EIC Monthly News July 2015 by Energy Industries Council

EIC Monthly News July 2015

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The EIC Chief Executive

The Chief Executive

Welcome to the July edition of the EIC Monthly News, and it’s not just the weather that’s heating up. A busy season of energy industry events is well underway, kicked off by a very successful EIC Connect Middle East event. We are also watching with interest as the new Conservative Government’s energy policy takes shape. EIC Connect Middle East took place in Abu Dhabi at the beginning of June and was heralded by all involved as a great success, with a record attendance of both exhibitors and delegates. I’d like to personally extend my thanks to the Abu Dhabi National Oil Company (ADNOC) for its unprecedented support of the event and to all the members of the EIC Connect Advisory Board, which is chaired by Nicholas Cochrane-Dyet, Special Advisor to the Chief Representative at BP and Andrew Vaugh, Country Chair (Abu Dhabi) at Shell. Undoubtedly one of the highlights was the opening plenary session, with keynote speeches delivered by Philip Parham, the British Ambassador to Abu Dhabi and Ali Al-Jarwan, CEO of ADMA-OPCO. This set the scene for the day by discussing the five-year outlook for the oil, gas and power industries and highlighting the importance of bi-lateral trade between the UAE and the UK. Mr Al-Jarwan also gave a valuable insight into his company’s current activities and thought leadership. If you’d like to be a part of the EIC Connect success story, our next event is EIC Connect Energy, which will take place on 24-25 November 2015 in Manchester. For more information please contact Charmaine Atkinson: charmaine.atkinson@the-eic.com Back in the UK, I’m delighted to welcome Sarah Hutcheon, our new Regional Manager for Scotland and Norway. Sarah will harvest her wealth of experience and connections to enhance advantages for members throughout Scotland and Norway, opening up opportunities across the North Sea and the energy sector as a whole. When I introduced the last issue of the Monthly News, the UK had just voted in a new Conservative government, and named Amber Rudd as Secretary of State for Energy and Climate Change. DECC is now rolling out its energy policy, not least the controversial early end to new subsidies for onshore wind. Ms Rudd recently justified the move, saying: “Government support is designed to help technologies stand on their own two feet, not to encourage a permanent reliance on subsidy. We must continue to take tough judgements about what new projects get subsidies. “The Electricity Market Reform Delivery Plan projects that we require between 11-13GW of electricity to be provided by onshore wind by 2020 to meet our 2020 renewable electricity generation objective while remaining within the limits of what is affordable. “We now have enough onshore wind in the pipeline, including projects that have planning permission, to meet this requirement comfortably.” Not surprisingly, the move has proved controversial, not least among renewable energy companies and lobbyists. Nevertheless, the UK’s renewable energy revolution continues apace. In this issue, EIC Power, Nuclear and Renewables Analyst, Ryan Daily, takes a look at how the new government’s energy policy will take shape over the next five years. Whatever form the future energy mix takes, in the UK and overseas, we at the EIC remain committed to supporting our members in making the most of business opportunities wherever they may be. If you need help doing business in a region that’s new to you, or assistance in maximising your EIC membership please get in touch with Harriet Fray: membership@the-eic.com Claire Miller, Chief Executive www.the-eic.com

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Contents The Chief Executive

Sector Analysis

National Events

New Members

Member News

Events Diary

Overseas Events

Asia Pacific News

UK News

Middle East News

North America News

South America News

Training Services

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July 2015

EIC Sector Analysis

Sector Analysis

Beyond the Election – Renewable Energy and the new Government As the dust settles following the general election, attention can now turn to how the Conservatives’ victory will shape energy policy over the next five years. With the UK aiming to fulfil the EU target of 20% of energy generation from renewable sources by 2020, and also having targets set under the Climate Change Act (2008), committing the country to reduce emissions by at least 80% in 2050 from 1990 levels, there are drivers for the new government to continue to promote the development of the country’s renewable energy industry. However, as a result of ambiguous pre-election promises and announcements since returning to power, the Conservatives’ commitment to renewables and the green agenda has been called into question, despite the signing of a cross-party pledge to tackle climate change in February. The Conservative majority victory meant a significant cabinet reshuffle was needed, and included David Cameron’s decision to appoint Amber Rudd to Secretary of State for Energy and Climate Change, replacing the Liberal Democrat Ed Davey. Previously Amber Rudd, who was a minister at the Department of Energy and Climate Change (DECC) in the last government, had spoken of the need for action on climate change and a strong global agreement on carbon reductions in Paris later this year. Many within the renewable industry have welcomed the appointment calling her ‘a champion of renewables and the low-carbon economy’. Nonetheless many of the new Secretary of State’s initial polices appear to be at odds with each other. On one hand, Amber Rudd has spoken of the need to reduce carbon emissions while simultaneously reaffirming the new government’s commitment to the pre-election pledge to scrap subsidies for onshore wind. The decision to give local authorities the power to grant planning permission for wind farms in England was confirmed in the Queen’s Speech and was preceded by Amber Rudd’s announcement that she expects to push through new legislation by mid-2016, ending government subsidies for onshore wind. Although projects currently in planning will not be affected, this is a blow to developers and subsequently supply chain companies as the plight of prospective projects becomes even more uncertain. The removal of subsidies would likely hit smaller developers the hardest, increasing the cost of constructing a new wind farm substantially. Lower profitability for developers is likely to see capital expenditure fall in the industry, which has been estimated by industry experts to add £906 million annually to the UK economy, potentially putting many of the 19,000 full-time jobs in the sector at risk. Focus may have to switch to other green technologies in order to secure the country’s energy supply. Prior to the election Chancellor George Osborne used his 2015 Budget to announce that the government had entered into negotiations to provide financial support to the 320MW Swansea Bay Tidal Lagoon scheme. The developers of the £1 billion project are promising to use components www.the-eic.com

