EIC Monthly News May 2013 by Energy Industries Council

EIC Monthly News May 2013

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From the EIC

From the EIC... Welcome to the May edition of the Monthly News. Firstly, we are delighted to announce the appointment of the Rt. Hon. the Lord Howell of Guildford as Honorary President of the EIC. Lord Howell is a senior member of the House of Lords, and served as Secretary of State for both Energy and Transport in Margaret Thatcher’s Government. More recently he has held a position in David Cameron’s Cabinet in the Foreign and Commonwealth Office, with special responsibilities for international energy issues. Commenting on his new role as President of the EIC, Lord Howell said that all levels of the UK supply chain ‘have a uniquely strong role to play’ in the global energy industry, in both the ‘major changes in the global energy mix’, and in the ‘transformation’ of our homegrown energy industry. Lord Howell has succeeded Lord Jenkin in the role and the EIC would like to take this opportunity to express its sincerest gratitude to Lord Jenkin for his great service to the organisation. There is also more good news this month as EIC Training has been awarded CPD certification on a range of its training courses. Continuing Professional Development (CPD) is a process of lifelong learning and this certification will endorse approved EIC courses that conform to industry-wide CPD principles, enabling attendees to gain recognition for developing further skills and capabilities. To find out more, please visit page 7. You may be reading this at OTC 2013, where the EIC is currently hosting the UK National Pavilion. If you are at the event, please take the time to stop by the Pavilion where 55 leading UK companies are demonstrating exactly why the UK has such an enviable reputation for supply chain excellence in the energy industry. EIC Regional Managers from the North and Central America, South America and Middle East offices will be on hand for one-2-one meetings and informal discussions at the EIC stand (Stand 2241D), while an EIC Membership Manager will also be present to answer questions and offer live demonstrations of EICDataStream. The EIC will be running two networking events on 7 and 8 May, offering first-class networking opportunities for UK companies: please visit the stand for more information. Also, on the evening of Monday 6 May, there will be a UKTI reception at the Hilton Houston Post Oak and on Thursday 9 May the EIC will manage a Breakfast Briefing on Opportunities in Engineering and Offshore Construction in the Brazilian Oil and Gas Sector in association with UKTI, at the Reliant Stadium. Both events are open to representatives from UK companies by invitation only. Later this month, the EIC is hosting its first exclusive members’ Exhibitor Group at the All-Energy 2013 event, taking place in Aberdeen on 22-23 May, so we hope to see many of you there! For those interested in the Middle East market, registration has now opened for delegate places at EIC Connect Oil, Gas & Power 2013, in Abu Dhabi, with places selling fast. Taking place on 4 June, the event will give delegates an opportunity to gain insight from operators and contractors in the region on their current projects and procurement strategies through a series of supply chain briefings and conference sessions. Delegates will also have the opportunity to book a one-2-one meeting with the speakers. For more information or to book your delegate place, please visit: www.eic-connect.co.uk Continuing with our busy calendar of international events throughout 2013, the EIC will be hosting the UK Group at Brasil Offshore in Macaé on 11-14 June. With high-level representation from Petrobras and other active operators in the market, and direct access to many Brazilian companies looking to partner with expert global suppliers, Brasil Offshore remains a key platform for doing business in Brazil. Please visit the website for more information. And some more positive news to finish on...the EIC recently released its latest EIC Monitor report, indicating that the global energy industry remains healthy! Please visit page 4 to read the full report. www.the-eic.com

The Rt. Hon. the Lord Howell of Guildford

Content

May 2013

From the EIC

Business Information

EIC Monitor

Training Services

New Members

Members News

UK, Overseas & Training 14 Exhibitions/National Events 15 Exhibitions & Delegations 16 Middle East News

UK News

National Events

Asia Pacific News

China News

North America News

South America News

EIC Consult

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May 2013

EIC Business Information

Business Information Unconventional opportunities: perspectives and challenges for shale gas in Brazil As the ‘shale revolution’ booms in the US, countries around the world are reflecting on its possibilities and prospects. Brazil is no exception and, although the country is already an experienced shale oil producer, the shale gas bandwagon has only recently started to be considered. Authorities have shown keen interest in this game-changing possibility but could shale become Brazil’s next ‘pre-salt’? Shale gas in Brazil is still a novelty and the country’s approximate reserves are subject to various estimates. According to a study by the Energy Information Administration (EIA) released in 2011, Brazil’s shale gas reserves are the world’s tenth largest, at 226 trillion cubic feet. Region-wide, this places Brazil behind Argentina (774Tcf) and Mexico (681Tcf). EIA’s estimates, however, only consider the Paraná Basin, one of the five sedimentary basins across Brazil which are known to contain shale gas. Among them is the São Francisco Basin, which had its potential pegged at 600Tcf by Wood Mackenzie in early 2012 (surpassing the Marcellus formation in the US). The National Petroleum Agency (ANP), Brazil’s hydrocarbons regulator, has been investigating shale resources since 2007 as part of an eight-year, US$900 million effort to map hydrocarbons throughout the country. The agency’s latest estimate (cautiously referred to as an ‘exercise’), based on EIA’s figures and an analogy between the geology of the country’s onshore basins and the Barnett Basin in the US, concluded that Brazil could hold up to 500Tcf. This amount greatly exceeds potential gas reserves in pre-salt fields and is several times higher than the gas reserves of Bolivia, the country’s prime gas supplier. According to a KPMG study released last year, Brazil could even become the second largest shale gas producer in the Americas behind the US. After a prolonged hiatus, ANP will once again organise bidding rounds for exploration blocks, with one of them dedicated to shale gas. Scheduled for October this year, it will offer blocks in five sedimentary basins across the country, including the Paraná and São Francisco Basins. Considering Petrobras’ capital-intensive commitments in the pre-salt and elsewhere, the auction of shale blocks is a great opportunity for other players in the country to enter this new market and expand their portfolio. This is especially important for independent operators, which are so important in the American shale market. Previous bidding rounds have also awarded shale blocks. Petra Energia, a Rio-based operator dedicated to onshore assets, holds the largest number of blocks in the São Francisco Basin and aims to start production of shale gas as early as 2015. Shell is also present in São Francisco with five blocks and plans to drill its first well in the second half of the year. Other operators in the basin include the stateowned utility CEMIG, Imetame, Orteng as well as Petrobras. www.the-eic.com

The successful development of shale gas would greatly benefit Brazil’s power sector. The expansion of domestic gas supply would not only be an incentive to the construction of gas-fired power plants in a scenario of growing electricity demand (and an increasingly difficult licensing process for big hydro power plants) but would also reduce the use of coal and oil-fired thermal power plants as well as costly gas imports. The local petrochemicals and fertiliser sectors, which are expected to face fierce competition from the US, would also benefit from gas that is cheaper and easier to obtain than that extracted from pre-salt reserves. This would speed up development of projects such as Comperj’s petrochemicals unit or the Uberaba fertiliser plant planned for Minas Gerais. Similar to pre-salt reserves, development of shale gas is not without its challenges. As has been repeated in other parts of the world, the use of hydraulic fracturing to extract gas takes environmental risk to a new level. Olavo Colela, an ANP advisor, has warned that the effects of water contamination are a lot more immediate than those of an oil spill 300km off the coast: “It can reach people’s faucets,” he summarised. The government is understood to be working on tougher environmental requirements and ANP has said that no shale activity will take place in the Amazon. Another challenge is infrastructure. Magda Chambriard, Director, ANP, and an enthusiast of Brazil’s shale possibilities, talks of “a change in gas logistics.” Indeed, the majority of the country’s gas pipelines follow the Brazilian coastline whereas shale basins are much further inland. The construction of new pipelines and associated infrastructure will prove vital for the success of the shale market. A government study outlining new pipelines to be built by 2021 has been eagerly anticipated. In addition to concerns that are already familiar to the local oil and gas market, such as local content and the lack of a skilled workforce, aspects related to legislation, financing and R&D, among others, should also be addressed in order to make shale gas in Brazil feasible and attractive for investors. Assuming current estimates of reserves prove realistic and the necessary arrangements are implemented, perhaps it will not be long until Brazil can also boast its own ‘shale revolution.’

Pietro Ferreira, Business Information Officer Tel +55 21 3265 7403 Email pietro.ferreira@the-eic.com

May 2013

EIC Monitor

EIC Monitor The latest EIC Monitor report shows a steady pace of activity across the energy project landscape in Q1 2013, with overall figures showing only marginal shifts in project numbers and total investment since the last quarter. The number of new projects announced during the last quarter (Q1 January – March 2013) across the global energy supply chain has remained steady, with a marginal 1% increase compared to Q4 2012, but is down nearly 12% on Q1 2012, while the total potential investment value of US$266 billion is down just 5.3% on last quarter.

Neil Golding, EIC Head of Business Information, said: “Overall, figures this quarter paint a consistent picture with both the total number of new project announcements and potential investment values very similar to last quarter. Broken down by sector, the figures this quarter offer diverse results: the midstream sector and the power sector in particular have performed well, while the upstream and downstream sectors have maintained a steady pace of activity and the renewables sector has seen a considerable reduction in numbers.”

tracks over 9,930 active and proposed projects in the global energy industry and provides an industry barometer, broken down into oil and gas (upstream, midstream, downstream), renewables and the nuclear and conventional power sectors. Data is analysed by the number and value of new, active and proposed projects recorded by the EIC each quarter.

Summary of Q1 2013 new projects by number and value The graphs below show the total number and value of new projects across the global energy supply chain for Q1 2013 and the previous four quarters.

Key highlights of Q1 2013 report 1 January – 31 March • Overall this quarter, there were 425 new projects announced across the global energy supply chain with an estimated total value of US$266 billion, compared to 421 in Q4 2012 totalling US$281 billion and 480 new projects in Q1 2012 worth US$373 billion. • The upstream sector has seen an increase of 5% in the total potential investment value of new projects this quarter, rising to US$45.5 billion from US$43.4 billion last quarter, with a 6% decrease in the number of new project announcements since Q4 2012. • In the midstream sector there has been a 9% increase in the number of new projects since Q4 2012 to 76 projects, with an 11% increase in the total potential investment value from US$47.2 billion in Q4 2012 to US$52.5 billion in Q1 2013. • In the downstream sector, the number of new projects has increased by 6% since Q4 2012, but the total potential investment value has decreased 20% from US$42.4 billion in Q4 2012 to US$34.1 billion in Q1 2013. • The renewables sector has seen a 45% decrease in the total potential investment value of new projects, from US$82.9 billion in Q4 2012 to US$45.4 billion this quarter, with a 10% decrease in the number of new project announcements since Q4 2012.

