Inside Monthly news for EIC members November 2017
EIC National Awards Dinner 2017
One-to-one
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20 -20 17 Sh k,
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The latest oil and gas updates from East and South Africa
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IC LA ON ST NEC TO C T P BO HA NR O NCE 201 K 7
Sector analysis
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TÜV Rheinland Group’s Ansgar Kranz talks about the company’s asset management programme
Find out who took home the prizes this year
www.the-eic.com
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Sector analysis
East and South Africa: a tale of two regions Recent discoveries of oil and gas across East Africa over the last decade have made the region a key frontier for hydrocarbon exploration. Prospective projects could spell billions of dollars in government revenue which, if managed responsibly, could finance a much-needed overhaul of infrastructure and social services, ultimately transforming the region. Offshore there have been world-class discoveries of gas made in Tanzania and Mozambique. While it has not yet made the same scale of discoveries as other countries in the region, South Africa is one of the most anticipated hotspots for O&G exploration in the continent. In 2010 BG Group made significant gas finds offshore Tanzania which took the country’s estimated natural gas reserves up to 57tn cubic feet (Tcf). The ensuing hype which followed these discoveries has tapered off somewhat in recent year. The plan, for now, is to construct an LNG plant with a capacity of processing 10m tonnes of gas per year, scheduled to be up and running by 2025. However, fiscal and regulatory uncertainties, the low gas prices and higher exploration and production costs compared to neighbouring Mozambique, has led to delays and a loss of momentum in the country. On the other hand, Mozambique’s developments are moving at a much faster pace. Like Tanzania, much of Mozambique’s reserves were discovered in the past decade which now amount to over 150Tcf of natural gas reserves. Anadarko and Eni are the two key players in the country with both having made significant offshore gas discoveries and subsequently proposed major LNG facilities.
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The Coral FLNG was the first of these projects to take FID. Eni announced in June that a joint venture of TechnipFMC, JGC and Samsung Heavy Industries will be the EPC contractor for the project. Tendering for detailed engineering is also underway for Eni’s sizable 10m tonnes per annum onshore LNG facility, which like Coral will be fed by gas from the Area 4 gas discoveries. The recent farm-in of ExxonMobil into Eni’s Area 4 has made the market much more attractive to potential investors. The supermajor, renowned for planning decades into the future, views Mozambique as the new Qatar. After demonstrating Mozambique and Tanzania’s hydrocarbon potential, the industry is now hoping to uncover the potential of South Africa. Many companies, including majors ExxonMobil and Total, have acquired rights to explore offshore South Africa. Recent improvements in exploration technology, coupled with the need for South Africa to diversify its energy mix has seen increased interest in exploration activity off South Africa’s coast, with 20 exploration licences issued. The requisites for a successful offshore O&G industry differ between East Africa and South Africa. While Mozambique and Tanzania have proven significant reserves, their biggest hindrance is the lack of infrastructure and skilled work force. Whereas South Africa has the basic infrastructure and skills required but is yet to make the major finds like East Africa. Andrew Scutter Sector Analyst (Upstream) andrew.scutter@the-eic.com
Designed and published by the Energy Industries Council 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com @TheEICEnergy Energy Industries Council (EIC)
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Inside this issue... It was great to share such a memorable evening with so many members at last month’s EIC National Awards Dinner. I’m sure that all of you who attended will agree that it was one of the best editions ever. To those of you who didn’t manage to make it this time, we moved the event from the Natural History Museum to the opulent surroundings of 8 Northumberland Avenue, one of London’s most exclusive red carpet locations. The venue wasn’t the only A-list update to the evening though – we were joined by one of the UK’s favourite comedians, Jimmy Carr, who not only put on an incredible show but also handed out the awards. The awards were of course the centrepiece of the evening and this year we had more on offer than ever before. This not only gave us the chance to really celebrate the incredible work you all do, day in day out, but also allowed us to recognise the new game changing strategies you’ve developed to not just stay in the game but to actually grow and flourish, in spite of the tough times we’re faced with. We handed out six awards to reflect these strategies: collaboration, diversification, export, innovation, optimisation and technology, as well as an overall EIC Company of the Year Award and, in partnership with the Robert Gordon University, the EIC Rising Star MBA Award. To find out who the winners were and see pictures from the evening turn to page 14. This year’s EIC National Awards Dinner, as well as being an evening of celebration, was also a fitting occasion to say thank you and goodbye to EIC Chairman Paul Mitchell. After five very busy years with us, he’s going to enjoy a well-earned retirement. Taking the reins will be long-term EIC Board Member Hugh Saville – with his 40 years-plus of industry experience, the EIC is in very good hands. We wish Paul all the best for the future, and thank him for his hard work, invaluable industry knowledge and leadership. Edward White, Editor and Communications Manager edward.white@the-eic.com
Contents Sector analysis
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Inside this issue...
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One-to-one 4 EICAssetMap 5 Member news
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Social media round up 9 Overseas events
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Forthcoming events
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National Awards Dinner 14 EIC Survive and Thrive 17 EIC training
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Middle East news
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Asia Pacific news
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North America news
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South America news 25 Sign up for the EICOnline newsletter
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One-to-one
with Dr Ansgar Kranz AIM expert and authorised officer at TÜV Rheinland Group TÜV Rheinland is a global leader in independent inspection services. Boasting over 140 years of experience, the group today has 19,600 employees worldwide and an annual turnover of nearly €1.9bn. Its independent experts ensure the highest standards of quality and safety for people, technologies and the environment in nearly all aspects of life. TÜV Rheinland inspects everything from technical equipment to products and services; oversees projects of all sizes; trains people in a wide range of careers and industries; and helps shape processes and information security for organisations around the globe. TÜV Rheinland employs a global network of approved labs, testing facilities and educational centres.
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What can you tell us about the asset integrity services offered by TÜV Rheinland?
An effective asset integrity management (AIM) programme incorporates all stages of an asset’s lifecycle, be it design, process, operations, maintenance, inspection or management concepts. In other words, our AIM integrates all aspects and disciplines that have a direct or indirect impact on asset integrity and performance. The purpose of AIM is to help maintain assets in fit-for-service condition while extending their remaining lifetime in ways that are reliable, safe and cost-effective.
