EIC Monthly News July 2013 by Energy Industries Council

EIC Monthly News July 2013

www.the-eic.com

The EIC Chief Executive

The Chief Executive

Book Now

Welcome to the July edition of the Monthly News. It’s hard to believe that we are already half way through 2013! Recently I returned from a very successful EIC Connect Oil, Gas & Power event in Abu Dhabi where a number of leading Middle East energy companies outlined their future plans to a record attendance of over 500 delegates. ADNOC, BP, Mubadala Petroleum and SNC-Lavalin revealed substantial new project opportunities for UK businesses as part of a world-class speaker line up. A total of 18 presenting companies, including TAQA, GASCO, Saudi Aramco, Saudi Electric Company and many other EPC contractors took part in a series of supply chain briefings and 400 one-2-one sessions to outline procurement strategies and specific supply chain needs. Delegates also had the opportunity to discover the latest products and technologies on show by the 36 UK exhibitors throughout the day. The next in the EIC Connect series of events will be EIC Connect Energy 2013 at Manchester Central on 12-13 November, which will cover all aspects of power generation including thermal power, nuclear and renewables. For more information, please visit: www.eic-connect.co.uk The EIC has hosted the UK Group at two other events in the last month, Oil & Gas Asia and Brasil Offshore, and initial feedback from exhibitors indicates that both events were very successful. Lord Green, UK Minister of State for Trade and Investment and Tan Sri Mohd Sidek Hassan, Chairman of Petronas, both took the time to visit exhibitors on the UK Pavilion at Oil & Gas Asia, while at Brasil Offshore the EIC held a Whisky Tasting networking event at the UK Pavilion which proved very popular, even attracting attention from an industry news channel! On the topic of Brazil, the EIC overseas offices are continuing to roll out training events for members and the South America office in Rio de Janeiro will be holding ‘An Introduction to FPSOs’ Technical Workshop on 18 July. The overseas training programme is aimed at making the EIC’s professional learning experience, which has a proven track record here in the UK, accessible to members based in our overseas regions. Looking at markets, the US shale industry continues to dominate the headlines. It is one of the most exciting global developments the energy industry has seen for some time, impacting on gas markets around the world while simultaneously pushing the US towards energy independence. The new US Shale Insight Report 2013 has now been released and it provides a holistic view of the US shale sector, from the latest developments on the ground to forecasts of the implications for international energy markets. For more details of the report, please see page 4 or visit: www.eic-consult.com

www.the-eic.com/nationaldinner

Contents

July 2013

The Chief Executive

Business Information

US Shale Report

Training Services

New Members

Members News

UK, Overseas & Training 12 Exhibitions/National Events 13 National Events

UK News

Exhibitions & Delegations 17 Middle East News

Asia Pacific News

The EIC National Dinner on 10 October is proving to be very popular. This year’s dinner is being held in the Central Hall at the world-famous Natural History Museum. The EIC National Dinner provides a great opportunity for our member companies to host valued clients, network with prospective customers and generate business contacts while enjoying a top-class social event with industry peers.

China News

North America News

South America News

Also at this year’s dinner, the inaugural winner will be announced of the new EIC Supply Chain Award for Excellence, a prestigious accolade from the EIC to recognise a member organisation that has demonstrated superiority within the supply chain. If you haven’t already booked your table, details are available in the Full Events Diary at: www.the-eic.com I look forward to seeing you there. Claire Miller, Interim CEO

Designed and published by The EIC 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

www.the-eic.com

July 2013

EIC Business Information

Business Information

China – The Next Shale Frontier? From a geological standpoint, Chinese shale gas is located in areas that are difficult to reach. Shale gas deposits in China are generally located in mountainous, rocky deserts and are buried deep underground. The routing and installation of heavy equipment required for the operation of these deposits will be a complicated and expensive process and means that technological developments will need to take place at a rapid rate to make operations more cost effective. The location of these resources also makes their extraction difficult from a fracturing standpoint as many shale gas blocks are located in areas facing water shortages. The largescale development of shale gas in these regions will need to take into account the availability of accessible water supplies and the transportation of water to these sites. China will also need to develop its infrastructure if it seeks to meet its production goals. Most shale gas reserves have to be connected to the existing network of pipelines. Although China has already increased the development of its pipeline network in recent years, the identification of new routes, the construction of new pipelines and their connection with the existing network will inevitably be a long-term process. Such bottlenecks, coupled with high development costs could also slow the development of shale gas. The Chinese government has yet to implement a clear shale gas policy and foreign majors have pushed back their plans until this issue is resolved. The Ministry of Land and Resources has distinguished shale as an independent mineral that is different from both conventional and unconventional gas. As a result of this there are no clear guidelines on developing shale assets with foreign companies. Shell has signed a Production Sharing Contract (PSC) with CNPC for the development of the Fushun-Yongchuan shale gas block. This is the first ever shale PSC signed in China and will be encouraging for other foreign companies seeking to enter the Chinese shale market. However, the approval for this PSC from the central government took several months due to internal differences over the designation of shale as a resource and these delays have impacted against the confidence of other foreign firms in the future of the Chinese shale sector. China has an ambitious plan for the development of its shale resources, however they have a number of issues that will first need to be resolved if they want to reach a production target of 229Bcf. The potential is there for the nation to become the next shale frontier but this potential will require a rapid push from all parties involved and will occur over a longer period of time and not by 2015.

As the world’s third largest consumer of gas, having consumed 4.6Tcf of gas in 2011, China plans to increase its domestic production to meet growing demand. According to the EIA, China has 1,275Tcf of technically recoverable shale gas reserves, making China the global leader in shale resources and accounting for 19% of the world’s total recoverable shale gas reserves. China has undertaken two shale gas licence rounds and is currently in the process of preparing a third round. In the first round only two of the four blocks on offer were awarded. These went to Chinese firms as foreign firms were excluded. In the second round 19 out of 20 blocks were awarded as foreign companies were allowed to bid, but only in a joint venture with Chinese firms. A total of US$1.1 billion has so far been spent by Chinese firms on shale gas exploration and they have drilled a total of 80 discovery wells. The country plans to produce 229Bcf annually of shale gas by 2015 but this ambitious target will be very difficult to meet. In order for China to reach its 2015 goal, the country will need to drill at least 3,000 wells in both 2013 and 2014. The aim of drilling 6,000 wells over a two year period is very difficult to achieve as local service providers are still in the early stages of understanding the geology of China’s shale basins. The drilling of a single horizontal well in China costs US$13 – US$16 million making it very uneconomical for operators. The government provides a subsidy of US$0.17 per 100 cubic feet of gas produced, however even with this subsidy operators will be earning very small profits, making drilling on the scale required to meet the targets unlikely. Apart from having to drill a vast number of wells, China faces other issues that will hinder a rapid development of its shale resources. These issues include uncertainties over the country’s recoverable reserves, geological, logistical and infrastructural problems and a lack of regulatory agreement on the classification of shale gas. China does not have a clear idea of its shale resources due to a lack of actual geological studies, making the majority of oil and gas firms reluctant to bid on licences. In the second shale round, 16 Chinese firms were awarded licences for a total of 19 blocks. The 16 winning bidders were not oil and gas companies but were instead made up of power companies, coal producers and provincial energy investment firms. The licence holders have committed to spending a total of US$2 billion on exploration activities on their blocks in the period 2013-2016. However, the majority of companies have not bought up the acreage to produce the gas and instead bought the acreage to increase their share price via the promotion of their reserves. Furthermore a number of these licence holders could potentially split their blocks and sub-contract them to foreign companies in order to reduce their financial risk during exploration and development. www.the-eic.com

Bahzad Ayoub, Business Information Officer Tel +44 (0)20 7091 8638 Email bahzad.ayoub@the-eic.com

July 2013

US Shale Report 2013

Comprehensive, Clear, and Original Industry Intelligence from a Hub of Energy Knowledge The latest EIC Consult report provides focused, cutting edge information on the shale sector in the United States. Shale gas production has transformed domestic gas markets and energy consumption in the US, but the global implications of shale development are still unfolding. At the same time rising oil production from shale plays is simultaneously pushing the US towards energy independence. The US Shale Insight Report 2013 from EIC Consult analyses these developments, providing a holistic view of the US shale sector from the latest developments on the ground to forecasts of the implications for international energy markets. Integrated analysis considers the regulatory climate, emerging market dynamics and technological challenges. Report Highlights • Understand the fundamental economics driving shale play investment in the US. • Gain an insight into technical and logistical challenges facing the sector. • Overview of major US shale oil and gas plays. • Forecast for US natural gas prices and the impacts of LNG exports from the US on international markets. • Analysis of rising shale oil production and the prospect of US energy independence. • How downstream activity in the US has been revived by shale gas development. • Forward looking evaluation of key political, economic and regulatory concerns in the shale sector. • Analysis of the shale supply chain and company activities in the sector.

Price: £395 plus VAT for Members (£795 plus VAT for non-Members) delivered as an electronic PDF copy of the report. For further information and to order contact: Dr. Phil Goddard, Director of Consultancy or Louis Vye EIC Consult Officer Tel: +44 (0)207 091 8612 Tel: +44 (0)207 091 8610 Email: phil.goddard@the-eic.com Email: louis.vye@the-eic.com

Visit www.eic-consult.com for More Information www.the-eic.com

July 2013

EIC Training Services

Training Services Technical Workshop

Technical Workshop

Introduction to Pipe Supports 3 July 2013 Carpenter & Paterson, Welshpool This workshop is designed for people who require an understanding of both why and how pipe supports are used and explores their different uses and applications. A demonstration will be given of the Witch Hanger Design Software and also the interface with the PDMS Multi Disciplined Support package.

