Inside Energy July 2016 by Energy Industries Council

Inside Monthly news for EIC members

One-to-one

Sector analysis

What does the future hold for the UK’s carbon capture and storage sector?

July 2016

An interview with Alderley’s Group Business Development Director Eric Maddock

Training services

Understanding Project Management – effective techniques to ensure successful projects www.the-eic.com

Sector analysis

What now for carbon capture and storage in the UK? Since the government’s £1 billion CCS demonstration competition was cancelled last November, the industry has been in a state of shock. The funding was to demonstrate CCS technology commercially on a power plant in the UK and, more importantly, develop infrastructure capable of reducing UK emissions by up to 27 million tonnes per annum by the early 2020s. The move by the Treasury to axe the competition was justified on cost grounds, with the prime minister stating that the government had decided CCS was not cost effective in its current form. The two major projects (the White Rose project in Yorkshire and the Peterhead project in Aberdeenshire) looking to bid in the process, now shelfed, were quick to citing the absence of crucial government support as the main reason to abandon the projects, at least for the near-term. The two projects had invested an estimated £80 million in front end engineering design and been engaged in the competition for over three and a half years. Now the Department of Energy and Climate Change (DECC) is committed to sharing knowledge from UK CCS projects as a successful strategy to engage industry in a second CCS competition.

So is CCS in the UK dead? A lack of trust in government policy is undoubtedly CCS’s biggest challenge in the UK now. Devoid of a clear pathway forward for the remaining projects, and with the prospect of CCS technology being awarded a contract for difference subsidy price guarantee still uncertain, to many it looks very much like a fledgling industry has been brought to a halt. Taking a more optimistic view, measures are currently being taken by the DECC to develop a way forward for CCS through engaging with stakeholders. The Energy Act 2016 initiated the establishment of a Parliamentary Advisory Group on CCS under the Leadership of Lord Oxburgh, the outcome of which is due in July. There are also a number of CCS projects that continue to progress in the UK despite recent difficult times for the industry.

Amish

a Pate

The government’s £4.2 million commitment to work with the Scottish government on the Caledonia CCS project at Grangemouth has been restated and in recent times the project’s developer, Summit Power Caledonia UK, has hired Arup to provide a range of support activities for the test run of CCS technology. This project aims to take emissions from the New Caledonia Power Plant and sequester them in a dedicated geological storage, of lower cretaceous sandstone, at a depth of approximately 1,5002,000m. The gas will be transported through a CO2 network between Grangemouth and the offshore storage site in the North Sea. The project involves the use of existing pipeline infrastructure re-purposed for CO2 transportation, and is set to begin operation in 2022, with a lifespan of 30 years. The Teesside Collective, which is formed by a cluster of industry leading companies, is working to roll out CCS in a group of energy intensive companies in the Tees Valley area. The DECC is working with the collective to explore how industrial CCS proposals can continue to develop, including recently awarding further development funding. The cancelled CCS competition was key to the Teesside Collective’s plans as it had been assumed that elements of the White Rose project would be available to it, significantly reducing its costs. The Teesside Collective is now looking to partner with similar projects along the east coast including the Grangemouth and Don Valley projects mentioned earlier. Further afield, the Norwegian government has commissioned feasibility reports for transporting CO2 emissions to offshore storage sites in the Norwegian Continental Shelf by ships. This has led the likes of Alan Whitehead MP, amongt others, to consider the potential to ship UK emissions to the Norwegian stores. Subject to decisions by the Norwegian government, this could provide an interesting route to market for early UK CO2 capture projects. While the cancellation of the CCS competition has brought two major projects to a halt other pioneers of CCS technology optimistically continue to make gradual progress with their projects. Meanwhile, the government has repeatedly announced that it still sees a future for CCS in the UK and work continues in Whitehall to see how this can move forward. Amisha Patel, Head of Power, Nuclear and Renewables amisha.patel@the-eic.com

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Inside this issue... As you can see we’ve completely refreshed our monthly newsletter and given it a new name. Inside Energy reflects both the diverse industries and the companies that the EIC represents. We’ve also been working on some new features which we’ll be introducing over the next few months. On page 4 you’ll find the first of our one-to-one member profiles. We caught up with Eric Maddock at Alderley who told us about his company’s plans for the future, its Hawk metering system and its successful expansion into the Asia Pacific market. The diary section of Inside Energy (page 12), which has our full schedule for July, August and September, has been revamped too, making it more user-friendly and streamlined. We have a major upcoming event taking place in July: a delegation to Argentina. This is an exciting time for the country as the new Macri administration looks to increase its refining capacity by encouraging foreign investment in its oil industry. For the full calendar of EIC events and training, please visit our website: www.the-eic.com While we’ve updated the newsletter, Inside Energy still has your favourite regular sections. This month’s sector analysis, opposite, written by our Head of Power, Nuclear and Renewables Amisha Patel, reviews the state of the UK carbon capture and storage sector. As the oil and gas market continues to face challenging conditions, many operators are now focusing more than ever on extending the life span of their assets. PETRONAS has invested heavily in this area and recently launched its Technical Integrity and Process Safety programme. Facilitated by our staff in Kuala Lumpur, two member companies have already benefited from their products being selected for this programme. To find out more please see our Asia Pacific regional update on page 17. I hope you enjoy your new-look newsletter. I’d really like to hear member feedback on the new design and any ideas you have for content. If you’re interested in answering some quick questions please contact me via the email address below. Edward White Editor and Communications Manager edward.white@the-eic.com

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Contents Sector analysis

Inside this issue...

