Inside Energy August 2020 by Energy Industries Council

EIC Inside Monthly news for EIC members August 2020

Sector analysis

One-to-one

Renewables – Is India ahead of the game?

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EIC interview with UnitBirwelco CEO ahead of vEEC

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2020 Virtual Energy Exports Conference

V EN IRT CO E U A N RG AL cc es FE Y s $5 0 N R E EW 0bn of g EN XP BO lo CE OR ba l D

Save the date

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Sector analysis

Renewable energy – is India ahead of the game?

Interestingly, one sector is ahead of the game: solar energy. Within a decade from 2010 to 31 March 2020, Indian solar has grown from just 161MW to 37,627MW; an increase of 233 times, exceeding the initial target of 20GW capacity by 2022. Since India harnessed its target four years ahead of schedule, the government has further raised the bar to a massive 100GW by 2022, with a target investment of US$100bn as part of its National Solar Mission (NSM). This may seem daunting, but according to EICDataStream, 76.7GW are in the pipeline by 2022, of which 10.5GW from 12 projects are for future projects, including NTPC’s 5GW Kutch Ultra Mega Solar Power Park, and Madhya Pradesh’s 1GW Indira Sagar Dam Floating Solar Farm. With such dynamism coupled with incentives by federal and state governments, Indian solar is believed to be on the right track to a brighter horizon. The excitement is also shared by industry players as more money is pumped in for capital expenditure (CAPEX). As per EICDataStream, Indian solar energy has the highest amount of CAPEX between 2018 to 2027, followed by hydroelectric and onshore wind. In comparison with other countries in Asia Pacific, India comes out as seeing the most significant investment. Indian operators also top the list through Solar Energy Corporation of India (SECI), a company under MNRE which will be renamed Renewable Energy Corporation of India (RECI). Solar energy aside, India, given its big population is also big in the wind energy market, with total installed wind power capacity of 37.7GW as of February 2020 as per MNRE data. This puts India in fourth place behind China, US and Germany. Geographically, Tamil Nadu has the highest installed capacity in the country due to its favourable state regulations, followed by Maharashtra, Gujarat and the rest; Andhra Pradesh, Karnataka, Madhya Pradesh, Rajastahn and Telangana.

Gas 6.7%

Nuclear 1.8%

Lignite 1.8%

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Indian wind power is moving towards 60GW of installed capacity by 2022. 13GW of wind projects are in the pipeline in various development phases, while another 10GW is expected to be tendered in the coming months. With that, India needs another 9.3GW of wind power by 2022, in which 532MW will be obtained from projects in the planning stage, including Onshore Wind Farm Sembcorp, and Engie’s Onshore Wind Farm Tamil Nadu, based on EICDataStream. Another 1.6GW of wind projects are expected to operate, albeit beyond 2021, which are Government of India’s Offshore Wind Demonstration Project Gujarat Coast as well as NTPC’s ISTS-Connected Onshore Wind Power Projects. Given the intense growth, ironically India has put itself in a difficult situation to meet targets. What is further required by India to expedite the process? With a combined renewable goal of 175GW by 2022, India may be boarding a train to nowhere, especially with the current global COVID-19 pandemic of which 5% of cases are from India. Fortunately, that counts for just 0.04% of India’s massive population, and given the fact that Indian GDP is third in the world behind China and US, India is believed to be resilient. Furthermore, India has brilliantly underlined several key initiatives, such as National Wind-Solar Hybrid Policy (NWSP), which promotes wind-solar photovoltaic (PV) hybrid systems for efficient utilisation of transmission infrastructure. This hybrid system gained a lot of interest; as such, SECI has awarded 1.2GW of ISTS-Connected Wind-Solar Hybrid Power Project to SB Energy and Mahoba Solar, and recently Adani Green won the 700MW wind-solar hybrid project. Apart from that, India is also ramping up electricity production through round-the-clock (RTC) auctions. On top of that, India allows 100% foreign investment in entities engaged in the renewable sector. With all these measurements in place, the need for energy storage is even higher in India due to increasing power supply. Nevertheless, things are indeed spicing up in India with a melting pot of incentives balancing their goals, creating a fast but worthwhile journey.

Designed and published by the Energy Industries Council 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com @TheEICEnergy EIC (Energy Industries Council)

India, land of a billion people and hundreds of spices, is on a one-way train to greener pastures – but how fast is the train? According to the Ministry of New and Renewable Energy (MNRE), India’s share of renewable energy stood at 36.2% of overall installed power capacity at the end of the first quarter in 2020. Out of these, large hydro (12%), wind power (10.1%) and solar power (9.8%) dominate the mix. In terms of total renewable energy growth, there was an increase of 0.3% or 1.1GW in just three months from December 2019. What is more commendable is the fact that India is set for further fast-track, with ambitious renewable energy goals from 86.3GW to 175GW and 450GW in 2022 and 2030. The question is, are they achievable?

Farhan

Farhana Borhanudin, Regional Analyst (Asia Pacific) farhana.borhanudin@the-eic.com

India – cumulative installed power capacity mix

Diesel 0.1%

Renewables 36.2%

Large Hydro 12.3% Wind Power 10.1% Solar Power 9.8% Bio Power 2.7% Small Hydro 1.3% Waste to Power 0.4%

Coal 53.4%

Inside this issue... Ahead of the Virtual Energy Exports Conference (vEEC) next month, EIC CEO Stuart Broadley recently sat down with Cy Wilkinson, CEO of UnitBirwelco, one of the Lucy C main sponsors. Discussions centred on why hakao dza UnitBirwelco were happy to sponsor vEEC, how its business has survived and thrived during the current pandemic and new ways of working in the future. Don’t forget to save the date for vEEC, which is now a free-of-charge virtual exhibition and conference running from Monday 28 September to Thursday 1 October, with over 20 international delegations joining and more than US$500bn in project opportunities to be discussed. A preview schedule of presentations is running preceding ‘vEEC week’, allowing early access to key project information and one-to-one meetings while the week of the event will include thought leadership sessions, C-level panel discussions, Q&As with our speakers, plenaries and workshops. Find out more www.the-eic.com/Events/EnergyExportsConference We recently launched the fourth edition of our Survive and Thrive insight report which charts the course 40 EIC member companies have taken to grow against a backdrop of continued market uncertainty, UK-China trade tensions, OPEC disagreements, low oil prices and COVID-19. The report provides invaluable firsthand information from the UK supply chain and offers a listing of energy companies and detailed analysis of eleven strategies employed to grow their business. This year it found 49% of companies surveyed chose diversification, specifically de-risking their revenue sources and less reliance on oil and gas, as their most used growth strategy. We will be including all individual stories in the next few issues of Inside Energy. Turn to page 34 to check out our first batch of the 40 stories featured in the report. Also check out our infographics on pages 10 and 30 on why companies should stop waiting and start adapting to the new COVID culture and what industry wants government to pitch at COP26. In this month’s sector analysis our Asia Pacific Regional Analyst Farhana Borhanudin explores whether India is ahead of the game in renewable energy. India is set for further fast-track, with ambitious renewable energy goals from 86.3GW to 175GW and 450GW in 2022 and 2030. Farhana outlines how the land of a billion people is set to achieve this. In our ‘Spotlight on technology’ section EnerMech Ltd highlights how North Sea operator Apache is leading the way in deploying innovative digital inspection technology developed by EnerMech subsidiary MInteg and Arup, to reduce asset inspection costs on offshore platforms and improve safety. As ever, we are continuing to support our members and their businesses through our series of EIC Live e-vents allowing us to continue to share advice, project opportunities and market updates from around the world. Visit our full listing of online events at www.the-eic.com/Events/FullEventsDiary Lucy Chakaodza, Editor, Media and Communications Manager lucy.chakaodza@the-eic.com Sign up for the EICOnline newsletter

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Contents Sector analysis

Inside this issue...

EICDataStream 4 One-to-one 6 Spotlight on technology 9 New EIC members

Member news

Social media round up 17 Forthcoming events

Overseas events

UK and Europe news 21 Middle East news

Asia Pacific news

South America news 24 North America news

EIC Survive & thrive IV 33 @TheEICEnergy

EIC (Energy Industries Council)

DataStream AUSTRALIA

Global opportunities USA

UZBEKISTAN

Australian Small Scale Floating LNG (FLNG)

Taggart Field Development

Ferghana Oil Refinery Modernisation Project

Operator: Transborders Energy Value: US$250m Transborders Energy has signed an agreement with SBM Offshore for its proposed FLNG development solutions for stranded gas resources. SBM will act as an exclusive O&M, part of FEED and EPCI services contractor.

Operator: LLOG Exploration Value: US$100m LLOG has announced that it has reached an agreement with Williams to complete two existing wells and tie them back to the Devils Tower spar.

Operator: Ferghana Oil Refinery LLC Value: US$300m Ferghana Oil Refinery LLC has commenced reconstruction of existing and construction of new production facilities at the modernisation project. Axens is the technology provider, with Wood taking charge of the FEED work.

For more information on these and the 9,000 other current and future projects we are tracking please visit EICDataStream

CAMEROON

ENGLAND

Limbe Combined Cycle Gas Fired Power Plant

CRYOBattery Plant Trafford

Operator: Government of Cameroon Value: US$300m A 350MW combined cycle gas fired power plant in Limbe. It will include the conversion of an existing 85MW heavy-fuel-oil-fired power plant and the addition of 265MW of new capacity. An ‘Expression of Interest’ to pre-qualify for the Build, Operate and Transfer agreement has been launched.

Operator: Highview Power Storage Value: US$50m Development of a 50MW/250MWh cryogenic energy storage plant using Highview Power’s CRYOBattery solution, in Greater Manchester. Highview Power has partnered with Carlton Power to deliver the plant, with construction to begin later in 2020.

INDIA

Kiru Hydro Power Plant Operator: Chenab Valley Power Projects Value: US$61m A 624MW hydro power plant with 4x156MW units, located in Kishtwar of Jammu and Kashmir State on the river Chenab. Andritz has secured a contract for the supply, design, manufacture, supply, erection, testing and commissioning of four turbines and associated equipment.

SupplyMap The only database of UK supply chain companies across all energy sectors Need ayour demonstration of EICDataStream, EICAssetMap, EICSupplyMap? Get in touch Share news and views... Pleasenewsdesk@the-eic.com contact membership@the-eic.com Email • Phone +44 (0)20 7091 8600

AssetMap

EICAssetMap Gulf of Mexico Join us

Track all major OPEX assets and facilities in key global markets including the Gulf of Mexico EICAssetMap, the EICâ&#x20AC;&#x2122;s operations and maintenance (O&M) database, now maps all major facilities across all energy sectors in the UK, Norway, Brazil, Gulf of Mexico and the ASEAN and GCC states. This fully interactive map database is updated daily with information about existing facilities and the key contacts at these facilities so you can find out who to do business with and contact them. EICAssetMap is the only O&M database to map major energy assets across all sectors in key markets in the Gulf of Mexico, both onshore and offshore.

key energy markets around the world in all energy sectors to find new O&M business opportunities Search for operational assets in

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EIC (Energy Industries Council)

One-to-one

with Cy Wilkinson CEO, UnitBirwelco

EIC CEO Stuart Broadley sat down with Cy Wilkinson, CEO of UnitBirwelco ahead of this year’s Virtual Energy Exports Conference (vEEC) in September, of which the company is a key sponsor.

UnitBirwelco is a manufacturing CW and engineering business focusing on oil and gas, petrochemicals, energy from waste and power. I joined the company a year and a half ago and we started our transformation programme across the whole business in 2019, which is progressing very well. We operate across three sites in the UK: Birwelco Ltd in the Midlands, a company that’s over 100 years old which engineers, designs and procures heaters, flare systems and thermal equipment, Unit Superheater Engineering in Swansea which is also over 100 years old and designs and manufactures heat exchangers, pressure vessels, tanks and other thermal equipment, and Unit Engineers & Constructors which is based in Immingham, who work on turnarounds, shutdowns and maintenance activities on various sites. SB

You are a well-diversified business, which is key in these times of uncertainties in the market. It’s good to see so many markets you can pursue. Your choice to sponsor our Energy Exports Conference means you want to further engage in the export market, which your company already does. We will have 20 inward delegations who will potentially be bringing

the work we do in the North East stopped overnight. We were forced to furlough a lot of the workforce, although we kept on a lot of the business development team to maintain client relationships. With Birwelco Ltd in the Midlands we were quickly able to transition from office-based working to working from home partly due to the fact in 2019 we invested in new IT infrastructure. Our site in Swansea has been in operation throughout the pandemic with very stringent additional health and safety measures in place. We already had a very strong order book which needed to be fulfilled over the last three or four months, so we continued to deliver our products to clients. It’s been quite diverse how our three businesses have been impacted. We do have staff going back to work and on site in the North East, but we are nowhere near how we were prior to the pandemic.

US$500bn worth of project opportunities participating in vEEC. Obviously, you would like access to some of these projects. How would you describe to key decision makers what is special about your business?

Please introduce yourself and tell us a bit about your business?

