Inside Energy September 2016 by Energy Industries Council

Inside © Siemens plc, 1996 – 2016

Monthly news for EIC members

One-to-one

Sector analysis We focus on Africa’s largest non-OPEC oil producing country, Egypt

September 2016

This month’s interviewee is Chris Ryan, Sales Director at Amarinth

Global project updates and tips on making

EICDataStream’s key features work for you

www.the-eic.com

Sector analysis Egypt looks to foreign investment to meet its rising energy demand Power generation in Egypt is expected to grow by more than 4% over the next decade. This is underpinned by a relatively stable political environment that has emerged in the last year, spurring a renewed impetus for delivering the infrastructure that the country needs to achieve this growth. March 2015 was seen as a watershed moment for the Egyptian government’s medium-term economic development. It used its Economic Development Conference to deliver a statement of intent aimed to attract a combination of international developers, financiers and government related entities to invest in the country. Companies present at the event included Siemens, British Petroleum, General Electric, the African Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the International Finance Corporation, Citigroup, the China Investment Corporation and Russian Direct Investment Fund. The conference proved to be an excellent forum in which to do business with lots of high level deals being done, most notable of which was Siemens’ commitment to invest US$10bn in the country’s conventional power and renewable capacity. Together with local Egyptian partners Elsewedy Electric and Orascom Construction, Siemens has been contracted to supply three natural gas-fired combined cycle power plants on a turnkey basis, each with a capacity of 4.8GW providing a total combined capacity of 14.4GW. The three power plants: Beni Suef south of Cairo, Burullus on the northern tip of the Nile Delta and New Capital to the northeast of Cairo, will add power to the grid in stages with an initial 4.4GW planned to go online before Q3 2017. As part of the same deal, Siemens will also deliver up to 12 wind farms in the Gulf of Suez and West Nile areas, comprising of approximately 600 wind turbines and an installed capacity of 2GW. The company is preparing to sign the final contracts for the first 180MW wind farm which will take approximately two years to build following financial close.

Sarah

Lister

With a rapidly growing population (already the third largest in Africa) and ambitious plans to increase its industrial sector the government has identified fast track projects as a means of meeting the country’s ever increasing energy demand. To feed its rising power consumption as well as diversify its energy resources Egypt is also planning to build its first coal-fired power station. EICDataStream has been tracking four new proposed coal-fired power plant projects since the start of 2016. The expected start-up dates for these are between 2020 and 2022. Most recently a joint venture of GE and Harbin Electric submitted a proposal to Egypt Electricity Holding Company to develop a 6.4GW coal-fired power plant comprising six units with China providing the financial backing for the project. In May an Elsewedy Electric and Marubeni Corporation consortium signed a memorandum of understanding with the government of Egypt to build a new coal-fired power plant in West Matrouh on an EPC and finance basis. The coal-fired power plant will be built in two phases, each with a capacity of approximately 2GW using ultra-super critical clean coal technology from Japan. The planned installed capacity for power generation in Egypt by 2030 is: natural gas and dual fuel oil 49%, coal 15%, wind 10%, photovoltaic solar 10%, concentrated solar power 6%, nuclear 4%, hydro 3%, simple cycle 3%. If these proposed targets are achieved, it would represent a significant depletion in the use of natural gas and dual fuel oil for power generation, with gas and oil currently contributing 70% of fuel for power generation in Egypt. It would also make coal the second largest single fuel for power generation after gas and natural fuel oil plants. Over the last few months the Egyptian power market has made significant progress and generated momentum. The next year is going to be even more important as projects move from the planning and announcement stage to delivery. Sarah Lister, Sector Analyst (Power & CCS) sarah.lister@the-eic.com

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Inside this issue...

In this month’s issue we take a closer look at energy in Egypt. It’s widely known that Egypt is Africa’s largest non-OPEC oil producer and is rich in hydrocarbon resources. But perhaps more surprising is the fact that the country has its own rapidly growing energy demand and is active in the power generation sector, which is expected to grow by more than 4% over the next decade. Our sector analysis page (opposite) examines this in more detail. If exporting to Egypt appeals to you but you could benefit from practical guidance on both the market and business opportunities there, our export showcase in Aberdeen on 8 September will do just that. Places are limited so to book your ticket please visit www.the-eic.com/EventDetail.aspx?dateid=1527 Further ahead and further afield, the first ever Egypt Petroleum Show (EGYPS 2017) will take place in Cairo next year on 14 February. For member companies serious about exploring Egypt as a potential new market, EGYPS 2017 will provide an excellent platform to interact with the country’s key operators, forge local partnerships and learn about doing business in the country. The EIC will also be hosting a UK pavilion there so if you’d like to take a stand or find out more about attending, please turn to page 15. In response to your ongoing feedback to improve our newly revamped monthly newsletter, we’re now including a regular section on EICDataStream. Every month we’ll highlight a range of global projects and draw your attention to project updates which could lead to new business. We’ll also include an EICDataStream feature section which will briefly explain how to use different database functions. This month we cover project watches. With over 8,000 projects being tracked on EICDataStream, project watches allow you to effortlessly keep track of the ones you’re interested in and get instant updates that you can share with colleagues. Please see page 5 for more details. Of course, we’re always on-hand to answer any questions you might have about any of our products and services – so please don’t hesitate to get in touch at membership@the-eic.com Edward White Editor and Communications Manager edward.white@the-eic.com

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Contents Sector analysis

Inside this issue...

