Inside Energy October 2019 by Energy Industries Council

Inside Monthly news for EIC members October 2019

EIC Guest editorial

EIC Survive & thrive III

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Iran – US tensions what does this mean for the future of oil and gas?

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Sector analysis

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Read the second set of EIC member case studies featured in this year’s report

Moves towards subsea autonomy in Brazil

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Sector analysis

Iran – US tensions: what does this mean for the future of oil and gas in the Strait of Hormuz? Micha

Since the US withdrawal from the JCPOA in May 2018, the US re-imposition of sanctions on the Iranian economy, particularly on its oil sector, has resulted in a rapid deterioration in relations between the two countries. The increased build-up of US military in the region, the shooting down of a US drone by Iran, and the seizure of a UK-registered tanker in the Strait of Hormuz in response to the earlier seizure of an Iranian tanker in Gibraltar have all contributed to the increasing likelihood of conflict and disruption in a region which is strategic to the global energy sector. The focus of the rising tensions is the Strait of Hormuz, a passage between the Persian Gulf and the Gulf of Oman which separates Iran from Oman and the UAE and is a mere 33km wide at its narrowest with the shipping lane at its neck reducing to around 3km. Just over 20% of all exported oil, 35% of all oil transported by sea and one quarter of the global LNG trade is transported through the strait, primarily to the Asian market. This means that the strait is one of the most strategically important choke points and security risks to the global oil and gas sector with any disruption to this transit route having major consequences. In response to US sanctions, which has reduced Iranian oil exports to under a million barrels a day, the Iranian regime has indicated that if Iran is unable to sell its oil then it will ensure no one in the region can do either and has threatened to close the strait completely. An apparent manifestation of this threat was on the 12 May 2019 with the sabotaging of four tankers off the coast of the UAE which was later blamed on Iran. This has led to increasing concerns over further attacks on shipping in the area. Moreover, as well as any direct attacks to shipping there is also the possibility that if relations continue to decline the strait may be mined as was the case in the 1980’s as part of the so called ‘Tanker War’. There has also been assaults on infrastructure in the region which are designed to limit the effects of disruption to the strait with two compressor stations for the Saudi Arabian ‘East-West’ pipeline coming under drone attack on 14 May from Iranian backed Houthi rebels based in Yemen, resulting in the pipeline being shut down for several days.

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This has also raised concerns for other oil and gas infrastructure in the region such as the Abqaiq processing and stabalisation plant, the largest oil processing facility in the world with a capacity of more than 7 million barrels per day (bpd), and the Ras Tanura export terminal, the world’s largest offshore oil export port with an average handling capacity of 3.4 million bpd. Both of which are situated on the Gulf and are therefore vulnerable to attack from Iran and its proxies in the region. As the largest exporter of oil in the world producing 10.3 million bpd and possessing the second largest proven crude oil reserves at 267 billion barrels, the defacto leader of OPEC, Saudi Arabian oil production has an immense influence over the oil and gas sector. This raises the prospect that if there is a major limitation of oil tanker transit through the Strait of Hormuz coinciding with attacks on Saudi oil and gas infrastructure and a decrease in the Kingdom’s oil exports, there would be massive disruption to the oil and gas sector resulting in a spike in oil prices which would have a detrimental effect on the global economy. Both the US and Iran are aware of this possibility with both governments attempting to send signals of restraint combined with regional government who have also pressed for de-escalation. There appears to be little appetite for conflict from the President of the US, Donald Trump, despite pressure from members of his cabinet. Moreover, although Iran has threatened to close the Strait of Hormuz many times in the past it has never done so as it understands the effect this action would have both on the global economy and its reputation internationally. However, there is always the chance of miscalculation and although an all-out war between the US and Iran is unlikely, even a small conflict between US and Iranian proxies in the region would have negative and far reaching consequences for the oil sector and the global economy. September 2019 Michael Comfort Supply Chain Analyst michael.comfort@the-eic.com

Designed and published by the Energy Industries Council 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com @TheEICEnergy EIC (Energy Industries Council)

Inside this issue... October kicks off with one of the most exclusive events in the UK energy industry’s supply Lucy C hakao dza chain calendar. On 3 October we will be hosting our third annual National Awards Dinner at 8 Northumberland Avenue as we celebrate the achievements and successes achieved by our members, who have some of the most entrepreneurial, creative and exciting business ideas. This year, well known comedian, Dara Ó Briain will be on hand to host the awards ceremony, which also includes the EIC/RGU Rising Star MBA Award, in conjunction with Robert Gordon University, a unique and career-changing initiative designed to develop leaders of tomorrow in the oil and gas sector. If you work in the O&M sector or are thinking about entering this lucrative market why not get ahead of the competition with EICAssetMap, our interactive database which maps all major facilities across the entire energy spectrum. We now have map activity across Brazil in addition to Norway, UK, the GCC and ASEAN regions. To search for assets by location, sector and operator to gain the best insight into the OPEX market in a growing number of regions visit www.the-eic.com/EICAssetMap EIC will be streaming an informative oil and gas market update webinar on 8 October. To hear more about global trends and contracting activity visit www.the-eic.com/EventDetail?dateid=2538 Once again, we are excited to be back at ADIPEC this year at the beginning of November, where for the first time EIC will have five pavilions including Wales, Scotland, and expanded and new for 2019, a digitalisation pavilion. This month, Andre Moura, Sales and Applications Manager, Sonardyne Brasil explains how subsea technology is playing a central role in Brazil’s offshore oilfield development in our member guest editorial on page 15. Lucy Chakaodza, Editor, Media and Communications Manager lucy.chakaodza@the-eic.com

CONNECT Energy South Korea Visit www.the-eic.com/Forms/NewsletterSignup Please contact lucy.chakaodza@the-eic.com

Guest editorial

Inside this issue...

EICDataStream 4 New EIC members Member news

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Social media round up 13 Guest editorial

One-to-one 16 Spotlight on technology 17 Forthcoming events

Overseas events

UK and Europe news 21

8 October 2019 • Seoul

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Contents

Middle East news

Asia Pacific news

North America news

South America news 25 EIC Survive & thrive III 26

@TheEICEnergy

EIC (Energy Industries Council)

DataStream ARGENTINA

Bahía Blanca LNG Export Terminal Operator: Transportadora de Gas del Sur Value: US$800m First phased development of a new FLNG terminal. The first phase will have a capacity of 4MMcm/d. Excelerate and TGS have completed pre-feasibility studies and are in discussions with gas producers interested in the project.

Global opportunities GUYANA

Payara Oil Field Operator: ExxonMobil Value: US$6.5bn Approval for the field developments is expected before the end of the year with first oil expected in 2022/23. Investment in the fields’ development will exceed US$6bn due to the high number of development wells needed.

Fife Ethylene Plant Upgrade Operator: ExxonMobil Value: US$174m ExxonMobil has announced the launch of an investment programme at the facility to upgrade key infrastructure and introduce new technologies that will significantly improve operational reliability and performance.

For more information on these and the 8,500 other current and future projects we are tracking please visit EICDataStream

INDIA

WALES

ZAMBIA

Kutch Ultra Mega Solar Power Park

Energy from Waste Newlands Road

Wind Solar Battery Storage Hybrid Project

Operator: NTPC Ltd Value: US$800m NTPC has announced plans to construct a 5,000MW ultra-mega solar power plant project in Kutch, Gujarat. The company will invest approximately Rs20,000 crore and is looking at 2-3 locations in the area to develop the solar park.

Operator: Môr Hafren Bio Power Value: US$182m Plans for a 15MW EfW plant in Cardiff. The plant will process 200,000 tonnes of municipal solid waste a year and will use a traditional grate combustion system. A planning application will be submitted this autumn and Standardkessel Baumgarte has been chosen to deliver the facility.

Operator: Upepo Energy Value: US$200m Development of a 150MW wind, solar and battery storage hybrid facility in northern Zambia. The US Trade and Development Agency (USTDA) has agreed to finance a feasibility study for the proposed power plant. WSP USA will lead the feasibility study.

DataStream Our global project tracker:

Tells you everything you need to know about global energy projects Helps you to win new business

Keeps you ahead of the competition Need ayour demonstration of EICDataStream? Get in touch Share news and views... Pleasenewsdesk@the-eic.com contact membership@the-eic.com Email • Phone +44 (0)20 7091 8600

AssetMap

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The EIC’s O&M database maps all major facilities across all sectors

Key features • • • • • •

Fully interactive: search for facilities by location, sector and operator

Make the right connections: find out who you need to do business with at each facility

Use it on the move: tablet friendly so your sales force can take it with them on the road Unlimited company access: add as many colleagues as you like to your account Stay up to date: EICAssetMap is updated daily by our expert analysts

Track the lifecycle of assets: from start-up through to decommissioning

If you work in the O&M sector, or are thinking about entering this lucrative market, get ahead of the competition with EICAssetMap To arrange a demonstration, contact our membership department on +44 (0)20 7091 8622 or email membership@the-eic.com www.the-eic.com/EICAssetMap

New EIC members NEW OVERSEAS EUROPE GLOBAL MEMBER

BBC Chartering

NEW GCC MIDDLE EAST MEMBER

NEW GLOBAL MEMBER

BILCO Middle East FZC

Bolt & Nut Manufacturing Ltd

Hafenstr. 12 Leer, 26789 Germany

Hamriyah Free Zone Phase 1 1K04/2 K Block Sharjah United Arab Emirates

The Nominated Representative is Mr Raymond Fisch, Senior VP

The Nominated Representative is Mr Waqas Amjad, Sales Manager

The Nominated Representative is Mr Joseph Brennan, Commercial Director

Telephone +49 491 925 2090

Telephone +9716 526 1008

Telephone +44 (0)1902 355 110

Email raymond.fisch@bbc-chartering.com

Email sales@bilco-fzc-me.com

Email joe.brennan@bnml.co.uk

Web www.bbc-chartering.com

Web www.bilco-fzc-me.com

Web www.bnml.co.uk

BBC Chartering is a global market leader for the ocean carriage of heavy lift and project cargoes. It supports clients with a fleet of 160 multipurpose and heavy lift vessels. Its global organisation and chartering network works with clients in the daily planning and execution of engineered transport solutions for single cargo transactions, sophisticated heavy lift projects or strategic volume ocean freight contracts.

BILCO Middle East specialises in the design, manufacture and installation of passive fire protection for the oil and gas, chemical and petrochemical industries, flexible, rigid and semi-rigid type.

Bolt and Nut produces special fasteners in various exotic alloys, such as Inconel, Nimonic, Monel, Super Duplex and 660, along with the capability to manufacture bespoke turned parts to customer drawings/specifications.

BILCO Middle East can provide BV type approval certified solutions to protect critical safety system and allow a controlled plant shutdown in the event of fire either for UL 1709 or jet fire up to 120 minutes.

Bolt and Nut also has a petrochemical stock holding of £3mn, comprised of ANSI/ASME and DIN standard products, in ASTM grades, such as B7/L7, B8/B8M class 1/2 with additional services, such as reverse engineering, project management and consignment stock available.