One-to-one

EIC training

New members

Member news

Forthcoming events

EIC Connect Oil & Gas 2016

Middle East news

Asia Pacific news

North America news 18 South America news 19

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One -to-one

with Eric Maddock, Group Business Development Director, Alderley Alderley designs and manufactures bespoke metering, hydraulic control systems and produced water treatment solutions. We catch up with Eric Maddock to discuss the company’s highlights to date and what the future holds for Alderley.

What has been your biggest success of 2015-16 so far?

A. Alderley has had 15 major wins from a small engineering study for Brunei to capital equipment projects for the North Sea, Saudi Arabia and Egypt in our 2015-16 financial year. This is great news for Alderley, considering we are operating in a very challenging market at the moment.

What plans does Alderley have in place for the future?

A. Currently, Middle East countries such as Saudi Arabia and Kuwait are the biggest users of our equipment. We have expanded our portfolio of engineering equipment packages to include, for example, high integrity pipeline protection systems and surge relief systems. These new offerings have resulted in us expanding to a new facility in Eastern Province, Saudi Arabia.

Our expansion plans also extend to our subsidiary company, SMS, which has seen substantial growth over the last five years. SMS supplies hydraulic, pneumatic and electrical control systems, and moved into their new facilities in Beacon Park, Great Yarmouth at the end of 2015. Your Hawk system is well known in the metering sector, can you explain how it works for those members not so familiar with this sector?

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As part of our metering solutions we provide supervisory control and fiscal/transfer metering systems. Alderley has a great deal of experience in implementing a variety of supervisory system technologies and architectures. Through this experience we have created our own supervisory system - Hawk. Hawk is based on a commercially available, best-ofclass, SCADA product from one of the world’s largest electrical controls companies. This approach offers considerable benefit over bespoke application development. Utilising existing architecture provides a stable, well tested and field proven foundation that is maintained and improved constantly from feedback from a large installed base. Many metering supervisory systems are based on bespoke solutions that can only be maintained or upgraded by the original vendor. Systems based on open standards remove this reliance so it is possible to take true ownership and ensure that maximum benefit is achieved. Alderley recently opened its facility in Singapore, why did you choose to expand into this market? Alderley set up a branch in Singapore in 2012 and this was changed into its own trading entity in 2015.

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The office is relatively small but with an experienced sales and operations team, it allows us to participate in the FPSO and marine market place. Having supplied metering systems to the world’s largest FLNG project we needed a local base and selected Singapore as a hub for the region so we could better support the Asia Pacific and Australasian region.

To participate in the Malaysia and Indonesia markets you need a local partner. Selecting these has been difficult but both the EIC and UKTI have assisted in the selection process and we now have partners and are working within these countries.

What would it surprise other EIC members to learn about Alderley?

One of our business strategies is to develop our services and training offering in all our regions – the Far East, Middle East and Europe. Last year we appointed a global training manager, Christopher Cant, to coordinate and deliver some of this training. We have found this to be warmly received.

Any EIC members who wish to be profiled in this section please contact Edward White, EIC Editor and Communication Manager at: edward.white@the-eic.com

EIC training Project management: priorities and pitfalls

We live in a world dominated by projects. Projects aren’t new of course, think of Stonehenge, the pyramids, roman aqueducts, castles and cathedrals, but today more of us are more affected by them, and more immediately than in the past. Even though the type and characteristics of projects can differ greatly, from building a small scale loft conversion, implementing a new IT system to constructing a new nuclear power station, a basic understanding of projects and project management has become an imperative for numerous people working across various industries.

What is a project?

Definitions are often contentious, but simply put, a project is an undertaking to put something specific in place, where the project’s sponsors or funders believe that some tangible benefit will flow. Constrained by time, cost and usually with several entities involved, it is important to state the intended outcome and benefits of a project before work is begun.

What is a successful project?

Again, put simply: the end-product is delivered on time, as intended, and within budget, while producing the intended outcome and benefits, though these benefits may not be apparent immediately.

Recognising pitfalls and failures

There are many examples of successful projects: the 2012 London Olympics and the Cross Rail tunnel for example, but projects, especially high profile ones, are often marred by bad press and failure. Despite their varied nature projects share common difficulties that need to be addressed: • Defining a project. In order to produce something specific, you must have clarity on what that something is, and that can be hard. For example IT projects are notoriously difficult to define, as is describing a new merged organisation. • Organisational structure. Many projects, particularly large ones require complex organisation: a disparate buying entity, delivery by a consortium, multiple sub-contractors and so on, therefore developing a cohesive project team with common objectives and priorities is essential but can be tough.

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• Empowerment. Given the above, putting in place an empowered management structure is tough too. The project manager must have power, and be supported by powerful and responsive boards. • Constraints. Projects are driven by both cost and time constraints, or maybe the fear of a lost bid, which can pressure the parties involved to be unrealistically optimistic. In this regard, learning from past mistakes is key. Despite these challenges, to a large extent project management is common sense, there are very few difficult ideas and the basics are not hard to understand. For many companies projects are a way of life, and project management is considered a core skill which greatly complements other management skills. If you want to find out more about project management and improve your skills in this area the EIC will be hosting Understanding Project Management from 9 August. Delivered by John Woolley, this three day course will examine all areas discussed here and provide valuable approaches and effective techniques to avoid the common project pitfalls. John graduated in Civil Engineering from University College London and is a professional member of the Project Management Institute. John has been a project manager in varied circumstances for over 25 years.