We have these three CW separate businesses under the UnitBirwelco umbrella to provide a full suite of services to our clients. We have one point of contact when we are winning orders and executing projects which is more efficient, more cost effective and enhances accountability within our organisation and to our clients. We are a fullservice supplier, with most of our capability in-house which gives us a big advantage over other organisations. SB

Brilliant, so your organisation acts as a convenient one stop shop based on trust to deliver projects on a holistic basis operating on a real solutions approach. I want to ask you a little more about your business. I am interested to know how your business, like many others, has handled the impact of COVID-19? What have you had to do to adapt across your three sites?

Our three businesses have CW been affected in different ways. Our site in the North was affected instantaneously due to the lockdown as lot of

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Interesting to hear how your three sites have been impacted in completely different ways. I am sure it has helped you better understand what is working and not working across your businesses and with your resilience planning. What have you learnt as a result? What are the two or three key lessons you can take away ahead of the next major crisis which we now have to accept will likely be a regular occurrence?

VIRTUAL ENERGY EXPORTS CONFERENCE Access $500bn of global opportunities MONDAY 28 SEPTEMBER – THURSDAY 1 OCTOBER

We have learnt to be more CW flexible. We accept we are never going to go back to how we were before. Having a more diverse customer base certainly has more advantages and de-risks the business. As a result, we learnt we need to expand our customer base in the North East and gaining more global exposure is extremely important to us, not just in the UK and Europe. There are many opportunities for us internationally. SB

You have raised a good point. Businesses need to meet new clients. You are lucky enough to already have skin in the game, but your focus is now on winning new customers in this new way of working. What sorts of lessons have you learnt about having to do business in this new world?

In the last few months we have CW been aggressive in expanding our business development activities to widen our customer base. We have just recruited two Business Development Managers, one in the North East who started at the beginning of lockdown so had no choice but to work remotely and we recently recruited an international Business Development Manager who is UK based relying on his network of people. We recognise it is very important to have agents on the ground in key markets who have local connections and speak the same language and will be very advantageous for us. We have already had several video calls with agents in Qatar and UAE. SB

on personal protective equipment, social distancing, travel restrictions and ways of doing business. I assume your business is reviewing factors such as cost of travel and alternative ways of doing business. What is your approach to new ways approaching international business development? You are right, the cultural CW aspect is very important hence the need to get more local agents on board. Like all of us, we like to meet people face to face and this is probably still the best way, but we are living in a new world and yes, it’s been forced upon us, but in other ways it has been quite advantageous, has increased efficiency and has saved on costs, with staff not having to travel and having meetings online. In addition to efficiency gains there has been a lot of environmental gains, from our point of view even before the pandemic began, we had a target of becoming carbon neutral. We are also finding that we are communicating a lot more across our three businesses as we can get more people around the table at any one time through video conferencing, so there are some advantages as a result of this recent pandemic. SB

You have again raised some interesting points; the need for agents in target markets who have an understanding of the local culture, which is increasingly not just about local culture but also about COVID culture, understanding local varying legislation and advice in different countries

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One-to-one

2020

SPONSORING

Yes, there are many aspects of lockdown that were forced upon us that we now want to keep such as reduced travel, better work-life balance and enhanced use of online technologies, although there are other things that we need to find a ways of working around. There are many companies I am working with that have this approach. However, I have also seen some businesses waiting for lockdown to end and for things to get back to normal. I think your approach is great, don’t wait, adapt!

Businesses need to crack on and we need to assume this is going to be long-term change in the way we all must work.

Thank you so much for agreeing to sponsor the Energy Exports Conference which is now a virtual event. We really appreciate your decision to continue as one of our sponsors even though the conference has transitioned from a face to face event to a virtual one. Why did you decide to sponsor vEEC and what do you hope to get out of it?

In 2019 we joined EIC CW membership recognising its strong product offering such as EICDataStream, EICSupplyMap and EICAssetMap which have helped us to meet new clients and keep up to date on new project opportunities in the UK and globally. We also sponsored EIC’s Connect Energy event in Manchester last year and that went down very well. We met several new clients and gained good exposure. As a UK based business, we want to grow. We jumped at the chance to sponsor this year’s vEEC as we recognise it’s an excellent event to be involved with in addition to getting our company name in front of the right people.

@TheEICEnergy

EIC (Energy Industries Council)

SAVE THE DATES

Access $500bn of global opportunities MONDAY 28 SEPTEMBER – THURSDAY 1 OCTOBER

VIRTUAL ENERGY EXPORTS CONFERENCE 2020

2020

VIRTUAL ENERGY EXPORTS CONFERENCE

BOOK IN NOW G

EEC 2020 is now fully virtual! Attend FREE OF CHARGE for export support and project opportunities The virtual Energy Exports Conference (vEEC) will now be a free-of-charge virtual exhibition and conference running from Monday 28 September to Thursday 1 October, with over 20 international delegations joining and more than US$500bn in project opportunities discussed. A preview schedule of presentations will run in the three months preceding ‘vEEC Week’, allowing early access to key project information and one-to-one meetings while the week of the event will include thought leadership sessions, C-level panel discussions, Q&As with our speakers, plenaries and workshops. Visit our website to find out more

www.the-eic.com/Events/EnergyExportsConference Organised by the EIC and our partners

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Spotlight on technology www.enermech.com

EnerMech Ltd

APACHE AND ENERMECH LEAD THE WAY WITH DIGITAL INSPECTION SERVICE North Sea operator Apache is leading the way in deploying innovative digital inspection technology developed by engineering consultancy firm Arup, and EnerMech subsidiary MInteg, to improve safety and reduce asset inspection costs on offshore platforms. Apache’s adoption of the Arup Inspect MInteg (AIM™) inspection service on the Beryl Alpha platform has significantly reduced offshore inspection hours of the topside structure whilst enhancing the quality and availability of inspection data. The innovative digital service replaces high-risk offshore working-at-height inspection methods with the application of remote visual inspection tools. It also enables operators and asset owners to access their interactive inspection data 24/7 and make informed decisions about asset repair, replacements or improvements. Gaming technology was used to create a baseline geometric digital twin of the Beryl Alpha platform to sufficiently capture inspection data, without the need for rope access work. Get in touch To be profiled in this section please contact... Email mark.risley@the-eic.com

More than 60,000 images, including 360° panoramic views, captured ultra-high-resolution inspection data. These enhanced records have contributed to improved reporting reliability and the 3D model-based tablet application will help Apache on its journey to adopting a digital approach for the platform. EnerMech provides a broad range of asset support services to the international energy and infrastructure sectors, from pre-commissioning through operations and maintenance and late-life support/decommissioning. The business is focused on offering a safer, more customer-focused, responsive service at lower cost. Headquartered in Aberdeen, EnerMech specialises in providing integrated supply, operations, maintenance and engineering solutions.

COVID culture LEADERSHIP

With most medical experts agreeing that the virus isn’t going away any time soon, it’s time for leaders to acknowledge that the old normal is gone and it’s time to write your new normal.

DIGITAL

COVID-19 has made digital in business a ‘must-have’ from a ‘nice-to-have’. Innovation is needed to adopt digital solutions that allow for social distancing, remote functions and much more.

OVERSEAS TRAVEL

The unprecedented grounding of flights around the world has taught us that international travel is rarely needed. Save emissions, money and time by instead recruiting local agents or staff to represent you permanently.

HOW TO WIN NEW CLIENTS?

Understanding COVID sentiment in new countries is as important as understanding local culture, language and religion. Don’t take the risk of meeting face-to-face if you don’t know the local COVID culture.

EXTERNAL EVENTS

Events will look drastically different. Limit numbers, enable one-way routes, embrace hybrid models with virtual and safe physical components, and above all prove to potential attendees that it is safe to attend.

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Stop WA start AD

to the

COVID C

NURTURE NETWORKING TIME

Lockdown has taught us that most business communication can be done remotely. Restrict face-to-face meetings to building trust with new clients and important social networks.

SUPPLY CHAIN SELECTION SupplyMap

WAITING DAPTING

e new

CULTURE

Use data and digital services such as EICSupplyMap to help you to choose your suppliers more accurately, and narrow your supply chain to the most trusted and critical.

ROLE OF GOVERNMENT

Government support has never been so crucial. Take advantage of the support available by seeking working capital and trade support and lobbying for funding for long pipelines of major capital projects, and to use COP26 to pitch UK ambition.

WORKING FROM HOME

For most office-based businesses, there has been a perspective shift in the effectiveness of working from home. Where possible, close excess office space and redirect costs, while providing safe meeting and networking spaces.

EXTERNAL MEETINGS

Design or find safe and neutral meeting places like a local coffee shop, and avoid meeting clients in their or your offices unless itâ&#x20AC;&#x2122;s COVID compliant. Above all, assume a conservative and careful approach and abide by national guidelines.

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@TheEICEnergy

EIC (Energy Industries Council)

New EIC members NEW GLOBAL AMERICAS MEMBER

NEW GLOBAL EUROPEAN MEMBER

NEW GLOBAL ASIA PACIFIC MEMBER

AMETEK Solidstate Controls

AUMA

CUEL Ltd

Aumastrasse 1 Müllheim 79379 Germany

9th Floor, Tower 2 (West) SCB Park Plaza 18 Ratchadapisek Road Chatuchak Bangkok 10900 Thailand

875 Dearborn Drive Columbus 43085 Ohio United States The Nominated Representative is Ms Alicia Joens, Product Marketing Manager Telephone +1 800 635 7300

The Nominated Representative is Ms Caroline Arnold, Team Assistant Telephone +49 7631 8090

Email alicia.joens@ametek.com

Email caroline.arnold@auma.com

Web www.solidstatecontrolsinc.com

Web www.auma.com

AMETEK manufactures industrial power equipment that provides the continuity of electrical power to critical applications.

AUMA has been developing and building electric actuators and valve gearboxes for 50 years and is one of the leading manufacturers in the industry.

AMETEK’s industrial equipment includes uninterruptable power supply (UPS) systems, inverters, power conditioners, battery chargers/rectifiers, remote bypass switches and ancillaries. AMETEK’s equipment is designed for industrial applications and built to provide reliability and efficiency in some of the most rugged environments. With over 50,000 installs in 66 countries, the company has over 58 years of experience partnering with leading Fortune 500 companies.

Energy sector, water industry, petrochemical industry and users from the most diverse industries worldwide rely on technologically sophisticated products by AUMA. 2,600 employees. 30 locations worldwide. Modular product design. A company in motion – AUMA.

Besides its industrial product line, AMETEK also offers the best in class monitoring, metering and response equipment into the energy sector.

9-10 September 2020 • Jakarta

CONNECT Energy Indonesia Get in touch Share your news and views...

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The Nominated Representative is Ms Pattira Srisontisuk, Strategic Planning Manager Telephone +66 (0)2 500 1200 Email pattiras@cuel.co.th Web www.cuel.co.th CUEL is an EPCI specialist offering international companies a unique range of construction related services, with expertise in factory-mode construction with the primary focus on three markets including offshore oil and gas, refining/petrochemical/ LNG modules, and renewables – offshore wind. Formed in 2000, CUEL provides world-class integrated services that encompass project management, engineering design, procurement, construction, installation and commissioning. Rooted in a factory model approach to construction, CUEL has a proven track record in delivering cost competitive projects through repetition and economies of scale with a high commitment to ensuring safety, quality and schedule expectations are achieved.

New EIC members

NEW GCC MEMBER

Gasal QSC The Gate Mall Tower 4, Floor 13 PO Box 24983 Qatar The Nominated Representative is Mr Richard Karam, IM Business Development Manager & Key Accounts

NEW GLOBAL EUROPEAN MEMBER

Prysmian Group

TLC SA

Via Chiese 6 Milan 20126 Italy

Terre-Bonne Park Batiment A1 Route de Crassier 7 Eysins 1262 Switzerland

The Nominated Representative is Mr Adam Plumb, Regional Director – Europe

The Nominated Representative is Ms Adeline Wenger, Group Sales & Marketing Manager

Telephone +9744 402 0400

Telephone +39 02 6449 1

Email richard.karam@gasal.com.qa

Email adam.plumb@prysmiangroup.com

Web https://gasal.com.qa/

Web www.prysmiangroup.com

Web www.tlc-com.ch

Gasal is Qatar’s leader in industrial gas supply and services. Since its establishment in 2006, as a joint venture company between Qatar Petroleum, Air Liquide and Qatar Industrial Manufacturing Company, Gasal has rapidly embarked on its goal to create fully integrated industrial gas production and distribution hubs in Ras Laffan and Mesaieed industrial cities.

Prysmian Group is a manufacturer of energy cables from low voltage to extremely high voltage, cable accessories, turnkey submarine cables and installation services, optical fibres and telecommunication cables.

TLC SA Transportation and Logistic Consulting, a Switzerland-based company, was founded by its owner and chairman of the board, Mr Philippe Masserey in 2001.

BO N O O W K IN G

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2020

VIRTUAL ENERGY EXPORTS CONFERENCE MONDAY 28 SEPTEMBER – THURSDAY 1 OCTOBER

Email awenger@tlc-com.ch

The TLC Group provides superior logistics solutions for the energy, mining and infrastructure industries in Africa, South America and the Caribbean. The Group employs more than 200 members of staff in 12 countries The TLC Group has always experienced organic growth and has carefully managed its expansion strategy to countries where its acquired know-how and expertise are transferable, in order to deliver the highest quality of service to its customers.

Gasal’s ambition is to deliver long term operational excellence and value co-creation, and to provide its stakeholders with innovative, sustainable high quality industrial gas solutions which are essential for their production, to improve process efficiency and to make its plants more environmentally friendly.

