EIC Monthly News April 2015
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www.the-eic.com
The EIC Chief Executive
The Chief Executive Welcome to the April edition of the EIC Monthly News. As the energy industry absorbs how new incentives unveiled in the budget will affect investment in future projects, the EIC has been connecting operators and Tier 1 contractors with supply chain companies, enabling them to work together more effectively. Last month’s budget offered the UK energy industry a number of incentives to boost business in the light of low oil prices. For North Sea operators, these included tax breaks and new investment in under-explored areas of the UK Continental Shelf, amounting to £1.3 billion of support for the industry. While resulting future opportunities for members will take time to filter down, the measures are expected to boost North Sea oil production by 15% by 2019. The Chancellor also used his budget speech to announce that negotiations are opening on a Contract for Difference (CfD) for the £1 billion 320MW Swansea Bay Tidal Lagoon project, which is positive news, providing a boost for a growing industry. And in an even longer-term vision, a £60 million investment in the new Energy Research Accelerator hub in the Midlands was unveiled. Despite current uncertainties we are still seeing some movement from key players in the industry who are being proactive about their role in driving future business. Further to last month’s Wood Group PSN business presentation, Amec Foster Wheeler presented an update on the company’s activities with a focus on the recent acquisition of Foster Wheeler, the potential to streamline processes and the need to capture the supply chain’s expertise at an earlier stage in order to fuel better efficiencies on current and future projects. Engaging with contractors at the FEED stage rather than EPC was also the key message of the Southern Region Contractor’s Update on 11 March at the EIC’s London head office. It allowed members to hear from four major companies – Aker Solutions, SNC-Lavalin, Genesis Oil and Gas and Bechtel. Aker recently announced that it had secured a US$590 million engineering contract at the Statoil-operated Johan Sverdrup development in the Norwegian North Sea, and this is the largest oil and gas project being engineered out of London. Looking to the Middle East, the EIC’s upcoming event with Chiyoda CCC Engineering Limited (CCEL) on 15 April will examine opportunities with the consortium, which was set up with the aim of targeting small to medium brownfield EPC projects. Then on 2 June, EIC Connect Middle East 2015 will look to directly contribute to increasing the UK and UAE’s 2015 bi-lateral trade targets in the energy industry by showcasing UAE energy project opportunities and promoting UK capability in the region. As ever, our Dubai office is ready to provide you with all the support and local business advice you need to get involved in the region. Whatever the political and economic climate, the EIC offers member companies a wide range of services, support, events and project information to make the most of global opportunities across the energy sector. For advice on maximising this business support, please get in touch at: membersupport@the-eic.com or call us on: +44 (0)20 7091 8600 Claire Miller, Chief Executive Stop Press The latest EIC Insight Report on Nuclear Decommissioning is now available, with a market focus on Japan, which is decommissioning nuclear reactors in the aftermath of 2011’s Fukushima crisis. If you want a detailed insight into opportunities available, be sure to request your copy. www.the-eic.com
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Contents The Chief Executive
2
Sector Analysis
3
Training Services
4
Member News
6
Events Diary
10
Overseas Events
12
UK News
13
National Events
14
Middle East News
16
Asia Pacific News
17
North America News
18
South America News
19
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April 2015
EIC Sector Analysis
Sector Analysis
These adjustments to the CCA have been announced just two months after Petronas delayed making the final investment decision (FID) on their CA$11 billion Pacific NorthWest LNG Export Terminal. Rising construction and pipeline costs, coupled with low oil prices, were outlined as some of the reasons for the delay. The FID is now expected to be made in June 2015. The project has still been progressing slowly with developers currently in discussions with a potential new project partner. According to EICDataStream there are a total of 23 LNG liquefaction projects under development, within Canada, with 18 of these located within British Columbia. Few of these projects have reached FID. Recently Kitsault Energy made a positive FID on their LNG facility and associated pipeline in January 2015 but no environmental assessments have been conducted and regulatory work is incomplete. Few projects have also secured significant offtake agreements, despite the National Energy Board granting approximately eleven projects export licences and Asia being targeted as the export market. However, only approximately four projects within the province are expected to go ahead. At present construction has only commenced on the Tilbury LNG Facility Expansion and Kitimat LNG Export Terminal. With capacity due to come onstream from other sources it has been stated that Canada must speed up development of its LNG projects to avoid lagging behind and possibly being pushed out of the market by competitors. With a global deficit of 120 mtpa predicted to potentially occur over the longer term, towards 2025, Canada could take advantage of this as long as projects are operational by then. The British Columbian LNG Alliance has stated that the direction of the Canadian LNG industry, particularly within the province, will become clearer throughout this year as companies work towards making FIDs. The Alliance is confident that at least one positive FID will be made this year. Many project developers are also in discussions with First Nations regarding the development of LNG facilities, and associated pipelines, and how these could be beneficial to them in terms of economic, environmental and social aspects. For example, Pacific NorthWest LNG signed a term sheet with the Kitselas First Nation in December 2014. With two of the biggest barriers to the development of the LNG industry removed it is hoped that this will result in an increase in investment and project development, hence enabling Canada to increase its position within the global market. Fiona King, Sector Analyst (Midstream) Tel +44 (0)20 7091 8629 Email fiona.king@the-eic.com
Canada announces LNG tax breaks to accelerate projects
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The Government of Canada has recently announced cuts to federal tax rates for Liquefied Natural Gas (LNG) projects in the hope that this will aid and encourage the development of the sector. Investment in LNG projects has been stalling in recent months as many companies decrease their spending, a consequence of low oil prices. Stephen Harper, the Canadian Prime Minister, announced changes to the capital cost allowance (CCA) for companies involved in the construction of LNG export facilities. The new CCA establishes a tax rate of 30% for equipment used in natural gas liquefaction and 10% for buildings located at LNG facilities, compared to previous rates of 8% and 6% respectively. These tax relief measures were available from February 2015 and will remain in effect until 2025. These new measures, it is hoped, will enable companies to recover their costs quicker. The Canadian Association of Petroleum Producers has predicted the changes will allow companies to write off approximately 90% of their investments within seven years. This is compared to a period of 27 years that was previously expected. A saving of approximately CA$50 million is also estimated to be made by companies over the next five years, with this figure possibly increasing as the industry grows. The changes further aim to increase Canada’s international competitiveness against other emerging LNG producers, such as Australia, Eastern Africa, Russia and the USA. Previously, in October 2014, the provincial government of British Columbia made amendments to their income tax rates applicable to income derived from the liquefaction of natural gas, conducted within the province. This was a previous effort to also increase investment in the LNG industry and to support job creation. On average approximately 6,000 workers will be required during the construction period of each facility, providing huge opportunities for the labour force. British Columbian Premier Christy Clarke supports these recent federal and provincial tax breaks due to the potential positive multiplier effect for the whole country. Tax revenues of approximately CA$1 billion per project are expected once operations commence, demonstrating one of the positive impacts that the industry may have.
