EIC Monthly News July 2014
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The EIC Chief Executive
The Chief Executive Welcome to the July edition of the Monthly News. Firstly, the EIC welcomes the news that the Government is establishing a new Oil and Gas Authority and has announced that the regulatory body will be based in Aberdeen, the heart of the UK’s oil and gas industry. The Oil and Gas Authority will be focused on implementing the recommendations made in the Wood Review, and will act as a conduit between the Treasury, operators and contractors in order that they work collaboratively to maximise recovery of resources from the UKCS. If successful, this should translate into increased levels of activity, particularly exploration, as the industry strives to recover the remaining accessible reserves in the North Sea. The EIC opened its office in Aberdeen in 2005 to meet its members’ growing needs for support with business development activities in the region, and now almost a third of the EIC’s membership operates or has a presence in Scotland. On the topic of the North Sea, the EIC will once again host the UK Pavilion at ONS 2014 in Stavanger, Norway, from 25-28 August. The EIC is taking 34 leading companies to exhibit their goods and services at this major exhibition for the European oil and gas industry. The UK and Norway are central to the European industry, with the majority of contracting activity from Apr-Sept 2013 taking place on the UKCS and the NCS, according to figures from EICDataStream. In this period, the highest number of upstream contract awards (60) of any country were awarded in Norway where significant fields such as Johan Sverdrup and Johan Castberg are expected to soon enter into the development phase. Against this backdrop, ONS will be an excellent platform for UK suppliers to network with our Norwegian counterparts to seek out upcoming opportunities.
Contents The Chief Executive
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Sector Analysis
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Training Services
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New EIC Members
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Member News
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Events Diary
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Exhibitions & Delegations 14 National Events
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UK News
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Middle East News
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Asia Pacific News
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North America News
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South America News
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In other major news for the UK’s energy industry, ScottishPower Renewables and Vattenfall got the go ahead from the Government in June to proceed with its East Anglia ONE offshore wind farm, off the coast of Suffolk. The project is the first Round 3 offshore wind farm to be approved and is set to be one of the largest wind farms in the world on completion. In June, the EIC launched its Midstream Insight report, providing analysis of major contracting activity in the sector. The report uses data from EICDataStream, and provides detailed information on approximately 1,379 midstream developments globally, 140 of which were awarded in the 2013/14 financial year. Another highlight is the North American LNG liquefaction market as a major emerging influence on the industry over the last two years. The US and Canada hold approximately 4,000 tcf of recoverable natural gas reserves and, as a result of the shale gas boom, 38 LNG liquefaction developments are now planned or under development in the two countries. The report’s Market Focus section provides a detailed overview of the location and status of these projects, highlighting potential opportunities for suppliers. To obtain your copy of the report, visit: www.the-eic.com/InsightReports Finally, last month I announced that we had appointed Azman Nasir as the EIC’s Head of Asia Pacific, and I am now delighted to report that the EIC has opened its new Asia Pacific office in Kuala Lumpur, Malaysia. Located at the centre of south-east Asia, between the growth markets of China and India, Kuala Lumpur proved an attractive proposition for the relocation of the EIC’s new Asia Pacific office. Malaysia is one of the world’s top investment destinations for offshore manufacturing operations, attracting over 4,400 oil and gas businesses, including IOCs, independents, service and manufacturing companies, which makes it a strategic base for businesses to expand their operations in the region. I hope many EIC members will be able to join us at the new office in September for the official opening ceremony. There will also be the opportunity to take up one of our Serviced Offices within the EIC’s premises, near to the Petronas Towers. Wishing you all continued success in 2014.
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Claire Miller, Chief Executive 2
July 2014
EIC Sector Analysis
Sector Analysis
Coast, Kinder Morgan has joined forces with them to construct new NGL fractionation facilities at Mont Belvieu to provide services for natural gas producers in Ohio, West Virginia and Pennsylvania that will be shipping on Kinder Morgan’s Utica Marcellus Texas Pipeline (UMTP). Phillips 66 plans to build its first LPG export terminal in Freeport, Texas, at the site of its existing marine terminal. Initial capacity will be 4.4 MMbbl per month and it is expected to be completed by mid-2016. The fuel will come from the company’s Sweeny and Mont Belvieu fractionators. Also in Texas, Occidental is constructing an NGL fractionator and a propane export facility at its Ingleside Energy Center near Corpus Christi. When it comes online in early 2015, it will be able to store 80,000 barrels of propane and will have capacity to load about four VLGCs per month. In the north-east, Sunoco Logistics is undergoing enormous growth creating an NGL midstream system in the liquid-rich Marcellus Shale. The new infrastructure will deliver propane and ethane to Marcus Hook, Pennsylvania, where the company is building a facility to process, store, chill and distribute propane and ethane to local, regional and international markets. The Mariner East projects will be fully operational in 2015. INEOS will be shipping ethane from this terminal on the Delaware River to European markets. Meanwhile, the NGL that Sunoco will be piping down to Texas will be fractionated in Mont Belvieu, and the butane and propane exported from the Mariner South LPG Export Terminal in Nederland once it is completed next year. They might also export ethane from the terminal as well. On the US West Coast, Sage Midstream subsidiary Haven Energy is proposing to build and operate a US$275 million propane and butane export terminal at the Port of Longview in Washington State. The supply will arrive at the terminal via rail from the North Dakota Bakken region, be chilled, stored and loaded out onto Panamaxsized carrier ships for export throughout the Pacific. If the project goes ahead, it could be online by the end of 2016. The domestic market is giving smaller projects a chance as well. CHS recently signed a long-term agreement with Federation Cooperative to build, manage and operate a propane terminal at Hixton, Wisconsin. Served by the CN railroad, the new US$24 million terminal is expected to be completed by the Autumn of 2014. It will have 360,000 gallons of storage tanks with the ability to offload six railcars every 4.5 hours and two truck loading bays capable of loading six trucks per hour. CHS will access and distribute propane through the new terminal to serve existing and new customers in Wisconsin, Minnesota and Iowa. In Canada, gas producers are also looking to export LPG to Asia. AltaGas and Idemitsu Kosan, already working on the Triton LNG project, are exploring ways to ship LPG across the Pacific. Petrogas, an AltaGas company, is investigating exporting 700,000 tpy of LPG. Its plan would be to ship LPG over 25 years, starting in 2017. The companies are exploring greenfield sites and are in dialogues with potential off-takers. Lisa Defalco Regional Analyst (North & Central America) Tel +1 713 783 1200 Email lisa.defalco@the-eic.com
North America shale boom spurs LPG growth Liquefied petroleum gas (LPG) production and exports continue to thrive, thanks to the upsurge in US shale development. LPG is a by-product of natural gas liquids (NGL) production and includes propane, butane and isobutane. LPGs are used mainly for heating and cooking, transportation and also as feedstocks for petrochemical manufacturing. The majority of US LPG supplies come from the Marcellus/ Utica, Williston, Permian and Eagle Ford shale plays. It is believed that the US will soon become the world’s top exporter of LPG. The US is already supplying to markets in Mexico and South America, which are eager to take advantage of its cheaper price compared to LPG from countries like Venezuela, Algeria, Qatar and UAE. Asia, Europe and even Canada are also potential markets to target as their demand is also increasing. Although Washington controls the amount of LNG that can be exported from the US, it does not restrict LPG exports. While domestic demand doesn’t appear to greatly increase, last winter’s extra-long, extra-cold season resulted in propane shortages alongside higher prices, both of which will require addressing. In response, the major players in the LPG industry are busy expanding their operations and infrastructure to accommodate the growing demand. Fractionation facilities, LPG processing plants, propane dehydrogenation, transportation and storage projects continue to be announced. By and large, the majority of these projects are in the Gulf Coast region, close to the hub of petrochemical production and export terminals. This region is mostly supplied by liquids from the Eagle Ford shale. Enterprise Products Partners (EPP) is investing heavily to expand its LPG export capacity. Its Houston Ship Channel export terminal will increase from 7.5 MMbbl per month to 9 MMbbls per month by early 2015, and yet another expansion will bring capacity to over 16 MMbbl per month by the end of 2015. The LPG terminal is supported by a 50-year service agreement with Oiltanking Partners to provide additional dock space and related services. In Mont Belvieu, EPP has proposed another propane dehydrogenation plant, with a capacity of 35,000 b/d, using propane as a feedstock to create propylene. The PDH plant will come online in 2015. In addition, the company has just confirmed that it will build the world’s largest ethane export terminal on the Houston Ship Channel. The facility will receive product from Mont Belvieu and will be able to load fully refrigerated ethane at approximately 10,000 barrels per hour when it begins operations in Q3 2016. Targa Resources has announced plans to build a US$115 million condensate splitter at its Channelview Terminal on the Houston Ship Channel. Its Mont Belvieu LPG export facility is undergoing an expansion to increase its capacity by 2 MMbbl per month. Due to Targa’s strong LPG export infrastructure on the Gulf www.the-eic.com
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EIC Training Services
Training Services Technical Workshop
Technical Workshop
HSE Training
Technical Workshop
Introduction to Shale Gas Tuesday 8 July 2014 EIC London 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.
