Sector analysis
Senegal’s path to energy security
Development of the country’s power sector is a top priority for the Senegalese government as part of its Emerging Senegal Plan (Plan Sénégal
which aims to transform the country into an emerging market by 2035. Senegal’s government wants to achieve universal access to power by 2025 by combining on and off-grid alternatives. Boosting energy access, particularly in rural areas, and lowering the cost of electricity generation by reducing reliance on imported liquid fuels are two of the government’s major priorities. As seen by many key projects that are either in development or have recently come online, Senegal has tremendous solar and wind power potential, as well as vast offshore natural gas reserves. According to the World Bank, electricity access in Senegal has reached 78.9%. Nonetheless, there are significant disparities between urban and rural areas, with 95% of households having access to electricity in urban areas and only 53.2% in rural areas. The latest Demographic and Health Surveys Program (DHS) discovers a significant link between poverty and lack of access to electricity in Senegal. International Development Association (IDA) World Bank Group has approved a US$150m loan to Senegal for the Energy Access ScaleUp Project (PADAES) to help increase access to energy for households, businesses and essential facilities. The project will also help to close the gap in electricity access between rural and urban communities. More than 1.5m people will benefit from the project. Reports suggest that thermal power accounts for approximately 71.3% of Senegal’s electricity mix with a 1,140MW installed capacity. Senegal is relying heavily on thermal power, particularly heavy fuel oil (HFO) power plants, coal power stations and emergency power solutions. The country is planning to switch from HFO and coal to gas in the near future. The Mauritius Commercial Bank (MCB) has granted US$60m in funding to support Senegal’s natural gas goals. Senegal currently has several ongoing gas projects, including the Greater Tortue-Ahmeyim gas field, the Yakaar & Teranga gas field and the Sangomar field development project. Given the country’s vast natural gas reserves, the government will be able to improve network management while cutting energy costs and emissions by converting existing power plants into new gas-fired power plants. When domestic gas becomes available, some of Senegal’s newer operational plants, such as Tobene and Contour Global may be converted from HFO to burn gas.
The Sendou coal-fired power plant is also planned to be converted to a gas-fired facility in the future. Senegal intends to complete the transition from HFO to gas by 2025.
Research indicates that renewables make up around 24.1% of Senegal’s electricity mix. As of 2021, the total renewable generation capacity is 460MW which consists of 226MW of solar photovoltaic (PV), 159MW of wind and 75MW of regional hydro generation. The installed capacity is expected to increase to 683MW by 2027.
Solar PV is one of Senegal’s most dynamic industries in the renewable energy sector. The first solar park in Senegal came online in 2017 located in Santhiou Mekhe in north west Dakar with a 30MW capacity. The first solar power plant falls within the Emerging Senegal Plan. Apart from the implementation of the solar power plants, the Agence Sénégalaise d’Electrification Rurale (ASER) integrates off-grid solar into its official electrification framework through the Local Initiative Rural Electrification (ERIL). This programme aims to provide off-grid solutions to areas not served by the grid by subsidising the capital costs of small off-grid electrification projects.
Apart from solar, wind is also one of the power sources in Senegal. Senegal has launched West Africa’s first large-scale onshore wind farm at Taiba Ndiaye, Senegal with a capacity of 159MW which will supply nearly a sixth of the country’s power. It will generate renewable energy for at least two decades. The wind farm is planned to be expanded by a further 100MW and commence a 15-month feasibility study. Nonetheless, there has been no specific capacity set for wind energy in Senegal to date.
As for hydro, Senegal imports 75MW of hydro generation from its share of the OMVS power plants in Mali, Manantali and Felou. Currently, Senegal is working on completing the 128MW Sambangalou hydropower plant. The project is expected to be completed in 2023.
The country’s generation capacity is expected to reach 1.6GW by 2030, with the goal of transitioning away from HFO and coal towards natural gas, which has a lower carbon footprint. The Senegalese energy mix is expected to decarbonise further, with renewables accounting for approximately 20% of the generation today, rising to nearly 30% by 2026/27.
Azzahrah Juraimi Supply Chain Analyst (Middle East) azzahrah.juraimi@the-eic.com
Inside this issue...
The 2022 edition of the traditional EIC National Awards Dinner took place in October and it was a special night indeed: besides the 14 categories pulled out from the sixth Survive and Thrive report published in June, EIC members also competed for Company of the Year (which went to Score Group) and the EICRGU Rising Star MBA award (won by Naveenchandra KV from ABB). Congratulations to all winners, nominees, and the team responsible for bringing the Awards back to its physical format for the first time in two years. We can’t wait for the 2023 ceremony!
This month’s issue of Inside Energy includes a look at Senegal’s energy security issues, Hitachi Energy’s transmission project in India linking Kudus to Mumbai, Crowcon’s newest flammable gas detection technology, a one-to-one interview with Jonathan Brindley, Managing Consultant at JBPRM, and much more.
Azzahrah Juraimi, Supply Chain Analyst for the Middle East region at the EIC, is the author of this issue’s Sector Analysis. Her article explores how Senegal’s energy security is a fundamental part of the government’s efforts to turn the country into an emerging market and its outcomes for the industry. According to Azzahrah, Senegal intends to reach 1.6GW of total generation capacity by 2030.
The Members’ Services section includes Hitachi Energy’s order from Adani Electricity Mumbai Infra Limited for the high-voltage direct current (HVDC) transmission system to connect Kudus and Mumbai in India. The system, Hitachi Energy’s sixth HVDC project in India, will enable the supply of up to 1,000MW of electricity to Mumbai.
Readers can find out more about Crowcon’s next generation of flammable gas detection product in Spotlight on Technology. Named Xgard Bright, the flameproof (Exd) detector received gas and dust certifications for ATEX and IECEX, with UL gas certification currently ongoing.
We also talked to Jonathan Brindley, Managing Consultant at JBPRM, who has over 30 years of experience in marketing and business development departments in various energy companies. In this One-to-One, Jonathan gives us his thoughts on, among other things, the future of the energy industry, JBPRM’s targets and how the company has dealt with the impact of COVID-19 and the war in Ukraine.
As usual, Inside Energy also brings you office notices and regional market insights from our hubs in Europe, the Americas, Asia Pacific and the MENA region. Readers can also see projects and business news from our global members. Léliam de Castro, Head of Marketing and Communications
The EIC celebrated the ingenuity of the energy industry’s global supply chain in glamour at the EIC National Awards Dinner 2022 on 6 October.
The awards celebrate excellence of energy supply chain companies in various areas, with Score Group winning the Company of the Year award. The EIC-RGU Rising Star MBA award went to Naveenchandra KV from ABB.
The event was attended by EIC members and their guests and representatives from the government and project decision makers. At the start of the ceremony participants were in for a treat with an entertaining speech by actor Stephen Mangan, who hosted the event.
The award winners were picked from companies that took part in this year’s EIC’s Survive and Thrive Insight Report, published in June.
The 2022 report, based on 63 interviews with CEOs and senior executives of energy companies from around the world, found that investment and innovation were returning to the oil and gas industry, following heavy focus on diversification and energy transition over the previous two years.
At these times, when energy supplies are tight and prices are high, the energy industry’s supply chain is doing its best to keep our lights on and our economies running. Our members are based across the globe. They are acutely aware of the urgent need to ensure a sustainable supply of affordable energy with as little environmental impact as possible. It’s a herculean task given the current geopolitical and economic challenges, but everyone is working hard. And this is why it’s important that we celebrate and appreciate the hard work everyone is doing. Stuart Broadley, CEO, EIC
CYPRUS Cronos Gas Discovery
Operator: Eni Value: US$500m
Eni has made a gas discovery at the Cronos-1 well in Block 6, 160km offshore Cyprus. The Cronos-1 wildcat was drilled in 2,287 metres of water depth. Preliminary estimates indicate approximately 2.5 Tcf of gas in place. Eni is considering two development options to advance the project.
For more information on these and the 12,000 other current and future projects we are tracking please visit
Global opportunities
EGYPT
KK International Green Hydrogen Plant
Operator: KK Power International Value: US$2bn
The General Authority for Suez Canal Economic Zone (SCZone) and KK International have signed a MoU to build a green hydrogen facility. The production capacity of the project is 230,000 tpa of green hydrogen.
GERMANY/NORWAY Norwegian-German (NOR-GE) CCS Project
Operator: Equinor Value: US$3bn
Equinor and Wintershall Dea are planning a 900km open access pipeline to connect a carbon dioxide (CO2) collection hub in Northern Germany to storage sites in Norway. The pipeline will have an estimated capacity of 2040m tonnes per year by 2037.
JAPAN
Offshore Wind Farm Ishikari Bay
Operator: Green Power Investment Value: US$644m
Siemens Gamesa has been awarded a contract to supply 14 SG 8.0-167 DD offshore wind turbines, each with a capacity of 8MW and featuring a 167m rotor, for the offshore wind project. The order also includes a 15-year full-scope service agreement. The installation work is planned to begin in July 2023.
MEXICO
Tarafet-2 Green Hydrogen Project
Operator: Tarafet Value: US$515m
Ohmium International has been awarded a contract by Dutch company Tarafert to supply 343MW of proton exchange membrane (PEM) electrolysers for the project. It is understood the delivery will be carried out over three instalments, with the first 69MW being delivered in 2025.
Onshore Wind Farm Zarafshan (Masdar)
Operator: Masdar Value: US$600m
Financial close has been reached on the 500MW project. Commercial operations are expected to commence by the end of 2024, and the government of Uzbekistan expects over US$600m (€600m) in foreign direct investment to flow into the country from the project.
Members’ services
Hitachi Energy, a market and technology leader in transmission, distribution and grid automation solutions, has won a major order from Adani Electricity Mumbai Infra Limited, part of India’s largest privately-owned power company Adani, to provide a high-voltage direct current (HVDC) transmission system which will link Kudus to Mumbai, on India’s west coast.
Mumbai is experiencing a rapid increase in electricity consumption, seeing peak demand increasing to 3,850MW in 2022, of which around 2,100MW was supplied from outside sources. The new HVDC link will supply up to 1,000MW of electricity, increasing power from outside of the city by almost 50%. The link will strengthen the existing transmission infrastructure and help Adani to ensure a reliable power supply in the region.
Globally, power loads in cities are increasing, especially in densely populated areas where land is already scarce, and difficulties can arise whenever new rightof-way must be secured for traditional transmission lines. HVDC technology enables large amounts of high-quality electricity to be delivered where it is most needed with complete control, with a very compact transmission system.
Mumbai is one of the world’s most densely populated cities, with a population of over 20m, and, by utilising Hitachi Energy’s compact HVDC system and 50km of underground cables rather than overhead lines, almost 2.3 sq km of land will be saved – the equivalent of more than 320 soccer pitches.
Earlier this year Mumbai unveiled its Climate Action Plan 2, aiming towards becoming the first city to become carbon neutral in South Asia. The plan focuses on six sectors, including decarbonising Mumbai’s energy grid, building energy-efficient and climate-resilient infrastructure, and promoting low carbon mobility solutions. This HVDC link will be a crucial step to modernising the city and state grids, and essential to the fruition of the Climate Action Plan.
Hitachi Energy has an impressive HVDC track record in India, where it introduced the technology over 30 years ago with the Vindhyachal project in 1989. Raigarh-Pugalur is Hitachi Energy’s sixth HVDC project in India and the second UHVDC installation, following the multi-terminal North-East Agra link.
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Hitachi Energy selected to help bring almost 50% more power to 20m people in India
Spotlight on technology
This flameproof (Exd) detector is housed within Crowcon’s high-grade aluminium alloy case.
Certifications include gas and dust approvals for ATEX and IECEX with UL gas certification in progress.
Providing analogue 4-20mA and RS-485 Modbus signals as standard, Xgard Bright comes with an Alarm and Fault relay as standard as well as optional HART communications.
Lowering the cost of installation, the 4-wire addressable implementation drastically reduces cabling requirements. The large OLED display allows users to easily work with Xgard Bright during install, calibration and routine maintenance without the need to open the housing.
The Xgard Bright is now available with MPS (Molecular Property Spectometer™) technology.
Crowcon Detection Instruments Ltd is part of Halma group plc, a group of organisations dedicated to providing safety, health and environmental technologies to support organisations across multiple industries.
It focuses on gas detection by understanding current and future market requirements and responding accordingly.
Crowcon’s vision is to protect people and the environment from gas hazards by providing both single and multi gas monitors, enabling personal and largerscale monitoring.
Crowcon operates globally through a network of regional offices and authorised channel partners. A wide range of new gases and sensor types are now available and have been added to the configurator. Contact Crowcon for more information: www.crowcon.com
One-to-one
with Jonathan Brindley Managing Consultant, JBPRM LtdJonathan Brindley has over 30 years’ industry experience working in worldclass organisations in the process, power and energy sectors, where he has first-hand experience of managing both marketing and business development departments, with considerable influence over board decisions, and subsequent product/service growth strategies.
QCan you tell us a bit about JBPRM and your role as managing consultant?
AJBPRM is an all-inclusive, complete marketing and business development agency very much focused on directly reaching out to people in the energy, power and process sectors. Yes, we can do a lot of research and provide the best information for a decisionmaking process (like graphics, white papers and branding exercises), but we set ourselves apart by really having the ability to go and talk to the right people in the right places of the market and close sales opportunities. What we hear often from clients is that it is very rare to find a company that has the sector insight as well as the expertise of business development, sales and marketing.