In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance.

• In the power sector, the total potential investment value of new projects has increased 49% to US$85.9 billion in Q1 2013 from US$57.7 billion in Q4 2012, while the number of new projects has increased by 20% to 113 projects in Q1 2013.

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May 2013

EIC Monitor

Analysis by Sector Upstream • There have been 67 new projects in the upstream sector totalling US$45.8 billion in Q1 2013. In comparison there were: • 71 new projects totalling US$43.4 billion in Q4 2012. • 67 new projects totalling US$33.2 billion in Q1 2012. • The hotspots of activity this quarter are Brazil, Argentina and Canada, where a total of 11 projects were announced with a combined total potential investment value of US$10.5 billion. Significantly, three shale gas discoveries in Argentina were added, while the largest single project by value is the proposed US$3.9 billion exploration of the Duvernay shale gas play in Canada. Midstream • There have been 76 new projects in the midstream sector totalling US$52.5 billion in Q1 2013. In comparison there were: • 70 new projects totalling US$47.2 billion in Q4 2012. • 78 new projects totalling US$130 billion in Q1 2012. • The US and Canada remain hotspots of activity in the midstream sector, together accounting for more than 50% of the total potential investment value in this sector. The largest project this quarter is the proposed US$10 billion Shtokman LNG plant (Phase 2 and 3) near Murmansk, Russia, which is expected to be operated separately from the stalled Phase 1 project. Downstream • There have been 38 new projects in the downstream sector totalling US$34 billion in Q1 2013. In comparison there were: • 36 new projects totalling US$42.4 billion in Q4 2012. • 57 new projects totalling US$42.1 billion in Q1 2012. • The hotspots of activity this quarter are Saudi Arabia, India and the US, together accounting for just over 50% of the total potential investment value in this sector. In the US, three natural gas processing plants were announced along with a further three petrochemical plants, with a total potential investment value of US$2.5 billion. Renewables • There have been 123 new projects in the renewables sector totalling US$45.4 billion in Q1 2013. In comparison there were: • 137 new projects totalling US$82.9 billion in Q4 2012. • 161 new projects totalling US$75.6 billion in Q1 2012. • There are significant project numbers in Scotland, England and the US, with 24 projects, 13 projects and 15 projects respectively. Elsewhere, high capital projects were announced in Japan, Germany and Estonia. The largest single project in terms of potential investment is the US$5 billion offshore Fukushima wind farm in Japan. Power • There have been 113 new projects in the power sector totalling US$85.9 billion in Q1 2013. In comparison there were: • 95 new projects totalling US$57.7 billion in Q4 2012. • 102 new projects totalling US$80.5 billion in Q1 2012. • The hotspots of activity this quarter are India, Algeria and Turkey, where a total of 24 projects were announced with a combined total potential investment value of US$30.3 billion. Significantly, six CCPP projects in Algeria were added, while in Russia the US$6 billion Smolensk II nuclear power plant has been proposed to replace the original plant. www.the-eic.com

May 2013

EIC Training Services

Training Services Technical Workshop

Technical Workshop

Introduction to the Gas Industry 1 May 2013 IGEM, EIC London This workshop is recommended to anyone seeking an in depth introduction to the gas industry, whether for research purposes, business opportunities or career development. Professionals will be given the opportunity to gain a technical and commercial understanding of gas industry fundamentals. The workshop explains how regulative and legislative reforms influence the constant change affecting the energy industry today. It will also provide a summary of the key stakeholders involved in the supply chain, an introduction to the glossary of common technical terms and appreciation of processes from extraction to utilisation.

Introduction to Shale Gas 10 May 2013 EIC Aberdeen This workshop is intended for existing technical and commercial employees wishing to develop their global knowledge of this new area of specialisation. It is also designed for new starters, recent recruits and graduates, experts working on a temporary basis in the industry, and specialists needing a wider understanding and professionals working alongside the industry. This comprehensive one day workshop on how the shale gas industry works will explore the challenges facing the industry and will enable participants to understand the technological, geological, economic and environmental aspects of shale gas.

Technical Workshop MCT

Introduction to Tidal Turbines 14 May 2013 Fraenkel-Wright Ltd, EIC London This workshop will provide an overview of tidal turbines, focusing on the technology, engineering challenges and future developments. The workshop will cover the tidal stream resource, the key engineering challenges, SeaGen; the worldâ&#x20AC;&#x2122;s first commercial scale tidal turbine and future plans for the tidal industry.

Management Course

Developing a Business Case 2 May 2013 Neos Learning, EIC London This workshop will benefit all managers who have responsibility for making convincing cases for business investment or decisions. The presentation of a business case fulfills several key functions which will be explored throughout this course. The workshop also shows a variety of ways to consider and convince with a case, including presentation of risk and risk mitigation, and understanding and presenting the financial costs and benefits.

Presentation Skills 7 May 2013 Inspirit Training, EIC London This course is suitable for anyone who is required to give presentations and would like to deliver them with impact. It will use a range of different learning methods including concept presentations, group discussion and interactive exercises. Finally, it will enable delegates to benchmark their presentations against a series of criteria for excellence and offer an opportunity to raise their own presentation standards through practice.

Industry Overview

HSE Training

Fundamentals of Oil and Gas 15 May 2013 EIC Aberdeen This course is 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. It takes the form of five modules. The sessions follow the products through their journey from wellhead to a range of diverse applications. This will include the search for oil and gas, its extraction, processing, transportation and refining.

Introduction to the ATEX Directives 94/9/EC and 1999/92/EC 21 May 2013 Baseefa, Buxton The course consists of a number of modules which build on each other so that following a section on the basic chemistry and physics of explosions it is clear how the various protection concepts work. The continuation of the course is concerned with how the protection and the related installation rules fit with the two ATEX Directives and the IECEx international certification scheme. It will also provide an appreciation of the legal framework of the Directives.

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

May 2013

EIC Training Services This certification will highlight those companies which host EIC workshops as experts in their field and will endorse the course as one which conforms to industry wide CPD principles. In addition the certification is likely to generate more interest on our courses which in turn will offer those who attend additional opportunities to engage with new organisations. There are many benefits to those who undertake CPD certified courses including: • Maintaining professional competence. • Developing further skills and capabilities. • Maintaining the integrity and credibility of the qualification and the profession. Please see our course listing below which indicates those events which are CPD certified. We look forward to seeing you at one of our CPD certified courses soon.

Exciting news from EIC Training!

I am delighted to advise that the EIC has recently been awarded CPD certification on a range of our training courses. Continuing Professional Development is the term given to the commitment of lifelong learning. As you may be aware, Continuing Professional Development is a formal requirement for anyone who is a member of a professional body. There are over 300 professional bodies in the UK that have CPD policies for their members, many of which are mandatory. CPD can be provided in numerous ways. The most common methods are via in-house presentations, workshops and courses, seminars and conferences, technical reports, factory tours, site visits and websites. May 1 Technical Workshop: Introduction to the Gas Industry 2 Management Course: Building a Business Case 7 Management Course: Presentation Skills 10 Technical Workshop: Introduction to Shale Gas 14 Technical Workshop: Introduction to Tidal Turbines 15 Industry Overview: Fundamentals of Oil & Gas 21 HSE Training: Introduction to the ATEX Directives 94/9/EC & 1999/92/EC

London CPD Certified London London Aberdeen CPD Certified London CPD Certified Aberdeen CPD Certified Buxton CPD Certified

June 4 Technical Workshop: Introduction to Gas Turbines Lincoln CPD Certified 6 Management Course: Tendering for Success – How to Write Winning Bids Aberdeen CPD Certified 7 Technical Workshop: Introduction to Reservoir Engineering & Drilling London 10 Industry Overview: The Fundamentals of Power Nottingham CPD Certified 12 Technical Workshop: Introduction to Centrifugal Pump Design & Manufacture Gloucester CPD Certified 18 Industry Overview: Fundamentals of Oil and Gas London CPD Certified London 20 Management Course: Understanding Finance 24 Management Course: The Effective PA/Office Manager London 25 Management Course: Introduction to Human Resources London 26 HSE Training: Introduction to the Pressure Equipment Directive 97/23/EC Warrington CPD Certified uly J 2 Management Course: Introduction to Social Media Billingham Welshpool CPD Certified 3 Technical Workshop: Introduction to Pipe Supports London CPD Certified 5 Technical Workshop: Introduction to Subsea Systems Buxton CPD Certified 8 HSE Training: Introduction to the ATEX Directives 94/9/EC & 1999/92/EC CPD Certified 9 Industry Overview: Fundamentals of Refining & Petrochemicals London 10 Technical Workshop: Introduction to the Bolted Joint Integrity Walsall CPD Certified 11 Technical Workshop: Introduction to a Nuclear Power Station Dungeness CPD Certified 11 Technical Workshop: Introduction to Shale Gas Billingham CPD Certified 16 Management Course: The Introductory Certificate in Project Management London 18 Management Course: Negotiation Skills London August 6 Industry Overview: Fundamentals of Upstream Oil and Gas Offshore 14 Industry Overview: Fundamentals of LNG

London London

September 3 Management Course: Time Management 10 Technical Workshop: Introduction to Nuclear New Build 11 Management Course: Tendering for Success; How to Write Winning Bids 12 Management Course: Why do we need Contracts? 16 Technical Workshop: Introduction to Shale Gas 25 Technical Workshop: Introduction to Steam Turbine Technologies

London London CPD Certified Aberdeen London London CPD Certified Peterborough CPD Certified

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CPD Certified CPD Certified

May 2013

New EIC Members

New EIC Members The BMP business philosophy is based on the foundation of developing long term mutually profitable partnerships with customers, suppliers and employees alike. Over the years the BMP division has received numerous customer and supplier awards including the Queens Award for Innovation and Export.

