EIC Monthly News February 2016 by Energy Industries Council

EIC Monthly News February 2016

Sector Analysis

Russian downstream sector plans and challenges

Page 3

Member News

Page 6

Events

Page 10

Middle East News

Asia Pacific News

North America News

South America News Training Services

Page 14 Page 15 Page 16 Page 17

Page 18

Oil refinery at twilight ÂŠ 2003-2016 Shutterstock, Inc

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The EIC Chief Executive

A word from the CEO It has been refreshing to read upbeat stories in the news recently about projects involving UK companies. For example, Scottish wind power made the headlines last month for achieving a record-breaking year. In 2015 wind turbines in Scotland generated enough power to supply almost every home there. A £1.1 billion Anglo-Chinese deal, with China National Building Materials Group, to develop solar projects and zero carbon homes in the UK has also caught the spotlight. The focus has not just been on renewables either, British oil and gas company ConocoPhillips exported its first cargo of LNG last month from its Australian facility. This is the first in a series of shipments that will mainly serve the Asian market. Perhaps the biggest news story for the global oil and gas industry is one you are all familiar with, and one that has incited eager anticipation about opportunities and how best to exploit them. Of course, Iran has the potential for extremely rich pickings: its oil reserves alone rank fourth in the world, it boasts the largest proven gas reserves on earth, and it has a variety of other natural resources. Hopes are that crude exports will increase to up to 1 million b/d in 2016, fuelling a multitude of projects ranging from exploration and field development through to storage and distribution. However, while the lifting of sanctions will open many doors, we need to acknowledge that changes will take time. The Iranian economy has suffered a significant knock over the years so securing international investment is critical, as is developing new technologies to bolster the country’s domestic energy industry. www.the-eic.com

Having a proper understanding of the market in Iran is going to be essential, so to help with this our Middle East office will be running a showcase in March, which follows the post-sanctions event we held in London last September. We’re also organising a delegation to Iran in May, which will help to bring members up to speed with the current market and opportunities. In the last issue of Monthly News, I touched on some of the overseas delegations we have in the calendar. These include a trip to Egypt at the beginning of February and to Algeria in early March. Delegations, which provide a really structured and focused approach to market, benefit our members in several ways: • Firstly, our teams both in the UK and internationally meticulously plan the logistics and itinerary, so you know exactly what will be happening and when • Secondly, we work with UK Trade & Investment and British embassies based regionally to arrange business briefings, meetings and networking with operators and EPCs, and to prepare market and company information in advance based on data from EICDataStream • Thirdly, once you’ve been on a delegation and the door has opened to new contacts, it becomes much easier to follow up with them and to develop commercial relationships Please remember to regularly log into EICDataStream, which is updated daily, for the latest information on global projects. If you have any questions about upcoming projects that you’re tracking, please feel free to contact one of our analysts. You’ll find their details and locations on our website. To receive training on EICDataStream, please email membership@the-eic.com Claire Miller, Chief Executive

@TheEICEnergy

Contents The Chief Executive

Sector Analysis

New Members

Member News

Events Diary

Overseas Events

UK Events

Middle East News

Asia Pacific News

North America News

South America News

Training Services

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February 2016

EIC Sector Analysis

Sector Analysis

Russian downstream sector plans and challenges Russia hopes that 2016 will be a year of readjustment. The nation has been struggling to recover from an economic downturn which was initiated in 2014 by the plunge in oil prices, strengthening of the US dollar and international sanctions. Since nearly half of Russia’s governmental revenue is generated by the sale of oil and gas, when international oil prices drop sharply, the government’s budget is put under pressure. This climate of uncertainty makes investors lose confidence in the economy and the sanctions imposed by the EU and USA, as a result of Russia’s military intervention in Ukraine, are hindering the country’s access to Western finance. The government is now facing its first economic recession since 2008. Russia has not had a great start to 2016: oil prices have dropped below US$28 per barrel, the lowest since 2003. Analysts revised their short-term forecast from US$50-60 to US$40 and some even believe prices may fall to US$20 before recovering. The rouble has fallen 4% in the first two weeks of the year. Moreover, concerns over the Chinese financial market and economic slowdown are not good news for Russia since China has been increasingly important as a partner and a potential financial ally. Sanctions against Russia specifically target defence, financial and exploration and production activities from offshore and unconventional developments. Therefore, downstream projects haven’t been directly affected. In fact, some major engineering, procurement and construction (EPC) contracts were awarded in 2015: CB&I was awarded the EPC for a steam methane reformer at the Afipsky refinery modernisation project. Maire Tecnimont was also awarded a €660 million EPC contract for a new ammonia plant in Kingisepp by EuroChem. www.the-eic.com

According to EICDataStream, 19 contracts awarded in 2015 were related to downstream projects in Russia, of which five were EPC, five were technology licenses, three Front-End Engineering Design (FEED) and two Project Management Consultancy (PMC) contracts. In contrast, 32 contracts were awarded in 2014. This might be an indication of slowdown in activity due to the fact that many modernisation projects have been completed or are approaching commissioning. The point is that there are still high-value contracts being signed. Russia’s refining sector has a capacity of 6.3 million barrels per day (b/d) and according to EY there are around 50 refineries in Russia, of which 25 have capacity of five million tonnes per annum (tpa) or more. There are also eight independent refineries with capacity of more than one million tpa, and 15 small refineries with capacity of less than one million tpa. Rosneft is the largest player with nine major refineries and several small plants, Lukoil owns four large and two small refineries, Gazprom Neft operates two large plants while Bashneft has three. Most of the large Russian refineries were built in the 1950s and 60s and are close to production areas in the western and central regions of the country. These plants are old with low refining recovery rates compared to plants in Europe, the USA and Middle East. In 2011, the government started a national modernisation programme with the aim of increasing the yield of lighter products as well as the quality of fuels produced, by upgrading the existing refineries and adding secondary processing units. It will have revamped and built around 130 secondary processing units by 2020.

@TheEICEnergy

In December 2015 Rosneft announced that it had started to produce Euro 5 motor fuels at all of its refineries. The second phase of the Syzran refinery modernisation will see the addition of a fluid catalytic cracker (FCC) and an alkylation unit. At the Komsomolsk refinery, the second phase of the modernisation will include the construction of a hydrocracking complex. At the Achinsky refinery, work is underway on a hydrocracking complex. A flexicoker is also planned for the third phase of the Tuapse refinery modernisation. At Gazprom Neft’s Omsk refinery a new delayed coker, an alkylation unit and an MTBE production unit are planned. The company is also working on the second phase of a modernisation project at the Moscow refinery, including the Combined Oil Refinery Unit (CORU) for which the Engineering, Procurement and Construction Management (EPCm) contract was awarded in June 2015 to a consortium formed by Tecnimont, Stroytransgaz and other Russian companies. Alongside the refineries modernisation programme are other large downstream projects which have been proposed. On the list is the US$11.5 billion Amur gas chemical complex proposed by Sibur for which a final investment decision is expected in 2017. This project is related to the US$12 billion Amur gas processing plant being developed by Gazprom, which broke ground in October 2015. Rosneft’s US$20 billion Far East refinery and petrochemical complex is another project in the pipeline, which may provide many business supply chain opportunities if it gets from paper to construction. There are another 20 proposed projects in the Russian downstream sector according to EICDataStream. It will be interesting to see how 2016 unravels within the Russian market and how the sector will resist the downward pressures its facing. Natan Yamada, Sector Analyst (Downstream) Email natan.yamada@the-eic.com February 2016

New Members

New EIC Members New Primary Member

New Primary Member

Aberdeen International Business Park Dyce Drive Aberdeen AB21 0BR Tel +44 (0)1224 750 000 Email ross.sutherland2@akersolutions.com Web www.akersolutions.com The Nominated Representative is Mr Ross Sutherland, Strategy Analyst, UK & Africa.

