EIC Monthly News August 2014
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The EIC Chief Executive
The Chief Executive Welcome to the August edition of the EIC Monthly News. It’s hard to believe that we are already over halfway through 2014 and only a few months away from the EIC’s National Dinner and EIC Connect Oil & Gas. To mark the tenth EIC Connect since 2009, the theme of the EIC Connect Oil & Gas conference in 2014 will be ‘Global Oil & Gas: A 10-year Look Ahead for the UK Supply Chain’. Lord Livingston, Minister of State for Trade & Investment will officially open the plenary session and give an overarching update on opportunities for SMEs, along with Matthias Bichsel, Executive Director, Shell Upstream and Robin Watson, Managing Director of Wood Group PSN. EIC Connect Oil & Gas 2014 will follow its successfully established format, with supply chain presentations running alongside a two-day conference and exhibition. The highly-anticipated programme of supply chain briefings will be delivered by leading oil and gas companies who will inform delegates about future markets, upcoming projects and procurement strategies. Speaker companies already confirmed include Shell, ENI, CB&I, Subsea 7, Technip and Bechtel. Major companies from Russia, Brazil, Angola and Mozambique will also be present to unveil the requirements on key high value projects. The conference sessions will cover specific emerging markets across the upstream, midstream and downstream sectors, with each session focusing on areas of most interest to UK companies. These will include the main challenges and how they influence the business decisions of the bigger companies, where the new opportunities are globally, which emerging markets should be a focus, why new technology is so important and when specific products and services will be needed.
Contents The Chief Executive
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Sector Analysis
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Training Services
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New EIC Members
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Member News
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Events Diary
10
Overseas Delegations
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National Events
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UK News
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Middle East News
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Asia Pacific News
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North America News
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South America News
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Delegate bookings for EIC Connect are now open with early bird prices until 1 September. By utilising our new online booking system, delegates will also be able to pre-book one-2-one meetings online in the autumn. To book and for more information please visit: www.the-eic.com/EICConnect/OilGas. We look forward to seeing you in Manchester. The EIC is also continuing to provide business intelligence through the recently launched Insight Reports for members. The second Upstream report of the year has been launched, providing a comparison of global contracting activity between the 2012/13 and 2013/14 financial years, along with a market focus on the Norwegian upstream sector to look at the new challenges and opportunities that the industry faces in the country. If you are not receiving the Insight Reports and would like to be added to the mailing list please contact Harriet Fray: harriet.fray@the-eic.com Following the recent Cabinet Office reshuffle, Michael Fallon has now moved from the position of Energy Minister to Defence Secretary and we welcome Matt Hancock as the new Minister of Energy. Mr Hancock will have wide ranging responsibilities which will include the North Sea fiscal regime, overseeing the shale and oil licensing round, renewable energy deployment and nuclear policy, as we wait for state aid clearance for the planned Hinckley Point plant. I attended the CCSA parliamentary reception at the House of Lords last month, where I met many of the guests and listened to the key address from Energy Secretary Ed Davey MP. This was timely given the news that the White Rose CCS project in North Yorkshire has secured European NER300 funding. The event was held on the same day of the launch of the Opposition’s paper on CCS. In terms of renewables, the Crown Estate’s announcement that Round 3 offshore wind projects are progressing to the next stage of development with the introduction of project specific contractual agreements rather than zone development agreements has been an important development for the sector. If you would like any further information on any of the above or require any information or assistance with maximising your membership please don’t hesitate to contact us. Claire Miller, Chief Executive
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August 2014
EIC Sector Analysis
Sector Analysis Vaca Muerta and the revival of Argentina’s oil and gas sector It is not completely wrong to suggest that Argentina has a penchant for nostalgia. Following the expropriation of Repsol’s 51% interest in YPF, President Cristina Kirchner remarked in one of her speeches that her late husband Néstor Kirchner had always wanted to return the once powerful national oil company to state ownership. The discovery of massive shale oil and gas resources in the Vaca Muerta formation, which has the potential to revert Argentina’s worsening energy deficit, was an opportunity not to be missed and YPF was swiftly nationalised. Kirchner’s hope is now fulfilled, but can the Vaca Muerta shale restore prestige to Argentina’s oil and gas sector? The Vaca Muerta shale formation is located in the Neuquén basin, in the foothills of the Andes, with an approximate extension of 30,000 sq km. The area is situated in a depth of 2,500 metres and its thickness varies from 100 to 400 metres. Vaca Muerta’s first major discovery was made in May 2011, when Repsol YPF announced that it had found 150 million barrels of oil. Six months later, another discovery – Repsol’s biggest find at the time – was announced in the Loma la Lata Norte area: 927 million barrels of oil equivalent, of which 741 million were 40-45 degree API oil. Vaca Muerta was considered as a world class shale play by the US Energy Information Administration (EIA), which in May 2013 pegged the formation’s shale gas resources at 308 trillion cubic feet. This is more than a third of Argentina’s reserves, which are estimated at 802 Tcf by the EIA. Since its nationalisation in 2012, YPF has been given a mandate to develop Vaca Muerta’s resources. The country’s largest producer, the company was responsible for more than 50 development wells in Vaca Muerta in the first quarter of the year. YPF’s strategy, however, has focused on attracting investment and expertise from foreign players. The most notable investment in Vaca Muerta so far has been championed by a joint-venture formed by Chevron and YPF. The two companies sealed a US$1.24 billion deal in July 2013 for the drilling of 132 wells at the Loma Campana area in Neuquén province. After a successful campaign, the two companies announced in April that they would invest an additional US$1.6 billion to drill 170 wells. Other players involved in exploration activities in Vaca Muerta include major oil companies such as Shell, ExxonMobil and Petrobras; and smaller players including Madalena Energy, Azabache Energy and Wintershall, among others. Activity in the sector has also prompted the development of the local supply chain. Last March, Drillmec from Italy signed an agreement with local services provider Consulpet for the manufacture of drilling and workover rigs in Mendoza. National Oilwell Varco (NOV) announced in June a similar deal with local company QM for the manufacture of derricks in Mar del Plata. www.the-eic.com
© Repsol
The successful development of Vaca Muerta is an enticing prospect which depends not only on investors but also on the government. Many argue that Argentina’s decision to control gas prices after an economic crisis that hit the country in the early 2000s is largely to blame for the lack of investment in the country’s oil and gas sector. Reduced investment led to dwindling production, which effectively transformed Argentina from a gas exporter into an LNG importer. According to Ricardo Falabella, a local energy consultant, increased gas production could help save more than US$5.7 billion currently spent every year on costly LNG shipments.
As the US Deputy Secretary of Energy Daniel Poneman pointed out during his visit to Neuquén earlier this year, a transparent, predictable and stable regime is fundamental for the attraction of investment to the country’s oil and gas sector. The settlement of US$5 billion with Repsol over the expropriation of YPF and Argentina’s recent rapprochement with international financial markets after a debt repayment deal with the Paris Club were regarded as great achievements by foreign investors. According to estimates by the World Energy Council (WEC), Argentina will require an investment of US$200 billion by 2030 in order to restore its energy self-sufficiency, of which US$140 billion will have to be invested in shale resources. It may well be possible, after all, that Vaca Muerta will be able to spark a new age of wealth and prosperity in Argentina’s oil and gas sector. Pietro Ferreira Regional Analyst (South America) Tel +55 21 3265 7403 Email pietro.ferreira@the-eic.com 3
August 2014
EIC Training Services
Training Services Industry Overview
Industry Overview
Industry Overview
HSE Training New Location
Management Course
Negotiation Skills Tuesday 9 September 2014 Made to Measure Training, EIC London This course is suitable for anyone from director and senior management level through to less experienced staff wishing to improve their negotiation skills. The skills learned will be of benefit to both technical and commercial disciplines not only when dealing with clients and suppliers but also when dealing with colleagues or employees. The course is designed to improve negotiation skills through preparation, planning, signals and proposals and bargaining.
Management Course New Location Presentation Skills Thursday 11 September 2014 Made to Measure Training, Stockton-on-Tees This course is suitable for anyone who is required to give presentations and would like to deliver them with impact. On completion of the course, attendees will be able to analyse an audience and tailor messages to aid recall, use memory techniques to look and sound professional and engage the audience and be able to make a plan to maximise the potential of the presentation and delivery style.