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April 2015
EIC Training Services
Training Services
Training content can be tailored to meet your business needs, and having only your own people on the course will create focus and centre discussion on the issues that are most relevant to your organisation. With no external delegates it allows inter-departmental teams to discuss and work on real issues, encouraging greater teamwork, awareness and understanding of each other’s role. Employees may prefer learning with their colleagues, and training all of your staff together means that you can be sure of the consistency of their learning and development.
In-house Training
In-house training involves bringing a trainer to your preferred location to deliver a customised training course or programme for a group of employees. The group may consist of staff who work together in teams, or who work in various company locations across the country, or across the globe. What are the benefits of in-house training? Running a course or programme in-house offers numerous benefits for both individual employees and your company as a whole.
How much does in-house training cost? Because in-house training programmes are customised for the specific needs of each group, pricing will vary. If you have eight or more employees, in-house training is typically a more cost-effective solution than sending employees to a public training session. Many of the EIC training courses can be delivered in-house, and we would be happy to discuss your individual needs: training@the-eic.com
It can often save you money as the cost per delegate is typically less than when compared with sending the same number of people to external courses. With no need for employees to travel any further than their offices, the associated costs of travel, accommodation and expenses are also eliminated.
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Running an in-house course also allows you to work around your staff schedule, choosing a time and location that is most convenient for you.
Management Course
Time Management Wednesday 6 May 2015 Made to Measure Training, EIC London This workshop concentrates on the knowledge, skills and behaviour necessary for attendees to develop new ways of managing themselves, and ultimately their time, more efficiently.
Management Course
Management Course
Key Account Management Wednesday 13 May 2015 Change Creation, EIC Aberdeen This course is designed to equip sales professionals with the necessary knowledge, skills and behaviour to operate more effectively in order to maximise sales and profit in a competitive market.
Negotiation Skills Thursday 7 May 2015 Made to Measure Training, EIC London This course is designed to improve negotiation skills through a variety of exercises. It looks at preparation, planning, signals and proposals and bargaining.
Technical Workshop
Industry Overview
Introduction to FPSOs Wednesday 20 May 2015 EIC London This one day workshop examines the fundamental key components of FPSO technology and deployment, including FPSO design, systems development, subsea engineering, operations and export activities.
Fundamentals of Subsea Thursday 21 May 2015 EIC London This one day course provides an overview of the key components of subsea engineering including flow assurance, reliability and maintenance.
If you would like further information on our courses, or are interested in hosting a workshop please contact: terri.sylvester@the-eic.com www.the-eic.com
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April 2015
New Members
New EIC Members New Primary Member
ATP Medular
103 Church Road Quarndon Derby DE22 5JA Tel +44 (0)7879 636 424 Email philip@atpmedular.com Web www.atpmedular.com The Nominated Representative is Mr Philip Dawe, Executive Director. ATP Medular Ltd manages demand driven supplier communities. The access to members is a ‘cloud based hub’, delivering value by managing trade and compliance risks globally, regionally and locally through effective governance, risk management and due diligence. The company delivers comprehensive logistics and project management support to customers in Africa. ATP Medular physically deploys logistics and compliance services and solutions throughout Africa. Medular offers charter services on ocean vessels and ad-hoc capacity on aircraft. Through experts based around the world, Medular offers global On-Board Courier (OBC) services (hand carry courier services). Medular offers ships agency and husbandry services in various ports.
www.the-eic.com
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April 2015
MEMBER Alstom and Japanese conglomerate Marubeni have signed an EPC contract worth €950 million with the Electricity Generating Authority of Thailand (EGAT) to develop a new unit at Mae Moh power plant. The consortium will build a new 600MW unit to replace units 4-7 currently on the site, making Mae Moh the first ultra-supercritical lignite-fired power plant in Asia. Alstom will supply the ultrasupercritical boiler with integrated Selective Catalytic Reduction of NOx (SCR), an ultra-supercritical steam turbine and generator, air quality control systems and Electrostatic Precipitators (ESP), which capture particulate and dust emissions. On completion in 2018, the new unit will operate at ultra-supercritical conditions with temperatures and pressures above the critical point of water, leading to higher overall plant efficiency. This will deliver an improvement of close to 20% in the heat rate compared to the current specifications, increased power output, and a reduction of more than 20% in CO2 emissions per unit of fuel burned. Visit www.alstom.com
Damper Technology Ltd (DTL) has been investing in its Indian subsidiary company, DTL India. Not only with the construction of a purpose built 30,000 sq ft fabrication and assembly plant in southern India, which is due to be completed by the end of summer 2015, but also by offering secondment posts so that the Indian operation can gain the same global values and experience that customers of DTL have come to expect. The most recent secondment has been made by DTL’s SHEQ engineer, Phillip Chester-Nash, a valued member of the UK manufacturing, quality assurance and health and safety team. He is currently undertaking a 12 month programme of work to oversee the completion of the new factory build, to make it operational as soon as possible and to prepare the resources, processes and management systems to ensure the operation is both effective and efficient from the opening. His presence will continue in order to follow this through to work on the execution of some of the first projects to pass through the facility after the factory becomes operational.
Phillip Chester-Nash said about his recent secondment: “The new factory shell now being complete means that we can better visualise the scale of the resource we are investing in and begin to appreciate its potential capacity; it is quite impressive. The tasks I am facing are challenging but the opportunities and possibilities, without doubt, justify the investment we are making and that makes for exciting times ahead for DTL India. For those that like sunshine and warmth, they are in abundance here from the sky and the people, respectively.” DTL India was incorporated in 2011 and has established a strong presence in the Indian damper marketplace since it began operating. As part of the company’s commitment to continued development, it has already had a UK member of the design team work out of the Indian office and a member of the Indian team has visited the UK to gain product knowledge and training on their design software and standards. For more information please visit www.dampertechnology.com
Alstom
A new range of small GRP cabinets from Intertec provides installers with increased flexibility for protecting outdoor equipment. MINICAB housings combine a relatively high containment capacity with convenient pipe stand or wall mounting, and feature a flat fullsize hinged door for quick and easy access. They are designed to help customers simplify the layout, installation and maintenance of outdoor equipment without having to recourse to large footprint freestanding cabinets. www.the-eic.com
NEWS MINICABs are especially suitable for protecting smaller-scale field-based installations such as electrical, analytical or safety equipment against the effects of weather and unauthorised access. Their GRP construction also makes them ideal for long-life applications in harsh climates, and in plants handling chemicals and petrochemicals.
