EIC Monthly News April 2013 by Energy Industries Council

EIC Monthly News April 2013

EIC Member early booking offer 8 April â&#x20AC;&#x201C; 30 April See page 16 for more details

www.the-eic.com

The EIC Chief Executive

The Chief Executive Welcome to the April edition of the Monthly News. Firstly, I am delighted to announce the launch of the EIC Award for Supply Chain Excellence, a prestigious accolade from the EIC to recognise a member organisation that has demonstrated superiority within the supply chain. The winning company will secure a valuable package of benefits to raise their profile within the highly competitive energy industry, so I encourage members to consider submitting an entry that details a new product, service, process or engineering solution that has demonstrated excellence in supply chain performance. The winner of the award will be announced at the EIC National Dinner at the Natural History Museum on 10 October 2013. You can find out more or submit an entry via the website: www.the-eic.com/award At the time of writing the EIC is leading an Offshore Construction Trade Delegation in Brazil as part of The UK-Brazil Oil & Gas Showcase organised by UKTI. For those who missed out on the opportunity to attend this excellent event, there are still places available at the second Accelerate Oil & Gas event taking place in Rio de Janeiro on 21-22 May 2013, with a discounted rate for EIC members. This event aims to facilitate dialogue between Brazilian state officials, Petrobras, IOCs, EPCs and key suppliers, with a view to highlighting opportunities and forming strategic partnerships for the accelerated development of Brazil’s oil and gas reserves. There is more information available about Accelerate Oil & Gas on the EIC website. The EIC and its members were also represented recently by Dr Phil Goddard, Director of EIC Consult, at a Natural Gas and Crude Oil business delegation to Israel led by Lord Green, the UK’s Minister for Trade and Investment. The delegation met with leading figures from Israeli energy companies to promote UK interests in the sector, and was also taken on a visit to the massive Leviathan natural gas field, located off the coast of northern Israel. It is a privilege for the EIC to be invited to participate in such events, enabling us to engage with senior officials and industry leaders who can ultimately help the EIC to open doors into new markets for our members. Our Overseas Events team and our Houston office team are busy preparing for OTC, the world’s largest event for the development of offshore oil and gas resources, where the EIC continues its long-standing tradition of hosting the UK National Pavilion. This year, the EIC will bring together 55 leading UK companies to exhibit at the pavilion, all with the common goal of exporting highly innovative solutions and services to the global oil and gas industry. Stand space has sold out, but for those attending OTC, the EIC will be hosting a number of networking events at the EIC stand. More details will follow in next month’s Monthly News. Following shortly after the OTC event, the EIC is taking its first exclusive members’ Exhibitor Group to the All-Energy 2013 event, taking place in Aberdeen on 22-23 May. The last few stands are now remaining for what promises to be an unparalleled forum for UK companies to showcase products and services to representatives from the renewables industry. In particular, offshore wind draws on many synergies with the oil and gas industry, making it a promising area for many of our members to explore the potential for diversification. In other news the Australia Country Report, an overview of Australia’s energy sector, is soon to be released by EIC Consult. The future is bright for Australia’s energy sector, having secured the largest share of project finance globally – US$42 billion – in 2012. Investment in the Australian energy sector is led by the midstream sector, largely due to the scale of LNG projects under construction or at the planning stages, followed by strong investment in both the upstream and renewables sectors. As with every market, however, the Australian energy sector is not without challenges and, in addition to highlighting opportunities, this report offers UK companies valuable insight to inform strategies on successfully doing business in the country. For more information, please visit the EIC Consult website: www.eic-consult.com Finally, registration for delegate places at EIC Connect Oil, Gas & Power 2013, taking place on 4 June in Abu Dhabi, will open shortly on 8 April. We are offering EIC members a discounted Early Bird ticket price so if you plan on attending, please book by 30 April to secure your place at this special price. I wish you all continuing success in 2013. Ian Stokes

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Content

April 2013

The Chief Executive

Business Information

EICDataStream 4 Training Services

EIC Consult

New Members

Members News

UK, Overseas & Training 12 Exhibitions/National Events 13 Exhibitions & Delegations 14 Middle East News

National Events

UK News

Asia Pacific News

China News

North America News

South America News

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April 2013

EIC Business Information

Business Information

Anchors aweigh for floating offshore wind An alternative to the floating buoy like Hywind is a floating island. WindFloat is a turbine mounted on a large triangular base with three separate floating corner pontoons. The project was developed by the WindPlus consortium, which comprised of Principle Power, Energias de Portugal, Repsol, A Silva Matos (ASM), Vestas Wind Systems A/S and InovCapital and has been installed off the Portuguese coast since 2011. The WindPlus project uses Principle Power’s WindFloat foundation equipped with a Vestas 2MW turbine and was inaugurated in June 2012. The Department of Energy and Climate Change (DECC) has awarded Principle Power a share of £2.3 million from its Offshore Wind Component Technologies Development and Demonstration scheme. Teesside based Principle Power received £698,630 to develop the design and serial manufacturing process of its innovative WindFloat floating foundations. The grant will be used to design WindFloat technology specifically for the UK market and will focus on meeting the industry target of driving down offshore wind costs to £100MWh by 2020. TAG Engineering has signed a deal with Principle Power to build floating supports for wind turbines. In Sweden, floating platform developer Hexicon is designing a pontoon that measures half a kilometre in length and will carry 24 turbines. The idea is to develop a floating wind park complete with its own power station. EU funded consortium FloatGen is planning the world’s largest deep-water demonstrator. The €36 million pilot will test two prototypes off the coast of Spain by 2015. The first is a 2MW unit developed around Gamesa’s G8X turbine mounted on a surface floating concrete platform designed by Iedol. The second is a 3MW prototype based on an Acciona AW-3000, with a semi-submersible which will be designed by Navantia and Olav Olsen. Japan is seriously looking into the potential of floating wind in its energy mix. According to a GL Garrad Hassan study, the majority of Japan’s 600GW offshore wind resource is in water of more than 100m which is out of reach of conventional offshore structures. Japan’s energy policy initiatives in the wake of the 2011 tsunami and Fukushima disaster include the formation of a consortium of Japan’s leading industrial and academic institutions to demonstrate floating turbines. Japan plans to install floating turbines with installed capacities of up to 7MW off the coast of Fukushima by 2015, along with the world’s first floating 66kW electrical substation. The long term goal of the consortia is to have 1GW of floating wind power which would make Japan a world leader in floating offshore wind. Despite being in its infancy, the future of floating offshore wind looks bright and could potentially play a significant role in the global energy mix.

The floating offshore wind sector has seen a number of significant developments in the last few years with prototypes in development and megawatt scale pilot projects in the pipeline. Although floating offshore wind is still very much in its infancy as an industry, it is beginning to emerge as a third wind energy technology with significant potential. Floating wind turbines provide an opportunity to harness the consistently higher wind speeds which are available over deeper waters. Floating wind turbines could allow access to water between 60 and 100m deep, which is currently too deep for offshore wind turbines fixed to the seabed, but where winds are consistently higher. Developers have expressed interest in deep waters and excellent winds off the north east and midAtlantic coast of America, along large areas of the Mediterranean and Western Europe. Along with harnessing wind in deeper waters, floating wind turbines could potentially provide cost reductions. The majority of installation can be done onshore, removing the need for costly construction work at sea. One of the challenges is that floating turbines rock on waves. This presents a problem which may require a heavier device less susceptible to waves. This increases the amount of material required and may increase costs depending on the price of steel. Developers are working on alternative solutions to get around extra material costs. A number of possible solutions include using systems that pump ballast water from one tank to the next to stabilise the turbine or tightening cables that moor structure to stabilise it in heavy seas. However, even with the implementation of these solutions, floating wind turbines will always rock. The constant motion will cause more wear and tear than fixed offshore turbines and so it will be necessary to look at different designs to mitigate this. Another issue is that the rocking motion can cause erratic power generation. This will need to be balanced carefully by adjusting the rotor blades. Therefore, engineers will need to design and develop new specialised rotor blades for floating wind turbines as mounting a regular turbine on a pontoon is unlikely to function efficiently. The most advanced floating wind turbine is Statoil’s Hywind project. The floating structure consists of a steel cylinder filled with a ballast of water and rocks. It extends 100m below the surface and is attached to the seabed by a three-point mooring spread. The turbine has a capacity of 2.3MW and has been tested off the coast of Norway since 2010 with positive results. Statoil is now looking to develop a demonstration park of up to five floating turbines off the coast of Scotland which could generate up to 12MW. The Scottish government has proposed supports of between 2.5 and 3.5 ROCs for floating wind projects. www.the-eic.com

Elizabeth Lunn, Business Information Officer Tel +44 (0)20 7091 8636 Email elizabeth.lunn@the-eic.com 3

April 2013

EICDataStream

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Once logged in click tutorials on the menu bar to learn how to: 1 Search for projects effectively. 2 Navigate the results summary. 3 Understand detailed project information.

