Inside Monthly news for EIC members January 2018
Spotlight on technology
One-to-one
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How will the government’s Clean Growth Strategy affect specific UK sectors and projects?
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20
Sector analysis
Ph
Proserv Saudi Arabia’s General Manager Gordon Geekie on making it in the Middle East
We put the focus on Aiken Group’s Welhab hot works habitats
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Sector analysis
Clean Growth Strategy: the winners and losers With great fanfare, Westminster last autumn released its long-awaited Clean Growth Strategy. This is the successor to previous carbon plans, and charts the pathway the government aims to follow towards the decarbonisation of our energy, power and transport. The new strategy spans the years from 2023 to 2027 and 2028 to 2032, covering the fourth and fifth carbon budgets, the periods over which the UK has committed to cut its greenhouse gas emissions to 57% below 1990 levels. The Committee on Climate Change, in its report to parliament earlier last year, warned that the UK was on track to miss its fourth and fifth carbon budgets. This article looks at how the key announcements in the new strategy will affect specific UK sectors and projects. Offshore wind Offshore wind projects were the biggest winners from autumn 2017’s contract for difference (CfD) auction. Three mega-projects, totalling almost 3.2GW in capacity, delivered record-breaking price reductions. The government rewarded this achievement by confirming a further £557m in low carbon support in future auctions, with offshore wind projects expected to take the biggest share. The four projects in the Dogger Bank area, totalling 4.8GW of capacity, are likely to bid in future auctions and benefit from this funding. There was also the promise of a tailored sector deal for the offshore wind industry. A target was set to install 10GW of offshore wind capacity in the 2020s, and possibly even more if it were cost-effective and deliverable. This should lead to significant opportunities for UK supply chain companies. Currently, 48% of contracts awarded for work on offshore wind farms go to companies based in the UK, close to the government’s 50% aim for 2020. Nuclear and CCS Nuclear was another industry to be promised a sector deal. The government reiterated its support for the Hinkley Point C plant and committed to discussions with developers to deliver a new set of competitively-priced future projects. This could establish the UK as a rare growth market for a global nuclear industry that has fallen on hard times recently. £100m was also pledged in support for carbon capture, use and storage (CCUS) technologies. This represents a significant position change, and provides a lifeline for the industry after the withdrawal of the £1bn competition to develop CCS at commercial scale in 2015.
Oliver
Metca
lfe
Others lose out One surprise was the lack of support for new onshore wind and solar projects. Many expected the government to soften planning laws for the two cheapest forms of renewables. However, only onshore wind farms on remote Scottish islands will be allowed to bid in the next CfD auction in spring 2019. More nascent technologies, tidal and wave power, also received few guarantees of future support. They were tasked with demonstrating how they would compete on price with other forms of generation. This could mean large-scale projects such as the MeyGen tidal array in Scotland may struggle to secure finance. Meanwhile, there was an ominous silence about the Swansea Bay tidal lagoon. Developers have already cast doubt on the viability of the Cardiff Bay mega-project if support for Swansea does not materialise. Many thought that the government would use the Clean Growth Strategy to respond to the positive review published of the project in early 2017. A decision is still awaited. Innovation Chief among the government’s claims was that investment in green initiatives is no longer an expensive necessity, but a way to create jobs and drive real economic growth. A new triple test for clean technologies was announced. Politicians would support technologies that deliver maximum CO2 savings, outline a clear pathway for price reduction and establish the UK as a global leader in the sector. £900m was pledged to support R&D in the power sector. This included £265m to reduce the cost of energy storage and develop new smart technologies, £460m support for next-generation nuclear technologies and £177m to drive innovation in the renewables industry. There was also support for other technologies spanning the entire energy sector, with significant sums dedicated to drive the uptake of low-emissions vehicles and green heating. While there were relatively few firm policy commitments in the Clean Growth Strategy, there were certainly winners and losers. The government showed commitment to developing an economy around clean growth and the ambition needed to decarbonise the UK. Oliver Metcalfe Energy Analyst, Power, Nuclear and Renewables oliver.metcalfe@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 Energy Industries Council (EIC)
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Inside this issue... A warm welcome to 2018 to all our Inside Energy readers. I hope you’ve come back from the Christmas break refreshed and ready for the year ahead. At the EIC, the next 12 months are going to be very busy indeed with over 130 events set to take place all over the world. Below are a few select dates you should definitely put in your diary. We’re in the process of finalising dates and venues for EIC Connect events in Malaysia and Vietnam – we’ll update you as soon as we can. For the full list of EIC events and further details on those mentioned below please visit www.the-eic.com • 29 January
Westminster Round Table with Minister of State for Trade and Export Promotion, Baroness Rona Fairhead
• 12-14 February EIC UK pavilion at EGYPS, Cairo • 4-8 March
EIC delegation to Saudi Arabia
• March tbc
EIC 75th Anniversary VIP House of Lords Reception
• 17 April
EIC Connect Oil, Gas & Beyond, Abu Dhabi
Contents
• 30 April-3 May EIC UK pavilion at OTC, Houston
Sector analysis
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• 26-28 June
EIC UK pavilion at World Nuclear Exhibition, Paris
Inside this issue...
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• 27-30 August
EIC UK pavilion at ONS, Stavanger
• 6 September
EIC Connect USA, Houston
One-to-one 4 EICDataStream 5
• 24-27 September EIC UK pavilion at Rio Oil & Gas • 11 October
Westminster Round Table 6
EIC National Awards Dinner, London
• 12-15 November EIC UK pavilion at ADIPEC, Abu Dhabi • 27-28 November EIC Connect Oil & Gas and Decarbonisation, Manchester
New EIC members
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Member news
8
Social media round up 11 Forthcoming events
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Overseas events
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We’ve got a whole series of events planned to mark this milestone, in addition to the VIP reception at the House of Lords listed above.
UK Export Finance
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All the proceeds from our 75th anniversary events will go to two very worthy charities: Cancer Research UK and The Ocean Cleanup.
EIC Survive and Thrive 20
This year also sees the EIC celebrate its 75th birthday, making us one of the oldest trade associations in the world.
Wishing you all a prosperous and happy New Year. Edward White Editor and Communications Manager edward.white@the-eic.com Sign up for the EICOnline newsletter
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Spotlight on technology 19 Middle East news
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Asia Pacific news
23
North America news
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South America news 25 Follow @TheEICEnergy
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One-to-one with Gordon Geekie General Manager, Proserv
Proserv is a global leader and a fresh alternative in the delivery of engineering and technical services to the energy, process and utility markets. Supporting clients for the lifecycle of their assets, it operates in more than 6 regions throughout 22 facilities and 12 countries, offering 24/7 local support services.
Q
You head up Proserv’s Saudi Arabia unit. Can you tell us about it?
A
Proserv has been serving Aramco for over 30 years, mainly through our legacy brands, approved Proserv manufacturing facilities in Dubai and our service centre in Abu Dhabi.