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supplied primarily by British companies and with five similar tidal lagoon projects currently in planning across England and Wales, Britain may have the opportunity to develop a unique and innovative industry, potentially becoming world leaders in the technology should government support arrive as expected. Other renewable technologies are also mentioned in the Conservative manifesto, specifically the pledge to insure Britain remains the market leader in offshore wind, while both offshore and rooftop solar have been name-checked by Amber Rudd since her appointment as potential areas of growth. These developments suggest that renewables are not going to be ignored by the government over the next five years. Despite this, with a referendum on the UK’s membership within the EU on the horizon, industry in Britain including the renewables sector is expected to face two years of uncertainty, potentially followed by an EU exit and therefore drastic changes to how the UK does business with its European neighbours. The extent to which investor confidence would be affected should the free movement of trade and business be restricted remains to be seen. The UK may become a less attractive destination for foreign investors should access to the European market be restricted by leaving the EU, likewise British companies working within the supply chain will almost certainly face greater obstacles when attempting to export to EU member states. Furthermore, should the UK vote to leave Europe, it would be under no obligation to meet EU emission reduction targets. The Climate Change Act makes it impossible for the UK to halt the development of renewable technologies completely, however, a vote to leave Europe may well see governmental support for green initiatives reduced in favour of spending elsewhere. Spending cuts were synonymous with the last government and are likely again with the Conservatives promising to reduce government expenditure by 1% a year. It is anticipated that this is likely to hit departments such as DECC harder than others, with the NHS and defence afforded a degree of protection from austerity measures by the coalition government. Despite some pro-renewable rhetoric before and after the election, the renewables sector in Britain is undoubtedly entering a period of uncertainty. Greater clarity will come in the following months as the new cabinet and new-look departments iron out their policies for the next five years, the suggestion that some renewable technologies, tidal power and offshore wind in particular, will receive increased government support mean that there are grounds for optimism even if David Cameron makes good on his promise to ‘halt the spread of onshore windfarms’. Ryan Daily Research Analyst (Power, Nuclear, Renewables) Tel +44 (0)20 7091 8628 Email ryan.daily@the-eic.com 3

July 2015

EIC National Events

EIC Connect Middle East 2015 is hailed as a huge success with over 95% of delegates who attended the event confirming that their objectives were met Major operators and contractors joined over 500 delegates at EIC Connect Middle East for a full day of conference sessions, contractor briefings and over 300 one-2-one supplier-buyer meetings.

Commenting on the event Edmund said: “EIC Connect Middle East exceeded expectations in all areas. Top policymakers addressed the delegates about the key oil projects in the UAE and were supplemented by senior representatives from the energy supply chain. The exhibition, one-2-one zone and networking areas were buzzing with activity throughout the day. In total, it was a big success.”

The event, which took place in the fabulous surroundings of the 5* St Regis Saadiyat Island Resort in Abu Dhabi saw a record attendance in both exhibitor and delegate numbers.

The theme was further developed throughout the conference programme as panellists from ADNOC and BP discussed the oil price impact on oil and gas opportunities in the morning conference session.

The event began with a British themed reception, sponsored by Orion Group, taking place on the evening prior to the event and provided rich networking opportunities for the speakers, exhibitors and VIPs in attendance. The reception was opened by Philip Parham, British Ambassador to Abu Dhabi with accompanying speeches from BP, Orion Group and respected author David Heard who shared his experiences of the history of the oil and gas industry in the UAE. Keynote speakers Philip Parham and Ali Al-Jarwan, CEO of ADMA-OPCO, set the theme for the day by discussing the five year outlook for the oil, gas and power industries in the opening plenary session, highlighting the importance of bilateral trade between the UAE and the UK.

Supporting the conference programme, EIC specialists Neil Golding, Head of Oil & Gas and Thomas Hoefling, Regional Analyst (Middle East) delivered a presentation on the upcoming project opportunities in the GCC region highlighting Saudi Arabia and the UAE as the key areas for project spend in the upstream and downstream sectors. Saudi Arabia and the UAE also showed the same strength in the power sector along with Kuwait, with an estimated spend of over US$5,000 million capex in the next five years.

The conference programme, sponsored by Salford University, was chaired by Edmund O’Sullivan, Chairman of Events at MEED, who brought a wealth of knowledge and insight over the day.

Saudi Arabia is the only area to show further investment in the nuclear sector with plans to construct 16 nuclear reactors by 2035 in a project led by King Abdullah City for Atomic & Renewable Energy (KACARE).

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July 2015

EIC National Events Emphasis is currently being placed on energy efficiency, given the growing challenges in the Middle East of population growth, heightened economic activity and high rates of energy consumption that are recognised as being unstable in the longer term. This has led to the development of clean energy projects in the region and in the afternoon conference session high-level speakers from ACWA Power, Masdar, Emirates Nuclear Energy Corporation (ENEC) and Strategy& outlined examples of their major clean energy projects, the challenges involved and future equipment and services opportunities for the supply chain. Two lively panel discussions took place throughout the event, the first focusing on HVO’s and local content with panellists from ADNOC, Shell, Business Gateways International and Salford University. The final session of the day, titled ‘Contradictions in Contracting’ visited the debate surrounding various procurement models and how they might be most appropriate between the client, contractor and the success of the project itself. Panellists from Kentz, ADNOC and Endress+Hauser took part in this session discussing the many benefits and disadvantages of the different contracting models.

As delegates streamed away from the event, leaving reception, which this year was sponsored by Rigzone, the feedback was overwhelmingly positive. The success of this year’s event was partly due to the establishment of the Middle East Advisory Group whose support and vast collective knowledge has been instrumental in shaping the programme. Nicholas Cochrayne-Dyet, Special Advisor to the Chief Representative, BP and Chairman of the Middle East 2015 Advisory Group commented: “The recently well attended EIC Connect event was deemed a resounding success by most of the participants who’d either managed to learn about new opportunities/technologies/partnerships or even in some cases actually managed to make a deal. The positive outcome ended on a high, with attendees asking about participating in the next event.”

A series of highly informative and focussed contractor briefings were delivered from Fluor, Kentz, McDermott and Petrofac. These sessions were in high demand throughout the day as delegates listened to what opportunities lay ahead and how interested each company is to work with the UK supply chain. EIC Connect Middle East provided an excellent platform for companies looking to set up in the region with an information session, led by panellists from Andrews Kurth and Xodus Group that covered the legal and commercial practicalities of doing business in the region. A UAE Landing Zone was placed at the event offering advice on the many ways in which the EIC can help members enter or expand into new markets. ADNOC and its operating companies including ADMAOPCO, ADGAS, Al Hosn Gas, Gasco and Zadco had a strong presence at the event, sending over 30 representatives from their registration, procurement and engineering teams to circulate the exhibition and have one-2-one meetings with delegates. These appointments were quickly snapped up by those companies who wanted to work with ADNOC and learn about their pre-qualification process. The one-2-one zone, sponsored by Corrotherm also hosted appointments with Amec Foster Wheeler and all companies who delivered contractor briefings.