4 Download preformatted excel workbooks. 5 Get email alerts on your favourite projects. And more…

Sponsorship Opportunities Pre Dinner Drinks Reception • Business Card Draw National Dinner Programme • Invitations To find out more please visit: www.the-eic.com/nationaldinner www.the-eic.com

April 2013

EIC Training Services

Training Services Management Course

Management Course

Introduction to Social Media 9 April 2013 Herd Communications, EIC London This one day course is suitable for marketing and communications professionals and any other staff with an interest in digital communications and social media marketing. The course will provide an insight into a range of social media channels such as blogs, micro-blogs (Twitter) social networks (Facebook, LinkedIn), video-sharing sites (YouTube), and social bookmarking (Digg, Delicious). The morning session will focus on social media basics, looking at the most popular social networking sites and learning from high profile success stories. The afternoon session will focus on the use of social media, exploring the opportunities and challenges of putting a social media strategy in place. Delegates will leave with an understanding of all the latest social media speak and equipped with a practical set of actions that they can implement.

Understanding Project Management 23-25 April 2013 EIC London This three day workshop will enable delegates to describe the components of project management practice, assess an existing project against principles of good practice, use project management techniques to improve work effectiveness and manage a small project using good practice. The course will use a simple project life cycle model to explain project management activity and output at different points in the projectâ&#x20AC;&#x2122;s life, and will focus on good practice and danger areas. The course has general applicability, as it is not specific to industry, company or project management methodology, and will not cover the use of proprietary project management tools. The ideas will be explored using a case study. Part of the course will involve working in small groups to perform classroom exercises.

Technical Workshop

Introduction to Gas Storage 10 April 2013 Centrica Storage, Easington Centrica Storage Ltd is a wholly-owned subsidiary of Centrica Plc. It operates the Rough gas storage facility in the southern North Sea, and the Easington onshore gas processing terminal in East Yorkshire. The Rough storage facility represents more than 75% of existing gas storage capacity in the UK. The workshop will cover the concept of natural gas storage, the processing of natural gas, the commercial aspects of a gas storage business, engineering challenges involved in operating a gas storage business and the logistics involved in an offshore gas storage business.

ÂŠ Centrica 2013

Industry Overview

HSE Training

Fundamentals of LNG 16 April 2013 eMJay LNG, EIC London Liquefied Natural Gas (LNG) is well established and one of the fastest growing energy businesses. A key challenge in developing new LNG projects is to bring together the technical and commercial needs of project developers, EPC contractors, shipping companies, financial institutions, government bodies, traders and regulators. The course provides an understanding of the scope and size of the LNG industry, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project. The supply/demand overview provides an understanding of how the industry has developed and the opportunities and constraints on future development of the LNG industry and the challenges it faces.

Safety for Senior Executives 18 April 2013 EIC London This course is suitable for senior personnel with strategic responsibility for determining and implementing effective health and safety management systems within their organisation. The course will help senior managers to integrate health and safety management into its strategic business planning and monitoring. It will also update managers on the key legal drivers within the UK and consequences of failure, in legal, financial and moral terms. Attendees will be able to understand the health and safety role and responsibilities of senior executives, and recognise the importance of integrating health and safety objectives with other business objectives. They will also be able to take account of health and safety aspects during strategic planning, decision making and effective supply chain management.

If you would like further information on any of our courses or if you are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com

April 2013

EIC Consult

EIC CONSULT

EIC CONSULT Kurdistan 2013 Report

Kurdistan 2013 Report

Comprehensive, Clear, and Original Industry Intelligence Comprehensive, Clear, and Original Industry Intelligence from a Hub of Energy Knowledge from a Hub of Energy Knowledge

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April 2013

New EIC Members

New Global Member

Tratos Ltd

10 Eagle Court Britton Street, Farringdon London EC1M 5QD Tel +44 (0)20 3553 4810 Fax +44 (0)20 8249 6503 Email maurizio.bragagni@tratos.co.uk Web www.tratos.eu The Nominated Representative is Mr Maurizio Bragagni, Director. Tratos Group is one of the major European manufacturers of electrical, electronic and fibre optic cables. Major clients include electrical contracting and manufacturing organisations, regional electricity distribution and government departments around the world. Their product range includes single and multi conductor high temperature, fire resistant, low smoke and fume, rubber, energy cables from low voltages up to 360kV, railway, motorway, data, fibre optic, oil and gas, plants and petrochemical industry, mining and tunnelling, ship wiring, drum reeling and telecommunications. As well as cathodic protection, airfield lighting, composite and bespoke cables, cranes and mobile equipment, trains, transportation infrastructure, submarine, military and defence cables, special cables (composite cables, inverter cables etc), cables for special solutions (hazardous environment, mud resistant cables etc). ‘Cables Tailor Made’ is a special division of Tratos, for bespoke cables, working with their customers. Tratos is able to offer custom designed and built solutions for the most demanding of circumstances. Using 40 years experience they can examine the challenges facing customers and bring together expertise and cutting edge technology to provide the ideal tailor made solution. Tratos Cavi holds a unique background in manufacturing superconducting cables and conductors for fusion applications.

New Global Member

First Subsea Ltd

Engineering House Lune Industrial Estate New Quay Road Lancaster Lancashire LA1 5QP Tel +44 (0)1524 387 777 Fax +44 (0)1524 387 778 Email valeriep@firstsubsea.com Web www.firstsubsea.com The Nominated Representative is Ms Valerie Pylypiw, Sales Co-ordinator. First Subsea is a specialist in the development and supply of subsea mooring, riser connector and tubular handling systems. Its patented Ballgrab® ball and taper connection technology is used for deepwater moorings, diverless bend stiffener connectors for risers and umbilicals, buoy pull-in tools, pipeline recovery and repair tools and hose connectors. More recently the company has entered the drilling equipment market with the development of industry leading, ball and taper, SureGrip pipe casing handling and floor slip tools. The connector technology is also now being applied to the development of quick connect and disconnect mooring connectors for Arctic moorings. First Subsea has its head office in Lancaster, UK, and sales offices in Aberdeen and Kuala Lumpur and sales agents in Australia, Brazil, India and the USA. New Global Member

REMBE Ltd

20-22 Bedford Row London WC1R 4JS Tel +44 (0)20 7630 0364 Fax +44 (0)20 7630 0364 Email Claire.Lloyd@REMBE.co.uk Web www.rembe.co.uk The Nominated Representative is Ms Claire Lloyd, Business Development Director EUROPE. REMBE Ltd is a wholly owned subsidiary of REMBE Safety & Control based in Brilon, Germany. Since 2009 REMBE Ltd has been effectively supporting the UK and Ireland markets in all aspects of process pressure relief solutions and dust explosion protection systems. REMBE Safety & Control GMBH is a family owned dynamic manufacturing company established in 1973. It is Europe’s largest manufacturer of rupture discs and explosion protection systems and the inventor of ‘Indoor Flameless Venting’. REMBE invests heavily in R&D and continues to push boundaries in all aspects of technical solutions at a competitive market price.

www.the-eic.com

New Global Member

Universal Acoustic & Emission Technologies

Barleyfield Hinckley Leicestershire LE10 1YE Tel +44 (0)1455 894 488 Email dauby@universalaet.com Web www.universalaet.com The Nominated Representative is Ms Dawn Auby, VP of Sales. Universal AET is a global company that provides engineered acoustic, emission and filtration solutions for the power generation, oil and gas, marine, locomotive and industrial markets. Universal AET has particular expertise in air movement applications, gas turbine systems and diesel engine applications. Universal AET designs for first fit customers as well as for retrofit and turnkey applications. The products that UAET manufactures are exhaust and inlet systems, including filter houses, filters, exhaust silencers, inlet silencers, ventilation silencers, and emissions control systems that may include Diesel Particulate Filters (DPF), Selective Catalytic Reduction (SCR’s) and Oxidation Catalysts. 7

