Inside Energy December 2017 by Energy Industries Council

Inside Monthly news for EIC members December 2017

Spotlight on technology

Survive and Thrive

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What does the future hold for electric vehicles?

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Sector analysis

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Case studies from EIC members Petrofac, PJ Valves and Servelec Controls

ABLEâ&#x20AC;&#x2122;s MudMaster allows mass flow measurement on a partially filled pipe

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Sector analysis

Electric Vehicles: only a dent in oil demand? Discussions on electric vehicles (EVs) often produce mixed messages and uncertainty. In October 2016, the Financial Times warned of investors withdrawing from oil companies due to the rise of EVs, only to report in March 2017 that there is little reason for concern after all. In January, BP’s Energy Outlook brushed aside potential threats, yet Bloomberg announced in July that major oil and gas companies have grasped the importance of mass EV production. Car manufacturers worldwide are introducing new EV models, yet claim that estimating consumer behaviour and sales is impossible. BP’s Energy Outlook 2017 estimates that 100m EVs will be on our roads by 2035, while the global car fleet doubles to 1.8bn in 2035. It forecasts that EVs will reduce oil demand growth by 1.2-1.4MMbbl/d. In comparison, Bloomberg New Energy Finance predicts that 8MMbbl/d could be displaced by EV developments by 2040, with 200m EVs expected by 2035. While current EV sales and production levels are no competition for fuel-driven cars, recently announced EV plans from countries around the world suggest that this won’t always be the case. Petrol and diesel phase out France has announced that it plans to phase-out petrol and diesel cars by 2040. Norway and the Netherlands have set an even earlier date of 2025. Scotland has announced a date of 2032, eight years ahead of the rest of the UK’s planned deadline of 2040. Outside of Europe, India is targeting an ambitious 2030 date for all-electric mobility, with the government initiating a phased order of 10,000 EVs for its fleet. China is expected to announce an EV quota, wherein car manufacturers are required to reach EV sales equalling 10% of total sales by 2019. In the UK, demand for electric and hybrid vehicles increased by almost 30% in the first half of 2017, while it declined for diesel cars by 10% and grew 5% for petrol. OPEC has increased its previous estimate (made in 2016) of the global EV fleet as at 2040 from 46m to 266m, and projected that EV sales targets could impact oil demand in Asia as early as 2018. Major car manufacturers are announcing EV plans, with Volvo going all-electric by 2019, GM planning 20 all-electric models by 2023, and Daimler preparing to reduce spending by €4bn by 2025 to accommodate weaker margins resulting from EVs.

Lara J

uergen

Infrastructure and batteries are key The extent of EV uptake will largely be dependent on improvements in infrastructure and battery capacity to ease consumer concerns. For example, Germany plans to have 1m electric and hybrid vehicles by 2020, however, there were only 7,400 charging stations available as at July 2017. Infrastructure development is underway though, with E.ON and CLEVER, a Danish e-mobility service provider, set to install ultra-fast charging stations along European corridor highways. In July 2017, South Korea’s KEPCO commissioned 1,560 charging stations, and in October 2017, Shell acquired NewMotion, a company with 30,000 home and 50,000 public charging points. The added power demand will, however, challenge grid stability and integration. Utility companies must play a key role in designing the necessary infrastructure, and working with regulators to manage pricing in the case of potential rate increases. National Grid identified the possibility of establishing a network of super-charging points with 150kW and 350kW capacity across the UK, replacing existing petrol stations and reducing pressure on household connection points and local distribution grids. The majority of charging stations are currently home-based. As the capacity and charge of EV batteries increases to the targeted 90kWh, an average home’s mains fuse and electrical capacity will no longer be sufficient for charging as well as running other electrical appliances alongside it. A further challenge lies in the ambition for EV power supply to come solely from renewable energy to fully offset carbon emissions. Batteries have seen major improvements in recent years, with current prices at the level originally projected for 2030. In July 2017, Toyota indicated the launch of a new solid-state battery in 2022 offering twice the mileage range of current EVs with a charging time of a few rather than today’s 20 minutes. The global focus on decarbonisation backed up by firm policy commitments, increasing industry activity and technological improvements all suggest that EVs will have a significant impact on not just the transportation sector but indeed the whole energy industry, given that a mere 1.7MMbbl/d decline in oil demand in 2008-09 was a key factor in the oil price decline. Lara Juergens Energy Research Assistant lara.juergens@the-eic.com

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Inside this issue... We open this issue of Inside Energy by taking a look at the rapidly developing electric vehicle market, where a global race to lead mainstream deployment is well underway. The UK’s Dyson is the latest manufacturer to announce plans to put electric cars on the road, raising a lot of eyebrows in the industry with its target launch date of 2020. EIC Energy Research Assistant Lara Juergen’s sector analysis opposite provides a global overview of the developments taking place, the key challenges to market roll out and what implications the phase out of petrol and diesel cars will have on not just the O&G sector but across the whole energy industry. Game changing technology isn’t just limited to our sector analysis though – on page 18 we put EIC member company ABLE’s MudMaster Drilling Mud Outflow Analyser under the spotlight. This powerful analytical tool can measure mass flow in a partially full pipe, a first for the industry and something that, not unsurprisingly, has been attracting a lot of attention from industry majors around the world. Another EIC member company specialising in innovative products is Ellis Patents. Global Sales Director Tony Conroy took time out of his busy schedule to talk to us about the company’s No Bolts Cleat, which won the Innovative Industrial Product of the Year at the Electrical Industry Awards last year, as well as explain how Ellis has become a regular partner for heavy hitters like Petrobras and Siemens (page 4). This month’s case studies from our Survive & Thrive Insight Report come from Petrofac, PJ Valves and Servelec Controls, who took home the Collaboration, Export and Innovation Awards, respectively, at our EIC National Awards Dinner in October. Servelec Controls also won the prestigious EIC Company of the Year Award. Find out about the pioneering work they’re doing on page 19.

Contents Sector analysis

Inside this issue...

One-to-one 4 EICDataStream 5 New EIC members

Member news

Social media round up 11 UK events

Forthcoming events

Overseas events

Finally, on behalf of the EIC, I wish all our readers a merry Christmas and a prosperous New Year.

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Edward White, Editor and Communications Manager edward.white@the-eic.com

EIC Survive and Thrive 19

Spotlight on technology 18 Middle East news

Asia Pacific news

North America news

South America news 26 Sign up for the EICOnline newsletter

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One-to-one with Tony Conroy Global Sales Director, Ellis

Ellis Patents is a world leading cable cleat manufacturer, and is fast becoming recognised as the industry innovator. From its headquarters in North Yorkshire, it designs, develops and produces cleats – many of them bespoke solutions made in response to project specific queries – that are in demand in major electrical projects around the world.

Last year you won the Innovative Industrial Product of the Year at the Electrical Industry Awards for the Ellis No Bolts Cleat, can you tell us more about it?

The Ellis No Bolts Cleat was developed in direct response to a fixing problem that was causing Network Rail significant health and safety concerns.

The issue was that live cables were having to be removed from cleats, work carried on around them, and then somehow placed back between tightly spaced upright bolts at regular intervals along the entire run. Our answer was a stackable, all polymeric product that can be stacked and fixed with nothing more complicated than a quarter turn fixing lock – a solution that means additional cable runs can be added quickly and easily, without any need to tamper with existing ones.

You’ve also won orders with major players like Petrobras and Siemens. How have you won work with such big operators?

We’ve always seen ourselves as market influencers and solution providers, as opposed to simply cable cleat manufacturers. We focus on the importance of cleats and the very clear dangers of attempting to secure electrical cables with underspecified products.

What this means in practice is that when companies have a specification query they come to us first and we always deliver a workable answer.

