Inside Energy December 2019 by Energy Industries Council

EIC Inside Monthly news for EIC members December 2019

Sector analysis

EIC Connect

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ABB’s joint industry subsea electrification project

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Spotlight

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2020 Mexico Energy Forum – read more

The ‘not-so-gradual’ decarbonisation of the industry

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Sector analysis

Welcome to the not-so-gradual decarbonisation of the industry Energy transition is now front and centre of current news with governments around the world now considering a radical shift away from reliance on fossil fuels. The latest calculations from both industry and academia show that globally temperatures are likely to be closer to 2.4°C warmer on average in 2050 than previously predicted at around 1.5°C; which the 2015 Paris Climate Change Agreement was predicated on. However, despite the push towards net zero carbon emissions, the increasing demand for wind and solar power, plus the increased interest in hydrogen, battery storage projects and biomass-powered plants in conjunction with carbon capture utilisation and storage (CCUS) the world will not abruptly transition from oil and gas to renewables; we will still continue to need fossil fuels since gas is predicted to grow to 29% of the global energy mix by 2050 and oil only beginning to decline post-2030 according to the latest DNV GL forecast. To this end, the onus is now on the oil and gas industry to reduce its carbon footprint. The global upstream carbon footprint ranges widely from below 1kg of CO2/ barrel (such as the recently onstream Johan Sverdrup field which is powered via electricity from shore) to over 100kg of CO2/barrel (North American oil sands). The decarbonisation of the industry, which was expected to take decades, is now rapidly gathering pace as climate change protests continue across the globe. Recently at the September 2019 UN Climate Summit the 13 member companies of the Oil & Gas Climate Initiative (OGCI) laid out their plans for reducing CH4 emissions, increasing energy efficiency and doubling the amount of CO2 stored globally by 2030. Solutions for meeting these targets included upgrading facilities, reducing flaring globally, co-generating electricity and heat plus investing in CCUS via a new KickStarter initiative. The plan has been designed to help decarbonise multiple industrial hubs around the world, starting with the USA, UK, Norway, the Netherlands and China. Equinor, the frontrunner among operators for the seamless integration of oil and gas projects with renewables has recently sanctioned two key offshore projects, one of which, the US$550 million, 88MW Hywind Tampen project offshore Norway will ultimately provide wind-based electricity to power the offshore Gullfaks and Snorre platforms which were recently approved by the Norwegian Petroleum Directorate for extended production out to 2036 and 2040 respectively.

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The project aims to cut emissions from the platforms at the Snorre and Gullfaks fields by 200,000 tonnes of CO2/yr by replacing around 35% of their gas-fired power supply. This is entirely prescient given that production platforms offshore Norway account for around 82% of its E&P industry’s CO2 emissions with turbines alone accounting for almost 75% of those platforms’ emissions according to Rystad Energy. Another operator notably embracing the push towards decarbonisation, Shell, has also taken up the challenge of reducing its CO2 emissions to meet the goal of the Paris Agreement by setting itself an unconditional threeyear goal to reduce its net carbon footprint by 2% to 3% compared to 2016 and has partially linked its executives’ pay to this goal. With most international operators integrating renewable energy projects into their portfolios the supply chain has responded in kind. Tier 1 contractors such as Aker Solutions, Worley, Petrofac, TechnipFMC, Baker Hughes and Wood have all pledged to significantly increase their involvement in renewable projects and are incorporating both lower carbon equipment and services into their project delivery. Aker Solutions was one of the first companies to focus on CCUS technology over a decade ago. In April 2019 it signed a contract to provide the technology for a 100,000tpa CO2 capture and liquefaction system to the Twence energy from waste plant in the Netherlands. It has also been heavily involved in the development and implementation of an all-electric subsea system and has been taking steps towards that with a recent FEED contract for the Jansz-Io field offshore Australia where the subsea compression system will be powered via electricity from shore from an unmanned semi-submersible platform. What is widely acknowledged by both the operators and the wider supply chain is that the technology exists to reduce global CO2 emissions, but governmental regulations and incentives have yet to catch up for them to be effectively implemented. There has also been a global backlash against the oil and gas industry which has seen several major operators and NOCs downgraded by multiple firms such as Redburn for growing their oil output in favour of investing in renewables. Despite this, it is clear that the upstream industry is ready to embrace diversification into the renewables sector and is doing so sooner rather than later. Diveena Danabalan Senior Energy Analyst – Upstream diveena.danabalan@the-eic.com

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

Inside this issue... 2019 has been a very busy and productive year for the EIC. In June we held our very first Lucy C hakao dza Energy Exports Conference (EEC) attended by several highlevel government officials, global energy majors, including Saudi Aramco Overseas CEO Talal Al-Marri, organised 16 UK events based on key industry topics,10 EIC Connect events around the world and recently participated at ADIPEC where for the first time EIC had five pavilions including the Welsh, Scotland, expanded and new digitalisation pavilion. EIC also produced six market intelligence reports including deep dives into global decommissioning, a Saudi Arabia country report, global LNG outlook, and the third edition of Survive & thrive EIC insight report. Looking ahead to 2020 there are lots of exciting activities and events scheduled to take place including the return of EEC which will be even bigger and better than this year! Mexico Energy Forum is being held in Mexico City, where attendees will get to meet project operators and contractors looking to fill supply chain gaps in the country’s oil and gas sector. Read more on page 7.

Contents Sector analysis

Inside this issue...

Meet the executives

In this last edition for the year, we talk to ABB’s top executives, Kevin Kosisko and Asmund Maland about the company’s pioneering subsea power distribution and conversion technology which provides groundbreaking potential for cleaner, safer and more sustainable offshore oil and gas production, following the completion of a 3,000-hour shallow water test in November. Read more on page 4.

EICDataStream 6

EIC senior upstream analyst, Diveena Danabalan, explores the impact of energy transition and explains that despite the push towards net zero carbon emissions, the increasing demand for wind and solar power, growing interest in hydrogen, battery storage projects and biomass-powered plants in conjunction with carbon capture utilisation and storage (CCUS), the world will not abruptly transition from oil and gas to renewables due to the fact the world will still continue to need fossil fuels, as gas is predicted to grow to 29% of the global energy mix by 2050.

Social media round up 15

I’d like to take the time to thank you for your contributions in 2019. We look forward to working with EIC member companies again in 2020 and wish you all a prosperous new year! Lucy Chakaodza, Editor, Media and Communications Manager lucy.chakaodza@the-eic.com Sign for the EICOnline newsletter Get inup touch Share your news and views...

Visit www.the-eic.com/Forms/NewsletterSignup Please contact lucy.chakaodza@the-eic.com

Mexico Energy Forum

New EIC members

Member news

Forthcoming events

Overseas events

UK and Europe news 19 Middle East news

Asia Pacific news

North America news

South America news 23 EIC Survive & thrive III 24

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Meet the executives Kevin Kosisko

Senior Vice President & Managing Director, Energy Industries, ABB EIC talks with Kevin Kosisko and Asmund Maland about the ground-breaking US$100m research, design and development Joint Industry Project (JIP) between their company and Equinor, with partners Total and Chevron, initiated in 2013.

What is the ultimate goal of the Joint Industry Project between ABB and Equinor with partners Chevron and Total?

KK There are couple of key points that have come out of this project. When you look at the technology showcased at our recent press tour and the technology which is now available in the market with this subsea electrification that we have launched and now have just passed the 3,000-hour test, it allows for our customers to operate in a more efficient way with lower CAPEX cost and clearly lower operational cost because thirty years without maintenance drives a lower OPEX cost. The discussion around digital transformation is driving towards more autonomous operations. The disruptive and breakthrough technology which is a key enabler for their journey in being able to operate autonomously.

The closer you get to an autonomous operation the safer your operations are taking people out of harms way in typically, difficult circumstances when you are offshore. The result is greater energy efficiency and reducing one’s carbon footprint by using such technologies. When we look at what we are trying to achieve, this is indeed what we are trying to achieve with this solution!

It also allows our customers to consider marginal fields or brownfields where they are already operating, but this technology may allow them to get more out of those operating assets because the cost of deployment is better that traditional deployment in those fields. This allows them to bring more resources online where previously they could not do.

How is ABB leading the way in the digital transformation of the subsea industry?

KK If you look at digital transformation in the broader sense, there are a lot of factors companies are aiming to get a lot of benefit from. They are looking for more reliable, efficient, safer operations and reduced cost when it comes to maintenance. So, what we are talking about with this project highlights all those objectives and, in many circumstances, they are looking at digital applications and technology to become closer to that autonomous operations. Equinor and Total’s ultimate vision of operating in hazardous conditions, in an unmanned situation, fits right in with what ABB is trying to achieve with digital applications.

AM We definitely plan to capture this data and technology from this project and bring it back to our experts at ABB within our digital centres.

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We want to take it further. We want to co-operate with other companies and partners in the future, for example we currently work with Aker Solutions and their techniques and would like to combine ABB’s compression system with their information. At ABB we are very experienced in producing and working with real-time data. We have a lot of experts utilising special tools to analyse time series. In the industry there is still a way to go when working with the analytics we currently have in order to capture a lot of the benefits. But everybody is involved in working on this and it will be a key competitive factor for ABB in the future. Q

What opportunities will this joint subsea investment project/business model offer to external companies?

KK Although we have partners we work with very closely on this project, the idea is that we will sell the technology to companies within the general market. Our partners Total, Chevron and Equinor also agree and encourage this approach. The greater the deployment, the better the technology becomes over time and the higher the adoption rate, can only be beneficial for the industry.

What challenges has the project faced so far and how have the teams persevered?

Asmund Maland

Group Vice President, Subsea and Offshore Power, Oil and Gas, Energy Industries, ABB

KK I haven’t been with the project the entire six years it has been operating, but I think it’s interesting to hear from our partners talking about the power of collaboration and working together in an open and candid way with trust among our partners and ourselves. When you deploy 200 plus scientists and engineers on a project like this in multiple locations across the globe, in at least four different testing centres in close collaboration with our partners to make sure that what we are developing clearly fits the specifications and needs they have, that to me wasn’t a challenge, but clearly an opportunity for a great success the team experienced. Bringing the best resources from ABB, Total, Equinor and Chevron together, was really the key enabler that drove the success of this project. ABB has great experience with our products and technology, combining that with our partners’ extensive knowledge in the industry, provided a really open collaboration which drove this solution.

Throughout the project we had very strict project control to ensure everyone was working in the same direction.