Technical Workshop New Course Introduction to Offshore Wind Energy Wednesday 17 September 2014 DNV GL, EIC London This one-day workshop has a new instructor. It is suitable for industry professionals who wish to acquire a comprehensive overview of the subject and to have the latest technology and issues clearly explained. Offshore wind resource and energy yield, wind turbine and support structure technology, installation logistics and operational activities are covered, together with overviews of the development process and contracting strategies.
Technical Workshop New Course Introduction to Tier 4i/Stage IIIB Engine Systems Thursday 18 September 2014 Finning UK, Staffordshire Tier 4 will become mandatory for the oil and gas sector and this workshop aims to provide delegates with the necessary overview of the emissions’ regulations and EU legislation as well as familiarisation with the Cat engine technology used by Finning UK to ensure compliance. A demonstration/workshop overview of a Cat Tier 4 engine is also included to enable delegates to familiarise themselves with the technology.
Fundamentals of Nuclear Tuesday 5 August 2014 EIC London This course has been designed for industry practitioners who work in a variety of sectors who want to begin to understand the nuclear sector and who are thinking of perhaps exploring the potential opportunities that exist for them within this sector. The course is intended to be an introduction to those who have not previously worked in or for the nuclear industry but perhaps would like to become involved with the ‘nuclear renaissance’ that is being experienced around the world.
Fundamentals of LNG Wednesday 6 August 2014 EIC London The course is designed for a wide range of attendees from both technical and non-technical backgrounds. It will be suitable for suppliers to the LNG industry to give them a broad knowledge of the processes involved and the technical/commercial issues affecting the business. It is also suitable for managers with specific knowledge of parts of the LNG business to gain a broader understanding of the overall LNG value chain and new entrants to the LNG business for an understanding of scope and size of the business.
Fundamentals of Oil & Gas Thursday 7 August 2014 EIC London This course is suitable for graduates and other newcomers to the industry; people from technical, non-technical and commercial backgrounds who have limited experience and wish to improve their familiarity with some of the processes involved. The course takes the form of five modules to introduce the participants to the search for oil and gas, its extraction, processing, transportation and refining.
Introduction to the Pressure Equipment Directive 97/23/EC Thursday 4 September 2014 Nuvia Ltd, EIC Aberdeen This workshop will discuss the scope of the PED and responsibilities, essential safety requirements, activities and responsibilities of the manufacturer and conformity assessment bodies, as well as conformity assessment modules. The workshop will be of benefit to those with responsibility for compliance with UK and European legislation for new items and assemblies of pressure equipment.
If you would like to arrange an ‘in-house’ course, or are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com
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August 2014
New EIC Members
New EIC Members
New Global Member
Portwest Ltd
Fields End Business Park Thurnscoe S63 0JF Tel +44 (0)1709 894 575 Fax +44 (0)1709 880 830 Email richard@portwest.co.uk Web www.portwest.com The Nominated Representative is Mr Richard Jones, Operations and Marketing Manager. Portwest designs and manufactures an extensive range of workwear, flame resistant clothing, safety footwear and PPE products. It operates five ultra modern warehouses holding more than 7 million units of immediately available stock. Established in 1904, products are of guaranteed quality, are extensively tested and carry full CE markings from independent world-renowned testing institutions. Portwest is a flame resistant specialist, and products are often nominated on sites around the world. Key markets include the oil and gas, petrochemical and mining industries. Learn about 214 new products and obtain the 2014 brochure from the Portwest website.
New Global Member
MCT Brattberg
Carrs Industrial Estate Commerce Street Rossendale Lancashire BB4 5JT Tel +44 (0)1706 244 890 Fax +44 (0)1706 244 891 Email j.clark@mctbrattberg.co.uk Web www.mctbrattberg.com The Nominated Representative is Mr John Clark, Sales Manager. MCT Brattberg, formerly known as Lycab, manufactures certified cable and pipe penetration seals, commonly known as ‘transits’. It is the inventor of the modern day Multi Cable Transit (MCT) system. Its seals give certified protection against fire, gas, water, explosion, grounding, EMI/RFI, dust and vibration. MCT Brattberg is certified and approved by world-wide classification societies and with a clear ‘safety’ perspective it supplies products world-wide which can be quickly and safely installed, protecting staff and ensuring continuous operations. MCT Brattberg offers both fixed size and adjustable module blocks, with sizing clearly identified to reduce risk. MCT Brattberg adjustable blocks have sleeves with secure mechanical anchorage to avoid slippage. The system is quickly designed, easily installed and will replicate test performances when specified and installed correctly. MCT Brattberg can design and fabricate bespoke solutions for custom applications such as substations and array cables and also manufactures a wide range of subsea applications including J-tube seals. The WinRG Plan design software is available on request and installation training is offered as necessary.
New Primary Member
VAAS Europe Ltd
Unit 5a, Cottage Lane Industrial Estate Broughton Ashley, Leicestershire LE9 6TU Tel +44 (0)1455 286 191 Fax +44 (0)1455 286 897 Email petermcentee@vaasvalve.com Web www.vaaseurope.eu The Nominated Representative is Mr Peter McEntee, Sales & Marketing Director. VAAS Group was founded in 1980 with the philosophy of providing users with the optimum solution to their valve needs. This has resulted in a loyal customer base for all the products VAAS manufacturers in over 35 countries across the world. VAAS designs and manufactures a comprehensive range of knife gate valves (uni-directional, bi-directional, square, rectangular, coal mill isolation) available in a variety of materials and seat designs. Its expertise means that VAAS is present in markets where valve performance is crucial, for example powder handling, pulp and paper plants, slurry handling in mining, thermal power plants and chemical processing and high temperature services in carbon black plants. All products are 100% tested prior to dispatch and are provided with unique identification for complete traceability in accordance with a detailed quality assurance plan.
New Primary Member
OSBIT Power Ltd
Broomhaugh House Riding Mill Northumberland NE44 6EG Tel +44 (0)1434 682 505 Email ben.webster@osbitpower.com Web www.osbitpower.com The Nominated Representative is Mr Ben Wilkinson, Sales & Marketing Manager. OSBIT Power (OP) specialises in the supply of tailored equipment and engineering services which enable the execution of challenging offshore projects. OP clients are typically operators, installation contractors and equipment OEMs across the offshore energy sector. OP’s broad expertise ranges from the design and manufacture of subsea vehicles and ship based equipment for pipelay and trenching operations, to supply of safe and reliable equipment for handling materials, people and vehicles offshore. OP excels at rapidly translating client requirements into viable concepts and progressing these into elegant and practical, installed and commissioned systems, On Spec, to Budget and In Time (OSBIT). OP services encompass all stages of equipment development, design, manufacture and support. Above all it specialises in delivering turnkey equipment packages from concept to commissioned system.
www.the-eic.com
New Primary Member
Vega Controls Ltd
Kendal House, Victoria Way Burgess Hill, West Sussex RH15 9NF Tel +44 (0)1444 870 055 Fax +44 (0)1444 870 080 Email doug.anderson@vega.com Web www.vegacontrols.co.uk The Nominated Representative is Mr Doug Anderson, Marketing Manager. VEGA is a supplier to the full spectrum of the energy industries, in some of the most important areas of process control: level measurement, point level detection and pressure instrumentation systems. It is a manufacturer with the direct expertise to help you achieve the safe, reliable, measurement control and switching solutions you need to optimise your process. To underwrite its quality, all VEGA products have a three year warranty as standard.