You may also be interested in: The Effective Appointment and Management of Local Agents Wednesday 7 September 2016 EIC London This course focuses on the purpose of a local agent: how to source, evaluate and appoint the right agent; how to draft agency agreements; maintain relationships and monitor performance. The course includes a detailed explanation of what agency agreements should incorporate, so you can safeguard your business while using local knowledge, essential for access to external markets. Contact: training@the-eic.com

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New EIC members NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Barton Firtop Engineering Co Ltd

CH2M HILL United Kingdom

DEKRA Insight

Stoke Heath Works Hanbury Road Stoke Heath, Bromsgrove Worcestershire B60 4LT

Elms House 43 Brook Green London W6 7EF

P H I House Enterprise Road Southampton Science Park Southampton SO16 7NS

The Nominated Representative is Mr Chris Baker, Marketing Manager.

The Nominated Representative is Mr Mike Jearey, Global Account Manager.

The Nominated Representative is Mr Michael Kuepper, Director Strategic Development.

Telephone: +44 (0)1527 831 644

Telephone: +44 (0)20 3479 8000

Telephone: +32 16 468 880

Email: chrisb@bartonfirtop.co.uk

Email: mike.jearey@ch2m.com

Email: michael.kuepper@dekra.com

Web: www.bartonfirtop.co.uk

Web: www.ch2m.com

Web: www.dekra-insight.com

Barton Firtop is a competitive designer, manufacturer and supplier of strainers, filters, separators, coalescers and flame arresters, predominantly for the oil and gas industry.

CH2M is a global leader in fullservice consulting, design, design-build, operations and programme management services for government, civil, industrial and energy clients.

The company is an expert in project design and project management, focused to achieve on-time delivery of strainer and filtration equipment to meet complex project specifications for materials, manufacture, NDE, documentation and quality control.

CH2M’s work supports project goals for public and private clients and improves quality of life. It works on some of the most iconic infrastructure programmes including High Speed 2, Thames Tideway Tunnel, the decommissioning of Dounreay and was one of the leading partners in CLM, delivery partner to the ODA for the London 2012 Olympic and Paralympic Games.

As the global leader in safety at work, DEKRA Insight is a consultant and business partner to many of the world’s largest chemical, oil and gas, transportation, utilities, pharmaceutical, and agriculture companies.

CH2M provides comprehensive solutions across the energy value chain to develop and deliver the world’s energy resources. CH2M is built on a foundation of ‘doing the right thing’ with a strong and sustainable culture of ethics, compliance, respect and professional excellence.

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The company brings a passionate, scientific approach to the process of helping clients transform safety. Its knowledge and experience enables clients to mitigate risk to their employees, assets, and reputation in a quantifiable manner – and in the process, enhance business performance. DEKRA Insight represents the collective expertise of its legacy businesses, each an institution in safety: BST, Chilworth, RCI Safety, Russell Consulting, Optimus Seventh Generation and partner RoundTheClock Resources.

New EIC members

NEW GLOBAL MEMBER

HTL

Nexans Logistics Ltd

Raytec Ltd

45 Colbourne Avenue Nelson Park Industrial Estate Cramlington Northumberland NE23 1WD

Nexans House Chesney Wold Bleak Hall Milton Keynes MK6 1LA

Unit 3, Wansbeck Business Park Rotary Parkway Ashington Northumberland NE63 8QW

The Nominated Representative is Ms Faye Mann, Marketing Lead.

The Nominated Representative is Mr Damien Simon, Marketing Manager.

The Nominated Representative is Mr Barry Thompson, Director of Hazardous Area Division.

Telephone: +44 (0)1670 700 000

Telephone: +33 1 73 23 85 62

Telephone: +44 (0)1670 520 055

Email: faye.mann@htlgroup.com

Email: damien.simon@nexans.com

Email: barry.thompson@raytecled.com

Web: www.hiretorque.com

Web: www.nexans.com

Web: www.raytecled.com

HTL is an industry leader in controlled bolting, flange working and portable machine equipment with unrivalled joint integrity expertise. Headquartered in Northumberland, in north-east England and with further facilities worldwide, there is no one better placed to meet the needs of many industry sectors.

Nexans, worldwide expert in the cable industry, offers an extensive range of cables and cabling solutions.

Raytec is a world leader in LED lighting for security and safety and has recently launched SPARTAN, a new range of LED hazardous area lighting which delivers class leading performance and reliability.

Alongside HTL’s extensive range of OEM products and services, a second to none customer service experience ensures customers continue to choose HTL as their preferred partner. HTL’s extensive OEM portfolio of solutions includes controlled bolting equipment, flange working equipment, portable machines, cutting equipment, flushing test and instrumentation equipment, subsea equipment, maintenance tooling, joint integrity software, standard and bespoke calibration and tensioner test rigs, calibration, repair and testing facilities, ECITB, NEBOSH, IOSH and QNUK approved training courses, engineered to order solutions (ETO), asset management and site based solutions.

Nexans is a global player in energy transmission and distribution, industry and building markets. Nexans addresses a wide series of market segments: from energy and telecom networks to energy resources (renewables, oil and gas, mining) to transportation. Continuous innovation and the introduction of industrial processes with limited environmental impact place Nexans at the core of a sustainable future. With an industrial presence in 40 countries and commercial activities worldwide, Nexans employs 25,000 people and had sales in 2011 of €7 billion.

