Inside Energy June 2018 by Energy Industries Council

Inside Monthly news for EIC members June 2018

Spotlight on technology EIC Charity Cycle Ride

20 -20 18 Sh k,

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With Servelec Controls’ Divisional Director Ronald Holden

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G I CON a N BO • s U EC O 6 Sep SA T NO K tem 2 I W NG ber 018 Ho us to n

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600 miles in 6 days for Cancer Research UK and The Ocean Cleanup

Balmoral’s new drill riser buoyancy system

www.the-eic.com

Sector analysis Downstream activity in the GCC The Gulf Cooperation Council (GCC) countries heavily depend on oil and gas as their main source of economic revenue. In recent years, the GCC countries have focused on moving down the hydrocarbon value chain and started to undertake several multi-billion-dollar downstream projects to upgrade and expand their current facilities as well as constructing new grassroots downstream facilities. GCC countries are investing billions of dollars in clean fuel projects (CFPs) to produce high volumes of clean fuels with low sulphur content, providing a competitive edge in a tough market – an advantage when it comes to exporting refined products, especially to Europe’s heavily regulated environment. New refinery projects are being implemented in the GCC region to produce high-value products to meet domestic and international demand for products such as diesel, gasoline and jet fuel. At the end of 2017, the region’s total refining capacity was just under 6bn barrels per day (Bbbl/d). Newer and cleaner refining capacity of 2.16Bbbl/d is expected to be added in the region between 2018 and 2025, a 35% increase on the current capacity. The highest percentage growth in refining capacity is planned in Oman, which is expected to see a 140% increase with construction of the new grassroots Duqm refinery and expansion of the Sohar refinery. Kuwait is nearly doubling its current capacity, with the 615,000bbl/d Al Zour refinery currently under development. The largest capacity addition is expected in Saudi Arabia, which is planning to add about 763,000bbl/d of refining capacity by 2025. The UAE’s ADNOC has recently announced plans to invest approximately US$45bn to expand its domestic and international refining, gas processing and petrochemicals portfolio over the next five years. As part of this strategy, ADNOC will increase its refining and petrochemical operations in Ruwais through construction of a new grassroots facility. According to Platts Analytics (2016), a polyethylene and polypropylene deficit is forecast in Africa, Asia Pacific and South America by 2025. ADNOC has projected that demand from Asia for petrochemicals and plastics will continue to increase, doubling from current levels by 2040. The GCC countries are pursuing downstream expansions to meet demand from these regions. The GCC is focused on integrating new build petrochemical and aromatics plants with refineries to drive maximum efficiency and flexibility.

Dina A

bieva

Added-value is achieved by the integration of different units, sharing of units, the transfer of products between refining and petrochemicals units, reduced transportation costs, energy savings and flexibility on production of products depending on market requirements. Duqm Refinery and Petrochemical Industries Company is planning to integrate a petrochemical plant with the Duqm refinery, currently under development. Kuwait Integrated Petrochemical Industries Company is developing a US$12bn petrochemical complex, consisting of aromatics II and olefins III facilities in Al Zour, which will be integrated with the Al Zour refinery, currently under construction. Borouge (Abu Dhabi Polymers Company) is planning to construct the US$10bn Borouge 4 complex, which will be integrated with ADNOC’s Takreer refinery. Saudi Aramco and Total have recently signed an agreement to build a US$5bn petrochemical complex integrated with the SATORP refinery in Jubail. The GCC countries have captured a significant share of global petrochemical output due to the availability of low-cost gas feedstock from oil and gas production. However, changing dynamics, such as reduced feedstock advantages, increasing economic competition from the growth of shale in the US as well as coal-to-chemicals in China, are forcing the GCC countries to look at alternatives to remain competitive. Traditionally, the GCC countries have used ethane as feedstock for steam crackers, however, they are now shifting to mixed-feed crackers (MFCs) to utilise naphtha from local refineries as additional feedstock. The MFCs will be constructed as part of the integrated petrochemical facilities listed above. The US$19.3bn Sadara chemical plant, completed in 2017, is Saudi Arabia’s first chemical facility that incorporates an MFC. Saudi Arabia has set a wide range of strategic and economic goals under its Vision 2030 to diversify from crude oil export and the petrochemical/ chemical sector has a crucial role to play in the country’s vision for a diversified and sustainable economic future. Saudi Aramco and SABIC are considering developing a US$20bn crude oil-to-chemicals project, which involves construction of an MFC, to produce petrochemical and chemical products. Spending levels will remain relatively high in the coming years in the GCC countries with numerous opportunities for the UK supply chain. Dina Abieva, Sector Analyst, Downstream dina.abieva@the-eic.com

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Inside this issue... I’d like to start this issue of Inside Energy by shaking a virtual bucket for two very worthy charities: Cancer Research UK and The Ocean Cleanup. As part of our 75th anniversary celebrations a team of six EIC riders are tackling a 600-mile cycle challenge in a bid to raise money for these two organisations. Starting from our Aberdeen office on 7 June, they’ll be cycling the length of the UK, arriving at our London headquarters six days later on 12 June. On some days they’ll be covering over 130 miles – that’s more than the average Tour de France stage. Please donate whatever you can to support the work these two fantastic charities do: www.gofundme.com/the-eic-charity-cycle-challenge This month’s one-to-one interviewee is Ronald Holden, Divisional Director at Servelec Controls, winners of the 2017 EIC Company of the Year and EIC Innovation awards (a quick reminder while we’re on the subject, submissions for the 2018 EIC National Awards Dinner are now open: www.the-eic.com/ Events/EICNationalAwardsDinner.aspx). Ronald talks about Servelec’s 40th anniversary, its new nuclear refuelling system and being the first UK company to be granted Select Partner status by OSIsoft (page 6). Balmoral Offshore Engineering launched its new DuraFloat LDV drill riser buoyancy system at OTC last month to much acclaim, making headlines and generating lots of industry interest. Find out what all the fuss is about on page 20. EIC Downstream Analyst Dina Abieva provides June’s sector analysis (opposite), detailing the rapidly growing GCC downstream sector. As the Middle East’s NOCs look to move down the hydrocarbon value chain there is an abundance of opportunities for suppliers to work with them on their refinery and petrochemical plant new builds and upgrades. For a real in-depth look at the GCC downstream sector check out Dina’s Downstream Insight Report. EIC members can download the report for free, while non-members can purchase it for just £195: www.the-eic.com/Publications/MarketIntelligenceReports.aspx Edward White, Editor and Communications Manager edward.white@the-eic.com

Contents Sector analysis

Charity cycle ride

Inside this issue...

One-to-one 6 EICDataStream 7 New EIC members

Forthcoming events

Social media round up 13 Overseas events

Rising Star MBA Award 19

Spotlight on technology 20 Training 21 UK and Europe news 22 Middle East news

South America news

North America news Visit www.the-eic.com/Forms/NewsletterSignup Please contact edward.white@the-eic.com

Member news

Asia Pacific news

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Riders will cycle from Aberdeen to London, via Teesside, in just 6 days A team of six EIC riders are taking on a cycle challenge which will cover the length of the UK in a bid to raise money for Cancer Research UK and The Ocean Cleanup.