The project really is a great story around the power of collaboration bringing together world class experts from all of the diverse areas that need to come together to produce a solution like this and to be able to do it methodically over a period of six years is a wonderful achievement from that perspective.

This kind of technology you can envision opening other opportunities, whether its offshore wind generation and all other types of opportunities. Getting that much power density on the seabed in a reliable manner over a span of 30 years.

How does this new energy generating technology actually work?

The validation of the shallow water test at a sheltered harbour in Vaasa, Finland, means many of the world’s offshore hydrocarbon resources are now in reach for electrification.

KK ABB’s pioneering subsea power distribution and conversion technology system is commercially viable, bringing ground-breaking potential for cleaner, safer and more sustainable offshore oil and gas production, following the completion of a 3,000 metre shallow water test.

How will distributing electricity underwater revolutionise the way we live and work?

For the first time worldwide, energy companies will be able to access a reliable supply of up to 100MW of power, over distances up to 600km and down to 3,000 metres water depth, at pressures that could shatter a brick. This is all achievable with a single cable with little or no maintenance for up to 30 years, making oil and gas production feasible in far out and deep ocean environments.

KK Based on a specific field development case, the new technology could offer CAPEX 1 savings of more than US$500m if eight consumers, such as pumps or compressors, are linked through a single cable over a distance of 200km from other infrastructure.

When is the project expected to be fully operational?

AM We are confident we can get it fully operational today. In fact, it’s being evaluated for many projects as we speak. The biggest indicator of commercial viability is: are people looking at the technology for external projects? Yes, they are.

AM Trust was a critical factor. We were very open regarding our communication with our partners. We did not hide anything; we could not afford to. Any issues were discussed upfront. Imagine if we did the opposite, any failures would be highlighted straight away, which would not be great for ABB’s reputation and ultimately our working relationship.

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DataStream AUSTRALIA

Global opportunities US

Port Darwin Condensate Processing Facility

Delfin Deepwater Port FLNG Project

Whale Field Development

Operator: Darwin Clean Fuels (DCF) Value: US$800m McDermott International has signed an MoU for the feasibility study, technology, FEED and EPC for the plant. Early phase engineering work will commence immediately and be completed by Q1 2020.

Operator: Delfin LNG Value: US$6.8bn Delfin has awarded a FEED contract for the FLNG vessel to a JV of Samsung Heavy Industries and Black & Veatch. FID is targeted for 2020, with the aim of entering commercial operation in mid-2024.

Operator: Shell Value: US$2bn Sembcorp Marine Rigs & Floaters has been awarded an EPC contract to build the floating production unit for the project. Award is subject to FID being reached; which is expected in 2020.

For more information on these and the 8,500 other current and future projects we are tracking please visit EICDataStream

ESTONIA

GAMBIA

INDIA

Estonia Small Modular Reactor Project

Gambia Soma Solar Power Project

Khurja Coal Fired Power Plant

Operator: Fermi Energia Value: US$1bn A feasibility study is being undertaken with four reactor designs including: Moltex Energy SSR-W300, Terrestrial Energy IMSR-400, GE Hitachi BWRX300 and NuScale SMR. GE Hitachi Nuclear Energy (GEH) and Fermi Energia are collaborating on potential deployment of GEH’s BWRX-300.

Operator: Economic Community of West African States Value: US$200m Development of a 150MW solar power plant in Soma. Construction in two phases of 80MW and 70MW respectively and may feature a 100-150MWh storage component. The government and the operator are looking for consultants to prepare a feasibility study for the project.

Operator: THDC India Ltd Value: US$1.6bn Construction of a 1,320MW coal fired power station at Khurja in Uttar Pradesh. The plant will feature two 660MW units and is under construction by PMC contractor NTPC Ltd. Bharat Heavy Electricals Ltd secured an OEM supply contract for the plant’s turbine generator package.

Need ayour demonstration of EICDataStream? Get in touch Share news and views... Pleasenewsdesk@the-eic.com contact membership@the-eic.com Email • Phone +44 (0)20 7091 8600

New EIC members NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Flowline Specialists Ltd

Hyundai Engineering Co Ltd

Barra House, Colpy Way Colpy Road Industrial Estate Oldmeldrum Aberdeenshire AB51 0BZ

NEW RENEWABLE ENERGY MEMBER

JAM Recruitment Ltd

Hyundai Bldg 75 Yulgok-ro, Jongno-gu Seoul, 03058 Korea

Marsland House Marsland Road Sale, Manchester M33 3AQ

The Nominated Representative is Ms Jan Foster, Business Support Manager

The Nominated Representative is Mr Jung Minkoo, Deputy General Manager

The Nominated Representative is Mr John Currie, Team Manager

Telephone +44 (0)1651 871 872

Telephone +82 2 2134 1114

Telephone +44 (0)161 962 6111

Email jan@flowlinespecialists.com

Email min9@hec.co.kr

Email j.currie@jamrecruitment.co.uk

Web www.flowlinespecialists.com

Web www.hec.co.kr/en

Web www.jamrecruitment.co.uk

Flowline Specialists designs, engineers and manufactures costeffective and innovative solutions for handling flexible pipes, umbilicals and cables onshore and offshore for the global oil and gas, subsea, decommissioning and renewable industries.

Global premier engineering partner Hyundai Engineering creates maximum value through ultimate quality, outstanding services and sophisticated technology to accomplish customer satisfaction.

Jam Recruitment Ltd is a white collar engineering recruitment company that specialises in the safety critical industries.

The firm’s range of modular equipment comprises reel drive systems, tensioners, under rollers, subsea and standard turntables and pallets, winches, shears and hydraulic power packs. Its experienced technicians install, commission and operate the equipment. Headquartered in Aberdeenshire, Scotland, the independent firm was established in 2001 and employs over 50 people. In addition to facilities in the UK, Flowline Specialists has operational bases in The Netherlands and Dubai, UAE.

Hyundai Engineering works diligently to enhance quality of life for all by providing engineering solutions in a range of fields, including the process plant, power and energy plant, infrastructure and environmental sectors. With many years of experience, outstanding technologies and talent as its foundation, Hyundai Engineering is expanding its fields to construction, housing and renewable energy to create higher customer value. Hyundai Engineering aims to lead the engineering world with innovative and challenging determination.

18 February 2020 • Abu Dhabi

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Its Energy Division focuses on decentralised energy, including EFW, biomass, energy storage, CHP and district heating. Jam Recruitment Ltd has 20 years of experience placing specialised engineering and management professionals with operators, developers, EPC’s and contracting companies across Europe.

ENE EXP CON

TECA at P

Aberdeen / 1

Access $500

New EIC members

NEW RENEWABLE ENERGY MEMBER

Lucy Electric Eagle Works Walton Well Road Oxford OX2 6EE The Nominated Representative is Mr Philip Dingle, Marketing Director Telephone +44 (0)1844 267 267

NEW UK GLOBAL MEMBER

NEW GLOBAL MEMBER

PFISTERER Ltd

Remote Medical International

2-4 Orgreave Place Sheffield S13 9LU The Nominated Representative is Mr Richard Lockwood, Director Telephone +44 (0)1476 578 657

Collingwood House Port of Tyne South Shields NE33 5SP The Nominated Representative is Mr Jon Adams, Vice President Telephone +44 (0)191 454 4844

Email philip.dingle@lucyelectric.com

Email richard.lockwood @pfisterer.com

Web www.lucyelectric.com

Web www.pfisterer.com

Web www.remotemedical.com

Lucy Electric is a leader in secondary power distribution solutions and specialises in highperformance medium voltage switchgear for utility, industrial and commercial applications.

The PFISTERER corporate group has been dealing with the interfaces in the flow of electricity ever since it was founded in 1921.

Remote Medical International (RMI) is a leading provider of comprehensive medical support services designed to keep clientâ&#x20AC;&#x2122;s workforces healthy, wherever they may be.

Lucy Electric products are at the cutting edge of medium voltage design and innovation, providing switching, protection and automation solutions with reliability, safety and value built-in as standard.

ERGY PORTS NFERENCE

P&J Live

17-18 JUNE

As a specialist in energy transmission and distribution, PFISTERER offers its customers and business partners a range of sophisticated, future-ready products for all voltage ranges and wherever reliable, longlasting systems are needed for powerful energy grids.

With over 15 years of experience in over 150 countries and on every ocean, Remote Medical International can deliver health care services wherever and whenever you need them.

As well as the energy sector, PFISTERER is also active in transport technology and industrial solutions. The company is well-established in all key global markets and is continuing to strengthen its brand on a worldwide scale.

2020

0bn of global opportunities

Email jadams@remotemedical.com

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Services range from medical screening, medical and safety staffing, case management, full equipment and supply clinic build-out, topside telemedicine with full medical direction, health surveillance programmes and evacuation co-ordination.

26 February 2020 â&#x20AC;˘ Dhahran

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New EIC members

NEW OVERSEAS PRIMARY EUROPE MEMBER

NEW UK MEMBER

SWAN Analytical UK Ltd

Sino Projects BV

Unit 3 The Steading Copthill Farm Enterprises Deeping Road Stamford PE9 4TD

Brouwersgracht 5G Amsterdam 1015 GA The Netherlands The Nominated Representative is Mr Jan Sanders, Director Telephone +31 652 022 739 Email jmwsanders@gmail.com Sino Projects BV is largely involved in the oil and gas and energy business, with onshore and offshore pipeline laying, welding and FJC, as well as port building and dredging.

The Nominated Representative is Mr John Saxton, UK Sales Manager Telephone +44 (0)1780 755 500

Trans Asia Pipeline Services FZC Plot 4M-25 Hamriya Free Zone, Phase II PO Box 48181 Sharjah, UAE The Nominated Representative is Mr Sachin Sanghai, CEO Telephone +971 6 526 9166

Email joh@swan-analytical.co.uk

Email sachin@transasiapipelines.com

Web www.swan.ch

Web www.transasiapipelines.com

SWAN sets the standard for the analysis and control of many water quality parameters such as conductivity, silica, sodium, pH, redox, turbidity, phosphate, oxygen, hydrogen and hydrazine. Precision, reliability and excellence are qualities which make SWAN an ideal partner.

Trans Asia Group is a leading contractor specialising in pipeline and specialty services for the oil and gas, petrochemical and power industries. Through its offices in UAE, Saudi Arabia, Kuwait, India and Singapore, it provides a wide range of pipeline and specialty services and has successfully completed projects in the Middle East, South East Asia and Indian regions for oil companies and EPC contractors.

