EIC Monthly News June 2016 by Energy Industries Council

EIC Monthly News June 2016

Sector Analysis

Turkey is set to become a key market for companies looking to supply power generation projects

Page 2

EIC Monitor

This report brings you up to date with all the major contracting activity which took place in Q1 2016

Page 4

Training Services

Our Fundamentals of Nuclear course is a must for those companies wanting to learn about this re-emerging sector

Page 17

Member News • Events • Middle East News • Asia Pacific News • North America News • South America News © ThinkstockPhotos

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EIC Sector Analysis

Sector Analysis

Power in Turkey – a newly emerging market With the World Bank predicting US$130 billion of investment in new energy infrastructure in Turkey by 2030, the country is likely to become one of the key global markets for companies looking to supply power generation projects in the coming years. In Turkey, rising levels of GDP, industrialisation and population growth have resulted in a demand for energy that is increasing 7% per year and will double over the period between 2013 and 2023. The Turkish government is predicting that installed capacity must increase from its current level of around 70GW, to as much as 130GW. To do so the government is encouraging major investment in the power sector, with a specific focus on new nuclear plants as well as coal and renewable energy projects. The driver behind developing these sectors is in part the desire for the country to lessen its dependency on imported oil and gas for energy production. Sixty-two percent of Turkey’s trade deficit is attributed to oil and gas imports and the government has prioritised developing a domestic energy industry that better utilises Turkey’s natural resources. Coal is one such natural resource and currently provides 26% of the country’s electricity demand. Plans are in place to double the power that coal provides, with many of the planned plants set to use Turkey’s currently underexploited domestic coal reserves. EICDataStream is tracking this activity, with 12 new build projects at various stages of development. All 12 will be online by 2022, providing an additional 10.2GW of capacity at an estimated CAPEX of US$13 billion. However, it is nuclear power that is likely to be the main sector of interest for the UK supply chain. Developing a nuclear power industry in Turkey has been a priority for the government for some time and agreements are now in place with foreign parties to develop three nuclear power plants across the country.

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In 2010 an agreement was signed between Turkey and Russia for the Akkuyu plant. Rosatom, the Russian Federation’s national nuclear corporation, is expected to begin construction on the US$20 billion project by the end of this year with commissioning of the four 1.2GW reactors expected by 2025. The Sinop plant was awarded to Atmea, a joint venture between Areva and Mitsubishi Heavy Industries, under a build-operate-transfer arrangement in May 2013. The 4.6GW capacity project is likely to feature the world’s first Atmea1 reactors. Feasibility studies are expected to be concluded in early 2017, with construction to kick off later that year. A third nuclear power plant will be built following an agreement to enter into exclusive negotiations between China’s State Nuclear Power Technology Corporation and Westinghouse. Early conceptual design work has taken place on a four reactor plant that is likely to be the largest of the three projects in terms of capacity – up to 5.3GW. In October 2015, Igneada, near the Bulgarian border, was identified as a suitable site for the project. Tendering is likely to open next year with two unnamed Chinese firms reportedly working on bids. Export opportunities in the nuclear sector are likely to be numerous, with UKTI having already worked alongside the Turkish government to increase awareness of the capabilities of British companies. It should also be noted that a formal co-operation agreement has been signed between the Nuclear Industry Associations of Turkey and the UK showing that there is a clear intent by Turkish authorities to use British expertise for mutual benefit. Furthermore, in a recent study the Turkish Ministry of Energy and Natural Resources concluded that partnerships with international companies for the manufacturing of a number of materials and components would be necessary. These include pumps and valves, piping installations, nuclear grade steel and IT systems.

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A drive towards diversification will see renewables become an increasingly large part of Turkey’s energy mix in the coming years. This is due in part to the government’s EU backed National Renewable Energy Action Plan. The plan sets an ambitious target of 30% of installed capacity from renewable sources by 2023. To meet this target Turkey will require a sevenfold increase in nonhydro renewable power, amounting to an additional 15GW of onshore wind and 5GW of solar, both photovoltaic and concentrated. Much like nuclear, the renewable energy industry is in its infancy in Turkey and local developers are expected to turn to foreign companies with extensive experience in helping to deliver renewable projects. We are already seeing movement in this area with Nordex and Siemens being awarded multiple turbine supply deals amounting to 140MW and 54MW respectively so far this year. Many of the solar and wind projects in planning and development in Turkey are relatively small in scope, however, it is anticipated that there will be an increase in the number of large scale renewable projects in development in order to meet the aforementioned 30% target. With growth in solar and onshore wind in the UK likely to slow in the near future, Turkey has the potential to emerge as a key destination for UK renewable energy firms. Solar equipment supplier Hive Energy is one such company to have recognised Turkey’s potential, having recently opened an office in Ankara. With government backing, legislative drivers and an appetite for investment in several areas of power generation in the pipeline, it is evident that Turkey is a market with potential export opportunities for the UK supply chain. Ryan Daily Research Analyst, PNR Email ryan.daily@the-eic.com

June 2016

Inside this issue...

Inside this issue... This month’s news focuses on the emergence of Turkey, Europe’s sixth largest economy, as a global player in the energy industry, and the opportunities offered by a revitalised nuclear sector, which is also gaining momentum in Turkey as well as the UK. Turkey is becoming more and more attractive for the UK supply chain and it’s easy to see why. It has an enviable economic growth rate, which reached 4% in 2015, a growing demand for energy that stands to get £90 billion of investment by 2023, and a government target to increase renewable energy to 30% of total consumption.

The member news section on page 9 highlights numerous examples of other positive developments, such as Alderley’s contract to supply fiscal metering to Shell Nigeria, or Garic’s expansion to include a new depot in the Midlands. Finally, we are pleased to welcome our new CEO Stuart Broadley who joined the EIC last month.

Our sector analysis on Turkey (opposite) looks at the major energy projects taking place within the nuclear sector in particular, and explores how UK product and service suppliers can get involved. With the UK on the verge of a major programme of nuclear new build, which includes Hinkley Point C, Wylfa and Moorside, now is a great time for British companies to place themselves at the forefront of this re-emerging sector. For those companies wanting to learn more about this sector our Fundamentals of Nuclear course is a must. For detailed course information please see our training services section on page 17. If you want to find out about the current and future opportunities in the nuclear sector please log on to EICDataStream for the latest updates. Our Monitor report on page 4 brings you up to date with all the major contracting activity from Q1 2016 (January to March). While the report shows that the industry is still facing challenging conditions, it’s good to see some positive developments, such as a 28% rise in major EPC, FEED, and subsea/SURF upstream contracts on the previous quarter. www.the-eic.com

Contents Sector Analysis

Inside this issue...

EIC Monitor

New Members

Member News

Events Diary

Overseas Events

UK Events

National Events

Training Services

Middle East News

Asia Pacific News

North America News

South America News

The EIC’s new CEO Stuart Broadley

Stuart brings over 20 years of global energy services experience, in oil and gas and renewables, to the EIC, having joined us from Hoerbiger where he was Global Head of Service for their Compression Technology Division. One of Stuart’s key aims is to help our member companies gain maximum benefit from the global business opportunities available. Edward White Editor & Communications Manager Email edward.white@the-eic.com

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June 2016

EIC Monitor

Eni is progressing with the fast tracked Nene Phase 2 project in Congo (Brazzaville). Dynamic Industries was contracted to refurbish a 500 tonne production platform and a 300 tonne jacket which will be loaded-out in May 2016. Two more EPC contracts have been put out to tender for this project, with Saipem favourites for the production platform and two wellhead platforms work. Sonatrach awarded JGC a US$339 million contract at the Hassi Messaoud field to help increase production. The contract includes the revamping and implementation of a new system of production at the field.

Oil and Gas Monitor quarter 1 2016

FEED activity Feed activity rose from zero contracts in Q4 2015 to 10 contracts in Q1 2016. Leading in contracting activity were Norway and the Falkland Islands, with three awards each spread across three upstream projects. Statoil awarded all three Norwegian FEED contracts, with the most significant being a US$22.5 million award to IKM Ocean Design for the integration of the subsea umbilicals, risers, flowlines and tie-ins at the Johan Castberg field. Statoil also awarded two FEED contracts at the Trestakk oil discovery: the proposed subsea tie-back to the Asgard FPSO was awarded to Aker Solutions with the subsea installation going to Forsys Subsea. The Aker Solutions contract also has the option for the subsequent EPCI contract.

Upstream contracting activity in Q1 2016

In Q1 2016, a total of 41 major contracts (EPC, FEED, Subsea/SURF) were awarded across 29 upstream developments, rising 28% from 32 awards in Q4 2015, but decreasing 25% from 55 contract awards in Q1 2015. A total of 14 EPC contracts, 10 FEED contracts and 17 Subsea/SURF contracts were awarded.

All three Falkland Islands contracts were for Premier Oil’s Sea Lion field. FEED contracts were awarded to National Oilwell Varco and Subsea 7 for the field’s subsea scope, while SBM Offshore was awarded a contract for the FPSO, with work expected to last around 18 months. Although the field partners appear committed to developing the first oil field in the Falklands, discussions with Argentina over maritime borders may slow the progress of the development.

