fifth accommodation vessel, due for delivery in the end of 2015. All three new builds are also being constructed by Keppel FELS. The premier provider of floating accommodation’s delivered its first asset on March 18th 2010, 43 days ahead of schedule; specifically designed to meet the latest stringent North Sea regulations for year-round operations in the harshest of environments, the Floatel Superior is currently operating for Statoil in the North Sea. Notable for being the first North Sea floatel constructed in two decades, the 440 accommodation capacity vessel was closely followed by Floatel Reliance, which was

delivered on October 29th 2010, 63 days ahead of schedule. Built in accordance with ABS class, the vessel was designed to operate in medium harsh environments and offers accommodation capacity for 500 persons; the asset is currently continuing its five year charter for Petrobas, which began in January 2011. The first four vessels have been contracted with some of the biggest oil and gas firms such as Statoil, Petrobras, Chevron, BP and Total. Floatel International’s subsidiary, Floatel International AB, provides onshore operational support services and onshore supervision of the vessels under construction. Located in Gothenburg, Sweden, Floatel International AB’s management team has more than 20 years of experience within the offshore construction and floatel service industry. Presently the company has a site office in Singapore that takes care of the newbuilding at Keppel FELS and site offices in Brazil and Norway providing onshore support for the vessels under operation. Floatel International comprises of some 300 people in total, whereof 55 persons works onshore Now firmly established in the high end accommodation market, the company has built up a solid backlog of work and the three vessels under construction are all committed for work that commence soon after delivery. This success stems from the firm’s reliability, the superior capabilities of its vessels and its dedication to giving customers the best possible service; core strengths proven in its long-term working relationships with major firms and the operation of Floatel Superior and Floatel Reliance. The next vessel due for delivery, Floatel Victory, will be equipped with DP3 positioning capability and a ten-point chain mooring system; built according to ABS class, the vessel is designed to meet the latest UK HSE regulatory requirements for operating in the harshest environments around the world. Features on Floatel Victory include 35 office workstations and conference facilities, workshop facilities for construction support, a main crane with a 120 tonne capacity and an auxiliary crane with 64 mega tonne capacity. The Floatel Victory will also possess a telescopic gangway with +/-7.5 metre telescopic range that enables the vessel to remain bridge connected in harsh weather conditions. Due for delivery in the fourth quarter of 2013, the Floatel Victory will provide accommodation for six to eight months charter for Chevron at the Jack & St. Malo project in the Gulf of Mexico. The vessel is also charted

the safe transfer of personnel to the installation and telescopic action +/-8 metres. Due for delivery in the fourth quarter of 2014, the Floatel Endurance will provide its maiden charter for six months firm plus options at Chevronâ&#x20AC;&#x2122;s Wheatstone HUC development in Australia. In line with its business model of providing high-end accommodation vessels, Floatel International signed a new contract with Keppel FELS for its fifth vessel. Similar to Floatel Victory, it is designed to meet the latest UK HSE regulatory requirements for operating in the harshest environments around the world. Despite the majority of its contracts being based in the North Sea, the company is not focusing its development in any specific geographical area, but will go where it can get the best contracts for its assets. Regardless of location, Floatel International is dedicated to continuing to give its customers the best possible service by supplying the market with modern, comfortable and high-quality accommodation.

Floatel International is dedicated to continuing to give its customers the best possible service by supplying the market with modern, comfortable and high-quality accommodation

Floatel International floatel.se

Services High-end floating accommodation

europeanoilandgas.co.uk

on a firm one year contract with BP at the Clair Ridge Development Project on the Shetland Isles on the UK Continental shelf in June 2015. This agreement comes with options for BP to extend its stay beyond the contracted time frame. As the oil and gas industry moves into harsher environments and deeper waters, Floatel International signed another contract with Keppel FELS for its fourth asset, Floatel Endurance. Similar to the Floatel Superior, the vessel is designed for operations in the North Sea, including the Norwegian Continental Shelf, as well as operations in tropical waters; the diverse vessel will be operating in an area with some of the most demanding regulatory requirements and some of the most severe environmental conditions in the world. The vessel will have an accommodation capacity of 440 persons, two large cranes with a maximum lifting capacity of 100 tonnes each and the capability to transfer goods and material to the adjacent installation. Furthermore the Floatel Endurance will have a telescopic gangway for

Floatel International

European oil & gas

PROFILE

European oil & gas

europeanoilandgas.co.uk

A strong

brand Above MaXine heave compensator

Established in 1969, IHC Motion Control is a cluster of companies under the IHC Merwede Group; IHC Hytop, IHC Winches and IHC Vremac Cylinders supply hydraulic systems and winch systems to the oil and gas, dredging and maritime industries. “As part of the IHC brand, we work closely together with IHC Offshore Systems, a sister company, as well as IHC Fabrication, IHC Piping and IHC Drives & Automation, to produce equipment and approach the market as a joint operation. Each company uses its strength and focus, together we present a total system to the outside world, with the overall market approach done by IHC Offshore for the oil and gas market,” says Wouter Kruijt, cluster director at IHC Motion Control. Specialising in complete hydraulic systems, hydraulic power units, as well as diesel power packs, controls and winches for all applications in the dredging, heavy lifting and offshore industries, ISO 9001 certified IHC Hytop’s 100 employees have the capacity and expertise to deliver complete installations on a large scale, including electric powering and controls. Using the experience and knowledge within its organisation, IHC Hytop can successfully execute projects for basic and detailed engineering, planning, production and on-site commissioning activities. With its VCA/SCC certified service team offering support to its clients 24 hours a day, seven days a week, the EPCC subcontractor can keep customer investments productive.