Introduction to Bolted Joint Integrity 10 July 2013 Hydratight, Walsall This course is designed for people who require an understanding of the theoretical, practical and management aspects of bolted joints in pressurised and structural applications. The course aims to give a practical appreciation of bolting issues and is followed by a factory tour.

Technical Workshop

Introduction to the Design, Operation & Maintenance of a Nuclear Power Station 11 July 2013 British Energy, Dungeness The workshop will provide an overview of AGR plant design and operation, will discuss Nuclear New Build, and will explain PWR plant design. There will be a plant tour for attendees’ understanding of the process of plant layout involved in the operation of a nuclear power station.

Introduction to Shale Gas 11 July 2013 EIC Billingham Shale Gas is altering the landscape of the gas industry across the world. This comprehensive one day workshop on how the shale gas industry works will explore the challenges facing the industry and will enable participants to understand the technological, geological, economic and environmental aspects of shale gas.

Technical Workshop

HSE Training

Introduction to FPSOs 15 July 2013 Denmore Technologies Ltd, EIC Aberdeen This course will provide an overview of the nature and purpose of FPSOs. Attendees will develop an understanding of the mechanics of a reservoir and types of facilities used offshore, identify environmental hazards and appreciate design considerations for mooring systems and risers.

Introduction to the ATEX Directives 94/9/EC & 1999/92/EC 8 July 2013 Baseefa, Buxton The course will explain the basics of an explosion, classification of hazardous areas and selection of equipment and electrical and mechanical protection concepts.

Industry Overview

Fundamentals of Subsea 5 July 2013 Denmore Technologies Ltd, EIC London This course has been designed for managers, engineers, graduates, operators and other personnel. The one day workshop will enable delegates to gain an appreciation of the fundamentals involved in the subsea industry, gaining insight into the key processes, technologies and equipment behind contemporary subsea production systems.

Fundamentals of Refining & Petrochemicals 9 July 2013 WorleyParsons, EIC London Attendees will understand the terms used in the industry and will gain familiarity with the refinery and petrochemical business. They will also learn about the technology and design philosophy behind refineries and petrochemical plants as well as discussing present and future challenges of the business.

Management Course New Course Certificate in Project Management 16-17 July 2013 Parallel Project Training, EIC London This course is suitable for project managers and team members who would like to understand project management terminology and who wish to obtain the APM Introductory Certificate. The course includes the end-to-end life cycle of projects so that delegates become familiar with typical project management processes, techniques, roles and terminology.

Management Course Negotiation Skills 18 July 2013 Made to Measure Training, EIC London The course is designed to rapidly improve negotiation skills through highly interactive and spontaneous group discussion. The skills learned will be of benefit to both technical and commercial disciplines not only when dealing with clients and suppliers but also when dealing with colleagues or employees.

If you would like further information on any of our courses or would like to arrange ‘in-house’ training at your offices, contact: ally.leboutillier@the-eic.com www.the-eic.com

July 2013

New EIC Members New Global Member

New EIC Members

Mirage Machines Ltd 10 Enterprise Way Jubilee Business Park, Derby DE21 4BB Tel +44 (0)1332 291 767 Fax +44 (0)1332 370 356 Email richard.silk@miragemachines.com Web www.miragemachines.com The Nominated Representative is Mr Richard Silk, Managing Director. Mirage portable machine tools optimise the performance of onsite assets by achieving operational excellence, maximising uptime and improving productivity. Their portfolio of portable machine tools are suitable for a diverse range of onsite machining applications that include: flange facing, hot tapping and line stopping, milling, drilling, tapping, grinding, journal turning, line boring, pipe and casing cutting. Mirage Machines proprietary technology drives the development of portable machine tools that serve the oil and gas, subsea, power generation, ship build and repair, renewables and nuclear industries.

New Primary Member

Argand Associates Vantage Point 5th Floor Hardman Street Manchester M3 3HF Tel +44 (0)161 830 7830 Fax +44 (0)161 833 4999 Email Oliver.Castle@ojassociates.com Web www.argandassociates.com The Nominated Representative is Mr Oliver Castle, Director. Argand Associates is a search and selection recruitment business dedicated to servicing the subsurface sector of the oil and gas industry. The strategic focus is aimed at contract and permanent recruitment in specialist disciplines, ranging from; drilling and completions, geoscience, reservoir and production engineering. These disciplines form the structure of their recruitment teams, whereby consultants operate in vertical markets, enabling them to constantly develop their databases by establishing contact with candidates in their dedicated field. Argand Associates’ client activity involves the development of relationships with operators, national oil companies and service companies, servicing projects in Europe, Africa and the Middle East regions. Argand Associates is a subsidiary of Oliver James Associates, the market leader in financial services recruitment, who have active operations in London, Manchester, Zurich, Dublin and Hong Kong.

New Global Member

Odfjell Drilling UK Ltd

Bergen House, Crawpeel Road Altens, Aberdeen AB12 3LG Tel +44 (0)1224 856 000 Fax +44 (0)1224 856 001 Email smar@odfjelldrilling.com Web www.odfjelldrilling.com The Nominated Representative is Mr Stuart Martin, VP Engineering & Projects. Odfjell Drilling is a privately owned international drilling contractor providing mobile offshore drilling units for harsh environment and ultra deepwater drilling operations, platform drilling and well services. The company operates six modern harsh environment and ultra deepwater drilling units in Norway, Tanzania, Angola and Brazil. Odfjell Drilling provides a wide range of engineering and project management services to rig owners and oil companies. Odfjell Drilling has 40 years experience from worldwide operations and 2,800 employees.

New Global Member

Cambridge Consultants Science Park Milton Road Cambridge CB4 0DW Tel +44 (0)1223 420 024 Fax +44 (0)1223 423 373 Email frances.metcalfe@cambridgeconsultants.com Web www.CambridgeConsultants.com The Nominated Representative is Dr Frances Metcalfe, Associate Director, Oil and Gas. Cambridge Consultants helps clients solve challenging problems through the innovative use of technology – from sensors for exploration and production to technology for domestic smart meters. Their main areas of development activity include: sensors and instrumentation; conventional – and unconventional – communication technologies; complex and multiphase fluids processing; and home energy management systems. Cambridge Consultants is the development partner of choice for leading blue chips, as well as the virtual development team for ambitious startup companies. With more than 380 engineers, scientists, mathematicians and designers, they provide an independent assessment of technologies, develop proofof-concept demonstrators, and successfully transition these into deployable products and systems. www.the-eic.com

New Primary Member

ProTech Flow Solutions Ltd Compass House, Chivers Way Histon, Cambridge, CB24 9AD Tel +44 (0)1223 257 709 Email ali.faben@protechflowsolutions.com Web www.protechflowsolutions.com The Nominated Representative is Ms Ali Faben, Sales Manager. ProTech Flow Solutions is a specialist supplier of valves, pipe, fittings and flanges to the oil, gas, petrochemical, power and industrial gases industries. Having extensive project experience, they provide the highest quality products from market leading manufacturers. With ProTech Flow Solutions, you enjoy a flexible service, fast delivery to any site around the world and documentation to suit the specific needs of the project. ProTech Flow Solutions is accredited by all the world’s major certifying bodies. This means you benefit from a tailor-made service and high quality, yet competitively priced products whatever your industry sector, project location or technical requirement. 6

July 2013

The EIC Conference Suite

The EIC Conference Suite A fully flexible events space available exclusively to EIC members and associated companies.

The EIC Conference Suite offers meeting rooms for up to 110 people within the EIC head office. Opened in 2010, the Suite offers a convenient and easily accessible riverside location with excellent views, just 2 minutes from the National Rail, London Underground and bus stations of Vauxhall in Central London. Made up of five meeting rooms and an airy, spacious breakout area, the energy themed décor of the EIC Conference Suite offers the perfect solution for members looking for somewhere to hold a conference, meeting or reception. The EIC Conference Suite is exclusively available to hire by EIC members and associated organisations and room hire starts from just £70, with special rates for members.

Meeting Rooms 5 meeting rooms.

Capacity

Minimum 3, maximum 110.

Location

Central London. 2 minutes’ walk from Vauxhall’s Underground, National Rail and bus stations.

Technology

Free Wi-Fi throughout and LCD screens in each large meeting room.