The BBC Chartering fleet portfolio ranges from 4,320 to 56,800 dead weight tonnage (DWT) and features lifting capacities up to 1,400 mt representing one of the world’s largest trading capacities for the transportation of project cargoes. BBC Chartering tailors the project requirements for any sector and is a global leader in multi-purpose/ heavy-lift ocean freight transportation solutions from the project FEED/ bid stage through execution; for the energy, oil and gas, steel, renewable energy, and mining sectors.

Its flexible protections have a blast test certificate, issued by Bureau Veritas, for an exceptional resistance up to 1,85 Bar. The application includes the protection of electric, pneumatic and hydraulic actuators, valves, flange couplings and cable trays.

BBC offers a high-performance inducement service for project cargoes on a global scale. It guarantees charterers the most economical, reliable, efficient, yet flexible transport solution engineered to their demands. Get in touch Share your news and views...

Unit 16.19.20.27 Cannon Business Park Grough Road,Coseley WV14 8XR

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

With decades of expertise across multiple industry sectors, like oil and gas and petrochemical Bolt and Nut provides support for multidisciplined, blue-chip, EPC and OEM customers.

CONNECT E CONNECT E

New EIC members

NEW UK MEMBER

Ecosse IP Ltd Brathens Eco Business Park Banchory Aberdeenshire AB31 4BW

NEW GLOBAL MIDDLE EAST MEMBER

NEW GLOBAL MEMBER

JC International Ltd

MAN ES UK LTD

Plot 5JC Street, Off Peter Odili Rd Trans Amadi, Port Harcourt PO Box 6427, Nigeria

Mirrlees Drive Hazel Grove Stockport SK7 5BP

The Nominated Representative is Mr Frank Our, General Manager

The Nominated Representative is Mr Mathew Hinton, Sales Director

Telephone +44 (0)1330 826 888

Telephone +234 845 50158

Telephone +44 (0)1206 759 151

Email catriona.stevenson@ecosse-ip.com

Email frank@jcinternationalng.com

Email mathew.hinton@man-es.com

Web www.ecosse-ip.com

Web www.jcinternationalng.com

Web https://uk.man-es.com

Ecosse IP Limited is a subsea technology developer and offshore engineering consultancy specialising in oil and gas, offshore wind, wave and tidal industries.

JC International is a leading asset integrity maintenance and training services company with operations in Nigeria and other West African countries. JC International is an ISO 9001:2015 certified company that provides lifting equipment inspections, OCTG inspections, training, rope access, non-destructive testing, pre-commissioning and fabric maintenance services to the oil and gas, marine and construction industries.

MAN Energy Solutions UK Ltd employs 265 people with HQ in Stockport. As well as maintaining established global fleets of Rustons, Mirrlees Blackstone and Paxman brands, in Colchester near London the company produces the highly efficient, compact and genuine black start capable VP185 diesel engine.

The Nominated Representative is Ms Catriona Stevenson, Business Development & Operations Manager

Ecosse IP designs, develops, builds, hires and operates a range of subsea equipment; its technologies cover pipe-lay systems, pipeline fabrication spoolbases and subsea lifting. Ecosse IPâ&#x20AC;&#x2122;s services are flexible and can be combined and tailored to your specific project requirements.

JC International has acquired numerous professional memberships and accreditations from international and local bodies, which include LEEA, IWCF, IADC, OPITO, IRATA, IOSH, ASNT, SPE, ABS, NACE, DROPS, WJA, British Safety Council, OGTAN, DPR and FMLP.

Energy South Korea 8 October 2019 â&#x20AC;˘ Seoul

Visit www.the-eic.com/Forms/NewsletterSignup

With two stage passive turbocharging (no electronics) and high efficiency cooling, the engine has a very wide torque curve and remains responsive and efficient through 1200, 1500 and 1800 rpm for critical power generation applications. The 18VP185 is the only engine that can deliver >3000kWe COP at 1200 rpm, from a generating set housed within a standard ISO 40ft container. Water cooled exhaust jackets limit radiated heat from the 18VP185 to <100kW, less than 1/3 that of the main competitor, and a robust low pressure mechanical fuel injection system (no electronics) achieves IMO Tier II and the ability to burn B20 biodiesel. The VP185 is therefore very well suited to offshore emergency stand-by and mobile power plant for pipeline drying and early phase semipermanent infrastructure for large downstream developments.

@TheEICEnergy

EIC (Energy Industries Council)

New EIC members

NEW GLOBAL MEMBER

McMenon Engineering Services Ltd

Noralis Ltd

Salterbeck Trading Estate Workington CA14 5DS

Beaumont House 172 Southgate Street Gloucester Gloucestershire GL1 2EZ

The Nominated Representative is Mr Ian Spiller, Commercial Director

The Nominated Representative is Mr Nick Brown, VP Sales

Telephone +44 (0)1946 830 611

Telephone +44 (0)1242 300 316

Email ian.spiller@mcmenon.com

Email nick.brown@noralis.com

Web www.mcmenon.com

Web www.noralis.com

McMenon’s mission is to be the premier manufacturer of flow and temperature measurement instrumentation and the trusted partner of choice for complete contract engineering and manufacturing services.

Noralis is a technology driven, industry leading, Measurement While Drilling (MWD) equipment manufacturer. With over 6 years of R&D and 10,000+ calibration hours, Noralis has brought MWD technology into the 21st century.

The acquisition of the Workington facility from ABB, a global power and automation technology group, is a major milestone for McMenon Engineering Services. The facility has a long tradition of designing and manufacturing an industryleading highly-specialised range of DP flow and temperature measurement products and led by employees who are the best in the business. Being a preferred supplier to ABB instantly places McMenon Engineering Services amongst the premier suppliers of flow and temperature measurement instrumentation.

Its products include a Fully Integrated Directional Module (NDM), Surface Decoding System (NPD), and MWD Surface Software Solution (NISE).

Social responsibility is at the heart of its business and the company truly believes that high performance walks hand in hand with responsibility. McMenon’s vision for the future is to create organisations that are progressively adaptable to change and innovation by providing a meaningful and rewarding experience for its members. Get in touch Share your news and views...

At 50% cost, its NDM is a patent protected MEMS based 27-sensor single chassis directional package meeting the accuracy requirements of standard MWD error models. The tool includes the functionality of a traditional MWD processor and power supply, is rated to 175 C, and vastly improves reliability by reducing the required circuitry in half. Noralis’ decoding solution, the NPD (Noralis Pressure Decoder), is only slightly bigger than an iPhone, Zone1Div2 rated and powered by a simple USB port. Noralis surface software (NISE) embeds remote operations, gamma logging, advanced survey correction techniques (SCC/MSA), and capable of programming/ downloading Noralis equipment.

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

NEW GLOBAL MIDDLE EAST MEMBER

Orbital & Oranges Nigeria Ltd Plot 156-160 Atali, Igwuruta Road PO Box 10489, Port Harcourt Rivers State, Nigeria The Nominated Representative is Mr Akinola Awomodu, Managing Director Telephone +234 809 3920 713 Email akin.md@orbitaloranges.org Web www.orbitalandoranges.com Orbital & Oranges Nigeria Ltd’s commitment is to help customers build and maintain well‐designed facilities that are engineered for dependable, safe and efficient operation. This commitment, along with a dedication to the highest standards of performance, has established Orbital & Oranges Nigeria Ltd as one of the leading Nigerian companies in the oil and gas industry. In spite of the turbulence in the oil and gas industry, Orbital & Oranges Nigeria Ltd has consistently grown. Today it is actively engaged in projects in offshore and onshore locations across Nigeria. Areas of specialisation include: • Engineering, procurement and construction • Project management • Offshore installation services • Heavy lifting and rigging services • Fabrication and welding • Scaffolding and rope access • Bolting and tension torque • Manpower supply • Electrical and instrumentation • Painting and coating • Blasting (UHP technology) • Pressure testing and leak test • Procurement and logistics • Heavy duty equipment supply and maintenance

New EIC members

NEW PRIMARY MIDDLE EAST MEMBER

Serck Services Company LLC PO Box 4439 Musaffa, Abu Dhabi United Arab Emirates The Nominated Representative is Mr James Brazier, Operation Director Telephone +971 0 2555 3108 Email james.brazier@serckgulf.com Web www.serckgulf.com Serck Services International is part of the UK based Unipart Group of Companies; together with its branch networks in the UK and US, Serck is one of the largest automotive, industrial and marine heat transfer companies in the world. Specialist heat exchange services to the oil, gas, power, petrochemical, marine and desalination sectors. Manufacturer and global exporter of tube and shell heat exchangers, radiators, air conditioning coils and heat recovery products. Operations range from the testing, servicing, re-tubing and complete manufacture of industrial and marine heat exchangers. From its purpose built manufacturing plant in the United Arab Emirates its specialist heat transfer products are exported globally to end users across the Middle East, Africa, United Kingdom, Mainland Europe and North America.

NEW RENEWABLE ENERGY MEMBER

NEW GLOBAL MEMBER

Spliethoff-BigLift UK Ltd

TNEI Services Ltd

43 Friends Road Croydon CR0 1ED The Nominated Representative is Mr Andrew Saunders, Joint Manager Telephone +44 (0)20 8688 2020 Email a.saunders@spliethoff-biglift.com Web www.spliethoffgroup.com Spliethoff-BigLift UK Ltd is the UK representative office of Dutch shipowners, Spliethoff and BigLift, focusing on worldwide engineered transportation solutions for project and heavy lift cargo. Spliethoff and BigLift jointly operate a large and modern fleet of more than 100 vessels ranging from 2,100 to 23,000 tonnes. This versatile fleet includes multipurpose, geared twindeckers, heavy lift vessels (HLV), heavytransport vessels (HTV) all flying the Dutch flag. The core business is the transport of complex and heavy lift cargoes. This includes chartering, stowage planning, transport engineering and successful execution of project cargoes from within the oil and gas, renewables, mining and power industries.

Visit www.the-eic.com/Forms/NewsletterSignup

2nd Floor Bainbridge House 86-90 London Road Manchester M1 2PW The Nominated Representative is Mr Christopher Grundy, Proposals Manager Email christopher.grundy@tneigroup.com Web www.tneigroup.com TNEI is an independent specialist energy consultancy providing technical, strategic, environmental and consenting advice to organisations operating within the conventional and renewable energy sectors. TNEI has a range of skills tailored specifically to answer the issues associated with increased distributed renewable generation and the integration of low carbon technology. Its consultants have industry leading expertise in grid code compliance studies, noise assessment and modelling of innovative, smart grid technologies. These skills are complemented by a number of other technical services; from GIS and consenting, to civil engineering and energy market analysis, allowing TNEI to confidently guide clients through projects from concept to delivery.