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Available for Zone 1, Zone 2 and industrial applications, all Raytec hazardous area products are designed and manufactured in the UK, are ATEX and IEC Ex approved and come with a 5 year warranty. A unique modular design provides huge maintenance savings, while all SPARTAN luminaires are available with emergency battery backup. With a full range of LED luminaires, Raytec has a solution for any application.

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Member news Amarinth delivers US$1.2m high flow pumps to Fjords Processing

Typically, such large overhung pumps would operate at the hydraulic limits for this type of pump but Amarinth’s robust high-quality design ensured that the pumps were exceptionally well-balanced with tight concentricity tolerances thereby keeping vibration and noise levels within the project specifications. The pumps were also required to exhibit low-shear properties in order that the produced water treatment plants could separate and capture oil from the water before returning the cleaned water to the sea.

The FPSO Catcher, destined for the Catcher field in the UK North Sea

Centrifugal pumps specialists Amarinth has delivered US$1.2M of API 610 overhung high pressure, high flow, low-shear duplex pumps to Fjords Processing for produced water treatment duties aboard the FPSO Catcher which is currently being assembled in Singapore and destined for the Premier Oil operated Catcher field in the UK North Sea. Discovered in 2010, the Catcher field is located in the North Sea and is expected to produce 96 million barrels of oil with a peak production rate of around 50,000 barrels of oil per day. The field will be operated by Premier Oil using the FPSO Catcher, with production starting in 2017. The produced water treatment plants being supplied to the FPSO Catcher by Fjords Processing specified pumps with an 80m head but a high flow rate of 920m3 per hour, which meant impeller sizes of over 0.5m. Such large pumps are usually configured as expensive between bearing pumps but Amarinth decided to select a much more cost effective overhung design that could meet the requirements.

Oliver Brigginshaw, Managing Director of Amarinth, commented: “We are delighted to have supplied Fjord Processing with these pumps which meet the required duties but at a considerable cost saving. Our active research and development programme enables us to meet the ever increasing demands of producing oil and gas from more challenging fields.”

For more information: www.amarinth.com

AVEVA forms partnership with Omnix International

World leading engineering software provider AVEVA and Omnix International, a provider of technology enabled solutions to the Middle East have today announced a formal business partnership. The alliance has been created specifically to address the increasingly complex needs of the oil and gas Industry in Saudi Arabia, Kuwait and Qatar.

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Omnix has an impeccable track record of expertise and excellence across the region as a whole, so we are honoured that it has chosen to partner with AVEVA and to add AVEVA technology into its portfolio Louis Khoury, SVP of Operations MEA, AVEVA

Under the agreement, Omnix, which has over 25 years’ experience of working in this region, will offer AVEVA’s software solutions to its customers. AVEVA’s design and engineering tools assist engineering companies and owner operators to increase the speed and efficiency of project execution and enhance operations reliability. Omnix will benefit from a dedicated team of AVEVA specialists who will combine local knowledge and AVEVA certified technical expertise. Louis Khoury, SVP of Operations MEA, AVEVA said, “AVEVA has considerable success in the UAE and Oman where we have direct relationships with end users. We are now very happy to be providing a strong local presence of highly skilled specialists and technical resources to Saudi Arabia, Qatar and Kuwait to offer direct customer assistance. Omnix has an impeccable track record of expertise and excellence across the region as a whole, so we are honoured that it has chosen to partner with AVEVA and to add AVEVA technology into its portfolio.”

For more information: www.aveva.com

Member news

Balmoral celebrates apprentices’ success

Balmoral Offshore Engineering recently celebrated its latest wave of modern apprenticeship awards. Two candidates successful in achieving Modern Apprenticeship Level 3 Awards in Engineering were Fraser Gilbert and Chris Smith while Martin Laird achieved an SVQ 3 in Engineering Maintenance. Balmoral has another four apprentices working at its Newcastle fabrication business and two at the company’s tanks manufacturing operation in Llantrisant, south Wales. The company is currently recruiting its next intake of apprentices in Aberdeen and says that 90% of apprentices are offered full time jobs with the organisation. Jim Milne, Chairman and Managing Director, is fully supportive of the training initiatives across the company and said, “It’s very pleasing to see these young people commit to and complete their apprenticeships. This is only the beginning of the journey of course, now the real work begins. The time and investment made in training helps these young people develop their careers and allows us to work with them in terms of guiding them through their working lives. It helps to embed our company culture of hard work, initiative, effective communication and commitment into their work ethos.”

Blue Water Shipping-led consortium wins US$350 million contract for Kazakhstan oil project

Transport and logistics company Blue Water Shipping in partnership with Topaz Energy and Marine has been awarded a major transport and logistics contract by Tengizchevroil for the Tengiz oil field in Kazakhstan.

New investment in cylindrical grinding capacity at Bodycote Newport

Bodycote, the world’s largest thermal processing services provider, has made further investments in its surface technology facility in Newport, south Wales. Due to significant growth in demand driven by regional manufacturers, Bodycote has invested in additional machining capacity to support new and existing customers.

Topaz Energy and Marine will supply and operate 15 specially designed module carrying vessels for the project, while Blue Water Shipping will provide project management for overall transportation of the vessels.

The new cylindrical grinding capacity forms part of Bodycote’s strategy to support specific customers’ needs and enhance the existing broad service offerings that are valued by its customers.

The vessels will transport modules and cargo up to 1800 tonnes through the Russian river systems to the Tengiz oil field in Kazakhstan.

The additional capacity combines automated processing with precoating and secondary grinding capabilities. The integrated services at Newport enable manufacturers to shorten production cycles, reduce turn around time and save costs by streamlining supply chains.