A lot of this expertise comes from my own hands-on experience with companies such Alstom Power (now GE) and Doosan Babcock (soon to be part of Altrad), having already managed marketing and business development activities in the energy industry for over 30 years. As the managing consultant, I’ve been able to bring my knowledge with these companies’ technical specificities and language and merge it with our solid marketing skills. Having a transparent and direct relationship with our clients is important for us. This, of course, makes our contact
with them much smoother, as JBPRM understands from the get-go not only what they’re talking about, but also their needs as a company from the energy, power or process segments. Being able to inform my colleagues about specific client business drivers or their products and services just makes for a better overall service and is indeed our unique buyer proposition.
QYou’ve been managing marketing and business development activities within some of the largest engineering companies in the world since 1997. What motivated you to form your own company, JBPRM Industrial Marketing, in 2017?
ATrust is everything. I know that it’s a great asset for companies when they can rely on a supplier or a consultant who is almost an extension of their business. I knew this would be in my case as an experienced, highlevel marketing and business development professional with skills in the energy sector, so I was willing to explore this opportunity – and we’ve been successful at it. I’ve recently had meetings with two of our newer clients (in Rotterdam and Paris), and on both occasions they emphasised what a refreshing change it was to have somebody who understood their business and sector right off the bat. The COO of one of our clients commented to me recently
spotted JBPRM on the internet, I thought it was too good to be true, as we had looked for so long for the right partner with no results. I have now found out that I thought wrong’. I believe this really sums up our advantage in relation to similar agencies that are not as centred in the power and energy industry and not as familiar.
The energy industry has been impacted by the COVID-19 pandemic and is now experiencing the effects of the war in Ukraine. What has been JBPRM’s approach during this period?
I think this comes down to exceeding customers’ expectations on the services side, which is something that JBPRM already sought from the very beginning. Again, our business is supposed to serve as an extension of our clients’, our philosophy is to treat their business as our own. Delivering a service that goes over and above initial projections keeps clients by your side, especially so during times of crisis, when a job well done is more valuable than ever. For example, even though the industry’s been going through tough times, we’ve got companies expecting to sign again next year because, putting things in very crude terms, JBPRM has got them more leads for 2022 than they can handle. This is not by accident; we work really hard to make a difference.
QIn which part of the business do you anticipate the greatest growth in the next few years?
AMy belief is that there will be an increase in oil and gas activity as a result of the Ukraine war and the transition in power away from fossil fuels will continue yet at a slower pace. In oil and gas, I think that the focus from now on will be on maintaining existing platforms and facilities, so that companies can guarantee that the flow of the industry is maintained, and those fields that were already positioned for exploitation will be promptly given green lights by HM Government.
As for power, as I’ve already said, there will be a major transition. We already see Hinkley Point C taking shape and this will be followed by Sizewell C (each 3.2GW). The question that I have on nuclear is how much of a part will smaller nuclear reactors play in the next decade? These smaller units will be more distributed, which from a transmission point of view is much better. We’re also going to see significant growth in solar generation, especially in households, while onshore wind will remain stagnated, with GW of offshore wind capacity entering the market and an increased requirement to store this energy for dispatch when required by the balancing mechanism. It is a complicated situation, and I have not even mentioned the role of conventional steam generation, or our aging gas fleet, or interconnection.
With that said, from a JBPRM perspective, there’s nothing that could keep us from taking advantage of any of the government’s scenarios. Anywhere we go, we know all these sectors, there will still be companies in need of our support.
QThe energy transition agenda grows each year in company discussions worldwide. How does JBPRM see itself in this process?
AAs managing consultant, I’m very aware of the net zero targets set for 2050, even because a lot of the companies that with which we’ve worked so far at JBPRM are all about or currently entering energy transition. No one can hide away from our need to support the little blue dot we call home, especially in the energy industry, as we can all be called out on social media with the effects being catastrophic. As we treat JBPRM as an extension of our clients’ businesses, we must embrace it fully too – from a simple email saying, ‘do you really need to print this?’ to larger and more complex processes related to the promotion of AI-based software. We’re always thinking of how we can communicate that these companies are concerned and taking action to turn energy transition into reality, which can be quite challenging sometimes if the client in case, software developers for example, doesn’t directly work in this space.
Besides, JBPRM follows the corporate responsibility of not accepting greenwashing under any circumstance, which is something we’re very truthful about with our customers. If efforts for diminishing CO2 emissions is there in their work, we’ll bring it out, but we’re not going to tell untruths while promoting their services or products. This would be detrimental not only for us in the longer term, but also for them. Of course, this can always turn into an opportunity to present our clients ways to start being more sustainable and how to bring that to the public in a realistic and honest manner.
What does the future hold for JBPRM? What are its major plans and goals?
Our goal for 2022 has already been accomplished. We set ourselves the simple goal of getting two new customers during the year. In all honesty, we have been keeping an intentional low profile until we had some references. During this year, we have started to promote ourselves more with search engine optimisation (SEO) a focal point. Now we are ready to start letting individuals and companies in the market become aware of our existence, what we do and how we can be of use to them. So, I would say that, for the rest of the year and the next, our plans and goals will revolve around keeping true to our business model to deliver a very specific and flexible service to companies operating in our chosen sectors.
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New EIC members
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Abyss Solutions
Suite 221
Neo House Riverside Drive Aberdeen AB11 7LH
Contact John Murray, Head of Region – Europe & Africa
Telephone +44 (0)7849 262 720
Email j.murray@abysssolutions.com.au
Web www.abysssolutions.com.au
Abyss Solutions is pioneering autonomous inspection at scale across land, sea, air and space, providing the intelligence that enables autonomous systems to deliver inspections regularly and reliably at scale with world leading speed and accuracy.
Its perception technology is a leader in the industry, enabling asset teams to achieve things they could only dream of – capturing an entire asset in a fraction of the time and cost of a traditional inspection.
Partnering with clients throughout the entire inspection journey, Abyss Solutions brings together world-leading experts, technology and partners to deliver an industry defining, integrated solution.
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Brave Engineering Services Technical
Unit B1-16-5, Soho Suite KLCC Jalan Perak off P Ramlee 50450 Kuala Lumpur Malaysia
Contact Tengku Mohd Adam Bin Tengku Ali, Chief Executive Officer
Telephone +603 2181 0337
Email adam@brave-est.com.my
Web www.linkedin.com/company/ brave-engineering-services-technical/
Brave Engineering Services Technical Sdn Bhd – BEST, was established in 2020, proudly serving the oil and gas industry specialising in well intervention and completion services.
Through the experts within the company, resources and R&D team, BEST is now moving forward to expand the business to support the industry with the latest reliable technology to achieve its client’s ultimate goals in the business.
Despite the pandemic and world oil and gas challenges, BEST maintains its presence by providing competitive and better alternative solutions for its clients to maintain their productions.
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Capital Consulting International (CCi)
10th Floor, Office 1003, 1005 and 1007 Arenco Tower
Al Marsad Street
Dubai Media City
United Arab Emirates
Contact Charlotte Hobbs, Head of Business Administration
Telephone +971 4 320 3396
Email charlotte.hobbs@cci-int.com
Web www.cci-int.com
CCi is an independent global consultancy that is recognised around the world for its expertise in the insurance and construction industries.
For nearly three decades, its technical, delay, quantum and project management experts have brought clarity and resolution to some of the world’s largest and most complex insurance claims and construction disputes.
With a dedicated team of over 200 industry experts across 21 offices worldwide, CCi has firmly established itself as one of the most trusted partners to the insurance and construction industries.
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Cobalt Energy Limited
Suites 5 & 6 West Road House 26A West Road Buxton, Derbyshire SK17 6HF
Contact
Dan Parkes, Head of Consulting and Innovation
Telephone +44 (0)1298 931 997
Email dan.parkes@cobaltenergy.co.uk Web www.cobaltenergy.co.uk
Cobalt Energy is an independent engineering project delivery and operational services company working in the renewable power sector.
Specialising in waste to resource (energy or chemical) and biomass projects as well as energy storage and distribution, the company offers consulting, engineering, delivery and operation services covering the entire lifespan of a project from inception to decommissioning.
Cobalt Energy’s strength is providing practical solutions to deliver projects effectively. Every project it works on is unique and the company prides itself on a tailored and dynamic approach for each situation securing optimal outcomes for clients.
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Diavaz SA de CV
Av. Revolución 468, Piso 3 B2 Col. San Pedro de los Pinos Alc. Benito Juárez Ciudad de México CP 03800
Contact
Ildefonso Aguilar, New Business Director
Telephone +52 55 5062 1300
Email iaguilar@diavaz.com Web www.diavaz.com
Diavaz is an organisation made up of various business segments that participate along the oil value chain, made up of subsidiaries and companies created through alliances with national and international strategic partners.
Services are provided by four divisions of highly specialised service groups according to the corresponding industrial segment: Diavaz O&G Services, Diavaz Midstream, DEP O&G and Diavaz Gas & Power.
NEW RENEWABLES MEMBER Energen
27 Old Gloucester Street London WC1N 3AX UK
Contact Dan Clark, Founder Telephone +44 (0)742 994 9816
Email dan@energenrecruitment.com Web www.energenrecruitment.com
Energen is a specialist renewable energy talent partner, supplying the highest calibre engineering and construction personnel to globally recognised EPC’s, developers and equipment manufacturers.
Its extensive networks and technical expertise allows the company to work in partnership with businesses on critical energy and storage projects supplying millions of homes worldwide with clean energy.
Energen ensures its partner projects have access to both local and expatriate experts who bring necessary niche skillsets during design, engineering, construction and commissioning phases.
Energen focusses on, but is not limited to solar, wind, green hydrogen and storage + T&D.
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EquipSea Equipamentos e Serviços Industriais
Rua Tambaú, 300 Piracicaba/SP Brazil CEP 13413-013
Contact Claudio Jose Evangelista, CCO Telephone +55 19 3052 1705
Email claudio.evangelista@ equipsea.com.br
Web www.linkedin.com/company/ equipsea-equipamentos-eservi%C3%A7os-industriais/
EquipSea is a manufacturer of welded, machined and coated parts with great expertise in the oil and gas sector, but not limited to it, as well as turnkey assembled and tested assemblies including seals, hydraulic components, piping and connections, electrical components etc.
EquipSea provides parts and sets in structural carbon steels, alloy steels, austenitic, martensitic, duplex and superduplex stainless steels, special high-nickel alloys, no matter if just a few grams, parts or sets up to 40 tons.
EquipSea also provides Inconel cladding services and highprecision machining, with a bunker for hydrostatic tests up to 30kpsi.
EquipSea has a highly qualified technical and management team, ISO 9001 and ISO 45001 certified.
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Invigour Energy Sdn Bhd
Suite 15-09
Binjai 8 Premium SOHO 50450 Kuala Lumpur
Contact Thierry Wee, Managing Director Telephone +603 2701 8130
Email thierry.wee@invigour-energy.com Web www.invigourenergy.com
Invigour Energy is an oil and gas consultancy business that was established in 2015. It offers integrated services including consultancy, technology and learning which are tailored to each clients’ differing needs in the oil and gas industry.
Invigour Energy’s strengths in delivering oil and gas solutions come from its expertise and vast experience in petroleum engineering, reservoir engineering, production technology and other subsurface disciplines.
It has developed significant expertise and a thorough understanding across the full range of oil and gas projects including reservoir study, full-field review, field development plan, resource/reserve assessment, enhanced oil recovery study, well and reservoir surveillance, well activity management systems, production enhancement and production optimisation.
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Oilfield Offshore Services Sdn Bhd
C-6-4, Megan Avenue 1 189 Jalan Tun Razak 50400 Kuala Lumpur Malaysia Contact Muhamad Paizal Othman, Managing Director Telephone +603 2181 6884
Email mpo@oos.my Web www.oos.my
Oilfield Offshore Services Sdn Bhd (OOSSB) is a 100% Malaysian company incorporated and established in Malaysia in 2011 with the aim of creating a business niche as a provider of specialised onshore and offshore pipeline inspection services.
OOSSB is a registered contractor of the Ministry of Finance (MOF) and a PETRONAS licensed company with several SWEC code compliances.
OOSSB is armed with a team of professionals together with its own technical partners specialising in corrosion and associated oil and gas business, which is at the forefront of the company’s vision and execution of its business repertoire.
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Ranhill Power Services Sdn Bhd
Bangunan Ranhill SAJ Jalan Garuda, Larkin 80350 Johor Bahru Johor, Malaysia
Contact Aqtar Fariq Syahril Bin Othman, Head of Business Development (Power Division)
Telephone +603 2716 5637
Email aqtar.fariq@ranhill.com.my
Web www.ranhill.com.my
Ranhill Utilities Berhad brings together the expertise, technology, innovation and human energy required to deliver world-class projects on an unprecedented scale.
Every project the company undertakes adheres to a singular regimen: identify optimum solutions, apply wealth of experience and expertise, while providing quality, innovative and sustainable services to meet – if not exceed – clients’ needs.
The results are apparent in Ranhill’s vast portfolio of projects spanning construction, engineering, power generation, water technologies, management and more. Making its mark in not just Malaysia and South East Asia but across the world.