Every sensor and every instrument is produced at SWAN’s headquarters and each step, from the machine part to the final assembly, undergoes rigorous and severe quality control procedures so that no instrument leaves the company without final testing under real conditions. SWAN instruments are delivered as fully functional, ready-touse instruments which ensures easy system integration as well as user-friendly operation and maintainability.

27 February 2020 • Mexico City

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NEW GLOBAL MIDDLE EAST MEMBER

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

Services offered by Trans Asia: pipeline services; pre-commissioning and commissioning, pigging, testing, calliper and ILI inspections, nitrogen services, decommissioning of pipelines, gel pigging, chemical cleaning, mothballing pig tracking, stuck pig removals, pig design and piggability studies. Pipeline maintenance services; online pigging, dewaxing, black powder/scale/wax removals, leak detection/repairs. Trans Asia also provides a full spectrum of process pre-commissioning and commissioning services such as chemical cleaning, oil flushing, nitrogen-helium leak testing, hydromilling etc.

New EIC members

NEW GLOBAL EUROPEAN MEMBER

Twister B.V.

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

UnitBirwelco Ltd

Wrexham Mineral Cables

Einsteinlaan 20 Rijswijk, 2289 CC The Netherlands

Unit House Elba Business Park Elba Crescent Swansea SA1 8QE

The Nominated Representative is Mr John Young, CEO

The Nominated Representative is Mr Cy Wilkinson, CEO

The Nominated Representative is Mr Steve Windley, Export Sales Manager

Telephone +31 703 030 006

Telephone +44 (0)1792 654 091

Telephone +44 (0)1978 810 789

Email john.young@twisterbv.com

Email c.wilkinson@unitbirwelco.com

Email stevewindley@ wrexhamminercalcables.com

Web www.twisterbv.com

Web www.unitbirwelco.com

Web www.wrexhammineralcables.com

Twister delivers the safest, most sustainable and economically efficient, high-yield separation gas processing solutions in the upstream and midstream oil and gas markets.

UnitBirwelco Group consists of three divisions based in the UK – Birwelco Ltd, Unit Superheater Engineering Ltd and Unit Engineers and Constructors Ltd.

Established in 1989 Wrexham Mineral Cables (WMC) developed a totally new and unique process for the continuous manufacture of mineral insulated cables – the only true fire survival cable.

In the area of sour gas dehydration and dewpointing, the Twister proprietary gas-processing technology provides a reliable, low-maintenance alternative to chemical-based technologies, providing safety, sustainability and economic benefits. Since 2003, the Twister Supersonic Separator technology has been successfully dehydrating sour gas on the Petronas operated B11 production platform. Benefits: • The compact and lightweight Twister system offers significant reduced facilities and weight reduction with the associated cost savings • Lowest operating cost • Highest availability and reliability • Minimal operator intervention

Wynnstay Technology Park Ruabon Wrexham LL14 6EN

Serving the oil and gas, petrochemical, power, nuclear, process and energy from waste segments in the UK and globally, the group offers full-service capability where the divisions are increasingly working together on joint projects, offering customers lead time, cost and project management benefits. UnitBirwelco has over 100 years of experience in the design, engineering, fabrication, manufacture, installation and maintenance of thermal equipment and related process engineering.

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The specially designed equipment is housed in WMC’s 5,000 square metre purpose built factory in Ruabon, Wrexham, North Wales. WMC is the only UK manufacturer of continuous mineral insulated cables, exporting to over 20 countries globally including the Middle East, India, Australia and China. Wrexham Mineral Cables’ success is due to its continued investment and commitment to manufacturing a quality product while providing comprehensive customer service. The quality and reliability of Wrexham Mineral Cables is recognised worldwide. Cables are manufactured to meet British and European standards, achieving endorsements and certifications from many regulatory bodies including BRE – LPCB, the world renowned approvals body for fire performance products, Warrington Fire Research Centre and London Underground. The termination glands are SIRA – ATEX EExd approved and IECEx approved.

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EIC (Energy Industries Council)

Member news Bureau Veritas issues direct current warning on RCDs

With the recent 18th edition of the IET Wiring Regulations including updated guidance on the use of various types of residual current devices (RCDs), Bureau Veritas is warning that a rising number of AC type RCDs are being adversely affected by direct currents (DC) from electronic devices and renewable energy sources. It comes amid the growing use of RCDs, with AC Type RCDs often promoted as the first choice, particularly since 2001 where the 17th edition (amendment 1) directly stated AC Type RCDs should be used for sockets that might supply outdoor equipment. However, according to Bureau Veritas, as more and more homes, commercial and industrial sites are now using electronic equipment and installing renewables such as solar PV, many of these RCDs may well be not fit for purpose – putting an increasing number of people at risk. As an independent electrical specialist, Bureau Veritas suggests the industry, instead, looks at using A or B type RCDs that are specifically designed to offer protection against alternating and pulsating direct – as stated in the recent rewrite of 531.3 of BS7671. Bureau Veritas offers a range of testing and certification services to support customers in managing compliance around electrical safety in general for new and existing installations or for specific areas, such as electric vehicle charging points.

For more information: www.bureauveritas.co.uk

ENGIE Fabricom appoints eight new apprentices

One of the UK’s leading engineering and construction companies – ENGIE Fabricom – has invested in a new apprentice recruitment programme deployed by the country’s major STEM education providers. This has seen the business – which has five offices across the UK including Grimsby, Immingham, Lowestoft, Stokesley and Middlesbrough – recruit eight new apprentices.

We are delighted with our new processes and this new approach marks a real change in the way in which we attract, recruit develop and engage skilled tradespeople. Richard Webster, CEO, ENGIE Fabricom

ENGIE Fabricom has worked alongside both Middlesbrough College in Teesside and North Lindsey college, located in the Humber region to develop a process to attract the very best local talent. The process involved candidates carrying out in-depth assessments at the Middlesbrough college’s state of the art £100m STEM centre facilities and the CATCH in Stallingborough’s impressive skills centre associated with the North Lindsey college. Both centres have been designed to bridge the engineering skills gap in local regional hubs and simulate typical authentic industry settings to thoroughly prepare students for the workplace with transferrable skills.

For more information: https://engie-fabricom.co.uk/

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LOC Group to provide affordable renewable energy solutions

INNOSEA, a subsidiary of LOC Group, the international marine and engineering consulting firm, has been awarded the role of lead engineer for the H2020 MUSICA project by Marine and Renewable Energy Ireland (MaREI), the SFI Research Centre for Energy, Climate and Marine hosted by University College Cork. The MUSICA project’s objective is to provide an all-encompassing decarbonising offering to small island communities. The project was granted €9 million for a floating offshore platform to be built, that will aim to provide solutions for small island renewable energy, water and aquaculture. MUSICA will attempt to provide 70% of the electricity and 100% of freshwater for a small island with up to 2000 inhabitants; providing a costeffective solution while also allowing for independence. The energy will be supplied via renewable energy and will be a combination of wind, photovoltaics and wave energy, with the desalinated water being powered by green renewable electricity. The five-year project, which has 15 partners from seven EU member states, is aiming to develop a business plan to roll-out the MUSICA concept to the wider market and will start by developing roadmaps for three trail case study islands: Malta, Canaries and Chios in the Aegean. Ireland also has an interest in offshore floating platforms, wanting to be a world leader on offshore floating wind as well as floating platforms containing sensors and data monitoring.

For more information: https://loc-group.com/

Member news

Malin Group gains consent for Phase One of 1000 job marine industry park on the Clyde

A major milestone has been reached in an ambitious plan to bring marine manufacturing and support industries back to the Upper Clyde.

Now planning consent has been granted by West Dunbartonshire Council for Phase One of the Scottish Marine Technology Park (SMTP) in the shadow of the Erskine Bridge. Phase One includes a large fabrication facility, consent for a deep-water jetty with a 1100Te ship hoist – the largest of its kind in Scotland – and a remediation strategy required to develop the former oil storage site. If fully realised, an economic impact study has found the SMTP will result in almost 1000 new jobs. The SMTP will be built on a long-derelict 47-acre site, formerly the Carless oil storage facility which suffered extensive damage during WW2. Unlike locations further up-river which are being developed for housing and leisure facilities, the site is land zoned for industrial use and has direct access to a deep-water channel via an 80-metre long deepwater quayside berth. PBA envisages an economic impact that will create 986 jobs if the plan is fully realised and add £125.4m annually to West Dunbartonshire’s economy. The construction phase of the project will also see over 600 additional short-term jobs created.

For more information: www.malingroup.com

Malin Group’s proposed marine manufacturing hub at Old Kilpatrick

MAN ES to deliver power generation packages in Nigeria

MAN’s power generation technology has achieved an important milestone with the first MGT gas turbine heat and power systems to be installed in Africa. Three packages with the proven single-shaft MGT6000 gas turbine technology will deliver around 20MW to a power plant, which supplies heat and power to BPL oil and gas facilities 30 miles south west of Port Harcourt in Nigeria. The order for MAN was placed by American EPC and equipment exporter Combustion Associates Inc. Together with Exterran Corporation, the company is responsible for the engineering, manufacturing and installation of the overall project. The MAN turbine technology will deliver around 20MW of power, using dry low emission technology and natural gas as a low-emission fuel. The system also features specifically modified intake aircooling in order to guarantee a flawless operation despite the high temperatures on site. The set-up comprising three gas turbines trains enables a flexible load profile for the operator. All trains are equipped with an ATU box (Analytics Telemetrie Unit), which is connected to the new digital platform MAN CEON.

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MAN Energy Solutions was able to meet the customer need for fast deployment. All gas turbines are manufactured in Oberhausen, Germany and the packaging is done at MAN’s Chinese workshop in Changzhou. CAI’s order continues the successful story of MAN’s gas turbine business beyond the Chinese market, where recently four gas turbine generator packages have been put into operation in cogeneration plants. The combined heat and power processes (CHP) replaces the former coal-based plants, resulting in significant emission reductions.

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

MAN Energy Solutions UK Ltd

Malin Group, a Glasgow-based engineering company with a worldwide operation whose Clydeside roots go back to the Victorian era, wants to create a marine manufacturing hub at Old Kilpatrick – one of Scotland’s highest unemployment areas.

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EIC (Energy Industries Council)

Member news

£400m worth of contracts sees PD&MS increase headcount by 40%

PD&MS Group has secured long term contracts in excess of £400m in the past 12 months. The new and renewed awards have resulted in over 100 additional personnel being employed to support projects in the North Sea and Azerbaijan. The business forecasts at least another 150 personnel will be required in 2020.