Refreshments

Fully flexible and cost effective catering options are available from our preferred caterers and sample menus are available upon request. Adaptable spaces – Conference/Boardroom style • • • • •

Video conferencing Hot desks Free Wi-Fi Fully air-conditioned Wheelchair accessible

• • • • •

Room hire from just £70 State of the art facilities Flexible catering options Dedicated events co-ordinator Large breakout area

The EIC Conference Suite is available for hire during normal working hours. Please feel free to drop in to see the facilities or to use one of the hot desks. Contact: conference@the-eic.com www.the-eic.com www.the-eic.com

7 16

July 2013 May 2012

EIC Members News

Members News

Eaton has launched its first multifunctional motor starter with integrated motor protection in a 30mm mounting width for motors with ratings from 0.06 to 3kW. The new EMS electronic motor starter combines DOL start, reversing start, motor protection and emergency stopping to category 3 (EN 13849-1) in a single switching device. This reduces the wiring requirement compared to conventional switchgear assemblies by up to 60% and the proportion of hardware components required by up to as much as 70%. Due to its slim, standard width throughout, the electronic motor starter optimises the use of space in the control panel, helping to ensure a uniform panel design. The use of tool-less push-in technology also keeps installation requirements to a minimum, whilst the hybrid switching technology increases the lifespan of contacts. The integrated hybrid switching technology based on wear-free semiconductor technology and a robust relay contact ensures the low-wear switching of the EMS. This therefore relieves the load on the actual relay contact for actuating the motor. With up to 30 million switch operations, the electronic motor starter thus offers a longer contact lifespan than conventional switching devices. Eaton

Aquaterra Energy, the offshore engineering solutions specialist, has extended its global footprint and cemented its presence in the Middle East with the opening of a new office in Dubai. Driving the Aquaterra Energy business in this strategic region is newly appointed Sales Manager Martin Bolton, who is responsible for developing new growth for the company’s products and services in the Middle East. Mr Bolton brings a wealth of experience in business development. Throughout his career, he has actively managed sales activities and opportunities, while also providing valuable technical and engineering scoping for clients. Patrick Phelan, Managing Director, Aquaterra Energy, said: “The Middle East is a strategic priority for a permanent Aquaterra Energy presence as this region presents excellent shallow water opportunities which play to our experience and strengths. Having Martin on board to establish our office in Dubai is key as he has exceptional experience in this region and his sales and business development skills will be vital in establishing the company in this important market.” For more information please visit: www.aquaterraenergy.com

Chevron has awarded Bilfinger Salamis UK a contract to provide a range of fabric maintenance services on the company’s North Sea platforms. The scope of the contract includes the supply of deck crews, rigging, coatings and insulation work, scaffolding, rope access, specialist cleaning and architectural services on Chevron’s Alba North, Alba FSU, Captain WPP, Captain FPSO and Erskine assets in the North Sea. The contract will run for three years and has two additional renewal options. Bilfinger Salamis UK has previously worked closely with Chevron on its Walk to Work fabric maintenance campaign, the refurbishment of accommodation on the Captain FPSO and annual platform turnarounds. Doug Sheal, Delivery Manager, Bilfinger Salamis UK, said: “The contract award builds on our existing track record, relationships and knowledge of the assets in a seamless manner without disruption to crews work plans or safety culture. Over the last decade we have continually expanded our service range to deliver added value on Chevron’s platforms.” For more information please visit: www.salamis.bilfinger.com

All variants of the electronic motor starter come with electronic wide-range overload protection with integrated phase failure detection to IEC60947. Overload protection is implemented in the two different tripping classes CLASS10 and CLASS10A. The electronic motor starter offers protection up to and including a motor current of 4A with the slower CLASS10 tripping characteristic, which allows the motor to be switched on frequently without any tripping from the motor protection. The user can set the motor current directly on the device. In combination with fuse elements, the electronic motor starter has a shortcircuit capacity of up to 50kA with type 1 co-ordination. This ensures suitability for universal use in industrial and machine building applications. It is designed mainly for use in materials handling and logistics systems as well as in packaging machines. Please visit: www.eaton.com

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com. Copy deadline is the first of the month for the following month – ie by 1 August for the September issue.

www.the-eic.com

July 2013

EIC Members News The XT600 operates in both tracked and free-fly, and has a depth capability of 2,000m. It is powered by 600 horsepower, delivering over 500 horsepower to the jetting functions for more efficient subsea cable burial. The XT600 buries and de-trenches subsea cable up to three metres deep. The system is designed with a light and compact frame, with strength capability that allows operations in up to sea state 6 on the Beaufort scale. The XT600 trenching system will be installed on the Global Marine vessel Cable Retriever. John Walters, Director of Maintenance, Global Marine Systems, said: “The new XT600 allows our cable ships to offer better protection for submarine cables by burying them deeper and faster than before. The XT600 represents a major enhancement to the level of service we can provide to our customers, and demonstrates Global Marine’s on-going commitment to provide the optimum technical solution to our customers.” For more information please visit: www.globalmarinesystems.com

Elfab has tested its Opti-Gard™ range of rupture discs to over one million life cycles. The new service life, over four times longer than previously achieved within the industry, is a significant improvement. Two years ago Opti-Gard™ became the first rupture disc to be protected by a threeyear warranty. Since its launch in 2004, the range has proved so robust and reliable in operation that Elfab offers a three-year warranty as standard on Opti-Gard™ discs supplied after 1 January 2011. Opti-Gard™’s improved service life and three-year warranty now allows customers to more precisely calculate how long their discs will last in service and to better plan their maintenance schedules following product installation. Opti-Gard™’s three per cent performance tolerance has allowed the optimisation of process pressures for many of Elfab’s customers. Apart from lowering re-supply costs, this has reduced disc inventories by up to 65 per cent. The Opti-Gard™ system comprises a reverse-acting rupture disc, a single-design holder with multi-flange compatibility and a non-invasive, ATEX-approved burst detector, Flo-Tel™+. Featuring an industry-leading tolerance of only three per cent across a wide range of burst pressures and a 95 per cent operating ratio, OptiGard™ offers the highest performance characteristics available for liquid, gas or vapour applications. For more information please visit: www.elfab.com

Multi-discipline subsea engineering and training firm Jee Ltd has continued to focus on improving standards across its business and has been awarded re-certification for the international standards ISO 14001 and OHSAS 18001 under the risk management foundation DNV (Det Norske Veritas). The company, which provides a range of subsea engineering expertise on a variety of disciplines, has been re-certified for ISO 14001 Environmental management, and OHSAS 18001 Safety management, and has transferred its ISO 9001 Quality management certification, held since 1995, to DNV to bring the three accreditations into one integrated business management system. The globally recognised accreditations are especially relevant to Jee as the company continues to expand its offerings into developing markets. Trevor Jee, Managing Director, said: “We are proud to hold these accreditations, as they endorse Jee’s dedication to maintaining the highest standards. This outward demonstration of our commitment to the environment as well as health and safety, represents our long-term focus on excellence and offering the best service possible to our customers. “With a large talent pool of experienced engineers and highly qualified course tutors, we set a high standard at Jee for the services we offer. These accreditations are synonymous with our standards, ensuring all of our customers and course delegates receive unparalleled service and Jee continues to be a company of choice for subsea engineering and training.” Jee is a multi-discipline subsea engineering and training company operating in the global oil, gas and renewables industries. Services span the whole life-of-field, from early concept studies, through FEED and detailed design, installation and construction support services, integrity management, operations and maintenance and decommissioning. Please visit: www.jee.co.uk

Thiess Pty has specified Emperor cable cleats from Ellis for the Queensland Curtis LNG (QCLNG), a coal seam gas to LNG project in Queensland, Australia. According to Ellis, its Emperor cable cleats can withstand possible 111kA peak system faults and their stainless steel construction means that they are ideal for use in harsh climatic conditions such as those experienced in Australia. The cable cleats are also easy to install and feature an integral LSF zero halogen polymeric liner and base pad that protects and cushions cables during short circuit conditions. Thiess Pty is carrying out the contract for the compression stations on the BG Group-operated project, which will see a two-train LNG processing facility built on Curtis Island, Gladstone to process gas delivered via pipeline from the Surat Basin in southern Queensland. For more information please visit: www.ellispatents.co.uk

Global Marine Systems has announced the addition of a ForumTM XT 600 trenching system to its subsea cable fleet. The XT600 is a purpose-built system that allows Global Marine to significantly enhance performance across the full range of demanding subsea cable activities including trenching and survey tasks. The equipment is the latest evolution to the Triton series of subsea cable maintenance vehicles, and is supplied by Forum Energy Technologies. www.the-eic.com

July 2013

EIC Members News

Rotork

Matt Crunden, cable management specialist, Legrand, discusses the importance of working with suppliers that have integrated their products into 3D modelling programmes: “While BIM (Building Information Management) has become a buzzword in the construction sector, in the oil and gas industry EPC contractors have been pioneering 3D modelling for some time, ensuring accurate specification and clash detection and collaborative working to avoid costly delays. “The UK’s home-grown software engineering expertise means that 3D modelling is now seen as a field in which GB Plc can lead the world. Moreover, the Government’s target of level 2 BIM implementation across all public sector projects by 2016 can only be a good thing for the oil and gas sector. “For Legrand, a track record of supply to the oil and gas sector has helped us become BIM ready. Legrand’s Swifts cable ladder and cable tray, Cablofil steel wire cable tray and Salamandre distribution and lighting trunking ranges have all been integrated into various plant design modelling systems – amongst them Intergraph PDS and SmartPlant 3D (including SmartMarine 3D), AVEVA PDMS and Everything 3D (E3D), Bentley BBES and BRCM, and Autodesk Fabrication CADmep. We’ve also built and launched an online platform to offer contractors, consultants and specifiers a complete overview of our 3D modelling capabilities and easy access to the systems on which they are available. What this actually means for EPC contractors is that technical data on Legrand’s cable management ranges is already pre-loaded into software packages, saving time on specification and removing the potential for errors.” Please visit: www.legrand3d.co.uk

Rotork Valvekits, the Rotork flow control group’s specialist valve mounting kit company, has been appointed as the UK stockist and distributor for the well established Centork range of valve positioners. Centork pneumatic positioners are designed for the operation of quarter-turn or linear actuated valves in accordance with a proportional control signal. The design utilises a robust aluminium enclosure and stainless steel components for long-term reliability in harsh operating environments. Standard features include simple, user-friendly zero and span settings and NAMUR interfaces for easy valve and accessory adaptation. Optional limit switches, position indicators, gauges for main and control signal pressure and electronic position transmitters can be fitted to meet the demands of most operating requirements, whilst a ‘smart’ positioner is also available, incorporating micro-processor based electronics for valve monitoring and diagnostics. Excellent operating performance delivers repeatability of less than 0.3% of full range, hysteresis of less than 0.5% of full range and 99% full range linearity. All models are available with ATEX certification for operation in hazardous areas. The Centork appointment, which will enable off-theshelf delivery of many products to customers in the UK, is the second distributorship agreement that Valvekits has announced in recent weeks. In April the company also announced an exclusive stockist and distributor appointment for the industry-leading Pneumatrol Namur range of solenoid valves. Please visit: www.rotork.com