Access $500bn of global opportunities

Telephone +41 22850 0025

TLC Equatorial Guinea was the first subsidiary to be opened in 2003, rapidly followed by TLC Angola (2006), TLC Congo (2007), TLC Gabon (2008), TLC Aberdeen (2009), TLC Houston (2009), TLC Mozambique (2012), TLC Ivory Coast (2017), TLC (Guyana) Inc (2018), TLC Trinidad (2018) and TLC Senegal (2018).

@TheEICEnergy

EIC (Energy Industries Council)

Member news HTL’s response to COVID-19

To ensure all its employees and customers are safe during these unprecedented times, HTL support and leadership teams are corresponding daily to address and respond to the ever-changing conditions, both at its facilities and where HTL operates. HTL is focused on implementing strategies to limit the spread of COVID-19, in order to protect customers and employees. The safety and health of HTL’s employees and colleagues is its number one priority and it is taking steps to ensure all employees are provided with a safe working environment. HTL continues to encourage office-based employees to work from home, while limiting the number of staff working within the facility. For staff currently working in its facilities, HTL is enforcing social distancing rules and has introduced more hand sanitising stations at entry and exit points, frequent deep cleaning of all equipment, desk screens installations and continues to provide PPE. Customers are important and HTL is dedicated to continue its ongoing support. Account managers and service engineers continue to assist HTL’s customers around the world.

Group wide, HTL is following the advice of the relevant national health authorities and as some travel is beginning to be permitted, precautionary measures are being implemented to ensure the wellbeing of customers and employees. HTL Group is supporting local communities #inthistogether. It is standing by the NHS in the UK and continues to support key workers by proudly flying the NHS flag across HTL’s facilities. HTL has also provided medical protective equipment that were made at HTL’s HQ in Cramlington, using 3D printing machines. The visors that were made have been donated to the local hospital, with the aim of providing visors to frontline workers and carers. HTL Group’s objective is to protect the health and wellbeing of all employees and customers, so it will continue to follow government guidelines. Although some operations have been impacted due to the government guidelines, HTL maintains its objective to always deliver exceptional customer service and continues to support customers, despite the challenges the industry faces during this pandemic.

For more information: www.htlgroup.com

iNPIPE PRODUCTS™ receives RoSPA Gold Award for H&S achievements

iNPIPE PRODUCTS™ based in Brompton on Swale, is celebrating after landing an internationallyrecognised award for demonstrating high health and safety standards. iNPIPE PRODUCTS™ has received a RoSPA Gold Health and Safety Award for working hard to ensure its staff get home safely to their families at the end of every working day. Organisations receiving a RoSPA Award are recognised as being world-leaders in health and safety practice. Every year, nearly 2,000 entrants vie to achieve the highest possible accolade in what is the UK’s longest-running H&S industry awards. Staff from iNPIPE PRODUCTS™ will be presented with their award during a ceremony at ExCeL, London on Tuesday 8 September 2020. Competitive awards go to the best entries in 24 industry sectors including construction, healthcare, transport and logistics, engineering, manufacturing and education.

For more information: www.inpipeproducts.com

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Member news

MAN Energy Solutions and BWSC are expanding the DPP2 Bemland power plant capacity in Suriname’s capital, Paramaribo, from 84MW to 126MW

MAN Energy Solutions further expands power plant in Suriname

In consortium with Burmeister & Wain Scandinavian Contractor A/S (BWSC), MAN Energy Solutions SE is expanding the DPP2 Bemland power plant capacity in Suriname’s capital, Paramaribo, from 84MW to 126MW, financed by OLIBIS NV. MAN Energy Solutions is supplying two MAN 18V48/60TS engines for the expansion, each engine driving a 21MW alternator to feed an additional 42MW of electrical power into the Paramaribo power grid that services approximately half of the country’s population that lives and works in the capital city. The DPP2 63MW Bemland power plant, owned and operated by the government owned utility Energiebedrijven Suriname (EBS), was originally built by BWSC and MAN Energy Solutions in 2012 and financed by the government and the local company OLIBIS. The plant was expanded in 2015 with an additional 21MW and for this second expansion of 42MW the project is again being financed by OLIBIS in conjunction with EBS and the Surinamese government.

For more information: https://uk.man-es.com/

Metso installs mega-class compress press in Sweden

Metso is continuing to develop its consumables product range and production capacity, especially in larger consumables wear sizes. An innovative, mega-size compress press is currently being installed at the Trelleborg factory in Sweden. Due to the COVID-19 outbreak and the strict travel and site visit restrictions, a dedicated team at the Trelleborg factory is performing the installation by utilizing online remote support from the supplier’s experts in Australia and China. Along with the increased production capacity, the modular press design will expand the range, sizes and types of products manufactured. With its robust technology and large size, the unique press can produce parts, such as mill lining wear parts that weigh up to 8 tons. The press installed in Sweden is the first in a series of three similar machines with a total value of EUR10 million. Metso currently operates 11 factories manufacturing synthetic solutions globally, and it will open a new factory for mining consumables wear parts in Lithuania in 2020.

For more information: www.metso.com

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MTE to supply safety solutions to Arctic LNG project in Russia

MTE has announced that it has secured a new contract with COSCO to supply safety solutions to the Arctic LNG 2 project in Russia. MTE has been contracted to design and supply high integrity fire and blast wall panel solutions in both stainless and carbon steel options. MTE has also been requested to offer installation support to train and assist COSCO in the complete installation of the products on site. The ALNG 2 project, a major liquefied natural gas (LNG) development includes the construction of three offshore LNG Gravity Base Structures (GBS) which are located at the Gydan Peninsula in the Western Siberian region of the Russian Arctic Circle. Each of the three GBS trains is expected to have a capacity of 6.6Mtpa and is expected to export its first LNG cargo by 2023. With a 40 year design life cycle MTE will provide high standards of fire and blast protection in extreme harsh Arctic sub-zero conditions with minimal operational maintenance requirements.

For more information: www.mechtool.co.uk

@TheEICEnergy

EIC (Energy Industries Council)

Member news

Servelec Controls

Sonardyne Fusion 2 software update adds new capabilities

Underwater positioning specialist Sonardyne International Ltd has increased the capabilities of its Fusion 2 software package to enable surveyors and construction personnel to do even more, both on and offshore, with their existing hardware.

Servelec Controls secures new contracts to keep UK infrastructure operational

As part of the national commitment to keep the UK’s critical infrastructure operational at this uncertain time, two blue chip oil and gas companies and a major medical gas provider have recently engaged Servelec Controls to upgrade safety systems, undertake functional safety assessments and provide expanded support for their assets. Throughout the pandemic Servelec Controls has continued to support its clients in critical national infrastructure, having instilled new COVID-19 specific working procedures to help clients progress their operations while staying safe and productive. As a result of the continued dedication of its key workers to maintain the continuity of energy supply to the UK, Servelec Controls continued to receive new work from valued clients in the energy sector during the lockdown period. Having received a new order for the upgrade of a fire and gas system for a UK oil terminal prior to the lockdown, Servelec Controls used their newly implemented COVID-19 specific safe systems of work in order to safely deliver the project to meet the original three month timescale.

All design and documentation work was undertaken remotely, supported by virtual meetings to keep the client updated. Social distancing measures at the system integrator’s manufacturing facility in Sheffield enabled the construction to go ahead and the factory acceptance test (FAT) to involve the client, with the final solution now being delivered to site ready for installation once contractors are allowed onto the premises.

The fact that we continue to secure new project work shows how important our services are to the UK and how much our clients trust us. We’ve built strong relationships with our clients over the years and they place a great level of faith in our services and the solutions we provide. Chris Stones, Sales Director for Oil & Gas, Servelec Controls

Servelec Controls continues to monitor its operating procedures during the lifecycle of COVID-19 and in response to updated guidance, in order to ensure we protect our workforce and our clients’ workforces, as well as the rest of the UK, by minimising the risk of spread of infection.

For more information: www.serveleccontrols.com

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This latest release of Fusion 2 unlocks new benefits, including a simplified surface box-in app and the ability to perform wireless structure deflection monitoring, without having to deploy specialist hardware. Additionally, Fusion 2 now includes ‘office’ mode as standard, allowing project teams to plan and fine tune procedures before doing them for real offshore. Multi-user mode now comes as standard when using Sonardyne’s Compatt 6+ transponder arrays, bringing the savings of simultaneous operations to all users.

For more information: www.sonardyne.com

New EIC members Social media Member round news up

STATS Group expands operations in Oman

STATS Group has strengthened its presence in Oman with the opening of a new workshop, storage and testing facility in Muscat. The expansion comes after the pipeline technology specialist secured a two year extension to a Master Services Agreement with Petroleum Development Oman (PDO) to provide pipeline isolation and hydrostatic testing services. Also in the Middle East, STATS has trebled the size of its operation in Abu Dhabi in a move to a larger workshop and office facility in the Mussafah district. Last year STATS signed an exclusive partnership agreement with Saudi Arabia’s Safari Oil & Gas, one of the Kingdom’s top 50 listed companies, and longer term plans to open a permanent base in KSA.

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – EIC (Energy Industries Council) Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy

The latest #EICSurviveandThrive Insight Report is out now! Read the full report for free with case studies from all 40 EIC member companies: http://bit.ly/2Mobaut

The EIC @TheEICEnergy

For more information: www.statsgroup.com

We sat down with key #vEEC2020 sponsor @Unit_Birwelco CEO @cywilkinson to discuss why it chose to become the registration sponsor at @EEC_Energy: bit.ly/2WwBQRX Sonardyne International Ltd

Visit www.the-eic.com/Forms/NewsletterSignup

BO NO O W K

EIC (Energy Industries Council) New Technologies in the Energy Industry will discuss the benefits of being able to control equipment remotely which will enhance asset management: bit.ly/39gL5uK

@TheEICEnergy

LIVE e-vents

New Technologies in the Energy Industry Thursday 30 July

EIC (Energy Industries Council)

August –September 2020

Forthcoming events and 4 August Management Course

EICDataStream/AssetMap training Online

LIVE e-vents The EIC’s new webinars

20 August Business Presentation

North America EICDataStream Online

5 August Business Presentation

24 August LIVE e-vents

South America EICDataStream

Focus on Export Strategy

Online

10 August LIVE e-vents

Dubai Open Day GotoWebinar

13 August LIVE e-vents

Acorn Project Update GotoWebinar

13 August Business Presentation

North America EICDataStream Online

14 August LIVE e-vents

GotoWebinar

26 August LIVE e-vents

Electrical System Protection GotoWebinar

26 August Business Presentation

South America EICDataStream Online

27 August LIVE e-vents

Finance of Projects in Brazil GotoWebinar

28 August LIVE e-vents

EIC Houston Coffee Break

Celebrating 25 years in Houston

18 August LIVE e-vents

2 September Management Course

Focus on Energy Storage

EICDataStream/AssetMap training

18 August LIVE e-vents

3 September Business Presentation

Webinar

GotoWebinar

What’s ahead for APAC Energy? GotoWebinar

19 August Management Course

EICDataStream/AssetMap training Online

20 August LIVE e-vents

Refining in Brazil with Oil Group GotoWebinar

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Webinar

Online

North America EICDataStream Online

9 September Business Presentation

South America EICDataStream Online

9-10 September EIC Connect

EIC Connect Energy Indonesia The Dharmawangsa Jakarta Hotel

For more information and to book visit www.the-eic.com

Forthcoming events

9-10 September 2020 • Jakarta

CONNECT September – October 2020

Energy Indonesia 16 September Management Course

EICDataStream/AssetMap training Online

17 September Business Presentation

North America EICDataStream Online

21 September Overseas Exhibition

Rio Oil & Gas

Hydrogen Potential Webinar

28 September Export Showcase Virtual

Energy Exports Conference

Online and Webinars

29 September Management Course

EICDataStream/AssetMap training

Rio Centro, Rio de Janeiro

Online

22 September Overseas Exhibition

ENGenious 2020

1 October Business Presentation

North America EICDataStream

P&J Live at TECA, Aberdeen

Online

22 September Business Presentation

South America EICDataStream Online

24 September LIVE e-vents

14 October LIVE e-vents

Mexico Power & Renewables Webinar

BO N O O W K IN G

Access $500bn of global opportunities MONDAY 28 SEPTEMBER – THURSDAY 1 OCTOBER

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2020

VIRTUAL ENERGY EXPORTS CONFERENCE

EIC (Energy Industries Council)

Overseas events EIC overseas trade delegations 2021 calendar announced

As we look ahead the overseas events team has started to look at how we can adapt in the current situation and what the ‘new norm’ of events and travel might look like. We know that there will always be the need for face to face meetings, engagement and networking.

Camilla

Tew

After months at home I think we all more than ever want to get out and interact. In the future we will see more of a hybrid schedule of events, incorporating both virtual and face to face offerings, giving exhibitors, delegates, and visitors an even better overall experience and exposure than we had prior to the pandemic.