Universal Acoustic & Emission Technologies has won the prestigious 2014 Wisconsin Manufacturer of the Year Special Award in the Employee Development & Commitment category.
Intertec is initially launching MINICAB 44, which has a capacity of 44 litres and measures just 506 x 356 x 245mm (HxWxD); larger versions will follow. This is the smallest cabinet-style housing that Intertec has produced to date – other products in this size range comprise two-part enclosures that split open for access.
Universal was selected for the award because of its strong growth and commitment to training employees for Wisconsin’s technologyforward workforce. It has added more than 50 jobs in the past year at a growth rate of more than 20% in Wisconsin.
MINICABs are manufactured from hot-pressed GRP (glass reinforced polyester) for robust, maintenance-free performance in harsh outdoor environments. This material does not corrode and is impervious to the effects of salt and common atmospheric pollutants. An unobtrusive light grey in colour, the GRP is also UV resistant, has very low flammability and is selfextinguishing. An optional exterior gel-coat offers added protection for applications that involve prolonged exposure to intense sunlight.
The company started Universal University, which provides training in all areas of the company and demonstrates a corporate commitment towards employee growth in workforce development.
As standard the cabinet carries an IP54 rating, but IP65 versions are available. The cabinet is also impact resistant. MINICABs are also available in versions that are suitable for use in potentially explosive atmospheres. Intertec Instrumentation Ltd 14a Riverbank, Lower Beach Road Shoreham-by-Sea, West Sussex BH43 5YH Tel +44 (0)800 756 1102 Email sales@intertec-inst.co.uk Web www.intertec.info
Universal also implemented a growth programme in which high-potential employees are identified and go through a mentoring programme with upper management in conjunction with external leadership training. The goal is to develop and prepare future company leaders. In 2014, Universal opened an office in Houston’s Energy Corridor to better serve its customers in the oil and gas, power generation and chemical processing markets in Texas, Mexico, Central America and South America. www.universalaet.com
Manufacturer of cable management systems, Legrand, has launched a new innovative cable management component, developed to offer a fast fit alternative to the traditional nut and bolt. The new Swiftclip, which forms part of the UK’s Swifts cable tray range, has been designed with speed in mind. Requiring no tools during installation, the Swiftclip not only significantly reduces the number of components required, but also ensures installation times of at least four times faster than a nut and bolt solution. The Swiftclip is compatible with the existing Swifts medium (MRF) and heavy duty (SRF) cable tray systems, is load tested to BS EN 61537 and provides earth continuity without the need for additional components. In addition, the innovative cable management component is available for internal pre-galvanised and external post galvanised applications. Nigel Leaver, Lead Marketing Manager for the cable management business unit at Legrand, said: “At Legrand we take our market leading position in cable management systems very seriously and we are always striving to develop products that not only comply with the latest product standards and regulations, but meet at least one of our three core objectives for installers. New products should be easier to install, faster and need fewer components. To bring a product to market that meets all three criteria is a great challenge, but Swiftclip does this and more.” For more information of Legrand’s range of cable management solutions please call: Tel +44 (0)345 605 4333 or visit www.legrand.co.uk @TheEICEnergy
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Siemens
At OTC 2015, Parker will unveil new solutions for building tubing systems capable of meeting the immense challenges posed by higher pressures and corrosion mechanisms as oil and gas exploration and production moves into deeper offshore environments. The new technology will evolve the well-known ranges of small-bore tube fittings and valves from the Instrumentation Products Division of Parker Hannifin – provider of motion and control technologies. Engineers constructing tubing systems for high pressure hydraulics, chemical injection systems and other higher-pressure topside and subsea offshore applications will be presented with new tube connection technology that provides easy-to-apply solutions for pressures up to 15,000 or 20,000 psi. At pressures of 15,000 psi and more, tubing failures can pose an enormous threat to asset integrity. Ensuring asset integrity is a critical element of the new tube connection designs. Parker’s engineering spans the spectrum of potential failure modes – from guarding against mechanical failures to combating corrosion mechanisms. The new connection technology is supported by Parker’s heritage of materials expertise, which provides users with the highest-possible materials quality and the widest choice of corrosion resistant alloys to meet corrosion threats. Although metallurgy know-how is becoming quite common, Parker almost certainly has the broadest and deepest understanding of metallurgy in this market today – and will also help users with both expert advice and education. More www.parker.com
Siemens and Cengiz Enerji Sanayi ve Ticaret have announced the completion of the Cengiz Enerji Samsun single-shaft combined cycle power plant in Turkey two months ahead of schedule. Siemens supplied the SGT5-8000H gas turbine, an SST5-5000 model steam turbine, an SGen5-3000W generator, the electrical system and the SPPA-T3000 I&C system which constitute the plant’s power island. The company also supplied a Benson heat recovery steam generator and the auxiliary and ancillary systems for the plant, and has signed a long-term service contract for the main components. The Cengiz Enerji Samsun power plant can support 200 starts per year, powering up to full load in less than 30 minutes after a downtime of six hours, and can adapt its power output by up to 35MW per minute to support grid fluctuations. Constructed and installed by Cengiz, the 600MW capacity plant delivers an efficiency level of up to 61% which Siemens claims makes it the most efficient fossil-fired power plant in operation. Lothar Balling, head of the Project Management business unit, Siemens, said: “We are proud to have set a new record on the 50Hz market with this power plant and its efficiency level of almost 61%.” Please visit www.siemens.co.uk
Statoil has awarded oil field support services company ASCO two longterm contracts to provide supply base and warehousing services for the Mariner field. The contracts include the allocation of personnel, transport, marine gas oil and quayside services with options for CCU provision, and are each five years in duration with two further two-year options. Services are due to begin in Q1 2016 and will be delivered by ASCO in Peterhead. The Mariner development will include a production, drilling and quarters (PDQ) platform based on a steel jacket and a floating storage unit (FSU). Craig Lennox, CEO Europe at ASCO said: “We are pleased to be further strengthening our valued relationship with Statoil. This award demonstrates our commitment to providing a combined offering that delivers unparalleled service to our clients.” DNV GL has announced Nikola Vasiljević, Ph.D from DTU Wind Energy, the Technical University of Denmark, as the winner of the 2015 PhD Award in Renewable Energy. He was awarded a €5,000 cash prize for his winning thesis: ‘A timespace synchronisation of coherent Doppler scanning lidars for 3D measurements of wind fields’.
www.the-eic.com
The EIC is delighted to welcome Permasense to the EIC Houston office.