Ranhill’s certifications, awards and project successes attest to the Group’s industry experience, professionalism and expertise. To date, it has built a portfolio of some of the most complex, challenging and demanding projects related to water supply services, wastewater treatment, power, oil and gas, infrastructure and transportation.
Ranhill Group consists of three business divisions, Environment, Energy and Services.
NEW RENEWABLES MEMBER RWDI
600 Southgate Drive Guelph ON N1G 4P6 Canada
Contact Dmytro Nechyporenko, Strategic Director –Renewable Energy Telephone +1 519 823 1311
Email dmytro.nech@rwdi.com Web https://rwdi.com/
Over the past four decades, RWDI has evolved from a respected Canadian company with deep technical expertise in wind engineering to a global firm known for solving some of the world’s most demanding building performance, climate engineering and environmental challenges.
Its team of more than 500 engineers, scientists, sustainability specialists and support professionals help clients around the world meet their engineering needs and advance their broader business goals.
Working from offices across North America, Europe and the Asia Pacific region, RWDI drives success on ambitious building and infrastructure projects – enhancing their performance and efficiency, and assessing and mitigating their environmental impacts.
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Member news
ABB collaborates to simplify and reduce cost of CCS
ABB and CCS specialist Captimise have joined forces to help industrial CO2 emitters find the most efficient and cost-effective solution to integrate CCS into their operations and eliminate the release of CO2. The UK Government’s Industrial Decarbonisation Strategy sets out the goal of reducing industrial CO2 carbon emissions by at least 90% by 2050, with CCS cited as a key tool in achieving this.
The UK will become a role model for other countries through its work leading the way within CCS. We are very happy that we can join forces with ABB to speed up the decarbonisation process.
Mattias Jones, CEO, CaptimiseCaptimise’s experience across Europe and the US includes over 25 live case studies with CO2 emitters from a range of different industries. Together with ABB’s depth of knowledge in the power, oil and gas, and chemicals sectors, Captimise offers support to CO2 emitters as they transition to more sustainable operations.
Through their screening study methodology, ABB and Captimise partner with operators to evaluate the alternative technologies and plant configurations available to achieve CCS, while considering this in the context of their wider business objectives. This and a technology agnostic approach means that the most cost optimised and appropriate solutions can be identified.
Addleshaw Goddard advises BII on US$200m hydropower deal
Addleshaw Goddard has advised British International Investment (BII), formerly CDC Group, on a US$200m investment into new hydropower projects across Africa through its participation in an existing joint venture between Norfund and Scatec ASA.
Alongside Norfund and Scatec ASA, BII will fund the creation of the first tri-national PPP in Africa (Ruizi III HPP) and Malawi’s largest power plant (Mpatamanga HPP) among other projects. The investments are expected to support the creation of 180,000 jobs and avoid at least 270,000 tCO2e of GHG emissions annually. Together, the plants could provide enough clean energy to meet the equivalent demand of over 3m people. This will be BII’s largest investment in hydropower in its 74year history.
The deal was led by Addleshaw Goddard’s Africa Business Group, which has over 26 years’ experience of advising clients on their investments and operations across Africa and across a wide range of sectors.
Addleshaw Goddard is a leading international law firm operating across 18 offices in Europe, Asia and the Middle East. Each year the firm works with over 3000 major businesses, including 48 FTSE 100 companies, across 90 countries.
Amarinth becomes ISO 14064-1 certified
Amarinth, a world-leading, net-zero designer and manufacturer of low lifecycle cost centrifugal pumps and associated equipment, primarily for the offshore and onshore oil and gas industries; nuclear and renewable energy generation; defence; desalination; process and industrial markets, has recently been certified in accordance with the ISO 14064-1 Carbon Reduce scheme, the international standard for quantifying, reporting and removing greenhouse gas emissions.
Amarinth was founded over two decades ago with one of its guiding principles being the delivery of more efficient pumping solutions, targeted initially at the oil and gas industry that hadn’t been well served in that respect. Since then, the company has expanded its customer base across many of the process, energy and renewable industries around the globe. With the advent of time, carbon reduction has become an important business fundamental for organisations and Amarinth has continued at the forefront of this within the pump industry.
The company has been certified in accordance with the ISO 14064-1 Carbon Reduce (powered by Toitū) scheme, the UK’s only Accredited Greenhouse Gas Certification Scheme for the quantification and reporting of greenhouse gas emissions and the identification of actions to reduce them.
Accreditation to the standard will enable Amarinth to fully support its customers who have either achieved ISO 14064-1 certification or who are working towards it, and actively encourage its supply chain to attain this standard.
Ashtead Technology signs rental agreement with RTS
International subsea rental equipment and solutions specialist Ashtead Technology has signed a rental agreement with Norway-based RTS, an international provider of electronic engineering equipment for the underwater industry.
Under the deal, Ashtead Technology will have access to RTS’s owned equipment fleet to better support customers globally.
In addition, Ashtead Technology has purchased an initial 10 Gen 5 multiplexer systems which will have the capability to upgrade to Gen 6 specification.
The Gen 5 is one of the most versatile survey multiplexer systems in the market offering accurate, flexible and robust subsea data transfer combined with user-friendly interfacing and 850W of power capacity subsea.
The RTS Gen 5 multiplexer systems are now available to rent throughout Ashtead Technology’s international technology and service hubs.
Ashtead Technology is a leading provider of equipment rental solutions, advanced underwater technologies and support services to the global offshore energy sector.
more information: www.ashtead-technology.com
To Georgia by rail with AsstrA
In the spring of 2022, Swiss transport and logistics multinational AsstrAAssociated Traffic AG opened its first Georgian office in Tbilisi. The AsstrA Georgia team leverages all transport modes to ship a wide range of goods, including heavy, oversized, bulk, liquid and alcoholic beverage cargo.
Railways play an important role in the transport network and supply chains of the Caucasus region. Goods traffic passes through this network from Europe to Central Asia, China and the Persian Gulf. A key trunk rail segment runs from west to east. All together, the Georgian rail network consists of 1,600km of track.
In July 2022, AsstrA Georgia obtained its own rail transit code, which allows customers to take advantage of smooth transit of goods across the Caucasus.
For more information: https://asstra.com/
Belzona appoints new application and training director
Designers and manufacturers of polymer repair and protection systems, Belzona, has announced the promotion of long-serving employee, Phil Robinson, to its board of directors. Mr Robinson, who joined as a trainee project manager in 2007, has now been appointed as application and training director. Mr Robinson will be responsible for identifying opportunities to expand the application of Belzona’s polymer solutions across a wider range of engineering industries such as wind power, hydropower and waste-to-energy, among others. He will also continue to drive the Belzona application and training programme, which aims to provide its distributor network with technical and practical training on the use of Belzona systems.
Mr Robinson’s new appointment as application and training director is part of the company’s ongoing investment in its staff members, as well as its commitment to ensuring that distributors and contractors have access to excellent training services.
Belzona is incredibly well placed to help resolve so many of the issues faced in industry worldwide and I’m looking forward to doing my part in ensuring that potential is realised.
Phil Robinson, Application and Training Director, Belzona
In order to ensure that training courses are available globally, in addition to its headquarters in Harrogate, Belzona also provides courses at its state-of-the-art training centres in Miami (US), Chonburi (Thailand), Jiangsu (China) and Ontario (Canada).
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For more information: www.belzona.co.uk
Global Critical Logistics enters partnership to support growing live events market in Middle East
Global Critical Logistics (GCL), the holding company for a family of brands that include CargoLive, Rock-it Global, Dietl, Cosdel and Dynamic International, has signed an exclusive commercial partnership agreement with SAL Saudi Logistics Services, the leader of integrated logistics services in Saudi Arabia. Under the agreement, SAL will provide exclusive logistics services to all GCL companies inside Saudi Arabia, serving end-customers in the entertainment, live events, (motor) sports, fine arts and film and television production.
GCL will support SAL for all global logistics and freight forwarding services for these end markets for projects originating in Saudi Arabia and requiring solutions into and out of the country.
Saudi Arabia’s Vision 2030, an economic and social reform framework, includes plans to invest in all end markets that GCL services globally, with an estimated US$64bn investment to aid in making the country into a top-tier destination for the entertainment industry.
SAL handles 99% of Saudi Arabia’s inbound and outbound air cargo with operations in Riyadh, Jeddah, Dammam, Madinah and many other domestic stations, and has been building out a highly capable logistics solutions team focused on end-to-end services for timecritical end markets. SAL has established a countrywide network of infrastructure, experienced staff and vendor relations across all modes of transportation necessary to deliver high-quality service in and out of Saudi Arabia.
GCL is growing its global footprint and acquired Dynamic International at the end of last year and just recently added Madridheadquartered Asesores de Flete SA (ADF), a long-term partner, to the group. GCL also recently expanded its activities in Miami, Portugal, South Africa and Singapore to better serve its clients.
Headquartered in Los Angeles, Global Critical Logistics (GCL) is focused on high-touch, missioncritical air, ocean and surface freight forwarding and logistics services. The GCL family of leading brands works with customers in live entertainment and music touring, sports, broadcasting, corporate events, tradeshow, fine arts, classic and high-end automobiles, film and television production, and industrial projects end markets.
For more information: www.rockitcargo.com
Cashman Equipment Corp awarded ISO 9001:2015 certification
Cashman Equipment Corp (CEC), a global provider of ocean deck barges and marine equipment, has announced that it has been awarded ISO certification for its systems and processes under ISO 9001:2015. CEC’s ISO 9001:2015 certificate (#US017132) was issued by Bureau Veritas Certification (BV).
CEC is excited to implement these standards in continuing to provide high quality and reliable marine equipment and transportation solutions to the global marine markets.
Samina Mahmood, QMS Co-ordinator, CEC
ISO 9001:2015 is a globally recognised quality management standard developed and published by the International Organization for Standardization (ISO). This standard is based on several quality management principles including a strong customer focus, the motivation and implication of top management, process approach and continual improvement.
Following the opening of the India office in February, Fulkrum’s strategic expansion continues to grow across its four key regions –the Americas, Europe and Africa, Asia Pacific and the Middle East. With new contracts awarded in Libya and Yemen and several entities being established across the Middle East, the region has seen an increase in revenue of 33.5% over the last year. It is expected to see its KSA and India team double this year with a recruitment drive to support ongoing projects in the region.
The Asia Pacific region has also seen month-on-month revenue increases following an uptake in recruitment to support regional projects across Vietnam and Indonesia. With a focus on assisting its clients in the energy sector, the rise in LNG production throughout the Middle East, India and the wider Asia Pacific region has led to Fulkrum’s continued growth as it supports its clients with these landmark LNG expansion projects.
Earlier this year, Fulkrum announced a key project win for its renewables team to provide inspection services during the Dogger Bank A development stage. The project includes a potential contract extension to zones B and C, ensuring conformity and quality of the wind turbines and main components, including blades, tower sections and nacelle.
Hitachi Energy supports huge step in Germany’s energy transition
Hitachi Energy, a global technology leader that is advancing a sustainable energy future for all, has won a major order from TenneT and TransnetBW, two of Germany’s four transmission system operators, to supply a transmission solution for the SuedLink DC4 high-voltage direct current (HVDC) interconnection between the north and south of the country.
SuedLink DC4 is one of the most important power grid and energy transition projects in Germany. It will play a crucial role in Germany’s energy transition, enabling a reduction in the use of fossil fuels and helping the country achieve carbon neutrality by 2045.
Using Hitachi Energy’s HVDC Light® technology, SuedLink DC4 will transfer up to 2,000MW of emissionfree electricity, enough to power 5m German households. The link will efficiently transmit electricity for 550km underground, at ±525kV, sending wind power from the north to the industrial south, or alternatively solar power from the south to the north when needed.
Fulkrum announces successful six months focused on global growth
Fulkrum, a leading provider of inspection, expediting, auditing and technical staffing to the energy industry, has reported global expansion, team growth and new contracts in the Middle East and India.
Established in 2011 in Corby, Fulkrum has grown into a global company with a strong international footprint. Operating in the four key regions –the Americas, Europe and Africa, APAC and the Middle East – Fulkrum has a sustainable track record in the oil and gas, petrochemicals and renewables sectors, offering comprehensive expertise in the provision of inspection, expediting, auditing and technical staffing services across the upstream, midstream and downstream oil and gas and renewables markets.
For more information: https://fulkrum.com/
Hitachi Energy will supply an HVDC light converter station at each end of SuedLink DC4 to convert AC power from the transmitting grid to DC for delivery through the link, and back to AC for transfer to the receiving grid. The contract includes three cable section stations to speed up fault detection in the link.
As part of its long-term commitment to Germany’s energy transition, Hitachi Energy has recently won or completed orders for solutions that integrate large-scale renewables which include the converter stations for the NordLink HVDC interconnector between Germany and Norway.
i For more information: www.hitachienergy.com
UK and global blast resistant buildings from IMS
IMS Blast Resistant Buildings Ltd designs, manufactures and installs blast resistant buildings for hazardous environments in the UK and globally. Its blast resistant buildings range includes both stand alone and modular buildings, which can be manufactured in bespoke sizes and specifications, from 100mba to 1000mba.
IMS’ BRM’s are used for a range of applications in the petrochemical industry and sites in which hazardous materials are processed or stored, maximising safety of personnel and protecting equipment and the environment.
