EIC Monthly News February 2015

EIC Monthly News February 2015

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The EIC Chief Executive

The Chief Executive Welcome to the February edition of the EIC Monthly News. It’s hard to believe that we are already in February and spring is just round the corner.

Despite the ongoing low oil price, fields continue to be developed in the UKCS with the most recent contract being awarded by Maersk for the detailed design of a central process facility platform and separate utilities and living quarters platform for the Culzean field. Although Shell recently abandoned a Qatari petrochemical complex, it also announced that in January it signed a Heads of Agreement for a petrochemical complex in Iraq at a cost of around US$11 billion. These are definite signs that although the industry is going through a tough time there is still the commitment from major operators in oil and gas.

Last year saw the 30th anniversary edition of ADIPEC in Abu Dhabi and it was the most successful to date with over 76,000 attendees and more than 1,800 exhibitors, including 18 NOCs and 17 IOCs, with an estimated US$8.5 billion of business generated on site. This year for ADIPEC 2015, which takes place from 9-12 November, we have increased the size of the pavilion by 10% to occupy a total space of more than 1,000 sq m, providing a great platform for UK plc to demonstrate its continued support and engagement in the region. For further details see: www.the-eic.com/Events/OverseasExhibitions/ADIPEC2015

Contents The Chief Executive

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Sector Analysis

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EIC Monitor

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New Members

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Member News

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Meanwhile in the renewables sector we have seen yet another endorsement from the government to spur further investment by adding a further £25 million to Contracts for Difference, the support mechanism for large-scale renewable electricity generation. The aim is to increase the funds available to finance less established technologies, including offshore wind, citing high demand for contracts from potential project developers. All of the major offshore wind projects in the UK are being tracked on EICDataStream, and with cross-sector engagement and innovation being a priority to help drive down costs there are some great opportunities to get involved. See Sector Analysis opposite for more information.

The EIC also recently launched its first UK group to attend Power-Gen Europe, the continent’s largest international power conference and exhibition, which has previously attracted over 11,000 visitors from 100 countries, and more than 400 exhibitors. The event provides an ideal opportunity for companies looking to promote their products and services to key players in conventional thermal generation as well as those interested in worldwide opportunities in the nuclear and renewables sectors. Conference sessions on all three sectors run alongside the exhibition, bringing together a diverse audience. For further information, details are available on the EIC website or contact Amy Ford: amy.ford@the-eic.com The EIC has a wide range of services and global project information which connects our members to global opportunities across the energy sector. If you need assistance with using any of these tools effectively to support your business strategy please don’t hesitate to contact us: membersupport@the-eic.com Claire Miller, Chief Executive

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Events Diary

12

Overseas Events

14

Training Services

16

National Events

17

UK News

19

Middle East News

20

Asia Pacific News

21

North America News

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South America News

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February 2015

EIC Sector Analysis

Sector Analysis Oil and gas knowledge has a role to play in offshore wind It is now a well-known fact that the UK is the world leader in offshore wind with as much capacity already installed as the rest of the world combined since 2008. The development of the sector is strongly supported by the Government. In fact the Electricity Market Reform in the UK has been aimed at strengthening the support for renewables. Last year saw five projects being awarded early stage Contracts for Difference (SSE and Repsol’s 664MW Beatrice project, Dong’s 258MW Burbo 2 and 660MW Walney 3 in the Irish Sea, Statoil/Statkraft’s 402MW Dudgeon and Dong/SMart Wind’s 1,200MW Hornsea 1 off the east coast of England). Moreover, we are soon expecting the results of the first allocation round which will reveal the projects obtaining support under the mechanism. The allocation round expects to feature offshore wind projects.

However, recent times have presented the growing industry with some great challenges as the uncertainty and transition to the support framework have impacted and/or slowed down other developments. This, perhaps more significantly, has been coupled with the task to grow skills and expertise in the sector at home as well as to bring down the cost of the technology, which is a widely debated issue and has been arguably slower than expected.

Back in 2011 a study undertaken by Scottish Enterprise reported that the costs of offshore wind (in Scotland) could be reduced by at least 20% through engaging the oil and gas supply chain. The UK has a long tradition of supplying structure and services to the offshore sector and our existing oil and gas expertise has a key role to play in this. It is no surprise then that the UK is striving to build on this expertise to develop an equally world leading role in offshore wind. Many of the elements of developing an offshore wind project have already been developed by the oil and gas sector, therefore the capabilities for supplying to the offshore wind industry do already exist in the UK. The skills and knowledge built up through 40 years of operation in the North Sea can, for example, be used to shorten project development timescales. The UK has experience in managing offshore construction from concept through to production, with skills in turnkey contractors and specialist niche consultancies.

Of particular prominence is our expertise in the manufacture of ancillary components and deep sea structures. Expertise includes detailed design, fabrication and project management in these areas and many of the challenges associated with designing and fabricating offshore production facilities are shared with offshore wind substations. The UK has also developed exceptionally high safety standards for working offshore which are also transferable. www.the-eic.com

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The oil and gas sector also has leading capabilities to lay and bury both cables and umbilicals and a pool of skilled technicians are already heavily involved in inspection and repair activity, offshore survival and specialist equipment handling and a number of providers offer accredited training in this field. The EIC also runs a number of technical and practical training courses. If you’re interested please contact: terri.sylvester@the-eic.com The UK’s port infrastructure has also been playing an important role in the development and upkeep of North Sea oil and gas assets for decades resulting in a range of locations offering deep water facilities, extensive quay side and adjoining lay down areas which have been identified as being potential bases for offshore wind.

There are of course some challenges oil and gas companies have to consider to take full advantage of this. These include the cost considerations of diverting resources, and the need to adapt to new working, but for those willing to look beyond this and invest in the industry, the potential is considerable. Companies such as DeepOcean have already made the transition. Getting more oil and gas supply chain companies look beyond the sector to the opportunities of offshore wind is going to be vital, as we work towards building and maintaining a leading offshore wind industry in the UK and meeting our carbon reduction targets.

Despite the challenges momentum still very much exists and the role offshore wind will play in the future energy mix in the UK is still presented as a significant one. Developers such as Dong Energy continue to invest in the sector and last year also saw Siemens announce their intention to build a wind turbine manufacturing facility in Hull, giving a much awaited boost to the supply chain.

The Humber region is pitted to become the ‘Aberdeen of offshore wind’. Companies are encouraged to explore these opportunities.

Amisha Patel Head of Power, Nuclear & Renewables Tel +44 (0)20 7091 8612 Email amisha.patel@the-eic.com 3

February 2015

EIC Monitor

EIC Monitor

Contracting levels in oil and gas industry on decline according to EIC Monitor The latest EIC Monitor report shows a significant decline in the levels of contracting activity across the global midstream and downstream sectors in Q4 2014, with overall figures showing the number of major contract awards made since the last quarter contracting by almost a quarter. While promising to see an increase in the number of awards in the upstream sector, actually fewer awards are expected in the coming year against a backdrop of lower oil prices.

In Malaysia, state-owned oil company Petronas has awarded two contracts to Malaysia Marine & Heavy Engineering (MMHE) to build wellhead platforms and jackets for both the Bergading Gas and the Besar Gas Field developments, located offshore Terengganu.

Petronas also awarded EPC contracts to SapuraKencana Petroleum for fabrication of topsides on the Angsi CEOR project in the South China Sea, and for two wellhead platforms on the Tukau Timur Gas Field, offshore Sarawak.

A further two contracts were awarded for EPC work on Ophir Production’s Ophir Oil Field, offshore Terengganu, and EnQuest’s Tanjong Baram Oil Field, offshore Sarawak.

The remaining upstream EPC contracts were awarded over a broad geographical spread of developments globally. Of note, EMAS was appointed to carry out EPC work on both the Dantzler and Big Bend Subsea Tiebacks, which make up part of the Rio Grande complex in the US Gulf of Mexico; while in Brazil, Jurong Shipyard was awarded an EPC contract to convert a VLCC into a FPSO hull for Long Duration Tests (LDT) on the giant Libra field.

Eni’s major Block 15/06: Eastern Hub (Cabaça Norte & Cabaça Southeast Discoveries) project, located offshore Angola, is also progressing with the contract for a FPSO conversion awarded to Singapore’s Keppel FELS.

The number of major contract awards across the global oil and gas industry has steadily declined during the last quarter (Q4: Oct-Dec 2014), dropping to 117 contract awards, a 22% decrease compared to 150 in Q3 2014, but on par with the 118 contracts awarded in Q4 2013.

Upstream Contracting Activity in Q4 2014

In Q4 2014, a total of 64 major contracts (EPC (Engineering, Procurement & Construction), FEED (Front End Engineering Design) and Subsea/SURF (Subsea, Umbilicals, Risers & Flowlines)) were awarded across 53 upstream developments, rising 42% from 45 awards in Q3 2014 and compared to 40 awards in Q4 2013. A total of 33 EPC contracts, 6 FEED contracts and 25 Subsea/ SURF contracts were awarded.