Johnsone House 50-54 Rose Street Aberdeen AB10 1UD Tel +44 (0)1224 620 000 Email jon.brough@arnlea.com Web www.arnlea.com The Nominated Representative is Mr Jon Brough, Head of Business Development

Arnlea Systems

Aker Solutions

Arnlea develops and delivers mobile technology solutions via Intrinsix, its software product suite, in the supply chain and operations management areas. Intrinsix utilises the latest handheld, fixed reader, RFID and barcode technology and can integrate with the customer’s corporate systems. Intrinsix simplifies the receipt, management and relocation of inventory, the visibility and traceability of equipment in logistics activities and the history/condition of an asset. This allows for more efficient and effective inventory, maintenance and inspection strategies.

Aker Solutions is an international provider of subsea production equipment and offshore field design. Its portfolio of oilfield products, systems and services stretches from concept studies and frontend engineering to subsea production systems, maintenance, modifications and operations services and solutions for extending the lifetime of oil and gas fields. The company is committed to operational excellence. The main customers are international, national and independent oil and gas companies around the globe.

Intrinsix captures inspection results for any and all equipment and material but also has specific products for hazardous areas, hydro carbon releases (flanges, small bore tubing, and flexible hoses) and operator rounds. Arnlea’s Intrinsix software product suite delivers real operational efficiency, asset integrity and regulatory compliance, reducing operating costs and improving safety.

New Global Member

Beldam Crossley Ltd

Lostock Industrial Estate Lostock Bolton BL6 4BL Tel +44 (0)1204 675 702 Email ian.harbottle@beldamcrossley.co.uk Web www.beldamcrossley.co.uk The Nominated Representative is Mr Ian Harbottle, Product Manager.

New Primary Member

Garic Ltd

Kingfisher Park Aviation Road, Pilsworth Bury BL9 8GD Tel +44 (0)161 766 8809 Email des.pate@garic.co.uk Web www.garic.co.uk The Nominated Representative is Mr Des Pate, Head of Industrial Sales.

Beldam Crossley was founded in 1876, during that time it has achieved an unrivalled reputation for providing advanced sealing, bearing and polymer based products. This experience allows the company to offer safe and highly reliable solutions for use in the most arduous of conditions.

Garic is one of the most trusted specialised plant and welfare facility providers in the UK. It works hard to maintain its reputation for exceptional customer service and outstanding product innovations. The company is passionate about providing the very best hire, sales or bespoke solution for your site.

Its products are used globally across many industrial sectors and include: skidway systems and slide bearings, compression packings and sheet jointings, high temperature cord seal, bearings and machined components and high performance engineering plastics. With an in-house research and development centre situated in the UK, Beldam Crossley is able to formulate materials suited to a specific application.

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@TheEICEnergy

Garic manufactures, hires and sells everything you could possibly need for your site including: welfare and accommodation units, environmental solutions, tower lights, power generation, dust control, wheel and boot washing, fuel and water storage, powered access, HVAC, storage solutions and plant. Garic’s products are regarded as some of the most innovative and ecoefficient on the market today. 4

February 2016

New Members

New Global Member

50 Churchill Square Kings Hill West Malling Kent ME19 4YU Tel +44 (0)1732 529 641 Email prohaska@bhdt.at Web www.hitzinger.co.uk The Nominated Representative is Mr Manuel Prohaska, Head of Oil & Energy Department.

Preston Farm Business Park Stockton-on-Tees TS18 3TS Tel +44 (0)1642 679 135 Email uk@ipspowerfulpeople.com Web www.ipspowerfulpeople.com The Nominated Representative is Mr Kelly Boyce, Manager.

Hitzinger UK Ltd

Interocean Personnel Services (UK) Ltd

Hitzinger is a UK based company and a member of the Dr Aichhorn Group. Also within the Dr Aichhorn Group is BHDT. BHDT is a customer-focused company, specialising in turn-key solutions.

For over 27 years iPS has been an international recruitment and crewing agency which combines experience, indepth knowledge and people to successfully serve the maritime, offshore, oil and gas and tunnelling industries. Its expertise and company values always secure the optimal solution for clients and candidates.

The company is a qualified partner of high pressure equipment for the chemical and petrochemical industry, as well as in the oil and energy industry where a new team of international experts is developing a range of items such as compact and special flanges, clamp connectors, high pressure piping and subsea valves.

iPS is the key source for personnel solutions regarding all aspects of its industries. iPS has experience in recruiting highly trained and experienced personnel, from a single specialist to a full team. Its consultants are able to recruit, select and deploy qualified personnel from every corner of the world.

New Global Member

17 Sandyford Place Glasgow G3 7NB Tel +44 (0)141 221 3075 Email s.thornley@malingroup.com Web www.henryabram.co.uk The Nominated Representative is Mr Steven Thornley, Sales Director.

4th Floor Newminster House 27-29 Baldwin Street Bristol BS1 1LT Tel +44 (0)333 344 9700 Email tom.nixon@mde-group.com Web www.mde-group.com The Nominated Representative is Mr Tom Nixon, Managing Director.

Malin Group

MDE Consultants

Henry Abram and Sons is a provider of heavylift and logistics chartering and transportation services and is part of the Malin Group which operates across a wide sector of the marine and offshore industries.

MDE believes in balancing the interests of clients, employees and contractors. The company aims to deliver the same high professional and personalised service and attention that it expects in business relationships.

Through strong organic growth the company has created a leading independent provider of comprehensive services to support a diverse and growing client base. The combined strength, skill and experience within Malin Group enables it to deliver additional customer value while retaining the benefits of specialist skill sets.

MDE will contribute to taking contractors, clients and projects from good to great. It will always look for improvements and it will always focus on its KPI and core values. Four core values summarise what MDE stands for and the way it does business: professional, proactive, respect, enjoy.

Services provided include complex marine transport and shipping solutions, turnkey vessel mobilisation, new ship design, marine systems, feasibility studies and analysis. The companyâ&#x20AC;&#x2122;s experienced fabricators, naval architects, marine engineers and draughting teams based in Aberdeen and Glasgow provide the strength in depth required to support clients.

www.the-eic.com

@TheEICEnergy

MDE is committed to its vision and core values. They constitute the foundation of its professional work, its interaction with clients and co-workers. The company demands compliance with these values and constantly evolves according to these beliefs, creating tangible value for clients, partnerships and the firm.