Commenting on the contract, Kurt Skov, CEO and founder of Blue Water Shipping, said, “Transport and logistical projects of this type require considerable expertise, and more than 20 years of experience with complex logistics in the Caspian Sea region makes Blue Water Shipping a strong and reliable partner. With Topaz Energy and Marine - a leading provider of offshore vessels - we have found a strong and trustworthy partner with whom to execute this complex logistics project.”

Bodycote Newport, an ISO, AS9100 and Nadcap accredited facility, offers thermal spray coating with extended precision CNC finishing and approved non-destructive testing capabilities.

For more information: www.bodycote.com

For more information: www.bws.dk

For more information: www.balmoraloffshore.com

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Member news

The demand for cable cleats has increased automation at CMP Products

Global Marine announces two senior appointments

Global Marine Systems Limited, a world leader in subsea system design, installation and maintenance has announced two key appointments within its senior management team. Mikkel Gleerup will assume the role of Director, Sales and Commercial, at Global Marine and Darren Lam will join SBSS, a joint venture between Global Marine Systems and China Telecom, as Managing Director.

These appointments will bring extensive experience to Global Marine

CMP Products responds to increase in cable cleats demand

One of the world’s leading manufacturers of cable glands and cable cleats, CMP Products has increased the automation capacity at its UK-based production facility, after installing additional state of the art robots within its automated cable cleat line. Demand for CMP Products’ range of cable cleats is expanding at such a rate that the company’s Innovation and Automation team has been tasked with doubling the output of CMP’s cable cleats line by the end of the year.

This efficient, fully automated process will improve the safety and reliability of production even further, with robots improving accuracy and speed, without compromising on quality. In line with the expansion of the company’s cleat manufacturing facility, the Innovation and Automation team has also designed and manufactured a bespoke, automated welding machine, which allows for quicker and easier production on a number of lines within the cable cleat range. The custom-made, automated welding device is set to reduce cycle times by more than 50%, with an additional project in the pipeline to produce a similar machine for other products in the range.

The team has installed three new Fanuc robots in its metal forming production line and two new SEPRO robots in its mould-shop. Get in touch Share your news and views...

For more information: www.cmp-products.com

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Ian Douglas, CEO, Global Marine

Commenting on the appointments, Ian Douglas, CEO, Global Marine said, “I am delighted to announce these two appointments. Mikkel and Darren bring extensive experience both from within Global Marine and from the wider offshore industry. The culmination of this knowledge makes them the ideal candidates for these strategic roles.” Mikkel Gleerup took up his role of Director, Sales and Commercial, in mid-May and will be based in the UK with global responsibility for sales. He joined Global Marine as Managing Director at SBSS in 2014, and has been instrumental in SBSS’ strong performance delivery during his time at the helm. Mikkel began his career with AP Moeller (Maersk) with a variety of management roles. Prior to joining Global Marine Mikkel was VP of Sales and Proposals for Siemens in China, focused on the offshore wind market.

Member news

Darren Lam joined SBSS in Shanghai as Managing Director at the beginning of May. He has worked at Global Marine for a number of years, most recently in the role of Senior Project Manager and has been responsible for implementing a range of high-profile projects in both telecom and power. Before joining Global Marine, Darren was a Senior Engineering Officer in the Singapore Air Force. In his new role, Darren will lead an organisation of more than 150 employees.

For more information: www.globalmarinesystems.com

HVPD launches discharge monitoring PDS Insight™ Machines unit

HVPD Ltd, experts in on-line condition monitoring of high voltage networks, has released a brand new solution for the detection of partial discharge (PD) in rotating machines, the PDS Insight™ Machines unit. This groundbreaking technology can be used to detect and trend PD, a common cause of electrical failures in these critical assets. HVPD has been developing and distributing simple-to-use handheld PD testers since 2007, with over 400 customers in the utility, transport, and oil and gas sectors using this type of equipment for safety screening and to support condition based maintenance. In response to high customer demand, the PDS Insight™ Machines unit has been especially developed for testing rotating machines.

Dr Malcolm Seltzer-Grant, HVPD’s Technical Director, said, ‘The PDS Insight™ Machines unit will support our customers in testing motors and generators in a more cost-effective way. The unit connects to pre-installed coupling capacitor sensors, which ultimately eliminates the need for an outage during periodic testing.’

“We consider ourselves a design focused company that solves customers’ technical problems,” said Steven Fisher, CEO of PEIGenesis. “This acquisition enhances that capability, further encouraging our customers to partner with us from the initial stages of design through delivery.”

The PDS Insight™ Machines unit belongs to a new generation of online partial discharge (OLPD) technology and is equipped with cutting-edge features including a Smart Docking Station, internal storage, barcode scanner, Bluetooth© connectivity and a dedicated asset management tablet application - the OLPD Manager™ app. used for analysis, benchmarking and trending of results.

FilConn has the capability to produce precision machined parts rapidly while meeting the highest quality standards, translating time to market into weeks instead of months.

The PDS Insight™ Machines unit measures PD levels, PD pulse count and cumulative PD activity across the 50/60 Hz power cycle, enabling the user to determine the severity of any PD activity.

For more information: www.hvpd.co.uk

PEI-Genesis acquires precision connector manufacturer FilConn

PEI-Genesis has acquired Arizonabased FilConn, a manufacturer of precision high reliability filter, transient suppression, and custom configured connectors for the milaero, medical, transit and oil and gas industries. The purchase allows the company to better serve its clients’ needs for low volume, quick turn, custom connectors.