The range includes offices, welfare facilities, control rooms, toxic refuge, shelters in place, substations, control rooms and remote instrument enclosures with all buildings engineered in accordance with the following guidelines:
ASCE – design of blast resistant buildings in petrochemical facilities;
API 752 (2009 edition) –management of hazards associated with location of process plant permanent buildings;
API 753 (2007 edition) –management of hazards associated with location of process plant portable buildings;
CIA – the guidance for the location and design of occupied buildings on chemical manufacturing sites (2010 edition).
IMS Blast Resistant Buildings Ltd is part of IMS Energy Ltd, headquartered in Darlington, UK, with a blue chip global customer base. IMS Energy is a well known and a highly regarded business providing multi-disciplinary engineering, fabrication and project management services. For more information visit IMS’ website.
Kiwa opens hydrogen production plant
Clare Jackson of Hydrogen UK was guest speaker at the official opening of Kiwa’s local hydrogen production plant last month.
The plant and technology demonstration site is linked to Kiwa’s new test labs by the UK’s first low pressure hydrogen distribution pipeline, operated under the Gas Act 1986. The ability to connect to a continuous flow of odourised hydrogen will be invaluable to manufacturers seeking to understand the performance and longevity of their appliances.
The Kiwa team (including project manager Georgina Orr and project engineer Dr Leighton Holyfield) has designed and managed the build of the hydrogen production plant, which involves steam methane reforming (SMR) of natural gas, primarily from a local biogas source, and the conversion of Kiwa’s labs to use this piped hydrogen.
The knowledge gained is already proving useful to standards developers, market regulators and those looking to convert their own facilities to use bulk hydrogen.
Hydrogen valve
Oliver’s could do
Oliver Twinsafe has been working with sister companies Oliver Hydcovalves and Oliver R&D, to prepare its 2” metal seated trunnion ball valve ready for hydrogen applications. Testing using helium, which is the best substitute to hydrogen, has been carried out by R&D technician John Whitehead who said:
RSK Group welcomes specialist systems integrator Proeon Systems
RSK Group Ltd has announced the addition of Proeon Systems, a specialist systems integrator supplying industrial grade control and safety solutions, to its business portfolio.
The company provides complete industrial grade control and automation systems incorporating both hardware and software solutions. Proeon specialises in solving control and monitoring issues within some of the harshest environments, including nuclear, renewables (offshore wind) to deepwater subsea for the oil and gas sector. Proeon has an enviable reputation for design, build and installation of control solutions from multi-level communications platforms.
The Norwich-based business was established in 2004 by Kevin Magee and Eddie Pond and has developed a strong client base which includes National Grid, Procter & Gamble, Shell and Crosswind, and contractors such as Balfour Beatty and Worley.
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For more information: www.proeon.co.uk
Proserv to drive development of optimisation software
Global controls technology leader Proserv has signed a Memorandum of Understanding (MoU) with UK based start-up company Ortomation. The tie-up is intended to facilitate the development and commercialisation of unique real-time optimisation (RTO) software.
The agreement is the latest development in Proserv’s ambitious technology roadmap which is focused on delivering impactful, disruptive monitoring and optimisation solutions, harnessing the power of data analytics, to bring gains right across the energy sector. By targeting production and yield increases, as well as a reduction in energy consumption and other operating costs, effective RTO software can increase performance by up to 5%. As businesses align themselves towards the needs of the energy transition and a net zero future, RTO can offer tangible upside around improved operational efficiencies and reduced emissions footprints. Visit Proserv’s website for more information.
information:
Investment in Sonardyne’s PIES shows confidence in marine seismic market
Marine technology company Sonardyne has seen an uplift in orders for its Pressure Inverted Echo Sounder (PIES) technology into the exploration and reservoir surveillance market.
Sonardyne’s PIES technology, which helps geophysicists to better understand the physical processes that occur in the deep ocean, has been acquired by a string of companies performing both towed streamer and ocean bottom node (OBN) deployments, highlighting increasing activity in the sector.
Among those investing in PIES are marine geophysics data and services company PGS Geophysical and ocean bottom nodal firm Magseis Fairfield. Geophysical services provider PXGeo has also ordered a number of Sonardyne’s PIES.
PIES is a long endurance, selfcontained oceanographic instrument for precisely measuring average sound speed in the water column as well as water depth information. By collecting these observations as seismic data is being acquired, PIES helps to reduce uncertainty in the imaging data, helping to provide a clearer image and guide operational decisions.
PIES are regularly used across the marine seismic market as well as by oceanographic institutions interested in understanding the ocean. The instrument can be deployed on the seabed by ROV or freefall deployed from a surface vessel and configured for autonomous monitoring campaigns lasting several months to several years. PIES can also be deployed in wired configurations, allowing a constant data feed to topside facilities.
North American growth on cards for pipeline tech specialist STATS Group
STATS North America is projecting 30% year-on-year growth in Canada, with more than 45% year-on-year growth in the US, underpinning an estimated 15% global growth for STATS Group.
As a company, we recognise that we must play our part in the transition to net-zero and have just released our first sustainability report, which is an overview of our global operations and a commitment to look at reducing carbon emissions wherever possible.
Stephen Rawlinson, Vice President for Americas, STATS Group
Headquartered near Aberdeen, Scotland, STATS’ principal activity is the provision of pressurised pipeline isolation, hot tapping and plugging services to the energy industry.
The pipeline technology specialist is long-established in North America where its double-block and bleed BISEP tools are widely accepted as the market leader in safe, efficient pipeline isolation projects.
Indeed, a significant proportion of the projected North America growth has been attributed to STATS’ unique ability to execute large diameter pipeline workscopes of up to 48” –with competitors unable to undertake double-block and bleed isolation projects upward of 36” diameter.
Another factor which will appeal to existing and potential customers is STATS’ commitment to supporting net-zero carbon objectives and it recently completed one of the industry’s first leak tight doubleblock and bleed isolations with emission-less venting, resulting in zero methane gas emitted into the atmosphere.
The company has had a presence in Edmonton since 2006 and in Houston since 2014, and there could potentially be future expansion of the company’s infrastructure in North America.
Hygienic bimetal thermometer from WIKA
The requirements of the pharmaceutical industry, the food industry and also biotechnology are met by the new bimetal thermometer from WIKA, the model TG58SA.
display instrument is in an ASME BPE-compliant design, meets the 3-A sanitary standard and has EHEDG and ATEX approval.
This makes the thermometer as flexible as it is globally applicable. The selection of industry-standard scale ranges and process connections (clamp, DIN 11864, VARINLINE®) also reflects this.
All information about the connections is lasered on. In addition, the active length of the sensor is indicated on the dial to ensure correct temperature measurement.
The new measuring instrument, whose stem has a hemispherical bottom, can be cleaned in a process-safe manner in accordance with 3-A and EHEDG. It is suitable for CIP/SIP and wash-down processes.
The hygienic features of the TG58SA are complemented by a robust design. The thermometer offers a high overtemperature resistance. Its shatterproof window is also UV-resistant.
Social media round up
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UK and Europe news
Last month we held the first live National Awards Dinner in two years, and it was fabulous. Just over three hundred energy sector professionals came together at the Grand Connaught Rooms in London for a wonderful evening of celebration, great food and networking. A huge thank you to our sponsors who without their support we couldn’t hold such an amazing evening. Thank you also to Stephen Mangan who did an amazing job hosting the evening. Finally, many congratulations to all of the winners.
With just a weekend to recover we went straight into another week of events. On the Monday evening we welcomed the Houston delegation to London, alongside DIT and hosted an evening reception for the delegation to meet our UK members. The following day saw our analysts and invited guests come together for a roundtable event where they discussed the various UK opportunities in the carbon capture market. Later in the week our series of events with Mott MacDonald continued with a nuclear showcase and discussed why the drive for nuclear must work this time. Being such a current topic, the event proved very popular.
Out panel of experts discussed the importance of the anticipated new round of investment in nuclear power generation and development of new nuclear technologies. Not stopping there, we then headed up the road and held a networking lunch at the Drax Power Plant for EIC members, which included a fascinating tour of the site.
Forthcoming
Middle East news
Regional update
It is hard to believe that as you are reading this ADIPEC 2022 will have finished, and we will be looking towards the end of the year with COP27 taking place in Sharm El-Sheikh, Egypt.
Ryan McPhersonOn that note, I would like to thank all of our exhibitors, speakers and attendees to the UK pavilion for the four days of ADIPEC. Once again it illustrated why this is the premium event in the energy calendar. Plans are now underway for next year’s event.
I am pleased to announce that we have a new member of the team joining us as our new events co-ordinator, Harsimran Singh started with us in September, where I am sure you will all join me in welcoming him to the team.
We have also been busy delivering Diversity in the Energy Sector – ESG to SDG for a sustainable future sponsored by ExxonMobil in collaboration with SPE Abu Dhabi Section. This was a tremendous event where I see this form of collaboration as a win-win for all parties as we seek to build the best networking opportunities in the region.
As part of this event we held our inaugural EIC Middle East & Africa Regional Awards where I would like to commend all of our finalists and of course those fortunate enough to win on the day. This event is now taking place across all of our regions and optimises the wealth of talent and ingenuity that we have within our membership. Our roundtable series and monthly energy luncheons will continue for the remainder of the year and into 2023. At the time of writing, we are looking to combine our luncheon on Thursday 24 November with a business opportunities with McDermott presentation, hopefully this will come to fruition, and I look forward to seeing as many of you there as possible.
Trade missions will also begin to factor into our plans for next year with initial conversations taking place to run a delegation into Azerbaijan and Mozambique respectively. I would be interested to hear from anyone who would like further information.
Finally, it’s important to note that the FIFA World Cup will take place in Qatar from 20 November – 18 December 2022 which may have an impact on business activities during this time. Regardless of who you are supporting, I wish your team all the best and it is great to see such an illustrious tournament taking place in the region.
Ryan McPhersonRegional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com
Regional news
TotalEnergies sells 18% stake in Iraq oilfield
TotalEnergies has sold its 18% in the Sarsang onshore oilfield in the Kurdistan region of Iraq to ShaMaran Petroleum for US$155m. The Sarsang field, discovered in 2011, is operated by the energy firm HKN which retains 62% ownership, with the Kurdistan regional government owning a 20% interest. TotalEnergies’ share of production in the field was about 3,500 barrels per day in 2021. Iraq, OPEC’s second-largest producer, depends on oil revenue to meet 90% of government expenditure. It exports an average of 3.3m barrels of oil per day, while production in the semi-autonomous Kurdish region amounts to just over 450,000 bpd. The country is aiming to boost its total production to 8m bpd by 2027, from about 4.5m bpd currently.
ADNOC Refining to complete first phase of waste-heat recovery project
ADNOC Refining expects to complete the first phase of its waste-heat recovery project in Ruwais by the end of this year as part of efforts to decarbonise operations. Work on the US$600m project, located at the site of the general utilities plant in Ruwais, began in 2018. The waste-heat recovery project will capture exhaust heat from the gas-powered turbines at the Ruwais plant – which is currently vented into the atmosphere – to produce steam that is subsequently used for power production. The project will recycle waste heat to produce up to an additional 230MW of electricity a day and 62,400 cubic metres of distilled water a day for use in the plant. Overall, the wasteheat recovery project will increase power production and thermal efficiency at the plant by about 30%.
Forthcoming events
Asia Pacific news
Regional update
This year has been an interesting one for us at EIC APAC. We started the year amidst a pandemic, dealing with a myriad of restrictions and closed borders but things shifted quite rapidly throughout the course of the year, and we have finally gained some semblance of normality with lifted restrictions and the freedom to travel across borders. With less than two months left until the new year, I would like to reflect upon some of the major events that EIC APAC has hosted over the year.
We kicked off with our annual EIC breakfast networking event in January 2022 officiated by the Deputy British High Commissioner to Malaysia, Dave Thomas. A total of 10 ASEAN member companies participated as sponsors and exhibitors, with about 200 attendees from within the energy community in KL. Although there were some restrictions due to COVID-19, we were encouraged to see the large turnout. It was an indicator for us that energy players in KL were eager to attend physical events.
In February we hosted our first monthly EIC members networking session to give members in KL an opportunity to meet one another and exchange notes. We received a lot of positive feedback for this event that was attended by more than 50 members and non-members. This led us to continue hosting similar networking events within KL and beyond (once the borders opened) with the aim of engaging with existing member companies and recruiting new members within the Asia Pacific region. We ran two major series of networking events this year – the Coffee and Chill series and Meet The Energy Players (MTEP) roadshows. Locations included KL, Terengganu, Sabah and Sarawak in Malaysia, and Ho Chi Minh City in Vietnam.
In May, we organised the EIC APAC Energy Conversations 2022 which was a huge success. The event was officiated by the Deputy British High Commissioner to Malaysia, Dave Thomas. We also had in attendance the Group CEO of Sarawak Energy, Datu Sharbini Suhaili, the Vice President and Chief Sustainability Officer of PETRONAS, Charlotte Wolff-Bye, and the Country Chairman for Shell Malaysia, Ivan Tan. The event was geared to enlighten the energy community especially SMEs in the region on how the energy landscape is evolving in APAC.
EIC APAC also participated in various external events as an exhibitor this year, such as the Sabah Oil & Gas Conference & Exhibition (SOGCE) in Kota Kinabalu, in June 2022, and the Future Energy Asia 2022 Exhibition and Summit (FEA) in Bangkok, in July 2022.
