Inside Energy December 2016 by Energy Industries Council

Monthly news for EIC members

EIC Award for Supply Chain Excellence

Sector Analysis

Find out about South Africa’s nuclear new build programme

December 2016

We talk to John Baron about Honeywell’s winning LEAPTM solution

Responding to members’ feedback

EICDataStream launches its Free Text feature

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Sector analysis

Nuclear power industry in South Africa poised for 9.6GW expansion South Africa, a country beset by power shortages and load shedding, is about to embark on a 9.6GW nuclear newbuild programme. Currently, South Africa is the only nation in Africa with a nuclear power station, and its government views nuclear power as a remedy to the chronic power shortages it has experienced in recent years. However, the programme is now hugely contentious and is destined to become the financially most far-reaching project, and consequently defining moment, of Jacob Zuma’s presidency. At present, South Africa is heavily reliant on its indigenous coal supply, with the resource relied upon for generating up to 92% of power capacity. However, the country is still yet to achieve universal access to electricity, with 8 million of its 54 million inhabitants still deprived of access. A pledge has been made to achieve full coverage by 2025, and the availability and affordability of coal will inevitably play a key role in accomplishing this.

Oliver

Barne

The proposals will specify the reactor design, the degree of localisation, financing and price. The proposed new-build programme has not been without criticism. The major argument against the plan is its cost, with estimates ranging from US$50bn to US$93bn for the immediate cost of building, excluding the additional cost of waste handling and decommissioning. Furthermore, recent coal power plant construction in the country has seen budgets hugely exceeded and schedules greatly delayed. Many believe this sets an unwelcome precedent against an already expensive nuclear programme. In addition, arguments are made about the prevalence of corruption and fraud in the country, the falling cost of renewables, especially for wind and solar, environmental concerns arising from nuclear waste, and whether large capacity plants are needed at a time of falling demand.

Eskom, the South African electricity utility, currently owns and operates the only nuclear power plant in South Africa at Koeberg in the Western Cape. The two-unit plant is now over 30 years old, with a major refurbishment project currently in progress through a contract awarded to Areva in 2014 that will see the six steam generators at the plant replaced by the end of 2018. With experience of nuclear power already in the country, South Africa, in 2011, approved a plan to build 9.6GW of new nuclear capacity by 2030 in a bid to provide secure, baseload, clean electricity for the country. Through the Department of Energy’s 2010-2030 Integrated Resource Plan, nuclear would generate 13.4% of the country’s electricity by 2030, with coal dropping substantially to 48%, assisted by the expansion of renewables.

Eskom anticipates a 5GW growth in electricity demand over the next 10 years within the country. If this growth materialises, it is argued that new-build power plant projects already in the pipeline would more than cover it, making the government’s 9.6GW nuclear plans a potentially unnecessary and very costly risk at this stage.

Since then, the government has signed agreements with France, Russia, China, South Korea and the US in preparation for the expansion. Two sites have been chosen for the projects with each expected to accommodate 4.8GW plants: Thyspunt in Eastern Cape and Duynefontein in Western Cape, near the site of the existing Koeberg plant. The government of South Africa announced in October 2016 that Eskom would be taking charge of the nuclear programme, including its procurement, with the Department of Energy co-ordinating the project. A request for proposals is expected to be issued by the end of 2016, initially delayed from 30 September 2016, with five reactor vendors due to be invited: Rosatom, State Nuclear Power Technology Company (China), Korea Electric Power Corporation, EDF/Areva and Westinghouse.

However, convincing the many critics of the policy may be the hardest job for the Zuma government, with financing, cost control and corruption all under the microscope. A recent comment by the government that it would only pursue construction on a ‘scale and at a pace that the country can afford’, suggests that while not veering away from its commitment to nuclear, it is increasingly aware of the potentially prohibitive cost of such developments to the country and that they may be effected much more slowly than originally envisaged.

Despite these arguments, it is clear that the South African government is committed to its nuclear newbuild programme. A central policy to overcome the continuing power shortages and assist with electricity access in the country, the plan is certainly ambitious and will provide a much needed boost for the economy, supported by an emphasis on localisation during construction.

Oliver Barnes, Sector Analyst (Power & Nuclear) oliver.barnes@the-eic.com

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Inside this issue... December’s Inside Energy starts with our sector analysis (opposite) on the impressive developments taking place in South Africa as it sets in motion its ambitious 9.6GW nuclear new build programme. Nuclear power also features in our one-to-one interview with EIC member SPX FLOW (page 4). Recently appointed President for Power and Energy José Larios outlines the work SPX is doing in this area and gives his take on what the future holds for the sector. Another hot topic in energy at the moment – and one that was the subject of our recent Aberdeen showcase attended by Decom North Sea, the OGA and Amec Foster Wheeler – is decommissioning. While the Gulf of Mexico is the world’s biggest market for decommissioning, the North Sea comes a very close second, with 120 fields expected to cease production within five years and an estimated US$50bn to be spent over the next 25 years. In fact the potential of the decommissioning sector to generate business for the UK supply chain is huge. Find out more in our new Decommissioning Insight Report which focuses on three key markets: the Gulf of Mexico, Asia Pacific and the North Sea. Download your copy by logging onto EICDataStream: http://eicdatastream.the-eic.com

Contents

UK suppliers were also able to discuss future opportunities at last month’s EIC Connect Oil & Gas 2016 event in Manchester. Not only was it great to see EIC members using this platform to stay informed, meet buyers and make contacts, it was also inspiring to hear how well the industry is responding to challenging conditions by adapting, innovating and collaborating. Our attention now turns to the next Connect event in the calendar: EIC Connect Oil & Gas UAE 2017. Taking place in Abu Dhabi next May, this event will highlight projects awarding contracts in the Middle East region and steer UK companies on how to get involved. For more information visit: www.the-eic.com/EICConnect/MiddleEast Finally, I’d like to wish you a merry Christmas and a prosperous new year. Edward White Editor and Communications Manager edward.white@the-eic.com

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Sector analysis

Inside this issue...