New Global Member

Ascent Energy Global

4th Floor, 72 Hammersmith Road Hammersmith London W14 8TH Tel +44 (0)20 7559 3630 Fax +44 (0)20 7559 3401 Email fi@ascentenergyglobal.com Web www.ascentenergyglobal.com The Nominated Representative is Mr Frank Ingram, CEO. Ascent Energy Global is a worldwide resourcing and mobilisation solutions specialist. Headquartered in London with international reach and presence in Europe, the Middle East, Asia Pacific and the Americas they provide technical expertise across the oil and gas, power generation, nuclear and smart energy sectors. Their mission is to be the premier resourcing company servicing the energy sector. Ascent Energy is unique in the way that they understand and overcome the challenges of finding and recruiting quality professionals in a niche and specialised skills-driven market. They utilise their expertise, network and significant experience to deliver genuine talent and solutions for clients. Ascent Energy offers a complete resourcing solution with the capability to deliver efficiently across permanent, contract, managed service PSL, retained and project hire agreements. Their energy, paired with a comprehensive knowledge of the technology and trends in the industry, makes Ascent Energy an organisation that you will want to have working for you.

New Primary Member

Brookwood Search & Selection 33 Chobham Road Woking Surrey GU21 6JD Tel +44 (0)1483 750 850 Fax +44 (0)1483 750 851 Email tim@brookwoodselection.co.uk Web www.brookwoodselection.co.uk The Nominated Representative is Mr Tim Wainwright, Director. Brookwood Selection Energy is the specialist arm servicing the whole spectrum of energy sectors. They cover a range of disciplines across oil and gas, mining and minerals and power generation, including renewables and nuclear. Specialising in the recruitment of both contract and permanent roles, Brookwood delivers recruitment solutions to major flagship projects globally.

New Global Member

BWS International Ltd

New Global Member

The Courtyard Thorpewood Blisworth Road Courteenhall Northampton NN7 2QB Tel +44 (0)1604 861 000 Fax +44 (0)1604 861 001 Email leanna.ward@bwsinternational.com Web www.bwsinternational.com The Nominated Representative is Ms Leanna Ward, Marketing Executive. BWS International Ltd is a UK owned oil and gas consultancy firm which has been serving clients and candidates all over the World since 1978 specialising in providing high calibre personnel to the oil, gas and petrochemical industries. BWS International prides itself on long standing relationships with both clients and engineers where over 80% of business is generated from referrals, recommendations or existing clients. BWS International understands the importance in forming strong, long lasting relationships with both clients and candidates and firmly believes in quality over quantity.

BMP Europe Ltd Shorten Brook Drive Altham Business Park Altham Accrington Lancashire BB5 5YH Tel +44 (0)1282 772 000 Fax +44 (0)1282 777 000 Email D-Harper@bmpeurope.com Web www.subseacableprotection.com The Nominated Representative is Mr David Harper, Sales Manager. BMP is a wholly owned subsidiary of Andrew Industries Ltd, a privately owned and managed diversified industrial manufacturing group. With ISO 9000:2000 accredited manufacturing facilities in Europe, North America and China supported by international sales offices in Europe, North America, Singapore and China the BMP Division is able to satisfy your local and worldwide manufacturing and service requirements. BMPâ&#x20AC;&#x2122;s goal is to offer its customers the benefits of a full service supplier including the complete range of sales, production innovation and manufacturing services from its highly skilled teams on each continent.

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May 2013

New EIC Members New Global Member

New Global Member

Hays Oil & Gas

Raytheon UK

107 Cheapside London EC2V 6DN Tel +44 (0)20 3465 0133 Fax +44 (0)20 7388 4367 Email Ed.Allnutt@hays.com Web www.hays.com The Nominated Representative is Mr Ed Allnutt, Director. Publicly listed in the United Kingdom, Hays is a specialist recruiting group employing more than 6,900 staff globally. Over 270 offices worldwide support a principal group of six oil and gas hubs â&#x20AC;&#x201C; Perth, Singapore, Dubai, Moscow, Aberdeen and Rio de Janeiro â&#x20AC;&#x201C; extending and magnifying their reach and understanding of the local markets in which you work. With more than 40 years experience recruiting technical, professional and operational staff for the resources sector, Hays Oil & Gas was first launched in 2005 and is now one of the fastest growing business units in the company. Their specialist consultants work together to ensure that they continue to source an exciting range of opportunities and help more people make their ideal job a reality.

Langstone Technology Park Bldg 4000 Langstone Road, Havant Hampshire PO9 1SA Tel +44 (0)7880 007 195 Email james.norwood@raykiel.com Web www.raytheon.co.uk The Nominated Representative is Mr James Norwood, International Business Development Manager. Raytheon UK, (also known as Raytheon Systems Limited), is a technology and innovation leader specialising in defence, national security and other government and commercial markets around the world. Key markets include mission systems integration, network-enabled capabilities, mission support and global training solutions. As a trusted supplier to the UK Ministry of Defence, Raytheon UK designs, develops and manufactures a range of high technology electronic systems and software at its facilities in England, Scotland and Wales. It is also a major technology exporter to more than 40 countries, including the USA.

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May 2013

EIC Members News

Members News

Archer claims that the Tornar Deep Water BOP Cleaner uses advanced vortex cleaning technology to remove wellbore debris from blowout preventer and marine riser cavities safely, rapidly and reliably in challenging depths. It combines Tornar flow ports with powerful proprietary magnets to extract debris while maintaining full well control and protecting the blowout preventer. Rolf Egil Håland, President and Managing Director (Oiltools), Archer, said: “The big issue in deep and ultradeepwater markets is the time it takes to retrieve and re-run the marine riser and BOP as this can often take several days to a couple of weeks. A major operator in Brazil recently attributed 70% of their downtime to BOPrelated issues; with a rig costing more than US$1 million per day such downtime becomes very expensive. “What really sets this tool apart is its combination of riser brush, string magnet and junk basket to clear the riser of mud and scale and collect debris. In addition its threestage flow sleeve diverts flow out through the cleaning ports or through the bottom of the string, thereby enabling full well control during cleaning operations,” he concluded. For more information please visit: www.archerwell.com

AMEC has been appointed by BP and its co-venturers, Shell, ConocoPhillips and Chevron, to deliver the hook up and commissioning services (HUC) for the two new Clair Ridge platforms. The work, which is scheduled to run through to March 2016, is valued at US$100 million and follows the completion of the engineering and project management services for the Clair Ridge project. At its peak the work will be carried out by a team of 800 AMEC and qedi technical experts in the UK. The contract will see AMEC, and their commissioning and completions specialist business qedi, deliver HUC services for the construction and installation phase of two new bridge linked platforms, which includes new production, accommodation and drilling facilities plus the subsea pipelines tied into the existing export systems. The two platforms are due to be installed in 2015, with production scheduled to start in 2016. BP’s US$7 billion capital investment will give access to 640 million barrels of recoverable oil, and see up to 120,000 barrels per day at peak, extending the life of the field to 2050. Alan Johnstone, Brownfield Managing Director, AMEC, said: “I am delighted that our long track record of delivery of major and complex projects for BP has been recognised through this significant contract award. The award extends our relationship with BP, as well as crowning our overall involvement with this giant development from concept right through to commissioning. We will be utilising our leading expertise from our brownfield centre of excellence and securing jobs for the North Sea.” Clair Ridge will be commissioned by AMEC with the latest technology and processes to improve efficiency and reduce environmental impact. This includes minimising offshore commissioning activity in the harsh cold of West of Shetland by maximising the amount of the onshore commissioning process, which will also maximise the production ramp up and minimise flaring. In 2011, AMEC was awarded an engineering and project management services (EPMS) contract for the main platform design. For more information please visit: www.amec.com

Brunel has officially opened its new office in Dubai, UAE. The office will primarily focus on the upstream, midstream and downstream sectors and is a new home to Brunel’s regional headquarters. Louis Harrewijn, Regional Director for the Middle East and India, expressed his excitement about the new facility and the growth in the region by saying: “The company is looking forward to new challenges and growth in a location known for its great culture and climate.” Brunel has a strong presence in the Middle East with operations in the UAE (Dubai and Abu Dhabi), Qatar, Iraq (Baghdad), Kuwait, Oman and Saudi Arabia. Brunel has completed the incorporation of their new Kurdistan company (Brunel Technical Services LLC), and opened a new office in Erbil. Brunel supports a customer base with over 1,500 project consultants in the region. Brunel is a manpower supply company operating from 96 offices in 38 countries worldwide and specialises in project staffing, permanent staff recruitment and consultancy. The energy division employs 7,000 experts in the oil and gas, (petro) chemical, power and related industries ranging from geosciences, drilling, conceptual design, engineering and construction through to operations and maintenance including shutdown projects. For more information please visit: www.brunel.net

Oilfield services provider Archer has launched the TornarTM Deep Water BOP Cleaner for blowout preventer (BOP) and riser cleaning in deep and ultra-deepwater environments.

Archer

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com. Copy deadline is the first of the month for the following month – ie by 3 June for the July issue.

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May 2013

EIC Members News

For more information please contact: Stan Ceney, Specialist in Advanced Fastener Technology Email stan@clarkwood.co.uk Web www.clarkwood.co.uk

Clarkwood is introducing a new patented pending load indicating washer. It will be known as the TenCon tension controlled washer, used for the bolted joint. There are also further innovations being worked on that are related to the fastener tightening process and tension control which are in the process of patent study and application. These innovations are at the forefront of advanced world technology in the fastener industry. The washer is designed for assembly into any bolted joint and can be installed with unskilled labour for any type of size of fastener and, depending on the application, can have a protective coating to suite any environmental condition. The basic design is based on Hooke’s Law – modulus of elasticity equals the ratio of stress over strain within the materials elastic limit. The physical size of the height of the washer is a constant of approximately 20mm and the bore sized to suit the fastener. The wall thickness of the washer is designed in accordance with Hooke’s Law to compress for a constant deflection for any desired load. The washer compresses under tension from the tightening process and a small tolerance hole with the washer is fitted with a high tolerance pin. The pin (known as the rota) is free to rotate by hand until a pre-determined load is reached at which point the rota locks. At this point the exact preload is known – usually the preload is for the fastener material proof load although it can be for any desired preload. The TenCon washer is code marked to suit the fastener size and desired preload.