Looking ahead to 2021 and our schedule of trade delegations, here is how we wish to engage our delegates with key markets 1

Delegation announced

Webinar 1: Project opportunities and country overview

Webinar 2: Hearing from the buyer – operator and EPC contractor E-meet the buyer: Virtual one-to-one e-meetings with buyers – taster session

‘Shopping list’ published and released covering key EPC and operator procurement requirements

Webinar 3: How to get onto the key preferred supplier lists before your visit

Final project updates, itinerary and notes released to delegates Delegation commences

We are now pleased to announce our new schedule of delegations for 2021 Mozambique and South Africa

February

Trinidad & Tobago and Guyana

1-5 March

Brazil Showcase

15-18 March

Angola

12-16 April

Uganda and Kenya

24-28 May

Saudi Arabia

March/June

Senegal and Mauritania Virtual Delegation

September

Cuba

October

Get in touch For more information contact...

Email overseasevents@the-eic.com • Phone +44 (0)20 7091 8600

21 21

UK and Europe news Regional update

We have been working with member companies to deliver a series of global webinars focussing on key energy sector topics such as hydrogen, nuclear new tech, Jo Cam pbell decommissioning, global offshore wind and energy transition. This has been a great opportunity for the UK events team to jointly host e-vents or have our members participate in speaking opportunities. If you are interested in finding out more about working with the UK events team email eventsUK@the-eic.com At the start of July we hosted a round table webinardiscussion with Minister Graham Stuart (Parliamentary Under-Secretary of State for Exports for the Department for International Trade). The EIC invited leaders of UK supply chain companies to take part in this exclusive discussion, providing a unique chance to discuss the topics of greatest importance to businesses. This was a fantastic opportunity to work with DIT and allow the industry to put forward their views on the most pressing needs, highlight the work they are doing to survive and thrive in the current tough market and find out about government thinking. Following the impact of the coronavirus pandemic on the industry and economic activity, technologies will be vital for the energy industry. Looking at how digital technology is a key element to support the energy sector, the UK events team ran two e-vents focused on discussing the latest technologies being implemented and their impact around the oil and gas industry. On 22 July we hosted an e-vent with member company Restrata – Leveraging Digital Technology in an Oil and Gas COVID World. We heard from industry experts discussing why managing today’s industry challenges must start with digital solutions and the technologies they are implementing to an offshore workforce. On 30 July, the e-vent focussed on New Technologies in the Energy Sector. Tayo Idowu, Energy Analyst, Midstream/Downstream at EIC presented on how new technologies, such as hydrogen, CCUS and biofuels are vital for energy transition. This webinar was a great opportunity for the audience to hear about the new technologies which are providing the industry with an overall lower carbon footprint, creating optimisation, decarbonisation, cost savings and job opportunities. We are here to help so do let us know if there are any topics you would like to be updated on. Jo Campbell, Regional Director (UK & Europe) jo.campbell@the-eic.com Sign up for the EICOnline newsletter

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EIC LIVE e-vents

LIVE e-vents

4 August: Social Selling Taster Session 19 August: Energy Storage 2 September: Petrofac Webinar

Regional news

Light still shines on Europe’s solar market

Despite the coronavirus outbreak, solar development across the world is continuing to push ahead, with SolarPower Europe predicting global capacities to reach 1,448GW by 2024. Europe in particular has recently taken strides in pushing through the pandemic, for continued advancements in the market. In June, Germany had another successful solar tender. The country received bids for 447.23MW of capacity, resulting in the tender being nearly five times oversubscribed. Spain continues to dominate the market, with its government recently approving a €20 million subsidy scheme (SolCan 2020 programme) to support the installation of an estimated 150MW of PV capacity on the Canary Islands. Iberdrola also announced plans to build a 400MW PV complex, which will replace the Velilla coal-fired plant once it has been decommissioned. Poland’s Institute for Renewable Energy revealed that it expects the country’s PV capacity to reach 7.8GW in 2025, surpassing its set 2030 goal and providing huge anticipation for opportunities in the coming years.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

@TheEICEnergy

EIC (Energy Industries Council)

Middle East news Regional update

The last few months appear to have witnessed a more optimistic approach for the remainder of the year with the price of oil increasing above US$40 and Ryan M cPhers on announcements of several contract awards. According to Dr Sultan Al Jabar, ADNOC CEO: “The recent OPEC+ agreement, together with robust demand, is helping rebalance the market and there are good reasons for the industry to be optimistic and positive about the future.” While we are far from out of the woods in respect of the current COVID-19 pandemic, the region has largely taken a sensible approach as it looks to curtail any further spread. Unfortunately, this means that travel is likely to be significantly reduced where both the expat community is likely to be based here over the summer, and travel from the UK is likely to be minimal, if permitted at all. This represents issues in terms of business continuity and delivery of existing projects. If this is impacting your business please let me know, where alongside our colleagues at the Department for International Trade (DIT) we will look to assist you. Our series of weekly webinars continues, where in addition to our Kuwait Market Update, we were delighted to be joined by Simon Penney and Emma Wade-Smith OBE in their respective capacities as Her Majesty’s Trade Commissioner (HMTC) for both the Middle East and Africa. Each webinar was extremely well attended and provided some insight as to what the UK government is currently undertaking in each region to help promote and stimulate UK business. For future webinars we are keen to build in a technical focus and would welcome the opportunity to hear from any of our members who have a niche/proprietary technology that could be of interest to any of the national oil companies (NOCs) across the region. Discussions continue regarding our KSA Connect event where we expect to be in a position to announce a date soon. The concept of delivering this on a virtual platform excites us all and we look forward to welcoming as many of you along as possible allowing you to engage from the comfort of your own home/office. We welcomed several new members this month in Kentech, TLC, ViaMedica and Well Fluid Services, illustrating the continued value of our various platforms during the current climate. For those interested in finding out more, further information can be found at www.the-eic.com/Membership Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

As we enter into the second half of the year please continue to keep safe and we look forward to seeing as many of you in person when the time permits and it is deemed safe to do so. In the interim please let us know if me or any of the team here can be of assistance to you and we will do our utmost to help. Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com

Regional news

Saudi Aramco completes SABIC acquisition

Aramco has completed an acquisition of a 70% stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF). The purchase was made at US$69.1bn, with approximately SAR123.39 per share. The deal benefits Aramco in supporting Aramco’s growth in upstream production and downstream chemicals feedstock production. SABIC benefits in providing SABIC with additional scale, technology, investment potential, and growth opportunities Aramco will bring and in contributing to global chemicals growth.

ADNOC sells 49% stake in ADNOC Gas Pipelines

Abu Dhabi National Oil Co (ADNOC) has entered into an agreement with a consortium of investors comprising Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board (Ontario Teachers), NH Investment & Securities and Snam (the Consortium) to acquire a 49% stake in the newly formed subsidiary, ADNOC Gas Pipelines. The stake is worth US$10.1bn.

Forthcoming events

Please go to page 18 to see upcoming events in your region

23 23

Asia Pacific news Regional update

Travel restrictions are still in place in most countries in the Asia Pacific region due to the COVID-19 pandemic. However, Azman several governments are Nasir now in talks to create what is called a ‘travel bubble’ which would allow some limited travel between countries deemed as having the pandemic under control. These countries include Malaysia, Singapore, Thailand, Vietnam, Brunei, South Korea, Australia, New Zealand, Taiwan and China. The agreements between countries will define the type of measures to be implemented for travellers between the countries, for example whether quarantine for 14 days will be required or whether the travellers need to provide proof that they are not COVID-positive. For other countries such as India, Indonesia, Pakistan, Bangladesh and a few others, the COVID situation is still pretty grim with the number of cases and deaths at worrying levels. For EIC APAC, the immediate impact is on the planned EIC Connect Indonesia 2020 which is scheduled for September 2020 and is looking less likely to be able to proceed. In place of physical events EIC APAC has actively been organising a series of live webinars since March 2020 and has now managed to conduct a total of 10 webinars. Our recent webinar was on Vietnam renewables, co-organised with the Department for International Trade of Vietnam, with three speakers. The British Ambassador to Vietnam, HE Gareth Ward and the CEO of EIC also participated by giving their opening remarks on the status of renewable projects in Vietnam. The other speakers were Farhana Borhanudin, EIC Regional Analyst, Denzel Eades from Pioneer International Consulting and Ian Hatton from Energy Enterprise. A total of 60 members and non-members participated in the webinar. Future webinars will follow a similar format with different countries. Among the countries we are focusing on include Australia, Indonesia, Taiwan, Thailand and South Korea. Apart from the country-focused webinars, we will also organise webinars on the topics of digitalisation, diversification from oil and gas into renewables and one on a regional EPC company. Azman Nasir Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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Regional news

US$20bn mega petrochemical complex gets government approval

Recent news has reported that China is reviving a US$20bn petrochemical project in eastern Shandong province as part of efforts to dial up infrastructure spending to support an economy struggling with the COVID-19 outbreak. The project includes a 400,000 bpd refinery and 3 mtpa ethylene plant in Yantai, Shandong. The project was proposed years ago but approval has been slow in coming because of China’s struggles with excess refining capacity. However, recently the National Development & Reform Commission (NDRC) has given the approval for the project to go ahead. Investment for the project is estimated to be around US$20bn and Shandong Nanshan Group will be the venture’s lead investor together with chemical group Wanhua and the Shandong provincial government.

India awards solar contract to Adani Green Energy

Adani Green Energy Limited (AGEL) has been awarded the first manufacturing linked solar agreement to develop 8GW of solar projects over the next five years, from the Solar Energy Corporation of India (SECI). The US$6bn contract is the world’s single largest solar development bid to date which uniquely will include Adani Solar establishing 2GW of additional solar cell and module manufacturing capacity. AGEL will develop 2GW of solar capacity by 2022, with the remaining 6GW coming online in 2GW increments each year through to 2025. The projects will bring AGEL closer to its target of achieving an installed renewable power generation capacity of 25GW by 2025 with an investment commitment of US$15bn in clean energy.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

@TheEICEnergy

EIC (Energy Industries Council)

South America news Regional update At the time of writing, the EIC team in Rio is still working from home, and has continued to organise EIC LIVE e-vents, which have been an excellent opportunity to stay in touch with our members and promote virtual networking.

Clariss

e Roch

The EIC South America team would like to ensure that members make the most out of the benefits that come with their membership, through EICDataStream and EICAssetMap training. Schedule your meeting with our team based in South America to understand how you can take more benefit from the EIC in the region and participate in one of our training courses. If you need assistance or advice in the region or for more information about upcoming events, please contact me. Clarisse Rocha Head of Americas clarisse.rocha@the-eic.com

Regional news

Guyana vote recount leads to political dispute

Guyana’s political upheaval shows no sign of receding following a decision by the country’s Elections Commission (GECOM) on 26 June to invalidate over 115,000 votes cast at the 2 March general election. The latest move from GECOM follows a vote recount carried out between May and June, which showed a victory for the PPP/C opposition coalition. After the invalidation of votes, however, numbers seem to indicate a victory for the ruling government. The Caribbean Community (CARICOM), the Caribbean Court of Justice and the international community have called on the Granger administration to respect election results. Guyana started producing oil for the first time in history in December 2019 and the resulting windfall is at the centre of the country’s political debate.

In June, the webinar Decommissioning in Brazil was held in partnership with the Department for International Trade, gathering almost 300 attendees. With almost 42% of the Brazil fleet aged 25 years or more and 15% between 14 to 25 years old, decommissioning of assets in country will demand over U$5bn investment according to Raphael Moura, General Manager for Operational Safety and Environment, ANP (Brazil Oil Regulatory Body). Nathan Biddle, Director, ABEP/IBP and Brazil Country Manager, Premier Oil presented on where Brazil was, where it stands now with the new resolution that has been launched by ANP earlier in 2020 and where we must focus now to improve. The webinar ended with a presentation from Joel Peito, Head of Business Unit - Método Potencial Engenharia, one of the companies already hired by Petrobras to work on the first project (Cação). He elaborated on the strategies used to be fully ready to supply and also the main gaps they see in the supply chain. Opened by Flavia Silva de Castro, Business Development Manager for DIT, the event was another successful EIC webinar. The recording of this webinar is available for EIC members. To book your place or take a look at our full events diary, please check our website, which is updated constantly.

Petrobras to sell assets in Ceará cluster

Brazil’s national oil company has announced the sale of the Atum, Curimã, Espada and Xaréu shallowwater oil and gas fields in the Mundaú basin, located in the north-eastern state of Ceará. The cluster, located 30km off the coast in water depths ranging from 30 metres, features nine fixed platforms and 32 production wells. The fields started operations in the 1980s and were mothballed in March 2020. Local sources indicate that Premier Oil, which has an E&P concession in the area, is potentially interested in acquiring the fields.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

The EIC and Robert Gordon University Rising Star MBA Award

Win a FREE MBA place worth £18,500 The EIC is proud to continue our partnership with the Robert Gordon University (RGU), Aberdeen, to present the EIC/RGU Rising Star MBA Award, an initiative designed to develop leaders of tomorrow in the energy sector. Does your team have a rising star? Nominate your colleague or peer today! The 2020 Rising Star award winner will be able to choose from three online courses:

Deadline for applications is Friday 14 August 2020. Winners will be announced at the EIC National Awards Dinner 2020.

MBA MBA Oil & Gas MBA Sustainability and Energy Transitions The Rising Star Award winner will receive 100% funding (worth £18,500) towards their chosen course. 2nd runner up prize is 50% funding to attend the chosen course. 3rd runner up will receive 25% funding towards their chosen course. Other eligible nominees will receive £1000 funding towards their chosen course. The winners will be able to join the online programme starting January 2021.