As a result, our reputation as a tried, tested and trusted cleat partner has grown, and combined with the efforts of our global network of local distributors, and the great work done by sales and marketing in Rillington, we are now in the mix for virtually every relevant specification anywhere in the world.

You serve 38 markets worldwide, do you have any plans for further expansion?

Before I joined the company in 2001, export was something Ellis really only dabbled in. Today it accounts for over 50% of our annual turnover and sees us export around the world through a network of Ellis sourced and appointed local distributors.

This though won’t be the end of our export growth story. We are constantly researching new markets, which become active when we are satisfied there is scope for us to operate successfully in them.

Do you have any new exciting product launches coming up?

Product development plays an important role in our on-going success, and our in-house R&D and marketing teams have just launched the twist-foot Vulcan+.

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This innovative new cable cleat has been designed for installation on cable channel and ladder with inverted rungs, and features a unique pre-installed fixing mechanism that significantly reduces installation time and simplifies the ordering process.

What might our readers be surprised to learn about Ellis?

The Ellis story is littered with surprises. Our founder, Mr Arthur Ellis was a Spitfire pilot who carried out more than 90 missions in World War II. We wouldn’t be who we are today if it hadn’t been for soft drinks manufacturers switching from glass to plastic bottles in the 1970s, leading to our current owners diversifying their business portfolio. Our in-house design capability doesn’t just extend to cable cleats – we have a pipe fixings division that makes millions of plastic fixings every year, and manufactures the vast majority of the eel tags and otter guards required in the UK.

Global opportunities BANGLADESH

Rooppur nuclear power plant Operator: Bangladesh Atomic Energy Commission Value: US$13.9bn The Bangladesh Atomic Energy Commission has formally received a design and construction licence for unit 1. Construction of the country’s first nuclear power plant is expected to begin on 30 November 2017.

THE UK

Offshore wind farm Moray Firth eastern development area Operator: Moray Offshore Renewables Ltd Value: US$7.2bn Siemens has signed a preferred bidder agreement for the onshore works and three offshore substations for the 950MW Moray 1 wind farm.

EGYPT

Onshore wind farm Gulf of Suez Operator: Egyptian Electricity Transmission Company Value: US$400m A consortium of ENGIE, Toyota Tsusho Corporation and Orascom Construction has been awarded the contract to develop the 250MW wind farm. Financial close is expected by the end of 2017.

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

THE PHILIPPINES

QATAR

Batangas naphtha cracker expansion

Bul Hanine oil field redevelopment

Operator: JG Summit Holdings Inc Value: US$600m Posco E&C has won an EPC contract valued at US$197m for the expansion of the naphtha cracker facility and building of a new hydrogen process plant for pyrolysis gasoline.

Operator: Qatar Petroleum Value: US$11bn McDermott has been awarded an EPCI contract valued at US$450m for phase 1b of the project. The scope of work includes fabrication and installation of four wellhead topsides, a manifold platform and jacket with associated subsea pipelines and tie-in work.

MEXICO

Ixachi-1 oil discovery Operator: Pemex Value: US$500m Pemex made the country’s largest onshore oil discovery in 15 years in early November. The Ixachi-1 find has potential recoverable reserves of 350MMboe. The field is located close to existing infrastructure.

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New EIC members OVERSEAS GLOBAL MEMBER

NEW GLOBAL MEMBER

OVERSEAS GLOBAL MEMBER

Al Yaseah Group

LECO

PO Box 3949 Abu Dhabi United Arab Emirates

Mansfield Road Aston Sheffield S26 2BS

Leistritz Pumps GmbH

The Nominated Representative is Mr Khalid Mohamed Helal Al Qubaisi, Managing Director Telephone +971 (0)2447 7741 Ext 107

The Nominated Representative is Mr Tom Angelino, Director, Power Generation Industry Segment

Markgrafenstrasse 36-39 Nuremberg Germany 90459 The Nominated Representative is Ms Hortence Yagmur, CRM Support

Telephone +44 (0)114 287 2401

Telephone +49 (911) 4306 739

Email khalid.alqubaisi@alyaseah.ae

Email tom_angelino@lincolnelectric.com

Email hyagmur@leistritz.com

Web www.alyaseahgroup.com

Web www.lincolnelectric.com/en-gb

Web www.leistritz.com

Al Yaseah Oil & Gas Industry Supplies and Services was established in 1981 by the late Mr Mohamed Helal Feraih Al Qubaisi, an eminent UAE national. By 1999 the company completely transformed itself from a supply company to an organisation that deals with integrity and maintenance services, fabrication and mechanical contracting, engineering consultancy and aviation services.

Lincoln Electric is a world leader in the design, development and manufacture of arc welding solutions, robotic welding and cutting systems, plasma and oxy fuel cutting, and is a leading provider of brazing and soldering alloys.

What started out as a small company in 1924, is now a globally active firm with more than 300 employees who offer the widest product range within the field of screw-pumps across the company’s branches in key markets such as the USA, China, Singapore, UAE, India and Italy.

With more than 100 employees in strategically located offices in the region, the Al Yaseah brand name is synonymous with excellence, safety and value among customers.

Headquartered in Cleveland, Ohio, USA, Lincoln Electric has 63 manufacturing locations, including operations and joint ventures in 23 countries, and a worldwide network of distributors and sales offices reaching over 160 countries.

Over the last three decades, Al Yaseah has spread its wings worldwide, reaching out with engineering, construction and construction support services to the energy industries.

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Leistritz’ customers in various industries benefit from its established knowledge and technical expertise as it offers tailor-made pump solutions of optimum efficiency and longservice life, ranging from the individual pump to a complete system, whatever the application.

New EIC members

NEW GLOBAL MEMBER

NEW UK MEMBER

Maritime Developments Ltd

Trelleborg Offshore

Underwater Cutting Solutions

62 Dee Street Aberdeen Aberdeenshire AB11 6DS

Stanley Way Skelmersdale Lancashire WN8 8EA

Unit 8, Inverurie Business Park Souterford Avenue Inverurie AB51 0JZ

The Nominated Representative is Mrs Jo Shailes, VP Marketing

The Nominated Representative is Ms Louise Warbrick, Commercial Manager

Telephone +44 (0)1695 712 000

Telephone +44 (0)1467 622 212

Email jo.shailes@trelleborg.com

Email lwarbrick@ucsltd.net

Web www.maritimedevelopments.com

Web www.trelleborg.com/offshore

Web www.underwatercuttingsolutions.com

Back-deck is the company’s speciality and its passion – non-stop since 1999. Maritime Developments holds an industryrespected track record of design, manufacture and delivery of bespoke engineering solutions for the global energy sector.

Using advanced polymer material technology, Trelleborg’s offshore operation provides high integrity solutions for the harshest and most demanding offshore environments.

Underwater Cutting Solutions Ltd (UCS), has become a leading provider specialising in cold cutting of pipelines and structures, both subsea and topside aimed at the decommissioning, inspection, repair and maintenance sectors.

The Nominated Representative is Mr Mike Gaskin, Commercial Director Telephone +44 (0)1779 491 144 Email m.gaskin@ maritimedevelopments.co.uk

Maritime Developments’ innovative in-house design is forwardthinking, but its work formula is simple: listen, design, deliver, support. The company has found its niche in the market, and it sticks to it. That is why clients pick Maritime Developments as their back-deck solutions provider of choice, time and time again.

Trelleborg Offshore specialises in the development and production of polymer and syntactic foam based seismic, marine, buoyancy, cable protection and thermal insulation products, as well as rubber-based passive and active fire protection solutions for the offshore industry. Trelleborg’s offshore operation has been providing innovative solutions to the industry for over 30 years.

The product portfolio includes: complete pipelay spreads; horizontal and vertical lay systems; reel drive systems; tensioners; deck winches; overboarding chutes; compensators; spoolers and level winders; reel under rollers; radius controllers; manifold systems and HPUs; control systems and EPUs; marine cranes.