The next event in the Connect programme, EIC Connect Energy will take place on 24-25 November 2015 in Manchester.

The exhibition, which this year saw over 40 UK companies promoting their products and services to a very interested audience saw a busy stream of delegates circulate throughout the hall in search of networking and sales opportunities. The Delegate Networking Area, sponsored by Amec Foster Wheeler, was utilised heavily throughout the event as delegates took the opportunity to hold meetings with existing and new contacts in between sessions, and where a three-course buffet lunch was served. www.the-eic.com

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Stand and Sponsorship bookings are currently being taken for this event. For more information please contact: Charmaine Atkinson National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com

July 2015

New Members

New EIC Members

The Nominated Representative is Mr Nick Eagleton, Sales Manager. Austin Hayes provides specialist application of protective surface coatings and refurbishment services. Built on a foundation of quality assurance, uncompromising safety and steadfast loyalty, decades of experience and core values have propelled the company to be a leader in its industry and has allowed it to build long and lasting relationships with its customers. Austin Hayes has been providing refurbishment services to the MoD for over 50 years and servicing the engineering industry for over 35 years providing protection for equipment operating in extreme environmental conditions such as onshore, offshore and subsea. Austin Hayes uses its extensive knowledge base, unrivalled technical expertise and unparalleled practical experience to provide total coating solutions for customers requirements.

New Primary Member

Allerton Steel Ltd

Allerton House Northallerton Business Park Thurston Road Northallerton DL6 2NA Tel +44 (0)1609 774 471 Email paul.denning@allertonsteel.co.uk Web www.allertonsteel.co.uk The Nominated Representative is Mr Paul Denning, Sales Director. Allerton Steel specialises in heavy (lifting capacity over 60te), complex, and/or high weld content steel fabrication, and machining, including plate and box girders. The company has significant experience of the oil and gas, renewables, as well as bridges (road, rail and pedestrian), and high rise commercial buildings, market sectors. In the offshore sector, both oil and gas and renewables, Allerton Steel can offer structural work, permanent (deck plated girders and nodes) and temporary (seafastening and load-out grillage) fabrications, and mechanical structures, including LARS, j-lay towers, and pile gripper. Allerton Steel can add capacity and capability to your business.

New Global Member

BASF Plc

Earl Road, Cheadle Hulme Cheadle Cheshire SK8 6QG Tel +44 (0)7917 174 627 Email ian.lynam@basf.com Web www.pu.basf.eu/uk The Nominated Representative is Mr Ian Lynam, Business Manager – Oil & Gas. BASF Plc is a leading supplier of performance materials and has a comprehensive product and service portfolio. Through its global network, BASF provides fast local support, from technical service and sales to production and marketing during the development of customised solutions. Over the years BASF Plc has been consistently expanding its expertise by developing customised performance materials for offshore applications. The development has been focused not only on resistance to high temperature and seawater but also on the use of environmentally friendly catalysts. Moreover the products are extremely tough.

New Global Member

Asset Guardian Solutions Ltd

Elite House Starlaw Business Park Livingston EH54 8SF Tel +44 (0)1506 597 913 Email peter.beales@assetguardian.com Web www.assetguardian.com The Nominated Representative is Mr Peter Beales, Business Development Manager. Asset Guardian™ provides a comprehensive solution for protecting the integrity and management of process control software associated with PLC, DCS, SCADA, and intelligent devices. Conceived in 2000, Asset Guardian is a multifaceted tool set that improves workflow, provides a secure, centralised means of managing and reporting on configuration change, software revision status, fault logging and system bypasses. Moreover, this innovative solution offers an effective means of disaster recovery and ensures its users are in compliance with ISO, IEC standards, government directives and industry best practices for the ‘configuration and change management’ of process critical systems.

New Global Member

Direct Scaffold Supply (UK) Ltd

27 Bruce Grove, Orpington Kent BR6 0HF Tel +44 (0)7740 406 037 Email dcheeseman@directscaffoldsupply.com Web www.directscaffoldsupply.com The Nominated Representative is Mr Daniel Cheeseman, Director. DSS is one of the largest manufacturers/ distributors of scaffolding and formwork products worldwide, best known for its ability to supply quality product rapidly to meet demand from an impressive inventory of over US$40 million. Global presence spans through Canada, North America, Latin America, Asia and Europe, having diversified manufacturing facilities managed by an experienced team of engineers and quality representatives maintaining ISO 9001 accreditation, and having the ability to supply chain manage large projects and proprietary items. Product range/capabilities include: commercial and industrial scaffold; concrete forming equipment; special event equipment; Beric Davis valves; proprietary supply chain management.

New Primary Member

Austin Hayes Ltd

Carlton Works Cemetery Road Yeadon Leeds LS19 7BD Tel +44 (0)1132 502 255 Email nick.eagleton@austinhayes.com Web www.austinhayes.com www.the-eic.com

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July 2015

New Members New Primary Member

New Primary Member

Industrial Technology Systems Ltd (ITS)

Power Wholesale Ltd

ITS House High Force Road Riverside Park Middlesbrough Teesside TS2 1RH Tel +44 (0)1642 222 232 Email m-taylor@its-ltd.co.uk Web www.its-ltd.co.uk The Nominated Representative is Mr Mark Taylor, Business Development Director. Established in 1991, Industrial Technology Systems Ltd (ITS), an independent systems integrator, offers a range of automation solutions designed to improve the performance of companies in the energy sector by addressing key industry challenges including operational efficiency, quality improvements, data visibility, traceability, validation and obsolescence. ITS designs and implements PLC, SCADA, DCS, fire and gas, ICSS, BPCS, process control, ESD, management information systems, situational awareness solutions, traceability systems, OEE, remote cathodic protection monitoring and vision systems from industry-leading suppliers. ITS’ service portfolio includes everything from consultancy, FEED studies, engineering design and validation, through to project implementation, support and training. ITS has significant experience in highly regulated industries including energy, nuclear, renewables, utilities, oil and gas and power. In December last year ITS was awarded its second major Control Systems Framework Agreement by Sellafield Ltd. ITS has been working in the nuclear industry since 1996 and has successfully completed over 150 control system, vision inspection, management information, database and fuel tracking projects for Sellafield Ltd, Low Level Waste Repository, National Nuclear Laboratory, Magnox (Wylfa), Cavendish Nuclear, Sizewell and Oldbury.