In September, we organised and managed the UK pavilion at the Oil and Gas Asia conference (OGA) in Kuala Lumpur. This month EIC APAC is collaborating with Informa Markets to organise the Race To Net Zero – The Tools Needed In Mobilising Energy Transition session at OSEA 2022. At this session, speakers from PETRONAS, Wood and GE Gas Power will share their organisation’s energy transition strategies and discuss the tools that will enable the decarbonisation of the energy sector. The event will be held on 15-17 November 2022 at Marina Bay Sands Expo & Convention Centre, Singapore.
Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com
Regional news
EPCI prize up for grabs for Bronang gas field
Medco Energi is going ahead with its Bronang field development on South Natuna Sea Block B offshore Indonesia and has invited companies to pre-qualify for the key EPCI prize that will involve production facilities including the Bronang gas wellhead platform, modifications to the Hang Tua mobile offshore gas production unit and the Belanak floating production, storage and offloading vessel.
Samsung’s H2biscus project moves forward
Samsung Engineering is joining the group of players aiming to study the potential of supplying at least 900MW of hydro-based renewable power for the H2biscus green hydrogen/ammonia project in Sarawak, Malaysia. Samsung and South Korean compatriots Posco and Lotte Chemical are teaming up on the study with Sarawak Energy and the Sarawak Economic Development Corporation (SEDC) for the study.
EIC Newsbriefs
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Keeping you up to date with energy news from around the world
North and Central America news
Regional update
The EIC’s most anticipated flagship event in Houston has now passed – EIC Connect Energy USA 2022 was held on 14 September at the Westin Memorial City Hotel in Houston. Our in-person conference welcomed 95 delegates including sponsors, speakers and partners. The day began with a market update on oil and gas, renewables, power, and energy transition, made by Neil Golding, EIC’s Market Intelligence Director. From current market trends to current and future contracting opportunities, our EIC expert highlighted major areas of capital spend and supply chain opportunities across upstream, midstream, downstream, renewables and energy transition technologies. Following the update, we heard from speakers Melissa Jones, General Manager, Agilus a Bechtel company; Max Kolbe, Vice President, Growth & Development Conventional Energy Americas, Wood; Ravi L Bhamidipati, Vice President, Global Oil & Gas, Victaulic Inc; Aaron Drucker, Senior Commercial Director, Onshore Western Hemisphere, McDermott where they discussed what the oil and gas opportunities are in a decarbonising world.
We were honoured to be joined by speakers from some of the key players involved in regional projects. Delegates heard from Subsea 7 and Freeport LNG about their view of current market conditions, near and future opportunities, procurement processes including pre-qualification, registration, key contacts, major contracts coming out for tender in the next two years, standardisation, local content, net-zero ambitions and energy transition strategies. Followed by ExxonMobil’s supplier diversity presentation by Ileana Ferber. During the All Hands on Deck: Opportunities in the US Offshore Wind Market panel, we were delighted to welcome Michael Morland, General Manager Americas, AAL Shipping; Grant van Wyngaarden, Head of Procurement, North America, Ørsted; Hongbiao Song, Global Technical Tender Leader, GE Renewable Energy; Anthony Appleton, Offshore Wind Director, Burns & McDonnell.
We closed the day with a distinguished panel of speakers to discuss clean hydrogen developments in the US with speakers Jean-Louis Kindler, Chief Executive Officer, Ways2H Inc; Noureen Faizee, Director, Strategy & Growth, Hydrogen, Worley and Richard Caputo, Corporate Account Manager, Siemens. The EIC would like to take this moment to thank all speakers, sponsors and partners for supporting this amazing initiative.
Amanda DuhonRegional Director, North & Central America amanda.duhon@the-eic.com
Regional news
Biden sets 15GW FOW goal
President Biden has announced a target to achieve 15GW of installed capacity from floating offshore wind by 2035. This will be supported by the Floating Wind Shot initiative, which aims to drive down costs by 75% through R&D investment in engineering and manufacturing. Floating offshore wind accounts for two thirds of US offshore wind potential, with California, Oregon and Maine having the highest potential.
South America news
Regional update
In late September we saw the return of the region’s largest in person event, Rio Oil & Gas. After four years of postponements due to COVID, the event triumphed in a new amazing venue right in the heart of the city – the harbour facing Guanabara Bay. 58,000 business contacts visited the four day conference and exhibition. The EIC hosted the UK and EIC pavilions with a group of 13 companies. The highlight of the UK presence was the whisky tasting where a group of bagpipers crossed three pavilions bringing a crowd to taste over 10 different kinds of whiskies and meet the exhibitors. The Rio team also organised the seventh edition of Rio Samba and Gas, at one of the most welcoming places in the city of Rio de Janeiro – the world-famous Rio Scenarium, pictured above. Around 200 guests enjoyed a pleasant evening with the best Brazilian music and caipirinhas in the famous Lapa neighbourhood while networking with those from the oil and gas industry.
The Rio office is proud to announce the expansion of the team as a hub to support the EIC globally: the marketing team now has Samara Bernardo as social media intern and Guillermo Galván as frontend developer; the BI team has Lucas Mitidieri and Manoela Cotta updating news daily as research interns; the membership team has Victoria Grynberg as membership intern; to deliver events Rebeca Chaves, and to support Rio office services, Victoria Kegler. We are looking forward to working together to deliver for our members.
Brazil reaches 20GW of operational PV solar
Brazil’s power regulator ANEEL revealed the installed capacity of PV solar energy reached the 20GW milestone in October 2022, when utility-scale and distributed generation are added together. The sector grew twofold between August 2021 and now, having added 6.1GW of operational portfolio since 1 January 2022 (1.9GW in large scale facilities, 4.2GW across micro and mini generation systems). The PV solar sector is expected to keep increasing as new utilityscale plants, totalling over 4.7GW of new capacity, are reportedly under construction across the country.
Also in September we held a session of the Brazil-UK Collaboration Forum titled: Ceará and Green Hydrogen, business opportunities and perspectives for the sector. This webinar brought together Duna Uribe from Pecem, and Joaquim Rolim from the Federation of Industries of the Ceará State – Sistema FIEC. In August 2021, Ceará started constructing a green hydrogen hub in the industrial complex and port of Pecem. The Green Hydrogen (H2) hub, on the coast at Ceará, will concentrate several companies associated with the production of clean energy. This event is available on EICTV.
At the time of writing, we have three events scheduled for November and December. On 10 November, Breakfast in Rio, SURF Opportunities in Brazil with TechnipFMC; on 23 November, Fundamentals of FPSOs and on 1 December Breakfast in Rio, Offshore Opportunities with independent oil and gas player PRIO.
Clarisse Rocha, Director – Americas clarisse.rocha@the-eic.com
Guyana offshore bidding round to be launched soon
The government plans to hold the country’s first competitive round for offshore exploration blocks in Q4 2022, as an improved fiscal framework requiring greater revenues derived from oil and gas activities approaches a green light. The round is expected to offer unlicensed acreage, though relinquished areas could be included. Up to a third of the country’s offshore reserves remain unlicensed to date, and future exploration could enlarge today’s estimated recoverable resources of 11bn boe off Guyana’s coast.
Myrcator
Sailing solo to provide much-needed vessel inspection in the UAE
How is Myrcator thriving?
Having been made redundant in 2020, Cris Partridge has put his four decades of marine industry and consultancy experience to effective use in the time since. Seeing the COVID-19 pandemic as an opportunity to thrive and build a different kind of marine and cargo inspection offering, he set up his own one-man band in the form of Myrcator and has not looked back. Thanks to his ability to provide acute attention to detail and on-the-ground services for global clients with interests in the UAE, Partridge has already built up a track record and portfolio of repeat customers from around the world.
The challenge
Few would argue that 2020 has been one of the toughest years businesses have had to endure in decades. For Cris Partridge, who for 40 years had built up a formidable career in the marine consultancy industry, being made redundant in combination with the pandemic situation prompted the start of a new venture.
Having worked in the UAE for the previous 13 years, he sensed an opportunity to provide high-end tailormade marine and cargo inspection services to customers who, due to travel restrictions, could not travel to the country and carry out the work themselves. Indeed, his presence on the ground could be the difference between companies halting and continuing their operations, the ability to prevent delays potentially carrying enormous value to prospective clients.
The solution
Using his non-compete period wisely, Partridge put the foundations in place in the latter half of 2020 by building a website, conducting market research and honing his value proposition. From the outset he knew word of mouth and repeat custom would be vital to building some early momentum. Therefore, honesty and integrity had to be front and centre of all things Myrcator.
Indeed, it has not proven difficult to convince customers that there is no substitute for on the ground experience, and that partnering with Myrcator could generate significant practical and thus financial benefits. Partridge is already in the enviable position of being able to choose the clients he wants to work for, all with the time to spare for giving back to the community through volunteer events and mentoring.
That said, the early days were full of toil, with Partridge the first to thank his wife for stepping up to financially look after the family while the business was finding its feet. But the company was soon making money – in 2021, Myrcator turned over $100,000 thanks to a series of contract wins, appointment for expert witness services and successful project deliveries.
This includes inspection work on several vessels for Chilean ship operator OXXEAN, which was looking for landing craft to run services between its main base and a fish farm further up the Chilean coast. Having identified three possible vessels stationed in the UAE, the company came to Myrcator on recommendation from a contact ACL Brokers in London, with Partridge identifying the best of the three. The deal actually fell through (for other reasons), but ACL and Partridge were able to source a
similar vessel and over the past six months have provided a range of services, including inspections, sea trials and mechanical assessments to bring the vessel up to spec including supervision of a dry docking to carry out the necessary work.
By choosing Myrcator, OXXEAN avoided having to spend vast amounts sending its technical team from Chile to the UAE and secured a vessel earlier than it otherwise would have been able to. In this business, time is certainly money – without the vessel, the firm would not have secured a 10-year charter agreement which will generate revenues of several tens of millions of dollars.
Other successes have followed. This year, the company is expected to double its income to $200,000 thanks to the establishing of a network of contacts in other parts of the world that Partridge is assembling. This includes Kenya, Angola and Norway, as well as a strategic partnership with Solis Marine which has offices in Shanghai, London and Singapore, with Partridge providing a useful UAE-based contact for the company.
Having been made redundant less than two years ago, Partridge and Myrcator have come an extremely long way in a short space of time, his hunch about a gap in the market being proven emphatically right.
About Myrcator
Myrcator is a young, dynamic and responsive company committed to delivering tailored services and solutions to clients. The company’s flexible working approach, coupled with a network of trusted associates, provides clients with clarity and certainty in achieving their objectives in the most effective manner. With almost four decades in the industry working at sea, as a surveyor, marine accident investigator and providing consultancy services, Myrcator applies an extensive knowledge to offer bespoke, costeffective solutions to the market both locally and globally. Myrcator brings experience, integrity and common sense to marine and cargo solutions.
Story type
#service & solutions (main category)
#resilience Benefits
• Revenue of over $100,000 in 2021
• A number of successful contracts firmed
• Income to double in 2022
Key findings
For industry
• Have good understanding of your market, offer what people need
• Be humble, don’t allow a toxic work environment and publicly recognise team members
For government
• Make sure that energy transition policies are promoting real green projects
Government support?
The company has not received any type of government support.
Myrcator at a glance:
Key products and services: Specialist marine and cargo inspection and consultancy services.
Main industries served:
• Oil & gas – 60%
• Non-energy (freight, asset purchase) – 40%
Headquarters: Abu Dhabi, UAE
Year established: 2020
Number of employees: 1 Revenue: £81,000
Revenue from exports: 85%
NHOA Energy
An early mover in the market for energy storage systems
How is NHOA Energy thriving?
Armed with an unrivalled pool of expertise in the area of energy storage solutions, NHOA Energy took the bold decision to move early, identifying energy transition trends and building up experience of delivering projects in emerging markets. Now, with the demand for lithiumion battery storage escalating, the company is in a prime position to continue growing in major markets such as the US, Australia and now Europe, its home market that is a long last taking off.
The challenge
The momentum being gathered by energy transition policies around the world has opened up a huge opportunity for firms with deep knowledge on how power systems operate, not least in the area of storage and keeping grids stable during periods of flux and intermittent input from renewables.
For Milan-based NHOA Energy, the opportunity to commercialise worldwide its deep-rooted expertise arose in 2015. The merger of two university spin-offs, since 2005 it had mainly operated in R&D and pilot installations – but with more and more markets seeing renewables gain traction, a gap in the market was growing in relation to shoring up grid performance.
The question for NHOA Energy was therefore clear. How could it successfully commercialise its expertise and understanding of energy storage solutions to serve a booming market?
The solution
Having started marketing activities on a commercial
basis in early 2015, much of NHOA Energy’s early work actually involved the development of advanced storagebased microgrids combining conventional and renewable generation systems in challenging locations such as SubSaharan Africa, the Chilean and Australian outback, islands systems. There, the company gained significant project delivery experience, allowing it to build up a formidable reference list that has since proven invaluable in securing more work.
Falling costs for lithium-ion batteries proved to be a genuine game-changer. Dropping to $200 per kilowatt hour in 2020 (from $1,000 in 2015), demand for expertise in battery storage solutions surged, prompting NHOA Energy to scale up.