April 2013

EIC Members News

Members News

Dron & Dickson

Ayrshire-based engineering services company Booth Welsh recently welcomed the Scottish Government Minister for Enterprise, Fergus Ewing. The Minister toured their facility following a number of recent business successes, including two major projects in the Middle East utilities sector which will see Booth Welsh design new control systems at plants in Saudi Arabia. Employing 200 staff from its base in Stevenston, Booth Welsh provides multi-discipline engineering services including advanced process control engineering solutions for a range of clients in the oil and gas, whisky, pharmaceutical, nuclear, petrochemical and chemical, utilities and food and beverage industries. Martin Welsh, Managing Director, said: “The visit is the result of recent success and achievements by Booth Welsh both in the UK and overseas.” Minister for Enterprise Fergus Ewing said: “Booth Welsh is a leading example of a Scottish SME which continues to grow by exporting its services and expertise to global markets. It is also very encouraging that Booth Welsh is creating opportunity for employment and investing in skills in training as it meets its objective of providing its customers with an end to end process engineering and consultancy solution.” As part of Booth Welsh’s strategy to offer its clients this complete and flexible engineering solution, the company has recently increased investment in its specialist functional engineering consultancy service with a rolling programme to train and certify many more engineers to meet demand for engineering projects scheduled for 2013. Martin Welsh concluded: “We recognise the growing significance of this critical service for our clients and have committed to the development of it.” For more information please visit: www.boothwelsh.co.uk

Colin Maver, Group Director, Dron & Dickson, said: “This contract recognises our track record in offshore electrical maintenance and is testament to our high levels of experience in safety and competence. We are investing heavily in our staff capabilities and compliance expertise, and look forward to seeing out all aspects of this operation, our first with SBM Offshore.” For more information visit: www.drondickson.com

FDS Group, specialising in sealing solutions and products serving the oil and gas, power generation, chemical and petrochemical industries, which includes West Yorkshire based Flexitallic Ltd, has been renamed The Flexitallic Group. The move comes in response to the expanding global presence, recognition and value of Flexitallic, one of the Group’s premier operating companies, with headquarters in the UK and USA. Over the next 18 months more operating units will also adopt the Flexitallic master brand. Remi Toledano, President and CEO of The Flexitallic Group, said: “While each operating company has its unique strengths, we’re now collaborating as a global enterprise for the increased benefit of our customers. Our shared focus on developing products and solutions that deliver uncompromising safety will be a hallmark against which the Flexitallic brand will continue to grow.” Philip Kelshaw, Managing Director, Flexitallic Ltd, said: “Since the invention of the spiral wound gasket 100 years ago, the Flexitallic brand is synonymous with industryleading innovation, engineering excellence and safety assurance. It is a commercially astute decision for the group to adopt this well-respected, world-renowned brand, with exceptional heritage.” As the transition occurs, customers will experience the same high quality responsiveness, service, and support they have come to expect from the organisation. Ordering, fulfilment, and company contacts have not changed. Please visit: www.theflexitallicgroup.com

SBM Offshore has awarded a Global Framework Agreement to Dron & Dickson to carry out electrical inspection and maintenance on its global assets. Dron & Dickson will provide a team of 60 to service the operation, including a rope access team for high-level maintenance, and a dedicated engineering manager to oversee work being done in all regions. In addition to providing Ex maintenance, the frame agreement with SBM Offshore also allows for the provision of additional services, such as condition monitoring and trace heating maintenance.

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com. Copy deadline is the first of the month for the following month – ie by 1 May for the June issue. www.the-eic.com

April 2013

EIC Members News

Foster Wheeler has won a contract to design and supply three utility package steam generators for a 500MW combined cycle power plant that will power the Ichthys onshore LNG facilities near Darwin, Australia. The contract was awarded by a joint venture between CH2M HILL Australia and UGL Engineering, who have the EPC contract for the power plant. Foster Wheeler’s package steam generators and auxiliary equipment will be used to burn low pressure natural gas and liquid isopentane, generating a total of 278 tonnes per hour of high-pressure superheated steam. Byron Roth, Chief Executive Officer, Foster Wheeler, said: “Our package steam generators have been an integral part of our product range for over 60 years. We are pleased to provide value to this important oil and gas project in Australia.” The onshore LNG plant will produce an initial 8.4 mtpa of LNG, fed by gas from the Ichthys field in the Browse Basin. Delivery of the steam generators is scheduled for fourth quarter 2014. For more information please visit: www.fwc.com

Paladon Systems has partnered with BPS to supply all quarter-turn and linear valve actuators for the US market. Headquartered in Brixworth, UK, Paladon Systems manufactures a comprehensive range of valve actuators and advanced control systems, all supported by facilities and business partners located in 17 countries. Brian Ennever, Managing Director, Paladon Systems, said: “The US market has always been significant; however, being based in Europe has meant that we have historically struggled to be competitive when compared to US manufacturers due to the costs and additional lead time incurred when shipping complete systems from Europe. Although we have seen success for US projects that require valve automation technology that is simply not available from current US manufacturers or outside of Paladon Systems, these projects form a very small part of the total valve automation business available and future growth is therefore limited. “To be successful with our more conventional product lines, it has always been clear that we would have to partner with a progressive US company who had the technical and commercial experience to gain market share and, just as importantly, be willing to invest in a very significant amount of stock to overcome the shipping issues. BPS fits these requirements perfectly.” For more information please visit: www.paladonsystems.com

FoundOcean has completed the grouting contract for Narec’s Offshore Anemometry Hub (NOAH) under contract to SeaRoc. The NOAH contract was a notable project in another successful year for FoundOcean which included offshore operations in the United Arab Emirates, South East Asia, Australia, India, the Gulf of Mexico and Europe. Due to the makeup of the seabed on the NOAH project, the 60m high foundation design was not a typical tripod: it was designed to be secured using a rock socket grouted connection and a grouted pile sleeve connection at each of its legs. This meant that communication between FoundOcean and SeaRoc was essential to ensure the project was completed successfully within the tight project schedule. The grouting operations took place in two stages. After the jacket was placed and the 10m deep rock socket was drilled through the pile sleeve, FoundOcean mixed and pumped grout into the socket. Immediately following this, a 24m long pile was lowered through the sleeve into the grout-filled rock socket. The rock socket grout contained a special retarder to slow the curing rate, and ensure it did not set before the pile was inserted. The retarder was added via a metered dosing system built into the mixer. The remaining two rock socket connections followed the same procedure. Once the rock socket connections were established, FoundOcean then injected ordinary Portland cement grout into the three annuli between the piles and the tripod sleeves via connectors above sea level. The offshore operations were completed in 4 days. Toby Mead, Operations Director, SeaRoc, said: “FoundOcean’s onshore support team and offshore personnel were professional, knowledgeable and clearly experts in their field.” For more information please visit: www.foundocean.com www.the-eic.com

Jacobs with Rhead Group have won the FEED and Design Assurance Framework for transmission reinforcement works as part of National Grid’s RIIO business plans. As a delivery partner, Rhead Group will launch a skills academy focused on meeting skills shortages within the transmission sector. The performancebased RIIO model seeks to ensure consumers get the necessary investment in Britain’s energy networks at a fair price. RIIO, which will become Ofgem’s model to regulate energy networks from this month, stands for: Revenue=Incentives+Innovation+Outputs. Steve Gendler, Business Unit Director for Energy, said: “RIIO represents a step change in the electricity sector. Rhead Group is focusing on what value and innovation we can add to support our clients in this challenging and exciting period.” Please visit: www.rheadgroup.com

The adoption rate of Foundation Fieldbus continues to increase year on year. With more people using the technology, demands continue to pile onto the vendors of such products. Phoenix Contact has chosen to respond to these demands through innovation and user-centric provision. When running industrial processes, maximising system uptime is critical. As automation becomes more advanced and devices more intelligent, monitoring the health of operations has now become an industry standard. 9