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TÜV Rheinland has a large team of specialists and engineers in all areas of AIM including process safety, risk analysis, mechanical integrity, inspection and maintenance optimisation, meaning our clients can be confident about the integrity of their assets. Our competitive advantage stems from our ability to bundle value-adding services such as inspection planning and execution, risk and safety assessments, and AIM consulting as required specifically for each asset or plant integrity management scheme. That’s our AIM unique service proposition in a nutshell.
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What’s been the biggest highlight from the past year?
We’ve successfully rolled out our Computational Engineering services based on enhanced lifetime modelling that combines condition monitoring-based data collection onsite with advanced non-destructive testing results. The overall approach harnesses knowledge-based consulting and computation to extend remaining lifetimes and optimise complex critical assets. Current projects cover pre-damaged components in service at high temperatures, where our clients in the energy and chemical industries benefit from ongoing operation through reliable procedures using state-of-theart technologies such as the Finite Element method, CFD and fracture mechanics.
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What do the next 12-18 months have in store for the company?
Our AIM techniques will be integrated into a cloud-based solution that covers conditionmonitoring data management, mobile inspection results and a portal for clients to review the overall state of their assets. Furthermore, we have been developing a new approach within the framework of our
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Computational Engineering unit to evaluate the corrosion of well-head installations in the oil and gas industry using pulsed eddy current testing equipment combined with three-dimensional stability calculations. Q
What might readers be most surprised to learn about TÜV Rheinland?
TÜV Rheinland provides over 2,000 services in 8 regions at over 500 locations with more than 200 laboratories worldwide. That means we perform an average of over 2,000 inspections on any given day. Despite the sheer scale of our operations, our philosophy is surprisingly simple: we work closely with our clients to find consultancy solutions that ensure the safe, secure, reliable and efficient operation of their products and services. Our business model is based on the idea that each case is different, which is why we offer a set of modules that can be combined in any number of ways to create complex, tailored technical solutions designed specifically to meet your individual needs. As society progresses into the future at a rapid pace, our global network of highly trained and experienced experts enables safer and better uses of modern technology.
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AssetMap CAPEX and OPEX: we’ve got it covered The EIC is rightly renowned for our CAPEX project database, EICDataStream. We extended our offering into the OPEX sector, launching EICAssetMap at this year’s Offshore Europe to great acclaim. EICAssetMap is the only O&M database to map all major UK energy assets across all energy sectors.
Key features
• Fully interactive: search for facilities by location, sector and operator • Make the right connections: find out who you need to do business with at each facility • Use it on the move: tablet friendly so your sales force can take it with them on the road • Unlimited company access: add as many colleagues as you like to your account • Stay up to date: EICAssetMap is updated daily by our expert analysts • Track the lifecycle of assets: from start-up through to decommissioning
If you work in the UK O&M sector, or are thinking about entering this lucrative market, get ahead of the competition with EICAssetMap Sign for the EICOnline newsletter Get inup touch Need a demonstration of EICAssetMap? Visit www.the-eic.com/Forms/NewsletterSignup Please contact membership@the-eic.com
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Member news Pump specialist Amarinth has secured an order for API 610 VS4 pumps from Gulf Energy’s Kuwaiti unit.
With its existing Kuwait Oil Company (KOC) approval and familiarity with KOC specifications, this new order has further expanded Amarinth’s presence in Kuwait. The company will supply two API 610 VS4 vertical pumps with Plan 53B seal support systems to be used in a waste water treatment process at the GC-17 facilities and Abduliyah pump station. They will be used in the recovered oil drum for the new effluent water balance tanks. The nickel alloy pumps will be delivered against a tight 22-week lead time.
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For more information: www.amarinth.com
Balmoral buys into ACE Winches
Multidisciplined design, engineering and manufacturing company, Balmoral Group Holdings Ltd, has taken a substantial stake in ACE Winches by investing £10m in the Turriff-based company. The businesses will now work together to maximise global opportunities in the offshore, renewables and decommissioning markets.
The investment will strengthen and grow ACE Winches’ position as a leading mooring, lifting, pulling and deploying solutions provider in more than 50 countries. Both companies have seen success on the global stage and between them hold five Queen’s Awards for International Trade. However, since the beginning of the oil price decline in 2014 manufacturing business has slowed for ACE Winches and the company has restructured to optimise global rental opportunities. With the new investment ACE aims to expand its equipment hire business on a global basis and the two companies recognise the synergies that exist in their organisations. Both are privately owned, have impressive international track records and enjoy global brand recognition. Jim Milne, Chairman and Managing Director at Balmoral Group, said, ‘Without doubt the offshore industry is changing but with that change comes opportunity. ‘ACE Winches has built a very strong reputation for providing world-class deck machinery and lifting solutions and we recognise the potential in the company. Our aim is to help them achieve greater market share on the world stage by identifying and advising on new markets.’ Alfie Cheyne, CEO and Founder of ACE Winches commented, ‘We see the renewables and decommissioning sectors, in particular, offering strong growth potential. ‘With the combined efforts and expertise of both teams we are confident we can grow the ACE business and brand sustainably and look forward to a mutually beneficial relationship with Balmoral Group.’
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For more information: www.balmoraloffshore.com
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Capula collaborates on digital substation research project
Leading technology company Capula is collaborating on a research project with Manchester University to analyse digital substation architecture design and reliability on an IEC61850 multivendor test platform. IEC61850 is an international standard that defines communication in and between electrical substation automation systems. The study aims to investigate whether solutions from different suppliers can work correctly, safely and reliably when configured to a common specification and to demonstrate IEC61850 technologies. The project involves analysing the interoperability of the equipment between substation bays supplied by different suppliers and between individual bays and a master unit. Capula Ltd
Amarinth wins Kuwait Gulf Energy order
Member news
Capula was involved in integrating the isolated equipment contained within four substation bays donated from leading equipment manufacturers, into one common substation control system. With the feasibility of the concept successfully proven in lab facilities, the next phase of the project will aim to prove its applicability on the electricity transmission system. Initially, it will be tested offline at a recently redundant substation, then afterwards at a live substation in south Wales where Capula recently upgraded the substation control system as part of its involvement in National Grid’s SCS upgrade framework. ‘We are pleased to be able to collaborate on this academic study and be involved in demonstrating the viability of a future digital substation to advance electrical grid efficiency at this exciting time in the evolution of the substation model,’ commented Mark Hardy, Managing Director at Capula.