Introduction to Pipe Supports Wednesday 9 July 2014 Carpenter & Paterson, Welshpool Participants will learn about the varied range of supports available and their different uses and applications including how to select the correct support for their needs. The delegates will discover how different supports are installed and also what to look for when inspecting supports in situ.
Minimum Industry Safety Training (MIST) (OPITO approved) Wednesday 16 July 2014 Woodside Safety & Training, Kirmington The MIST programme is designed to introduce the fundamental safety elements of the offshore oil and gas industry to new employees, giving an appreciation of the potential hazards and controls that might be encountered by personnel offshore. Each unit has been designed to focus the delegates’ attention on their personal responsibility for safety thus influencing their behaviour and attitude towards their co-workers, the installation and the environment.
Introduction to FPSOs Wednesday 30 July 2014 EIC London This workshop is suitable for those new to the industry or non-technicals who would like an overview of floating production, storage and offtake systems (FPSOs). This one-day workshop examines the fundamental key components of FPSO technology and deployment, including FPSO design, systems development, subsea engineering, operations and export activities.
Management Course New Course Exploring Risk in the Oil & Gas Supply Chain Tuesday 22 July 2014 The Supply Chain Academy, EIC London A bespoke course designed to give an introduction to the concept of End-to-End Supply Chain Management, within the oil and gas sector, to procurement professionals, specifically exploring potential supply chain risk and how to mitigate such risks.
Management Course New Course Leading Complex Change Thursday 10 July 2014 EIC London This one-day programme is designed to build your awareness and key skills to lead yourself and others through periods of complex organisational change. You will use your own case studies, work with scenarios and be introduced to some expert models in order to develop your skills and awareness as a change leader.
Management Course
Key Account Management Tuesday 29 July 2014 Change Creation, EIC London This workshop is designed to arm sales functions with the necessary knowledge, skills and behaviour to operate more effectively in order to maximise sales and profit in a competitive market.
The Effective Manager Tuesday 29 July 2014 Inspirit Training, EIC London This course will bring into focus the aspects which are required to manage a team or an individual. It will enable delegates to examine their management style and understand how this style affects others in their team. It introduces different styles and provides a range of management tools including delegation, prioritisation and giving feedback.
Industry Overview
Industry Overview
Management Course
Fundamentals of Power Thursday 17 July 2014 E.ON UK, Nottingham This course will enable delegates to gain an appreciation of the fundamentals involved in the power generation industry and provide an appreciation of how modern day power plant works. Attendees will also learn about electrical plant and systems.
Fundamentals of Subsea Thursday 31 July 2014 EIC London The course is suitable for those new to the oil and gas industry as well as those who have not received any formal training. This one-day course provides an overview of the key components of subsea engineering including flow assurance, reliability and maintenance.
If you would like to arrange an ‘in-house’ course, or are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com
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July 2014
EIC LaunchPad
EIC LaunchPad The EIC has an extensive network of UK and overseas offices, giving members a platform to expand their global business base. EIC LaunchPad is a business incubator service supporting companies entering or expanding into new global markets and offers: Serviced Office Facilities
The EIC’s Serviced Office Facilities in Dubai, Houston and Rio, offer members the opportunity to cost-effectively build a presence in a new market, while providing vital support through local access to EIC services. • Low risk and cost-effective market entry • Professionally manned reception and waiting area • Internet and telephone access • Postal and courier service • Copying and printing • Meeting facilities • Advice on legal, banking, insurance and payroll issues • Access to EIC services at a local level
Virtual Office Facilities
The EIC’s Virtual Office Facilities offer members a local identity, enabling members to build bridges to new markets. • Exclusive local identity with a local address • Dedicated phone line answered in company name • Mail forwarding
Hotdesk Facilities
The EIC’s Hotdesk Facilities in all of our offices provide members with workplace services when in-country. • Professional office space • High speed internet connection • Printing and scanning • Access to EIC services at a local level
www.the-eic.com
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New EIC Members
New EIC Members
goals. More than just a traditional recruitment business, the company delivers recruitment solutions covering contract and permanent recruitment as well as offering complete managed solutions. Based from its UK headquarters, First Recruitment Group has a global reach with office locations in Australia, Ghana, Kenya, Thailand, Singapore and has a number of partnerships across the globe including Houston, Kazakhstan, Angola and Russia.
New Global Member
Air Charter Service
Millbank House 171-185 Ewell Road Surbiton Surrey KT6 6AP Tel +44 (0)20 8339 8588 Fax +44 (0)20 8339 8572 Email steve.huddlestone@aircharter.co.uk Web www.aircharterserviceplc.com The Nominated Representative is Mr Steve Huddlestone, Business Development Director. Air Charter Services (ACS) is a leading global aircraft charter company with offices in Almaty, Beijing, Dubai, Frankfurt, Hong Kong, Houston, Istanbul, Johannesburg, London, Los Angeles, Madrid, Moscow, Mumbai, New York, Paris, Sao Paulo, St Petersburg, Tokyo and Toronto. ACS was founded in 1990 and has grown organically to its current market position. ACS now arranges over 7,000 full charters a year across its three divisions – cargo, executive jets and commercial airliners. ACS is available to fulfil any charter requirements 24/7, 365 days a year. ACS has and continues to work with many companies in the oil and gas sector providing time critical solutions for crew movements, cargo movements and executive travel. No matter how remote the location ACS can seamlessly integrate into a company’s logistical plans to provide the ultimate in aviation management.
New Global Member
Gardline Marine Sciences Ltd
Endeavour House Admiralty Road Great Yarmouth Norfolk NR30 3NG Tel +44 (0)1493 845 600 Fax +44 (0)1493 852 106 Email Hannah.Thomson@gardline.com Web www.gardline.com The Nominated Representative is Ms Hannah Thomson, Events Co-ordinator. Gardline is an international and multidisciplinary marine survey company, providing marine geophysical, geotechnical and environmental surveys to a range of industry sectors, including oil and gas, renewables, submarine telecoms and government bodies. It combines high quality marine science, real world commercial acumen with the latest technology and software, research analysis and management tools, offering a full range of marine scientific services. New Global Member
Hayward Tyler Ltd
New Primary Member
Claxton Engineering Services Ltd
1 Kimpton Road Luton LU1 3LD Tel +44 (0)1582 731 144 Fax +44 (0)1582 393 401 Email Geoff.Robinson@haywardtyler.com Web www.haywardtyler.co.uk The Nominated Representative is Mr Geoff Robinson, Market Development Manager. Hayward Tyler designs and manufactures boiler circulating pumps, glandless motor pumps, seawater lift pumps, submersible pumps and motors, fire and water pumps, jockey pumps, canned motor pumps, mixers, transfer pumps, positive displacement pumps, rotary gear pumps, steam turbines, submersible borehole pumps and nuclear power pumps. The after sales services offered by its Global Services division offer a full range of services which include, service, repair and overhaul.
Bureside House North River Road Great Yarmouth NR30 1TE Tel +44 (0)1493 744 500 Fax +44 (0)1493 744 501 Email jamie.hall@claxtonegineering.com Web www.claxtonengineering.com The Nominated Representative is Mr Jamie Hall, Marketing Communications Manager. Over 270 offshore operators, contractors and rig owners trust Claxton to make their projects happen. Whether your project demands any of a vast range of drilling riser systems, structures or decommissioning services, or a bespoke solution to an operating challenge, you can be confident Claxton will make it happen. New Primary Member
First Recruitment Group
New Global Member
Turck Banner Limited
Parry House Birchwood Boulevard Warrington Cheshire WA3 7QU Tel +44 (0)1925 857 006 Fax +44 (0)8003 777 199 Email Rachael.Parr@firstrecruitmentgroup.com Web www.firstrecruitmentgroup.com The Nominated Representative is Ms Rachael Parr, Operations Director. Established in 1997, First Recruitment Group is an award winning recruitment expert that places technical and engineering specialists to the oil and gas, nuclear and energy industries worldwide. Discipline focussed consultants provide in depth market knowledge to ensure that clients and candidates are able to meet their recruitment
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Blenheim House Blenheim Court Hurricane Way Wickford Essex SS11 8YT Tel +44 (0)1268 578 888 Fax +44 (0)1268 761 648 Email richard.amery@turckbanner.com Web www.turckbanner.co.uk The Nominated Representative is Mr Richard Amery, System Sales Manager. Turck Banner Limited is a manufacturer of control equipment for process automation including sensors, fieldbus, remote I/O, cables and cordsets and discrete interfaces.