Statoil
Permasense provides remote integrity monitoring solutions to the upstream and downstream energy industry. This is the company’s first office outside the UK.
“We are pleased with the interest we received in the market for this tendering process. We received competitive bids from several highly qualified companies,” said Managing Director for Statoil Production UK, Gunnar Breivik. Follow the latest updates on the Mariner heavy oil field on EICDataStream http://eicdatastream.the-eic. com/EIC/projects/showproject. aspx?projectID=680775
Shell has selected Wärtsilä to supply dual-fuel engines for a specialised LNG bunker vessel currently under construction at the STX Offshore & Shipbuilding Company yard in South Korea.
The three 8-cylinder Wärtsilä 20DF dual-fuel engines were ordered in December 2014 and are scheduled for delivery in spring 2016. The new Shell vessel will be based at the port of Rotterdam in the Netherlands, and will load from the new break bulk terminal and jetty to be constructed by the Gas Access to Europe (Gate) terminal. Aaron Bresnahan, Vice President, Sales, Wärtsilä Ship Power, said: “This new specialised vessel is an important step towards LNG becoming the fuel of choice for shipping in Europe, and Wärtsilä is pleased and honoured to co-operate with Shell and STX in this project.” Visit www.wartsila.com
Peter Collins, CEO, said: “Houston makes perfect sense as our first location outside the UK; we’ve been active in the region for a number of years, but our new office will enable us to provide on-the-ground support in our fastest-growing market.” North America currently accounts for 40% of Permasense’s revenue and it expects to double its local staff over the next year. www.permasense.com Please visit www.the-eic.com/Launchpad if your company is interested in office space.
The competition has been promoted through DNV GL’s network of universities, and scientific conferences globally. In order to combat the threat of the growing engineering skills shortage, DNV GL understands the value of supporting the next generation of renewable energy leaders and the new innovative ideas that they bring. Please visit www.dnvgl.com
Wärtsilä
The 6,500 cubic metre capacity ship, which will be used to deliver gas to LNG fuelled vessels in north west Europe, will be able to use gas or diesel fuel.
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Events Diary
UK, Overseas & Training March 2015 31 Industry Overview: Fundamentals of Power E.ON, Nottingham 31 Technical Workshop: Introduction to Steam Turbine Technologies Siemens, EIC Rio de Janeiro April 2015
11 Industry Overview: Fundamentals of Subsea EIC Rio de Janeiro 13 Management Course: Successful Business in Challenging Markets Control Risks, Dubai 14 Industry Overview: Fundamentals of Refining & Petrochemicals EIC Kuala Lumpur 15 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 15 Business Presentation: Opportunities with Chiyoda CCC Dusit Thani Hotel, Dubai 15 HSE Training: HSE Legislation for O&G Supply Chain in Brazil EIC Rio de Janeiro 16 Industry Overview: Fundamentals of LNG EIC London 21 Regional Showcase: Olefins 6 Plant Project North East UK, venue tbc 22 Management Course: Tendering for Success Rothera Group, EIC Aberdeen 28 Management Course: The Effective PA EIC London 28 Business Presentation: Opportunities with GE O&G EIC Rio de Janeiro 28 Business Presentation: Opportunities with TH Heavy Engineering EIC Kuala Lumpur 28 Corporate Entertainment: Cheese and Wine Networking Night Vintage Wine Bar, Dubai 29 Technical Workshop: Centrifugal Pump Design and Manufacture SPP Pumps, Gloucestershire 30 Management Course: Technical Report Writing Rothera Group, EIC London
May 2015 5 Industry Overview: Fundamentals of Oil & Gas Radisson Royal Hotel, Dubai 6 Management Course: Time Management Made To Measure Training, EIC London 6 Industry Overview: Fundamentals of Refining and Petrochemicals Radisson Royal Hotel, Dubai 7 Management Course: Negotiation Skills Made To Measure Training, EIC London 13 Management Course: Key Account Management Change Creation, EIC Aberdeen 14 Industry Overview: Fundamentals of Oil & Gas EIC Rio de Janeiro 20 Technical Workshop: Introduction to FPSOs EIC London 20 Industry Overview: Fundamentals of Power EIC Kuala Lumpur 21 Corporate Entertainment: Northern Region Golf Day MacDonald Portal Hotel, Cheshire 21 Industry Overview: Fundamentals of Subsea EIC London 27 Industry Overview: Fundamentals of Downstream EIC Kuala Lumpur June 2015 9 Management Course: Advanced Business Writing Skills 11 Industry Overview: Fundamentals of Oil & Gas 13 Technical Workshop: Introduction to FPSOs 15-16 Management Course: The Effective Manager 18 Industry Overview: Fundamentals of LNG 25 Technical Workshop: Introduction to Shale Gas
Eton Institute, Dubai EIC Teesside EIC Rio de Janeiro EIC London EIC London EIC Aberdeen
July 2015 2 Technical Workshop: Introduction to Steam Turbine Technologies Dresser-Rand Co Ltd, Peterborough For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com
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April 2015
Events Diary
Exhibitions & Delegations 2015
30 March-2 April Overseas Delegation to Kazakhstan
4-7 May Offshore Technology Conference (OTC)
Houston
Status Fully Booked Fully Booked
11-15 May Overseas Delegation to India (Power)
Booking Now
17-21 May Overseas Delegation to Saudi Arabia and Bahrain
Fully Booked
2-4 June Oil & Gas Asia (OGA)
23-26 June Brasil Offshore
Kuala Lumpur
Fully Booked
MacaĂŠ
Booking Now
29 June-2 July Overseas Delegation to Turkey
6-10 July Overseas Delegation to Thailand
Booking Now
9-12 September Oil & Gas Indonesia (OGI)
Booking Now
Jakarta
21-25 September Overseas Delegation to the Philippines
Register your Interest
tbc September Overseas Delegation to East Africa (Kenya and Uganda)
27-29 October OTC Brasil
Booking Now Register your Interest
Rio de Janeiro Booking Now
tbc October Overseas Delegation to Australia
Register your Interest
tbc October Overseas Delegation to Mexico
Register your Interest
tbc October Overseas Delegation to Papua New Guinea
Register your Interest
9-12 November ADIPEC
Abu Dhabi
23-27 November Overseas Delegation to Cambodia
Booking Now Register your Interest
23-27 November Overseas Delegation to Venezuela and Trinidad and Tobago Register your Interest For further information on Exhibitions & Delegations please contact: events@the-eic.com
@EICOverseas
National Events 2015
2 June EIC Connect Middle East
8-11 September Offshore Europe
24-25 November EIC Connect Energy
Status
Abu Dhabi
Delegate Bookings Now Open
Aberdeen
Stand Bookings Open
Manchester