Lloyd’s Register’s Global Technology Centre in Singapore held its inaugural Offshore Technical Committee recently with representatives from national and international oil companies, EPC contractors, owners, operators, fabricators, shipbuilders, equipment vendors and representatives from a number of academic and research organisations. The members took part in a series of networking opportunities and technical workshops but also crucially approved two Lloyd’s Register rule-sets; The Floating Offshore Installations at a Fixed Location 2013 Rules and the Mobile Offshore Unit 2013 Rules. The latest developments in the Lloyd’s Register rules set appropriate standards for design, construction and lifetime maintenance in the oil and gas, and maritime sectors, providing all the information needed for classification purposes. Seventeen different nationalities attended the event in Singapore. At the heart of the committee is a shared vision to create and share bestpractice and knowledge, and to discuss implications of upcoming legislation on the industry as well as technology developments and improvements in rules. The next meeting is planned for Rio de Janeiro in 2014. For more information please visit: www.lr.org www.the-eic.com

July 2013

EIC Members News Client orders can stipulate that sub-suppliers are in accordance with the sub-suppliers’ list submitted by the supplier and customer or third-party inspections can be made at the sub-suppliers’ facilities. “The final certification and documentation submission to the client must incorporate all of the documents which validate all component parts as two of our recent projects demonstrate,” added Jon Mason. Trouvay & Cauvin and Viar Valvole supply valves to BP In Amenas in Algeria on a JV between two IOCs, Aibel UK Limited and Sonatrach, where conditions of supply for duplex and super duplex SS are extremely strict and material traceability is to BP standards. All materials must be sourced from European manufacturers and be compliant with Norsok M650. The material requirements are severe including ferritescope examination to ASTM E562, corrosion testing to ASTM A923 Method C and charpy impact testing in both transverse and longitudinal orientations. Similarly challenging conditions apply on the BP Chirag oil project, an offshore topsides project in the Caspian Sea. Trouvay & Cauvin works with both the EPC contractor KBR in the UK and the operator AIOC in Baku to supply filters, strainers, piping spools and flame arresters in duplex and super duplex SS from CDB Engineering and Elmac Technologies. All materials are sourced from European manufacturers with material testing requirements similar to the In Amenas project. For more information please visit: www.trouvaycauvin.com

Severn Glocon has been awarded a contract to supply 536 engineered control valves for the processing plant on the Ichthys project onshore LNG facilities. Included in the contract are cryogenic valves of up to 42 inches bore, weighing around 20 tonnes, as well as valves with pressure ratings of up to 2,500 ANSI. This is the largest and one of the most technically challenging contracts in the firm’s 50 year history. The valves will deal with volatile fluids at temperatures as low as -160°C, and they need to handle extreme requirements surrounding cryogenics, thermal dynamics and velocity control. Severn Glocon’s technical specialists have developed bespoke designs for the valves, and they are being manufactured across the group’s Gloucester and Chennai facilities. Valves for some of the most demanding applications, such as compressor anti-surge and gas-to-flare control, will benefit from Severn Glocon’s customised multilabyrinth trim. This enables precise control of fluid velocity, minimising stress placed on components to enhance performance and reliability, as well as extending valve life and lowering noise levels. Engineering, Procurement & Construction (EPC) activities for the project are being undertaken by JKC Australia LNG Pty Ltd (JKC), a joint venture between JGC Corporation, KBR and Chiyoda Corporation. The project is now in the construction phase and the first valves are being shipped. Manufacture and supply of valves will continue into 2014. Roger Spiers, Commercial Manager, Severn Glocon, said: “The scope, scale and harsh demands of this project command highly-engineered, technically advanced hardware. Our brightest engineers have been focusing their efforts on developing breakthrough valve solutions. We have also invested in extended in-house cryogenic testing facilities to optimise delivery times.” The Ichthys LNG project is a Joint Venture between INPEX group companies, major partner TOTAL group companies and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. More information is available at: www.severnglocon.com

www.the-eic.com

TÜV Rheinland

Trouvay and Cauvin uses manufacturers that have a supply chain which complies with current market restrictions for sourcing and supply of duplex materials; for example CDB for filters, strainers and SP items and Viar Valvole, for trunnion-mounted and floating ball valves. Jon Mason, Trouvay and Cauvin, explained: “International oil companies examine the total supply chain much more closely. As a result manufacturers of valves and SP products must ensure and validate the appropriate sourcing of materials.” Quotations to IOCs need to show which sub-suppliers will be used and that these sub-suppliers maintain the necessary approval and certification with bodies like Norsok.

Hitachi Power Europe has awarded TÜV Rheinland an inspection testing contract for nickel-based materials to be used in high-efficiency coal-fired power plants. TÜV Rheinland will assess the basic suitability of new materials for highly-stressed pipelines at steam temperatures of over 7000C. The project, European Network for Component Integration and Optimization (ENCIO), financed with the support of the European Union, will increase coal-fired power plant efficiency. Inspections will be carried out at power provider Enel’s test facility in Fusina, northern Italy. For more information please visit: www.tuv.com

July 2013

EIC UK, Overseas & Training

UK, Overseas & Training July 2013 3 Corporate Entertainment: Scotland Annual Golf Day Trump Golf Links, Aberdeen 3 Technical Workshop: Introduction to Pipe Supports Carpenter & Paterson, Welshpool 5 Industry Overview: Fundamentals of Subsea Denmore Technologies, EIC London 8 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 9 Industry Overview: Fundamentals of Refining and Petrochemicals WorleyParsons, EIC London 10 Corporate Entertainment: Cricket and Networking The Kia Oval, London 10 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Walsall 11 Technical Workshop: Introduction to a Nuclear Power Station British Energy, Dungeness B, Kent 11 Technical Workshop: Introduction to Shale Gas EIC Billingham 15 Technical Workshop: Inroduction to FPSOs Denmore Technologies, EIC Aberdeen 16-17 Management Course: Introductory Certificate in Project Management Parallel Project Training, EIC London 17-18 HSE Training: Minimum Industry Safety Training (MIST) Woodside Safety & Training, nr Grimsby 18 Management Course: Negotiation Skills Made to Measure Training, EIC London 18 Management Course: Technical Report Writing British Council, EIC Singapore 18 Technical Workshop: Introduction to FPSOs Rio de Janeiro August 2013 1 Technical Workshop: Introduction to FPSOs Denmore Technologies, EIC London 6 Industry Overview: Fundamentals of Upstream Oil & Gas Offshore EIC London 6 Technical Workshop: Critical Marine & Logistics Operations Rio de Janeiro 7 Industry Overview: Fundamentals of Oil & Gas EIC London 8 Technical Workshop: Critical Marine & Logistics Operations Rio de Janeiro 14 Industry Overview: Fundamentals of LNG EmJay LNG, EIC London 15 Industry Overview: Fundamentals of Oil and Gas EIC Singapore 16 Corporate Entertainment: The Glorious 16th Clay Pigeon Shoot Seals Cove Shooting Ground, Aberdeen 23 Technical Workshop: Introduction to Downstream Rio de Janeiro September 2013 2 Industry Overview: Fundamentals of Gas Processing and LNG KBC, EIC Singapore 3 Management Course: Time Management Made to Measure Training, EIC London 9 Industry Overview: Fundamentals of Nuclear EIC London 10 Technical Workshop: Introduction to Nuclear New Build EIC London 11 Management Course: Tendering for Success Rothera Group, Kirkhill Industrial Estate 12 Management Course: Why do we need Contracts? Costain, EIC London 16 Technical Workshop: Introduction to Shale Gas EIC London 17 Management Course: Presentation Skills Kirkhill Industrial Estate, Aberdeen 18 Technical Workshop: Introduction to Trace Heating Thermon, EIC Billingham 23-24 Management Course: The Effective Manager Inspirit Training, EIC London 25 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 25 Industry Overview: Fundamentals of Oil and Gas International House, Dubai 26 Business Presentation: Opportunities with Chevron Hilton Treetops Hotel, Aberdeen October 2013 1 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com

www.the-eic.com

July 2013

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2013

Status

15-20 September Overseas Delegation to Colombia

Booking Now

7-11 October Overseas Delegation to Mexico

29-31 October OTC Brasil

Rio de Janeiro Booking Now

10-13 November ADIPEC

Abu Dhabi

Booking Now

13-15 November Oil & Gas Indonesia (OGI)

Jakarta

2 Stands Remaining

18-22 November Overseas Delegation to Australia

Booking Now

22-28 November Overseas Delegation to Saudi Arabia and Qatar

24-29 November Overseas Delegation to Venezuela

Booking Now

5-8 December Basra Oil & Gas Conference & Exhibition Basra

2014

2-7 February Overseas Delegation to Libya

9-5 February Overseas Delegation to Mozambique and Tanzania

16-21 February Overseas Delegation to India

19-21 February Australasian Oil & Gas Exhibition (AOG) Perth

Booking Now

23-28 March Overseas Delegation to Malaysia

EIC Members have Priority

5-8 May Offshore Technology Conference (OTC)

Houston

For further information on Exhibitions & Delegations please contact: events@the-eic.com

National Events 2013

Status

Aberdeen

Sold Out

Manchester

Stand Bookings Now Open

3-6 September EIC Member Group @ Offshore Europe

12-13 November EIC Connect Energy

For further information on National Events please contact: nationalevents@the-eic.com BOOKING NOW

www.the-eic.com

July 2013

EIC National Events

National Events

Event Reports All-Energy 2013 22-23 May 2013 Aberdeen Early reports indicate that over 10,000 visitors attended this year’s exhibition which took place in Aberdeen on 22 and 23 May. As a free-to-attend event, showcasing the complete range of renewable and sustainable technologies and with a world-class multi-stream conference alongside, All-Energy clearly demonstrated itself as the place for busy people to come to do business. The EIC took its first members group pavilion at the event and word quickly spread that members and non members could visit to take a load off, grab a coffee and meet with business associates. Members took advantage of live EIC DataStream demonstrations courtesy of Matt Smith and many non members enquired about our member companies at the event and how they could join. As a result and with positive feedback from exhibitors the EIC has secured its prominent stand space for 2014. If you are interested in joining the group, please contact me for more information.