One-to-one 4 EICDataStream

EIC training

New members

Member news

Social media round up 11 Forthcoming events

UK events

Middle East news

Asia Pacific news

North America news

South America news

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One-to-one

with José Larios President, Power and Energy, SPX FLOW SPX FLOW’s product portfolio along with its related aftermarket parts and services, support a wide variety of global industries. Its Power and Energy segment primarily serves customers in the oil and gas industry and the nuclear and other conventional power industries.

My immediate priority for SPX FLOW has centred on getting closer to our customers and servicing their needs more directly. Given the tough market conditions we want to reduce the ‘total cost of ownership’, partnering closely with our customers to reduce costs whether by performing value engineering, streamlining specifications, simplifying operating structure or conducting preventative maintenance. We are committed to becoming more efficient as a firm – our service centres across the globe, which now includes centres in Aberdeen, Abu Dhabi and Dammam, provide support to customers across all of our product lines.

What factors does SPX FLOW take into account when considering moving into a new market?

We look at many different factors before opening a service centre although we have focused above all on those geographies where we can service clients who use SPX FLOW equipment. We supply original spares, extended warranty and

innovative service models allowing our customers to operate more efficiently with a lower cost of ownership.

You’re based in the US, What impacts do you see the US shale boom having at home and abroad?

In the past we serviced our installed fleet mainly from our factories but have shifted focus to creating a network of global service centres which enables us to get much closer to our customers.

Nuclear is becoming an increasingly important part of the global energy mix, especially since COP21, where do you see developments taking place in this sector?

Unconventionals created a plethora of independent companies with access to capital and in some cases modest return expectations. The US acts as swing producer based on the economics of each play and a low demand environment creates huge pressure for other producers.

At SPX FLOW we are actively engaged with our customers in this transformation, providing centrifugal pumps and valves for LNG export terminals and positive displacement pumps for well injection and transportation at gathering lines.

What about SPX FLOW would come as a surprise to other EIC members?

Most people know that we are leaders in technology but few know that we provide the fastest turnaround for producing between bearing centrifugal pumps ‘BB3s’ from our Penistone site in the UK.

We are now so streamlined that we can supply those pumps faster than anyone else in the marketplace. Another interesting fact is that our Glasgow site is one of the longest running manufacturing facilities in the UK with 130 years of heritage and counting.

Congratulations on your appointment as president for Power and Energy in August. What are your key priorities in your new position for the next 12 – 18 months?

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The global nuclear sector is entering a new growth phase and new plants offer new opportunities. SPX FLOW has for years supplied pumps to established markets like France, the UK, the US and Japan and now massive opportunities exist in places like India and China, which is building 40 nuclear power stations over five years. For example, SPX FLOW has supplied critical safety valves to the Chinese nuclear fleet’s WEC AP100 design. Other projects of interest to us include ITER and generation IV travelling wave reactors. SMRs (Small Modular Reactors) offer particular growth opportunities due to their potential to be built and deployed quickly all over the world.

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Global opportunities SAUDI ARABIA

Uthmaniyah gas treatment units Operator: Saudi Aramco Value: US$850m Hyundai Engineering & Construction has been awarded a US$727m EPC contract to be completed between November 2016 and 2019. The project is to construct a gas plant that will recover ethane, propane and other NGLs from 1.4Bcf/d of sales gas produced by the Ghawar field.

NIGERIA

INDONESIA

Owowo oil field

Ande Ande Lumit oil field

Operator: ExxonMobil Value: US$1bn (estimate) The Owowo-3 well, spudded in September, has increased the resource estimates of Owowo-2 to between 500m and 1bn barrels of oil. The partners and the government are now in talks on the future development plan.

Operator: Santos Value: US$800m Technical evaluations of the tenders for the leased FPSO vessel and the wellhead platform are nearing completion. Commercial bids are expected to be submitted in early 2017. The award of the contracts and the FID are expected in the second half of 2017.

For more information on these and the 7,500 other current and future projects we are tracking please visit EICDataStream

SCOTLAND

FRANCE

Inner Sound Tidal Energy project

Cadarache ITER Nuclear Fusion plant

Operator: MeyGen Value: US$1,500m The 398MW project will be built in phases. Phase 1 will have a total capacity of 86MW, with an initial Phase 1A of four 1.5MW turbines and a total installed capacity of 6MW. In total the project will feature 269 turbines.

Operator: ITER Value: US$19,842m Construction of a prototype commercial tokamak nuclear fusion reactor. The International Thermonuclear Experimental Reactor (ITER) will be funded by seven member entities – the EU, India, Japan, China, Russia, South Korea and the US.

UZBEKISTAN

Navoi - new CCGT unit Operator: Uzbekenergo Value: US$516m The extension of the existing Navoi CHP plant will feature a 450MWe CCGT unit and a gas booster compressor station. Mitsubishi Hitachi Power Systems and Mitsubishi Corporation have recently jointly won a contract to provide the generation equipment.

• Again in the ‘Add Project Filter’ dropdown, choose ‘Free

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feedback, Free Text is a great way to find out what projects are using or require the products or services your company provides.