Winner of the 2019 EIC/RGU Rising Star MBA Award Brian Geddes (centre) of infrastructure solutions business px, with Ian Broadbent from RGU and Stuart Broadley

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EIC (Energy Industries Council)

North and Central America news Regional update The EIC Houston team hopes this month’s Inside Energy finds you healthy.

This month we celebrate 25 years of delivering intelligence, networking Amand a Duho and a place to call home n for our members across the North and Central America region. With over 350 EIC members in the region, we have been dedicated to delivering high value business intelligence, providing first class LaunchPad services, and have hosted many networking events via business presentations, corporate entertainment, and sector showcases; about 150 events over the last seven years alone. During our years in Houston, we have received the best of the UK supply chain, with trade delegations received in the US, Canada, Mexico and Trinidad & Tobago, exhibitions at conferences including OTC and in more recent years, our annual EIC Connect conferences introduced in the region in 2017. We are grateful to our incredible members, partners and stakeholders who have supported us year on year; and we look forward to another 25 years to come! In June, we delivered our Carbon Capture, Utilization and Storage webinar. Joined by our own Neil Golding, Director Business Intelligence, Nigel Jenvy, Global Head of Carbon Management at Gaffney, Cline & Associates, and Jane Stricker, Project Director at BP America, delegates received a global update on CCUS activity, challenges and opportunities to at-scale deployment of CCUS in the United States, and the key findings of the National Petroleum Council’s report ‘Meeting the Dual Challenge: A Roadmap to At-Scale Deployment of Carbon Capture, Use, and Storage’ commissioned by the US Secretary of Energy. The supply chain should prepare now to take advantage of the forthcoming opportunities within the sector. We were also delighted to be joined by James Bell, CEO of FoundOcean, for our LaunchPad to Success webinar, as he detailed how his company utilised EIC Houston LaunchPad services to grow and expand its business in the region. Having a local presence is crucial to winning business in the region, and Jim’s insight was very beneficial to delegates looking to expand their businesses to Houston. Keeping informed of all the latest project developments is vital in the fast-paced energy sector and we were honoured to be joined by Edward Hirs, BDO Fellow for Natural Resources during our EIC Houston Coffee Break on 26 June. Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Highly attended by EIC members and non-members, delegates received a detailed update on the current state of play across the oil and gas and renewables sectors, and a thought-provoking discussion of current energy related matters, including energy transition. In August, please join us for our latest EIC Houston Coffee Break webinar to hear from Stuart Broadley, Chief Executive Officer, EIC, who will provide exceptional insights from the latest edition of Survive and Thrive. This will highlight key areas for companies to focus on to ensure survival during these challenging times. Our next edition of EIC Connect Energy USA will be held on Tuesday 26 January 2021. We are appreciative of our sponsors Unger Steel, Hare, ARI Armaturen, BDO, iPS Powerful People, Pentagon Freight Services and Online Electronics, and look forward to hosting the organisational meeting of the distinguished 2020-2021 USA Advisory Board. If you wish to discover more about how your business can utilise EICLaunchPad services, please contact houston@the-eic.com Amanda Duhon Regional Director, North & Central America amanda.duhon@the-eic.com

Forthcoming events

14 August EIC LIVE e-vent: EIC Houston Coffee Break – Survive and Thrive Hear from EIC CEO Stuart Broadley on the latest edition of our Survive and Thrive Insight Report. Inspirational stories told by EIC member companies, including what leading energy companies are undertaking to prosper even during the market downturn and COVID.

24 September EIC LIVE e-vent: Hydrogen Potential within the Energy Transition Lloyd’s Register and the EIC invite you to hear from our panel of cross industry experts who will discuss the role hydrogen can play in the energy transition. It will focus on the opportunities and challenges of the hydrogen economy, and what role this sector will play in the future.

26 January 2021 EIC Connect Energy USA Norris Conference Centers, Houston Bookings now open. Take this perfect opportunity to meet leading operators and OEMs. Find out more about attending as a sponsor or delegate: www.the-eic.com/Events/EICConnect/EnergyUSA

North & Central America

25 HOUSTON

YEARS

Amanda Duhon presenting at EIC Connect Oil & Gas USA 2018

HMG and Texas Government opening the new office on 13 September 2016

Celebrating the end of EIC Connect Mexico Energy Forum in February 2019

EIC Connect Oil & Gas USA 2018 panel discussion with UKEF, Bechtel and Stuart Broadley

Former heads of EIC Houston, Kenley Clark, in 2009 and Aimee Marsh in 2012

Global Energy Outlook Market Update October 2016

The EIC Houston team at EIC Connect Oil & Gas USA September 2019

Mexico Market Update in July 2018 at Eaton

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EIC (Energy Industries Council)

20 Book your d 08:00 - 17:30 | Tuesday January 26 Norris Conference Centers | Houston | Texas 77024

ATTEND THIS EVENT TO DISCOVER CAPEX & OPEX OPPORTUNITIES ACROSS THE USA The EIC is delighted to be organizing EIC Connect Energy USA in Houston, the Energy Capital of the World, for its fourth year. Major operating companies and EPC contractors will present their buying policies and prequalification process to suppliers in a series of short seminars, carry out One-2-one meetings and network at the event to seek out new expertise. OUTLINE AGENDA

*Presenting companies carry out One-2-one meetings outside of their seminar times

Delegate networking VIP Meet & Greet between speakers & sponsors One-2-one meetings (speakers & delegates)

08:00 - 08:45 10:00 - 11:00 10:00 - 16:00

Keynote conference sessions View from the top/market outlook from leading energy companies

09:00 - 09:45 12:45 - 13:30

Operators/contractor presentations to vendors 20 mins simultaneous/parallel seminars

10:00, 11:00, 12:00, 14:00, 15:00, 16:00

CONFERENCE THEMES & SECTORS

Conventional Upstream oil & gas: decommissioning; exploration and field development, operations & maintenance Midstream: FLNG; FSRU; gas compression; gas gathering; gas processing; jetty loading facilities; liquefaction train; receiving terminals; storage, pipelines, terminals Downstream: chemical; heavy oil treatment; oil processing; petrochemical; refineries; storage and gasification New technologies and the energy transition: enhanced recovery; gas for power; onshore and offshore wind; carbon capture and underground storage

ATTENDANCE

Companies can register their individual place from just $400 which includes refreshments and lunch, presentation copies and the opportunity to book an appointment with at least one speaker company.

WHY ATTEND? Access the operator and contractor community Discover capex & opex opportunities across the USA Engage with key regional and sector specif ic decision makers Not-for-prof it initiative organised by the leading energy trade association

Energy Industries Council The EIC delivers high-value market intelligence to members through its online energy databases, and via a global network of staff who work in-the-field to provide qualified regional insight. The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally. Established in 1943, the EIC has a membership of over 650 companies who deliver goods and services to the energy industries worldwide. www.the-eic.com

EXCLUSIVE EXPOSURE AMONGST THE EICâ&#x20AC;&#x2122;S NETWORK PROMOTE YOUR CAPABILITIES TO OPERATORS AND KEY CONTRACTORS

021 SPEAKER PROGRAMME TO BE ANNOUNCED SHORTLY! delegate place now to secure a One-2-one appointment at the event Presenting companies will announce new project opportunities for the vendor community and update smaller businesses on current and future market conditions.

Gerry O´Connor Ian Dunderdale Executive Director, Asset Value Assurance Oil, Gas and Chemicals Global Business Unit Manager of Procurement

2019 Speakers

Robert Nussmeier Vice President

Vince Morrisette Commercial Director

Najib Kandala Director, Business Development

Boyd Howell Director of Sales & Marketing

Iain Murray VP Strategy & Business Development

Cameron Boyd Director of Engineering

John Mika Supply Chain Director

Carl Newton Vice President - Supply Chain

Kristy Bellows General Manager, Onshore Oil & Gas

Paul Capos Group Director, Supply Chain

“The Bechtel presentation was an excellent insight into the opportunities available to the supplier community.” Alan Campbell, Vantrunk Abnormal Load Engineering Limited ALE ALMACO Group Baker Hughes, Process & Pipeline Services Bechtel Ltd Blue Water Shipping UK Ltd BMT Group Bray Controls UK Limited Bray International Incorporated Bureau Veritas UK Ltd Carpenter & Paterson Ltd Castrol Offshore Ltd CETCO Energy Services Ltd CiTECH Energy Recovery Solutions UK Limited Department for International Trade (DIT) Deugro (United Kingdom) Ltd Eaton MEDC Ltd Eutex International Evoqua Water Technologies Fike UK FoundOcean Limited Fugro Fulkrum Technical Resources Ltd Geodis Wilson UK Ltd

Global Maritime Consultancy Limited GWC Italia HKA Global Ltd Honeywell Analytics Ltd Honeywell, Home and Building Technologies Hydrasun Ltd iPS - Powerful People James Fisher Offshore Limited Kiewit Kuehne + Nagel Ltd Liquefied Natural Gas Limited (LNG Limited) Lonestar Fasteners Europe Ltd Marathon Oil McDermott Marine Construction Ltd Metal Technology Co. Ltd. Modec MRM Technical Services Limited Orion Engineering Services Ltd Oseco Pall Europe Ltd Park Brown International Pentagon Freight Services PLC Pepperl + Fuchs GB Limited Peterson (United Kingdom) Ltd Petrofac Facilities Management Ltd Pipeline Technique Ltd

2019 Delegates

PJ Valves Pro Box Inc. Proactive Change, LLC Prysmian Cables & Systems Ltd Saxum Strategic Communications, LLC ScanTech Offshore Ltd Schenker Ltd Scottish Development International (SDI) Siemens PLC Sonardyne International Ltd ATTEND Subsea 7 FROM The Mosaic Company $400 Trinity Integrated Systems Ltd TUV SUD Ltd Vantrunk Limited Vee Bee Filtration UK Ltd Vulcanic UK Ltd SPONSOR Watlow Limited FROM WEG (UK) Ltd $995 William Hare Ltd Wood Group UK Ltd Worley Europe Limited WorleyParsons Services UK Ltd Wozair Limited WTS Energy UK Ltd

Book online www.the-eic.com

COP26

INNOVATIVE

The UK has a global reputation record in innovation and techno

British companies have called f despite COVID-19 and invest in transition revolution.

With the right support, SMEs c energy landscape.

2050

2020

COP26 COUNTDOWN With time running out, what does industry want government to pitch at COP26?

TIMING IS E

Global climate protests. Investo a need to change the way we o

While COVID-19 has presented provided a unique opportunity

The UK needs an energy transiti commitments.

COP26 is the perfect platform sustainability and associated te

Get in touch Share your news and views...

Email newsdesk@the-eic.com â&#x20AC;˘ Phone +44 (0)20 7091 8600

E SUPPLY CHAIN

n for quality, with an energy supply chain that has a proven track ology.

for the government to commit to its climate pledges n UK capability and local content to kick-start an energy

can innovate and scale up to transition fast to a new

ENERGY TRANSITION ROADMAP

With the energy sector at a major crossroads, the role of government has never been as important. Businesses large and small are calling for a realistic roadmap that brings industry and government together to plan, invest in and implement the UK’s energy future. That requires the UK to act fast to kickstart a transition that requires consistent policy and funding, with COP26 the perfect platform to pitch British ambition and expertise as a leader to the world. Carbon pricing must be considered, both on bad behaviours and imports, while Brexit provides an opportunity to bolster UK content. UKEF could play a key role if given the support in a future wave of clean energy exports.

UK COMPETITIVENESS

For the energy transition to be taken seriously, adopted widely and to become the new normal, it must be economically viable. Currently, the financial model of many energy transition technologies – many of which are still in their infancy – is not clear. UK competitiveness in a fiercely competitive global environment will require tax advantages, a circular economy, and a global agreement on competition.

INTEGRATED ENERGY POLICY

An integrated energy policy, embracing all energy technologies including nuclear, is a fundamental step the government should take to ensure the success of COP26. There will undoubtedly still be a need for oil and gas in the UK’s future, and this unique capability should be protected rather than abandoned to ensure the UK supply chain fully transitions to the new technologies of hydrogen, CCUS and floating offshore wind. Learning from past funding mistakes, including in offshore wind, will be key to ensure energy transition leads to future export success.

EVERYTHING

or pressures. Increasing oil price volatility. All are clear indicators of operate and be a part of the solution and not the problem.

d vast challenges and difficulties for the energy sector, it has also to enable permanent change in business for the better.

ition roadmap to ensure it meets its 2050 net zero carbon

for the UK to pitch its global ambition for decarbonisation, echnologies.

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EIC (Energy Industries Council)

BO O NO KI W NG

EIC NATIONAL

DINNER 2020

22 OCTOBER

New venue Join us at the iconic De Vere Grand Connaught Rooms for a glamorous night of networking, entertainment, awards and great food in a truly palatial setting. Just five minutes from Covent Garden and Holborn tube stations this venue offers excellent transport links and accommodation options for you and your guests.

THE UK’S PREMIER ENERGY INDUSTRY EVENT Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.

Your guest speaker The no-nonsense, legendary comedian that is Jimmy Carr is set to return to the EIC National Awards Dinner after first appearing on our stage in 2017. He’s back to deliver an afterdinner speech that’s guaranteed to entertain and is not for the faint-hearted.