The EIC takes on for Cancer Resea The Ocean Clean

They will be tackling a 600-mile bike ride from our Aberdeen office to the EIC’s London headquarters, stopping in at our Teesside location on the way, between 7 and 12 June 2018. The EIC team decided to attempt the challenge to celebrate our 75th anniversary, and in doing so will be supporting the work of the two charities, which were selected by the EIC staff. Neil Golding, Head of Oil and Gas and Business Development and one of the riders, said, ‘With just over a week to go before we start our charity bike ride, our training and preparation has really started to ramp up and while 600 miles in six days is going to be tough, all the aches and pains are worth it to support two great charities like Cancer Research UK and The Ocean Cleanup.’ Cancer Research UK’s Fundraising Executive Emily Reynolds said, ‘We are absolutely delighted that the EIC has decided to attempt such a great challenge to raise vital funds for both Cancer Research UK and The Ocean Cleanup. We can’t thank the EIC enough for their support and want to wish the team the very best over the six days.’ You can stay up to date with how our riders’ preparation is going as well as their progress during the six days of the challenge by visiting our EIC Charity Cycle blog: https://eiccharitycycle.wordpress.com/ Get in touch Share your news and views...

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Meet the team taking on the 600-mile cycle challenge, from left to right: Neil Golding, Head of Oil and Gas and Business Development; Andrew Scutter, Overseas Membe

Make your donation The EIC is hoping to raise around £10,000 for each charity: Cancer Research UK and The Ocean Cleanup. Anyone who wants to support these two charities can sponsor the team’s fundraising efforts at: https://www.gofundme.com/theeic-charity-cycle-challenge

n 600-mile cycle challenge arch UK and nup

ership Manager; Mark Risley, Web and E-marketing Co-ordinator; Lara Juergens, Energy Research Assistant; Thomas Bacon, OPEX Analyst; Richard Vale, Energy Analyst

The route

Starting out from our Aberdeen office, the team will stop in at our Teesside location, before heading down to our London HQ. Sign up for the EICOnline newsletter

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The EIC’s charity cycle ride will see the riders complete almost 600 miles in just six days, covering over 130 miles on some days – more than the average Tour de France stage.

Make your donation

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One-to-one

with Ronald Holden Divisional Director, Servelec Controls Servelec Controls is one of the largest UK-based independent systems integrators. The company develops and integrates mission-critical systems for national infrastructure by bringing together specialist hardware, software and world-class engineering to provide control, monitoring and safety solutions. Servelec Controls’ vendor independent solutions add value at all stages of an asset’s lifecycle from concept, through operation to decommissioning, ultimately saving organisations time and money, as well as minimising risk in hazardous and volatile industries.

safety that focus on reducing intervention, we have enabled Spirit to improve safety and reliability, as well as reduce operational costs, all while extending the life of the field – quite a combination, which, for obvious reasons, is attracting the interest of other operators.

You’ve recently celebrated your 40th year. Can you tell us a bit about the company history?

We began life in the demanding world of automation in the steel industry and soon broadened out to embrace the power and oil and gas industries. Our skillsets extended to cover industrial IT as well as traditional control and automation and we find ourselves especially wellplaced in the market as we bridge these two closelyrelated, but technologicallydiverse disciplines. I’ve always held to the maxim of delivering excellence. We pride ourselves on being dependable and in collaborating with our customers, who keep returning to us for our expertise and reliable service.

On the subject of anniversaries, Morecambe Bay has just celebrated 30 years of gas production, where Servelec has played a big role lately.

We have worked closely with Spirit Energy, formerly Centrica, on its Morecambe Bay assets and over the last few years in particular have delivered some really innovative work around remote operations. These installations are normally unmanned and so by applying fresh approaches to control and

more value to customers, so we were especially pleased to become the first Select Partner in the UK. We have worked closely with OSIsoft for many years to deliver innovative real-time information solutions and long-term support to our customers, in order to maintain and enhance their investment. I’m looking forward to seeing this relationship develop further as we continue to provide unrivalled value and expertise to customers with requirements for real-time monitoring and data science solutions.

You just took part in the PI Visualisation Virtual Hackathon. How did it go?

Really well – we won the top level Best Data Science Application prize for our SQC Chart Symbol, which uses statistical methods to establish control limits to plot data and detect process variations and highlight instances where the process is running outside the limits. This Hackathon is run by OSIsoft, the maker of the PI System, and is open to entry for customers and partners globally, so it’s very pleasing to have achieved this outcome. We work closely with OSIsoft on visualisation and our services and solutions in this space are being well received by customers, both old and new. Congratulations. Talking about OSIsoft, they’ve just awarded you Select Partner Status, which is a big deal, can you tell us more about it? The Select Partner tier from OSIsoft recognises partners who provide a higher degree of customer influence and

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What do the next 12-18 months have in store for Servelec?

As the capabilities of the technology grow, the expectations of end users also increase, and the role of the systems integrator in bridging that gap remains an exciting one. Some of our solutions demonstrate our innovation really well. For example, we have developed an expert system to schedule refuelling of nuclear reactors, and a system used to manage standing reserve dispatch on the electricity grid. We have exciting plans to grow our Industrial IT solutions and services division, which will see us both deepen and broaden our offerings and the markets in which we operate.

Global opportunities UGANDA

The Hoima refinery Operator: Albertine Graben Refinery Consortium Value: US$3bn The Ugandan government has signed a project framework agreement with the Albertine Graben Refinery Consortium. Each consortium member will undertake a specific role: YAATRA Africa and LionWorks will provide infrastructure solutions, Saipem will act as a services provider, and Baker Hughes, a GE company, will provide equipment, and technical and financial services.

SAUDI ARABIA

THE UK

Yanbu oil-to-chemicals plant

Marconi-Vorlich oil and gas field

Operator: SABIC Value: US$20bn The development will process 400,000bbl/d of crude oil into 9MMtpa of chemicals and base oil. KBR has been selected as the second project management contractor to provide PreFEED, FEED and PMC services to develop the complex.

Operator: BP Value: US$410m BP has made an FID to develop the Vorlich field, expected to peak at 11,000bbl/d of oil and 1.89MMcm/d of gas. A contracting strategy for the development is currently being finalised. WorleyParsons is the FEED contractor for a subsea tie-back from the Vorlich field to the FPF-1 FPSO.

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

SENEGAL

INDIA

GERMANY

Malicounda heavy fuel oil power plant

Gujarat onshore wind farm

Baltic Eagle offshore wind farm

Operator: Matelec Group Value: US$150m A power plant to be fuelled initially on heavy fuel oil, with an option to convert to gas as soon as gas becomes available. The project is located in Mbour, 85km from Dakar. Wärtsilä has secured a contract to engineer, manufacture and deliver a 130MW flexicycle power plant at Malicounda.

Operator: Sembcorp Energy India Ltd Value: US$350m Sembcorp Energy India Ltd secured a 300MW onshore wind project as part of an auction conducted by Solar Energy Corporation of India. Siemens Gamesa has been awarded an EPC contract to supply turbines and build the project.

Operator: Iberdrola Value: US$2.4bn The project is one of Iberdrola’s successful bids in the recent German offshore wind subsidy auction. The 476MW development will be in water depths of between 40 and 44 metres. The project will be located in the Baltic Sea 28km north of Rugen.