Funding had been secured from a Paris Stock Exchange listing in 2015 and two further capital rounds, giving the company the financial base it needed to serve the market.
The firm expanded its cohort of world class engineers in Italy which command unrivalled battery and storage knowhow. Building on this, NHOA Energy invested in local project execution capabilities in target markets, hiring or partnering with local project management and construction management companies.
Indeed, its early market successes have paved the way for what has been a remarkable growth in revenue – in just two years since 2020, income is forecast to increase from €10 million to €100-150 million, with an order backlog expanding to €200 million from €33 million just a year ago. This is despite the challenges presented by the COVID-19 pandemic, which hampered the logistics of working globally and dispatching people to various locations.
In the US, in February 2022 the firm announced the
successful commissioning of a new 10MWh storage system awarded in December 2020 by Kearsarge Energy, part of a solar plus storage plant. Based on NHOA’s proprietary design, the plant successfully completed the UL 9540 system certification and is now online to provide competitive and fully-dispatchable solar energy, while also supporting and stabilizing the local grid. The commissioning was followed by a follow-on order of similar size still in Massachusetts, and a 30MWh order in Peru.
The company’s portfolio now stands at over 1 GWh of projects online and under development, most of which has been secured in the past 18 months and spread in key markets such as the US, Australia, Europe and Taiwan. As well as unmatched engineering and system integration knowledge, NHOA Energy has grown its reputation through the quality and reliability of its service, cost competitiveness and willingness to be the first mover.
NHOA Energy also a young and diverse workforce, its team being made up of 170 people of 23 different nationalities, with over 25% of its employees being women, out of NHOA Group workforce of approx. 350 people.
Today, thanks to reading the market early, the NHOA Group proudly stands as global player in energy storage, e-mobility and electric vehicles fast charging infrastructure, its technologies enabling the global transition towards clean energy and sustainable mobility around the world.
About NHOA Energy
NHOA Group (formerly Engie EPS), a global player in energy storage and e-mobility, active in the construction of the largest fast and ultra-fast charging infrastructure in Southern Europe, develops technologies enabling the transition towards clean energy and sustainable mobility. It operates through its three Global Business Lines: NHOA Energy, Free2move eSolutions and Atlante.
NHOA Energy designs and delivers turn-key energy storage systems to transform solar or wind farms into sustainable and available 24/7 energy sources. Pioneer of microgrids with renewables and green storage systems, today NHOA is among the top 5 storage system integrators worldwide thanks to more than 15 years of experience. Among the most iconic projects, NHOA is deploying iconic utilityscale projects across Europe, America, Asia and Oceania, together with the projects already online powering over 500,000 people.
Story type
#energytransition (main category)
#scaleup, #technology
Benefits
• NHOA Group 2021-2022 guidance: €100-150m
• €194m in order backlog
Key findings
For industry
• Look farther afield for early market successes
For government
• Work with the supply chain to identify solutions to logistics and supply chain challenges
Government support?
The company has not received any substantial government support.
NHOA Energy at a glance:
Key products and services: system integrator for energy management systems
Main industries served:
• Renewables – 60%
• T&D – 30%
• Conventional power – 10%
Headquarters: Milan, Italy
Year established: 2005
Number of employees: 170 (NHOA Energy), 350 (NHOA Group)
Revenue: £28.1m
Revenue from exports: 90%
Oceancare
Breaking new ground to remain relevant
How is Oceancare thriving?
Leading Malaysian oil & gas inspection company, Oceancare has its history grounded in innovation. Always open to new ideas, methods, skills, and technologies, the company from Miri, Sarawak, has grown exponentially since its foundation in 2001, especially after rearrangements motivated by the 2014-15 oil crisis. Now, Oceancare seeks to expand its business even further through new product lines such as well services and international technology partnerships.
The challenge
Having made significant investment in training, equipment, and facilities throughout Malaysia, Oceancare is now recognized as one of the best inspection companies present in the country. Always aiming to be a go-to solution provider for the oil & gas industry, Oceancare adopted an in depth commitment to inspection and analytical services.
After the 2014-2015 oil crisis, however, Oceancare realized that an expansion of services beyond inspection could be welcome. It didn’t mean that oil & gas would be abandoned or put aside: on the contrary, Oceancare planned to diversify itself while deepening its support of the Malaysian oil & gas industry.
The solution
Following direct conversations with the government and
clients on possible improvements for the past five years, including talks with NOC Petronas, with whom Oceancare earned a close relationship, a new focus was set: well services, including cementing and drilling and integrated tool management. Oceancare had already worked within this specific niche, but was never dedicated to it as the company now prepared to be.
A market review seemed necessary and Oceancare conducted extensive studies in order to bring to reality the well services project. Results soon showed that Oceancare could only benefit from its 21-year experience with client communication, a good track record with Petronas and a very positive recognition as a Sarawak oil & gas service provider.
In order to approach it, new regulatory licences had to be secured and a new logistics infrastructure had to be designed, which required not only a large investment for new equipment and technologies – more than 50% of Oceancare’s investments in 2018 were directed to grow the well services line –, but also significant efforts: capability was also brought in and, to cope with industry and regulatory demands previously identified, a new board member was established.
Partnering with China Oil Company (COSL) was also a strategy for the development of the new well services line. Both the companies agreed to an exclusive, multiyear commitment partnership in which COSL would be responsible for the provision of the necessary new technology, part supply, and technical support, while
Oceancare would be the manager of won contracts and implement workforce.
Results would be visible soon with Oceancare winning a major 5-year contract with Petronas in 2019 for cementing and drilling fluids, waste management, and integrated well services. Initially covering five wells, the agreement is open for expansion, with more contracts related to sets of wells to follow. For this job, 40 Oceancare employees were trained by COSL and are now seconded to Petronas and other partners.
Partnering with Allseas Marine Contractors Sdn. Bhd. in 2021, a subsidiary of Swiss-based Allseas Group S.A (ALLSEAS), Oceancare is planning to focus on other business opportunities in transportation, installation and decommissioning of offshore facilities, especially in Malaysia region. The activities include offshore engineering, construction and decommissioning, specialising in pipeline, heavy lift and subsea installation.
After all this work and still expecting more to come, Oceancare is really thriving: 5% of its revenues are already coming from the new business. Not only that, but the company’s long-term goal of becoming a renowned one-stop-shop for clients, attracting foreign integrated solutions centres to the Malaysian oil & gas industry, can only benefit from the promising well services product line.
About Oceancare
Based in Miri, Malaysia, Oceancare was established in 2001 as a procurement company for stationery, personal protective equipment, and other miscellaneous items with a team of less than 10 employees. Today, it has gained the confidence and trust of customers through services provided by its managers, specialists, engineers, inspectors, technicians, and supporting staff all over Malaysia. Activities executed by Oceancare go from inspection and electrical services to drilling and rig services, as well as aviation, pipeline maintenance, and consultancy.
Story type
#service & solutions (main category)
#collaboration
Benefits
• Major, 5-year contract firmed with Petronas open to extensions
• New business corresponding to 5% of the company’s revenues
Key findings
For industry
• Understand core service before expanding and diversifying
• Constantly seek improvements
• Pay attention to the skill and development of young talent
For government
• Debate green energy policies with experts
• Be clear when implementing industry standards and requirements
Government support?
The company has received support from the Graduate Enhancement Training Sarawak (GETS) programme, as well as from the Sarawak Planning Unit (SPU) and Teraju Facilitation Fund.
Oceancare at a glance:
Key products and services: monitoring of inspection and corrosion, electrical maintenance and instrumentation, drilling fluids & cementing, transportation & installation, commissioning & decommissioning, well restoration, manpower supply, and IRATA Rope Access Training.
Main industries served:
• Oil & Gas – 100%
Headquarters: Miri, Malaysia Year established: 2001
Number of employees: 380 Revenue: N/A Revenue from exports: 0%
Orion
Stepping into life sciences recruitment to build organisational resilience
How is Orion thriving?
Having been almost entirely reliant on the oil and gas market a mere decade ago, specialist recruiter Orion changed tact in a big way in 2018, realising that it had to spread risk and diversify in order to survive energy market volatility. Through collaboration with an existing client, the company discovered the life sciences sector, and since then has gone on to invest significant sums on finding the right people and opening new offices to spearhead this new avenue of growth. Today, the firm has a much more balanced revenue portfolio, one which has been strengthened by the addition of blue-chip healthcare and pharmaceutical brands to its client roster.
The challenge
Orion had been riding the waves of boom and bust in the oil and gas sector for decades. Carving a reputation as a go-to for the recruitment and selection of highly qualified and experienced expat and national personnel for large scale oil and gas projects around the world, the volatility seen in the industry since the middle of the last decade has prompted a strategic rethink.
Margins were being compressed, with Orion finding itself competing against greater volumes of rivals for less work. The risk profile was looking ominous – although the firm had reduced its proportion of income from oil and gas from 90% in 2014 to 75% in 2018, the reliance on an unstable sector was still too high. Action was needed, and in 2018 the decision was made to pursue a strategy of diversification.
The solution
Orion has not pursued a diversified revenue stream
by halves… Its team has been working hard to promote Orion’s renewables capability alongside its traditional oil and gas offering. The firm immediately made sizeable investments into research, personnel and real estate to ensure its foray into life sciences converted into a viable business for the long term.
In recent years, Orion Group has been focused on rebranding into a diversified business operating in a variety of sectors, continuing to evolve its product and service offering by embracing change.
Having already gone through many cycles over the years and more recently diversifying into a number of other industry sectors, Orion wanted to make sure that its brand identity not only acknowledges the evolutions of the company’s business, but also pays homage and showcases its relevancy – highlighting that people is its business worldwide.
But why life sciences? The opportunity arose from working with an existing client for whom it had already built a solid relationship.
Around £1 million of capital was invested in scoping out the market, building a winning team of key personnel with formidable life science and pharmaceutical experience, and establishing offices in Chicago (USA), Cork (Ireland) and The Hague (Netherlands) through 2018 to 2020.
The division has enjoyed exponential growth since. In 2021, revenues derived from the pharmaceutical sector reached $9 million, up from $5 million in 2020 and now accounting for 10% of overall income. This will be built on even further this year in the form of a series of big-name clients – including Johnson & Johnson, Amgen, Abbvie and GSK – and has gone a long way to reducing Orion’s
exposure to the oil and gas market (now responsible for 55% of revenue).
This is not to suggest that its traditional markets are being neglected. Here, the company is using its technological expertise to add value for clients, diversifying from traditional recruiting services to project management and commissioning services. For example, in the North Sea, the firm secured an exclusive five-year agreement in 2020 to carry out brownfield asset modifications for TotalEnergies, leveraging the power of its flagship software application – Orbit completions and commissioning management system (OCCMS). Meanwhile, Orion also completed a £2 million project with Centrica on a CCUS development at its Easington gas terminal, the scope including software implementation and project management.
This is technology that Orion has housed for many years, but it has been reinvented by a new team and now stands as a class-leading project management tool. Today, managed services account for 5% of the firm’s revenues, which have started to reach back up to pre-pandemic levels following a slump from £276 million in 2019 to £231 million in 2020.
What’s more, while revenues fell, Orion’s operating margins have improved, another sign that the company is well on the road to futureproofing itself against many other challenges that may comes its way in future years. And to round off this remarkable turnaround story, in six of the last seven years the firm has been recognised by KellyOCG with a supplier excellence award, standing out among 3,000 active partnerships the outsourcing and consulting group has around the world.
About Orion
The Orion Group manages the placement of thousands of contractors and permanent personnel every year via their worldwide network of offices throughout Europe, the Americas, the Middle East, Asia Pacific and Africa. Orion provides specialist recruitment services across a range of sectors including life sciences, renewables, oil & gas, and others. As well as contract positions, the company also offers permanent recruitment models covering all industry sectors, with its recruitment model tailored to suit your exact needs and budget. Orion has the market intelligence and the experience necessary to take a holistic approach to project delivery, managing manpower provision from start to finish.
Story type
#diversification (main category)
#service & solutions
Benefits
• Revenues from the pharmaceutical sector increased US$4m in a year (10% of overall income)
• Significant development of renewable energy sector penetration
• Managed services accounting for 5% of revenues
• Attraction of big-name clients
• Commissioning solutions – billings up by 400% over a 3-year period
Key findings
For industry
• Be open and honest with your colleagues
• Change management style to be more accessible; people are more willing to follow
For government
• Invest in education and STEM skillsets
• Do not villainise the oil & gas sector to enable energy transition
Government support?
The company has been supported by the Apprenticeship Levy programme.
Orion at a glance:
Key products and services: Recruitment and selection of highly qualified and experienced expat and national personnel into the energy, life science and filtration sectors.
Main industries served:
• Oil & gas – 57%
• Renewables – 12%
• Life sciences – 13%
• Commissioning services – 6%
• Petrochemicals – 6%
• Shipbuilding – 6%
Headquarters: Inverness, UK Year established: 1987
Number of employees: 200 Revenue: £280m Revenue from exports: 30%
Petrofac
Leveraging UK late life asset and decom expertise to make strides abroad
How is Petrofac thriving?