We believe in adding value to the local supply chain and creating jobs and opportunities for the people in the communities in which we operate, so working with our JV partner (Bandariyah International Company – BIC) to establish Proserv Arabia Saudia (PAS) was a natural development.
We’ve transferred technology from our global sites to the new business in Saudi Arabia, invested heavily in our facility and put a great team in place. Having secured our Aramco plant ID and 9COM approvals to manufacture production equipment this year, it’s clear we’ve made the right decision.
Q
What advice would you give to companies expanding into new markets?
We’ve embraced the potential of Saudization, exceeding the localisation targets, resulting in PAS achieving a platinum rating with the Saudi Ministry of Labour.
A
For us, Saudization is a great opportunity to add diversity to our workforce by including Saudis and embracing their culture.
Having a strong in-house learning and development programme enables us to train our KSA employees to world-class standards. We are constantly running technical training programmes for new employees in our global facilities, as well as hosting our own online learning platform – Proserv Academy. Saudi Arabia is an exciting place to be and we’re proud to support its Vision 2030. We share those aims and look forward to being part of the country’s future successes.
We feel that businesses should empower local talent and support the country to grow. This has worked to great effect in our other locations such as Nigeria, Indonesia and Singapore.
Q
Collaboration is a word often bandied around by operators and contractors alike. How does PAS view collaboration?
A
With over 40 years of experience we can draw on a wealth of internal experience and collaboration to deliver technology and services to the market.
In KSA not only do we have a whole host of legacy brands which we work with, we also have service agreements with complementary production equipment OEMs to allow us to service their equipment both in-field and at our PAS service centre.
Get in touch Share Do youyour wishnews to beand profiled views... in this section? Email Pleasenewsdesk@the-eic.com contact edward.white@the-eic.com • Phone +44 (0)20 7091 8600
Q
How does Proserv help its clients extend the lives of their assets?
A
In today’s market, no one can afford to wait for breakdowns to happen. Responding to breakdowns should be the exception, certainly not the norm. We’re supporting our clients in planning and executing successful and effective maintenance operations and to break away from the ‘fix it when it breaks’ mentality.
By reducing the need to always replace old with new equipment, we can make real savings. We have countless examples of being able to repair or upgrade existing equipment for our clients, who would have traditionally bought a new replacement asset.
Our ultimate goal is to prevent or minimise operational down time, ensure efficiency and thereby increase assets’ productivity and reliability. This can be achieved through implementing a preventative maintenance programme – something we can do or train our clients to do.
We’ve also developed a web based asset management site. This assists our clients in mapping their assets and managing and planning optimal maintenance and to control their cost.
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Global opportunities DENMARK
Tyra field redevelopment Operator: Maersk Oil Value: US$3.3bn The Danish Underground Consortium has approved the full redevelopment of the gas field. The investment cost for modification to existing facilities and construction of new facilities is estimated at US$2.71bn and decommissioning of current facilities is estimated at US$640m.
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BAHRAIN
THE UK
Sitra refinery upgrade
Tolmount gas field
Operator: Bapco Value: US$5.5bn TechnipFMC jointly with Samsung Engineering and Tecnicas Reunidas has been awarded a US$4.2bn EPCC contract from Bapco. Work is scheduled for completion in 2022. The project is expected to reach FID in Q1 2018.
Operator: Premier Oil Value: US$600m The draft field development plan has been submitted to the OGA. Project sanction and the award of an EPCIC contract are expected to take place in May 2018. Proposals for main work scopes including drilling rig, pipeline and platform are currently being evaluated.
For more information on these and the 7,500 other current and future projects we are tracking please visit EICDataStream
TAIWAN
Changhua ZoP 13 offshore wind farm Operator: Ørsted Value: US$500m It is understood that Ørsted has received approval from the Environmental Protection Administration to develop the wind farm, which will be located in the Taiwan Strait off Changhua County, within the Da Changhua Development Zone.
THE UK
Atherstone biomass and energy from waste plant Operator: Park Top Value: US$35m Development of an RDF and biomass-fired power plant at the site of an existing anaerobic digestion facility. Warwickshire County Council has approved plans for the development, proposed by developer Park Top.
THE US
Kingston energy storage project Operator: Pacific Gas & Electric Company (PG&E) Value: US$120m A lithium ion battery storage project to be built in California with a designed capacity of 50MW/200MWh. The project’s EPC contract has been awarded to Enel Green Power, the financial terms of which were undisclosed.
CAPEX or OPEX, we’ve got it covered – with EICAssetMap
Our long-established database, EICDataStream, tracks CAPEX projects. Now with EICAssetMap we’ve got the O&M market covered too. What’s more it’s the only O&M database to map all major UK energy assets across all sectors. Key features: • Fully interactive – search for energy facilities by location, sector and operator • Make the right connections – find out who you need to do business with • Use it on the move – tablet friendly, allows your sales force to take it on the road • Unlimited company access – add as many colleagues as you like to your account • Stay up to date – updated daily by our expert analysts • Track the lifecycle of assets – from operation through to decommissioning
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EIC Westminster Round Table
Minister of State for Trade and Export Baroness Rona Fairhead with
Monday 29 January 2018
CON R AD LONDON ST JAMES 22-28 Broadway, London, SW1H 0BH
Set the agenda
How to apply
• Highlight the work your company is doing to survive
• A brief biography explaining why your company should
• Find out about current government thinking and influence
• A short profile of your CEO/UK director
An exclusive event
• A summary of your company’s strategy to survive and
• Express your views on our industry’s most pressing needs and thrive in the current tough market
its strategy for trade, Brexit and the energy industry
• Only 12 places available to CEOs and Directors • EIC member companies only
Send an email to stuart.broadley@the-eic.com with be selected
thrive in the current tough market
• Your top three ideas on what the government can do for the industry
We are looking for attendees that cover the full diversity of the UK’s energy supply chain
To
F
co E E AP ver e £1 50 AT PL vent Get in touch Share your news and views... TE Y T cEmail os newsdesk@the-eic.com • Phone +44 (0)20 7091 8600 N O ts
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New EIC members NEW UK MEMBER
NEW UK MEMBER
NEW PRIMARY MEMBER
Acumen Pipeline Services
Moflash Signalling Ltd
TPG Engineering Ltd
Acumen House Headlands Lane Knottingley WF11 0LA
11 Upper Conybere Street Highgate Birmingham B12 0EB
Astley Street Dukinfield Cheshire SK16 4QT
The Nominated Representative is Mr Shane Bonser, Director
The Nominated Representative is Mr Simon Evans, Sales Director
The Nominated Representative is Mr Paul Hopkinson, Sales Manager
Telephone +44 (0)1977 529 586
Telephone +44 (0)121 446 5322
Telephone +44 (0)161 331 4400
Email sbonser@acumenpipeline.co.uk
Email simon@moflash.co.uk
Email paul.hopkinson @tpgroup-mn.uk.com
Web www.acumenwaste.co.uk
Web www.moflash.co.uk
Web www.tpgroup.uk.com
Knottingley-based Acumen Pipeline Services is a major industrial service provider throughout the UK, with a strong portfolio of services that is welcomed by clients who seek the economy and surety of a single source provider of preventative pipeline preservation, maintenance, pipeline inspection, cleaning and testing services.