Creating PDF reports

After you’ve run a search, click the ‘select specific projects’ tab and tick the projects you wish to include in the report. In the ‘actions’ drop down click the ‘PDF of selected projects…’ option, name the report and click ‘Run Report Now’. You can see the report you’ve created by clicking ‘Reports’, then ‘Manage PDF Project Reports’ in the top menu. Coming soon. Some new time-saving features: • Re-run a report – a quick and easy way to make sure project info is up to date • Add and remove projects from a report – without having to re-run the search • Create a report definition and run it later • Edit report properties • Cancel the report

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New EIC members NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

C&P Engineering Services Ltd

ENKA

INTERKAB

Gorseinon Road Gorseinon Swansea SA4 9GE

Balmumcu Mah. Zincirlikuyu Yolu No:10 Beşiktaş Istanbul 34349, Turkey

INTERKAB House Links Place Aberdeen AB11 5DY

The Nominated Representative is Mr Paul Bunyan, Chief Executive Officer

The Nominated Representative is Mr Yavuz Akturk, Director

The Nominated Representative is Mr James Stevenson, Sales Manager

Telephone +44 (0)1792 897 002

Telephone +90 212 376 1000

Telephone +44 (0)1224 595 640

Email paul.bunyan@cpengineering.co.uk

Email yakturk@enka.com

Email james.stevenson@interkab.com

Web www.cpengineering.co.uk

Web www.enka.com

Web www.interkab.com

C&P Engineering Services provides integrated electrical instrumentation services and delivers complete projects and maintenance services to companies throughout the UK and internationally. From design through to procurement, construction, commissioning and handover, C&P is ideally placed to manage the whole EC&I engineering process, including documentation, commissioning, compliance and testing.

ENKA UK Construction Limited is a subsidiary of ENKA Insaat ve Sanayi AS which is a global engineering, procurement and construction company that designs and builds some of the world’s most complex projects.

INTERKAB is the brand name of International Cable Management Ltd, a leading service company in the management and supply of electrical cables and all associated electrical equipment across the oil and gas, petrochemical, power generation, shipbuilding, renewable and energy industries worldwide.

The company supports customers across a wide range of industry sectors, including the chemical, steel, oil, gas, petrochemical, pharmaceutical, power generation, renewable energy, including onshore and offshore wind, nuclear and other industrial industries. EC&I engineering services can be combined to provide the total EC&I engineering solution or divided into the following design and build, operation and maintenance, consultancy and training services: instrumentation, control and automation; high voltage and extra high voltage – 11kV, 33kV,132kV; low voltage electrical; hazardous area ATEX inspections and consultancy; SIS functional safety consulting; CompEx training services. Get in touch Share your news and views...

It creates and delivers innovative and integrated solutions for its clients with engineering, procurement, fabrication, construction, maintenance and project management services. Under its Engineering & Construction segment ENKA provides the full range of design and engineering, procurement, in-house welded fabrication, modularisation, construction, commissioning and start-up, operation and maintenance, and project management services.

INTERKAB has the skills, in-house resource and expertise to effectively service and support a wide variety of clients, from operators and engineering companies to equipment manufacturers and specialist contractors.

ENKA also owns and operates power plants in Turkey, real estate assets in Moscow and has other trading activities.

INTERKAB is project focused, supporting major operators and EPC contractors with requirements for standard, non-standard or project specification cables, offering clients all the capabilities of a manufacturer with the flexibility of immediate supply of standard products as a stockist.

ENKA UK, having a strong EPC know-how from ENKA group and combining this with the ability of finding finance for projects outside of the UK by using UK goods and services and with UK Export Finance’s support, makes it unique in its field.

INTERKAB offers clients a flexible manufacturing solution capable of producing a wide range of cable types to European, IEC, British, American, Russian and Australian specifications. INTERKAB provides immediate solutions for urgent requirements.

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New EIC members

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Process Systems International Ltd

STATS Group

Unidro S.p.A

STATS House, Tofthills Way Midmill Industrial Estate Kintore, Aberdeenshire AB51 0QG

Marina Square Reem Island Abu Dhabi City Abu Dhabi, UAE

The Nominated Representative is Mr Darran Pledger, Marketing Manager

The Nominated Representative is Mr Matheo Chamoun, Regional Manager BD

Telephone +44 (0)1224 772 461

Telephone +971 553 18 1949

Email tim@psilpump.com

Email darran.pledger@statsgroup.com

Email matheo.chamoun@unidro.com

Web www.psilpump.com

Web www.statsgroup.com

Web http://unidro.net

Process Systems International is a British pump company specialising in the design, manufacture and supply of individually engineered units for the API oil and gas, petrochemical and heavy chemical industries.

STATS Group is a market leader in the supply of pressurised pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries. STATS DNV GL type approved isolation tools provide leak-tight double block and bleed isolation that enables safe and efficient maintenance and repair of onshore, topsides and subsea pipeline infrastructure.

A global player in the oil and gas, chemical and power industries, Unidro’s mission is to bring value to EPC contractors and end users with its engineering experience and progressive technologies in water and waste water treatment, gas purification and special processes.

Unit 14 Northampton Science Park Kings Park Road Northampton NN3 6LG The Nominated Representative is Mr Tim Plumb, Sales & Commercial Manager Telephone +44 (0)1604 786 828

Specialising in the supply of vertical and horizontal centrifugal units tailored to its clients’ needs, rather than standard designs. Generally fabricated from dense billet materials for superior strength and extended lifespan, available in over 25 different materials of construction. Common applications include: • Low flow, high head designs • Molten sulphur, salts and metals • Drain drums and sumps • Hydrocarbons and sour service High standards of contract specific documentation, inspection, certification and testing – accredited to ISO 9001/2008. FPAL registration No 10041731.

STATS Group’s process plant solutions offer hot-work barriers and localised hydrostatic test tools to verify the integrity of welds or fittings, reducing system downtime, minimising environmental impact and increasing work site safety. Mechanical pipe connectors replace the need for welding, significantly reducing expenditure and associated risks with hot-work.

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Member news Balmoral raises renewables ambition with Norwegian acquisition

Balmoral Offshore Engineering has acquired Norwegian manufacturer, Seaproof Solutions, to accelerate its expansion into the offshore renewables market. The move is seen by both companies as a strategic development built on the strengths of the constituent parts. Seaproof holds a market leading position for elastomer products in the offshore renewables sector while Balmoral enjoys a reputation for materials innovation and product development.

This acquisition will help our drive into the developing renewables sector. The combination of Balmoral’s innovation and processing expertise with Seaproof’s considerable market presence presents a compelling offering. Bill Main, Financial Director, Balmoral

Established in 1989, Bergen-based Seaproof designs and manufactures advanced cable protection systems, bend stiffeners and flexible J-tubes. Balmoral Offshore Engineering, part of Aberdeen-based Balmoral Group, made the acquisition for an undisclosed sum and will retain the current management team and workforce totalling some 37 people at the Seaproof plant. The company will continue trading and manufacturing under that name as a division of Balmoral.

Henrik Bang-Andreasen, Founder and CEO of Seaproof, said, ‘We look forward to harnessing Balmoral’s undoubted engineering expertise and experience. The company’s track record is second to none and that will bring immediate benefits to Seaproof’s existing client base.’ The acquisition comes at a time of growth for Balmoral with the recent opening of its £20m subsea test centre in Aberdeen, said to be the most comprehensive of its kind, a £10m investment in ACE Winches and the completion of a £10m state-of-the-art industrial tank manufacturing facility in South Yorkshire in 2017.