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EIC training Pipe supports: specification, selection, manufacture and installation

Carpenter & Paterson Ltd Carpenter & Paterson Ltd has over 60 years’ experience in the pipe suspension market, designing and supplying pipe support systems for major infrastructure projects all over the world. Their experienced engineers work globally installing and inspecting pipe supports and have a wealth of knowledge in all areas of the industry. To share their theoretical and practical knowledge, Regional Sales Manager Steve Lewis and Contracts Manager Charlie Agnew will be delivering a Pipe Supports technical workshop, on behalf of the EIC, on 7 February 2017 at the Royal Oak Hotel, Welshpool. Workshop overview The workshop starts by detailing the four main piping systems and highlights the type of supports to be selected for each. Covering spring supports, seismic supports and cold cryogenic supports, as well as others, it will explain why and when they are selected and their functionality. Choosing the right pipe support is key, as often situated in harsh, challenging environments they can be impacted by numerous conditions such as thermal expansion, wind load, earthquakes, vibration and hydraulic thrust, which must all be considered. With ever ageing plants all over the world, both onshore and offshore, the integrity of the pipe support system becomes even more critical. The workshop will explain what to look for when inspecting supports in situ, what information is required, when the supports need replacing and any maintenance that can be carried out on existing pipe supports. It will also clarify the installation and adjustment methods for both variable and constant spring supports and the corrective action to be taken if problems arise during these procedures. Following the presentation, you will then have the opportunity to see numerous pipe supports in various stages of manufacture during a workshop tour. Get in touch Share your news and views...

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Carpenter and Paterson

A well-designed pipe support system is critical for the safe and efficient operation of any plant, be it onshore, offshore, power, petrochemical, oil, gas, refining or allied industries. Pipe suspension equipment needs to be installed correctly to ensure that on plant start-up the piping systems are supported as designed, while ongoing inspection and maintenance of in situ pipe supports is crucial to ensure the ongoing safe working of the facility.

The tour will provide greater understanding of the manufacturing process and insight into the complexity and physical size of many of the pipe supports. For those particularly interested in the design side, you will also receive a live demonstration of Witch-Hanger software. Who should attend? Although essential to industry, the pool of experienced pipe support designers and on-site mechanical engineers is diminishing. This workshop is ideally suited for graduates and site-based engineers looking to gain invaluable knowledge of pipe suspension equipment.

You may also be interested in:

An Introduction to Reciprocating Compressors Thursday 19 January 2017 Dresser-Rand, a Siemens business, Frimley

Learn about reciprocating compressors, their mechanical design, main components and various applications.

Other upcoming training

Networking that Works Wednesday 11 January 2017 EIC London

The Fundamentals of LNG Wednesday 18 January 2017 EIC London

The Pressure Equipment Directive Thursday 9 February 2017 Lloyd’s Register, EIC London

Contact: training@the-eic.com

New EIC members NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

Air Liquide

Ducab UK Ltd

Greenbank Road East Tullos Industrial Estate Aberdeen AB12 3BQ

Suite 22 Leatherline House, Business Centre 71 Narrow Lane Leicester LE2 8NA

Sterling Quality Services Ltd

The Nominated Representative is Ms Maria Bonikowska, Global Account Manager

The Nominated Representative is Mr Ashish Chaturvedy, Marketing Manager

The Nominated Representative is Ms Lisa Roberts, Managing Director

Telephone +44 (0)1224 877 409

Telephone +44 (0)116 244 2588

Telephone +44 (0)161 419 9998

Email maria.bonikowska@airliquide.com

Email ashish.chaturvedy@ducab.com

Email lisaroberts@sqs.co.uk

Web www.airliquide.com/industry/oil-gas

Web www.ducab.com

Web www.sqs.co.uk

A world leader in gases, technologies and services for industry and health, Air Liquide is present in 80 countries with more than 65,000 employees and serves more than three million customers and patients, with revenues amounting to €15.4bn in 2015. Oxygen, nitrogen and hydrogen have been at the core of the company’s activities since its creation in 1902.

Ducab is a leading provider of cables and wires solutions, and the first choice for many prestigious clients and contractors due to its record of quality and customer service.

Established in 1991 Sterling Quality Services is a leader in providing independent inspection, expediting and quality assurance services (ISO9001) to operators and EPCs alike for industries such as oil and gas, power generation, nuclear, wind, solar, mining, petrochemicals, rail and marine industry sectors around the globe.

Air Liquide Maritime is dedicated to the supply of industrial gases and services to customers in the offshore oil and gas market. Headquartered in Aberdeen, with global operations in more than 90% of offshore supply bases, it provides a comprehensive range of gases and supply equipment, from offshore cylinder bundles, to containers, to nitrogen generation systems. Air Liquide Maritime supports oil and gas customers with flexibility, adaptability and innovative solutions to meet the demands of the offshore market. At the core of the company’s development is the commitment and constant inventiveness of its people. Air Liquide Maritime’s ambition is to be the leader in its industry, delivering long-term performance and acting responsibly. Sign up for the EICOnline newsletter

Ducab has continued its strong rate of growth in specialised products by introducing product lines that are designed for particular sectors, such as PetroBICC, designed for the oil, gas and petrochemical sector, RuBICC, with flexible rubber cables, FlamBICC, the fire-retardant cable series, and NuBICC, which is its 60-year certified cable range for nuclear power plants. The product range includes high voltage cables up to 400kV, medium voltage cables up to 33kV, low voltage power cables, control and auxiliary, wiring and lead-sheathed cables, low smoke zero halogen cables, and fire resistance cables, copper rods and wires, cable components and cable accessories.