Register your Interest
For further information on National Events please contact: nationalevents@the-eic.com
23 A 26 DE JUNHO DE 2015 MACAÉ, RIO DE JANEIRO I BRASIL CONTACT deanne.lintorn@the-eic.com www.the-eic.com
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April 2015
EIC Overseas Exhibitions and Delegations
Overseas Exhibitions EIC Overseas Exhibitions and Delegations Overseas Delegation to India (Power) 11-15 May 2015 India is an area of increasing interest to companies due to the potential opportunities it can provide in the near future. Opportunities in the Indian power sector exist in renewables, conventional power, project management and niche technology offerings which can improve grid infrastructure. India is the fourth largest producer and fourth largest consumer of electricity in the world and also has the fifth largest installed capacity in the world. Electricity production in India stood at 967 TWh during FY14. The country’s power sector is set for US$250 billion investment across different segments. US$32.61 billion is planned to be invested in solar and power projects. The government also plans to accelerate wind energy generation by adding 10,000MW each year in order to reduce dependency on costly energy imports. For further information please contact Camilla Tew: Tel +44 (0)20 7091 8608 Email camilla.tew@the-eic.com
Overseas Delegation to Thailand 6-10 July 2015 Thailand is active in both upstream and downstream businesses. The country has about 449 million barrels of proven oil reserves and approximately 9 trillion cubic feet of natural gas. Almost all of its natural gas fields are located offshore in the Gulf of Thailand where Chevron and PTT Exploration and Production (PTTEP) dominate upstream oil and gas activity. Key field production areas include the Arthit, Bangkot and Platong fields in the Gulf of Thailand, and the S1 onshore block. The downstream businesses are dominated by PTT Group, the national oil and gas conglomerate, and the Siam Cement Group (SCG). One of the fastest growing and stable economies in Asia, Thailand’s energy mix has been changing over the last two decades with the proportion of oil to total energy consumption declining. For further information please contact Camilla Tew: Tel +44 (0)20 7091 8608 Email camilla.tew@the-eic.com
Brasil Offshore 2015 Oil & Gas Exhibition and Conference 23-26 June 2015 Macaé #EICBrasilOff15 TAP funding £2,500 for eligible SMEs
Delegation Report Overseas Delegation to Mozambique & South Africa 22-27 February 2015 The overseas trade delegation to Mozambique and South Africa consisted of 17 delegates from 15 UK companies keen to find out more about the current oil and gas opportunities in both markets. Operators Anadarko and Eni have discovered a combined total of up to 150 Tcf of natural gas in Mozambique. As a result of these discoveries, Mozambique has gone from a modest natural gas exporter to one of the top countries in the world in terms of natural gas reserves, with ambitious plans to become a very significant player in the LNG market. Through the construction of an LNG facility in Mozambique based on the combined offshore resources of Anadarko and Eni, first exports are scheduled for 2019. However there are challenges involved and this was obvious from the meetings we attended. Next stop was Johannesburg, which acts as a hub for sub-Saharan Africa. This allowed delegates to receive an overview of the wider region. We met with BP, Wood Group, Fluor, Amec Foster Wheeler and Sasol. In Cape Town we met with Shell, Engen and Tullow Oil as well as attending a UK networking reception, kindly sponsored by the South African Oil & Gas alliance and Norton Rose. As Mozambique passes a new petroleum law, which offers a clear and comprehensive legal framework to facilitate investment in the development of the country’s huge offshore gas reserves, and while South Africa is desperate to meet its increasing petroleum consumption, the opportunity for UK companies across all energy sectors in the region has never been better. Even with the current difficult market, UK Plc cannot afford to miss out on the opportunities that will be available in the coming years. mark.gamble@the-eic.com
The EIC is pleased to be returning to host the UK National Pavilion in Macaé, which is the operational base for more than 80% of offshore exploration in Brazil. Brasil Offshore is the third largest offshore exhibition in the world, considered one of the most relevant trade shows within the international offshore market, attracting visitors and exhibitors from 38 countries and covering all aspects of the Brazilian offshore industry. Brasil Offshore is the perfect platform for UK companies who are new to the market, those in the process of acquiring Brazilian companies, setting up manufacturing facilities, and those with fully fledged operations and experience in the market. For more information please contact Deanne Lintorn: deanne.lintorn@the-eic.com www.the-eic.com
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April 2015
EIC UK News
News from our UK offices
The day will include a breakfast buffet, 18 holes, with teams playing the Stableford competition with added individual player contests around the course. All this will be followed by a delicious two-course presentation dinner and the winning team being awarded the Flexitallic Challenge Bowl Cup. There are three levels of sponsorship available for the Northern Region Golf Day. The different levels (Gold, Silver, Bronze) will give your company brand recognition throughout the various EIC mediums, sponsorship of certain holes and prizes and provide a high level of brand visibility on the day of the event. For further information please contact Jennifer Hole.
Forthcoming Events
Regional Showcase Olefins 6 Plant Project Tuesday 21 April 2015 North East venue to be confirmed SABIC UK is investing a significant sum of money to convert its world class Olefins 6 plant. This massive, 223 acre cracker plant located on Teesside, is to be upgraded so that it can take US shale gas, making it one of the most competitive facilities of its kind in Europe. This will secure a long term future for the business, along with creating and safeguarding many hundreds of construction jobs. This showcase event will feature a panel of speakers from SABIC, Samsung and Amec Foster Wheeler who are key organisations involved in this upgrade. As a delegate you will learn about the various elements of the project, the timescales of the development and also where the opportunities lie for you to get involved. Please register your interest with Jennifer Hole.