February 2016

E2S Warning Signals

Det-Tronics has announced the release of a photoelectric explosion-proof rated smoke detector. The DetTronics® SmokeWatch™ U5015 detector is a Class I Division 1, 2 and Zone 1 explosion-proof rated smoke detector that is suitable for hazardous, industrial and commercial applications. The Det-Tronics SmokeWatch smoke detector has a unique design that operates effectively in both smoldering and rapidly growing fires. The device is certified to FM 3230, the standard in smoke detection performance. The photoelectric operation and signal processing features of the detector are an enhanced smoke detection technology appropriate for either large, integrated environments or smaller installations.

E2S Warning Signals has introduced a SIL 2 version of its flagship BEx range of explosion proof alarm horn sounders and Xenon strobe beacons.

Power management company Eaton has released full details of its extensive range of continuing professional development (CPD) seminars. Designed to suit a variety of professional backgrounds, the seminars provide easily transferable information which will help participants improve the safety, efficiency and reliability of electrical infrastructure in buildings. The seminars, covering topics ranging from lighting to security, are all accredited by CPD, RIBA or CIBSE, giving participants points towards their chosen CPD scheme. Eaton CPD seminars incorporate material that is up-to-date, informative, and relevant, and are delivered by Eaton’s highly qualified team of trainers.

The new IECEx and ATEX certified BEx horns and strobes are designed and tested to ensure a 99.9% reliability rate, bringing plant safety to new levels. To meet the requirements of SIL 2, a combination of software and hardware in the new units accurately monitors and interprets the sound output of the horn or the light output from the Xenon strobe to check it is functioning correctly. The fault monitoring reports back to the control panel utilising either separate fault contacts or by the introduction to the monitoring circuit of a series resistor.

The SmokeWatch U5015 smoke detector can be integrated into process control systems or a conventional fire panel through outputs that include 0-20 mA, a localised LED, and relays. Through its self-checking circuitry, the detector communicates its health status by conducting automatic optical and electrical fail-safe checks every one second.

The key benefits are: the correct functioning of the signalling device function is checked and communicated to the control panel; time consuming physical inspections are eliminated, reducing running cost; plant safety is increased because all devices are confirmed to be operating; the BEx units are designed to integrate seamlessly into the SIL 2 environment.

For more information please visit: www.det-tronics.com

A detailed manual is downloadable from: www.e2s.com/SIL2

Eaton’s new CPD Training Brochure provides information about the 13 accredited seminars that are currently available in the UK. These include, de-energising the office, Building Regulations Part L2 overview, LED lighting, understanding how intruder alarms work, power factor correction, and basic fuse-ology. Copies of the new brochure can be downloaded from: electricalsector. eaton.com/TrainingUK To learn more about Eaton visit: www.eaton.uk.com/electrical www.the-eic.com

MEMBER NEWS As the UK’s largest power station, Drax’s coal hopper shed is in use 24/7 and had become a very poorly lit working environment. Regular two-yearly maintenance was a problem, as track damage had made access difficult and prevented timely replacement of failed SONs, so a more reliable and high performance lighting solution was needed. Hadar Lighting was called in by Drax’s electrical maintenance technician and proposed replacing the 20x400W high bay track-mounted SONs and 30x70W trackside fittings with 20x160W LED high bays and 15x100W LED floodlights. The glare-free LED fittings provide a much better working environment throughout the shed. By reducing the total number of fittings from 50 to 35 and total wattage from 11,050W to 4,700W, Drax has been able to cut its energy use from 5.52 to 2.35W/sqm and its carbon emissions by almost 27 tonnes annually. Now maintenance needs are vastly reduced as LED fittings run at a much lower temperature than the SONs and are designed to dissipate driver heat away from the fitting, so they do not attract dust and dirt from the atmosphere. The LED luminaires also carry 5-year warranties, so lamp failure is no longer an issue. For more information please visit: www.hadar-lighting.com

IMI Critical Engineeriing, the global leader in the design and manufacture of critical flow solutions, has unveiled plans to build a new £9 million production facility in Shanghai.

Despite challenging market conditions, IMI Plc is to go ahead with the investment to support its rapidly growing customer base in the region. Given that 40% of all new global fossil and nuclear power projects are in China, it is an area of key strategic importance.

The importance of China within the global energy market will only continue to grow in the years to come and we hope to make the most of this by investing now. Roy Twite, Divisional Managing Director, IMI Critical Engineering Significant demographic changes within the Chinese market over the past few decades have seen a rise in living standards as well as unprecedented levels of urbanisation, both of which have fuelled a rise in energy consumption and demand. Further growth is expected over the medium to long term. Due to become IMI’s second most important market over the coming decade, the new facility is expected to prove vital in the future. With a completion date set for within 18 months, the new factory will supply bespoke actuation and control systems and valves for use within the power sector. IMI Critical Engineering will also establish a full team of engineers on the ground in Shanghai, providing practical, hands-on skills and expertise, enabling IMI to fully satisfy customer requirements. For further information, please visit: www.imi-critical.com

Rotork’s acquisition of Roto Hammer adds a comprehensive range of valve chainwheels to the range of valve mounting kit and associated services provided by Rotork. The well-established Roto Hammer range of chainwheel products enables hard to reach and stubborn manually operated valves to be safely operated without risk of injury. During the company’s 50 year history its range of products has grown to now include valve extensions, floor stands, gear operators and customised solutions. Rotork Valvekits supplies a vast array of valve and actuator related products, including mounting kits, extension stems, locking devices, worm gears, bevel gears, accessory mounting brackets, linkages and panels for the fitting of filter regulators, positioners and solenoids. At Valvekits factories in the UK and USA, products are created in-house by highly trained design teams and manufacturing is performed with the latest CNC machinery and lathes. Mounting kits, in mild and stainless steel, are designed and manufactured to the exacting standards of ISO 9001 and can be supported with stress calculations and final-element analysis for customer peace of mind. Swift delivery is another Valvekits service benchmark; customers can obtain a same-day quotation in many cases, often enabling delivery to be achieved within 48 hours. The addition of Roto Hammer complements these products and services, further strengthening Rotork’s capabilities as a supplier to the global valve manufacturing industry. For more information please visit: www.rotork.com @TheEICEnergy

Siemens

With over 850 units sold and more than 88 million fleet operating hours, Siemens TB5000 industrial gas turbines are some of the most reliable and hard-working turbines in their class. In an effort to extend the lifecycle of these proven units even further, Siemens has developed new and improved TB core engines. The new core engines, of both TB4900 and TB5400 ratings, will adopt the latest technology designs and enhancements from Siemens’ current small industrial gas turbine portfolio, including improvements for low ambient operation. First introduced for commercial application in 1970 and retired from the company’s new product portfolio in 2002, the TB5000 product line offered high reliability and long life, characteristics associated with welldesigned turbo machinery. Many of the units are operating in challenging climate conditions, such as in the deserts of the Middle East and in the low temperature environment of the Alaskan North Slope. Based on the size and age of the operating fleet, Siemens recently determined the majority of these units could benefit from newly designed core engines and has set out to build and assemble the first 20 at the Siemens Service Product Centre of Competence in Aberdeen.

