EIC Monthly News December 2015 by Energy Industries Council

EIC Monthly News December 2015

Sector Analysis

Today Brazil generates approximately 6GW from wind farms, but this is expected to reach 16GW by the end of the decade

Page 3

EIC Monitor

Levels of contracting activity in the oil and gas industry remain low as the impacts of the oil price decline are still felt across the globe

Page 4

Training Services

Natural gas is the cleanest and most efficient of the fossil fuels and the growth in its use over the last 20 years has been significant

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The EIC Chief Executive

A word from the CEO As 2015 draws to a close, it’s a good time to take stock. We’re all aware of the impact that significant changes in market conditions is having on many UK companies and on exploration activity. At the same time though, progress is being made. There are still fields in production; new discoveries have been made in regions such as the UK North Sea, Egypt and the USA; and developments are ongoing in other energy sectors. These are exactly the opportunities that the EIC has been working harder to highlight and to help you, our members, exploit. The Oil and Gas Authority (OGA) was created earlier in the year and is working for greater collaboration between industry and government. Operators are now starting to collectively look at ways of protecting critical North Sea infrastructure, which is positive for supply chain contracts as well as the future of the oil and gas sector in general. Providing further support to our members involved on the UKCS was an important goal for the EIC this year, so a dedicated Regional Manager for Scotland and Norway was appointed to build and grow commercial and strategic relationships. The EIC members’ pavilion at Aberdeen’s Offshore Europe also provided a solid platform for creating and pursuing leads, and looking ahead, ONS 2016 will give another channel for growing both relationships and opportunities with Norway. The Middle East continues to be an important market, and one which our members recognise the value of. This year’s ADIPEC was particularly notable because the EIC’s UK pavilion was our largest ever overseas exhibition space, attendance reached record levels, and the exhibition gave UK companies optimal exposure to markets regionally and globally. www.the-eic.com

Similarly, EIC Connect Middle East, which we hosted in June 2015, was so well received that we have brought the next event forward to May 2016 to capitalise on this success. It will also be the ideal opportunity for members to follow up leads from ADIPEC. Tracking projects effectively is perhaps more important than ever before, so our enhanced version of EICDataStream helps you to do just that. Because we consulted with members over many months, spent time developing the database, and then testing it, we’re confident that we have a robust product. EICDataStream also features information on all sectors, including an array of power, nuclear and renewables (PNR) projects. The most talked-about energy news this year was the multi-billion pound agreement between EDF Energy and China General Nuclear Corporation (CGN) for the Hinkley Point C nuclear power plant, as is the announcement that the UK’s remaining coal-fired power stations are to close by 2025, in favour of gas and nuclear alternatives. This, as well as many other topics were under the spotlight at our recent EIC Connect Energy event in Manchester, which was attended by major operators and focused on adaptability, collaboration and showcasing expertise. Finally, we are delighted to welcome our new president, Chris Haynes. His 40 years’ industry experience will be invaluable, helping to strengthen the service we deliver to members. On behalf of the EIC, I wish you all a very happy Christmas and a prosperous new year. Claire Miller, Chief Executive

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Contents The Chief Executive

Sector Analysis

EIC Monitor

New Members

Member News

Events Diary

Overseas Events

UK Events

Training Services

Middle East News

Asia Pacific News

North America News

South America News

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December 2015

EIC Sector Analysis

Sector Analysis

Ups and downs in Brazil: crisis and opportunities As 2015 draws to a close, Brazilians who were previously enthusiastic about the country’s economic ascent now find themselves welcoming back old issues and wondering if fortunes will improve next year. Latin America’s biggest economy and a former high-flyer among the BRICS countries now finds itself facing a challenging reality caused not only by domestic factors such as double-digit inflation, political turmoil, corruption scandals, unemployment and negative growth rates but also external scenarios. Meanwhile, the local supply chain contemplates these events with concern, trying to make the most of the opportunities in a country with massive oil reserves and ambitious energy projects. Previously riding the wave of the commodities boom, Brazil’s economy crash-landed in the wake of weaker demand from China. Ill-advised monetary and fiscal policies implemented during the first Rousseff administration (notably the surge in public spending) further deteriorated the economy, contributing to a perfect storm of inflation, rising unemployment and reduced confidence from investors. This did not go unnoticed by Standard & Poor’s, which cut Brazil’s debt rating to junk status last September. Once known as a high-flyer among the BRICS, Brazil’s economy is expected to contract 3% this year according to estimates by the central bank. In addition, a federal police investigation on a former downstream director of Petrobras in early 2014 evolved into a fullyfledged operation which uncovered evidence of various bribery and money laundering schemes (some of which date back to the 1990s) at several major Brazilian EPC contractors. Many of their contracts with Petrobras were put on hold as a result, causing a substantial impact to the supply chain. www.the-eic.com

The economic crisis and the fallout of the corruption investigation (which has targeted several officials at the Workers’ Party) were a blow to President Rousseff, who began her second term this year. Although she previously made a pledge to distance her administration from austerity measures, her dramatic U-turn had a great impact on approval ratings, which in September stood at 10%. Her actions have drawn strong opposition from a rebellious congress (whose lower-house speaker is also allegedly involved in bribery schemes), which has blocked crucial draft bills designed to alleviate Brazil’s fiscal problems. On top of this, Rousseff is now accused of having practiced creative accounting in order to meet fiscal targets in 2014, leading many to call for her impeachment. Perhaps one of the biggest casualties of this turn of events is Petrobras. Latin America’s biggest company, it now has the doubtful distinction of being one of the world’s most indebted oil companies. Although the company’s 2015-19 business plan calls for an investment of US$130.3 billion (a significant reduction compared to the US$220.6 billion plan for 2014-18), key refineries such as Premium I and II have been cancelled while other projects – some of them more than 50% complete – have been put on hold in a bid to save capital and focus on the development of new production from pre-salt fields. According to a study by the Ministry of Finance, Petrobras’ investment cuts will have a US$30 billion impact on the Brazilian economy this year, which is equivalent to almost 2% of the country’s GDP. Although Brazil’s outlook is far from ideal in the short to medium term, not all is doom and gloom. The pace of Petrobras’ investment has reduced but the company still has to maintain its assets.

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EIC members in the region seem to agree that the maintenance of offshore assets, a segment which has a strong presence in the city of Macaé, provides much soughtafter opportunities in the short term. Looking ahead, the pre-salt development programme is still a priority and a series of FPSOs are still earmarked to be installed in the Santos Basin, with 20 new units slated to start operations by the end of the decade. Full development of the massive Libra oil field, which is estimated to hold 12 billion barrels of oil in recoverable reserves, will require up to 18 FPSOs. Activity being carried out by operators such as Statoil (which plans to issue a tender for a wellhead platform in 2016), Shell, QGEP and Karoon, among others, should not be overlooked. Brazil’s PNR sector also offers a much-needed respite from the crisis, especially in the wind segment. Financing from the Brazilian Development Bank (BNDES) has proved crucial for the development of several wind farms by requiring turbine manufacturers to set up facilities in-country. Today Brazil generates approximately 6GW from wind farms, but this is expected to reach 16GW by the end of the decade. As the supply chain now focuses on improving efficiency and productivity (which also leads to increased investment in innovation), so should the government with regard to the economy in general, and the oil and gas sector specifically. A proposed bill to remove the requirement that Petrobras should be single operator of pre-salt fields, for example, is a step in the right direction. Regular bidding rounds for exploration blocks are also an area for improvement, as they create predictability in the sector. A re-designed local content policy, which realistically takes into account the capabilities of the Brazilian supply chain, is also key for growth. As a well-known statesman once said, “a good crisis should never go to waste.” Pietro Ferreira, Regional Analyst (South America) Email pietro.ferreira@the-eic.com December 2015

EIC Monitor

Contract awards on Statoil’s Johan Sverdrup development have dominated activity in the Norwegian North Sea, where Statoil has awarded two EPC contracts for work on installing the land-based power supply to the platform. Statoil has also awarded a further Subsea/SURF contract to FMC Technologies to supply subsea trees, wellheads, templates and control systems for the development.