@TheEICEnergy

EIC (Energy Industries Council)

Member news Balltec secures North Sea decommissioning contract

Balltec

Balltec’s scope of supply comprises 18 of its LiftLOK ball and taper lifting connectors. The connectors will be used for the lifting of 30 inch diameter conductors during removal of a jacket in a single lifting operation by Heerema’s heavy lift vessel Sleipnir. The jacket and conductors will then be transported suspended in the cranes of the Sleipnir to a decommissioning yard. The LiftLOK connectors, rated to a safe working load of 76mT, are due to be delivered in March 2020 with offshore operations scheduled to take place during the following summer. Balltec’s LiftLOK connectors have an extensive track record for the remote deployment and recovery of subsea equipment and have been used on many notable projects including Åsgard and Aasta Hansteen for Equinor.

The previous months have seen trading with a new name, Delta Mobrey Ltd, expand the product range with Mobrey products and grow the business globally with a number of key senior appointments. And this is just the beginning! Delta Mobrey has many more developments in store throughout the rest of this year and beyond.

The contract involves all parts of Cresent’s business, including consultancy, project management, e-CoW software, e-learning, and classroom-based learning. The project will see WorkSafe® deployed initially on nine of MODEC’s vessels.

Delta Mobrey would like to thank all its customers, including those that it has gained through the Mobrey acquisition, its distributors old and new, suppliers and staff for their support during the transition period. Delta Mobrey is excited looking ahead at this new chapter for the combined Delta Mobrey business.

UK-based Health & Safety specialists Cresent has been selected by MODEC do Brasil as its electronic Control of Work (e-CoW) provider, using Cresent’s WorkSafe® solution.

Balltec has recently been awarded a contract by Heerema Marine Contractors Nederland (HMC) for work on the decommissioning and removal of a large platform with conductors in the North Sea.

For more information: www.balltec.com

Cresent agrees contract for FPSO fleet

The WorkSafe® solution includes three core modules; Task Risk Assessment, Permit to Work and Energy Isolations, all of which MODEC will be implementing. The modules are interconnected to provide a comprehensive planning and risk management tool, ensuring that information can be easily accessed in an efficient way. The decision by MODEC to move to an e-CoW system follows a significant upgrade to its system in 2018, which has provided a solid foundation for the e-CoW system to build upon. The project kicked off in late April, with the project team meeting at MODEC’s offices in Rio de Janeiro, prior to MODEC’s visit to Cresent in June.

For more information: www.cresent.co.uk

Delta Mobrey acquisition now finalised

Delta Mobrey has announced that five months after it signed an agreement with Emerson to exclusively distribute and then purchase the Mobrey line of measurement products, the full acquisition has now been successfully completed.

Get in touch Share your news and views...

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

For more information: www.delta-mobrey.com

KCA Deutag wins US$168m drilling contracts in Russia

KCA Deutag (KCAD) has announced that its land drilling operation has won three new contracts in Russia worth approximately US$168m. These contracts are for eight high performance land rigs, seven of which were previously built by Bentec, KCAD’s rig and oilfield equipment manufacturer. The first contract is with an existing client for five of those rigs to carry out drilling operations in two fields in Eastern Siberia. The next contract is for two 1500 HP Cluster Slider rigs which will drill in Northern Russia. In addition to this KCAD has won a new contract for one of its 2000 HP land rigs to drill four wells in Southern Russia.

For more information: www.kcadeutag.com

Member news

Subsea compression technology for Chevron’s Jansz-Io field in Western Australia © Chevron

MAN Energy Solutions has been awarded a contract to support the FEED study of a subsea compression solution for the Chevron-operated Jansz-Io field in Western Australia. It is located around 200km off the Australian north-west coast at a water depth of approximately 1,350 metres. Jansz-Io is part of the Gorgon project – one of the world’s largest natural gas developments. MAN Energy Solutions’ scope of work within the front-end engineering and design (FEED) covers the technology of the subsea compressors, which will be used to maintain output as reservoir pressure drops over time. Subsea compression solutions boost the recovery of the gas more cost-effectively and with a smaller environmental footprint than conventional compressor systems that are typically installed on platforms above sea level. MAN’s subsea compression solution has already proven its reliability and benefits for Equinor’s Åsgard gas field in Norway, where the subsea compressors reached 50,000 hours of operation with practically no stops or interruptions in December 2018.

For more information: https://uk.man-es.com

NRL to provide recruitment expertise for the Keadby 2 project

Siemens is partnering with UK technical recruitment firm NRL for the Keadby 2 project in North Lincolnshire, which is being developed by SSE, and is set to become the most efficient gas-fired power station in Europe.

Rotork increases CK range of modular electric valve actuators

Rotork has increased the versatility of its electric valve actuators with the CK Atronik, an intermediate level integral control option, providing a ready-to-operate actuation solution to meet the requirements of many plant specifications.

NRL will be responsible for engaging with the local community and its existing UK-based candidates to manage recruitment of workers needed for the project. All subcontractors will be obliged to use NRL resources when selecting candidates to ensure a local legacy for the project. In addition, any candidates who wish to be considered for work at Keadby 2 will need to register with NRL to be considered, to ensure a fair recruitment process. At the end of May 2019, more than 70% of the workers on site were from the UK. The project wants to maintain a strong UK workforce to ensure skills and economic benefit are delivered by the project to the local community. NRL will be responsible for creating a detailed labour pool with all prospective candidates required to meet competency requirements.

For more information: www.nrl.co.uk

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Rotork

Subsea FEED order for MAN Energy Solutions

The CK Atronik control module houses a reversing contactor starter with mechanical and electrical interlocking, a proven and reliable Rotork design for electric actuation. Connection to a suitable power supply is all that is required for local operation. CK Atronik actuators can be specified for operation from singlephase or three-phase electrical supplies. For three-phase supplies the maximum actuator output torque is 500 Nm (369 lbf ft) in an output speed range of 9-230 rpm.

For more information: www.rotork.com

@TheEICEnergy

EIC (Energy Industries Council)

Member news

Sherwin-Williams steps in with corrosion protection coatings for Royal Navy

Global protective coatings leader Sherwin-Williams has delivered a diverse range of protective coatings to more than a million square metres of HMS Queen Elizabeth and sister ship HMS Prince of Wales – the largest warships ever built for the Royal Navy. Sherwin-Williams was selected to supply corrosion protection marine coatings to the various external and internal surfaces of the two prestigious vessels. Principle applications included exterior decks, berthing spaces, passage ways, wet areas, machinery spaces, cabins, galleys and the bridge, while ensuring longer corrosion protection and a visually appealing aesthetic finish. Thanks to its long track record of providing excellent corrosion protection on steel surfaces, the Sherwin-Williams high-build epoxy zinc phosphate primer Macropoxy C425v2 was applied to both carriers. The high solids, twopack Macropoxy M922 containing micronised glass flake and anticorrosive pigments was successfully used as a tank lining.

The Sherwin-Williams Biogard M630V2 water-based epoxy finish was applied in various colours to wet space areas such as bathrooms, galleys, decontamination spaces, laundries and machinery space bulkheads and all standing decks. A range of water-based finishes including M770 and Sherwin-Williams Macropoxy M630V2 in pebble or white were also used to provide a protective aesthetic appearance.

We have provided both knowledge and expertise in the marine environment to combat corrosion and delivered the highest aesthetic finish over such a large scale. Alex Sandilands, Product Manager, Sherwin-Williams

Application of the coatings was provided by applicator Wood working with The Aircraft Carrier Alliance. HMS Queen Elizabeth was delivered to the Royal Navy in December 2017, while completion of coatings for HMS Prince of Wales is scheduled for later this year.

For more information: www.sherwin-williams.com

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Neptune trades up to Sonardyne’s new all-in-one technology

Australian headquartered subsea services specialist Neptune has become the latest company to adopt Sonardyne’s new, all-in-one acoustic and inertial positioning technology platform to support its offshore projects. The order, made through Sonardyne’s Singapore subsidiary, includes the supply of Fusion 2 software, Compatt 6 seabed transponders and ROVNav 6 LBL vehicle-mounted transceivers. Fusion 2 software offers a seamless environment in which surveyors can perform all of their LBL, SPRINT INS (inertial navigation system) and sparse (INS-aided) LBL operations. Fusion 2 offers the ability to simplify complex projects – all with less subsea and topside hardware. Their 6+ replacements are scheduled to go straight to work supporting Neptune’s upcoming rig positioning and field support campaigns in Asia and Australia.

For more information: www.sonardyne.com

New EIC members Social media Member round news up

Sparrows Group secures approved supplier status from Saudi Aramco Global specialist equipment and integrated engineering services company, Sparrows Group, has bolstered its position in Saudi Arabia after securing vendor approval status from the national oil company, Saudi Aramco. The approval allows recently formed local entity, Sparrows Saudi Arabia LLC, to deliver its full portfolio of services to Saudi Aramco including drilling and lifting equipment examination and overhaul, specialist inspection, Dropped Objects Prevention Scheme (DROPS) surveys, mechanical handling and engineering support. The business will also transfer its knowledge and expertise to the local workforce through its globally recognised crane operator, lifting and fluid power training courses. Chief executive officer of Sparrows, Stewart Mitchell said, ‘Saudi Arabia holds around 18% of the world’s proven petroleum reserves and is the largest exporter of hydrocarbons. As the national oil company, Saudi Aramco is vital to our growth in the region and securing vendor approval status is a key milestone for us. It opens up the extensive supply chain within the Kingdom and provides significant growth opportunities for Sparrows in-country. ‘There is a strong demand for our specialist services to support the high level of activity in Saudi Arabia and our local business is ideally placed to provide this. We look forward to building a strong working relationship with Saudi Aramco and the wider local market.’

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – EIC (Energy Industries Council) Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy

#EICConnect in #Kuwait was the largest UK inward delegation to Kuwait for any sector! Thanks to our sponsors @Woodplc, #Petrofac, @roxtec, #GACGroup & #ORA

The EIC @TheEICEnergy

Sign up to our free #OilandGas Market Update webinar on 8 or 9 October to hear more about global contracting activity and trends http://bit.ly/2kzMGH7

EIC (Energy Industries Council) Last 2 places left for Wind Energy Expo & Conference Japan. Join us. TAP grants of £2,500 available. Contact OverseasEvents@the-eic.com

The company has been active in the region since 2015 and was granted commercial registration to operate in Saudi Arabia in August last year.

For more information: www.sparrowsgroup.com

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EIC guest editorial

Moves towards subsea autonomy in Brazil

Andre Moura, Sales and Applications Manager, Sonardyne Brasil Ltda

Subsea technology has always played a key role in Brazil’s offshore oilfield development. To a large degree, it’s had to, especially since the late 1990s, when exploration moved into much deeper waters.

Today, Brazil is entering a new growth phase. More stable, higher oil prices have brought back investment, supported by new license rounds, new players and a relaxation of local content rules. But, while the nation is expected to account for two thirds of the global awards for floating production vessels in 2019-2020, there isn’t a rush to grow, no matter the cost. There’s a real effort to make offshore operations more efficient; reducing cost and being smarter and more effective. Operators want to reduce vessel time, they want operations to go right the first time and they want increased efficiency, all while maintaining safety. Those market forces are driving technology suppliers like us to develop simpler, more automated and even unmanned systems.