FEED Activity In Q4 2014, West African countries dominated FEED activity, accounting for three contract awards, followed by the UK (2) and Malaysia (1). In West Africa, Doris Engineering has been appointed to carry out detailed design and procurement for Total’s Dalia Debottlenecking Development in Angola; Wood Group Mustang has been awarded a FEED contract for a new platform at the Tchibala, Ebouri, Avouma, Etame Offshore Oil Field (Etame Block) development in Gabon; and KBR has been awarded a FEED contract for Chevron’s offshore Nsiko Oil & Gas Field (OPL 249) development.

Chevron also accounts for both contracts awarded in the UK in Q4 2014, appointing Wood Group Kenny (subsea) and AMEC Foster Wheeler (topsides) as FEED contractors for the Captain Field - Enhanced Oil Recovery (EOR) project in the Outer Moray Firth.

In Malaysia, Petronas has awarded Ranhill Worley a contract to revise the design for the Bokor Phase III Field Development, offshore Sarawak.

EPC Activity The UK and Malaysia have been hotspots of activity, accounting for 10 EPC contracts across 10 different upstream developments. In the UK, Heerema secured two EPC contracts, one to build the wellhead platform for Maersk Oil’s Culzean HP/HT development in the Central North Sea, which is set to benefit from the new ultra High Pressure, High Temperature cluster area allowance announced by the UK Government in December 2014.

The other contract is to carry out the Murchison Field Decommissioning work in the East of Shetland Basin.

Also in the East of Shetland Basin, Aker Solutions and Technip were appointed to carry out EPC work on the Mariner and Kraken Heavy Oil Fields respectively. www.the-eic.com

Subsea/SURF Activity The US, Norway and the UK have been key areas of activity for subsea/SURF contracts, accounting for such contracts across 12 upstream developments. Of the seven Subsea/SURF contracts awarded in the US, four awards were made by LLOG Exploration: Technip received a double award to lay flowlines for both the 4

February 2015

EIC Monitor Son of Bluto 2 and Marmalard subsea tiebacks, while Ocean Installer won two contracts for the installation of umbilicals on the Delta House FPS and the Son of Bluto 2 tieback. The latter award is in a consortium with Oceaneering International.

In Norway, Maersk Oil awarded a trio of Subsea/ SURF contracts for its Flyndre and Cawdor Oil & Gas Field development, which straddles the UK and Norway in the North Sea. GE Oil & Gas, Isleburn and Technip secured contracts for subsea trees, manifolds and subsea pipelines respectively. Technip has also been awarded a contract for pipelay and subsea installation on Statoil’s Gullfaks Rimfaksdalen project, located off the coast of Bergen in the Norwegian North Sea. FMC Technologies has been appointed to deliver a subsea production system for Wintershall’s Maria Oil Field in the same region.

Q4 2014 saw numerous awards for FMC Technologies, who led subsea activity in the UK, securing two contracts to supply subsea production systems to Total, one for the Edradour Gas and Condensate Field development, located north-west of Shetland, and the other for the Glenlivet & Laxford Gas Field project, west of Shetland.

Finally, FMC Technologies secured a further contract to supply a subsea production system for Eni’s Block 15/06: Eastern Hub (Cabaça Norte & Cabaça Southeast Discoveries) development, offshore Angola.

Elsewhere in the Asia Pacific region, two midstream EPC contracts have been awarded in Indonesia: one on Pertamina’s Cirebon-Semarang-Gresik Gas Pipeline project and the other on the Gresik-Lombok Marine CNG Pilot Project, which is being carried out by Perusahaan Listrik Negara (PLN). A further two contracts were awarded in Japan, both on LNG import terminal developments, and in Malaysia, Petronas continued to award contracts for its Refinery and Petrochemicals Integrated Development (RAPID) project in Johor, where Samsung C&T has been appointed to carry out EPC work for the Pengerang LNG Terminal.

In the MENA region, five midstream EPC contracts were awarded across developments in Saudi Arabia, the UAE, Iraq, Egypt and Tunisia. Of note, Hoegh LNG has been contracted to charter a FSRU (Floating, Storage and Regasification Unit) for Egyptian Natural Gas Holding Company’s Egypt Floating LNG Terminal, which will be utilised as an LNG import terminal in the port of Ain Sokhna on Egypt’s Red Sea coast. Another significant award is Petrojet’s contract to restore 800km worth of infrastructure at Basra Gas Company’s Basra Gas Gathering Project in Iraq, which is part of Iraq’s Gas Master Plan.

In the US, PennTex Midstream Partners has awarded Honeywell UOP two contracts to carry out EPC work at its Lincoln Parish 2 and Mount Olive gas processing plants in Northern Louisiana. Also in Louisiana, SK Engineering & Construction has been awarded a contract to build Trains 1 and 2 at the Magnolia LNG Export Terminal – the most significant award in the midstream sector over the last quarter. The entire project comprises an 8 mtpa LNG facility on a 115 acre site on an established LNG shipping channel in the Lake Charles District of Louisiana.

Midstream Contracting Activity in Q4 2014

In Q4 2014, a total of 27 major contracts (EPC, FEED and Pre-FEED) were awarded across 27 midstream developments, decreasing 46% from 50 awards in Q3 2014, and 23% from 35 contract awards in Q4 2013. A total of 22 EPC contracts and 5 FEED contracts were awarded.

FEED Activity In Q4 2014, three midstream FEED contracts were awarded on LNG projects and two contracts were awarded on pipeline projects. In China, GTT has been appointed as FEED contractor for Xinao Gas Holding’s Zhejiang Zhoushan LNG Terminal Project; in Mozambique, a joint venture between Daewoo Shipbuilding & Marine Engineering and KBR has been awarded a contract for Eni’s Mozambique Floating LNG Project; and in the US, AMEC Samsung Oil & Gas will conduct the FEED for Texas LNG’s Liquefaction and Export Plant in Brownsville.

For the pipeline projects, WorleyParsons has been appointed to carry out the FEED studies for Arrow Energy’s Arrow Bowen Pipeline in Queensland, Australia, and Toyota Tsusho Corporation will carry out similar work for the Kenyan Government’s Hoima Export Pipeline in Uganda.

EPC Activity The Asia Pacific (including Australia) and MENA regions dominated activity this quarter, along with the US, with both regions accounting for 63% of midstream EPC contracting activity in Q4 2014. In Australia, Keppel Offshore & Marine secured a contract to build a barge for Chevron’s Wheatstone LNG Plant, off the Pilbara coast of Western Australia, while a consortium of Spiecapag and Lucas Group has been appointed to carry out EPC work on APA Group’s Eastern Goldfields Pipeline, also in Western Australia. www.the-eic.com

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February 2015

EIC Monitor

Downstream Contracting Activity in Q4 2014

In neighbouring Texas, Magellan Midstream Partners has appointed Leidos Holdings to carry out EPC work for its Corpus Christi Condensate Splitter, while further north in Kansas, Coffeyville Resources has appointed CB&I as EPC contractor for its Coffeyville Refinery Hydrogen Plant.

Across the Atlantic in Europe, there has been activity in Antwerp, Belgium, where Amec Foster Wheeler has been awarded a contract to carry out EPC work on a residual unit and the revamp of offsite facilities for ExxonMobil’s Antwerp Refinery Delayed Coker Unit.

In Q4 2014, a total of 26 major contracts (EPC, FEED and PMC (Project Management Contract) were awarded across 23 downstream developments, decreasing nearly 53% from 55 awards in Q3 2014, and 39% from 43 contract awards in Q4 2013. A total of 20 EPC contracts, 5 FEED contracts and 1 PMC contract were awarded.

FEED Activity US-based contractor KBR dominated downstream FEED contracting activity, securing three of the five FEED contracts awarded in Q4 2014. In this quarter, KBR has been awarded the license and engineering contract for Mosaic’s proposed expansion of its St James Ammonia Plant in Louisiana, US; a contract for FEED work at SABIC’s Petrokemya – Butadiene Extraction Plant Debottlenecking and Expansion Project in Saudi Arabia; and a contract to supply its catalytic olefins technology for Lotte Chemical Corporation’s Johar Steam Cracker Plant Expansion in Malaysia.

Also in Malaysia, Evonik Industries has appointed Yokogawa Electric Corporation to carry out design studies for a production control system and safety instrumentation at the Pengerang RAPID Project in Johor.

In China, CB&I secured a contract for the license and engineering design of Shenhua Ningxia Coal Industry Group’s Lingwu Polypropylene Unit to be built in Ningxia Province, where CB&I’s proprietary Novolen® technology will be used to produce 600,000 mtpa of polypropylene.

EPC Activity Indonesia and the US have been key focal points of downstream activity in Q4 2014, accounting for 12 EPC contracts across 10 downstream developments. In Indonesia, state-run operator Pertamina has awarded the region’s top oil refiners, Saudi Aramco, Sinopec and JX Nippon Oil and Energy, a total of five contracts to upgrade a series of refineries as the country looks to increase capacity and reduce reliance on oil imports.