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UCS utilises a large range of innovative, purpose designed tools and techniques including mechanical saws, hydraulic shear cutters and abrasive waterjet cutting techniques, complemented by a range of market leading seabed dredging systems and coating removal tooling. With extensive experience and comprehensive capabilities, standard and bespoke tooling solutions, UCS offers efficient, effective and reliable cost-effective systems. UCS takes great pride in designing, manufacturing and testing bespoke solutions and new tooling to fulfil all client needs.

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Member news ENGIE Fabricom awarded significant EPC contract Leading multidiscipline engineering, project management and construction company ENGIE Fabricom has been appointed as the main EPC contractor by Tricoya Ventures UK Limited, a subsidiary of chemical technology group Accsys Technologies, for the delivery of a new, innovative Tricoya® wood chip acetylation plant at Saltend, Hull.

Wood acetylation is a process which increases the amount of ‘acetyl’ molecules in wood, thereby changing its physical properties, protecting it from rot. The plant will produce acetylated Tricoya® chips to be used as feedstock for the production of high performance MDF or particle board panels. A project team encompassing process, procurement, mechanical, electrical, control and instrumentation, piping and civil discipline engineers, based at ENGIE Fabricom’s Immingham facility, has already started initial works with site establishment now complete. A front end engineering and design verification has already been completed with the detailed design and engineering stages currently underway. As well as creating 130 local jobs during the construction phrase, the project is forecast to deliver £58m of investment into the Hull and Humber region. The facility is scheduled to be completed by spring 2019 and once operational will create approximately 30 full time jobs.

For more information: www.engie-fabricom.co.uk

Glamox supplies LED lighting to Modec FPSO

Lighting specialist Glamox has supplied a complete lighting package for a new floating production storage and offloading vessel (FPSO) that will operate off the coast of Brazil, the FPSO Cidade de Campos dos Goytacazes MV29 FPSO, which is being constructed by Modec, one of the largest FPSO contractors in the world.

Utilising QR codes on each tool, i-calibrate offers instant, paperless, real-time access to calibration and test certification for entire inventories. Complementing HTL’s existing calibration and testing service, the new software provides a digital calibration and test process as well as an automated reminder feature. i-calibrate offers users 24hour access to the most important calibration and test information including certificates and automated reminders, from any smart device.

The Cidade de Campos FPSO is owned and operated by Modec on behalf of the Brazilian oil major Petrobras. The FPSO will operate off the coast of Rio de Janeiro and will be the 10th vessel it manages on behalf of Petrobras. Glamox has supplied more than 1,800 LED luminaires to the FPSO, with products ranging from the DL60 series of downlights to explosionproof products such as the FX60 series of LED floodlights and the MAX LED series of LED luminaires. LED lighting systems ensure a long lifetime, and reduced maintenance – valuable features for the FPSO that is expected to be deployed offshore for more than 20 years.

For more information: www.glamox.com/gmo

HTL Group launches i-calibrate

Global OEM HTL Group has developed a new in-house innovative product: i-calibrate. Offering complete certification traceability, i-calibrate ensures that users have complete control of calibration and test services via a simple to use portal.

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Commenting on HTL Group’s latest product, CEO Stephen Jones said, ‘Our number one priority is to develop new products and services to make our customers’ lives easier. ‘With the launch of i-calibrate, we aim to bring a complete calibration and test service to market which ensures that there is nothing we can’t take care of for our customers. ‘Instant access to important calibration and test information including automated reminders allows the customer to control and manage their own calibration and test maintenance at ease.’ i-calibrate works by printing QR codes on each calibration label that records all current certification, providing a unique way for the user to access certificates from any smart device for their complete controlled bolting fleet 24 hours a day, seven days a week.

For more information: www.htlgroup.com

Member news

MMI Engineering supports award winning Centrica project

Provider of technical consulting and engineering services MMI Engineering (MMI) has successfully supported Centrica on a project that went on to land an award at the Offshore Safety Awards hosted by Oil & Gas UK. The Warrington-based company delivers support to the awardwinning Centrica Dropped Objects Prevention Scheme (DROPS) campaign team on a range of areas. The Centrica Asset Integrity DROPS campaign team, led by Bob Taylor, received the Operational Integrity Award in recognition of its increased understanding of risks through sensible and proportionate risk management solutions. Held at the Aberdeen Exhibition and Conference Centre, the awards ceremony recognises companies and teams that strive to make the UK Continental Shelf one of the safest places to work in the oil and gas industry globally. Speaking about the project, Philip Taylor, Project Engineer based at MMI’s Ballymena office said, ‘Our consultants specialise in risk management strategies to facilitate risk reduction, providing pragmatic and cost-effective solutions with maximising safety at the heart of everything we do. It is great to see that our hard work and expertise has contributed to this award.’ Centrica’s DROPS team acts as a fast response team, addressing damage or wear to topsides structures. The work undertaken by MMI includes surveying areas of the platforms ahead of the DROPS team, identifying potential dropped objects, prioritising those that pose greater risk and further advising on appropriate remedial solutions.

For more information: www.mmiengineering.com

NEL’s wet gas flow testing facility in Glasgow

NEL invests in wet gas test facility

Flow measurement R&D specialist NEL has invested £200,000 in further developing its Glasgow-based wet gas flow testing facility, as part of a continual programme to deliver industry-leading test facilities. NEL’s Glasgow laboratory is the UK’s only independent commercial facility that can generate wet gas flows using water and oil simultaneously. As it more accurately replicates the real-world conditions faced by industry, uncertainty is reduced and operators’ financial exposure minimised. This significant investment in bespoke equipment at the facility will reduce maintenance time, improve flow rates and optimise control of test points – increasing service reliability and improving test completion times for NEL’s customers. In response to increasing industry demand for testing wet gas flows with simultaneous oil and water loading, the facility is capable of dry gas flowrates exceeding 2,000m3 per hour, in pressures up to 63 bar, alongside simultaneous water and oil injection rates of 90m3 per hour. Muir Porter, Group Manager at NEL, said, ‘Using our facility, manufacturers can test meters more accurately and quickly, while operators are assured of independent validation and calibration before they embark on the costly process of installing flow meters.’

For more information: www.tuvnel.com

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NES Global Talent employment report shows confidence returning

A survey carried out by NES Global Talent and oilandgasjobsearch.com shows that for the first time since 2014 the oil and gas industry expects more new jobs to be created than lost over the next 12 months. More than 3,000 employers and almost 7,000 workers were questioned as part of the companies’ Oil and Gas Outlook 2017 report. The survey shows that in total almost 60% of employers expect to recruit significantly over the next 12 months. Of those almost a quarter (23%) of employers expect to increase their workforce by 5%; almost a fifth (19%) expect to increase staffing by between 5 and 10%; and more than a sixth (17%) by more than 10%. Almost a third (30%) of employers expect staffing levels to remain the same and just 11% of employers expect to cut jobs. Tig Gilliam, CEO of NES Global Talent, said, ‘Energy companies with the support of their partners have rightsized their organisations for the current levels of activity. With a stabilised price environment and lower cost profile more and more assets offer attractive returns on investment and operations. This increasing activity is leading the higher performing companies to refocus on quality people to lead and deliver value.’

For more information: www.nesglobaltalent.com

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Member news

PJ Valves hires Group Operations Director to drive global operations

PJ Valves (PJV), the specialist manufacturer and supplier of valves for the global energy industry, has appointed Tien Do as Group Operations Director to its UK office. Tien has almost two decades’ experience in operational management, project execution and global manufacturing. His previous roles include Director of Projects and Tenders at National Oilwell Varco after the acquisition of Fjords Processing. Previously, he held the position of Operations Director at Fjords Processing from 2007 to 2016, where he led the successful development of its manufacturing facility in Shanghai.