7 The Boulevard Hazel Grove Stockport SK7 5PA

The company has an extensive network of 2,000+ professionals working worldwide to deliver outstanding services combining local knowledge and language to a continuously growing client base. This is backed up with a dedicated team with a unique approach and exceptionally high standards with 24/7, 365 days a year availability supported with the bespoke, purpose-built management system called SMARTER.

Ducab is an ISO 9001:2000 certified company and also has certification to the ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety issued by BASEC.

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Member news Ducab demonstrated its implementation and support of green and sustainable development in the manufacturing of specialised cable products and accessories which meet the highest industry standards.

Capula chosen for National Grid’s Substation Control System upgrade

Advanced automation and business intelligence company Capula has been selected by National Grid to be a key supplier on their Substation Control System (SCS) upgrade framework. The strategic framework has been created by National Grid to cover the refurbishment and replacement of obsolete control systems and will include, but not be limited to 66 substation sites nationally. As part of the framework agreement, Capula will be responsible for carrying out a range of control system activities including capture, definition, system design, building and testing, installation, commissioning and producing high quality and detailed documentation. Upgrade works will take place on 12 substation sites throughout 2016 and a further 19 substation sites in 2017, with all remaining works expected to be completed by 2019-20.

Capula’s selection followed a rigorous review of its IMPERIUM Substation Control solution where standards in quality and delivery expertise were assessed. Capula engineers will continue to deliver specific communication protocols required by National Grid, as well as deploy innovative new technologies that reduce electrical outage times to maximise the availability of the electrical network.

For more information: www.capula.co.uk

Ducab demonstrates sustainable initiatives at WETEX 2016

Ducab, a principal sponsor of the Water, Energy, Technology and Environment Exhibition (WETEX) 2016, used the event on 4-6 October in Dubai to showcase its sustainability initiatives and industryspecific cabling.

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The cable manufacturer’s participation follows the recent announcement of its nuclear powerqualified cable range, NuBICC being selected by the Korean HydroNuclear Power Co for the Shin Hanul 1 & 2 Nuclear power plant currently under construction. Other projects in the sector benefiting from its products include Masdar’s Shams 1 in Abu Dhabi, DEWA’s 13MW solar plant in Mohammed Bin Rashid Al Maktoum Solar Park in Dubai, and the Barakah nuclear power plant in Abu Dhabi. As a member of the Emirates Environmental Group and the Emirates Green Building Group, as well as being a founding member of the Dubai Quality Group, Ducab’s five factories and the upcoming Ducab Aluminium Company follow the highest environmental standards. State-of-theart machinery and regularly-audited precise calibration ensure minimal energy wastage and the lowest material wastage in the industry.

For more information: www.ducab.com

Elfab’s GSM-Tel provides explosion vent notifications to your mobile phone

Pressure relief experts, Elfab Limited has combined traditional explosion vent detection with GSM technology to create GSM-Tel to provide instantaneous notification of explosion vent activation directly to your mobile phone.

Member news

iNPIPE PRODUCTS™ reveals new logo and website

The new brand identity is part of the company’s continuing effort to provide its clients with reliable turnkey solutions based on 30 years experience in the pigging industry.

Ducab at WETEX 2016

The first of its kind, GSM-Tel is a dual channel, remote monitoring system capable of interfacing with any of Elfab’s explosion vent designs including both single and multi-layer setups, as well as flat and domed constructions. GSM-Tel is specifically designed for remote locations, allowing for improved explosion vent monitoring from afar. In the event of explosion vent activation, users will receive a fully customisable text message signifying panel rupture. Upgrading to GSM-Tel allows for improved monitoring and simplified maintenance. It can also be supplied in an optional ATEX enclosure, for deployment in hazardous operating environments. GSM-Tel is a costeffective, fail-safe solution combining reliable explosion vent technology with a modern detection system. The battery operated GSM alert system is reusable after explosion vent actuation for long-term reliability and minimal maintenance. Elfab manufactures full opening, non-fragmenting explosion vent designs in an extensive range of sizes, shapes and designs suitable for an array of applications. They can be used in a number of industries in order to protect against the hazards of dust explosions.

For more information: www.elfab.com

Global Marine leads field with ISO 9001:2015 accreditation

The new logo represents iNPIPE PRODUCTS™ progressive and global capabilities of engineering excellence, quality products and reliable on time delivery.

The company’s early transition to the standard, ahead of the September 2018 deadline, provides a number of key benefits for both the business and, in turn, customers. Certification provides assurance that Global Marine has evolved its management system to meet the growing needs of customers and other key stakeholders, identifies future customer needs, improves customer retention with better customer service and addresses supply chain management more effectively.

The company intends to develop the case history section to enhance the ‘go for advice first contact’. This will also include product developments such as the 90” pipeline cleaning system and pigs, one of the largest pigging systems ever produced. Proving size is everything.

Global Marine is one of the first companies in the industry to achieve accreditation to the revised quality standard.

Honeywell’s Enacto energy management software now available

Global Marine Systems Ltd has succeeded in upgrading its ISO 9001 certification to the new International Quality Standard ISO 9001:2015.

Lorraine Harrison, Quality and Compliance Manager at Global Marine added, ‘Global Marine sends a clear message to all customers, both current and future, that it is taking a leading and proactive approach to quality management.’