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August 2014
EIC Member News
Member News
The new headquarters on Newhall Road in Sheffield comprises two linked buildings, a dedicated 25,000 sq ft industrial unit and a modern two storey office building of 12,000 sq ft. Abtech will also retain its existing production facilities in Sanderson Street. This move greatly expands Abtech’s global capability which now includes production facilities and offices in Cumbernauld, Scotland; Houston, Texas; Bünde, Germany; Singapore; Ridderkerk, Netherlands and Busan, Korea. Mike Lancashire, Managing Director, Abtech, said: “We had been looking for the right property for a couple of years now, having outgrown current production capacity and had the need to lease a number of additional units within the area. We are delighted to have found a new facility which enables us to double our UK production capability. Our new offices also confirm our commitment to a presence in Sheffield and will help to significantly grow our business. In particular, our new facilities will allow us to focus on developing a new range of lighting solutions. This has been developed in consultation with engineering leaders throughout the oil and gas industry.” Newhall Road will also be home to Abtech’s sister company Abcon, a control systems business providing tailored industrial vision system solutions to leading UK manufacturers. A new purpose built training facility will be located at the new offices to provide dedicated support for the latest vision system technologies. For more information please visit: www.abtech.eu
A North Sea oil and gas operator has upgraded the flare gas metering systems on three of its platforms from previous versions of the Fluenta range of ultrasonic meters to the current generation. As the exclusive UK channel partner for Fluenta AS, process control specialists ABLE Instruments & Controls Ltd supplied three Model FGM160 II’s to replace the existing Model FGM100 and FGM-130’s. The acclaimed FGM160-II has been developed to specifically measure flare gas in pipes where pressure, velocity and large pipe diameters represent a real challenge. The non-intrusive design of the FGM160-II does not penetrate the flow stream, providing a longer transmit path for improved turn down. Furthermore, the FGM-160 does not obstruct the gas flow and therefore transducers are not exposed to potential damage from high velocity particles. This reduces maintenance costs and increases life expectancy. While making maximum use of the existing infrastructure such as transducer and temperature/pressure transmitter mountings, it was ABLE’s recommendation that the new installation incorporate double block and bleed (DB & B) valves for increased safety. The DB & B valves achieve both primary and process isolation with the means to safely dispose of unwanted gas and liquid trapped within the assembly. ABLE’s scope of supply also included Fluenta’s SOFTFLOW Basic system, which is designed to control and monitor Fluenta flare gas metering systems. This user-friendly solution improves the way critical information is acquired and combined by using advanced graphs and customisable alarm features. SOFTFLOW’s web browser based interface facilitates constant remote control and diagnosis of multiple FGM systems and stores historical records of measured and calculated data. If you would like further information please contact Dave Quelch, ABLE Instruments & Controls Limited: Tel +44 (0)118 931 1188 Email info@able.co.uk www.able.co.uk
Jan Ward has won the title of ‘Global Director of the Year’ at the London and South East Director of the Year Awards, held in June at the Institute of Directors in Pall Mall, London. As a qualified engineer and a person who refuses to recognise barriers, Jan founded Corrotherm International Ltd in 1992 and started supplying high grade metals to the oil, gas and desalination markets. The gala dinner and awards ceremony is fully established as one of the UK’s leading awards, giving guests a chance to hear from other business leaders from across London and the South East. Jan Ward said: “I’m honoured to win Global Director and really appreciate the recognition. I’d hope this award will make more young people consider engineering as a career. If winning this award helps to introduce the idea to more young students it would be great.” Corrotherm now has more international coverage than any of its European competitors, running its own offices in the UK, USA, Australia, Dubai, Abu Dhabi, Saudi Arabia, South Africa, India and Korea. To find out more about Jan Ward and Corrotherm’s global success please visit: www.corrotherm.co.uk
Abtech Limited, a long standing EIC member and manufacturer of hazardous area electrical enclosures and lighting systems, has acquired a new headquarters facility in Sheffield. Initially leading the way in the supply of stainless steel enclosures to the then fledgling UK North Sea oil industry, Abtech expanded overseas to become a global supplier of hazardous area enclosures and specialist high voltage solutions.
To submit articles to the Member News section, please send no more than 300 words, and a good quality photograph (minimum 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 September for the October issue. www.the-eic.com
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August 2014
EIC Member News By creating this forum, operators will for the first time have a system to provide (anonymous) data on personnel transfer activity which will be used develop good quality risk data which will be made available to the industry. To start this, DNV GL has analysed available data on global marine transfer accidents collated by Reflex Marine. This estimated that 5.15 million passengers were transferred from vessel to installation by crane in 2012. From 2009 to 2013, there were five fatal accidents, meaning the average rate is approximately one fatal accident per year worldwide, or a one in five million chance of fatality in each transfer. This compares to one in 400,000 chance of fatality if transferred by helicopter, 11 times higher than crane transfer. It should be noted that the crane transfer data excludes risks in transit, whereas helicopter data covers the complete journey to/from shore. These results will be used to improve risk assessments of marine transfer. The Marine Transfer Forum will encourage systematic and regular data collection, and aims to compile more comprehensive statistics in the same way as the offshore industry does for helicopter operations. A paper entitled ‘Risks of Marine Transfer of Personnel Offshore’ can be obtained by contacting DNV GL. Visit: www.dnvgl.com
DTL has launched a Standard Range of butterfly dampers that provides a simple and cost effective method of control and isolation for many industrial applications requiring a shut-off of up to 99%. The new range, which is powered by Rotork actuators, will be supplied in diameters ranging from 200mm to 1,200mm (in increments of 50mm). These dampers are designed for maximum operating pressures of 500mmWG in three temperature ranges to accommodate operating temperatures of up to 600oC. DTL has researched and developed this range of dampers to provide a cost effective solution for basic industrial applications where bespoke engineering is not budgeted for and short lead times are critical. The aim is to provide a good quality, well-engineered, reliable product in half the delivery time one would normally expect for the design and manufacture of an industrial damper. The Standard Range will be backed up with the same product/service support that customers have come to expect from the DTL brand. With dedicated sales support from the head office in Eastwood, Nottingham, demand for the Standard Range is expected to contribute around 5% of turnover annually and the UK manufacturing plant is currently implementing component stock to ensure sensible lead times. All options can be fitted with pneumatic rack and pinion actuators (double acting or spring return), electric quarter turn actuator or manual gearbox and handwheel. For all enquiries contact: sales@dampertechnology.com
Pressure management specialist Elfab will be demonstrating its new Ex d-approved burst detection system FloTel™ XD and its Opti-Gard™ rupture disc at this year’s ONS exhibition. Flo-Tel™ XD is the Ex d-approved non-invasive rupture disc burst detection system. The new development incorporates Elfab’s trusted and well-established FloTel™ detection system into an industry-standard junction box design, with electrical terminal types that are suitable for most industry standard cables. This means it offers a single product solution, where customers would otherwise have to source multiple items and modify their installation. The incorporated FloTel™ gives instantaneous notification of a rupture disc burst and can be used as part of the control system to stop a process. The Flo-Tel™ XD has been nominated for an ONS Innovation Award, the winner of which will be announced during the Show. At the event Elfab will also be showing the only reverse-acting disc on the market to benefit from a 3% tolerance and an improved 97% operating ratio, its OptiGard™ product. The financial and operational benefits of this design are extensive. The improved tolerance and operating ratio combination increases the service life of the rupture disc and can reduce stock holdings by up to 65%. Key members of Elfab’s management team will be present at the company’s stand, and customers are asked to contact Elfab prior to the event to arrange a formal meeting. For more information please visit: www.elfab.com
Transferring personnel to offshore installations using crew boats and crane-lifted carriers is a common operation around the world, however, practices, levels of training, standards and the equipment used vary greatly. Risk assessments currently use outdated statistics, and there is no central system for recording levels of activity and incidents. In order to improve safety performance and raise the profile of this operation DNV GL has carried out a study for the newly launched Marine Transfer Forum. The Forum brings together offshore operators, vessel operators, lifting specialists, and transfer system manufacturers to increase industry knowledge and mitigate risk. Founder members include Reflex Marine, Enermech, Seacore Marine and DNV GL. www.the-eic.com
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August 2014
EIC Member News
Gall Thomson