One-to-one 4 EICDataStream 5 New members

Member news

Social media round up 11 Forthcoming events

UK events

Overseas events

EIC training

Middle East news

Asia Pacific news

North America news

South America news

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One-to-one with Chris Ryan Sales Director at Amarinth

Amarinth is a leading manufacturer of pumps for general industrial, chemical and petrochemical applications. Inside Energy caught up with Chris to find out about the company’s highlights from 2016, how to work with major operators and the key to successful collaboration.

What has been your company’s biggest success of 2016 so far?

I’ve taken great personal satisfaction in bringing online our presence in Asia Pacific and opening the Amarinth office in the centre of Kuala Lumpur. We’ve appointed a dynamic local sales manager who trained at our UK office for six months before opening the office in our new territory. In a challenging industry globally it’s exciting to be able to grow and develop your business when so many others are retracting. I’m excited to be able to focus on growth and development in the current climate.

What plans does Amarinth have in place for the next year?

During the next 12 to 18 months we, as a company, remain focused on continuing to develop our direct product and service proposition which has been the backbone of the company for over a decade. We have plans to further expand our Pump Servicing division as well as continue to expand our product range within the API610 121th edition product offering. In my experience when customers turn to companies like Amarinth they demand assurances of quality and experience and these can be enhanced further when you are able to provide even more in the way of product offering. It’s within ours and the customers’ interest to deliver this.

Amarinth has worked with many major operators around the world such as Abu Dhabi Marine Operating Company or PETRONAS in Malaysia. What advice would you give other members on how to engage with such big companies?

Understand your proposition inside out and align this with the needs of the customer. Your product, service or proposition has to align with that of your customer and this requires investing time in building sustainable relationships which are built around trust and delivering to agreement. Don’t underestimate the effort or time required to achieve this.

In the current economic climate joint ventures and partnerships seem to be becoming more common. You’ve worked successfully with lots of companies, including other EIC member companies, on major projects. What do you think is the key to successful collaboration?

Collaborative ventures have obvious benefits to the parties concerned when executed effectively, but like most aspects of successful business they require careful planning and clearly defined expectations and deliverables on both sides. Agreeing engagement protocols and ruthlessly working to deliverables is, in my

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experience, the only way such ventures result in all parties being equally successful or rewarded. This again takes experience and planning and should be approached from the top with full buy-in and clear expectations. Don’t’ be afraid to seek support where required. Q

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

Within Amarinth’s Engineering and Hydraulic Design teams there are over 225 years of experience between 9 key people, with an average of over 25 years per person in pump design and innovation. Needless to say, this retained skill and experience in the company has become an attractive element of the Amarinth proposition and something our customers continue to trust and request. It’s enabled us to remain at the forefront of complex and troublesome engineering challenges where our customers seek collaborative and experienced engineering and manufacturing expertise. As the sales director, I recognise the importance of having this support and experience in the UK office.

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

Global opportunities KUWAIT

CENTRAL NORTH SEA, UK

GULF OF MEXICO, US

Gathering Centre (GC) 32

Brae area decommissioning

Big Dog – Mad Dog South oil and gas field

Operator: Kuwait Oil Company Value: US$2bn The tender for the EPC contract is currently open for bidding, with bids due to be submitted by 1 November. Eight contractors have been invited to submit bids for the contract. Amec Foster Wheeler conducted the FEED work.

Operator: Marathon Oil Value: US$1bn Marathon has submitted a first draft of its decommissioning programme for Brae. It is now waiting for feedback and a second draft is expected in October 2016. The Brae area includes three platforms supported on steel jackets with modular topsides.

Operator: BP Value: US$9bn The cost is expected to be less than US$9bn, down from US$14bn. Costs have been lowered due to renegotiations of contracts and low steel prices reducing the cost of equipment. Bids for the hull and topside EPCs are currently being evaluated.

For more information on these and the 8,000 other current and future projects we are tracking please visit EICDataStream

SOMERSET, UK

Hinkley Point C Operator: EDF and China General Nuclear Power Corporation Value: £18bn A final investment decision to build a new nuclear power plant has been taken. Main work packages for the 3.2GW project have already been awarded. Supply chain partners to the project will now begin the process of selecting sub-contractors to work with them.

KEBBI STATE, NIGERIA

THE NETHERLANDS

Birnin solar power project

Borssele I and II offshore wind farm

Operator: Nigus Greenergy and Volt Renewables Value: US$165m The Nigerian government has signed a MoU with Nigus Greenergy and Volt Renewables for the development of this 100MW project. International investors and local partnerships are being sought to support the development.

Operator: Dong Energy Value: US$2.7bn After competing with 38 other bidders Dong Energy won the right to develop this 700MW project. Tennet will hold responsibility for the construction, operation and ownership of the projects’ substations and export cables. Much of the construction will be carried out from the port of Vlissingen.

How tracking projects in real time can help your business • There are currently over 8,000

projects across all sectors in EICDataStream, so how do you easily find the ones you can get involved in? What’s the best way to keep up to date with their progress? When is the right time to approach contractors?

• Knowing how to set up and manage

your project watches is vital. EICDataStream lets you do this in two ways. (A) you can tag certain projects and get notified by email when they’re updated. (B) you can save your search criteria and get notified by email when projects are added or archived.

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O N LY 20 PL AC E S

LE FT

New EIC members NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Geodis Wilson

LoneStar Fasteners Europe

SKF (UK) Limited

145 Faggs Road Feltham Middlesex TW14 0LZ The Nominated Representative is Mr Harald Kolp, Vice President. Telephone +44 (0)20 8831 4200 Email harald.kolp@geodis.com Web www.geodis.com Geodis is a supply chain operator ranking among the top companies in its field in Europe and the world. Geodis, which is part of SNCF Logistics, which in turn is a business line of the SNCF Group, is the number one transport and logistics operator in France and ranked number four in Europe. The international reach includes a direct presence in 67 countries and a global network spanning over 120 countries. With its five lines of business (supply chain optimisation, freight forward, contract logistics, distribution and express and road transport), Geodis manages its customers supply chain by providing end-to-end solutions enabled by over 39,500 employees, its infrastructure, its processes and systems. In 2015, Geodis recorded â&#x201A;Ź8 billion in revenue.