Our continued progress is aligned to our business objectives, and most importantly, we are growing without losing or diluting the style and approach our clients are accustomed to, which sets us above and apart from our competition. Simon Rio, CEO, PD&MS Group

The round-up of wins include the life-of-field contract extension with Apache Corporation North Sea subsidiaries which will see the Aberdeen headquartered firm supporting the Beryl and Forties fields in the UK Continental Shelf. Other significant awards for the engineering, procurement and construction firm include a five-year extension with a major operator in the Caspian region and a number of contract extensions with UKCS operators. As part of its strategic growth plan, the company has invested a six-figure sum during the downturn to develop additional business streams across the group including rope access services, specialist joint integrity and flange joint management services, and late life asset management and decommissioning support services.

For more information: www.pdms-group.com

Sherwin-Williams gains accreditation from Dubai Central Laboratory

High-performance floor coating systems offered by Sherwin-Williams Protective & Marine Coatings have been approved by the Dubai Central Laboratory accreditation body (DCL). Inspectors from the DCL Green Building Standards team examined and rigorously tested the diverse range of flooring technology offered by Sherwin-Williams. The DCL regulations support Dubai’s strategic plan to create a sustainable urban environment and extend the ability of the UAE’s infrastructure to meet the needs of future development. They provide product conformity assessment, tests and studies, standards and control measurements using accredited laboratories for consumer protection and customer satisfaction. High performance flooring systems from Sherwin-Williams are used in diverse industries including food and beverage, pharmaceutical, industrial, retail, commercial and aerospace offering benefits of non-taint, hard-wearing, decorative, impact resistance, slip-resistance, abrasion resistant, chemical protection and thermal shock resistance.

For more information: www.sherwin-williams.com

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Sonardyne acoustics chosen for Brazilian research vessel

Science equipment and underwater vehicles deployed from Brazil’s flagship oceanographic research vessel, Alpha Crucis, are to be tracked using Ultra-Short BaseLine (USBL) positioning technology supplied by Sonardyne Brasil Ltda. The 64m long vessel, which is operated by the University of São Paulo, undertakes research projects spanning global climate change to biodiversity in Brazilian waters. It will be equipped with a Sonardyne Ranger 2 USBL high precision acoustic positioning system to enable the Alpha Crucis’ 21-strong science team to precisely track their instruments and sensors to beyond 7km.

New EIC members Social media Member round news up

The University of São Paulo has selected Sonardyne’s pre-calibrated Gyro USBL transceiver for the vessel and 4,000m depth rated Wideband Sub-Mini 6 Plus (WSM 6+) transponders for its in-water equipment, which includes sediment corers, towed cameras, landers and remotely operated vehicles (ROV).

For more information: www.sonardyne.com

High efficiency hydro generators from WEG

WEG has introduced its GH20 Hydro Generator line, a series of small low and medium voltage generators designed to meet and comply with all aspects of the growing and demanding Small Hydro Power Plants (SHPP) market. The new GH20 generators are lighter and more compact than the previous GH10 design, offering a reduction of up to 70% in volume and 40% in length. This enables optimisation within low power hydroelectric power plants, saving up to 30% in total space, and lowering the necessary investment in installation infrastructure.

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

The EIC @TheEICEnergy

The latest Insight Report is out now! Carbon Capture Utilisation and Storage provides an overview of the processes and technologies across the sector: http://bit.ly/32plf2v

The EIC @TheEICEnergy

27 February 2020 • Mexico City

CONNECT Mexico Energy Forum

Bookings for #EICConnect Mexico Energy Forum are now open! Join us for a day of unique insights into the energy sector. Book your early bird discount: http://bit.ly/33LJVUu

For more information: www.weg.net/uk

EIC (Energy Industries Council) That’s a wrap for ADIPEC. The UK Pavilion was another huge success, with 90 exhibitors, VIP tours, 60 one-to-one meetings and 300 networking reception attendees.

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@TheEICEnergy

EIC (Energy Industries Council)

December 2019 â&#x20AC;&#x201C; January 2020

Forthcoming events 3 December Regional Showcase

EIC Open Day EIC London

3 December Technical Workshop

Electrical Condition Monitoring EIC Rio de Janeiro

4 December Sector Showcase

Energy from Waste North West England

5 December Business Presentation

North America EICDataStream Online

9 December Overseas Delegation

Angola Luanda

10 December Business Presentation

Opportunities with Petrofac Radisson Blu, Dubai

10 December Regional Showcase

Mexico Market Update EIC Houston

10 December Management Course

EICDataStream/AssetMap training Online

11 December Regional Showcase

EIC Open Day Wood, Darlington

11 December Business Presentation

EICDataStream Overview EIC Kuala Lumpur

Get in touch Share your news and views...

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

17 December Business Presentation

North America EICDataStream Online

7 January Corporate Entertainment

EIC APAC New Year Breakfast EIC Kuala Lumpur

9 January Business Presentation

Opportunities with PEEL

Thornton Science Park, University of Chester

10 January Regional Showcase

EIC Open Day

Emerson Solutions Centre, Aberdeen

16 January Sector Showcase

Energy Storage Aberdeen

17 January Business Presentation

Digital Day with Petrofac Aberdeen

21 January Sector Showcase

Energy from Waste North West England

22 January Corporate Entertainment

New Year Networking Evening London

27 January Overseas Delegation

Nigeria Lagos

28 January Sector Showcase

Energy Storage EIC London

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

Forthcoming events

18 February 2020 • Abu Dhabi

CONNECT January – March 2020

Oil, Gas & Beyond 28 January Sector Showcase

26 February EIC Connect

Onshore Wind

EIC Connect Saudi Arabia

EIC Houston

Dhahran

3 February Overseas Delegation

26 February Overseas Exhibition

Ghana

Wind Energy Expo & Conference

In Country

Tokyo

11 February Overseas Exhibition

27 February EIC Connect

Egypt Petroleum Show (EGYPS) New Cairo Exhibition Centre

18 February EIC Connect

EIC Connect Oil, Gas & Beyond Abu Dhabi

20 February Corporate Entertainment

Middle East Golf Tournament The Els Club, Dubai

EIC Connect Mexico Energy Forum Mexico City

3 March Overseas Exhibition

Wind Energy Asia

Kaohsiung Exhibition Centre, Taiwan

26 March EIC Connect

EIC Connect Energy Indonesia Jakarta

26 February 2020 • Dhahran

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EIC (Energy Industries Council)

Overseas events

That’s a wrap…ADIPEC 2019 is over!

ADIPEC is now the EIC’s largest UK pavilion. For 2019 not only did we host 66 companies in our main pavilion in hall 8, we also hosted 11 companies in the extension pavilion in hall 13, and 5 companies in the UK Digitalisation pavilion in hall 14. Highlights included: • Opening ceremony – Her Majesty’s Ambassador to the United Arab Emirates, Mr Patrick Moody opened the UK National Pavilion Camilla Tew • UK Digitalisation Pavilion • Meet the buyer one-to-one sessions with Petrofac, Al Rasheed, SNC Lavalin • Exclusive VIP networking reception – thank you to our gold sponsor Petronash, Silver Sponsor Exertherm, and Bronze Sponsor Agility Logistics • VIP visits and international delegation pavilion tours: ADNOC, Her Majesty’s Ambassador to the United Arab Emirates, Mr Patrick Moody, Petrofac As one of the world’s most important oil and gas events, ADIPEC is the perfect opportunity for UK companies to network with key stakeholders from across the globe and develop existing relationships. Having taken part in ADIPEC for over 20 years now, we have seen how the event has gone from strength to strength, developing into the region’s premier oil and gas conference and exhibition. ADIPEC 2020 is now booking and spaces are limited, so please get in touch with the Overseas Events team ASAP to book your place: overseasevents@the-eic.com

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19 19

UK and Europe news Regional update It is hard to believe we are approaching the end of 2019. What a successful and busy year the UK events team have had. Overall, we have hosted 16 events and attracted over 850 attendees throughout the UK.

Forthcoming events

Jo Cam

pbell

This year the team have put together a variety of events focusing on key industry topics, from floating offshore wind, opportunities in Senegal and Mauritania, LNG, hydrogen and a cross-sector decommissioning showcase. Through working with our oil and gas and power, nuclear and renewables departments we have managed to deliver events on a number of energy themes, constantly ensuring we keep the industry up to date with the latest business opportunities, news and key contacts. We were also delighted to welcome main supporting partners Investec, where we worked together to create the most wonderful summer soiree in July. EIC looks forward to continuing our collaboration next year. Not only have we worked closely with government, other trade associations and recently helping to support DIT Jakarta to promote opportunities in the renewable sector, we have also worked with many organisations who have supported our events programme; Shell, BP, Equinor, Premier Oil, Petrofac, Worley, Peel Environmental, KBR, Sellafield, Emerson and many more. This year has also seen a few changes to the team. I relocated to London, Caitlin Henderson was promoted to UK Events Co-ordinator and Nicola Henderson went on maternity leave. We also welcomed new members to the team, Kerrie Madden, Business Lead and Events Manager for the Northern Region, and this month Nicola McGeown has joined our Aberdeen office as Senior Events and Project Manager. As we look ahead to the new year, I am excited to see what 2020 brings. We already have bookings open for our January events which includes, a Petrofac digital day, energy storage and a business presentation with Peel Environmental. The UK events team wish you all a happy, healthy and prosperous New Year. Jo Campbell, Head of UK & Europe jo.campbell@the-eic.com Sign up for the EICOnline newsletter

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Business Presentation with Peel Environmental Thursday 9 January 2020, Chester

Energy Storage Thursday 16 January 2020, Aberdeen

Digital Day with Petrofac Friday 17 January 2020, Aberdeen

Regional news

Energy from Waste (EfW) to catapult in the UK and Europe

The Environmental Services Association estimates an untreated residual waste capacity of 20 million tonnes in England, once all waste targets are met in 2035. This has highlighted the necessity of EfWs, with 78% of EfW operators rating the sector’s outlook as good, according to CEWEP. UK projects have recently seen a flood of permitting activity. Versus Energy Oak’s 39MW Kelvin Energy Recovery Facility secured planning consent through a dismissed appeal and Veolia acquired permission for the 34MW Heysham plant. Wheelabrator submitted applications for the expansion of its Kemsley K3 facility to 75MW and construction of the 42MW Wheelabrator Kemsley North project. Southmoor Energy Centre also obtained an environmental permit. Carbon capture is also seen integrating into the sector, with OCO Technology bagging a 10-year contract to capture around 3,000 tonnes of CO2 per year at UK’s Ferrybridge Multifuel 2 plant.