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For more information: www.capula.co.uk
E2S showcases innovative LED technology at ADIPEC 2017
On stand 8425 from 13 to 16 November at ADIPEC, Abu Dhabi, E2S Warning Signals, a leading independent signalling manufacturer, will be demonstrating its extensive range of alarm horn sounders, beacons, loudspeakers and call points for fire and gas warning systems in offshore and onshore hazardous installations. The stand, in the EIC-hosted UK Pavilion, will feature key products from its extensive hazardous area ranges, in particular the new generation LED beacons in the 316L stainless steel enclosure STEx family and the corrosion proof GRP enclosure GNEx range. The ‘STExLD2’ and ‘GNExLD2’ beacons offer multiple flash modes with high and low power steady modes, ensuring suitability for both warning and status indication. Using an innovative array of Cree LEDs they are widely regarded as the world’s first genuine replacement for traditional Xenon beacons, offering an operating current of just 110mA, low inrush, an operating life of over 60,000 hours and effective light output of 338 candela, significantly higher than the 120 candela effective intensity of a 5J Xenon tube unit. Visitors to the E2S stand will also find the unique ‘D2xB1’ Class I Division 2 LED notification device, UL1971 listed for hearing impaired and suitable for NFPA72 Public Mode Fire Alarm applications. The innovative beacon is selfsynchronizing on multi-unit systems without the need for any additional modules and features minimal operating current and in-rush. Darren Mann, International Sales Manager, and Neal Porter, APAC Sales Manager, E2S will man the stand.
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For more information: www.e2s.com
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HTL Group to unveil new products at ADIPEC HTL Group with its regional distribution partner SEG will be at this year’s ADIPEC on stand 8433 on the EIC-managed UK Pavilion. Showcasing its range of innovative products in addition to several recently launched customer focused solutions, HTL’s friendly team alongside representatives from SEG look forward to demonstrating these to the vast global market in attendance at the show. HTL’s partnership with SEG combines both companies’ technical expertise and extensive industry experience along with a commitment to deliver world class solutions and customer service across the globe. For more information on the HTL range of controlled bolting equipment available for sale and hire please visit HTL Group on stand 8433 at ADIPEC 2017.
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For more information: www.htlgroup.com
Motive HPU delivers a thrilling experience
Motive Offshore Group has been awarded a contract by Micron Eagle Hydraulics Ltd to build a hydraulic power unit (HPU) for a theme park in North America. The HPU will complement the client’s own unit, and together will deliver almost 1MW of hydraulic power to ride at the theme park. Motive Offshore Group provides the oil, gas, subsea and renewable sectors with a new generation of high quality marine products that ensure exceptional performance for clients worldwide.
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For more information: www.motive-offshore.com
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Member news
Sandvik a top achiever in the 2017 Dow Jones Sustainability Index
Engineering group Sandvik has again been listed in the top 10% most sustainable companies in its sector by the prestigious Dow Jones Sustainability Index (DJSI). The 2017 DJSI has awarded Sandvik a score of 97%, which means that it performs better on the indicators overall than 97% of assessed companies in the same sector: capital goods. ‘Sustainability is key to our ability to create increased customer value, enabling us to help our customers become safer, more efficient and more productive. Hence, it is a natural part of our business strategy,’ said Björn Rosengren, President and CEO of Sandvik. The companies in the capital goods category were assessed on customer relationship management, environmental reporting, corporate citizenship, philanthropy and human capital development and labour practice indicators.
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For more information: www.smt.sandvik.com
Sonardyne receives second Electromagnetic Geoservices order
Norwegian survey company, Electromagnetic Geoservices ASA (EMGS) has invested in Sonardyne’s water purchasing technology, having purchased its Ranger 2 Gyro-iUSBL system.
The Ranger 2 Gyro-iUSBL system combines acoustic positioning and inertial navigation technologies and is the second system now owned by EMGS. It will be fitted to one of their towed electromagnetic sources which operate in water depths down to 4,000 metres, in conjunction with electromagnetic receivers, to detect the presence of hydrocarbons through more than three kilometres of rock. Trevor Barnes, Sales Manager for Exploration at Sonardyne said, ‘We delivered the first Ranger 2 GyroiUSBL system to EMGS in 2013, and at the time it was one of the most technically complex, but highly successful system integrations we had ever undertaken. Over the last four years it has been proven to meet all of EMGS’ requirements and we’re delighted with their decision to invest in a second system.’
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For more information: www.sonardyne.com
Matt Corbin appointed as Sparrows Group’s Director of European Operations
Sparrows Group has named Matt Corbin as its new Regional Operations Director for the UK and Europe to support the company’s continued growth in the oil and gas, renewables and industrial sectors. Mr Corbin, who has more than 20 years’ experience working in the oil and gas industry, has held several leadership positions including UK managing director for the subsea division of Aker Solutions and UK regional general manger for GE Oil & Gas. Most recently, he was supply chain consultant to the UK government’s regulatory body, the Oil and Gas Authority (OGA) and contributed to Oil & Gas UK’s Efficiency Task Force.
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Matt Corbin, new Regional Operations Director for the UK and Europe, Sparrows Group
Matt, who has been a board member of industry body Subsea UK since 2014, has also been supporting Scottish Enterprise’s Grey Matters programme in an advisory capacity. Based in Aberdeen, Mr Corbin will lead the UK and European business operations for Sparrows. He will be responsible for maintaining its leading market share position in lifting operations and maintenance in the UK Continental Shelf, while delivering further growth in sectors outside the oil and gas industry. Commenting on his new position, Mr Corbin said, ‘Sparrows has an unrivalled reputation across the globe for its equipment, engineering services and its talented personnel who consistently deliver for its clients. These factors, coupled with the potential for increasing the business’ footprint with existing and emerging sectors, are what attracted me to this role.’
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For more information: www.sparrowsgroup.com
New EIC members Social media Member round news up
Wozair to exhibit at EIC Connect Power, Nuclear & Renewables 2017
Located in stands P18/P20, close to the entrance, Wozair will be displaying their latest products and technology at EIC Connect Power, Nuclear & Renewables 2017, held at ACC Liverpool, 28-29 November.
Power, Nuclear & Renewables 2017 Global opportunities for the UK supply chain
Visitor’s to Wozair’s stand will find its latest products for the nuclear industry, including a brand-new AHU design featuring many advanced functionalities and benefits ideal for any nuclear power location, such as modular design, high-efficiency fan design, and superior filtration.