GFSA Ltd specialises in the design and manufacture of filtration and process equipment, which balances leading edge technology with the green agenda. Since its formation, GFSA has become recognised for providing a total service with high standards of quality, reliability, and efficiency. The company is now looking to build upon this reputation further to become an internationally renowned supplier in its field. To this end, GFSA is strengthening its existing capabilities. Since 2006 the company has operated out of a modern 4.5 acre site in Stourbridge, West Midlands, which was recently added to with a new factory unit incorporated at the end of 2012. Furthermore, GFSA has secured planning permission for another additional unit at the base with construction expected to begin shortly. Historically GFSA’s greatest export market has been Norway and the company is hoping to repeat that success on a much wider basis. Key to this strategy is the appointment of agency representatives in prominent hub areas that will enable GFSA to offer a local point of contact to its customers and help it secure new business in these regions. At OSEA 2012 the company was pleased to announce a new partnership with the appointment of Kenson Enterprise Pte Ltd as its Singapore-based agent. In March 2013 the company was further pleased to announce another new partnership with the appointment of Almousawe as its UAE based agent.

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Clarkwood Engineering Ltd

Chapman Freeborn Airchartering is delighted to announce that it has secured a new strategic co-operation agreement with Lufthansa Cargo, one of the world’s leading cargo carriers. Effective from 1 April 2013, the global aircraft charter specialist will handle Lufthansa Cargo’s third-party chartering requirements, allowing the German airline to focus on marketing charter capacity on its own fleet of 18 McDonnell Douglas MD-11F aircraft. The agreement will give Lufthansa Cargo’s international sales force and client base access to the full range of charter aircraft through Chapman Freeborn’s global network of 35 offices; from helicopters and light aircraft for time-critical freight, up to giant Antonov AN-225 aircraft for heavy and outsize cargo requirements servicing the oil and gas and project industries. Chapman Freeborn clients will benefit from the enhanced access to Lufthansa Cargo’s freighter fleet but maintain its position of neutrality in the marketplace and continue to work in partnership with cargo airline suppliers worldwide. The agreement was signed by representatives of Lufthansa Cargo and Chapman Freeborn in Frankfurt. Russi Batliwala, CEO, Chapman Freeborn, underlined: “We’re delighted to co-operate with Lufthansa Cargo as one of the world’s leading cargo carriers. Our joint customers will benefit from this co-operation and can be sure of finding the right charter solution, anytime.” For more information visit: www.chapman-freeborn.com

May 2013

EIC Members News

Phoenix Contact

The company boasts a high quality workforce, whose competence, motivation and enthusiasm helps ensure it achieves its goals. This includes providing complete customer satisfaction through a personal service right from receipt of enquiry through to full completion and after sales. As part of its on-going expansion, GFSA has recruited additional technical personnel to help meet new demand. In February Phil Smith joined GFSA to help provide additional CAD support and in March Andy Thomas came on board to strengthen the sales and estimating team. With a vast portfolio of standard filtration and process equipment, GFSA is able to fulfil almost every need from individual strainers, filters and flame arrestors to large specialised process filtration systems. With over 200 weld procedure qualifications in various materials, GFSA can meet most industry requirements. This is supported by approvals from world recognised accreditation bodies including fabrication codes ASME, DNV, NORSOK, GOST, EN13445 and ATEX, and stringent quality systems such as ISO, OHSAS, FPAL and Achilles. As an in-house designer and manufacturer, GFSA’s greatest strengths lie in its custom made and specialist equipment. For more information on GFSA Ltd contact: Alan Kilkenny, Business Development Manager Tel +44 (0)1384 896 159 Email alank@gfsa.co.uk Web www.gfsa.co.uk

With the unique modular terminal block system from Phoenix Contact, the user has the choice of which connection technology to use. Whether you opt for the screw, springcage, push-in or fast connection, all of these connection technologies can be freely combined with each other using one range of accessories thanks to the double bridge shaft. Optimise all of the processes involved in the setup, installation and maintenance of your control cabinets and switchgear. The Push-in Technology series is characterized by the easy, direct conductor connection. The up to 50% reduction in insertion forces supports easy and direct insertion of solid and stranded conductors featuring ferrules with a cross section of 0.34mm² or higher. The actuation lever is used to open the spring in order to release the conductors. It can be operated with any tool. Connect conductors without stripping. Fast connection technology drastically cuts wiring time by up to 60%. The conductor is connected quickly, easily, and safely with just one turn of a standard screwdriver. It’s universal in every application. This feature of the screw connection system is characterised by the multiple conductor connection and extremely high contact strengths. Spring-cage terminal blocks from Phoenix Contact have been developed for universal spring-loaded conductor contacting. The contact force is independent of the user and creates a vibration-proof, gas-tight connection with long-term stability. The connection point is opened with a standard screwdriver. Phoenix Contact spring-cage terminal blocks offer a large insertion space. For more information please visit: www.phoenixcontact.co.uk

Daewoo Shipbuilding & Marine Engineering Company Limited (DSME) has selected Intergraph® SmartPlant® Enterprise solutions for operations and maintenance data handover of the INPEX Ichthys LNG project in Australia. INPEX, operator of the Ichthys LNG project, chose Korea-based DSME to construct a giant floating production, storage and offloading (FPSO) vessel, which is worth approximately US$2 billion. INPEX specified the use of SmartPlant Enterprise solutions across all engineering disciplines for this project. DSME will implement Intergraph technology enterprisewide, including SmartPlant Foundation, SmartPlant Instrumentation, SmartPlant Electrical, SmartPlant P&ID, SmartPlant Reference Data and Standard Database, for the engineering, procurement, manufacturing and construction of the FPSO. The integrated suite of SmartPlant Enterprise solutions will ensure consistency between design tools and enable DSME to provide accurate, high-quality engineering data to INPEX. Gerhard Sallinger, President, Intergraph Process, Power & Marine, said: “Leading owner operators around the world are adopting and specifying the use of SmartPlant Enterprise solutions for their large-scale projects, which is testament to the strength and value of the SmartPlant Enterprise portfolio. INPEX and DSME’s selection of our technology is validation of Intergraph’s leadership position in the oil and gas industry, particularly in the Asia Pacific region. The implementation of SmartPlant Enterprise for the Ichthys FPSO will deliver increased safety, quality and productivity to this complex project.” Please visit: www.intergraph.com www.the-eic.com

Raytheon Anschutz, a wholly owned subsidiary of the Raytheon company, has developed a commercial off the shelf (COTS) command and control (C2) system aimed at the offshore oil and gas industry. Integrating a variety of surveillance sensors including radar, AIS and cameras, the system is capable of providing offshore operators with maritime situational awareness of the water space surrounding their assets. 12

May 2013

EIC Members News

STATS Group

Scalable in its capabilities, the SMARTBLUE system can be installed as a locally operated standalone system capable of protecting an offshore platform, FPSO or terminal up to a fully integrated remotely operated system with multiple radar and camera sites giving protection to an entire oil field. In order to increase the flexibility of the system for potential offshore customers, Raytheon has designed a container version of SMARTBLUE with extendable radar and camera masts allowing a surveillance system to be transported offshore easily and then deployed operationally within 2 hours with minimal civil works required. The SMARTBLUE user interface allows the operator to effortlessly use a variety of sensors to detect, track, identify and interrogate targets entering the vicinity of an offshore asset and then to share this information with other SMARTBLUE users on offshore patrol vessels (OSV’s), patrol vessels and other platforms operating within the vicinity. This sharing of data thereby provides all stakeholders with a greater understanding of the maritime picture whereby operations can be coordinated more effectively. The software also allows for additional applications to be included such as; satellite communications, oil spill detection and prediction capability, ice detection, search and rescue co-ordination and meteorological monitoring. This integration of functions thereby provides the user with a one stop control centre, for incident management and maritime asset co-ordination. Please visit: www.raytheon.co.uk

STATS Group has successfully isolated a 24” oil export line on BP’s Marnock ETAP spur line located in the Central North Sea to allow the replacement of a 16” valve. STATS deployed its 24” Remote Tecno Plug to isolate a pressure of 60 Bar providing safe working conditions to allow valve replacement activities. Once set the primary and secondary seal tests were carried out using full isolation pressure. The pressure between the primary and secondary seals was monitored throughout the isolation, ensuring safety critical double block isolation. With the valve replaced and Tecno Plug continuing to maintain isolation, a 24” extended body in-line weld test tool was installed through the launcher to straddle the 16” tee. The test tool was then set to carry out the reinstatement and leak test of the 16” branch and valve. A flexibility on lead time to meet planned platform shutdown dates was imperative and STATS mobilised and completed the work scope in a seven week time frame, including a factory acceptance test in a purposebuilt test fixture. For more information please visit: www.statsgroup.com

A new wind turbine gearbox manufacturing plant in Gainesville, Georgia has purchased a Tentec M42 WTB bolt tensioner system for its production facility. ZF Industries opened its new factory in 2012 and manufactures the Atlas 1 wind turbine gearbox for Vestas. The Tentec M42 wind turbine tensioner provides the production engineers at the plant with the ability to quickly and accurately carry out bolting on the gearbox casings. Special lifting harnesses have been designed to further speed up the operation as there are 60 bolts to be tensioned on each individual gearbox. In addition to a spring returned piston which greatly speeds up the operation, the other main advantage of the Tentec tool is that it is fitted with a spring-loaded device. This automatically engages the tensioner drive socket with the hexagon nut so the operation is completely transparent to the user and no time is wasted aligning the tensioner with the nut. Tentec has recently produced new product literature that features the tensioner and it can be obtained by emailing Tentec or downloading from their website: Email sales@tentec.net Web www.tentec.net