As the UK – along with much of the world – advances its energy transition journey towards net zero, Petrofac continues to assess and evaluate the role it can play in helping nations get there. A key part of its focus remains the maximisation of existing assets and decarbonising what is already in use, a proposition which the company can particularly support in regard to late life and repurposing (as well as decommissioning when the time is right). With its unique and integrated package of expertise and project management around well engineering, late life and decommissioning helping it to establish Petrofac as a go-to for best practice in the UK, the firm is now expanding this line of business abroad, picking up key project wins in Africa, Australia and the Gulf of Mexico.
The challenge
Net zero ambitions, energy security concerns, supply chain crunches… the UK and indeed global energy sector is fronting up to a catalogue of issues at present.
For Petrofac, the only Tier 1 contractor with inhouse capability to manage all wells and asset decommissioning phases, this is an opportunity to position its extensive set of capabilities to clients both at home in the UK and abroad.
The solution
Petrofac firmly believes in maximising the potential of existing facilities as a key part of any energy transition and net zero journey.
Over the past few years, its centres of excellence in Aberdeen and Woking have been key hubs of knowledge and activity that has helped it to establish a best-in-class reputation, especially around well engineering and late life optmisation of energy assets. As a result, company leadership decided to leverage this position, along with its status as a duty holder, to expand its integrated service offering internationally.
To do so effetively, the organisation made a strategic shift in 2020, brining its well engineering and decommisioning service lines into one business unit. Come 2021, it then shuffled the pack further by reconfiguring its engineering and production services divisions to unify a body responsible for asset operations, asset development and the aforementioned wells and decomissioning work. The new unit, named Asset Solutions, stands as one of three main Petrofac business units alongside Engineering and Construction and Integrated Energy Solutions.
Its formally integrated structure aligning more closely with its clients needs right across the asset life cycle. As a result, greater numbers of clients have been onboarded with an integrated and long-term scope, including in the UK, where Petrofac holds a number of integrated services contracts, and in Africa, Australia and the Gulf of Mexico where it is using this operational experience to help customers prepare for, and undertake, decom work..
In the late life arena, as recently as April 2022, the company secured a AUD $325 million contract tendered by the Australian government to conduct critical safety
and decommissioning work on the Northern Endeavour FPSO. Sat 550 kilometres off the coast of Darwin, the 250-metre vessel is moored and not producing oil, with Petrofac contracted to make the asset safe for disconnection. The project is a major breakthrough, not least because it is the first time in its 15 years of working in Australia that the company has been appointed as a duty-holder operator.
Indeed, its proven track record in the UK, which has similar regulatory processes, was a key factor in the Australian government’s decision to award Petrofac the contract. The company will be fully accountable for all aspects of preparation and decommissioning – as the principal contractor, it has all the in-house skills to complete the entire first phase, scheduled for completion by winter 2023.
This project highlights the ability of Petrofac to leverage its UK expertise and track record as a go-to for best practice in asset end of life management.
With optimising late life operations of assets critical to ongoing energy transition movements around the world, Petrofac looks primed to play a key role in years to come.
About Petrofac
Having started life in 1981 with just 25 people on board, Petrofac now has 31 offices with 8,200 staff worldwide. The company is a leading energy services company that helps clients meet the world’s evolving energy needs. Petrofac uses its engineering know-how and consultancy expertise to design, build, and operate world-class energy facilities made for safety, optimal efficiency, and low emissions.
Petrofac operates in a range of markets and works across the entire asset life-cycle – from design to decommissioning. These competencies, supported by flexible commercial models, robust local delivery, and a technology neutral approach, set it apart.
Story type
#service & solutions (main category)
#export, #innovation
Benefits
• Clients’ access to full life cycle approach
• Contract worth £185m secured with the Australian government
• Contract worth £158m secured in Gulf of Mexico
• Contract worth £47m secured in Mauritania, Africa
Key findings
For industry
• Keep your strategy simple: it needs to be deliverable and understandable
• Invest largely in carbon capture projects to responsibly keep the oil & gas industry going
For government
• Don’t put oil & gas aside, it will be needed to fund energy transition
• Give more detail and develop more capacity to make current energy strategies achievable
Government support?
Petrofac has received government support from the Apprenticeship Levy and ECITB funding.
Petrofac at a glance:
Key products and services: Designing, building and operating of on- and offshore energy facilities and training of supporting staff.
Main industries served:
• Oil & gas – 75%
• Refining and petrochemicals – 16%
• Renewables – 9%
Headquarters: London, UK
Year established: 1981
Number of employees: 8,200
Revenue: £2.46bn
Revenue from exports: 76%
Petrolec
Proving the power of partnerships with unique UPS and power generation solutions
How is Petrolec thriving?
Malaysian electrical services specialist Petrolec is living proof of the power that can come from key partnerships in the energy sector, the firm teaming up with Eltek, Borri and Sunfire to deliver uninterrupted power supply (UPS) and power generation solutions that solve client problems while unlocking local content, expanding capabilities and generating new business growth.
The challenge
Founded in 2005, Petrolec’s early years were defined by restriction. Born as a sister company, the firm consistently found itself operating in the shadow of its larger counterpart, struggling to compete in tendering, exhibitions and other aspects which ultimately limited its potential.
In 2018, the two entities split, providing renewed opportunity to Petrolec. Yet the company was equally left in a precarious situation – being the smaller of the two enterprises, it was left with little business and therefore had to start from near scratch.
Subsequently putting significant efforts into finding its feet in the energy market for the following two years, Petrolec was then faced with the difficulties presented by the pandemic, threatening to unravel all the progress that had been made and pushing the firm back into survival mode.
The solution
Following the split from its sister enterprises, Petrolec set about consulting Petronas, engaging with the Malaysian
national energy giant in the aim of sussing out how it could offer value-driven solutions.
Here, it identified Petronas’s ability to secure uninterrupted power supply (UPS) solutions as a significant pain point. Indeed, it was proving to be a significant cost with all sourcing and servicing focused in Europe. Not only were the solutions expensive to install, but they were also equally costly to maintain.
Here, Petrolec saw an opportunity. As a small, localised company with low overheads, it could develop and sustain UPS systems at a cheaper rate by assembling and servicing them directly in Malaysia.
Here, a new niche was founded. Since that initial lightbulb moment, the firm has secured partnerships with two UPS solutions specialists – Eltek and Borri – to enhance its proposition.
In the case of Eltek, Petrolec will purchase UPS modules from the manufacturer’s base in Italy, then design and assemble the cabinet in Malaysia. Not only does this prove to be more cost effective for Petronas, but it also enables Petrolec to design and tailor the products to its key customer’s specific requirements.
Indeed, Eltek have proven to be a supportive partner, offering guidance and technical support whenever required. Their willingness to partner with the Petrolec’s local system design/assemblers in Malaysia has proven critical to the Malaysian firm’s business model – something that the firm highlights distinct gratitude for.
Indeed, the results have proven highly beneficial for both
firms. In 2021, the duo secured a significant contract win from Petronas for the supply and installation of UPS systems for five of its sites. Further, Eltek’s digital UPS technology has also become the first of its kind to be deployed by Petronas, the digital cabinet having been designed by Petrolec.
And UPS aside, Petrolec has also grown its product range after partnering with Sunfire, whose off-grid fuel cell power generation technology secured approvals from Petronas Charigali to proceed with a pilot project for its gas pipeline power system.
Some of these successes have been overshadowed by COVID-induced challenges for Petrolec in recent times. Excessive infection testing protocols have proven to be both restrictive and expensive, the firm having also been forced to tap into furlough schemes. Yet the company has been able to weather the storm owing to strong customer relationships, working with clients to try and solve their pain points proactively under difficult circumstances.
Having emerged from the pandemic successfully with a new lucrative value proposition underpinned by several successful partnerships, Petrolec looks in good shape as it seeks to continue building momentum through 2022 and beyond.
About Petrolec
Established in 2005, Petrolec is managed by professionals and an experienced team with years of experience in electrical and critical power system technologies to provide high-quality services to all its clients. Petrolec maintains close co-operation with selected local and international firms, as well as with local infrastructure providers to meet the diversified needs of our customers with cost efficiency. Its core activities are related to electrical engineering services, marine equipment, and project management consultancy (PMC), especially in the oil & gas industry. Petrolec is staffed to provide all services from inception through design, bid, construction, and installation completion.
Story type
#collaboration (main category)
#service & solutions, #technology
Benefits
• Major 500,000 MYR contract firmed with Petronas
• Power generation market under consideration
• Growth in product range
Key findings
For industry
• Learn with times of crisis: how you manage and sustain your business in difficult times is key.
For government
• Give more support to companies facing growth obstacles, such as shortage of skilled workforce.
Government support?
The company has been supported by the Furlough scheme.
Petrolec at a glance:
Key products and services: Electrical engineering services.
Main industries served:
• Oil & gas – 95%
• Power – 3%
• Others (telecom, government) – 2%
Headquarters: Ampang, Malaysia
Year established: 2005
Number of employees: 13
Revenue: £1.3m
Revenue from exports: 0%
PetrolValves
A diversification strategy that continues to exceed expectations
How is PetrolValves thriving?
Valve and flow control equipment specialist PetrolValves is now five years into a new investment to diversify its solution offering. Having set out with modest revenue expectations, the new division, operating as VSI Controls, has breached the €15 million income mark and continues to build up its reputation through demonstrating value to clients. Thanks to its innovative production techniques and an offering that is highly bespoke and designed to solve problems, the subsidiary has proven its ability to save customers time and money.
The challenge
Predicting what the oil and gas market will look like even in a few months’ time is a difficult undertaking. Since the price crash of the mid 2010s struck, the sector has been a volatile market to operate in, making it especially risky for firms that derive most of their revenues from associated activities.
This has been the case for PetrolValves. Formed in 1956, the firm has been a mainstay supplier of valves and control flow solutions for clients in the oil and gas industry for several decades. However, in light of recent events, its leadership realised the firm needed to spread its risk across new lines of business to futureproof – indeed, the company had become too reliant on oil and gas activity, especially in the Middle East. Here, margins have been increasingly tightened due to
heightening competition for work, a problem compounded by infavourable payment terms which have also been hurting the organisation’s financial health.
The solution
Since the middle of the last decade, PetrolValves has been pursuing an ambitious diversification strategy, targeting growth in downstream and chemical sectors, as well as in the power generation market.
The most significant step in this direction has been the formation of VSI Controls. Established in 2017, the team has a dedicated area in PetrolValves’ Milan factory and is made up of newly recruited engineers who bring a diverse set of skills to the business.
Indeed, the company now has a more compelling value proposition for its clients. Thanks to a wide range of control valve solutions, it is adopting a problem-solving approach to business, with every valve designed to meet unique needs. This has been made possible by the development of new production methods which leverage 3D printing and additive manufacturing techniques. With such capabilities, PetrolValves can create far more complex internal valve structures which in turn can solve a broader set of client issues and offer superior performance.
All of this means the firm’s solutions will typically last longer than its competitors’ and therefore reduce costs related to replacing spare parts.
The best example of this in action comes from Argentina, where Tecpetrol represents VSI Controls’ largest client to date. In this instance, the company’s problem-solving approach has proved a winning formula – Tecpetrol was having issues with a competitor’s product in 2018 and turned to VSI for an answer.
The solution presented was a multistage-multipath labirinth trim with 20 stages of pressure reduction on a gas vent application, offering a strength and flow profile capable of resisting the regular damage that was being inflicted on the previously installed valve, due to high velocity and vibration. Costed at $30,000 per valve, the installation of VSI’s solution is already paying dividends for Tecpetrol, which was previously having to routinely shut down its shale gas plant due to faulty valves. This would typically cost $50,000 per valve to repair and occur every six months, outlining the level of savings that the new solution has delivered.
It is contracts like this that continue to justify PetrolValves’ decision to establish the new subsidiary in 2017. Initially expected to make around €5 million in revenue, VSI Controls has grown from a first-year income of €1 million to €15 million in 2021. With its newly innovative methods and bespoke problem-solving approach already going down well with clients, there is no reason why those income levels can’t increase yet further in years to come.
About PetrolValves
Established in 1956, PetrolValves is a leading flow solutions provider for the energy industry, specialising and pursuing product excellence in the engineering of valves, actuators and systems through advanced technology and delivering high-quality services. The company designs outstanding solutions and offers services in an efficient way and with the highest standards of reliability. PetrolValves likes to address the energy transition challenge in the market in an innovative and sustainable way, with new and original solutions to best match customer requests and needs.
Story type
#technology (main category)
#diversification
Benefits
• Internal production processes enhanced, superior performance offered
• Client acquired significant savings through VSI’s product
• VSI Controls had a 2021 income of €15m
Key findings
For industry
• Redefine the terms of energy transition – don’t see a stop on traditional oil & gas
• Look after the existing supply chain throughout the energy transition process
For government
• Make free trade between countries as easy as possible, get the world moving
Government support?
The company has not received any type of government support.
PetrolValves at a glance:
Key products and services: Complete valve requirements for the energy industry – from subsea to downstream refining and chemical.
Main industries served:
• Oil & gas – 85%
• Refining, chemical – 10%
• Renewables, water – 5%
Headquarters: Milan, Italy
Year established: 1956
Number of employees: 550 Revenue: £197.3m Revenue from exports: 85%
Proserv
Finding solutions to meet the modern needs of customers
How is Proserv thriving?