EPC activity Similar to Q4 2015, Norway and Malaysia dominated EPC activity in Q1 2016, accounting for four contracts (two each) at three different upstream developments. In Norway, both contracts were awarded at Statoil’s Oseberg Future Development project (Vestflanken). Aibel was awarded a US$23 million EPCI contract for the Oseberg field centre, and will prepare the platform for receiving the well stream from Oseberg Vestflanken 2. The US$93 million EPC contract for the unmanned wellhead platform including the transportation and installation of the platform was awarded to Heerema Fabrication Group.

WorleyParsons was awarded a major FEED contract for phase 1b of the US$11 billion Bul Hanine project in Qatar. The contract will be carried out over the next five to six months and includes five topsides (each weighing 1,500 tonnes) for the wellhead platforms, subsea pipelines, umbilicals and modifications to existing platforms. Subsea/SURF In addition to EPC and FEED awards, Norway also dominated Subsea/SURF contract awards in Q1 2016. Statoil awarded all five of the Norwegian contracts across three developments to two contractors. Technip was awarded pipe laying contracts at the Johan Sverdrup and Oseberg Vestflanken 2 developments for a combined total of US$48 million, while Ocean Installer was awarded marine construction and installation contracts at the Johan Sverdrup, Oseberg Vestflanken 2 and Gina Krog developments for a combined total of US$24 million.

The two Malaysian contracts were awarded by Petronas to EA Technique and SapuraKencana Petroleum. The US$200 million contract to E.A. Techniques was for the provision of an FSO at the Bergading field that will have a storage capacity of 500,000 barrels, with conversion works to be performed at either the Malaysia or Singapore shipyard. SapuraKencana’s contract includes the provision of hook-up and commissioning at the Kinabulu non-associated gas project.

Elsewhere in Europe, two contracts were awarded in the UK. Exceed will provide plug and abandonment support at Fairfield’s Dunlin Cluster decommissioning project. JDR Cable Systems will design and manufacture 11.3km of power and static subsea umbilicals with accompanying termination software for the West Brae field.

One contract was awarded in North America. In the US, Williams was awarded a contract from Shell to provide deepwater gas gathering services for the planned platform at the Appomattox Deepwater field In the Gulf of Mexico. www.the-eic.com

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June 2016

EIC Monitor EPC activity With 17 contracts awarded, Q1 2016 has seen a slight increase (11%) in EPC contracting activity compared with Q4 2015. Activity has been concentrated on select projectsl, in particular, the two large scale European pipeline projects TAP and TANAP saw a number of developments.

The work will take place from JDR’s Hartlepool facility and delivery is scheduled for July 2016. The other Subsea/ SURF contract in Europe was awarded to Subsea Engineering Associates (SEA) for the B4 and B6 fields in Poland. Following on from completing the FEED work, the SEA contract includes over 110km of subsea pipelines, horizontal directional drilling shore crossing, pre and postlay trenching, risers and platform tie-ins, as well as system engineering including reservoir to gas plant flow assurance.

The TAP consortium awarded two EPC contracts on the pipeline. The first was to Spiecapag to supply 238km of the Greece-Albania section of the pipeline. The second contract, to supply 360km of pipeline, was awarded to the joint venture of Bonatti and J&P Avax.

In the Asia Pacific region, the US$2 billion Greater Western Flank Phase 2 project in Australia awarded three contracts to three separate contractors. The North West Shelf Venture awarded Mcdermott a pipeline transportation and installation contract, Wood Group Kenny a contract to perform the flowline system detailed design and support the related procurement and construction processes, and FMC technologies a subsea production systems contract. The project received approval from the partners in December 2015.

The TANAP consortium also awarded two separate EPC contracts on the TANAP pipeline. Tekfen was selected for the first contract to supply two compressors for the pipeline, while Punj Lloyd’s joint venture Limak was awarded a US$400m contract to supply 460km of pipeline. EPC contracting activity in the Middle East more than halved from five awards in Q4 2015 to only two awards in Q1 2016. However, one of those contracts was a high value contract awarded by the Kuwait NOC on the AI-Zour LNG terminal. A consortium led by Hyundai Engineering won the US$2.93 billion contract to build the import terminal at Al-Zour. The consortium also includes Hyundai E&C and the government-run Korea Gas Corporation. The construction period is expected to be 58 months and is likely to be completed by 2020.

No Subsea/SURF contracts were awarded in South America or the Middle East. In Africa, two contracts were awarded, both for the US$12 billion West Nile Delta development in Egypt. The contract awarded to Subsea 7’s includes engineering, procurement, installation and pre-commissioning of subsea infrastructure from 12 wells, including 80km of umbilicals, 220km of pipelines, and installation of export lines from the subsea location to the Idku terminal. OneSubsea’s contract will see it supply the subsea production systems for the Giza/Fayoum and Raven fields.

FEED activity Despite activity slowing compared to previous quarters, LNG facilities, both import and export, still dominated the FEED activity for Q1 2016. Following a period of inactivity, developments on Shell’s Tabangao floating LNG have started up again. Shell recently awarded its subsidiary Pilipinas Shell Petroleum a FEED contract on the project. Although activity is subdued when compared to previous quarters, North America was still the region which saw the majority of FEED activity for Q1 2016. Eagle LNG awarded a FEED contract to CH-IV for work on the Jacksonville LNG plant. In British Columbia KBR won the other major FEED contract which was awarded in the region for work on Woodfibre’s export LNG project. Pre-FEED activity No major Pre-FEED contracts were awarded in Q1 2016. This is indicative of the sector as a whole in the current climate. The oversupply in the markets, and in particular, the recent flood of LNG has left a number of project no longer commercially viable to proceed to development.

Midstream contracting activity in Q1 2016

Downstream contracting activity in Q1 2016

In Q1 2016, a total of 21 major contracts (EPC, FEED and Pre-FEED) were awarded across 17 midstream developments, decreasing 9% from 23 awards in Q4 2015, and 66% from 63 contract awards in Q1 2015. A total of 17 EPC contracts, 4 FEED and 0 Pre-FEED contracts were awarded. www.the-eic.com

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In Q1 2016, a total of 34 major contracts (EPC, FEED and PMC) were awarded across 30 downstream developments, decreasing 11% from 38 awards in Q4 2015, and decreasing 26% from 46 contract awards in Q1 2015. A total of 24 EPC contracts, 7 FEED contracts and 3 PMC contracts were awarded. 5

June 2016

EIC Monitor Amec Foster Wheeler was awarded three contracts by Sonatrach on three separate projects in Algeria: the Biskra refinery, the Tiaret refinery and the Hassi Messaoud refinery expansion. As part of the FEED contracts, expected to be finished by 2018, Amec Foster Wheeler will support Sonatrach in selecting a technology supplier for each project. In the US, Johnson Matthey was awarded the FEED contract for phase one of the Big Lake Fuels MTG facility in Louisiana. In addition to the FEED contract, Johnson Matthey will supply the technology licence, basic engineering, and catalyst and technical services for the project.

EPC activity The majority of EPC contracting activity in Q1 2016 took place in North America, increasing 25% from Q4 2015. In total, 12 EPC contracts were awarded in North America, six of those contracts being awarded in the US. Toyo Engineering was awarded an EPC contract for phase one of the Big Lake Fuels MTG facility in Louisiana at the beginning of March. As part of this contract, Toyo will provide basic engineering for offsite and utility facilities and detailed engineering of the complete methanol facility.

PMC activity Decreased PMC activity continued from Q4 2015 into Q1 2016. In March, a joint venture of SOCAR and KBR, SOCAR-KBR LLC, was awarded a PMC contract to perform project management services on the Heydar Aliyev Baku Oil Refinery Modernisation project in Azerbaijan. Towards the end of the quarter, WorleyParsons was awarded the PMC for the Asyut Refinery Modernisation project in Egypt. The contract will cover the development, management and supervision of the EPC packages. The EPC phase of the project has been split into two phases and should take four years to complete.

Another major EPC contract was awarded by Midwest Fertilizer Corporation for the Mt. Vernon (Posey County) fertiliser plant in Indiana. ThyssenKrupp Industrial Solutions was awarded the EPC contract for this US$2 billion facility, with construction expected to be complete in 2020.

Power, Nuclear and Renewables Monitor quarter 1 2016

In Mexico, Pemex awarded Technicas Reunidas a US$800 million EPC contract for the second phase on their low-sulphur diesel project at the Lazaro Cardenas Refinery ULSD project. The contract includes the engineering, supply, construction and operation of two new refinery units for low-sulphur diesel production, and is expected to be complete in 2019. The Middle East and North Africa region has seen significant EPC activity in Q1 2016, with six contract awards. In Algeria, Sonatrach awarded a US$100 million contract to ABB for the Rhourde Nouss crude oil and natural gas treatment plant revamp. Under the contract, ABB will reconstruct a treatment unit in the liquefied petroleum gas plant that serves the Rhourde Nouss gas field. This should be complete by 2020.