Despite rate of contract awards stabilising, significant challenges remain

Levels of contracting activity in the oil and gas industry have remained low as the impacts of the oil price decline are still felt across the globe. The number of major contract awards across the global oil and gas industry has steadied during the last quarter (Q3: Jul-Sept 2015), increasing by just one contract from 114 in Q2 2015 to 115 contracts in Q3 2015, but continues to account for a major decline year-on-year with a 33% decrease from 172 contract awards in Q3 2014.

Elsewhere, the number of EPC contract awards has dropped significantly, while the number of front-end engineering & design (FEED) awards has increased, with projects in Australia and Malaysia moving forward. In Malaysia, state-run operator Petronas has appointed Ranhill Worley, Aker Solutions, MMC and Petrofac-RNZ in a four-way competitive FEED for its scaled-back Bokor Phase III shallow-water EOR development. In Australia, operator Woodside has placed four FEED awards in Q3 2015, two for subsea systems on its Browse floating liquefied natural gas (FLNG) project and another two for subsea work on its Greater Enfield development, both offshore Western Australia. A further FEED contract has been awarded for the onshore pipelines on Origin Energy’s Halladale, Black Watch & Speculant (HBWS) gas field development, offshore Victoria. Johan Sverdrup living quarters - Statoil ASA

Upstream In Q3 2015, a total of 46 major contracts (EPC, FEED and Subsea/SURF) were awarded across 29 upstream developments, decreasing 13% from 53 awards in Q2 2015, and 6% from 49 contract awards in Q3 2014. A total of 18 EPC contracts, 15 FEED contracts and 13 Subsea/SURF contracts were awarded.

Midstream In Q3 2015, a total of 31 major contracts (EPC, FEED and pre-FEED) were awarded across 27 midstream developments, decreasing 3% from 32 awards in Q2 2015, and 44% from 55 contract awards in Q3 2014. A total of 24 EPC contracts, 4 FEED and 3 pre-FEED contracts were awarded.

The UK and Norway have been hotspots of activity in Q3 2015, with a total of 12 contracts awarded on North Sea projects. Activity has ramped up on Maersk Oil’s Culzean HPHT Gas & Condensate Field Development after the UK Government approved the project in August 2015. Since then, three engineering, procurement & construction (EPC) contracts have been awarded for the construction of a floating, storage and offloading unit (FSO), topsides, and the jackets for both the central processing facilities platform and the utilities/living quarters platform. A further subsea umbilicals, risers and flowlines (SURF) contract has also been awarded for a gas export pipeline.

The US and Saudi Arabia dominated midstream activity this quarter, accounting for a total of 10 contracts. In Saudi Arabia, state-run operator Saudi Aramco awarded EPC contracts for three work packages on its Al Fadhili gas plant project, which will process sour gas from the onshore Khursaniyah and offshore Hasbah fields. Bahrain Petroleum Company has awarded a further two EPC contracts for onshore and offshore work on its New Arabia pipeline, which will transport oil from the Abqaiq plant in Saudi Arabia to Bahrain.

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December 2015

EIC Monitor UK Wind Turbine Contracts In Q3 2015, a total of four wind turbine supply contracts were awarded for three onshore and one offshore wind development, decreasing 64% from 11 awards in Q2 2015, and decreasing 33% from six contracts in Q3 2014. One contract was awarded in England, one in Scotland and one offshore.

EPC contracts have been awarded on three pipeline projects in the US, one to build six gathering terminals for Energy Transfer Partners’ Dakota access pipeline in North Dakota; one to install four large low-temperature storage tanks for Phase 2 of Sunoco Logistics Partners’ Mariner East, Phase 2 NGL pipeline; and a turnkey contract to carry out the Zone Three Capacity Enhancement of Tallgrass Energy’s Rockies Express pipeline. In the US, a further two contracts (one FEED and one EPC) have been awarded to Bechtel for work on LNG export projects.

Turbine manufacturer Siemens secured two UK wind turbine supply contracts in the last quarter, one to supply DONG Energy with 91 6MW turbines for its Race Bank offshore wind farm, and one to supply Community Windpower with 19 SWT-3.2-113 turbines for its Wester Dod (Aikengall II Extension) wind farm, East Lothian, Scotland.

Downstream In Q3 2015, a total of 38 major contracts (EPC, FEED and PMC) were awarded across 33 downstream developments, increasing 33% from 29 awards in Q2 2015, but decreasing 44% from 68 contract awards in Q3 2014. A total of 26 EPC contracts, 6 FEED contracts and 6 PMC contracts were awarded. Downstream has been the strongest performing area of the industry in terms of contracting levels, with the majority of growth coming from EPC contract awards. In Q3 2015, Kuwait has been a hotspot of activity, where Kuwait National Petroleum Company has awarded EPC contracts for five work packages on its AlZour refinery.

The remaining two UK wind turbine orders in Q3 2015 were placed with Gamesa and Enercon. The former will supply nine G80 2MW turbines to E.ON’s Ovenden Moor repowering project, near Bradford, while German manufacturer Enercon will supply three 2.3MW E-70 turbines to Infinergy’s Furness (Standish Cote) wind farm in Ulverston.

The US has also been a hub of downstream activity, accounting for one FEED and six EPC contracts this quarter as shale gas production continues to spur growth in the construction and expansion of chemical facilities in the country. Contractor CB&I secured a duo of contracts in the US, one for FEED work on the Port Arthur ethane cracker in Texas, and one for EPC work on the LACC ethane cracker in Louisiana. A further five EPC contracts have also been awarded.

Thermal and Nuclear In Q3 2015, a total of 68 major contracts were awarded across 55 thermal and nuclear developments, a decrease of 24% from 90 contract awards in Q2 2015, and decrease of 36% from 106 contract awards in Q3 2014. A total of 36 engineering, procurement & construction (EPC) contracts, 30 original equipment manufacturer (OEM) supply contracts and two project management consultancy (PMC) contracts were awarded.

US power projects boom in the face of global slump in Q3 2015 The level of contracting activity in the power industry has dropped significantly in the last quarter with declines in both the global thermal and nuclear industries and the UK wind market. The number of major contracts (EPC, OEM Supply and PMC) awarded across the global power industry during the last quarter (Q3: Jul-Sept 2015) has continued to drop, decreasing 26% from 103 in Q2 2015 to 76 contracts in Q3 2015, and decreasing 32% from 112 in Q3 2014. www.the-eic.com

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December 2015

EIC Monitor The US continues to dominate contracting activity in the global power sector, accounting for a total of 17 contracts – nine EPC and eight OEM supply contracts – in Q3 2015. Over half of these contracts have been awarded on new build gas plants as US operators continue to take advantage of cheap, abundant shale gas. Of note, contracting activity in the country has been focused on a number of gas-fired power plants under construction in areas close to the Appalachian Basin, home of the Marcellus, Utica and Devonian shales.

A further six contract awards were made in the US in the last quarter on a number of upgrade, conversion and transmission projects. India and Qatar have also been hotspots of activity, together accounting for 11 contracts in Q3 2015. Activity in India has been dominated by OEM supply contracts, with electrical equipment ordered from Alstom for the Neyveli Power Plant in Tamil Nadu, from Crompton Greaves for the Green Energy Corridor and Grid Strengthening project, and from Larsen & Toubro for the Odisha Distribution System Strengthening project. Nuclear Power Corporation of India has placed two orders for reactor equipment for its Kudankulam Nuclear Power Plant Expansion in Tamil Nadu to Russian firms Izhorskiye Zavody and AEM Technology.

In Ohio, NTE Energy has appointed an EPC contractor for its proposed gas-fired 525MW Middletown Energy Centre, located in Butler County, and placed three equipment supply contracts for a gas turbine, a steam turbine and a heat recovery steam generator. Also in the region, PSEG Fossil has contracted GE Energy to supply the gas turbine for its 540MW Sewaren 7 Generating Station in Woodbridge, New Jersey. In neighbouring Pennsylvania, both Invenergy and Moxie Energy have appointed EPC contractors for the Lackawanna Energy Centre (Jessup) and Freedom Generation Plant (Luzerne County) respectively.