For more information: www.balmoraloffshore.com

Boulting welcomes cohort of new apprentices Engineering solutions provider, Boulting has recruited seven new apprentices across its business.

The new apprentices have taken up positions in electrical installation, mechanical installation and the business’ panel shop in Warrington. Boulting’s apprenticeship programme has been designed to train and develop individuals to become skilled in and knowledgeable about their chosen profession. The programme, which can last up to four years depending on the position, offers challenging, varied and hands-on experience, allowing candidates to lay down strong foundations for their future career. On successfully completing the programme, apprentices obtain an NVQ Level 3 and have the opportunity to continue their career at Boulting. The majority of apprentices that join Boulting take on permanent roles.

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‘In April 2017, the government introduced the Apprenticeship Levy in a bid to tackle the growing skills gap,’ said Lucy Speed, HR advisor at Boulting. ‘With a predicted shortfall of 1.8 million engineers by 2020, both the government and those working in the industry need to do their part. We’re delighted to have welcomed seven new apprentices to the Boulting family and will be watching their progress in earnest.’

For more information: www.boulting.co.uk

Capula achieves RoSPA Silver Award

Capula, part of the Imtech group, has been awarded a silver RoSPA Award in recognition of its excellent health and safety practices. RoSPA presents highly-regarded accolades to businesses and organisations that have shown commitment to accident and illhealth prevention. Matthew Haubus, Engineering and QESH Manager at Capula, commented, ‘We have a safety first culture that ensures health and safety is constantly at the top of our agenda, from senior managers through to all our employees via a comprehensive programme of behavioural workshops, training and awareness. We continue to see an improvement year-on-year.’ The RoSPA Awards are one of the most highly-respected in the health and safety arena, with almost 2,000 entrants every year. Capula will collect its award at a ceremony to take place on 4 July at the Hilton Birmingham Metropole Hotel.

For more information: www.capula.co.uk

Member news

KCA Deutag awarded Ringhorne platform contract extension Global drilling and engineering contractor KCA Deutag has announced that it has been granted an extension to its current drilling contract on the Ringhorne platform by operator Point Resources. The contract extension is for the provision of drilling operations and maintenance services on the Ringhorne platform operating in the Norwegian North Sea. It has an initial term of four years with the option to extend by two further periods of two years each.

For more information: www.kcadeutag.com

Nylacast and partners scoop prestigious Rushlight Award

Nylacast and collaboration partners TTI, Brunel University and the European Marine Energy Centre received the Rushlight Responsible Product or Service Award at a ceremony which took place at the Royal Geographical Society in London.

Now in their 11th year, the Rushlight Awards are a celebration of new technology, innovation and best practice across all industries throughout the UK, Ireland and internationally. Nylacast and its partners were presented with the award in recognition for its development of innovative mooring connectors designed under the Specialised Thimbles for Offshore Renewable Marine Energy (STORM) project, funded by Innovate UK. The STORM project focuses on developing a lightweight connector using advanced materials technology, specifically a hybrid material. The 2018 Rushlight Awards were attended by national and international guests and contributors to the energy industry and included Claire Perry, Minister of State for Energy and Clean Growth.

For more information: www.nylacast.com/offshore

Photo Øyvind Hagen Statoil

Rune Lorentzen, President of Offshore commented, ‘KCA Deutag is delighted to have been awarded this contract extension. We have been the drilling contractor on the Ringhorne platform since it was first commissioned back in 2002 and we are pleased that the quality of our performance has once again been recognised.’

With over 40 years of platform drilling experience, KCA Deutag is one of the world’s largest platform services operators. The group is currently responsible for the management of drilling and maintenance operations on 32 platforms and two jack ups. KCA Deutag has been operating in Norway since the 1970s and in April announced that it had been awarded a new drilling contract on five of Statoil’s platforms operating in the Oseberg and Kvitebjørn fields.

Statoil’s Osberg Field Centre

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Member news

R&M Electrical Group wins Queens Award for Enterprise Exporting products to more than 80 countries and being prepared to operate in difficult and hazardous locations has won Southampton based R&M Electrical Group a Queen’s Award for Enterprise 2018 in the International Trade category. A strategy of global alliance has been the key to R&M’s successful export growth, which now accounts for around 50% of its annual turnover. Group MD William Crook said, ‘Winning the Queen’s Award for Enterprise is a terrific achievement and a great honour. ‘It’s impossible for us to have a direct presence in many of the locations that our clients are looking to develop. So, we have strategic alliances with a number of independently owned companies in countries around the world. ‘Together we pool our resources, customer and supplier relationships and provide our clients with allencompassing supply chain solutions geared specifically for multi-location projects. This has allowed us to demonstrate a strong financial footing and the wherewithal to target many of the multi-billiondollar projects that the major oil and gas operators are developing.’ R&M Electrical Group Ltd has six UK based specialist distribution branches as well as a branch in Azerbaijan and subsidiaries in Kazakhstan, Miami, Singapore, Thailand, Indonesia, the Philippines and Korea. Now in its 52nd year, the Queen’s Awards for Enterprise are one of the most prestigious business awards in the country.

For more information: www.rm-electrical.com

Roxtec supplies Scotland’s largest offshore wind farm Greater Manchester manufacturer Roxtec has supplied a package of specialist cable sealing solutions to the Beatrice offshore wind farm, the largest in Scotland.

The firm delivered fireproof and watertight seals to secure high voltage cables on substations within the wind farm. The £2.8bn project is located in the Outer Moray Firth, around 13km from the Caithness coast. Once fully operational the 84-turbine operation is expected to generate up to 588MW, enough to power 450,000 homes. Roxtec UK Marine and Offshore Director John Kayes said, ‘Roxtec was selected for a number of reasons. Our sealing solutions provide certified protection and offer huge flexibility for multiple cables and pipes of different sizes. Our seals are A-60 fire rated and watertight according to marine classification. Moreover, they are built with spare capacity for future upgrades while our engineers provide close quarter design support to ensure solutions are tailor made for each individual project.’ Onshore construction of the project began in Moray in May 2016, while offshore developments commenced in April 2017. The wind farm is expected to be fully operation in 2019.

For more information: www.roxtec.com

Sonardyne lands double Allseas order

Allseas, a global leader in offshore pipeline installation and subsea construction, has ordered two of Sonardyne International’s technology systems for its 236-metre-long lay vessel, Lorelay.

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Photo Sonardyne

The GyroUSBL transceivers will be installed on the end of the Lor

The Lorelay will use Sonardyne’s GyroUSBL acoustic positioning technology in conjunction with Ranger 2 USBL (Ultra-Short BaseLine) topside. The GyroUSBL transceivers will be installed on the end of the Lorelay’s stinger to acoustically track an ROV deployed to ensure a pipe is accurately touching down in the permitted corridor. Mounting a GyroUSBL on a stinger is now a widely adopted practice among pipelay vessel operators, with the technique having first appeared on the market in 2013. The Lorelay will be the third vessel in the Allseas fleet to be equipped in this way, with systems already in operation on the Pioneering Spirit and Solitaire.