Saudi Aramco has been awarded three contracts to upgrade the Balongan Refinery, Cilacap Residual Fluid Catalytic Cracking (RFCC) Refinery and Dumai Refinery, all on the island of Java, while Sinopec will revamp the Plaju Refinery Revamp in South Sumatra and JX Nippon Oil and Energy will upgrade the Balikpapan Refinery in East Kalimantan.

Also in Indonesia, PLN has awarded a consortium of Timas Suplindo and Odira Energy Persada a contract to carry out EPC work for the Central Kalimantan CNG Plant.

In the US, six contracts have been awarded for EPC work on a series of petrochemical plants. Sasol has awarded three contracts for work on its Lake Charles Ethane Cracker and Derivatives plant in Louisiana, which will produce an anticipated 1.5 mtpa (metric tonnes per annum) of ethylene on completion. Sasol has awarded a joint venture between Fluor and Technip the major EPC contract for the plant; Toyo Engineering a contract to build the LLDPE plant; and Technip a contract for eight Ultra Selective Conversion® furnaces.

At the same location, Westlake Chemicals has awarded Technip a contract to carry out EPC work for its Lake Charles Ethylene Plant Expansion.

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About EICDataStream Data is sourced from the EICDataStream online project database, which tracks nearly 10,000 projects proposed or under development in the global energy industry. EIC Monitor is published on a quarterly basis. The next oil and gas report will be available in April 2015.

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February 2015

New Members

Welcome to our New Members New Global Member

New Global Member

Rawdon Road Moira DE12 6DA Tel +44 (0)1283 221 044 Email jonathan.lane@arrowchem.com Web www.arrowchem.com The Nominated Representative is Mr Jonathan Lane, Sales Director. Arrow Solutions is a leading manufacturer of chemical products for industrial cleaning and maintenance. Typical applications within oil and gas include tank and tanker cleaning, equipment cleaning and decontamination, offshore and marine environment cleaning as well as all types of fabrication and engineering operations. Arrow products enable full compliance with environmental and health and safety regulations. Arrow Solutions’ team of specialists work closely with end users to optimise their process, delivering the highest level of efficiency, time reduction and consequent cost savings on every job. Arrow is ISO9001, 14001 and 18001 accredited and FPAL registered.

Unit 2, Summit Business Park Hanworth Road Sunbury-on-Thames TW16 5DB Tel +44 (0)20 8335 2300 Email jpdebeer@expoworldwide.com Web www.expoworldwide.com The Nominated Representative is Mr John Paul De Beer, Managing Director. For over 60 years, Expo Technologies has been at the forefront of Ex p purge and pressurisation technology and Ex e control-cabinet and housing technology. The company delivers certified standard and custom solutions for simple and complex hazardous areas and unrivalled customer support from its UK and USA manufacturing plants, through a global network of authorised distributors and representatives.

Expo Technologies’ vision is to provide world class, engineered solutions that deliver its clients’ capabilities into hazardous and extreme environments. Expo Technologies continuously drives excellence through the development of its people and enhances its trusted position by projecting its expertise into new markets.

Expo Technologies Ltd

Arrow Solutions

New Primary Member

New Primary Member

159-160 High Street Stockton on Tees TS18 1PL Tel +44 (0)1642 662 400 Email h.utley@cordellgroup.com Web www.cordellgroup.com The Nominated Representative is Mrs Helen Utley, Group Sales and Business Development. Cordell Group is an experienced multi-disciplined engineering business providing extensive engineering design, manufacturing and construction services for blue chip companies in the energy sector. Services include FEED studies, engineering design, pipework, structures, machining, fabrication, construction and EC&I services. With wide-ranging in-house capabilities, Cordell is the ideal partner to deliver turnkey projects, specialising in skid and process units, process control systems, tank farms, bespoke exhaust stacks, chimneys, pilot plants and marine, offshore and subsea projects in addition to a comprehensive term contract service. Cordell is an ISO 9001:2008, OHSAS 18001:2007, ISO 14001:2004, Achilles FPAL-Verify and UVDB-Verify accredited organisation.

Innovation Centre Warwick Technology Park Unit 7 Gallows Hill Warwick CV34 6UW Tel +44 (0)2033 555 666 Email jon.willis@spsinc.com Web www.spsinc.com The Nominated Representative Mr Jon Willis, Associate Director. Strategic Power Systems (SPS®) provides a niche range of reliability engineering products and services to the global energy market facilitated through its industry recognised ORAP® (Operational Reliability Analysis Program) RAM (Reliability, Availability & Maintainability) database. SPS collects and analyses operational, failure and maintenance data on gas turbines, steam turbines, wind turbines and deep sea E&P rigs in the power generation and oil and gas market sectors.

Typically, the company provides services to plant service providers, equipment manufacturers, fleet owners of equipment, field service organisations, reliability focused groups, developers and insurers. These services include: third-party unbiased benchmarking of plant performance, market comparisons, and best in class statistics; tracking and management of age and location of high capital life limited parts; service bulletin compliance and affectivity; planned maintenance and inspection arisings/projections; field service reporting and equipment configuration management. Confidentiality of data/information is fundamental to the SPS business model as much of the information is commercially sensitive to its customer base.

SPS International (UK) Ltd

Cordell Group

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February 2015

EIC Member News

Member News

Mohammed Atif, DNV GL’s Regional Manager Middle East for energy, said: “DNV GL is very excited to bring in our global energy expertise into this world-class project, and we commend ECRA and SEC for taking this bold step to better understand the energy use of their customers and to unveil the potential of energy efficiency in the region.” For more information visit: www.dnvgl.com E2S Warning Signals

Amec Foster Wheeler has become a founding partner in the EDF Energy Strategic Partnership for Lifetime Interface Agreement. The contract positions it as a supplier working with EDF Energy to extend the life of its UK Advanced Gas Cooled Reactor (AGR) nuclear power stations.

Dawn James, Vice President, Amec Foster Wheeler’s Nuclear Generation and Defence business, said: “We are delighted to be part of this agreement which will call upon our nuclear expertise and unique position of knowledge of the UK AGR and PWR stations.

“This agreement confirms us as a key supplier to EDF Energy and enables us, together with our key partners, to help create and deliver a world-class capability for our customer that ensures continued safe generation of their nuclear power stations.”

In addition to being a founding partner of the Energy Strategic Partnership, Amec Foster Wheeler is also part of EDF’s Technical Support Alliance and Projects Division Alliance. For more information visit: www.amecfw.com

E2S Warning Signals has gained VdS approval and CPR compliance to directive 305/2011/EU for its AlertAlarm D112 alarm horn sounder by testing to EN54-3. It combines the field-proven electronics of its AlertAlarm A Series with a robust, corrosion resistant marine grade LM6 aluminium alloy enclosure, giving greater mechanical and UV protection. The D112 has a maximum SPL of 119 dB(A) @ 1m at the nominal 24VDC fire alarm system operating voltage; the CPR compliance is valid for operation from 18 to 30VDC. The 48VDC version is also compliant. The VdS approval covers the five most commonly used fire alarm warning tones and also confirms that the units operate to specification under conditions of dry and damp heat, cold, shock and vibration. The aluminium enclosure complies with Type B environmental category making it suitable for outdoor installation, and so supporting the extension of a fire detection system into areas beyond the relatively benign office environment, improving safety.

Other tests include EMC, SO2 corrosion resistance and dust and water ingress.

UL approved versions for general signalling use are also available. For this version, the aluminium enclosure is sealed to IP66, NEMA Type 4, 4X and 3R. The AlertAlarm D112 offers a choice of 45 different alarm tones, and with the option of activating a second and third tone via additional control cables, it is a cost effective, sophisticated signalling solution providing the versatility of multiple tones from a single unit. It is also available as part of the DL112X, in which the horn sounder is integrated with a 5 Joule Xenon strobe, or as the DL112H combination unit, where the horn sounder is combined with a high output 24-unit LED array beacon.

For more information visit: www.e2s.com

Driven by economic, industrial, commercial and population growth, the electricity demand of the Kingdom of Saudi Arabia (KSA) has more than doubled since 2000 and is anticipated to continue increasing rapidly, at an average rate of more than 8% per year for the next ten years. The surge in electricity consumption is prompting Saudi Arabia to pursue a number of supply and demand side options. Among these options, energy efficiency offers significant potential to cost effectively offset demand growth.

To get the most out of its energy efficiency investments, Saudi Arabia needs to understand how electricity is being used by consumers in residential and nonresidential sectors. To that end, the Saudi Electricity CoGeneration Regulatory Authority (ECRA) and the Saudi Electric Company (SEC) engaged DNV GL to develop a programme to understand and classify how electricity is consumed within the Kingdom.