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“Having the ability to do a drawing in 48-hours and to fabricate low volume specials within weeks will be the perfect complement to our existing design and value-add capabilities,” continued Fisher. Commenting on the deal, Mark Pendergrass, President, FilConn, said, “It’s a perfect fit. The PEI team is passionate about the same things we are – creating custom, quick turn, interconnect solutions for our customers. By combining our teams, we are now able to bring our unique capabilities to a much larger base of customers.” PEI-Genesis will operate FilConn as a separate company, continuing to work with FilConn as an authorised supplier partner. FilConn’s President, Mark Pendergrass, and Director of Sales, Jason Pedruzzi, will continue in their roles at FilConn in addition to becoming part of an enhanced PEI sales team. PEI will continue to support the existing FilConn distributors and rep network.

For more information: www.peigenesis.com

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July 2016

Forthcoming events 11-15 July Overseas Delegation

Overseas Delegation to Argentina 30 July Industry Overview

Fundamentals of Subsea

August 2016

EIC Rio de Janeiro

9 August Management Course

Understanding Project Management EIC London

Delivered by John Woolley, this three day course will provide valuable approaches and effective techniques to avoid common project pitfalls. John graduated in Civil Engineering from University College London and is a professional member of the Project Management Institute.

16 August Industry Overview

Fundamentals of Oil & Gas EIC London

17 August Business Presentation

Opportunities with EnQuest Petroleum EIC Kuala Lumpur

18 August Business Presentation

EICDataStream Overview EIC Houston

A free session for all EIC global members who are new to using EICDataStream or need refreshing. Taught by our regional analysts who are available to answer any questions you may have regarding the database and project tracking. Contact: natalia.bueno@the-eic.com Get in touch Share your news and views...

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

25 August HSE Training

The ATEX Directives SGS Baseefa, Buxton

25 August Sector Showcase

Sector Showcase: Collaboration Aberdeen venue tbc

Collaboration has been a consistent industry theme since the publication of Sir Ian Woodâ&#x20AC;&#x2122;s UKCS Maximising Economic Recovery Review. The second series of our UKCS showcases will now focus on the changing landscape of the oil and gas supply chain by outlining how operators and the supply chain are beginning to collaborate and what is needed for successful collaboration and how far we have come on the path to working collaboratively. This breakfast briefing will bring together a panel of operators, supply chain companies and relevant professional bodies from across the UKCS and gas sector to discuss the opportunities around this topic. Learn from industry collaboration success stories; operator/contractors and inter-supply chain. The companies will outline their recent effective collaborations in the UKCS, providing an insight to key learnings and top tips for effective collaboration. To register interest in this event please contact: julia.harte@the-eic.com

September 2016

Section Forthcoming header Events here

7 September Management Course

Effective Appointment and Management of Local Agents EIC London

This course focuses on the purpose of a local agent; how to source, evaluate and appoint the right agent; how to draft agency agreements; maintain relationships and monitor performance. The course includes a detailed explanation of what agency agreements should incorporate, so you can safeguard your business while using local knowledge, essential for access to external markets.

8 September Export Showcase

Export Showcase: Egypt Aberdeen venue tbc

Egypt’s extractive industries including oil, gas and mining, are an important part of Egypt’s economy with a history dating back to the 20th Century. However underinvestment has caused production declines and left Egypt a net energy importer, suffering electricity outages. Egypt’s hydrocarbon resources are significant and under-developed, with gas requiring an estimated investment of US$21.1 billion and exploration and petrochemicals jointly requiring investment of US$34.4 billion. Attracting investment in the sector is a priority for the new leadership as the target is now for US$70 billion to be invested by 2022. Join the EIC and UKTI for the Egypt Showcase for an overview of the region’s energy sectors, details of where the main opportunities lie and the support available to companies looking to do business across Egypt. To register your interest for this event contact: julia.harte@the-eic.com.

10 September Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

13 September Technical Workshop

Introduction to Electric Motors ATB Group, Norwich

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22 September Sector Showcase

Sector Showcase: Renewables Humberside venue tbc

Although the oil price has recovered somewhat, the fall has very much highlighted to the industry that in numerous cases, diversification is key to ensuring survival. Many are now including the renewable industry as a key element of their portfolio, but for others it still remains uncharted territory. This event has been developed to showcase some of the key sectors within renewables including offshore wind, energy from waste and biomass. The panel of speakers will be drawn from both the operator and contractor communities, along with the provision of a case study which will offer some hints and tips on how to succeed in the sector. There will also be a session detailing a number of emerging export markets for renewables with specific reference to developments in solar. It will be of interest to both companies that are already doing business in the sector along with those looking at it as a new opportunity. To register your interest contact: jennifer.hole@the-eic.com

26 – 30 September Overseas Delegation

Overseas Delegation to Mexico 27 September Business Presentation

Opportunities in the Philippines 27 – 30 September Overseas Exhibition

WindEnergy Hamburg Hamburg

30 September

Corporate Entertainment

Annual Sporting Clays Tournament and BBQ

American Shooting Centers, Houston We are pleased to host our 7th annual sporting clays tournament which will include a 10 team format shooting 75 targets per person and ending with cold drinks and Texas barbecue. Awards to be given for first, second and third places. Sponsorship opportunities are available. Please contact: natalia.bueno@the-eic.com

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Middle East news Regional update We were delighted with the success of two events, EIC Connect Middle East and a curry networking night, that took place before the advent of Ramadan.