Take advantage of this unbeatable early bird offer to host and entertain your own VIP guests at an unforgettable evening. Cost Table of ten: £1,990+VAT Individual place: £199+VAT

Awards ceremony

Corporate hospitality is a great way to help improve relationships within your network. Contact Jamie Lowes, EIC Sales Executive, to find out how to exceed your client’s expectations and differentiate yourself from the competition. +44 (0)7581 152 092 jamie.lowes@the-eic.com

The EIC awards ceremony will recognise companies which offer a product or service with a positive and significant effect on the UK energy supply chain. Details of award categories and how to enter can be found on the website here: www.the-eic.com/Events/ EICNationalAwardsDinner/Awards

BOOK TODAY

T: +44 (0)1429 874 450 E: nationalevents@the-eic.com www.the-eic.com/nationaldinner

Sponsorship opportunities

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EIC Survive & VOLUME IV

EIC Survive and Thrive success stories 2020 to our EIC member companies Thanks

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EIC (Energy Industries Council)

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Success Successstories stories

3M Science Applied to Life

How is 3M thriving? 3M’s Advanced Materials Division has a unique approach to innovation and customer collaboration and is able to transfer technologies across diverse industries and applications, from applying friction technology used in Formula 1 cars to increase torque in wind turbines, to applying ballistic ceramic technology for sand control screens in oil and gas projects.

The challenge The oil and gas industry has a conservative approach to innovation. New technology can take up to a decade to become adopted in O&G markets, whereas sectors such as aerospace, automotive and defence tend to adopt new solutions much quicker.. Collaboration among the energy supply chain is not always optimum, which leads to missed opportunities to innovate and create solutions to meet industry challenges.

The solution Since its early days in Minnesota,

3M has been working to develop new technologies to solve industry challenges. A materials science company at heart, 3M uses its expert know-how and broad technology base to work with customers’ to innovate and develop disruptive technology to solve problems and give clients a competitive advantage. 3M’s secret weapon to achieve this is found in the company’s extensive workforce. More than 10,000 engineers innovate and collaborate in a virtual technical forum which is dedicated to solve a wide range of technical challenges, without aligning to specific business segments. The company’s 15% rule – a 50-year internal practice also allows engineers the ability to use 15% of their time on ‘pet’ projects – a valuable tool for boosting the introduction of innovative solutions for example the famed ‘postit’ notes. In the energy market, 3M has spent the last few years focusing on solving technical challenges amid difficult market conditions. Balancing work between CAPEX and OPEX, the company has

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been instrumental in offering innovation to the oil and gas and renewables sectors through its Advanced Materials Division, which has been the company’s fastest-growing business in the UK during the last three years. In the oil and gas sector, 3M disrupted the upstream downhole sand control market by developing an improved sand control system using silicon carbide ceramics material instead of a traditional metallic sand screen. Working with a number of National and International Oil Companies, 3M’s Ceramic Sand Screens are used in a wells which had been compromised due to sand ingress. 3M’s Ceramic Sand Screens can withstand very high erosion rates and extend the life of impacted wells. In the renewables market, 3M transferred technology used in Formula 1 motor racing to the wind segment. The company has developed a friction shim which, when placed between joints on wind turbines, increases friction coefficients without adding bolts or increasing component sizes. This solution currently being tested

Success stories stories Success

by various OEMs, has unlocked potential for light-weight nacelles and towers, while reducing transport and installation costs. 3M has an open door to working with the energy industry to drive innovation success. The company sits down with customers with a view to understand their problems and environments up front, aligning solutions and ideas to tackle their issues and make them more efficient. This collaborative approach is not limited to clients but extends to any supply chain player facing technical or materials problems they can’t solve – they only need to ask. In the end, 3M’s culture is more than just innovation, it’s innovation that helps businesses and people.

A major industry player that has been listed as the World’s Most Ethical

Company for three years in a row, 3M is a science-based technology company that is committed to improving lives and doing business in the right way. Active in several countries with over 90,000 employees and 200 manufacturing plants, 3M is split into four main business groups: consumer products, healthcare, safety and industrial and transportation and electronics. These divisions offer a wide range of well-known products, from post-it notes to personal protective equipment (PPE) and beyond. The company’s Advanced Materials Division, meanwhile, is involved with nanomaterials, technical ceramics and polymers, among other products.

Story type

Key findings

#innovation (main category)

For industry

#technology #collaboration

• Drive a culture of innovation and share results with the rest of the industry • Allow time for technical employees to grow and collaborate in a way that drives innovation • SMEs should use routes such as Catapult or InnovateUK to get started • Adopt a collaborative approach with clients

About 3M

Benefits • Collaborative approach yielding benefits for the whole supply chain • Development of cutting-edge technologies that tackle industry issues

Energy transition lessons • The supply chain has a role to play in solving energy transition issues and making technology more financially viable

3M at a glance: Key products and services: multinational manufacturing conglomerate active in various industry segments Main industries served:

For government • Engage with supply chain to tackle technology and innovation issues

Government support? 3M’s UK subsidiary benefits from Apprenticeship Levy.

• Oil & Gas, Aerospace, Automotive, Renewables, Construction Headquarters: Maplewood, USA Year established: 1902 Number of employees: 96,000 (2,000 in the UK) Revenue: US$32.2bn Revenue from exports: 70%

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EIC (Energy Industries Council)

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Success Successstories stories

A&P Group Leveraging core capabilities to diversify How is A&P Group thriving? The UK’s largest commercial ship repair business, A&P is continuing its diversification strategy after the 2014 downturn in the oil and gas market, focusing on Renewable Energy sectors such as offshore wind and Nuclear new build.

The challenge A&P’s objectives remain unchanged since their story in the previous Survive and Thrive report: To diversify into new markets whilst maintaining its core marine business. The company has one of the largest Fabrication and Machining facilities in the UK, but it is still a best-kept secret beyond the marine industry. How can the company’s great facilities, secure sites, massive fabrication and machining service capabilities be applied in other segments?

The solution A&P has reinforced its strategy to de-risk and diversify, particularly into the nuclear and renewables sectors. Benefiting of one-stop-shop capabilities at all its sites, the company is working to collaborate with clients beyond the marine industry and create new relationships. This process has also involved a change of culture: A&P Group has deployed a programme of transformation to achieve the quality compliance required by industries beyond shipbuilding, possessing well-structured systems and demarcation zones. In the nuclear sector, A&P Falmouth has successfully obtained the Fit For Nuclear (F4N) status by the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC) in November 2019. A&P Falmouth operates one of

the most comprehensive machining facilities in the UK and is a renowned centre of engineering excellence. Over the last two years, A&P Falmouth has undergone a series of rigorous and challenging quality and cultural assessments, invested heavily in staff training and infrastructure and embedded nuclear safety culture into every aspect of its operations. By being granted Fit 4 Nuclear status, A&P Falmouth is now able to demonstrate its intent in supporting The Hinkley Point C (HPC) nuclear power project with MEH Fabricated and machined Packages to the highest quality levels. A&P Falmouth complies with the most exacting standards of quality and HSE and is able to support tier one and two contractors with in-house design, engineering and fabrication expertise as well as a large on-site machine shop, which can produce large turbine shafts, bearing shafts and turn-buckles to Quality Grade 1 specifications. The facility has a track record of supporting the nuclear community – projects include a six-week overhaul of two steam turbines for Ansaldo Energia as part of its service agreement for

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power station outage activities with Centrica at Langage Power Station in Plymouth. The Hinkley Point supply chain are also benefitting from A&P Falmouth’s port facilities to store and assemble key equipment for Hinkley Point. Recent projects include the leasing of A&P Falmouth land to aid the assembly of a new gantry system, which will be used to transport aggregate supplies to the shore and over an existing pier at the new Hinkley Point Power Station. A&P Group’s momentum is not limited to the nuclear sector. In 2020, A&P continues to make strides in supporting the offshore wind sector. A&P’s three facilities in Tyne, Tees and Falmouth provide marine services to the offshore sector and has the expertise to deliver complex, technically-challenging projects and services including vessel mobilisation & demobilisation, major ship conversions and ship repair, module fabrication and subsea structure fabrication. A&P Tyne is perfectly located to offers extensive fabrication services to the offshore wind farms off the east coast

Success stories stories Success

of England. A&P’s site in Falmouth is superbly located to support renewable activity off the south west coast of England. The combination of A&P Group’s extensive skills, port facilities, fabrication and engineering capabilities and marine service facilities make A&P an ideal partner for developers and contractors in the offshore market. A&P is working with key stakeholders such as Energi Coast to further the ambitions of the industry and support the Offshore Wind Sector Deal and similar to the F4N accreditation, the company is keen on obtaining the Fit For Offshore Renewable (F4OR) credential.

production line, providing gains with regard project schedule and repeatability. A&P has established its credentials beyond the marine market. The company has developed a reputation of being more than a shipyard - , having obtained F4N approval and getting ready for F4OR accreditation. A&P is receiving enquiries and securing new clients, leveraging its repair and fabrication capabilities into new sectors.

and gas, offshore wind, nuclear and defence.

A&P is experiencing success across the market. A&P Tyne has recently delivered a contract with Farrans for the design and fabrication of six 263-tonne pontoons for the Galloper wind farm’s operations and maintenance base at the Harwich International Port in Essex. The company used a marine fabrication

A&P is the UK’s largest ship repair, conversion and marine specialist, with a history of quality-driven engineering and marine excellence spanning six decades. Operating seven dry docks at THREE key locations in the country (Falmouth, Tees and Tyne), the company provides repair, fabrication and general engineering support services to the commercial marine, oil

In the fabrication segment, A&P GROUP’S expertise spans subsea and floating structures, topsides, foundation structures, pressure vessels, substations and wave and tidal devices. The company also has significant expertise in the fabrication, pre-commissioning and direct load-out of modularised offshore structures. Using in-house capabilities and a strategic local supply chain, A&P Group are proud to be able to provide a complete integrated supply package across a range of engineering skills from structural, piping and mechanical, through to electrical and instrumentation work.

Story type

Key findings

A&P at a glance:

#diversification (main category) #culture, #optimisation, #transformation

For industry

Key products and services: Ship repair and fabrication services

Benefits • Diversification strategy yielding contract awards in renewables and power segments

About A&P Group

• Be determined and stay on course • If you are not compliant and ready to work in an industry sector, you won’t succeed • Without the right culture and attitude, you will fail • Know your market and your customer For government • It’s critical to define an energy policy, including the role of nuclear power

Main industries served: • Defence – 40% • Commercial marine – 30% • Renewables – 20% • Civil engineering and infrastructure – 10% Headquarters: Hebburn, UK Year established: 1953 Number of employees: 650 Revenue: £120m Revenue from exports: 0%

Government support? A&P has benefited from the Apprenticeship Levy as well as R&D tax credits. The company has also undergone Fit4Nuclear training and approval.

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EIC (Energy Industries Council)

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Success Successstories stories

Advanced Insulation Staying profitable in oil downturns

How is Advanced Insulation thriving? The company made three smart decisions following the 2014 crisis in the oil and gas sector: diversify beyond deep-water oil and gas into new segments; reduce direct costs while protecting margins and innovative culture; and keep investing in sales and R&D throughout the process.

The challenge The 2014 downturn in the oil and gas market had a negative impact for the whole industry, but Advanced Insulation was particularly affected. Approximately 72% of the company’s revenues derived from deep-water oil and gas projects, which were the first to be shelved during the crisis. Meanwhile, competition grew stronger and ‘saving costs’ became the industry’s new motto. Advanced Insulation’s revenues and profits were falling and margins were under constant pressure.

The solution Advanced Insulation had to address two key issues: over-reliance on deep-water O&G projects and massive margin pressures. Diversification was the answer to the first challenge. Benefiting of an easily adaptable product portfolio, the company targeted sectors beyond upstream O&G, including downstream, onshore E&P, renewables and LNG. Indeed, even the automotive sector presented an opportunity – Advanced Insulation also got involved in fire protection for electric vehicles. As a result, upstream O&G revenues fell from 72% in 2016 to 50% in 2020. Regarding margin pressures, Advanced

Insulation knew it had to drive down costs quickly if it wanted to maintain its market share. The company reduced direct costs by 15% over two years – a bold move considering that the company was highly dependent on material costs. This was achieved through product substitutions, innovative ways of working and reduced manpower. Contrary to common sense, however, the company increased its sales force and maintained R&D-related headcount and spend throughout the whole recovery period, as this would be an advantage when the cycle turned for the better. Results were clear: after a 2% drop between 2016-17, margins grew by 6% in 2019. A key example of Advanced Insulation’s diversification strategy – and a direct result of the decision to grow sales capabilities – is an opportunity to work on the Arctic LNG 2 project in Russia. The project scope included

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the construction of large gravitybased structures featuring LNG and condensate storage. In early 2018, Advanced Insulation started discussions with EPC contractor TechnipFMC to demonstrate how the ContraFlame MS400 and C50 insulation systems would meet project specifications. The two solutions were specified for the project and are now being used in the fabrication of the structures. Two key advantages led TechnipFMC to specify the products: massive weight savings (estimated at 670 tonnes per GBS) that allow easier GPS positioning; and a 40year design life, with low maintenance requirements. Advanced Insulation’s story is about how to stay profitable during challenging times. The company diversified aggressively and successfully beyond oil and gas into LNG, automotive and renewables, while protecting margins with a

Success stories stories Success

targeted cost-reduction focus. Revenues increased from the £33m low point in 2018 to £41 million in 2019 and the forecast for 2020 is £60 million. Although those were difficult times, the company is proud of the fact that it stayed profitable throughout the whole process. With an innovative business culture, Advanced Insulation continues to protect life, infrastructure and vital assets on land and sea by providing advanced fire protection, insulation, buoyancy and marine products.

systems, buoyancy and SURF products (subsea, umbilicals, risers and flowlines) to the offshore and onshore oil and gas industry. The company has achieved exceptional growth both in the UK and overseas through growing demand, increasing turnover from £3m in 2008 to £33m in 2018. The company has a strong international footprint, with a number of facilities in the UK and further facilities located in Angola, Brazil, Kazakhstan, Korea, United Arab Emirates and the United States.