Forthcoming Events Offshore Europe 2013 3-6 September 2013 Aberdeen After a hugely successful show in 2011, the Energy Industries Council will be hosting 43 UK companies at Offshore Europe 2013 in the EIC Pavilion. Over the last 40 years, the UK energy supply chain has developed advanced products and services for oil and gas operations in the challenging waters of the North Sea, and has been applying this expertise for many years now across the globe. UK oil and gas companies have an excellent reputation for high-end engineering and innovative technologies, many of which will be on show in the EIC Group. We are delighted to be at Offshore Europe again to showcase the wide variety of solutions the UK supply chain has to offer. With the North Sea continuing to see increased activity, we look forward to helping our members promote the very best in innovation and manufacturing excellence. With our EIC DataStream figures showing renewed optimism in the European offshore sector, our exhibitors are looking forward to a busy show. EIC Members can visit the EIC Lounge to find out more about our activities and grab a coffee. Live demonstrations of the new BETA function of EIC DataStream will be demonstrated across the 4 days, please visit us in Hall 3, stand B64.

EIC Connect Oil, Gas & Power 2013 4 June 2013 Abu Dhabi Many of the Middle East’s leading oil, gas and power companies gathered at the St Regis Saadiyat Island Resort in Abu Dhabi on 4 June for EIC Connect Oil, Gas & Power 2013. Data collected by the EIC shows that there are over 670 oil and gas projects alone proposed or under development in the MENA region, representing a total estimated investment of US$1.25 trillion. In addition, there are a further 216 active or future power projects worth a total estimated value of US$267 billion. This scale of activity underlines the substantial new market opportunities for UK businesses that the region continues to offer, which was the focus of EIC Connect Oil, Gas & Power 2013. Speakers from major companies, who operate at the frontline of the oil, gas and power industry in the Middle East took part in a programme of supply chain briefings and conference sessions focusing on the opportunities emerging from the region’s energy industry today. One of the sessions: ‘Iraq: a land of cautious opportunity’ included panelists from SNC-Lavalin, Genel Energy, Shell, Parsons Brinckerhoff and Olive Group, who highlighted the significant global capital being invested into oil and gas projects across Iraq and Kurdistan, alongside the challenges of operating in the country. In addition to the conference and supply chain briefings, 36 companies exhibited the latest products and technologies and over 300 delegates attended the event.

EIC Connect Energy 2013 12-13 November 2013 Manchester Central

This unique UK event returns to Manchester. The EIC will look to maximise the interests of UK companies further across the international power sector by including the emerging renewables market, transmission and distribution and decommissioning at the 2013 event, hence the name change to EIC Connect ‘Energy’ to encompass all aspects of the ever changing energy mix. Many leading companies have already signed up to showcase their capabilities to the major speaker companies expected to attend. www.the-eic.com

For more information, please contact: Sarah Lansdell, Head of National and UK Events Tel +44 (0)1642 379 974 Email sarah.lansdell@the-eic.com 14

July 2013

EIC UK News

News from our UK offices

Business Presentation: Opportunities with SNF Oil and Gas 16 July 2013 EIC Billingham SNF Oil and Gas has secured third round RGF funding to assist with the building of a new facility to produce Polyacrylamide Emulsion, predominantely for use in the oil industry and SNF has received permission to have hazardous materials on site, which are used to make its products. The company, which is developing part of the old ICI site on Belasis Avenue in Billingham, has already received full planning consent and COMAH PC approval. The project is planned to be up and running by late 2014, creating 249 jobs when at full planned capacity within the next 10 years. The company has appointed engineering design firm KHI to oversee the development of this new factory making chemical products for the onshore and offshore oil and gas industries and water treatment plants for all industries. The site will be one of the largest SNF emulsion production facilities capable of producing up to 500,000 tonnes of emulsion polymer per year. SNF Oil and Gas Ltd is a wholly owned subsidiary of SPCM UK Holdings Ltd, a member of the world’s largest manufacturer of organic coagulants and flocculants. This event will give attendees an opportunity to: • Learn more about the SPCM Group as a worldwide manufacturer; • Understand how the Group works with local and regional supply chains; • Assess how your company may be able to become involved with this long term project. Contact: jennifer.hole@the-eic.com

Forthcoming Events

Business Presentation: Opportunities with Magnox 2 July 2013 Hallmark Hotel, Manchester Magnox, owned by EnergySolutions, is the management and operations contractor responsible for ten nuclear sites and one hydroelectric plant in the UK. Under contract to the site owner, the NDA, the company is responsible for electricity generation at Wylfa and Maentwrog, defuelling at Chapelcross, Oldbury and Sizewell A, and the decommissioning of Hunterston A, Berkeley, Bradwell, Dungeness A, Hinkley Point A and Trawsfynydd. Decommissioning a nuclear power station is a complex process. The work involved is both wide ranging and technically challenging. With such a large scope of work, Magnox has developed an approach known as Programmisation. This approach means the scope of work that needs to be undertaken can be split into specific programmes, each with a clear focus and plan of work. The speaker, John Vieth, Supply Chain Development Manager, will give attendees the opportunity to hear about the group’s activities. He will also look at how the business proposes to work with regional supply chain companies. Contact: jennifer.hole@the-eic.com Corporate Entertainment: Cricket and Networking 10 July 2013 The Kia Oval, London We are delighted to introduce a new networking event at the Kia Oval this summer. EIC members and their guests will be treated to a delicious BBQ buffet and an hour of free drinks in a private box with VIP seating outside to enjoy the thrilling LV County Game between Surrey and Nottinghamshire. This event gives members a perfect opportunity to network with fellow EIC members and entertain their guests while absorbing the atmosphere of the historic Kia Oval. Surrey County Cricket Club was formed in 1845 and is one of the most historic sports clubs in the United Kingdom. Winning their first County Championship in 1890, they have since lifted the most prestigious trophy in English domestic cricket nineteen times, most recently in 2002.

Business Presentation: Opportunities with Larsen & Toubro 19 September 2013 EIC Conference Suite, London Larsen & Toubro is a fully integrated EPC provider for the complete hydrocarbon chain in the upstream as well as mid/downstream sectors. Being the third largest manufacturer in India and having thousands of multidisciplined engineers, it is well placed to serve the needs of the industry. A recent focus on internationalisation has led to requirements for a global supply chain qualified to numerous international codes and standards; they are currently executing several EPC projects in the Middle East and typically buy over US$600 million/year of subcontracted items. Phil Emsley, Head of Business Development – Europe, will detail Larsen & Toubro’s current activities, procurement processes and current procurement requirements to EIC members at the EIC Conference Suite in London in September. Further details will be available shortly.

Sponsorship The EIC is always looking for ways to help members promote their company within the energy industry and one of the great opportunities to gain exposure is to sponsor one of the EIC events. For further information on sponsorship of this event and help to raise your profile, please contact: daisy.crisp@the-eic.com

The

10th October 2013 NATURAL HISTORY MUSEUM

EIC National Dinner

www.the-eic.com

www.the-eic.com/nationaldinner 15

July 2013

EIC UK News Business Presentation: Opportunities with Sirius Minerals Date to be confirmed Aldwark Manor Hotel, near York Sirius Minerals Plc is a mining and exploration holding company specialising in the development and delivery of major potash related projects and is listed on the London Stock Exchange’s AIM market. Sirius Minerals is currently focused on the development of the world’s largest and highest-grade polyhalite deposit in the UK, the York Potash Project. The speaker from Sirius Minerals will advise members about the company activities and how the business proposes to work with regional supply chain companies. Contact: jennifer.hole@the-eic.com

Opportunities in Canada Road Show London 22 October 2013 Northern Region 23 October 2013 Aberdeen 24 October 2013 Canada is the fifth largest oil producing country in the world, and with over 300 active and future projects worth over US$600 billion currently being tracked on EICDataStream, the Canadian oil and gas market is crying out for additional European capabilities. More details will be available soon, please contact: daisy.crisp@the-eic.com Visit: www.the-eic.com/events

Event Report

Corporate Entertainment: Northern Region Golf Day 15 May 2013 Rockliffe Hall, near Darlington Thirty two players across eight teams set out to play the 4-Ball Stableford competition. The players made their way around the tough course, before returning to the club house for the prize giving which was followed by a welldeserved two-course dinner in the Grassholme Suite. Prizes were awarded as follows: Winning Team (with a score of 77 ): The Xervon Palmers team was victorious on the day and was awarded the Flexitallic Challenge Bowl Trophy 2013, champagne and vouchers to spend at Rockliffe Hall. Nearest the Pin: Dave Clarke of the Xervon Palmers team, winning champagne, vouchers to spend at Direct Golf Store and a golf umbrella donated by Carpenter & Paterson. Longest Drive: Won by Derek Wells of the Yokogawa team, who collected champagne, Direct Golf Store vouchers and a golf umbrella donated by Carpenter & Paterson. Wooden Spoon Prize: Won by Legrand/Carpenter & Paterson, winning a bottle of wine and a wooden spoon each, kindly provided by Legrand. We extend our thanks to those companies who generously sponsored prizes.