For more information: www.sonardyne.com

Trelleborg launches next generation Firestop™ material

Trelleborg’s offshore operation has launched its next-generation Firestop™ material. The newly developed fire-resistant material is thinner and lighter than any current passive fire protection materials available to the market.

New EIC members Social media Member round news up

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – (EIC) Energy Industries Council

relay’s stinger to acoustically track an ROV

Ben Erik Jansen, Business Development Director with Trelleborg’s offshore operation based in Norway said, ‘We developed the next-generation Firestop™ material at our in-house laboratory in Norway. Based on proven technology, the material is lighter and thinner than our first generation material. The newly formulated compound enables us to reduce both costs and lead time for our customers. We intend to identify new applications for the material in other markets.’ In addition to developing the new material, an internal investment programme was initiated to test and certify all existing Firestop™ applications for the next generation Firestop™ material. Firestop™ is a passive fire protection material used to protect personnel and equipment by minimising fire escalation. This provides time to evacuate people, close down critical equipment and for responders to gain control of a fire. The certified rubber-based material protects structures from exceeding critical temperature limits. The dampening, noise reducing flexible nature of Firestop™ can also protect equipment from vibrations, collisions, explosions and even earthquakes.

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 In 3 weeks EIC staff will be cycling 600 miles from our Aberdeen office to our London office to raise £20,000 for @CR_UK and @TheOceanCleanup

The EIC @TheEICEnergy The final panel session brings #EICConnect Energy Vietnam to a close. Over 70 British companies were in attendance making it the largest UK energy delegation to the country

(EIC) Energy Industries Council Hear more about what’s going on in South East Asia. Book your place on our free webinar and find out about contract activity, project developments and business opportunities

For more information: www.trelleborg.com/offshore

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June 2018

Forthcoming events 5 June HSE Training

The Machine Directive & CE Marking Amtri Veritas, EIC London

5 June Business Presentation

Midstream Sector Update EIC Houston

6 & 20 June Management Course

EICDataStream training Online

6 June Business Presentation

Agoria Energy Technology Club BluePoint, Brussels

7 June Sector Showcase

LNG Showcase

DoubleTree by Hilton Edinburgh

7 & 20 June Management Course

EICDataStream Overview EIC Houston

11 June Management Course

GDPR Foundation Training Compliabilitee, EIC London

12 June Management Course

EICDataStream Overview EIC Kuala Lumpur

14 June Management Course

Understanding Contract Terms EIC London

Get in touch Share your news and views...

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

18 June Business Presentation

Mozambique and South Africa Webinar

19 June Export Showcase

Opportunities in Norway Aker Solutions, Aberdeen

20 June Corporate Entertainment

EIC Summer Networking Tattershall Castle, London

20 June Technical Workshop

Introduction to Compressors Siemens, Camberley

20 June Business Presentation

75th Celebration with Emerson Emerson Solutions Centre, Aberdeen

21 June Industry Overview

Fundamentals of Oil and Gas EIC London

26 June Management Course

GDPR Foundation Training Compliabilitee, EIC Aberdeen

26 June Overseas Exhibition

World Nuclear Exhibition (WNE) Paris Nord Villepinte

28 June Technical Workshop

Introduction to Energy from Waste Lakeside EfW, Slough

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

Forthcoming events

July/August 2018

O NO KI W NG

4 July Technical Workshop

Introduction to Gas Turbines Dresser-Rand, University of Lincoln

4 & 18 July Management Course

EICDataStream training Online

5 July Management Course

GDPR Foundation Training Compliabilitee, EIC Hartlepool

10 July Industry Overview

Fundamentals of Subsea EIC London

10 July Management Course

EICDataStream Overview EIC Kuala Lumpur

11 July Industry Overview

Fundamentals of FPSOs EIC London

11 July Business Presentation

UK Export Finance Briefing Nassima Royal Hotel, Dubai

1 August Management Course

EICDataStream training Online

2 August Industry Overview

Fundamentals of Shale Gas Koyos Resources, EIC London

14 August Corporate Entertainment

Curry and Connections Evening Mint Leaf Restaurant, Dubai

R UR EG IS IN TE TE R RE ST

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Overseas events Another successful year at OTC

After an action-packed week at OTC 2018, where we celebrated our 20th year of hosting the UK pavilion, we think it’s safe to say… what a show! From exclusive one-to-ones, drinks receptions (sponsored by CRCEvans and Pipeline Induction Heating) and VIP guests (including ADNOC’s Head of Procurement and the British Consul General, Deputy Ambassador), to first day sell outs and a £1.2m signed deal, the feedback we’ve received from our exhibitors has been incredible. Stay tuned for the OTC 2019 launch. Contact lucia.durante@the-eic.com to register your interest.

‘As in previous years, the quality of leads and introductions supported by the EIC at OTC 2018 was excellent. A great example of this was an on-stand introduction to senior ADNOC procurement staff. It’s a real advantage to PJ Valves and other UK companies to receive such excellent support from the whole EIC team who are so focused on generating value for its members. Thank you all.’ PJ Valves

Recent launches and fast approaching deadlines Rio Oil & Gas 2018

24-27 September 2018 Rio de Janeiro, Brazil Rio Oil & Gas is the leading industry event in Latin America, attracting senior procurement executives, project managers, specifiers and engineers, all who will be looking to visit the UK pavilion to identify UK capabilities for offshore oil and gas projects in South America. Fixed grant amount: £2,500 for eligible companies (10 available on a first come first served basis)

ADIPEC 2018

12-15 November 2018 Abu Dhabi, UAE ADIPEC delivers a world class oil and gas show bringing together professionals with real buying power making it one of the world’s biggest and most lucrative oil and gas exhibitions. Over US$9bn worth of contracts were signed during the four days of ADIPEC 2017, a figure which is expected to grow in 2018. Fixed grant amount: £2,500 for eligible companies (14 available on a first come first served basis)

Offshore South East Asia

27-29 November 2018 Singapore The OSEA International Conference is regarded as one of the preferred knowledge exchange platforms in the region and with over 18,000 attendees and more than 1,000 exhibitors in 2016, it is one of the region’s leading oil and gas industry events. A not to be missed event for oil and gas industry professionals in 2018. Fixed grant amount: £2,500 for eligible companies (10 available on a first come first served basis)

Offshore Europe 2019

3-6 September 2019 Aberdeen Taking place every other year, Offshore Europe is the leading E&P event in Europe, attracting 35,000+ technical experts, international market leaders and suppliers. Taking place in the newly renovated Aberdeen Exhibition and Conference Centre, this is an internationally renowned industry event not to be missed.

For more information overseas exhibitions, please contact the EIC Overseas Events team... Get in touch Share your news and on views... Email newsdesk@the-eic.com overseasevents@the-eic.com • Phone • Phone +44 (0)20 +44 7091 (0)20 8600 7091 8600

Connect with global opportunities

The Energy Industries Council (EIC) is the UKâ&#x20AC;&#x2122;s largest energy trade association for the supply chain EIC Connect is our flagship event for business opportunities EXHIBIT I SPONSOR I CONFERENCE I NETWORK I WIN www.the-eic.com/eicconnect

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.

Your guest speaker With an unmatched versatility, Jon Culshaw is seen by many as being Britain’s best impressionist with a repertoire of over 350 voices covering politics, sport and celebrities. He is a regular guest on radio and TV comedy and chat shows and frequently appears on election coverage.