Gall Thomson has opened a state-of-the-art technology centre in the UK. The centre will be used for the design, production, refurbishment and testing of Marine Breakaway Couplings and is the next stage in its growth strategy. Gall Thomson is a leader in the design, production and application of Marine Breakaway Couplings. The Gall Thomson Marine Breakaway Coupling protects assets, personnel and the environment by separating and closing the flow of product through an offshore hose transfer system in the event of an emergency. The Technology Centre is located in Great Yarmouth and contains the latest in assembly line and design technology. Pat Webster, Head of Operations at the Great Yarmouth UK facility commented: “The capability and additional capacity offered by the Gall Thomson UK Technology Centre allows us to efficiently meet ever increasing demand for our technology.” The Technology Centre is part of a comprehensive investment programme designed to substantially increase and consolidate Gall Thomson’s technical and commercial market leading position. As a consequence of this investment and increasing global sales, the Gall Thomson design and sales engineer teams have more than doubled in the last six months. The Technology Centre is therefore an important development in the enhancement of Gall Thomson capabilities. An exceptional start to 2014 confirms the Gall Thomson expansion strategy is delivering the expected results. For more information please visit: www.gall-thomson.co.uk
Using resources based in the UK and Europe IVB is responsible for the design review of all new installations and the upgrades to existing facilities, both onshore and offshore. IVB expects that certification of the designs for this US$1.5 million contract will be completed in 2017. The scope of work being carried out by Dragon Oil includes upgrades on twelve offshore platforms, installation of three new offshore platforms and the installation of new pipelines. Offshore activity work also includes infrastructure projects, EPIC of yard development, and installation on new 6Kv overhead power lines. For more information please contact Gary Williams, Business Development Manager: Tel +44 (0)7771 882 064 www.ivbltd.co.uk
On 21 May 2014 Oil & Gas Systems Limited (OGS) held an open day to celebrate its 25th Anniversary and the occupation of its spacious new offices at Denmark House, St Thomas’ Place in Ely, Cambridgeshire. The event was attended by around 80 guests representing a broad cross section of clients, suppliers and partners along with local business and council officials who were also in attendance. A number of presentations were made on the day by Steve O’Donnell, Managing Director, the company’s shareholder and one of the founding members of the company, David Mills, who gave a history of how the company started and some of the key milestones and successful experiences that have helped OGS develop into the company it is today. The new building was then officially opened by prospective parliamentary candidate Lucy Frazer, QC who congratulated OGS on its 25 years of business in the oil and gas industry. Tours of the new facility, which include a new R&D department and workshop facilities (in which key components of packaged equipment will be manufactured), took place throughout the day. Along with the tours, presentations were given on OGS’ overall capabilities, the recent registration of its holding company, Oil and Gas Holdings (OGH Limited), and Oil & Gas Measurement Limited (OGM), its other new subsidiary and its range of products and development projects. The day was a great success and the feedback from clients was very positive. Visit: www.ogsl.com
Great Yarmouth based Inspection Verification Bureau (IVB) has secured new projects in recent months. In March 2014, IVB in partnership with TUV Rhineland (Middle East) attended a kick off meeting in Dubai with Dragon Oil following its successful securing of the certification contract from Dragon Oil for major field activities, both onshore and offshore in the Turkmenistan region of the Caspian Sea. Dragon Oil is the operator of the Cheleken Contract Area, containing the LAM and Zhdanov oil fields in the Caspian Sea, offshore Turkmenistan. Dragon Oil intends to install a number of wellhead platforms over the next three to five years, riser platform, submarine and onshore pipelines. The company is also carrying out significant upgrades/modifications on its existing platforms. www.the-eic.com
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August 2014
EIC Member News The opening of the new training centre follows another recent £500,000 investment in additional facilities at Inverurie where the company’s Process Plant Solutions business has been relocated. The PPS division, which includes tools testing and equipment rental, expects to increase revenue by 20% due to increased capacity. The company employs 250 staff at its Kintore headquarters, Inverurie and Kendal in the UK and in Canada, USA, Abu Dhabi, Qatar and Malaysia, and expects to recruit a further 45 in the next year. Leigh Howarth, Chief Financial Officer, STATS Group, said the rate of growth being experienced by the business demanded an in-house training facility that would maintain and improve quality and competency standards: “As a fast-growing niche engineering business, our reputation and future development is dependent on being able to deliver complex projects safely, without incident and on budget. “To maintain this growth we have to equip our staff with specialist training and competency support and this significant investment in our own training centre underlines that commitment.” The approach taken by STATS to managing the training and development of its workforce was further endorsed when the company recently won the national Energy Construction Industry Training Board (ECITB) award for ‘Skills and Training Charter for SME’s’. STATS Group
Many of the challenges faced by the offshore maintenance sector are being addressed by a breakthrough in technology from Sherwin-Williams Protective & Marine Coatings Europe, Middle East and Africa (EMEA). Acrolon 1850 is a non-isocyanate high build finish coat for exterior exposed surfaces and has been designed to meet the unique challenges faced by the offshore sector. This sector provides a range of maintenance challenges for the coating industry such as safety colours which are used to coat offshore assets but typically give very poor opacity and coverage. Yellow and red coatings have previously contained lead-based pigments which were cheap and offered good coverage. However because of the health and safety concerns with lead, organic pigments are now used which can be expensive with poor opacity, and numerous coats are often required to provide complete obliteration of the undercoat. Acrylic urethanes are generally regarded as the standard topcoats for many industries, but contain isocyanates which are prohibited or undesirable in many offshore markets including the North Sea. One of Acrolon 1850’s key benefits is the ability to achieve full coverage in a single coat by brush or spray allowing rapid return to service and reduced downtime for customers. Other properties include strong gloss retention, good results in UV, and weathering performance to prolong service life. Lee Spoor, Project Development Manager oil, gas and chemical, Sherwin-Williams Protective & Marine Coatings EMEA, said: “The use of isocyanates in the North Sea offshore market is not normally possible, but this product gives those in the maintenance sector a next generation alternative, providing features that were not an option previously. Used in conjunction with epoxy primers and undercoats, it also has a range of benefits that will assist customers, including excellent weather resistance.” Compared to other coatings, which can remain susceptible to water spotting for more than 48 hours following application, Acrolon 1850 is resistant to moisture in just four to six hours. For more information please visit: http://protectiveemea.sherwin-williams.com/
Pipeline engineering specialist STATS Group has invested £500,000 in establishing a global training centre at its UK headquarters near Aberdeen. In response to higher demand for its patented technologies, the centre will be used to meet the group’s training and competency assessment needs for its field and workshop technicians and design and project engineers. The 3,500 sq ft facility includes a custom-built classroom, a full suite of the group’s products, dedicated testing areas and bespoke training materials with specialist software. STATS provides isolation, intervention, repair and testing of energy industry pipeline systems and has developed a range of products which prevent the lengthy shutdown of facilities and avoid costly downtime. www.the-eic.com
David Edwards, Chief Executive, ECITB, said: “The engineering construction industry’s most valuable asset is its people. It is therefore essential they are competent, highly skilled and have the knowledge and understanding required to carry out their roles effectively, efficiently and safely, ensuring a high level of productivity is achieved. “STATS has made a commitment to these aims for its current and future workforce and winning the Engineering Construction Industry Award for the Skills and Training Charter SME category is a great achievement and a clear demonstration that STATS is delivering to the highest level against these commitments.” For more information please visit: www.statsgroup.com
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August 2014
Events Diary
UK, Overseas & Training August 2014 5 Industry Overview: Fundamentals of Nuclear EIC London 5-6 Management Course: The Effective Manager Change Creation, EIC Houston 6 Industry Overview: Fundamentals of LNG EIC London 7 Industry Overview: Fundamentals of Oil & Gas EIC London 7 Management Course: Effective Selling and Account Management Change Creation, EIC Houston 15 Corporate Entertainment: The Glorious 15th Clay Shooting Day Seals Cove Shooting Ground, Aberdeen 22 Corporate Entertainment: An Afternoon at the Races Newcastle Racecourse 26 Corporate Entertainment: Dubai Skyline Networking Night Sheraton Mall of The Emirates, Dubai 27 Industry Overview: Fundamentals of Downstream EIC Rio 27 Technical Workshop: Introduction to Electric Motors WEG, Alderley FZE, Dubai September 2014 2 Oman Export Showcase EIC London 3 Management Course: Tendering for Success Rothera Group, Kirkhill Industrial Estate 3 Industry Overview: Fundamentals of Subsea Systems EIC Houston 4 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, EIC Aberdeen 4 Technical Workshop: Introduction to FPSOs EIC Houston 9 Management Course: Negotiation Skills Made to Measure Training, EIC London 9 Technical Workshop: Introduction to Flow Metering Alderley FZE, Jebel Ali, Dubai 10 HSE Training: ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 11 Management Course: Presentation Skills Made to Measure Training, EIC Teesside 16 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 17 Management Course: Introduction to Local Content Rio de Janeiro 17 Technical Workshop: Introduction to Offshore Wind Energy DNV GL, EIC London 18 Saudi Arabia Export Showcase Aberdeen 18 Technical Workshop: Introduction to Tier 4i/Stage IIIB Engines Finning UK, Staffordshire 18 Technical Workshop: Introduction to Gas Turbines Siemens, EIC Houston 19 Corporate Entertainment: Southern Region Race Day The Racecourse, Newbury 22 Management Course: Certificate in Project Management Parallel Project Training, London 23 Industry Overview: Fundamentals of Oil & Gas International House, Dubai 24 Industry Overview: Fundamentals of Oil and Gas Rio de Janeiro 24 Indonesia Export Showcase EIC London 24 Management Course: Developing a Business Case Neos Learning, EIC London 24 Technical Workshop: Introduction to Shale Gas International House, Dubai 24 Technical Workshop: Introduction to FPSOs EIC Kuala Lumpur 25 Technical Workshop: Introduction to Control Valves Severn Glocon, Gloucester 29 Azerbaijan Export Showcase EIC London 30 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Darlaston, West Midlands October 2014 1 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, Warrington 1 Management Course: Successful Agency Agreements International House, Dubai 2 India (Power) Export Showcase EIC London 2 Management Course: Introduction to Social Media The Centre, EIC Aberdeen 3 Corporate Entertainment: 5th Annual Sporting Clays Tournament American Shooting Center, Houston For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com