The modernised core engines and new control system upgrades will also provide customers the opportunity to lower overall costs by reducing the need to replace parts as frequently in the aging machines. Siemens has introduced a new blade and disc design for the compressor turbine section, eliminating the method of blade retention through material deformation. This new method simplifies the assembly process and draws on the proven technology of the modern gas turbine, underpinning the future of the longproven TB product. Installation of the new core engines is set to begin in early 2016. For more information please visit: www.siemens.co.uk

Oil and gas company Eni Norge approached valve safety expert Smith Flow Control to help simplify its valve processes on the Goliat Field oilfield. Smith Flow Control provided a solution by developing a custom-built operating panel that enhances safety and increases efficiency. It does this by moving the control and operation of Eni Norge’s large number of valves to a single, safe location.

The electronic operating panel works as a communication and verification system and enables an operator to control a sequence of actuated valves directly from the panel. Two operating panels were installed on a floating production, storage and offloading vessel built-for-use on the Goliat Field, the first oilfield to be developed in the Barents Sea. Although the operating panel can be used in a wide variety of applications, in this case the panel was specifically designed for use with a pigging procedure. Each panel controlled four valves and incorporated two mechanical interlock key units to ensure a specific sequence of operation. For example, an operator can select to close valves from the panel. An LED lights up to confirm the valve has reached its fully closed status. The incorporation of mechanical interlocks allows the operator to safely continue the sequence of the pigging process; after the panel has been isolated and all the valves closed and locked, the final key is released to manually unlock the pig trap door to load or unload a pig. Used in this way the operating panel enhances safety but also serves to streamline complex processes and boost efficiency by providing a onestop control and verification system. Visit: www.smithflowcontrol.com

Subsea engineering company Sonardyne International has successfully demonstrated its wireless integrity monitoring technologies during a series of in-water demonstrations held at NASA’s Neutral Buoyancy Lab (NBL) in Houston, Texas. Hosted by OneSubsea, a Cameron and Schlumberger Company, senior oil company executives, chief engineers, equipment specifiers and offshore operators attended the two-day technical symposium to witness first-hand the capabilities of Sonardyne’s and other vendors’ subsea innovations. www.the-eic.com

MEMBER NEWS

OneSubsea conceived the technical symposium as a way for invited manufacturers like Sonardyne to demonstrate how subsea asset monitoring and electric oil field technologies are able to integrate with OneSubsea’s own Ethernetenabled communications network. The NBL proved the ideal test bed for this unique event, allowing each manufacturer to demonstrate how their solutions enable asset management teams to make more informed decisions regarding planned maintenance, structural integrity and enhanced oil recovery programmes. Sonardyne deployed acoustic data telemetry, sonar imaging and optical communications technologies to simulate some of the typical remote inspection and intervention scenarios its low risk technology can be utilised for. 6G sensor nodes suspended mid-water were used to show how critical data from remote assets such as satellite wells can be recovered using robust, long range acoustic communications. On the pool floor was Sentry IMS, a wide area sonar that automatically warns operators of integrity breaches around subsea oil and gas assets. Positioning moving targets in the water was Ranger 2, a high accuracy system for tracking and commanding ROVs and AUVs as they carry out their work. Creating significant discussion amongst attendees was Sonardyne’s high speed optical data modem, BlueComm. It was used to harvest mission data at very high data rates and to provide the vehicle with details of its next mission. With the exception of an acoustic emergency stop using Sonardyne’s WSM6+ minibeacon, BlueComm was the only means of communication between the Sabertooth ROV/AUV and shore during the entire 30 minute demonstration run. Please visit: www.sonardyne.com

Sparrows Group, and its cable and pipe-lay solutions (CPLS) division, has reinforced its international footprint in the USA after being awarded a contract by Oceaneering International to design and manufacture two 500-tonne powered and jack-able under-rollers.

The new under-roller system, through its versatility and mobility, offers a wide range of benefits. Suitable for use with reels of up to 11.4m outer diameter, it provides up to 10 tonnes of line pull at the outer reel diameter which is particularly beneficial for steel-tubed umbilicals – a more rigid product that requires greater effort to spool around the reel.

Sparrows

The event was followed by a further two days of demonstrations organised by underwater vehicle manufacturer, Saab Seaeye, with Sonardyne as its primary technology partner.

Key to Sparrows securing the contract is the company’s in-house engineering expertise and facilities in Aberdeen where the underrollers are to be designed and manufactured before undergoing testing. The under-rollers will then be delivered to Oceaneering in Panama City where Sparrows will perform the assembly and site acceptance testing. Local after-care support for the under-rollers will be supplied by Sparrows Group’s service centre in Slidell, Louisiana, where the company has a number of specialist technicians with the capability to maintain and repair this type of equipment.

The complete under-roller unit, when attached to a set of cradles, can be lifted via four lifting points. With packing structures for differing reel diameters the system can be used for differing reel cradles. This enables the unit to be versatile in terms of the reel dimensions it can be used with. Each of the two 500-tonne underroller systems include two drive carriages, two idler/lift carriages and two spreader beams, one hydraulic power unit and one remote control unit as well as one lifting sling set and a set of interconnecting 15 metre deck hoses. For more information please visit: www.sparrowsgroup.com

This contract award marks a significant milestone for Sparrows Group in that it underlines the added value we bring through our integrated services, responsiveness and after-care support. Stewart Mitchell, Chief Executive Officer, Sparrows Group @TheEICEnergy

Events Diary

UK, Overseas & Training January 2016

27 Export Showcase Risk and Opportunities in Libya 28 Business Presentation Opportunities with Prumo Logística 28 Regional Showcase Opportunities in Canada

KMD Business Centre, Aberdeen EIC Rio de Janeiro EIC Houston

February 2016 4 Industry Overview Fundamentals of Oil & Gas 10 Management Course Presentation Skills 11 Industry Overview Fundamentals of Nuclear 11 Sector Showcase Energy from Waste Showcase 15 Business Presentation Opportunities with MMHE 16 HSE Training Pressure Equipment Directives 18 Industry Overview Fundamentals of FPSOs 18 Corporate Entertainment EIC Middle East Golf Tournament 2016 23 Industry Overview Fundamentals of Petroleum Engineering 23 Regional Showcase UKCS Showcase: Decommissioning 23 Business Presentation Opportunities with Fluor International 25 Regional Showcase Southern Region Contractors Update

EIC London EIC London EIC London Derby Conference Centre EIC Kuala Lumpur EIC London EIC London The Els Club, Dubai EIC London Aberdeen EIC Kuala Lumpur EIC London