Universal Point Steelmans Road Wednesbury West Midlands WS10 9UZ The Nominated Representative is Mr Mark Jennings, European Sales and Marketing Director. Telephone +44 (0)121 435 0009 Email mark.jennings@lsfe.com Web www.lsfe.com LoneStar Fasteners Europe is a leading manufacturer and distributor of standard, special and exotic fasteners and gaskets. Formed through the alignment of PRD Fasteners, Eurofast Petrochemical Supplies and Triplefast International, LoneStar Fasteners Europe services the combined customer base across Europe as one company from two world class facilities in the West Midlands, UK. With an extensive stock inventory of over ÂŁ7.5m, LSFE is able to provide a wide range of fully certified raw material, finished and semi finished products to industry standards or specific to their drawings and requirements on short lead times at competitive prices.

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Sundon Park Road Luton Bedfordshire LU3 3BL The Nominated Representative is Mr David Floyd, General Manager. Telephone +44 (0)1582 490 049 Email david.floyd@skf.com Web www.skf.co.uk SKF has proven technologies, local and global application knowledge to support the energy sector, whether electric power generation, renewables or oil and gas. The synergy of its core competencies in bearings, seals, lubrication systems, mechatronics and services helps improve efficiency and reliability. Utilising more than 100 years of engineering knowledge and application experience from all energy sectors, SKF can help equipment manufacturers and producers overcome the challenges of energy production such as: increase production, optimise maintenance, extend service life, improve safety and reduce operating costs.

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Member news Advanced Industrial Solutions and RectrixAS join forces to provide drone services Leading manufacturer and industrial trainer, Advanced Industrial Solutions has formed a strategic partnership with drone provider, RectrixAS, to bring a range of specialist services including visual surveys, thermal inspections and risk assessments using an unmanned aerial vehicle (UAV) - or drone – to the oil and gas, wind and construction industries

These can be used in inaccessible places such as oil platforms or offshore wind turbines where it can be difficult, or costly, for engineers to safely reach. This will create one of the widest range of access and inspection services available on the market. For Advanced Industrial Solutions the addition of drone inspections to its existing service portfolio, which includes rope access, will almost entirely rule out the need for expensive and risky scaffolding in the energy industry. Mark Patterson from Advanced Industrial Solutions said, ‘Some of the locations we work in can be hugely difficult to inspect and survey using conventional methods.

The benefits of using drones for these operations are extensive. You can significantly cut costs on using scaffolding and it’s much quicker and of course much safer.’ Stockton-based RectrixAS was founded by fully qualified drone pilots Chris Young and Alex Westwood and has Civil Aviation Authority permission to fly. It is successfully building its business with a number of new contract wins in the oil and gas, wind and construction sectors. RectrixAS’ Chris Young said, ‘We approached Advanced Industrial Solutions with the idea of a partnership after recognising the potential to work together. Our services complement each other perfectly. We provide the expertise in terms of sophisticated kit and piloting the drones and Advanced Industrial Solutions brings the technical and engineering know-how and global customer-base.’

For more information: www.aisgroup.co.uk

Alderley FZE delivers KSA additive injection packages

Alderley FZE, a subsidiary of Alderley Plc, has successfully delivered five additive injection packages which form part of Saudi Arabia’s Nationwide Diesel Fuel Marking programme. The packages were installed at the Ras Tanura refinery, the Jeddah refinery, the Rabigh bulk plant and the Jizan bulk plant, where Alderley has completed the commissioning and will now do regular maintenance. The scope of work included design, engineering, procurement, fabrication, assembly and testing.

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Each of the packages followed a modular construction design which ensured efficient site installation. The packages were engineered, designed and manufactured at Alderley’s Dubai facilities with support from its local Saudi facility in Dammam. Alderley FZE is part of the Alderley Group and is the firm’s largest operating company overseas. Alderley FZE specialises in the engineering, supply, operation and maintenance support services of bespoke metering and control systems to the oil and gas industry.

For more information: www.alderley.com

Amarinth awarded pump package order for ADMAOPCO offshore platform

Amarinth, a leading company specialising in the design, application and manufacture of centrifugal pumps, has secured an order for bespoke utility and fresh water pumps from Hyundai Heavy Industries for the platform being built for Abu Dhabi Marine Operating Company (ADMAOPCO) to operate in the Nasr oil field, offshore of Abu Dhabi.

Member news

Amarinth has successfully delivered numerous pump packages to ADMA-OPCO in the Middle East and has a sound understanding of the stringent requirements demanded by its specifications. Amarinth has also worked with Hyundai Heavy Industries (HHI) previously, supplying pumps for BP’s Quad 204 FPSO. For this project HHI required six high specification bespoke pumps. Following a tendering process it selected Amarinth as being the only supplier that could meet its specifications.

The stainless steel utility and chilled water pumps will be installed on an offshore platform being built for ADMA-OPCO to operate in the Nasr Full Field Development Project, 130km northwest of Abu Dhabi. The specification of the ISO pumps required the same level of diligence that would normally be expected for an API project. The pumps are required to operate at higher temperatures and pressures than normal utility pumps, so are designed with bespoke heavy duty baseplates to meet the vibration requirement stipulated by ADMAOPCO and have fully enclosed drip pans and bespoke wear rings.