Corporate Entertainment: EIC National Dinner 10 October 2013 Natural History Museum, London Over 65% already sold! We expect the EIC National Dinner to be a sell-out event, with over 500 people in attendance and an audience network of procurement managers, lead engineers and representatives from the whole of the global energy industry. The 2013 event is going to be bigger than ever and will take place within the beautiful and iconic Natural History Museum in central London. Under the watchful eye of the famous diplodocus, guests will be treated to the soulful vocals of pianist Kyan and witty anecdotes from world-famous rugby star Will Greenwood, all throughout a drinks reception and sumptuous three-course meal. Do not miss out – BOOK TODAY! Contact: daisy.crisp@the-eic.com Visit: www.the-eic.com/nationaldinner EIC Award for Supply Chain Excellence The closing date for the EIC Award for Supply Chain Excellence has now passed and we are delighted to have received some excellent entries. The Judging Panel is currently sifting through the entries to agree on a shortlist which will be announced shortly. The judges are:

Raising your Company Profile within the Energy Industry

• Carol Sweeney, Director for Advanced Manufacturing, UKTI; • Derek Allen, Lead Technologist (Energy Generation & Supply), Technology Strategy Board; • John Watts, Director of Thermal Power Generation, Centrica; • Norman McLennan, Head of Contracting & Procurement (Europe E&P), BG Group International Limited; • Dr Paul Hollinshead OBE, Director of Science and Innovation, DECC; • Rod Dean, Managing Director, BCECA.

The EIC offers members several opportunities to help raise their profile within the industry, from advertising opportunities to sponsorship. Some of the most sought after are the opportunities to reach out to a global market and to gain maximum exposure for our members’ brands. The ideal way to achieve both is by partnering with the EIC at the National Dinner which attracts over 500 guests representing the global energy market. The EIC will create bespoke and exclusive packages for supporters, including elements such as sole branding (both within the venue and on National Dinner related marketing), advertising options and on-going activities related to the EIC website, event publications and email campaigns.

Details of the shortlist will be announced within the next couple of weeks and the winner will be revealed at the 2013 EIC National Dinner.

For more information, please contact: charlotte.hust@the-eic.com daisy.crisp@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

EIC Overseas Exhibitions & Delegations Following a fantastic turnout last year, the EIC in partnership with UKTI hosted a breakfast meeting on the final day of the exhibition. The topic this year was ‘Opportunities in Engineering and Offshore Construction in the Brazilian Oil & Gas Sector’. Steven Veraart, Sales Director, SBM Offshore discussed ‘SBM Offshore, Key Floating Production Contractor in Brazil’ while Dr Ruben Val, Business Director, Mendes Junior Trading and Engineering, spoke about ‘Building 2 FPSOs in Brazil’. Clarisse Rocha, EIC Regional Manager, South America started off the breakfast discussing ‘High Value Opportunities in the Brazilian Oil and Gas Sector’. The exhibition provided members of the UK supply chain with excellent exposure to existing and new customers resulting in a host of new business leads, and some confirmed orders.

Overseas Exhibitions Exhibition Report Offshore Technology Conference 2013 8-9 May 2013 Houston, Texas The EIC is pleased to announce another hugely successful year at OTC 2013. The EIC returned for the 13th year to host 53 companies in the UK Pavilion, spanning 900m2. OTC 2013 saw 104,800 attendees, making it the second highest visited show in history, with attendance at a 30 year high, up 17% from 2012. With a total of 641,350ft2, and 2,728 exhibitors from over 40 countries, OTC proved that it is still growing. OTC continues to be an important showcase for the UK which is globally recognised as a leader in offshore products and services. Houston remains the UK’s third largest US channel for international trade, with Texas alone importing more from Britain than any other state in America. With its new design and fantastic position the UK Pavilion was buzzing with activity throughout the exhibition, with the UK lounge acting as central meeting point for exhibitors and their clients and EIC members throughout the show.

“Great show, organised to a very high standard and the team did an excellent job as usual.” John Cunliffe, Dunlop Oil and Marine Systems

Overseas Delegations Forthcoming Delegation Overseas Delegation to Mexico 7-11 October 2013 Mexico City and Villahermosa The EIC is managing an oil and gas overseas delegation to Mexico City and Villahermosa. The largest trading nation in Latin America, Mexico plans to invest US$20 billion per year up to 2025 through the state oil company Petróleos Mexicanos (PEMEX), one of the largest oil companies in the world and the sole producer of crude oil, natural gas and refined products in Mexico, being the most important source of government income. The aim is to maintain production in declining fields, develop a more efficient exploitation of proven reserves, a move towards deep-water reserves and to increase security and minimise environmental impact. Mexico is the world’s seventh largest oil producing country with an approximate production of 2.75 million barrels per day and the world’s fifteenth largest oil proven reserves. The country’s shale gas potential resources are considered to be among the highest in the world and their development will need the technology and expertise of world class energy companies. UK company Petrofac became the first foreign company to operate state oil fields in Mexico for more than 70 years when it was awarded two integrated services contracts by Pemex, to develop the Magallanes and Santuario blocks, located in Tabasco State. Petrofac has since been awarded two further contracts to develop the Pánuco and Arenque contract areas. With the new contract schemes there are opportunities for British companies to seek participation in Mexico’s oil and gas industry.

This year the UK National Pavilion hosted two sponsored networking drinks receptions. Global Marine Systems hosted a networking drinks reception on Tuesday 6 May. Paramount Transportation Systems and Homecorp sponsored networking drinks on Wednesday 7 May. The EIC would like to thank Global Marine Systems, Paramount Transportation Systems and Homecorp for two extremely successful events, which provided unparalleld networking opportunities for our exhibitors and their guests. Many of the UK group were once again delighted to attend the UK reception at the Hilton Post Oak hosted by UK Trade & Investment. With an attendance of over 800, this was yet another fantastic networking event, which enabled UK companies to meet their relevant partners from the USA and beyond. www.the-eic.com

For further details or to join the delegation please contact: Laura Tavernor, Overseas Events Manager Tel +44 (0)20 7091 8618 Email laura.tavernor@the-eic.com 17

July 2013

EIC Middle East News

Middle East News

Discussions are now underway to see what options are available to deliver a reception around what we know will be a busy period. One event that we are endorsing is a social occasion taking place on the Thursday before, 7 November. Organised by the originators of the Oil Baron’s Ball, The Big Oilfield BBQ promises to be an excellent pre-event networking evening. More information can be found at the event website: http://thebigeventcompany.me/bbq.html With the summer months now upon us as well as Ramadan kicking off later this month, one would expect business activity plus the number of visitors to slow down but that has so far not been the case. Notwithstanding the excellent turn out for our Cheese and Wine Fondue night, other members who we have visited or otherwise have met at the office include Gordon Blackwood and Steve Pigg from SafeHouse, Nicky Mendoza-Wilson from Move One, Claire Peddle of Control Risks, Chris Bolton who is with Inspection Verification Bureau and who was accompanied by Kay Ruessel of GL Noble Denton, Audrey Sequier from AVEVA Solutions, Vikram Nanda and Alex McDonnell from NES Global, Chris Ripley from Edinburgh International, Martin Bolton from Aquaterra Energy plus Giovanni Pacheco, the CEO of Isolatek visiting us from the US HQ along with Saju Joseph, MD Middle East and Blany D’Cunha from their Dubai operation. Finally, it was a pleasure to be at the official opening ceremony of Rotork’s new Middle East operation. Their CEO Peter France cut the ribbon along with Edward Hobart, HM Consul General who was accompanied by John Pratt, Middle East Director and Ashley Watkins, Business Development Manager for the Middle East. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News The geo-political landscape in the Middle East remains unsettled. The nucleus of the uncertainty continues to be the situation in Syria. The current government’s strongest regional ally, Iran is going to the polls to elect a new government and the internal politics currently underway makes it difficult to predict a positive outcome. In the meantime, Iran’s surreptitiously funded Lebanon based militia is now openly fighting alongside Syria government forces which leaves the ‘meat in the sandwich’ country, Iraq watching its borders on both fronts, while continuing to face its own internal challenges with the recent upsurge in attacks targeting government institutions across all three regions, with the northern region of Kurdistan continuing to be the only beacon of positive light. Against this uncertainty, business continues to roll on and soon after our excellent Iraq focussed conference session at EIC Connect last month, we undertook a UK Government sponsored visit to all three areas of Iraq to assess at first-hand how EIC members can try and mitigate the various challenges that exist in order to take advantage of opportunities that continue to arise from the Iraq market. It is such a tragedy that the environment in Kurdistan cannot be replicated elsewhere but that unfortunately is the current price of local politics and we remain observant as to any progress that is made internally to overcome those obstacles. In the meantime, we are endorsing the latest Iraq Mega Projects Conference & Exhibition taking place on 30 September to 2 October and will continue to make preparations to host a UK Pavilion at Basra Oil & Gas in December, the details of which will be posted on the events section of our website: http://www.the-eic.com/Events/FullEventsDiary.aspx A not dissimilar situation appears to be coming to light in Libya. At the time of our overseas delegation at the end of January, we were confident that things were moving in the right direction and the market would become a fertile source of business within the next 18 months once the new Government was formed and stable. However, since then there has been a number of de-stabilising incidents that makes one question that observation. Nevertheless, we remain cautiously optimistic and continue to plan for another overseas delegation there early next year. Other markets being considered for future delegations include Qatar, Azerbaijan, Bahrain and Saudi Arabia but in the meantime, please do not hesitate to let our Overseas Events team know of any other markets that you believe you could benefit from if we were to put together an overseas delegation. Finally on events, it is particularly pleasing to note that our space for this year’s ADIPEC exhibition has sold out. Given that the organisers changed the show from a bi-annual to an annual show, we were left considerably reticent as to whether or not this would be a good move but its nice to be proved wrong occasionally.