We’re delighted to be taking a stand at this year’s EIC Connect Power, Nuclear & Renewables event. We are taking the opportunity to show off exactly what our latest technology can do and this year it’s sure to impress, with a huge range of new and upgraded features as well as innovative design work. We look forward to a busy show, lots of exciting new products and of course the chance to catch up with the rest of the industry.
Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – Energy Industries Council (EIC). Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.
The EIC @TheEICEnergy #EICConnect Oil & Gas USA is drawing to a close in #Houston, a special thank you to all delegates, exhibitors, speakers and sponsors!
The EIC @TheEICEnergy The autumn edition of Energy Focus is out now, featuring @AdnocGroup, @ABB_UK, @tradegovuk & @BOOTHWELSH: bit.ly/2x0ercV
Energy Industries Council (EIC) We’re hiring in our Aberdeen office for a new Business Lead and Events Manager! Find out more about the role and how to apply on our careers webpage
Chris Cherrington Commercial Director Wozair Limited
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For more information: www.wozair.com
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EIC ABERDEEN LOOKING FOR AFFORDABLE AND FLEXIBLE OFFICE SPACE? The EIC has prestigious offices in the West End of Aberdeen available for lease/lease-share. We are delighted to offer three offices to lease. The tenant offices are fully equipped with all the amenities you will need. Whether you are looking to downsize or wish to avoid the complexities of setting up a new office, the EIC can provide the perfect solution if you are looking for a base in Aberdeen.
Benefits • Convenient city centre location within easy reach of Altens, Bridge of Don, Dyce and Westhill • Fully furnished, light and airy offices with use of additional conference and meeting space • Free fast wi-fi and reception services • Access to the regional team for support • Free parking for tenants and use of our conference room and kitchen facilities
Prices and Offers Prices start from £395 for 1 person office, £695 for 2 person office. 10% discount for EIC member companies. For a limited time only, the EIC is offering the first month free of charge when signing a 12 month lease. Only need the office for 2-3 days per week? We can offer flexible lease-share options. Contact the Aberdeen team to discuss your needs and availability further.
72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 | aberdeen@the-eic.com | www.the-eic.com
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Overseas events Showcase your company in the UK National Pavilion • EGYPS 2018 After a very successful inaugural event in 2017, the Egypt Petroleum Show (EGYPS) is returning to Cairo for the second time from 12-14 February 2018. The EIC will again be organising and managing the UK National Pavilion at the event, already considered North Africa’s most important oil and gas show.
Exhibiting at EGYPS gives your company an incredible opportunity to access key players in this emerging region.
Egypt: a reforming and expanding market Egypt has made major improvements to its oil and gas industry over the past year. Long-delayed fiscal reforms have been implemented, resulting in 76 new upstream exploration concession agreements being signed with a minimum of US$15.3bn commitment from major IOCs. The country oil and gas industry has made headlines around the world with exciting developments such as the Zohr, North Alexandria and Noras (Nooros) projects underway. The prospect of increased diversification and investment in the downstream sector has resulted in the very real possibility that the country could become a net exporter of petrochemical products, with US$226bn worth of petrochemical projects planned. EGYPS EGYPS is the gateway to Egypt’s oil and gas opportunities. The exhibition and conference bring together Egyptian and North African government representatives, key project owners, NOCs and IOCs, international service providers, EPC contractors, consultants and financiers to discuss how they can work together on developments in the Egyptian and North African energy arena.
EGYPS 2018 is set to attract more than 500 exhibiting companies who will be able to showcase their products and services to over 15,000 visiting professionals from the GCC, MENA, Europe, Americas and Asia. The UK National Pavilion Exhibiting in the UK National Pavilion will allow you to generate new sales leads, increase brand awareness within the North African oil and gas market, launch new products and services, and meet with existing and new clients. The UK National Pavilion offers significant benefits and opportunities including: prime stand location, enhanced unique stand design, a pavilion lounge, promotion in industry publications, entry in the UK Pavilion brochure and more. The EIC can offer tailored regional and global advice, as well as facilitate meetings and networking opportunities with key decision makers and industry players. To request the event floorplan, application pack and further information, please contact lucia.durante@the-eic.com
EGYPS 2017 was definitely worthwhile. The UK Pavilion was situated in a great spot and we met lots of potential clients. EIC staff were very helpful and friendly and kept us in the loop with all the plans for the show. Ellie Tough, TWMA
The UK Pavilion at EGYPS 2017
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November 2017
Forthcoming events 1 November EIC Connect
EIC Oil & Gas 2017 BOOKING NOW
City Plaza, Jakarta
1 November Management Course
EICDataStream training Online
8 November Industry Overview
Fundamentals of Nuclear EIC Teesside
8 November Export Showcase
Opportunities in Egypt Aker Solutions, Dyce, Aberdeen
9 November Export Showcase
Opportunities in Egypt EIC London
13 November Overseas Exhibition
ADIPEC
Abu Dhabi National Exhibition Centre
14 November Management Course
SMEs: Business with Int’l Contractors EIC London
14 November Business Presentation
PNR Regional Market Update EIC Houston
14 November Management Course
EICDataStream Overview EIC Houston
15 November Management Course
EICDataStream training Online
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16 November Management Course
Bidding to Win
Rothera Group, EIC London
20 November Overseas Delegation
Overseas Delegation to Uganda Uganda
21 November Technical Workshop
Introduction to Control Valves Severn Glocon Group, Brighouse
28-29 November EIC Connect
EIC Connect PNR 2017 BOOKING NOW ACC Liverpool
28 November HSE Training
The ATEX Directives, Hazardous Areas and Protection Techniques SGS Baseefa, Buxton
28 November Industry Overview
Fundamentals of Oil and Gas Nassima Royal Hotel, Dubai
28 November Management Course
EICDataStream Overview EIC Houston
29 November Management Course
EICDataStream training Online
29 November Industry Overview
Fundamentals of FPSOs EIC Rio de Janeiro
For more information and to book visit www.the-eic.com
Forthcoming events
December 2017
BO NOOK W ING
5 December Management Course
EICDataStream Overview EIC Rio de Janeiro
7 December Industry Overview
Fundamentals of Natural Gas EIC London
12 December Business Presentation
Opportunities with Petrofac
January 2018
Shangri-La Hotel, Dubai
3 January Management Course
EICDataStream training Online
17 January Management Course
EICDataStream training Online
18 January Industry Overview
Fundamentals of Oil and Gas EIC London
ONS Sign up for the EICOnline newsletter
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12 December Management Course