For more information: www.amarinth.com

Aquasign® markers: reducing costs and enhancing subsea safety

Through unique technology, product guarantees and an extensive, proven track record Aquasign® antifouling markers have become firmly established as a market leading subsea identification solution. Aquasign® is a silicone based underwater marker system that guarantees anti-fouling performance for up to 80 years. Aquasign® remains clear of fouling through a proven and unique marine growth prevention solution. A fit for purpose anti-fouling marking system is an essential investment to ensure that divers and remotely operated vehicle operators can accurately identify subsea equipment during maintenance and inspection. Any manmade item submerged subsea without anti-fouling protection will become obscured by marine growth; which is of huge commercial significance in the oil and gas industry. An anti-fouling solution guaranteed for the project lifespan, will reduce costs in the long-term through minimising subsea intervention time, operational errors and the associated safety risks. Aquasign® subsea markers are bespoke manufactured in accordance with each individual project’s requirements, suitable for all applications with patented selfadhesive, mechanical and retrofit fixings available.

For more information: www.aquasign.com

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Balltec signs strategic alliance agreement

Balltec Ltd, a market leader in high load connection systems used in mooring, pipeline and specialist lifting applications, has signed a strategic alliance agreement with Canadian company Frontier Subsea Inc. Balltec has expanded its engineering expertise and offers a much wider range of engineered services and products. To increase its coverage Balltec has signed a number of strategic deals, most recently in Atlantic Canada.

We look for partners that bring added technical know-how rather than just sales based agents. This makes Frontier Subsea a perfect choice for Balltec Martyn Conroy, VP Sales and Marketing, Balltec

This region offers a good base for the promotion of new products such as subsea chain tensioners and release-under-load mooring connection systems. Balltec has partnered with the locally owned and operated Frontier Subsea Inc to act as both sales agent and strategic partner. Both companies’ subsea expertise will be combined to offer regional customerbase solutions and cost saving products and technologies.

For more information: www.balltec.com

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Member news

Bodycote Chard receives SC21 supply chain award Thermal processing services provider Bodycote’s Chard facility has become the first subcontract heat treatment plant in the UK to enter the SC21 Supply Chain programme at Silver Award level.

SC21 is an improvement programme, with strict criteria, designed to accelerate the competitiveness of the aerospace and defence industry by raising the performance of its supply chain, and has three award levels: bronze, silver and gold. To achieve any level a company must have achieved minimum scoring criteria for business and manufacturing excellence models; have a robust continuous sustainable improvement plan and achieved minimum standards in delivery and quality performance for all of their key customers for a rolling 12-month period. To be awarded Silver level, companies must have achieved between 95-99% on delivery, between 99.5-99.9% on quality and demonstrate excellence in a sustainable improvement programme and associated framework. This achievement by Bodycote demonstrates the consistently excellent levels of quality and quality infrastructure in place within the company.

The dampers will be located on the turbine exhaust systems, ahead of the waste heat boilers to allow man-safe boiler access during turbine operation. The contract covers design, manufacture, shipment and site services for assembly and installation supervision, and commissioning activities. Delivery will be in two phases commencing late 2016 and is due to conclude in early 2018. Upon completion DTL will have supplied the additional/replacement waste heat boiler dampers for all 5 power generation trains on the same site. A key feature of these dampers will be the 321 stainless steel construction, due to the coastal location of the plant. Following successfully completed projects of similarly high values DTL will once again work with Norway’s Mjørud AS on this project.

For more information: www.dampertechnology.com

E2S to showcase new premium STEx warning device at ONS

E2S Warning Signals is showcasing its new STEx premium stainless steel flameproof warning device family for use in aggressive onshore and offshore environments on Stand 5250, Hall 5 at ONS, taking place 29 August - 1 September in Stavanger, Norway. E2S, a world leading manufacturer of audible and visual warning devices, has developed the STEx family specifically for use in environments where corrosion is a particular issue. The family is launched with ATEX and IEC IECEx approvals. Testing to other relevant global standards is currently under way. The STEx family consists of 117 and 123 dB(A) alarm horn sounders with either flared or omnidirectional radial horns, 15 and 25 Watt PA loudspeakers, 21, 15 and 10 Joule Xenon strobe beacons, rotating halogen beacons, LED beacons and combined units. All sounder and strobe enclosure bodies are manufactured from 316L stainless steel. The E2S stand will be manned by personnel from Marin Supply, E2S’s long established Norwegian distribution partner, who will be supported by international sales manager Darren Mann and central Europe sales manager Joachim Ebert from E2S.

For more information: www.e2s.com

For more information: www.bodycote.com

DTL wins £1m industrial dampers order for Norwegian gas plant

Damper Technology Ltd (DTL) has secured another £1m order, this time for the supply of specialist guillotine and multilouvre dampers for a major gas processing plant in Norway.

The new STEx premium stainless steel flameproof warning devices

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New EIC members Social media Member round news up

Rotech Subsea announces management buy-out

Rotech Subsea’s senior management have successfully completed a management buyout (MBO) of the Rotech group of companies in a move that will see the company strengthen its position as the world leader in subsea massflow excavation. Following the MBO, the group’s three operating companies – Rotech Subsea, Rotech Engineering, and Rotech Fabrication – will be headed up by continuing directors Dr Don Stewart, Stephen Cochrane, Martin Graham and Steve Aitken with the support of Mike Hill, who continues as chairman. The buy-out, which was supported by existing shareholders, will herald a new phase of investment by Rotech in the growth and development of its subsea excavation business. The company is celebrating 30 years of operation and innovation in the off-shore industry, and recently deployed its new ‘RS’ Controlled Flow Excavation technology which is set to revolutionise the sector by offering enhanced jet profile, improved performance, higher velocities, greater control and precision, improved stability and higher cutting capabilities than existing mass flow excavation equipment. Speaking about the recent management buy-out, Dr Don Stewart – a 20-year veteran of Rotech – said, ‘The new company structure sees us boast a strong balance sheet, enabling the growth of the new business which will see Rotech Engineering continuing to develop innovative new designs, Rotech Fabrication building the new fleet and Rotech Subsea operating these state-of-the-art tools with an excellent on and offshore team.’