A deepwater technology journey We came to Brazil because the industry needed our expertise in Long BaseLine (LBL) acoustic tracking and positioning systems, to enable those first deeper water developments, and then also our Ultra-Short BaseLine (USBL) systems. We’ve improved precision and accuracy in deep water, so what was once considered pioneering is now considered routine. Today we’re helping operators reduce their overheads and interfaces by enabling more to be done with less equipment on the seafloor and making operations easier and remotely, from shore, through our powerful all-in-one LBL-INS (inertial navigation system) software, Fusion 2. As we move towards the next decade, operators are wanting to do even more, with less, using subsea robotics and autonomy. It’s a long, long way down to reach the seafloor infrastructure on these fields, so everything has to be done with remotely operated vehicles (ROVs) or autonomous underwater vehicles (AUVs).

It’s all about being smart and efficient; simplifying operations and reducing the hardware overheads. We see a lot more coming in this area. Today, vehicles are usually connected to a vessel via a tether, for communications, power and control, or they’re untethered but followed by a vessel for positioning and regular retrieval for battery recharging. In the future, the tether will be removed and either unmanned surface vessels will be used to support communications and control or subsea vehicles will be able to dock into subsea infrastructure.

Increasing underwater autonomy This is part of a trend towards moving more operations to the seabed, including ocean bottom nodes (OBN). Here, we’re supporting the development of a new 4D seismic monitoring system, based on On-Demand OBNs, to monitor Brazil’s deepwater pre-salt oil fields. It’s a National Agency of Petroleum-Natural Gas and Biofuels (ANP) promoted programme working with Shell Brasil, and Brazilian research institute Senai-Cimatec. The goal is to increase the autonomy of OBNs so that they can remain deployed and unsupported on the seafloor for up to five years, recording seismic and geodetic data on demand. During their deployment, using the wireless communications technology we’re building into them, their data will be harvested by AUVs, such as the Shell-funded FlatFish. It’s an exciting time to be in the industry in Brazil and we look forward to remaining in-country, growing our local team and supporting the next phase of developments.

Underwater navigation systems

We’re helping operators, contractors and technology partners to achieve this. In fact, subsea services providers in Brazil have again been early adopters, pioneering use of our SPRINT-Nav hybrid navigation instrument. It combines an inertial navigation system (INS), Doppler velocity log (DVL) and depth sensor, in a single compact high-performance unit, reducing the amount of equipment and interfaces needed on subsea vehicles and providing unprecedented positioning accuracy.

Sonardyne’s hybrid navigation solution SPRINT-Nav has seen rapid take-up in Brazil

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EIC (Energy Industries Council)

One-to-one

with Tim Blackmore Head of Renewables, Nylacast With more than 550 employees across four continents and 5 million engineering products delivered worldwide annually, Nylacast is a world leading innovator in the design, development and supply of precision engineered solutions, providing expertise and value for key industries through two distinct divisions: Nylacast Automotive and Nylacast Engineered Products.

As the Head of Renewables what do you see as the top three priorities for the organisation in the future?

We have had a lot of exposure and success in offshore oil and gas, our focus is on diversifying and transferring our knowledge into the renewables space. In the short term, we want to use events such as EIC Connect to network influence and educate universities, R&Ds and engineers on the benefits and properties of our materials and how they can be utilised, through a series of workshops. In the medium term, building upon our successes we would look to become global suppliers and the go-to people for nylonbased products. In addition to our UK plant, we also have manufacturing plants in China and South Africa, those areas are going to become much more important as the renewables sector moves into emerging markets. In the long-term we want to grow our business and continue to be a trusted technology partner for the supply of highly engineered polymeric materials technology.

How has Nylacast been working with industry to develop new cost saving performance enhancing applications?

Nylacast was founded 50 years ago, primarily working in other key sectors including automotive, marine, and

oil and gas, and is now transferring its knowledge from oil and gas to offshore wind. We are working with many of the global OEMs involved in offshore wind, wave and tidal. We are looking at some of their components and looking to modify and replace with nylon products which include waxes, oils and have less water absorbency so it’s a product material for an application. We are also developing safety aspects; a nylon component is a lot lighter than a metallic component. If you take LCOE areas for example being lighter can put more in a weight limited environment.

It’s also a softer material although more durable so takes less energy to turn or mill to shape, so using less energy equals less CO2 emissions. Reduction in CO2 emissions is in line with the government’s net zero emissions by 2050 agenda. Therefore, we are driving our business through the renewables sector to help companies to be in line with those targets. The fact our company is based in Leicester helps the UK supply chain, being central in the UK. We are trying to integrate into the service and OEMS by providing lighter, self-lubricating more unique product to eliminate the use of metals.

How does Nylacast’s unique materials technology assist with lowering the levelised cost of Energy (LCOE) and CO2 emissions?

Tell us about the CSR work Nylacast is involved in

A keen investor in people, Nylacast invests in local communities through close affiliation with a number of local charities. We also run our award winning engineering training academy in Leicester. These facilities up-skill the current workforce as well as training the next generation of engineers through our successful apprenticeship programme.

Forging strong partnerships with educational institutes across the nation, Nylacast regularly promotes engineering careers and provides opportunities for school leavers, college and university students and graduates.

If we look at the key benefits of Nylacast products one of the areas I touched upon was weight reduction, that is already a decrease in CO2 emissions when moving components/ materials around the country.

There is a potential to reduce components and additional components. If we look at CO2 emissions, manufacturing components from metallics is a good example. To melt steel it uses a lot more energy at 900 degree Celsius, whereas nylon melts at lower temperature using a lot less energy.

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Spotlight on technology CMP Products

www.cmp-products.com

TruSeal Leading cable gland and cable cleat manufacturer CMP Products has released its new product range, TruSeal, to the market, following significant investment in the latest machinery and tooling at its UK headquarters. CMP Products has announced that its new polymer and metallic cable glands, for industrial and explosive atmospheres, are now available for global distribution, following the formal launch at September’s Offshore Europe exhibition in Aberdeen.

CMP’s R&D team has designed TruSeal so that each cable gland size can be supplied with three different polymer sealing rings, ensuring that each size of TruSeal gland has the largest cable acceptance range on the market. This aids with reducing onsite inventory levels and costs.

The TruSeal range complies with the very latest product safety standards for industrial (IEC/EN 62444) and explosive atmosphere (IEC/EN 60079-0, 7, 31) installations, while all materials are UV resistant, zero halogen and phosphorus free as standard.

Engineers from R&D, manufacturing and automation have played key roles in taking TruSeal to market, while the company has invested in certification for the new glands along with new plant and equipment, including new pad printing facilities and state of the art injection moulding.

In addition, the products are certified to perform across an extensive range of hot and cold temperatures and have the highest-available impact ratings.

‘We have created what we believe to be the safest, best quality cable gland of its kind and as a result we expect demand to be high.’ Lee Frizzell, Technical Director, CMP

Any EIC members who wish to be profiled in this section please contact Lucy Chakaodza, EIC Editor, Media and Communications Manager lucy.chakaodza@the-eic.com Sign Get inup touch for the EICOnline newsletter

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EIC (Energy Industries Council)

October 2019

Forthcoming events 1 October Management Course

EICDataStream/AssetMap training Online

1 October Business Presentation

EICDataStream Overview EIC Houston

2 October Industry Overview

Fundamentals of Oil and Gas EIC London

2 October Business Presentation

Doing Business in Rhode Island Webinar

3 October Sector Showcase

LNG

EIC London

3 October Corporate Entertainment

EIC National Awards Dinner 2019 8 Northumberland Avenue, London

8 October EIC Connect

EIC Connect Energy South Korea Four Seasons Hotel, Seoul

8 October Business Presentation

EIC Oil and Gas Market Update Webinar

9 October Industry Overview

Fundamentals of Nuclear EIC London

9 October Business Presentation

EICDataStream Overview EIC Kuala Lumpur

Get in touch Share your news and views...

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

9 October Business Presentation

EIC Oil and Gas Market Update Webinar

10 October Business Presentation

Opportunities with Enauta EIC Rio de Janeiro

11 October Technical Workshop

Introduction to Energy from Waste Grundon, Lakeside, Slough

15 October Export Showcase

Sub-Saharan Africa EIC London

15 October Management Course

EICDataStream/AssetMap training Online

16 October Industry Overview

Fundamentals of FPSOs EIC London

16 October Business Presentation

Business Presentation with BP EIC Houston

16 October Business Presentation

Opportunities with Saipem EIC Rio de Janeiro

17 October Business Presentation

EICDataStream Overview EIC Houston

24 October Management Course

Technical Report Writing EIC London

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

Forthcoming events

8 October 2019 • Seoul

CONNECT October – November 2019

Energy South Korea 24 October Business Presentation

4 November Sector Showcase

EIC Open Day

Internationalisation in Oil and Gas

EIC Houston

EIC Rio de Janeiro

29 October Sector Showcase

6 November Industry Overview

Cross-Sector Decommissioning

Fundamentals of Subsea

AMP Technology Centre, Sheffield

EIC London

29 October Business Presentation

6 November Export Showcase

EICDataStream Overview

Opportunities in Norway

EIC Houston

Aberdeen

30 October Management Course

7 November Sector Showcase

EICDataStream/AssetMap training Online

1 November Business Presentation

Park Inn Radisson, Manchester

11 November Overseas Exhibition

Digitally Enabled Offshore Worker Petrofac, Aberdeen

Hydrogen with Mott MacDonald

ADIPEC

ADNEC, Abu Dhabi, UAE

27 February 2020 • Mexico City

CONNECT Mexico Energy Forum Sign up for the EICOnline newsletter

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EIC (Energy Industries Council)

Overseas events Overseas delegations

EIC overseas delegations are an excellent introduction to a new market in a supportive environment and the perfect way to strengthen existing business relationships. Our delegations provide a full and varied itinerary of meetings and networking opportunities with senior decision makers and procurement managers within NOCs, IOCs and EPC contractors. Essential information and advice is provided on procurement and pre-qualification processes, legalities, taxation, security and cultural issues.