For more information: www.globalmarinesystems.com

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With the client in mind, the new website focuses a lot more on technical content including a range of product videos highlighting benefits and key features.

For more information: www.inpipeproducts.com

Honeywell has announced the launch of Enacto, its new energy management software platform. Available to energy services companies it will allow them to more easily manage and track their customers’ energy efficiency programmes and reduce the risk of shortfalls in guaranteed energy savings.

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Enacto is a flexible and scalable end-to-end energy monitoring and management solution that enables quick and efficient action on energy alarms and energy project deviations. Using Enacto companies can administer their customers’ energy efficiency programmes from a central platform and track energy savings by individual conservation measures. The software features an automatic reporting tool that saves time and supports multiple reporting schemes, including CRC and GHG. With Enacto, energy services companies can also help their customers achieve ISO 50001 certification, which will allow them to make informed decisions concerning energy use and consumption.

For more information: www.honeywell.com

HTL launches new protective coating

Controlled bolting equipment manufacturer HTL Worldwide Ltd has released a specialist coating to extend the life of any structure or assembly: HTL Pro-Tect. Offering complete joint preservation and corrosion prevention, HTL ProTect is suitable for any mechanical and electrical application which is subject to climatic corrosion in any industry. With easy application and a life span of up to 25 years, the product will protect all mechanically exposed assemblies in the harshest environmental conditions including subsea.

The product’s strength comes from its silicone base which forms a strong, resilient and rubberised coating, averting moisture, debris and water or oxygen ingress, resulting in the application being kept in its ‘as installed’ condition. Non-toxic, HTL Pro-Tect is 100% recyclable. The external part of any mechanical joint is highly vulnerable to the ingress of debris and moisture which can result in the degradation of bolted joints as well as corrosion. As well as being hazardous the repair could mean unscheduled downtime for machining. Supplied as a complete kit with everything needed for application, this product promotes best practice engineering and is a major contribution towards maintaining critical joint integrity. Easily removed by cutting and peeling back, HTL Pro-Tect is applied and removed as desired.

For more information: www.hiretorque.com

Mirage’s diamond wire saw cuts through 200 piles in wharf demolition project In a recent demolition project in Australia, a diamond wire saw manufactured by Mirage Machines, an Acteon company, was used in the demolition of wharf structures located at Northshore Hamilton, Brisbane.

Three full time dive crews were deployed, utilising a range of innovative underwater cutting tools and techniques that included the Mirage MDWS1638 diamond wire saw to cut 200 steel and concrete piles, some of which exceeded a metre in diameter. The project lasted for four months and the diamond wire saw was in continuous use every day.

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The hydraulically powered MDWS1638 is one of several different sized machines in the Mirage line-up, each designed for quick cutting through dissimilar materials and resisting compressive forces. The products have been used for numerous projects across the world, with typical cutting applications including pipelines, risers, chains, wellheads, flowlines, offshore platform removal, piles, plus single and multi-string casings.

For more information: www.miragemachines.com

Paladon Systems and Control Valve Solutions form partnership

Valve manufacturer and automation company Paladon Systems’ and Control Valve Solutions (CVS) have combined to provide unparalleled support for their clients in Scotland and the North Sea. Commenting on the new partnership, Paladon Systems Managing Director, Brian Ennever said, ‘We’ve been supplying valve actuators and control systems to the North Sea market since 1982 and currently have an installed base of over 5,000 units. We understand that our clients need the highest quality and quickest service support possible. With CVS being located in Aberdeen and offering a guaranteed 24-hour UK site response time, they are ideally suited to support Paladon Systems’ vast installed base.’ CVS Managing Director Mike Beavers said, ‘We are absolutely delighted to have signed this partnership agreement with Paladon. For many years we have recognised that Paladon Systems’ presence within the North Sea oil and gas market was well established, and growing. By coming together and collaborating we will offer a full solution to all clients: our expertise in the field and the product support from Paladon Systems makes this a very exciting partnership.’

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Paladon Systems is a designer and manufacturer of valve actuators and industry-leading control system technologies for on/off and modulating valve applications. CVS’ team of highly trained and talented engineers and technicians are available to go offshore both within the UK and internationally, or work on valves within its workshops in Aberdeen.

For more information: www.paladonsystems.com

WRS secures Malaysian RAPID contracts

UK-founded global staffing agency Worldwide Recruitment Solutions Ltd (WRS), alongside their partner in-country, SPS Oilfield Services, have won major client contracts in Malaysia. The contracts are serving major manpower and recruitment projects for EPCCs for the refinery and petrochemical integrated development (RAPID) complex at Pengerang, Johor, Malaysia. Contracts include recruitment, payroll and onboarding of Malaysian and expatriate personnel alike until 2018. With regional headquarters in Singapore, WRS is well positioned to support recruitment operations in Malaysia. SPS’ standing as a strong local player with in-depth local knowledge, combined with WRS international recruitment and project solutions expertise enables the JV to provide a truly unique service to Malaysian and international EPCCs on the RAPID project. The WRS-SPS RAPID operations have been predominantly run from Kuala Lumpur, but with its growing requirements an office will soon open in Johor.