For more information: www.rotech.co.uk

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

The EIC @TheEICEnergy Secure your place as an exhibitor on the UK pavilion at @OTCHouston http://eic.energy/1KNXx54

The EIC @TheEICEnergy Congratulations to our three finalists: @HWusers, @Blazeman_News and @ElfabLimited

Energy Industries Council (EIC) EDF has taken a final investment decision to build a new nuclear power plant at Hinkley Point in Somerset: http://bit.ly/2ag8QE9

September 2016

Forthcoming events 6 September Management Course

Understanding Terms and Conditions in the Contract Four Points by Sheraton, Dubai

6 September

Corporate Entertainment

Cheese and Wine Networking Night

Vintage Wine Bar, Wafi, Dubai

6 September Management Course

EIC DataStream Training Regus @ Samsung Hub, Singapore

7 September Management Course

Effective Appointment and Management of Local Agents EIC London

8 September Export Showcase

Opportunities in Egypt Chester Hotel, Aberdeen

Egypt’s hydrocarbon resources are significant yet under-developed. Attracting investment in the sector is a priority for the Egyptian government which has set a target of US$70bn to be invested by 2022. This event will provide an overview of the country’s energy sectors, details of where opportunities lie and support available to companies. To book please contact julia.harte@the-eic.com

10 September Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

13 September Technical Workshop

Introduction to Electric Motors ATB Group, Norwich

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16 September

Corporate Entertainment

EIC Scottish Annual Golf Day Newmachar Golf Club, Aberdeenshire

The Hawkshill Championship is one of the toughest golf tests in the area and has already hosted major championships, including the Scottish Professional Championship and the Scottish Senior Open. The afternoon will include a light lunch and finish with a delicious two-course presentation dinner and the winning team being awarded the EIC Quaich. To book please contact julia.harte@the-eic.com

21 September HSE Training

The Machinery Directive and CE Marking Amtri Veritas, EIC London

22 September Sector Showcase

Renewables

Forest Pines Hotel, Broughton The current oil price has highlighted that diversification is key to survival. Many companies now include renewables in their portfolio, but for others it remains unchartered territory. This event showcases some of the key renewables sectors including offshore wind, energy from waste and biomass. Case studies will offer tips on how to succeed in the industry, while there will also be an emerging export markets for renewables session focusing particularly on solar. Speakers will come from both the operator and contractor communities. To register your interest please contact jennifer.hole@the-eic.com

22 September Industry Overview

Fundamentals of Natural Gas EIC Rio de Janeiro

23 September Technical Workshop

Introduction to Steam and Condensate Systems Spirax Sarco, Cheltenham

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

September 2016

Forthcoming events

26-29 September Overseas Delegation

Overseas Delegation to Mexico 27 September Business Presentation

Opportunities with Wood Group Mustang EIC Houston

27 September Business Presentation

Opportunities with CH2M HILL Yas Island Rotana, Abu Dhabi

27-30 September Overseas Exhibition

WindEnergy Hamburg

October 2016

Hamburg

1-3 October

Overseas Exhibition

Petroleum Conference – Iran Tehran

4 October Technical Workshop

Introduction to Control Valves Severn Glocon, Brighouse

5-6 October Management Course

SMEs – How to do Business with International Contractors EIC London

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29 September Management Course

Liquidated Damages

Four Points by Sheraton, Dubai

29 September Management Course

Mitigating Contract Disputes EIC Kuala Lumpur

30 September Regional Showcase

MacMillan Coffee Morning EIC Aberdeen

30 September

Corporate Entertainment

7th Annual Sporting Clays Tournament and BBQ American Shooting Center, Houston

12 October Management Course

Finance for the Non Finance Manager EIC Dubai

13 October HSE Training

The Pressure Equipment Directive Lloyd’s Register, EIC London

13 October

Corporate Entertainment

EIC National Dinner 2016 Natural History Museum, London

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UK events Opportunities on the Tahrir Petrochemicals Project, Egypt Wednesday 19 October 2016 London

The Tahrir Petrochemicals Project is a major new petrochemicals facility planned for installation in the Suez Industrial Zone in Egypt, being developed by the Tahrir Petrochemicals Corporation – a wholly owned subsidiary of Carbon Holdings Ltd. With funding coming from a number of sources including UK Export Finance, this event will highlight how UK supply chain companies can support this development.

• Two new trains of polypropylene production (alongside an existing Carbon Holdings facility) • Automated warehouses for polymer product storage and distribution • A bulk storage and feedstock/product handling terminal with jetty and marine facilities, and water desalination • Interconnecting pipeline corridor between the three sites The work will be undertaken by four major EPC contractors operating primarily from their European execution locations. The project is currently in an advanced stage of financing and completion of EPC contracts and a final investment decision is expected in 2016. The following export credit agencies will be participating: • Export-Import Bank of the United States (Exim) • Servizi Assicurativi del Commercio Estero (SACE) • Overseas Private Investment Corporation (OPIC) • UK Export Finance (UKEF)

Carbon Holdings Ltd is a mid-to-downstream petrochemicals developer and operator established by Basil El-Baz, an Egyptian industrialist, entrepreneur and business executive who serves as chairman and chief executive officer. Headquartered in Cairo, Egypt, the company has a regional office in the Dubai International Financial Centre and a representative office in Houston. The Tahrir Petrochemicals complex will consist of the following elements spread across three locations: • A naphtha cracker, with benzene extraction, butadiene extraction, benzene hydro-dealkylation, butene-1 and hexene-1 production units • Three polyethylene production units • Associated utilities and offsite infrastructure including embedded power generation Get in touch Share your news and views...