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EIC Member News
Member News Attric has opened a new office in Aberdeen specifically to enhance and support its offering to the oil and gas marketplace. Seasoned energy professional, LesleyAnne Brodie (former Manager of EIC Scotland) has been recruited to boost Attric’s activities in the sector. By further raising awareness within the operator and contractor community of Attric’s complete solutions for design, data and document management; and reputation for providing a quality service on time and on budget; existing and new customers will receive a more comprehensive locally reinforced and enriched service. Attric’s range of services cover the oil and gas, wider energy and utilities industries on a world-wide scale: • Technical publications • Document and records management • Electronic document management • Design, draughting and engineering support • Maintenance data management • Archiving services • Training support and supply of personnel The Aberdeen office will increase and build on Attric’s presence in Hull (Head Office), Middlesbrough and Dubai. For more information visit: www.attric.co.uk
Innovation and engineering consultancy Assystem has signed a contract with Fusion for Energy (F4E) – the EU organisation responsible for Europe’s contribution to ITER. This contract, expected to run for up to seven years, focuses on the ITER Divertor Remote Handling system. It confirms Assystem’s position as a key engineering partner within the ITER project, under construction in Cadarache, South of France. The Divertor is a key component of the ITER machine. Located at the bottom of the vacuum vessel, its function is to extract impurities from the plasma, in effect acting like a giant exhaust system. The Divertor Remote Handling systems include the equipment required to safely and reliably position as well as extract each of the 54 removable cassettes within the Divertor. Remote handling is widely used in space exploration missions, underwater or ground operations. The system brings together high tech robotics, advanced technological tools, powerful computers and virtual reality platforms. A high level of intuition and intelligence are inbuilt within the system which is handled by a human operator with extreme dexterity because of the degree of millimetric precision that is required. Since 2009, Assystem has been heavily involved in the concept design phase of the various types of remote handling equipment that will be required to install, maintain, and recover the diverse components of the ITER Tokamak during its operational life. For Assystem, this contract confirms the Group’s dedication and commitment to the international fusion energy project. It also demonstrates the company’s leading edge competencies in nuclear engineering, and its capacity to bring together the best-in-class skills and partners for a specific project. Assystem and its partners – Culham Centre Fusion for Energy (CCFE), Soil Machine Dynamics Ltd (SMD), Technical Research Centre of Finland (VTT) and Tampere University of Technology (TUT) – have successfully collaborated to offer a wealth of expert fusion energy knowledge that will drive innovation and meet the uniquely challenging requirements of the ITER project. Assystem has been working with F4E on the ITER project since a first contract for nuclear safety engineering in 2005. In April 2010, the Assystemled consortium, Engage, was awarded the Architect Engineer contract following an international tender. For more information about Assystem please visit: www.assystem.com
Belzona has formulated a novel peelable coating concept, specifically designed for the corrosion protection of flanges, fastenings and associated pipework. Made available in May 2014, this system combines two products: a tough flexible encapsulating topcoat and a corrosion inhibitor which also has release properties allowing the topcoat to be peelable. Due to the complexity of flange geometry, it has become a challenge to design efficient solutions to protect flanges against corrosion. The ideal solution would be a system that combines excellent corrosion protection, simple installation procedure suitable for all flange sizes and shapes, and has easy bolt access for inspection purposes. Based on these criteria, Belzona R&D Department started working on a pioneering concept, which was unveiled during the 2014 Belzona Distributor meetings around the globe. Ruckseeta Patel, Belzona’s R&D Chemist, said: “With the use of clever polymer chemistry, we have created a flange protection system strong and flexible enough to be peeled back without tearing. This solution features the flexibility of elastomers but is based on a completely new technology excluding the use of isocyanates and toxic metal catalysts. The system bonds to manually prepared surfaces and does not involve hot work, making it safe and easy to use.”
To submit articles to the Member News section, please send no more than 300 words, and a good quality photograph (minimum 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
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EIC Member News Belzona 3411 (Encapsulating Membrane) can be hand applied at temperatures between 15-60°C and cures within 1-4 hours. This system can be used to protect any flange shape, size or configuration from corrosion and completely encapsulates the flange to exclude any moisture. One of the key features of this system is the ease of access to fastenings. When maintenance is required, the system can be cut open around the circumference between the flange faces using a sharp knife. Once the required maintenance has been completed, the system will fold back to its original position where it can be simply re-sealed by application of a further layer of Belzona 3411 over the cut area thereby maintaining corrosion protection of the flange and fastenings. Belzona 3411 exhibits excellent corrosion protection, UV and heat resistance up to 60°C, demonstrates a good fire resistance and has a low hazards class. Excellent adhesion properties onto manually prepared surfaces such as ISO 8501-1 St2 or SSPC SP-2 have also been reported. To find out more please visit: www.belzona.com
Costain has won a contract with Centrica Energy for the provision of Engineering Procurement and Construction (EPC) services as part of Centrica Energy’s Barrow Gas Terminals Project. The Barrow Terminals Project represents a total investment of £84 million by Centrica Energy. At Barrow, gas is processed from the North and South Morecambe and surrounding fields in the East Irish Sea. The terminals project, which is scheduled to complete in Q4 2015, will enable increased asset utilisation, provide compliance with future environmental requirements and support field life extension within the East Irish Sea. Costain initially provided Centrica Energy with a Front End Engineering Design (FEED) review in relation to the project at the Barrow onshore terminals, and will now support the customer through to full onsite implementation. Andrew Wyllie, Chief Executive, Costain, said: “The Barrow Gas Terminals provide enough gas to meet the demand for 1.5 million homes in the UK and are key to securing the nation’s future energy needs. Having previously provided Centrica Energy with front end consultancy for the terminals project, we are now delighted to build on our five-year collaboration with the company with this further contract.” For more information please visit: www.costain.com
Middleton-based Bifold has moved to larger premises on Broadgate, Oldham Broadway Business Park, which means that it will be better placed to expand the business in the future. The significant increase in business over the last few years has meant that Bifold has implemented plans for future recruitment, indicating the fluent growth of the business. The new premises has meant that Bifold has been able to achieve significant productivity enhancements with the emphasis on Configurable Lean Manufacturing™ – cLean Manufacturing™. This gives the capability to configure engineered-to-order products over the mobile network and can be delivered within 24 hours. Bifold is a manufacturer of instrument valves and pumps for the oil and gas sector and its profits have grown 50% per year since 2002. Bifold is dedicated to maintaining the excellence of its products and its new facility confirms its commitment to shortening lead times and meeting customer demands. Bifold would like to take the opportunity to thank all of its customers for their continued support. The Bifold Group of Companies provides technical and engineering support together with a global network of agents and distributors. Bifold Group is a supplier of the widest range of switching instrument and piping valves and pumps for use in the oil and gas upstream and downstream sectors. Its innovative and reliable range of high-tech products and accessories, specifically designed with the customer in mind, has gained worldwide approvals and credibility for the onerous conditions as found in hazardous (classified) locations, hostile, corrosive and subsea environments. Bifold Fluidpower Ltd Bifold Group, Broadgate Oldham Broadway Business Park, Chadderton Greater Manchester OL9 9XA www.bifold.co.uk www.the-eic.com