“At IHC Hytop in Sliedrecht, we offer two products, the complete design of hydraulic systems and also winches,” explains Wouter. “The hydraulic systems can be separate hydraulic power units called HPU, larger integrated hydraulic systems, with full piping and commissioning, or hydraulic cylinder systems; for the latter we work with IHC Vremac as they produce cylinders up to large dimensions. We also have a range of winches, including riser-pull in winches, traction and storage winches, which are powered either electrically or hydraulically. We produce the hydraulic powered winches completely by ourselves, while the electrical powering part is supplied by IHC Drives & Automation or Elma.” Viewed by its customers as an accessible, fast and flexible, transparent and high quality supplier, IHC Vremac Cylinders, with 100 employees, designs and manufactures the hydraulic cylinders, swivels and accumulators. Specialising in hydraulic cylinders for harsh and challenging environments for the dredging, offshore and heavy lifting industries, the company also supplies its services to other divisions under the IHC brand, such as IHC Engineering Business, as well as directly to other customers. With 50 years of experience in technology, engineering and manufacturing, IHC Vremac Cylinders produces at its own production and office facilities in Apeldoorn, measuring a total of 8500 square metres, to offer excellent quality products at cost-effective

Vremac Cylinders, new and larger machinery is being installed, enabling a better throughput and more complex machining. With technological innovation the group’s underlying strength, IHC Hytop and IHC Vremac continuously adapt products to suit market developments. “We recently solved a problem relating to well intervention and installation operations in deep sea areas, say several kilometres deep, which is a world where normal steel winches or winch cables will reach their limit of functioning. We found a solution through using a fibre rope cable and have made a new fibre rope winch for this development (IDsis), which has been tested and will be put in operation in the market by early 2014. This involves winch design, fibre rope design and application; we don’t have fibre rope ourselves but designed the fibre rope in close co-operation with cable manufacturers,” highlights Wouter. AT IHC Vremac a lot of development is completed continuously towards cylinder coatings for harsh applications, and recently the new heave compensation system MaXine was launched to the market.

europeanoilandgas.co.uk

prices. Dedicated to retaining its strong reputation, the company manufactures to strict quality control standards, with all materials purchased to strict specification and supplied with certificates, thus ensuring the reliability of the cylinders. As a cluster under the IHC Merwede Group, IHC Motion Control benefits from an excellent track record in the manufacture and delivery of products for the specialist maritime sector, on top of the collaborative relationships it retains with other divisions that make up over 3000 employees across the globe. On top of this, the cluster holds the same commitment to the continuous development of design and construction activities for its customer base as its parent company, resulting in ongoing investments to ensure future success. “We have two new assembly halls at IHC Hytop, each with neat facilities and excellent equipment capacity; the biggest equipment we can now manufacture internally is 200 tonnes. Our hydraulic test facility has also been upgraded and we can work with more automation as well, ensuring we are set up for the future,” says Wouter. At IHC

IHC Motion Control

European oil & gas

PROFILE

European oil & gas

europeanoilandgas.co.uk

PROFILE

IHC Motion Control

Boasting 20 per cent of the world market for offshore FPSO installation and offloading equipment, IHC Hytop and IHC Offshore Systems were recently awarded major orders of a total of ten hose reels systems for FPSO’s, likely to be extended in the future. “We have worked with all the major FPSO operators, including SBM, Modec, and BW Offshore,” says Wouter. “The market is very positive for us right now; a very nice workload and more than sufficient opportunities in current tenders, which puts us in a luxury position. We have an excellent customer base and are happy with that, but if you look into further extension you need more qualified, skilled personnel and qualified subsuppliers as well. If you are supplying winches or other systems to the offshore industry, there are rules and regulations in place, particularly if you supply highly loaded equipment as you are using high strength steels. These high strength steels then require specific skilled steel suppliers and handling suppliers; this requires our attention continuously.” Looking to the future, IHC Motion Control is anticipating an increase in interest from its new rental business for winches and heave compensation systems, which is so far proving a successful development. On top of this, the cluster is aiming to expand its geographical reach over the coming years in areas such as China and Singapore, using present IHC subsidiaries, while also generating demand for new innovative equipment, as Wouter concludes: “We expect 2014 will be the year that the fibre rope winch will be fully launched into real world operation; at the moment there aren’t many winch manufacturers who have a good and certified system. My guess is the next year will result in the turn-around period for the deep sea installation market towards the use of fibre ropes and fibre rope winches.”

IHC Motion Control ihcmotioncontrol.com

Services Design and manufacture complete hydraulic systems

lift

Heinrich Wegener & Sohn Bunkergesellschaft

m.b.H. We are proud of our long-standing business relationship with SAL Heavy Lift GmbH and look forward to its continuation for many years to come. We have been engaged in the international bunkering and lubricating oil business for over 40 years. Well-known shipping companies at home and abroad rely on our high standard of performance, and long-term co-operation, delivery and shipping agreements with more than 200 companies worldwide ensure our ability to supply our customers' ships. In addition, one of our main lines of business is the sale and distribution of SHELL-MARINE lubricants to German owners at home or abroad, placing at our disposal one of the world's largest distribution systems and enabling us, as a bulk buyer, to offer favourable terms to our customers.

SAL Heavy Lift GmbH, a member of the “K” Line Group, is one of the leading carriers worldwide specialised in the transportation of heavy lift cargo. This includes equipment for the oil and gas industry, offshore wind, cranes, heavy machinery, and floating cargo. The company is headquartered in Hamburg, and maintains an international network of agencies and subsidiaries in Japan, China, Australia, UK, Finland, Singapore, the Netherlands, and the US. In order to deliver its services SAL Heavy Lift owns and operates a fleet of 16 modern heavy lift vessels. These are characterised by their lifting capacities of up to 2000 tonnes SWL, low draft, voluminous intake capacity, and high speed of 20 knots. “We also have an in-house engineering department which develops innovative transportation solutions for individual customer requirements,” adds Lars Rolner, CEO and managing director of SAL Heavy Lift. “One of our great advantages is our fixed crew, which is employed by the company, and is well-educated by the “K” Line Maritime Academy,” he continues. “We have developed a very strong corporate identity throughout the

entire organisation, and always comply with the highest industry standards, with all staff trained and briefed according to task. Safety is our highest priority in all aspects of our business and is never to be compromised upon.” Turning his attention to the areas where SAL Heavy Lift has seen the most growth, Lars says: “Apart from our heavy lift semi-liner service from the Middle East to Far East, and vice versa, SAL Heavy Lift is deeply involved in a number of larger projects involving lifts of above 1000 tonnes. This includes the loading of a living quarter of 1425 tonnes, and measuring 42x37x36-metres – a total of 54,353 cbm, in Rotterdam, the Netherlands. With a tight timescale of just two weeks planning and preparing, SAL Heavy Lift was able to make all of the necessary arrangements. This included the design, manufacture and certification of tailor-made equipment, and MV Svenja’s standard equipment also had to be adapted to this unique job. “After loading the living quarters from a barge into the hold, the vessel transported the cargo with an open hatch and overhang of 20-metres to Geoje, Korea. Due to the huge co-operation of all involved parties, the project was completed within the expected time frame.” Meanwhile, the MV Lone has recently broken the Bremen port record for its heaviest cargo to date, as Lars elaborates: “This was for a ship loader of 775 tonnes, measuring 57.89x23.20x34.80-metres, which had been built directly on site at the Port of Bremen, which is Europe’s biggest port for heavy cargo. The biggest challenge was to keep the ship loader’s balance while being lifted, so to generate counterweight special water pockets, each capable of holding up to ten tonnes additional weight, were fixed on the cargo and regulated during the whole lifting operation.