Moflash Signalling Ltd is a manufacturer of signalling devices for both Hazardous Zone 1 and Zone 0 and safe area applications.
Acumen’s comprehensive and specialised service portfolio means that it is the preferred supplier for organisations within the oil, gas, industrial and energy sectors with turn key solutions made up of pipeline maintenance along with cleaning and waste management capabilities. Its core services include but are not limited to:
The types of signals within the range include LED and xenon beacons, electronic sounders and combination sounder beacons as well as electromechanical devices such as buzzers, bells and hooters.
TPG Engineering is a leading supplier of heat exchangers and other high-integrity fabrications. These products operate in demanding applications, with complex metallurgy and highly specialised technical requirements. The company supplies to markets including upstream and downstream oil and gas, conventional and nuclear power generation, and the chemical process industries.
• Pigging • Cleaning • Gauging • Geometric (caliper) runs • Commissioning/decommissioning • Hydrostatic Testing • Chemical Cleaning • Drying • Inspection
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The product range covers visual, acoustic and combination signalling devices for general warning, fire alarm, process indication and control, obstruction marking and evacuation.
The company also has the capability to produce bespoke devices to meet customer specific demands and applications. Product approvals within the range include ATEX and IECEX for hazardous area products and VDS and NF for safe area on selected lines.
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The company focus on quality and safety is driven through advanced manufacturing techniques that typically exceed industry code requirements and are supported with exhaustive quality assurance and control systems. TPG provides the complete lifecycle approach to thermal management systems and can offer the following services to its customers: • Thermal design engineering and customer support • Complete mechanical engineering package for heat exchanger and peripheral items • Sourcing and control of subcontractors • Manufacture of the units • Project management • Site support services
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Member news Amarinth delivers pumps to ADCO Al Dabb’iya facility
Leading designer and manufacturer of centrifugal pumps Amarinth has successfully delivered an order of API 610 VS4 pumps to Metito for installation in a waste water treatment plant at the ADCO Al Dabb’iya Facilities Development Phase III project, Abu Dhabi.
Booth Welsh hosts digitalisation workshop
Process control, electrical control and instrumentation, and design system solutions service provider Booth Welsh recently held a digitalisation workshop at its head office in Irvine, Scotland highlighting the benefits and business opportunities which technological advances offer.
Amarinth secured its first order of pumps from Metito, a leading provider of intelligent water management solutions, earlier this year. The API 610 VS4 vertical pumps will be installed in an effluent treatment package at the project site, which is located 40km southwest of Abu Dhabi.
We have provided pumping solutions to many ADCO projects for various EPCs and package providers and are delighted to have fulfilled this first order from Metito, which further extends and strengthens our offering across both process applications and water treatment into the oil and gas industry. Oliver Brigginshaw Managing Director, Amarinth
The pumps were manufactured in super duplex stainless steel to withstand corrosive fluid. Amarinth drew on its extensive knowledge of ADCO specifications and requirements to deliver a costeffective design in under 20 weeks for this waste water application.
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For more information: www.amarinth.com
Boulting Group certified to work on offshore wind farms Seven employees from engineering solutions provider Boulting Group have successfully completed a GWO accredited offshore wind health and safety survival training course. Completion of the globally recognised training will allow Boulting Group to expand its operations within the offshore renewable energy sector.
One engineer, five electricians and one supervisor from Boulting Group undertook the intensive sevenday training course, in which they covered modules in sea survival, first aid, manual handling, fire awareness and working at height and rescue. ‘As part of our ongoing offshore wind projects, the team are required to stay in offshore accommodation,’ explained Derek Ritchie, General Manager for Scotland at Boulting Group. The session, run in partnership with the Centre of Engineering Education Development (CeeD), focused on Industry 4.0 (also known as the Fourth Industrial Revolution) and how digitalisation can benefit the energy industries. Over 60 delegates, from a variety of backgrounds, heard from other leading innovators such as ABB and the Advanced Forming Research Centre and the work they are doing. Commenting on the event, Booth Welsh Managing Director Martin Welsh said, ‘We are delighted with the success of the session and the collaborative buzz in the room. We will be hosting this event with CeeD in other locations in early 2018.’
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For more information: www.boothwelsh.co.uk
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‘This accommodation is provided by a jack-up vessel, moored adjacent to the substation platform. The team are required to live in the turbulent offshore conditions, working nightshifts on a two week on and one week off rotation. ‘Following this training, we are able to provide our wide range of services to both the offshore and onshore portions of the project. For our customers, using the same provider across the board means they will have a smoother, simpler experience throughout construction.’ For more information about the offshore wind health and safety training, or Boulting Group’s work within the renewables sector visit the website below.
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For more information: www.boulting.co.uk
Member news
Intertec Instrumentation triples size of Houston facility
Outdoor enclosure specialist Intertec Instrumentation has invested US$1m in a new facility in Houston, tripling the size of its US-based manufacturing plant and offices. The expansion allows Intertec to handle larger plant buildings, including walk-in shelters for housing field-based process control and instrumentation equipment in the oil and gas industry. The new facility, which is located next to its previous facility in northwest Houston, provides 22,000 square feet of covered space, plus a further 20,000 square feet of outdoor space for assembly and storage,. Up to now, Intertec has manufactured outdoor enclosures, cabinets and shelters at its main factories in Canada and Germany. The company’s Houston facility provided a regional system building service for 15 years, allowing it to supply turnkey instrumentation enclosure systems to clients. However, the old Houston factory did not have the space to construct or integrate larger-scale plant buildings, which were supplied mainly from the company’s North American headquarters in Sarnia, Canada.
Intertec’s expanded facility means that outdoor shelters can now be constructed and assembled directly in the US. It also reduces the cost and time involved for clients to travel for design, inspection and acceptance testing purposes of turnkey instrumentation shelter projects.
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For more information: www.intertec.info
Mech-Tool Engineering appoints new Managing Director North-east manufacturer and global supplier of fire, blast and heat hazard solutions, Mech-Tool Engineering Limited (MTE), has appointed Anthony G Jones as its new Managing Director.
Anthony steps into the role at the Darlington based company having been with the firm since 2015. He joined Mech-Tool as Business Development Director for Fire and Blast. In 2017 he was promoted to Divisional Director for Modular Solutions and has been instrumental in improving business operations, project delivery and securing additional business for MTE. Anthony will now be responsible for leading the UK business and its Korean subsidiary.