101-104 High West Street Gateshead Tyne & Wear NE8 1NA Tel +44 (0)191 477 5721 Email graham.harrison@powerwholesale.co.uk Web www.powerwholesale.co.uk The Nominated Representative is Mr Graham Harrison, Business Development Manager. Power Wholesale is a well-established electrical wholesaler based in the North East of England. Since being founded in 1964, Power Wholesale has supplied many different markets, mainly specialising in the oil, gas and petrochemical industry. The Projects Division’s aim is to actively seek out major prestigious projects such as the Shell Bonga project, awarded to Power Wholesale by AMEC Services London, with a value of £1 million. The Manufacturing Division undertakes the assembly of junction boxes for use in hazardous and non-hazardous areas. Power Wholesale has a varied customer portfolio from a wide range of industries. The company supplies a great many differing products to companies such as: Shell UK (oil and gas); Balfour Beatty ESL (electrical contractor); AMEC Services (offshore fabrication); Piramal Healthcare (pharmaceuticals); OGN (fabrication yard) and Hertel (accommodation block fabrication). Power Wholesale is fully ISO 9000 accredited and a copy of its certificate can be produced upon request. New Global Member

Seatrax (UK) Ltd

Portland Wharf Support Base Southtown Road Great Yarmouth Norfolk NR31 0JJ Tel +44 (0)1493 651 311 Email bjennings@seatrax.co.uk Web www.seatrax.com The Nominated Representative is Mr Bob Jennings, Business Development Manager. Recognised as one of the leaders in deep-water lifting installation, Seatrax is unrivalled in its ability to provide safe, cost-effective, easily maintained and high quality offshore cranes. Seatrax is a manufacturer of API 2C 7th edition kingpost cranes and API 2C portable rental cranes. Each Seatrax crane is based on a state-of-the art kingpost concept that can easily be configured to meet a client’s specific needs, while remaining the safest form of offshore pedestal crane mount available in the world. Seatrax cranes are in service worldwide on semi-submersibles, jack-ups, tension leg platforms, SPAR facilities, drillships, FPSOs, fixed platforms and quayside locations, demonstrating the company’s expertise and focus on providing a product that remains unmatched in quality, reliability and superiority.

New Primary Member

Moflash Signalling Ltd

11 Upper Conybere Street Highgate Birmingham B12 0EB Tel +44 (0)121 440 5894 Email simon@moflash.co.uk Web www.moflash.com The Nominated Representative is Mr Simon Evans, Sales Director. The Moflash explosion proof alarm and signalling range is fully approved to ATEX and IECEX certification. This allows Moflash to compete in the global hazardous area markets to meet the high end specification in both onshore and offshore applications, chemical, petrochemical, marine and system integration applications. The products manufactured by Moflash include sounders, beacons (both LED and Xenon versions), push buttons and sounder/beacon combined products, manual call points, status indication equipment and junction boxes. EXD glands are also available on all items.

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July 2015

DNV GL has awarded Siemens Wind Power with offshore prototype certification for its new 7MW offshore wind turbine SWT-7.0-154 which will now undergo field testing in Denmark.

Alderley FZE, a subsidiary of Alderley Plc, has secured a contract to supply six liquid metering systems for the north and south tank farm facilities and truck loading arm facilities at the Jazan Refinery in Saudi Arabia. The scope of supply for the project includes designing and engineering metering systems for crude oil, ULS diesel, propane, butane, high sulphur fuel and black oil. The crude oil metering system is to be supplied to the South Tank Farm Facilities and will be the largest system to be designed and engineered for this contract. It will consist of 7x16.67% 24” meter runs with a flow rate of nearly 16,000 m³/hr. The systems will utilise helical type turbine metering technology. The five additional liquid metering systems will be supplied to the North Tank Farm. ULS diesel, propane and butane metering systems will utilise turbine metering technology, the high sulphur fuel metering system will use PD meters and the black oil (vacuum residue) metering system, will utilise coriolis flow metering technology.

The six metering systems will be engineered, designed and manufactured at Alderley’s Dubai facilities with support from its local Saudi facility in Dammam. Delivery of the metering systems is expected to be completed by 2016. Alderley FZE provides the full range of services for engineering, supply and operation of bespoke metering and produced water treatment solutions to the oil and gas industry. More about Alderley can be found at www.alderley.com

The new 7MW offshore wind turbine has been developed by Siemens as an evolution of the company’s flagship offshore wind turbine, the SWT-6.0-154, which has already set new industry standards in terms of gearless turbine design. The latest Siemens model delivers nearly 10% more energy production than its predecessor under offshore wind conditions, while retaining the same proven reliability, which sees it recognised as the most innovative wind turbine on the market today. Steffen Haupt, Global Head of Business Development and Sales, Renewables Certification at DNV GL, commented: “Having supported Siemens with type certification of the SWP-6.0-154 last year, DNV GL has been able to guarantee continuity for the certification process not only to Siemens as our customer, but also to their customers and partners.” Visit www.dnvgl.com

Small volume provers will be supplied with the metering systems with the exception of the black oil metering system which will use a master meter due to the high temperature. Control and Supervisory control systems will also be provided.

Adrian Phillips, Managing Director, Alderley FZE, said: “This is the second contract after the initial Hanwha Engineering and Construction Corp order we have been awarded for the supply of vital measurement equipment for the Jazan Refinery and Terminal project, giving us 14 metering skids in total. We have a long history of delivering projects in the Kingdom of Saudi Arabia and are pleased that we can continue to support the country’s industrial infrastructure.”

The prototype certificate confirms the compliance of the wind turbine design with the mandatory prototype requirements of the IEC 61400-22 standard and the Danish Executive Order (DEO). Being granted Prototype Certification confirms all relevant safety features on the turbine and allows installation of the prototype, to demonstrate how it performs. The prototype certification is a major step towards reaching the final Type Certification.