EICDataStream Overview EIC Houston
13 December Business Presentation
JDR Cables Site Tour Hartlepool College
13 December Management Course
EICDataStream training Online
23 January Management Course
Contracts: Why they matter Addleshaw Goddard, London
26 January Corporate Entertainment
8th Annual Sporting Clays & BBQ American Shooting Centers, Houston
31 January Management Course
EICDataStream training Online
STAVANGER 20 NORWAY 18
27 – 30 AUGUST Contact raelene.rifkind@the-eic.com
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Andrew Mills (centre left) and Chris Stones (centre right) of Servelec Controls collecting the EIC Company of the Year Award and Innovation Award from comedian Jimmy Carr (left) and EIC President Chris Haynes (right)
EIC Rising Star MBA Award winner Daniel Gear, Petrofac. (Right) Ian Broadbent, Robert Gordon University
Petrofac’s Graham Wilderspin (centre) with the Collaboration Award. (Left) EIC CEO Stuart Broadley
Darren Adams (centre left) and Michael Birch (centre right) receiving the Diversification Award on behalf of ALE. (Right) Marc Gerrard, HTL Group
PJ Valves’ Dan Munro (centre) being presented the Export Award. (Right) Ian Phillips, SPE Aberdeen Section, Oil & Gas Innovation Centre
Optimisation Award winner Booth Welsh’s MD Martin Welsh and EIC Chairman Paul Mitchell (right)
Many thanks to our Sponsors
Technology Award winner IMI Precision Engineering’s John Cameron, Andy Evripides, Dave Horsfield and Dave Thompson. (Right) Stephen Sheal, Oil & Gas Technology Centre
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EIC
Servelec Controls wins EIC Company of the Year Award
NATIONAL
Seven other prizes also presented at the EIC National Awards Dinner
DINNER 2017
Sheffield-based Servelec Controls, one of the largest suppliers of safety, protection and control systems, has won the prestigious Innovation and EIC Company of the Year Awards at the EIC National Awards Dinner held in London on 12 October.
12 OC TOBER Servelec Controls scooped the prizes for its pioneering remote operation, maintenance and monitoring solution for offshore oil and gas platforms. Its innovative solution converts mature manned and normally unmanned offshore platforms into unmanned remotely operated platforms, allowing onshore engineers to view and control the site in real-time through state of the art CCTV, use flame and gas detection systems to ensure the safety of the platform and even remotely restart the asset in the case of a shutdown. Making offshore platforms remotely operated not only greatly increases safety by eliminating the use of helicopters, one of the industry’s leading causes of death and injury, but significantly reduces operation and maintenance costs, extending an asset’s life and pushing back decommissioning. In one case Servelec Controls extended the forecasted end of life of an asset by 15 years, ensuring increased recovery, job security and energy supply to the UK. The same operator has reduced manned interventions by a minimum of 60% on the converted platforms leading to significant OPEX reductions and a return on investment inside two years. Six other awards were also handed out during the evening, which included after dinner entertainment from TV personality and comedian Jimmy Carr. Oil and gas services provider Petrofac landed the Collaboration Award. By combining two duty contracts it held with Eni and Faroe Petroleum separately, sharing the use of helicopters, vessels and accommodation, it enabled the operators to maximise economic recovery from assets in the Southern North Sea. ALE was awarded the Diversification Award for its rapid expansion from oil and gas heavy lifting and transportation to also become a contractor for the global wind power sector offering a complete installation and maintenance package for operators. The Export Award was won by PJ Valves in recognition of its overseas growth and export strategy which has seen the company recently expand its operations into North America and Asia Pacific. Its international business has been so successful that today over 70% of its revenues come from exports, compared to 20% in 2011. Sign up for the EICOnline newsletter
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Booth Welsh’s use of multidisciplinary engineering services, EPC capability and automation to improve its clients’ operating efficiencies saw it receive the Optimisation Award. Fluid control system experts IMI Precision Engineering took home the Technology Award for its Maxseal ICO4PST valve, the first-ever smart solenoid valve with fully integrated partial stroke testing capability. Partial stroke testing, where the safety of a shutdown valve is tested without shutting down the whole valve can sometimes lead to an unplanned full stroke or ‘spurious trip’ of the shutdown system. IMI’s Maxseal ICO4-PST valve incorporates electrical components, algorithms and sensors, reducing the probability of spurious trips by 10 times compared to other available technologies. With a single spurious trip potentially costing operators over US$1m in lost production, the Maxseal IC04-PST is attracting considerable industry attention. In addition to the company prizes, the EIC, in partnership with the Robert Gordon University, presented the EIC Rising Star MBA Award to Petrofac’s Daniel Gear. The award is designed to develop future leaders of the oil and gas industry by providing full tuition fees (worth £16,500) for the Robert Gordon University’s MBA Oil and Gas Management course. Commenting on the awards ceremony EIC CEO Stuart Broadley said, ‘The amount of high-quality submissions we received was extraordinary and leaves me feeling very positive about the future. The winning entries are indeed very special. ‘The award categories were designed to recognise the strategies that EIC member companies of all sizes and sectors are developing to grow and flourish at home and abroad.’ As well as celebrating the excellent work which the UK supply chain does day in day out, the EIC National Awards Dinner is one of the UK energy sector’s premier networking events, bringing together over 400 leading industry figures. Follow @TheEICEnergy
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Power, Nuclear & Renewables 2017 Global opportunities for the UK supply chain 28-29 November 2017
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> Decarbonisation, De-Centralisation, Digitisation: Breaking it down for the supply chain > Beyond wind: Tidal Energy I Solar PV I Energy from Waste
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EIC Survive and HR Wallingford New ship-to-shore compatibility tool SHIPMOOR is improving safety for the LNG industry
How is HR Wallingford thriving? HR Wallingford is collaborating with a new partner to develop SHIPMOOR, an innovative ship-toshore compatibility analysis tool for the LNG industry. This solution, which enables the company to diversify into the OPEX segment, improves safety by reducing the risk of disconnections between LNG terminals and carriers.
The challenge
The oil and gas industry downturn led to increasing competition and the commoditisation of consulting services related to mooring analysis, a critical aspect of the marine facility design and a key market for HR Wallingford. More focus on cost has motivated customers to invite competitive tenders instead of contracting single source service providers. This led to reduced margins and competition from low-cost players in the market. Faced with this reality, HR Wallingford had to increase its footprint and diversify.