SGS is providing the Baku shipyard project with third party independent supervision and inspection, verification, testing and certification in accordance with guidelines mandated by Royal Haskoning. The new yard is designed to support the construction of offshore support vessels and tankers as well as ship repairs and conversions. A joint venture for the development of the shipbuilding yard in Azerbaijan, Baku Shipyard LLC is comprised of the State Oil Company of the Azerbaijan Republic (SOCAR), Azerbaijan Investment Company (AIC) and KV Enterprises BV, a wholly-owned subsidiary of Keppel Offshore and Marine Ltd. Baku Shipyard LLC is developing its yard on a greenfield site located adjacent to the existing SCS Deep Water Jacket factory, 24 kilometres south of Baku city centre. The shipyard will launch its first vessel in September 2013. For more information please visit: www.sgs.co.uk www.the-eic.com

May 2013

EIC UK, Overseas & Training

UK, Overseas & Training April 2013 25 Technical Workshop: Introduction to FPSOs

ESD Simulation Training, EIC London

May 2013 1 Technical Workshop: Introduction to the Gas Industry IGEM, EIC London 2 Business Presentation: Opportunities in Fusion EIC London 2 Management Course: Developing a Business Case Neos Learning, EIC London 7 Management Course: Presentation Skills Inspirit Training, EIC London 9 Business Presentation: Opportunities with Drax Power Drax, Selby 9 Industry Overview: Fundamentals of Oil and Gas EIC Singapore 10 Technical Workshop: Introduction to Shale Gas EIC Aberdeen 14 Technical Workshop: Introduction to Tidal Turbines Fraenkel-Wright, EIC London 15 Corporate Entertainment: Northern Region Golf Day Rockliffe Hall, Darlington 15 Industry Overview: Fundamentals of Oil and Gas EIC Aberdeen 15 Sector-Based Forum: Refining & Petrochemicals WorleyParsons, EIC London 21 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 23 Industry Overview: Fundamentals of Oil and Gas Rio de Janeiro 28 Management Course: Successful Bids and Proposals EIC Houston June 2013 4 Business Presentation: Opportunities with AREVA on Round 3 EIC London 4 Industry Outlook: Critical Marine and Logistics Operations Rio de Janeiro 4 Technical Workshop: Introduction to Gas Turbines Siemens, Lincoln 6 Business Presentation: Opportunities with Siemens Hallmark Hotel, Manchester 6 Management Course: How to Write Winning Bids Rothera Group, EIC Aberdeen 7 Technical Workshop: Introduction to Reservoir Engineering ESD Simulation Training, EIC London 10 Industry Overview: Fundamentals of Power E.ON UK, Ratcliffe on Soar 12 Business Presentation: Opportunities with SITA UK EIC London 12 Technical Workshop: Centrifugal Pump Design SPP Pumps, Gloucester 13 Industry Outlook: Local Content Rio de Janeiro 18 Industry Overview: Fundamentals of Oil and Gas EIC London 20 Management Course: Finance for the Non-Finance Manager Neos Learning, EIC London 24 Management Course: The Effective PA/Office Manager Inspirit Training, EIC London 24 Management Course: Understanding Contracts Pan Asia Wikborg Rein, EIC Singapore 25 Management Course: Introduction to Human Resources EIC London 26 HSE Training: Introduction to Pressure Equipment Directive Nuvia, Warrington July 2013 2 Management Course: Introduction to Social Media Herd Communications, EIC London 3 Corporate Entertainment: Scotland Annual Golf Day Trump Golf Links, Aberdeen 3 Technical Workshop: Introduction to Pipe Supports Carpenter & Paterson, Welshpool 5 Technical Workshop: Introduction to Subsea Systems ESD Simulation Training, EIC London 8 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 9 Industry Overview: Fundamentals of Refining and Petrochemicals WorleyParsons, EIC London 10 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Walsall For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com

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May 2013

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2013

Status

6-9 May Offshore Technology Conference (OTC)

Houston

Sold Out

5-7 June Oil & Gas Asia (OGA)

Kuala Lumpur

Sold Out

11-14 June Brasil Offshore

Macaé

Sold Out

29-31 October OTC Brasil

Rio de Janeiro Booking Now

10-13 November ADIPEC

Abu Dhabi

Booking Now

13-15 November Oil & Gas Indonesia (OGI)

Jakarta

Booking Now

tbc Overseas Delegation to Colombia

tbc Overseas Delegation to Mexico

tbc Overseas Delegation to Indonesia

tbc Overseas Delegation to Venezuela

tbc Overseas Delegation to Australia

tbc Overseas Delegation to India

tbc Overseas Delegation to Vietnam

tbc Overseas Delegation to East Africa

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

National Events 2013

Status

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

Aberdeen

Last Few Stands Remaining

4 June EIC Connect Oil, Gas & Power

Abu Dhabi

Delegate Places Booking Now

3-6 September EIC Member Group @ Offshore Europe

Aberdeen

Sold Out

Manchester

Stand Bookings Now Open

12-13 November EIC Connect Energy

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

............................ OTC BRASIL 2013 29–31 OCTOBER • RIO DE JANEIRO

www.the-eic.com

May 2013

EIC Overseas Exhibitions & Delegations

Overseas Exhibitions

Event Report UK Group at CIPPE 2013 19-21 March 2013 Beijing China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE), an annual gathering in the petroleum and petrochemical industry and a high-quality exhibition which gets the authentication from UFI in Mainland China, was held from 19-21 March 2013 in Beijing. CIPPE 2013 attracted more than 1,500 exhibitors and 50,000 professional visitors from 62 countries and regions around the world, in which there were 46 exhibitors belonging to the Top 500 Global Enterprises. CIPPE gets great support from domestic oil giants, such as CNPC Pavilion, Sinopec Oil Engineering Machinery Company, CNOOC, CSIC, CIMC RAFFLES, RG Petromachinery (Group) Co Ltd, HONGHUA, YANTAI JEREH, KERUI, JUMA, Shengli Oilfield Highland Petroleum, SHENKAI, HUABEI RONGSHENG and Tianjin LILIN. The UK National Pavilion, managed by the EIC, was in a great position within hall W1. All eight companies in the group had a successful three days and saw a large footfall of high-quality visitors.

Forthcoming Exhibitions

ADIPEC 2013 10-13 November 2013 Abu Dhabi Booking Now Why exhibit at ADIPEC? • See more than 1,600 oil and gas companies. • Hear from 306 regional and international speakers at the region’s largest conference. • Network with more than 4,000 delegates and 45,000 attendees – that’s 170% more networking opportunities than any other event in the region. • 4 days of knowledge building which includes 50 technical sessions, 5 panel sessions and 2 executive sessions. • Expand your business with the largest gathering of NOCs and IOCs in the Middle East. • Explore new business opportunities at the new GCC Country Briefing sessions.

Oil & Gas Indonesia (OGI) 13-15 November 2013 Jakarta Booking Now Why exhibit at OGI? Facts from 2012: • The exhibition spanned 8,542m2, up almost 2,000m2 from 2009. • Over 10,000 visitors went to OGI 2011. • There were 728 exhibiting companies at OGI, almost 200 more than in 2009. • 46 countries were represented – 10 more than in 2009. • The show had 6 international group pavilions: Canada, Germany, Italy, Korea, Singapore and the UK.

Basra Oil & Gas 2013 5-8 December 2013 Basra Register your Interest The EIC is pleased to announce that we will be co-hosting the UK pavilion alongside UK Trade & Investment (UKTI) at Basra Oil & Gas 2013. Basra International Oil & Gas Conference & Exhibition runs from 5-8 December 2013 and is fast proving to be the largest event in Iraq’s oil and gas sector. In 2012 the show had 18,000 visitors from over 35 countries proving itself as an international exhibition. The event consists of an exhibition and conference and has officially received the support of the Ministry of Oil. Some of the leading companies in the industry being hosted during the 3rd Basra Oil & Gas were Bertling, Cameron, China Petroleum Technology, CNPC, Emerson Process Management, FMC Technologies, Honeywell, Mitsubishi, Mott MacDonald, Rumalia, Samsung, Scania, Shell, Siemens, Tenaris and Volvo. This year the EIC and UKTI are going to be organising and managing the UK pavilion at this event, providing UK companies with a perfect platform to introduce their products and services. As well as networking events and a reception, the instantly recognisable ‘UK Energy Excellence’ branding will ensure a high level presence for exhibitors. To register your interest in joining the EIC and UKTI at Basra Oil & Gas 2013 please contact the Overseas Events team: Email events@the-eic.com www.the-eic.com

For the fourth year in a row, the EIC managed a full day workshop with CNOOC for the UK Group exhibitors on Friday 22 March 2013 and was again sponsored by UKTI. The workshop, which was held at the CNOOC headquarters office in Beijing, with the CNOOC procurement department and its offshore engineering arm COOEC, CNOOC offshore service company COSL and the EIC’s global member companies’ local representatives, attracted 80 participants and was a great success. At the workshop, COOEC and each UK company gave a presentation introducing their products/ services. There was a working lunch which offered a brilliant opportunity for UK companies to network with the CNOOC procurement, engineering and construction/ maintenance staff. All attendees left with a good feeling and quality contacts to follow up with for future business. For information on the UK National Pavilion at CIPPE 2014, please contact the Overseas Events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com 16