About Advanced Insulation Advanced Insulation is an established global leader in the engineering, manufacture and application of insulation and passive fire protection

Story type #diversification (main category) #innovation #optimisation #service/solutions #transformation

Benefits • 46% increase in revenues • Successful diversification from subsea insulation into LNG and buoyancy

Key findings

For government • Increased effectiveness is needed for SMEs willing to export • UK Export Finance must be more agile and less bureaucratic • Climate change goals become coherent for the wider industry when a plan to achieve them is presented and discussed

Government support? In addition to R&D tax credits, the company benefits from the Apprenticeship Levy. Advanced Insulation has used bank guarantees provided by the UK Export Finance.

For industry • There is no silver bullet. You must be determined to achieve your final goal • Objectives must be clear and wellcommunicated • Risk-taking is essential, but so are mitigation plans in case things go wrong

Export lessons • Get a clear product offering that is not already available in target markets • Good relationships and a good understanding of how the country works is essential

Energy transition lessons • Energy transition sectors such as LNG and renewables can provide valuable diversification opportunities

Advanced Insulation at a glance: Key products and services: fire protection, insulation, buoyancy and marine products Main industries served: • • • •

Upstream Oil & Gas – 50% LNG, Downstream/Refineries – 30% Marine – 10% Others – 10%

Headquarters: Gloucester, UK Year established: 1993 Number of employees: 320 (200 in the UK) Revenue: £41 million Revenue from exports: 70%

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EIC (Energy Industries Council)

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Aker Solutions Securing a sustainable future in key export markets

How is Aker Solutions thriving? The company has achieved rapid start-up success in the UAE market with ADNOC’s Dalma project. Aker Solutions has focused on building trusting and sustainable relationships, while leveraging the technology advantages of its umbilical products.

The challenge In the early 2010s, Aker Solutions realised they were not as global as

they would like to be. Opportunities in the UK and Norway were dwindling and showed no prospects of recovery in the near-term. The Middle East, on the other hand, was seen as an up and coming market with much better growth prospects. The 2014 oil and gas market crisis provided increased impetus for the company to seek new opportunities in the Middle East, but how would they do it?

The solution Establishing a business in the Middle

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East required local knowledge. Aker Solutions decided to hire Stewart Highett, a seasoned energy professional with a large experience in the region, to spearhead the company’s entry strategy in the Middle East. Stewart had been travelling there since 1999, building key relationships with local industry players. Upon joining Aker in 2017, Stewart put his strategy in motion. He decided to depart from old sponsors, but in a way that did not upset relevant contacts in the region. In a careful due diligence

Success stories stories Success

process, Stewart worked on finding new sponsors for Aker’s business in the Middle East while building brand awareness, taking the time to consult the UK and Norwegian governments, as well as ADNOC, that its strategy was on the right path. Indeed, it was: thanks to Stewart’s network of contacts, Aker secured in 2018 a US$5.5m contract for refurbishment work on the Sagar Samrat project by ONGC. A ground-breaking business opportunity in the Middle East, however, would come with a large ADNOC project in 2019. The NOC was unaware of Aker at the time, but the Norwegian company positioned early with FEED and PMC contractors TechnipFMC and KBR, respectively. Being registered with ADNOC was a requisite for the company’s technical specification, however, and TechnipFMC was not keen on making an exception for Aker.

Stewart was eventually able to open access to Aker. ADNOC convinced TechnipFMC to allow the company on the list of suppliers, clearing the way for them to join ADNOC tenders. After working with technical evaluation teams and showing areas for improvement, Aker was eventually awarded an US$80m contract for the supply of 105km of subsea umbilicals for the Dalma project – the first ever direct purchase of umbilicals by ADNOC.

Leveraging his network of contacts within ADNOC as well as sponsors,

The latest opportunity with ADNOC enabled Aker to achieve its five-year business plan for the Middle East in Year 1. The company’s technical quality and ability to deliver the equipment on time were key factors behind ADNOC’s decision, combined with Aker’s understanding of ADNOC’s budget and service expectations. The contract award for Dalma – the first of four upcoming projects – was also key to position the company in the local market. Having succeeded in establishing a presence in the Middle East, Aker today looks forward to

Story type

Key findings

#export (main category) #innovation

For industry

future opportunities with ADNOC and other local players, benefiting from its quality, competitive offers and ability to meet challenging schedules.

About Aker Solutions With over 179 years of experience, Aker Solutions helps the world meet its energy needs. The company engineers products, systems, software and services required to unlock energy. The company’s experience spans shallow to ultra-deep waters and tropical to arctic conditions. From subsea to surface and concept to decommissioning, Aker Solutions’ technical expertise and strong partnerships provide energy companies what they need to succeed. Aker Solutions has 12,000 employees in about 20 countries around the world – all embracing innovation and collaboration in a drive to create a sustainable future.

Aker Solutions at a glance:

Benefits

• Never underestimate the value of relationships • Trust your instinct

• Successful entry in the Middle East O&G market • US$80m contract award

For government

Key products and services: provider of products, systems and services for the energy industry Main industries served: Oil & Gas – 100%

• The government should make it easier for projects to go ahead with the means available (e.g. tariff support, tax advantages)

Government support?

Headquarters: Oslo, Norway Year established: 1841 Number of employees: 12,000 (1,200 in the UK) Revenue: US$2bn Revenue from exports: 75%

Aker has benefited from the Apprenticeship Levy as well as R&D tax credits. The company has also received innovation grants.

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EIC (Energy Industries Council)

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Alderley Family business culture driving export success

How is Alderley thriving? The company’s family business culture was key in guaranteeing success in Saudi Arabia, where Alderley has become the leading oil metering provider. Collaboration with clients, investment during downturns and valuable support from UK Export Finance (UKEF) were instrumental in Alderley’s success story.

The challenge The oil and gas market has gone through major changes over the last two decades. An ageing UKCS market has led oil majors to seek opportunities elsewhere, reducing O&G-related capital expenditure in the country. Market stagnation led to increased competition especially with commoditised products and lower margins for the whole supply chain. Oil and gas component manufacturers, meanwhile, were undergoing a transition to system integrators. A company that originally flourished off the back of E&P activity in the North Sea, Alderley had to look at new ways of doing business if it wanted to sustain its growth and thrive in the oil and gas market.

The solution Alderley knew that the UK oil and gas market was finite, and the company took early action to stay ahead of the game. Alderley started doing business in Saudi Arabia since 1999 and the company was fully aware that they were only scratching the surface of the massive opportunities presented by one of the world’s largest oil and gas producers.

Growing opportunities led Alderley, a family-owned business, to make the bold decision to invest in a manufacturing facility in Dubai in 2001. From this Middle East base, the company was able to supply its oil and liquid metering systems to its customers across the Saudi border. This was close to the Saudi market, but not close enough. Localisation became increasingly frequent across international energy markets and Saudi Arabia was no different. In order to stay ahead of the competition and loyal to its culture of customer intimacy, in 2007 Alderley invested £2m in a manufacturing facility of metering systems in Dammam. Originally a branch of the Dubai office, Alderley’s Saudi base quickly became one of the country’s key supplier of metering systems.

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Alderley’s Saudi story would see an additional chapter. In 2016, at the peak of the oil price crash, the company made a £4m investment to set-up a new 9,000sqm facility in Dammam. It was a massive investment for a family business and carried out enormous risks, but the decision was made for the right reasons: in December 2015, Saudi Aramco launched the In-Kingdom Total Value Add (IKTVA) programme, which aims to boost local content of energy-related goods and services. Alderley was not a shop window in Saudi Arabia, but an established player deploying the best people and technology to serve the local market. The expanded Saudi facility went beyond Alderley’s traditional offering. Working closely with Saudi Aramco, Alderley innovated by introducing

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modular wellsite skids. This solution includes a complete wellsite control and safety process system with digital technology – all integrated onto a single skid. This provides a fully tested, ready-to-operate and easily transportable module to support a prompt installation and fast start-up. Alderley’s expansion into Saudi Arabia proved hugely successful. A third of Alderley’s revenues are associated with Saudi Arabia and the company’s Dammam site now employs 72 people, of which 16 are Saudi nationals. Today, Alderley is the primary supply partner for metering, custody transfer and modular wellsite skids to Saudi Aramco. Current market conditions continue to pose challenges – but Alderley faces them upfront. Competition continues to grow, but the company’s long-term commitment means that weaker

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players are flushed out. Having successfully entered two markets in the Middle East, Alderley now looks at the future. From Sub-Saharan Africa to the Asia-Pacific region, the company is encouraged to find new opportunities and thrive in challenging markets.

About Alderley From humble beginnings as a single workshop in Wickwar, Alderley has grown to become a leading provider of skid-mounted, integrated solutions for the global energy industry. The company was initially established to deliver innovative metering systems for the challenging North Sea environment, but now Alderley applies its vast experience and unrivalled technical capabilities across their entire range of skid-mounted solutions. Repeatedly partnering with some of

Export lessons

For government

• New sources of revenue following internationalisation • Collaboration yielding new industry solutions

• Promote UK capabilities more effectively • Trade delegations can be expensive and frustrating for SMEs. They should provide more value in terms of meetings and contacts • Stronger commitment and investment are needed in carbonreducing technologies (such as carbon capture, utilisation and storage) as well as a continued focus on low carbon sources

Key findings

Government support?

For industry

Alderley has benefited from R&D tax credits as well as the Apprenticeship Levy. In addition, the company has been supported by UK Export Finance (UKEF).

#internationalisation (main category) #collaboration #digital #service/solutions

Benefits

• Take calculated risks • Stay true to your values and what makes you special • Understand market dynamics • Have a strategy, but be prepared to be flexible and agile during the journey

the biggest names in the industry, Alderley’s solutions – including Metering, Produced Water Treatment, Wellhead Controls, Modular Wellsite Skids, Chemical Injection Systems, Surge Relief and Control Systems – have been installed in onshore, offshore and floating applications across the world.

• Invest in understanding target markets • Getting close to the customer and understanding their needs is key • Find trusted, knowledgeable partners • Obtain support from UK Export Finance (UKEF)

Alderley at a glance: Key products and services: provider of skid-mounted, integrated solutions for the energy market Main industries served: • Upstream Oil & Gas – 100% Headquarters: Wickwar, UK Year established: 1989 Number of employees: 370 (215 in the UK) Revenue: £76m Revenue from exports: 90%

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AqualisBraemar Driving energy transition

How is AqualisBraemar thriving? Supporting clients in various energy and maritime segments, the newly merged company has bold plans to step change business value by taking a leading role in the environmental, social and governance (ESG) area.

The challenge AqualisBraemar has experienced a game-changing decade. Starting off as a purely offshore business as Aqualis, the company was previously focused on offshore-related services including warranty and engineering work. A new market environment led the company to acquire Offshore Wind Consultants (OWC) in 2014, which increased Aqualis’ foothold in the renewables market. This was followed by the acquisition of business lines from Braemar in 2019, paving the way for the formation of the AqualisBraemar group.

These changes were transformational. The company doubled in size and increased its scope of activitities but somehow AqualisBraemar could look like a collective of separate companies.

Synergies were delivered and growth has happened, but there was no significant positive impact to share price. A review of the company’s common purpose and strategy was essential if they wanted to lead and take advantage of opportunities created by today’s rapidly changing energy market.

The solution In November 2019, AqualisBraemar started discussions on how to realign the company for the future. Discussions and workshops involving executive and management teams took place with a view to get a better understanding of how the company could leverage its oil and gas, renewables maritime and power & utilities expertise to tap additional business opportunities and deliver a single message in a world going through an energy transition process. This exercise led to the introduction of the AqualisBraemar 2030 strategy.

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In addition to bold targets including the implementation of environmental, social and governance (ESG) reporting anchored in UN principles, a clear goal is to continue to grow, innovate and develop new services to both accelerate and de-risk the energy transition while creating business value. It was recently announced by the board that AqualisBraemar would grow revenues in renewables and other ESG ‘friendly’ services to 50% by 2025. A de-risking opportunity in more carbon-intensive sectors, meanwhile was presented to AqualisBraemar in late 2019. The company was awarded a marine warranty survey contract (MWS) by COOEC for decommissioning work of platform topsides and jacket at the SKL-C field - the first ever jacket removal in the Gulf of Thailand. AqualisBraemar’s scope included document review, MWS attendance for towage approval of material barges, topsides and jacket removal and towage approval from offshore field to the dismantling yard.