Global thermal and nuclear major contract awards in Q1 2016

Of note is an EPC award in Iran, where economic sanctions have recently been lifted. Namvaran Consulting Engineers Managers was awarded the EPC contract for the Mokran Petrochemical Complex, part of the Chabahar Port Petrochemical Hub. This project is valued at US$448 million and is scheduled to be completed within 48 months.

In Q1 2016 (January â&#x20AC;&#x201C; March), 40 major contracts were awarded across 37 thermal and nuclear projects globally compared to the 61 major contracts that were awarded across 50 projects in the previous quarter (Q4, October to December 2015).

FEED activity FEED activity in Q1 2016 increased 28% from Q4 2015. Algeria and the US were hotspots for FEED activity, with three FEED contracts being awarded in each country. www.the-eic.com

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Of the 40 contracts awarded in Q1 2016, 19 were engineering procurement and construction (EPC) contracts and 21 were for the supply of original manufacturer equipment (OEM). 6

June 2016

EIC Monitor Despite seeing a 41% decrease in contract awards from the previous quarter North America continued to dominate regional activity with 13 of the contracts being awarded in the US (six), Mexico (three), Jamaica (two) and projects in Canada and Panama each awarded a contract respectively.

The company won its largest contract for the 1,320MW Rampal coal-fired power plant in Bangladesh, where the company will act as the main EPC contractor for the project. Seven contracts across six projects in the African continent were awarded. Orascom Construction obtained two EPC contracts for the Assiut and Damietta West power plant conversion projects located in Egypt. Two OEM supply contracts were awarded at the Kinyerezi II combined-cycle gas-fired power plant project in Tanzania. The first to Mitsubishi Hitachi Power Systems to supply six H-25 gas turbines and generators, and the second to Toshiba Plant Systems & Services Corporation to supply heat recovery boilers, steam turbines and undertake civil and installation works. Mozambique, Zimbabwe and Nigeria all saw contracts awarded at gas-fired power plant projects. A landmark contract valued at almost US$1 billion was awarded in Saudi Arabia during Q1 for Saudi Electric Company’s Waad Al Shamal integrated solar and combined cycle power plant. A GE and Abener Energia joint venture won the EPC contract for this 1,390MW project. The scope of work includes the supply of four gas turbines, a steam turbine and solar innovation technology. GE has also been confirmed as OEM supplier for the 485MW Hussein CCGT IPP in Jordan when ACWA Power signed a 25-year power purchase agreement with National Electric Power Company on 18 January 2016. The project will use GE 9E turbines and run on natural gas as the primary fuel, and light diesel oil as the secondary fuel. Shandong Electric Power Construction Corporation III will be the EPC contractor for the project, while the operations and maintenance will be undertaken by the Central Electricity Generating Company of Jordan.

Two of the contracts awarded in the US are related to emissions control projects. This is an ongoing trend in the country, where the Environmental Protection Agency (EPA) is leading a campaign to ensure that a significant number of existing plants control their emissions. While most investments in new emission control equipment to comply with current EPA air regulations have either already been made or will be installed within the next couple of years, some newly finalised, as well as proposed and expected EPA regulations are likely spur a new wave of investments and/or coal retirements. While the final rules for reducing greenhouse gas emissions from new and existing US power plants will most likely result in additional retirements of coal-fired capacity and eliminate coal without carbon capture and storage as an option for new power plant builds, it could spur additional investments in process upgrades to improve the unit heat rates that would not be included as air pollution investments.

A notable contract award in Europe during Q1 was an order for Valmet to deliver three boiler plants and an automation system to the new Kilpilahti combined heat and power plant in Porvoo, Finland. Each boiler will have a fuel capacity of 150MW and be equipped with flue gas cleaning systems including baghouse filters and wet scrubbers. Valmet DNA’s distributed control system will cover the whole power plant. The contract also covers installation, training and commissioning for the equipment. The new plant will produce and supply steam, electricity and feed water to Neste’s refinery and Borealis’ petrochemical plant, with start-up scheduled for 2018.

Elsewhere, the Indian subcontinent saw a total of eight contract awards. Four in India, and two in Pakistan and Bangladesh each. While the region is seeing steady levels of investment, a number of planned projects in the pipeline are yet to have their fate decided, particularly in India, due to difficulties in obtaining access to coal and gas. Other issues such as land acquisition and a lack of water availability also continue to hold up projects. However, the Indian government is attempting to ease these problems through its ‘plug-and-play’ concept, whereby projects will only be awarded to developers when all regulatory clearances and resource linkages are in place, meaning developers can start implementing projects immediately, reducing the likelihood of stalled projects. Coal-fired power stations form the backbone of the Indian power generation sector and this is expected to continue in the foreseeable future, despite the nation’s concerted efforts to ramp up renewables such as solar.

Looking at nuclear developments, the last quarter saw three EPC contracts awarded across three projects. The most recent of these was the EPC contract awarded to a China Nuclear Engineering and Construction and China Nuclear Industry Fifth Construction Company joint venture for the nuclear and conventional islands of units 5 and 6 of the Fuqing Nuclear Power Plant, located on the north bank of Quanzhou Bay in the Fujian Province in south-east China. The other contracts were awarded to refurbishment projects in North America, namely the Ginna Nuclear Power Plant generator replacement in the US and the Darlington A Nuclear Plant refurbishment in Canada.

State owned power plant equipment manufacturer and engineering company Bharat Heavy Electricals Limited obtained 50% of the contracts awarded in the region. www.the-eic.com

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June 2016

New Members

EIC Monitor

New EIC Members

UK wind turbine contracts in Q1 2016

The first quarter of 2016 saw a 43% drop in the number of wind turbine supply contracts in the UK when compared to the previous quarter (Q4 2015, October to December), with only thirteen awarded. All of these awards were related to onshore wind projects.

New Global Member

Kongsberg Maritime Thermopylae House Prospect Road Arnhall Business Park Westhill Aberdeenshire AB32 6FE

Scotland continues to lead the way in onshore wind with seven of the contracts awarded to projects located there. Two of the contracts went to projects being developed by the relatively new market player 2020 Renewables. The Airies and Sorbie onshore wind farms awarded turbine supply contracts to General Electric and Enercon GmbH respectively.

The Nominated Representative is Ms Allison Craig, Marketing Co-ordinator. Tel +44 (0)1224 278 5300 Email allison.craig@kongsberg.com Web www.km.kongsberg.com

Turbine manufacturers Gamesa, Senvion and Enercon GmbH all obtained two contracts each in Scotland in Q1 2016.

Kongsberg Maritime is a global marine technology company providing offshore production and storage installations with advanced solutions for integrated automation and positioning applications.

While Siemens has obtained the most contracts in Scottish onshore wind projects between Q1 2015 and Q1 2016 (8 out of a total of 26), the German manufacturer Senvion has also done good business in the Scottish region taking five contracts over the period.

Kongsberg Maritime also develops subsea solutions covering systems for underwater mapping (UMAP), underwater navigation (UNAV), subsea monitoring (SUMO) and marine robotics in addition to underwater cameras. Kongsberg Maritime delivers solutions that cover all aspects of technology underwater and on the water, aboard new build and retrofit vessels, and on offshore platforms and rigs, often under a single supplier strategy called The Full Picture. New Global Member

LESER UK Ltd

Albion Dockside Works Bristol BS1 6UT Elsewhere in the UK, three contracts were awarded to onshore wind projects in England, one in Northern Ireland and two in Wales where both contracts were awarded to Gamesa for the Llynfi Afa and Mynydd Brombil onshore wind farms.

The Nominated Representative is Ms Sarah Read, COO. Tel +44 (0)117 927 9204 Email sarah.read@leser.co.uk Web www.leser.co.uk LESER is the largest manufacturer of safety valves in Europe and third largest in the world. LESER safety valves are used in industries such as chemical, petrochemical, industrial/technical gases, oil and gas production, compressors, food and drink, energy, LNG/ LPG, shipbuilding and pharmaceuticals.

Despite the challenges that the onshore wind industry has faced recently, industry players are competing with other renewable technologies in a market-based system without support from the state.

LESER offers spring-loaded and pilot-operated safety valves for all industrial applications according to PED and ASME VIII as well as application-based solutions for special requirements.

Data is sourced from the world leading EICDataStream online project tracking database, which tracks projects proposed or under development in the global energy industry. For more information please visit: www.the-eic.com/EICDataStream

LESER safety valves are developed at the company headquarters in Hamburg and manufactured at LESERâ&#x20AC;&#x2122;s modern factory in Hohenwestedt. LESERâ&#x20AC;&#x2122;s worldwide offices cover Europe, America, the Middle East and Asia.