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It is expected that UKEF will contribute a significant proportion of the project financing, and as such, there will be opportunities for UK suppliers to participate in the project, and supply equipment, materials and services to the project via the EPC contractors. The purpose of this event is to raise awareness of the project within the UK supply chain, and generate interest from UK suppliers with a view to supporting the project in meeting the requirements of UKEF funding. Mr Basil El-Baz, Chairman and CEO of Carbon Holdings, will attend and give his insights on the project. Key project personnel from both the Tahrir Petrochemicals Project and the engineering contractors will also be in attendance to discuss the project in more detail. To find out more or to book your place at this event visit www.the-eic.com/OpportunitiesTahrirProject

Overseas events

Egypt Petroleum Show (EGYPS) 2017

Taking place from 14 to 16 February 2017 in Cairo, EGYPS is a direct route into the largest non-OPEC oil producing country in Africa, offering a platform to interact with Egypt’s key operators, forge local partnerships and learn about doing business in the country. With proven reserves of 4.4bn barrels of oil and 77tn cubic feet (Tcf) of gas, Egypt is the largest non-OPEC oil producer and the second-largest dry natural gas producer in Africa. As production has stagnated over the last few years and its domestic energy demand has increased rapidly, the country is committed to developing its oil and gas industry. Upstream developments like the West Mediterranean Deepwater and North Alexandria concessions, which hold estimated reserves of 5Tcf of gas and 55m barrels of natural-gas condensates, have recently seen major engineering, procurement and construction contract awards. Another major project already underway is the Zohr gas field, being developed by ENI and IEOC joint venture Petrobel. The project is currently in the first phase of development which will see the field producing 1bn cubic feet of gas per day by quarter four 2017. Its second phase will require the development of 14 wells and subsea trees and a new onshore processing plant. The overall CAPEX for the field is approximately US$13bn. BP is investing heavily in the country. The North Damietta Offshore Concession, which holds the Atoll gas discovery, is to be developed in two phases the first of which will consist of three wells to be tied-back into existing infrastructure with production set to start in 2018. The most notable BP project in Egypt, however, is the West Nile Delta development valued at US$12bn with first gas expected in 2017. Sign up for the EICOnline newsletter

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The downstream sector is also seeing major investment. Carbon Holdings is developing the Tahrir petrochemical complex (opposite) at a cost of US$7.2bn, and a number of supply chain opportunities are available for work on the complex, which is due to start production in quarter three 2019. WorleyParsons was awarded a project management consultant contract in March by the Egyptian General Petroleum Corporation for the modernisation of the Assiut refinery. The project has been split into two phases which are to be carried out over the next four years and will receive investment of over US$2bn. The three day Egypt Petroleum Show is expected to receive over 10,000 visitors and 400 exhibitors and benefit from 25 conference sessions and 150 speakers from regional operators and contractors. If you would like to exploit the tremendous opportunities in Egypt’s energy industry now is the time to engage with the market and establish relationships with regional operators and local partners. For more information on this event and how to book your place please visit www.the-eic.com

r Other upcoming events in the region

Petroleum Conference – Iran 2016 1-3 October 2016 – EIC managed UK stand

ADIPEC 7-10 November 2016 – Please visit the EIC hosted UK pavilion at Stand 8350

Delegation to Iran 10-14 December 2016

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EIC training Control valve workshop boosts practical knowledge

Valves are used in numerous applications throughout the energy industries from blow out preventers in the upstream sector to cooling towers in nuclear power plants. The varying operation conditions and service environments are often extreme and severe. As such valves are required to work at both extremely high and low temperatures and pressures and may be required to maintain their position for long periods, yet still respond effectively when needed.

Commenting on the course Adam said, ‘As well as covering control valve theory, we look at the realities of how valves perform in the field. It’s about learning from historic valve performance, then applying that knowledge and engineering expertise to develop the best possible valve solutions.’

The ongoing demand for oil and gas, along with an increasing focus on power and renewables have further amplified these conditions and forced manufacturers to continually adapt and advance their technologies in order to meet ever increasing performance expectations.

Paint room at Severn Glocon

Sharing their practical knowledge, Severn Glocon Group is hosting a control valve technical workshop, on behalf of the EIC, at its Brighouse facilities on Tuesday 4 October 2016.

EIC technical workshops are held at the premises of host manufacturing companies, providing delegates with direct access to supply chain professionals.

The workshop will focus on critical aspects of control valve design, construction, selection and application. It will also cover severe service considerations and the consequences of poor specification and selection. A tour of the shop floor will allow delegates to gain practical insights into the manufacture, assembly, instrumentation and testing of valves.

Emily Light, Training Co-ordinator at the EIC, said, ‘The goal of our workshops is to foster a greater appreciation of the equipment people procure or interact with in their day-to-day roles.’