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.

BOOK TODAY

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

Sponsorship opportunities

Details of award categories and how to enter will be announced soon.

The EIC and Robert Gordon University Rising Star MBA Award

We are proud to once again partner with Robert Gordon University’s (RGU) MBA Programme at Aberdeen Business School to offer the EIC-RGU Rising Star MBA Award, designed to develop leaders of tomorrow in the oil and gas sector. The winner of the award will receive full tuition fees (worth £17,000) for the MBA Oil and Gas Management course at Robert Gordon University.

All students will attend RGU’s renowned MBA Leadership Week event and complete a business consultancy project for their employing organisation as part of the course.

Second prize is a £5,000 scholarship towards tuition fees, third prize is a £2,500 scholarship, and all applicants that meet the entry criteria for the course will receive a £1,700 scholarship towards tuition fees.

The course is accredited by AMBA (Association of MBAs) and RGU was recently awarded a Gold rating in the Teaching Excellence Framework.

Winners can choose to pursue the executive part-time MBA Oil and Gas Management course which is delivered at RGU’s Garthdee campus, or the online distance learning MBA Oil and Gas Management course, which can be studied from anywhere in the world.

If you have a rising star on your team who you think deserves this incredible opportunity on an internationallyrecognised, AMBA-accredited MBA qualification, please download an application pack from www.the-eic.com/Events/EICNationalAwardsDinner/ Awards/EICRGURisingStarMBAAward.aspx

Launched last year, Daniel Gear, of Petrofac, who is studying for his MBA Oil and Gas Management on an executive parttime basis, was the first recipient of the award.

Deadline for applications is 11 June 2018. Winners will be announced at the EIC National Awards Dinner in London on 11 October 2018.

www.the-eic.com/Events/EICNationalAwardsDinner/Awards/EICRGURisingStarMBAAward.aspx Sign up for the EICOnline newsletter

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Spotlight on technology Balmoral Offshore Engineering

www.balmoraloffshore.com

BALMORAL DURAFLOAT LDV Balmoral Offshore Engineering launched a new drill riser buoyancy system that incorporates low drag vibration and suppression capabilities on the opening day of OTC 2018. Drill risers extend from the vessel to the BOP while buoyancy modules fitted around the riser provide uplift and effectively reduce the submerged weight of the joints. However, drilling risers are prone to potentially catastrophic motions caused by subsurface vortex induced vibration and drag. Balmoral developed the Balmoral DuraFloat LDV and Balmoral DuraGuard LDV, integrated and retrofit VIV suppression solutions respectively, to prevent such motion occurring. Both products have patents pending. ‘The new system offers optimum uplift while eliminating riser motion and high drag levels without compromising performance, safety or structural integrity,’ said Fraser Milne, Engineering and Projects Director, at the launch. During the development process wide-ranging computational fluid dynamics and fluent modelling was carried out by Balmoral while comprehensive tank trials were undertaken by SINTEF Ocean to provide the information required for final product design. Get in touch Share your news and views...

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

Hydrodynamics inspired by nature

The ground-breaking LDV profile was inspired by the outer structure of a sea turtle’s upper shell which has been sculpted and proven over millennia to provide a highly efficient and low drag hydrodynamic structure. Balmoral’s technical team simulated this natural phenomenon by implementing biomimetic engineering resulting in a design that brings VIV and low drag performance to its products. The revolutionary hex design eliminates the need for ancillary suppression equipment to be attached to the riser offering significantly improved timings when running and removing drill stacks. ‘Our new system will significantly reduce drag and load during riser deployment, recovery, disconnection and hang-off while offering a substantial reduction in VIV fatigue damage,’ concluded Milne. Any EIC members who wish to be profiled in this section please contact Edward White, EIC Editor and Communications Manager edward.white@the-eic.com

EIC training

What is GDPR and how will it affect your business? The General Data Protection Regulation (GDPR) is a new single set of rules that aims to strengthen and unify data protection. Building on the Data Protection Act 1998 (DPA), it provides new rights for data subjects around transparency, notification, access, erasure and portability.

Any company that stores or processes personal information about EU citizens within EU states must comply with the GDPR, even if they do not have a business presence within the EU.

So, what are the key changes?

Definition of personal data – GDPR broadens the definition of personal data to include new personal identifiers such as IP addresses, biometric data, genetic data, cultural and religious beliefs and economic status. This update recognises advances in technology since the DPA and the varying types of information that companies now collect. Consent – under the DPA, individuals have always had to consent to the use of their data, however, what has not been specified is the form of the consent and how it should be requested. Under GDPR you must now provide individuals with clear information on how their data is to be used and stored so that they can make an informed choice, before actively opting in. Default and pre-ticked opt-in boxes are a no-go, consent must be explicit. Be sure to keep track of your consent and make it simple for consent to be withdrawn.

Rights of data subjects – one of the main roles of GDPR is to give individuals greater control over their data and how it is used. Individuals will now have the right to be informed about the use of their data, gain access to and rectify their data, port their data to another organisation, object to or restrict its processing, or even erase the data and ‘be forgotten’. As a business you must be able to meet these rights and action requests within allotted timescales. Breach notification – certain personal data breaches must be reported, especially if they will negatively impact your customers. These breaches must be reported to the relevant authority without delay and within 72 hours, in order to do this, you need to have an effective breach process in place and be sure to record all breaches, reported or not. Penalties – if your business does not comply you could face maximum fines of €20m or 4% of your annual turnover. These fines are discretionary though and must be ‘effective, proportionate and dissuasive’ to the misconduct.

The only way to ensure that you avoid penalties and protect your business is to protect customer data and comply with GDPR. To help you better understand this important subject the EIC is hosting training courses in each region, London, Teesside and Aberdeen. Run by Data Protection Consultant Peter Blenkinsop, this course will cover the main parts of the regulation, make clear the main principles and obligations placed on organisations and emphasise what actions your business needs to take to be compliant.

Booking now

GDPR Foundation Training Monday 11 June 2018, EIC London Tuesday 26 June 2018, EIC Aberdeen Thursday 5 July 2018, EIC Teesside

To find out more or to book your place please visit our website www.the-eic.com/Training or contact: emily.light@the-eic.com

Get inup touch OurEICOnline training courses are also available in-house. To find out more please contact Emily Light... Sign for the newsletter Visit Emailwww.the-eic.com/Forms/NewsletterSignup emily.light@the-eic.com • Phone +44 (0)20 7091 8600

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UK and Europe news Regional update

Last month we managed member company Phoenix Contact’s cyber security breakfast briefing. The event provided essential advice on how to keep Terri S ylveste r data and processes safe as developments such as cloud storage and increased interconnection have created new opportunities for cyber criminals. If you would like the EIC to manage and host an event on your behalf, please get in touch to find out more. In May our popular training course Bidding to Win was well attended and as usual received great reviews: ‘Found it very refreshing to get a third-party expert view on this subject to help assess and review how I approach future proposals, tenders and bids.’ ‘Well delivered and all areas were covered in just enough detail.’ We’ll be running it again on 14 November in London. We can also deliver it as an in-house course. For details on this and other upcoming courses please visit: www.the-eic.com/Training/TrainingSchedule.aspx On 24 May, in partnership with the British Chamber of Commerce in Argentina, the EIC welcomed speakers from operators YPF and Pan American Energy among others to our Export Showcase: Opportunities in Argentina where attendees were able to hear first-hand about opportunities and support for UK companies entering the market. Our team in the northern region will be moving offices on 7 June, leaving Wynyard Business Park for pastures new at The Innovation Centre in Hartlepool. We’d be delighted to welcome you to our new abode at a members’ update on the morning of Tuesday 26 June: Energy Industries Council Office 314, Hub Two The Innovation Centre Queens Meadow Business Park Hartlepool TS25 5TG We’ll also be running member updates in London (27 June) and in Aberdeen (20 June) which will be cohosted with Emerson who are celebrating their heritage as a long serving EIC member in our 75th year by hosting a special event at their premises in Aberdeen. Terri Sylvester, Head of UK & Europe terri.sylvester@the-eic.com Get in touch Share your news and views...