In a US$2.5 million project that will be executed over the next 20 months, DNV GL will be working closely with ECRA, SEC and various stakeholders to develop a comprehensive understanding of power consumption patterns and trends across the Kingdom. The research team will collect data on the stock of appliances and end uses within each customer sector, including hourly data on customers’ demand for energy both at the customer wholefacility level and most importantly, at the end-use level.

To submit articles to the Member News section, please send no more than 300 words, and a good quality photograph (minimum 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com.

Copy deadline is the first of the month for the following month – ie by 2 March for the April issue. www.the-eic.com

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February 2015

Eaton

Hima-Sella

EIC Member News

Eaton has launched the PowerXL DG1 variable speed drive series for demanding industrial and building automation applications for ratings from 0.55 to 160kW. The new drives feature optimised energy algorithm, robust design, extreme short-circuit current capability with extensive and integrated functionality.

The DG1 variable speed drives stand out on account of their versatile communication. All models come with standard interfaces for Ethernet IP, Modbus TCP, Modbus RTU as well as BACnet MS/TP. Plug-in cards can also be used for connecting to Profibus DP, CANopen, DeviceNet, ProfiNet and LonWorks as well as Eaton’s SmartWire-DT lean panel wiring and communication system. Additionally, the devices provide several digital and analog inputs and outputs as well as three relays, thus offering more connection options than many other devices of this class on the market today.

Furthermore, different add-on cards also make it possible to further expand the DG1 simply and flexibly.

Handling is based on the same well-known and proven concept of Eaton’s PowerXL variable speed drives (DC1 and DA1). For many applications, the installer can thus commission the device in the field without any extensive parameter setting needed. The clearly designed menu guidance on a five-line LCD display, self-explanatory type codes, and only 14 standard parameters further simplify commissioning of the drives in demanding applications.

The drive software installed on all DG1 drives offers outstanding features such as active power consumption optimisation, dynamic power management in the event of feedback, a quickstart wizard, different standard application function blocks (multi-pump system, fan control, multi-PID, multi-purpose use), safety functions, as well as Safe Torque Off (STO) and real-time clock.

In terms of power consumption, Eaton has succeeded in reducing the power required for driving motors by 2 to 10%, compared to other variable speed drives on the market without any additional optimisation.

The variable speed drive series comes in six sizes with protection class IP21 for all housings. For harsher environmental conditions or remote operation, the housing can be retrofitted to IP54 with a conversion kit. The operating range of the DG1 is from 35 to 50°C thanks to a special heating mode. With derating it can also be operated up to 60°C. To learn more about Eaton’s power management solutions visit: www.eaton.uk.com/electrical www.the-eic.com

Hima-Sella has been awarded a contract to develop an Emergency Shutdown (ESD) system for a North Sea oil platform in relation to modifications being made in order for the platform to receive and process product from two subsea wells.

The platform’s new ESD will be implemented using a HIMA HIMax, a Programmable Electronic System (PES) designed for use in production processes that can ill afford downtime. HIMax is extremely scalable as it has virtually unlimited expansion potential; and for this particular project the PES will initially have more than 300 I/O channels, which will interface with sensors and actuators.

HIMax delivers SIL3 protection that is ‘non-stop’, in that hardware and software changes can be made without interrupting the functionality of the system. It also offers scalable redundancy (which HIMA brands as XMR) for operation in quad, triple, dual or single mode.

Eddy Turnock, Sales & Marketing Director, HimaSella, said: “HIMax is proving incredibly popular within the oil and gas sector. Operators and owners alike are appreciating how the system’s flexibility, scalability and non-stop performance make HIMax – along with HimaSella’s engineering capabilities – the ideal solution for managing functional safety throughout the entire lifecycle of their platforms.”

Turnock went on to say that improved drilling techniques and better access to subsea wells are extending the life of many oil and gas platforms, which need to be modified to accept and process product: “And with functional safety applicable to the entire lifecycle of a platform, in accordance with IEC 61508, the ESD and other safety systems must keep pace with any and all modifications.”

The contract for the development of the ESD was awarded to Hima-Sella – following an extensive and rigorous evaluation process that began in late 2013 – by the engineering company responsible for making the modifications to enable the platform to accept and process oil from the two subsea wells. The development of the ESD’s functionality is being overseen by Hima-Sella’s dedicated Functional Safety Management Team, on which only engineers certified to TÜV FSEng or FSP can work.

Factory acceptance testing is scheduled before the end of Q1 2015, after which the HIMax will be transported to the platform for installation and commissioning. For information on Hima-Sella’s Emergency Shutdown system capabilities please email: esd@hima-sella.co.uk 9

February 2015

EIC Member News

Promat BD Ltd has announced that its Environmental Management System has achieved ISO 14001:2004 approval. Accredited by LRQA (Certificate No LRQ 4008358), the scope of the approval covers the manufacture of forged and butt weld pipe fittings and flanges, stockholding of pipe and ancillary products at its Walsall site.

For Promat BD, achieving ISO 14001:2008 accreditation follows on from a multi-million pound investment by its parent company Marla Tube Fittings which has seen the Walsall facility double in size, allowing for the installation of new CNC machining centres, a new Co-ordinate Measuring Machine (CMM) and an expanded range of finished, part-machined and forging stock.

With a wealth of experience in stocking and machining carbon, stainless, duplex and special nickel/titanium alloys, Promat BD designs and manufactures the complete range of Promat Weldoflanges, Nipoflanges/ Reinforced Nipoflanges, Elbowflanges and Latroflanges in accordance with Lloyds Type Approval, along with a complete range of ANSI, API and EN flanges. For more information please visit: www.promatbd.co.uk Contact: richard.wanglin@promatbd.co.uk Tel +44 (0)1922 748 310

Sky-Futures, leaders in Unmanned Aircraft System (UAS) inspections in the oil and gas industry, has been granted UK Civil Aviation Authority (CAA) National Qualified Entity (NQE) status. This certification awarded by the UK CAA, in addition to Sky-Futures’ ‘permission’ to operate UAS held for over four years, further acknowledges SkyFutures as a global leader in UAS safety, training and operations excellence.

NQE approval certifying the established Sky-Futures training programme for small UAS remote pilots, is only the third approval of its type in the UK, and allows SkyFutures to perform the following training and approval functions: train and certify Sky-Futures Remote Pilots (S-FRP) for visual line of sight operations, regardless of previous experience, to a UK CAA recognised standard; allows Sky-Futures to make recommendations to the CAA for prospective UK operators wishing to gain ‘permission’ status to fly UAS visual line of sight for commercial purposes.

The Sky-Futures training team must ensure that any external operator has the following credentials before ‘permission’ status can be recommended to the CAA: fit for purpose operations manual; an unmanned aircraft system appropriate to the operator’s intended commercial activity with applicable safety features; proposed remote pilots have satisfactorily completed, to the required standard, the Sky-Futures ground school and flight training syllabus on their designated unmanned aircraft system.

Nick Rogers, Sky-Futures Training and Legislation Director, said: “We are delighted that the CAA NQE application was successful at the first attempt. This NQE approval granted by the CAA is only possible due to the thousands of hours of direct unmanned aircraft training and operational experience that the growing team at Sky-Futures possesses. This is in addition to our world class training facilities and instruction that future S-FRP and prospective UAS operators will receive from the professional, highly qualified and dedicated Remote Pilot instructors at Sky-Futures.” For more information please visit: www.sky-futures.com

Rainford Solutions has introduced its Vanguard® outdoor enclosure product range, which offers a modular product with the flexibility to house a broad range of equipment in a variety of industry standard mounting formats. With a high IP rating (up to IP66) and robust construction, coupled with a variety of vandal resistant features, the Vanguard® outdoor enclosure provides a cost-effective protection solution for your equipment.

There are a range of widths available (1, 2 and 3 bays) and depths with an option for an end pod for housing power distribution equipment, along with 19 inch, ETSI and DIN rail equipment mounting options.

The Vanguard® intelligent thermal management system varies the speed of the fan(s) in accordance with the external conditions, thus reducing the duty of the system. This reduces the maintenance frequency of the enclosure, prolongs the life of the air filter and reduces the through life cost of the enclosure.

Rainford Solutions has been providing standard and bespoke electronic cabinet, enclosure and cable management solutions for over 30 years to a diverse client base across a wide range of industry sectors including the oil and gas and power industries, which is all supported by an extensive in-house design, engineering and manufacturing capability. Along with its continual commitment to health and safety, quality and service, Rainford is also proud to be LRQA certified to BS EN ISO 9001:2008. For further information please visit: www.rainfordsolutions.com Enquiries: sales@rainfordsolutions.com Tel +44 (0)1744 889 886 www.the-eic.com

Engineering reliability and technology company SPS International (UK) Ltd has opened a UK head office at the University of Warwick Science Park’s Innovation Centre to support its continuing development.

Strategic Power Systems Inc (SPS®) has been providing support to the energy industry since 1987 and established the UK operation in 2008, initially with the aim of catering to existing clients in Europe. Under the stewardship of Jon Willis, the firm has grown to take responsibility for all business outside of the Americas. SPS International (UK) Ltd has now moved into a permanent base in Warwick in order to be on hand to cater to a major client while being well placed to support further growth and the recruitment of skilled workers.