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August 2014
Events Diary
Exhibitions & Delegations 2014
25-28 August Offshore Northern Seas (ONS) Stavanger 14-17 September Overseas Delegation to Oman 15-18 September Rio Oil & Gas Rio de Janeiro 23-26 September Overseas Delegation to Peru 14-16 October World Nuclear Exhibition Paris 13-17 October Overseas Delegation to Myanmar 10-13 November ADIPEC Abu Dhabi 12-14 November Offshore Korea Busan 24-28 November Overseas Delegation to Thailand 2-5 December Offshore South East Asia (OSEA) Singapore
Status Sold Out Sold Out Sold Out Booking Now Booking Now Booking Now Sold Out Booking Now Booking Now Booking Now
2015
19-22 January Overseas Delegation to Kuwait 16-20 February Overseas Delegation to South Africa and Mozambique TBC February Overseas Delegation to India (Power) 10-12 March European Wind Energy Association (EWEA) Copenhagen 11-13 March Australasian Oil & Gas (AOG) Perth 23-27 March Overseas Delegation to Colombia 4-7 May Offshore Technology Conference (OTC) Houston
Register your Interest Register your Interest Register your Interest Register your Interest Booking Now Register your Interest Register your Interest
For further information on Exhibitions & Delegations please contact: events@the-eic.com
National Events 2014
Status
16 October EIC National Dinner 25-26 November EIC Connect Oil & Gas
Booking Now Delegate Bookings Now Open
London Manchester
2015 2 June EIC Connect Middle East Abu Dhabi Register your Interest 8-11 September Offshore Europe Aberdeen Stand Bookings Open For further information on National Events please contact: nationalevents@the-eic.com
OCT. 14-16, 2014 PARIS LE BOURGET FRANCE CONTACT RAELENE WILCOCK
TEL +44 (0)20 7091 8600 EMAIL raelene.wilcock@the-eic.com
www.the-eic.com
11
August 2014
EIC Overseas Delegations
Overseas Delegations Overseas Delegations are designed to enable the UK supply chain to target revenue opportunities in a supportive business environment. Overseas Delegation to Thailand 24-28 November 2014 MAP Funding Confirmed One of the fastest growing 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. Natural gas has become the dominant energy source for electricity, and its consumption is increasing in the industrial and transportation sectors. The growing energy demand spurred by new gas-fired power plants represents a major challenge for Thailand to keep up with demand due to its limited resources and that opens up opportunities for companies interested in that market. Thailand is active in both upstream and downstream businesses. The country has about 428 million barrels of proven oil reserves, and 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, Bongkot 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). For information contact: camilla.tew@the-eic.com
Kurdistan is aiming to increase its export capacity to at least 1 million bbl/d by 2015 and 2 million bbl/d by 2019. The power sector is targeting a tremendous growth rate of 15% annually. The private sector investment in the power sector was around US$5 billion in 2013, this number is estimated to increase to US$7 billion by 2016. Opportunities for UK Plc that cannot be ignored. For more information contact: mark.gamble@the-eic.com Delegation Report Overseas Delegation to Vietnam 23-27 June 2014 The EIC recently facilitated yet another successful market visit to Ho Chi Minh City and Vung Tau, Vietnam to explore the range of business opportunities on offer in the oil and gas sector. Vietnam has had steady economic growth since a decade ago and energy demand has increased in parallel with the economic growth. The oil and gas industry is a top priority sector for development by the Vietnamese government which considers it vital to the nation’s economic growth and energy security. It is one of the country’s biggest foreign currency earners and a major procurer of imported technology, services and equipment. The delegates enjoyed a range of meetings, with both national and international operators and contractors, gaining invaluable advice, contacts and information. Companies visited in both Ho Chi Minh City and Vung Tau included Petronas Carigali Vietnam Ltd, Hoang Long & Hoan Vu JOC, Premier Oil, PetroVietnam Exploration Production Corporation (PVEP), Rosneft, PTSC, PTSC Mechanical & Construction, PTSC Offshore Services and other subsidiaries, Vietsovpetro, Japan Vietnam Petroleum Corporation and MODEC Management Services Pte Ltd. A trade networking reception at the British Consulate General allowed for industry specific introductions, and served as a great follow up for the delegates to talk to people that they had met at presentations and meetings earlier in the week. With the growth of the energy sectors in Vietnam set to continue well into the future, the visit to the market was well timed for UK companies looking to do business in the country. Feedback post event confirmed that the week had been hugely successful, with exceptional quality of meetings and will result in future business for many of the delegates attending. For more information on future trade delegations please contact: camilla.tew@the-eic.com
Delegation Report Overseas Delegation to Kurdistan 21-25 June 2014 The overseas delegation to Kurdistan consisted of 14 delegates from 13 UK companies keen to find out more about current oil and gas opportunities in this exciting market. With its abundant oil and gas resources and relatively transparent and stable markets, Kurdistan is one of the emerging economies of the region. Over 50 production sharing contracts have been signed since the region established its own hydrocarbon law in 2007 and early exploration has yielded several large hydrocarbon finds, which are now moving into early production phases. The delegation kicked-off with a special invite to the Queen’s Birthday Celebration in Erbil, Iraq. This annual event hosted by the British Consulate aims to strengthen the relationship between UK and local companies and was attended by top Kurdistan Regional Government ministers. Meetings were arranged throughout the four days with DNO, Stirling Group, Chevron, Afren Plc, Western Zagros, Marathon Oil, UB Holding, TAQA Global, Dana Gas, KAR Group and Gazprom and concluded with a site visit to MASS Group Holding at the Erbil power station. The current situation in the wider Iraq region has had little effect on the Kurdistan region. Security has been strengthened but the clear message is ‘business as usual’. The British Consulate travel advice remains unchanged – but it is a situation that does need to be closely monitored. www.the-eic.com
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August 2014
EIC National Events
DELEGATE BOOKINGS NOW OPEN EIC Connect is designed to showcase the export opportunities available to UK companies. UK Trade & Investment is again supporting the EIC at this year’s event and will be inviting key companies from across the world to unveil their project and contract opportunities to UK companies in the exhibition. Major regions of interest that will be covered at the event include Angola, Brazil, Indonesia, USA, Kazakhstan, Mozambique, Nigeria, Russia and South Korea.
I am pleased to announce that delegate bookings are now open for EIC Connect Oil & Gas 2014 and can be booked online via the EIC website. The cost to attend is £199+VAT per person for two or more places booked before Monday 1 September or £249+VAT for individual bookings in this period rising to £279+VAT for EIC members after this date. What does the delegate package include?
UK Export Finance will also be in attendance to educate UK companies on the potentially lucrative funding available.
• Access to all Supply Chain Briefings and Conference Sessions • Opportunity to book one-2-one meetings • Refreshments and lunches on both days • Networking Hour • Event Brochure Pack • Presentation copies after the event
Supply chain briefings will be focused around what each company requires from suppliers in terms of safety expectations, cost, productivity and local content requirements and aim to educate delegates on: • What their supplier strategies are • How much they spend and where • What products and solutions they buy • Timescales – when to engage • What will give you an advantage as a supplier
The opening plenary session will focus on a 10 year global outlook for UK companies in the oil and gas industry and will set the scene for the two days. The Minister for UK Trade & Investment, Lord Livingston will address the supply chain in the session alongside Matthias Bichsel, Executive Director for Royal Dutch Shell, who will give Shell’s perspective on the longer term prospects for UK companies in the UKCS and beyond.
Heads of procurement and engineering from international and UK based companies will also be circulating the exhibition and carrying out one-2-one meetings with delegates to discover UK capability for their global energy projects. Companies confirmed to date include AMEC, Bechtel, CB&I, Centrica, Foster Wheeler, Shell and WorleyParsons with many more expected to sign up in the coming weeks. Interested in exhibiting? Additional stand space is now available in the conference foyer to allow companies to take advantage of the footfall between the exhibition and the conference sessions. These stands are priced at just £2,400+VAT and are expected to sell out fast.