europeanoilandgas.co.uk

The big

SAL Heavy Lift

European oil & gas

PROFILE

84 European oil & gas

europeanoilandgas.co.uk

comprising of two hinged sections, the complete unit was lifted using both the vessel’s cranes from a barge and set down on the water for towage to the wreck. The general freight market may be under pressure with rates particularly competitive, but within SAL Heavy Lift’s niche segments business remains good. Describing the changes that have been made in the company throughout the year, Lars notes: “We have established SAL Offshore B.V. in the Netherlands, which with a dedicated team of well experienced commercial engineers and HSEQ people originating from the offshore industry, will bring our company the expertise needed to successfully operate in the offshore field.” He concludes with SAL Heavy Lift’s overarching vision: “We want to expand further and grow within the super heavy lift market and the offshore installation segment. With our modern fleet combining transportation and offshore installation, we see great potential for the installation of mooring spreads, transition pieces, foundations, tidal turbines, and oil and gas equipment.”

Alex. Birger Grieg AS Alex. Birger Grieg AS is acting as general agent for SAL Heavy Lift GmbH in Norway. For decades the company has proudly been facilitating Norwegian port calls for the premium geared and semi-sub heavy lifters. The scope includes personal involvement and close co-operation with clients, authorities and owners. Dedicated and skilled staff, offering single point of contact have always been appreciated by charterers and shipowners.

SAL Heavy Lift sal-heavylift.com

Services Transportation of heavy lift cargo

europeanoilandgas.co.uk

“In this way, a safe embarkation was ensured. The entire loading was completed successfully in only three hours due to the excellent co-operation of all parties involved. After two more days of thorough cargo fixing, MV Lone made its way to Port Cartier in Canada, where the ship loader was discharged smoothly,” he continues. At the end of 2012 MV Lone was awarded its first offshore installation contract to be undertaken using its DP2 system. The success of this project saw the vessel win one of its most high profile projects – assisting with the removal of the Costa Concordia wreck. The Lone transported and installed several of the large platforms that the wreck now rests on, the largest of which weighed 1000 tonnes. Furthermore the MV Lone installed all the sponsons on the port side, which assisted in the righting of the vessel and ultimately the re-floating of it. The final part of the contract was the largest lift of all - the blister tank. This structure was ultimately attached to the bow of the Costa Concordia to assist with re-floating but also to ensure the bow didn’t break off during the righting process. Weighing 1500 tonnes and

SAL Heavy Lift

European oil & gas

PROFILE

European oil & gas

europeanoilandgas.co.uk

transporters The

Having first been established when its former parent company looked to expand its activities into the heavy lift business, today OHT AS is the third largest heavy transport vessel operator in the world. In reaching this position, the company has undergone various conversions and acquisitions in order to become a full-time integrated player in the heavy lift market. Most recently, a restructuring of the OHT Group has seen it gain a new parent company in Albatross Investering AS, now renamed to Offshore Heavy Transportation AS. Speaking previously to European Oil & Gas, chief commercial officer Dagfinn Thorsen explained the Group was left unaffected by these changes: “The management company OHT AS remains unchanged and business goes on as

usual. All chartering, engineering and operations are carried out by OHT AS through management agreements with the ship owning companies. Both the ship technical management and crewing company are kept unchanged. In fact, the technical management company is, and has always been, part of the new owner’s business.” In order to grow its presence in the market, OHT AS has always focused on offering a full spectrum of services. To this end, the company maintains a fleet of four semi-submersible heavy lift vessels, which it uses to provide dry transportation of offshore drilling rigs and onshore modules to its clients. These are the ‘Eagle’, the ‘Falcon’, the ‘Hawk’, and the ‘Osprey’. The vessels are known for their high speed and safe operations, and are backed by

PROFILE

Whilst there are other heavy lift companies out there, and the principles of what we do may be similar, we believe that OHT sets itself apart with its engineering/ operation and vessel capabilities

OHT AS oht.no

Services Semi-submersible heavy transport vessels

europeanoilandgas.co.uk

to float-off the buoyant tower, but still keep the topside module above water. The tower was ballasted to an upright position, towed to the vessel’s side and secured to a pre-installed support on the vessel’s deck. Then the topside was skidded out over the shipside and the buoyant tower was deballasted to lift the weight off the vessel and the support. It was a very tricky operation – but all went well.” Turning his attention to the current status of the market, and OHT’s prospects for the future, Dagfinn concludes with how the company defines itself against the competition: “We’re still working mainly in the spot market at present and we do see that it is perhaps stronger for this last part of the year then before. The offshore drilling market remains good, and we see a lot of new drilling rigs coming out from yards, all that we hope to see as cargo. Whilst there are other heavy lift companies out there, and the principles of what we do may be similar, we believe that OHT sets itself apart with its engineering/operation and vessel capabilities, and this will help us retain our leading position in the market.”

European oil & gas

staff with a long experience in the industry. Likewise, OHT AS focuses on the key concerns of its customers in working to arrive and load cargo on time. Earlier in the year, the ‘Osprey’ was contracted to deliver a 12,000 tonne hotel and field centre module for the Ekofisk field in Norway. “The end user is ConocoPhillips, but we actually carried out the transportation for Saipem,” notes Dagfinn. “They used their crane vessel to lift the module from our ship to the jacket, so we were working together with them on that.” The module was built by SMOE in Singapore, and then transported by OHT via the Suez Canal to Stavanger. It contains 552 single cabins, office space, a telecommunications centre, a hospital, and heli-deck hangar space for two helicopters. Whilst this is undoubtedly a major piece of equipment, OHT’s assets have transported even heavier pieces of up to 30,000 tonnes each in the past. These were in the form of three large JU drilling rigs for Rowan Companies, from Singapore to Norway and Scotland. OHT was able to achieve an average speed of 13 knots for

OHT

these deliveries, even given the 30,000 tonne weight and with almost 200 feet long legs on each rig. Following on from this, in 2012 OHT was contracted by Maersk to tow three large JU rigs. These transports will take place in 2014 and 2015. Reflecting on another successful past project in an earlier conversation with European Oil & Gas, this time with Soluciones Energeticas to move a buoyant tower from China to Peru, Dagfinn said: “This project is the first to involve a transverse mating operation (i.e. over the side of the vessel). It was also quite complicated. First the vessel loaded the buoyant tower and the topside module (on a high support) by trailers (roll-on operation). Upon arrival in Peru the vessel ballasted down with a huge aft trim