Anthony has considerable experience in the oil and gas, process and energy sectors and has held executive director and senior management roles for a number of Europe’s leading engineering companies, undertaking major projects and business throughout the UK, Norway, South Korea, Kazakhstan, India, South East Asia and the Middle East. Commenting on his new role, Anthony said, ‘I am extremely passionate about the business itself as well as the future progression of our staff. We have a great team, including world class designers and engineers and the company will continue to deliver weight saving and cost effective products across the globe which meet, and in many cases exceed the highest safety standards.’
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For more information: www.mechtool.co.uk
Sonardyne lands Deep BV order
Deep BV, a Dutch survey company specialising in hydrography, marine geophysics and oceanography, has purchased underwater acoustic technology supplied by Sonardyne International to support its inshore, harbour, coastal and offshore activities.
Deep BV immediately put their new Sonardyne Mini Ranger 2 USBL tracking system to work in a project to survey an area for unexploded ordnance
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Member news
Two Mini-Ranger 2 Ultra-Short BaseLine (USBL) tracking systems and WSM 6+ mini transponders were delivered to Deep BV’s headquarters in Amsterdam within days of the order being placed and put straight to work during an operation to search for unexploded ordnance (UXO). Mini-Ranger 2 boasts a number of features that makes it ideal for underwater operations such as UXO surveys which require high accuracy positioning but without the cost and complexity associated with a deepwater USBL solution. It can simultaneously track 10 targets at very fast update rates, it is quick to install on small vessels and has a tracking range of 995 metres, extendable to 4,000 metres. Klaas Visser, Chief Technology Expert at Deep BV said, ‘We’ve been a user of Sonardyne’s pre-generation Scout USBL system for several years and are pleased with the results it’s delivered. However, now was the right time to replace these systems and upgrade to Sonardyne’s 6G product family with all of its attractive features and performance gains.’
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For more information: www.sonardyne.com
Tekmar Energy secures API 17L independent certification
Tekmar Energy has recently achieved independent approval for the design and manufacture of its PU bend restrictors for compliance to the American Petroleum Institute’s (API) 17L1 and 17L2 specification for flexible pipe ancillary equipment. The company successfully underwent a two-year certification programme with Lloyds Register. The process included: long-term material qualification, quality and manufacturing audits, review of the design methodology and witness of the verification testing to ensure Tekmar’s practices meet with the stringent requirements of API17L.
The majority of the product testing was conducted in Tekmar’s new test facility in Newton Aycliffe, County Durham, utilising the recent capital investment of a 750kNm bend test rig that was installed earlier this year. Charlie Sullivan, Head of Subsea Sales & Strategy at Tekmar said, ‘We are excited to receive this independent qualification, which will allow us to provide an extended range of competitive products to both new, and existing, customers in challenging market conditions.’
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For more information: www.tekmar.co.uk
Trelleborg completes Gulf of Mexico fire safety projects
Sweden-based global engineering group Trelleborg has completed its first two projects in Mexico focused on improving safety for offshore assets in the Gulf of Mexico.
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The first project was for the manufacture and installation of 530 metres of Elastopipe™ for the Nohoch A-01 platform and the second for the manufacture and installation of Elastopipe™ on the Abkatun Alpha compression platform. Both projects were completed on time, within budget and without any safety incidents. Hans Leo Hals, Managing Director, Trelleborg Offshore Norway, said, ‘By installing Elastopipe™ on these platforms, we were able to create peace of mind for onboard personnel with the added bonus of protecting platform assets. Our Pemex NRF 127 approved Elastopipe™ is designed to meet the developing safety needs and requirements of Mexico’s oil and gas industry.’ Elastopipe™ is a corrosion-free, explosion, impact and jet fire resistant flexible piping system. Its typical applications are deluge and sprinkler systems, utility and drain water systems, nitrogen distribution systems and chemicals and hydrocarbon transportation.
New EIC members Social media Member round news up
The system is lightweight, durable and offers a 30-year minimum maintenance life, while its corrosionfree performance means systemtesting frequency can be reduced to statutory requirements.
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For more information: www.trelleborg.com/offshore
Wozair completes first major Total project
Wozair has delivered a package air conditioner unit for a Total platform, its first major project for the French supermajor.
Trelleborg Offshore
The unit was delivered to Abu Dhabi and built to exact specifications and requirements supplied by Total to withstand the extreme conditions that offshore platforms endure in the Middle East, including high temperature and humidity in a salt-laden atmosphere. The unit is designed to withstand +50°C and 100% humidity. Chris Cherrington, Commercial Director at Wozair, said, ‘Our company was chosen to complete this project thanks to our reputation for delivering high-quality units that are designed to last, something we have been doing within this region for the past 20 plus years. We think this latest project further cements that we’re willing to go the extra mile to achieve our client’s goals and produce something that works every time. Even with the challenging conditions that our unit will face, we’re more than confident that it can do the job – high-integrity HVAC is what we do.’
Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – Energy Industries Council (EIC). Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.
The EIC @TheEICEnergy Are you looking to enter or expand into the Brazilian oil and gas market? Find out more about our events in Brazil here bit.ly/2oWdkeJ
The EIC @TheEICEnergy Our latest EIC Country Report is a must read for companies considering entering the Indonesian market bit.ly/2oOCR7z
Energy Industries Council (EIC) We’re delighted to welcome two new directors to our board, Duncan Reed from Dresser-Rand – A Siemens Business and BMT Group Limited’s Louise Ledgard
As a privately owned international HVAC equipment manufacturer, Wozair specialises in the design, manufacture and installation of a variety of HVAC products, including heavy-duty heating, ventilating and air conditioning products.
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For more information: www.wozair.com
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January 2018
Forthcoming events 16 January Management Course
EICDataStream Overview EIC Kuala Lumpur
17 January Corporate Entertainment
2018 New Year Breakfast EIC Kuala Lumpur
17 & 31 January Management Course
EICDataStream training Online
18 January Industry Overview
Fundamentals of Oil and Gas
February 2018
EIC London
1 February Export Showcase
Opportunities in Kazakhstan and Azerbaijan Aberdeen
7 February Industry Overview
Fundamentals of Subsea EIC London
8 February Industry Overview
Fundamentals of FPSOs EIC London
8 February Business Presentation
Opportunities with Petrofac EIC Houston
12 February Overseas Exhibition
Egypt Petroleum Show (EGYPS) New Cairo Exhibition Centre
Get in touch Share your news and views...
Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600
23 January Management Course
Contracts: Why they matter Addleshaw Goddard, London
23 January Business Presentation
Business Lunch with Wood Plc Park Rotana, Abu Dhabi
26 January Corporate Entertainment
8th Annual Sporting Clays & BBQ American Shooting Centers, Houston
31 January Export Showcase
Opportunities in Kazakhstan and Azerbaijan EIC London
13 February Management Course
EICDataStream Overview EIC Kuala Lumpur
14 February HSE Training
The ATEX Directives SGS Baseefa, Buxton
14 February Management Course
EICDataStream training Online
26 February Overseas Delegation
Overseas Delegation to Mexico Mexico City
28 February Management Course
EICDataStream training Online
For more information and to book visit www.the-eic.com
March/April 2018
Forthcoming events
1 March Corporate Entertainment
EIC Middle East Golf Tournament The Els Club, Dubai
4 March Overseas Delegation
Overseas Delegation to Saudi Arabia 7 March Industry Overview
Fundamentals of FPSOs EIC Kuala Lumpur
8 March Industry Overview
Fundamentals of Subsea EIC Kuala Lumpur
13 March Management Course
EICDataStream Overview EIC Kuala Lumpur
14 March Management Course
EICDataStream training Online
ONS Sign up for the EICOnline newsletter
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15 March HSE Training
Pressure Equipment Directive EIC London
19 March Overseas Delegation
Overseas Delegation to Brazil Rio de Janeiro
28 March Management Course
EICDataStream training Online
10 April Management Course
EICDataStream Overview EIC Kuala Lumpur
11 April Management Course
EICDataStream training Online
17 April EIC Connect
EIC Connect Oil, Gas & Beyond Dusit Thani, Abu Dhabi
STAVANGER 20 NORWAY 18
27 – 30 AUGUST Contact lucia.durante@the-eic.com
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EIC
NATIONAL DINNER 2018
11 OC TOBER
Your venue 8 Northumberland Avenue is one of central London’s hidden gems. It was originally the residence for the Percy family in the 1600s and has been immaculately restored, boasting high ceilings, impressive chandeliers, and ornate detailing. Accommodation for guests is also available at the Grand Hotel at 8 Northumberland Avenue.
T H E M O S T E XC LU S I V E EVENT IN THE UK ENERGY I N D U S T R Y ’ S S U P P LY C H A I N CALENDAR Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.
EIC Company of the Year Servelec Controls won the prestigious Innovation and EIC Company of the Year Awards at the EIC National Awards Dinner in 2017. Andrew Mills (centre left) and Chris Stones (centre right) collected the awards from comedian Jimmy Carr (left) and EIC President Chris Haynes (right).
Take advantage of this exclusive platform to host and entertain your own VIP guests at an unforgettable evening. Cost Table of twelve: £4,200+VAT Individual place: £365+VAT
Awards ceremony
Most of the major Tier 1 and Tier 2 EPC contractors, OEMs, operators and developers are represented within the audience, making this a unique opportunity to promote your brand. Please contact:
The EIC Awards Ceremony will recognise individuals and companies which offer a product or service with a positive and significant effect on the UK energy supply chain.
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T: +44 (0)1642 379 973 E: nationalevents@the-eic.com Jamie Lowes, Event Sales Executive Get in touch Share your news and views... www.the-eic.com/nationaldinner +44 (0)1642 379 976 Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600 jamie.lowes@the-eic.com
© EDF Energy 2017
Sponsorship opportunities
Details of award categories and how to enter will be announced soon.
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Overseas events The EIC is proud to be organising and managing the UK Pavilion at these European exhibitions taking place in 2018. We would like to invite you to exhibit in our pavilion. World Nuclear Exhibition
26-28 June 2018 Paris, France An event for every company in the nuclear sector, WNE covers all aspects of the nuclear industry from new build and construction, through operations and maintenance to decommissioning. The event is the perfect showcase for new technology, expertise and solutions, bringing together future customers and major contractors. With the full support of the French nuclear industry and including the major international reactor vendors, WNE represents a key event for companies looking to win work in the UK or international nuclear market. It is also a great opportunity to connect with companies in the French nuclear industry, including key players in the EDF/AREVA supply chain.
ONS
27-30 August 2018 Stavanger, Norway Norway currently has some very significant offshore oil and gas developments underway, which are due to come into production during 2018. Major CAPEX projects due on stream in 2018 include the Aasta Hansteen gas field and Marin Linge heavy oil field. Overall, CAPEX on developments due on stream between now and 2024 will be well in excess of US$60 billion and will see multibillion dollar investments on projects including the second phase of Johan Sverdrup, the Snorre 2040 project and the Johan Castberg field. These projects, as well as the major discoveries recently made in the Barents Sea, make for an attractive market for the UK supply chain now and well into the future.
WindEnergy Hamburg
25-28 September 2018 Hamburg, Germany Exhibit in the UK Pavilion at WindEnergy Hamburg, the world’s leading expo for wind energy. Germany is a pioneering country in the implementation of renewable energies and is the perfect platform to showcase your company’s products and services, network with industry professionals and develop new relationships.
Valve World
27-29 November 2018 Dusseldorf, Germany Valve World is the world’s leading exhibition for fittings and valves. The biennial show is now in it’s fourth edition and is the most important show for valve technology, piping and flow control professionals. Exhibit in the UK Pavilion and generate new sales leads, increase brand awareness within the European oil and gas market, meet with and sell to existing and new clients and launch new products and services. To attend please contact Lucia Durante, Overseas Events Administrator Tel +44 (0)20 7091 8600 Email lucia.durante@the-eic.com
Gastech
17-20 September 2018 Barcelona, Spain Gastech is the world’s largest global gas and LNG event, providing an important meeting place for all the key buyers and sellers in the industry. Gastech has been at the forefront of the international gas and LNG market for four decades. It enables commercial experts and technical innovators to discover business-changing insights, explore innovative solutions and build profitable business connections. Sign Get inup touch for the EICOnline newsletter
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EIC ABERDEEN LOOKING FOR AFFORDABLE AND FLEXIBLE OFFICE SPACE? The EIC has prestigious offices in the West End of Aberdeen available for lease/lease-share. We are delighted to offer three offices to lease. The tenant offices are fully equipped with all the amenities you will need. Whether you are looking to downsize or wish to avoid the complexities of setting up a new office, the EIC can provide the perfect solution if you are looking for a base in Aberdeen.
Benefits • Convenient city centre location within easy reach of Altens, Bridge of Don, Dyce and Westhill • Fully furnished, light and airy offices with use of additional conference and meeting space • Free fast wi-fi and reception services • Access to the regional team for support • Free parking for tenants and use of our conference room and kitchen facilities
Prices and offers Prices start from £395 for 1 person office, £695 for 2 person office. 10% discount for EIC member companies. For a limited time only, the EIC is offering the first month free of charge when signing a 12 month lease. Only need the office for 2-3 days per week? We can offer flexible lease-share options. Contact the Aberdeen team to discuss your needs and availability further.