Regional Comment Larsen and Toubro wins contract in Saudi Arabia Larsen and Toubro (L&T) has won a contract from Saudi Aramco to build facilities, including a gas processing plant to develop the Midyan gas field in Saudi Arabia. Gas produced from the Midyan field is expected to be used by power plants in the country and generate electricity. L&T will construct the gas processing plant with a capacity of 75 million cubic feet per day of non-associated gas and 4,500 barrels of condensate per day. The project will include building two pipelines of 98km that will supply gas and hydrocarbon liquids to a power plant near Duba. New discovery offshore Israel Noble Energy has made a natural gas discovery at the Karish prospect offshore Israel. The Karish-1 well was drilled some 75km north west of Haifa to a final depth of 4,790 metres below sea level. The well encountered a natural gas bearing strata of around 60 metres. Noble stated that discovered gross resources, combined with the de-risked resources in an adjacent fault block on the license, are estimated to range between 1.6 and 2 trillion cubic feet (Tcf) with a gross mean of 1.8 Tcf.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

www.the-eic.com

July 2013

EIC Asia Pacific News

Asia Pacific News

Regional Comment

Indonesia’s first shale gas contract PT Pertamina will tap into shale gas exploration in a bid to discover unconventional natural gas amid dwindling crude oil production. The state-controlled company signed the production-sharing contract for the Sumbagut block which lies in North Sumatra, committing to invest US$7.8 billion throughout the contract period. Pertamina has been given six years for its first exploration phase and four years for a second exploration phase. The Sumbagut block is believed to hold 18.56 trillion cubic feet (tcf) of shale gas. Indonesia as a whole is estimated to hold 574 tcf of shale gas throughout Sumatra (233 tcf), Kalimantan (194 tcf), Papua (90 tcf) and Java (48 tcf). The remaining 9 tcf is spread across other parts of the archipelago.

Office News

Understanding Contracts on 24 June proved to be popular and attendees gave positive feedback on the course, in particular: the subject of contracts within the management of commercial risk; the correct contract strategy for achieving a successful project and the various terms and conditions of a normal contract for suppliers to the oil and gas industry. We are looking at scheduling another session in the next quarter. With the Video Conference facility fully-functional, we are currently in discussions with Petronas Vietnam, PTSC (Mechanical & Construction) and PV Shipyard to organise business presentations to share business opportunities with them via the VC. Look out for more details coming soon.

New Zealand 2013 round New Zealand has launched its 2013 licencing round, which includes frontier offshore acreage in underexplored basins and onshore permits in the Taranaki basin. This will involve 189,000 square kilometres of offshore territory and more than 1,500 square kilometres of onshore areas. The offshore acreage is in three separate geographic areas – the Reinga-Northland basins off the north-west coast of the North Island, the Taranaki basin, and the Great South and Canterbury basins off the south-east coast of the South Island. There are three onshore blocks in the Taranaki basin, and two onshore permits in the under-explored East Coast basin.

Forthcoming Events Management Course Technical Report Writing 18 July 2013 British Council, EIC Singapore This course, with the British Council, will look at developing and improving technical report writing skills. There will be practical writing exercises during the course and attendees can expect to learn the features of and differences between various types of technical documents, and translate complex and innovative ideas into clear, logical and technically accurate documents.

New generation Sayaendo LNG carrier Mitsubishi Heavy Industries (MHI) has signed an agreement with Mitsui OSK Lines Ltd to build a Sayaendo series new-generation liquefied natural gas (LNG) carrier. Sayaendo series ships feature a unique structure that integrates the LNG tank cover with the ship hull, resulting in significantly improved fuel consumption and maintainability. The Sayaendo features a peapod-shaped continuous cover integrated with the ship’s hull in lieu of conventional hemispherical covers. This innovative configuration enables reductions in size and weight while maintaining the ship’s overall structural rigidity. Starting from 2020, the vessel will be used mainly for transportation of LNG produced by the Ichthys LNG project in Australia for Osaka Gas Co and Kyushu Electric Power Co.

Industry Overview Fundamentals of Oil and Gas 15 August 2013 EIC Singapore The one-day training course will focus on the upstream sector and aims to give participants a basic understanding of the processes of exploration and production. In addition, the course will offer an appreciation of the importance and place of the upstream sector in the broader oil and gas industry. With nearly 40 years of direct experience in international exploration and production in Asia, Bob Dook will share his knowledge and experiences of upstream oil and gas.

Industry Overview

Myanmar’s first solar plant Green Earth Power (Thailand) has signed a Memorandum of Understanding with Myanmar’s Ministry of Electric Power for the country’s first solar power plant. Estimated to cost US$275 million, the 210MW solar power plant would be the world’s third-largest when completed in two years time. Located on a 300 hectare land plot in Minbu City in the Magway region, the plants will have the capacity to produce up to 350 million kilowatt-hours. This project is in line with the government’s aim to increase electricity production from the current 2,500MW to 30,000MW by 2030.

Fundamentals of Gas Processing and LNG 2 September 2013 KBC Advanced Technology, EIC Singapore The course will address the fundamental technical aspects of LNG and gas processing plants. Different types of technology for natural gas liquefaction and processing will also be explored. If you need any help or advice in the region or for more information about upcoming events, please contact us: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

EIC China News

China News

CNOOC, Shell NZ plan New Caledonia exploration A proposed 50:50 joint venture between Shell New Zealand and China National Offshore Oil Corp is to start preliminary exploration work in a deepwater area of the virtually unexplored New Caledonia Basin. Shell NZ said that it was planning 2-D seismic exploration and other ‘non-invasive research techniques’ to investigate the seabed and geology of the prospect area, subject to a permit being granted. The New Caledonia Basin straddles New Zealand’s 200 nautical mile (370km) exclusive economic zone (EEZ) and extends into its extended continental shelf area, taking in the deep ocean that separates New Zealand from the New Caledonia archipelago, which lies 2,000km from Sydney.

Regional Comment ABB secures transmission contract ABB has won an order worth around US$150 million to supply converter transformers, direct-current filter capacitors and key components for converter valves for what it describes as the world’s highest capacity power link. The 800 kilovolt ultra-high-voltage connection will run for 1,670 kilometres from Yibin in Sichuan province to Zhejiang province on the east coast. Once completed in 2014, the 8,000MW Xiluodu-Zhexi link will be able to transmit 40TWh/year of electricity.

Nexans secures Beijing contract France’s Nexans has been awarded a US$14.3 million contract by China State Grid Corporation to supply a high-voltage power cable network. The system ‘will help the Beijing Electric Power Corporation support the future development and extension of the power transmission infrastructure in China’s capital city’. The new link in the Haidian district will be Beijing’s first intra-city installation of 500 kilovolt cables using cross-linked polyethylene insulation. Nexans will design, manufacture and install a seven kilometre circuit laid in an underground tunnel, including the supply of all related high-voltage power accessories such as joints and terminations.

CNOOC, BG Group agree long term LNG supply China National Offshore Oil Corp (CNOOC) has signed a deal with BG Group for the long-term supply of LNG as well as a 40% stake in the Queensland Curtis LNG (QCLNG) project in Australia. Under the terms of the agreement, the state-owned major will receive 5 million tonnes per year of the fuel for 20 years beginning in 2015. A second agreement will see CNOOC take a 40% equity interest in Train 1 of the development, raising its stake from 10% to 50% at a cost of US$1.93 billion. A number of BG’s upstream interests in coal-seam gas (CSG) tenements in Queensland are also included, with CNOOC set to receive further interests in the Walloons Fairway region of the Surat Basin and BG’s upstream blocks in the Surat and Bowen Basins.

MHI delivers reactor equipment Japan’s Mitsubishi Heavy Industries (MHI) has completed the shipment of 16 turbine rotors for four nuclear reactors. MHI said that the equipment for the four AP1000 reactors included 12 low-pressure and 4 high-pressure units. The Mitsubishi Electric Corporation supplied the generators for the No 1 unit at both Sanmen and Haiyang, while the Harbin Electric Machinery Company supplied the generators for the No 2 units at both plants. The plants at Sanmen in Zhejiang province and at Haiyang in Shandong province are being built by Sanmen Nuclear Power Co and Shandong Nuclear Power Co respectively.

Black & Veatch, Chemtex begin LNG production Black & Veatch, an engineering, consulting, construction and operations company, and Chemtex International Inc have begun production at the Bazhou liquefied natural gas facility near Beijing for the Hebei Huaqi Natural Gas Company. The Bazhou LNG facility is designed to liquefy a nominal 1 million normal cubic metres per day, or 37 million standard cubic feet per day, of feed gas. This is the eighth LNG facility that the Black & VeatchChemtex alliance has completed in China since 2008. The team has an additional 10 projects underway across the country. All of these facilities feature Black & Veatch’s patented PRICO LNG technology.