With his wealth of knowledge, including EPC expertise and understanding of valve procurement, he is the ideal candidate to consult our customers, drive our projects forward and champion our manufacturing facilities. Dan Munro, Group Managing Director

Tien has proven expertise in project delivery having played a key role in the Catcher FPSO project, one of the world’s largest floating production storage and offloading (FPSO) vessels, where Fjords Processing supplied the largest produced water treatment and seawater injection module to date. He worked on the project from initial sales lead through to completion of the manufacturing stage, delivering an 18,000-tonne module to the FPSO.

For more information: www.pjvalves.co.uk

Servelec Controls becomes first OSIsoft Select Partner in the UK

Leading independent integrator of mission critical control and safety systems Servelec Controls has been awarded Select Partner status by OSIsoft, an invitation only level accreditation reserved for partners who provide a higher degree of value to their customers. Servelec is one of only five Select Partners globally, and the first in the UK. The certification recognises its capabilities with the OSIsoft PI System and commitment to providing its customers with innovative solutions for critical applications. More than half of the OSIsoft accredited engineers in the UK are a part of Servelec Controls’ team of industry specialists. Of the eight infrastructure specialists, four have also achieved the PI Installation Specialist accreditation. Ronald Holden, Divisional Director of Servelec Controls and the Commercial Partner Manager for the relationship with OSIsoft, said, ‘We have worked closely with OSIsoft for over 15 years to deliver innovative real-time information solutions to our customers and, through our longterm commitment to support these customers, to maintain and enhance their investment. We have travelled with OSIsoft on their journey of growth and its corresponding development of a mature partner programme, and are delighted to be the first UK company to achieve recognition in the Select tier. ‘I’m looking forward to seeing this relationship develop further as we continue to provide unrivalled value and expertise to our customers seeking real-time infrastructure and sensor-based data collection information solutions.’

For more information: www.servelec-controls.com

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Sparrows Group and Hydra Group launch joint venture in Ghana

Sparrows Group has formed Sparrows Offshore Ghana Ltd, a joint venture (JV) with local partner Hydra Group Limited, to deliver crane, lifting and inspection services in Ghana. The JV will service strong demand for an experienced lifting and mechanical handling specialist in the country. Accra-based Hydra Group has several years’ experience in the oil and gas industry and has a proven background in developing successful partnerships with international companies. Sparrows’ extensive experience operating across West Africa, particularly in Angola and Nigeria, has seen the company win work in Ghana over the past 12 months and this new agreement firmly establishes their presence there.

New EIC members Member news Social media round up

Social media round up

Wozair to exhibit at EIC Connect Power, Nuclear & Renewables 2017

Located in stands P18/P20, close to the entrance, Wozair will be displaying their latest products and technology at EIC Connect Power, We want to use every opportunity to connect with Nuclear & Renewables 2017, held at our members, so please follow us on Twitter ACC Liverpool, 28-29 November.

(@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. Visitor’s to Wozair’s stand will find

its latest products The EIC for the nuclear @TheEICEnergy

industry, including

Sparrows Group

Stewart Mitchell, Chief Executive Officer at Sparrows Group, said, ‘We believe there is a gap in the market for a crane specialist to provide all forms of lifting, mechanical handling and inspection services in Ghana. ‘In forming the JV with Hydra Group, we are offering a service that combines our expertise with the infrastructure of a well-respected company with extensive local knowledge of the Ghanaian offshore market. ‘The partnership will also enable us to deliver our full service offering that includes a range of integrated engineering services. Having trusted partners throughout the world is part of our strategy to deliver equipment and services wherever demand exists.’

brand-new AHU The latest issue of EnergyaFocus explores business strategies being design adoptedfeaturing to meet the challenges of energy markets bit.ly/2x0ercV many advanced functionalities and benefits ideal for any nuclear power location, such as modular design, The EIC high-efficiency @TheEICEnergy fan design, and Yesterday marked the closesuperior of anotherfiltration. successful UK pavilion at #adipec2017. Thanks to all our exhibitors and sponsors @Shell & @Woodplc

Energy Industries Council (EIC) EIC Oil & Gas Indonesia 2017 took place in Jakarta today, the largest inward UK delegation to the country in 10 years!

The JV creation was supported by Scottish Development International, the international arm of the Scottish Government and Scotland’s enterprise agencies.

For more information: www.sparrowsgroup.com

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EIC ABERDEEN LOOKING FOR AFFORDABLE AND FLEXIBLE OFFICE SPACE? The EIC has prestigious offices in the West End of Aberdeen available for lease/lease-share. We are delighted to offer three offices to lease. The tenant offices are fully equipped with all the amenities you will need. Whether you are looking to downsize or wish to avoid the complexities of setting up a new office, the EIC can provide the perfect solution if you are looking for a base in Aberdeen.

Benefits • Convenient city centre location within easy reach of Altens, Bridge of Don, Dyce and Westhill • Fully furnished, light and airy offices with use of additional conference and meeting space • Free fast wi-fi and reception services • Access to the regional team for support • Free parking for tenants and use of our conference room and kitchen facilities

Prices and Offers Prices start from £395 for 1 person office, £695 for 2 person office. 10% discount for EIC member companies. For a limited time only, the EIC is offering the first month free of charge when signing a 12 month lease. Only need the office for 2-3 days per week? We can offer flexible lease-share options. Contact the Aberdeen team to discuss your needs and availability further.

72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 | aberdeen@the-eic.com | www.the-eic.com

UK national events

EIC Connect Power, Nuclear & Renewables 2017: meet the exhibitors We met with three of the fifty-plus EIC Connect Power, Nuclear & Renewables 2017 exhibitors ahead of the event taking place in Liverpool on 28-29 November to find out what visitors to their stands can expect to find on offer. For full event details and to book your place please visit www.the-eic.com/EICConnect/PowerNuclearRenewables.aspx Aalco Metals is the UK’s largest independent multimetals stockholder and distributor. Aalco’s 18 strategically located UK service centres provide a next day service throughout the country.

What can visitors to Aalco’s stand expect to find on offer?

The first thing you’ll notice when visiting Aalco will be the excellence and professionalism of its team members. Aalco takes great pride in its people, who have unparalleled experience in providing a market leading supply chain for all stainless steels, aluminium and yellow metals. We are keen to connect with visitors and establish ourselves with their supply chain for years to come. In addition, visitors will learn about the responsive nature of Aalco as a supplier: every delegate will find one of our 18 UK based service centres only a short distance from wherever they are in the country.

AJT Engineering specialises in the supply of engineering sub-contract services offering clients full turnkey solutions. Operating across a variety of sectors, AJT has the ability to deliver best in class solutions Andy R o to the medium to heavy AJT E pe, Sales E n nginee ring Ltd gineer, engineering sectors. Core activities include CNC machining, specialised welding, repair, assembly and testing.

What can visitors to AJT Engineering’s stand expect to find on offer?

We will have our interactive touchscreen available where visitors can scroll through all of the specialised engineering services that we offer while getting to meet the team and discussing any requirements.

We will also be running our promotional video, which highlights our ability to offer full turnkey engineering solutions. Visitors will be able to learn more about all of the engineering services we provide and our new Site Services business stream. We hope to give attendees a full overview of AJT.

EA Technology is a specialist in asset management solutions for operators of electrical assets.

What can visitors to EA Technology’s stand expect to find on offer?

An unparalleled level of expertise in the management of high voltage infrastructure, that can be deployed easily into your sites operational areas. We have demonstration equipment that you can handle and try. We also have a number of case studies to run through which clearly demonstrate how EA technology can provide you with a safer and more efficient network.