Each conference session will provide a broad overview of the upstream, midstream and downstream sector and discuss what challenges are faced that impact on the global supply chain. Conference sessions will be chaired by high-level industry panellists and key figures from within major operators and contractors. These will be supported by round table discussions to allow delegates to voice their opinions on some of the most pressing issues dominating the oil and gas industry today. www.the-eic.com
For additional information and to view the full range of sponsorship and exhibiting opportunities please visit the website. For more information please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com 13
August 2014
EIC UK News
News from our UK offices
Sponsorship The EIC National Dinner provides a unique opportunity to promote your organisation’s capabilities to a captive audience of high-level, key industry contacts. We are delighted to announce that this year’s Headline Sponsor is LV Shipping and that the event is also supported by OilCareers.com and Promat.
Corporate Entertainment
The EIC offers members several opportunities to host clients in informal surroundings and networking with their peers. EIC The Glorious 15th Clay Shooting Day Friday 15 August 2014 Seals Cove Shooting Ground, Aberdeen EIC members and their guests are invited to join the EIC for a clay pigeon shoot at Seals Cove Shooting Ground. This afternoon out is an ideal way to entertain clients and reward staff. It also provides a great opportunity to network with a difference throughout the shoot and over a BBQ lunch. Contact Leeann Stewart.
Only a couple of sponsorship opportunities remain. www.the-eic.com/NationalDinner Contact: charmaine.atkinson@the-eic.com
Regional/Sector Showcases
UK Regional and Sector Showcases are full day events open to EIC members only, which offer multiple presentations from operators and contractors highlighting supply chain opportunities across the region or sector in the UK.
An Afternoon at the Races Friday 22 August 2014 Newcastle Racecourse, Newcastle upon Tyne EIC Race Days are the perfect opportunity to entertain clients, prospective customers or staff within the exclusive setting of a classic British race course. Located in the heart of Newcastle in the picturesque surroundings of High Gosforth Park, Newcastle Racecourse offers one of the best dual tracks in the country. EIC members and their guests will be seated in the Gosforth Park Suite in Brandling House, where there is a fantastic view of the racing. You will have a sumptuous, freshly prepared, threecourse meal followed by tea and coffee, after which you will be able to watch the thrilling racing action. With intervals between each race, there’s plenty of time to entertain your guests and place your bets. Contact Jennifer Hole.
Contractor Updates and Regional AGMs Contractor Updates and Regional AGMs are an opportunity to hear from some of the most active and prominent contractors within your region on their supplier opportunities, procurement structures and operations. These initiatives will offer excellent networking opportunities as well as one2-one meetings with speakers. Each regional contractor update will be followed by the regional committee AGM – providing an overview of the EIC and our actives in the region over the last 12 months and plans for the future. Scotland – w/c 22 September 2014, Aberdeen To include panellists from the Subsea, Fabrication and Project Management sectors, focussing on their local operations, procurement policies and providing details of relevant local contacts. Northern Region – 21 October 2014, Venue TBC Focusing on some of the Northern Region’s largest EPC contractors. Southern Region – January 2015, London Including speakers from world-leading global contracting firms.
Southern Region Race Day Friday 19 September 2014 The Racecourse, Newbury The Dubai Duty Free International features top class horseracing with two Group races, sporting master classes and trick shot shows. Guests are invited to inspect the horses from the privacy of the EIC’s pavilion overlooking the parade ring before races commence, providing the opportunity to assess their form before the excitement begins. Ticket price includes a glass of sparkling wine on arrival, a traditional picnic lunch, Premier Enclosure ticket, private box, afternoon tea and cakes and a raceday programme. Contact Jennifer Hole.
Renewables Showcase GROW:OffshoreWind October 2014 Aberdeen The GROW:OffshoreWind programme will deliver a national programme of focused support to deliver a step change in SME manufacturers’ ability to exploit the lucrative opportunities offered by the UK offshore wind market. By providing access to targeted specialist advice, £20m of RGF funding will have a transformative impact in enabling English manufacturers to win contracts in the offshore wind market. The EIC will work with GROW:OffshoreWind, who offer expert intelligence, visibility of contract opportunities and access to funding, in helping existing suppliers into the oil and gas market, and identify opportunities for their expertise in the offshore wind sector. Contact Leeann Stewart.
EIC National Dinner Thursday 16 October 2014 Natural History Museum, London Over 550 energy industry professionals will enjoy a networking drinks reception followed by an evening of delightful food and exceptional entertainment from sports TV and radio presenter Colin Murray and vintage swing band October Moon. This year, for the first time, the 2014 EIC National Dinner will be extended to 01:30. This is due to overwhelming demand and to maximise your opportunity to generate business contacts. Tables are selling fast so reserve yours today.
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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August 2014
EIC UK News
Export Showcases
Azerbaijan Export Showcase Monday 29 September 2014 EIC Conference Suite, London The Caspian’s relatively untapped hydrocarbon resources, and their development and secure transit to international markets is driving growth and global interest in Azerbaijan. Due to a rapid rise in oil and gas revenues the country has one of the fastest growing economies in the world and its strategic location serves as an import/ export gateway as well as a potential transportation hub for other Caspian coastal states. With BP as the dominant operator in Azerbaijan, the majority of British companies active in the region form part of their supply chain, bringing with them a series of potentially lucrative opportunities for EIC members. Join EIC members and other invited UK companies to learn about opportunities in the region from some of the major companies doing business there, as well as the logistical and practical details of operating in the Caspian region. Register your interest with Jennifer Hole.
Export Showcases are run in conjunction with UKTI and are designed to highlight opportunities and operational logistics within global markets of interest to EIC members. Oman Export Showcase Tuesday 2 September 2014 EIC Conference Suite, London With over US$77.5 billion worth of planned investment in oil and gas projects, supply chain opportunities are ripe within the Sultanate of Oman. As the largest non-OPEC producer of oil and gas in the Middle East, Oman is aiming to maintain this position by increasing the production rate of its hydrocarbon resources. Local government has been enlisting foreign companies in new E&P projects, offering generous terms for developing fields that require the sophisticated technology and expertise of the private sector. The EIC and UKTI bring you an excellent panel of speakers, including representatives from Petroleum Development Oman (PDO) and Foster Wheeler who will detail their company’s project plans, procurement strategies and investment opportunities. This is a unique opportunity to find out more about how your organisation can take advantage of the opportunities the country has to offer to UK companies. Please register your interest with Jennifer Hole.
India (Power) Export Showcase Thursday 2 October 2014 EIC Conference Suite, London India is the world’s fourth largest energy consumer with 4.4% of global consumption. Demand is growing rapidly and it is predicted that the country will move up the rankings to third place by 2020. Development is taking place across the power sector in India with a focus on renewables and conventional power, not to mention their need for metering solutions, wireless technology provision and other technology to reduce distribution losses. The EIC and UKTI work together to highlight these opportunities to our members through a comprehensive panel of speakers, who will identify the key sectors of importance and detail where planned investment will be made. With a five year plan (2012-2017), which aims to add an additional 118.5GW of generation capacity, this is a market our members should be aware of. Register your interest with Jennifer Hole.
Saudi Arabia Export Showcase Thursday 18 September 2014 Aberdeen Saudi Arabia is the world largest exporter of oil and plays a pivotal role in insuring that the world’s energy demands are met. With growing local demand for power, Saudi Arabia is moving towards the development of sour gas fields. Saudi Aramco is currently undertaking the Wasit Gas Development project which aims to produce and process up to 2.5 billion standard cubic feet per day of gas from the Hasbah and Arabiyah offshore non-associated sour-gas fields to cater for domestic demand. Gas projects in the Kingdom are increasingly important, but oil will remain king. Saudi Arabia is planning to develop a number of fields in order to offset production decline from older fields. Saudi Aramco will increase the production rate of the Khurais field as well as the Shaybah field. Business opportunities for UK companies in Saudi Arabia are abundant as billions of pounds worth of investments are being planned for projects across the hydrocarbon sectors. Contact Jennifer Hole.