Companies across the globe are responding well to the new ISO 55000 world standard for asset management, according to power-engineering specialist EA Technology. The company has reported significant interest from businesses that are keen to achieve the new international certification, which establishes a benchmark for managing assets with greater reliability, efficiency and safety. Paul Barnfather, Technical Director, EA Technology, said: “The new standard was only launched in February but we’ve had over 50 enquiries from across different sectors in a very short space of time, coming to us for practical guidance and support to help their business attain ISO 55000. “For a long time, the discipline of asset management was the preserve of corporations with large numbers of physical assets and hasn’t always been a key issue for other sectors. But what has benefited organisations such as utility companies for years can now be of benefit to all industries across the world.” Barnfather was part of ‘Project Committee 251’ – a collection of industry experts from 31 different nations that took on the task of writing ISO 55000. The new standard builds on the success of BSi PAS 55, which after its launch in 2004 set the bar for asset management standardisation. Despite being developed by the UK Institute of Asset Management and the British Standards Institution, it had input from ten countries and was adopted widely around the world, being translated into five different languages. 9
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EIC Member News Paul Barnfather added: “If an asset fails (and it’s still needed) then it must be repaired or replaced, so it is in a business’s interests to reduce these costs and manage assets effectively. Good asset management reduces waste and enables businesses to run more effectively and efficiently. Until now, there hasn’t been an international standard that recognises this. “While PAS 55 was a hugely important step in this process, and while it remains a vitally important accreditation for businesses with large assets, ISO 55000’s innovation lies in its inclusivity. Small businesses, service companies and other industries should find it easier to reap the benefits.” EA Technology offers expertise in asset management and is helping several organisations achieve the new ISO 55000 standard. The support includes analysis of what work needs to be done to achieve the certification, a clear strategy, policies and documentation for ISO 55000 implementation and workshops and training for employees. For more information please visit: www.eatechnology.com
Through the ‘Video’ function, Eaton’s robust video library can also be accessed giving users full visibility to everything from business overviews to product training and expert interviews. Videos can be shared via email or saved on file for fast and easy access. To learn more about Eaton’s power management solutions please visit: www.eaton.uk.com/electrical
Eaton
Pressure-safety specialist Elfab has further developed it’s Opti-Gard™ rupture disc making it the only reverseacting disc on the market to benefit from a 3% tolerance and an improved 97% operating ratio. The financial and operational benefits of this design to customers are extensive. The 3% tolerance combined with an operating ratio of 97% increases the service life of the rupture disc and can reduce stock holdings by up to 65%. Combining state-of-the-art equipment with over 75 years manufacturing experience, Elfab is the first rupture disc supplier to increase an operating ratio from 95% to 97% while maintaining its unique 3% tolerance. The Opti-Gard system comprises a reverse-acting rupture disc, a single design holder suitable for a wide range of flange specifications and industry leading, noninvasive ATEX-approved burst detector Flo-Tel™. Integral Flo-Tel is Opti-Gard’s non-invasive ATEX approved detection device. Unlike traditional membrane detectors, Flo-Tel is reusable and so only requires a one off installation. Since it is isolated from downstream pressure fluctuations or aggressive media, it will not cause unnecessary downtime though spurious failure indication. Elfab offers a wide range of products and services to safety-critical industry sectors across the globe, and is constantly developing its product range to meet customer demands and strengthen its pressure intelligence brand. To find out more about how you can benefit from the OptiGard system contact Elfab: Tel +44 (0)191 293 1234 Email pr@elfab.com
Power management company Eaton has launched a new app bringing its comprehensive range of electrical power management solutions within reach of a user’s fingertips. Available for iPhone and iPad, Eaton’s new PowerEdge App allows the user to review, select and customise Eaton’s electrical products directly from their smart device. The app, which can be downloaded for free from the App Store http://bit.ly/PowerEdgeApp is available in seven different languages, including English, French and Chinese. The new PowerEdge App allows users to refine content by country and language, as well as give them full access to Eaton’s entire electrical products catalogues. Here, the user has the option to save relevant pages or sections in the apps ‘My Files’ function, for quick access and content categorisation, or send the information via email. Additionally, through the ‘Tools’ function users can select and configure the right product for their needs directly from their device. The ‘Locator’ function on the app provides users with the precise location of their nearest channel partner should they need to make a purchase. www.the-eic.com
A-Belco Group has taken the top prize at the North East Exporters’ Awards last month in Durham. With over 50% of all sales currently being exported overseas, the Group picked up not only the SME Exporter of the Year Award, but also the overall Exporter of the Year Award. Through a global distributor network, the Hadar Lighting Division has now begun to sell its market-leading range of hazardous area lighting into new overseas markets including the recent additions of Scandinavia, UAE, Indonesia, Malaysia and Singapore. They already sell to Australia, USA and Europe. Hadar Lighting was the first to market with an Ex ‘e’ LED floodlight certified through Sira for both ATEX and IECEx applications in 2010. The benefits of their innovative HDL106 LED floodlight were soon grasped by the offshore sector and the lights have since 10
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EIC Member News become the standard for many drilling operators and oil companies around the globe. Among the many projects where the HDL 106s have been specified is Western Australia’s Gorgon Project – one of the world’s largest natural gas projects. The new lights produce purer light, weigh less, last far longer than traditional sodium or halogen equivalents, have no warm up period, produce very little heat and have an expected lifespan in excess of 10 years without any maintenance in line with industry’s preferred ‘fit and forget’ requirements. In addition, power consumption of the new floodlights is approximately 40% of traditional equivalent, with varying beam patterns ensuring the light only goes where it’s designed to go rather than being wasted. Linda Billings, Finance Director, said: “The company is proud to provide employment in Ashington, refusing to succumb to the temptations of outsourcing to developing countries. We feel this ensures control of the quality of our product, and has enabled us to compete on a worldwide stage, punching well above our weight in terms of the company size. The successful push for export sales has enabled us not only to survive the recession, but to thrive and grow.” Please visit: www.hadar-lighting.co.uk
The main purpose of the DMS is to fulfil the following overall project objectives: monitor continuously the performance of safety-critical operations; present information in an easily understandable way, particularly when it is needed to visualise operations taking place in highly protected areas; verify that all equipment is operating correctly and to aid the process of routine testing; identify, locate and resolve quickly any problems which may occur within the fuel route equipment; provide a logging facility to assist in the periodic Maintenance Interval Test Schedule (MITS) on plant sensors and electro-mechanical devices. The key features and benefits of the DMS are as follows: predictive/preventative maintenance; flexibility of scheduling maintenance activities thereby achieving substantial savings in equipment outage time; reducing plant downtime to a minimum by utilising on-line diagnostics aids down to the level of individual plant items; high quality dynamic graphical displays ensuring the best possible visibility of the plant process; desktop view available to engineers external to the radiological controlled area; increased process visibility to plant operators. EDF Energy owns and operates eight nuclear power stations in the UK, with a combined capacity of over 9 million megawatts, while the parent EDF Group operates nuclear sites in France and the USA. EDF Energy employs 15,000 people and supplies gas and electricity to around 5.5 million UK homes. Servelec Controls is part of Servelec Automation, a fully-owned subsidiary of the Servelec Group Plc. The Servelec Group is a UK-based technology group, providing software, hardware and services to the UK healthcare, oil and gas, nuclear, power, utilities and broadcast sectors. For more information please visit: www.servelec-controls.com
Servelec Controls has been selected by EDF Energy Nuclear Generation to design, implement, test and commission a new Diagnostic Monitoring System (DMS) for the pond and flask at their Heysham 2 power station. Utilising experience on Siemens PLC and SCADA systems, Servelec Controls was selected due to the long term partnership that has been built up over a series of DMS system development projects at both Heysham 2 and Torness power stations. © EDF Energy 2014
Torness nuclear power station
www.the-eic.com
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July 2014
Events Diary