ARCA Regler can track its history

European oil & gas

europeanoilandgas.co.uk

industry Directing

Below Markus Doenni, managing director of ARCA Flow Group

back over 90 years ago when, in 1917 Ragnar Carlstedt filed a patent for the nozzle-flapper system, which represented a major breakthrough at the time and is still in use in use within the company’s field of business. The following year ARCA Regler was founded and has subsequently achieved dynamic growth, earning a reputation as a leading name in control valve technology since then. Today ARCA is a globally active group, operating under the roof of the ARCA Flow Group, which is represented in over 80 countries so that ARCA calls ‘the world its market.’ ARCA Flow Group represents over 500 employees, 220 of which are employed by ARCA Regler. It boasts a global network of representatives and joint venture partners in local offices in India, China, Korea and Mexico, giving it an instantly recognisable global footprint. Among its other accolades and achievements ARCA was recently placed on the Top list of 100 most innovative companies within the German small and medium enterprise sector (SME). Given the SME sector’s reputation for driving innovation with industry this is no small feat; ARCA’s placement on the Top 100 list is a major signifier of the company’s dedication and ability to innovate and this is a trend that it is set to continue. Its products range from globe-style, two-way, three-way, single and double seated control valves and angle style valves to hygienic control valves. Within its impressive product portfolio can be found brand examples such as

ARCA’s ECOTROL® and BIOVENT® valves. Completing its range, the company also offers angle and globe type steam conditioning valves, linear and rotary actuators as well as E/P and smart positioners and an extensive variety of accessories. Its range of products has understandably found business in a suitably diverse selection of markets including power plants, steel mills, refineries, chemical plants, food production as well as coal gasification, compressors and machinery or concentrated solar power. Partnerships and development remain key areas for ARCA when it comes to expanding and improving its range of solutions. The company was the first to develop an electropneumatic smart positioner during the 1980s, which led to the evolution of a longterm partnership with Siemens AG and the development of the world-class ARCAPRO® positioner series. In terms of industry recognition, its ECOTROL® valve is regarded as the international benchmark in control valves, with thousands of sales each year. “It’s all about generating innovations by designing them around customer requirements and by continuously advancing the underlying technology to the next level,” observes managing director Markus Doenni. “Thinking of new ways of doing things, providing a competitive advantage to our customers has always been our philosophy.” Complementing its industry recognised products, ARCA prides itself on providing

ARCA Regler GmbH arca-valve.com

Services Control valve solutions

europeanoilandgas.co.uk

excellent after sales and maintenance services. “We not only manufacture complex, ultra-high performance valves, we also strive to be the perfect partner when it comes to maintenance and complex instrumentation,” says Markus. “ARCA valves are known to be exceptionally durable, but in case our customers request on-site care, an experienced team of technicians from either of our plants, or from our global service partners is available to immediately respond to unforeseen situations – regardless of where our customers are located.” The company’s years of know-how and in-depth knowledge base ensure that it is able to carry out inspection and maintenance projects quickly and thoroughly. Through its products and dedicated global service network ARCA is able to offer targeted solutions to the oil and gas industry. It is a sector that the company sees as being highly important and in which it invests significant time and resources, as Markus elaborates: “Oil and natural gas are a primary source of energy driving the global economy. We have valves supporting extractions carried out under extreme offshore conditions or in the icy temperatures of Siberia, as well as the desert heat of Africa or tropical climates in Asia. These conditions, as well as the whole range of storage and processing in refineries, really make oil and gas a very demanding market when it comes to providing control valves that perform day in and day out. ARCA valves have helped ensure production and process reliability in this industry for many years, and a wide variety of precision-engineered control valves are available that include - but not are limited to - DN15 (1/2”) to DN600 (24") and PN16 to PN400 (ANSI 1502500) sizes as well as special-purpose valves for all media handled in these areas.” As it looks to move in to the future, ARCA is dedicated to continuing to provide excellent customer service and its trademark strong product portfolio. Research and development and a keen interest in its customers’ requirements will likewise continue to drive the business as it seeks to meet the challenges of the oil and gas sector. Operating on a global level with a highly accredited reputation, ARCA is set to be a firm industry fixture as it heads to and beyond 100 years of its business.

ARCA Regler

European oil & gas

PROFILE

future European oil & gas

europeanoilandgas.co.uk

A secure

With an established reputation for providing high quality non-standard bolts and a steady history of growth and expansion, Mellish Engineering Services Ltd has become a leading name in the provision of safety critical bolt solutions within the oil and gas industry. The family run business has over a decade of experience and has grown from servicing some local customers to tendering business with some of the biggest names operating within the oil and gas sector. Under the guidance of its director Peter Rattenberry, works director Andy Rattenberry and UK sales director Matt Rattenberry, along with export sales director Andrew and current managing director Mark Rattenberry, the company continues to nurture new business through the implementation of its robust production processes and customer driven focus. Recently, the business was able to provide a major exporter with an order worth half a million pounds and its business remains strong. The companyâ&#x20AC;&#x2122;s specialised product portfolio includes special petrochemical bolting, nonstandard and special fasteners with a full range of hexagon and socket head fasteners, studbolts, engineer studs, nuts and washers. Mellish has invested in modern state-of-theart CNC machines and also operates heat inducted forge presses, which are capable of

forging a wide range of diameters and lengths. Throughout its product range, the company is able to implement common alloy grades is well as more exotic materials such as Super Duplex, Hastalloys and Inconels. To ensure that its customers receive the right quality products on time, every time, the company operates a specialist tooling department based at its production facility. Having quality tooling such as its spark erosion and tool room equipment enables Mellish the flexibility to produce products like its hot forged fasteners in time for rapid delivery. To ensure that its customers experience total peace of mind the company operates internal and external testing facilities to allow a full spectrum of testing to be requested including MPI and crack detection. This, with full traceability and BSI accreditation solidifies the world-class reputation of Mellish products. Following its steady expansion and growing reputation, Mellish was able to acquire its sister company Tipper Engineering during 2010. Tipper was founded over 40 years ago and carries with it an established reputation as a proven manufacture and supplier of a comprehensive range of standard petrochemical bolting solutions. Its long history also demonstrates a competent and professional

a recession and then a double dip recession yet during those years we took on ten new employees, of which two were managers. We also purchased Tipper Engineering and invested in a new site. Our steady business is largely due to 70 per cent of our turnover being derived from exports to countries that weren’t affected by the financial crisis. Furthermore we do not rely on a single big customer, and not placing all our eggs in one basket has meant revenue is more consistent. Managing director Mark Rattenberry has successfully led the Mellish team to experience year-on-year growth for the past five years.” Moving forward, operating under the umbrella of Middlemore Engineering Services, Mellish is well placed to further develop its market presence and reap even greater rewards in the future. The company has successfully navigated the recession while undertaking a major transition and is now securely set to settle down and continue to tend its customers and deliver demanding orders on time, every time.