EIC Monitor is published on a quarterly basis. www.the-eic.com

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June 2016

MEMBER NEWS ContraBlast for fire protection Advanced Insulation’s updated ContraBlast system provides blast and passive fire protection combining a lighter weight and a smaller footprint than conventional blast/fire barriers. For use on oil platforms, its lighter weight can result in significant savings, as the weight of the structure has a big impact on the cost of construction as well the lifetime cost of the installation. With return on investment such a key concern, especially in the current market conditions, it’s clear that building lighter topside structures is imperative. Space is at a premium in the highly congested environment of an offshore platform. As such ContraBlast’s small size is of great benefit. Effective fire and blast barriers remain a central means of hazard mitigation, reducing risk to personnel, to the environment and to the facilities themselves. Jet fires, hydrocarbon pool fires and vapour cloud explosions present different demands on barriers, which in many instances must be shown to survive a blast, followed by an ensuing fire. The combination of inherent resistance to onerous fire hazards, high levels of structural stiffness, yet reduced weight, and the potential to install a barrier with minimal hotwork, make ContraBlast suitable for a wide range of applications, both offshore and onshore. Further information on Advanced Insulation and its products/services can be found at: www.aisplc.com

AJT invests in bespoke 2,000t press Sub-contract services provider AJT Engineering has invested in a made to order 2,000 tonne press. For use in its unique cold extrusion process, the bespoke 2,000 tonne press is specifically designed for manufacturing integrally extruded outlet headers and manifolds for different applications in the oil and gas and power generation industries. Its cold extrusion process uses a closed die forming technique to produce seamless branch outlets, which form an integral part of the main header or manifold. AJT is able to extrude from a wide selection of ductile materials including stainless steel, alloy 800H/HT, titanium, Inconel 625, carbon and low alloy steels. The extruded outlet can be machined to give standard or client specific weld preparations to suit the connecting pipes and/or fittings. Pipe sizes range from 25mm to 2m in diameter, 12m in length and up to 48mm in wall thickness.

Alderley to supply Shell Nigeria Alderley Systems Ltd, a subsidiary of Alderley Plc, and its local partner GCA Energy have been awarded a contract by Shell Nigeria to supply and install a fiscal metering system. Its meter will measure hydrocarbon fluid, determining quality and quantity, providing the financial value of petroleum products. The system is located on the main North Cawthorne Channel Trunk Line (NCTL) at the entry point to Bonny Terminal, Nigeria. The crude oil metering system will consist of 5 x 25% 12” #150 coriolis meter runs and will be provided with a fast loop sampling system and associated control system. Jim Gray, Sales Director, Alderley Systems Ltd, commented: “We are pleased to have won this award and look forward to working in partnership with GCA Energy and the Shell Nigeria team on delivering another project in the region.”

AJT’s unique process eliminates complex weld geometry, provides 100% access to perform radiography or UT inspection, and offers a superior branch outlet. For more information contact Andy Rope: arope@ajt-engineering.co.uk Visit: www.ajt-engineering.co.uk

The metering and control systems will be engineered and manufactured at Alderley’s Gloucestershire facilities, with system integration, assembly, installation and testing completed on site in Nigeria in partnership with GCA Energy and the Shell Nigeria project team. Please visit: www.alderley.com @TheEICEnergy

New range of insulation systems Scottish company Balmoral Offshore Engineering has introduced a range of proven high temperature thermal insulation systems for use on subsea christmas trees, manifolds, spool pieces and jumpers. The systems complement Balmoral’s portfolio of buoyancy and elastomer products making the company a highly effective throughsystems provider for the exploration and production subsea sectors. The new range comes as a result of Balmoral’s continued investment in technology, manufacturing processes, product development and the expansion of its subsea test centre. The company’s experience of the insulation market runs deep. Dr Bob Oram, Technical Director, was instrumental in the success of the group’s former division, Balmoral Webco, which carried out many industry milestone insulation projects including BP Miller, Total Dunbar/Ellon and Girassol. In 2015/16 Balmoral contributed to a number of projects including Pierce and Blackbird in the UK North Sea, Shah Deniz in the Caspian, Lucius Deepwater in the Gulf of Mexico, Baobab offshore Ivory Coast, the Ten project in Ghana, and the OYO phase II project in Nigeria. Please visit: www.balmoral-group.com

Indicator has easy read large digits By adding compact field mounting instruments to its range of 4/20mA loop powered indicators, BEKA has solved the problem of displaying a process variable where space is limited. The new compact ‘G’ models have a robust, IP66 impact resistant GRP enclosure with an 8mm thick armoured glass window, but retain the easy to read displays from the larger models. These new ‘G’ indicators offer a choice of four 34mm high digits, or five 29mm high digits plus a 31 segment bar graph.

They have a wide operating temperature of -40°C to +70°C and include a square root extractor, sixteen segment lineariser and internal calibrator. The instruments are supplied calibrated to customer requirements with a novel slide-in scale card showing the units of measurement and tagging information. Accessories include a backlight that may be loop or separately powered, dual alarms with isolated solid state outputs, stainless steel legend plates and a pipe mounting kit. Intrinsically safe models are available with ATEX and IECEx certification permitting installation in gas and dust hazardous areas. For applications in Zone 2 or 22, Ex nA and Ex tc approval permit installation without the need for Zener barriers or galvanic isolators significantly reduces installation cost. General purpose models are also available. For further information including datasheets, certificates and application guides please visit: www.beka.co.uk/compact

Bifold: the one stop shop for valves Valve manufacturer Bifold Group has launched its latest initiative: the Bifold Store. The Bifold Store offers a selection of products online, therefore creating a much more accessible, quick and easy service. With over 500 products available, featuring a comprehensive selection from across the entire Bifold range, the Bifold Store includes a filter service such as ‘type of valve’ and ‘price range’ to make it easier to distinguish and locate products and navigate around the store. The Bifold Store also includes product images and descriptions along with their operational schematics in order to make product identification much quicker.

Once a customer becomes a regular buyer, they will acquire an account and purchase history which will be found under ‘My Account’. In this, customers can view their previous orders, current orders and can reorder the same items again without going through the basket process. For more information on the Bifold Store initiative, please visit: store.bifold.co.uk

Garic expands with new depot Garic, one of the UK’s biggest suppliers of welfare facilities and plant to the construction, industrial, utilities and infrastructure sectors, is creating 16 jobs at its new 160,000 sq ft facility in Dudley, which opened in February.

Having a fleet of over 10,000 products directly available, backed up by the fantastic team we’ve put together, will help us provide an even more responsive service. Neil Richardson, Garic Lancashire-based Garic set up the new depot in response to rising demand. Over the past 12 months it has invested £14 million in its business and seen revenue increase by 31% across its product range, with particular interest in its industry leading solar-powered site equipment such as welfare units, toilets and showers. Garic’s recently appointed Managing Director, Colin Hotchkiss, said: “The success of our business is dependent upon dispatching consistently top quality equipment quickly, transporting it efficiently and maintaining it effectively while it’s on site, where ever it is. This is the logical next step to support our incredibly loyal customer base.” Visit: www.garic.co.uk www.the-eic.com

MEMBER NEWS

Wolf unveils new leadlamp Wolf Safety, a manufacturer of hazardous area portable and temporary lighting, has launched its new handheld ATEX LED inspection leadlamp SP-600. ATEX and IECEx certified, cable-powered, versatile and lightweight with impressive LED light output, it is ideal for inspection and work activities in potentially explosive gas and dust atmospheres.

Providing optimum illumination for hazardous area workers, the SP-600’s high power LED ‘fitted for life’ light source produces a forward facing high efficiency output of up to 470 lumens by emitting an exceptional, even, ultra-wide angle light, minimising shadows and enhancing visibility. The new ATEX LED inspection leadlamp is extremely durable. It has been fully impact tested beyond certification requirement with impact resistant anti-static enclosure, IP67 rating, and scratch and chemical resistant polycarbonate hardcoat lens.

Shares acquired in Micropack Global safety company Consilium has become the majority shareholder of Micropack (Engineering) Ltd, a global provider of visual flame detection systems. Micropack management will remain as minority shareholders of the company. Consilium, which develops and markets fire and gas alarm and detection, as well as active firefighting systems, has 55 offices in 25 countries. Ove Hansson, CEO, Consilium, commented on the acquisition: “Micropack’s series of visual flame detectors, fire and gas detection engineering and consultancy services and software complement our growing safety business where our primary goal is to be the customer’s first choice when safety matters and to offer superior customer value.” Raymond Hynds, Managing Director, Micropack, said: “The alliance with Consilium will enable Micropack to reinforce our position in the global oil and gas market, as a leading supplier of fire and gas detection consultancy services, software and technically advanced visual flame detection systems.” For more information please visit: www.micropack.co.uk

Parsons Peebles Group acquisition Parsons Peebles Group (PPG), a Clyde Blowers Capital company, has confirmed the acquisition of the Reading headquartered, Taylor & Goodman Ltd. The acquisition provides PPG with enhanced electromechanical service capabilities and a network of UK locations now numbering 13. Taylor & Goodman, which currently has three UK facilities, is a fast growing provider of electromechanical services, predominantly to the water sector. Frank Barrett, CEO of PPG, commented: “I’m excited to welcome Taylor & Goodman into our group. We’re particularly happy to offer a list of site and project services through the 60-plus skilled members of T&G that have just joined us. “This acquisition demonstrates our intent to become the number one UK supplier of electromechanical services. We now have an extensive LV to HV electrical new build and service offering which is complemented by capability on pumps, gearboxes, compressors and other mechanical equipment. PPG now offers even broader electromechanical service agility backed up by OEM credibility and over 340 UK employees.” Visit: www.parsons-peebles.com