For further information on any EIC events, please contact: Jennifer Hole: Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com Leeann Stewart: Tel +44 (0)1224 628 251 Email leeann.stewart@the-eic.com
Event Report
Scottish Region Golf Day Friday 20 June 2014 Cruden Bay Golf Club, Aberdeenshire Sponsored by Sparrows for the second year in a row, we would like to thank all members who attended the annual Scottish Golf Day. The lucky winners were as follows: • Best Individual: Eddie McDermott, Odfjell Drilling (Guest of N.B. Surveys) • Best Team: HVAC & Refrigeration Engineering • Nearest to Pin: Stuart Martin, Odfjell Drilling • Longest Drive: Shane McKay, PD&MS (Guest of N.B. Surveys)
Indonesia Export Showcase Wednesday 24 September 2014 EIC Conference Suite, London Indonesia is a key market amongst the ASEAN countries. With the highest gas reserves and the second highest oil reserves after Vietnam, it plays an important role in providing for the energy needs of the region. The market is dominated by key international oil companies and a number of sizeable projects have seen movement recently. Come along and find out about the significant opportunities in the market from some of the key players within the industry. Register your interest with Jennifer Hole. www.the-eic.com
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August 2014
EIC Middle East News
Middle East News
Forthcoming Events Technical Workshop
Introduction to Electric Motors Wednesday 27 August 2014 WEG, Alderley FZE, Dubai
Office News
It is a pleasure for us to start this month’s news by announcing that we have a brand new event sponsor for our Golf Day on 19 February 2015. Wood Group PSN has traditionally been a huge supporter of ours since we started here 10 years ago. With its multi-coloured logo being applied throughout, we can be sure that next year’s event will turn out to be a truly vibrant occasion, so please save the date if you haven’t already done so. In the meantime, there are a number of other branding opportunities available for which the office would be pleased to provide further details. Another event that needs to be saved in the calendar is EIC Connect Middle East. The date for this is 2 June 2015 and full details can be found on our website. We are looking forward to our traditional end of summer networking event which is taking place at a brand new venue. The Sheraton at the Mall of the Emirates enjoys magnificent views of the Dubai skyline. Being adjacent to the Mall of the Emirates, one could even bring the family, leave them to do some serious shopping and then catch up with them at the end of the evening by taking advantage of the mall’s extended opening hours. We are looking forward to the Oman Overseas Delegation next month which will focus on the latest developments in a market that has been relatively dormant over the past few years but following a number of recent investment decisions, is once more on the radar of our membership, which is great news. It was very disappointing that due to the withdrawal of UKTI support, we were forced to cancel our proposed participation at the Basra Oil Show in December which is a shame given the success of last year’s show but with the cost of security plus other related factors, it was deemed to be financially unviable to go ahead. We will nevertheless continue to keep a close eye on developments and whenever possible, offer initiatives that the membership can take advantage of to develop their business in this challenging market. Another market under close scrutiny is Iran. With the recent announcement that a UK embassy will open soon, this can be seen as yet another positive step towards the returning of trade relations which is very good news for all UK companies engaged in the energy sector. Lastly, we wish to acknowledge members with whom we have had the pleasure to engage with over the last four weeks. Alastair Carson was recently appointed as the Regional Manager for Advanced Actuators and kindly passed by the office to introduce himself as did Steve Malloy who is soon to take up a new position with Aquaterra. Russell Trotter and Richard Moore from Elfab took full advantage of our meeting facilities to catch up with some of their local representatives and finally, an old favourite, Nilesh Jain from CMP Products popped in to announce that they will soon be neighbours of ours following their relocation from Jebel Ali to the Dubai Airport Free Zone. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com
Technical Workshop
Introduction to Flow Metering Tuesday 9 September 2014 Alderley FZE, Jebel Ali, Dubai
Industry Overview
Fundamentals of Oil and Gas Tuesday 23 September 2014 International House, Dubai
Technical Workshop
Introduction to Shale Gas Wednesday 24 September 2014 International House, Dubai
Management Course
Successful Agency Agreements Wednesday 1 October 2014 International House, Dubai
Technical Workshop
Introduction to Gas Turbines Wednesday 8 October 2014 Siemens, Yas Island, Rotana
HSE Training
Basic First Aid Tuesday 21 October 2014 HSS Health & Safety Solutions, Dubai To register your interest or to book on any of the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com
Regional Comment
19 tanks planned for Fujairah refinery terminal A refinery terminal at Fujairah will include 19 aboveground tanks as well as a 7,500 bbl/d modular refinery. Ecomar Energy Solutions FZC (EES) contracted with Cylingas, a subsidiary of ENOC, for the design, construction and commissioning of the refinery, tanks, and an associated piping system. The tanks will have a total capacity of 91,000 cubic metres and will hold naptha, diesel, gas oil, fuel oil, kerosene, slop and water. Cylingas will set up equipment and vessels for the project, as well as providing engineering design, fabrication, inspection, painting, pipeline commissioning, and other services for the terminal. The project is scheduled for completion in 17 months, and design work has already begun.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
16
August 2014
EIC Asia Pacific News
Asia Pacific News Regional Comment
Talisman reviewing Asia assets for possible sale Talisman Energy is reviewing its Asian oil and gas portfolio, valued at about US$4 billion, which could lead to a partial or full sale. The review marks a major shift in business strategy for the company that classifies its Asian portfolio as a core asset. Talisman plans to put US$2 billion worth of assets on the market in the next 12-18 months, after raising US$6.6 billion through asset disposals since 2011. Talisman joins a list of other independent oil and gas producers such as Hess Corp and Newfield Exploration Co in divesting Asian assets in an effort to focus on their core home markets.
GDF Suez selling stake in Australia power assets GDF Suez is looking to sell a major stake in its Australian electricity generation and retail business and has hired Deutsche Bank to find a buyer for around 30% of its International Power (Australia) Holdings unit, which runs a coal-fired power plant in the state of Victoria along with two gas-fired power plants and a wind farm in South Australia state. The IPAH business sells power and gas to more than 350,000 customers in Victoria. GDF Suez is likely to retain a stake of around 40% in IPAH. Shell, CNOOC sign alliance State-owned China National Offshore Oil Corp (CNOOC) and Shell have signed a Global Strategic Alliance Agreement that reconfirms both parties’ commitment to the existing strategic partnership in China and around the world. Under the agreement, the companies also commit to exploring potential co-operation opportunities in upstream, midstream and downstream. CNOOC has enjoyed an excellent partnership with Shell in and outside China in both upstream and downstream projects, including offshore Yinggehai off Hainan Island and a successful petrochemicals joint venture in Huizhou, Guangdong province.
South Korea, Indonesia sign deals on LNG projects South Korea and Indonesia have agreed to expand co-operation in the whole gas value chain that covers upstream, midstream and downstream. The two countries will work together on coal bed methane (CBM) projects, a floating liquefied natural gas (LNG) terminal, an onshore liquefaction facility and a US$2.8 billion synthetic natural gas plant in Indonesia. Joint efforts by the two nations to develop CBM would help South Korea ensure stable gas supplies and help Indonesia speed up sluggish projects to develop the unconventional gas. Khazanah plans to develop power plants in Sumatra Malaysia’s Khazanah Nasional has expressed interest in investing in power plant development in Sumatra, Indonesia as well as in a transmission line connecting Sumatra and Malaysia. The abundant coal potential in Sumatra has attracted Khazanah to develop power plants in the neighbouring island. Khazanah is also interested in linking the planned 500kV undersea Sumatra-Java transmission line with Malaysia, to allow the transmission of electricity from Indonesia to Malaysia during day time (peak load time in Malaysia), and vice versa distribute electricity from Malaysia to Indonesia during night time (peak load time in Indonesia).
SapuraKencana makes gas finds offshore Malaysia SapuraKencana Energy has announced four significant gas discoveries in the SK408 Production Sharing Contract (PSC) area offshore Sarawak, Malaysia. The first well, Teja-1, encountered 219 metres of gross column whilst the Gorek-1 discovery hit a gross gas column of 235 metres. The third well, Legundi-1 and the fourth well, Larak-1 encountered gross gas columns of 139 metres and 333 metres respectively. SapuraKencana is the operator with a 40% working interest with partners Petronas Carigali (30%) and Shell (30%) holding the remaining interest. SK408 block is located in shallow waters, approximately 120 kilometres offshore Sarawak covering an area of around 4,480 square kilometres in the prolific Central Luconia gas province. These are the first four wells of a 10 well commitment in the PSC.
Vietnam field comes onstream Production has started at six wells from the Thang Long field in Blocks 01-02/97 offshore Vietnam, 160 kilometres east of Vung Tau city at a rate of around 8,000 bbl/d, with output due to start at another nearby field, the Dong Do field. The field is operated by the Lam Son Joint Operating Co, which is 50:50 owned by Malaysia’s stateowned Petronas Carigali Overseas and PetroVietnam Exploration Production Corp. Production at the Thang Long and Dong Do fields is expected to peak at 12,00015,000 bbl/d.