March 2016 2 Technical Workshop Introduction to Energy from Waste 3 Technical Workshop Introduction to Centrifugal Pump Design 7 Management Course Finance for the Non Finance Manager 9 Management Course Business with International Contractors 9 Management Course Understanding Terms and Conditions 10 Management Course Tendering for Success 10 Business Presentation Opportunities with Parnaíba Gás Natural 15 Technical Workshop Introduction to Compressors 15 Industry Overview Fundamentals of FPSOs 15 Industry Overview Fundamentals of Oil & Gas 16 Management Course Business with International Contractors 16 Industry Overview Fundamentals of Refining & Petrochemicals 17 Corporate Entertainment EIC Annual Welsh Showcase and Dinner 22 Sector Showcase Opportunities in Iran – Post Sanctions 31 Technical Workshop Introduction to Gas Turbines

Lakeside EfW, Slough SPP Pumps, Gloucestershire Four Points by Sheraton, Dubai EIC London Four Points by Sheraton, Dubai EIC London EIC Rio de Janeiro Siemens, Duisburg EIC Rio de Janeiro EIC Houston EIC London EIC Houston Cleddau Bridge Hotel, Pembroke Dock Yas Island Rotana, Abu Dhabi EIC Rio de Janeiro

April 2016 7 Industry Overview 12 Technical Workshop 13 Industry Overview 14 HSE Training 19 Technical Workshop

Fundamentals of Oil and Gas Introduction to Control Valves Fundamentals of Natural Gas Introduction to the ATEX Directives Introduction to Electric Motors

EIC London Severn Glocon, Gloucester EIC Rio de Janeiro SGS Baseefa, Buxton ATB Laurence Scott, Norwich

Fundamentals of Oil & Gas

EIC London

June 2016 8 Industry Overview

For further information on UK and overseas events and training, please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

February 2016

Events Diary

Exhibitions & Delegations 2016 Status 22-25 February Overseas Delegation to Egypt Fully Booked 29 February- Overseas Delegation to Turkey Booking Now 3 March 6-10 March Overseas Delegation to Algeria Fully Booked 20-23 March Overseas Delegation to Oman and UAE Booking Now tbc March Overseas Delegation to Brazil Register your Interest 4-8 April Overseas Delegation to Colombia Booking Now 2-5 May Offshore Technology Conference (OTC) Fully Booked 23-27 May Overseas Delegation to Thailand and Malaysia Register your Interest tbc May Overseas Delegation to Iran Register your Interest 13-17 June Overseas Delegation to Kenya and Uganda Register your Interest 28-30 June World Nuclear Exhibition (WNE), Paris Booking Now 4-8 July Overseas Delegation to Argentina Register your Interest 29 August- Offshore Northern Seas (ONS), Norway Booking Now 1 September 5-9 September Overseas Delegation to Japan Register your Interest 3-7 October Overseas Delegation to Myanmar Register your Interest For further information on exhibitions and delegations, please contact: events@the-eic.com @EICOverseas

National Events

2016 17 May EIC Connect Middle East Abu Dhabi 13 October EIC National Dinner London 22-23 November EIC Connect Oil & Gas Manchester

Status Booking Now Register your Interest Register your Interest

2017 21-22 November

EIC Connect Energy Manchester

For further information on national events, please contact: nationalevents@the-eic.com

RIO OIL & GAS

2016

24-27 OCTOBER 2016 Join the UK Pavilion at Rio Oil & Gas 2016

contact EXPO AND CONFERENCE mark.gamble@the-eic.com www.the-eic.com

@TheEICEnergy

February 2016

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations World Nuclear Exhibition (WNE) 28-30 June 2016 Paris #EICWNE16 An event for every company in the nuclear sector, WNE covers all aspects of the nuclear industry from new build and construction, through operations and maintenance to decommissioning. The event is the perfect showcase for new technology, expertise and solutions, bringing together future customers and major contractors.

Overseas Delegation to Egypt 22-25 February 2016 #EICEGYPT16 The EIC in partnership with UKTI is organising an oil and gas overseas trade delegation to Cairo and Alexandria in Egypt. With proven oil reserves of 4.4 billion barrels and proven gas reserves of 77 trillion cubic feet, Egypt is the largest non-OPEC oil producer and the second-largest dry natural gas producer in Africa. As production has stagnated over the last few years and consumption has increased rapidly, the formerly hydrocarbon exporting country has to advance oil and gas developments in order to meet domestic market growth.

With the full support of the French nuclear industry including the major international reactor vendors, WNE represents a key event for companies looking to win work in the UK or international nuclear market. It is also a great opportunity to connect with companies in the French nuclear industry, including key players in the EDF/AREVA supply chain. Contact Mark Gamble: Tel +44 (0)20 7091 8616 Email mark.gamble@the-eic.com

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

Offshore Northern Seas 2016 (ONS) 29 August-1 September 2016 Stavanger, Norway #EICONS16 Despite the challenging market conditions due to the low oil price, field developments continue and new discoveries are being made on the Norwegian Continental Shelf. Despite the discoveries not being ‘commercially viable’ currently the new discoveries point to significant opportunities for the supply chain in the future.

Overseas Delegation to Turkey 29 February-3 March 2016 #EICTURKEY16 Situated between the Middle East and the Caspian Region to the east, with over 75% of global oil and gas reserves, Turkey plays a crucial role in linking supply and demand.

ONS is at the forefront in discussing new technologies and provides an outstanding insight into what industry should expect in the coming years. Cost cutting and standardisation were discussed significantly at the last ONS event, despite the high oil price, and industry has since reacted. On the most significant project on the NCS for several years, John Sverdup, action has been taken. FMC Technologies has recently signed a contract to deliver new and cost efficient subsea equipment. To be part of the exhibition contact: amy.ford@the-eic.com

The delegation coincides with the GREAT Summit organised by UKTI which aims to bring the NOCs of Turkey, Azerbaijan and Kazakhstan together with ‘best in class’ British expertise in the areas of exploration, reservoir, well and drilling management, field integrity and asset management, gas utilisation and finance/commercial/project management to discuss current/future development plans and opportunities. For more information contact: mark.gamble@the-eic.com Overseas Delegation to Algeria 6-10 March 2016 #EICALG16 The EIC is organising an oil and gas trade delegation to Algeria. Delegations are an excellent introduction to a new market in a supportive environment and the perfect way to strengthen existing business relationships. Delegates will have the opportunity to attend group meetings with key local players as well as briefing meetings from qualified speakers with in-market experience and the opportunity to meet with local companies.