All ATEX LED inspection leadlamps are CE marked to the ATEX Directive and IECEx certified safe for use in Zone 1 potentially explosive gas atmospheres, and Zone 21 potentially explosive dust atmospheres, with a maximum surface temperature of 95°C, as well as Group I mining applications. For more information please visit: www.wolf-safety.co.uk @TheEICEnergy

Events Diary

UK, Overseas & Training June 2016 2 Corporate Entertainment Northern Region Golf Day 2016 2 Business Presentation Opportunities with MMHE 2 Industry Overview Fundamentals of Upstream 3 Corporate Entertainment North & Central America Golf Tournament 8 Industry Overview Fundamentals of Oil & Gas 9 Business Presentation EICDataStream Overview 14 Business Presentation Business Presentation with IO Oil & Gas 14 Member Update Southern Region 14 Industry Overview Fundamentals of FPSOs 15 Management Course Bidding to Win 16 HSE Training Pressure Equipment Directive 16 HSE Training PED for Export to Europe 16 Sector Showcase Nuclear 17 Corporate Entertainment Scottish Golf Day 21 Sector Showcase UKCS 30 Export Showcase Russia 30 Business Presentation Opportunities with CCC Group

Rockliffe Hall Hotel, Darlington EIC Kuala Lumpur EIC Rio de Janeiro Pearland Golf Club, Texas EIC London EIC Rio de Janeiro IO Oil & Gas Consulting, London EIC London EIC Rio de Janeiro Rothera Group, EIC London Lloyd’s Register, EIC London EIC Houston DW Stadium, Wigan Newmachar Golf Club, Aberdeenshire Aker Solutions, Aberdeen EIC London EIC Houston

July 2016 5 Industry Overview 6 Industry Overview 7 Member Update 14 Industry Overview 26 Regional Showcase 27 Management Course 30 Industry Overview

Fundamentals of Subsea Fundamentals of FPSOs Aberdeen Members Morning Fundamentals of Nuclear Opportunities in Mexico Understanding Terms and Conditions Fundamentals of Subsea

EIC London EIC London EIC Aberdeen National Skills Academy, EIC London EIC Houston Four Points by Sheraton, Dubai EIC Rio de Janeiro

Understanding Project Management Fundamentals of Oil & Gas Fundamentals of Oil & Gas EICDataStream Overview The ATEX Directives

EIC London EIC London Four Points by Sheraton, Dubai EIC Houston SGS Baseefa, Buxton

August 2016 9 Management Course 16 Industry Overview 16 Industry Overview 18 Business Presentation 25 HSE Training September 2016

10 Industry Overview Fundamentals of FPSOs 13 Technical Workshop Introduction to Electric Motors 22 Industry Overview Fundamentals of Natural Gas 30 Corporate Entertainment 7th Annual Sporting Clays Tournament

EIC Rio de Janeiro ATB Group, Norwich EIC Rio de Janeiro American Shooting Centers, Houston

October 2016 4 Technical Workshop Introduction to Control Valves Severn Glocon, Brighouse 13 HSE Training The Pressure Equipment Directive Lloyd’s Register, EIC London For further information on UK and overseas events and training, please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

June 2016

Events Diary

Exhibitions & Delegations 2016

Status

28-30 June

World Nuclear Exhibition (WNE), Paris Fully Booked

11-15 July

Overseas Delegation to Argentina

Fully Booked

Offshore Northern Seas (ONS), Norway

Fully Booked

26-30 September

Overseas Delegation to Mexico

27-30 September

WindEnergy, Hamburg

Fully Booked

Iran International Petroleum Congress (IIPC)

3-7 October

Overseas Delegation to Myanmar

19-21 October

Offshore Korea, Busan

Booking Now

Overseas Delegation to Mozambique and Africa Oil Week Register your Interest

29 August- 1 September

30 September- 3 October

31 October- 4 November 7-10 November

29 November-

ADIPEC, Abu Dhabi

Booking Now

Offshore South East Asia (OSEA), Singapore

Booking Now

2 December

For further information on exhibitions and delegations, please contact: events@the-eic.com

National Events 2016

13 October

22-23 November

@EICOverseas

Status

EIC National Dinner London

Booking Now

EIC Connect Oil & Gas Manchester

SPE Offshore Europe 2017 Aberdeen

Booking Now

EIC Connect Energy Manchester

2017

5-8 September

21-22 November

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

EXHIBITION / CONFERENCE / EVENT

19 (Wed) - 21 (Fri) Oct. BEXCO, BUSAN, KOREA

Join the UK National Pavilion at Offshore Korea 2016 contact www.the-eic.com

@TheEICEnergy

raelene.rifkind@the-eic.com

June 2016

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Offshore Korea 2016 19-21 October 2016 Busan, South Korea #EICOK16 The EIC will be organising and managing the UK National Pavilion at Offshore Korea from 19-21 October 2016.

Egypt Petroleum Show (EGYPS) 2017 14-16 February 2017 Cairo, Egypt #EICEGYPS17 The EIC in partnership with UKTI is proud to be organising and managing the UK National Pavilion at Egypt Petroleum Show (EGYPS) 2017.

Taking place at BEXCO, Busan, Offshore Korea expects to exceed the 2014 numbers which saw 21,396 visitors from 51 countries with 2,000+ major Korean shipyard visitors. Offshore Korea 2016 is specially sponsored by the worldâ&#x20AC;&#x2122;s top three Korean shipyards, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries. Please contact: raelene.rifkind@the-eic.com

Egypt is the largest non OPEC producer of crude oil and the second largest producer of natural gas in Africa and serves as a major global transportation hub for crude from the Arab Gulf to Europe, Asia and the US. Egypt is the largest oil and natural gas consumer in Africa. In recent years there have been more than 86 discoveries with much more anticipated in the future. Please register your interest: mark.gamble@the-eic.com

Offshore South East Asia (OSEA) 2016 29 November-2 December 2016 Singapore #EICOSEA16 The EIC will once again be managing the UK National Pavilion at Offshore South East Asia (OSEA) from 29 November-2 December 2016.

Offshore Mediterranean Conference (OMC) 2017 29-31 March 2017 Ravenna, Italy #EICOMC17 The EIC is organising and managing the UK National Pavilion at OMC 2017.

OSEA 2014, Asiaâ&#x20AC;&#x2122;s largest oil and gas exhibition and its biggest edition ever, ended on a high note with positive feedback from both exhibitors and visitors. The four day event, which spanned across three levels, attracted more than 28,600 oil and gas trade professionals. Contact: mark.gamble@the-eic.com

OMC started as a regional event and has now achieved international status. During 20 years of activity, OMC has supported the evolution of the oil and gas business, especially of the Italian energy industry, by offering oil and gas professionals the ideal platform for discussion on research and development, technology achievements, and future challenges in the energy sector. To be part of the exhibition please contact: raelene.rifkind@the-eic.com

www.the-eic.com

@TheEICEnergy

June 2016

EIC UK Events

UK Events

Regional Showcase: UKCS Driving Innovation and Operational Efficiency Tuesday 21 June 2016 Aker Solutions, Aberdeen International Business Park This event will see operator and contractor panellists set the scene on how the industry has been adapting to the current market climate across the UKCS, discuss the prosperity of the basin in the long-term and what they see as priority change in the future.

Forthcoming Events

Member Update: Southern Region Tuesday 14 June 2016 EIC Conference Suite, London As well as receiving an update on the oil, gas, power, nuclear and renewables sectors from the EIC’s Business Intelligence team, the Member Update will provide an overview of EIC services, and an EICDataStream clinic. The session will also provide an opportunity to converse with fellow members on local market challenges, share solutions and consider collaboration prospects during an open floor discussion. To book your place please contact: jennifer.hole@the-eic.com

EIC member case studies will be presented on the day, detailing their innovations and the lessons they learned while implementing them, providing long-term learning and experience for others. There will be also be opportunity for you to meet with other EIC member companies who can offer innovative solutions during one-2-one sessions. To book your place contact: julia.harte@the-eic.com

Sector Showcase: Nuclear Thursday 16 June 2016 DW Stadium, Wigan This showcase will provide an update on activity across the nuclear industry from decommissioning to the extension of life of existing plant and also new build developments. The event will feature a panel of speakers including the Nuclear Decommissioning Authority, Sellafield, Jacobs, Costain and the Nuclear AMRC. The material covered will highlight their plans, show estimated time scales and likely spend and provide insight for the supply chain about the potential opportunities and how they should engage. To book your place please contact: jennifer.hole@the-eic.com

Export Showcase: Russia Thursday 30 June 2016 EIC Conference Suite, London Russia has one of the largest petroleum industries in the world, producing in excess of 10 million bbl/d. The country has the largest gas reserves globally and is the largest exporter of natural gas. The EIC is currently tracking over 200 active and future upstream, midstream and downstream projects via EICDataStream with a combined CAPEX of US$1 trillion. Despite sanctions in place covering some elements of shale and Arctic exploration and production, and some deep water projects, as well as financial sanctions impacting long term loans with European banks, the Russian energy market still offers western suppliers plenty of business opportunities. The countries geographical location and the exporting capabilities to bordering countries means that pipeline projects in particular provide a wealth of prospects for UK companies.