Camilla

Tew

Here is an example itinerary of what you can expect a week on a delegation to look like. (EIC Delegation to Trinidad & Tobago and Guyana, January 2019) SUNDAY 19:30 – 21:00

Ice Breaking Dinner at Hyatt Regency, Waterfront Restaurant

08:30 – 09:30

Briefing with High Commissioner and DIT

10:00 – 11:00

Meeting with Operator (BP)

11:30 – 12:30

Meeting with Operator (BHP)

12:30 – 13:30

Lunch

13:30 – 14:30

Meeting with Operator (Shell)

15:00 – 16:00

Regroup for Tea at the British High Commission Conference Room

16:30 – 17:30

Meeting with Operator (Atlantic LNG)

09:00 – 10:00

Meeting with EPC (Massy Wood)

10:30 –11:30

Meeting with EPC (TechnipFMC)

12:00 – 13:00

Lunch

13:30 – 14:30

Meeting with National Energy

15:00 – 16:00

Meeting with EPC (WorleyParsons)

18:00 – 20:00

Networking Reception Location: British High Commissioner’s Residence

MONDAY

TUESDAY

WEDNESDAY 08:30 – 10:00

B2B Session – Meet the local SME’s and present company/products and services

15:15

Depart to Georgetown, Guyana

19:30

GCCI Private Sector Welcome Cocktail Reception THURSDAY

08:30 – 10:30

Briefing with High Commissioner and DIT

11:00 – 12:00

Meeting with SBM

12:00 – 13:00

Lunch

13:30 – 15:15

Meeting with both ExxonMobil and the Centre for Local Business Development (CLBD)

15:30 – 16:30

Meeting with REPSOL

18:30 – 20:30

Networking Reception Location: British High Commissioner’s Residence FRIDAY

08:30 – 09:30

Meeting with SAIPEM

09:30 – 10:30

Meeting with Tullow

11:00 – 13:00

B2B Session – Meet the local SME’s and present company/products and services

13:00 – 14:15

Lunch

14:30 – 16:30

Site Visit to Totaltec GY (completed and operational) Shorebase

Get in touch Share your news and views...

Join one of our upcoming delegations today https://www.the-eic.com/Events/OverseasDelegations

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21 21

UK and Europe news Regional update

September saw the overseas events team managing the largest pavilion at Offshore Europe in Aberdeen, with over 35 companies exhibiting their products and services. Jo Cam pbell There were a number of VIP tours and an evening reception, which was a great opportunity for all of our exhibitors and guests to enjoy refreshments and networking. The team would like to wish Nicola Henderson, Business Lead & Events Manager for Scotland, all the best on her maternity leave. Kerrie Madden has now been in her position for over two months as Business Lead & Events Manager for northern England. She has already made such a difference in the region, with many great events being planned – watch this space! While Caitlin Henderson, UK Events Co-ordinator, continues to be a fantastic support for the whole team. October starts with the launch of our LNG Showcase, on Thursday 3rd, at 8 Northumberland Avenue, London. This showcase event will provide an opportunity to engage in discussions about the outlook of the LNG market, its future regarding the growth of LNG demand and potential opportunities for the UK supply chain. Currently, estimated CAPEX of upcoming floating LNG projects stands at US$26 billion, where 47% of the projects are in the design/pre-feed/feed stages. The future of the LNG market looks very promising, and we look forward to working with key organisations in this market to showcase the opportunities for the UK supply chain. To book your place, visit: www.the-eic.com/Events/LNGShowcase We have also announced our Energy Storage Showcase event in Aberdeen on Thursday 10 October, inviting leading developers in the sector to provide attendees with an overview of their current plans and opportunities. Delegates will also have a chance to learn about some of the key technologies under development today as well as gaining an outlook on markets to keep an eye on. Please visit: www.the-eic.com/EventDetail?dateid=2480 On 29 October we have a brand-new event launching in Sheffield: Cross-Sector Decommissioning Showcase. This showcase will focus on the key energy markets of the decommissioning industry, highlighting specific new business opportunities in the oil and gas, nuclear and wind sectors. This event will also draw attention to cross-cutting themes between the industries such as regulations, skills, collaboration, and technology transfer. Please visit: www.the-eic.com/EventDetail?dateid=2495 Jo Campbell, Head of UK & Europe jo.campbell@the-eic.com Sign up for the EICOnline newsletter

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Forthcoming events

LNG Showcase Thursday 3 October 2019, London

Energy Storage Showcase Thursday 10 October 2019, Aberdeen

Cross-Sector Decommissioning Showcase Tuesday 29 October 2019, Sheffield

Regional news

The rise of gas-fired activity in Germany’s energy mix

In the last six months, nearly every European coalburning country contributed to an overall 19% decrease in coal generation. Germany, who currently holds nearly 50GW of coal capacity, has pledged to close all of its 84 coal plants by 2038. With other energy sectors now needed to fill the looming capacity gap, the country has recently seen an influx of advancements in gas-fired projects. eins energie in Sachsen awarded a contract to MAN Energy Solutions to construct the MHKW Nord and Altchemnitz CHP plants in Chemnitz, featuring seven and five gas engines respectively. Ansaldo Energia secured an EPC contract for the 300MW Irsching gasfired peaking power plant, which will be equipped with an AE94.3A gas turbine. In Munich, Stadtwerke Munchen chose GE to provide its 9EMax gas turbine upgrade solution for the modernisation of the Heizkraftwerk-Süd CHP’s two GE 9E.03 gas turbines and two A39 generators. TEAG has also announced plans to build a 63MW gas-fired CHP plant in Jena.

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EIC (Energy Industries Council)

Middle East news Regional update

The final quarter of the year is often one of the busiest in the region, largely dominated by ADIPEC where for the first time the EIC will have five pavilions to visit including Ryan M cPhers on the main pavilion in Hall 8, including the Welsh pavilion, and expanded pavilion in Hall 13, a new UK digitalisation pavilion in Hall 14 and the Scotland pavilion in Hall 1. As one of the world’s most important oil and gas events, ADIPEC is the perfect opportunity for UK companies to network with key stakeholders from across the globe and develop existing relationships. With several recent high value contract awards, the Middle East continues to be a key area of focus for our members where we seek to maintain the UK supply chain’s position as a trusted and proven partner. I look forward to seeing as many of you as possible in Abu Dhabi for what is now considered to be the world’s largest event for oil and gas professionals. This follows on from the recent World Energy Congress held for the first time in the Middle East in Abu Dhabi. Held every three years and positioned as the flagship event of the World Energy Council, the congress is the longest-running energy event in the world, covering all aspects of the energy sector. The inclusion of this event in the region continues to highlight its strategic importance. With the success of our inaugural EIC Connect Energy Kuwait event in September hosted by Kuwait Oil Company (KOC) we would like to take this model around the region and showcase the best of the UK supply chain to key decision makers. Hopefully future events will follow suit, tailored to each specific market. New members continue to join us from the region where we recently welcomed Al Shoumoukh Group, Aubin Group and Midad Holdings (KSA). Our local GCC membership allows companies access to our world leading project tracking database, EICDataStream alongside the strong network of events we provide across the region. On a final note tensions remain high in the region with drones allegedly launched by Yemen’s Houthi rebels attacking the Shaybah oil field, in KSA which produces 1 million barrels of crude oil per day. Thankfully there were no serious injuries but this comes amid heightened tensions in the wider mideast between the US and Iran, whose supreme leader hosted a top Houthi official days earlier in Tehran. Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com Get in touch Share your news and views...

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Regional news

Saudi Aramco reports first half 2019 net income of US$46.9bn

Saudi Aramco has announced for the first time its half-year financial results. The company’s net income was US$46.9bn for the first half of 2019, compared to US$53.0bn for the same period last year. Earnings before interest and tax was US$92.5bn, compared with US$101.3bn a year earlier and capital expenditure was US$14.5bn, compared to US$16.5bn for the same period in 2018. As part of a US$12bn debut international bond issuance, the first financial results mark a significant milestone in Saudi Aramco’s history. However, many observer noted that Saudi Aramco, the world’s most profitable company, gave no guidance on capital spending and did not disclose where or when it might list its shares.

ADNOC awards US$3.6bn worth of contracts for wells and drilling materials

ADNOC has awarded US$3.6bn worth of contracts for the procurement of casing and tubing as it drives value through its smart approach to procurement. Three contracts were awarded to Consolidated Suppliers Establishment, representing Tenaris SA; Abu Dhabi Oilfield Services Company, representing Vallourec SA; and Habshan Trading Company, representing Marubeni-Itochu Steel Inc with the potential to achieve in-country value of over 50%. This includes more than US$100 million in foreign direct investment, over the next five years, to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre, and a training academy in Abu Dhabi to enhance local expertise and generate value for the UAE.

Forthcoming events

Please go to page 18 to see upcoming events in your region

23 23

Asia Pacific news Regional update

In October we are organising our second Connect event this year, this time in Seoul, South Korea. In partnership with the Department for Azman International Trade in Seoul, Nasir we have invited a total of 25 speakers from the nuclear decommissioning, renewables, power and oil and gas sectors. Speakers will include representatives from Korea Energy Agency (KEA), Korea Power Company (KEPCO), Korea Shipbuilding Association (KOSHIPA) and Korea Nuclear Power Association (KNPA). Other speakers from oil and gas and marine EPCs include Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine (DSME), Hyundai E&C, Daelim E&C and Doosan Heavy Industries. We are expecting over 150 attendees from our members in the region and the local energy players from South Korea. For the first time in our series of country-focused Connectâ&#x20AC;&#x2122;s, we will have a specific session on nuclear decommissioning with four speakers from the Korean nuclear industry. It is also the first Connect event in Asia where two-thirds of the speakers are from the power and renewables sectors. In November we are planning two events, namely Brunei Opportunities (venue yet to be decided, but most likely to be held in Bandar Sri Begawan, Brunei) and an event to be co-organised with the Malaysian Oil & Gas Services Council (MOGSC) entitled Opportunities in New Energy. Speakers targeted include Petronas New Energy Division, Equinor of Norway and regional renewable companies. We are also planning a business presentation with another PETRONAS speaker, this time from Group Technical Solutions, who will speak on cost evaluation and engineering solutions in the upstream business. EIC members are encouraged to attend this event in order to meet the relevant people from Petronas. In September, EIC Asia Pacific attended the ASEAN Energy Business Forum 2019 in Bangkok, Thailand. The event provided a unique platform for ASEAN policy makers and global private sector organisations to engage in public-private partnership co-operation discussions and was a great opportunity for EIC members to meet the key energy players in the power and renewables sectors. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

Regional news

K2 Management awarded development of floating offshore wind farm

K2 Management has been appointed by KEPCO Engineering & Construction Company (KEPCO E&C) to deliver the floating offshore wind farm for the developer, the Ulsan consortium. The project capacity, in the pre-feasibility phase is estimated to be 200MW as a testbed and located around 50km from the coast of Ulsan city in the East Sea. Scope of works to be delivered by K2 Management include developing a high-level strategy for operation and maintenance (O&M) of the floating project, including CAPEX and OPEX estimation, consideration of O&M procedure, commercialisation and expansion concepts and the design and technical requirements for wind turbine generator technology and floating foundation types.

Conrad Petroleum receives approval for drilling campaign in Mako discovery

A drilling campaign for a two-well programme to appraise the Mako gas field has been approved for Conrad Petroleum. A jack-up rig, Asian Endeavour-1 owned by China Oilfield Services Limited (COSL) was hired for the workload. The rig is expected to mobilise from Singapore to the first well site in late September 2019. The first well is due to spud in October 2019, with drilling and testing operations expected to last until December 2019. The total cost of the drilling programme is estimated at US$17$19m to the PSC partners on a fully tested basis.