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MEMBER NEWS Most industrial plants in the UK and Europe were built between 1960 and 1980 and were expected to operate for no more than 40 years. However, many are still operating today – several years past their expected life span. A lot of equipment is being still used in accordance with the initially selected design specification, but may not now be capable of functioning as intended. The HSE suggests that 50% of European major hazard ‘loss of containment’ events arise from technical plant failures due to ageing mechanisms such as erosion, corrosion and fatigue. Many production sites have changed their processes to suit product developments over time, but not adapted the configurations of components being used within the process to cope with these variations. For example, some process plants have grown in capacity by increasing operating pressures, which is having a strain on equipment such as safety relief valves and rupture (bursting) discs. It is believed that around a third of relief valves fail to operate as intended because of changing process conditions. The back pressures that were not present when the original design was specified are often not considered by those currently running the plant. Now in their ‘lifetime extension’ period, more intensive monitoring is required to ensure plant equipment is still fit for purpose, and that its safety integrity remains at a sufficient level. Rather than taking a reactive approach, where maintenance spends often exceed production, a longer-term strategy is required to limit the risk of regular equipment failure and safeguard the future of the plant.

According to the HSE, recognising the ageing mechanisms that affect each process and then introducing and maintaining a structured management system approach can mitigate the potential for failure and significantly reduce the incidents of major accidents in the industry. Rupture disc manufacturers like Elfab support customers in managing this change and assist with the implementation of the latest pressure relief equipment as part of an efficient system. Risk is being limited through the installation of new rupture disc technology and ongoing maintenance costs are being saved as a result. Through joint site surveys to review existing rupture disc specifications, recommendations are made to rationalise stock parts. The replacement of old rupture discs with the latest designs enables obsolete stock to be removed and ensure all installations are kept up to date. Due to high operating ratios and tighter tolerances offered by the latest rupture disc designs, multiple old specifications can be replaced by a single disc solution. Less disc variety and greater batch quantities mean that customers are benefitting from greater economies of scale with their pressure relief devices. Elfab’s Opti-Gard™ reverse-acting rupture disc offers an industry-leading 3% tolerance and 97% operating ratio. By making the most of these latest improvements in rupture disc technology, stock variety can be reduced by up to 60%. To ensure best practice in your ageing plant environment, Elfab offers free advice and consultation on pressure relief devices. Contact Elfab to find out more or go to www.elfab.com

Oteac, the Aberdeenshirebased integrated fire and safety services organisation, has acquired critical heating, ventilation and air conditioning company HVAC&R Ltd, in a deal worth £10.25 million with funding from Lonsdale Capital Partners. The company’s acquisition and integration with HVAC&R will create an enhanced engineering services offering for customers’ safety needs, as well as providing opportunities for growth both in the UK and internationally. HVAC&R will retain its name and will become part of the Oteac Group, with its 108 employees more than doubling Oteac’s existing staff of 80. Bill Hogarty, Oteac Chief Executive, will oversee both companies and their integration. Lonsdale, which holds a controlling stake in Oteac, has also appointed Alan Wilson to be Non-Executive Chairman of the Group, and he brings a wealth of experience in the sector. HVAC&R’s Managing Director, Raymond Davidson, will remain with the company to provide customer support during the period of integration. Russell Bell, the other company founder, will also be remaining with the company in his current role of Services Director. HVAC&R (Heating, Ventilation, Air Conditioning and Refrigeration Limited) headquartered in Aberdeen, Scotland is a leading provider of business critical and bespoke engineering solutions; primarily to the oil and gas, onshore petrochemical and marine sectors. The company operates predominately in the North Sea as well as overseas. Visit www.hvac-refrigeration.co.uk @TheEICEnergy

Stuart Billingham, Sales Director, Kent Introl, said: “We are delighted to announce this contract with Statoil and Aker Solutions. It has been awarded following Kent Introl successfully securing a long-term frame agreement with Statoil until at least 2020, with further options to extend to 2026. This is the third time Kent Introl has held frame agreements with Statoil for its control and choke valve products, having previously secured contracts from 1996-2001 and 2007-2015. We look forward to continuing our relationship over the long term.” Supporting Kent Introl in the execution of this contract is OME, Kent Introl’s appointed representative in Norway since 2008. OME will provide local support for individual projects and aftermarket activities. The Johan Sverdrup field is one of the five biggest on the Norwegian continental shelf, with expected resources of between 1.7-3 billion barrels of oil. Phase one of the development will comprise four platforms, production, drilling, riser and living quarters. Production startup for phase 1 is scheduled for late 2019. Visit www.kentintrol.com

The Carten HiLife ceramic ball valve is now available from Carten’s distributor LAA UK. The HiLife series has been developed to address new challenges in industries that require solutions to abrasive and corrosive media, in particular fine powder application (PCI, TiO2, and Polysilicon). Zirconia-Toughened Alumina is used in all stationary ceramic components of the Carten HiLife ceramic ball valve due to its high resistance to wear and abrasion. As the ceramic ball needs to be extremely strong, wear-resistant, chemically inert, operate in extreme environments, and have a fracture toughness of a high level; Cerium-stabilised Zirconia (Ce-TZP) is selected in the design. Dead space is also reduced in the HiLife ceramic valve to minimise possible aggressive fine particles being lodged in any cavity – thereby avoiding any crystallisation causing cracking to ceramic components. The HiLife series has two-way flow capability, is available from ½” up to 6” line sizes (DN15-DN150), is rated to PN16 as standard (higher pressure rating on request), can be provided in a range of flange standards (PN16, PN25, ANSI150, ANSI300, JIS etc), and is provided with air tight Class VI seat leakage classification. Retrofitting with all major brands of actuators and instrumentation manufacturers creates no barrier due to the ISO5211 bracket orientation.

Statoil - Statoil ASA

Taking into consideration the frequent maintenance and replacement costs required of competitor severe-service valves, the HiLife clearly improves on overall service life, accuracy and control and reduces the total cost of ownership in erosive and abrasive systems. For further details please contact the LAA sales team on Tel +44 (0)1895 206 780 Email smyth@laa-uk.com

LAA UK

Koso Kent Introl (KKI) has announced that it has successfully won a contract to supply all control and choke valves to Statoil/Aker Solutions for one of the largest ever discoveries on the Norwegian Continental Shelf; the Johan Sverdrup offshore field. KKI anticipates manufacturing and delivering more than 400 valves over a three-year period.