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February 2015

EIC Member News Jon Willis, Director, said: “We provide engineering reliability services to the power generation and oil and gas industries and have moved to Warwick to support one of our main clients, Industrial Turbine Company (UK) Ltd (formerly a Rolls-Royce company) while also looking to grow the business. We now have three permanent staff in Warwick who are responsible for supporting our clients’ equipment all over the world from a reliability and availability perspective. We also work with E.ON, who are based nearby, and as a consequence, believed that Warwick would be a great location to support our growth.

“We were attracted to the University of Warwick Science Park’s site as it is a true technology park, and has strong links to the university, which can be very useful in terms of the future recruitment of skilled staff.”

For more information please visit: www.spsinc.com

Universal Acoustic & Emission Technologies will receive a grant from the State of Wisconsin Department of Workforce Development’s Fast Forward programme to train supervisors at the company’s facilities in Beloit, Muscoda and Stoughton, Wisconsin.

The Fast Forward programme provides Wisconsin businesses with customised training grants to enhance the skills and credentials of unemployed, underemployed and incumbent workers. Universal AET joins 25 other manufacturers in Wisconsin who were awarded grants in the last competitive round.

Together with Southwest Wisconsin Technical College, Universal AET has created a customised Quality and Supervisory Management training programme to educate 55 supervisors. Designed specifically for Universal AET’s Beloit, Muscoda and Stoughton locations, the training programme has been incorporated into Universal University, a corporate commitment towards employee growth in workforce development.

Jennifer Willger, Universal AET Training Specialist, said: “With our global sales growth, we must ensure that our managers and supervisors have the training they need. A strong management team is critical to a business on many levels, from recruiting and retaining quality employees to maintaining high morale and engagement, all of which result in increased productivity, product quality and safety. We’re thankful to the State of Wisconsin and the Fast Forward programme for supporting our efforts.”

Employees in Beloit and Muscoda manufacture the company’s emissions and noise-reducing air inlet and exhaust solutions, including silencers, catalysts, blowers and filters. They also fabricate generator enclosures and fuel tanks. Stoughton is home to Universal AET’s corporate headquarters. Visit: www.universalaet.com

TripleFast

As a member of the LoneStar Group of companies, TripleFast Middle East is pleased to announce that it has recently been awarded a five year global Enterprise Framework Agreement (EFA) with Shell Global Solutions International for the supply of stud bolts and fasteners.

The contract includes an option for a five-year extension.

The global EFA has been signed with LoneStar Group, a manufacturer and supplier of special nuts, bolts, machined components, gaskets and seals to the energy sectors globally. As detailed in the contract, the scope of supply will focus on Shell’s activities in North America, Middle East, Asia, Europe and Australia.

This contract further strengthens TripleFast’s longstanding relationship with Shell, its EPC contractors and supply chain companies worldwide. For more information please visit: www.lonestargroup.com

www.the-eic.com

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February 2015

Events Diary

UK, Overseas & Training February 2015

16 Industry Overview: Fundamentals of Subsea Engineering EIC Houston 17 Business Presentation: Opportunities with Wood Group PSN Hilton Treetops Hotel, Aberdeen 17 Technical Workshop: Introduction to FPSOs EIC Houston 18 Technical Workshop: Introduction to Topsides Processing Systems EIC Houston 19 Corporate Entertainment: Dubai Annual Golf Tournament The Els Club, Dubai 19 Corporate Entertainment: TopGolf TopGolf, Houston 24 Technical Workshop: Introduction to Pipe Supports Carpenter & Paterson, Welshpool 24 Industry Overview: Fundamentals of Oil & Gas International House, Dubai 25 Technical Workshop: Introduction to Steam & Condensate Systems Spirax Sarco, Cheltenham 25 Industry Overview: Fundamentals of FLNG EIC Kuala Lumpur 26 Industry Overview: Fundamentals of Refining & Petrochemicals EIC London 26 Industry Overview: Fundamentals of Downstream EIC Rio de Janeiro 26 Management Course: Confident Communications EIC Houston

March 2015 3 Business Presentation: Opportunities with Amec Foster Wheeler St Regis Hotel, Abu Dhabi 3 Management Course: Understanding Localisation in Employment Dubai 4 HSE Training: ATEX/IECEx Certification EIC Houston 5 Management Course: Presentation Skills Made to Measure Training, EIC London 5 Industry Overview: Fundamentals of Subsea EIC Kuala Lumpur 6 Corporate Entertainment: The Oil Barons Charity Ball Meydan Racecourse, Dubai 10 Technical Workshop: Introduction to Electric Motors ATB Laurence Scott, Norfolk 11 Regional Showcase: Southern Region Contractors Showcase EIC London 11 Management Course: Negotiation Skills Eton Institute, Abu Dhabi 17 Business Presentation: Amec Foster Wheeler Hilton Treetops Hotel, Aberdeen 17 Technical Workshop: Introduction to Petroleum & Drilling EIC Aberdeen 17 Management Course: Project Engineering EIC Rio de Janeiro 18 Management Course: Business Writing Skills Eton Institute, Dubai 19 Technical Workshop: Introduction to Shale Gas EIC London 19 Technical Workshop: Introduction to Heat Transfer Fluid Systems EIC Houston 23 Export Showcase: Mexico Export Showcase EIC London 23-25 Management Course: Understanding Project Management EIC London 23 Management Course: Successful Business in Challenging Markets Control Risks, Dubai 24 Industry Overview: Fundamentals of Oil & Gas EIC Houston 24 Technical Workshop: Introduction to Compressors Siemens, Duisburg 25 Business Presentation: Opportunities with THHE EIC Kuala Lumpur 25 Industry Overview: Fundamentals of Refining & Petrochemicals EIC Houston 26 Corporate Entertainment: Pembroke Supper Cleddau Bridge Hotel, Pembroke 26 Industry Overview: Fundamentals of Oil & Gas EIC Aberdeen 28 Technical Workshop: Introduction to FPSOs EIC Rio de Janeiro 31 Industry Overview: Fundamentals of Power E.ON, Nottingham 31 Technical Workshop: Introduction to Steam Turbine Technologies EIC Rio de Janeiro April 2015 13 Management Course: Successful Business in Challenging Markets Control Risks, Dubai

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

www.the-eic.com

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February 2015

Events Diary

Exhibitions & Delegations 2015

22-27 February Overseas Delegation to South Africa and Mozambique 11-13 March Australasian Oil & Gas (AOG) Perth 16-20 March Overseas Delegation to Colombia 30 March-2 April Overseas Delegation to Kazakhstan 4-7 May Offshore Technology Conference (OTC) Houston 17-21 May Overseas Delegation to Saudi Arabia and Bahrain 11-15 May Overseas Delegation to India (Power) 2-4 June Oil & Gas Asia (OGA) Kuala Lumpur 9-11 June POWER-GEN Europe Amsterdam 23-26 June Brasil Offshore MacaĂŠ tbc June Overseas Delegation to Turkey tbc July Overseas Delegation to Thailand 9-12 September Oil & Gas Indonesia (OGI) Jakarta 21-25 September Overseas Delegation to the Philippines tbc September Overseas Delegation to East Africa (Kenya and Uganda) 27-29 October OTC Brasil Rio de Janeiro tbc October Overseas Delegation to Australia tbc October Overseas Delegation to Mexico tbc October Overseas Delegation to Papua New Guinea 9-12 November ADIPEC Abu Dhabi 23-27 November Overseas Delegation to Cambodia 23-27 June Overseas Delegation to Venezuela and Trinidad and Tobago

Status Sold Out Sold Out Booking Now Booking Now Sold Out Booking Now Register your Interest Booking Now Booking Now Booking Now Register your Interest Register your Interest Booking Now Register your Interest Register your Interest Booking Now Register your Interest Register your Interest Register your Interest Booking Now Register your Interest Register your Interest

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

National Events

2015

Status

2 June EIC Connect Middle East Abu Dhabi Stand Bookings Open 8-11 September Offshore Europe Aberdeen Stand Bookings Open 24-25 November EIC Connect Energy Manchester Register your Interest

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

Kuala Lumpur, Malaysia 2-4 June 2015 Contact

camilla.tew@the-eic.com www.the-eic.com

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February 2015

EIC Overseas Exhibitions

Overseas Exhibitions

The bi-annual Brasil Offshore exhibition focuses on the importance Brazil will play in meeting increasing global energy demand. The exhibition brings together keypersonnel within engineering, operations and procurement providing a unique opportunity to suppliers of goods and services worldwide. Brasil Offshore is the third largest offshore exhibition in the world, considered one of the most relevant trade shows within the international offshore market, attracting visitors and exhibitors from 38 countries and covering all aspects of the Brazilian offshore industry.