Rio Oil & Gas 2016 24-27 October 2016 Rio de Janeiro #EICROG16 Rio Oil & Gas 2016 is expected to attract over 53,000 delegates including senior procurement executives, project managers, specifiers and engineers, who will be looking to visit the EIC Pavilion to identify UK capability for offshore oil and gas projects in Brazil. Despite adverse economic conditions, Brazil is still Latin America’s biggest oil and gas market with opportunities present in the offshore construction, subsea and field life extension segments. Petrobras’ 2015-19 business plan calls for an investment of US$130.3 billion, of which US$108.6 billion will be allocated to exploration and production. To be part of the exhibition contact: mark.gamble@the-eic.com

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

@TheEICEnergy

February 2016

EIC UK Events

UK Events

Southern Region AGM Thursday 25 February 2016 EIC Conference Suite, London Would you like the opportunity to represent your company and help shape the future direction of the EIC within the region? If so, you can nominate yourself or a colleague for a place on the EIC Southern Committee. EIC Regional Committees meet four times a year at various locations, with representation from a wide range of disciplines. Committee meetings enable members to discuss market trends and industry news, feedback on regional activities, suggest topics and speakers to include in our events programme and also afford plenty of networking opportunities. Being part of the Committee provides an excellent platform to raise your personal and company profile. For further details please contact: helen.doona@the-eic.com

Forthcoming Events

Sector Showcase Energy from Waste Showcase Thursday 11 February 2016 Derby Conference Centre The UK’s Energy from Waste industry has experienced steady contracting activity during FY 2014-15, with 24 contracts awarded including eight major EPC contracts. With proof that increasing economic value is attached to a strong re-use agenda, the EIC is committed to tracking developments across this sector on a global level through our database EICDataStream. This event aims to provide an overview of the sector, bringing together a panel of speakers from some of the key players in the industry. Providing insights into how these organisations operate and the potential for the supply chain, this event will be helpful to those who are looking at this as a new sector to complement their current portfolio and will also act as an update for those who already work in the arena. To book on this event contact: jennifer.hole@the-eic.com

Corporate Entertainment EIC Annual Welsh Showcase and Dinner (previously Pembroke Supper) Thursday 17 March 2016 Cleddau Bridge Hotel, Pembroke The Annual Pembroke Supper, which has run for over 17 years for EIC members doing business in and around South Wales, will return this year even bigger and better than before. The initiative has been expanded to cover all the opportunities that Wales has to offer UK suppliers, and will encompass a regional showcase, networking reception and dinner. The Welsh showcase will bring together a panel of speakers to talk about the projects taking place in the region, such as the Wylfa nuclear power plant, several tidal lagoon projects and the IrelandUK Interconnector project. Join us on 17 March to find out about some of the UK’s major projects being developed in Wales, network with colleagues, contractors and operators in the region and enjoy a three course industry dinner. To book on this event contact: jennifer.hole@the-eic.com

Regional Showcase UKCS Showcase: Decommissioning Tuesday 23 February 2016 Aberdeen In the coming decades offshore decommissioning activity in the North Sea is projected to increase as the existing infrastructure approach the end of their productive life. There are some 470 installations that will require decommissioning over the next thirty to forty years. The cost of decommissioning is estimated at £40 billion, which is pushing operators (along with the treasury) to reduce this cost. Supply chain companies hold the key to alternative techniques for enhanced cost saving and efficiencies. Therefore, this event will bring together operators and the supply chain to ensure an awareness of the decommissioning opportunities. It is also important to learn from industries with practical experience of decommissioning in order to maximise any possible return. Babcock will provide an insight into nuclear decommissioning. To book contact: pamela.nicholson@the-eic.com

Contact Helen Doona, UK Regional Manager (Northern) Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com Jennifer Hole, UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com

Regional Showcase Southern Region Contractors Update Thursday 25 February 2016 EIC Conference Suite, London This event will see representatives from some of the major players with a presence in the south come together to address the supply chain and deliver key messages that they want to impart. This will include important topics such as innovation, collaboration and cost savings which are of considerable significance given the current challenges in the marketplace. Alongside the presentations, there will be one-2-one appointments and fantastic networking opportunities. Register your interest: jennifer.hole@the-eic.com

Sarah Hutcheon, Regional Manager (Scotland & Norway) Tel +44 (0)1224 628 250 Email sarah.hutcheon@the-eic.com Pamela Nicholson, Office & Events Manager (Scotland) Tel +44 (0)1224 628 251 Email pamela.nicholson@the-eic.com

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

@TheEICEnergy

February 2016

EIC Middle East News

Middle East News Office News

Forthcoming Events

Corporate Entertainment EIC Middle East Golf Tournament 2016 Thursday 18 February 2016 The Els Club, Dubai

February 2016 could prove to be a significant milestone for the global oil and gas community when we see the easing of sanctions on Iran. It is perhaps an exaggeration to suggest that the flood gates will suddenly open, but it is fair to say that an important market that has been closed to UK companies for a significant period will come alive once more. As a result, we aim to provide as much information and assistance to our members as we can, so that you can take full advantage. We have our Iran Showcase scheduled for 22 March and then later in May we are planning a delegation that will coincide with the Iran Oil & Gas Exhibition. For details visit: www.the-eic.com/Events

Management Course

Finance for the Non Finance Manager Monday 7 March 2016 (2 day course) Four Points by Sheraton, Dubai Sector Showcase Opportunities in Iran – Post Sanctions Tuesday 22 March 2016 Yas Island Rotana, Abu Dhabi

There have also been some geo-political developments that Middle East watchers might need to be aware of. We have seen the two divided Libyan Government factions reach an agreement to form a unity Government. This could certainly result in UK business being given the opportunity to participate in an oil and gas market that has sharply declined since the country was enveloped in civil war. The effect of Russia entering the fray in Syria has still to be assessed, plus the situation in Yemen shows no sign of settlement, which unfortunately has not been helped by the strained diplomatic relationships between Iran and its Gulf neighbours.

To register your interest or to book on the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Mitsui to develop Ibri and Sohar 3 power project A consortium of Mitsui & Co, ACWA Power and the Dhofar International Development and Investment Holding Co (DIDIC) has been awarded the contract to develop the Ibri and Sohar power project. The project comprises of two combined-cycle gas turbine power plants split over two sites with a total capacity of 3,150MW. Under the contract, the consortium will be responsible for construction, maintenance and operation of both facilities. The US$2.3 billion project is due for completion in early 2019. ORPIC awards four EPC contracts Oman Oil Refineries and Petroleum Industries Company (ORPIC) has awarded four main EPC contracts for its Liwa Plastics Complex to international contractors. A joint venture of CB&I and CTCI has won the steam cracker and utilities package, Technimont SpA has won the contract for the plastics units, a joint venture of GS Engineering and Construction and Mitsui & Co has won the NGL extraction package and Punj Lloyd has been awarded the contract for the NGL pipeline. The awarded EPC packages are estimated to be worth a total of US$4.5 billion.

The Hydrasun team in 2015

February is the month of our Golf Tournament, which is now in its sixth year. Once again, the majority of the playing places have been taken and we are most grateful to those members who continue to support the event. We haven’t been able to attract an overall sponsor so far, but we are still confident that the day will prove to be as popular as ever.

Doosan Babcock wins maintenance agreement Doosan Babcock has signed a long-term maintenance agreement with Taweelah Asia Power Company (TAPCO) for the provision of essential maintenance and technical support services to Abu Dhabi’s Taweelah B power and water desalination plant. Under the eight-year contract, Doosan Babcock will provide parts and equipment, technical support and repair and maintenance services for facilities including thermal boiler units, heat recovery steam generators, multi-stage flashing water desalination units and water tanks.