Nathan H Manag ealey, Intern er, Aalc a o Meta l Account ls Ltd

Its market leader status has been established through the performance of its highly skilled workforce. With unparalleled industry experience, the company’s sales and procurement teams offer an incomparable service which guarantees quality and responsiveness.

The company is committed to providing its customers with innovative products, services, consultancy and Jason training which deliver B Directo utler, Key Ac c r, EA T tangible benefits for their echno ount logy L td businesses enabling them to create safer, stronger and smarter networks for today and the future. Sign up for the EICOnline newsletter

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December 2017

Forthcoming events 5 December Management Course

EICDataStream Overview EIC Rio de Janeiro

7 December Industry Overview

Fundamentals of Natural Gas EIC London

12 December Business Presentation

Opportunities with Petrofac Shangri-La Hotel, Dubai

12 December Management Course

EICDataStream Overview

January 2018

EIC Kuala Lumpur

3 & 17 January Management Course

EICDataStream training

EICDataStream Overview EIC Houston

13 December Business Presentation

JDR Cables Site Tour Hartlepool College

13 December Management Course

EICDataStream training Online

13 December Business Presentation

Doing Business in Canada EIC Houston

23 January Business Presentation

Business Lunch with Wood Plc

Online

Park Rotana, Abu Dhabi

18 January Industry Overview

Fundamentals of Oil and Gas EIC London

23 January Management Course

Contracts: Why they matter Addleshaw Goddard, London

BO NO O K W

12 December Management Course

26 January Corporate Entertainment

8th Annual Sporting Clays & BBQ American Shooting Centers, Houston

31 January Management Course

EICDataStream training Online

EIC Middle East Business Lunch

Opportunities with Petrofac Tuesday 12 December 2017 Shangri-La Hotel, Dubai

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

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

February/March 2018

Forthcoming events

7 February Industry Overview

Fundamentals of Subsea EIC London

8 February Industry Overview

Fundamentals of FPSOs EIC London

12 February Overseas Exhibition

1 March Corporate Entertainment

EIC Middle East Golf Tournament The Els Club, Dubai

4 March Overseas Delegation

Overseas Delegation to Saudi Arabia 14 March Management Course

Egypt Petroleum Show (EGYPS)

EICDataStream training

14 February Management Course

15 March HSE Training

New Cairo Exhibition Centre

EICDataStream training Online

28 February Management Course

EICDataStream training Online

ONS Sign up for the EICOnline newsletter

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

Online

Pressure Equipment Directive EIC London

28 March Management Course

EICDataStream training Online

STAVANGER 20 NORWAY 18

27 â&#x20AC;&#x201C; 30 AUGUST Contact lucia.durante@the-eic.com

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Overseas events Showcase your company in the UK National Pavilion • EGYPS 2018 After a very successful inaugural event in 2017, the Egypt Petroleum Show (EGYPS) is returning to Cairo for the second time from 12-14 February 2018. The EIC will again be organising and managing the UK National Pavilion at the event, already considered North Africa’s most important oil and gas show.

Exhibiting at EGYPS gives your company an incredible opportunity to access key players in this emerging region.

Egypt: a reforming and expanding market Egypt has made major improvements to its oil and gas industry over the past year. Long-delayed fiscal reforms have been implemented, resulting in 76 new upstream exploration concession agreements being signed with a minimum of US$15.3bn commitment from major IOCs. The country oil and gas industry has made headlines around the world with exciting developments such as the Zohr, North Alexandria and Noras (Nooros) projects underway. The prospect of increased diversification and investment in the downstream sector has resulted in the very real possibility that the country could become a net exporter of petrochemical products, with US$226bn worth of petrochemical projects planned. EGYPS EGYPS is the gateway to Egypt’s oil and gas opportunities. The exhibition and conference bring together Egyptian and North African government representatives, key project owners, NOCs and IOCs, international service providers, EPC contractors, consultants and financiers to discuss how they can work together on developments in the Egyptian and North African energy arena. The UK Pavilion at EGYPS 2017

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EGYPS 2018 is set to attract more than 500 exhibiting companies who will be able to showcase their products and services to over 15,000 visiting professionals from the GCC, MENA, Europe, Americas and Asia. The UK National Pavilion Exhibiting in the UK National Pavilion will allow you to generate new sales leads, increase brand awareness within the North African oil and gas market, launch new products and services, and meet with existing and new clients. The UK National Pavilion offers significant benefits and opportunities including: prime stand location, enhanced unique stand design, a pavilion lounge, promotion in industry publications, entry in the UK Pavilion brochure and more. The EIC can offer tailored regional and global advice, as well as facilitate meetings and networking opportunities with key decision makers and industry players. To request the event floorplan, application pack and further information, please contact lucia.durante@the-eic.com

EGYPS 2017 was definitely worthwhile. The UK Pavilion was situated in a great spot and we met lots of potential clients. EIC staff were very helpful and friendly and kept us in the loop with all the plans for the show. Ellie Tough, TWMA

EIC training

Umbilicals – the life line of subsea developments As the global demand for oil and gas continues to increase subsea technology must continually develop to reach greater water depths and span further across large oil and gas fields.

Subsea umbilical cables form a vital link between subsea production systems and the surface processing facility. Their functions include providing electrical power to the subsea equipment and facilitating communication across the field via signal and fibre optic cables. Crucially they are also used to control processes remotely and inject chemicals into the production stream. Aker Solutions recently announced that it has won a contract to deliver the world’s longest umbilicals system manufactured to date. The US$200m order requires 250km of steel-tube umbilicals which will link a new subsea development to an existing offshore platform. Manufacture will take place at the company’s umbilicals plant in Moss, Norway with delivery due at the end of 2018 – the client or project is yet to be announced.

The Fundamentals of Subsea Wednesday 7 February 2018 EIC London This course focuses on the fundamental concepts of construction, installation and maintenance to the continued development of subsea technology to tackle ever challenging environments. You will gain a good understanding of the key components of subsea engineering including flow assurance, reliability and maintenance.

Aker is no stranger to delivering large umbilicals, in June 2016 it was awarded a US$122m contract by Petrobel to supply 180km of steel tube umbilicals to Egypt’s Zohr gas field phase one. Discovered by Eni in 2015 this field is considered the largest natural gas discovery in the Mediterranean and is due to come online in December 2017. If you would like to find out more about the subsea industry the EIC is running the Fundamentals of Subsea course on Wednesday 7 February at the EIC, London. The course will be delivered by one of our industry experts, Dr John Preedy. John has a wealth of experience from his 28 years spent working with BP and Azur Offshore Ltd. At BP John took on the role of Research Associate and Team Leader, working on feasibility studies and acting as a ‘trouble shooter’ covering all aspects of BP’s businesses. His specific experience in the offshore sector covers subsea robotics/automation, seabed production concepts, FPSO turret technologies, seabed excavation methods, underwater repair techniques, flexible riser studies and maintenance cost reductions. Since 1996 he has been delivering a rage of industry standard courses in Europe, the US, South East Asia, Australia and Africa.

You may also be interested in

The Fundamentals of FPSOs Thursday 8 February 2018 EIC London Increase your knowledge of the FPSO industry and learn about FPSO technology and deployment including design, systems development, subsea engineering, operations and export activities.

Contact: training@the-eic.com

Our training courses are also available in-house. Sign If youup would for the likeEICOnline to find out newsletter more about our training programme please contact Emily Light at Visit Emailwww.the-eic.com/Forms/NewsletterSignup training@the-eic.com • Phone +44 (0)20 7091 8611

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Spotlight on technology ABLE Instruments & Controls

able.co.uk

MUDMASTER DRILLING MUD OUTFLOW ANALYSER

ABLE Instruments & Controls was founded to fill the void created by the rigid supply nature of instrumentation manufacturers and assist customers searching for bespoke solutions to their industrial and analytical measurement requirements. ABLE has built its success on these principles over four decades, realising the original concept of its foundation. The ABLE MudMaster places a powerful analytical tool in the hands of the drilling engineer deploying an array of non-invasive sensor technologies. The unique way in which these sensor outputs are combined is the key to the MudMaster’s ability to cope with aggressive, demanding and fluctuating process variables.