UK, Overseas & Training July 2014 4 Corporate Entertainment: Southern Region Golf Day Wokefield Park, Reading 8 Technical Workshop: Introduction to Shale Gas EIC London 9 Technical Workshop: Introduction to Pipe Supports Carpenter & Paterson, Welshpool 10 Management Course: Leading Complex Change EIC London 16 HSE Training: Minimum Industry Safety Training (MIST) Woodside Safety & Training, Kirmington 17 Industry Overview: Fundamentals of Power E.ON UK, Nottingham 22 Management Course: Exploring Risk in the O&G Supply Chain Supply Chain Academy, EIC London 22 Technical Workshop: Introduction to Mechanical Seals EIC Houston 24 Industry Overview: Fundamentals of Shipbuilding II Rio de Janeiro 26 Industry Overview: Fundamentals of Subsea II Rio de Janeiro 29 Industry Overview: Fundamentals of Upstream Rio de Janeiro 29 Management Course: Key Account Management Change Creation, EIC London 29-30 Management Course: The Effective Manager Inspirit Training, EIC London 29-30 Industry Overview: Fundamentals of Oil & Gas Production Petrofac Training Services, EIC Houston 30 Technical Workshop: Introduction to FPSOs EIC London 31 Industry Overview: Fundamentals of Subsea EIC London August 2014 5 Industry Overview: Fundamentals of Nuclear EIC London 5-6 Management Course: The Effective Manager Change Creation, EIC Houston 6 Industry Overview: Fundamentals of LNG EIC London 7 Industry Overview: Fundamentals of Oil & Gas EIC London 7 Management Course: Effective Selling and Account Management Change Creation, EIC Houston 15 Corporate Entertainment: The Glorious 15th Clay Shooting Day Seals Cove Shooting Ground, Aberdeen 26 Corporate Entertainment: Dubai Skyline Networking Night Sheraton Mall of The Emirates, Dubai 27 Industry Overview: Fundamentals of Downstream EIC Rio 27 Technical Workshop: Introduction to Electric Motors WEG, Dubai September 2014 2 Oman Export Showcase EIC London 3 Management Course: Tendering for Success Rothera Group, Kirkhill Industrial Estate 3 Industry Overview: Fundamentals of Subsea Systems EIC Houston 4 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, EIC Aberdeen 4 Technical Workshop: Introduction to FPSOs EIC Houston 9 Technical Workshop: Introduction to Flow Metering Alderley FZE, Jebel Ali, Dubai 10 HSE Training: ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 11 Management Course: Presentation Skills Made to Measure Training, EIC Teesside 16 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 17 Technical Workshop: Introduction to Offshore Wind Energy DNV GL, EIC London 18 Technical Workshop: Introduction to Tier 4i/Stage IIIB Engines Finning UK, Staffordshire 22 Management Course: Certificate in Project Management Parallel Project Training, London 23 Industry Overview: Fundamentals of Oil & Gas International House, Dubai 24 Management Course: Developing a Business Case Neos Learning, EIC London 24 Technical Workshop: Introduction to Shale Gas International House, Dubai 24 Technical Workshop: Introduction to FPSOs EIC Kuala Lumpur For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com
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Events Diary
Exhibitions & Delegations 2014
25-28 August Offshore Northern Seas (ONS) Stavanger 14-17 September Overseas Delegation to Oman 15-18 September Rio Oil & Gas Rio de Janeiro 23-26 September Overseas Delegation to Peru 23-26 September WindEnergy Hamburg 13-16 October World Nuclear Exhibition Paris 13-17 October Overseas Delegation to Myanmar 10-13 November ADIPEC Abu Dhabi 12-14 November Offshore Korea Busan 17-21 November Overseas Delegation to Turkey 24-28 November Overseas Delegation to Thailand 2-5 December Offshore South East Asia (OSEA) Singapore
Status Sold Out Sold Out Sold Out Booking Now Booking Now Register your Interest Booking Now Sold Out Booking Now Register your Interest Booking Now Booking Now
2015
19-22 January Overseas Delegation to Kuwait 16-20 February Overseas Delegation to South Africa and Mozambique 10-12 March European Wind Energy Association (EWEA) Copenhagen 11-13 March Australasian Oil & Gas (AOG) Perth 4-7 May Offshore Technology Conference (OTC) Houston
Register your Interest Register your Interest Register your Interest Booking Now Register your Interest
For further information on Exhibitions & Delegations please contact: events@the-eic.com
National Events 2014
Status
16 October EIC National Dinner 25-26 November EIC Connect Oil & Gas
Booking Now Booking Now
London Manchester
2015 2 June EIC Connect Middle East Abu Dhabi Register your Interest 8-11 September Offshore Europe Aberdeen Stand Bookings Open For further information on National Events please contact: nationalevents@the-eic.com
Email camilla.tew@the-eic.com Tel +44 +44 (0)20 (0)20 7091 7091 8600 harriet.fray@the-eic.com Tel Email harriet.fray@the-eic.com Tel +44 (0)20 7091 8600 Email camilla.tew@the-eic.com Tel +44 (0)20 7091 8600 Email camilla.tew@the-eic.com Tel +44 (0)20 7091 8600 www.the-eic.com
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July 2014
EIC Overseas Exhibitions & Delegations
Overseas Exhibitions
Australasian Oil & Gas (AOG) 11-13 March 2015 Perth, WA, Australia TAP funding available for first 10 eligible companies who apply. The EIC will be managing the UK Pavilion at AOG again in 2015. The local industry is led by the large scale LNG projects, which collectively represent investment of over US$250 billion. Australia has huge potential to become one of the world’s top LNG producers, with a number of basins, including Browse, Bonaparte, Canning and McArthur, discovered both on and offshore. Important challenges to success remain. With exciting new technologies such as the world’s first floating LNG project, Prelude FLNG (67.5% Shell) allowing access to offshore gas fields that are otherwise too costly or difficult to develop, there are opportunities for UK companies to assist the major contractors in their ambitious future plans. Please contact: mark.gamble@the-eic.com
Offshore South East Asia (OSEA) 2-5 December 2014 Marina Bay Sands, Singapore TAP funding available for first 10 eligible companies who apply. The EIC is pleased to be returning to host the UK National Pavilion for another year at OSEA 2014. OSEA 2012 saw a record number of 27,593 attendees reaffirming itself as Asia’s premier sourcing platform for the oil and gas industry. Tapping into the region’s increasing need for more sophisticated technologies and solutions, an international representation of exhibitors will put up a comprehensive showcase for buyers from Asia and beyond. OSEA is the perfect platform for UK companies to display their products and services to foreign and national companies. For more information contact: camilla.tew@the-eic.com
Overseas Delegations
Since the discovery of the Girassol field in the deepwater Block 17 in 1996 Angola’s oil and gas industry has thrived. With proven reserves of 9.5 billion barrels and average production reaching 1.7 million b/d in 2012, Angola is now the second biggest oil producer in Sub-Saharan Africa (after Nigeria). However, with the Angolan government expecting production to reach 2 million b/d by 2015 as well as increased optimism surrounding exploration of Angola’s high potential pre-salt areas, Angola’s oil and gas industry looks set to enter an exciting period.
Overseas Delegations are designed to enable the UK supply chain to target revenue opportunities in a supportive business environment. Overseas Delegation to Thailand 24-28 November 2014 MAP Funding Confirmed One of the fastest growing economies in Asia, Thailand’s energy mix has been changing over the last two decades with the proportion of oil to total energy consumption declining. Natural gas has become the dominant energy source for electricity, and its consumption is increasing in the industrial and transportation sectors. The growing energy demand spurred by new gas-fired power plants represents a major challenge for Thailand to keep up with demand due to its limited resources and that opens up opportunities for companies interested in that market. Thailand is active in both upstream and downstream businesses. The country has about 428 million barrels of proven oil reserves, and almost all of its natural gas fields are located offshore in the Gulf of Thailand where Chevron and PTT Exploration and Production (PTTEP) dominate upstream oil and gas activity. Key field production areas include the Arthit, Bongkot and Platong fields in the Gulf of Thailand, and the S1 onshore block. The downstream businesses are dominated by PTT Group, the national oil and gas conglomerate, and the Siam Cement Group (SCG). For information contact: camilla.tew@the-eic.com
The delegation consisted on an in-depth country briefing and a well-attended networking reception which included a one-2-one session. Across the 3 days meetings were also held with the Ministry of Petroleum, Ministry of Energy, BP, Repsol, Capital Outsourcing Group, Cobalt & Total. There are challenges for UK companies to overcome which the delegates experienced. Firstly obtaining a visa to travel to Angola is a lengthy process. There are security issues and a ‘cultural clash’ to take into account. But the rewards are massive for those companies that are prepared to continue to visit the market and follow-up on contacts that were made. Spurred on by the government’s aim to increase production and interest surrounding pre-salt exploration, there are likely to be tremendous opportunities for the UK supply chain now and in the future. mark.gamble@the-eic.com
Delegation Report Overseas Delegation to Angola 18-21 May 2014 The overseas trade delegation to Angola consisted of 12 delegates from 10 UK companies keen to find out more about the current oil and gas opportunities in this exciting emerging market. www.the-eic.com
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http://eic.excelpublishing.co.uk/
For further details on EIC Energy Focus or the EIC Procurement Guide please contact Nina Conway Tel +44 (0)161 661 4143 Email nina.conway@excelpublishing.co.uk www.the-eic.com
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EIC National Events
The EIC Connect website has been redeveloped, representing the growth of the brand and providing a more user friendly experience for its visitors.
Current event sponsors include Siemens, sponsors of the evening reception, AVEVA, sponsors of registration and Hertel who will be taking advantage of the delegate networking area sponsorship.