Ovivo has been awarded a contract to supply a polishing demineralisation water system for a power plant in South East Asia. Through its heritage brand Christ Water Technology, Ovivo will supply equipment meeting the requirements for ultra-clean demineralised water and complying with the feed water guidelines for high pressure boilers. The contract is worth over C$4 million and the delivery is scheduled for 2016. Ovivo’s system is part of a cogeneration plant that will not only supply steam and power to the petrochemical plants and the other facilities in the complex, but it will also supply power to the national grid for public consumption. The scope of supply includes the engineering, manufacturing and commissioning of four lines of carbon activated filters and mixed bed filters to further demineralise the water coming from the centralised demineralised water supply. Ovivo is a global company dedicated to water and wastewater treatment. It offers comprehensive technological solutions, as well as services and equipment tailored to specific client needs. Ovivo operates in over 15 countries with more than 800 employees. Visit www.ovivowater.com www.the-eic.com

MEMBER NEWS

The Gamma’s compact form and even optical distribution make it equally suitable for use as either a floodlight or a lowbay. It is ideal for use in height restricted or congested areas where there is a need for higher levels of white light, such as over pumps or rotating machinery. The design of the Gamma has considered the rigours of operation associated with oil and gas production. In addition to harmonic and overvoltage protection (EN61000-3-2 & EN61000-3-3), the control gear features thermal cut off protection to maintain LED life. All Gamma luminaires are supplied with a five year complete system warranty. Designated suitable for use in Zone 2 gas and Zone 21 & 22 dust, the Gamma is both ATEX and IECEx compliant. It is constructed from marine grade stainless steel with toughened glass, stainless steel fixings throughout and is designed to operate within an ambient range of -50°C to +55°C (T3/ T4). These features ensure the luminaire is capable of withstanding the harshest of environments. For further information on the full range of Abtech products and services and a full specification for the Gamma LG please visit www.abtech.eu

An advanced tank lining protection system is set to bring new benefits to the oil and gas industry in Europe, the Middle East and Africa. Nova-Plate 325 is an amine cured, glass and ceramic filled novolac epoxy tank lining from SherwinWilliams Protective & Marine Coatings. It has been designed to protect steel storage tanks and vessels interiors from crude, refined products, chemicals and process water, including high temperature and high pressure service. Conventional lining systems struggle to withstand crude and process water at higher temperatures and pressures, like the ones faced when extracting oil from deeper depths or processes working at elevated temperatures. Facing 150°C crude oil at elevated pressures or 99°C produced water is becoming more common, and conventional linings cannot cope with the challenges. Nova-Plate 325, which has already made inroads into the North American market, offers benefits to the customer including coping with 150ºC crude and 99ºC process water. The system also offers a quick return to service within 24 hours and high film-build, meaning it can be applied in a single coat. This brings further application benefits when compared with the scenario faced when using conventional multi-coat tank linings that can also be slow curing. Expected uses include storage tanks, vessels and piping, for crude, refined products, chemical or process water handling or secondary containment, with key industries served including the oil and gas and mining sectors. Nova-Plate 325 is already an awardwinning product in the US, and was named the Steel Tank Institute 2013 Affiliate New Product of the Year. Visit www.sherwin-williams.com/ protectiveEMEA

Unique Seaflex

Gamma is a low glare LED luminaire incorporating Abtech’s innovative optical light guide technology, designed to minimise the effects of glare. Light is transmitted from indirectly mounted LEDs into the required field of distribution via a patent pending tubular light guide optic. The result is a uniform, white light (5,700k) with good colour rendering (>80) properties.

Unique Group’s Buoyancy & Ballast division has announced the official launch of an integrated system designed to neutralise the risk to life and possessions from the potential capsize or sinking of smaller vessels. The Seaflex AutoInflating Vessel Emergency (SAVE) System is a product of the division’s Seaflex brand, which specialises in the development and manufacture of inflatable buoyancy systems for marine and offshore applications. By integrating existing hydrostatic valve technology and gas-based auto-inflation systems with its Inflatable Buoyancy Units (IBUs) which have been used for tasks such as inshore salvage operations since 1987, Seaflex has developed what is believed to be the first such system capable of being either integrated at a new-build stage or retrofitted at a later date and can also be manually triggered in the event of an impending emergency. Chris Sparrow, Seaflex Global Sales Manager, said: “This bespoke product requires installation for individual vessel layouts, displacements and system locations. It is not an off-the-shelf product. For owners of small craft, the benefit in investing in SAVE is ultimately to gain peace of mind, and we are ready to work from the vessel GA to offer simple and cost-effective consultancy and customisation services.” For more information please visit www.seaflex.co.uk @TheEICEnergy

Events Diary

UK, Overseas & Training July 2015 7 Regional Showcase: Member Update 9 Corporate Entertainment: Northern Region Golf Day 2015 9 Management Course: Developing a Business Case 14 Technical Workshop: Introduction to Bolted Joint Integrity 15 Technical Workshop: Introduction to FPSOs 16 Business Presentation: Lunch with GE Oil & Gas 16 Management Course: Technical Report Writing 16 Sector Showcase: CCS Showcase White Rose Project 20 Export Showcase: Indonesia/Malaysia Showcase 21 Sector Showcase: Global LNG Opportunities 21 HSE Training: ATEX/IECEx Certification 23 Industry Overview: Fundamentals of Nuclear 23 Industry Overview: Fundamentals of Nuclear 23 Industry Overview: Fundamentals of Natural Gas 25 Industry Overview: Fundamentals of Subsea 27 Industry Overview: Fundamentals of Downstream 30 Export Showcase: Opportunities in Egypt 31 Industry Overview: Fundamentals of Downstream

EIC Aberdeen Macdonald Portal Hotel, Cheshire Neos Learning, EIC London Hydratight, Deer Park, Texas EIC Aberdeen Rio de Janeiro Rothera Group, EIC Aberdeen Leeds United Football Club EIC London EIC London R. STAHL, EIC Houston EIC London EIC London EIC Rio de Janeiro EIC Rio de Janeiro EIC Kuala Lumpur EIC London EIC Kuala Lumpur