The Holy Grail of partially full pipe mass flow measurement

MudMaster provides a means by which increased safety for personnel, asset protection and improved production can be realised through enhanced automation of the drilling process, with consequent commercial benefits. Being able to deliver the industry ‘Holy Grail’ of partially full pipe mass flow measurement, the MudMaster accurately measures mass balance and delivers real time monitoring of losses and gains of drilling fluids to the well formation. Get in touch Share your news and views...

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

Attracting major attention

During trials on a major operator’s mobile drilling rigs, it became apparent that the MudMaster provides a wealth of data which interprets and presages key events in the drilling process, such as: • Mass balance and kick detection • Cementing efficiency • Live gains from formation and ballooning • Live losses to formation • Evaluation of live gas and solids concentration • In-hole cleaning operations

Improved safety, enhanced efficiency and reduced environmental impact

The accurate definition of such events facilitates improved safety, permanent loss of drilling fluids (which can account for up to 10% of the well construction costs), reduced non-productive time through verification of well integrity and drilling efficiency and reduced environmental impact due to preservation of the well bore and drilling hardware.

EIC Survive and Petrofac Proven capability to safely reduce cost of production and extend asset life

Story type: #innovation #collaboration Benefits: • OPEX savings: £2.15m+ per year • Improved safety • Reduced backlog to achieve asset availability of 98–99% • 10% efficiency gained on labour utilisation • Mitigated lost weather days

How is Petrofac thriving?

The company saw the opportunity to create synergies by managing two Duty Holder contracts as one. This allowed the two operators involved to save costs and enhance efficiency.

The challenge

In 2015, Petrofac had Duty Holder contracts in the Southern North Sea (SNS) area with Eni and Faroe Petroleum for the Hewett and the Schooner/Ketch fields, respectively. Including Operations & Maintenance (O&M), logistics and safety case support, the contracts scopes were very similar. The fall in oil and gas prices was already forcing operators to drive down costs and maximise efficiencies wherever possible. This also applied to Duty Holder contracts, which have aligned key performance indicators to provide incentives for cost and efficiency improvements.

The solution

Petrofac ran the contracts with Eni and Faroe Petroleum separately, but saw the synergy potential if the two contracts were managed as one, with aspects of the O&M infrastructure being shared by the two operators. Four opportunities were identified and agreed between Petrofac, Eni and Faroe under a tripartite agreement. Sign theversion EICOnline newsletter This isup an for edited of the case study.

Firstly, the operators used two helicopters: Faroe had the sole use of an AW139 helicopter with spare capacity during the entire year, while Eni used a helicopter on an ad hoc basis. Eni agreed to use Faroe’s AW139 helicopter, thus saving costs related to its own ad hoc aircraft use. Secondly, an agreement was reached regarding the supply vessels used by the two companies. Eni had the sole use of a vessel during the full year, while Faroe had an ad hoc vessel. The companies agreed to swap vessels to drive overall savings and, more importantly, balance the savings evenly between them. Another deal was struck for the offshore accommodation. Lastly, the companies agreed that Petrofac teams would work together on the assets and backlog programme by working on the manned Hewett platform during winter and on Faroe’s unmanned platforms during summer. This innovative collaboration has allowed the two operators to save more than £2.15m in OPEX costs since May 2015. The contracts are ongoing and the collaboration is now established between Petrofac and the two operators. The AW139 helicopter still has spare capacity and Petrofac has started talks with a third operator to join the collaborative agreement.

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Key findings: For the industry: • All norms should be challenged • Collaboration works best when all stakeholders have an appetite to adapt, and more so when the service provider can demonstrate the benefits of doing so • Collaboration is not just between operators, but also between clients and suppliers For the government: • Oil & Gas Authority could take these types of best practice ideas and incentivise all to take them on board Government support? Petrofac has not received any government support Petrofac at a glance Key products and services: operations and maintenance, engineering, asset management, well engineering, late life asset management and decommissioning, training and competence solutions Main sector(s) served: oil and gas Headquarters: London, UK Year established: 1981 Number of employees: 13,500 Revenue: US$7,873m 2016

Reducing the cost of operations in the UKCS is a collective industry responsibility. By delivering cost reductions and synergies safely we benefit our clients and support a cultural step change.

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Walter Thain, Managing Director

EIC Survive and thrive

PJ Valves A global approach for valves to support oil and gas projects effectively and competitively

Story type: #export #innovation #optimisation Benefits: • New revenues: US$15-20m Key findings: For the industry: • Differentiation is enhanced if you can move up the value chain from component supplier to advisor with expertise

How is PJ Valves thriving?

PJ Valves (PJV) has thrived during the oil and gas downturn by adopting a threepronged approach: expanding into new markets, investing in new manufacturing facilities, and ensuring both sales and manufacturing processes focus on the individual needs of each project.

The challenge

The fall in oil price motivated several cost reduction initiatives in the oil and gas sector. This led to a change in behaviour among the end-users of PJV’s products, who increased their focus on costeffective, enhanced supplier support. PJV’s international offices provided some protection against the industry downturn as the company could focus on demand hot spots.

The solution

PJV is part of a fragmented market which requires manufacturers to differentiate. The company innovated by identifying target projects and then supporting the various end-users and engineering companies throughout FEED to EPC – ensuring operations were prepared for individual project requirements. PJV leverages its long-established valve knowledge and expertise to support the project specification development through to execution – always putting the customer and their project first.

PJV has evolved its role from a valve manufacturer and supplier to an advisor, expert and partner to ensure customers receive fit-for-purpose, cost-effective valves. The international nature of its business has allowed PJV to increase close customer support across America, Europe and Asia while maintaining strong supply chain relationships. PJV has seen small incremental benefits by having good IT practices to help team work across time zones. This approach has succeeded in cultivating approximately US$15-20m of new business opportunities over the last two years, the equivalent of one year’s revenue. PJV’s success is also due to two other factors. Firstly, the company successfully managed to develop its export capabilities. Today, over 70% of the company’s revenues derive from export opportunities, compared with 20% in 2011. Secondly, PJV’s decision to optimise its manufacturing capabilities by investing in a factory in India provides a compelling cost-base to customers. The company is now evaluating new regions for expansion and is considering a fast growth approach to stay ahead of the competition.

Get inan touch your news and views... This is editedShare version of the case study.

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• Export growth is possible in a downturn, and can be achieved quickly and economically For the government: • When businesses actively engage with Department for International Trade (DIT) and UK Export Finance (UKEF), value is delivered Government support? The DIT provided export support. PJV is currently working with UKEF to obtain 80% coverage for bonds PJ Valves at a glance Key products and services: engineered industrial valves Main sector(s) served: oil and gas Headquarters: Hertford, UK Year established: 1976 Number of employees: 85 (group) Revenue: US$20m

Our company has wrestled with the challenge of low demand over the last few years, like many others. It’s clear that the answer to this, is to do a better job for our customers. Not only through the manufacture and supply of valves, but by broadening and deepening our customer relationships to provide more value while reducing cost. Dan Munro Group Managing Director

EIC Survive and thrive

Servelec Controls New remote O&M technology that enables long-term field viability

Story type: #innovation #technology Benefits: • Annual OPEX savings of £80-90m for one UKCS operator (based on tangible savings estimated for one asset, multiplied by 8 platforms) • Production enhancement – O&M savings fund upgrades to improve production and efficiency • Extended field viability by 15 years

How is Servelec Controls thriving?