April 2013

www.the-eic.com

April 2013

EIC Members News With system diagnostics traditionally being rooted in the control cabinet and with typical fieldbus segment lengths reaching 1.9km, one question stands out. Would you trust the measurements from a multimeter with over 1km test leads or measurements taken in the field where the process is happening? This is the basis of the foundation for Phoenix Contact’s approach to field diagnostics. Phoenix Contact is introducing the idea of ‘Diagnostics Anywhere’. With modularity being the guiding theme to achieve maximum availability and integrity, Phoenix Contact wanted to pair their innovative modularity concept with the reality that communication interruptions happen in the field, not the control cabinet. Users are under extreme pressure to keep the process online and maximise uptime where outages are simply intolerable. In Foundation Fieldbus, the number one culprit for devices losing communication is noise. Unfortunately, it is hard to diagnose exactly where the noise is originating from, especially when diagnostic measurements are being made from the control cabinet. What if you were able to analyse the communication in precisely the environment that is affecting it the most? What if you were able to take preventative action based on these measurements and keep your process from going down? What if this was all done from the control room in real-time? These questions are the reason why field-based diagnostics are the essential tool for providing the accurate and reliable data required to keep fieldbus networks running. For more information please visit: www.phoenixcontact.co.uk

Rotork has secured full qualification of a scotch yoke rotary pneumatic actuator to meet the requirements of the Westinghouse AP1000 reactor design. The actuator, designed for the operation of ball, butterfly and plug valves, meets safety critical applications found in the nuclear power industry. Suitable for harsh environmental conditions, it has already been specified on projects across China and the US.

Rotork

Qualification of the actuator involved thermal ageing, final wear ageing, pressurisation, resonance search, Operating Basis Earthquake simulation, Safe Shutdown Earthquake simulation and Loss of Coolant simulation, where the actuator is exposed to high temperature, pressure, humidity and radiation. After each test a baseline test was performed to confirm that the actuator’s performance had not degraded below acceptable levels. The product is manufactured under a quality assurance programme in compliance with the requirements of 10CFR50 Appendix B, 10CFR21, NQA-1 and ANSI N45.2. Please visit: www.rotork.com

Rittal

Synectics has completed a bespoke CCTV surveillance solution for the Pearl GTL project in Doha, Qatar. Synectics has installed over 300 COEX™ camera stations to protect the plant area, onshore process areas and the unmanned offshore platforms. The cameras can be viewed and controlled from any of the nine specified control centre workstations, or on the 42” wall display monitor connected to the Synergy XPro Video Management System. All camera stations are connected using single fibre operation to a Synectics e100 video encoder within marshalling cabinets, enabling footage to be streamed via the LAN system to the central PSN servers where all footage is stored. H.264 encoding technology provides high quality footage, while using the minimum amount of network storage. The system is fully integrated with a third party ACS and IDS system so that any incident detected generates an audio and visual alarm on the control monitors. This alarm automatically triggers a switch in the recording profile which increases the resolution and bit rate, allowing for real-time recording of mission-critical incidents. For more information please visit: www.synx.com

Rittal’s new easy connect bus-mounting fuse bases are supplied as complete units, which includes a cover plate, contact hazard protection and exterior connection clamps. Snapping onto Rittal’s RiLine60 busbar system, the fuse base has a modular design with options for configuration to meet specific requirements. The modular design allows direct connection of 1.5mm to 25mm cables, achieved by a flexible routing system. There is an option to use a connection space extender, which is mounted on the side of the fuse base. Spring-mounted contact plates and multi-track threads in the screw cap mountings enable easy snap-fastening and good dissipation. An unlatch button on the frame allows simple removal from the busbar system. 3 pole versions are available with ratings of up to 63A. For more information please visit: www.rittal.co.uk www.the-eic.com

April 2013

EIC UK, Overseas & Training

UK, Overseas & Training March 2013

25 Industry Overview: Fundamentals of Power 26 Sector-Based Forum: Upstream with EPC Offshore 27 Management Course: Understanding Contracts 28 Industry Overview: Fundamentals of Oil & Gas

E.ON UK, Nottingham Hilton Treetops Hotel, Aberdeen Pan Asia Wikborg Rein, EIC Singapore Proclad Academy, Dubai

April 2013 9 Management Course: Introduction to Social Media 9 Management Course: Technical Writing Workshop 10 Technical Workshop: Introduction to Gas Storage 11 Business Presentation: Opportunities with Bechtel 15 Business Presentation: Opportunities in China 16 Industry Overview: Fundamentals of LNG 17 Business Presentation: Opportunities with Foster Wheeler 18 HSE Training: Safety for Senior Executives (IOSH Accredited) 23-25 Management Course: Understanding Project Management 25 Industry Outlook: Commercial Strategies for Complex Sales 25 Technical Workshop: Introduction to FPSOs

Herd Communications, EIC London EIC Houston Centrica Storage, Easington EIC London EIC London eMJay LNG, EIC London The Westin Hotel, Dubai EIC London EIC London Rio de Janeiro ESD Simulation Training, EIC London

May 2013 1 Industry Overview: Introduction to the Gas Industry IGEM, EIC London 2 Business Presentation: Opportunities in Fusion EIC London 2 Management Course: Developing a Business Case Neos Learning, EIC London 3 Industry Outlook: Overcoming USA Market Resistance EIC Houston 7 Management Course: Presentation Skills Inspirit Training, EIC London 9 Industry Overview: Fundamentals of Oil and Gas EIC Singapore 10 Technical Workshop: Introduction to Shale Gas EIC Aberdeen 14 Technical Workshop: Introduction to Tidal Turbines Fraenkel-Wright, EIC London 15 Corporate Entertainment: Northern Region Golf Day Rockliffe Hall, Darlington 15 Industry Overview: Fundamentals of Oil and Gas EIC Aberdeen 15 Sector-Based Forum: Refining & Petrochemicals WorleyParsons, EIC London 21 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 22 Business Presentation: Opportunities with SITA UK EIC London 23 Industry Overview: Fundamentals of Oil and Gas Rio de Janeiro 28 Management Course: Bids and Proposals Writing Seminar EIC Houston June 2013 4 Technical Workshop: Introduction to Gas Turbines 6 Management Course: how to Write Winning Bids 7 Technical Workshop: Introduction to Reservoir Engineering 10 Industry Overview: Fundamentals of Power 12 Technical Workshop: Centrifugal Pump Design 18 Industry Overview: Fundamentals of Oil and Gas 20 Management Course: Finance for the Non-Finance Manager 26 HSE Training: Introduction to Pressure Equipment Directive

Siemens, Lincoln Rothera Group, EIC Aberdeen ESD Simulation Training, EIC London E.ON UK, Ratcliffe on Soar SPP Pumps, Gloucester EIC London Neos Learning, EIC London Nuvia, Warrington

For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com www.the-eic.com

April 2013

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2013

Status

6-9 May Offshore Technology Conference (OTC)

Houston

Sold Out

5-7 June Oil & Gas Asia (OGA)

Kuala Lumpur

Sold Out

11-14 June Brasil Offshore

MacaĂŠ

2 Stands Remaining

29-31 October OTC Brasil

Rio de Janeiro Booking Now

10-13 November ADIPEC

Abu Dhabi

Booking Now

13-15 November Oil & Gas Indonesia (OGI)

Jakarta

Booking Now

tbc Overseas Delegation to Colombia

tbc Overseas Delegation to Mexico

tbc Overseas Delegation to Indonesia

tbc Overseas Delegation to Venezuela

tbc Overseas Delegation to India

tbc Overseas Delegation to Vietnam

For further information on Exhibitions & Delegations please contact: events@the-eic.com

National Events 2013

Status

22-23 May EIC Member Pavilion at All-Energy 2013

Aberdeen

Last Few Stands Remaining

4 June EIC Connect Oil, Gas & Power

Abu Dhabi

Delegate Places Booking Now

3-6 September EIC Member Group @ Offshore Europe

Aberdeen

Sold Out

Manchester

12-13 November EIC Connect Energy

Contact +44 (0)20 7091 8600

www.the-eic.com

events@the-eic.com

BOOKING NOW

For further information on National Events please contact: nationalevents@the-eic.com

April 2013

EIC Overseas Exhibitions & Delegations

Overseas Exhibitions

Event Report Australasia Oil & Gas 2013 20-22 February 2013 Perth This year AOG saw an almost 10% growth in the number of exhibitors plus ten thousand visitors, including DirectorGeneral of UKTI Australasia Nick McInnes and Scottish Enterprise Chief Executive Dr Lena Wilson. Over 500 exhibitors showcased their products and services to influential industry visitors. The UK Pavilion was the biggest of the international country pavilions with Italy, China and Holland also assisting in promoting their countries exports. UK companies took advantage of a number of networking and informative events peripheral to the exhibition. A networking reception, held on the roof top of the Print Hall offered an excellent chance for the UK companies from the EIC, SDI and Subsea UK groups, along with trade delegates from UKTI North East, to meet one another. A visit to the Australian Marine Complex prior to the exhibition offered the chance to meet companies who have set up in Australia. The Western Australia Government also gave an Investment Briefing Forum on market developments on and offshore WA. The exhibition provided members of the UK supply chain with excellent exposure to existing and new customers resulting in a host of new business leads, particularly in LNG and support services.