August 2015 4 Industry Overview: Fundamentals of Refining & Petrochemicals EIC London 4 Management Course: Presentation Skills Made to Measure Training, EIC London 4 Business Presentation: Opportunities with Sapura Kencana EIC Kuala Lumpur 5 Industry Overview: Fundamentals of Subsea Engineering EIC London 5 Management Course: Tendering for Success Rothera Group, EIC London 6 HSE Training: ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 6 Industry Overview: Fundamentals of Oil & Gas EIC London 12 Industry Overview: Fundamentals of Power EIC Kuala Lumpur 15 Technical Workshop: Introduction to FPSOs EIC Rio de Janeiro 26 Corporate Entertainment: Home Alone Curry Night Mint Leaf Restaurant, Dubai September 2015 2 Industry Overview: Fundamentals of Power 9 Management Course: Key Account Management 16 Management Course: Networking That Works 17 Export Showcase: North America LNG and Downstream 17 Technical Workshop: Introduction to Shale Gas 21 Export Showcase: Opportunities in Post-Sanctions Iran 23 Technical Workshop: Introduction to Compressors 29 Management Course: Employment Law 30 Management Course: Terms and Conditions in the Contract

E.ON UK, Nottingham Change Creation, EIC London EIC London EIC London EIC London EIC London Siemens, Camberley bto solicitors, EIC London Four Points by Sheraton, Dubai

October 2015 6 Industry Overview: Fundamentals of Oil & Gas EIC Houston For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

July 2015

Events Diary

Exhibitions & Delegations 2015

9-12 September Oil & Gas Indonesia (OGI)

Jakarta

Status Booking Now

21-25 September Overseas Delegation to the Philippines

Booking Now

28-30 September Overseas Delegation to Angola

Booking Now

28 Sept-2 October Overseas Delegation to Mexico

19-22 October Overseas Delegation to Ghana

Booking Now

27-29 October OTC Brasil

Rio de Janeiro Booking Now

tbc October Overseas Delegation to Papua New Guinea 9-12 November ADIPEC

Abu Dhabi

23-27 November Overseas Delegation to Cambodia

23-27 November Overseas Delegation to Venezuela

2016 10-15 January Overseas Delegation to Algeria

18-21 January World Future Energy Summit (WFES)

Abu Dhabi

24-26 February Australasian Oil & Gas (AOG)

Perth

Booking Now

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

National Events 2015

8-11 September Offshore Europe

15 October EIC National Dinner

24-25 November EIC Connect Energy

@EICOverseas

Status

Aberdeen

Stand Bookings Open

London

Booking Now

Manchester

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

AUSTRALASIAN OIL & GAS EXHIBITION & CONFERENCE

24 â&#x20AC;&#x201C; 26 FEB 2016 CONTACT mark.gamble@the-eic.com www.the-eic.com

@TheEICEnergy

July 2015

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Overseas Delegation to Angola 28-30 September 2015 The EIC is managing an oil and gas trade delegation to Luanda in Angola. Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings presented by qualified speakers with in-market experience and the opportunity to meet with local companies. Despite the current oil price environment, ambitious plans of the Angolan government as well as proven reserves offer promising opportunities for the UK supply chain. According to EICDataStream projects worth a combined US$87.6 billion across Angola’s oil and gas industry are currently under development or have entered planning. Spurred on by the government’s aim to increase production and interest surrounding natural gas and onshore and pre-salt exploration, there are likely to be tremendous opportunities for the UK supply chain now and in the future. This should be tempered against aggressive local content initiatives that will need to be embraced. Contact: mark.gamble@the-eic.com

OTC Brasil attracts the world’s foremost experts and companies to share knowledge, make new contacts, and explore the latest technologies in the offshore sector. Themed ‘The Atlantic: From East to West – An Ocean of Innovation’, this flagship technical conference will cover all aspects of offshore oil and gas exploration and development including topics related to geology, geophysics and subsurface technologies, offshore drilling and well systems, floating structures, advanced subsea production, as well as subjects on increasingly complex integrity management to keep offshore facilities operating safely and efficiently. OTC Brasil is the perfect platform for UK companies who are new to the market, those in the process of acquiring Brazilian companies, setting up manufacturing facilities, and those with fully fledged operations and experience in the market. For more information contact: deanne.lintorn@the-eic.com Delegation Report Overseas Delegation to Saudi Arabia & Bahrain 17-21 May 2015 The delegation consisted of nine delegates from eight UK companies keen to find out more about the current oil and gas opportunities in these ever growing markets. Saudi Arabia is the world’s largest exporter of oil and has played a pivotal role in insuring that the world’s energy demands are met and will continue to maintain this position in the years to come. Bahrain has 120MMbbl of oil reserves and 3.25Tcf of gas reserves. The kingdom shares production of the 300,000bbl/d Abu Safah offshore field with Saudi Arabia and this is connected to Bahrain’s Sitra refinery via pipeline. Delegates had the opportunity to meet with key local contractors including WorleyParsons, Fluor Saudi Arabia, Kentz Saudi Arabia, Mustang HDP, Petrofac and Amec Foster Wheeler. The programme also consisted of a morning spent at the headquarters of Saudi Aramco as well as a meeting with Saudi Electricity Company where many opportunities were discussed. The delegation also met with Al Rawabi and AbdulKarim group as well as attending a Networking Reception hosted by the British Trade Office. After three nights in Al Khobar, the delegation travelled to Bahrain via the causeway connecting the two countries. Like Saudi Arabia, domestic demand for gas in Bahrain is also on the rise and Bahrain plans to increase the importation of natural gas. The government plans to complete construction of a 400MMcf/d LNG import facility by the beginning of 2017. On the Downstream side, US$10 billion is being invested to expand the capacity of the Sitra refinery to 360,000b/d and a further US$1.7 billion is being invested on the expansion of the Sitra chemical plant. The delegation attended two well received meetings with BAPCO and Tatweer Petroleum. A very well attended Networking Reception also took place at the British Embassy. Even in the current climate within the industry, this trade delegation served as proof that there are vast opportunities available in both markets for UK Plc.