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

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EIC (Energy Industries Council)

North and Central America news Regional update

In August we delivered an insightful training workshop focused on the Mexico upstream sector: Upstream Mexico – understanding the energy environment nine months into the Amand a Duho n AMLO presidency. Open to members and nonmembers, this training included a review of the latest PEMEX business plan with a specific focus on new service contracts (CSIEEs). It is clear opportunities exist in Mexico; however, navigating the market opportunities, business culture and political arena poses many challenges. To ensure we are providing the most valuable and strategic support to our members, we are delighted to announce that we have signed an MoU with the British Chamber of Commerce in Mexico (BritChaM). EIC members now have access to the BritChaM member’s pricing for events in the region, as well as access to business soft-landing services. Along with services such as EICConsult, we are committed to addressing market entry barriers in the region for EIC members. Last month we held our third edition of EIC Connect Oil & Gas USA in Houston. We were honoured to have speakers and one-to-one meeting hosts from Bechtel, Kiewit, LNG Ltd, Marathon, McDermott, MODEC, Scottish Development International (SDI), Siemens, Subsea 7, the UK Department for International Trade (DIT), Wood and Worley. We couldn’t have delivered this event without our sponsors, event and media partners from the Aberdeen Grampian Chamber of Commerce, Brazil-Texas Chamber of Commerce, British-American Business Council of Texas (BABC Texas), Bureau Veritas, Eutex, Honeywell, iPS Powerful People, Pentagon Freight Services, SDI, the UK Department for International Trade (DIT) Mexico, Vulcanic, William Hare and Wood. Global members have the benefit of reserving hot desk and/or conference facilities at the EIC North and Central America office in Houston. We also currently have two person offices available. If you are interested in launching or expanding your business in the region, then you may wish to take advantage of these invaluable LaunchPad services. For further information and to take advantage of this valuable offering contact: lisa.kandala@the-eic.com Amanda Duhon, Regional Director, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...

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Forthcoming events

EICDataStream Overview Fortnightly, EIC Houston

EIC North & Central America Open House Thursday 24 October 2019, Houston

SAVE THE DATE EIC Connect Mexico Energy Forum Thursday 27 February 2020, Reforma, Mexico City

Regional news

VG’s novel approach to Calcasieu Pass LNG

Venture Global has taken FID on its 10mtpa, US$5.8bn Calcasieu Pass LNG export facility along the Calcasieu Ship channel in Cameron Parish, Louisiana. VG is taking a novel approach to the development of the project in terms of financing, project design and strategy. Construction commenced in advance of the full financing, which expedited its development. In contrast to the traditional method of building all components onsite, the largest possible modules will be developed at a fabrication yard in Italy; while the liquefaction facilities are constructed in a completely different location. In terms of contracting strategy, VG took more of an in-house approach to engineering and procurement, with multiple contractors assigned to various components; a stark contract to the lessrisky lump-sum EPC contract. It is a wider strategy of achieving economies of scale. Successful replication of the model could be a turning point for the US LNG industry.

Forthcoming events

Please go to page 18 to see upcoming events in your region

25 25

South America news Regional update We would like to welcome Manuela Moraes, an international relations student, as the new office and events intern. Welcome aboard, Manuela!

Clariss e Roch In August we held a a business presentation with Wood. We would like to thank speakers Ricardo Neto, Modification Manager; Roberto Goncalves, Supply Chain Manager and Eduardo Ribeiro, Supply Chain Co-ordinator for their time.

Forthcoming events

We are pleased to announce that Brazilian operator Enauta will be speaking at our next business presentation. The only private Brazilian company operating in the pre-salt area of the Santos Basin, Enauta is the operator of the Atlanta heavy oil field. Enauta plans to install a permanent production unit at the field, with a tender expected to be launched between late 2019 and early 2020.

Regional news

Presidential elections in Argentina

Argentina’s 2019 presidential elections are scheduled to take place on 27 October. Incumbent President Mauricio Macri will try to secure a second term, beating his opponent Alberto Fernandez – whose running mate is former president Cristina Kirchner. Fernandez’ party won Argentina’s primary elections earlier in August with 47.6% of total votes – a result that is widely regarded as an indication of success in the upcoming presidential elections. A centre-left candidate, Fernandez has vowed to renegotiate Argentina’s financing agreement with the International Monetary Fund (IMF) and reassess the economic policies of the Macri administration. On the other hand, Fernandez is expected to maintain support to the development of Argentina’s Vaca Muerta shale reserves.

Speakers from Wood left to right Roberto Goncalves, Supply Chain Manager; Ricardo Neto, Modification Manager; Eduardo Ribeiro, Supply Chain Co-ordinator

Mr Felipe Barbuto, New Ventures and Portfolio Manager and Mr Vinicius Passos, Procurement Manager, will be in the Rio office on 10 October to present the company, its projects, future perspectives and how EIC members can become a supplier. If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

Tullow Oil announces oil discovery in Guyana

Tullow Oil has announced its first oil discovery offshore Guyana. The Jethro-1 exploration well, located in a water depth of 1,350 metres, found a 55 metre oil column with high-quality sandstone reservoirs following drilling work conducted by the Stena Forth drillship. The well is understood to have exceeded pre-drill resource estimates, previously assessed at 100 million barrels. Jethro is located in the Orinduik licence, which holds the potential to be as prolific as the adjacent Stabroek Block operated by ExxonMobil, where 13 oil discoveries have been made since 2015.

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EIC (Energy Industries Council)

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EIC Survive & Success stories

Volume III

Calash

Successfully moving into new markets and diversifying from offshore to onshore M&A and restructuring consulting How is Calash thriving? Following a successful expansion into the US market, the company has embarked on a diversification process. Encompassing everything from offshore and onshore projects to mergers and acquisitions (M&A) and restructuring. Where Calash stands apart and truly excels, is through its laser focus on the oil and gas markets, employing only senior oilfield experts to provide advice to owners and investors on how to grow, restructure or exit their businesses.

The challenge Back in 2013–14, business was going well for Calash. The oil and gas industry, the backbone of the company’s revenues, was yet to experience the downturn and the M&A market was business as usual. With this in mind, the company underwent an expansion programme and in September 2014, the company moved to new premises in London. Striking while the iron was hot and sensing an opportunity to drive revenue growth, Calash turned its attentions to international markets, specifically the United States. In order to provide the essential link between US oil and gas

players requiring funding and major financial sponsors, the company had to aspire to new heights. New York, the world’s financial mecca, was the place to be if Calash wanted to expand and succeed in the burgeoning US oil and gas market.

The solution And so, Calash incorporated its US entity in July 2016 and shortly after opened offices in New York and then Houston. With access to investors a priority, New York felt like a natural home for Calash. Houston, meanwhile,

Calash draws on its deep knowledge and experience from across the energy and industrials sectors to deliver strategic advice and provide market intelligence that helps bridge the gap between the energy, industrial and financial sectors. Cameron Lynch, President

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provided direct access to the biggest players in the oil and gas market. Presence in the two cities gave Calash a platform to act as a bridge across the Atlantic. The expansion to the US was also an opportunity to follow existing clients and help UK businesses with their own entry strategies and acquisitions in North America. The decision to expand into the US was made just before the oil and gas downturn and despite this being a risky move, Calash saw the opportunity to help distressed investors dealing with the downturn through a combination of restructuring, acquisitions and other strategies. Of course, there were fewer business opportunities, but enough to justify going ahead with the US expansion. The company was also confident that the American onshore market would continue to prosper, primarily due to the expansion of shale oil and gas production. Entering the US was also an opportunity for diversification. Based

Success stories EIC Survive & thrive III

in Aberdeen, Calash was usually associated with the offshore oil and gas market. With that in mind, the company made a conscious push into the growing onshore segment in the US, believing it would help change this perception. The diversification strategy was not just limited to market segments though; in addition to M&A deal makers, Calash also wanted to become known as a restructuring advisor. One of Calash’s key success stories in the US took place in 2018, when the company was contacted by a large public business focused on the aerospace and automotive markets. This company had inherited an energy business through various acquisitions, and Calash immediately advised them to close business lines that effectively had no markets. However, there was a business line which, albeit loss-making, could be sold to other investors. Although the oil price was down when Calash was engaged, its

Story type #diversification, #export

Benefits • 16 new clients since US base was opened

Key findings For industry • Manage your company’s expectations and be as transparent as possible with employees • Create an inclusive culture and communicate openly • Recruiting people with the right blend of industry experience – and deciding where to locate them - is a major challenge when scaling-up

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client successfully managed to sell the business it had inherited. Benefitting from Calash’s expertise, the company earned 150% of what would have been generated if the business line was sold straight away. Calash’s US business is growing fast. Since opening, Calash has secured 16 new clients since it established its American offices, enjoying 35% profit levels in the two years that followed – with a 50% growth expected this year.

in Aberdeen, Calash also has offices in London, New York, Houston and Sydney.

An award-winning energy advisory consultant, Calash offers a range of strategic, business and M&A advisory services to investors and lenders, business owners and corporate finance players, as well as accountancy firms, legal and other specialist advisors. The company prides itself on the fact that its consultants are market experts with practical experience of the demands of the oil and gas sector. Headquartered

Calash’s services include: market education, growth strategy, new market entry strategy, analytics, strategic leadership review and target identification. Business advisory services include a broad range of consultancy support from: market reviews, specialist referencing, benchmarking and commercial turnarounds to specific technical or product assessments or challenging environmental reviews. In the M&A segment, Calash provides expertise across the transaction lifecycle, from target identification to due diligence reviews and onwards to post-merger integration and execution support, among other services.

For government

Calash at a glance:

About Calash

• Capital is a key issue when scalingup, and this is an area where the government should provide support • The government should help potential exporters by opening doors

Key products and services: strategic consultancy and M&A advisory services

Government support?

• Oil and gas – 70% • Others – 30%

The company has not received any government support.

Export lessons • Use the right advisors when preparing to enter international markets • Make sure to carry out due diligence before entering into partnership agreements

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Main industries served:

Headquarters: Aberdeen, UK Year established: 2003 Number of employees: 20 (15 in the UK) Revenue from exports: 30%

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EIC EIC (Energy (Energy Industries Industries Council) Council)

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Cargostore Worldwide Customer focus and a win–win attitude delivering value for the supply chain How is Cargostore thriving? Cargostore provides DNV 2.7-1 certified cargo carrying units (CCUs) and ISO certified shipping containers to the offshore energy, and aid and stability sectors. Supported by a global depot network and an enthusiastic team, the company differentiates itself through deep customer relationships and a focus on service, which enables fast problem-solving of clients’ issues and a reduction of unnecessary logistical delays and costs.

The challenge A few years ago, Cargostore saw an opportunity to enter the offshore wind market. However, the company did not have a proper grasp of the equipment and location requirements for this segment. Meanwhile, a large inventory compromised cash flow; debt increased, while revenues dwindled. Following a big loss in 2015, a new team was brought into the company with bold objectives to pursue: debt had to be refinanced, revenues had to grow, the portfolio

needed rebalancing and Cargostore had to expand internationally.