There was just one EPC contract award in India, with Toshiba appointed to build the Harduaganj Coal Fired Power Plant Expansion in Uttar Pradesh. In contrast, all five contracts awarded in Qatar in the last quarter were for EPC work. Qatar General Electricity & Water Corporation awarded three contracts – two to Siemens and one to Larsen & Toubro – to supply and install substations for Phases 11 and 12 of its T&D Qatar Transmission Programme. The same operator awarded a further two EPC contracts in Q3 2015, for work on its Facility D Independent Water & Power Plant (IWPP), located 15km south of Doha. Samsung C&T has been appointed to build the proposed 2.5GW combined-cycle power plant at the site, while Acciona Agua © 2003-2015 Shutterstock, Inc has been contracted to build the 130 million imperial gallons per day (MIGD) desalination plant.

Also in Luzerne County, Areva has secured a major contract to become the Engineer of Choice for PPL Corporation’s proposed Bell Bend extension to the Susquehanna Nuclear Plant. Over on the West Coast of the US, GE Energy secured a contract to supply five combustion turbines for NRG Energy’s Carlsbad Energy Centre in San Diego County, California, while ARB has been appointed as the turnkey EPC contractor for the same project. Also in California, GE Energy was awarded another equipment supply contract for Southern California Edison’s Mountainview Generating Facility Upgrade project.

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Data is sourced from the EICDataStream online project database, which tracks projects proposed or under development in the global energy industry. EIC Monitor is published on a quarterly basis.

December 2015

New Members

New EIC Members New Global Member

New Global Member

Grosvenor House 69 London Road Redhill, Surrey RH1 1LQ Tel +44 (0)1737 774 155 Email hughesp@bv.com Web www.bv.com

Jubilee House, The Drive Great Warley, Brentwood Essex CM13 3FR Tel +44 (0)20 8418 7950 Email jsammut@pg-global.com Web www.pg-global.com

Black & Veatch

PG Global Resources

The Nominated Representative is Mr Peter Hughes, Business Development Director. Black & Veatch consults, delivers and manages critical human infrastructure in water, energy and telecoms. What sets Black & Veatch apart is the ability to support every point in the lifecycle of clients’ assets – from early involvement in projects and programmes to design, build and asset management. Black & Veatch’s professionals are forward thinking. So finding the answers to clients’ needs always starts with a conversation about the outcome customers want. By understanding clients’ business and being a trusted partner, Black & Veatch can challenge the norm by bringing innovation to the agenda.

The Nominated Representative is Mr James Sammut, Global Operations Director. PG Global has quickly become one of the leading specialist recruitment companies, providing international coverage and support around the globe within the oil and gas, energy and marine industries. Clients rely on our intelligent and dedicated approach to assist and resolve their recruitment needs. PG Global believes in creating personalised solutions tailored to meet with clients’ needs and offers a full end-to-end staffing solution, including, but not limited to: personnel manning, payroll management, visa and immigration support, flights and logistics and HR services that assist your business model. PG Global has structured its business to incorporate the highest level of technical and industry based knowledge, coupled with the ability to communicate effectively. The company has an enviable reputation for delivering a service totally in tune with the needs of both clients and candidates.

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Master Flo Valve Co (UK) Ltd The Master Flo Building Blackness Road Altens Industrial Estate Altens, Aberdeenshire AB12 3LH Tel +44 (0)1224 878 999 Fax +44 (0)1224 878 989 Email kmcritchie@masterflo.co.uk Web www.masterflo.com

New Global Member

Xodus Subsea Ltd

Cheapside House, 138 Cheapside London EC2V 6BJ Tel +44 (0)20 7246 2990 Email frank.drennan@xodussubsea.com Web www.xodussubsea.com

The Nominated Representative is Ms Katie McRitchie, Inside Sales Supervisor - Europe. Master Flo Valve Inc is a technological leader and world-class manufacturer of surface and subsea chokes, speciality control valves and supporting actuation. Privately-owned, proudly independent, and upholding a vision of excellence, the company structure offers the flexibility to adapt to everevolving market needs and developments, quickly and efficiently, providing you with the level of commitment you expect from a critical component supplier. Established in 1979, Master Flo Valve’s goal has been to design and produce the highest quality chokes and control valves available in the industry, only equaled by its innovative engineering, creative R&D and outstanding quality assurance programmes supporting the complete Master Flo product offering. The Edmonton, Alberta, Canada facility of over 90,000 square feet located on eight acres of land houses the company’s engineering, manufacturing, and R&D. This world-class facility embodies Master Flo Valve’s commitment to product development and manufacturing excellence, playing a key role in its ability to maintain its position as an industry leader in choke technology. www.the-eic.com

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The Nominated Representative is Mr Frank Drennan, Managing Director. The company brings together expertise from Xodus Group, Saipem and Chiyoda to form a uniquely skilled and experienced workforce with the ability to deliver the world’s most complex subsea developments. A subsea engineering company whose expertise is informed by construction techniques and new technology from a world-leading contractor, without being exclusively tied to one contractor. Benefits come from impartial, robust recommendations with accurate cost estimates that lead to fully informed decision-making. Xodus Subsea engineering services take a unique approach to technical subsea challenges by bringing together Xodus Group’s front end engineering capability, Saipem’s turnkey engineering, procurement, construction and installation expertise and Chiyoda’s experience in managing large scale international projects. The company offers a wealth of technical subsea expertise and also has access to more than 1,000 multidiscipline engineers through the partner companies. Areas of expertise include: multidisciplined field development; deepwater engineering; pipelines, trunklines/ export systems; subsea processing and riser systems. 7

December 2015

MEMBER NEWS The Black & Veatch and MWH Treatment (MWHT) joint venture, MBV Energy Recovery, will execute a £87 million waste-to-energy project in Cheshire, UK. The win is a renewable energy plant, developed by CoGen UK, at Ince Park Resource Recovery Centre. The plant will export 21.5MW of clean, affordable power, utilising over 150,000 tonnes of material that would otherwise go to landfill. Funding for the project is being provided by the Bioenergy Infrastructure Group, a new investment entity that is building a portfolio of waste-to-energy assets. The group comprises Infracapital, Aurium Capital Markets, Foresight Group and Helios Energy Investments. MBV Energy Recovery, a 50:50 JV will deliver the Ince plant on an engineer, procure, construct (EPC) basis. The UK market for small-scale, waste-to-energy plants is strong and the JV believes Ince will be the first of several similar wins between now and spring 2016.

Scott Aitken, Managing Director, Black & Veatch’s water operations in Europe, said: “We are excited about Ince and the opportunities on which the JV is focusing. This project demonstrates our ability to bring together global power generation expertise, including renewable energy leadership and proven EPC capabilities for seamless delivery.”