The solution
HR Wallingford was approached by Witherby Publishing, a company that provides web based publishing services for the port industry, with the aim of collaborating on the incorporation of HR Wallingford’s existing mooring analysis software in a web based tool for the LNG sector. Sign theversion EICOnline newsletter This isup an for edited of the case study.
This gave HR Wallingford an opportunity to diversify into the OPEX market, having traditionally been used for CAPEX project developments. The two companies started working together on an innovative solution that embedded HR Wallingford’s mooring analysis capability within a port information system including a shipto-shore compatibility tool. Dubbed SHIPMOOR, the solution matches data on LNG vessels and terminals to produce a summary report that is used to support mooring and cargo handling, operational planning and decision. By optimising a process that is currently undertaken manually, SHIPMOOR helps minimise mistakes and provides reliable data to port operators, vessel owners/ charterers and cargo owners by maintaining up-to-date characteristics of individual ships and LNG terminals in a central database. In doing so, the tool improves safety by mitigating the risk of mooring line failure, excessive motions or disconnection during LNG loading/ unloading operations. SHIPMOOR has a payback of onetwo years, which further enhances its business case. HR Wallingford now plans to extend its partnership with Witherby to a full joint venture. The SHIPMOOR concept was presented to the industry in April 2017 at the Gastech LNG conference in Japan and the product will be launched globally in the second half of 2017.
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Story type: #innovation #collaboration #diversification Benefits: • Lower cost-of-safety: 100% payback by avoiding just one safety event – an emergency coupling release on the loading arms due to excessive motions of the vessel would take in the order of 12 hours to reconnect and with the associated demurrage, one such event would cost much more than the price of this product. More importantly however, this would be a significant safety event that would have knock on effects for the terminal which are difficult to quantify Key findings: For the industry: • Diversification into the OPEX segment is possible for companies traditionally involved in capital project development • In a downturn, companies that can easily switch from CAPEX to OPEX are more likely to avoid losses • Active collaboration opens up diversification and growth more quickly For the government: • Work harder to make sure SMEs are aware of DIT capabilities and benefits Government support? HR Wallingford has not received any government support HR Wallingford at a glance Key products and services: research and consultancy services Main sector(s) served: energy, infrastructure and environment Headquarters: Wallingford, UK Year established: 1947 Number of employees: 250 Revenue: £25m
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EIC Survive and thrive
IMI Precision Engineering New technology to improve confidence in emergency shutdown systems
How is IMI Precision Engineering thriving?
Based on feedback received from customers, IMI Precision Engineering saw an opportunity to add an additional layer of technology to its existing solenoid valves to increase safety, integrity, efficiency and performance.
The challenge
While the downturn in the oil and gas industry has not altered IMI Precision Engineering’s commitment to new product development, it has affected the CAPEX and OPEX budgets of its major end-users and driven an increased focus on operating efficiency. In particular, IMI Precision Engineering received feedback about deficiencies related to partial stroke testing (PST) technologies from clients who were seeking safer and more reliable equipment – a major factor in a low oil price environment.
The solution
IMI Precision Engineering had to satisfy three main requirements: reduce the potential for spurious trips (unexpected shutdowns resulting from PST equipment failure), ease of installation and simple operation. IMI Precision Engineering made the decision to adapt its long-established Maxseal ICO4 valve, adding extra technology including new electrical components, algorithms and sensors.
This led to the creation of the Maxseal ICO4-PST valve, the first smart solenoid valve with fully integrated PST capability. The revamped equipment simplifies installation, features self-calibration and provides the highest level of diagnostic coverage. As well as delivering increased safety, IMI Precision Engineering’s improved Maxseal valve provides economic benefits by greatly reducing the probability of spurious trips (10 times better than prevailing technologies), by monitoring valve condition to facilitate planned preventative maintenance and by increasing the intervals between expensive process shutdowns. Considered by the company to be the ideal solution for partial stroke testing, IMI Precision Engineering’s Maxseal ICO4-PST valve was developed in 2016 and has successfully completed field trials with several global oil and gas companies. At the moment it is only available for pneumatic applications but a hydraulic option is under development. Built upon proven and well regarded IMI Precision Engineering’s Maxseal branded valves, the addition of PST capability further consolidates the reputation of IMI Precision Engineering’s products.
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Story type: #technology Benefits: • A single spurious trip (unplanned shutdown) could cost over US$1m in lost production Key findings: For the industry: • Product development is a continuous process that is shaped by customer feedback • To react to O&G customers in a downturn, suppliers must demonstrate adaptability and nimbleness, and must apply technology and innovation to solve customers’ problems • Safety critical equipment always provides opportunities for suppliers to innovate and differentiate, often beyond simple price and delivery metrics IMI Precision Engineering at a glance Key products and services: fluid control systems Main sector(s) served: energy, commercial vehicle, rail, life science, food/beverage and industrial automation Headquarters: Birmingham, UK Years established: +150 years (IMI Plc) Number of employees: 5,800 Revenue: £708m
Engineering is often about choosing a solution with the fewest compromises – I genuinely believe that the ICO4-PST provides a solution for PST that doesn’t require these compromises to be made. Richard Edwards Business Development Director (Energy)
EIC Survive and thrive
NRL Group NRL Group’s new company LINX offers innovative, tailored approach to workforce solutions
LINX How is NRL Group thriving? To differentiate itself from its competitors NRL developed LINX, an innovative service based on designing bespoke recruitment solutions for clients with a clear focus on cost savings, compliance and efficiency.
The challenge
In such a tough business environment, NRL found that traditional recruitment options were failing to meet their clients’ needs as they were too limited and restrictive. The company recognised that, while the recruitment process outsourcing (RPO) approach delivered some financial and compliance advantages it often resulted in a disengaged recruitment supply chain, while engagement with a diverse range of preferred and niche suppliers was also problematic.
The solution
NRL innovated by creating LINX, whose approach is to fully understand the end to end workforce landscape and then design innovative, bespoke solutions to respond to identified areas of friction. This means LINX can draw on their experience to improve pain points or offer a complete workforce process update. Sign theversion EICOnline newsletter This isup an for edited of the case study.