Operating in an ever-maturing energy market with infrastructure that has developed vulnerabilities over time, Proserv has recognised the need to pivot towards being a solutions provider geared towards extending the life of assets and helping to ramp up production efficiencies, all the while enhancing HSE and sustainability credentials. Its Smart Box technology is a case in point, a well monitoring system that sends alerts to users in the event of unplanned shutdowns and enables smart, safe and rapid responses to problems.
The challenge
With more than half a century in operation, Proserv has been able to build up an enviable reputation and level of trust with its customers.
However, in 2014 the firm recognised that it is now operating in a mature market in the Middle East, a market comprised of a wide range of legacy equipment that is inevitably developing pain points that need fixing. Proserv wanted to support its key clients by providing solutions that mirrored their need to monitor and support vital, yet ageing, infrastructure swiftly and efficiently.
A challenge was therefore set, one which required answers to several questions if it was to successfully realign its offering and remain competitive. What are these pain points that customers need addressing? How can Proserv support them? What solutions could alleviate the issues relating to unplanned shutdowns of production wells?
The solution
The first step of Proserv’s journey comprised a comprehensive information gathering exercise. The
company employed a team to explore how it could approach the market in a new way, but at the same time support its manufacturing and service arms while offering further value solutions to clients. This involved canvassing local major players regarding issues maintaining production from ageing wells, and how Proserv may be able to help.
As a result of this review, the company focused its energies on enhancing the life of assets and devising solutions that would ramp up production efficiencies while supporting improved HSE, extended life, reductions in wastage and limiting emissions. Indeed, these priorities also align with Proserv’s ESG roadmap, its underlying target being to become a net zero organisation by 2050 or sooner.
Customers made their case clear – they were seeking a solution provider which can find simple answers to problems such as unplanned production shutdowns. This is a major challenge on old and remote wells where there is a lack of support infrastructure and real-time visibility –typically they are only physically inspected on planned biweekly manual visits, which can result in significant losses of production and revenue if a sudden outage were to occur.
To put the problem into context, studies estimate that the energy industry loses up to 2% of its daily oil production in unplanned shutdowns. With OPEC currently at a daily production of 28 million bpd, this would mean more than half a million barrels wiped off in a day, millions of dollars of revenue that could be used to invest in the industry, including transition roadmaps.
This prompted Proserv to develop Smart Box. The solution is fitted with a modem with daily alerts sent to designated phone numbers advising that the well is healthy and producing. If the well suffers a shutdown (due to a change
in pressure, for example), the Smart Box receives a signal from the control panel and sends an SMS alert. This allows maintenance teams to be dispatched when needed to bring wells back online as quickly as possible. In the event of a serious problem such as a hydrogen sulphide leak, alerts are triggered, and a remote shutdown procedure can be activated to make the well safe.
Having undergone rigorous client testing, it now stands as a solution capable of providing benefits in several distinct scenarios that can impact well performance – be it for wells without connections to digital infrastructure, located within proximity to farms and urban areas where hydrogen sulphide is a danger, and/or made unsafe during periods of conflict which renders physical inspections dangerous.
With Smart Box providing that simple answer to a problem that clients have been demanding, Proserv has proven it can take stock and adapt to the changing dynamics of the Middle Eastern energy sector.
About Proserv
Proserv is a global controls technology company delivering solutions for critical infrastructure right across the broad energy sector. Its capabilities encompass subsea and topside controls, holistic cable monitoring, SCADA systems, intervention workover control systems, sampling and measurement.
Proserv provides cutting-edge technologies to improve reliability, maximise production, enhance asset integrity and extend life. By combining technical ingenuity with engineering, manufacturing and field service expertise, Proserv creates innovative, industry-leading solutions that are flexible and agnostic by design, able to be integrated into any existing system.
Proserv has an extensive brand heritage spanning nearly 60 years. Headquartered in Aberdeen, the company has offices in 13 locations across three continents.
Story type
#service & solutions (main category)
#innovation
Benefits
• First expected sales in 2022 to save $80m
Key findings
For industry
• Listen to clients and work with them
• Don’t expect innovation to come overnight, patience is necessary
• True innovation comes from being ahead of the curve
Government support?
The company’s renewables business in offshore wind has received funding from Innovate UK, part of UK Research and Innovation.
Proserv at a glance:
Key products and services: Delivery of solutions for critical infrastructure across the energy sector, including subsea and topside controls, holistic cable monitoring, SCADA systems, intervention workover control systems, sampling and measurement.
Main industries served:
• Oil & gas – 95%
• Renewables – 5%
Headquarters: Aberdeen, UK Year established: 1963
Number of employees: +800 Revenue: Booked a record £150M in 2021. Revenue from exports: 75–80%
Quanta
Exploring new markets and verticals to navigate the pandemic
How is Quanta thriving?
Faced with work drying up as the COVID-19 pandemic shrouded many energy projects around the world in uncertainty, EPC Tier 2 contractor Quanta had to keep itself afloat and devise a strategy that would futureproof it for the longer term. In 2021, such a strategy was launched with the arrival of Steven Brett as Commercial Director, who instilled the confidence needed to pursue export opportunities and reduce reliance on oil and gas project work. Fast-forward to the present day, and exporting activities are forecast to account for a larger portion of revenue, with non-oil and gas revenue also growing strongly.
The challenge
One of the greatest challenges facing EPC contractors serving the oil and gas sector during the pandemic has been a lack of certainty over the fate of projects around the world. Indeed, trying to acquire a holistic view of the market and what was happening in 2020 was notoriously difficult, making it impossible to plan ahead with any real degree of certainty.
For Quanta, while it was fortunate enough to be active on projects when COVID-19 struck thanks to a supportive client base, the need to refocus and realign was becoming clear. In 2020, the company saw its revenues drop 40% from those generated in 2019, creating a cashflow crunch that was exacerbated by losigtical supply chain issues. Forced to restructure, Quanta was also having to grapple
day-to-day challenges around project execution in light of working from home mandates and new safety protocols.
The solution
This cocktail of challenges sparked a diversification acceleration from February 2021. Driven by the arrival of Steven Brett, the company’s existing five-year roadmap (which also centred around diversifying) was updated after close consultation with clients and an evaluation of internal skillsets that uncovered where Quanta could add value in new sectors. Supporting this was the EIC database, an arsenal of information containing valuable insights on projects and contacts in markets all over the world.
Communication has also been critical. As well as speaking openly with clients. Internal stakeholders have bought into the strategy, with some employees remaining on their existing lines of work and others being set the challenge of exploring different sectors away from oil and gas and securing new business.
Although there have been some bumps along the way, not least in terms of navigating the change and finding the best routes to market, clear headway has already been made which is now backed up by contract wins in new areas, including receiving requests for quotes (RFQs) from different organisations within the utilities sector. The company has kept its eye on the ball to still deliver to key oil and gas clients that had stayed loyal throughout the pandemic.
In the Netherlands, as well as providing an EPC service to an oil and gas operator, Quanta secured a contract with a Tier 1 contractor working on the Sofia Offshore Wind Farm, a 1.4 GW site located on the shallow central area of the North Sea known as Dogger Bank. Still ongoing, Quanta is delivering technical safety provision across a range of areas, including wind towers, access and egress, and fire prevention, as well as providing health and safety manuals, leveraging best practice from its experience on countless oil and gas projects. The project has not only kickstarted the building of a track record in a new sector, but also provided vital insight on how Quanta’s skillsets can be transferable across multiple energy disciplines –indeed, it has vindicated the decision to accelerate its diversification drive.
The financials also point in the same direction. In 2021, 10% of income derived from non-oil and gas clients – this set to increase to 30% through 2022. Critically, exports will account for 50% of revenues, which compliments the focus within the company strategy.
Armed with the confidence to venture further into new markets and sectors, Quanta looks set to emerge in a stronger position than in 2020.
About Quanta
Quanta delivers end-to-end engineering, procurement and construction services to the energy industry, covering the full life cycle of clients’ assets from concept to decommissioning. The company’s capabilities include brownfield modifications, flowlines and tiebacks, life extension and commissioning and underground gas storage, among other areas.
Quanta traces its origins from 1988, when it was known as Techmac Barton. The company was acquired by Fabricom in 1999, which was then acquired by GDF Suez (currently Engie). After a time operating as Fabricom Offshore Services, the company was rebranded as Quanta following a management buyout in 2018.
Story type
#diversification (main category)
#export, #resilience, #service & solutions
Benefits
• Non-oil & gas clients now correspond to 10% of the company’s income
• Exports calculated to account for 50% of revenues in 2022
Key findings
For industry
• Expect the unexpected and be ready to flex
• Build resilience into your business
For government
• Quicken bureaucratic processes for starting projects
• Ensure support for oil & gas’ long-term needs is communicated better to wider audience
Government support?
The company has received government support from the Furlough scheme and has received R&D tax credits.
Quanta at a glance:
Key products and services: Tier 2 provider of engineering, procurement, project management and construction services.
Main industries served:
• Oil & gas – 80%
• Renewables – 20%
Headquarters: Northumberland, UK
Year established: 2018
Number of employees: 60 Revenue: £8.2m
Revenue from exports: 50%
Re-Gen Robotics
Scaling up a unique proposition for O&G tank operators
How is Re-Gen Robotics thriving?
Persistence is starting to pay off for Re-Gen Robotics. Entering a market with a robotic tank cleaning solution, growing numbers of clients are starting to realise the efficiency and safety benefits on offer from a system which is disrupting the traditional human-based method. While there is still a long way to go in terms of sparking an industry-wide shift, Re-Gen is continuing to build up a portfolio of satisfied customers whose performance data could be key to unlocking even faster growth in the years to come.
The challenge
Having set up in 2018, Re-Gen Robotics entered the oil and gas tank cleaning market with a unique proposition. Its robotic solutions not only provide unrivalled telemtry and reporting capabilities pertaining to tank health, but also remove the need for humans to enter the tanks during cleaning, thus providing a safety guarantee that no other similar service provider can offer.
However, a great deal of persistence and patience is required to enact change in what is a notoriously conservative sector. In order to move into profitability and lay the ground for its sustainable future, Re-Gen had to scale up, grow and get its pioneering solution out there in front of more prospective clients.
The solution
Indeed, scaling up was always part of the five-year plan when the business was founded, although it did not foresee the impact of COVID-19 which has served to push targets back by around six to eight months.
After getting the green light from the board of directors for a more rapid growth strategy and scale-up, Re-Gen is now operating out of a new headquarters and R&D facility (with a £1.5 million R&D spend over three years), and is gradually starting to overcome resistance from industry players who have traditionally relied on human tank cleaning services.
Indeed, Re-Gen has been investing huge amounts of energy putting its no-human entry tank cleaning solution in front of the market. Hearts and minds needed to be changed, and its compelling offering is beginning to cut through.
The truck and trailer system, which costs around £1.1 million to build, is designed for Zone 0 locations (i.e. hazardous confined spaces) and only requires two to three operators – one to control the robotics and the other to control the jet-vac cleaning equipment. Furthermore, the safety gains offered by this solution are unparalleled in the market, and given the cost difference between this and manned systems is negligible, the business case for adopting Re-Gen’s innovation is clear.
And a major breakthrough arrived in 2020 when the company completed its first crude oil tank clean project for Phillips 66, the American multinational energy firm headquartered in Houston, Texas. Up to this point, it had only worked on white (refined) oil tanks at storage terminals.
Today, Re-Gen has three operational systems on the ground, with ambitions to increase this to seven or eight systems by the end of 2022, a development which would cap off a rapid period of expansion which began with just one unit in operation in 2019. By the end of 2022, the firm also hopes to have increased its client base to 10 organisations, up from six in 2021 and three in 2020.
Financially, the firm operated at a profit in 2021 and is now set to double that margin in 2022 thanks to a growth in revenue from £2.7 million to £3.5 million.
Its mission is being supported by an ever-growing pool of data coming from existing clients around efficiency gains. For instance, some are reporting reductions in manhours on site for tank cleaning of up to 90% – this is because a typical manned operation can require up to 10 people and take seven months to complete, whereas the robotic solution works 40-75% faster and requires just three months to finish a job.
As more and more success stories emerge, Re-Gen could be about to spark a seismic shift in the way the oil and gas sector treats and cleans its tanks.
About Re-Gen Robotics
Re-Gen Robotics is the first and only Zone 0 EX certified, remote controlled, ‘No Man Entry’ robotic tank cleaning company, in the UK and Ireland. The company places a high premium on workplace safety and with bespoke, state of the art equipment, workers are not exposed to the dangers posed by operations carried out in hazardous confined space environments, including refineries, pharmaceutical plants, industrial and agricultural sectors.
Story type
#scale up (main category)
#service & solutions
Benefits
• 90% reduction in manhours on site for tank cleaning
• Revenues increased by £1.9m in 2021
Key findings
For industry
• Success requires high commitment
For government
• Policy makers need to adopt a message that matches efficiency and safety: robotics can do both
• Value energy independence, its worth has been proven by the COVID-19 pandemic and the war in Ukraine
Government support?
The company has not received any type of government support.
Re-Gen Robotics at a glance:
Key products and services: Provision of no-man entry robotic tank cleaning to the O&G industry.
Main industries served:
• Oil & Gas – 90%
• Utilities (water and sewage) – 10%
Headquarters: Newry, UK
Year established: 2019
Number of employees: 19 Revenue: £3m
Revenue from exports: 10%