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Regional news

UK onshore wind lifeline

The Minister of State for Energy and Clean Growth Claire Perry has said that the government is working hard to resolve issues around onshore wind to allow projects to bid in the next contracts for difference subsidy auction, scheduled for spring 2019. Onshore wind is currently locked out of the subsidy scheme.

Flexibility first in Belgium

Centrica subsidiary REstore has deployed an 18MW Tesla battery paired with 14MW of aggregated demand response in Belgium, in Europe’s first project of its kind. REstore will use the flexible resource to provide grid services to Belgian transmission system operator, Elia, including primary reserve and frequency regulation.

EDF wind sell-off

French energy company EDF is planning to sell a 49% stake in a portfolio consisting of one offshore and 23 onshore operational UK wind farms. The sale could generate as much as £600m. In May, EDF bought the rights to develop a major Scottish offshore wind farm, Neart na Gaoithe, for €500m from Mainstream Renewable Power.

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

23 23

Middle East news Regional update

It will be interesting to see how the other parties to the agreement, namely China, France, Russia, the UK, Germany and the EU, will react. The overwhelming opinion is that it might be ‘business as usual’ although initiatives like that taken by Total for South Pars phase 11, who have already invested over £100m, are likely to be somewhat streamlined. It will also bring into question how Iran might react. This geo-political activity does of course create a lot of commentary and headlines, however, the business reality is that opportunities, especially for UK companies, remain positive, something that was emphasised during the recent Iran Oil Show. Our very own Fabrice Abalain stepped up and managed the UK pavilion and reported how positively our presence was received. An example of this was Iran’s oil minister making an effort to meet the British ambassador within the confines of the pavilion on the first day. Anyway, let’s keep our fingers crossed and see how things will eventually pan out. In other news, we were delighted to be invited by Euro Petroleum Consultants to deliver a paper at the 8th Russia & CIS Oil & Gas Executive Summit scheduled to take place in Sochi later this month on the 28th and 29th. We are confident that it will be a great occasion to improve our profile across the Russian downstream community. EIC Downstream Analyst Dina Abieva (see her sector analysis on page 2) will be presenting an overview of clean fuels projects plus power trends and their impact on European markets.

Regional news

As this is being written, we are waiting for an announcement from the US as to their position on Iran. The general consensus is that they will take a decision not to Terry W illis extend waivers on sanctions that were lifted as a result of the Joint Comprehensive Plan of Action (JCPOA) which was implemented in January 2016.

Kuwait has extended the bid deadline for the planned gas sweetening facility in west Kuwait to 3 June, according to industry sources. The bid deadline was previously 1 May. A pre-tender meeting for the project back in January was attended by the following companies: CPECC, Entrepose Contracting, Petrofac, Saipem, Samsung Engineering, SK E&C, SNC-Lavalin, Spetco and Tecnicas Reunidas. Seven of the companies attended a subsequent site visit. Entrepose Contracting and SNC-Lavalin attended the meeting but did not attend the site visit. A total of 29 companies are pre-qualified to bid for the contract. The contract consists of two portions: the gas facility itself and a sulphur recovery unit.

Forthcoming events

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

Finally, I couldn’t sign off without making a quick comment on our EIC Connect Oil, Gas & Beyond event. You can judge for yourself how successful the day was by viewing some of the footage which has been uploaded to YouTube: www.youtube.com/watch?v=2uPB907mUxw Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Sign up for the EICOnline newsletter

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Asia Pacific news Regional update EIC Connect Energy Vietnam 2018 was successfully held in Ho Chi Minh City on 17 May.

A total of 180 delegates Azman including EIC members, Nasir key players from Vietnam’s energy sectors and invited guests from PetroVietnam (PVN) and Electricity Vietnam (EVN) were at the one-day event.

Regional news

PETRONAS 2018 exploration bidding round

Eighteen speakers from the oil and gas, power and renewables sectors gave presentations on current and upcoming energy projects. The guests of honour were the Minister of International Trade for Vietnam and the Permanent Under Secretary for the UK’s Foreign and Commonwealth Office, Sir Simon McDonald. There were four panel sessions moderated by EIC CEO Stuart Broadley and the Director of VietBid on topics ranging from power plants, wind and solar, LNG and oil and gas projects. There was also one special session where four companies from the UK presented their latest technologies to the audience. Over 100 one-to-one appointments were scheduled between UK delegates and Vietnamese companies. After the success of EIC Connect Energy Vietnam we are gearing up for EIC Connect Oil & Gas Malaysia which will be held on 31 October 2018. We hope to partner on the event with PETRONAS and the British-Malaysia Chambers of Commerce. In June-July we shall organise our annual Breaking of Fast session with EIC members and guests. Also in July we are likely to organise a renewables event in collaboration with Scottish Development International and the Malaysian Oil & Gas Services Council. The objective of this event is to promote UK technologies in power and renewables to Malaysian companies. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

Malaysia’s national oil company PETRONAS has launched its 2018 exploration licensing round for nine blocks – two off Peninsular Malaysia, four offshore and onshore Sarawak and three off Sabah. Formal contract signing is anticipated by the end of the year.

Fifty Indonesian upstream projects to start production

According to SKK Migas, about 50 upstream oil and gas projects are targeted to start production in 2018-27. The total investment is projected to be more than US$11.93bn, not including investment in the development of the Abadi gas field in the Masela Block and the Gehem and Gendalo fields.

Taipower plans to issue more green bonds

Taiwan Power Co (Taipower) plans to issue more green bonds in a sign of increasing investor interest in the country’s renewable energy infrastructure, which aims to sell to sell US$82.47m worth of green bonds in mid2018. The proceeds will be used to develop renewable energy, including an offshore wind power programme, a solar power project and hydroelectric power.