Metso gets Huadian Jurong contract The equipment manufacturer Metso has said that Jiangsu Huadian Jurong Power Co has chosen its automation systems for use in the two 1000MW coal-fired units it is installing at Xiashu in Jurong City in Jiangsu province. The units are scheduled to start up in mid-2013 and will be the first 1000MW ultra-supercritical-units built by Huadian Jurong Power. The automation systems at both units will be controlled from a central control room. Huadian Jurong Power is a joint venture between the state-owned generator China Huadian Corporation and the provincially-controlled Jiangsu Electric Power Development Co. The company was founded in 2008.

Chart Industries announces new LNG contract Chart Industries, a manufacturer of engineered equipment used in the production, distribution, storage, and end-use of hydrocarbon and industrial gases, has announced that its Distribution & Storage (D&S) business in China has been awarded a new contract to provide liquefied natural gas fuelling stations, self-contained LNG station modules, storage tanks and trailers for LNG service to PetroChina Hua Gang Gas Group Co Ltd, a joint venture between PetroChina Huabei Oilfield Company and PetroChina’s Kunlun Energy Company. The contract value of this order is in excess of US$45 million and is in addition to the US$40 million PetroChina order the company previously announced in February.

For information and business support in China contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

EIC North and Central America News

North and Central America News Office News We held a Fundamentals of Oil & Gas training course in June. EIC global member Petrofac presented the course to the class in our training facility. The course was well attended and received. We are in the process of planning additional fundamentals courses and will announce those in the next few weeks. TopGolf was a wonderful venue to host our corporate networking event. It provided a unique and fun outdoor experience for golfers and non-golfers alike. A great time was had by all and we look forward to hosting another event there in the future. Our next Corporate Entertainment will be our Sporting Clays tournament in October. This will be our 4th annual tournament at American Shooting Center and it is always a fun way to wrap up a long week. We hope many of you will be able to join us. We are excited to welcome STATS Group back to the Houston office. They have been virtual members for the past several years and are once again going to take an office with us in Houston. We are working with several other member companies that are interested in office space and hope we have a few more new tenants in the near future. We are still actively trying to fill our office space with member companies interested in setting up in our region, so if you are interested in office space please contact us directly. For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact us. Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

In May the second such permit was granted, to Freeport LNG’s planned expansion on Quintana Island, Texas. Freeport LNG’s proposed US$6.5bn+ liquefaction facilities will be able to export 1.4 billion cubic feet per day of LNG. The 20-year approval only covers exports from the initial two train development. Both trains already have binding Liquefaction Tolling Agreements with Osaka Gas/ Chubu Electric (Train 1) and BP (Train 2). The project still requires approval from the Federal Energy Regulatory Commission before it can begin construction, and that is expected in the third quarter of this year. A majority of the American public has expressed support for exporting gas, with the intention that it will create tens of thousands of jobs and benefit the overall economy. It is not known how many projects will get the green light from the DOE, but it is expected that only a handful of them, maybe four to six out of the 19 current proposed/ potential applicants, will be chosen in the next few years. Most will be in the Gulf of Mexico but liquefaction plants proposed for Alaska and the East and West coasts are also competing for the export business. The Department has stated that their goal is to issue the licenses every two months, on a first-come, first-served basis but with a priority on the projects that already have firm contracts, and that have made solid financial investments, such as beginning the extensive FERC regulatory process. Service group to supply LNG solutions One new entrant into the LNG export competition is Crowley Maritime, which recently acquired Carib Energy, a fuel supplier in the Caribbean. Carib’s business model was bringing low-cost LNG via tanker ships to specific markets for power generation. In particular, their smaller ships bring gas to small islands where larger ships do not go. The new service group will be called Crowley LNG and it will focus on LNG vessel design and construction, transportation, product sales and distribution, and project management solutions.

Regional Comment LNG to be exported to Europe and Asia The exportation of natural gas continues to be a hot topic in the United States. For over two years, there was only one liquefaction terminal project with permission to export domestically-produced liquefied natural gas to countries that do not have Free Trade Agreements with the US. Cheniere had the foresight to realise that an export terminal would be more advantageous than an import terminal, due to the rise of natural gas drilling in shale plays across the country. Once Cheniere’s Sabine Pass liquefaction project started the ball rolling, more than a dozen other companies jumped on the bandwagon and have started their own plans either to build an LNG export terminal or to convert existing import terminals. Although they are automatically allowed to export to countries with which the US has free trade agreements, it is generally not considered a cost-effective endeavour as most of those countries pay low gas prices or have their own resources. The rush is on to export to non-FTA countries in Asia and Europe, where gas sells for much higher prices. Due to this demand, the Department of Energy is feeling the push to speed up the review process and to start rolling out the non-FTA export approvals.

New rules for US fracking The Department of the Interior is proposing new rules for fracking on US public lands. The new rules would require oil companies to disclose chemicals used in their drilling fluids on an online database, but does allow them to keep secret some of the components. They will be allowed to run well integrity tests on one representative well instead of all wells in a field. In Illinois, a state House committee approved a bill to allow high-volume oil and gas drilling in the state, but with the country’s strictest regulation. It will still require the state Senate’s approval, but it is expected to pass. In the Texas legislature, a bill has been put forward that would use road-side saltwater pipes to haul fracking water from drill sites to disposal wells instead of trucking. The bill has the support of environmentalists.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

EIC South America News

Forthcoming Event Technical Workshop

South America News

An Introduction to FPSOs 18 July 2013 Rio de Janeiro This course is intended to give a comprehensive overview of the nature and purpose of floating, production, storage and offloading (FPSO) vessels. The attendees will learn how they are built, the versatility of the design and procurement models. It will allow them to offer more support to their technical colleagues as well as potentially advancing their own career paths.

Office News It is winter now in the southern hemisphere, but visitors coming to Rio need not worry about freezing temperatures as the lowest it gets is around 15ºC. Although the weather may be cooler, oil and gas activities are as hot as ever in Brazil which will hold 3 bidding rounds this year. Opportunities are booming in other South American countries as well and our next mission is going to Colombia in September. Don’t miss the opportunity to meet with key contacts by joining this overseas delegation. The 8th Committee Meeting was held in April where members actively participated with interesting suggestions. The next meetings will take place on 19 July and 8 November (Annual General Meeting) where we welcome new members to join the Committee.

Regional Comment

Brazil’s 11th bidding round considered a success The country’s latest bidding round, the first since 2008, has awarded 142 exploration blocks to 30 oil companies, six of which are new to the country. Petrobras was awarded the highest number of blocks, while other operators such as OGX, Total, Statoil, BP and Queiroz Galvão had the opportunity to expand their portfolio. BG, partner of Petrobras in the pre-salt, has become the operator of 10 offshore blocks in north-eastern Brazil and is expected to invest at least US$1bn as part of a minimum exploration programme. All 142 blocks are expected to receive an investment of at least US$3.3bn, according to the National Petroleum Agency (ANP). The agency has received more than US$1.3bn in signature bonuses, a record since the rounds were introduced in 1999. The next bidding round is scheduled for October and will focus on onshore blocks with potential for shale gas. A special round for pre-salt blocks is expected in the same month.

If you need support in taking the next step into the South American market, please feel free to contact us. Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com Would you like the opportunity to represent your company on the South America Region Committee and help shape the future direction of the EIC within the region? If you have a regional branch in South America, you qualify to nominate yourself or a colleague for a place on our regional committee. • Committee members benefit from a high level of networking with other industry professionals, and are afforded unique opportunities and interaction with EIC guest speakers; • Your company profile will be added to the South America section of the EIC website offering increased visibility across the EIC membership and the industry; • Representing the views of EIC members both in the region and as a whole; • Building strong relationships with committee members in South America; • Helping to shape the future programme of presentations and events within the region; • Champion areas of concern and topical issues; • Companies or individuals that are new to the industry or looking to move into other sectors can position themselves and raise their profile; • The Committee meets four times a year offering regular opportunities to discuss market trends and share industry knowledge.

Chevron signs US$1.5bn deal with YPF The oil major has signed a US$1.5bn agreement with Argentina’s state-run oil company YPF for the development of shale gas reserves present in the Vaca Muerta formation in Neuquén province. The deal, which is subject to regulatory and board approval, would provide funds and know-how for a 12-month pilot drilling programme that would include 100 wells in the Loma la Lata Norte and Loma Campana areas. This follows a Letter of Intent signed by the two companies in December 2012. Analysts point out that a decision by a local court to freeze Chevron’s US$19 billion assets in Argentina due to an environmental dispute in Ecuador could pose an obstacle to the negotiations. Argentina’s recoverable shale gas reserves are estimated at 774 trillion cubic feet, behind China and the US. Russians interested in Bolivian power projects A trade delegation to Bolivia formed by Russian companies has expressed interest in supplying equipment to new hydro and thermal power plants being developed in the country. Ende, the state-owned power company, plans to invest over US$5bn in new hydro power plants such as El Bala (US$2.4bn, 1.6GW), Cachuela Esperanza (US$2bn, 990MW) and Rositas (US$800mn, 400MW), among other projects.

If you wish to be considered for a place on the South America Region Committee please contact: Clarisse Rocha, Regional Manager, South America Tel +55 21 3265 7405 Email clarisse.rocha@the-eic.com Applications must be submitted by 1 October 2013

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

July 2013

If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The 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 The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The 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 The EIC (China) Tel +86 139 0125 6599 Email salina.zhang@the-eic.com

www.the-eic.com

energizing your business