The introduction of LINX resulted in a four-year contract with a launch customer worth approximately £350m. LINX’s scope includes legal support to renegotiate terms of supply, resulting in a 99% sign up rate with the supply chain, as well as managing the tender process to establish a best in class supply chain and introducing technology in the form of a digital platform to drive in efficiencies, transparency and compliance. This is supported by a dedicated customer services team, resulting in improved timeto-hire, reduced administration and greater accountability. LINX was also able to deliver cost savings from increased productivity and efficiency as well as economies of scale with recruitment suppliers through greater opportunity of supply. A separate entity from NRL Limited, LINX is expected to evolve to a full-fledged independent company within a year. NRL hopes to keep the company focused on the energy sector but understands that this may be a limiting factor. The aim is to leverage NRL’s long standing close relationships with customers to roll out this collaborative and customer-led approach to their unique workforce dynamics, challenges and requirements, while ensuring that any potential internal conflicts of interest between NRL and LINX are avoided.
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Story type: #innovation Benefits: • Order intake: £350m over 4 years • Customer benefits: Streamlined workforce processes, £606,000 YTD savings, 40% cost of service savings, 100% worker retention, cost reduction implementation, improved compliance, 99% supplier acceptance Key findings: For the industry: • Disruptive innovation can be a fast way to grow, but brings its own management challenges For the government:
• Work harder to make sure businesses are aware of Department for International Trade capabilities and benefits Government support? NRL Group did not seek any government support NRL Group at a glance Key products and services: recruitment, training, rail maintenance and NDT services Main sector(s) served: nuclear, petrochemicals, renewables, construction and energy from waste Headquarters: Cumbria, UK Year established: 1983 Number of employees: 130 Revenue: £145m (2017 forecast)
Opportunities to improve your offering and relevance through innovation can unlock growth opportunities in challenging markets – launching LINX has seen revenues and margin grow, and taken the NRL Group into a new industry space. David Redmayne, Director
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21 21
Middle East news Regional update
November is always one of the busiest months in the Middle East, primarily due to ADIPEC, now without a doubt the leading oil and gas conference and Terry W illis exhibition in the region, if not the world. It’s one of the few O&G events worldwide where exhibitor and delegate numbers are actually increasing. Over 95,000 oil and gas professionals visited the event last year and given the excellent conference programme plus exhibition layout that is on offer once again, the organisers remain confident that they’ll hit 100,000 this year.
Regional news
Quercus to develop 600MW solar project in Iran UK renewable energy investment firm Quercus has announced that it has signed an agreement with Iran’s Ministry of Energy to build and operate a 600MW solar power complex in the Middle East country. Construction of the project, located in central Iran, is set to begin in 2018, and will be developed in six 100MW phases over three years. Quercus will provide £440m of financing for the project, its first outside of Europe.
Dubai awards £2.9bn construction contract for 700MW CSP solar park
The UK Pavilion at ADIPEC 2016
This in turn is reflected in our own presence and management of the UK Pavilion. Taking up over 1,000sq m, this is by far our largest commitment for any exhibition that we do across the globe. For the 2017 show, we are grateful for Shell’s sponsorship of the EIC lounge where we intend to introduce a series of one-to-one meetings with contractors who we believe will add value to exhibitors on the UK Pavilion. Notwithstanding the number of companies who will form part of the Welsh Government group, we will again be hosting over 50 companies, both large and small as well as new companies to the market who will be alongside more established players, all of whom recognise the benefits of being associated with the UK Pavilion.
A consortium of Shanghai Electric and Saudi Arabia’s ACWA Power has won a £2.9bn contract for construction of Dubai’s 700MW fourth phase at the Mohammid bin Rashid Al Maktoum Solar Park. The project includes an 850-foot-tall tower that will receive focused sunlight, the world’s tallest such structure in a solar park. Total investment in the facility is expected to be more than £10bn, and will produce 5GW of solar power by 2030. Operated by Dubai Electricity & Water Authority, the fourth phase will use concentrated solar power following the first three phases of photovoltaic power.
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Although we cannot confirm this at the time of writing, we are hopeful that we will have the opportunity to welcome a UK government minister to address the attendees at our reception taking place at the A-Loft Hotel on Tuesday 14 November. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Sign up for the EICOnline newsletter
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Opportunities in Indonesia
EIC Oil & Gas 2017 1 November • City Plaza P9 • Jakarta • Indonesia
Hear project updates and meet with representatives from 15 major regional operators and contractors including BP, Pertamina and Saipem
Keynote speakers include HE Arcandra Tahar, Deputy Minister of Energy, Indonesian Ministry of Energy and Mineral Resources Dr Ego Syahrial, Director-General of Oil and Gas, Indonesian Ministry of Energy and Mineral Resources HE Moazzam Malik, UK Ambassador to Indonesia In partnership with
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£1 T £2 99 IC 99 (E K (n IC E on m T m em S em be be rs) rs )
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23 23
Asia Pacific news Regional update We’re proceeding with the final preparations for the EIC Oil & Gas Indonesia event to be held on 1 November 2017 in Jakarta, Indonesia.
EIC Oil & Gas 2017 1 November • City Plaza P9 • Jakarta • Indonesia
Azman
Nasir
The EIC is co-hosting this major event with Indonesia’s oil and gas regulator, SKK MIGAS and the UK’s Department for International Trade. A total of 200 companies are expected to participate in this event which will be officiated by the Deputy Minister of Energy of Indonesia, His Excellency Arcandra Tahar. Other VIP speakers are the UK Ambassador to Indonesia Moazzam Malik, the Director General of MIGAS, Dr Ego Syahrial, the Deputy Head of Supply Chain, Djoko Siswanto and EIC CEO Stuart Broadley. At the time of writing, we have 11 companies who have agreed to sponsor the event: Agility, ALE, Atmos, BMT, Brunel, DHL Industrials, Emerging EPC, EM&I, NES Global, Pepperl+Fuchs and Sky Futures. A number of major players from the Indonesian oil and gas industry comprising operators and contractors such as BP Indonesia, Chevron, Eni, Genting Oil, HuskyCNOOC, Medco Energi, Pertamina, PGN, Rekayasa Industries, Saipem Indonesia, Saka Energi, Santos, Shell Indonesia, Total and Tripatra are among the line-up of speakers who will give short presentations on their respective supply chain requirements. The event is going to be held in SKK MIGAS’s building in the City Plaza in Jakarta. There will also be one-to-one appointments available for delegates to meet all of the speakers from the preceding sessions. SKK MIGAS has also requested EIC Asia Pacific to provide five member companies to give a presentation on their respective technologies with regards to oil and gas production enhancement and operational efficiency improvements. We’re planning to feature BMT, DHL Industrials, EM&I, Sky Futures and Tracerco. Azman Nasir Head of Asia Pacific azman.nasir@the-eic.com
Regional news
China, UK to collaborate on renewables research
Research organisations from the UK and China have teamed up on five projects for the development of next-generation offshore renewable energy technologies. According to the UK’s Natural Environment Research Council (NERC), the three-year initiative will focus on offshore wind, wave and tidal power and will seek to maximise the environmental and socio-economic benefits of such projects. The Engineering & Physical Sciences Research Council and NERC will provide nearly US$5.3m for the projects, while the National Natural Science Foundation of China will also back the schemes.