Black & Veatch has been involved in more than 200 gigawatts of power generation projects worldwide. Scott Aitken, Black & Veatch The JV’s gasification projects will help address demand for energy in the UK in an environmentally responsible manner using waste wood, or other refuse-derived fuels. The work will also help meet the UK’s landfill diversion and carbon reduction objectives. For more information visit: www.bv.com

E2S Warning Signals will be attending MARINTEC China, held in Shanghai from 1-4 December 2015. E2S will be present on Stand N3H41h in the UK pavilion and will be launching two new ranges of hazardous area signals with ATEX and IECEx approval. The stand focuses on explosion proof and intrinsically safe warning signals developed to meet the challenging needs of the oil, gas and marine industries. The centrepiece of the stand is a preview of the new premium STEx stainless steel explosion proof warning signal range featuring a corrosion proof 316L steel enclosure suitable for the most aggressive environments. On display for its official launch will be the new GNEx signal range of GRP enclosure devices ATEX & IECEx approved for Zone 1, 21; the GNExB1 and B2 beacons and the J2 junction box. Also on show is the new D1x range, intended for NEC/ CEC Class I and Class II Division 1 and Zone 1 & 20 applications. For more information please visit: www.e2s.com

Black & Veatch’s renewable energy plant at Ince Park, Cheshire

Black & Veatch

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MEMBER NEWS

Mirage Machines, an Acteon company, has announced the launch of a branch office in Australia. Based in Perth, Western Australia, Mirage Machines is now supplying its full range of onsite machining technology, including industry leading flange facing machines, pipe cutting equipment and diamond wire cutting machines. Mirage has invested a significant, six-figure sum to hold a wide range of equipment in Australia for both sale and rental. This will support the extensive requirements across the energy sector in Australia, including the construction, commissioning and maintenance of some of the biggest LNG production facilities in the world. The opening of the new office in Australia follows the 2014 launch of the subsidiary company Mirage Subsea Inc in Houston, Texas, which was established to better serve Mirage customers in North America, particularly those involved in subsea operations. In 2006 Mirage joined the Acteon Group, a global oil and gas conglomerate, providing strong foundations for international growth. Full product information, including case studies, buyer’s guides and animations of the core product range can be found on the Mirage Machines website. Please visit: www.miragemachines.com

Energy recruitment specialist NRL has been named the Recruitment Company of the Year 2015 by The Association of Professional Staffing Companies at a gala dinner in Royal Bank of Scotland’s offices in London last month. As a result of this and the company’s recent growth in the energy market, NRL is expanding its service offering throughout the UK by increasing its office space in Glasgow.

The NRL Glasgow branch has relocated to a new state of the art, purpose built suite in Glasgow city centre. This prime location will allow NRL to continue with its growth ambitions and enhance the provision of its expert service to clients and candidates in the region. With a turnover of £172 million in 2014, the company’s performance was also recognised when NRL was placed in The Sunday Times Grant Thornton Top Track 250 as well as being named as one of the London Stock Exchange’s ‘1000 companies to inspire Britain’, an annual celebration of some of the fastest growing and most dynamic enterprises in the UK. For more information please visit: www.nrl.co.uk

Online Electronics’ award winning MEG ARTS® subsea analysis and sampling system has successfully completed its first operation during the summer of 2015 in a pipeline project in the UK Continental Shelf. The project recommissioned a gas export line following maintenance. A conditioning pig train was run from the production facility to a sea bed manifold that connected to an operating gas line. Deployed from a construction support vessel, MEG ARTS® was placed next to the manifold and connected by hose to a vent valve. The system operated unattended, monitoring and recording the density, temperature, and pressure of the received fluids. The line fill of water from the pressure test was followed by MEG (mono-ethylene glycol) in the pig train. Samples of MEG were captured according to limits defined for the project. During transit of a pig train there was some mixing of water with MEG. It was important to know that the quality of MEG confirms that the line is sufficiently dry and ready for production.

The system was retrieved to the support vessel and the samples were recovered. The data clearly showed the change from sea water and different qualities of MEG as each pig was received. Both the construction company executing the project and the operating company were pleased with the performance of the system and quality of pipeline data that it had not been practical to obtain before the availability of MEG ARTS®. The system is the winner of the Pipeline Industry Guild Technical Awards; Subsea Pipeline Technology Award 2015. For more information please visit: www.online-electronics.com

Amphenol Rhino Series single pole high power connectors are now available from PEI-Genesis, one of the world’s fastest assemblers of precision connectors. These connectors combine the benefits of field proven MILDTL-38999 Series III circular connectors with low resistance hyperbolic RADSOK® contacts, extending the boundaries of high power connector technology. Rhino 38999 connectors satisfy market requirements for high power and voltage applications in harsh environments. With IP69K sealing, an anti-decoupling ratchet mechanism, superior EMC performance and RoHS compliant Black Zinc Nickel plating – Rhino 38999 connectors ensure a reliable connection even under high vibration. Designed to meet the latest military and industrial specifications, Rhino 38999 connectors also meet stringent safety requirements. This makes the Rhino series perfect for applications including vehicular, aerospace, industrial automation, mining, offshore, mass transit, communications and other harsh environments. @TheEICEnergy

Pressure Tech has announced a strategic alliance and distribution agreement establishing Sea and Land Technologies Pte Ltd as the exclusive Asia Pacific distributor for Pressure Tech’s diving product range. As a result of the agreement, Pressure Tech’s products will be available throughout the Asia Pacific region including Singapore, Malaysia, Indonesia, Brunei, Thailand, Vietnam, Philippines, Laos, Cambodia, Myanmar and Australia. Pressure Tech provides pressure regulators which are a critical component to any fluid control system, offering high quality products with all design and manufacture performed within its UK facilities in Glossop, Derbyshire.

Balance of plant areas typically include the turbine hall, water treatment and cooling systems. Approval for Rotork IQ3 technology brings the benefits of increased functionality to the operation of valves and dampers in these areas. Secure, non-intrusive infrared setup and data transfer eliminates the need to remove electrical covers for commissioning once the actuator is site wired. This feature permanently protects internal components from the time the new actuator leaves the factory, enhancing the traditional double-sealed enclosure design that has been a standard feature of Rotork actuators for nearly 50 years. Powerful operational data logging is another standard feature of IQ3 actuators, providing comprehensive diagnostic information that can be used for preventative maintenance and asset management. This will assist EDF Energy with its plans for life extensions in its existing nuclear fleet. Visit: www.rotork.com

Siemens

PEI-Genesis

PEI-Genesis assembles and ships the Rhino series globally in 48 hours with no minimum order quantity. More information on the Rhino series can be found at: www.peigenesis.com

Following a Modest Integrity Assessment (MIG), EDF Energy has approved Rotork IQ3 non-intrusive intelligent valve actuators for balance of plant applications within its nuclear power stations. EDF Energy operates nuclear power stations around the world, including eight in the UK, where it hopes to build four more reactors at two sites.

Siemens is to supply, install and commission 56 wind turbines for the Galloper wind farm (GWFL) off the south east coast of England. The owners of the offshore wind power plant are RWE, UK Green Investment Bank, Macquarie Capital and Siemens Financial Services (SFS), each with a 25% stake. The plant’s 336MW capacity will be sufficient to supply up to 336,000 British households with clean power. Siemens will also be responsible for servicing the wind turbines for a 15 year period. The total investment cost is £1.5 billion.

The Rotork IQ3 non-intrusive intelligent valve actuator

Since formation in October 2000, Pressure Tech has developed an extensive range of high quality brass and stainless steel pressure regulators for use on various gas mix applications including cleaned and degreased for oxygen service. Working closely with customers, and listening to their specific needs, has helped ensure the design of products that provide accurate control to systems, with long term reliability in service. For more information please visit: www.pressure-tech.com www.the-eic.com

MEMBER NEWS The projects involve work on the Culzean development – one of the largest gas discoveries in recent years in the UKCS – and the continuation of provision of innovative technology across Maersk Oil’s Central North Sea operations. The Culzean project involves TWMA providing drilling waste processing and waste management services for five years with the option of two one-year extensions.

Galloper wind farm

The company is working on various levers to reduce the cost of offshore wind power still further. As early as 2020, Siemens aims to have technologies available that will make it possible to generate electric power at a cost of less than 10 Euro cents per kilowatt hour. Improvements will be made not only to the wind turbines themselves; the company is also focusing on innovations in connecting the offshore installations to the grid and in servicing. Siemens is due to start installing the 56 SWT-6.0-154 wind turbines for the Galloper project in May 2017. The wind power plant is scheduled to be fully operational by March 2018. Prompt completion is necessary so that the offshore project can still qualify for remuneration with ROC (Renewable Obligations Certificates) of the 2.5 round for public tenders. For more information please visit: www.siemens.com

TWMA has been awarded two major contracts, building on a strong relationship with Maersk Oil North Sea UK (Maersk Oil) spanning more than a decade.