Tailored for people who specify, procure or work with valves, the workshop is suitable for engineers, graduates, managers and anyone new to the industry wanting to know more about control valves. Engineering Manager Adam Eckersley will deliver the workshop. He says that attendees will gain a good, practical understanding of control valves. ‘We will look at various valve types as well as design and testing standards,’ Adam explained. ‘Most importantly, people attending the course will learn the important distinction between regular and severe service applications. This enables them to make more informed choices and decisions, whether they are specifying valves or managing their procurement.’ Seven Glocon Group has a proven track record in progressive control valve technologies that make a tangible difference to productivity and efficiency. Delegates will be introduced to the group’s unique Repair Intelligence™ process which draws on extensive failure mode and failure effect data from control valves in major applications. Get in touch Share your news and views...

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Severn Glocon Group’s progressive control valve engineering has helped maximise safety and profitability in the oil and gas industry for more than 50 years. Today the firm provides high-integrity products and services for onshore, offshore, subsea and LNG operators around the world. More information about Severn Glocon Group is available at www.severnglocon.com

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Engineering Contractor Procurement Wednesday 26 October 2016 EIC London

The Fundamentals of Oil and Gas Thursday 3 November 2016 EIC London

An Introduction to Gas Turbines Wednesday 9 November 2016 Dresser Rand, a Siemens business, Lincoln

Contact: training@the-eic.com

Middle East news Regional update Business levels across the Middle East begin to ramp up a gear in September following the month of Ramadan and the subsequent Eid holidays.

Regional news

Terry W illis

On 6 September we will be hosting a cheese and wine evening to welcome members back from their summer breaks. The venue will again be the Vintage Wine Bar at the Wafi Centre. Without a doubt we’ll have the same enjoyable and relaxing evening that we always do where we can network and find out any needs or requests our local membership may have. At the end of the month we have the pleasure of hosting C2HM HILL who will provide us with an update on their current and future work load and opportunities to work with them. We intend to organsie another trade delegation to Tehran in December. Before that we will take a group to the Iranian Petroleum Congress at the beginning of October as well as organising an Iran Showcase in Dubai at the end of October. Iran remains high on a lot of our members’ agenda and we will do all we can to facilitate successful engagements with the main players there.

SNC-Lavalin wins 5-year contract with Oryx GTL

SNC-Lavalin has been awarded an engineering consultancy and support services contract by Qatar’s Oryx GTL. SNC-Lavallin local entity, Qatar Kentz W.L.L., will carry out at pre-defined rates the general engineering, feasibility studies, modelling, drawings and documentation that will be required at the facility. Oryx GTL is a joint venture between Qatar Petroleum (51%) and Sasol of South Africa (49%), for its gas-to-liquids complex at Ras Laffan Industrial City in Qatar.

Carillion Alawi awarded PDO US$312m contract

Petroleum Development Oman (PDO) has awarded UK company Carillion Alawi an extension contract for facilities management services at 12 PDO concession estate across Oman. This four and-a-half-year US$312m contract includes engineering maintenance, projects, catering and environmental services.

Al-Dabbiya oil field project on hold

The UK pavilion at ADIPEC 2015

ADIPEC is fast approaching and we are very pleased to announce that our evening reception on Sunday 6 November has again received the support of Amec Foster Wheeler for which we are very grateful. The conference and exhibition is sold out and we are looking forward to hosting over 60 companies at this prestigious event. Finally, the Middle East Golf Tournament has been booked for Thursday 16 February. Once again we will be returning to the Els Club in Dubai. Sponsorship opportunities are available – please get in touch to find out how you can support this event. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com

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Abu Dhabi Company for Onshore Petroleum Operations (ADCO) has postponed its US$1.2bn project for the construction of facilities to produce non-associated gas from the Al-Dabbiya field. Seven international companies: GS Engineering & Construction, Petrofac, Saipem, Samsung Engineering, SK Engineering & Construction, Technip and Tecnimont SpA were pre-qualified for this project.

Forthcoming events

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Asia Pacific news Regional update

The biggest news in the region is that BP has approved the final investment decision to expand the existing Tangguh liquefied natural gas (LNG) Azman plant in West Papua Nasir province, Indonesia by adding a third processing train. Construction is expected to commence in the fourth quarter of 2016 and the project will be on-stream in 2020. The decision has been long awaited, not only by BP but also by Indonesia as a whole. Tangguh will play a big role in supplying energy to Indonesia with state-owned electricity firm PLN as its biggest consumer. The latest Train 3 plant is set to supply 3.8m tons per annum (Mtpa) of LNG, bringing the total supply of the Tangguh LNG plant to 11.4Mtpa. The BP Tangguh project is central to the Indonesian government’s plans to address its future energy needs by generating an additional 35,000MW of electricity. Another encouraging development in the region is the US$1.9bn Greater Enfield project in Australia. In July Woodside and Mitsui E&P Australia approved this project for development. This is great news for the Western Australian oil and gas industry. Located 60km offshore Exmouth in Western Australia, the Greater Enfield Project will develop the Laverda Canyon, Norton over Laverda and Cimatti oil accumulations. These reserves will be produced via a 31km subsea tie-back to the NgujimaYin FPSO, located over the Vincent oil field. The Greater Enfield Project requires the development of six subsea production wells and six water injection wells. Production will be supported by subsea multiphase booster pumps in the Laverda area and gas lifts in the Cimatti area. First oil is expected in mid-2019. We have identified an increase in brownfield project awards in the region, particularly in Malaysia, Brunei and Australia. In Malaysia, PETRONAS recently announced that the Bokor Phase 3 project will go ahead. The project was slightly down-sized due to the current market conditions but nevertheless the news was well received by the industry. PetroVietnam recently announced that the front end engineering design is proceeding for the Nam Con Son basin, another decision long awaited by the industry. Aker Solutions, with more than 100 engineers based in Kuala Lumpur, was awarded the engineering job by Japan’s Idemitsu Oil and Gas. Idemitsu is expected to make a final investment decision in April 2017. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