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

@TheEICEnergy

EIC (Energy Industries Council)

Middle East news Regional update

With the end of the year fast approaching I look back in my first year in post with a great sense of pride and achievement for the team here in Dubai. From widening Ryan M cPhers on out our Connect model into Kuwait, where we successfully brought in the largest delegation of UK supply chain companies, to our largest ADIPEC attendance, and finally welcoming in a significant number of new companies to the EIC family; I am already looking forward to what 2020 has to offer. ADIPEC once again did not disappoint where with a record number of companies spread over five pavilions we were truly able to showcase the best of the UK supply chain at a time when the market in the region is as competitive as ever. The range and depth of talent and technology on offer during the week makes all the hard work worthwhile and those exhibiting were a credit to themselves. Hopefully the connections and business made during the week can act as a catalyst into the new year where the entire EIC team remains at your disposal to ensure that we continue to be at the forefront of trusted partners. We also held an event at the request of a few member companies focused on compliance with the Emirates Conformity Assessment Scheme (ECAS), a mandatory regulatory programme for specific products marketed in the United Arab Emirates (UAE). Supported by EIC member Intertek, the free to attend seminar provided valuable insight, helping companies to position themselves accordingly with this new regulation. We are looking forward to our next business opportunities lunch with Petrofac on 10 December 2019. Looking ahead to 2020, our annual EIC Golf Tournament celebrates its 10th year and will be taking place on 20 February, sponsorship opportunities are available and I hope to see a wide array of EIC member companies participating in what has now become a regular fixture in the calendar. New members continue to join us from the region where we recently welcomed Forum 21 and OCB Oilfield Services. We are delighted with the take up this year of new members and remain committed to providing value to the entire membership including those who have been with us for a longer duration. On a final note on behalf of the entire team here in Dubai we would like to wish you and your respective families our very best wishes over the holiday period and a healthy, happy and prosperous 2020. Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com Get in touch Share your news and views...

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Regional news

Lukoil granted 5% Ghasha sour gas concession stake

Abu Dhabi National Oil Company (ADNOC) has awarded LUKOIL a 5% stake in the Ghasha ultrasour gas concession that comprises the Hail, Ghasha, Dalma and other offshore sour gas fields in the Emirate of Abu Dhabi. At the same time, ADNOC, LUKOIL, and the Management Company of Russian Direct Investment Fund, RDIF, signed a framework agreement to explore potential future co-operation in relation to the Ghasha concession. The concession award to LUKOIL marks the first time that a Russian company has joined an ADNOC concession and builds on the strong and strategic bilateral relations between the UAE and Russia. ADNOC maintains a 55% majority stake in the concession, which has further concession holders Eni with 25%, Wintershall Dea with 10%, and OMV with 5%. The US$20bn Ghasha mega-project is expected to produce over 1.5 billion standard cubic feet per day (bscfd) of natural gas by around 2025.

CNPC withdraws for Iran South Pars project

The South Pars gas field phase 11 was to be developed jointly by France’s Total, China National Petroleum Corporation (CNPC) and Petropars under a first of its kind Iranian Petroleum Contract (IPC) deal signed in July 2017 and worth US$4.8bn. Three months after US President Donald Trump’s administration withdrew from the nuclear accord in May 2018 and reimposed sanctions on Iran’s oil industry and other key sectors of the economy, Total decided to leave the project. South Pars Phase 11 will now be entirely developed by Petropars.

Forthcoming events

Please go to page 16 to see upcoming events in your region

21 21

Asia Pacific news Regional update

EIC Asia Pacific participated in GAS 2019 held in Singapore on 30-31 October. GAS 2019 is a premier platform where ASEAN’s senior policy Azman makers and utility buyers Nasir from the gas industry meet. The event hosted key VIPs and LNG buyers from JERA, Osaka Gas, ENN, KOGAS, CPC, Adani Group, Meralco, Pertamina, GAIL, Reliance, Summit Group and many others. EIC Asia Pacific had a booth at the event where we organised a talk on market outlook and met our members. We also had a small ceremony to mark the collaboration between EIC Asia Pacific and The Energy Institute Asia Pacific which was officiated by the Deputy Director, Department of Trade, British Embassy, Singapore. The collaboration between EIC APAC and EI APAC will have us working together on events of mutual interest to members of both organisations. On 26 November EIC Asia Pacific organised another business presentation in Kuala Lumpur with a representative from Sarawak Shell Berhad (SSB) as the main speaker. The procurement and contracts manager of SSB, Desmond Ong, presented the supply chain requirements for Shell Sarawak in the following areas: seismic, well services, well decommissioning and new technology. Following the presentation, our member companies were able to have 10 minute one-to-one sessions with SSB’s personnel. A total of 60 companies attended this event comprising members and potential member companies. On 10 December 2019 we have organised a year-end market outlook business presentation with our new Regional Analyst, Awang Muawaludin. He will present the latest data extracted from EICDataStream followed by another presentation from a member company. Looking ahead we are planning our annual New Year business presentation for 2020 on 7 January. This event is normally well-attended and we hope to invite Petronas Group Technical Solutions as the main speaker. In February 2020 we plan to have another business presentation with renewable energy as the main topic. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com 26 March 2020 • Jakarta

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Regional news

MISC wins 15 year TCPs from ExxonMobil

Malaysia International Shipping Corporation (MISC) has secured two time charter parties (TCPs) from ExxonMobil Corp with an estimated combined value of US$711m. Its vessel-owning entities, namely Polaris LNG One Pte Ltd (Polaris 1) and Polaris LNG Two Pte Ltd (Polaris 2), signed the TCPs with SeaRiver Maritime LLC, owned by ExxonMobil for the time charter of two newbuild liquefied natural gas carriers for operations in international waters. The vessels will be chartered for a period of 15 years to commence in Q1 2023.

PetroVietnam extends lease for Yinson FPSO

Yinson Holdings has received an extension for its Lam Son floating production, storage and offloading (FPSO) vessel operating at the Thang Long–Dong Do fields in Blocks 01-97 and 02-97 in the shallow-water Cuu Long Basin. Yinson confirmed the one-month extension on 30 September 2019. The estimated value of the extension is US$1.54m and follows on from a one-month extension announced at the end of August and is the fourth addendum between the parties.

Petronas shuts Kepodang gas field

Petronas has ceased gas production at the Kepodang field for the field’s permanent closure which coincided with the expiry of its gas sales agreement with Perusahaan Listrik Negara (PLN). SKK Migas said the gas reserves at Kepodang, which came online in 2015 in the Muriah Block, were ‘uneconomic’. SKK Migas will also conduct its own evaluation of the field’s reserves.

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EIC (Energy Industries Council)

North and Central America news Regional update

This autumn provided lots of networking opportunities for our EIC members in the North and Central America region. We were delighted to welcome BP’s project quality team on the BP Amand a Duho n Mad Dog Phase 2 project in October and it was exciting to hear how innovative augmented reality technology is being implemented in the oil and gas industry to ensure fabrication quality. Our members learned how technology is helping improve project quality, cost, delivery and safety. Indeed, operators and contractors will be moving towards the utilisation of this technology and the supply chain will need to accommodate. In November, we held our corporate entertainment event of the year, kicking off drinks at Reserve 101 followed by a fun evening at the Houston Rockets. Some members even got to enjoy the fan experience and high-five the players! In the season of US Thanksgiving holidays, we were thankful to McDermott for delivering a presentation on global business opportunities with the company (specifically in the Americas region), and EIC members learned how to pre-qualify as a successful vendor. As we close out the year, be sure to mark your calendars for upcoming events such as the Onshore Wind Sector Showcase on 28 January which will have a particular focus on repowering, and EIC Connect Mexico Energy Forum on 27 February 2020 in Mexico City. Amanda Duhon, Regional Director, North & Central America amanda.duhon@the-eic.com

Forthcoming events

EICDataStream Overview Fortnightly, EIC Houston

SAVE THE DATE Onshore Wind Sector Showcase Tuesday 28 January 2020, EIC Houston

SAVE THE DATE EIC North & Central America Open Day Thursday 30 January 2020, EIC Houston

SAVE THE DATE EIC Connect Mexico Energy Forum Thursday 27 February 2020, Reforma, Mexico City Get in touch Share your news and views...

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BP’s project quality team with Amanda Duhon (second left) in the EIC Houston office

Regional news

BHP encounters more pay in Trinidad and Tobago

Australian operator BHP has completed two additional exploration wells in northern Trinidad and Tobago as part of Phase 4 of its deepwater drilling campaign. The Boom-1 well on Block 14 was spud on 28 August 2019 and encountered hydrocarbons; evaluation and analysis is underway. The Carnival-1 well spud on 30 September 2019 on the same block, however, came up dry. The wells completed BHP’s exploration programme on its Trinidad and Tobago Northern licenses.

Plaquemines LNG clears final regulatory hurdle

The US Federal Energy Regulatory Commission (FERC) has issued final approval for Venture Global to begin construction on its planned US$8.5bn, 20mtpa LNG liquefaction and export facility in Plaquemines Parish, Louisiana. The facility will feature 20 liquefaction trains, each with a capacity to produce approximately 1mtpa of LNG.

Forthcoming events

Please go to page 16 to see upcoming events in your region

23 23

South America news Regional update

This has been an exciting year for the South America office with a much busier line-up of events held not only in Rio de Janeiro, but also São Paulo and Argentina. EIC members had the Clariss e Roch a opportunity to join business events with companies such as SBM, Modec, McDermott, Wood, We integrated solutions (JV between Worley and Enaval), Saipem and Enauta. They were able to present and discuss their projects and thoughts about the industry, reinforcing the importance of a well-developed local supply chain. A highlight was the second edition of the Brazil Energy Future Summit, held in partnership with the Oxford Energy Institute, gathering 100 attendees to discuss the importance of natural gas and renewable energy as alternative sources for decarbonisation in the global energy matrix. In 2020 the EIC Rio team is organising the UK pavilion at Rio Oil & Gas 2020 – the largest oil and gas trade show in Latin America scheduled for 21-24 September. With so many new operators in the region, UK suppliers can’t afford to miss out. There are stands still available.