Mellish Engineering Services Ltd mellishengineering.co.uk

Services Total fastening solutions

europeanoilandgas.co.uk

track record of servicing producers, OEM’s and distributers involved in oil and gas. Together both companies operate in synergy under Middlemore Fastener (Holdings) Ltd, offering complementary services and an impressively diverse product portfolio. A key differentiator for Mellish is that following the acquisition of Tipper the decision was made to house both companies in a single location. This led to an important round of investment for the business, and during 2012 a new 35,000 square foot building was obtained, gutted and purposerebuilt to an exacting set of requirements. The focus of the redevelopment was to encourage an efficient, shared workflow between the two companies, which would also benefit from the sharing of capacity, stock and skills. Under this arrangement Middlemore is in a primary position to provide total fastener solutions. The total investment in the new facility reached around half a million pounds. Of this around £200,000 was spent on the new site itself, while more then £200,000 was invested in integration, new machinery and renewed marketing, which included everything from stationary, website design and a newly installed bar-code stock system. Coinciding with the development of the company’s facilities, it has also expanded its management team and export department, which is currently headed up by export sales director Andrew Rattenberry. Having evolved into a truly international organisation, the team has several employees speaking French, German and Italian to enable the company to operate effectively in several markets. The company’s ability to communicate effectively and from close relationships with its clients will continue to be a significant factor moving forward as Mellish targets new markets in Europe and South America. During 2011 Middlemore Engineering Services’ turnover was £5 million, with the addition of Tipper Engineering adding a further £1.5 million, resulting in a potential annual turnover of £6.5 million. While not the largest figure in the market, Middlemore Engineering remains proud of its strong and efficient approach, which continues to garner a trusted reputation for the business. Furthermore, the company’s ability to invest and grow at a time when the sector was in the throws of the global recession only serves to underline the resiliency of its operation as Matt Rattenbury, UK sales director observes: “People have talked about

Mellish Engineering Services

European oil & gas

PROFILE

ropes European oil & gas

europeanoilandgas.co.uk

Showing the

Part of Royal Lankhorst

Euronete Group, world-leading rope manufacturer Lankhorst Ropes has roots in the rope trade reaching as far back as 1751, when the firm was established as a ropery and sailmaker’s loft in Sneek, the Netherlands. When Nikolaas Jurgen Lankhorst took over the company in 1803, it gained its current name and slowly grew from a local artisan business to a global supplier of rope and ship mooring lines during the 19th and 20th centuries. In July 2012, the group was acquired by specialist steel wire and wire rope producer/ seller WireCo WorldGroup, the largest group in the world to manufacture and market both wires and synthetic products. With this acquisition, WireCo WorldGroup’s turnover will increase to approximately $1 billion USD, while the global workforce will reach 4500 employees. Continuously striving for enhanced product performance, innovation and customer satisfaction, Lankhorst Ropes’ products include, but are not limited to, a full single point mooring range, MODU lines, permanent deepwater mooring lines, deep sea heavy lift ropes, STS transfer ropes, oceanographic lifting and coring ropes and heavy lift slings. Due to an increase in demand for the supply of deepwater mooring ropes in reels of heavier weights, some at approximately 120 tonnes, the company decided to move its production

of these types from Pavoa de Varzim to a more convenient base. Located in Viana do Castello, Lankhorst Ropes’ new factory on the coast has excellent links to the harbour of Oporto and offers increased efficiency in the transfer of large reels of deepwater mooring rope to the quayside for load out. Covering approximately 3600 square metres of production facilities, the factory also benefits from 2400 square metres of storage area. On top of this, the forward-thinking firm recently strengthened its market presence in Rio de Janeiro, Brazil by opening a dedicated factory in the country. Boasting modern production and testing equipment, the factories have the capabilities to permit activities such as extrusion of rope yarns, full scale prototype testing, break strength testing of up to 1200 tonnes, stranding of rope yarns into strands and simulation of installation to be undertaken in-house. Entering the deepwater tether market in 1998, the company consequently uses state-of-the-art machinery for this challenging and burgeoning sector; this includes the recent addition of a Herzog subrope braiding machine. Used on four production facilities in the Gulf of Mexico since 2008, Lankhorst Ropes’ proven high quality Gama 98 polyester ropes are to be supplied to Anadarko Petroleum Corp’s Heidelberg Spa platform for Technip. Designed

within an outer braided jacket, the Gama 98’s sub-ropes are each computer monitored throughout the production process to ensure they all have equal tension and length. The Gama 98 includes up to 18 sub-ropes, each with a long-lay length and braided construction, which thus gives a 100 per cent torque free rope. Awarded a contract with Technip and Anadarko in 2012 to supply of a total of 31,400 metres of Gama 98 polyester ropes at a 4200 kips minimum breaking load to Technip and Anadarko for the Lucius Spar project, this new contract continues the positive relationship between the three firms. Constantly enhancing its products, Lankhorst Ropes recently manufactured the world’s strongest rope for Eni Norge’s Goliat platform. The floating production platform will not be held in place with chains or wires, but instead with tailor-made, specially adapted mooring lines that have the capabilities to operate in the harsh conditions faced in the Barents Sea. Varying in length from 900 to 1800 metres, the Goliat platform’s 14 mooring line’s will have rope at a maximum length of 1250 metres. Using fibre rope provides a range of benefits for Eni Norge, the most important of which is weight; a polyester rope weighs a mere three per cent of a chain’s weight, while retaining the same minimum breaking strength of 2579 tonnes. Looking to achieve further growth in the

coming years Lankhorst Ropes has recently strengthened its offshore and deepwater team with the appointment of Neil Schulz as sales director deepwater mooring. Neil, who has considerable experience in the industry, will be responsible for developing the company’s presence in the growing deepwater mooring market. He said: “Lankhorst Ropes has a formidable reputation in the offshore mooring industry for its sales and technical prowess. I am delighted to have the opportunity to contribute to its future success and again working alongside Chris Johnson, sales director, Lankhorst Ropes – a friend and former colleague for many years.” Following contracts with major oil and gas firms and world firsts in the rope sector, the forward-thinking Lankhorst Ropes has a positive future ahead as it benefits from its relationship with new owner WireCo WorldGroup. Being part of a huge global group gives the company access to the necessary tools that will thus ensure faster development of its offshore and marine activities over the coming years.