Forthcoming Exhibitions

Brasil Offshore

11-14 June 2013 Macaé 2 Stands Remaining Why exhibit at Brasil Offshore? • The International Brasil Offshore Oil and Gas Exhibition is held every two years in Macaé, the operational base for more than 80% of offshore exploration in Brazil. • The event is well established in the market and has been running for 10 years. • It enables E&P professionals to look for new exploration and production technologies, discuss new ideas and find solutions that allow them to see the potential of the Brazilian offshore market. • Diversity of exhibitors combined with high levels of decision making is a recipe for success for the third largest offshore exhibition in the world.

Offshore Technology Conference, Brasil

29-31 October 2013 Rio de Janeiro Booking Now The EIC is proud to be organising and managing the UK Group at OTC Brasil 2013 for the first time, taking place at the Riocentro Convention Center. Following the success of OTC’s flagship event in Houston, OTC Brasil is sure to follow in its footsteps. Why exhibit at OTC Brasil? • Showcase products and services to more than 10,000 industry leaders and buyers from 65+ countries. • Access to thousands of highly qualified E&P professionals around the world to showcase your company and capabilities. • OTC Brasil 2011 saw 400 companies from 23 countries represented at the exhibition. • 2011 saw two exhibit halls measuring over 11,500m2. • Expand your business with the largest gathering of NOCs and IOCs in South America.

Overseas Delegations Event Report Overseas Delegation to Ghana 18-22 February 2013 Accra and Takoradi The EIC recently managed a market visit to Accra and Takoradi, Ghana to explore the range of business opportunities on offer within the oil and gas sector. The delegates met a range of operators and contractors, both national and international, in order to better understand the Ghanaian market, gaining invaluable advice, contacts and information. Delegates also got the chance to meet the Minister of Energy, and the newly formed government body The Petroleum Commission, enforced with registering foreign companies. From meetings with the likes of Baker Hughes, Technip, Expro Gulf and Tullow Oil it is clear that not only is Ghana Africa’s newest oil producing nation, but that many companies wish to use Ghana as their ‘West African Hub’, due to its political stability, and lack of crime and corruption. Companies visited included: Tullow Oil, Ghana National Petroleum Corporation, Ministry of Energy, Lonrho, Stellar Group, WorleyParsons, Technip, Expro Gulf Ltd and Modec Ghana Ltd. A networking reception at the British High Commissioner’s Residence allowed for industry specific introductions, and served as a great follow up for the delegates to talk to people they had met at presentations and meetings earlier in the week. For more information on future trade delegations please contact the EIC Overseas Events team.

Oil & Gas Indonesia (OGI)

13-15 November 2013 Jakarta Booking Now Why exhibit at OGI? Facts from 2012: • The exhibition spanned 8542m2, up almost 2000m2 from 2009. • Over 10,000 visitors went to OGI 2011. • There were 728 exhibiting companies at OGI, almost 200 more than in 2009. • 46 countries were represented – 10 more than in 2009. • The show had 6 international group pavilions: Canada, Germany, Italy, Korea, Singapore and the UK. The EIC is delighted to again be managing the UK National Pavilion at all three of these exhibitions, as well as many more (see page 13). For more information on overseas exhibitions or delegations, please contact the EIC Overseas Events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com

April 2013

EIC Middle East News

Middle East News

Moving on to training, we were once again very pleased to have a full complement of delegates for the second running of our Fundamentals of Oil & Gas course which reflects the interest in this subject and it is therefore our plan to see if it can be repeated again later in the year. For April we are looking forward to hosting Foster Wheeler for our Opportunities business lunch and later on, we hope to repeat our very popular Fish & Chips night, so please keep an eye on our events section for more information. Finally on events, our plans for the EIC Connect event taking place in June at the St Regis Hotel in Abu Dhabi are moving along nicely. At the time of writing, all the exhibitor spaces have now been taken and the rest of the programme is slowly coming together. Please keep an eye on the event website – it promises to be one not to be missed: www.eic-connect.co.uk The regional geopolitical landscape continues to focus on the unrest in Syria, Iranian nuclear aspirations and uncertainty in Egypt, Iraq and to a smaller extent, Bahrain. Despite this, the levels of business opportunities in the region remain very high which is reflected in the high proportion of members who have established a firm presence here. Representatives of EIC members who we had the pleasure to meet last month include Steve Pigg of SafeHouse Habitats, Andy Farie, Archer, Shady Shourbagy of International SOS, Mike Doubleday, Es-Ko and last but not least, Brian Britnor of Hadar Lighting. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News

This month’s news should start with a short report on our Overseas Delegation to Erbil, Kurdistan. With the assistance of the London Office of the Kurdistan Regional Government, we were able to put together an excellent programme of meetings which allowed the delegates to gain a valuable insight into how to do business, identify what the opportunities are both for now and in the future and what steps need to be taken in order to participate in this emerging market. The visit culminated with us being able to have a meeting with the Minister of Mineral Resources, Dr Ashti Hawrami who was very enthusiastic about strengthening bilateral trade ties with the UK, especially in the key oil and gas sector. As a result, it was agreed that we would explore ways in which we can get the message out there that Kurdistan is open for business. Security and visas are not an issue and with the very transparent business methods in place, it promises to be an excellent new market to explore.

Regional Comment

Gazprom Neft increases Kurdish interest Gazprom Neft has signed a production sharing contract with the Kurdistan Regional Government (KRG) for exploration rights in the Halabja Block, located near the border with Iran. Gazprom Neft will hold an 80% interest in the block and the KRG will hold the remaining 20%. The Halabja Block is estimated to hold between 660-733 million barrels of oil.

Another important event to report on is the Middle East Golf Day. This was our third tournament and by far the best ever. Not only was the venue far superior to previous, but the take up was second to none. We had to cap the number of players to 104 but also invited non-players to enjoy the hospitality in the evening when the prizes were distributed. A small raffle took place for the balance of items donated to us by various stakeholders who we work with throughout the year. With a cumulative score of 59.07 (don’t ask me how this score was arrived at) we had a new tournament winner in Express Electrical and their captain, Craig Gittus was delighted to be presented with the trophy by Rashmi Mandani from the tournament sponsors, Aggreko (see photo). The runners-up were Sulzer Pumps and third prize went to the winners of the first tournament, Baker Hughes. If anybody would like to see the full set of photographs taken that cover the whole day, then please use the link: https://www.dropbox. com/sh/1nqr42gpqft67on/AbrMx3-f-8?m

Golan Heights exploration licence awarded The Israeli government has issued the first license to explore for oil on the Golan Heights, the plateau in south western Syria captured and annexed by Israel in 1967. Genie Energy has been awarded the licence and they have announced that its Israeli subsidiary will undertake oil exploration on an area of almost 400 square kilometres in the plateau’s southern portion. Sonatrach makes oil and gas discovery Sonatrach has made an oil and gas discovery in contract area 95/96, Ghadames Basin. The A1-96/01 exploration well was drilled to a total depth of 1,884 metres in the Tahara formation and produced 2,188b/d of oil and 1.5MMcf/d of natural gas. The contract area has the potential to produce 8,200b/d of oil and 60,000cf/d of gas once development commences.