In the renewables segment, meanwhile, AqualisBraemar’s Offshore Wind Consultants (OWC) business is experiencing rapid growth. In 2019 the company worked on 27 wind farm projects with a combined future installed capacity of 19GW, with a 46% revenue growth in this segment compared to 2018. OWC has a rich track record in helping developers such as Iberdrola, which in early 2017 awarded OWC a framework agreement to provide engineering and project management services for various offshore wind farms in East Anglia, such as the c€3bn, 714MW East Anglia ONE (EA1) project. Following its formation in June 2019, fast-growing AqualisBraemar is positioning to benefit from growing energy transition opportunities in the renewables, maritime, oil and gas, and power & utilities markets. The company’s OWC division continues to thrive, growing steadily since its acquisition in 2015. A purely offshore business in the past, AqualisBraemar

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Government support?

#energy transition (main category)

AqualisBraemar has joined DIT renewables trade delegations to Japan and Taiwan. The company has also received R&D tax credits.

Benefits • 46% revenue growth in renewables segment in 2019

Key findings For industry • Energy transition and Internet of Things (IoT) present a massive opportunity • Combining these trends in energy generation creates a lot of potential

is rebranding itself as an Energy Transition leader, driving this process in energy and marine segments across the world.

About AqualisBraemar Formed in 2019 following the acquisition of three business lines from Braemar by Aqualis, AqualisBraemar is an independent consulting company offering loss adjusting, marine, offshore and renewables consultancy services to the energy, shipping and insurance industries. The group employs specialist engineers, naval architects, master mariners, loss adjusters and technical consultants in 160 locations, 50 offices located across five continents in 35 countries. The company operates under three distinct brands globally – AqualisBraemar, AqualisBraemar Yacht Services and Offshore Wind Consultants (OWC).

AqualisBraemar ASA at a glance: Key products and services: independent consultancy services Main industries served:

Sustainability and diversity lessons • Sustainability actions are not about ‘greenwashing’. A genuine purpose is required, as well as a link to operational benefits. • Engage employees in social and energy transition projects to help attract and retain talent

For government

• • • •

Offshore Oil & Gas – 49% Marine – 26% Renewables – 13% Adjusting - 12%

Headquarters: London, UK Year established: 2012 (AqualisBraemar formed in 2019) Number of employees: 423 (50 in the UK) Revenue: US$73.4m (combined revenue) Revenue from exports: 90%

• Work towards a global agreement on international carbon pricing

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Aquaterra Energy Intelligently Engineered

How is Aquaterra Energy thriving? The company’s smart decision to adopt a counter-cyclical market strategy has opened diverse global markets across greenfield and brownfield projects in the oil and gas sector by offering flexible EPC options to suit each client’s unique infrastructure and budget needs.

The challenge During the last downturn in oil and gas prices, conventional wisdom suggests that industry players refrain from announcing new greenfield projects, final investment decisions (FIDs) are postponed and supply chain players bear the brunt of the crisis and try to survive until market conditions improve. But is this correlation valid for all oil and gas projects?

The solution In Aquaterra Energy’s view, the market offers a broader range of opportunities. The company did not overcome the last crisis unscathed, but it developed a counter-cyclical strategy which proved valuable during the crisis. Many projects were being cancelled back in 2015-16, but Aquaterra Energy saw that some project enquiries were still coming in at that time. The company started to analyse why these projects were still proceeding despite the downturn and began searching for opportunities with similar characteristics (using EICDataStream as its source of data). Aquaterra Energy’s research showed that while some operators were refraining from developing projects due to poor market conditions, others were looking to install platforms in order to

meet domestic consumption with firm, long-term contracts. Likewise, the company saw that some companies were taking advantage of lower jack-up day-rates to schedule projects, such as decommissioning campaigns. This realisation opened a new window of opportunity for the company, enabling it to prosper during the industry downturn. The next step for Aquaterra Energy was to optimise its solutions to clients. The company worked out how to bundle services together with the aim to provide a more complete offering to the type of clients it was targeting. The company had to be adaptable and

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ready to find tailor-made solutions to clients’ problems. Aquaterra Energy’s strategy found success with a client in Trinidad and Tobago. DeNovo Energy, a Proman Group subsidiary, was looking to produce gas offshore in order to feed Proman’s methanol plant in Trinidad. Aquaterra Energy tendered for the platform engineering contract and after a period of review by the client where other options and suppliers were being considered, were awarded the contract. Aquaterra Energy’s engineering approach was to focus on a modular platform design, which took away the requirement for an expensive

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installation vessel. Instead of offering a price and scope that required a large and costly jack-up vessel like big EPC players did, Aquaterra Energy proposed to use a smaller jack-up vessel, which was already located in Trinidad. The project outcome was very well-received by the client. Faster design and agile installation meant that Aquaterra Energy was able to execute the project in 10 months and allow approximately US$20 million in production savings to DeNovo. The decision to work with the smaller jack-up rig also allowed significant cost savings to be achieved.

a 34.3% growth in 2019. By pursuing projects with a broader range of go/ no-go decision criteria, the company was able to tap opportunities in new export markets. Moreover, Aquaterra Energy’s project-specific solutions and flexible approach allow different ways to deliver projects and meet clients’ requirements. As the market changes again, Aquaterra Energy’s adaptability, diverse offering of products and services and pipeline of global projects make the company more resilient to volatile market conditions in the oil and gas industry.

About Aquaterra Energy

Aquaterra Energy’s smart diversification strategy was crucial to overcome the 2015-16 downturn in the oil and gas market. Since then, the company’s revenues have grown year by year, with

Founded in 2005, Aquaterra Energy helps the offshore oil and gas industry increase efficiencies and reduce costs, through a range of products, systems and projects. At the forefront of offshore oil and gas engineering

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For government

#service/solutions (main category) #optimisation #diversification #export

Benefits • Approximate production savings of US$20m • Savings of US$7.2m in jack-up costs • 34.3% revenue growth in 2019

Key findings For industry • Keep your mind open for alternative uses and markets for your products, without excluding any opportunities. • Be willing and able to diversify and adapt your products and services to new markets

• Government should assist companies that wish to export with key contacts, market analysis and a better understanding of the country they wish to export to • Engage with industry before making energy transition commitments that will be difficult to achieve

Government support? Aquaterra Energy has so far joined DIT trade delegations to Mexico and the Far East. The company has also benefited from the Apprenticeship Levy, as well as R&D tax credits.

Export lessons • Prioritise local security and safety • Understand markets and local legislation • Avoid open market projects, preferably engage in “must-go” projects

for over a decade, the company specialises in riser systems and the analysis, tools and products needed from the first days of a well’s operation, through to full field development, asset life extension and decommissioning. Aquaterra Energy’s specialist engineers have supported customers in the North Sea, South East Asia, the Caribbean and Australia and completed more than 1,000 projects to date. Some of the world’s biggest brands and leading players rely on Aquaterra Energy’s products and services for their offshore needs. Headquartered in Norwich, the company is also present in other parts of the UK, as well as in Australia, Norway, and Egypt.

Sustainability and diversity lessons • Monitor energy consumption on all sites • Design and install products that attract lower CO2 emissions and energy consumption

Aquaterra Energy at a glance: Key products and services: Oil & Gas service company and consultancy Main industries served: • Upstream Oil & Gas – 100% Headquarters: Norwich Year established: 2005 Number of employees: 113 Revenue: £21.5m Revenue from exports: 72%

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Aubin R&D optimisation success delivering cost-effective solutions

How is Aubin thriving? Following the industry downturn, Aubin successfully optimised working capital, procurement and R&D processes. By collaborating closely with key clients and industry bodies to accelerate the company’s R&D and field trial success rates, the company is solving customers’ problems faster and more efficiently.

The challenge The oil and gas market fell off a cliff back in 2015, prompting the supply chain to find ways to cope. Aubin had already outsourced some of its engineering capacities before the industry downturn, as it wasn’t possible to concentrate all engineering skills in-house. The company sensed that a rationalization of resources was still necessary, however, which led to the closure of its US subsidiary. Revenues, meanwhile, were plummeting (approximately 15% between 2013 and 2016).

The solution Aubin had a sense of urgency and the company realised that optimisation was the answer to overcome the crisis. One of its earliest measures was to bring in a supply chain manager to help retain margins in a low-price market reality. More efficient working capital management was also crucial for Aubin, as suppliers of cheaper raw materials often required payment up front. Another key measure introduced by Aubin was to optimise its R&D efforts. The company’s team of chemists was spending a considerable amount of time on ‘blue sky thinking’ projects, without a proper customer-driven approach. In addition, delays with field trials meant that several R&D projects failed to convert to actual deployment.

Aubin decided that active industry and client collaboration early on would help the company pick the right problems to tackle, solve them faster and with less dead ends. Keeping this in mind, Aubin looked at data provided by the Oil & Gas Authority (OGA) on the top ten reasons for well failures and then focused on developing R&D solutions to solve these issues. With a technology plan in place, Aubin was able to schedule field trials early on and improve hit rates, enabling clients to reduce lost production days and save capital by providing them efficient solutions. Aubin’s R&D focus strategy found success with a client in the Middle East. The company approached Aubin requesting a solution to maintain pressure control whilst replacing a leaking valve on the wellhead. The client wanted to reduce operational costs associated with workover rigs and apply a chemical plug solution, rather than a mechanical one, whilst still maintaining safety standards. The challenging part of this request was providing a chemical solution that would be successful in the high salt content of the produced water used as

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a base fluid. Previous technology used by the client had experienced failures in these demanding conditions and using fresh water would have caused potential reservoir damage. Aubin’s AXI-Zone solution was recommended, due to its ease of application, tolerance of harsh conditions and cost effectiveness. This technology works by pumping a low viscosity liquid in place via coiled tubing or bull-heading, which then forms a very viscous plug under well conditions, effectively controlling pressure from the formation. Flexibility in pumping time is ensured by adjustment of the AXI-Zone Retarder loading. Aubin’s technical team worked with the client to optimise the dosage to suit the well conditions and base fluid. In this case, the well temperature was 99 °C and needed a setting delay of 60-75 minutes to place the plug. The client was satisfied with the testing provided by Aubin that showed AXI-Zone could achieve this delay before setting in the well. During the operation, the AXI-Zone was pumped in via coiled tubing. The plug was allowed to set for 24 hours,

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before a successful positive pressure test was conducted with 1500 psi differential pressure. Including hydrostatic pressure, this totalled to around 6,000 psi on the plug without failure. The replacement of the leaking valve on the wellhead was the conducted successfully and safely. Once complete, AXI-Zone was quickly removed with the use of acid, so the well could be put back online. Aubin’s AXI-Zone successfully formed a temporary plug, maintaining pressure control and allowing the wellhead to be quickly and safely repaired. Using this chemical technology meant that a workover rig was not needed, providing an efficient and cost-effective solution for the client.

Story type #optimisation (main category) #collaboration

Benefits • Productions days saved as a result of efficient R&D processes • Revenues increased 20% compared to 2017

Key findings For industry • Hiring new graduates not only reduces costs, but also creates a more dynamic and loyal working environment • It takes years to build trust and days to break it. Be open and honest with customers as much as possible • Smaller companies can respond quickly in times of crisis For government • OGA and OGTC should help innovative suppliers to carry out field trials in a more efficient manner • UK Export Finance could stand

Aubin’s R&D optimisation process was key to succeed during the crisis. Business started to pick up in 2019, with revenues already 20% higher compared to 2017. Rather than trying to do everything by themselves, Aubin refocused on what it is good at and closely collaborated with industry bodies and clients to achieve higher field trial success rates and deliver cost-effective solutions.

About Aubin Aubin Group is globally recognised as a leading developer and supplier of chemical solutions to the oil and gas industry. The company commits resources to developing effective

behind invoice discounting facilities, as that would make working capital management much easier • The government should provide information on the tax risks and hidden costs for each country • Fit4Energy training programmes are a valuable initiative

Government support? Aubin has joined trade missions organised by the Department of International Trade (DIT). The company has also received support from the Oil & Gas Technology Centre (OGTC) as well as the Innovate UK’s Knowledge Transfer Network (KTN) for selected projects. Aubin has also benefited from R&D tax credits.

Energy transition lessons • An energy transition committee is useful to coordinate actions, help employees understand where they fit and how energy transition applies to daily life and business • Products may be easily transferrable to industry segments in the renewables sector • Fossil fuels are still needed, and

and reliable products and delivering these promptly to clients around the world. Using chemistry in a number of ways, Aubin develops innovative and proprietary materials technology to solve industry problems. Aubin’s headquarters are located in Aberdeenshire, where global research and development work is carried out. The company also has an important presence in the Middle East, with a local support office in Dubai and manufacturing and stocking capabilities in Abu Dhabi and Saudi Arabia.

unrealistic reactions to climate change can be unhelpful

Sustainability and diversity lessons • Always strive to use the most environmentally friendly solutions and materials

Export lessons • Exporting requires commitment to markets and openness to different export routes

Aubin at a glance: Key products and services: design, development, manufacture and supply of chemical solutions Main industries served: • Upstream O&G - 100% Headquarters: Ellon, UK Year established: 1986 Number of employees: 34 Revenue: £9.6m Revenue from exports: 70%

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