The Gama 98 includes up to 18 sub-ropes, each with a long-lay length and braided construction, which thus gives a 100 per cent torque free rope

Lankhorst Ropes lankhorstropes.com

Services Rope manufacturer

europeanoilandgas.co.uk

to produce 80,000 barrels of oil and 2.3 million cubic metres of natural gas per day, the Gulf of Mexico based Heidelberg Spar will be moored in 1620 metres of water and therefore requires 20 deepwater mooring ropes, each approximately 1100 metres in length, with a minimum breaking strength of 1905 Tonnes. A polyester rope tether manufactured from highly efficient sub-rope cores laid parallel

Lankhorst Ropes

European oil & gas

PROFILE

94 European oil & gas

europeanoilandgas.co.uk

Reactivating

production Since it was last featured in European Oil and Gas Magazine during December 2012, Leni Gas and Oil Plc (LGO) has continued to consolidate its niche strategy of delivering growth through the acquisition of proven reserves and enhancement of production. During the course of the past year the company has made impressive strides in its Trinidad holdings and it continues to search the market for new opportunities. Having acquired the Goudron oilfield in Trinidad during October 2012, LGO wasted no time in beginning the process of asset enhancement to ensure increased production followed as quickly as possible. Commenting on the company’s progress in the Goudron field CEO Neil Ritson says: “Recently we celebrated the first anniversary of operations with a visit from the Minister of Energy (Kevin Ramnarine) and the President of the state oil company, Petrotrin (Khalid Hassanali). His Excellency Arthur Snell the British High Commissioner

also attended and we were able to show them the huge advances we had made in the last year. During this time we have reactivated about 60 existing wells and improved the infrastructure with new sales facilities. In the first year we produced about 60,000 barrels and we are now producing close to ten-times as much as we were a year ago.” LGO’s operation of the Goudron field has proven to be highly effective with a year of operations completed with 70,000 accident free man-hours being undertaken. Goudron produces an average 38-degree API light sweet crude oil, which is piped via the Petrotrin oil export pipeline, directly to the Pointe-a-Pierre refinery in western Trinidad. The success of this project has generated a lot of interest in the company’s capabilities and it is currently working towards its mid-term target production of 2000 barrels of oil per day (bopd). Its 50 per cent share in the Icacos field further expands the company’s operations in Trinidad. The Icacos field is relatively small compared to the Goudron operation, but reflects part of the company’s wider interest in the Cedros Peninsula where it holds private petroleum leases and has a collaboration agreement with Beach Oilfield Limited. It is intended that the collaboration will explore the southwestern peninsula where the companies share joint operations; this represents part of a wider strategy of targeting the underexplored East Venezuelan Basin where it extends into Trinidad. Overall, Trinidad’s southern onshore oilfields are a perfect match for LGO’s strategy of acquiring and redeveloping fields with underexploited reserves. It continuously looks for new opportunities in the region and is currently collaborating with Maxim Resources over a possible future joint operation in the productive South Erin block. In conjunction with the potential benefits of working with partners like Maxim and Beach Oilfield Ltd, LGO is confident that it will increase production in its current holdings through the use of new technology, improved facilities and infill wells. Furthermore, additional opportunities exist to acquire further assets and the company is keen to exploit untapped exploration potential in each of its fields. Spain also remains an important asset for LGO, with production continuing in the Ayoluengo Oilfield and trial production operations taking place in the adjacent exploration acreage. The company acquired

europeanoilandgas.co.uk

Leni Gas and Oil

European oil & gas

PROFILE

European oil & gas

europeanoilandgas.co.uk

PROFILE

Leni Gas and Oil

the Ayoluengo field in October 2007 and currently produces low sulphur 37 degree API crude at the site. The field is the largest onshore oilfield in Spain and significant work has been undertaken to remove oil contamination that has accumulated on some well sites during its long history. Like its Trinidad operations, LOG’s Spanish holdings have generated a high level of interest from potential partners, as Neil states: “We continue to produce a regular amount of high margin oil from Spain and are in the process of carrying out some low cost interventions to a number of key wells in order to restore their production to 2012 levels. There is continuing interest from various people to partner and even buy the Spanish assets from us and there is a programme in place to increase production through at least five sidetracks when a partner can be located.” Neil continues: “In the meantime we are continuing to work on reducing the arsenic impurities in the oil so that we can send it to the BP Espana Castellan refinery where we will receive a better price for the oil.” The last year has also seen LGO divest noncore holdings in projects that didn’t fit its niche strategy of onshore oil field reactivation and today its assets lie solely in Trinidad and Spain. Neil comments: “Being more focused makes us more efficient and we are able to operate with close to a hundred per cent local staff. For example, everyone working for LGO in Trinidad is a Trinidadian national, which is cost effective and also sits comfortably with the corporate stance on localisation.” All of the company’s operations are also underpinned by a philosophy of professionalism and social responsibility. Environmental protection is a cornerstone of this vision, with

the Goudron field situated on the edge of the critically important wildlife sanctuary of the Trinity Hills and Ayoluengo located within a Spanish national park. As one of only a few international junior oil companies with a proven track record in the niche market of field reactivation, LGO has gained a leading edge when it comes to acquiring new projects and operating them effectively. Recently it reached a key milestone of 500 bopd, providing an important revenue stream to stimulate future growth. “The capital markets are still hugely unsupportive of junior oil and gas companies,” explains Neil. “However, we at LGO are now in the enviable position of relying only on our own cash generation and the commercial debt markets to continue our growth. This is a very positive feature of LGO as we go into 2014.” Moving forward the company is poised to dramatically increase its production over the coming years. Trinidad remains dead centre in its approach with the first new wells to be drilled in the Goudron in over 30 years planned to commence in late 2013 following the receipt of regulatory approvals, which are expected in the near future. Over the next 18 months LGO hopes to embark on drilling between 20 and 30 wells, each with an anticipated initial production rate of at least 60 bopd. Concluding with the company’s vision for Trinidad Neil says: “We are looking to get to 5000 bopd net production in Trinidad over the next five years and thereby secure five per cent of the local oil market. That is enough of a challenge for now. Beyond that we may look elsewhere, but Trinidad offers plenty of near-term opportunity with its long history of oil operations and a supportive stance from its government.”

Chapman Davis LLP The auditors of ‘Leni Gas & Oil plc’, Chapman Davis LLP, are specialists in the admission of natural resource companies on the AIM market of the London Stock Exchange. The firm, established in 1985, is one of the top 20 UK auditors of AIM listed companies and has acted as reporting accountants in over 40 listings. Chapman Davis LLP has a number of clients in the oil and gas industry operating in Europe and worldwide and is one of the top ten UK auditors of AIM listed companies in the sector.