Oil, Gas & Power 2013 – Book your place before 30 April www.the-eic.com

April 2013

EIC National Events

With the agenda taking shape and the exhibition sold out, you can now book your delegate place at the next edition of EIC Connect! Outline Agenda In the main Exhibition Hall: • Operators and contractors will unveil their forward workload and supplier requirements in a series of presentations from theatres in the exhibition hall. See map opposite. • Sessions will be supplemented with One 2 One appointments which pre-registered delegates can book online in the weeks leading up to the event.

In the Conference Room: • Delegates will benefit from 2 conference sessions running alongside the above presentations as part of the entry package. • Panellists are drawn from IOCs, NOCs and EPCs to give their perspective, while seeking feedback on how to develop their supply chain long term. • Ideal for owners and senior managers within SME’s to attend these complimentary 90 minute sessions to understand current and future market trends in the following areas:

The above agendas are examples only. For updates please check: www.eic-connect.co.uk www.the-eic.com

April 2013

EIC National Events

8 weeks to go! Book your place for just £179 before 30 April 2013

To host the growing programme, EIC Connect will take place at the brand new St Regis resort on Saadiyat Island in Abu Dhabi, covering opportunities in oil, gas & power across the Middle East and including the all new conference sessions. This event promises to be the best EIC Connect yet!

Look who will be exhibiting:

Delegate places available to all for just £229 each (approximately AED1275/US$350). EIC members booking between 8-30 April will pay just £179 (approximately AED1000/US$275). Entry fee includes access to all presentations, lunch, refreshments, delegate list, event brochure and presentation copy. Opportunity to book meetings with speakers and UKTI Commercial Officers.

EIC member company based in the UK? See how cost effective this trip could be! Delegate entry from just £179 for the day. Direct daily flights from Manchester and London with Etihad Airways are typically less than £500. Accommodation at the event hotel is approximately £135pppn (based on AED750 including taxes and breakfast). For last remaining sponsorship opportunities contact: Sarah Lansdell Tel +44 (0)1642 379 974 Email sarah.lansdell@the-eic.com

Delegate booking form online at: www.eic-connect.co.uk www.the-eic.com

April 2013

EIC UK News

News from our UK offices Forthcoming Events

Business Presentation: Opportunities with Bechtel 11 April 2013 EIC Conference Suite, London Bechtel is among the most respected engineering, project management and construction companies in the world. Bechtel operates through five global business units that specialise in oil, gas, and chemicals (OG&C); civil infrastructure; power generation, communications, and transmission; mining and metals; and government services. Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, their 53,000 employees team with customers, partners and suppliers on diverse projects in nearly 50 countries. Current OG&C projects include BP West Nile Delta, Reliance J3, Reliance J3 Offsites & Utilities (Marine & CPP), the Wheatstone, Gladstone and Queensland Curtis LNG plants in Australia, Sabine Pass LNG and Keystone pipeline in North America and the Mozambique LNG project FEED. Andrew Cuniah, Procurement Operations Manager for London, will join EIC members to detail Bechtel’s procurement processes and strategies and provide an overview of the projects that they are currently involved in and bidding for. Contact: daisy.crisp@the-eic.com

Business Presentation: Opportunities with ABB April 2013 EIC Conference Suite, London Further information available at: www.the-eic.com Contact: daisy.crisp@the-eic.com Business Presentation: Opportunities in Fusion (ITER project) 2 May 2013 EIC Conference Suite, London The International Tokamak Experimental Reactor (ITER) is a large-scale scientific experiment that aims to demonstrate that it is possible to produce commercial energy from fusion. From just 50MW of input power, the ITER machine is designed to produce 500MW of fusion power. This ground-breaking experiment brings with it over £5,500 million of opportunities for supply chain organisations throughout Europe. We will be joined by representatives from the UK Atomic Energy Authority to present the procurement processes and opportunities arising from the construction of the reactor. The project will take around 8 years to build and will require conventional and also specialist engineering expertise. The project has one of the largest procurement budgets and longest project time lines of recent years; the operators and contractors involved are releasing package tenders on a regular basis so do not miss out finding out where you can get involved. Contact: daisy.crisp@the-eic.com

Business Presentation: Opportunities in China 15 April 2013 EIC Conference Suite, London China now has the world’s fastest-growing economy and is undergoing what has been described as a second industrial revolution. China remains the world’s top destination for foreign investments as the country still holds many competitive edges, according to a report jointly released by China Development Research Foundation and PricewaterhouseCoopers (PwC). The growing Chinese clean and energy efficient production market is a potentially lucrative one for UK companies. China has set ambitious targets for individual enterprises to reduce energy use and UK Trade and Investment (UKTI) sees this as an opportunity for UK companies to provide technology and services that can help Chinese organisations become more sustainable. UKTI’s Clean and Energy Efficient Production ‘CEEP’ initiative aims to help UK companies export their technology and services to the Chinese market. Topics will include: how to do business in China; finding and realising business opportunities; dos and don’ts in China; and managing financial, IP and legal issues. Contact: leeann.stewart@the-eic.com

Sector-Based Forum: Refining & Petrochemicals 15 May 2013 EIC Conference Suite, London The EIC’s Refining & Petrochemicals Forum will meet in May to discuss new projects, project updates, political and technical factors affecting the sector. This is your opportunity to find out more about up-to-date changes to current refining and petrochemical projects, enhance your business by investigating the potential opportunities for your organisation on new projects and to meet and develop business contacts with other company representatives interested in the sector. Stephen Nicola, Business Information Officer at the EIC will be joined by a guest speaker from WorleyParsons who will be detailing the shutdowns and turnarounds processes involved within this industry. Further details will be available shortly at: www.the-eic.com Contact: daisy.crisp@the-eic.com

EIC Award for Supply Chain Excellence closing date 30 April 2013 www.the-eic.com/award www.the-eic.com

April 2013

EIC UK News Corporate Entertainment: Northern Region Golf Day 15 May 2013 Rockliffe Hall, near Darlington Rockliffe Hall will once again play host to the Northern Region Golf Day. Set in the rolling Tees Valley countryside in the picturesque village of Hurworth on Tees, it is only minutes from the A1 and Durham Tees Valley airport. The day will begin with a breakfast buffet in the club house. Teams of four will play a Stableford competition, with the best two scores counting. The winning team will be awarded the Flexitallic Challenge Bowl Prize. On completion of your team’s round, there will be a two course dinner in the Grassholme Suite, along with the presentation of prizes. Please contact the Northern office for more information. Contact: jennifer.hole@the-eic.com

Sector-Based Forum: Carbon Capture & Storage May 2013 EIC Billingham The development of Carbon Capture & Storage (CCS) in the UK to date has been a triumph of intent over delivery, but with the launch of DECC’s CCS Commercialisation Programme last year the scene looks set for its introduction as part of the low carbon energy mix. Teesside is ideally placed to be part of this infrastructure development with its large concentration of CO2 emitters and easy access to the North Sea for storage. This presentation will set out the background and technologies involved and explore the potential opportunities for CCS in the region. Further details will be available at: www.the-eic.com Contact: jennifer.hole@the-eic.com

Business Presentation: Opportunities with SITA UK 22 May 2013 EIC Conference Suite, London Further information available at: www.the-eic.com Contact: daisy.crisp@the-eic.com

Corporate Entertainment: Scottish Region Golf Day 3 July 2013 Trump Golf Links, Aberdeen Further information available soon. Contact: leeann.stewart@the-eic.com

UK Executive Luncheons 2013

EIC Executive Luncheons are biennial events which bring together the MDs and CEOs of EIC member companies in an exclusive, high level networking capacity. This year, each EIC UK regional office will again be offering EIC members the opportunity to partner with us to help us promote your organisation. The package on offer includes: • Opportunity to place literature and/or giveaways on the tables. • A number of places at the Lunch, providing the opportunity to invite colleagues and guests from across the industry. • A named thank you during the welcome speech from the EIC’s CEO. • Opportunity to give a ten minute company introductory speech. • Editorial opportunity within Energy Focus magazine, circulated to over 4,000 industry representatives (subject matter to be agreed).