Regional news

A-6 power auction awards PPAs to 3GW of new projects Brazil’s latest power auction has awarded power purchase agreements (PPAs) for new projects with a combined installed capacity of 2,979MW. Designed for projects that will start injecting power into the grid over a six-year period, the A-6 auction is an opportunity for generation companies to obtain long-term PPAs with distribution players across the country. Wind farms totalling 1,040MW of installed capacity obtained PPAs, followed by 963,7MW of thermal power plants (of which 734MW are associated with gas-fired plants and 229.6MW with sugarcane-fired biomass plants), 530MW related to solar PV plants and 445.1MW from small hydro power plants.

Event report

Saipem, pictured, spoke at our business presentation in October. The Italian oil and gas contractor outlined the company’s track record in Brazil and what operations they have developed at their integrated logistics base in Guarujá, São Paulo. We would like to thank Mr Lauro Puppim, Director of Subsea Business Development, Mrs Daniele Bazilio, Procurement Manager and Mr Pablo Araújo, Post Order Manager, for their excellent presentation which detailed their future needs from suppliers and the qualification process. Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

IOCs obtain blocks at 16th bidding round for E&P contracts

The 16th bidding round for E&P concessions in Brazil has awarded 12 offshore blocks to Petrobras and various international oil companies, which paid signature bonuses totalling US$2.16bn. Chevron, Petronas, Repsol and Shell acquired two blocks each as operators, followed by BP, ExxonMobil, Petrobras and Total with one block each. The latter acquired the C-M-541 block in the Campos Basin in partnership with Petronas and Qatar Petroleum, paying a massive signature bonus of R$4bn (US$972m).

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EIC (Energy Industries Council)

50 24

EIC Survive & Success stories

Volume III

Lloyds Register

Expert insight and assurance for transformative decisions How is Lloyd’s Register thriving? In a world of increasing complexity, overloaded with data and opinion, Lloyd’s Register (LR) stands out from the competition as one of the world’s leading providers of professional services for engineering and technology. By effortlessly marrying engineering expertise, technology and data, LR is an experienced hand and trusted partner that enables clients to attain independent and technically derived insights and solutions. LR is uniquely underpinned by its 250-year legacy, commitment to engineering a safer world through the LR Foundation, a dedication to assurance and a deep-rooted desire to drive better performance for its clients. As pioneers, LR has some notable firsts, publishing the first classification notes for offshore platforms, successfully delivering the first HPHT well drilled in the North Sea following the Macondo incident, designing and project managing the construction of

Hagshaw Hill, Scotland’s first wind farm, and certifying the first additive manufactured component for the oil

& gas sector. But what’s next for the engineering powerhouse?

The challenge Our purpose remains resolute - working together for a safer world. In all areas of the energy mix, throughout the supply chain and across the globe, LR will continue to support its clients through the complexity of tomorrow’s market challenges, providing the technical confidence and credibility they will need for improved business performance as new energy sources are developed. David Clark, Energy Director

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Email • Phone +44 +44 (0)20(0)20 70917091 86008600 Email:newsdesk@the-eic.com insideenergy@the-eic.com • Phone:

A company operating for more than two centuries, Lloyd’s Register boasts a wide breadth of capabilities. However, the company’s energy business needed to transform itself in line with an oil and gas industry that, upon finally emerging from one of its worst downturns, had significantly changed. In a business reality increasingly influenced by disruptive transformation, Lloyd’s Register had to reposition its energy capabilities, with an enhanced focus on providing value-add solutions for their clients across increasingly complex operations and infrastructure in both the oil & gas and renewables sectors.

Success stories EIC Survive & thrive III

The solution In line with an objective to re-scale the business and create a long-term, sustainable organisation, Lloyd’s Register appointed a new leader who had a clear focus on growth by taking advantage of the company’s many differentiators. Although a complex task which required new skill sets, the company’s energy division reshaped and refocused quickly, a process which included departing from markets that had become commoditised Lloyd’s Register realised it could do much more. Going beyond the traditional consulting and assurance service offering, the company made the decision to leverage its deep understanding of complex operations – in areas such as project management, risk management, operational efficiency and maintenance optimisation – to play a more material role in meeting energy clients’ needs by helping maximise productivity and recovery, reducing operating costs, mitigating risk and demonstrating compliance with government regulations, industry codes and standards. In the oil and gas business, this strategy involved targeting independent operators and in 2018, Lloyd’s Register secured a drilling project management contract witha UK-based E&P player. The company wanted to drill an exploration well off the Shetland Islands, an area where challenging weather conditions imposed

Story type

a limited operational window. The project was planned and executed in a short timeframe to ensure that the well could be drilled and tested in the summer and autumn months. Working within tight timings, Lloyd’s Register created a bespoke rig intake plan, ensuring crew and equipment were ready. Drilling problems were encountered, but the company took swift actions to remediate them. Lloyd’s Register’s expertise limited non-productive time to 11.8% of total operational time and the project was successfully delivered 20% under the agreed authority for expenditures budget. Delivering solutions that optimise processes, improve performance and reduce costs is what drives Lloyd’s Register. Aker BP were keen to see how it could make the most of its realtime equipment data to safely reduce maintenance workloads and spending on its Skarv floating production, storage and offloading (FPSO) unit. Focusing on two core maintenance areas: the FPSO’s centrifugal pumps and fire and gas detectors, covering a total maintenance history of 60 months, Lloyd’s Register applied its engineering expertise and its AllAssets Maintenance Optimisation™ software, reducing the annual planned maintenance hours/cost for fire and gas detectors by more than 50% and optimising centrifugal pump maintenance, with an estimated annual saving of 400KNOK.

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• Ensure a fiscal and regulatory regime that supports safe investment

Lloyd’s Register at a glance: Key products and services: professional engineering and technology services

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About Lloyd’s Register Starting in 1760 in London as a marine classification society, Lloyd’s Register today is one of the world’s leading providers of professional services for engineering and technology, improving safety and increasing the performance of critical infrastructures for clients in over 75 countries worldwide. The company is active in many industry sectors, including aerospace, defence, energy, financial, food and beverage, healthcare, manufacturing and marine, among others. Its portfolio includes certification, inspection, assurance, consulting and training services, in addition to digital and software solutions. In the Energy space, Lloyd’s Register provides solutions across the entire value chain and lifecycle, from field development, asset management, and decommissioning of fields and assets, to offshore wind farm development and grid connection, among others. Profits generated by the company fund the Lloyd’s Register Foundation, a charity established in 2012 which supports engineering-related research, training and education.

Main industries served: • Oil and gas (upstream) – 70% • Downstream and other energy sectors – 30% Headquarters: London, UK Year established: 1760 Number of employees: 6,000 Revenue: £800m Revenue from exports: 60%

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Success stories EIC Survive & thrive III

MES Smart optimisation and differentiation to overcome the downturn How is MES thriving? Following the downturn in the oil and gas market, the company successfully diversified its business towards the OPEX segment, achieving a balance with CAPEX. Monaco Engineering Solutions (MES) shifted its focus from offering standard risk-management and reliability consulting services to more client-focused, value-added solutions delivering multi-million dollar savings.

The challenge As a consultancy mainly supporting FEED and EPC projects, MES was not immediately affected by the oil and gas downturn in 2014 since projects that had been sanctioned before the downturn were forced to continue until their completion. The company would only feel the impact of the crisis in the following year, when the consequences of a reduction in CAPEX projects were working their way down the supply chain. Consultancy prices plummeted due to increased competition. MES realised it was not reacting quickly enough to the market conditions. Revenues were falling fast as the company’s business pipeline narrowed significantly. Meanwhile, staff morale was low. There were no redundancies, however, key senior management were asked to take voluntary salary

cuts. The company had to find a quick solution.

The solution MES’ first step was to revisit their strategy and align it with the current market conditions. In 2015, the company arranged a meeting involving all Operations Managers to discuss the future outlook of the organisation. Three options were put on the table: reduce size and cut costs; diversify into new markets and sectors; or seek to offer differentiated solutions specifically targeting the OPEX market. The first alternative would enable short-term gains but would probably cause an impact in the short to medium-term.

As part of its growth strategy, MES decided to focus on offering a customer focussed orientated business model with the aim to minimise the risks to client operations and assets whilst maximising performance and operability. Giovanni Monaco, Managing Director

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Although a good idea in principle, diversification into other markets was considered to require a lot of upfront investment and take a long time to produce returns. Facing a dwindling CAPEX market, the company decided to optimise in order to tap existing opportunities in the OPEX market. As part of its growth strategy MES decided to become a one-stop-shop, integrating its services under one roof, offering a full set of specialised services. The idea was to package its expertise into a single integrated product, offering increased reliability, safety and cost reductions. MES also wanted to use innovation and technology to show clients the real value of what the company could offer. Instead of producing the conventional risk assessment reports, MES would help clients act on them, showing them the real added value of the work performed. This approach led the company to develop various in-house software tools, make them available to customers and educate them on their use, with the ultimate goal of allowing them the continuously benefit of what

Success stories EIC Survive & thrive III

was offered. It was about changing a transactional relationship to a longterm one. Since adopting this strategy, MES has met success in various markets. Incorporating its fire and gas knowhow and software solutions with the client’s own operating experience, MES were awarded several contracts with a major operator in Oman for fire and gas optimisation studies, saving the client over US$40m after eliminating a large proportion of spurious trips. Another opportunity came with a major client in Kazakhstan who intended to phase out operations at one of their existing facilities. MES were engaged to perform a risk assessment using its in-house tool MERIT and showed that the operations could continue with implementing a number of risk reduction measures and thereby allowing the client to continue generating 500+ million USD of revenue.

drive performance improvement at a refinery in Pakistan by over 0.5%, allowing increased annual revenues/ savings of US$12m by reducing downtime at the refinery and increasing maintenance optimisation. MES has reverted its losses and is back on a path to achieving strong growth and profitability. Revenues grew from US$6m in 2015 to over US$11m in 2018. While CAPEX dominated the company’s revenues in 2014, it is now evenly balanced with OPEX. Safety and Reliability optimisation, and fire and gas mapping work for clients took off: representing approximately US$700,000 of the company’s revenues in 2014, both services now contribute over US$3m towards the annual revenues.

About MES

Focusing primarily on the oil and gas market, MES serves clients through a project’s entire lifecycle - from the conceptual design to the operational phase and eventual decommissioning. The company offers a wide range of services, including workshop facilitation, safety engineering, design of fire protection and detection systems, qualitative and quantitative risk assessments, reliability availability and maintainability as well as specialist inspection and audit services, among others.