The new site is fully integrated into the main EIC website which will increase traffic numbers, maximising the marketing coverage to our exhibitors and sponsors. The website allows visitors to:
Who is exhibiting? Over 50 UK companies have snapped up the stand space in the main exhibition hall in anticipation of showcasing their wares to the speaker companies in attendance.
• Book their delegate place online • Find out the benefits of exhibiting, sponsoring and attending the event at the touch of a button • View past event videos, photos and testimonials • Download the latest event information, floor plan and delegate lists
These range from safety, cabling, flow and security solutions providers to wire and cable manufacturers and industrial sensors and instrumentation producers. A full list of exhibiting companies can be viewed online.
To view our brand new site please visit: www.the-eic.com/EICConnect
Additional stand space is now available in the conference foyer to allow service companies to take advantage of the footfall between the exhibition and the conference sessions. These stands are priced at just £2,400+VAT and are expected to sell out fast. Delegate bookings will open in July.
Sponsorship opportunities at EIC Connect Oil & Gas
For additional information and to view the full range of sponsorship and exhibiting opportunities please visit the website.
Offshore Europe 8-11 September 2015 AECC, Aberdeen
Stand Bookings Now Open The National Events team is once again proud to be organising and managing the EIC Group at Offshore Europe 2015.
Would you like the opportunity to meet with buyers on a one-2-one basis?
The EIC has secured 669 sq m of exhibition space for 2015, occupying a prominent and well known position in Hall 3.
Sponsor the One-2-One Zone at EIC Connect Oil & Gas 2014 and receive:
Stand bookings for the EIC Pavilion are open and at the time of writing we have availability on a number of 9 sq m stands. These are expected to sell out fast and we would advise any companies wishing to book space to make contact with the National Events team as soon as possible.
• First refusal on 5 x appointments with buyers • Promotion of your brand in advance as part of the appointment booking system • Your company branding in the physical area with the option to display banner stands and brochures • Acknowledgement as a sponsor on the event website, event programme (given to all attendees at the event) emails and articles in the lead up to the event • 2 x delegate places • 2 x invites to an exclusive evening reception www.the-eic.com
For more information please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com 16
July 2014
EIC Connect Oil & Gas 2014 International Supply Chain Event & Conference 25-26 November 2014, Manchester, UK EIC Connect is a series of highly successful international supply chain events designed to connect operators and contractors to UK suppliers. Following on from a hugely successful event in 2012, EIC Connect Oil & Gas will return to Manchester in November 2014 for what promises to be the biggest EIC Connect event to date.
Supply Chain Event & Conference 25-26 November, Manchester Central, UK CONNECTING UK COMPANIES WITH GLOBAL DECISION MAKERS
What is the structure of the event? Leading operators and contractors present their forward work to suppliers from a series of theatres in the main exhibition hall. Their sessions are supplemented by one-2-one meetings where delegates can put their products and services forward to decision makers. The adjoining exhibition allows UK companies to showcase their products and global capabilities to buyers from the world’s leading energy companies. EIC Connect events also feature conference sessions designed to educate the supply chain on emerging market sectors allowing delegates to channel their business goals.
What are the benefits of attending EIC Connect Oil & Gas? AS A DELEGATE:
AND IF YOU EXHIBIT/SPONSOR:
Learn about high-value opportunities on global oil & gas projects
Promoted to speakers in advance
Identify future markets and areas of growth
Part of an exclusive showcase
Book one-2-one meetings with buyers
Invitations to exclusive ‘Ice Breaker’ Evening Reception
Learn about new products and technologies in the industry
2 x Delegate Places
Access to decision makers
Listed in the event programme and website
Fantastic networking opportunities
2012 Speakers Included:
For more www.the-eic.com
Guaranteed appointments with buyers
STA FROMNJDS £2,400U!ST
information please contact the EIC National Events teamJuly 2014 17 on +44 (0) 1642 379 975 or visit www.eic-connect.co.uk
EIC UK News
News from our UK offices
Azerbaijan Export Showcase September EIC Conference Suite, London Due to a rapid rise in oil and gas revenues Azerbaijan has one of the fastest growing economies in the world and its strategic location serves as an import/export gateway as well as a potential transportation hub for other Caspian coastal states. With BP as the dominant operator in Azerbaijan, the majority of British companies active in the region form part of their supply chain, bringing with them a series of potentially lucrative opportunities for EIC members. Join EIC members and other invited UK companies to learn about opportunities in the region from some of the major companies doing business there, as well as the logistical and practical details of operating in the Caspian region. Please register your interest with Jennifer Hole.
Forthcoming Events
Corporate Entertainment: Southern Region Golf Day Friday 4 July 2014 Wokefield Park, Reading Wokefield Park boasts a 6,996 yard PGA Championship standard course with 18 uniquely designed holes. Native, traditional fescue bent grass covers the 170 acre parkland where a host of challenging lakes and bunkers lie in wait to baffle and foil all comers to Wokefield Park. EIC members and guests will be treated to bacon rolls and tea/coffee before you start your 18 hole round of golf, followed by a delicious two course meal. Please contact Jennifer Hole. Corporate Entertainment: EIC The Glorious 15th Clay Shooting Day Friday 15 August 2014 Seals Cove Shooting Ground, Aberdeen Just one team place remaining EIC members and their guests are invited to join the EIC for a clay pigeon shoot at Seals Cove Shooting Ground. The afternoon is an ideal way to entertain clients and reward staff. It also provides a great opportunity to network with a difference throughout the shoot and over a BBQ lunch. Contact Leeann Stewart.
Indonesia Export Showcase September EIC Conference Suite, London Indonesia is a key market amongst the ASEAN countries. With the highest gas reserves and the second highest oil reserves, after Vietnam, it plays an important role in providing for the energy needs of the region. The market is dominated by key international oil companies and a number of sizeable projects have seen movement recently. Come along and find out about the significant opportunities in the market from some of the key players within the industry. Register your interest with Jennifer Hole.
Oman Export Showcase Tuesday 2 September 2014 EIC Conference Suite, London With over US$77.5 billion worth of planned investment in oil and gas projects, supply chain opportunities are ripe within the Sultanate of Oman. As the largest non-OPEC producer of oil and gas in the Middle East, Oman is aiming to maintain this position by increasing the production rate of its hydrocarbon resources. Local government has been enlisting foreign companies in new E&P projects, offering generous terms for developing fields that require the sophisticated technology and expertise of the private sector. The EIC and UKTI bring you an excellent panel of speakers, including representatives from Petroleum Development Oman (PDO) who will detail their company’s project plans, procurement strategies and investment opportunities. This is a unique opportunity to find out more about how your organisation can take advantage of the opportunities the country has to offer to UK companies. Register your interest with Jennifer Hole.
Renewables Showcase GROW:OffshoreWind October TBC, Aberdeen The GROW:OffshoreWind programme will deliver a national programme of focused support to deliver a step change in SME manufacturers’ ability to exploit the lucrative opportunities offered by the UK offshore wind market. By providing access to targeted specialist advice, £20m of RGF funding will have a transformative impact in enabling English manufacturers to win contracts in the offshore wind market. The EIC will work with GROW:OffshoreWind, who offer expert intelligence, visibility of contract opportunities and access to funding, in helping existing suppliers into the oil and gas market, to identify the opportunities for their expertise in the offshore wind sector. Please contact Leeann Stewart.
Contractor Updates and Regional AGMs
Contractor Updates and Regional AGMs are opportunities to hear from some of the most active and prominent contractors within your region on their supplier opportunities, procurement structures and operations. Each regional Contractor Update will be followed by the Regional AGM – providing an overview of the EIC and our actives in the region over the last 12 months and plans for the future. Scotland, September, Aberdeen To include panellists from the Subsea, Fabrication and Project Management sectors. Northern Region, October, Teesside Focussing on some of the Northern Region’s largest EPC contractors. Southern Region, January, London Including speakers from some world-leading global contracting firms. EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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EIC UK News India (Power) Export Showcase October EIC Conference Suite, London India is the world’s fourth largest energy consumer with 4.4% of global consumption. Demand is growing rapidly and it is predicted that the country will move up the rankings to third place by 2020. Development is taking place across the power sector in India with a focus on renewables and conventional power, not to mention their need for metering solutions, wireless technology provision and other technology to reduce distribution losses. The EIC and UKTI work together to highlight these opportunities to our members through a comprehensive panel of speakers, who will identify the key sectors of importance and detail where planned investment will be made. With a five year plan (2012-2017), which aims to add an additional 118.5GW of generation capacity, this is a market our members should be aware of. Register your interest with Jennifer Hole.