The company has introduced a remote operation, maintenance and monitoring solution to convert mature manned offshore platforms to unmanned. This disruptive innovation decreases O&M costs, improves safety and ultimately maximises asset value. This is a game-changing idea for the oil and gas sector and an opportunity for oil companies across the world.

The challenge

During prosperous times oil and gas companies are very complacent, less prone to taking new risks and closed to new ideas. With the fall in oil prices, operators suffer, start cutting on spending and see their assets lose viability. In this context, Servelec Controls considered a key question: could they make fields viable again by innovating and using new technology efficiently?

The solution

Following a helicopter accident in the North Sea in 2006, Servelec Controls began to consider why offshore platforms needed to be manned. The company produced a study in 2007 that identified new solutions to reinvent the maintenance of old offshore assets, concluding that the key to cutting OPEX expenses was to simplify the process by converting manned offshore platforms to unmanned. Sign theversion EICOnline newsletter This isup an for edited of the case study.

Making use of its experience in control and safety systems, Servelec Controls developed a remote operations solution via automation systems. Routine maintenance can be undertaken remotely via SCADA (supervisory control and data acquisition) systems which monitor and enable remote restart of systems, assisted by drones, CCTV cameras and other monitoring technologies. Over the last 2-3 years the company has also developed a fully-remote unmanned restart capability for black start scenarios. This solution presents various benefits for the industry. It enables massive OPEX savings in various areas, reduces downtime and brings down insurance as well as logistics costs. Also, the overall cost reduction improves field viability and provides an opportunity for operators to delay abandonment, an activity which brings massive costs. Making remote O&M possible involves the replacement of pneumatic valves with electric valves, which requires upfront investment. These valves are controlled by a distributed control system, which decides whether the platform is still safe to operate following a spurious trip event and allows a remote restart. Indeed, monitoring and assessing restarts is a key aspect of the remote O&M concept.

Key findings: For the industry: • Existing industry practices in offshore platform O&M have not changed for 40 years and are ripe for disruptive innovation • Even the best idea needs a brave first customer • New technologies are enabling huge shifts to remote O&M For the government:

• Policy-makers need to prepare for the implications of this type of disruptive innovation • SMEs with these types of important ideas will need help to scale up fast • The UKCS regulator (Oil & Gas Authority) and the Oil & Gas Technology Centre should have direct roles in encouraging industry to adopt these changes – in line with the MER strategy Government support? Servelec Controls has not received any government support Servelec Controls at a glance Key products and services: safety and controls systems Main sector(s) served: oil and gas, power Headquarters: Sheffield, UK Years established: 40 Number of employees: 105 Revenue: £10-15m (2016)

Our remote operations solution is a gamechanger for the industry as it allows operators to extend the operational life and increase the commercial viability Andrew MillsGroup of ageing assets. Follow @TheEICEnergy Join the EIC LinkedIn

Centrica is implementing this approach on its eight platforms in the East Irish Sea, with the potential for savings of up to £10m annually per platform.

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MD, Servelec Controls (Oil & Gas)

Some of the exciting upcoming Energy Industries Council events

28 November 2017 EIC Connect Power, Nuclear & Renewables Liverpool 12 December 2017 Opportunities with Petrofac Dubai 23 January 2018

Opportunities with Wood Plc Abu Dhabi

1 March 2018

EIC Middle East Golf Tournament 2018 Dubai

17 April 2018

EIC Connect Oil, Gas and Beyond Abu Dhabi

12 February 2018 Egypt Petroleum Show (EGYPS) Cairo

16 April 2018

23 April 2018

30 April 2018

6 May 2018

Overseas Delegation to Senegal & Mauritania

Overseas Delegation to Mozambique

Offshore Technology Conference (OTC) Houston

Iran Oil Show Tehran

For more information about our events, or to book, please visit www.the-eic.com/Events

23 23

Middle East news Regional update

As one heads into December, a degree of reflection takes place, usually always accompanied by the thought: ‘Where has the year gone?’ It seems like only the other Terry W illis day that we were preparing January’s news! Although not that long ago, November was a classic month when we once again experienced ADIPEC in all its glory, which was followed by a very successful delegation to Uganda with the month being topped off with another successful EIC Connect event back in the UK. For December, we are looking forward to what we are sure will be another very successful seasonal themed lunch with Petrofac on the 12th. They continue to maintain their position as the number one EPC contractor in the region and are always ready to engage with UK companies. As in the past, there will be two presentations, one focusing on business development and current project activity while the other will detail their supply chain procedures and the steps companies need to take to do business with them. By the way, Petrofac still hold the record for the most delegates at an EIC Dubai event. That was five years ago when 164 signed up to meet them, let’s see if they can beat their own record this time. Following the seasonal break, we will see the new year in with a visit to the World Future Energy Summit, arguably the leading clean energy event, most certainly the case for the Middle East. Amisha Patel, our Head of PNR, will join us. She’ll also be using the opportunity to provide a global update for our local members. Later on in the month, on the 23rd, we will have the pleasure of hosting Wood who will update us on how the new company is developing following the take over of Amec Foster Wheeler.

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

February will see us in Cairo for the Egypt Petroleum Show after which we will be once again on the golf course at the Els Club, Dubai for our annual tournament which this year is being sponsored by LoneStar Triplefast. Another date for the diary is 17 April, the day designated for our local EIC Connect event which promises to be better than ever with even more engagement from ADNOC. Lastly, and on behalf of all my colleagues here in Dubai, may we wish you the very best for the festive season as well as a happy and prosperous 2018. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com

Regional news

Eni to start-up Zohr project

Zohr gas field phase one is on track to start-up this December. The field is located 190km offshore Egypt and is expected to hold up to 30Tcf of gas, 22Tcf of which is thought to be recoverable. The field is set to start production at a rate of 350MMcf/d, and is expected to rise to 700MMcf/d after two months, and then again to 1Bcf/d by the end of Q1 2018.

Forthcoming events

Please go to page 14 to see upcoming events in your region

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Asia Pacific news Regional update After months of planning and hard work the first ever EIC Oil & Gas Indonesia event took place in Jakarta on 1 November.

Regional news

Azman

Nasir

I’m pleased to report that it was a great success with over 70 UK companies working in the global upstream oil and gas industry attending, making it the largest UK inward delegation to the country in more than 10 years. The event, which we co-hosted with Indonesia’s oil and gas regulator SKK Migas and the UK’s Department for International Trade, was officially opened by SKK Migas Chairman Amien Sunaryadi and the UK Ambassador to Indonesia Moazzam Malik. 200 delegates heard from 18 speakers including BP Indonesia, Eni, Husky-CNOOC, Pertamina, Saipem Indonesia, Saka Energi, Santos, Shell Indonesia, and Total, on project opportunities in the region. As well as providing updates on their developments in the region, representatives from five of the 16 participating operators also took part in over 150 private one-to-one meetings with the UK delegates to discuss how they can work together and add value to the local supply chain. Direct, face-to-face meetings with so many operators like this is almost unheard of in Indonesia. Such was the success of the event that we’ll definitely be running it again next year – I’ll let you know the details as soon as possible. Wishing you all a merry Christmas and a prosperous New Year. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

US$40bn investment expected in India’s O&G sector

India’s oil exploration and production sector will see investments worth US$40bn over the next four to five years, according to the minister of petroleum and natural gas. It is understood that field development plans worth US$13.6bn are already approved. Meanwhile, India’s Directorate General of Hydrocarbons has received 51 proposals seeking about 60,000sq km of area for exploration of oil and gas.

Myanmar needs US$30bn for national electrification

The South East Asian country requires a total of US$30bn over the next 15 years if it is to achieve its goal of national electrification by 2030, according to estimates by The World Bank Group. Myanmar is currently receiving financial support from institutions like the World Bank, Asia Development Bank and the International Monetary Fund to build up capacity in its energy sector.