On the training side, ‘Understanding Terms and Conditions of the Contract’ has been re-written and expanded to a two-day course, which we will be delivering next month. We also intend to repeat ‘Liquidated Damages’ later in the year. Once more, if there are any specific requests for training courses, please let us know. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

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

@TheEICEnergy

February 2016

EIC Asia Pacific News

Asia Pacific News Office News

Regional Comment

We have had repeat visits from other members such as Permasense, Bermad, Elfab, Weir Group, SNC-Lavalin and Balltec who have utilised our hot desks and offices during their business visits to Kuala Lumpur. While they are in town, our team has been assisting them with contacts and appointments with relevant industry players. We are hoping that more members will take advantage of the facilities available in the Kuala Lumpur office including our meeting rooms and offices.

Increased production at Banyu Urip field, Indonesia The onshore central processing facility at the Banyu Urip field in Indonesia has commenced production to more than 130,000 barrels of oil per day. According to ExxonMobil, once full field production is reached, it will represent 20% of Indonesia’s 2016 oil production target. The field is expected to produce 450 million barrels of oil over its lifetime.

Bidding for India’s four ultra-mega power plants According to the Associated Chambers of Commerce & Industry of India (ASSOCHAM), the bidding process for four ultra-mega power plants (UMPPs) is expected to start in Q1 2016. The identified bids include the Cheyyur, Odisha, Bihar and Jharkhand UMPPs. The Power Minister of India said that coal production is to increase by one billion tonnes by 2020 as compared to 60 million tonnes in 2015.

We are pleased to welcome Amarinth Ltd, manufacturer of pumps for general industrial, chemical and petrochemical applications, as our tenant occupying one of the LaunchPad offices. Amarinth has appointed Dzairel Yusuff as its local sales manager based in Kuala Lumpur. Despite the current economic conditions, Amarinth is optimistic that the market outlook for Asia is positive and is pressing ahead with its long-term sales and marketing efforts through its new office.

Indonesia invites bids for three shale gas blocks The Indonesian government has invited bids for unconventional hydrocarbon blocks – Blora, onshore Central and East Java; Batu Ampar in East Kalimantan; and Central Banganai, onshore Central and East Kalimantan. The government has identified seven shale gas basins which include Baong, Telisa and Gumai, located in Sumatra and deemed to contain the biggest gas reserves; there are two basins each on Java Island and Kalimantan.

Business intelligence plays a more crucial role than ever in the current market slowdown. Bearing this in mind, we are continuing in our efforts to ensure more members in the region are familiar with EICDataStream and that they are using the database to obtain the latest intelligence in their respective areas of business. We have introduced a new training session where our regional analyst conducts training for members who wish to upgrade their skills in using EICDataStream. So far we have conducted two sessions, one in Kuala Lumpur and one in Singapore, where a total of 17 member companies have been trained.

Expansion of petrochemicals in Southern China Shell and CNOOC have signed an agreement to double the capacity of their equally held ethylene cracking facility in Guangdong province to 2 MMmtpa with additional chemicals units. The new facilities are expected to start operation in 2017. Moreover, at the joint venture in Huizhou City which is also the home to a CNOOC refinery, capacity will be expanded to 22 million tons a year in 2017 from 10 million tons.

In November and December we had the opportunity to meet up with operators and contractors from Vestigo, Murphy Oil, Petronas, Petrofac, Deleum, MMHE, Technicas Reunidas, Fluor International and Muhibbah Engineering.

China Petchem complex construction begins Sinopec and Taiwanese firm Dynamic Ever Investments Ltd have started construction of the Petchem complex located on the Gulei peninsula in Zhangzhou, Fujian province. The site will include 16 chemical units and a dock, with partial completion expected by 2018.

If you need any assistance or advice on the region, or for more information about upcoming events, please contact: Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com

Forthcoming Events Business Presentation Opportunities with MMHE Monday 15 February 2016 EIC Kuala Lumpur

China triples proven reserves of shale gas China has nearly tripled the size of proven reserves at its Fuling project, by far the country’s largest shale gas discovery. According to CNPC, the Jiaoshiba block has 273.8 billion cubic metres (bcm). That would take the total proven reserves certified by the Ministry of Land and Resources (MLR) at Fuling to 380.6 bcm, giving it the potential to have a targeted annual output of 10 bcm by 2017. Please see EICDataStream for more details.

Business Presentation Opportunities with Fluor International Tuesday 23 February 2016 EIC Kuala Lumpur

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

@TheEICEnergy

February 2016

EIC North and Central America News

North and Central America News Office News

Regional Comment

Solar and wind tax credits extended five years The US House and Senate have passed a US$1.1 trillion spending bill that includes tax credits for wind and solar power projects. The package includes a retroactive fiveyear extension on the wind Production Tax Credit (PTC) and the solar Investment Tax Credit (ITC). The PTC gives wind developers a credit of US$0.023 per kilowatt-hour for electricity generated to the grid. After that, the credit will maintain its level through 2016 and phase down by 2019. Projects must begin construction before the end of the year in order to qualify.

The New Year was celebrated with much enthusiasm across the energy sector in the North and Central America region. The US Federal Government extended the Production Tax Credit (PTC), which is an inflationadjusted per-kWH tax credit for electricity generated by qualified energy resources, to 31 December 2019, for wind facilities commencing construction. In Mexico, the Ministry of Energy published a call addressed to parties interested in participating in the Wholesale Power Market, a further push for the power sector towards energy market reform. We expect 2016 to give way to much activity across the power and renewables sectors. We are also watching for the fourth licensing round in Mexico to take place this year, which will include the country’s first deepwater assets to go on block, as well as mature and extra-heavy oil fields.

CB&I completes US$229m nuclear build unit sale Westinghouse will cover CB&I for previous, current and future liabilities associated with the construction of four Westinghouse AP1000 nuclear reactors at two power plant sites: the VC Summer power plant in South Carolina and Plant Vogtle in Georgia. Westinghouse agreed to acquire all of the outstanding equity interest in the construction business, CB&I Stone & Webster Inc. The deal includes engineering, construction, procurement, design, installation and testing of the nuclear plants.

If you need assistance in the region, or for information about our LaunchPad services, and upcoming events and training, please contact: Amanda Duhon Regional Manager (North & Central America) Contact: amanda.duhon@the-eic.com

Crude oil export ban lifted After 40 years, the US is once again allowed to export oil to countries other than Mexico and Canada. In December, Congress lifted the ban and companies such as ConocoPhillips and NuStar have already started exports from Corpus Christi, Texas. The light crude oil/ condensate from the Eagle Ford Shale bound for Italy was sold to international trading company Vitol.