Sector Showcase Offshore Wind Showcase May 2015 Yorkshire/Humber venue to be confirmed
EIC at All-Energy 2015 Wednesday 6 and Thursday 7 May 2015 SECC, Glasgow Taking place on 6-7 May in Glasgow, All-Energy is the meeting place for decision makers from the offshore wind and operations and maintenance communities. The show provides an unrivalled platform for the industry’s business professionals, academia, finance, community and government to drive innovation, business and investment opportunities across the sectors; buy and sell products and services; and engage in outstanding networking events. A number of EIC members will be exhibiting at the show including Aggreko, Capula, Schneider Electric and Weir Power and Industrial to name a few. A full list of exhibitors and the latest floor plan showing stand availability can be viewed at: www.all-energy.co.uk The EIC will have an exhibition stand where we will be on hand to offer advice on the many ways that the organisation can help with business development activities. Representatives from EIC Membership, Events and our Power, Nuclear & Renewables team will be on the stand to answer questions.
Further to a number of recent announcements about the offshore wind farm developments off the east coast of the UK, the EIC is looking to showcase this sector with a panel of speakers from the key organisations involved in these projects. Including the areas of Teesside, Yorkshire and Humberside, it is our aim to engage representatives from organisations involved in the projects to address members. They will cover numerous topics including highlighting how the projects are developing, the estimated timescales, the requirements and opportunities in the future, along with helping the supply chain to transfer skills and expertise gained from the oil and gas industry into this growing sector. Please register your interest with Jennifer Hole. Contact: Charlotte Hust, UK Regional Manager (Southern) Tel +44 (0)20 7091 8624 Email charlotte.hust@the-eic.com Helen Doona, UK Regional Manager (Northern) Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com
Corporate Entertainment Northern Region Golf Day Thursday 21 May 2015 MacDonald Portal Hotel, Cheshire The Championship Course, opened in 1990, was named Golf Course of the Year in 1995, and is the star of Portal’s golfing complex. Designer Donald Steel has created a challenge that is characterised by unique and distinctive holes; expansive water hazards and cascading waterfalls are among the tests. The signature is typical of Steel’s magnificent 7,037 yard layout – the long third tips the scales at 607 yards, with a green guarded by a beautiful lake.
Jennifer Hole, UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com Pamela Nicholson, Office & Events Manager (Scotland) Tel +44 (0)1224 628 251 Email pamela.nicholson@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
@TheEICEnergy
13
April 2015
EIC National Events
Responding to a Different Market I recently embarked on my first overseas trip to the Middle East in preparation for EIC Connect Middle East which opens at 8.30am on 2 June 2015, at the St Regis Hotel on Saadiyat Island, Abu Dhabi.
EIC Connect Middle East in 2015 will bring these messages to life through the conference programme, information sessions, briefings, one-2-one’s, a high quality exhibition (which is now sold out) and dedicated networking opportunities for all in what can only be described as an inspiring location.
This will be the fourth EIC Connect event delivered in the Middle East, but the first one that has received the backing and support of a dedicated Advisory Group. Chaired by Nick Cochrane-Dyet, Special Advisor to the Chief Representative at BP Oil International, the Advisory Group comprises the following individuals: Nicholas Cochrane-Dyet Andrew Vaughan Naser Al-Marar Obaid Al Hajri Hugh Fraser Jan Ward David Hewitt Jens Winkelmann John Jeffers Douglas Caskie Edmund O’Sulivan Hisham Alami Tony Chebat Adrian Morgan Bouchra ElHilali Phil Emsley Robyn Smith Mike Colwill
Delegate places are priced at £179 for EIC members and are bookable online. If you are interested in knowing more, do not hesitate and book your place today at: www.the-eic.com/eicconnect/middleeast/attend
BP Oil International Shell Exploration & Production ADNOC Al Hosn Gas Andrews Kurth Corrotherm International Ltd Endress+Hauser Ltd Endress+Hauser Ltd Kentz Group Masdar MEED Mott MacDonald Ltd Petrofac Engineering Ltd Pipe Supports Ltd Shell Exploration & Production Technip E&C Ltd UK Trade & Investment (UKTI) Xodus UK Ltd
Companies are advised to send at least two delegates to allow them to share the briefings, conference sessions, meet exhibitors, network with delegates and arrange one-2-one appointments across the day. For more information please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com Visit www.the-eic.com/EICConnect
At a very lively meeting in BP’s Abu Dhabi office in March the Group focussed on the agenda and speaker line up for the event. What emerged was a very strong message about the opportunities that exist in the Middle East for the supply chain, regardless of the fluctuating oil prices. The Advisory Group also stressed the increasing importance of local content. In order to be successful, companies have to understand and research the market they are entering, as well as meeting all of the registration and pre-qualification requirements of working in this fabulous arena. www.the-eic.com
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14
April 2015
EIC National Events
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April 2015 #EICConnect
EIC Middle East News
Middle East News
Office News
Looking ahead, May promises to be a good month when we have the follow-up delegation to Saudi Arabia and Bahrain from the Saudi-British Energy week back in February plus we will be hosting a business presentation featuring SNC Lavalin and Kentz which should prove very interesting and finally, we will be hosting two very popular training events, the Fundamentals of Oil & Gas on 5 May followed by the Fundamentals of Refining & Petrochemicals on 6 May. Both of these provide a valuable insight into their respective sectors and have always proved very popular with our local membership. Full details can be taken from the training section of our website. There is one final bit of local news that we think is worth mentioning. The world’s first solar powered round the world flight has taken off from Abu Dhabi and has been heavily featured across the world’s media. Full details plus the latest position can be found at the website www. solarimpulse.com/en. Should this flight prove successful, then there is no telling where the application of renewable energy might end up. Lastly, we were pleased to welcome the following members to our office over the last month. Jon Willis passed by while he was here to attend Middle East Electricity which was where we caught up with an old friend, Tom Roberts who has recently taken up a new position with Ducab. Also present at the show was Stephen Morris and Alan Preece from EA Technology. Meanwhile, we were pleased to welcome new members Jonathan Lane and his colleague Ala Al-Hihi from Arrow Solutions who took time out to visit the office during their regional tour. Last but not least, it was a pleasure to meet Ian Godden, Chairman of KBC Advanced Technologies at the Dubai Petroleum Club. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com
Due to editorial deadlines, this has been the first opportunity for us to report on the results of our Golf Day which was a huge success. We hosted 26 teams of four for the playing side of the day and have another new name to engrave on the trophy. Our congratulations go to the Hydrasun team who came out the overall winners closely followed by a team from Navigant who were playing as guests of DLA Piper, while Air Energie managed to occupy the coveted third place. In the evening at the prize giving ceremony, there was a vast array of prizes to be handed out via a prize draw and a date of 18 February has been booked for the 2016 event. Sincere thanks must go to the prime tournament sponsors, Wood Group PSN plus other contributors to the success of the event including Dmg Events, William Hare, Rexel IPG and Sulzer Pumps who kindly donated course prizes and refreshments on the day. Following the Golf Tournament, we delivered the delegation to Mozambique and South Africa where we were able to hear at first hand details of developments in these two exciting areas and we would recommend attending the Africa Oil & Gas week scheduled for October where there will be an opportunity to get a complete overview of all the developments taking place across the African continent. Last month saw us hosting a lunch for Amec Foster Wheeler where over 50 delegates were able to hear about the drivers behind the formation of the new company, how it operates and what its plans are for the future. Later the same week, the advisory group for EIC Connect met up and as a result we now have a clear path towards delivering what will be an excellent event on 2 June. All exhibition space has been sold and we urge you to sign up early in order to avoid disappointment as the capacity of the venue has some health and safety limitations. Full details can be taken from the event website.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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16
April 2015
EIC Asia Pacific News
Asia Pacific News
XPD8 Solutions Murray Carne, the Financial Director of XPD8 Solutions visited EIC APAC for a discussion on business opportunities and the strategies they should employ with regards to developing business in the region.