Delivered using a 950kW electric drive within TWMA’s proprietary TCC RotoMill® and EfficientC® equipment, the Culzean project will also see TWMA recruit up to 20 personnel to support the existing workforce within the engineering, commissioning and operations phase. The second contract will provide existing drilling waste processing and management services for Maersk Oil’s Central North Sea projects. The new agreement will continue for the next three years, with the option for two one-year extensions. For more information please visit: www.twma.co.uk

Voith has successfully completed retrofit projects for three gas turbines in Hail Power Plant, in Saudi Arabia, which is located 600 kilometres north of Riyadh. A range of technical troubles in the power plant were solved thanks to a Voith starting system that offers a complete system solution, consisting of a torque converter, motor, and all required accessories that are factory mounted on a common base. It is equipped with Voith torque converter model EL 7.5 YFG 2.2 rated with 1,700kW at 3,550 rpm which is powerful enough to provide the breakaway torque of the gas turbines. Voith supplies torque converters to gas turbine manufacturers to start gas turbines ranging in power from 20 to 270MW. For more information please visit: www.voith.com

AVEVA has announced that Techflow Engineering, the 3D modelling and detailed engineering service company, has made a major investment in AVEVA Bocad structural steel design software. The agreement will see Techflow’s team of detailers expanded to give customers a greater offering for complex projects, including the offshore and AEC market.

Richard Brotherton, VP Sales, fabrication sector, AVEVA, said: “Techflow’s investment in AVEVA Bocad gives them the ability to work on large, complex projects in-house, a key differentiator in the fabricator market. AVEVA Bocad offers faster and more efficient steel detailing and creation of fabrication deliverables. We’ve seen many examples where our customers have saved 30-40% on overall project time. Techflow’s first project with AVEVA Bocad will be an offshore platform to be constructed in Dubai.” AVEVA Bocad is integrated with AVEVA’s solution portfolio. This integration will enable Techflow to benefit from enhanced collaboration between the design model and the detail design model. This will provide more control, visibility, change management, communication and clash checking that can reduce costly errors, rework and schedule overruns. Visit: www.aveva.com @TheEICEnergy

Events Diary

UK, Overseas & Training November 2015 25 Business Presentation Opportunities with ABB 26 Industry Overview Fundamentals of Oil & Gas

EIC Rio de Janeiro EIC Rio de Janeiro

December 2015 1 UKCS Showcase Collaboration Aberdeen 2 Technical Workshop Introduction to Shale Gas EIC London 2 Business Presentation Opportunities with Queiroz Galv達o Restaurante do Empresario, Rio 3 Industry Overview Fundamentals of Oil & Gas EIC London 3 HSE Training ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 8 Export Showcase Oil & Gas Opportunities in Russia EIC London 8 Technical Workshop Introduction to Energy from Waste Lakeside EfW, Slough 9 Management Course Tendering for Success Rothera Group, EIC Teesside 9 Business Presentation Opportunities with Petrofac Jumeirah Emirates Towers Hotel, Dubai 10 Industry Overview Fundamentals of LNG EIC London January 2016

14 Industry Overview Fundamentals of Natural Gas Processing EIC London 19 Management Course Negotiation Skills EIC London 19 UKCS Showcase Collaboration Ardoe House Hotel, Aberdeen 20 Management Course Liquidated Damages Four Points by Sheraton, Dubai 26 Contractors Showcase Southern Region Update EIC London 21 Industry Overview Fundamentals of Nuclear EIC London 26 Industry Overview Fundamentals of Refining & Petrochemicals EIC London 26 Business Presentation Opportunities with SBM Offshore Dusit Thani Hotel, Dubai 28 Regional Showcase Opportunities in Canada Houston

February 2016 4 Industry Overview Fundamentals of Oil & Gas 2 Sector Showcase Global CCS Opportunities 9 Industry Overview Fundamentals of Subsea 10 Management Course Presentation Skills 18 Technical Workshop Introduction to FPSOs 18 Corporate Entertainment EIC Middle East Golf Tournament 2016 23 Technical Workshop Introduction to Petroleum Engineering

EIC London EIC London EIC London EIC London EIC London The Els Club, Dubai EIC London

March 2016

15 Industry Overview Fundamentals of Oil & Gas 16 Industry Overview Fundamentals of Refining & Petrochemicals 17 Corporate Entertainment EIC Annual Welsh Showcase and Dinner 22 Sector Showcase Opportunities in Iran Post Sanctions

EIC Houston EIC Houston Cleddau Bridge Hotel, Pembroke Dock Yas Island Rotana, Abu Dhabi

June 2016 2 Corporate Entertainment Northern Region Golf Day 2016

Rockliffe Hall Hotel, Hurworth on Tees

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

@TheEICEnergy

December 2015

Events Diary

Exhibitions & Delegations 2016

Status

25-29 January

Overseas Delegation to Papua New Guinea Booking Now

Overseas Delegation to Egypt

Booking Now

31 January- 4 February

1-5 February

Overseas Delegation to the Philippines

8-11 February

Overseas Delegation to Turkey

Booking Now

22-26 February

Overseas Delegation to South Korea

Booking Now

6-10 March

Overseas Delegation to Algeria

Booking Now

7-10 March

Overseas Delegation to Thailand and Malaysia

20-23 March

Overseas Delegation to UAE and Oman

tbc March

Overseas Delegation to Brazil

tbc March

Overseas Delegation to Japan

4-7 April

Overseas Delegation to Nigeria

Booking Now

4-8 April

Overseas Delegation to Colombia

2-5 May

Offshore Technology Conference (OTC)

Fully Booked

Houston

tbc May

Overseas Delegation to Indonesia

tbc May

Overseas Delegation to Iran

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

National Events 2016

17 May

22-23 November

@EICOverseas

Status

EIC Connect Middle East Abu Dhabi

Booking Now

EIC Connect Oil & Gas Manchester

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

ONS

www.the-eic.com

AUG â&#x20AC;&#x201C; 1 SEPT 20 29 STAVANGER â&#x20AC;&#x201C; NORWAY 16 amy.ford@the-eic.com

@TheEICEnergy

December 2015

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Overseas Delegation to Algeria New Date 6-10 March 2016 #EICALG16 The EIC is organising an oil and gas trade delegation to Algeria. Delegations are an excellent introduction to a new market in a supportive environment and the perfect way to strengthen existing business relationships. Delegates will have the opportunity to attend group meetings with key local players as well as briefing meetings from qualified speakers with in-market experience and the opportunity to meet with local companies.

Upstream developments like the West Mediterranean Deep Water and North Alexandria concessions, which hold estimated reserves of 5 trillion cubic feet of gas and 55 million barrels of condensates, have recently seen major EPC contract awards and several downstream projects are currently underway. Also, conventional power generation as well as renewable energy schemes are proposed in order to cope with rising demand. Now is the time to engage in this market and establish client relationships. To secure your place on the delegation submit the application form to: amy.ford@the-eic.com

Algeria is the largest natural gas producer in Africa, and is among the top three oil producers within the continent. The industry is dominated by Sonatrach who are proposing to make investments of approximately £90 billion between 2015 and 2019. For more information please contact: deanne.lintorn@the-eic.com

Overseas Delegation to Turkey 8-11 February 2016 #EICTURKEY16 Situated between the Middle East and the Caspian Region to the east, with over 75% of global oil and gas reserves, Turkey plays a crucial role in linking supply and demand.