Corporate Entertainment: Scottish Golf Day Friday 17 June 2016 Newmachar Golf Club, Aberdeenshire The Hawkshill Championship course was designed by Dave Thomas and opened for play in 1990. It measures 6,730 yards and is set among mature silver birch and Scots pine trees. Water hazards, combined with strategic bunkering of fairways and greens, make this one of the toughest golf courses in the area. The afternoon will include a light lunch, 18 holes, with teams playing the Stableford competition, and goody bag. Finishing with a delicious two-course presentation dinner with the winning team being awarded the EIC Quaich. To book contact: julia.harte@the-eic.com

This EIC Export Showcase aims to dispel some of the myths related to doing business in Russia or with Russian clients and will highlight where the opportunities are for UK suppliers on Russian oil and gas projects. Join us for this event if you are considering entering the market or are just keen to find out more about the opportunities and realities of exporting to Russia. To book your place please contact: jennifer.hole@the-eic.com

Take a look at our sponsorship packages There are three levels of sponsorship available for the Scottish Golf Day (Gold/Silver/Bronze). By taking sponsorship at the event your company will enhance its brand and your products and services will receive great exposure to local contractors and operators. All sponsorship packages offer high level brand exposure and an array of benefits, some of which can be tailored specifically for your company. If you would like to raise your company profile and sponsor a prize, please contact: julia.harte@the-eic.com

Member Update: Aberdeen Members Morning Thursday 7 July 2016 EIC Aberdeen Join the EIC Scottish office for a summer networking session. This will be an informal Member Update to provide a roundup of the EIC’s activities for 2016 and highlight our plans for 2017. Seize the opportunity to converse with fellow members on local market challenges, share solutions and consider collaboration prospects during the open floor discussion. Guest speakers to be announced. Contact: julia.harte@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

June 2016

EIC National Events

Supply Chain Exhibition & Conference 22-23 November • Manchester Central, UK

Returning to Manchester Central on 22 and 23 November 2016, EIC Oil &event Gas aims JoinConnect our flagship to: to highlight potentially lucrative global opportunities and identify UK capability on major oil and gas projects around the world. > Find out how major global operators and contractors > Discover new technologies and emerging sectors in see future market conditions For 2016, the EIC’s flagship event will look to directly contribute to the export of UK throughon a capital > Understand the goods andcompanies services required series informative presentations by the major oil and oilofand gas projects gas operating companies and their contractors. >

Learn how to pre-qualify as a vendor and the next steps

the industry The event will be a great platform for UK supply chain companies to look further at global > Recognise where theafield key projects areprojects, located and consider theirroutes transferable skills and align their business easiest to market to meet the needs of their current and future customers.

Sponsor

Exhibit

Highly visible sponsorship

Stands are sold in 9 sq m

Attend Delegate places include the

EIC Connect Oil & Gas 2014 was a complete success, that Each of the companies represented below spoke at the opportunities include: following benefits: increments and include: attracting over 900 delegates to Manchester Central to event, resulting in 95% of the event attendees stating > Access to all areas of the event > Two full delegate places, and all > Two places to an exclusive listen to a prestigious group of speakers. that their objectives for attending EIC Connect were met.

networking dinner

of the benefits listed

> Two places to an exclusive networking dinner

> Two places to an exclusive networking event

> Shell scheme, furniture and electrical package

> Web and print promotional opportunities

> Opportunity to book one-2-one appointments with buyers > Multiple networking opportunities with industry peers > Copies of the presentations after the event > Working lunch and refreshments

> Opportunity to book three x one-2-one appointments

Sponsorship packages Delegate rate £349 EIC Connect Oil & Gas is therefore the place to be for any Cost: available from just £1495 £50 reduction for EIC members 9 sq mwishing stand from just £2950 company to present a new or innovative product • Stands open on the front only are £2,950 +VAT and/or showcase a successful service or technology. • Corner stands open on two sides are £3,250 +VAT • Additional delegate places, including a place for the Space within the exhibition is limited, and as a result networking dinner, can be purchased for £299 +VAT highly sought after as our exhibitors benefit from every aspect of the show. Contact: Charmaine Thompson, National Events Organiser For more information please visit: Tel +44 (0)1642 379 975 www.the-eic.com/EICConnect Email charmaine.thompson@the-eic.com

Connecting global operators and contractors to UK companies since 2002

www.the-eic.com

@TheEICEnergy

For more information: www.the-eic.com/eicconnect

Op tO al en cOmp l UJune K anies 2016

EIC Training

EIC Training Considering expansion into the nuclear power sector? The UK nuclear industry is currently preparing for the largest investment in nuclear new build in Europe. EDF has recently announced that a financial investment decision for Hinkley Point C is likely to be made in September 2016, while NuGen and Horizon have also made similar commitments for major UK nuclear build investment decisions by 2018. In total there are plans for £100 billion of investment. This is a potentially massive opportunity for SMEs to earn a respected worldwide reputation in the nuclear supply chain and to be part of the lucrative nuclear market.

Peter Doyle has spent the last 36 years working in the nuclear industry in roles and areas that include senior engineering, commissioning, operations, training and leadership development for Westinghouse Plc. He has worked in locations across Europe and America and now runs a training and consultancy service specialising in nuclear manufacturing. This course offers the chance to interact directly with someone who has worked in nuclear manufacturing for a considerable time, combined with the added skills and knowledge base of the NSAN.

During the second half of the 20th century the UK gained an enviable reputation for nuclear capability, however, it has now been more than twenty years since we constructed a commercial nuclear power plant. As a result there has been a decline in supply chain confidence, skills and expertise, which could greatly inhibit plans for the rapid growth of the UK’s nuclear power sector, anticipated to take place over the next few years. To help bridge the current skills gap facing the sector, the EIC has collaborated with the National Skills Academy for Nuclear (NSAN) to provide a comprehensive introduction to nuclear power generation: The Fundamentals of Nuclear This one day course is designed to introduce delegates to the basics of nuclear science and understand how that science is applied to the technology of a commercial nuclear power plant. For those considering diversifying into the nuclear sector, it will clarify the current technological expectations of the nuclear sector and define the necessary behaviours required to become an effective supplier into the industry.

The NSAN is an employer led membership organisation established to ensure that the UK nuclear industry and its supply chain has the skilled, competent and safe workforce it needs to deal with the current and future UK nuclear programme. For further details visit: www.nsan.co.uk You may also be interested in:

By the end of the course delegates will: • Appreciate the basic science behind nuclear, including small modular reactors. • Understand what is meant by nuclear fuel cycle and nuclear waste. • Recognise the link between safety and manufacturing quality in the nuclear sector. • Understand the basic human performance approach to safety. • Have increased awareness of the nuclear market both in the UK and worldwide.

Industry Overviews

Fundamentals of Subsea Tuesday 5 July 2016 EIC London Fundamentals of FPSOs Wednesday 6 July 2016 EIC London Fundamentals of Oil and Gas Tuesday 16 August 2016 EIC London

The next course will run on Thursday 14 July 2016, delivered by NSAN approved trainer Peter Doyle.

Three easy ways to book Online www.the-eic.com Email training@the-eic.com Tel +44 (0)20 7091 8600 www.the-eic.com

@TheEICEnergy

June 2016

EIC Middle East News

Middle East News Regional Comment

Office News

Oman continues to delay project awards Petroleum Development Oman (PDO) is yet to award contracts on a brownfield project at the Qarn Alam field almost two years since the tender, estimated to be worth about US$450 million, was first issued. The engineering, procurement and construction tender for the Qarn Alam offplot project, which covered mechanical, electrical and earth works, was first floated back in April 2014 with bids submitted well before the end of that year. Bidders included prominent Omani groups like Al-Ghalbi International, Al-Hassan Group, Arabian Industries Projects, Galfar Engineering & Contracting, Marmul Contracting & Trading Company and the Oman Construction Company, but it is still unclear if and when PDO will award any contract.