Leni Gas and Oil PLC Lenigasandoil.com

Services Production and exploration

PROFILE

PV Drilling

service operates as a subsidiary of the Vietnam Oil and Gas Group and member of the International Association of Drilling Contractors. The company was formed with a clear desire to become the leading drilling contractor in the region as well as offering prestigious services to the global market. The company provides a wide range of services in oil and gas exploration and production activities but broadly speaking is able to divide its operations into two main areas. The first of these is the management and operation of onshore and offshore drilling rigs, which is an area that plays a vital role in yielding revenue and profit for the company. During 2012 PV Drilling gained over $300 million through the safe operation of its rigs as well as the chartering of three other jack-up rigs through strategic partners Transocean, ENSCO and Diamond Offshore to meet demand in the domestic market. At present the company owns and operates a fleet of three jack-up rigs, one land rig operating in Algeria and one semi-submersible tender assist-drilling (TAD) rig. All of its rigs are the latest generation of their kind including its jackup rigs, which are Keppel Fels MOD V B Class models able to operate at 400ft water depth and capable of drilling at a depth of up to 30,000ft. Its state-of-the-art semi-submersible TAD drilling rig is a Keppel Fels SSDT 3600E HP design with a max drill depth of 30,000ft while its land rig is of 2700 HP design and able to drill to a maximum depth of 18,000ft. With these assets PV Drilling currently occupies almost 50 per

cent of the drilling market in Vietnam and in the coming years is committed to adding several advanced jack-up rigs to its fleet, as well as an additional semi-submersible rig. The acquisition of further assets reflects an ongoing response to the rapidly moving market and the companyâ&#x20AC;&#x2122;s intention to realise a strategy of expansion in the near future. Included within this strategy is the delivery of a new 400ft jack-up rig from Keppel Fels, which is due for completion in February 2015. The rig, named PV Drilling VI, will be furnished with the most advanced technology in its field and primarily serve the global market operating from Southeast Asia, the Middle East and the Gulf of Mexico. Complimenting its offshore and onshore rig operations, a key second strand for PV Drilling is its ability to deliver both traditional and hightech well and drilling related services. These include, but are not limited to mechanical services, fabrication, tool rental, tubular running, well testing, mud logging, wireline logging, well completion, cementing and directional drilling. In conjunction with its fleet expansion operations, the further development of these services is a key priority for PV Drilling. To ensure that it is able to offer a comprehensive package of services the company is in close co-operation with its reputable partners worldwide to develop all-inclusive integrated solutions, which are unprecedented in Vietnamâ&#x20AC;&#x2122;s domestic market. To help it pursue its goal of promoting its reputation as a leading contractor in the region,

European oil & gas

Established in 2001, PV Drilling

europeanoilandgas.co.uk

Prestigious

Expro’s mission is

WELL FLOW MANAGEMENT™ We provide services and products that measure, improve, control and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement.

We provide a range of solutions across six areas of capability:

Exploration & Appraisal Testing Subsea Safety Systems Drilling & Completion Flowback & Clean-up Production Well Integrity & Intervention For further information on our operations in Asia, please contact our Bangkok Office on +662 620 1777 or email Nigel.Ashton@exprogroup.com or Kevin.McCartan@exprogroup.com

www.exprogroup.com

CELEBRATING 40 YEARS OF EXCELLENCE

dedicated management board who, along with the support of its parent business PetroVietnam, are able to expertly guide the company through challenging times. PV Drilling enjoys a diverse customer base with which it seeks to maintain close professional relationships to encourage successful current and future business. The core of its business is divided between subsidiaries of PetroVietnam and well known global operators in the oil and gas industry. Subsidiaries of PetroVietnam include PVEP, PVEP POC, and Bien Dong POC, while some of PV Drilling’s global customers include Chevron, Gazprom, Petronas, Premier Oil, Salamander, Talisman, Idemitsu, Soco, Perenco, JX Nippon Oil, Sonatrach. To consolidate its relationships with all of its valuable clients, PV Drilling has implemented a customer relation management programme to ensure that it is able to match up to its customers’ expectations and respond to their requests in a timely fashion. Moving into the future PV Drilling has a wealth of determination, proven track record of success and technical knowhow to carry it forward. The company offers an energetic outlook and is keen to demonstrate its talents to new customers as Pham Tien Dung explains: “We are building an image of PV Drilling as a young and dynamic drilling contractor, differentiating our corporation from competitors by optimising the operational cost and diversifying our scope of services. PV Drilling aims to define itself as a one-stop drilling services provider with unique bundled services that facilitate oil and gas operators in deploying their drilling campaigns by better synchronising workflows and reducing overlapped processes and procedures.”

europeanoilandgas.co.uk

PV Drilling relies on a number of strengths that give the company the means to achieve its strategic vision. The skill and dedication of its workforce is of paramount importance to the company’s operations. According to PV Drilling’s president & CEO, Pham Tien Dung: “Starting the business with very limited resources, in both financial terms and in infrastructure, PV Drilling relied on nothing but the persistence and competence of its own initial staff. Today we have a staff of approximately 2000 and are proud to possess a crew of highly skilled engineers and experts at all functional and managerial levels. Thanks to them, the rig fleet has been operated with excellent efficiencies, absolute safety and greatly appreciated by our clients.” Likewise, the company’s fleet remains an integral ingredient in its ongoing success. Its advanced rig fleet is supported by reliable machinery and intelligent integrated control systems supplied by respected manufacturers such as NOV, Cameron, Hydril VAM Drilling, Siemens etc. The fleet is also put under a strict reliability-centered maintenance (RCM) programme to ensure the maximum performance and eliminate downtime. The overall aim of the company’s focus on the performance of its fleet is to maintain a market edge and offer a level of service that is unparalleled in the region. Moreover, PV Drilling can rely on the support of a large number of strategic partnerships and joint ventures worldwide with renowned oil and gas companies including Baker Hughes, BJ, Expro, Marubeni Itochu and Oil States Industries. These joint ventures have allowed it to expand its scope of high-tech services, gain access to the latest advances in technology and absorb valuable experience allowing PV Drilling to further develop and refine the high level of service it is able to offer. Furthermore, the company has a firm financial foundation and a

PV Drilling

Expro Expro’s mission is well flow management. We provide services and products that measure, improve, control and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement. Our vision is to be the market leader in well flow management, using the industry’s best people, to deliver the highest standards of safety, quality and personalised customer service. Expro’s 40 years of experience and innovative technology empowers the company to offer tailor-made solutions for its customers across the energy sector. With 5000 employees across 50 countries, Expro offers a truly global service solution.