72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 628 253 | aberdeen@the-eic.com | www.the-eic.com
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EIC and UK Export Finance There’s a world of opportunities out there for the UK’s world-leading energy businesses, and a growing number are realising them with support from UK Export Finance (UKEF). UKEF is the UK’s export credit agency, which exists to ensure no viable export fails for lack of finance or insurance. It helps UK companies: • Win export contracts by providing attractive financing terms to their buyers • Fulfil contracts by supporting working capital loans and contract bonds • Get paid by insuring against buyer default In the last financial year alone, UKEF has helped energy exporters grow by £758m worth of support and a wealth of free, impartial guidance around eligibility for specialist trade finance.
Full support
The right export support can make the difference between an export success and failure. Working as an integral part of the support on offer from the Department for International Trade, UKEF can support exports for any size of company, across all sectors. UKEF’s support complements rather than competes with the private sector – it works with 70 private credit insurers and lenders to deliver support. UKEF’s export finance managers, based across the UK, provide face-to-face support for companies looking to compete for business abroad. Regardless of size or sector, UKEF can help your business export to over 200 markets.
Why not get in touch and realise the world of opportunity awaiting you? For more information, visit www.gov.uk/uk-export-finance or email customer.service@ukexportfinance.gov.uk
Case study: Empowering exporters
EIC member JDR Cables, based in Littleport, is a global leader in the renewables market and a world-class manufacturer of subsea power cables and production umbilicals. Many of its contracts last for several years, and it frequently bids against large international industrials. A standard feature of these sorts of contracts is the contract bond – a warranty required by the buyer that the contractor will fulfil its side of the contract, and if not that it will refund any payments. These bonds are issued by the contractor’s bank, usually in return for a deposit from the contractor. With this requirement, a company with multiple export contracts on the go can find itself tying up significant amounts of cash in order to provide the bonds. For a large multinational company, this might be possible, but for a smaller player like JDR, tying up working capital significantly restricts its ability to take on business.
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That is why JDR works with UKEF. With a UKEF government-backed guarantee of up to 80% of the value of the bond, banks can issue contract bonds without the need to tie up significant amounts of the company’s working capital, meaning that JDR can invest this cash in fulfilling its contracts and growing its business. Visit www.jdrcables.com Find out more UKEFnewsletter services and how your firm can benefit from them by visiting Sign up for theabout EICOnline www.gov.uk/government/organisations/uk-export-finance Visit www.the-eic.com/Forms/NewsletterSignup
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TRUSTED TRAINING FROM ENERGY EXPERTS Plan ahead, reduce your training costs Our discount options allow you to expand your skills and knowledge, not your company’s training budget. EIC Training courses are run by professionals with years of experience working in the industry. So whether you’re new to energy or keen to build on what you know, we’ll have the right course for you and your budget.
EARLY BIRD BOOKINGS Book up to 6 weeks before the course save 10%
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Spotlight on technology Aiken Group
www.aikengroup.com
WELHAB
Aiken Group is a leading and innovative supplier of integrated, out-sourced and solutions-based engineering and specialist services principally accommodation; engineering, construction and modification and technology and project management.
Easy to move and install
Aiken Group provides services across a wide range of disciplines and applications covering fixed and floating installations.
The company also offers an alternative option that is more portable and easier to install but still retains the main safety features of the DNV certified system. All components used on both versions are sourced via approved vendors and carry the appropriate qualifications to ensure ATEX/ICEG compliance and certification.
Hot works
Turnkey solutions
Aiken Group’s Welhab division focuses on specialist hot works habitats and its top of the range version has been DNV GL 2.7.2 certified. The product represents a new solution for the realisation of a better working environment which has flexibility and durability at its core. Sign Get inup touch for the EICOnline newsletter
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The hot works habitats from Welhab feature leading edge equipment backed and delivered by highly skilled personnel. They can provide turnkey solutions from offshore survey through the bespoke design process to fast, simple installation and thorough testing to facilitate a safe working location within hazardous areas. Follow @TheEICEnergy
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EIC Survive and VEGA Controls Process expertise and proven technology for safety critical applications
How is VEGA Controls thriving?
VEGA is working with its customers to provide in-house technology solutions that meets their requirements, improves safety and increases production. Sharing knowledge across its units and acting as one VEGA Group rather than separate entities has also had major commercial benefits for the company.
The challenge
A major Aberdeen-based oil company, had an ongoing problem on one of their platforms with a glycol contactor level trip transmitter which was subject to intermittent, spurious and erroneous measurements, causing major operational and safety issues. The company was using guided radar measurement technology, and although the equipment was re-mapped, this didn’t fix the problem. They then decided to tackle this issue by replacing them with alternative devices of the same technology, but this also failed to solve the problem. Further alterations and changes to settings were made but they were, again, unsuccessful.
The solution
An engineer from the company attended an oil and gas technology seminar hosted by VEGA in Germany, at which there was a demonstration of the very same guided wave radar measurement technology they were trying to use.
At the seminar VEGA explained why it would not be able to do what they wanted, which was to measure and detect the interface between hydrocarbons and glycol. A series of subsequent discussion and demonstrations led to them finally understanding why the guided radar equipment wasn’t working, something no other company had been able to explain. VEGA proposed an alternative solution, based on nucleonic instrumentation, that could be deployed to solve the problem and providing certainty of operation when required. Called PROTRAC, it is a patented technology developed within the VEGA group after the acquisition of a US-based company many years ago. The VEGA engineering team promptly responded to the oil company’s requirements and proceeded with detailed design to facilitate the installation and commissioning of the equipment offshore. The device proved successful and reliable in the application. Besides the ability to provide a direct process measurement control, VEGA’s PROTRAC solution provides important benefits. By providing increased safety and reliability, it avoids false trips, which ultimately boosts productivity by reducing costly outages. The equipment’s low installation and ownership costs also strengthen its economic and operational benefits.
Get inan touch your news views... This is editedShare version of the caseand study. Download the full Survive and Thrive Insight Report at 8600 Email newsdesk@the-eic.com • Phone +44 (0)20 7091 www.the-eic.com/Publications/MarketIntelligenceReports
Story type: #collaboration #technology Benefits: • Improved productivity and safety due to reliable performance and eliminated safety trips Key findings: For the industry: • Demonstrating close and detailed understanding of, and collaborating with, customers to tackle their challenges is essential • A broad, diversified and protected technology portfolio is a key differentiator • Acting as one group instead of having various autonomous units brings commercial benefits For the government: • Provide technical apprenticeships and training for employees in all regions of the UK Government support? VEGA Controls has received training grants for apprenticeships and employee training VEGA Controls at a glance Key products and services: process control products Main sector(s) served: oil and gas, chemicals, food, nuclear and pharmaceuticals Headquarters: Burgess Hill, UK (parent company is based in Germany) Years established: 35 years Number of employees: 40 in the UK, 1,100 globally Revenue: £11m (UK unit) US$350m (group)
We pride ourselves on supplying the right solution, combining the full range of instrument technologies strengthened by shared application knowledge. Gary Baker, Projects Manager
EIC Survive and thrive
Weir Engineering Services (WES) Overwhelming customers with service optimisation and a total care mindset
Story type: #optimisation Benefits: • Value: significant year on year operational efficiencies for EDF • Safety: two years without lost time accidents • Long-term partnership for WES with valued customer
How is WES thriving?