Pertamina considers power generation business PT Pertamina is considering the possibility of entering the power generation business after state-owned electricity firm PT PLN said it would open the access of its electricity transmission and distribution network to independent power producers. The ‘open access’ policy of PLN would provide an opportunity for Pertamina to not only sell its upstream products such as gas and geothermal, but can utilise them to produce electricity to be sold to industrial consumers located near the gas or geothermal sources. The business scheme would depend on the availability of PLN’s transmission and distribution network capacity.
If you need any assistance or advice in the region or for more information about upcoming events, please contact Azman Nasir: azman.nasir@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
17
August 2014
EIC North and Central America News
North and Central America News Office News
Regional Comment
Approval given to sell condensate to overseas markets Following a forty-year ban on exporting crude oil, the US Department of Commerce has issued a ruling that will allow Pioneer Natural Resources to export its Eagle Ford Shale oil that has been processed through a distillation unit. Enterprise Products has also been permitted to export processed condensate. The policy has not changed on the export of crude but processed petroleum products are now eligible for export.
I have had the privilege of meeting quite a few members since joining the team and look forward to learning about your businesses and how we can best help your development plans in target markets. Last month the Houston office hosted a presentation from Richard Shackleton, First Secretary for Climate Change, Energy and Low Carbon Prosperity from the British Embassy in Mexico, entitled ‘Opportunities in Mexico’. This event drew 18 attendees from 10 companies seeking to develop their footprint in Mexico. This included Andrew Millar, British Consul General, who assisted in facilitating questions during the event. Many of the attendees had the opportunity to see our offices for the first time and network with our research analysts, Lisa Defalco and Michael Borrel. We also held Fundamentals of Oil and Gas Production which had 15 attendees from 12 companies. Looking ahead, we are developing partnerships with UKTI and BABC to host networking opportunities and provide support to better serve our members. More details to come. Special Piping Materials, Special Metals Wiggin, NES Global Talent, Onstream Group, Rockwool Ltd/Roxul, Derrick Service and Safehouse were guests at our offices last month. Thank you for coming to see us. We extend a special welcome to our newest tenant, Rust Resources, the global recruitment specialists with expertise in supplying project personnel to the oil and gas industry. As part of our restructure, Michael Borrel has been promoted to Regional Analyst PNR (North & Central America). Michael will be focusing on providing information on project related business opportunities in the power, nuclear and renewables sectors within the USA, Canada, Mexico, Central America and the Caribbean. Lisa Defalco will have a change in her role to Regional Analyst North & Central America focusing solely on business opportunities in the oil and gas industry. Congratulations to both of them.
Chevron sells Beaumont Terminal, Texas Phillips66 is purchasing the Beaumont Terminal from Chevron Unocal. The complex includes storage capacity for 4.7 MMbbl of crude oil and 2.4 MMbbl of refined products, marine docks and rail and train facilities. Phillips believes the terminal is well placed to accommodate the anticipated increase of crude supplies and refined product exports on the Gulf Coast. Drilling to begin in Shelburne Basin ConocoPhillips and Suncor are joining Shell in its Deepwater Shelburne Basin Venture Exploration Program, 300km offshore Nova Scotia. Shell’s six exploration licenses cover 19,845 sq km in water depths of 500-3,500 metres. Shell will remain the operator with 50% interest; ConocoPhillips will acquire 30% and Suncor 20%. Pending regulatory approval, Shell will begin drilling two wells in the second half of 2015. Noble and BP share exploration leases in GoM Noble Energy has acquired 50% of BP’s interest in several deepwater exploration leases in the Gulf of Mexico. Each of the leases are in the Atwater Valley protraction area, with Noble Energy acquiring a 50% working interest in 13 leases and an average 26% working interest in four leases. As part of the transaction, Noble Energy is participating with a 50% working interest in the Bright prospect, which is currently drilling on AV Block 362 in a water depth of approximately 5,600 feet. The initial well, targeting multiple Upper and Middle Miocene reservoirs, is anticipated to be drilled to a total depth of 13,500 feet. Noble’s total estimated gross unrisked resource range (P75 - P25) for the Bright prospect is 90 to 350 MMboe. In addition to the Bright prospect, there are multiple followon exploration opportunities that have been identified on these newly acquired leases.
Forthcoming Events Industry Overview
Fundamentals of Subsea Systems Wednesday 3 September 2014 EIC Houston
Technical Workshop
Introduction to Gas Turbines Thursday 18 September 2014 Siemens, EIC Houston
SNC-Lavalin buys Kentz Corp Canada’s SNC-Lavalin has acquired Kentz Corp, in line with its strategy to become a global tier-1 E&C services firm. The addition of Kentz’s capabilities will make SNCLavalin a leading global player in the oil and gas sector, with a greater presence in key growth regions, including the Middle East, North America and Asia Pacific, with a significant presence in Australia.
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: Nyree Carter, Regional Manager (North & Central America) Email nyree.carter@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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EIC South America News
South America News
Pre-salt fields offshore Brazil
Office News
Forthcoming Events Industry Overview
Petrobras
Are you coming to Brazil for Rio Oil & Gas 2014? We are compiling a list of UK companies who will be present at the event with a view to share this information with Brazilian companies. Let us know if you are attending or exhibiting at the event as well as the contact details of you company’s representative at the exhibition. If you are part of the UK Pavilion, we already have your information. Due to the World Cup, June was a slow month in terms of EIC events, however we managed to host successfully for the third time the Technical Workshop: Introduction to FPSOs, with 27 attendees.
Fundamentals of Downstream Wednesday 27 August 2014 Rio de Janeiro
Pre-salt production reaches 500,000 bbl/d The state-owned oil company Petrobras has announced that production from its pre-salt fields located offshore Brazil has reached 500,000 bbl/d for the first time. Output from pre-salt areas accounts for 22% of Petrobras’ overall production and the company expects this figure to increase to 50% by 2018. The Brazilian pre-salt province is located in ultra-deep waters in the Santos, Campos and Espírito Santo basins. The area holds at least 35 billion barrels of oil equivalent, according to estimates by the National Petroleum Agency (ANP).
Management Course
Introduction to Local Content Wednesday 17 September 2014 Rio de Janeiro
Industry Overview
Fundamentals of Oil and Gas Wednesday 24 September 2014 Rio de Janeiro
Brazil lodges bid to host WEC 2019 The country is bidding to host the 24th World Energy Congress in 2019. Brazil’s bid was approved in March and is being co-ordinated by the Brazilian Petroleum Institute (IBP). Russia and the United Arab Emirates are also in the competition, which will be decided in October. WEC is held every two years and is visited by 5,0007,000 attendees from various countries.
If you need support in taking the next step into the South American market, please feel free to contact us. Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com
Regional Comment
Concession awarded for Sur Peruano gas pipeline The Odebrecht and Enagas consortium has been awarded a concession to build and operate the 32 inch, 1,085km Sur Peruano gas pipeline. One of the country’s most important energy projects, the pipeline will carry gas from the Camisea gas fields to power and petrochemical plants in southern Peru. The consortium is expected to invest US$7.8bn (£4.5bn) in the pipeline’s construction, operation and maintenance over the 34 year concession period.
Chile signs energy co-operation deal with US Chilean and American officials have signed a wideranging agreement for co-operation in the energy sector, including areas such as unconventional gas, renewable energy and smart grids. A plan detailing specific goals and related mechanisms is expected to be released in September. Colombia to sell Isagén The Colombian government has confirmed that it will sell its 57.6% interest in the state-owned power generator Isagén. Duke Energy, International Power SA and China Huadian Corporation are understood to be bidding for the acquisition of the government’s share. Isagén is Colombia’s third largest power generator, with an installed capacity of 2.1GW (equivalent to 16.4% of Colombia’s total installed capacity).
Western Venezuela to produce 1.1 MMb/d by 2019 The Venezuelan state-owned oil company PDVSA plans to produce 1.1 MMb/d of oil and 1.2 Bcf/d of gas from areas in western Venezuela by 2019, according to a recently released 2014-19 production plan. The company plans to modernise production facilities and improve recovery rates through new technology. The western part of the country has reserves estimated at 278 billion barrels of crude and 123 Bcf of gas, according to PDVSA.
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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