May 2013

EIC Middle East News

Middle East News

It was sad to say farewell recently to two close EIC friends who decided for different reasons to relocate back to their home countries. Mike Smith of MacLean Electrical has been a solid EIC supporter since he first arrived in the UAE and will be sadly missed. Another supporter who has left is Robyn Sokol. Some members will know that Robyn has been the engine behind most of the last 10 Oil Baron’s Balls, first with Pipeline and latterly with Dmg Events. Robyn has decided to return to Perth, Australia to be closer to her family. We wish them both well. Finally, we come to the members who we have met either at their offices or else we have had the pleasure to welcome here to the office. As mentioned above, Mike Smith passed by to say farewell. We also welcomed back Steve Pigg of SafeHouse Habitats who we were pleased to assist with his planning for EIC Connect. It was a pleasure to meet up and welcome Andrew McFarlane and his colleague from Mactech who were on a visit to the region as was Gareth Allen of Oil Consultants. We also met up with Angus Neill of Olive Group and Susan Peterson from Lysander Shipping. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News We must start this edition by taking note of an item that we failed to mention last month. This was the welcome return of our Business Information Manager, Ceyda Celik Conroy, who has been away on maternity leave which means that the Middle East office is now back to full strength. As this Monthly News is being delivered and circulated, an important and symbolic event will have just concluded back in the UK. Over the last day of April and first of May, Her Majesty Queen Elizabeth II will be hosting the first state visit to the UK of the UAE President, His Highness Sheikh Khalifa bin Zayed al Nahyan. This is a reciprocal visit following the Queen’s visit to the UAE back in 2010 and there can be no doubt that one will be able to measure how the bilateral relationship has grown and prospered since that last historic visit. For sure, it cannot be overstated just how important that relationship is, especially as far as trade is concerned. There is a Government to Government commitment to substantially increase trade between the two parties by 2015 and we are pleased to advise that the EIC has been asked to participate in an energy related sub-committee that has been formed to explore options and initiatives that will assist them in achieving this goal. Subsequently, EIC Connect in June has been adopted under this category by virtue of us receiving unprecedented support from both the UK’s UKTI and the UAE’s national oil company, ADNOC. Another visit which although perhaps not carrying the same amount of importance for international bilateral relations, but was nevertheless quite significant for the writer, was a return trip to Basra, Iraq in March. Certainly, there can be little doubt that there are a huge amount of business opportunities available in Basra and its surrounding areas which is continually being tempered by concerns surrounding personal security. At a recent Iraq focussed conference organised by MEED, it was made quite obvious that there will be a huge amount of investment in the Iraqi oil and gas sector over the next 3/5 years which can be easily translated into serious and identifiable business opportunities for UK Plc. With these two events in mind, it is our intention to try and provide our own balanced view on this important issue on behalf of our members by using the theme at one of our two planned conference sessions at our forthcoming EIC Connect taking place in Abu Dhabi next month, details of which can be sourced from the event website: www.eic-connect.co.uk Meanwhile, taking a look at our events programme, the take up for the Foster Wheeler lunch proved very popular as was our repeat of the Fundamentals of Oil & Gas training course, so much so, that we are already holding a waiting list for the next time we are able to schedule another repeat, so watch this space. It could be sooner than you think! Anyway, later on this month we will be holding a networking night with a difference. This will be a Cheese Fondue evening which, given the set-up, promises to be an excellent vehicle for our members to network with their peers.

Regional Comment

Majnoon field to see US$1 billion investments in 2013 Shell has announced that they will spend over US$1 billion on the development of the Majnoon oil field in 2013. The field has currently been shut down for maintenance and to bring new production facilities online. Shell expects to bring the field back online this month at a production rate of 100,000 bbl/d, increasing this to 200,000 bbl/d by the end of 2013. New oil discovery in Kurdistan A new oil discovery has been made at the Hawler field located in the Kurdistan region of Iraq. The exploration well has flowed at a test rate of 10,000 bbl/d, however more work is required to determine the reserve potential of the field. Oryx Petroleum is the operator of the field with a 65% interest, Korea National Oil Corp (KNOC) has a 20% interest and Kurdistan National Oil Company holds the remaining 15%. Tamar field begins production Commercial production of gas has commenced at the Tamar gas field. The field has estimated reserves of 9.67 tcf of gas and the gas will be produced at a rate of 1.2 bcf/d via five subsea wells and will be processed by the Tamar platform. A second phase of development is currently being planned which could include a 3.4 mtpa capacity floating LNG system for gas export. Shell selected for Bab sour gas project Abu Dhabi National Oil Co (ADNOC) has selected Shell to operate and develop the US$10 billion Bab sour gas project. Abu Dhabi’s Supreme Petroleum Council (SPC) needs to approve the selection, and once approval is given ADNOC and Shell will form a joint venture to develop the field. The final decision for choosing a partner came down to Shell and Total.

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

May 2013

EIC UK News

News from our UK offices Forthcoming Events Sector-Based Forum: Refining & Petrochemicals 15 May 2013 EIC Conference Suite, London Stephen Nicola, Business Information Officer at the EIC will be joined by guest speaker Mark Hughes, Operations Specialist, WorleyParsons, who will be detailing the shutdowns and turnarounds processes involved within the industry. A refinery turnaround is a planned, periodic shut down of a process unit or plant to perform maintenance, overhaul and repair operations and to inspect, test and replace process materials and equipment to maintain safe and efficient operations. WorleyParsons has over 60 years of global experience in the refinery sector, and is currently involved in 29 grass roots refineries, ranging from 6,500bpd to 272,000bpd. Contact: daisy.crisp@the-eic.com

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

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

Business Presentation: Opportunities with Drax Power 9 May 2013 Drax Sports and Social Club, Selby Drax Power Limited is the operating subsidiary of Drax Group Plc and the owner and operator of Drax power station. The company is currently executing plans to transform the business into a predominantly biomassfuelled generator. Drax Power Limited is committed to reducing their emissions of carbon dioxide (CO2). Through converting three of their six generating units to burn sustainable biomass in place of coal, they will halve their carbon footprint, relative to today, within five years. In 2012, they completed a five year project – the largest steam turbine modernisation programme in UK history – upgrading their high pressure and low pressure turbines which will save one million tonnes of CO2 a year. More details of the presentation to follow. Contact: jennifer.hole@the-eic.com

Business Presentation: Opportunities with AREVA on Round 3 4 June 2013 EIC Conference Suite, London AREVA is a low carbon energy solution provider in nuclear, solar, biomass and wind. They have a worldwide presence and 6 UK offices, with 48,000 employees. The AREVA group reported a combined sales revenue of €9.342 billion in 2012, an increase of 5.3% on a reported basis. AREVA Wind designs, assembles and commissions offshore wind turbines. Since 2000 AREVA Wind has been developing, planning and producing the M5000, the first 5MW wind turbine designed exclusively for large-scale offshore wind farms. The M5000 turbine (5MW) is the first wind turbine in the world designed using technology specifically developed exclusively for largescale offshore wind parks. This business presentation will give EIC members an introduction to AREVA and their involvement in Round 3 projects, and the need AREVA has to build long term supplier relationships. These relationships influence the tenders and offers AREVA makes to its clients. Whilst AREVA wishes to meet capable suppliers the emphasis is on building suppliers relationships more than short term orders. Contact: daisy.crisp@the-eic.com

Corporate Entertainment: Northern Region Golf Day 15 May 2013 Rockliffe Hall, near Darlington The Northern Region Golf Day is fast approaching and Rockliffe Hall will once again play host. The day will begin with a breakfast buffet in the club house. Teams of four will play a Stableford competition, with the best two scores counting. The winning team will be awarded the Flexitallic Challenge Bowl Prize. On completion of your team’s round, there will be a two course dinner in the Grassholme Suite, along with the presentation of prizes. Please contact the Northern office for more information about cost and sponsorship. Contact: jennifer.hole@the-eic.com www.the-eic.com

Business Presentation: Opportunities with Siemens 6 June 2013 Hallmark Hotel, Manchester Details to follow. Contact: jennifer.hole@the-eic.com 18

May 2013

EIC UK News

Three Regions Committee Meeting (Committee members only) 6 June 2013 Hallmark Hotel, Manchester Our three UK regional Committees are holding a joint meeting on 6 June in Manchester. This will coincide with the Opportunities with Siemens event. The three Committees serve EIC members across Scotland, the North and the South of the UK. Each Committee has an elected Chairperson and Vice-Chair and a maximum of 20 Committee members (this includes the Chair and Vice-Chair). This will be an excellent opportunity to network and share ideas. The committee meets four times a year (which includes the AGM) at various locations within the region, and the committee members are from a wide range of disciplines. Committee members have the opportunity to help shape the future direction of the EIC within the region by: • Representing the views of the EIC members both in the region and as a whole. • Suggesting topics and speakers for presentations and networking events. • The opportunity to champion various areas of concern and topical issues. • Identifying global markets where member companies may need assistance. • Working to assist in the development of new activities and programmes to enhance the regional programme as a whole and equip members with a better overview of the energy sector. Committee members benefit from a high level of networking with other energy professionals, and are afforded unique opportunities and interaction with EIC guest speakers as well as a strong relationship with other Committee members across all regions. There are opportunities to discuss market trends and share industry knowledge and news. Companies or individuals that are new to the industry or are looking to move into other sectors can position themselves and raise their profile and credibility. Personal and company profiles are on the EIC website, increasing visibility across the EIC membership and the wider industry. If you are interested in finding out more about EIC regional Committees please contact the relevant staff below: Charlotte Hust, Southern Region Manager. Contact: charlotte.hust@the-eic.com Helen Doona, Northern Region Manager. Contact: helen.doona@the-eic.com Lesley-Anne Brodie, Manager, Scotland. Contact: les.brodie@the-eic.com Business Presentation: Opportunities with SITA UK 12 June 2013 EIC Conference Suite, London SITA UK is a recycling and resource management company, established in 1988, with over 5,500 employees and an annual turnover in excess of £750 million. SITA UK is a growing producer of energy, generating electricity from landfill gas as well as the combustion of waste. In 2011 the total amount of electricity generated from landfill and energy-fromwaste facilities was over 700,000 megawatt hours. SITA UK currently has 57 operational EfW plants within Europe, with 3 facilities in the UK – Kirklees, Tees Valley and the Isle of Man. In 2011 SITA UK managed more than seven million tonnes of waste through their network of recycling, composting, energy-from-waste and landfill facilities, recycling and recovering over 2 million tonnes of this. SITA UK is currently working on 10 EfW projects within the UK and Cliff Matthews will advise EIC members on SITA UK’s activities, current and proposed EfW sites in the UK, their procurement processes and the potential opportunities for the UK supply chain to become involved in the projects. Contact: daisy.crisp@the-eic.com

Corporate Entertainment: Scotland Annual Golf Day 3 July 2013 Trump Golf Links, Aberdeen The golf course follows a classical pattern of two outand-back loops of nine holes. Each hole has 5 separate tees catering for all classes of golfer. Bunkers are placed to challenge the stronger player and not unduly punish the weaker golfer. Bunkers are turf-revetted in traditional style to combat wind and erosion and sand-blow. Greens have been sited in natural promontories and valleys are featured in relation to their setting. The course has been constructed to a high specification and has a design and infrastructure capable of hosting major competitions. Cost includes morning rolls and refreshments on arrival, high tea (available as and when you finish your round), goody bag and golf course fees for players. Prize Giving Ceremony once the last team completes the course. The winning team will be awarded the EIC Quaiche with additional trophies and prizes for best individual, longest drive and nearest the pin. Sponsorship packages are still available however I am delighted to say that the Principal Sponsorship package has been taken by Sparrows. For more information please contact: leeann.stewart@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

May 2013

EIC National Events

National Events EIC Connect Energy 2013 12 – 13 November 2013 Manchester Central Sponsorship and Exhibiting Looking to promote your goods or services to the World’s biggest power operators and contractors? EIC Connect Energy is the only event of its kind in the energy industry designed to connect operators and contractors to UK suppliers in the Nuclear, Gas, Coal and Renewable Energy sectors. Supply chain briefings in the main exhibition hall will cover opportunities with the major operators and contractors from domestic and international nuclear, renewable and conventional power projects.