Facing a challenging business environment, the company decided to optimise the services offered to its key customer. This led to WES becoming a trusted long-term engineering partner for valves and pumps.
The challenge
Like the oil and gas business, the power industry in the UK has also experienced a downturn. Many conventional power stations have been closed in the last three-five years, which has greatly affected the supply chain. WES was no exception, and the company lost over 50% of its thermal power business due to closures. Nuclear plants were also impacted by low retail power prices, one of the results being that plant owners have streamlined the scope of work undertaken by O&M providers from what was undertaken in previous years. This posed a challenge for WES, as the company had to provide a critical proposition at sustainable value to win and retain contracts.
The solution
The contract is of major significance as it enabled WES to more than double turnover with EDF over contract lifetime. Demonstrating value to EDF and maintaining them as a customer was a strategic priority. When WES was awarded the contract by EDF originally its service was very different – it was ad-hoc, remote, without much information flow and integration with on-site teams. Over the years, however, the company optimised by enhancing communication, increasing the speed of its response to EDF’s needs and becoming ‘embedded’ in their plans and facilities. WES started to become more involved with the customer in various ways. The company participated in the planning stage for outages, provided dedicated site managers that attended daily briefing meetings and were an integrated part of the EDF team on a day to day basis. Additionally, WES built up its reputation as a valve, pump and engineering specialist, providing advice on ways to add value and deliver efficiencies while reducing risk. WES’ approach was that of a total care ethos, going beyond the wording of the contract.
Key findings: For the industry: • Service and O&M optimisation increases value proposition for clients just as much as new project optimisation • Exceptional service mentality can go beyond contract wording, delighting clients and enabling value and trust to grow For the government: • There appears to be a large gap in government support relating to service specialists and related optimisation Government support? WES would welcome government support and further consultation on growing the UK energy sector supply chain WES at a glance Key products and services: valve and pump services include: outages, field services, refurbishment and upgrades Main sector(s) served: power, oil and gas, marine and general Headquarters: Bellshill, UK Year established: 1871 Number of employees: 628 Revenue: ~£70m
Continuous improvement and innovation are key to surviving One of WES’ main customers is EDF, and thriving. Power station WES is committed to further which owns the Heysham 2 nuclear strengthening the service offering power station. WES has an O&M outages depend on sound available to EDF as well as evolving framework agreement with EDF which planning, so it’s vital that its capabilities to meet the needs of a has been in place for nine-years our team integrate, deliver changing UK market. covering all of EDF’s AGR fleet. efficiencies, and contribute to Sign theversion EICOnline newsletter This isup an for edited of the case study. a safe environment. Download the full Survive and Thrive Insight Report at Visit www.the-eic.com/Forms/NewsletterSignup Follow @TheEICEnergy Join the EIC LinkedIn Group www.the-eic.com/Publications/MarketIntelligenceReports
Kevin McGurk, Commercial Manager
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Middle East news Regional update
First things first and may I, on behalf of everybody at the EIC Dubai office, wish all our readers a happy and prosperous new year. 2018 certainly promises Terry W illis to be an interesting year where expectations are high that the all important oil price will remain stable at a workable level. January provides us with two highlights. Amisha Patel, our Head of Power, Nuclear & Renewables (PNR) will be making her Middle East debut when she travels out to attend the World Future Energy Summit which takes place from the 15th to the 18th. In addition, our membership will have the chance to hear from her as well as get an update on all the regional developments within the PNR sector. We will also take the opportunity to engage with some of the key stakeholders like DEWA, ADWEA and ENEC. On the 23 we host Wood Plc. They will be updating the membership on how the newly integrated organisation is doing, the projects they are working on plus which projects they have on their radar for the immediate future. Perhaps most importantly, they’ll let delegates know what steps they have to take to do business with them. rd
ADIPEC 2017 proved to be the most successful yet. With a footfall of over 100,000 it is now firmly established as the number one oil and gas show. For us, it was the largest both in terms of space and exhibitors. Our thanks go to Shell for sponsoring the lounge and Wood for supporting the reception where we had Baroness Fairhead, Minister of State for Trade, delivering a key note speech. Next month will see us in Cairo for the Egypt Petroleum Show after which we will once again be on the golf course at the Els Club, Dubai for our annual tournament which this year is being sponsored by LoneStar Triplefast. One other date for the diary is 17 April, the day designated for our local EIC Connect event which promises to be better than ever with even more engagement from ADNOC. Looking further ahead, we are pleased to advise that a decision has been taken to host a UK pavilion at next year’s Iran Oil Show. This follows on from a general opinion that the measures being taken by the US government will not have any impact on trading relations with the remaining parties who signed the trade agreement following the lifting of sanctions. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Get in touch Share your news and views...
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The UK Pavilion at ADIPEC 2017
Regional news
ADNOC confirms US$109bn of CAPEX over next 5 years State-owned Abu Dhabi National Oil Company (ADNOC) will spend US$109bn on upstream and downstream activities over the next five years. The capital expenditure programme will focus on exploring and appraising potential individual gas deposits in tight reservoirs, developing untapped unconventional resources and expanding sour gas production. It will also see the company expand its existing refining and petrochemicals units.
Saudi Aramco awards major offshore contracts
Saudi Aramco has signed agreements with several US and UAE contractors for offshore oil and gas megaprojects. Jacobs Engineering has been selected to perform engineering and project management services for the offshore Zuluf field development. Abu Dhabi firm NPCC won the engineering, procurement, construction and installation (EPCI) contract for a newphase programme at the giant offshore Safaniyah field. McDermott Middle East picked up the EPCI contract for 10 new slipover platforms at the South Safaniyah field, in order to enhance production of crude oil.
Forthcoming events
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Asia Pacific news Regional update In December we partnered with the British-Malaysia Chamber of Commerce (BMCC) to hold an event focusing on the subject of digitalisation.
Regional news
Azman
Reliance secures financing for Bangladesh LNG and power project
Nasir
Taking place at our Kuala Lumpur offices, we were pleased to welcome speakers from Lloyds Register, Petrofac, Serba Dinamik and Wood, as well as 50 delegates.
The Asian Development Bank has approved US$583m financing for the development of the Reliance Bangladesh liquefied natural gas (LNG) and power project. The first phase of the project will see construction of a 750MW combined cycle gasfired power plant and an LNG terminal with a total investment of US$1bn. While the power plant will be built in Meghnaghat, near Dhaka, the LNG terminal will built on Kutubdia Island.