Overseas Delegation to Papua New Guinea 25-29 January 2016 #EICPNG16 Papua New Guinea sits atop vast, untapped reserves of natural gas. Exploration and production activities are taking place to monetise these vast reserves. Oil and gas companies, such as ExxonMobil and Total, are in the midst of extracting these resources and working to develop major LNG terminal projects for export to Asian markets. PNG’s proven hydrocarbon reserves consist primarily of natural gas (440 bcm), followed by oil (0.660 billion barrels) and gas condensates (0.262 billion barrels). The substantial gas/ condensate discoveries in recent years have increased global awareness of the PNG gas market and hence investment in LNG infrastructure continues to increase. The US$18 billion 9 mmtpa PNG LNG plant project by the consortium led by ExxonMobil and Oil Search was the first LNG project in PNG. The first deliveries of LNG to Taiwan, China and Japan were completed in March 2014. ExxonMobil and the PNG national oil company have already begun talks to expand this facility to add a third train. With its close proximity to Asia, and the PNG government’s strong commitment to the industry, the outlook for PNG’s oil and gas industry is positive. For more information please contact: camilla.tew@the-eic.com

The delegation coincides with the GREAT Summit organised by UKTI which aims to bring the NOCs of Turkey, Azerbaijan and Kazakhstan together with ‘best in class’ British expertise in the areas of exploration, reservoir, well and drilling management, field integrity and asset management, gas utilisation and finance/commercial/ project management to discuss current/future development plans and opportunities. For more information or to book contact: mark.gamble@the-eic.com Overseas Delegation to South Korea 22-26 February 2016 #EICSK16 South Korea was the world’s ninth largest energy consumer in 2014, according to estimates from the BP Statistical Review of World Energy 2015. Korea is one of the top energy importers in the world and relies on fuel imports for about 97% of its primary energy consumption because the country lacks domestic energy reserves.

Overseas Delegation to Egypt 31 January-4 February 2016 #EICEGYPT16 The EIC in partnership with UKTI is organising an oil and gas overseas trade delegation to Cairo and Alexandria in Egypt. With proven oil reserves of 4.4 billion barrels and proven gas reserves of 77 trillion cubic feet, Egypt is the largest nonOPEC oil producer and the second-largest dry natural gas producer in Africa. As production has stagnated over the last few years and consumption has increased rapidly, the formerly hydrocarbon exporting country has to advance oil and gas developments in order to meet domestic market growth. www.the-eic.com

@TheEICEnergy

South Korea ranks among the world’s top five importers of liquefied natural gas, coal, crude oil, and refined products. Despite its lack of domestic energy resources, South Korea is home to some of the largest and most advanced oil refineries in the world. The increased sophistication of the South Korean refining market is likely to increase capacity utilisation, which is already high for some refineries. As a result, South Korea is expected to remain a leading refiner in Asia, with significant exports to China, Singapore, Japan, and Indonesia. For more information please contact: camilla.tew@the-eic.com 14

December 2015

EIC UK Events

UK Events

Sector Showcase Global CCS Opportunities Tuesday 2 February 2016 EIC Conference Suite, London Via EICDataStream, the EIC is tracking global CCS projects with a combined capex of over US$53.7 billion, offering UK suppliers multiple business prospects for experienced personnel, tried and tested equipment and new technologies. The EIC, the Science Innovation Network (SIN) and the Carbon Capture & Storage Association (CCSA) have identified several ‘hot-spots’ for CCS technologies globally and will be bringing a delegation from these hotspots together to present the current and future opportunities in the sector. Further details will be available shortly, in the meantime, please register your interest to be kept up to date with plans as they are available. Register your interest: jennifer.hole@the-eic.com

Forthcoming Events

UKCS Showcase Collaboration Tuesday 19 January 2016 Ardoe House Hotel, Aberdeen Collaboration has been a consistent industry theme since the publication of Sir Ian Wood’s UKCS Maximising Economic Recovery Review. The second in the series of our UKCS Showcases will focus on the changing landscape of the oil and gas supply chain by outlining how operators and the supply chain are beginning to collaborate and how to do it successfully. A panel of operators, contractors and relevant professional bodies from across the North Sea oil and gas sector will discuss the opportunities around this topic. Learn from an industry success story as Stork and Emerson (both EIC members) showcase their recent effective collaboration in the UKCS. The companies will provide an insight into key learnings and top tips for effective collaboration. To book on this event contact: pamela.nicholson@the-eic.com

Energy from Waste Showcase February 2016 Northern venue tbc With proof that increasing economic value is attached to a strong re-use agenda, the EIC is committed to tracking developments across this sector on a global level through our database EICDataStream. This event aims to provide an overview of the sector, bringing together a panel of speakers from some of the key players in the industry. Providing insights into how these organisations operate and the potential for the supply chain, this event will be helpful to those who are looking at this as a new sector to complement their current portfolio and will also act as an update for those who already work in the arena. Further details will be available soon. Register your interest: jennifer.hole@the-eic.com

Southern Region Contractors Update Showcase Tuesday 26 January 2016 EIC Conference Suite, London Further to the success of the same event earlier this year, we will be running another Contractors Update in January 2016. It brings together a panel of speakers from major EPC contractors across the region to present their portfolio of projects, address challenges in the current climate and discuss what their supply chain requirements are. Alongside the presentations, there will be one-2-one meetings, and a fantastic opportunity for networking. Register your interest: jennifer.hole@the-eic.com CALLING ALL EIC MEMBERS Southern and Scottish Region Committees Would you like the opportunity to represent your company and help shape the future direction of the EIC within your region? If so, you can nominate yourself or a colleague for a place on the EIC Southern or Scottish Region Committee.

ABB Ltd, BOC Ltd, Carpenter & Paterson Ltd, Chapman Freeborn Air Chartering Ltd, Delta Controls Ltd, DHL Energy Sector, Dresser-Rand Company Ltd, Heatric (Chair), Koso Kent Introl Ltd, MTL Instruments Group, Petrofac Engineering Ltd, Pipe Supports Ltd, Siemens Industrial Turbomachinery Ltd and Tenaris Global Services UK Ltd.

The EIC Regional Committees meet four times a year at various locations across the region, with representation from a wide range of disciplines. Committee meetings enable members to discuss market trends and industry news; feedback on regional activities; suggest topics and speakers to include in our events programme and also afford plenty of networking opportunities. Being part of the Committee provides an excellent platform to raise your personal and company profile.

Current members represented on the Scottish Region Committee are as follows:

Current members represented on the Southern Region Committee are as follows:

For further details contact jennifer.hole@the-eic.com (Southern) or pamela.nicholson@the-eic.com (Scottish)

ABB Ltd, Babcock Marine (Rosyth) Ltd, Bodycote Surface Technology Ltd, Digital Applications International Ltd, Hill International (UK) Ltd, Honeywell Control Systems Ltd, Nautronix Limited, Odfjell Drilling UK Ltd, Safehouse Habitats (Scotland) Ltd and Siemens PLC.

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

@TheEICEnergy

December 2015

EIC Training Services

www.the-eic.com

@TheEICEnergy

December 2015

EIC Training Services

Training Services

Can natural gas rise to meet energy demands?

Natural gas is the cleanest and most efficient of the fossil fuels and the growth in its use over the last 20 years has been significant. Since 1982 global production of natural gas has doubled and gas is now replacing coal and oil in many applications, as a result reserves of natural gas have almost doubled since 1993.

Industry Overview

Fundamentals of Natural Gas Processing Thursday 14 January 2016 EIC London

Globally countries are now exploiting sources of natural gas which at one time were seen as detrimental to oil production, such is the recognition of the value of natural gas that vast quantities of liquefied natural gas are being shipped around the world to meet ever-increasing demand for clean fossil fuel. Natural gas now offers a primary benefit as a means of providing low carbon emission power production to replace coal and oil fired power stations to meet the future increase in power demand until large new generation nuclear power is operational. The clear benefit of natural gas is its ability to respond rapidly to varying power demand scenarios, something that renewables cannot achieve.

In response to continued growth and interest in the natural gas industry the EIC has introduced a new course to its training programme. The Fundamentals of Natural Gas Processing is aimed at newcomers and those with cursory knowledge and will provide a complete overview of the natural gas industry, enabling you to fully understand the fundamental issues involved. The course will be presented by Sandy Dunlop who has some 40 years experience of the natural gas industry and is currently administrator of the Gas Processors Association in Europe.

Raw natural gas is also a truly versatile raw material and offers sources of petrochemical feedstocks such as ethane and propane which are key precursors to the chemicals we require for the increasing demand in consumer products. The expected availability of natural gas from shale rock will increase indigenous sources in the UK, the experience of the USA shows that this is a key element in securing self-reliance on domestic resources.