Brasil Offshore is the perfect platform for UK companies who are new to the market, those in the process of acquiring Brazilian companies, setting up manufacturing facilities, and those with fully fledged operations and experience in the market. For more information please contact Deanne Lintorn, Overseas Events Manager: deanne.lintorn@the-eic.com

Oil, Gas & Petrochemical Engineering Exhibition (OGA) 2-4 June 2015 Kuala Lumpur TAP funding £2,500 for eligible SMEs OGA 2013 attracted more than 29,000 visitors, with a sold out exhibition boasting 2,000 companies from 72 nations. The Government of Malaysia aims to increase its aggregate production capacity by 5% every year up to 2020 to meet domestic demand growth, while sustaining crude oil and LNG exports to overseas markets.

Improved contract terms are on offer to encourage teams of operators and service companies willing to take on the challenge, as Malaysia looks to become the energy hub of Asia with plans to develop 100 marginal fields and conduct four offshore enhanced oil recovery projects. As Petronas ramps up its spending and the Government’s energy authority opens up new opportunities, Malaysia continues to grow as an attractive target for UK companies. To book please contact Camilla Tew: camilla.tew@the-eic.com

Event Report Offshore South East Asia (OSEA) 2-5 December 2014 Singapore The EIC hosted the UK National Pavilion once again at Offshore South East Asia (OSEA) 2014. 18,400 attendees from 65 countries/regions attended. The EIC-managed UK National Pavilion housed 36 companies covering 522 sq m in a central location, allowing for a modern highlevel design that was visible on entering the hall.

Ideally located at the geographical crossroads of Asia Pacific, Singapore is between energy-in-demand nations in North Asia and oil and gas suppliers in Southeast Asia and Australia. In spite of having no significant energy resources of its own, the young nation has done well to establish itself as one of Asia’s major energy hubs, with OSEA being a key exhibition in the region.

Singapore is the world’s leader in the construction of jack-up rigs, commanding 70% of the market. It also enjoys 70% global market share for the conversion of floating production storage offloading (FPSO) vessels and is a niche player in the construction of customised and specialised vessels. Homegrown rigbuilders Keppel Corporation and SembCorp have together already secured tens of billions of dollars in their order books, which should keep them fully occupied until 2019.

The British High Commission Singapore worked in conjunction with the EIC to host a breakfast briefing prior to the show, looking at business opportunities in Oil and Gas – South East Asia. Attendees benefitted from presentations by McDermott, DNV-GL and MPRC as well as one-2-one meetings. Eden Hall played the role of a fantastic venue for a well-attended networking reception hosted by the EIC and UK Trade and Investment, with oil and gas contacts from both the local Singaporean market and South East Asia area introduced to visitors from the UK. With an impressive display of oil and gas exploration and production innovations, OSEA is an ideal platform to meet new customers and partners and address the strategic, operational and technology aspects of the Asian oil and gas industry. Buyers come from across Asia and beyond to source for new and improved equipment, products and applications. camilla.tew@the-eic.com

POWER-GEN Europe 2015 9-11 June 2015 Amsterdam TAP funding £1,500 for eligible SMEs The EIC will be organising and managing a UK Pavilion at POWER-GEN Europe for the first time this June.

The European power system is changing notably to enable a low carbon economy and a fully functioning internal electricity market without impeding on security of supply for the 532 million European people served by the grid. With Europe being home to some of the largest utilities and project developers there appear to be distinct regional opportunities for operators that strive to either develop or acquire key assets despite the difficult economic environment. Furthermore global opportunities in the power sector are paramount with many countries investing in thermal plant seeking European expertise.

EICDataStream is tracking 345 active projects and 270 future projects in the power sector including T&D (transmission and distribution) and energy storage.

POWER-GEN Europe provides a wealth of opportunities for you to promote your products and services, raise your company’s brand awareness and connect with key industry decision makers under one roof. To book please contact Raelene Rifkind: raelene.rifkind@the-eic.com Brasil Offshore 2015 Oil & Gas Exhibition and Conference 23-26 June 2015 Macaé TAP funding £2,500 for eligible SMEs The EIC is pleased to be returning to host the UK National Pavilion for another year at Brasil Offshore 2015. The International Brasil Offshore Oil and Gas Exhibition is held every two years in Macaé, which is the operational base for more than 80% of offshore exploration in Brazil. www.the-eic.com

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February 2015

www.the-eic.com

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February 2015

EIC Training Services

Training Services The latest on Shale Gas

The UK Government is keen to exploit the nation’s shale resources in order to reduce its dependence on hydrocarbon imports. The British Geological Survey (BGS) has given a central reserve estimate of 1,300 Tcf shale gas in place in the Bowland Basin and beyond, which covers 11 counties in the north of England, and a central estimate of 4.4 Bbbl of oil in place in the Weald Basin, located in the south of England. In the Midland Valley area of Scotland, the BGS has made a central estimate of 80 Tcf of shale gas in place and 6 Bbbl of oil.

The exploitation of these reserves could assist the UK in both ensuring the security of supply and creating economic growth. A 2013 report by the Institute of Directors (IoD) estimated that between 2016-2032, a total of US$53 billion of spend could be required to bring up to 4,000 shale wells into production. The development of a shale industry in the UK has the potential to create significant opportunities for the UK supply chain.

If shale gas is of interest, you may like to attend:

Other training courses running in March include:

Technical Workshop

Technical Workshop

Introduction to Electric Motors Tuesday 10 March 2015 ATB Laurence Scott, Norwich

Introduction to Shale Gas Thursday 19 March 2015 EIC London 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 exploration and production. On successful completion of the workshop, attendees will have an understanding of: • Unconventional gas resources and their distribution • The shale gas industry in North America, Europe, South Africa, Asia and Australia • Shale gas economics • Drilling and hydraulic fracturing techniques • Environmental issues regarding shale gas exploration and production • Opportunities and challenges for unconventional gas

Technical Workshop

Introduction to Petroleum & Drilling Engineering Tuesday 17 March 2015 EIC Aberdeen

Technical Workshop

Introduction to Compressors Tuesday 24 March 2015 Siemens, Germany This workshop has been designed for individuals who are new or are requiring awareness of compressors in the field of engineering, operations and maintenance fundamentals.

Management Course

Management Course

Industry Overview

Industry Overview

Understanding Project Management Monday 23 – Wednesday 25 March 2015 EIC London This three day workshop will enable delegates to: describe the components of project management practice; assess an existing project against principles of good practice; use project management techniques to improve work effectiveness and manage a small project using good practice

Presentation Skills Thursday 5 March 2015 EIC London This workshop will use a range of different learning methods including concept presentations, group discussion and interactive exercises. 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.

Fundamentals of Power Tuesday 31 March 2015 E.ON, Nottingham This one day workshop will enable delegates to gain an appreciation of the fundamentals involved in the power generation industry and provide an appreciation of how modern day power plant works, including relevant terminology.

Fundamentals of Oil & Gas Thursday 26 March 2015 EIC Aberdeen The course takes the form of five modules which follow the molecules through their journey from wellhead to a range of diverse applications including the search for oil and gas, its extraction, processing, transportation and refining. It will also look at future developments.

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

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February 2015

EIC National Events

Major operators and contractors to lead a high-value programme of conference sessions, supply chain briefings and one-2-one supplier-buyer meetings at the Middle East’s must attend event Taking place at the St Regis Saadiyat Island Resort in Abu Dhabi on 2 June 2015, the region’s leading operators and contractors will gather at the event to identify UK capability for major energy projects.

Mohammed A Sahoo Al Suwaidi Director – Gas Directorate, ADNOC speaking at the 2013 event

St Regis Saadiyat Island Resort, Abu Dhabi

EIC Connect Middle East will follow its established one day format with supply chain briefings running alongside a conference and exhibition. The highly anticipated programme will inform delegates about future markets, upcoming projects and procurement strategies.

Following the successful establishment of an Advisory Group for the UK EIC Connect event programme, a Middle East Advisory Group was set up to help refine the event activities. Members include key procurement contacts from within the region’s major operators and contractors including ADNOC, BP, Shell and Technip. EIC members operating in the Middle East are also represented in the group and include Andrews Kurth, Bergen Pipe Supports and Corrotherm. The first meeting was held during ADIPEC in November 2014 and all attendees contributed some great suggestions to maximise opportunities for participants and we look forward to introducing some of the new initiatives in the coming months.

EIC Connect Middle East is expected to attract over 500 SME business owners, sales engineers and project managers who all want to know how to work with major companies while being given the unique chance to meet with the decision makers and network on a level playing field.

Major operators and contractors are still being invited to speak at the event and will be announced shortly. Speakers in 2013 included ADNOC, BP, Fluor, Petrofac, Saudi Aramco, Shell, Kentz, Parsons Brinckerhoff, TAQA and WorleyParsons to name a few from the outstanding lineup. www.the-eic.com

A British themed reception will take place on the evening prior to the event, in the ballroom at the St Regis. This will be a celebration of the bilateral relationship between the UK and UAE and a precursor to the opportunities that will be revealed during the event the next day. All speakers and exhibitors will be invited to network among registered delegates from EIC Connect and VIPs from around the region.