This is due to overwhelming demand and to maximise your opportunity to generate business contacts. Tables are selling fast so reserve yours today.
Corporate Entertainment: EIC National Dinner Thursday 16 October 2014 Natural History Museum, London Over 550 energy industry professionals will enjoy a networking drinks reception followed by an evening of delightful food and exceptional entertainment from sports TV and radio presenter Colin Murray and vintage swing band October Moon. This year, for the first time, the 2014 EIC National Dinner will be extended to 01:30.
For further information on any EIC events, please contact: Jennifer Hole UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com
Sponsorship The EIC National Dinner provides a unique opportunity to promote your organisation’s capabilities to a captive audience of high-level, key industry contacts. We are delighted to announce that this year’s Headline Sponsor is LV Shipping and that the event is also supported by OilCareers.com and Promat.
Only a couple of sponsorship opportunities remain. www.the-eic.com/NationalDinner Contact: charmaine.atkinson@the-eic.com
Leeann Stewart UK Regional Co-ordinator (Scotland) Tel +44 (0)1224 628 251 Email leeann.stewart@the-eic.com
EIC
NATIONAL DINNER
I
16.10.14 NATURAL HISTORY MUSEUM The EIC National Dinner offers the perfect opportunity to entertain customers and suppliers and influence the industry’s key stakeholders.
Sponsorship opportunities are now still available Sponsorship available to EIC members. members. With a limited number remaining, do not miss your chance to showcase your company to major Contractors, Operators and Developers.
www.the-eic.com/nationaldinner www.the-eic.com
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EIC Middle East News
Middle East News
It now only remains for us to acknowledge with thanks the member’s representatives who we have met over the last four weeks. Austin from Lloyd’s Register caught up with us in Abu Dhabi while we visited the offices of EagleBurgmann in Jebel Ali where we met up with Bill McAlpine plus Rakesh Bhatiya and Qasim Shah from his marketing team as well as the offices of SPP Pumps where we met Mirza Qiadath. Back at the Dubai office, it was a pleasure to meet Brett Russell from new members Cutting & Wear as well as catch up with Panteha Peters and her colleague John Higgs. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com
Office News
For 2014, the holy month of Ramadan happens to coincide with almost the whole of July so, coupled with the regional summer temperatures, means that overall business activity levels will inevitably diminish and this will be further fuelled by people leaving for more temperate climes for their annual vacation. For anybody unfamiliar with this time of year, Ramadan is the ninth month in the Islamic Calendar. It is a time when people who follow the Muslim faith will refrain from eating, drinking and smoking during daylight hours. It is a time for reflection and charitable giving where official working hours are reduced by up to two hours and night time activities extend through until the early hours of the following day. As for non-Muslims, it is important that we respect this period within public places and offices by going about our normal day’s work but with the utmost discretion. As a consequence, UKbased representatives from member companies may need to temper any frustration that may occur when they are unable to secure immediate contact with their established customer base. Meanwhile, it is pleasing to note that the programme of training events continues to mature and we are actively analysing the valuable feedback that we were able to secure from the questionnaires that we developed in order to help us gauge the appetite for training plus suggestions on areas of interest that could be followed. Naturally, we would still be delighted if anybody else wishes to participate in this exercise and all that’s needed is a quick email request to Julie who can forward the paperwork: julie.z@the-eic.com Looking ahead to this second half of the year, our programme, in addition to the training events, maintains a good momentum. Next month will see a networking evening taking place on Tuesday 26 August at a time when everybody is slowly returning back to slip into a more regular routine following on from Ramadan, the ensuing Eid holidays and annual vacations that the majority will enjoy during the summer break from the school calendar. In September we are taking a delegation to Oman while November will be particularly busy with ADIPEC plus EIC Connect taking place soon afterwards in the UK before we have our own Middle East version that is scheduled for June 2015. December will see us return to Basra once again for the successful oil show. Finally on the event side of things, as briefly mentioned in the last paragraph, we need to ensure that the date of Tuesday 2 June 2015 is placed in your calendars for our EIC Connect next year. We are greatly encouraged by the level of support that is once again being offered by ADNOC and it has been agreed that together, we will be setting up a team that will discuss and plan what promises to be an extremely useful event which we intend to launch during ADIPEC in November.
Forthcoming Events Technical Workshop
Introduction to Electric Motors Wednesday 27 August 2014 WEG, Dubai
Technical Workshop
Introduction to Flow Metering Tuesday 9 September 2014 Alderley FZE, Jebel Ali, Dubai
Industry Overview
Fundamentals of Oil and Gas Tuesday 23 September 2014 International House, Dubai
Industry Overview
Introduction to Shale Gas Wednesday 24 September 2014 International House, Dubai
Management Course
Successful Agency Agreements Wednesday 1 October 2014 International House, Dubai
Regional Comment
Shortfall in Middle East oil investment A potential shortfall in investment in production in the Middle East could create a US$15 increase in the oil price by 2025, the energy arm of the Organisation for Economic Cooperation and Development (OECD) said. The world will need to invest US$40 trillion in energy supply and US$8 trillion on energy efficiency by 2035 to meet growing demand and falling output from mature sources of energy, the International Energy Agency (IEA) said in a report. A large proportion of the investment to increase output will need to come from the Middle East as a rise in non-OPEC production such as US shale oil starts to lose steam in the mid-2020s. But the IEA was wary about the outlook for investment in the region due to security concerns and government spending priorities outside the energy sector.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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EIC Asia Pacific News
Asia Pacific News Regional Comment
Australia scraps RE body The Australian government has confirmed plans to scrap the Australian Renewable Energy Agency (ARENA) and put A$1.3 billion (US$1.22 billion) originally earmarked to support clean energy projects back into the country’s general spending pot. ARENA will maintain funds of A$1 billion for about 180 projects – mostly R&D – that have been contracted since its creation in 2012 and its functions will be absorbed into the Department of Industry with just A$15 million to fund new renewables projects and initiatives in 2015-2016.
Philippines offers oil, gas exploration area The Philippines has launched a tender for exploration rights in 11 oil and gas blocks, including one in a disputed area of the South China Sea that is likely to fuel further tension with China. Most of the oil and gas exploration blocks are located near the Philippines’ main island of Luzon with 10 of the 11 oil and gas blocks lying offshore. Philippine energy officials sought to downplay the issue of territorial dispute with China in offering to investors the so-called Area 7 in Reed Bank – or Recto Bank as it is known in the Philippines. The Area 7 block, like the rest of the South China Sea, is believed to hold huge oil and gas deposits. The area is near the Malampaya offshore natural gas oil field operated by Shell.
McDermott selected in Gendalo-Gehem tender A consortium, which includes subsidiaries of McDermott and PT Encona Inti Industri, has been notified of its selection as the successful bidder in the tender process for an engineering, procurement and construction (EPC) contract for the Gendalo-Gehem natural gas development in East Kalimantan, Indonesia. Award of the contract will be subject to government and regulatory approvals.
Transpower wins New Zealand power line upgrade Transpower has secured an approval from the New Zealand Commerce Commission for a US$161 million upgrade to power transmission lines between the Bunnythorpe substation near Palmerston North and Haywards substation in Wellington. The Transpower proposal includes US$10.4 million to increase the capacity of the lines. The upgrades aim to reduce transmission losses and improve the ability to use the cheapest mix of generation from the thermal generators in the North Island and the hydro generators in the South Island. Construction work is estimated to begin next summer and will be completed by 2020.
Indonesia restricts foreign investment in oil industry Indonesia has introduced new regulations restricting foreign investment in drilling, maintenance and construction in the oil industry, in an effort to give domestic firms an opportunity to better compete. Under new rules, foreign ownership of offshore oil and gas drilling services will be limited to 75% from 95% with pipeline projects and small power plants between 1-10 megawatts limited to 49%. The new rules would not impact projects already underway and could take as long as five years to fully implement.
ABS lands PFLNG2 classification contract ABS has bagged the classification contract for Malaysia’s second Petronas floating liquefied natural gas (FLNG) or the PFLNG2 project. The marine society will provide a range of technical services for the facility, which is being built at the Samsung Heavy Industries yard in Korea and is due to enter service in 2018. The unit is part of the Murphy Oil-Petronas partnered FLNG development at the deep-water Rotan gas field off Sabah, Malaysia, and will have a capacity of 1.5 mtpa of LNG.