For more information: www.worldwide-rs.com

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 – Energy Industries Council (EIC). 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 When working with equipment for hazardous areas, a good understanding of the #ATEX directives is crucial: bit.ly/2eOFYVq

The EIC @TheEICEnergy Alex Haynes, Senior Vice President of @amec_fw, makes the final speech at the #ADIPEC2016 UK networking reception

Energy Industries Council (EIC) We were delighted to welcome the RH Tobias Ellwood MP, Minister of State for the Middle East, to the UK pavilion at ADIPEC to meet with exhibiting companies

November 2016

Forthcoming events 22 November EIC Connect

EIC Connect Oil & Gas 2016 Manchester Central

23 November Management Course

Understanding Terms and Conditions in the Contract Four Points by Sheraton, Dubai

23 November Management Course

EICDataStream Training Regus@Samsung Hub, Singapore

26 November Industry Overview

Fundamentals of FPSOs

December 2016

EIC Rio de Janeiro

1 December Regional Showcase

UKCS Showcase Decommissioning Aberdeen venue tbc

2 December Business Presentation

Indonesia: Project Updates British Embassy, Jakarta

6 December Business Presentation

Opportunities on the Future Growth Project, Kazakhstan EIC London

Hear first-hand from Tengizchevroil about the key challenges and solutions required on this project, highlighting the goods, services and lead times they require in addition to advice on how to do business in Kazakhstan. To book your place please contact emily.light@the-eic.com Get in touch Share your news and views...

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

29 November Overseas Exhibition

Offshore South East Asia (OSEA) Marina Bay Sands, Singapore

30 November Business Presentation

Members Update Morning EIC Teesside

This business presentation will include global project updates from the oil and gas, power, nuclear and renewables sectors with information taken from EICDataStream. A guest speaker will provide plenty of opportunities for members to network with each other, share solutions and consider collaboration prospects during open floor discussions. EIC staff will also provide demonstrations of EICDataStream. Sponsored by Well Services Group, a leading provider of asset integrity solutions, this event is free to attend with bookings on a first come, first served basis. For more information or to book, please contact jennifer.rutherford@the.eic.com

6 December Business Presentation

Opportunities with CH2M HILL Yas Island Rotana, Abu Dhabi

8 December Business Presentation

EICDataStream Training EIC Houston

11 December Overseas Delegation

Overseas Delegation to Iran Tehran

15 December Business Presentation

Bidding to Win â&#x20AC;&#x201C; How to Beat the Competition without Cutting Prices Rothera Group, EIC London

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

January 2017

Forthcoming events

Networking that Works EIC London

Introduction to Reciprocating Compressors

Dresser-Rand, a Siemens Business, Frimley

18 January Industry Overview

Fundamentals of LNG EIC London

18 January Management Course

EICDataStream Overview EIC Houston

24 January Sector Showcase

Nuclear Sector Showcase EIC Houston

Nuclear power plants provide 20% of total electrical generation in the US. Join the EIC and leading industry experts to receive an update on the state of play of the nuclear industry. Contact natalia.bueno@the-eic.com

7 February Technical Workshop

Introduction to Pipe Supports Carpenter & Paterson Ltd, Welshpool

20 February Overseas Delegation

Overseas Delegation to Kuwait Kuwait City

9 February HSE Training

Pressure Equipment Directive Lloyd’s Register, EIC London

21 February HSE Training

The ATEX Directives SGS Baseefa, Buxton

14 February Overseas Exhibition

Egypt Petroleum Show (EGYPS) CICEC, Cairo

21 February Management Course

EICDataStream Overview EIC Houston

16 February Corporate Entertainment

EIC Middle East Golf Tournament 2017 The Els Club, Dubai

23 February Industry Overview

February 2017

19 January Technical Workshop

11 January Management Course

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UK events Interview with the winners of this year’s EIC Award for Supply Chain Excellence, Honeywell Process Solutions, a pioneer in automation control and instrumentation services, presented at the EIC National Dinner on 13 October at the Natural History Museum in London. We spoke with John Baron, Senior Accounts Manager, about their submission, LEAPTM. Q

You won for your LEAPTM system. Can you give us an overview of the product?

LEAPTM is a combination of A three modern technologies: virtualisation, universal channel technology and cloud engineering. By using LEAPTM clients can transform the way they deliver projects. LEAPTM has been mainly used by the oil and gas sector, although it can be used for any industrial project that requires a process control system, and customers can use all or a selection of the three technologies.

Starting with virtualisation, on large projects the issue of servers can become complex to say the least, with up to 100 servers sometimes combining to form the final system. Our virtualisation solution provides a powerful and modular computing infrastructure, onto which you can configure all the apps which previously all the multiple servers held. Universal channel technology is great news for control and safety systems. Traditionally, IO (input-output) cabinets had to be individually designed for whatever part of the plant they were going to. With our universal IO channels, these cabinets can now all be standardised: we just connect everything up and they synch to whatever system is in place, which really is a great benefit, even more so if you consider that information is tough to get across on time or that designs always change.

The third strand, cloud based engineering, allows our customers to break up project dependencies and sequential activities. Typically, in a project there is a design phase, followed by ordering equipment and then the software is configured. With our cloud enabled execution that sequence is no longer required and engineering configuration can start immediately using one of three Honeywell data centres around the world that provide a virtual engineering platform of control and safety system simulations. This platform allows us to start engineering systems before the purchase of hardware and before the design is complete, breaking the traditional sequence of activities. We also use this environment to make checks online at any stage of the project rather than wait to the end to find out if there is a problem or not.

Can you tell us how you developed this product?

We identified a customer need for flexibility and agility: that ability to break up the sequence of projects or work on software in our cloud before the design is finished or the hardware is ordered is something that wasn’t available before LEAPTM was developed and released.

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Some customers find it hard to believe that a virtual test is as good as a real life test. However, what we test in the cloud environment is software – the same software which will be downloaded into the process control system, and nothing changes between those two environments. So it’s every bit as good as a live test. Our clients can ship equipment to site knowing that it’s been tested before it gets there.