Many leading companies have already signed up to showcase their capabilities to the major speaker companies including CMP Products, Corrotherm, Derrick Services and Process Group. A limited number of exhibition stands remain and are priced at just £1,700 for a 9 sq m stand which includes two delegate places, a furniture and electrical package, website and print promotional opportunities and the option to book one-2-one meetings. To view the event floor plan and latest availability please see the website.

Delegate places will open in March and are priced at £179 for EIC members and are bookable online.

Companies are advised to send at least two delegates to allow them to share the supply chain briefings, conference sessions, meet exhibitors, network with delegates and arrange one-2-one appointments across the day. Visit: www.the-eic.com/EICConnect For additional information please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com 17

February 2015

Tim Cariss – 0161 661 4174 tim.cariss@excelpublishing.co.uk

www.the-eic.com

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February 2015

EIC UK News

News from our UK offices

Southern Region AGM Wednesday 11 March 2015 EIC London Would you like the opportunity to represent your organisation on the Southern Region Committee?

We are looking for EIC members to help shape the future direction of the region.

Aims of the Southern Region Committee: • Assist in development of the regional programme to equip members with an overview of the energy sector, including suggestions and ideas of areas of interest, speakers or projects.

• Provide a cross section of feedback on EIC services and activities offered within the region, helping to shape our membership offering.

• Help us consider the needs of speaker companies and members attending regional events.

• Promote the EIC to potential members and speaker companies.

• Provide insight and feedback on projects/ industry trends.

Benefits of Committee Membership: • Raising the profile of yourself and your organisation among the membership and beyond via the EIC website.

• Representing the views of EIC members both in the region and as a whole.

• Helping to build a beneficial programme of events and activities for EIC members.

• Building strong relationships with other committee members across the UK. • Enhanced networking opportunities.

• Priority invitations to select EIC events.

• Meetings provide an opportunity to discuss market trends and share industry knowledge.

If you wish to be considered for a place on the Southern Region Committee or would like to find out more, please contact Jennifer Hole: jennifer.hole@the-eic.com

Forthcoming Events

Business Presentation Opportunities with Wood Group PSN Tuesday 17 February 2015 Hilton Tree Tops Hotel, Aberdeen

Wood Group PSN is a global provider of preoperation, hook up and commissioning, operations and maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. Employing over 30,000 people in more than 40 countries, Wood Group PSN offers high integrity, brownfield services that support customers to optimise performance, maintain production, reduce operating costs and provide integrity assurance. This fantastic event will provide an arena for you to find out about what Wood Group PSN does and how they do it.

The speakers will also highlight the procurement policies and procedures of the organisation, provide insights into the supply chain opportunities available and talk about the changing landscape of the oil and gas industry.

Contact Sean Gordon: jennifer.hole@the-eic.com Regional Showcase Southern Region Contractors Showcase Wednesday 11 March 2015 EIC London This Regional Showcase will feature a panel from the key contractors across the EIC Southern Region discussing trends, procurement practices and challenges across the energy sector. It will also provide a fantastic platform for networking with your fellow members from across the UK. The presentations will include the following: • Trends and challenges – what are they and how are they being addressed.

• Procurement policy – how to do business with them; pre-qualification processes; how to do business.

• Contacts – local and global procurement contacts.

• Project updates – current and future project activity; opportunities for the supply chain; global project portfolio managed locally; procurement requirements.

• Developing new technologies – companies plans; supply chain involvement.

Contact Jennifer Hole: jennifer.hole@the-eic.com

Corporate Entertainment Pembroke Supper Thursday 26 March 2015 Cleddau Bridge Hotel, Pembroke Dock The EIC is delighted to announce that the 2015 Pembroke Supper will return to the Cleddau Bridge Hotel, Pembroke Docks, on 26 March. With over 75 projects taking place within the surrounding area generating a potential of up to US$17 billion of business, Pembroke is the South West’s energy capital of Wales.

This event provides the perfect opportunity to entertain guests, network with prospective customers and generate business contacts in the area. The Pembroke Supper also provides a brilliant opportunity for one company to promote their abilities by sponsoring the evening. Register your interest with Jennifer Hole: jennifer.hole@the-eic.com

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

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February 2015

EIC Middle East News

Middle East News

One last thing before we get on to visitors to the office, the application packs for this year’s ADIPEC have just been released. The dates are 9-12 November and anybody who experienced last year’s event will be aware of how prestigious this event has become, so much so that the EIC is offering a greatly extended UK Pavilion that rivals our presence at OTC, renowned as being the number one show for the global oil and gas community.

Recent visitors to the office include Ivan Sonko from NES Global and Steve Huddlestone from ACS. Alex Haynes from the newly formed Amec Foster Wheeler spent some time briefing the office on the new structure, Dave Sim from Online Valves passed by as did Rexel’s John Kaznowski. Finally, it was a pleasure to greet the newly appointed and recently arrived Managing Director for the Middle East operation of the Score Group, Richard Sadler.

Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Office News

At the time of writing, the major talking point across the globe and especially here in the Middle East is the plummeting price of oil. While this naturally creates a domino effect throughout the world economy, the fundamentals for the economies close to home remain unchanged. With huge reserves in the form of sovereign wealth funds in place, all of the GCC countries will have no problem in riding this storm that is seen in some quarters as a direct battle emerging between the ‘new kids on the block’ in the US where the shale guys continue to increase their production come what may, versus the heavy guns of Saudi Arabia and the Gulf States who want to see some correction in supply given current market conditions, but they are not going to make the first move. It certainly seems to be a game of brinkmanship and therefore it will be anybody’s guess as to how far this will eventually go. However, if its of any consolation, we heard at a conference last month that the consensus of opinion among the so called experts and observers, was that there will be some sort of price revival around Q3 or early Q4 that will result in us seeing a figure of US$65 to US$70 being reinstated. Great news for a lot of people but in the meantime, there are some substantial economies like Russia and Iran who will have to endure considerable pain while the price continues to slide down the slippery slope below US$50. How this all impacts on the business environment is the $64,000 question.

For this month, we have our annual golf tournament which again is a sell out. We are eternally grateful to our prime sponsors, Wood Group PSN who are ably supported by fellow members Rexel, Sulzer and William Hare. Another popular event this month is our Fundamentals of Oil & Gas training course that continues to attract firm interest from the local membership.

Next month features two events that we are confident will be winners. Following the merger of AMEC and Foster Wheeler, we are delighted to host Tom White from newly formed Amec Foster Wheeler who will provide an insight into how the new company came about, what their business focus is and methods to be adopted in order for our membership to engage with them. Following on soon after this will be the Oil Baron’s Charity Ball on 6 March, an annual social event that has proved to be an enduring event for our members to network with their industry’s peers at an excellent venue with great food and entertainment.

As always between now and June, we intend to keep everybody posted on our progress with regard to EIC Connect Middle East. The date is set for 2 June and exhibition space is gradually being taken and having regard for the conference programme slowly coming together along with notable speakers who have agreed to participate, this will prove to be an excellent platform for any member who wishes to showcase their products and services to the regional oil and gas sector.

Forthcoming Events

Corporate Entertainment Dubai Annual Golf Tournament Thursday 19 February 2015 The Els Club, Dubai

Industry Overview

Fundamentals of Oil & Gas Tuesday 24 February 2015 International House, Dubai Business Presentation Opportunities with Amec Foster Wheeler Tuesday 3 March 2015 St Regis Hotel, Abu Dhabi To register your interest or to book on any of the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Egypt goes for more solar power Egypt’s Electricity & Renewable Energy Ministry is considering inviting a second round of solar photovoltaic (PV) proposals from 20MW to 50MW under its feed-in tariff scheme with the tariff expected to be revised downwards.

The problem is that the current grid capacity can only support 2,000MW of solar capacity which was the target from the current bidding round. Once this 2,000MW of solar PV projects have been awarded, any companies remaining on the prequalifying list will automatically be transferred to a waiting list for this second round.

The government of Egypt has committed to invest US$549m over the next year to improve grid capacity and strengthen the network and once this work is complete, and the first round projects have reached a financial close, the ministry will invite more pre-qualifications for other solar PV projects. A second round of wind projects is also planned in the shorter term.

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

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February 2015

EIC Asia Pacific News

Asia Pacific News

Forthcoming Events

Business Presentation Fundamentals of FLNG Wednesday 25 February 2015 EIC Kuala Lumpur

Office News

We were at Offshore Korea from 11-14 November 2014 in Busan, Korea, providing regional support to the EIC overseas events team managing the UK Pavillion. Twelve member companies took part in the exhibition. From 2527 November I attended EIC Connect 2014 in Manchester followed by attendance at OSEA 2014 in Singapore from 2-5 December 2014. 20 member companies took part in the UK Pavillion at OSEA. In Kuala Lumpur we visited the International Business Division of PETRONAS headed by Mr Shareef Kader who gave us a short briefing on PETRONAS’ international forays worldwide. According to Mr Kader, PETRONAS is now present in 17 countries, the most notable being PETRONAS’ involvement in Canada, Brazil and Argentina. On 17 November 2014, a business presentation entitled ‘Doing Business with PETRONAS’ was conducted in our offices. The presentation was delivered by Mr Azlan Asidin, formerly with PETRONAS and SapuraKencana, who shared his inside knowledge of PETRONAS, its ways of working and business culture.