Key power operators, distributors and EPC contractors will also underpin the all new conference sessions, designed to update the supply chain on emerging market sectors such as smart grids/demand side management and the transition to a low carbon economy. Over 600 delegates are expected to attend.

New for 2013 • Steering committee formed of key operators, contractors and suppliers to shape the programme. • 2 large theatres in the exhibition hall where major operators and contractors brief suppliers on their requirements. • Each speaker company repeats their presentation twice – allowing you to attend more sessions. • Buyers circulating the exhibition in blocked time. • Central delegate networking area with surrounding stands. • Exciting conference programme running alongside. • Additional delegate places at heavily discounted rates. • Option to build your own stand – limited availability. This is an exclusive opportunity to exhibit or sponsor at this event. All sponsorship packages offer high level brand exposure and an array of benefits, some of which can be tailored to suit your goals and aims. Exhibiting allows you to showcase your products and services on a level playing field. All include: • 2 x delegate places (this includes lunch, refreshments, delegate pack, presentation copy). • 2 x invitations to the evening reception on 12 November (not available to general delegates). • 50 word catalogue entry in Event Brochure. • Logo and link on sponsorship page on website. • Web banner and link on rotation on exhibitor page on website (160px wide by 600px high). • Logo on introduction page of the Event Brochure. • Welcome briefing during set up. For all queries about EIC Connect Energy 2013 please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com www.the-eic.com

May 2013

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May 2013

EIC Asia Pacific News

Asia Pacific News

First to extract gas from methane hydrates Japan has achieved a world first, having successfully extracted natural gas from methane hydrate, considered a next-generation energy source, in the Pacific seabed off Aichi Prefecture. Based on studies conducted, at least 40 trillion cubic feet of methane hydrates exist in the eastern Nankai Trough off the country’s Pacific coast, the equivalent of about 11 years of Japanese gas consumption. Methane hydrate is formed from a mixture of methane and water under certain pressure and conditions.

Office News

In March and April we held our first training courses in the Singapore office and the feedback from all 3 sessions was excellent with attendee’s commenting on the high quality of the contents and instructors. The Fundamentals of the Refining Process by KBC Advanced Technology on 19 March had a total of 9 participants; Understanding Contracts by Pan Asia Wikborg Rein had 11 participants on 27 March and Technical Report Writing by the British Council on 5 April had 6 participants. We intend to expand our training programme to include other topics such as The Fundamentals of LNG, The Fundamentals of Petrochemicals, The Fundamentals of Subsea, Tendering for Success, Understanding Letters of Credit, The Professional Presenter and Networking that Works. We will announce full details as soon as everything is finalised. In the meantime, we welcome your valued feedback if these or any other topics would be of interest to your organisation. Keep up to date by visiting the website: www.the-eic.com/Training

MoU to advance ethanol production in Indonesia Having successfully fulfilled the objectives of the Joint Statement of Co-operation, Pertamina and Celanese Corporation signed a Memorandum of Understanding (MoU) to jointly develop synthetic fuel ethanol projects in Indonesia where Celanese will hold a majority share and licence its proprietary TCX® ethanol process technology under a separate technology licencing agreement. Celanese and Pertamina expect the production of fuel grade ethanol to begin approximately 30 months after final investment decisions and necessary government approvals are obtained. Biggest offshore wind farm SK Engineering & Construction Co and Kepco Engineering & Construction Co are teaming up to build South Korea’s biggest offshore wind farm at a cost of 800 billion won (US$726 million). To be located 2.5 kilometres off the coast of Ulsan, 280 kilometres east of Seoul, the 196MW wind farm, comprising 28 7MW wind generators, will be capable of generating electricity equivalent to a year’s consumption by 100,000 households. Construction would start as early as 2015 once approvals from the Ulsan Metropolitan City are obtained with commercial operation expected to begin in 2017.

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

World’s largest FLNG operation ExxonMobil and BHP Billiton are planning the world’s largest floating LNG operation, targeting annual output of as much as 7 million tonnes per annum (mtpa) of the liquefied fuel from the Scarborough field off Western Australia. This is almost twice the size of the 3.6mtpa Prelude FLNG development. Scarborough and the nearby Thebe field, which contain a combined 8 to 10 trillion cubic feet of gas, lie in the Carnarvon Basin, 180km west of Woodside’s Pluto discovery.

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

Hyundai wins offshore construction vessel order Hyundai Heavy Industries has been awarded a contract to build a multipurpose offshore construction vessel (MOCV) from Toisa Ltd. The contract includes an option exercisable by the owner for an additional same class MOCV. With a 900 tonne and a 200 tonne offshore crane, the vessel will be capable of undertaking ultra deepwater installation and construction activities including subsea pipeline and cable laying and topside construction support work for FPSO and drilling rigs. The vessel will be delivered in the second half of 2015.

Regional Comment New Australian CBM regulations The Australian government has introduced new regulations requiring coal bed methane (CBM) projects which have a significant impact on water resources to be subjected to federal assessment and approval. According to the Environment Ministry, the additional information required under the new regulations would involve data that had already been gathered during the state approval process.

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

May 2013

EIC China News

China News

Ineos, Sinopec agree on petrochemical project Ineos Phenol and Sinopec Yangzi Petrochemical Co (YPC) have initialled joint venture agreements for the design, build, and future operation of a previously announced 1.2 million mt/year cumene, phenol, and acetone complex at the Nanjing Chemical Industrial Park in China. The companies expect the project to be completed by the end of 2015, two years later than originally planned. Total investment cost in the whole joint venture project is in excess of US$500 million. The complex will be designed to produce 400,000mt/year of phenol and 250,000mt/year of acetone, making it the largest plant of its kind in China, Ineos said. The facility will also include 550,000mt/year cumene capacity.

Office News We had a very busy month in March organising workshops for member companies and exhibitors who came to Beijing to join the EIC Pavilion at CIPPE. The workshop with CNOOC’s major procurement subsidiaries attracted 80 participants and went very well. Please see the report on page 16. We will continue to support member companies doing business in China by providing our excellent local knowledge in the energy industry and networking resources to help set up meetings with key decision makers within the major local energy players. Our professional marketing services can be utilised by members, and cover topics such as sector briefings, market news, project prospects and strategic consultancy. We look forward to seeing more and more members enjoy our industry experience and local services in the future. For information and business support in China please contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

Rolls-Royce wins bid to power gas flow through TAGP Rolls-Royce has received a US$40 million contract to supply equipment and related services to the Uzbek section of the Trans Asia Gas Pipeline (TAGP) which connects Turkmenistan and China. Rolls-Royce will supply Asia Trans Gas (ATG), a joint venture between China National Petroleum Corp (CNPC) and Uzbekistan’s Uzbekneftegaz, with three RB211 gas turbine-driven pipeline compressor units. The units will operate at a compressor station on the 530km Uzbek section of the 1,830km long TAGP. The compressor units will be manufactured and packaged at the UK based company’s energy equipment facilities located in Montreal, Canada, and Mount Vernon, US.

Regional Comment CNOOC completes acquisition of Nexen China National Offshore Oil Corp (CNOOC) has completed its acquisition of Canada’s Nexen Inc for US$15.1 billion. Nexen will operate as a wholly-owned subsidiary of CNOOC Ltd, and will continue to be led by Chief Executive Kevin Reinhart, who has been with Nexen for more than 18 years. Nexen’s production assets in the Gulf of Mexico, Canada, the UK’s North Sea and West Africa will bolster CNOOC’s upstream resource base, while the Canadian company’s expertise will improve CNOOC’s exploration and production programmes.

Petrobras plans to build oil platforms in China Brazilian state-run energy giant Petroleo Brasileiro, or Petrobras, has confirmed that it will start building four oil platforms in China instead of Brazil, but denied that the shift means the company will not meet strict requirements to use local goods and services. Petrobras said that work to convert oil tankers into the P-67, P-75, P-76 and P-77 platforms would start in China, but that the work represented less than 3% of the value of the contracts to build the floating production, storage and offloading vessels (FPSOs). The conversion will be completed in Brazil. The P-67 platform is part of an order for eight replicated FPSOs, while the other three platforms will be used to produce oil from areas transferred to the company from the government.

CNOOC to reach construction peak in 2014 CNOOC will reach its construction peak in 2014, according to Jin Xiaojian, head of the project construction department at CNOOC. Jin said CNOOC would have 20 major projects under construction in 2013, which involves 30 oil and gas fields, building 25 jackets, installing 22 jackets, building 30 offshore platforms, installing 17 offshore platforms, laying 711km of offshore pipelines, and constructing five terminals. CNOOC plans to have 10 oil and gas projects enter into operation in in 2013. According to Jin, CNOOC will build 1,000km more of subsea pipelines up to 2015.