Office News
We have had visits from the following member companies to our offices here in Kuala Lumpur:
Forthcoming Events Industry Overview
Amarinth Limited We have assisted Amarinth in the following areas: providing them with the use of our offices for them to conduct interviews of candidates; recommended three recruitment companies, two EIC members and one local company based in KL, for their consideration in their efforts to hire a local sales manager; recommended two legal firms to assist Amarinth in drafting local employment contracts; secured appointments with Technip Malaysia and Genesis to obtain the latest updates on projects in Malaysia and for Amarinth to be registered as vendor to Technip; secured appointments with three local companies as potential local partner or distributor; and secured appointments with a local RSC operator, Uzma Oil. We are happy to note that Amarinth intends to take up one of our offices as a base for their APAC activities, commencing in June 2015.
Fundamentals of Refining & Petrochemicals Tuesday 14 April 2015 EIC Kuala Lumpur
Industry Overview Fundamentals of Power Wednesday 20 May 2015 EIC Kuala Lumpur
Industry Overview
Fundamentals of Downstream Wednesday 27 May 2015 EIC Kuala Lumpur If you need any assistance or advice in the region or for more information about upcoming events, please contact: Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com
Elfab Ltd Tom Barret, the Business Development Director for APAC at Elfab Ltd, contacted our office to request and receive training on EICDataStream for him and his staff from our Regional Analyst.
Regional Comment
PetroChina approval for North Klalin gas development PetroChina has won approval from SKK Migas to develop the North Klalin gas condensate field. The project, on the Kepala Burung (Basin) production sharing contract, involves four new development wells and flowlines that will tie them into existing production facilities on the Basin block. The Basin PSC has proven and probable reserves of 17.2 million barrels of oil equivalent, while 2C resources have been independently certified at 22.8 million boe.
Genesis Harith Abu Hassan of Genesis Oil & Gas Consultants visited our offices on 6 February to find out more about the opportunities offered by the EIC and was given a briefing on our products and services. Further to this meeting, we are now in close contact with Harith on the latest updates on projects in Malaysia. Permasense Dr Peter Collins, Chief Executive Officer, Permasense, visited our offices on 11 March to discuss renting one of our offices. He has also asked us to recommend a reputable accounting and legal firm. Dr Collins intends to discuss his business expansion with me on his next visit.
Contract delays for Bunga Pakma and Kinabalu Deep Talisman Energy has delayed making contract awards for platform requirements for the Bunga Pakma and Kinabalu Deep projects. SapuraKencana, PTSC and MMHE are the remaining bidders. Installation and first production from the Bunga Pakma platform will now take place in 2016. The Kinabalu Deep WHP tender is still being reviewed and no bid validity has been extended yet.
Score Asia Geoff Miles, Managing Director, Score Asia, visited our offices on 27 February 2015 and was given a demonstration of EICDataStream. Geoff will now nominate one of his staff as nominated user and will be in close contact with EIC APAC.
MOSB enters MoU for Myanmar supply base Myanmar Offshore Supply Base has signed a MoU with the Myanmar state government setting out the terms for the construction of the supply base in Mawlamyine. The MoU covers construction, management and operation of the new port facility which will be built about 300km south east of Yangon. The port facility is aimed at supporting oil and gas players operating in Myanmar waters including servicing of FPSO vessels.
SNC-Lavalin Fabrice Etienvre, VP Government Relations and Global Operations, and Tarvis Smith, SNC-Lavalin’s Country Head for Malaysia, visited our offices on 13 February 2015. We presented a demonstration of the capabilities of EICDataStream and planned events for 2015.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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17
April 2015
EIC North and Central America News
North and Central America News Office News
Regional Comment
Second phase of Round One begins in Mexico Nine shallow-water oil and gas development blocks in the Gulf of Mexico will be put up for auction via five production-sharing contracts, with the hope of attracting US$4.5bn in investment and increasing production by 124,000 bbl/d. The fields are off the coasts of Tabasco and Campeche, areas that do not require exploration, and contain estimated reserves of 671 Mboe. The first phase, announced in December, included 14 shallowwater exploration fields which have attracted interest from dozens of companies. It is expected that the contracts will be awarded later this year. The decline in oil prices has resulted in the postponement of auctioning of some unconventional prospects, such as shale, until Round Two.