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Keeping you up to date with energy news from around the world

25 25

South America news Regional update

Major oil players such as Chevron, PETRONAS, Shell, Statoil as well as state-owned company YPF have all announced investments to develop the Vaca Muerta Clariss e Roch shale gas reservoirs in a Argentina. An annual investment of US$10bn will be needed to tap resources in this formation, which is estimated to hold up to 308Tcf. Argentina is the second largest economy in South America and the fourth-largest commercial scale shale gas producer in the world after the US, China and Canada. Taking into consideration the importance of Argentina as a key energy player in the region, the EIC is organising an oil and gas trade mission to the country to take place on 1-5 October, with registration now open. Attendees will meet decision makers from key operators and EPC contractors, learn more about current projects and the essentials of how to do business in the country. For more information please visit: www.the-eic.com/Events/ OverseasDelegations/Argentina.aspx

In April, we had the pleasure to host a business presentation from one of Brazil’s largest EPC contractors Andrade Gutierrez, presented by Julia Maya, Offshore Business Development and IOC Accounts Manager. Andrade Gutierrez is involved in the construction of major energy projects. One of them is the 1.2GW GNA I combined cycle power plant located at the Açu port complex in the state of Rio de Janeiro as well as the upgrade of Axion’s Campana refinery in Argentina. This month we’re holding two workshops. On the 7th, DNV GL will explain Brazilian offshore regulations. Then on the 12th we’ll hold a Fundamentals of FPSOs course. Anyone following oil and gas news in this part of the world will know that FPSOs are already a big part of the sector and their importance will continue to grow. If you need any assistance or advice in the region or for more information about upcoming events, please contact me via my email address below. Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

Regional news

Petrobras to sell stakes in Brazilian refineries

The company plans to sell 60% of its participation in four refineries and 12 storage and loading terminals across the country. Two packages will be put on offer: the first includes the RLAM and RNEST refineries and five terminals in Brazil’s Northeast Region, while the second package covers the REPAR and REFAP refineries in addition to seven terminals in southern Brazil. Regarding the RNEST refinery, Petrobras expects its future partner to fund the construction of a second refining train, which will add a processing capacity of 115,000bbl/d. IOCs with business in Brazil such as BP, Chevron, ExxonMobil, Shell and Total are possible buyers, in addition to the Chinese players CNPC and Sinopec.

Brazilian think-tank to propose legal framework for offshore wind

The Centre for Strategies in Energy and Natural Resources (CERNE), a local think-tank, is drafting a legal framework for the future development of offshore wind farms in Brazil. The proposal will assess topics such as environmental evaluation, electricity trading, grid connection and the licensing of offshore areas for future projects. CERNE’s study is expected to be presented to Brazilian lawmakers in the first half of 2019.

Forthcoming events

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

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North and Central America news Regional update In May, the EIC hosted the UK pavilion at OTC for the 18th year, during which we offered multiple opportunities to network with key industry stakeholders within the margins of the conference and exhibition.

Amand

a Duho

This included a networking reception sponsored by EIC member, CRC-Evans, one-to-one appointments with Schlumberger, the Canadian Trade Commission, UK Export Finance and DITâ&#x20AC;&#x2122;s commercial officers from Brazil, Guyana, Mexico, Trinidad and Tobago, and Venezuela. We also hosted representatives from Atkins, Dragados Offshore, Massy Wood, McDermott, Pemex Procurement International, SBM Offshore, SNC-Lavalin, Subsea 7 and TechnipFMC. For more details on exhibition packages for OTC 2019, please contact our Overseas Events Co-ordinator lucia.durante@the-eic.com To start off the second quarter, we welcome Bechtel, Kinder Morgan and Steelhead LNG to our office for our Midstream Sector update on 5 June 2018. During this EIC member only event the speakers will discuss opportunities in the midstream sector, providing key project information and identifying business opportunities. EICDataStream is currently tracking just under US$675bn in potential midstream project CAPEX across the North American region. By the way, if you are in need of EICDataStream assistance or training, please contact our North and Central America Regional Analyst jake.gillan@the-eic.com We will host our third EIC Connect Oil & Gas USA Advisory Committee meeting this month. Taking place in Houston on 6 September 2018, the event includes one-to-one meetings with operators and contractors, five contractor briefings to outline their pre-qualification processes and supply chain gaps, an opening plenary focused on global and regional project updates, two conference sessions with NOCs, IOCs and EPCs, and an innovation showcase, which will allow four to five exhibitors to present their innovative products/ services to a panel of operators and contractors. Keep an eye on the event webpage for updates www.the-eic.com/EICConnect/OilGasUSA.aspx Exhibition and delegate space is limited, so book early! Many thanks to our Lanyard Sponsor, EIC member, William Hare, for its continued support of our flagship event. Other sponsorship opportunities are available, please contact me to find out more. Get in touch Share your news and views...

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

Clarisse Rocha presenting in the UK pavilion at OTC

Houston plays a pivotal role in the global energy industry and our EICLaunchPad services provides a gateway to doing business in the Americas. We currently have three office suites available, as well as virtual and hot desk services. To find out more, please contact natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com

Regional news

Shell announces FID for deepwater GOM development

Shell has taken a final investment decision (FID) on its Vito offshore oil field development in the US Gulf of Mexico. The deepwater project covers four blocks in the Mississippi Canyon area and will comprise eight subsea wells with deep (5,486m) in-well gas lift. Vito has become a template for low-CAPEX major project developments. Following a period of close collaboration with a selected group of vendors, original project costs have been reduced by 70% to a breakeven point of below US$35/ barrel. Installation of the Sembcorp Marine-designed topsides is expected in late 2020 with full production of approximately 100,000 barrels of oil equivalent per day in 2021.

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

Oil & Gas USA 2018 Innovative solutions and market opportunities 6 September â&#x20AC;˘ Norris Conference Centers, Houston

Join our flagship event to:

Find out how major operators and contractors see future market conditions

Discover the regionâ&#x20AC;&#x2122;s new technologies and emerging sectors

Understand the goods and services required on oil, gas and offshore wind projects

Identify where the key projects are located and the easiest routes to market

Learn how to pre-qualify as a vendor

Meet potential local partners from the North & Central America region

Exhibit Open exhibition stands are available for companies to showcase innovative solutions, and include: > Two full delegate places > 8'h solid color panel wall, furniture package, and company name displayed on header

Sponsor

Attend

Highly visible sponsorship packages that include:

Delegate places include the following benefits:

> Two full delegate places

> Access to all areas of the event

> Primary logo opportunity in your sponsored area > 10% discount off an exhibition stand

> Opportunity to book one-to-one appointments with buyers

> Opportunity to invite key clients at a discounted price

> First sight of one-to-one appointments

> Multiple networking opportunities with industry peers

> First sight of one-to-one appointments

> Web and print promotion

> Copies of the presentations after the event

> Web and print promotion 2017 Speakers Included:

For more information: www.the-eic.com/eicconnect

OW N K O O B

DUBAI KUALA LUMPUR RIO DE JANEIRO

EIC Head Office and Southern Region 89 Albert Embankment London SE1 7TP UK Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com

EIC Northern Region

Office 314, Hub Two The Innovation Centre Queens Meadow Business Park Hartlepool TS25 5TG UK Tel +44 (0)1429 874 512 Email teesside@the-eic.com

EIC Scotland

72 Carden Place Aberdeen AB10 1UL UK Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com

www.the-eic.com

EIC Middle East

PO Box 54455 Office No 5WA 228 West Wing Building 5A Dubai Airport Free Zone Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com

EIC Asia Pacific

Lot 17-01 Level 17 Menara HLA No 3 Jalan Kia Peng 50450 Kuala Lumpur Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com

@TheEICEnergy

EIC North and Central America

Suite 925 11490 Westheimer Houston Texas 77077 USA Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com

EIC South America Ed. Manhattan Tower 26th Floor Avenida Rio Branco 89 20040-004 Rio de Janeiro - RJ Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

(EIC) Energy Industries Council