The solution Reverting losses was essential and in 2015 Cargostore embarked on a strategy to recover its financial health. The company needed to restructure its debt, which led its Managing Director Justin Farrington Smith, who had just joined the company, to work on the task of negotiating the company’s refinancing. Additionally, Cargostore sold off non-core assets, rebalancing the company’s portfolio. The strategy also involved a repositioning in the market. Cargostore focused on the rental segment rather than sales in an attempt to protect long-term revenues with existing clients. In addition, the company proceeded to cease working with most of its agents to ensure they were more engaged with customers. Cargostore reinvested shareholder funds in order to acquire equipment with better

Cargostore builds strong relationships with its customers whereby we are valued as a trusted partner in the supply chain. The Cargostore team becomes fully involved in operational discussions and this collaborative approach enables us to deliver the most cost effective and timely solutions to meet customer and project objectives. Managing Director, Justin Farrington Smith

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specifications that would meet clients’ requirements more effectively. To increase efficiency and help clients reduce the logistics burden, Cargostore opened depots in locations close to the end destinations of clients’ cargo. Following the implementation of its strategy, Cargostore was ready to take on new challenges. In 2018 the company received a request for quotation from a contractor working on the Johan Sverdrup project in Norway. The contractor was looking for 70 refrigerated containers to transport bonding material for a pipelaying contract. The problem, however, was that nobody had such a large quantity of refrigerated containers. Cargostore had to deliver, and smart problem-solving was key to obtaining the contract. After securing a meeting with the client’s procurement manager, the company proposed an alternative arrangement: the 70 refrigerated containers would be delivered, but over a four-month window. Cargostore already had 30 units, and the extra 40 would be manufactured to Cargostore’s bespoke criteria. The schedule would be longer, but the client would benefit from standardised equipment and a single supplier interface. The client considered its choices and decided to award the purchase order to Cargostore. With a contract in place, the company proceeded to build the additional refrigerated containers and shipped all 70 units from the Netherlands to Norway successfully. Cargostore’s best-in-class service mentality earned the company two follow-up projects

Success stories EIC Survive & thrive III

as a result, again offering the customer greater efficiency and cost savings.

a seamless and fast service with the flexibility to meet any client requirement.

Cargostore’s strategy is defined by its success. Since its implementation, the company has returned to profit, making better margins each year. Now it is a major supplier to the offshore wind industry thanks to investment in client focused specifications and strategic depot locations. Equipment utilisation has improved and Cargostore’s commitment to customer service has been recognised by an independent customer survey.

Cargostore’s Offshore Division provides a complete range of CCUs to service the oil, gas and offshore renewables industries, project movers and offshore supply companies. All equipment is designed, built and certified to DNV 2.7-1 standard. Cargostore has invested in a wide range of regular and specialist products which are available via their location network in the US Gulf, the North Sea, the Arabian Gulf, Middle East and East Africa.

About Cargostore Cargostore Worldwide is one of the world’s leading suppliers of ISO shipping containers and DNV 2.7-1 certified CCUs for on and offshore projects. With offices in London, Abu Dhabi, Holland and depots across the globe they provide

Story type #optimisation, #service/solutions

Benefits • Cost savings for clients • Additional orders from existing customers

Key findings

Its Intermodal Division supplies ISO certified storage and shipping containers for hire or sale and can offer bespoke container conversions and specialised equipment. The company supplies projects in mining, defence, aid, community development, large

• DIT should be able to provide better country specific information itself rather than just referring to local service providers

Government support? Apart from the Apprenticeship Levy (which the company does not plan to use again), Cargostore has not received any type of government support.

Export lessons

• • • •

• Precautionary measures in anticipation of Brexit are essential • Know your market – do not start expanding based on a good idea • Check if your products are certified in target markets • Companies must have T&Cs agreed with end-users and/or rental companies • Make sure your company is an approved vendor with target clients • Learn as much as you can about tax and legal aspects in target countries

For government • Provide funding toward staff training and recruitment • The current Apprenticeship Levy framework must be reviewed

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Cargostore has offices globally with staff that collectively speak over 13 languages enabling it to provide the very best in customer service for clients worldwide. With constant availability, faster delivery, 24/7 telephone answering and local representatives the Cargostore motto of ‘global reach, local touch’ is the company’s way of making buying, renting and modifying ISO shipping containers and DNV 2.7-1 certified offshore CCUs a quick and simple process.

Scaling-up lessons • Getting the right staff is a major challenge, especially in a small business or if they are working remotely • Make sure your company is in a good financial condition • A scale-up process should be supported by good products and services

Cargostore at a glance:

For industry Always deliver what you promise Tenacity is key when doing business Know your limitations Be honest when something goes wrong • Empower all team members to respond to customers immediately

scale sporting events, general logistics and B2C.

Key products and services: provider of ISO shipping containers and DNV 2.7-1certified CCUs Main industries served: • Oil and gas • Wind • Stability and aid • Others Headquarters: Wimbledon, UK Year established: 1993 Number of employees: 26 Revenue: £10m Revenue from exports: 90%

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Comeca Capturing key aftermarket opportunities while diversifying from OEM into third-party equipment servicing How is Comeca thriving? Comeca’s UK start-up is growing quickly with a successful strategy to capture the aftermarket of legacy equipment, while building on strong client relationships to diversify into third-party equipment service and bespoke project engineered solutions.

The challenge Although the Comeca Group was founded in 1974, the company’s experience in the energy distribution and management segment spans more than 50 years. Successive acquisitions of world-leading brands over the years (e.g. Alstom T&D LVE, Areva T&D, GEC Alsthom, Hazemayer) gave Comeca a large installed base of legacy equipment present in facilities in the most varied sectors across the world. Back in 2014, the company was keen on tapping into the potential of its legacy equipment in the UK. The UK market was supported by the company’s operations in France back then, but Comeca saw that it was losing market share to competitors across the Channel.

The solution In October 2014, Graham Reynolds,

an industry veteran with 30 years of business experience, was asked to open a Comeca UK subsidiary. Although supported financially by its parent company, the UK unit had to win orders from scratch. Initially a twoman operation working 18 hours a day, Comeca UK started sending flyers to end-users to let them know that a local subsidiary was up and running. As happens with most start-ups, Comeca UK experienced some obstacles at first. Some competitors tried to convince customers not to consider the new entrant on the grounds that Comeca UK was too small and could not be trusted. However, these concerns were quashed by Comeca’s comprehensive

Comeca is experiencing real growth in the UK market by providing bespoke high specification electrical equipment and solutions, products, aftersales services and support on new projects while supporting its existing installed base. Graham Reynolds, Managing Director

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technical understanding of its legacy equipment and installed base, made possible through original intellectual property documents and drawings. After an initial business development effort, Comeca UK quickly started to receive enquiries and win new business. The company earned a life extension contract with Shell for the retrofit of old GEC Alstom low-voltage switchgears with modern Comeca products. Shell’s choice of Comeca avoided a complete equipment replacement, which would have cost millions. Another opportunity came with INEOS, for whom Comeca delivered a containerised substation at the operator’s Grangemouth site under a £2.1m EPC contract. Comeca also wanted to diversify beyond the OEM segment into thirdparty support services; an opportunity to do so was provided by a contract with Valero. The company’s Pembroke refinery featured Martelli switchboards from the 1970s, for which there was no OEM support available in the UK. Comeca UK received a request for quotation and eventually won a £200,000 contract following an open tender process. This was the

Success stories EIC Survive & thrive III

company’s first major opportunity to work as a service provider for equipment manufactured by other firms. Comeca not only succeeded in recapturing its UK market but also expanded its business offering. Using its broad expertise as a foundation, the company was able to diversify from a purely OEM role to a service provider for third-party equipment. Revenues have grown from zero to £6m in four years, and the company already has a 2% market share in the UK. Comeca UK now has a new bold target: achieve revenues of £15£20m in the next three years, using its manufacturing capabilities, services and third-party support as pillars for growth.

for the new nuclear power station at Hinkley Point C where its best in class low voltage equipment has been chosen by EDF. Comeca UK will play a major role in the project management, installation and commissioning and aftersales services for this new facility, due to come online in 2025.

About Comeca

Comeca is very active in the energy sector, with products and project management offering across segments such as oil and gas, petrochemicals, power generation, nuclear, energy storage and general process industry sites.

In addition to this success Comeca Group were chosen as a Tier 1 supplier

Comeca is a specialist in energy distribution and management, as well as associated services. The company’s portfolio includes manufacturing of bespoke high specification electrical equipment including low and medium voltage switchboards, automation, monitoring, system integration, control and command, power electronics, energy conversion, cabling solutions, electrical solutions for HVAC systems, system integration, commercial vehicle charging systems and related services.

Story type

Government support?

Comeca at a glance:

#diversification, #optimisation, #service/solutions

The company has not received any type of government support.

Key products and services: energy distribution and management solutions

Benefits

Scaling-up lessons

Main industries served (Comeca UK):

• Revenue growth from 0 to £6m in 4 years • Market share of 2% since start-up

• Getting the right people into the right roles is a major challenge during a scale-up process • Scaling-up requires a good, central location to access all clients and skilled employees

Key findings For industry • Understand your customers’ expectation by listening and working with them. Do not sell them something they do not want

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Headquartered in southern France, the Comeca Group is active across the world and has in excess of 1,250 employees, with subsidiaries in Algeria, Australia, France, Indonesia, Korea, Malaysia, Morocco, Spain, the UAE and the UK. The company has 23 production units worldwide, and its products are marketed in over 130 countries.

• Oil and gas (downstream) – 70% • Nuclear – 15% • Industrial – 10% Headquarters: Saint-Mathieu-deTréviers, France (group); Stoke-onTrent, UK (Comeca UK) Year established: 1974 (group); 2014 (Comeca UK) Number of employees: 1,250 (group); 11 (Comeca UK) Revenue: £150m (group); £6m (Comeca UK) Revenue from exports: 5% (Comeca UK)

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EIC EIC (Energy (Energy Industries Industries Council) Council)

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Crondall Energy Thriving by developing innovative O&G technologies How is Crondall Energy thriving? Benefitting from a loyal and experienced team of specialist consultants working across the oil and gas industry, the company has focused on developing exciting and transformative technologies that is working for major players in the offshore oil and gas field.

The challenge Differentiation is key for most businesses, and for Crondall Energy it was no different. The company believed that good consultancies should be specialists and not generalists, leading them to offer the kind of technical edge that makes them recognisable as the best company in a particular segment. Before the oil and gas market crashed, Crondall Energy provided both an integrated design capability and technical consultancy. Opportunities were booming and the market generally favoured companies providing a range of integrated services. As the market entered the crisis, fewer projects were being sanctioned and revenues were falling. Differentiation was essential if the company wanted to thrive.