• Logo and acknowledgement on the EIC website. • Joint branding with the EIC on all literature regarding the event including the invitations which will be issued to each guest. • Acknowledgement and branding on the front cover of the event programme. • Branding opportunities at the event within the drinks reception area which could take the form of literature, banner stands/pop ups etc. • Full page advert in the event programme. • Acknowledgement in the EIC Monthly News pre and post event.

This is an ideal opportunity for a company looking to raise their profile within a specific region or sector. For more information, please contact one of the EIC Regional Managers below: Charlotte Hust, Southern Region Contact: southern@the-eic.com

Helen Doona, Northern Region Lesley-Anne Brodie, Scotland Contact: northern@the-eic.com Contact: aberdeen@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

April 2013

EIC Asia Pacific News

Asia Pacific News Office News

Indonesia to provide fiscal incentives for oil and gas The Indonesian government will provide fiscal incentives for production sharing contractors carrying out oil and gas exploration activities in the country, in a bid to help ensure future production. The incentives include exemption of import duty, reduction in land and building tax, as well as income tax. The incentives are needed to help bolster oil and gas exploration activities which are crucial to finding new oil reserves for future production. Significant reduction or exemption of this tax will ease the burden of the PSCs.

We are pleased to welcome Terence Manuel as the new Business Information Manager for the Singapore office. Terence was previously the Head of Market Analysis for Agip KCO NV and Trade & Investment Officer at UKTI Singapore. Terence brings with him many years of experience in business development focusing mainly on the ASEAN region. With this background, we are certain he will be a great asset to the Singapore and BI team. Terence can be contacted at: terence.manuel@the-eic.com We had over 50 delegates attend the presentation on the Overview of the Asia Pacific LNG Sector by GL Noble Denton at the Siemens Center on 7 March. We also successfully ran our pilot training courses The Fundamentals of the Refining Process and Understanding Contracts. We are expanding the training programme to offer more courses.

Japan government to give loan guarantee for LNG The Japanese government plans to offer ¥1 trillion in loan guarantees for projects aimed at securing cheaper LNG. Japan has been under pressure to secure low cost LNG after the Fukushima nuclear disaster. The loan guarantee programme will be offered through Japan Oil, Gas and Metals National Corp. Japan and other parts of Asia have been paying higher prices for LNG imports than the US and European countries as prices in Asia are linked to expensive crude oil prices under long-term contracts.

Forthcoming Event Industry Overview

The Fundamentals of Oil & Gas 9 May 2013 EIC Singapore This one day workshop will focus on the upstream sector and aims to give participants a basic understanding of the processes of exploration and production. In addition, the course will offer an appreciation of the importance and place of the upstream sector in the broader oil and gas industry. Bob Dook has nearly 40 years of direct experience in international exploration and production and has spent most of his career working throughout Asia. With senior management or consultant advisory roles in national, super-major, major and independent petroleum companies, including Unocal, British Gas and Chevron, he is well-versed in communicating with staff from many different cultures and disciplines.

Myanmar to clarify oil and gas investment condition The Myanmar government has released details on the new Foreign Direct Investment Law’s requirements for overseas oil and gas sector investors. Foreign firms will be able to own 100% stakes in projects for exploring, accessing and transporting and processing oil and gas, and there is no minimum investment value. The law includes guarantees against nationalisation and tax holidays. Foreign investors are required to sign production sharing contracts with Burmese firms, but there is no requirement on how much control should be granted to local companies. There is a 40% to 50% capital gains tax on asset transfers.

If you need any help or advice in the region or for more information about upcoming events, please contact us: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

Philippines awards 15 blocks The Philippines’ Department of Energy has awarded 15 blocks under its Fourth Philippines Energy Contracting Round (PECR 4) to developers. Under PECR 4, the government offered more than 100,000sq km to bidders. The blocks are spread over the Philippines, with three onshore and 12 offshore. Three blocks lie in the South China Sea north of Palawan (Area 3, 4 and 5), while five lie in the Sulu Sea south of Palawan (Area 10, 11, 13, 14 and 15). Four blocks are located in the Sulu Sea east of Palawan and south of Mindoro (Area 6, 7, 8 and 9), while two lie onshore Luzon (Area 1 and 2) and one lies onshore Mindanao (Area 12).

Regional Comment

Australian coal seam gas ban puts projects at risk Lawmakers in New South Wales have tightened restrictions on the production of coal seam gas. Coal seam gas drilling will be banned within 2km of residential areas. The bans will also apply to land containing vineyards and horse studs. This may restrict the activities of companies including AGL Energy, which has significant coal seam gas drilling projects planned in the state. The extraction of coal seam gas carries in particular the risk of water contamination, as salt water mixed in with the gas is sucked up to the surface from the rock in which it is embedded.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

April 2013

EIC China News

China News

CNOOC to boost capex this year to US$14 billion CNOOC Ltd has announced that it will step up its capital spending to US$12-14 billion this year. Given the statecontrolled firm’s continued thirst for resources this would be achieved on the back of drilling around 140 offshore exploration wells, plus the acquisition 9,569 miles of 2-D seismic data and 9,575 square miles (24,800 square km) of 3-D seismic data.

Regional Comment

CNPC targets 300m tons of oil and gas output in 2013 China National Petroleum Corp (CNPC), the country’s largest energy producer, expects oil and natural gas output to exceed 300 million tons of oil equivalent (mtoe) in 2013. That would be a minimum increase of 7.9% from the 278mtoe produced by CNPC in 2012. The parent of PetroChina also aims to increase proven reserves of oil and gas by one billion tons on average every year.

China increases demand for fracking services China will continue developing tight gas and other low permeability resources. These make up more than 70% of domestic discoveries in recent years, and currently supply 40% of total oil and gas output. Their development will increase demand for hydraulic fracturing services and other speciality engineering in the next 5-10 years. The Chinese market for fracking services will be worth RMB31 billion (US$4.94 billion) in 2020, up from RMB6 billion at present, while annual demand for fracking equipment will grow from RMB1.5 billion in 2011 to RMB7 billion by 2020.

US gives green light to CNOOC bid for Nexen Nexen Inc has said that the Committee on Foreign Investment in the US has approved CNOOC Ltd’s US$15.1 billion acquisition of Nexen, clearing the last significant hurdle in the deal, China’s biggest overseas acquisition to date. The Canadian government approved the deal in December, after an extensive review of its own foreign investment rules and its policy towards state-owned enterprises in particular. Britain also agreed the deal. US and British authorities needed to sign off because Nexen controlled significant assets in the Gulf of Mexico and the North Sea. The US approval came after the companies agreed to resubmit their application in front of the committee, a multiagency group in Washington that vets significant foreign investment in the US. CNOOC has started a new push into North America recently, focusing on Canadian assets.

COSL targets ‘strategic’ expansion China Oilfield Services Limited (COSL) plans to spend up to US$800 million this year alone on ‘strategic’ expansion of its offshore equipment, such as rigs, in support of affiliate company CNOOC Ltd. The building programme includes three rigs – two jack-ups and one semi-submersible – 14 supply vessels and two survey ships, COSL said in a statement recently. It comes after CNOOC announced expenditure of between US$12 billion and US$14 billion for 2013 to strengthen exploration and production, especially in the South China Sea. That work includes drilling 140 exploration wells and collecting seismic data over approximately 40,000 square km. About 60% of COSL’s capital outlay this year is earmarked to go on drilling support vessels. The single biggest new piece of equipment will be a prospector series semi-submersible rig capable of drilling in offshore depths of 1,500 metres. The rig will be built in the CIMC Raffles yard at Yantai but is unlikely to be completed before 2015.

China offshore driller to gain from CNOOC’s takeover China Oilfield Services Ltd (COSL), the country’s dominant offshore drilling services provider, stands to reap considerable benefits from China National Offshore Oil Corp Ltd’s (CNOOC) purchase of Nexen Inc. CNOOC Ltd is COSL’s largest customer, accounting for some 60% of its income in 2011 and both companies are listed in Hong Kong and majority-owned by CNOOC. Buying Nexen, which has productive offshore assets in the North Sea, West Africa, and Gulf of Mexico, is expected to boost CNOOC’s output and reserves of oil and gas by 20%. Nexen also holds oil sands and shale gas assets in Canada, which will improve COSL’s future performance and evaluation. As a subsidiary company to CNOOC group, the higher capex that CNOOC spends will guarantee business for COSL. It is also forecasted that drilling rates will rise significantly in 2014 and 2015.