In another case study, the MES Reliability tool PLASMA, was used to

MES is an independent consultancy company specialising in technical safety, HSE risk management, asset integrity and operational assurance.

Founded in 2006, the company has its headquarters in the UK, with additional offices in Italy, Kazakhstan, Kuwait, Malaysia, Nigeria, Oman, Qatar, the UAE and the US.

Story type

Key findings

Government support?

#digital, #diversification, #innovation, #optimisation, #service/solutions

For industry

The company has not received any type of government support.

Benefits

• Prepare a strong business plan and put it in place. Once implemented continuously review performance

• More than US$500m in savings for one client

For government • Greater support should be made available to smaller businesses, especially when it comes to financing • DIT should do more to support companies seeking international markets • UK Export Finance should improve transparency

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MES at a glance: Key products and services: technical safety, risk assessment, loss prevention, process optimisation and asset integrity engineering services. Main industries served: • Oil and gas – 95% • Renewables – 5% Headquarters: Dorking, UK Year established: 2006 Number of employees: 100 (23 in the UK) Revenue: US$11m (US$4m in the UK) Revenue from exports: 85%

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Success stories EIC Survive & thrive III

Pipeline Induction Heat (PIH) Prize-fighter mentality to overcome the crisis How is PIH thriving? After a reboot of the company’s business model and size in 2015, PIH’s implemented a successful plan to grow exports and diversify its client base and service offering. The company has retained its number one market position, albeit in a much reduced market size, while protecting its core workforce.

The challenge The collapse in oil price dealt a significant blow to PIH. A fast-growing company, which doubled its size just before the crisis, PIH saw its revenues fall by over 40% in a two-year period. Although the company managed to overcome the initial impact thanks to a good business backlog, the need to survive led PIH to cut 50% of its workforce, a tough but necessary decision to make. Moreover, PIH’s clients were changing the way business was done. Due to local content requirements and with excess capacity themselves, key subsea companies were undertaking field joint coating work themselves instead of hiring subcontractors, such as PIH, to undertake the task.

These challenges significantly impacted PIH. The company could not afford to wait until the market improved and there was no room for complacency.

The solution Time was of the essence, and the company quickly developed a plan. PIH’s MD Paul McShane had previous experience in companies undergoing financial trouble and he knew how important it was to act fast. The first action was to reorganise and resize: called ‘Project Rocket’, this strategy entailed a complete business

PIH has consistently embraced the need to change as critical to its survival. Enjoying a number one market position for many years, it has fought complacency and focused on the voice of the customer and investments to future proof the organisation. A people focused client centric can-do attitude has been the key to PIH’s ability to thrive. Paul McShane, Managing Director

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reorganisation and the identification of core talent within the company. Four key strategies ensued, beginning with ‘Project Funnelweb’. Supported by internal and external market intelligence sources (such as EICDataStream), networking and stakeholder engagement, PIH developed a worldclass business development (BD) funnel to bring in leads in key markets. The company focused on winning all opportunities available, even if this meant spending more, rather than less, money on marketing and BD activities. The second initiative was ‘PIH Lite’. Under price pressure from clients, PIH developed a more streamlined offering, involving a shallower scope of work as well as lower prices and costs. While PIH Lite represented 5% of the company’s revenue in 2015, PIH eventually decided to morph the best elements of Lite into its core offering, which is now much leaner than in precrisis years. Then came ‘Regain #1’, PIH’s third strategy. PIH wanted to reclaim its place as the number one spool base subcontractor for thick insulation work

Success stories EIC Survive & thrive III

in deepwater applications, a market that collapsed following the downturn. Pre-2015 PIH was present in every spool base across the world. Following the crisis it was committed to regaining that spot. Although this market shrunk by 80% since the downturn hit, PIH continued to invest in breakthrough materials, end-to-end partnerships and automation which will pay dividends in the coming years. Lastly, PIH embarked on a regional consolidation and diversification strategy. After 2014, the company streamlined its operations back to its UK Centre of Excellence and its Middle East operations, reducing its Malaysia operations and manpower levels in Houston. After its implementation, this strategy allowed PIH’s first ever contracts in Bulgaria, China, Kazakhstan and Kuwait (having met Kuwaiti customers at an EIC Connect event), all supported by the company’s

Story type #diversification, #export, #optimisation

Benefits • Successful business reorganisation, retaining number one position in field joint coating market • Customer base doubled since 2014 • New export markets generating 25% of current revenues • Successful diversification to noncore field services (25% of current revenues)

Key findings For industry • The market is fragile, so companies must be agile • Be ruthless and go early if you want to control your own destiny and be an inside-out business, rather than a market led business

UK operations. New markets provided a boost to PIH’s revenues, generating 25% of current revenues. As to diversification, the company managed to increase the share of non-core field services to 25% of total revenues, while relying less on major contractors (which previously accounted for 100% of the company’s customer base). PIH not only retained its leading market share following the adoption of its multi-strategy plan, but the company also managed to diversify and focus on new countries, services and sectors. The company has stabilised its revenues while retaining its core workforce. Key metrics performed well in 2018: RFQs are on the rise, as well as contract awards. In total, PIH won 34 projects worth over US$25m in 2018. PIH knows well that market dynamics are inescapable, but the company’s prize-fighter mentality, battling for every dollar, has been key

For government • Additional funding support is necessary • Tax breaks and reforms are needed • Reduce corporation tax on export revenues

Government support? The company has joined DIT-led trade delegations. In addition, PIH has benefited from R&D tax credits as well as Apprenticeship Levy support.

Export lessons • • • • •

About PIH One of the world’s leading field joint coating subcontractors, PIH provides application equipment and material solutions that protect onshore and offshore pipelines from corrosion, heat loss and mechanical damage at field joints. Since 1980, the company has diversified from the original core business of providing induction heating services for welding to offering a full range of anti-corrosion, insulation and profile infill solutions for pipeline field joints. Headquartered in Burnley, PIH has offices in Australia, Oman and the UAE. Through CRC-Evans, PIH is also present in Brazil and the US.

Scaling-up lessons • Keep employee engagement as a core skill • Learn how to manage rapid growth • Go digital • Set targets • Build a talented team

PIH at a glance: Key products and services: anticorrosion services for pipelines Main industries served:

Look at the demographics Calculate the addressable market Understand customs processes Develop knowledge on local content Understand tax issues

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in overcoming the crisis and succeeding at home and abroad.

• Oil and gas – 100% (offshore – 60%, onshore – 40%) Headquarters: Burnley, UK Year established: 1980 Number of employees: 193 Revenue: US$50m Revenue from exports: 90%

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Success stories EIC Survive & thrive III

Powertherm Innovative Space-Ring System combatting corrosion under insulation How is Powertherm thriving? As a thermal and acoustic insulation service expert, the family-run company made its first leap into innovative product design with its Space-Ring System (SRS), a unique patented solution to combat corrosion under insulation (CUI). The SRS has improved safety, reduced the need for relentless maintenance and as a result significantly reduce costs in critical installations.

The challenge Back in 2015, Powertherm’s Managing Director and his father – the company’s founder – were at Düsseldorf Airport having a discussion about how to address CUI. A condition caused by the presence of moisture on the external surface of insulated equipment, CUI is responsible for estimated costs of £4tn globally per year. Its cause is generally attributed to a chloride-rich moisture build-up inside the insulation. As it cannot be seen, CUI has become a critical safety hazard, with numerous cases causing catastrophic outcomes. Although it is a serious industry issue, Powertherm did not see an appropriate solution in the market. There were options to attempt to prevent moisture entering the cladding,

by using stronger insulation material, however, if moisture was still entering no solution had the capabilities to allow it to escape and none had drying proficiencies. A company with a strong safety focus, Powertherm wanted to provide a solution to this industry challenge.

The solution Insulation services is in Powertherm’s DNA, and the company was determined to tackle CUI. Following internal discussions, it identified a key issue in many installations: the sheet metal cladding of many insulation systems was not sufficiently strong,

The Space-Ring System is the most comprehensive solution in the market to combat a critical safety issue on a global scale: corrosion under insulation, and in turn significantly reduce costs. Paul Ashton, Managing Director

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causing the system to buckle and become damaged. This in turn allows moisture into the system, encouraging CUI. Powertherm saw the opportunity to develop a practical, cost-effective solution for the problem. The company introduced a support system that provided more strength by using support rings to transfer the weight load from the soft, often friable insulation onto the pipe itself, which is considerably stronger. This solution has the benefit of reducing impact to the cladding, rendering it much stronger and preventing seams from buckling. In addition, an air space was introduced, through which low-level drainage points and free-flowing air help keep the pipe and surrounding insulation dry, in the unlikely occurrence of moisture entering the system. The modular design of the SRS also allows for routine inspection of areas which are prone to CUI and allowing installation on pipes of varying sizes. Dubbed the Space-Ring System (SRS), this solution was the first CUI product

Success stories EIC Survive & thrive III

developed by Powertherm. The SRS requires little additional training and time for installation, and its associated costs are negligible compared to the lengthy and expensive processes of inspecting, repairing and replacing corroded pipes. Getting SRS off the drawing board was not easy, however: the company funded the development of its new solution by itself, and the patenting process took three years. The SRS started being marketed to the industry in 2017, and has already found market opportunities. Powertherm provided its solution to a major client’s terminal in Pembrokeshire, Wales, via a sub-contract. Of the total contract value, 3.6% was related to the SRS scope. Since its launch, SRS has been used in 20 onshore and offshore sites.

be holding several CUI sessions, bringing a CUI expert to demonstrate the importance of combatting CUI. Powertherm, is keen on designing engineered solutions, selling directly to operators and offering them a 10-year insurance backed contract with a zero CUI warranty and regular inspections for high-risk pipework and assets. Discussions regarding specification have also taken place with key individuals at the Health and Safety Executive, who sees CUI as a major safety hazard and that the industry would see the benefit from offering such a package. The SRS has been tweaked and improved over time, and the company is now working with operators with the aim of getting them to specify SRS for their projects. The SRS has the potential to eradicate safety risks, associated production losses and maintenance costs, saving clients millions in the process.

1989, Sheffield-based Powertherm is a leading provider of a range of innovative thermal and acoustic insulation solutions to the power generation and petrochemical industries. A member of the Thermal Insulation Contractors Association and safe contractor approved, the company’s insulations are used in cryogenic to high-temperature environments, pressure vessels, boilers and associated piping and storage tanks, among other applications.