The solution In 2016, Crondall Energyâ&#x20AC;&#x2122;s directors made the decision to focus on technology as a response to market conditions. It was not really a crisis, but rather a change of emphasis motivated by much lower demand for conventional consulting services. Crondall Energy already had an innate technological approach and, benefitting from its exceptional pool of engineers (who have worked together for more than two decades), the company got

Our technology strategy has two parts. Firstly, it keeps us abreast of the latest developments which we use to support our clients. Secondly, it allows us to focus on new technologies with the aim of achieving simplification of facilities and cost savings. Stephen Booth, Managing Director

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back to the basics, focusing on its core technical skills of pipeline and subsea engineering. After deciding on its strategy, Crondall Energy immediately set to work. The company set up a technology steering group, which identified four areas of potential interest to oil and gas players: high pressure and high temperature (HPHT), deepwater, cost reduction and small pools (i.e. marginal accumulations of oil and gas). Lots of brainstorming ensued, followed by narrowing down topics based on three criteria: influence, resources and expertise. Which areas could be influenced by the company? Could the company resource a small team to advance the project? Is it an area in which the company can offer its expertise? A list of ideas emerged, among them that of internal coatings. Supported by the Oil & Gas Technology Centre (OGTC) and the Oil & Gas Innovation

Success stories EIC Survive & thrive III

Centre (OGIC), Crondall Energy is leading an investigation into how modern coatings can be used to improve flow assurance in upstream pipeline systems. Instead of using heat or chemicals, modern internal coatings can minimise the risk of wax blockage – and massively reduce costs – by preventing the wax from sticking to the pipe’s internal surface. The study is still at early stages and is being conducted within the Institute of Chemical Sciences and the Institute of Petroleum Engineering at the HeriotWatt University.

in challenging environments where pipeline buckling is common. Working for a major oil and gas player, the more innovative pipeline design developed by Crondall Energy resulted in more than £10m saving according to the operator.

Another area Crondall Energy is working on is the pipeline design for HPHT environments. Specifically, the company has developed software which, based on reliability analysis, can be used to design or verify pipeline designs

This focus on technology has not only helped Crondall Energy to prosper in a difficult market, but also make a great contribution towards greater efficiency and cost savings in the oil and gas industry.

Story type

For government

#innovation, #technology

Benefits • New technologies offering potentially huge industry benefits • Savings as a result of efficient pipeline design

Key findings

Crondall Energy is also working in other areas. They are actively supporting the OGTC Tie-back of the Future initiative in a number of areas, with the aim of reducing the time and cost of subsea tie-backs by 50% , allowing more marginal fields to be developed profitably.

• The government should support diversification towards the offshore renewables segment • Energy policy U-turns, such as the cancellation of carbon capture and storage projects, must be avoided • Additional funds should be made available to support technology. There are many opportunities and the UK should be able to scale them up faster than other countries

For industry • Focus is needed when developing technology. Companies should avoid the temptation to keep ‘changing horses’, as it will take years to consolidate solutions and commercialise them fully • Choosing the right people with the right skills is essential in any business, even more so in technology • Carefully choose your target export market. Do not spread yourself too thin

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Government support?

About Crondall Energy Crondall Energy is a leading independent provider of commercial, strategic and technical consulting services for oil and gas projects using floating production and subsea technologies. The company works with a range of project stakeholders, including oil and gas companies, investors and law firms. Founded in Crondall, Hampshire, in 2001, the company today is present in London, Winchester, Aberdeen and Newcastle, in addition to international offices in Houston, Singapore and Stavanger.

Crondall Energy at a glance: Key products and services: commercial, strategic and technical consulting services Main industries served: Oil and gas – 100% Headquarters: Aberdeen, UK Year established: 2001 Number of employees: 50 Revenue: £5.5m Revenue from exports: 60%

Crondall Energy is account managed by Scottish Enterprise, which has helped by providing travel support, access to graduates and website design. In addition, the company has received grants from the OGTC and the OGIC for technology projects. Crondall Energy has also benefitted from R&D tax credits.

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Emerson Driving innovation through smart internal collaboration How is Emerson thriving? Looking inwards for inspiration, Emerson reinforced its values of innovation and collaboration by enabling employees to submit ideas through a digital portal. The platform’s responsiveness and visibility allowed staff to see opportunities in a fresh light. With these new insights the company accelerated its continued improvement initiatives and drove growth and cost savings across many areas of the business.

The challenge A few years ago, before the industry downturn, Emerson had a strong focus on the oil and gas market. This segment represented more than 60% of the company’s revenues in the UK, of which a significant portion was associated with the upstream segment. The company recognised the need to diversify and balance its portfolio, and in subsequent years successfully entered markets such as life sciences and power. This move proved to be timely, as three years later the collapse in oil prices would lead to a global impact on the oil and gas market. The decision to diversify showed

good insight from Emerson’s UK management team, but the company knew that there was a great amount of untapped insight across the wider organisation. Business was slow during the downturn and the company needed new ideas. How could Emerson create more demand and value in a stagnant business environment? What additional insights could be identified?

Our customers look to Emerson to help them solve their toughest challenges. Across the organisation we see an opportunity to anticipate, act and accelerate innovations that will lead to a more prosperous future. We are here to help our customers unlock new possibilities. Stuart Brown, VP UK and Ireland

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The solution In August 2018, following a strategic leadership meeting, Emerson’s European unit decided it would innovate through internal collaboration. The company realised that it had a solid business culture and wanted to make the most of this important asset. Rather than look outside and up, the company would look inside, across the organisation in the search of knowledge, insights and ideas to improve business processes and create value. This exercise led to the creation of an internal platform in which employees could submit their ideas. Suggestions were highlighted to line managers, who would implement or escalate the idea if it needed additional discussion or investment. Ideas were seen by everybody, and line managers would

Success stories EIC Survive & thrive III

be able to identify the most popular ones through the number of ‘likes’, similar to content in social media. All ideas were acknowledged, with the best ones given priority. Feedback was always provided, even if ideas could not be implemented.

the company to have a broader perspective of the market. By developing an innovative digital platform to aggregate and act upon ideas from all employees, the company was able to create value and drive demand in a time of stagnant business opportunities. More importantly, the initiative motivated and inspired staff, whose ideas accelerated businesses processes and application innovation, maximising returns.

Emerson’s smart initiative enabled

Emerson’s Automation Solutions segment offers a broad array of products, integrated solutions,

software and services which enable clients to maximise production, protect personnel and the environment, reduce project costs, and optimise their energy efficiency and operating costs. Significant markets served include oil and gas, refining, chemicals and power generation, as well as pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining and municipal water supplies. The segment’s major product and service offerings include measurement and analytical instrumentation products; valves, actuators and regulators; solenoid and pneumatics products; control and safety systems and electrical components, in addition to services such as asset management and operations and business management.

Story type

For government

Emerson at a glance:

Emerson’s innovative platform proved to be a resounding success. After six months, more than 1,200 ideas had been submitted by the company’s employees in Europe. Emerson was able to collect a lot of low-hanging fruit in the process, identifying ideas which drove innovation, led to material cost savings and improved overall performance. On time delivery continued to increase, while win-rates in its maintenance, repair and operating business increased significantly on prior year. All in all, process improvements led to significant revenue growth as Emerson sped up its orders, improved execution and adopted a smarter approach to tenders, removing duplicate processes and waste.

#collaboration, #digital, #innovation, #optimisation

Benefits • Additional revenues due to optimised processes

Key findings

About Emerson Emerson is a global technology and engineering player that provides innovative solutions for a wide range of applications in the industrial, commercial and consumer markets around the world. Following a recent portfolio reorganisation, the company’s main businesses are divided into the Automation Solutions and Commercial & Residential Solutions segments.

• Clarity is needed around Brexit. Delayed decisions prevent the supply chain from adequately structuring their plans

Main industries served:

Government support? The company has benefited from R&D tax credits in the past.

For industry

Culture change lessons

• Seek growth opportunities outside the organisation, but do not overlook untapped potential that resides within • Recognise that all employees have valuable insights that often get overlooked or are not encouraged

• Line managers must be openminded and welcome ideas from staff

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Key products and services: technology and service provider to the process automation industry

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• • • •

Oil and gas – 50% Petrochemicals – 25% Life sciences – 20% Others – 5%

Headquarters: Leicester, UK (Emerson UK); St. Louis, US (group) Year established: 1890 Number of employees: 1,800 (Emerson UK), 87,500 (group) Revenue: US$310m (Emerson UK); US$17.5bn (group) Revenue from exports: 36% (Emerson UK)

@TheEICEnergy @TheEICEnergy

EIC EIC (Energy (Energy Industries Industries Council) Council)

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EIC

NATIONAL DINNER 2019

3 OCTOBER

The venue 8 Northumberland Avenue is one of central London’s hidden gems. It was originally the residence for the Percy family in the 1600s and has been immaculately restored, boasting high ceilings, impressive chandeliers, and ornate detailing. Accommodation is also available at the Club Quarters Hotel at 8 Northumberland Avenue.

THE MOST EXCLUSIVE EVENT IN THE UK ENERGY I N D U S T R Y ’ S S U P P LY CHAIN CALENDAR Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.

Your guest speaker Dara Ó Briain will host the 2019 EIC Awards Ceremony. Dara is a celebrated stand-up comedian and host of well known TV shows including Mock the Week and Have I Got News For You. In addition to comedy, Dara has a love of all things science, co-hosting Stargazing with Professor Brian Cox.

Take advantage of this exclusive platform to host and entertain your own VIP guests at an unforgettable evening.

Awards ceremony

Most of the major Tier 1 and Tier 2 EPC contractors, OEMs, operators and developers are represented within the audience, making this a unique opportunity to promote your brand. Please contact:

The EIC Awards Ceremony will recognise individuals and companies which offer a product or service with a positive and significant effect on the UK energy supply chain.

Jamie Lowes, EIC Sales Executive +44 (0)1429 874 453 jamie.lowes@the-eic.com

T: +44 (0)1429 874 451 E: nationalevents@the-eic.com www.the-eic.com/nationaldinner

Sponsorship opportunities

ENERGY EXPORTS CONFERENCE TECA at P&J Live Aberdeen / 17-18 JUNE

2020

Access $150bn of global opportunities

2019 speakers included:

The Energy Exports Conference provides a unique opportunity for companies like yours to:

Choose from two conference programmes

• Meet global operators, developers & EPC contractors face to face

Global Opportunities Conference

• Meet 20 inward delegations • Learn about new markets for your products and services • Receive advice, tools & funding to further your exporting goals • Discover profitable new export opportunities • Gain key information to develop your winning bid strategy

• Over $150bn worth of project opportunities presented • For companies already exporting & looking for new global opportunities Growing Export & Trade Conference • Regional market focus sessions covering all energy • Introductions to experts and agencies

• Raise your profile in the industry

Attend Choose your conference programme – Global Opportunities or Growing Export & Trade. Exhibit Showcase your products/services and be seen by global operators, developers & EPC contractors. Sponsor Use this opportunity to put your brand in prime position to high profile attendees. Various options and price points available.

Organising partners:

Contact Sarah Gilley, Head of Sales & Strategy Tel +44 (0)7595 082 162 sarah.gilley@the-eic.com | www.exportsconference.energy

DUBAI KUALA LUMPUR RIO DE JANEIRO

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

EIC Northern Region

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

EIC Scotland

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

www.the-eic.com

EIC Middle East

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

EIC Asia Pacific

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

@TheEICEnergy

EIC North and Central America

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

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

EIC (Energy Industries Council)