BASF-Sinopec to form JV for plastics plant in China BASF and China Petroleum & Chemical (Sinopec) will form a new joint venture to construct a new isononanol (INA) plant in Maoming, Guangdong, China, following the successful completion of a joint feasibility study. The 50-50 JV, BASF MPCC, has received pre-approval from the Maoming Administration of Industry and Commerce. The new INA plant will offer important feedstock for nextgeneration plasticisers, including diisononyl phthalate (DINP) and non-phthalate plasticiser Hexamoll DINCH. Fully integrated into the existing MPCC petrochemical site in Maoming, the facility is also expected to provide the joint venture with a system to manage energy and reduce water use, emissions and waste.

China’s overseas oil output doubles In the first tally of the impact of China’s recent overseas oil investments, the International Energy Agency (IEA) calculates China’s national oil companies will produce three million barrels a day abroad in 2015, almost double their 2011 overseas output of just over 1.5 million barrels per day, as its state-owned oil companies spent a record US$35 billion buying foreign rivals last year. Analysis by the IEA indicates that Beijing’s oil firms generally sell their overseas production in the international market, rather than shipping the crude back to China.

For information and business support in China contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

April 2013

EIC North and Central America News

North and Central America News Office News

EICDataStream Overview 21 May 2013 EIC Houston For new members or those who need a refresher on how to use the EICDataStream database.

We are busy with OTC preparations and have been working with the EIC Overseas Events team organising our afternoon receptions in the EIC UK Pavilion Lounge. We’d like to thank all of our sponsors who have made the receptions possible and look forward to seeing you all there. Please remember to book your rooms early. There is a Job Fair being held at the George R Brown Convention Center the week before OTC that will bring in an additional 80,000 people to the city. We recently hosted an EIC colleague from our head office in London here in Houston. Louis Vye, EIC Consult Officer, was visiting our region to gather information for an upcoming report on shale gas in the US that EIC Consult will publish this month. We met with several different industry specialists and attended a luncheon focused on shale gas. We were very fortunate to have had such informative meetings and gathered a great insight to many aspects of shale play in the US. We also welcomed several member companies who have offices with us in Houston over the last month which is always enjoyable. Our tenant visitor list included Balltec, OilCareers, ARKeX, Rust Resources, Mentor and Heatric. We also welcomed 3M and Universal Acoustic & Emission Technologies who visited the office to get a better understanding of our local services. Universal Acoustic & Emission Technologies recently joined as an EIC Global Member and we look forward to working with them in the future. Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

Management Course

Bids & Proposals Technical Writing Seminar 28 May 2013 EIC Houston Shea Writing & Training Solutions will provide information on proposals for both commercial and government bids for EPC and EPIC contracts, equipment, facilities, and services; request for proposal, information and quote design.

Regional Comment

US oil output at 20-year high US oil output has hit a 20-year high, due to the increased amounts of crude being drilled from shale rock in Texas and North Dakota. Production is at 7 million barrels of oil per day, and the US could surpass Saudi Arabia as the world’s top oil producer within a few years. The Lone Star State alone contributed a quarter of all production, mostly from the Eagle Ford and Permian Basin, ranking Texas higher in output than Norway. New York State still considering shale gas New York Governor Andrew Cuomo is still debating the state’s stance on hydraulic fracturing. New York State is situated on the prolific Marcellus shale formation. The Governor is said to be considering a limited drilling plan to allow 10 to 40 pilot wells to be drilled in the economically depressed southern part of the state, in areas that would benefit from the jobs that fracking would create, and where support for the shale wells is greater. The Governor is currently awaiting results of a health study being conducted in Pennsylvania, where fracking is legal, after which the decision will be more easily made. However, by waiting on this study, the Governor can put off making his decision for another year.

Forthcoming Events Management Course

Technical Writing Workshop 9 April 2013 EIC Houston This management training course takes an active approach to improve your technical writing through participation exercises and practice on your current writing projects, resulting in immediate results, feedback and one-on-one evaluations from the professionals.

Mexico’s Pemex to receive private investment President Pena-Nieto’s ruling party has taken its first step in opening Pemex to private investment. The PRI party voted at the National Assembly to stop opposition to constitutional changes that would end the government’s monopoly on the national oil industry. The President acknowledged that energy reform is necessary if Mexico is to improve its competitiveness. Pemex is planning to spend more than US$25 billion in 2013 on oil and gas investments. Most of the spending (79%) will be focused on exploration and production, 17% on refining, and the rest on petrochemicals and gas processing.

Industry Outlook: Overcoming USA Market Resistance 3 May 2013 EIC Houston Dr Marvin Baker will present a half day workshop on how to be successful breaking into the USA market. Offshore Technology Conference (OTC) 6-9 May 2013 Houston Sold Out

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

April 2013

EIC South America News

South America News Forthcoming Events

Office News

Industry Outlook: Commercial Strategies for Complex Sales 25 April 2013 Rio de Janeiro Dealing with EPC contractors in the oil and gas market.

Following the success of Fundamentals of Gas Turbines held in February, the EIC is working on developing a training programme in Rio with new courses planned for April and May. If you are planning visits to the region, please don’t hesitate to contact the Rio team as we have prepared a calendar with all of the major events going on in South America. We hope this can be a useful tool for business developers. There are still places left with discounted rates for EIC members for Accelerate Oil & Gas/Accelerate Brazil being held in Rio on 21-22 May. EIC members can take advantage of a 15% discount (code for members EIC9236) please visit: www.accelerateoilandgas.com Special discount airfares are available from TAM Airlines: www.tam.com.brby using codes 368892 for domestic flights within Brazil (25% discount) or code 368893 for international flights (15% discount).

Industry Overview

Fundamentals of Oil and Gas 23 May 2013 Rio de Janeiro

Regional Comment

Bidding round for Brazilian shale blocks in December The Brazilian Mines and Energy Ministry is considering organising a bidding round for non-conventional exploration blocks. Basins likely to be included in the round are Parecis, São Francisco (where Shell is exploring shale gas), Parnaíba, Paraná, Recôncavo and Alagoas-Sergipe. The government is currently analysing details such as signature bonuses and exploration commitments that will be applied in the bidding round.

Event Report Industry Overview

Fundamentals of Gas Turbines 27 February 2013 Rio de Janeiro

P-63 arrives in Brazil The hull of the P-63 FPSO has arrived at the Rio Grande shipyard in southern Brazil. The unit was shipped from the Dalian shipyard in China, where conversion took place. Modules integration and commissioning are expected to be complete in the first half of 2013. The unit will be installed on the Papa Terra field in the Campos Basin, an area operated by Petrobras with Chevron as partner. YPF production on the rise According to Argentina’s state-run oil company YPF, production grew by 2.5% in 2012 and is expected to grow by 4% this year. In comparison, oil production declined by 8% in 2011. Gas production is also expected to increase 1.8% this year, up from a decline of 2.3% in 2012. YPF produces nearly a third of Argentina’s oil and gas output and has pledged to invest US$37.2 billion as part of its 2012-17 business plan.

Siemens Industrial Turbomachinery delivered this industry overview to 34 participants from companies including Petrobras, Andrade Gutierrez, Odebrecht, Transpetro, Technip, OSX and EIC members. Ian Amos, Product Strategy Manager at Siemens, Lincoln, gave a full review of gas turbines from product components, applications and engineering to thermodynamic principles, auxiliary equipment and modules. We would like to thank Siemens for presenting this workshop.

PDVSA signs agreement with Rosneft Both companies have signed five agreements for the assessment of upstream opportunities in Venezuela, including the development of the Rio Caribe and Mejillones gas areas (part of the second phase of the Mariscal Sucre project), the Blanquilla and Tortuga areas as well as the development of mature fields in Lake Maracaibo, among other areas. The creation of a joint venture focused on engineering and construction was also part of the agreement.

If you are interested in delivering a training workshop in South America, please contact us. Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

April 2013

If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (China) Room 2503, Tower B, R&F Twins Tower, No 55, Dong San Huan Zhonglu, Chaoyang District, Beijing, China 100022 Tel +86 10 5876 5705 Email beijing@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

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