China to raise hydropower, nuclear and solar capacity China plans to raise the capacity of hydropower by 21GW, nuclear by 3.24GW, solar by 10GW and wind by 18GW. If realised, the hydro and wind targets would represent a 10.5% and 17.1% increase, respectively, from last year’s actual added capacity, while nuclear and solar would see much bigger increases. In a recent official interview by China Daily, the chairman of China National Nuclear said that the nation’s two trial next-generation nuclear reactors had moved from the experimental phase to the model phase and could enter commercial operation by 2030.

Sinopec, Petrobras hold talks on partnership State-controlled Sinopec and Brazilian counterpart Petrobras are in talks to complete two oil refineries in north east Brazil, the Latin American country’s energy minister said recently. The two companies are also discussing partnerships for oil block auctions this year, while Brazil’s government has advised Petrobras CEO Maria das Gracas Foster, to seek partnerships in China, said Brazilian Energy Minister Edison Lobao.

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

May 2013

EIC North and Central America News

North and Central America News Office News

Forthcoming Events

The Houston office is excited to announce the promotion of a current staff member and the addition of Michael Borrel to our team. We congratulate Richelyn Reed on her promotion from Administrative Assistant to Office Manager and Events Co-ordinator. Richelyn has been with us for a year and has demonstrated that she is more than capable of handling her new role. We are thrilled to have Michael Borrel, Business Information Research Assistant, on board with us. Michael is a native Houstonian and recently graduated from the University of Houston. He is new to the industry, but has already shown his interest in the energy sector and is learning quickly. Please join us in congratulating Richelyn on her accomplishments and welcoming Michael to the EIC family. We look forward to working with them and introducing them to you over time. We recently hosted an EIC colleague from our head office in London here in Houston. Alex Field, Business Information Officer, was visiting our region to attend LNG17 at the George R Brown Convention Center and to present ‘What’s Next for LNG’, an EIC SectorBased Forum, to our member companies. Our own Business Information Manager, Lisa Defalco, was the co-presenter with Alex and the presentations were well received with 30 attendees. We also held a Technical Writing Seminar and How to Overcome US Market Resistance in April. We’d like to thank Shea Writing Solutions and Dr Marvin Baker for their instruction and support for each event respectively. Both events were well attended and the feedback we’ve received will help us in planning our upcoming events programme. We welcomed several member company visitors over the last month including but not limited to: Delta, Systech, ARKeX, Mentor, Langley, Aquaterra, Hughes Safety Showers, NSSL Global, Hadar Lighting, Hill International, Zeeco and OilCareers. We always enjoy seeing our overseas members and assisting them where we can. Several of our tenants are in the process of interviewing personnel to increase their presence in the region, which is in line with the outlook that the energy industry is on the rise and will be for the next few years. We have several member companies interested in office space who are in the process of interviewing as well. We have a total of 23 tenant offices, 13 are occupied which leaves us with 8 to offer. We are actively looking to help bring new member companies into our region so if you are interested in office space, please contact us. 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 us. Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

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

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

Regional Comment Successful US Government lease sales In March the US Government’s Bureau of Ocean Energy Management (BOEM) held a very successful lease sale, receiving more than US$1.21 billion in high bids for oil and gas leases in the central Gulf of Mexico. Lease Sale 227 included 38.6 million acres, off the coasts of Louisiana, Mississippi and Alabama, located from three to 230 nautical miles offshore. According to the BOEM, this area could result in production of up to 890MMbbl of oil and 3.9Tcf of natural gas. In the end, 407 bids were received by 52 companies (excluding BP, which is under suspension by the EPA) on 320 offshore blocks. Lease Sale 227 is the first of five scheduled central GoM lease sales planned under the department’s five year programme. Successful bidders include the major companies (Shell with 38 blocks, Anadarko and ConocoPhillips each with 30, BHP Billiton with 24) as well as smaller operators Venari Resources with 15 blocks, Apache with 14 and Energy XXI with 9. The largest bids were submitted by a JV of Statoil and Samson Offshore, who together bid US$81.8 billion for Walker Ridge 271, ExxonMobil for Keathley Canyon 789 (US$66.1 million), and Total/Cobalt for Walker Ridge 232 (US$53.9 million). All of the largest bids were for deepwater blocks. Anadarko deepwater discovery in Walker Ridge Anadarko has announced a major deepwater discovery in Walker Ridge block 51. The Shenandoah-2 well, drilled to a total depth of 31,405 feet in 5,800 feet of water, encountered more than 1,000 net feet of oil pay in multiple high-quality Lower Tertiary-aged reservoirs. The Shenandoah Basin has great potential and is located next to the Yucatan prospect near the Coronado prospect. Chevron’s Coronado-1 well, in block 98, was also announced as an oil discovery after encountering more than 400 feet of net pay. The well was drilled to a depth of 31,866 feet in 5,127 feet of water. Results for Coronado are being evaluated and additional appraisal is still needed.

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

May 2013

EIC South America News

South America News

Industry Overview Fundamentals of Oil and Gas 23 May 2013 Rio de Janeiro This course will introduce participants to the fundamentals of the oil and gas industry including oil formation, ways and methods of exploration, treatment, refining, logistics, safety, health, environment and the needs of operators.

Office News May I welcome back Luanna Souza, who was our intern during 2012 and has now graduated, to the position of Petrobras Registration Officer. Luanna is replacing Thiago Tatagiba, who, after almost 2 years, has decided to work in the commercial area of a logistics company. The EIC is now supporting 28 companies getting registered with Petrobras and we are happy to support your company as well.

Industry Outlook: Critical Marine and Logistics Operations and Marine Warranty Services 4 June 2013 Rio de Janeiro This workshop will provide a general understanding of the technical aspects and risk analysis involved with critical marine operations, from planning to execution of high risk marine construction and transport projects. Industry Outlook: Local Content 13 June 2013 Rio de Janeiro This course is aimed at anyone interested in acquiring knowledge about local content regulations and its implications for industry in Brazil.

Regional Comment Petrobras 2013-17 business plan approved Petrobras expects to spend a total of US$236.7 billion in the period 2013-2017, roughly maintaining the investment levels of the previous plan, which amounted to US$236.5 billion. Approximately 62% of the new plan (US$147.5 billion) will be allocated to Exploration and Production, with a strong focus on the development of pre-salt reserves. The Downstream segment saw its budget reduced by US$12.6 billion compared to the previous plan and will receive US$43.2 billion by 2017. Petrobras has identified the Abreu e Lima and Comperj refineries as the main projects under this category. The Gas and Energy segment will receive US$9.9 billion while Distribution was allocated US$2.9 billion. Petrobras will invest US$3.2 billion outside Brazil, mainly in E&P.

UK Energy in Brazil, organised by UKTI, took place in Rio in March gathering 3 trade missions from 52 different UK companies (almost 90 people). The event and the gala dinner were very distinctive and well organised allowing UK companies to interact with key contacts in the Brazilian industry. The EIC trade mission in particular brought 15 companies related to offshore construction. A special highlight was meeting with five EPC contractors that have won the biggest contracts in FPSO construction recently. The visit to Rio Grande do Sul closed the week in great style with a flight over the Rio Grande shipyard, as guests of FIERGS (Federation of Industries of the South). If you need support in taking the next step into the South American market, please feel free to arrange a meeting with me during OTC in Houston. Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Brazilian transmission grid to require US$7.4 billion According to the state-run energy research entity EPE, the Brazilian national grid will require an investment of R$14.6 billion (US$7.4 billion) by 2017 in the construction of new transmission lines. Approximately US$3.52 billion will be spent in northern Brazil, where the massive 11.2GW Belo Monte hydro power plant is being built.

Forthcoming Events

Breakfast Briefing (By Invitation Only): Opportunities in Engineering and Offshore Construction in the Brazilian Oil & Gas Sector 9 May 2013 7.45-9.15am Director’s Club, Reliant Center, Houston The EIC, in partnership with UKTI, will be managing this Breakfast Briefing during OTC. Speakers include Steven Veraart, SBM Offshore and Dr Ruben Val, Mendes Junior Trading and Engineering. For more information please contact Camilla Tew: camilla.tew@the-eic.com

Bolivian O&G market to receive US$8.4 billion by 2016 According to the Bolivian state-owned oil company YPFB, the country’s hydrocarbons sector will receive an investment of US$8.4 billion from all operators holding exploration contracts. This year approximately US$2.2 billion is expected to be invested in projects in the up, mid- and downstream segments.

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

May 2013

EIC Consult

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May 2013

The EIC Conference Suite

The EIC Conference Suite A fully flexible events space available exclusively to EIC members and associated companies.

The EIC Conference Suite offers meeting rooms for up to 110 people within the EIC head office. Opened in 2010, the Suite offers a convenient and easily accessible riverside location with excellent views, just 2 minutes from the National Rail, London Underground and bus stations of Vauxhall in Central London. Made up of five meeting rooms and an airy, spacious breakout area, the energy themed décor of the EIC Conference Suite offers the perfect solution for members looking for somewhere to hold a conference, meeting or reception. The EIC Conference Suite is exclusively available to hire by EIC members and associated organisations and room hire starts from just £70, with special rates for members.

Meeting Rooms 5 meeting rooms.

Capacity

Minimum 3, maximum 110.

Location

Central London. 2 minutes’ walk from Vauxhall’s Underground, National Rail and bus stations.

Technology

Free Wi-Fi throughout and LCD screens in each large meeting room.

Refreshments

Fully flexible and cost effective catering options are available from our preferred caterers and sample menus are available upon request. Adaptable spaces – Conference/Boardroom style • • • • •

Video conferencing Hot desks Free Wi-Fi Fully air-conditioned Wheelchair accessible

• • • • •

Room hire from just £70 State of the art facilities Flexible catering options Dedicated events co-ordinator Large breakout area

The EIC Conference Suite is available for hire during normal working hours. Please feel free to drop in to see the facilities or to use one of the hot desks. Contact: conference@the-eic.com www.the-eic.com www.the-eic.com

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May 2012 2013 May

If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com The EIC (China) Tel +86 139 0125 6599 Email salina.zhang@the-eic.com

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