June 2016 in the Middle East is largely taken up with the Islamic month of Ramadan, the month of fasting and reflection when members of the Islamic community undertake not to eat or drink during daylight hours. To assist with this process, local governments decree that daylight working hours are reduced by two hours, which naturally has an impact on business activities. It is expected that non-fasting members of society show respect by not being seen to be eating or drinking in public. To do so would invite some tough penalties including imprisonment for the worst offenders. It is now three months since our Iran Showcase and since then we have seen the Iran Oil & Gas Show take place plus our own Iran trade mission, both receiving significant interest from the EIC membership. However, despite the wide-spread perception that Iran is the new land of low hanging fruit, the market still has to adjust to a new sanctions free environment. Perhaps the largest hurdle that still remains is the difficulty in securing payment. Feedback from the show was generally, ‘if you can bring your own finance with you, then we can do business.’ For any small to medium sized enterprise, this is just not possible and until the big four UK high street banks show some signs of flexibility when it comes to doing business with Iran, then we will continue to see this as a major barrier to trade. After all, one can carry out endless amounts of due diligence, employ the best consultants to identify and choose suitable partners, but until one can be sure of getting paid on time, then the whole thing can fall apart. However, this issue is being worked on and who knows, maybe by the time you read this article the whole thing might be a bit clearer, or at least we hope so.

Another tender covering similar work at the Yibal, Fahud and Lekhwair fields was also issued around the same time as the Qarn Alam scheme. Covering an almost identical scope of work, this tender attracted bids from a similar group of companies, but this too, appears to remain outstanding. However, there has been speculation recently that Galfar had been awarded an extension of their existing contract where they were already mobilised on works at the Yibal, Fahud and Lekhwair fields but this is yet to be confirmed. Petro Rabigh cancels two projects Saudi Arabia’s Rabigh Refining and Petrochemical Company (Petro Rabigh) has cancelled two of the three packages that it had announced as part of its planned Clean Fuels project. When the project was first announced last year, there were three engineering, procurement and construction packages covering the construction of three new plants:

Another interesting topic to note is the announcement that Saudi Arabia intends to have little or no reliance on oil related income by 2020. This is not the first time that such a bold statement has been made but having seen the influence of the author of the statement/policy plan, HRH Mohammed Bin Salman, Deputy Crown Prince, on other related state matters, this might be a very real possibility, with the whole scheme clearly reliant on some form and/or degree of public ownership of Saudi Aramco. One step already taken is the changing of the guard in the oil ministry, 80 year old veteran, Ali Al-Naimi, being replaced by the former Aramco CEO, Khaled Al-Falih.

• A naphtha processing unit with the capacity to produce 17,000 barrels a day of clean fuels. • A polyols production unit with a capacity of 220,000 tonnes a year (t/y) of polyether polyols. • A sulphur recovery unit with a capacity of 106,000 t/y of sulphur. The last two packages detailed above have been cancelled due to the current economic climate but they could be reinstated in the future should they become viable once more. For the naptha plant, Italy-based Tecnimont appears to have submitted the lowest bid for this package. Other bidders were Taiwan-based CTCI, South Korea’s Daelim, India-based Larsen & Toubro plus a Spanish joint venture made up of Intecsa Industrial and Tecnicas Reunidas.

We are pleased to welcome Rotech Subsea back to the Dubai office. They previously occupied one of our serviced offices before vacating some three years ago but have just recently taken advantage of our virtual office facility which is a very cost effective way of having a presence here. 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

June 2016

EIC Asia Pacific News

Asia Pacific News

We also met with representatives from regional industry players including: Mr SH Kim, Managing Director, Hyundai Corporation; Mr Rashid Sidek, Executive Director, Toyo Engineering; Mr Shahrul Faiz, Director of Projects, TL Offshore; Mr Hazry Zainal, Managing Director, Dialog Group; Ms Priscilla Arunandaran, Procurement Manager, Tecnicas Reunidas; Mr Sharatkumar, Head of Procurement, SBM Malaysia; Mr Amli Amin, Head of Procurement, Carimin Offshore and Mr Azhan Afandi, PETRONAS Group Procurement.

Office News

On 23 May we took a delegation of five member companies to visit Thailand and Malaysia. In Bangkok, the delegation had the opportunity to meet with the Thai NOC, PTTEP as well as local and international EPC companies such as Amata, Glow Group, Arcadia, Italthai Engineering and Mott MacDonald Thailand. The delegation continued its programme in Kuala Lumpur with meetings with Petronas, MPRC, MOGSC, BMCC, TL Offshore, SBM Offshore, Fluor International, Hyundai Corporation, Armada TPCE and EPOMS.

All of these representatives are leading figures in the local supply chain or their company’s procurement divisions, and it goes without saying that we are more than happy to make introductions between these, as well as all our other industry contacts, and EIC members. Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com

The overseas delegation was a great success, allowing our delegates to make high level contacts at the various companies, as well as learn about their procurement processes and specific project requirements.

Forthcoming Event

We attended the Asia Business Forum in Hong Kong on 18 to 19 May where 70 global nuclear companies participated. The event was a great chance for us to learn about current trends and issues in the nuclear industry.

Business Presentation Opportunities with MMHE Thursday 2 June 2016 EIC Kuala Lumpur

On 26 to 27 May we attended the Indonesian Petroleum Association Exhibition & Conference in Jakarta. It was great to catch up with so many of our existing contacts at the event as well as make a lot more over the two days.

Regional Comment

Iran and Indonesia sign energy agreement Iran and Indonesia have signed an agreement on cooperation in the areas of oil, gas and petrochemicals. The agreement includes plans to construct small-sized refineries of 20,000 to 300,000 bpd capacity in Indonesia. It is understood that the joint venture project is worth about US$3 billion with Iran holding 30% of the shares. MoUs signed between South Korea and Iran South Korea and Iran have signed several memorandums of understanding for co-operation on US$46 billion worth of business deals, notably in the field of energy exploration. Part of the agreement could yield total energy rebuilding investments of US$31.6 billion. South Korea is also seeking to provide US$25 billion to support the South Korean contracts related to the bilateral deals.

Throughout April and May we continued our efforts to meet with our member companies. We had the pleasure of speaking to representatives from National Oilwell Varco, DNV-GL, Fircroft, EM&I, Doosan Babcock, AEGPS, Bureau Veritas, Genesis, Paladon Systems, Triplefast, Rollstudt, SNC-Lavalin, LOC and Hill International.

Australian Greens push for new statutory authority The Australian Green political party is pushing for the development of a new government statutory authority that will oversee the planned closure of coal-fired power stations, investments in clean renewable energy and rewriting of energy market laws. The Greens have introduced the Renew Australia Bill 2016 to drive the transition to a new clean energy system.

We are keen to meet as many members as possible. This way we can understand what your business objectives are and how we can help you to achieve them. At the EIC everything we do is designed to help your business thrive in a competitive market, be it by introducing you to key local contacts and potential local partners, offering advice on best industry and local supply chain practice or finding out how we can support you at events. So please do get in touch to organise a visit to our office, we’ll be happy to see you.

Saudi Aramco eyes Indian oil refinery stakes Saudi Aramco is considering proposals to buy stakes in Indian petrochemical projects. It is understood that Saudi Aramco is considering investing in a 1.2 million bpd refinery on India’s west coast, the expansion of the Bina refinery and a petrochemical plant at Dahej, west India.

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

@TheEICEnergy

June 2016

EIC North and Central America News

North and Central America News HSE Training

Office News

Pressure Equipment Directive for Export to Europe Thursday 16 June 2016 EIC Houston This is a one-day seminar focused on the requirements for pressure equipment to be placed on the European market. The Pressure Equipment Directive has undergone a revision with the new regulation 2014/68/ EU, effective from 19 July 2016. This training course will provide attendees with a better understanding of the changes from the existing regulations and what is needed to conform to the European requirements.

Last month the EIC hosted the UK Pavilion at the Offshore Technology Conference (OTC) 2016. With over 68,000 attendees from 120 countries and more than 2,600 companies exhibiting, OTC is one of the largest offshore energy conferences in the world. This year 52 EIC member companies exhibited in the UK Pavilion and joined the EIC in promoting UK excellence across the supply chain.

Regional Showcase Opportunities in Mexico Tuesday 26 July 2016 EIC Houston Mexico’s energy reform has been a hot topic of discussion and continues to effect all aspects of the energy market. As the reform progresses, the market is continually changing. This Regional Showcase will offer current and future supply chain and project opportunities with operators and contractors, and provide guidance on how to do business across the energy space in Mexico.

The EIC team at OTC 2016

During OTC, the EIC hosted two successful receptions, one of which was to announce the Houston office move. Claire Miller and Karen Bell, British Consul General to Houston, provided attendees with key messages on the benefits of doing business in Houston, the global energy capital and centre for decision making in the energy industry.

Corporate Entertainment EIC 7th Annual Sporting Clays Tournament & BBQ Friday 30 September 2016 American Shooting Centers, Houston We are pleased to host our 7th annual sporting clays tournament which will include a 10 team format shooting 75 targets per person and ending with cold drinks and Texas barbecue. Awards to be given for first, second and third places. Sponsorship opportunities are available.

We are delighted to announce that EIC global member PJ Valves, manufacturer and supplier of valves to energy projects globally, is expanding its presence in Houston. Although we are sorry to see PJ Valves depart as an EIC Houston LaunchPad tenant, we wish PJ Valves well in realising its expansion goals.