Forthcoming Event

Regional Showcase Opportunities in Canada Thursday 28 January 2016 EIC Houston The oil and gas industry is a major part of Canada’s GDP; contributing about CAD$18 billion to the economy and supporting over 500,000 direct and indirect jobs. Ranked third in crude oil reserves after Saudi Arabia and Venezuela, Canada is currently the sixth largest oil producer at 3.92 million barrels per day. By 2025, production is expected to rise to 4.7 million barrels per day. To support this growth, about CAD$2 trillion in investment is needed.

Alberta climate leadership plan announced The Canadian province’s new climate plan will introduce a carbon tax, incentivise renewable generation, phase out coal emissions by 2030, and legislate an emissions cap on oil sands production. The province will also reduce methane emissions from flaring and leakage by 45% by 2025. The taxes raised will be used to build green infrastructure. Dow and DuPont to merge The giants will join forces to form one of the largest global chemical companies, but only for a couple of years. The eventual goal is then to separate into three independent companies: for material sciences, speciality products and agrochemicals. DowDuPont will be dual-headquartered in Midland, Michigan and Wilmington, Delaware.

The Canadian supply chain has historically been dominated by local companies who have grown with the industry. However, as the supply chain evolves, international firms are making strides where both operators and contractors with global knowledge and experience are taking a strong place in the market. These companies will often look towards international suppliers to fill supply chain gaps across the oil and gas sector.

Pemex opens US gas stations Mexico’s national oil company will distribute gasoline for the first time outside of the country. Five stations are initially planned for the Houston market. Meanwhile in Mexico, where the country is undergoing energy reform, the retail gasoline market will be expanded to domestic and foreign competition by 2018.

This Regional Showcase will offer current and future supply chain and project opportunities with operators and contractors, provide guidance on how to do business in the Canadian oil and gas market, and highlight case studies from companies who have been successful in the region. Contact: natalia.bueno@the-eic.com

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

@TheEICEnergy

February 2016

EIC South America News

South America News

Business Presentation Opportunities with Parnaíba Gás Natural Thursday 10 March 2016 EIC Rio de Janeiro

Office News

February is a short month in Brazil due to the Carnival, which stops the country for three working days from 8 February. If you’re planning a visit to South America in the next six months, there are several opportunities to make the most of your visit. On 8 March, the UK Energy in Brazil 2016 event will promote the exchange of knowledge between the UK and Brazil in the energy sector. The event is organized by UK Trade & Investment (UKTI), and three simultaneous workshops will take place covering the following topics: shipbuilding and offshore, subsea, and maximising production.

Industry Overview Fundamentals of FPSOs Tuesday 15 March 2016 EIC Rio de Janeiro

Regional Comment

EPE sees 22 new FPSOs between 2021-24 Brazil’s Energy Planning Authority (EPE) estimates that 22 new floating production, storage and offloading (FPSO) units will start operations in the country between 2021 and 2024, according to its 10-Year Energy Plan approved in December 2015. The study also says that 19 units will be built following a 45-65% local content rule while three units will not feature any local content requirements. EPE’s research was based on Petrobras projects that expect to start operation after 2020 (Florim and Carcará) as well as units planned for the Libra field in the Santos Basin. The government body expects national oil production to increase to 4.8 million barrels per day by 2024 (most of it produced by Petrobras), while Brazil’s internal demand is estimated to hit 2.8 MMb/d.

The EIC has been invited to present at the ‘Colombia: Challenge for the Future’ event in February where we will be promoting our members and liaising with operators and contractors prior to the EIC trade delegation planned for 4-8 April in Bogotá and Cartagena. If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

Forthcoming Events

Bolivia to invest US$9.7bn in 2016-19 The national oil company YPFB has announced plans to invest US$9.7 billion in the Bolivian oil and gas sector in the next four years, with US$2.6 billion set aside for 2016. A major gas exporter to Argentina and Brazil (whose contract is up for renewal in 2019), Bolivia is keen on increasing its dwindling hydrocarbon reserves in order to meet supply agreements. According to a study by the International Monetary Fund (IMF), Bolivia’s known natural gas and oil condensate reserves are expected to deplete by 2030 at current production rates.

The Rio office ended 2015 with a business presentation on 2 December from Queiroz Galvão Exploração e Produção (QGEP) which had almost 40 attendees. QGEP is the largest privately owned Brazilian company in the E&P industry in terms of daily production and is part of the fourth largest engineering and construction group in Brazil. With a diversified portfolio, their highlight has been the acquisition of eight blocks in deep waters offshore Brazil and securing operatorship in five of them.

Chilean energy policy approved President Michelle Bachelet has signed a decree approving the government’s Energía 2050 energy programme which has set a goal of producing 70% of electricity from renewable sources by 2050. Today, Chile produces approximately 47% of its power from renewables, including hydro (40.7%), wind (3.6%) and solar (2.43%). Uruguay to supply gas to Argentina The country is expected to start supplying gas to its neighbour Argentina in early 2017 according to President Tabaré Vazquez. Gas would be supplied by the GNL del Plata LNG regasification terminal, to be built near Montevideo. Although construction was put on hold in 2015 following the withdrawal of Engie and Marubeni from the project, it is understood that the construction of the project’s floating storage and regasification unit (FSRU) is underway.

Speakers were Mr Felipe Barbuto, New Ventures and Portfolio Manager (above left) and Mr Vinícius Passos, Supplier Manager (above right) who explained more about current and future projects and opportunities for suppliers, local content issues and technical and environmental challenges.

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

@TheEICEnergy

February 2016

EIC Training Services

Training Services

Therefore SMEs need to adapt their approach to maximise their chances of winning contracts and succeeding within these markets. But how do they do that? What are the challenges they will need to overcome? And where should they start to begin to assess the risk? To help answer some of these questions we are running a new training course ‘SMEs – How to do Business with International Contractors’ delivered by Tassos Sachinis.

Management Course

SMEs – How to do Business with International Contractors Wednesday 9 March and Wednesday 16 March 2016 EIC London The continuing drop in the oil price coupled with the decline in upstream oil and gas projects in the UK has resulted in major UK contractors and suppliers looking outside of the UK market to pursue opportunities overseas. Although these opportunities can be lucrative, SMEs face a number of challenges when doing business with international contractors.

Tassos is a project manager with over 30 years’ experience of working mostly for major international contractors. This course will provide main contractors and SMEs with: • A proven approach to maximise your chances of winning contracts • The basic business development and marketing tools that a contractor and or supplier needs to develop winning strategies • A realistic insight of what projects expect from suppliers and how projects select suppliers

SMEs are accustomed to bidding using a mix of processes accepted by the British industry standard criteria, including both quality and cost. However these processes for bidding contracts in other parts of the world like Russia, the Middle East, South America, Mexico and Africa are quite different from those in the UK, often varying from country to country and even on different projects within the same country. As well as differing bid processes, projects can also be impacted by local content interventions, differing culture, governing laws and difficult in-country logistics. These risks and factors must all be considered when working in international markets.

The course is structured as a one day training course followed by an optional workshop, maximising on the tools and strategies learnt in day one. During the workshop attendees will be required to bring along data on a potential bid and with the trainer’s guidance will further develop specific action plans and strategies to successfully pursue these bids.