Regional news

Terry W

illis

Normally a bi-annual event, EIC Connect Middle East, returned a year ahead of schedule and given the current economic climate, it cannot be denied that there was a degree of trepidation during the planning but overall, we couldn’t have been happier with the result. Having over 400 delegates in the room over the day created a continual air of positivity with both conference and workshop tsessions being extremely well attended. The feedback was all very positive and the advisory group can be proud of their efforts, so much so, that we are now starting to plan the 2017 edition. Just before we leave Connect, it will not have gone unnoticed that the majority of the national oil companies (NOCs) in the region are taking the opportunity to assess their structures with a view to refining their shape in order to become more efficient and effective during this time of austerity. This indeed affected ourselves when, with just 4 days before the start of the event, we unfortunately lost a significant key note speaker. With less than 24 hours before the event began we were able to secure the presence of the newly appointed CEO of GASCO, HE Dr Saif Sultan AlNassari who delivered an outstanding key note speech that set the scene for eventual success of the whole event. Moving on to our networking event, following on from a successful night last August, it gave us tremendous pleasure to return to the Mintleaf restaurant. With 50 members and their guests, it was a great occasion to network and enjoy the ambiance of the venue. The quality of the food was outstanding and we look forward to returning soon. While we were aware from the outset that the logistics and programme planning would be quite a challenge, the trade mission to Iran proved to be very worthwhile. There were some difficulties with visas, but nevertheless, the group was still able to assemble in Tehran and spend five days attending a total of 15 meetings that ranged from the Ministry of Petroleum to a local bank plus the various NIOC entities that all provided a very warm reception. Given the identified opportunities that the territory offers, we intend to take another group to the Integrated International Petroleum Conference which takes place in Tehran at the beginning of October, plus arrange another delegation, hopefully before the year’s end. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

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Takreer looks for interest in IRP Phase-3

The Abu Dhabi Oil Refining Company (Takreer) has asked a number of local and international companies to prequalify for the third phase of the Inter-Refinery Piplines project. This involves building oil product pipelines to link the industrial area of Mussafah with Khalifa Port. The front end engineering and design study has been completed by Amec Foster Wheeler.

Kuwait Petroleum Corporation to spend US$115bn over the next 5 years

The state-owned Kuwait Petroleum Corporation has announced plans to spend over US$115 billion over the next five years in the oil and gas sector, with the majority allocated for local investments. It aims to reach a production target of 4 million barrels per day of oil which represents an increase of some 25% on current levels plus a 10 fold increase in production of gas, with the current 150 million cubic feet per day to rise to 2 billion cf/d, which means that up to US$100 billion would need to be spent on new gathering and production centres.

Technip scoops Saudi Kayan project

The French contractor, Technip has won the race to provide basic engineering and technology for a new ethylene cracker planned by Saudi Kayan. The award was made by Taiwan’s CTCI which were earlier awarded the EPC contract to increase capacity by 93,000 tonnes per year of ehylene and 61,000 tonnes of ethylene oxide. Due to come on stream by 2017, it will be Technip’s UK office at Milton Keynes which will carry out this work.

Forthcoming events

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Asia Pacific news Regional update

While worldwide market conditions are effecting the upstream oil and gas sector in Asia Pacific, operations and maintenance activities Azman Nasir and activities related to asset integrity management are receiving greater attention from operators due to the increasing need to ensure operational costs are optimised and a desire to extend the life of ageing assets. PETRONAS recently embarked on a specific life extension programme called Technical Integrity and Process Safety and has allocated a substantial five-year budget for this purpose. EIC Asia Pacific is highlighting this programme to our members in the region and has previously introduced several member companies to PETRONAS. As a result we are happy to report that two of our members have been selected by PETRONAS as part of its OPEX cost saving pilot projects. The two companies’ innovative products are likely to be adopted by PETRONAS and all of its production sharing companies in the coming months. We are seeing other operators in the region adopting a similar approach to adapt to the challenging market. Thailand’s national operator PTT-EP has embarked on a programme called 3R – Reset, Renew and Refocus – with a focus on longer term sustainability in meeting energy demand and maximising the use of technology to reduce operations and maintenance of asset costs. In terms of the renewables and power sectors, within ASEAN countries, Thailand and Indonesia are leading the way in the quests for alternative sources of energy. Thailand is developing small power producers and significantly large solar and wind projects in various parts of the country. One of our members, Mott MacDonald, a leading engineering company in the country, is involved in many of the renewable projects. In Indonesia, the high-level push for power projects continues as the country tries to meet its energy needs. Member companies such as BMT Group and Intertek are well placed to reap the benefits of these projects. We have also noticed an increased member interest in EICDataStream training. Since November last year, we have held five sessions, three in Kuala Lumpur and two in Singapore, with a total of 38 participants. We also conducted more EICDataStream training via telephone and on a one-to-one basis in our office. Another three sessions are planned for remainder of 2016.

Regional news

Indonesia approves PoD for 18 oil and gas fields

The Indonesian government has approved the plan of development (PoD) for 18 oil and gas fields in the first four months of this year with an estimated combined investment of US$1.496 billion. Stateowned SKK Migas estimated that the cumulative oil and condensate production of these fields will have a capacity of 45 million barrels, while gas production will be approximately 271 billion cubic feet.

Indonesia to review 35GW power plan

It is understood that the Indonesian president has requested a programme to revisit the development of 35GW of power generating capacity by 2019. The delay in the plan would be a setback to coal producers who have pinned hopes on domestic power projects absorbing excess supply at a time of global turbulence in the energy sector. The government has signed power purchase deals for about 30% of the projects, with only 10% of the programme under construction.