We’ll be working with the BMCC again to host an event focusing on decommissioning on 7 January 2018, also to be held at our office. We’ll be hearing from Chevron Thailand, Lloyds Register, Petronas and Wood Mackenzie, with special guests the British High Commissioner to Malaysia, Her Excellency Vicky Threadle, and the Vice President of PETRONAS, Mr Zamri Yusof. With such a line up we’re expecting delegate places to fill up quickly, so book now.
PETRONAS to award new exploration blocks
Malaysia’s PETRONAS is aiming to award up to nine blocks from acreage that was offered in licensing rounds between 2015 and 2017. This year, the operator made four areas off Sabah available for competitive bids – IB 10-01, OB 7-01, OB 7-02 and OB 15-00.
PETRONAS
We shall be planning several more events with our partners in Kuala Lumpur in 2018 as we feel this approach will bring our members higher quality events and speakers and are currently in talks with the Malaysian Petroleum Resources Corporation (MPRC) and the Malaysian Oil & Gas Services Council (MOGSC), among others. Building on the success of the inaugural EIC Oil & Gas Indonesia in 2017, we are now carrying out planning activities for two major events in 2018 – namely EIC Connect Vietnam in May/June 2018 and EIC Connect Malaysia in November/December 2018. We hope to be able to secure partnerships with the national oil companies for Vietnam and Malaysia for these events. Wishing all our members the very best for 2018. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter
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Fresh exploration set for South China Sea
International companies are set to embark on a fresh wave of exploration drilling in the South China Sea as part of their commitments under production sharing contracts with China National Offshore Oil Corporation (CNOOC). Companies involved in the well explorations include South Korea’s SK Innovation, Australia’s Roc Oil, Kuwait Foreign Petroleum Exploration Company and Canada’s Husky Energy.
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North and Central America news Regional update Happy 2018! The North and Central America office wishes you all the best for the new year. We look forward to providing excellence and value to our members throughout the year.
Regional news
Pemex discovers 1.5Bboe onshore Veracruz Amand
a Duho
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The outlook for oil and gas looks optimistic as we move into 2018. Oil prices have stabilised at more than US$60 per barrel (a healthy breakeven price in the lower for longer environment) since the end of 2017, and should provide enough of a boost to push a number of projects toward final investment decisions. Installation costs for industrial-scale wind and solar projects continue to fall and progress in the US offshore wind area will continue to take shape. The focus throughout the year will be on improving reliability through grid enhancements and battery storage solutions so that cheaper and cleaner electricity is readily available even in the most difficult of circumstances. We start the year with our 8th Annual Sporting Clays Tournament and BBQ at the American Shooting Center, taking place at the end of the month. This year, we decided to include a 2018 Regional Energy Outlook presentation by our Regional Analyst Jake Gillan. He will provide delegates with a current outlook for the regional energy sector, project updates and potential business opportunities in 2018. This event will bring together about 30 of our members and non-members for an afternoon of networking and friendly competition. We could not deliver this event without our sponsor Fulkrum Technical Resources. We were so delighted with the overwhelmingly positive response to our inaugural EIC Connect event in the US that we have decided to launch EIC Connect Oil & Gas USA 2018. We will look to host the event in September 2018, please make a note in your diaries to avoid missing this invaluable opportunity. In 2018, we will look to focus more on innovation and drive members to showcase their proven technologies at the exhibition. Please contact houston@the-eic.com if you are interested in exhibiting at EIC Connect Oil & Gas USA 2018. If you need assistance in the region, or for information about our EICLaunchPad services, and upcoming events and training, please contact Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...
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Mexico’s state-owned energy company Pemex has announced the discovery of 1.5bn barrels of oil equivalent just 72km south of the port of Veracruz, its most significant find in 15 years. The find was made at its onshore Ixachi-1 well in the municipality of Cosamaloapan, and is believed to contain 350MMboe of recoverable resources. Located near existing production wells and the national pipeline system, the field has strategic advantages and should be able to enter into production quickly.
New York open for offshore wind business
New York State Energy Research and Development Authority has announced that New York is finalising plans to issue a first solicitation for offshore wind in late 2018. New York state has requested that the US Bureau of Ocean Energy Management identifies and leases at least four new 800MW areas south of Long Island along the Atlantic coast. Another lease auction is expected to take place in 2019.
Forthcoming Events
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South America news Regional update With general elections set for October, 2018 looks like being an exciting year in Brazil. With signs of the country’s oil and gas industry recovering, energy will be high on the agenda of all the candidates.
Clariss
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Rio Oil & Gas 2018 24-27 September 2018 South America’s largest trade show for the energy industry, Rio Oil & Gas is the meeting place for the Brazilian supply chain. The event attracts operators, EPC contractors, subsea players, shipyards and major equipment manufacturers.
The scheduled bidding rounds (which include the important pre-salt areas), the end of Petrobras’ monopoly and a new flexible approach to local content have been decisive in driving the growth forecasts for 2018. Optimism is high and according to the Brazilian Petroleum, Gas and Biofuels Institute more than 500,000 new jobs are expected to be created by 2020. If you’re planning a visit to Brazil in 2018, the EIC is involved in two major events: UK Energy in Brazil 20 March 2018 The EIC has been invited by the Department for International Trade to lead a trade delegation to Brazil focused on offshore construction, maintenance and repair. The delegation will be organised as part of the UK Energy in Brazil event, an initiative dedicated to promoting British expertise in the energy sector. This is an incredible opportunity for your company to explore the market and make contact with key operators and contractors active in Brazil. The EIC will also moderate a workshop during the event.
Regional news
Two bidding rounds in 2018 The Brazilian government has approved two bidding rounds for exploration areas in the country in 2018: the 15th round for E&P concessions and the 4th round for production sharing contracts in the pre-salt area. The 15th round, scheduled for 29 March, will offer 49 offshore blocks in the Campos, Santos, Ceará, Sergipe-Alagoas and Potiguar Basins, as well as 21 onshore blocks in the Parnaíba and Paraná Basins. The pre-salt round will take place on 7 June and will offer five blocks in the Campos and Santos Basins, with signature bonuses estimated at US$1.58bn.
The UK Pavilion at Rio Oil & Gas
The EIC is proud to be organising and managing the UK pavilion at the exhibition, which is strategically placed next to Petrobras’ stand, and located in one of the busiest halls. British SMEs joining the UK pavilion can apply for TAP funding (conditions apply, consult us for details). If you need any assistance or advice in the region or for more information about upcoming events, please contact Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com
Brazil and Russia sign nuclear MoU Brazil’s state-run nuclear power company Eletronuclear and Russia’s Rosatom have signed a memorandum of understanding (MoU) for increased co-operation in the segment. Targeted at the construction of new facilities in the country, the MoU also includes lifecycle support, fuel management, life extension and training. Rosatom is reportedly one of various international players interested in the completion of Angra 3, Brazil’s only nuclear power project, with a capacity of 1.4GW. The facility will be the country’s third nuclear power plant on completion.
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