Regional Comment

Baker Hughes, Halliburton merger called off The potential merger has been called off amid opposition from federal regulators, who stated that the merger would hurt competition. The government claimed the US$35 billion merger would lead to higher prices by unlawfully eliminating significant competition in markets for almost two dozen services and products crucial to finding and producing oil and natural gas in the US. As part of the agreement, Halliburton will pay Baker Hughes a termination fee of US$3.5 billion.

Visiting Houston and need a desk or meeting room? Book your hot desk and/or conference facilities at the EIC North and Central America office in Houston, by contacting our Office & Events Associate Manager: natalia.bueno@the-eic.com Please join us in congratulating Amanda Duhon on the birth of her baby boy. Amanda is now on maternity leave and will be back in mid-August.

Forthcoming Events

Corporate Entertainment EIC North and Central America Golf Tournament Friday 3 June 2016 Pearland Golf Club, Texas The EIC North and Central America office invites you to our golf tournament. Teams of four will play 18 holes. Breakfast and lunch will be served, and the event will conclude with an award ceremony. Sponsorship opportunities available.

Mexico energy sector receives bank credit Loans awarded to Mexican energy companies increased 30% year-on-year in February. The banks that provide the most credit to Mexico’s energy sector include BBVA Bancomer, Inbursa, Santander, Banorte and HSBC. Despite low oil prices, other energy segments are showing potential, such as infrastructure relating to renewable energy, electricity and natural gas.

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

@TheEICEnergy

June 2016

EIC North and Central America News

The EIC North and Central America office is moving...

Situated in the heart of Houston’s Energy Corridor, the EIC is excited to announce that we will move our offices up one floor in its current building, to suite 925 this month. The EIC is committed to providing our members with a professional, fit for purpose, quality product via our LaunchPad services.

The new Houston facilities will provide up-to-date LaunchPad offices, IT equipment and connections and a multi-functional state-of-the-art conference facility. We look forward to hosting our members and industry at the new conference facilities. Contact: natalia.bueno@the-eic.com

EIC LaunchPad is a business incubator service that supports member companies to build bridges into new markets. Through its network of UK and overseas offices, strategically located in key energy markets across the world, the EIC gives members a platform to expand their global business base. Offering serviced offices, virtual offices and hotdesks, along with practical assistance and expert local knowledge, EIC LaunchPad helps members to stay one step ahead of the competition in a demanding marketplace. Serviced office facilities: • Low risk and cost-effective market entry • Professionally staffed reception and waiting area • Internet and telephone access • Postal and courier service • Copying and printing • Meeting facilities • Advice on legal, banking, insurance and payroll issues • Access to EIC services at a local level Virtual office facilities: • Exclusive regional identity with a local address • Dedicated phone answered in your company’s name • Mail forwarding service Hotdesk facilities: • Professional office space • High speed internet connection • Printing and scanning • Access to EIC services at a local level Conference facilities: • State of the art audiovisual equipment • Seating for up to 35 people • Two separate meeting rooms and a modern reception/breakout area • Available exclusively to EIC global members and key partners in the region EIC North and Central America Suite 925, 11490 Westheimer, Houston, Texas 77077 www.the-eic.com

@TheEICEnergy

June 2016

EIC South America News

South America News

Forthcoming Events Industry Overviews

Office News

Fundamentals of Upstream Thursday 2 June 2016 EIC Rio de Janeiro

Although OTC this year wasn’t as busy as it has been in recent years, it is still the most important event for companies expanding into the Americas markets. Operators and contractors active in Latin America had many opportunities to meet throughout the four days. A breakfast meeting whose theme was Opportunities in Guyana provided insightful information comparing different markets in Latin America.

Fundamentals of FPSOs Tuesday 14 June 2016 EIC Rio de Janeiro Fundamentals of Subsea Saturday 30 July 2016 EIC Rio de Janeiro

Regional Comment

Brazilian President Dilma Rousseff suspended The Brazilian Senate has suspended President Dilma Rousseff for 180 days as part of an ongoing impeachment process. A 20-hour session in Senate held on 11-12 May, which followed a similar session in Brazil’s lower house on 17 April, culminated in a majority vote to remove Rousseff from office during her impeachment trial, which could take up to six months. Michel Temer, the elected vice-president, has been nominated Brazil’s acting president during this process and he could be confirmed president should the trial condemn Rousseff. The impeachment process is motivated by indications that Rousseff’s administration took out approximately US$20 billion in loans with state-owned banks to mask a growing budget deficit – a federal crime the suspended president denies.

OTC offered a great opportunity to engage with UKTI teams across the region such as Canada, Trinidad, Venezuela, Mexico and Brazil. The photo shows myself (left) with former EIC CEO Claire Miller (right) with (from left to right) Stephen Cartwright, UKTI Mexico, Enrique Cornejo, UKTI Mexico and Renato Cordeiro, UKTI Brazil.

The impeachment process comes at a difficult time for Brazil. The country is experiencing its worst economic crisis since the 1930s, with negative growth, high inflation and growing unemployment rates. Moreover, the Lava-Jato federal police probe has uncovered evidence of wide-ranging corruption at the – now suspended – government, Congress, the state-run oil company Petrobras and a number of EPC contractors in Brazil. This is a challenging scenario for acting president Michel Temer, who has pledged to make economic growth a top priority.

On 19 April 2016 we held another round of our Local Content Workshop. The purpose of the workshop is to show how to use local content as a strategic business tool. One of the highlights were exercises used to explain this policy and demonstrate, in practice, the challenges that companies face on a daily basis in the Brazilian market. Speakers came from EIC member company DNV GL, experts in this area. We would like to thank and congratulate the DNV GL staff for the great presentation: Mr Márcio Monteiro, Head of Section, Verification & Inspection Services, Mr Sergio Darius and Mr Henrique Massari. They explained the Brazilian local content policy, its applications and exceptions and how to calculate percentage not only for goods, but also for materials, services and systems.

With regard to the energy sector, there is an expectation that Temer’s interim government will foster significant changes. Challenges are plentiful: Petrobras’ financial crisis, the controversial regulatory framework for the exploration of pre-salt fields and the indebtedness of Eletrobras, the state-run power holding, are some of the most significant. José Serra, who has been appointed by Temer as the new foreign affairs minister, is the proponent of a law which would eliminate the requirement that Petrobras must be the only operator in pre-salt fields offshore Brazil. Local analysts also predict management changes at the state-run oil company. The local energy supply chain, which has experienced a number of setbacks recently, is watching events closely.

The EIC is hosting trade delegations to Argentina, Colombia and Mexico this year. Please visit our website for more details: www.the-eic.com 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

June 2016

Organised By:

Cape Town, 31st October - 4th November 2016 Total E&P, Tullow Oil, ExxonMobil, BP plc, Ministry of Energy and Mineral Development - Uganda, Oando Energy Resources, Petroguin-EP, Petrosen, Pluspetrol, Eni Spa, Maersk Olie OG Gas A/S, FirstEnergy Capital LLP, Ministry of Petroleum, Energy & Mines - Mauritania, Agence de Gestion et de Coopération entre la Guinée-Bissau et le Sénégal, ONGC Videsh, Ministry of Mines & Petroleum - Ethiopia, PetroSA, Impact Oil & Gas, Bureau of Energy Resources / U.S. Department of State, Galp Energia, Richmond Energy Partners, SacOil Holdings, Lekoil, Shoreline Natural Resources, Moni Pulo Ltd, Rhino Resources, Petroleum Agency SA, JOGMEC, Velocys, Kalahari GeoEnergy Ltd, United Hydrocarbon International, FAR Limited, Shell International Exploration and Production, NVentures, Kosmos Energy, Mirabaud Securities, Stellar Energy Advisors, Moyes & Co Inc., Orient Energy Review, Ghana Oil & Gas Service Providers Association, Gulf Reservoir Modeling Technology, University of the Witwatersrand, International Trade & Development - UK, Danvic Petroleum International Corp., Sonangol, International Energy Solutions, Preng & Associates, Sound Oil, Monetizing Gas Africa Inc., Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Petroleum Training and Education Fund (PetroFund), Allen & Overy LLP, Engen Oil, Africa Fortesa Corp, Geological Bureau (Union des Comoros), T5 Oil & Gas, Ministry of Energy and Mines - Eritrea, Ambit Energy Corporation, Woodside Energy, OMV, Oil & Energy Services Ltd, South African National Energy Association, Tower Resources, CGG, Makerere University, ACAS Law, Ophir Energy plc, Manokore Attorneys, Fugro N.V., CMS Cameron Mckenna, African Institute of Petroleum, Svenska Petroleum Exploration, Africa Oil+Gas Report, Africa Oil Corp, Mitsui & Co, Ministry of Mines & Energy - Namibia, Petrolin Group, Instituto Nacional de Petróleo - Moçambique, ONHYM - Morocco, Upstream Oil & Gas Newspaper, Ministry of Energy and Petroleum - Kenya, Discover Exploration, RPS Energy, PGS, Ministry of Hydrocarobons - Republic of the Congo, Presidency of Mines and Petroleum - Madagascar, NAMCOR, Seplat, Aker Solutions, CNBC-TV Africa, ITE Group plc, Global Pacific & Partners

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Sponsors 2016

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