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Regional news

PTTEP lands first operatorship in Malaysia

PETRONAS has awarded the SK410B production sharing contract, offshore Sarawak, to a joint venture comprising Thailand’s PTTEP HK Offshore Ltd. (PTTEP), Kuwait’s KUFPEC Malaysia (SK-410B) Ltd. and PETRONAS’ subsidiary, PETRONAS Carigali Sdn. Bhd, with a participating interest of 42.5%, 42.5% and 15% stake in the PSC, respectively. PTTEP will operate the 1,800km2 block. © 2003-2015 Shutterstock, Inc

World Bank to provide US$1bn for India solar

The World Bank will provide more than US$1bn in funding to develop solar energy projects in India. The funds will be used for solar rooftop technology, infrastructure for solar parks, bringing innovative solar and hybrid technologies to market, and transmission lines for solar-rich states. India aims to increase its installed solar capacity from its current 4GW to 12GW by the end of next year and reach 100GW by 2022.

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North and Central America news Regional update

The North and Central America office offered a wide array of events and training during the second quarter of 2016. In July, our Regional Showcase: Opportunities in Mexico benefited from the Amand a Duho n participation of Aggreko, Talos Energy, UK Trade & Investment (UKTI) and Haynesboone. The following month Pradeep Anand with Seeta Resources LLC gave a business management course entitled Seven First Go-to-Market Steps for Accelerating Revenue Growth. The purpose of this workshop was to share and highlight some key issues at the heart of successful product and service growth. This month is just as busy with a Fundamentals of Upstream course, an Opportunities with Wood Group presentation and of course the seventh Annual Sporting Clays Tournament and BBQ all taking place. The Fundamentals of Upstream course provides a practical and commercial overview of the industry as well as examining technical aspects such as oil exploration and drilling. The Houston team has worked closely with Wood Group Mustang to organise a business presentation for members to learn about current projects, where procurement opportunities lie and how the supply chain should engage with Wood Group Mustang. We would like to use this opportunity to thank Alco Valves for sponsoring the drinks at our Sporting Clays Tournament and BBQ and for their continued support of the Houston events and training programme.

Regional news

Hawaii turns down US$4.3bn bid for state electric corporation

State officials rejected NextEra Energy’s offer citing a belief that it would not have benefitted Hawaiian utility consumers or achieved its energy self-sufficiency goals. Hawaii has set a target of switching to 100% renewable energy by 2045. The islands currently rely heavily on imported oil and pay more per KWh electricity than other Americans while ranking 49th out of 50 states in energy consumption per capita.

The end of California nuclear The State Lands Commission of California has approved a lease that will prematurely close California’s last nuclear plant. Diablo Canyon will now run until August 2025, rather than its scheduled completion date of 2044. The shut down follows decades of debate regarding a seismic fault line 595 metres from the plant and recent long-run cost concerns.

Visiting Houston and need a desk or meeting room? Book your hot desk and/or conference facilities at the EIC North and Central America office in Houston, by contacting our Office and Events Associate Manager at natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com The Houston office hosted the Regional Showcase: Opportunities in Mexico event in July

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Forthcoming Events

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South America news Regional update Rio de Janeiro will host the VII International Seminar on Nuclear Energy (SIEN) on 20-22 September.

The event will bring together Clariss e Roch private companies, a government bodies, equipment manufacturers, suppliers, research institutes, technical associations and technology, engineering and project companies, from around the world. The seminar’s main objective is to foster dialogue on new business models and funding for the nuclear sector in Brazil. The nuclear sector is rapidly developing in Brazil and the Ministry of Mines and Energy has already approved the construction of at least eight nuclear power plants by 2050 and is considered a strategic option to support the safe and sustainable growth of the country’s energy capacity.

It is also carrying out the conceptual, basic, FEED, and detailed design engineering for Chevron’s Frade FPSO topside systems. The presentation included a company overview, details of current projects, future opportunities, local content issues, and their specific partner and supplier requirements. 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 The Radix presentation included details of future opportunities, local content issues and partner and supplier requirements

In July the Rio office hosted the Opportunities with Radix business presentation. The company is currently involved in several high-profile projects such as providing FEED and technical support services for eight Petrobras FPSOs known as the Replicant FPSOs.

Regional news

Pre-salt extraction cost at US$7.6 per barrel

Oil extraction costs in the Brazilian pre-salt province decreased from US$10.4 per barrel of oil equivalent (Boe) in 2010 to US$7.6/Boe in 2016, according to Petrobras. Over the last six years, the time required to drill and complete a pre-salt well fell from 310 to 89 days. During this period, Petrobras put into operation 10 production units (of which five are still in the rampup stage) connected to 55 production wells.

Pampa to sell stake in TGS

Argentina’s Pampa Energia has signed an agreement to sell its 26% share in Transportadora de Gas del Sur (TGS) to Grupo Inversor Petroquímica (GIP) for US$241m. The agreement will help Pampa fund the acquisition of Petrobras’ assets in Argentina, a transaction worth US$892m. TGS is the largest gas pipeline operator in the country, responsible for over 9,000km of pipelines that transport 60% of Argentina’s natural gas.

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Repsol to increase activities in Bolivia

Spanish oil company Repsol has expressed interest in carrying out exploration activities in northern Bolivia, according to Bolivian government authorities. The company could work with YPFB to explore areas such as the Lliquimuni block, where the joint-venture between YPFB and PDVSA, Petroandina, found non-commercial quantities of hydrocarbons earlier this year. Repsol, the operator of the Margarita-Huacaya gas fields in the Tarija department in south Bolivia, is already present in 32 blocks in Bolivia.

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