Indonesia to auction 15 oil and gas blocks in 2017
The Indonesian Energy and Mineral Resources Ministry (ESDM) will auction 15 oil and gas blocks this year, comprising of 10 conventional O&G blocks and 5 nonconventional O&G blocks. The conventional blocks will be offered through a direct offer scheme, namely Andaman I (offshore Aceh), Andaman II (offshore Aceh), South Tuna (offshore Natuna), Merak Lampung (offshore and onshore Banten – Lampung), Pekawai (offshore East Kalimantan), West Yamdena (offshore and onshore Maluku), and Kasuri III in onshore West Papua; while three non-conventional blocks – MNK Jambi I, onshore Jambi (shale), MNK Jambi II, onshore Jambi and south Sumatera (shale), and GMB West Air Komering – onshore south Sumatera (coal bed methane).
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North and Central America news Regional update
The inaugural EIC Connect Oil & Gas USA, held in Houston on 3 October, was well received with over 20 key operators and contractors presenting and hosting one-to-one meetings with Amand a Duho n delegates. With more than 200 delegates and speakers in attendance our flagship event provided members and non-members insights into current and future project opportunities with operators and contractors, as well as advice on how to increase their competitiveness to earn business and thrive in the new energy world context.
Regional Analyst Jake Gillan presenting at EIC Connect Oil & Gas USA
Our efforts will now move towards hosting a PNR Member Update on 14 November. The current constraints of the oil and gas market, along with pressure placed on governments and investors to be competitive within the energy landscape is driving the need for diversification and innovation within the renewable energy sector. Industry experts will provide members with the current outlook for the power, nuclear and renewables (PNR) sectors, discuss business opportunities and project updates. Speakers include Saxon Weber and EIC member companies FoundOcean and Petrofac who will talk about how they diversified into offshore wind. The EIC North and Central America office is situated in the heart of Houston’s energy corridor, at the centre of global energy project decision making. We currently have three office suites available, as well as virtual and hot desk services. If you are interested in finding out more about EICLaunchPad, or booking a hot desk and/or conference facilities at the EIC North and Central America office in Houston, please contact natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...
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Regional news
FERC quorum allows major projects to progress
The Federal Energy Regulatory Commission (FERC) has for the first time in six months reached a quorum. The swearing in of Robert Powelson and Neil Chatterjee brings the total number of active commissioners to three, and allows the committee to vote on project approvals. As a direct result of the quorum being reached, major projects such as the Elba LNG liquefaction project to be located in Georgia, and the ET Rover pipeline that will transport natural gas from the Marcellus and Utica shale plays to the US Midwest, have received green-lights from the commission to proceed with project work. Elba LNG received approval for the installation of up to 10 modular LNG liquefaction trains, and the ET Rover pipeline was granted approval to introduce the first deliveries of gas into the system.
Contract awarded for Mexico’s Ku-Maloob Zaap oil field
In positive news for the Mexican upstream sector, a consortium of Dragados SA, Avanzia Instalaciones SA de CV, and Cobra Instalaciones Y Servicios SA has been awarded an EPC contract by Petroleos Mexicanos (PEMEX) to complete the construction of the CA-Ku-A1 gas compression platform. The US$1.03bn contract also entails an 11-year operating commitment from the group of contractors. The project, which will be located in the Bay of Campeche off the coast of Ciudad del Carmen, Mexico, could weigh up to 12,000 tonnes, will connect to a network of 10” subsea pipelines, and have a gas-processing capacity of 450m cubic feet per day.
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25
South America news Regional update
According to EICDataStream, five FPSOs are expected to be deployed offshore Brazil at the Libra 1 and 2, Búzios V and Sépia fields. With another 39 operating FPSOs, Brazil is Clariss e Roch leading the way in using this a kind of platform and companies doing business in this region may benefit from the Fundamentals of FPSOs workshop taking place on 29 November at the EIC Rio office. Let us know if you don’t have your EICDataStream login but would like to keep following the news related to these opportunities in the Brazilian E&P industry and much more. Our staff are also available to provide tutorials on how to get the most out of EICDataStream. On 21 September Golar Power, represented by its Business Development Director Edson Real, gave a
presentation about the Porto de Sergipe project at the EIC Rio office. The R$5bn project is set to be the largest thermoelectric power plant in Latin America and is expected to start operations in 2020 with a full capacity of 1.5GW. The following week, on 27 September, we organised, in partnership with the local British Embassy, the Argentina Energy Market Briefing in Buenos Aires to coincide with the Argentina Oil & Gas Trade Show 2017. The Buenos Aires UK DIT Director for Trade and Investment Tim Hanson and Pietro Ferreira, EIC Regional Analyst, covered opportunities in the Argentinian energy sector followed by an EICDataStream demonstration. If you need any assistance or advice in the region or for more information about upcoming events, please contact Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com
EIC Business Presentation with Golar Power
Regional news
Argentina’s oil marketed at international prices
The local government has aligned the price of the local Medanito crude with international benchmarks, the first time it has done so in more than a decade. This measure will be put in place for the remainder of 2017 whenever international prices trade above the US$55/barrel mark for oil produced locally. At the end of the year, the government is expected to allow local oil prices to float freely. Artificial prices were introduced in the early 2000s to protect the local industry and their removal was one of the campaign pledges of President Maurico Macri.
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Petrobras and ExxonMobil obtain key offshore assets
The two companies were among the most successful players in Brazil’s 14th bidding round for exploration blocks on 27 September. A consortium between the two (with Petrobras as the operator) earned the rights to develop six blocks in the Campos Basin, located adjacent to the oil-rich pre-salt area. One of the blocks was obtained after an impressive R$2.24bn (US$710m) bid, the highest ever presented for a single E&P concession in Brazil.
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