PV Drilling pvdrilling.com.vn

Services Professional drilling solutions

European oil & gas

PROFILE

Audex Pte

Global

This involves the conversion of existing tanks for chemical storage, a new truck loading bay and the revamp of supporting ancillary facilities. “Though there is an emphasis to finish the project on time and within budget, workplace safety is of utmost importance to the company,” highlights Mr. Leong. He also reports that this project is currently “on schedule and en-route to achieving a zero loss time incident record.” As of today, Audex’s primary business is offering integrated engineering, procurement, construction and commissioning services (EPCC) for storage facilities in the oil and chemical industries. In this area, the firm has earned an excellent reputation for delivery of premium quality and value complete engineering solutions that meet or even exceed global industrial standards. Ultimately, partnering with Audex, clients can enjoy solutions that encompass the delivery of costeffective, competitive pricing and unrivalled customer service. In 1994, Audex was incorporated as a joint venture firm between Chiyoda Singapore and Plant Engineering Construction Pte Ltd. Over the years, it has greatly progressed to become an international, leading multi-discipline company with top-rated global standards in its field. During the middle of 2011, Audex’s renowned reputation was additionally strengthened when it became a wholly owned subsidiary of PEC Ltd – a leader in international business provision for integrated

European oil & gas

Audex Pte Ltd

has enjoyed a successful and highly productive 12 months since it was last featured in European Oil & Gas Magazine in November 2012. As an industry leader in engineering, procurement, construction (EPC) and project management consultancy (PMC), the firm has further strengthened its position in the Middle East as well as in Singapore with even greater notable projects. “The past year has been an exciting journey for the company. We have successfully completed two tank terminals, amassing approximately 340,000 cubic metres of storage capacity and have also opened a 30,000 square metres workshop and fabrication yard in Fujairah,” Mr. Leong Hoi Hoong, general manager of Audex said. Another major project that Audex has recently secured is a piping fabrication and installation works contract in Jurong Island, Singapore.

europeanoilandgas.co.uk

standards

101

European oil & gas

europeanoilandgas.co.uk

PROFILE

102

Audex Pte

trade facilitating services. This acquisition boosted Audex’s success as the firm began leveraging on PEC’s leading expertise, technology, strong financial standing to expand its business activities into greater worldwide markets and participate in larger upcoming projects. Owing to a great synergy between the parent company and Audex, another major triumph of Audex’s is the completion of Horizon Terminal Limited’s $100 million oil terminal in Fujairah, which was commissioned at the end of May 2013. Handling Class-1, Class-2 and Class-3 petroleum products, this terminal has the capacity to store more than 240,000 cubic metres of oil and will further establish the Emirate as a key regional hub in the oil and gas industry. “Audex was awarded a contract for the engineering, procurement, construction, testing and commissioning works for EFDTT terminal, primarily intended for facilitating Horizon Terminal Limited, a wholly owned subsidiary of Emirates National Oil Company Ltd (ENOC) LLC,” explains Mr. Leong. Working within a period of 22 months, Audex achieved a fruitful project mechanical completion for Horizon Terminal Limited’s oil terminal and this was according to the tight schedule set. As a result, Audex was awarded a certificate of recognition in appreciation of the valuable contribution made to this project in 2012, as well as another certificate of recognition for best EHS performance in 2013. With a list of past achievements under its belt, Audex has attained the status of a prominent and leading complete engineering service provider to global major industries. Nevertheless, the firm believes in striving for even better results and is fully aware of the latest opportunities, even in the Asian market. “We are continually looking for opportunities to expand our EPC activities abroad through both new and existing customers and to ensure excellent delivery of our complete engineering solutions,” elaborates Mr. Leong. “Through our combined efforts, Audex has managed to secure and complete projects in the South East Asia region and also the Middle East. In the meantime, we have also progressed into the African market.” When Audex last appeared in European Oil & Gas Magazine, the firm anticipated a specific increase of oil and gas activities in Indonesia, China, Vietnam and Myanmar over the next five to ten years. Subsequently, Audex has indeed made tremendous advances in these areas since then.

Mr. Leong elaborates further that with the discovery of several deepwater fields in Indonesian waters, this region “has quickly become Asia’s top country for gas reserves, around 3.18 trillion cubic metres,” and with this, “Indonesia’s oil and gas industry has fast tracked,” through “attracting many investors from around the world.” With Audex’s expertise, vision and knowledge, it has been commissioned for several FEED design and EPC projects in Indonesia since

With a list of past achievements under its belt, Audex has attained the status of a prominent and leading complete engineering service provider to global major industries MRC Transmark

2007. Following the completion of a FEED project for an oil storage terminal expansion project in Indonesia, there are several ongoing discussions with one of the largest crude oil producers in the state for upcoming design projects in Surabaya. On top of these developments in Indonesia, even greater opportunities have emerged in China. Presently, Audex has established offices in China, in Chengdu and Shanghai. In 2014 and ahead, Audex will be penetrating the Chinese market with additional projects through its team of highly experienced and certified engineering specialists. “According to present developments, it is no doubt that we have witnessed a stable and steady growth in the Middle Eastern market over the years,” added Mr. Leong. “Our future goal is to continually enhance our standing as a major EPC player in the oil and gas, as well as petrochemical industries, by tailoring complete engineering services according to industrial requirements.” Audex strongly believes in developing its commitment towards every client around the world and looks forward to deepening their partnerships in a long-term manner. The firm looks ahead to go the extra mile to achieve excellence, and will continue to work towards expanding its presence in new and existing markets as an oil storage terminal specialist so as to provide fit-for-purpose as well as cost-effective solutions for every industrial client.

MRC Transmark, a subsidiary of MRC, has over 90 years of experience in the valve industry, and is the world’s leading valves and flow control equipment supplier. Understanding the tight time constraints and high expectations of its clients, MRC has over $1 billion USD in valve stock located in more than 100 warehouses around the world. With workshops and service centres located in over 20 different countries, MRC can offer expert technical assistance to clients including actuation, modification, testing and more. MRC’s vision is to be the leading and preferred one-stop flow solution provider. MRC Transmark and Audex have recently completed a successful partnership in the supply of valves to Vopak Chang Chun Terminal.

Audex Pte Ltd audex.com.sg/default.aspx

Services Engineering, procurement, construction and commissioning

european

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

europeanoilandgas.co.uk