Quartet eye LNG ship construction deals Four major Japanese shipbuilders have formed a rare alliance in a bid to win orders for LNG carriers to be used to transport shale gas-based LNG from the Cameron LNG export project in Louisiana, USA to Japan. The four shipbuilders are Mitsubishi Heavy Industries (MHI), Kawasaki Heavy Industries (KHI), Mitsui Engineering & Shipbuilding (MES) and Imabari Shipbuilding. The Japanese consortium is competing with major South Korean shipbuilders for the orders.
Offshore industry tax incentives China is attempting to promote the country’s fledging offshore engineering industry by providing tax rebates as compensation for project research and development. In addition, the government will provide exemptions on import taxes for key spare parts and raw materials brought into the country for offshore construction projects. The National Development & Reform Commission (NDRC) is also encouraging domestic yards and engineering companies to work in close co-operation with foreign engineering firms and contractors or introduce such entities by setting up R&D companies and building offshore engineering facilities in China in order to boost the country’s strength as a lead contractor for offshore projects.
Vestas secures Korean wind turbine order Vestas has received an order for the supply of 18 V1123.3MW wind turbines for the 59.4MW Yeong Yang Wind Farm project in South Korea. The order, placed by GS Yeongyang Windpower Co Ltd, also includes a 10 year full-scope service agreement. Once commissioned in late 2015, the wind farm will produce approximately 135,000MWh of clean renewable energy annually. If you need any assistance or advice in the region or for more information about upcoming events, please contact Mohd Azman Nasir: azman.nasir@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
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July 2014
EIC North and Central America News
North and Central America News Office News
Regional Comment
Shale gas exploration to begin in North Carolina The governor of North Carolina has signed a law allowing fracking in the state. By lifting a longtime state ban on hydraulic fracturing, shale gas exploration will begin as early as next year. The state legislature moved quickly to fast-track permits. It is estimated that the state has 83 million barrels of natural gas liquids. In California the state senate rejected a bill that would have placed a moratorium on fracking.
Nyree Carter is the new Regional Manager, North & Central America. Having previously worked for Weatherford and Anadarko, Nyree brings with her experience in the oil and gas area and, particularly, a strong background in events. As a Regional Manager, she will run the Houston office and the events/training programme and we are very excited to have her as part of the Americas team. We have eight LaunchPad spaces available in the EIC’s North America office, which is an excellent opportunity for companies wishing to start up or grow using Houston as their base. Please contact us if you’re interested in being based in the ‘Energy Corridor’.
Babcock & Wilcox develops CDCL technology Babcock & Wilcox Generation Group has received a US$2.5 million award from the US Department of Energy for Phase 2 development of iron-based Coal Direct Chemical Looping (CDCL) technology. Researchers with B&WPGG and the Ohio State University have collaborated on the development of the technology, an advanced process for clean power generation and CO2 capture at potentially lower cost than other CO2capture technologies. The CDCL process uses a unique fuel reactor design where coal reacts with iron oxidebased oxygen carrier particles. The chemical reaction converts the coal to a concentrated stream of CO2 for use in enhanced oil recovery or for permanent storage, and reduces the iron-oxide. The reduced oxygen carrier particles are re-oxidized in a second reactor where heat is liberated, which can be used to produce steam for the generation of electricity.
Forthcoming Events Industry Overview
Fundamentals of Oil & Gas Exploration & Production Tuesday, Wednesday 29-30 July 2014 Petrofac Training Services, EIC Houston This industry overview will cover hydrocarbon exploration, drilling and building a well, formation evaluation, completion design, well servicing and production platform systems.
Management Course
The Effective Manager Tuesday, Wednesday 5-6 August 2014 Change Creation, EIC Houston This course will enable delegates to examine their management style and its effect on others in their team.
W&T Energy buys into GoM E&P W&T Energy VI LLC has completed acquisition of deepwater Gulf of Mexico E&P properties from Woodside Energy. The transaction includes a 20% non-operating interest in the Neptune field plus all of Woodside’s interest in 24 deepwater exploration blocks, with 16 identified prospects, one of which is Arcadius in Garden Banks 346. Total net proved reserves acquired are 1.9 MMboe.
Management Course
Effective Selling and Account Management Thursday 7 August 2014 Change Creation, EIC Houston This course will define the account management process and how to effectively manage the customer through an ever changing business environment.
Fundamentals of Subsea Systems Wednesday 3 September 2014 EIC Houston This industry overview will provide an understanding of subsea oil and gas development and production.
McDermott to manufacture steel pipe stalklines McDermott International has entered into an agreement with the Mississippi Development Authority and State Port Authority granting McDermott exclusive rights to run a spoolbase and a marine operation base in the port of Gulfport. The new facility, to be operational in early 2016, will manufacture steel pipe stalklines to be used in offshore reeled pipelay activities.
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. EIC North and Central America Suite 850, 11490 Westheimer Houston, Texas 77077 Tel +1 713 783 1200 Email houston@the-eic.com
Enerflex to buy Axip Energy Canadian company Enerflex has entered into a definitive agreement to acquire the international contract compression and processing business, as well as the after-market services business of Axip Energy Services. The deal provides new access to attractive oil and gas producing countries including Mexico, Argentina, Brazil, Peru and Thailand.
Industry Overview
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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July 2014
EIC South America News
South America News Regional Comment
Office News
Pre-salt rounds in 2016 according to ANP The National Petroleum Agency (ANP) has said that Brazil’s next bidding round for exploration blocks in presalt areas will take place in 2016. Unlike the conventional bidding rounds under the concession-based regime, new pre-salt assets will be offered under a productionsharing scheme introduced in 2010. The last such round was organised in November 2013, which saw the Libra field awarded to a consortium of Petrobras, Shell, Total, CNOOC and CNPC.
EIC Rio is refurbishing the office during the World Cup. If you’re in the region, the team is still available to meet – just contact us by email. Rio Oil & Gas is taking place in September. We will be organising the UK Pavilion, with all stands now occupied. Several events have been arranged alongside, so if you’re planning a visit to the region, please drop by. Last month we hosted a Business Presentation lunch with GE Oil & Gas gathering more than 40 attendees who met with Mr Marcelo Soares, Global Leader for GE Wellstream and Maurício Valadares, Sourcing Leader for GE O&G Latam.
Brazilian oil and gas to require US$8bn per year According to a study by the National Organization of the Petroleum Industry (ONIP), oil companies in Brazil are expected to invest US$8bn every year until 2020 in operational expenditure, with great demand in areas such as subsea inspection and maintenance, environmental monitoring, operational safety and flow assurance. ONIP noted that this will create opportunities for many SMEs, which are often subcontracted by bigger contractors. Petrobras to boost gas supply The Brazilian national oil company has announced plans to increase its natural gas supply by a third in the next six years, reaching 157MMcm/d from the current 118MMcm/d. Petrobras expects demand to rise from 105MMcm/d to 129MMcm/d by 2020.
On the training side we had two Industry Overview workshops about Fundamentals of Subsea and Fundamentals of Power. Technical Workshops were presented by Spirax Sarco with Steam & Condensate Systems; James Walker hosted the Lunch & Learn initiative about Reliable Systems Through Fastening Science and Siemens presented an Introduction to Steam Turbines. These were great opportunities for members coming into the region to showcase their technology and approach the market.
Argentina in energy co-operation with the US Both countries have signed an agreement to strengthen trade and co-operation in the energy sector, including segments such as unconventional hydrocarbons, nuclear power and energy efficiency. According to the Argentina Planning Minister Julio de Vido, the agreement will: “Provide an institutional framework for the deals that companies from both countries are negotiating.” Chevron has recently closed a deal with the national oil company YPF to invest US$1.6bn to drill 170 wells in the Loma Campana licence, located in the Vaca Muerta shale formation.
Forthcoming Events Industry Overview
Fundamentals of Shipbuilding II Thursday 24 July 2014 Rio de Janeiro
Industry Overview
Fundamentals of Subsea II Saturday 26 July 2014 Rio de Janeiro
PetroCaribe welcomes new member El Salvador has become the 19th member of PetroCaribe, a Venezuela-led oil alliance. The group, which has existed for nine years, supplies Venezuelan oil at discounted rates to a number of countries – some of them politically aligned with the Maduro administration – in the Caribbean and Central America. While many member countries have benefited from lower oil prices, the economic and political crisis being experienced by Venezuela has stoked fears that the group may not be able to fulfil its supply commitments in the long term.
Industry Overview
Fundamentals of Upstream Tuesday 29 July 2014 Rio de Janeiro If you need support in taking the next step into the South American market, please feel free to contact us. Clarisse Rocha, Head of Americas Contact: clarisse.rocha@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
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July 2014
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