Key topics covered: • The natural gas market • What is natural gas • The gas chain • Thermodynamics and processes • Equipment • The plant build process

Shale gas is no different to conventionally produced natural gas and thus the techniques of processing and preparing the gas for the market place can be used with confidence. Local availability of natural gas adds considerable impetus to the logic of using natural gas as fuel for power production.

To book or find out more please contact Emily or Terri. Tel +44 (0)20 7091 8611 Email training@the-eic.com

Technical Workshops

Forthcoming Training in 2016 Industry Overviews

Introduction to FPSOs Thursday 18 February 2016 EIC London

Fundamentals of Nuclear Thursday 21 January 2016 EIC London

Introduction to Petroleum & Drilling Engineering Tuesday 23 February 2016 EIC London

Fundamentals of Refining & Petrochemicals Tuesday 26 January 2016 EIC London

Management Courses

Fundamentals of Oil & Gas Thursday 4 February 2016 EIC London

Negotiation Skills Tuesday 19 January 2016 EIC London

Fundamentals of Subsea Tuesday 9 February 2016 EIC London

Presentation Skills Wednesday 10 February 2016 EIC London

If you would like further information on our courses or are interested in hosting a workshop contact: training@the-eic.com www.the-eic.com

@TheEICEnergy

December 2015

EIC Middle East News

Middle East News Office News

ADIPEC Activities last month were dominated by ADIPEC. Every year we say that it cannot get more hectic than the previous year and every year we are proved wrong. Even at a time of industry austerity however, we still continue to see a rise in attendance, with this year’s UK pavilion being the EIC’s largest ever overseas exhibition space. Saudi Arabia Also last month, a market visit to Saudi Arabia was undertaken. We visited the Saudi Arabia Oil & Gas Exhibition to meet up with member companies exhibiting, and took the opportunity to engage further with Saudi Aramco following our successful event that took place in London earlier this year.

The UK pavilion at ADIPEC toured by HMA Philip Parham with Terry Willis, centre, and ADNOC companies

Regional Comment

Shah gas field reaches full capacity The Shah sour gas development located south west of Abu Dhabi has reached full production capacity. Commissioning started in early 2015 and the field is now producing 1 billion cubic feet of sour gas per day. The project, carried out by Al-Hosn Gas, a joint venture between Abu Dhabi National Oil Company (ADNOC) and Occidental Petroleum (Oxy), has seen several major EPC contracts estimated at a total of US$10 billion. The field is expected to contribute to the UAE’s gas production for over 30 years.

We can now build on the strong relationships that have been established, with a view to Aramco participating at the next EIC Connect event scheduled for 17 May 2016. Looking ahead In December we will be hosting Petrofac at our monthly business presentation. We are also planning a presentation from SBM Offshore and a showcase featuring the latest opportunities with Iran, scheduled for March, by which time it is foreseen that the majority of the sanctions will have been lifted.

Subsea 7 to supply equipment for East Nile Delta Subsea 7 SA has been awarded a contract by Pharaonic Petroleum Company SAE to supply subsea equipment for phase 3 of the East Nile Delta project offshore Egypt. Work includes engineering, procurement, fabrication and installation of rigid spools, and installation of pipeline, umbilical and subsea structures for two development wells. Installation of the equipment is expected to start before the end of 2015.

Inbetween these events, we have our Golf Tournament scheduled for 18 February 2016, which has had an excellent take up, with only a few playing places left. However, at the time of writing, we still do not have a headline sponsor for what is our most successful event in our calendar, so if you are looking for an opportunity to improve your brand, image and profile, please contact the office for more details. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Al-Asab wins US$175 million contract in Abu Dhabi The UAE-based Al-Asab General Contracting Company has been awarded an onshore EPC contract worth US$175 million by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO). Under the contract, the company will be responsible for the installation of tie-ins at several wells in the South East Asset which comprises the Asab, Sahil, Shah and Qusahwira fields. Work is scheduled to be completed within 30 months.

Forthcoming Events Management Course

Liquidated Damages – Everything you need to know Wednesday 20 January 2016 Four Points by Sheraton, Dubai

Amal West oil field construction begins American firm GlassPoint Solar’s 1GW solar-thermal project will turn water into steam for injection into the oil field. The enhanced oil recovery (EOR) process involves heating the ground to improve the flow of heavy crude to the surface. GlassPoint is working with Petroleum Development Oman and a joint venture with Royal Dutch Shell, Total SA and the Oman Government on the project, with first production planned for late 2017.

Business Presentation Opportunities with SBM Offshore Tuesday 26 January 2016 Dusit Thani Hotel, Dubai To register your interest or to book on the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@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

December 2015

EIC Asia Pacific News

Asia Pacific News

Regional Comment

China ABB wins US$300m order to boost power capacity ABB, the power and automation technology group, has been awarded orders for critical power technologies to enable two new ultra-high-voltage direct current (UHVDC) power transmission links.

Office News

The EIC Asia Pacific team was invited to a workshop on decommissioning in the UK and Japan, and to further define areas where the UK and Japan can work together. This was one of the regular workshops that originated from the annual UK-Japan Nuclear Dialogue after the respective prime ministers signed the Civil Nuclear Co-operation Agreement.

The two 800 kilovolt (kV) links will each have the capacity to transmit 8,000MW of wind and thermal power from Shanxi to Nanjing and from Jiuquan to Hunan. The orders were booked in the third quarter of 2015.

Recently we have seen strong Japanese investment in nuclear new build in the UK, and the UK Government is keen for the complementary skills of the UK and Japan to be utilised in closer partnership for mutual benefit.

Indonesia Petagas signs up for East Java gas pipeline Indonesia’s state-owned Pertamina Gas (Pertagas) has signed a deal to transport gas via the East Java pipeline to fertiliser manufacturer Petrokimia Gresik.

The workshop in Tokyo included talks from Hitachi and Toshiba on their new build plans for the UK. There were also presentations on the latest situation at Fukushima Dai-ichi from METI, TEPCO, and the NDF of Japan. From the UK side, there was a presentation from the Nuclear Decommissioning Authority (NDA) on the latest situation in decommissioning in the UK and developments on the new build programmes. There was also a day visit to Fukushima Dai-ichi to witness the extent and progress of the decommissioning work at that nuclear power plant.

The gas, 85 million cubic feet per day (MMcfd), will come from Husky CNOOC’s fields under the development on the Madura Strait production sharing contract (PSC) in the East Java Sea. The fields are to be exploited via a floating production unit that will be designed to handle up to 175 MMcfd of gas including a maximum of 110 MMcfd from the MDA wellhead platform and 55 MMcfd from the MBH field.

The visit to Japan was followed by a similar workshop in Taiwan a few days later hosted by UKTI Taiwan. Taiwan Power Company (Taipower) and the UK’s NDA signed a Memorandum of Understanding in January 2013 to co-operate on exchange of information and support decommissioning and clean-up. The discussions between UK and Taiwan this year centred around the following topics:

Bidders for the FPU are understood to be Yinson, Bumi Armada and SapuraKencana from Malaysia, Japan’s Modec and Singapore’s Emas Offshore. The gas transportation contract will run from 2017 until 2026. Malaysia Aker wins Rotan subsea gig Aker Solutions has been awarded a contract from Murphy Sabah Oil Co Ltd to deliver the subsea production system for the Rotan deepwater natural gas development offshore Malaysia.

• Technology to reduce high level nuclear waste • Decommissioning waste amount inventory and waste containers • Remediation of contaminated soil and groundwater • The experience on the encapsulation of highly radioactive wet wastes • Geologic repository for high level radioactive waste

The delivery includes hardware for four subsea wells, a hub manifold, in-line trees, a connection system and production control system. First deliveries are scheduled for the second quarter of 2016.

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

PETRONAS subcontracts PFLNG-1 mooring Alam Maritim Resources will take part in final positioning and mooring system hook-up works for PETRONAS’ Floating LNG-1 (PFLNG-1) project.