India to auction 67 small oil and gas fields

India’s Ministry of Petroleum and Natural Gas has launched the Discovered Small Fields Bid Round-2016 in New Delhi. It is understood that bids are being issued for developing areas which have 625 million barrels of oil and oil equivalent gas in place in onshore, shallow water and deep water areas.

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Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com

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North and Central America news Regional update

Mexico’s energy reform is the region’s hot topic of discussion and continues to effect all aspects of the energy market. As the reform progresses, the market is continually changing.

Regional news

FMC and Technip announce merger

The two companies will combine to form TechnipFMC, a company that will have an equity value of US$13 billion. The group will organise its activities into five business units covering surface, subsea services, products, subsea projects, and onshore/offshore. The first two business units will be headquartered in Houston, Texas and the remaining three will be headquartered in Paris. The companies have entered into a memorandum of understanding and expect to execute a definitive business combination agreement to combine in an all-stock merger transaction.

Mitsubishi Heavy Industries America Inc. moves headquarters to Houston

The EIC and UK Trade & Investment teams on the UK Pavilion at CMP

Last month, the largest annual technical and commercial forum in Mexico for the oil and gas industry, Mexican Petroleum Congress (CMP), took place in Monterrey, Mexico. UK Trade & Investment (UKTI) hosted the UK pavilion which showcased the expertise and innovation that the UK oil and gas industry is renowned for. Clarisse Rocha, Head of Americas attended this event and made the most of the opportunity to meet with UK companies with regional interests. For more information on Mexico, please join the upcoming Regional Showcase: Opportunities in Mexico event in Houston on 26 July. Confirmed speakers include Talos Energy, UKTI and Aggreko. The event will offer current and future supply chain and project opportunities with operators and contractors, and provide guidance on how to do business across the energy industries in Mexico. Visiting Houston and need a desk or meeting room? Book your hot desk and/or conference facilities at the EIC North and Central America office in Houston, by contacting our Office and Events Associate Manager: natalia.bueno@the-eic.com Get in touch Share your news and views...

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Mitsubishi Heavy Industries (MHI) Americas has officially moved its headquarters from New York to Greenway Plaza in Houston. Houston is currently home to the headquarters and manufacturing plants for two other MHI Group companies – MHI Compressor International Corp. and Mitsubishi Caterpillar Forklift America Inc. Other Mitsubishi division with operations in Texas include MHI’s environmental and chemical plant division, Mitsubishi Hitachi Power Systems Americas, and MHI’s oil and gas business development department.

Doosan to sell HRSG business to GE Power

GE Power has signed a purchase agreement to acquire the heat recovery steam generator (HRSG) business of Doosan Engineering & Construction for US$250 million. Upon completion of the acquisition, Doosan will be integrated into GE Power’s Gas Power Systems business, which already includes Alstom’s legacy HRSG business.

Forthcoming Events

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South America news Regional update

The EIC trade delegation to Argentina is confirmed and will take place on 11 to 15 July. Delegates will have the opportunity to visit key operators and contractors in Buenos Aires and Neuquén, the hub for oil and gas operations in the country. This key South American market is now under new administration, and the new President Macri is working hard to attract foreign investment to Argentina’s oil industry. A key objective is to increase crude oil output to 653,000 barrels per day by 2025 in a bid to cover the country´s energy demands. It´s exciting to be able to introduce EIC members to this market with so many challenges but one which is is so vibrant with many changes being implemented. The days of nationalising its main producer YPF, which led to a decade of depressed of foreign investment, are now firmly in the past.

If you´re planning a trip to Brazil, October will be the perfect month as UKTI has just confirmed that it is sponsoring the UK Pavilion at Rio Oil & Gas 2016. Please contact the Rio team, if you´re in town to learn about the activities planned around this exhibition. Visiting Rio and need a desk or meeting room? Book your hot desk and/or conference facilities by emailing: rio@the-eic.com If you need any assistance or advice in the region or for more information about upcoming events, please contact:

Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

Regional news

New CEO at Petrobras

Brazil’s interim President Michel Temer has appointed Pedro Parente as the new chief executive of Petrobras, the state-owned oil company. A pro-market choice, Parente previously served as chief of staff for the second Cardoso administration (1999-2002) and worked as the CEO of Bunge, an agribusiness multinational. As CEO of the world’s most indebted oil company, his main priority will be to improve Petrobras’ dire financial situation: the company has a US$130 billion debt and plans to sell US$15 billion of its assets by the end of the year. The Brazilian pre-salt province. A new law in Brazil is expected to attract IOCs to the area

The development of pre-salt reserves is a key topic in Brazilian politics and the new CEO is a supporter of a draft bill which removes the legal requirement

that Petrobras must operate all new pre-salt fields in the Santos basin, a move which could lead to more foreign companies operating in the country. The draft bill has been approved by the Senate and is currently being reviewed by the lower house of Congress, with approval expected in the second half of the year. Parente is also critical of existing local content regulations, which, in his view, do not foster competiveness in the local supply chain and must be adapted.

Brazil and Chile among top 10 renewables markets

A report produced by the Renewable Energy Policy Network for the 21st Century (REN21) has placed Brazil and Chile among the world’s fastest-growing markets for wind and solar (PV) in 2015. The 10 countries with most investment in the renewables sector were China, the United States, Japan, the United Kingdom, India, Germany, Brazil, South Africa, Mexico and Chile, according to REN21’s report.

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