How did you feel when you were announced the winner of the EIC Award for Supply Chain Excellence?

Relief! The waiting was finally over. We feel we have something really special to offer with LEAPTM which is why we entered in the first place, so we were very pleased to get to the final three and thought that having got that far, we were in with a good chance.

It’s a great honour to be recognised within the industry and something we want to capitalise on, and we will be proudly displaying the award at our upcoming events.

Middle East news Regional update

It is hard to believe that we are approaching the end of another year. It seems like only yesterday that we were hosting our own Middle East version of EIC Connect Terry W illis in May. Its big brother EIC Connect Oil & Gas took place in Manchester last month and was a tremendous success, in no small part because of the attendance of two major Middle East giants, Saudi Aramco and Kuwait National Petroleum Company. Also taking place in November, ADIPEC attracted a record number of participants highlighting the fact that the MENA region remains a global centre of excellence when it comes to innovation and technology and remains resilient during the current challenging period that the energy sector is facing. The UK pavilion was really busy, not surprising given the high quality of our exhibiting companies’ products and services and the great reputation the UK supply chain enjoys around the world. Looking ahead to December, we have two events of interest. Firstly, there is the postponed lunch with C2HM HILL plus there is our second delegation to Iran. At the time of writing it is looking likely that a number of International Petroleum Contracts will be released before the end of the year which means that the timing of our delegation would appear to be quite good. The financial environment still appears to be somewhat clouded but we are nevertheless confident that this final hurdle will eventually be overcome. One local event which proved very successful was our mini seminar on becoming a Black Belt Negotiator. During these challenging times, isn’t it a distinct advantage for a negotiating team to have somebody who knows the intricate drivers that contribute to a successful business opportunity? Given the positive feedback we will be looking to see if it can be repeated in the new year. Talking of the New Year, we are already receiving interest in our golf tournament, scheduled for 16 February at the Els Club. Full details are on the website. We would welcome any member companies wishing to take up the various sponsorship opportunities that the event offers. From all of us in the EIC Dubai team we wish readers and friends very warm seasonal greetings as well as a happy and prosperous new year. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Get in touch Share your news and views...

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British Ambassador Philip Parham visiting the UK pavilion at ADIPEC

Regional news

Kuwait to create new US$6bn downstream company

National oil company Kuwait Petroleum Company’s request to create a new US$6bn subsidiary, the Kuwait Integrated Petrochemical Industries Company (KIPIC), has been approved by the Kuwait government. KIPIC will be responsible for running the Al-Zour refinery, Kuwait’s 615,000 barrel per day refinery which is scheduled to come online in 2018. Kuwait’s upstream sector currently produces approximately 2.5m barrels of crude per day.

JGC wins US$1.4bn Algeria gas field contract

Japan’s JGC has won a US$1.4bn contract to expand production at Algeria’s Hassi Rmel gas field. The contract was awarded by state oil and gas group Sonatrach and is the second major deal picked up by JGC in Algeria this year. In March 2016 the company won a contract worth US$339m for facilities to increase production at the Hassi Messaoud oil field.

Forthcoming events

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Asia Pacific news Regional update

We were happy to receive a week-long visit from EIC Head of Power, Nuclear & Renewables, Amisha Patel at the end of October, Azman who came to our office Nasir following a renewables event in Beijing, China. Amisha updated our members on the latest renewable global trends and also talked about Asia Pacific’s power and renewables project opportunities. Among the countries highlighted in her briefing session were India, Indonesia, Thailand, the Philippines and Taiwan. India’s upstream sector is very much on our radar at the moment. The country has made significant policy changes recently in order to revitalise the industry and make the business environment more attractive to investors. This is part of the reform agenda by the government to increase production of oil and gas in view of its ever increasing energy demands. State-owned Oil and Natural Gas Corporation (ONGC), for example, has embarked on its largest ever exploration campaign as it plans to invest about US$5bn in its block in the Krishna-Godavari basin off the east coast of India with the aim of producing 530m cubic feet a day of gas and 77,000 barrels a day of oil within five years. Overall, the company plans to invest US$166bn by 2030 to increase oil and gas production. We are looking forward to the Offshore South East Asia (OSEA) 2016 conference and exhibition, on 29 November-2 December. The EIC will host the UK pavilion with 17 companies exhibiting. Established 40 years ago, the 21st edition of OSEA will focus on solutions that can potentially enhance production processes, create greater cost efficiencies and extend the lifetime of assets. With over 1,000 exhibitors from 48 countries and 18 international group pavilions, OSEA 2016 will showcase an extensive range of equipment, innovations and services. On 2 December, the EIC Asia Pacific and the Department of International Trade (DIT), Indonesia will host an Indonesian Project Update event in Jakarta. The top management from several Indonesian oil and gas authorities and power utility companies are confirmed to speak at this event, including SKK Migas Chairman Amin Sunaryadi, who will brief delegates on Indonesia’s oil and gas Work Programme and Budget (WP&B) for 2017. Other Indonesian companies already confirmed to speak at this event include Pertamina, Medco Energy and Saka Energi. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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Amisha Patel updating members

Regional news

Malaysia makes new petrochemical plants investment

BASF Petronas Chemicals Sdn Bhd (BPC) has invested an additional US$480m for the development of three new plants at its integrated petrochemical complex in Pahang. The plants, an integrated aroma ingredients complex, a 2-ethylhexanoic acid and highly reactive polyisobutene plant, will gradually start operations from the fourth quarter of 2016.