Forthcoming Events

Business Presentation Opportunities with Petrofac E&C December 2015 date tbc EIC Kuala Lumpur

The works include flexible riser installation, precommissioning and commissioning of the pipeline, pipeline ends terminal (PLET) and riser from the KAKG platform in the Kanowit field to the FLNG.

Business Presentation Opportunities with Fluor Daniels December 2015 date tbc EIC Kuala Lumpur

Alam Maritim said that the value of the contract was RM53.5 million (US$12.4 million) and the estimated duration for the subcontract is from 15 June 2015 until 30 April 2016.

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

@TheEICEnergy

December 2015

EIC North and Central America News

North and Central America News Office News

Industry Overview

In November, EIC North and Central America welcomed INTECSEA, a global company within the WorleyParsons Group, to provide a business presentation for our members to learn about current projects and procurement opportunities with this leading deepwater engineering, project management and consultancy firm.

Regional Comment

Fundamentals of Refining & Petrochemicals Wednesday 16 March 2016 EIC Houston This one-day course will enable delegates to gain an appreciation of the fundamentals involved in the refining and petrochemicals industry. Delegates will gain insight into the key processes and commercial fundamentals behind modern day refineries and petrochemical complexes.

Our programme of events and training continues and it was pleasing to see a healthy take up of over 40 members and non-members at our Annual Sporting Clays Tournament and BBQ on 9 October. We also delivered the Fundamentals of LNG on 22 October, with a total of 10 attendees with an overwhelmingly positive response.

Mexico Round One, Phase 2 awards Three out of five shallow water, light oil and natural gas production blocks in the southeast basin of the Gulf of Mexico were awarded in October. Eni won Block 1, which contains three fields (Amoca, Mizton and Ticoalli). Block 2 was awarded to a consortium of Pan American Energy with E&P Hidrocarburos y Servicios, and contains the Hokchi field. Fieldwood Energy and Petrobal won Block 4, which has two fields (Ichalkil and Pokoch). The third bidding round, scheduled for this month, will cover 25 mature onshore fields.

The Houston team is working hard to continue to add value to the EIC membership by preparing an interesting agenda for this upcoming year with training, business presentations and regional showcases. We look forward to hosting a regional showcase on Canada on 28 January 2016, and look forward to regional highlights for Mexico and Colombia. We also continue to engage operators and contractors around further business presentation opportunities in the region.

Energy Transfer and Williams to combine The US$37.7bn business transaction will create the third largest energy franchise in North America and one of the five largest global energy companies. ETE will acquire Williams, which will retain its current name and remain a publicly traded partnership headquartered in Tulsa, Oklahoma. The two companies will have a combined network of more than 160,000km of oil, natural gas and liquid pipelines throughout the continent.

We were delighted to learn of two project wins for Permasense, an EIC Houston LaunchPad tenant, having shipped its 10,000th corrosion monitoring sensor and winning its 100th customer. To date, the Houston office has engaged more than 500 members and non-members across the North and Central America region, adding value around market intelligence, events and training, support on EICDataStream, and educating global members on the EIC remit. The EIC North and Central America team looks forward to assisting our member in the region in the New Year, and wishing all the best for our stakeholders in 2016.

Department of Interior cancels Arctic lease sales Two potential lease sales scheduled under the current five-year offshore oil and gas leasing programme have been cancelled, due to existing market conditions and low industry interest. Lease Sale 237 in the Chukchi Sea was scheduled to take place in 2016; Lease Sale 242 in the Beaufort Sea was scheduled for 2017. This follows Shell’s recent exit from offshore Alaska, where the company had disappointing results in its exploratory drilling programme.

If you need support in the North and Central America region, please contact us. Amanda Duhon Regional Manager (North & Central America) Contact: amanda.duhon@the-eic.com

Forthcoming Events

California confronts climate change The Governor of California has officially signed the Clean Energy and Pollution Act of 2015 into law. This landmark bill makes a number of significant changes to California’s energy policy, including raising California’s renewable portfolio standard to 50% by 2030. The bill also includes six three-year compliance periods and raises the renewable procurement requirement for publicly owned utilities and investor-owned utilities to 40% by 31 December 2024, 45% by 31 December 2027, and 50% by 31 December 2030.

Regional Showcase Opportunities in Canada Thursday 28 January 2016 Houston venue tbc This event will outline the existing and future supply chain opportunities with operators and contractors, provide guidance on how to do business in Canada, and case studies on companies who have been successful in the market. A major theme of this showcase is positioning members now for future opportunities in the region.

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

@TheEICEnergy

December 2015

EIC South America News

South America News

Events

UK companies benefited from several events organised throughout the year by the EIC where they could hear directly from operators and contractors about new opportunities through five business presentations and a site visit and learn about different aspects of the market in one of the 14 training workshops held in Rio. In total, the EIC engaged with over 500 contacts during those events, involving over 250 companies. We are working hard to have a full agenda of events bringing opportunities to EIC members in 2016.

Office News

Pre-salt reserves Although this has been a difficult year for the Brazilian industry, with corruption scandals and the oil crisis, there are positive messages for the future when it comes to the development of the country’s pre-salt reserves. A good example comes from member company PJ Valves, which visited our offices last month. It has secured a multi-million dollar contract to manufacture valves for the turret of the Petrobras Libra EWT FPSO in the Santos Basin. Delivery of the equipment has reached its final stages and is in line with the deadline.

Regional Comment

Pre-salt not viable at current prices, says PPSA The head of Petróleo Pré-Sal SA (PPSA), the Brazilian state-owned company responsible for overseeing production-sharing contracts in pre-salt areas, has said the development of pre-salt oil fields in the country is not viable with prices below US$55. The executive has stressed, however, that current prices will not affect the massive Libra project in the Santos Basin as the field is only expected to start production by the end of the decade, when oil prices are expected to have returned to profitable levels.

PJ Valves is one of the many companies using EIC LaunchPad in the Houston office and this service is also available to members in the Rio office.

13th round will attract US$86.6 million Brazil’s 13th bidding round for exploration blocks will attract a total investment of US$86 million, according to the National Petroleum Agency (ANP). The agency awarded 37 blocks, receiving approximately US$31.6 million in signature bonuses paid by the oil companies, which will invest US$55 million as part of minimum exploration programmes. The latest ANP round saw the participation of various independent oil companies and marked the first time Petrobras and the oil majors were absent from a bidding round.

Brasa shipyard visit The EIC organised a site visit to the Brasa shipyard in November. The shipyard has been assigned by SBM to build 12 modules and integrate the FPSOs Saquarema and Maricá, the latter having already arrived at the docks. Brasa Shipyard is located in Guanabara Bay’s sheltered waters in the city of Niterói, Rio de Janeiro state, in the heart of the offshore industry in Brazil.

A-5 auction in 2016 to offer 48GW Brazil’s A-5 power auction (designed for projects that will start operations in five years) in February 2016 has received registrations from a record 1,055 generation projects, with a combined capacity of 47.6GW. Wind farms will dominate the auction, with 864 projects totalling 21.2GW. This will be followed by small hydros (78 projects), biomass (63), gas-fired (36), coal-fired (7) and conventional hydro power plants (6). Power generators and local distributors will negotiate 20, 25 and 30-year power purchase agreements. Most projects are located in the northeastern states of Bahia (292) and Rio Grande do Norte (232).

The visit gathered 15 companies and was guided by Business Development Manager Rodrigo Gomes and Construction Co-ordinator Diego Resende, who explained the work of the modules as we walked through the site. They made special mention of the equipment of several member companies including ULVA, Severn Glocon, WEG, Swagelok and Veolia.

Mansarovar to triple production by 2020 The Colombian oil company, a subsidiary of Sinopec, plans to produce 131,000b/d by 2020, from the current 40,000b/d. Mansarovar is known in Colombia for the use of its steam flooding technique, which involves the continuous injection of steam in order to enhance recovery. Colombia’s fifth biggest operator, the company has drilled 1,133 wells since 2006 and invested US$1.4 billion in the Nare onshore oil field over the past nine years.

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

December 2015

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