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

Delegates and event organisers the EIC, DIT and SKK Migas at the inaugural EIC Oil & Gas Indonesia event in Jakarta

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

North and Central America news Regional update

2017 has been a year full of new developments for the EIC, including our bespoke O&M database, EICAssetMap, a new line of EIC Country Reports, and perhaps most pertinently to our local Amand a Duho n members, the first ever edition of EIC Connect Oil & Gas USA. We launched the inaugural EIC Connect Oil & Gas USA in October. It was extremely well received with about 200 delegates and speakers in attendance. This conference and exhibition provided insights on current and future supply chain and project opportunities with operators and contractors, as well as advice on how to increase their competitiveness to earn business and thrive in the new energy world context. We would like to thank our sponsors, event partners and the 20+ key operators and contractors who presented and hosted one-to-one meetings with delegates.

EIC CEO Stuart Broadley presenting at EIC Connect Oil & Gas USA 2017

This month we will be joined by Tracey Grindal, Trade Officer for the Department for International Trade, British Consulate General Calgary who will discuss opportunities and entry strategies for the Canadian market at our Doing Business in Canada event on 13 December. EIC members will hear from market stakeholders about key elements to doing business in the sixth largest oil producing country, Canada. As the year draws to a close, on behalf of the whole EIC North and Central America team, I would like to wish all of our members happy holidays and look forward to welcoming them to the exciting events we’ve got planned for 2018.

Regional news

Puerto Rico’s power grid to be restored by Fluor Corporation

The US Army Corps of Engineers has awarded a US$240m, six-month contract to Fluor who will be tasked with providing engineering, procurement and construction services to aid power restoration efforts in Puerto Rico. Hurricane Irma devastated the island in September, and left just 20% of the population with access to power in the month that followed the disaster. Fluor will evaluate equipment and repair where necessary, and will also assist with the recommissioning of aging substations that will help safeguard the island from such catastrophic damage in future.

Rick Perry pushes for US coal and nuclear incentives

US Energy Secretary Rick Perry is urging the Federal Energy Regulatory Commission (FERC) to push through a rule that would reward struggling nuclear and coal facilities ‘that add much needed reliability to the nation’s power grid.’ Perry argues that a diverse mix of power generation sources are required for times when ‘the wind quits blowing, or the sun quits shining.’ The issue remains hotly contested however, as congressional Democrats argue that there is no impending grid reliability crisis and that Perry’s incentive scheme imposes on free market policy.

Forthcoming Events

Please go to page 14 to see upcoming events in your region

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 Sign up for the EICOnline newsletter

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South America news Regional update

The EIC Rio team is excited about organising the UK pavilion at Rio Oil & Gas 2018 (23-27 September), the largest oil and gas trade show in Latin America. In 2016 over 34,000 Clariss e Roch industry professionals visited a over 540 exhibitors. Joining the UK pavilion is a special opportunity to raise the profile of your company within the Brazilian industry. Please contact me for details on how to book your stand. OTC Brasil took place in October in Rio. Although much smaller than usual, a sense of optimism was felt throughout the show and the networking was highlevel as it was easy to meet with operators such as BP, Petrobras, Shell and Total who were also exhibiting. During the week, the EIC Rio office hosted a workshop about local content in partnership with DNV and another one covering Petrobras’ procurement procedures.

In order to increase transparency, a new procurement law was launched covering Brazilian state companies and Petrobras is adapting its processes to comply with this regulation from mid-2018 onwards. Companies registered with it will be able to view online all the bids taking place and request to participate, rather than waiting for an invite. Therefore, being registered with Petrobras will be key in the future. The UK Brazil Energy Showcase 2018 has been confirmed to take place on 20 March 2018 and the EIC will lead the mission related to offshore construction, maintenance and repair. If your company is involved in this segment, it is a brilliant opportunity to re-assess the market. The EIC will also moderate a workshop on the same theme during the event. The Rio team would like to wish you a happy festive season and looks forward to supporting your company to develop in the region throughout 2018.

Julia Mota presenting at the EIC Procurement Workshop with Petrobras

Regional news

Brazil awards pre-salt blocks Petrobras, Shell and Statoil became operators of new pre-salt blocks following the two bidding rounds organised by the National Petroleum Agency (ANP) in late October. The two rounds awarded six out of eight blocks on offer, raising US$1.89bn in signature bonuses and a minimum investment commitment of US$233m. Petrobras became the operator of three blocks: Entorno de Sapinhoá, in partnership with Shell and Repsol Sinopec; Peroba, in partnership with the China National Oil Development Corporation (CNODC) and QPI Brasil (a Qatar Petroleum unit); and Alto de Cabo Frio Central, with BP as a partner.

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

Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com Shell was awarded the Gato do Mato Sul block, located next to the BM-S-54 concession where the Gato do Mato discovery was made in 2010. Both the concession and Gato do Mato Sul are operated by Shell with Total as a partner. Shell was also awarded the Alto de Cabo Frio Oeste block, in partnership with the China National Offshore Oil Corporation (CNOOC) and QPI Brasil. Statoil also obtained acreage next to an existing asset. The company submitted the lowest bid for Norte de Carcará, located north of the Carcará discovery on the BM-S-8 concession. Statoil is partnered with ExxonMobil and Galp.

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South America news

EIC Rio Petrobras registration

Petrobras is one of the world’s biggest oil and gas operators, with more than US$74bn set aside for 2017-21 and over 120 platforms in place. How can suppliers access the vast and lucrative opportunities on offer with Petrobras?

Registering with Petrobras

The first step is to register with the company and be awarded a Petrobras certificate of registration (CRCC), which, unfortunately, is not as easy as it sounds. Some suppliers have spent over a year on the process as they have struggled with the bureaucracy involved.

The EIC Petrobras registration service: get it right first time

When it comes to registering quickly and successfully with Petrobras, the EIC knows how to support your company: • 15 years of experience – our Rio team has been working on Petrobras registrations for a long time – in fact, we have a dedicated Petrobras registration team. We know how the forms have to be filled in and will review diligently to avoid common mistakes. • 100+ successful registrations – we’ve supported companies of all sizes from around the world to get registered. Many of which have won work with Petrobras.

We save you time

Petrobras forms aren’t easy to fill in, especially for companies with little or no experience in Brazil. Get one part of one form wrong and you may have to start all over again.

Legal support – we de-risk the process

You can’t register with Petrobras without having a Brazilian legal representative. Finding a Brazilian representative is not only time consuming, it’s also very risky to give an agent you don’t know the power to represent your whole business. You can avoid this worrying situation by using the EIC. With a registered office in Brazil we can legally represent you for the purpose of Petrobras registration only and we have a special Petrobras representative contract in place.

Low-cost flat fee

Other service providers charge a lot for Petrobras registration – holding proven reserves of 13bn barrels of oil – they know the company is a highly-valued prize. As a not-for-profit trade association, the EIC offers one of the most competitive rates on the market, starting from only £1,500 per year. What’s more – that’s a flat fee. Most registration service suppliers charge per service/product category, not us. One flat fee gets you full support during a year. To start the registration process, contact Luanna Souza in our Rio office on +55 21 3265 7402 or by email luanna.souza@the-eic.com

We work with you, taking on complete project management of the process if you allow us too. We’ll even liaise with the different departments of your company to get the information needed and mediate with Petrobras to answer any questions they have. Use the EIC and not only will your team be free to do their day job, they’ll soon be ready to start working with Petrobras. Sign Get inup touch for the EICOnline newsletter

Visit Emailwww.the-eic.com/Forms/NewsletterSignup luanna.souza@the-eic.com • Phone +55 21 3265 7402

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