Indonesia pushes to revive gas sector

The progress in this sector has been slow, owing to the lack of exploration investment and infrastructure development. Indonesia will need at least US$32.42bn to finance the development of its national gas pipeline project, which will connect gas fields and gas stations in the country’s major cities. According to state-owned Pertamina Gas, in order to fulfil the demand for gas energy until 2025, Indonesia will require at least 4.4bn cubic feet per day of imports.

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North and Central America news Regional update

Clarisse Rocha, Head of Americas and I attended EIC Connect Oil & Gas 2016 in Manchester, on 22-23 November. It was invaluable to have the opportunity Amand a Duho n to meet with members, receive updates on market conditions, new business models and global projects. We are happy to share any knowledge we gained over the two days, so please do contact Clarisse or myself if you want to find out more. Attending the event was also a crucial step for the Americas team, as we work to create EIC Connect Oil & Gas USA – watch this space for further details to come.

Regional news

GE makes US$1.65bn acquisition

The US multinational has announced plans to purchase LM Wind Power, a Denmark-based manufacturer and supplier of rotor blades for wind developments. The purchase will give GE an internal source for wind turbine blade design and manufacturing while improving its ability to increase energy output. LM owns 13 factories in 8 countries, and has 190 patents. The company is currently GE’s largest blade supplier, as GE does not produce blades in-house.

Looking ahead to 2017, we’ll be hosting a market update session with a focus on diversification and innovation. The current constraints of the oil and gas market, along with the pressure on government and investors to be competitive within the energy landscape, is driving the need for innovation as well as diversification into the renewables sector. Now, more than ever, oil and gas companies will need to examine the synergies across the energy supply chains to identify and successfully pursue new business opportunities. Offshore wind is a great example of this. In its infancy with no supply chain, the North American offshore wind sector is looking to Europe, and the UK specifically. Join the EIC for this Market Update event to learn about how to transfer offshore oil and gas skills to offshore wind and specific opportunities across the region, we’ll also provide a case study on diversification. If you need assistance in the region, or for information about our EICLaunchPad services, and upcoming events and training, please contact Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...

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We are now hosting monthly EICDataStream training sessions at our Houston office. We have had a significant number of new users needing training, and therefore, quarterly training was not enough. We still have a few seats available for EICDataStream training on 8 December. To register, please email natalia.bueno@the-eic.com. We are also eager to personally visit with members in the region, and would be happy to work to organise onsite training sessions.

First US oil and gas initial public offering in two years

Denver-based Extraction Oil & Gas launched the IPO which rose to a market capitalisation of over US$2bn during its first 24 hours on the market. The company includes Yorktown Partners LLC, BlackRock Inc and Neuberger Berman Group as its backers. Extraction Oil & Gas operates in the Greater Wattenberg field and has produced over 4tn cubic feet of natural gas from the J Sand, Codell and Niobrara formations from nearly 20,000 wells.

Forthcoming Events

Please go to page 12 to see upcoming events in your region

South America news Regional update

Rio Oil & Gas 2016 took place at the end of October. With 540 exhibitors, the show was smaller than usual, yet much more focused than previous editions and almost 50 EIC member companies exhibited.

Clariss

e Roch

11 appraisal wells are set to be drilled, according to Petrobras Executive Manager, Fernando Borges. One of the biggest challenges Libra presents is the high local content percentage requirements. However, waivers are a possibility that are yet to be regulated. Four FPSOs will be needed – the first one is 80% complete and bidding is ongoing for the second one.

The EIC team attended and met them all to gauge their interest and support. Even though 2016 was a challenging year for the oil and gas industry, the consensus opinion among those who we met was that the sector is seeing positive developments, particularly in Brazil.

Looking ahead, the UK-Brazil Energy Showcase 2017 has been confirmed for 20 March 2017 and the EIC will be involved, supporting a trade delegation related to offshore and marine construction repair and maintenance. This is a great opportunity for your company to re-assess the market.

Most of the optimism is related to recent announcements regarding the pre-salt Libra field, which is expected to be declared as commercially viable before the end of the exploration phase (scheduled for December 2017).

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

Regional news

Rio Oil & Gas 2016

Brazilian O&G industry improving says Lloyd’s Register survey

Brazil is set to remain a key oil and gas player, according to the Brazil Oil & Gas Technology Radar survey conducted by Lloyd’s Register, in partnership with the Brazilian Institute of Oil, Gas and Biofuels (IBP). The survey, conducted between 5 September and 3 October with the feedback of more than 240 companies, highlights improvements to regulation, compliance and political stability.

USTDA resumes activities in Argentina

The US Trade and Development Agency (USTDA) announced in October that it was going to resume its operations in Argentina, which were suspended in 2005. The organisation, which engages in the development of projects in key areas with the aim of boosting US exports of goods and services, plans to target the transport, IT and clean energy sectors in Argentina. The USTDA’s return to the country aligns with President Macri’s commitment to open Argentina’s economy to foreign investment following years of stagnation during the two Kirchner administrations (2003-15).

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PDVSA announces successful bond swap The Venezuelan state-owned oil company announced in late October that it restructured almost US$3bn of debt following a major bond swap. Investors holding US$2.8bn of bonds maturing in April and November 2017 (approximately 40% of the total amount) swapped them for US$3.4bn of new bonds maturing in 2020. Analysts agree that the result will alleviate the company’s finances next year and help avoid a possible default. PDVSA’s finances have suffered as a result of the downturn in oil prices, having a severe impact on the Venezuelan economy.

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