While the oil price remains low Houston remains optimistic, with the regions’ developers, operators and contractors using this as a time to streamline businesses, review processes and standardise operations. Project teams maintain that plenty of opportunities still remain for companies in the region and that efforts should be focussed on the execution of pre-planned capacity developments, much needed storage projects and midstream LNG expansions. In the downstream sector, the USA maintains a cost advantage over other countries and so the expansion of refineries, petrochemical complexes and chemical plants will continue, bringing with it prospects for EIC members in the region. Via the EICLaunchPad service, the EIC office in Houston acts as an incubator for companies new to the market. We are delighted that members without our offices continue to win business and expand; April will see PJ Valves, a British family-owned specialist valve supply company expand operations in the region by doubling their office space, and will see Batt Cables, a UK cable supplier and distributor, open their own warehousing space in Houston for the first time. For further details on the services available to EIC members from our Houston office, or to arrange EICDataStream training to ensure that your team is able to access as much project information for business development purposes as possible, please do not hesitate to contact us. The 2015 calendar of EIC Business Presentations and Training will be launched for North & Central America shortly. Business Presentations are supply chain workshops run with the aim of helping EIC members identify global business opportunities and to facilitate them in making relevant contacts with people, companies and organisations that can help them to develop their business. The EIC Training programme consists of workshops and courses developed by engineers and industry experts, whose years of practical industry experience have given them the knowledge and insight to deliver the most relevant training for EIC members. To ensure that you are made aware of these events and training opportunities, please ensure that you are signed up for relevant notifications with the EIC office in Houston by contacting Richelyn Reed: richelyn.reed@the-eic.com
BOEM planning western GoM lease sale More than 21 million acres offshore Texas will be auctioned for oil and gas exploration and development in August. The lease sale will include all available unleased areas in the Western Gulf of Mexico Planning Area. Sale 246 will include approximately 4,000 blocks located from nine to 250 miles offshore, in water depths ranging from 16 to more than 10,975ft. The Bureau of Ocean Energy Management estimates the proposed lease sale could result in the production of 116 to 200 MMbbl of oil and 538 to 938 Bcf of natural gas. Bahamian Petroleum Act introduced The new legislative package was introduced to the Bahamian Parliament’s House of Assembly and is expected to become law in the near future. The act and a suite of associated regulations will guide and govern responsible and safe hydrocarbon exploration as an integral part of the National Energy Policy. Bahamas Petroleum Company (BPC) expects the legislative clarity will help it find partners for its first deepwater drilling programme. US Southeast has US$10bn in project starts The business-friendly climate of the US Southeast is making it one of the nation’s strongest areas for investment – not just for manufacturing, but also for energy-related industries to support the growth. Second-quarter construction kickoffs in the region total US$10.06 billion in investment value, with two-thirds of the amount attributed to oil and gas, power, and industrial manufacturing. The Southeast region includes Alabama, Florida, Georgia, Mississippi, Tennessee, Puerto Rico, and the Virgin Islands.
Forthcoming Event
EICDataStream Overview Wednesday 22 April 2015 EIC Houston A free session for all EIC members who are new to using EICDataStream or need refreshing. Taught by our regional analysts who are available to answer any questions you may have regarding the database and project tracking.
For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact: Email houston@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
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18
April 2015
EIC South America News
South America News Office News
Besides the fall in oil prices, the oil and gas sector in Brazil finds itself in a crisis of its own flagged by a corruption scandal involving Petrobras and some of the main contractors. The industry is suffering with the slowdown of projects, mainly caused because of difficulties obtaining financing. Although it’s too soon to make any assumptions, some companies are managing to overcome this crisis by targeting other areas, such as maintenance or even other sectors while waiting for the dust to settle. During April, I will be visiting the PECOM exhibition in Villahermosa, Mexico. If you need support in taking the first step into markets in the Americas, or improving the way your business is being done, feel free to arrange a meeting during OTC in Houston, where I’ll also be present or contact the EIC in Rio de Janeiro or Houston. Two exhibitions are scheduled to take place in the state of Rio de Janeiro; Brasil Offshore in June in Macaé and OTC Brasil in late October. The UK pavilion is being run by the EIC and stands are still available. Save the date for our next Business Presentation in Rio, with GE O&G. In Rio, the EIC organised its first in-house training for FPSOs. If your local team needs training, please don’t hesitate to contact us to help you develop dedicated workshops. Save the dates for our events/workshops in Rio de Janeiro:
Petrobras FPSO P-34
Photo Copyright 2015 Petrobras
Regional Comment
Petrobras announces US$13.7bn divestment plan The company is preparing a divestment programme for some of its assets which is expected to raise US$13.7 billion by the end of 2016. The plan will target the E&P (30%), Downstream (30%) and Gas & Power (40%) sectors, including assets in Brazil and abroad. In the E&P area, Petrobras is expected to opt for a full or partial farm-out of exploration blocks as well as small and medium fields under production in the Campos Basin such as Cherne, Espadarte, Namorado, Marimbá and Vermelho. The company will also sell production units such as the P-34 FPSO, which is currently moored at the Renave shipyard in Niteroi. In the Downstream and Gas & Power areas, the company will sell ethanol, biodiesel and gas-fired power plants and reduce its participation in petrochemical gas distribution companies.
Forthcoming Events Industry Overview
Next Brazil round in 2H 2015 The Mines and Energy Ministry has announced that Brazil’s next bidding round for exploration blocks will take place in the second half of the year. Areas to be included in the 13th round are still to be defined but government sources indicate that about 280-300 blocks will be put on offer across the country, both onshore and offshore, in shallow and deep waters. Although no pre-salt areas will be offered, the government believes that the offshore Campos, Espírito Santo and Sergipe-Alagoas Basins offer great potential for hydrocarbon discoveries. Petrobras, Brazil’s main player in the O&G sector, is expected to take a minor role in the bidding round as it is currently in the process of reducing investment in exploration activities.
Fundamentals of Subsea Saturday 11 April 2015 EIC Rio de Janeiro
HSE Training
Understanding HSE Legislation for the O&G Supply Chain in Brazil Wednesday 15 April 2015 EIC Rio de Janeiro Business Presentation Opportunities with GE O&G Tuesday 28 April 2015 EIC Rio de Janeiro
YPF to maintain US$6bn investment plan Argentina’s national oil company YPF is expected to stick to its US$6bn investment plan for this year, according to a recent earnings call. YPF is insulated from the fluctuations of oil prices, as the local Medanito and Escalante crudes have their price fixed by the government (they stand at US$77 and US$63 respectively). The company will focus on the Vaca Muerta shale formation, with plans to extend horizontal wells in the Loma Campana field operated in partnership with Chevron.
Industry Overview
Fundamentals of Oil & Gas Thursday 14 May 2015 EIC Rio de Janeiro If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas 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
@TheEICEnergy
19
April 2015
If you would like more information or are interested in becoming an EIC member, please contact: 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 EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 972 Email teesside@the-eic.com 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 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 EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com 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 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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