20 EIC members attended this business presentation.

In December 2014 we visited the Western Australia Trade & Investment Office (WATIO) in Singapore and had a fruitful discussion with the Regional Director of WATIO, Mr John Osborn. Mr Osborn has agreed to give a short presentation to EIC members with regards to the supply chain opportunities in Western Australia’s oil and gas industry. The WATIO presentation is scheduled to be held in our offices on 25 February 2015, ahead of the Australian Oil and Gas (AOG) Exhibition which will be held from 10-13 March in Perth.

Industry Overview Fundamentals of Subsea Thursday 5 March 2015 EIC Kuala Lumpur

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

Regional Comment

FLNG is still the option at Cash-Maple field Thailand’s PTTEP insists that a FLNG solution is still among the options for the development of its Cash-Maple field north-west Australia. The company will work through concept selection with all commercialisation options still under consideration and is focussed on concluding the work prior to the retention lease renewal in 2016. PTTEP is targeting the FID decision in 2016 while first production will be in 2020.

China hits gas at Lingshui 25-1 CNOOC has made a new deepwater gas discovery at its Lingshui 25-1 well in the Qiongdongnan Basin. The well encountered a 73 metre oil and gas pay zone and produced approximately 35.6 Mmcf of natural gas and 395 bbl/d of oil. The new discovery opens up a new exploration chapter in the deepwater area as well as proven the good exploration prospects in the deepwater area of Qiongdongnan Basin.

Keppel Shipyard bags second FLNG contract Golar Gimi has awarded Keppel Shipyard US$705 million to perform the conversion of a second Moss LNG carrier, the GIMI, into a FLNG vessel. Keppel will provide the EPC while Black & Veatch will provide the design and commissioning support services for the topsides as well as the liquefaction process utilising its PR/CO technology. Work is expected to commence no later than November 2015 and is scheduled to be delivered within a 33 month period.

Players battle to supply D-18 water injection unit PETRONAS is seeking a jack-up or floater with a water injection capability to operate its mature D-18 field. MISC, Bumi Armada, GOM Resources, SapuraKencana, SCOMI and EA Technique are taking part in the tender. The contract includes a five year charter of the jacket or floater after which the operator has an option to extend or buy the unit. Contractors also have an option of offering O&M services. The contract is scheduled to be awarded in Q1 2015 with 14 months delivery time.

The EIC Asia Pacific office has a large and fully-equipped conference room with capacity for 70 people. The conference room is versatile enough to be converted into a training room or a function hall for networking events. As with the other EIC regional offices, we also provide members with hot desks with high speed internet connection and facilities for printing and scanning. For those members who wish to build a presence in new markets and intend to have a strong local identity with a prestigious address, EIC Asia Pacific offers serviced office facilities.

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

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February 2015

EIC North and Central America News

North and Central America News Industry Overview

Office News

Fundamentals of Refining & Petrochemicals Wednesday 25 March 2015 EIC Houston This Industry Overview will enable delegates to gain an appreciation of the fundamentals involved in the refining & petrochemicals industry. Delegates will gain insight into the key processes and commercial fundamentals behind modern day refineries and petrochemical complexes.

BATT Cables, an existing tenant in the EIC North and Central America office, is expanding its regional operations. Having welcomed Gavin Wandrey as Sales Executive to its team it is now in the process of opening its own warehouse premises in the city where it will shortly be relocating to. BATT Cables is a UK cable supplier and cable distributor including computer cable, power cable, network cable, electrical cable and cable accessories.

The EIC is delighted that our EIC LaunchPad service has assisted another member to grow its presence in the region and aided its global success.

Permasense Ltd is opening up an America corporation, Permasense Americas Inc, and is taking advantage of the EIC LaunchPad service available to members.

Permasense® is a leader in the field of continuous corrosion monitoring, providing real-time data-to-desk measurement of pipe wall thicknesses in inhospitable and inaccessible environments. We are happy to welcome Permasense to the growing Houston office family.

It has been a busy start to the year for the EIC North and Central America office with nine new faces joining us in the Houston office. We have a couple of leases pending already so we encourage any members interested in the EIC LaunchPad service to contact us at your earliest convenience.

Business Presentation Opportunities with Amec Foster Wheeler March 2015 tbc EIC Houston This presentation will give an insight into Amec Foster Wheeler and its current business projects along with procurement practices, processes and contacts.

For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact: Email houston@the-eic.com

Regional Comment

Florida project expansion continues Florida is expected to see more than US$1 billion in projects begin construction in the first quarter of 2015, with a major transmission project and the expansion of a fertilizer plant leading the way. Almost 90% of the activity can be found in three industries; power, chemical processing and industrial manufacturing. The power industry alone accounts for US$473 million, or about 45%. 90% of the US$1 billion-plus total investment value for these projects is attached to projects currently in the engineering stages.

Forthcoming Events HSE Training

ATEX/IECEx Certification Wednesday 4 March 2015 EIC Houston This Health & Safety course is specific to engineering firms and manufacturers working to service the hazardous location environments of the international oil, gas and chemical markets.

Arctic drilling on hold Due to the rise in oil prices, Chevron has put on indefinite hold its Arctic drilling in the Beaufort Sea, where the company has two licenses to explore. A JV of Imperial Oil (ExxonMobil) and BP has not yet made a final decision on its plans to drill in the Beaufort Sea, but claims to remain in early-stage planning phase. The earliest drilling that could happen there is the summer of 2020.

Technical Workshop

Introduction to Heat Transfer Fluid Systems Thursday 19 March 2015 EIC Houston This Technical Workshop will examine the fundamental key components of heat transfer fluid systems including types of fluids and system process design, operation, maintenance and trouble shooting.

Mexico JV to bid in 2015 Pacific Rubiales and Alva SAB have formed a 50/50 joint venture in Mexico in order to bid together on assets in the country’s initial oil and gas bid round in 2015. This will also allow for the acquisition of services contracts with a view to migrating them to exploration and production contracts, as well as for the development of petroleum and natural gas assets and the development of any business ancillary to the petroleum business in Mexico, including midstream projects.

Industry Overview

Fundamentals of Oil & Gas Tuesday 24 March 2015 EIC Houston This Industry Overview provides a knowledge of the oil and gas industry from it’s origin, exploration methods and production processes, to commercial trends and technical terms.

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

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February 2015

EIC South America News

South America News Office News

Would you like to use the EIC to tap into the Brazilian market? With a range of contacts, the EIC in Rio has also improved its facilities and we would like to work closer with our members to promote technical workshops to local industry.

The next Business Presentation is scheduled for March, when we expect to hear from Techint Engineering & Construction about its projects. One of its recent ones, awarded in partnership with Technip, was the offshore oil services contract for topside construction, integration, commissioning and startup assistance of the Petrobras P-76 FPSO unit. The vessel will be located in the Santos Basin, Cessão Onerosa pre-salt area, with an expected production of 180,000 bbl/d of oil and 7 MMcmd of gas.

Regional Comment

New Mines and Energy minister appointed in Brazil President Rousseff has appointed Eduardo Braga, a senator for the state of Amazonas, as her new minister of Mines and Energy. Braga replaces Edson Lobão, who served as minister since 2011 and is involved in kickback schemes related to a much publicised corruption scandal involving Petrobras. Braga’s main priorities will be addressing the crisis at the company, which has lost over 85% of its market value since 2009, and tackling Brazil’s dependence on hydroelectricity after the country’s worst drought in decades experienced in 2014.

Forthcoming Events Management Course

Project Engineering: Phases, Documents and Claims Tuesday 17 March 2015 EIC Rio de Janeiro

New bidding round this year Brazil’s National Council for Energy Policy has approved the country’s 13th bidding round for exploration blocks, scheduled to take place by the end of June 2015. The round will focus on areas located on the country’s eastern seaboard, including blocks in both mature and frontier exploration areas offshore and onshore. 10 inactive onshore blocks in the Reconcavo, Espirito Santo, Tucano Sul, Paraná and Barreirinha basins will also be included.

Technical Workshop Introduction to FPSOs Saturday 28 March 2015 EIC Rio de Janeiro

Technical Workshop

Introduction to Steam Turbine Technologies Tuesday 31 March 2015 EIC Rio de Janeiro

Bolivia O&G to receive US$12.1bn by 2019 The state-run oil company YPFB has announced that the hydrocarbons sector in Bolivia is expected to receive an investment of US$12.1 billion in 2015-19. The planned investment will coincide with president Morales’ third term in office.

If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

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

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February 2015

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