A family-owned business founded in

A multi-discipline industrial service provider with 30 years of experience, the company also offers electric trace heating, painting and specialist coatings, scaffolding and rope access, refractory lining, as well as bespoke flexible insulation covers and expansion joints.

Story type

Key findings

Powertherm at a glance:

#innovation

For industry

Key products and services: design and manufacture of insulation products

Benefits

• Find good consultants to advise your company • Talk to companies which have had a similar experience • Provide advice and guidance to clients on best practices, to achieve their goals

It is only the beginning for Powertherm’s innovative solution, but the company is intent on providing not only the solution to CUI but the platform to inform companies of the threat of CUI. Powertherm will

• Avoidance of CUI cases, allowing multi-million cost savings • Increased safety of personnel

About Powertherm

For government • Greater support is needed for innovation and technological development, especially with regards to funding

Main industries served: • • • •

Renewables – 64% Power – 16% Oil and gas – 10% Others – 10%

Headquarters: Sheffield, UK Year established: 1989 Number of employees: 170 Revenue: £13m Revenue from exports: 5%

Government support? The company has received grants and R&D tax credits. In addition, Powertherm has also benefitted from the Apprenticeship Levy.

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Success stories EIC Survive & thrive III

Proserv Boosting growth through service localisation How is Proserv thriving? In a bid to boost growth in the Middle East, Proserv became the service partner for legacy and third-party equipment in the region after a smart localisation process put into motion before the industry downturn began. This successful strategy has led the company to invest US$1m in the expansion of its service centre in Abu Dhabi and further consolidated the company as a leader in the wellhead controls segment.

The challenge Unlike many other companies, Proserv’s survive and thrive story is not related to the downturn in the oil and gas industry. Boasting the largest installed base of control systems in this market, the company’s core business was doing well. However, Proserv’s businesses outside its usual markets in the UK, Norway and the US were not as successful: they were not growing and, rather than being integral parts of the company, were more like outposts. Coincidentally, these remote units were located in markets where local content was beginning to become more important. Measures such as the InCountry Value (ICV) or the In-Kingdom Total Value Add Program (IKTVA)

were being introduced by national oil companies in the Middle East, and competitors were already gearing up to this new challenge. Proserv recognised that local content was a reality and the company had to adapt fast.

The solution In order to grow and adapt to new market demands, Proserv implemented a service localisation strategy by creating manufacturing and service centres in the Middle East. The company had a large installed base of legacy equipment in the region

We adapted our strategy by recognising the needs of our clients and understanding the prevailing market conditions. Currently, operators want to reduce costs, save time and optimise the performance of their existing equipment – that’s exactly what we are offering them. Andy Anderson, President, Production Controls

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- this was an opportunity to set up capabilities close to existing customers as well as companies with non-Proserv equipment. The company wanted to engage with local companies, listen and work with them to find solutions for the refurbishment or upgrade of existing equipment with the aim of extending its life, improve operability, and, ultimately, reduce costs. In short, Proserv wanted to be the go-to supplier for local players in need of equipment and services. Proserv’s strategy identified a leading regional national oil company (NOC), as a key client. The NOC was facing issues which required equipment to be transported from Europe or the US. The client also required skilled technicians for surveying and reporting services, which, in principle, would have to be mobilised from other countries. However, sourcing goods and services from Europe or North America would be costly and timeconsuming. Proserv had the technology and the skills transfer capability to meet the

Success stories EIC Survive & thrive III

NOC’s requirements efficiently and at a lower cost. Beginning as an ad-hoc arrangement the relationship soon developed and Proserv signed a service agreement with the client to carry out surveys and reports as well as service their wellhead control systems. Proserv’s local capabilities reduced mobilisation costs to zero, while avoiding time-consuming procedures that would be needed had staff been brought in from the UK. Today, Proserv has a team of 15 technicians dedicated to the NOC, with an additional 10 working on an ad-hoc basis. The solution provided to the NOC was an example of Proserv’s successful optimisation strategy and technological expertise. Instead of resorting to costly equipment acquisitions, which often lead to downtime or reduced plant capacity, operators are able to upgrade or repair their equipment using Proserv’s technical capabilities. Even when major upgrades are necessary, Proserv’s R&D hubs in the UK and Norway, specialised in SCADA

Story type #digital, #export, #optimisation, #service/solutions

Benefits • Enhanced productivity thanks to faster response time • Upgrades/repairs allowing significant cost savings • Zero mobilisation costs thanks to local presence

and wireless communications, can add new technology into older equipment. This avoids the need for replacement and reduces the requirement for repeated maintenance checks at the field. Proserv’s strategy to get closer to its customers in the Middle East while going after clients with third-party equipment has been successful, leading to the expansion of the Abu Dhabi service centre in 2019. Not only did the company anticipate the local content trend and successfully react before the downturn, Proserv also increased its revenues from previously neglected markets and became a trusted partner for clients with non-Proserv equipment seeking technological expertise and lower costs.

About Proserv Proserv provides innovative life of field controls technologies and services that improve reliability, maximise production and enhance asset integrity.

For government • The government’s energy policy should be properly marketed, with a better menu of solutions to the business segment • Many suppliers are unaware of the support available to them

Government support? The company has not received any type of government support.

Key findings

Export lessons

For industry

• Local presence is critical to understand clients’ requirements and culture • Have a full understanding of the supply chain involved when exporting

• Understand and listen to your customer • Take your time to develop and implement a plan based on your customers’ needs

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By combining technical ingenuity with design, engineering, manufacturing and field service expertise, the company creates state-of-the-art solutions that can be applied to standardised systems. Proserv operates across four key business units: drilling controls, production controls, subsea controls and field technology services. The company offers additional capabilities in renewables, acoustic communication and positioning (through its Nautronix brand), sampling and injection solutions, as well as testing and calibration solutions. Although the company was founded in 1974, Proserv has an extensive brand heritage spanning over 50 years. Headquartered in Aberdeen, the company has offices in 18 locations around the world with operations in more than 60 countries.

Proserv at a glance: Key products and services: controls technologies for the oil and gas market Main industries served: • Oil and gas – 90% • Renewables – 10% Headquarters: Aberdeen, UK Year established: 1974 Number of employees: 1,300 (650 in the UK) Revenue: N/D Revenue from exports: 75%

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Success stories EIC Survive & thrive III

Raytec Passionate about lighting

How is Raytec thriving? After listening to clients, Raytec innovated and quickly brought to market its game-changing Intelligent Emergency lighting technology. This solution automates self-testing and prolongs battery life, eliminating manual testing and increasing reliability and safety.

The challenge Hazardous area environments

present many challenges: one of them is sites relying on unstable power sources and consequently the high risk of power outages. Emergency lighting plays an essential role in providing back-up illumination in case of blackouts. For emergency lighting to operate effectively, however, batteries must be regularly checked and tested to ensure there is no degradation in their capacity. Further conditioning is also required to maintain their optimum performance.

We developed Intelligent Emergency after listening to customer feedback and the end result will provide them with a real benefit once installed. Intelligent Emergency hits two of our key product design focuses: class leading emergency products and easier maintenance. Barry Thompson, Director of Hazardous Area Division

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The maintenance of emergency lighting presents challenges, however. Most emergency variants of hazardous area lighting products rely on manual testing to regularly check the equipment’s performance in emergency mode, as well as the battery’s health. This can be problematic, as reliance on human intervention for routine monitoring, checking and testing carries an associated risk of human error or neglect, compromising site safety.

The solution As industry experts with a strong reputation for creating innovative and exciting new products, Raytec set out to make emergency lighting more reliable and intelligent. Listening to feedback from clients and distributors, in 2018 the company developed Intelligent Emergency, a solution that goes beyond conventional emergency lighting. Intelligent Emergency luminaires feature a built-in microprocessor which automatically cycles the emergency batteries, checks the health status of the luminaire and

Success stories EIC Survive & thrive III

communicates it via an LED indicator. The entire process is automated, unlike conventional emergency illumination products in which checks and battery cycling are a manual process. Raytec’s innovation boosts safety. Automating the maintenance process by introducing intelligent emergency luminaires effectively eliminates the risk of human error or neglect, increasing reliability of the emergency network, improving overall site safety and allowing time and cost savings with regard to maintenance. Moreover, Intelligent Emergency lighting maintains 100% of light output during testing or battery cycling, whereas other lighting products operate at a reduced output, leading to loss of illumination. Intelligent Emergency products also carry out testing randomly, ensuring there is never a significant proportion of luminaires undergoing a testing cycle at one time, and thus preventing any unexpected shortage should a problem occur.

After listening to clients, the company used its speed and agility in product development to quickly bring to market a solution that introduces self-testing capabilities to emergency lighting, boosting reliability and safety. While competitors offer similar solution through costly add-ons, Raytec was the first to market this innovation as a standard product, creating value for costumers. This solution is helping the company succeed by winning new clients and staying ahead of the competition.

About Raytec

for easy maintenance to reduce downtime and lifetime costs. Founded in 2005, Raytec has its headquarters in Ashington, UK, with an office in Ottawa, Canada. All the company’s products are manufactured in-house, in the UK. Raytec’s products are distributed over 70 countries across the world.

Innovation is key to Raytec’s success.

Raytec is a leading player in LED lighting for hazardous areas. As LED specialists, every Raytec luminaire uses a bespoke housing to thermally manage the LEDs, ensuring long life and reliability. As well as their pioneering emergency solutions, Raytec’s portfolio includes several innovative products, such as the Linear and Bulkhead ranges, as well as the latest High Power Flood and Bay luminaires. All products are engineered

Story type

Key findings

Scaling-up lessons

#innovation, #service/solutions, #technology

For industry

• Grant support at the early stages of a scale-up process is essential.

Benefits • Improved site reliability and safety • Intelligent Emergency as standard offering is a major market differentiator

• Always listen to customers • Proactivity is essential – always innovate • Find distributors with local market knowledge that add value to the selling process and not just take commissions

Raytec at a glance: Key products and services: design and manufacture of LED lighting for hazardous areas Main industries served:

For government • The government should help suppliers choose local partners in international markets

Government support? Raytec has received R&D tax credits. The company has also benefited from the Apprenticeship Levy.

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• Hazardous industrial – 65% • Oil and gas – 35% Headquarters: Ashington, UK Year established: 2005 Number of employees: 80 Revenue: £12m Revenue from exports: 60%

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