Overseas Delegation to Ghana 19-22 October 2015 The EIC is managing an oil and gas trade delegation to Luanda in Ghana. Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings presented by qualified speakers with in-market experience and the opportunity to meet with local companies. In December 2010, the US$3.3 billion deepwater Jubilee project came online. Ghana’s crude oil production reached 99,000b/d in 2013, and is estimated to rise significantly over the next decade. Ambitious plans of the Ghanaian government to ramp up commercial utilisation of associated natural gas to reduce dependency on unreliable gas imports while meeting power generation demand as well as proved reserves of 0.66 billion barrels offer more promising opportunities for the UK supply chain. Contact: mark.gamble@the-eic.com OTC Brasil Oil & Gas Exhibition and Conference 27-29 October 2015 #EICOTCBrasil15 Riocentro Convention Center, Rio de Janeiro The EIC is pleased to be returning to host the UK National Pavilion at OTC Brasil 2015. The International OTC Brasil Oil and Gas Exhibition is one of the world’s foremost events for the development of offshore resources in the fields of drilling, exploration, production and environmental protection. OTC Brasil focuses on the importance Brazil will play in meeting increasing global energy demand. The exhibition brings together key personnel within engineering, operations and procurement providing a unique opportunity to suppliers of goods and services worldwide attracting more than 15,000 industry leaders and buyers from 45 countries. www.the-eic.com

@TheEICEnergy

July 2015

EIC Asia Pacific News

Asia Pacific News

Regional Comment

Malaysia SapuraKencana to win RM1.5 billion global jobs SapuraKencana Petroleum Bhd (SapKen) is poised to land two international jobs in India and Mexico respectively totalling RM1.5 billion, according to a source close to the deals. The job in India gives SapKen the edge over local-based Larsen & Toubro Ltd, as it has put in the lowest bid among the four contenders interested in a portion of the Oil & Natural Gas Corp’s Mumbai High South (MHS) Phase 3 redevelopment project of US$200-300 million.

Office News

EIC Asia Pacific attended the China International Exhibition on the Nuclear Power Industry (CIENPI 2015) in Beijing from 20-24 April 2015. 20 UK companies exhibited within the UK Pavilion and many more came as visitors. In conjunction with CIENPI 2015, UKTI China organised a Sino-UK Civil Nuclear Seminar and Reception which was well-attended by UK and Chinese companies. The discussions during the seminar were mainly on the best approach for UK companies to penetrate the Chinese nuclear market and lessons learned from the companies which are already operating in China. During the same week we also met EIC member companies who are in China including Roxtec, Doosan, Weir Power, Viking, Arrow Solutions, Emerson, Swagelok and Delta Controls. We also made contact with China’s oil and gas trade association and local nuclear companies such as CNEA, CGN, CPI, CNNC and CNOOC. From 13-15 May 2015, EIC Asia Pacific attended PowerGen India in New Delhi where we met EIC member companies and other companies such as Aveva, Bentley Systems, Curtiss-Wright, Henkel, Hayward Tyler, GE India, Euro Bearings, Kuhme, Parcol, Fine Tubes, Siemens and Voith. On 19-22 May 2015 we attended the 39th Indonesian Petroleum Association (IPA) Conference and Exhibition in Jakarta. During the event we had a meeting with the Indonesian energy regulators, SKK MIGAS and PGN Saka, to discuss the possibility of bringing an Indonesian delegation to the UK for our Export Showcase event in November 2015. We also met operators such as ENI, ConocoPhillips, ExxonMobil, Chevron, Santos, Shell Indonesia, Inpex, Petronas Indonesia, Salamander-Ophir and EPC contractors TLO Indonesia and Medco Energy.

Myanmar Bidders line up for Zawtika wellhead contract At least seven local and international contractors have responded to a prequalification request linked to an engineering, procurement and construction contract to provide four wellhead platforms for Phase 1C of PTTEP’s Zawtika project off Myanmar. The interested bidders include Singapore’s SMOE, Thailand’s Cuel, Japan’s Nippon Steel and Sumikin Engineering, Hyundai Heavy Industries of South Korea, Malaysian duo SapuraKencana and Malaysia Marine & Heavy Engineering, and China’s Offshore Oil Engineering Company (COOEC). Philippines First Gen to bid out US$1 billion for LNG terminal First Gen Corp of the Lopez Group is preparing for the construction of its US$1 billion liquefied natural gas import and regasification terminal and is in the midst of preparing to bid out the contract for the construction of the terminal. First Gen also indicated that they are firming up talks with potential partners for the project, with plans to take up a 50% stake while the rest goes to the partners which could be a consortium of Filipino and foreign partners. The company is also in talks with potential LNG suppliers while it firms up the construction of the terminal.

Forthcoming Events Industry Overview

Fundamentals of Downstream Thursday 30 July 2015 EIC Kuala Lumpur

Vietnam Gazprom Neft and Petrovietnam sign agreements Gazprom Neft and Vietnam Oil and Gas Group (Petrovietnam) have signed a series of agreements to extend their collaboration activity. The two parties have agreed to create a dedicated working group of experts from both companies. By the end of October 2015, the parties will form a list of priority oil and gas fields and agree the basic terms of the partnership before further agreements are signed. The projects will be implemented via this joint venture in which the stakes of each party will be negotiated. Plans ahead are to modernise the Dung Quat refinery that will increase capacity from the existing 6.5 million tonnes to 8.5 million tonnes per year, and improve the efficiency of its technological processes enabling the plant to switch over to producing Euro-5 standard motor fuels.

Business Presentation Opportunities with Sapura Kencana Petroleum Tuesday 4 August 2015 EIC Kuala Lumpur

Industry Overview

Fundamentals of Power Wednesday 12 August 2015 EIC Kuala Lumpur If you need any assistance or advice in the region or for more information about upcoming events, please contact: Azman Nasir, Head of Asia Pacific Contact: 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

@TheEICEnergy

July 2015

EIC UK News

News from our UK offices

This exciting full-chain CCS project comprises a new coal-fired state of the art Oxy Power Plant (OPP) and a transport and storage network. White Rose is one of two projects supported by the UK DECC’s £1 billion Commercialisation Programme and is currently nearing the end of the two-year FEED, having been awarded a contract with the Government in December 2013. The agenda will showcase speakers from Capture Power Ltd along with Alstom, Drax, BOC and National Grid. They will be providing information about the project timescales, requirements and advice for the supply chain, about how to engage and get involved. Book now: jennifer.hole@the-eic.com

Forthcoming Events

Regional Showcase Member Update Tuesday 7 July 2015 EIC Aberdeen A series of informal Member Update events will take place over the next few months in each of the EIC’s UK offices. The first will be held in Aberdeen on 7 July. Neil Golding, Head of Oil & Gas at the EIC will provide a global market overview and discuss findings from the recently published EIC Contracting Activity report. There will be an opportunity to converse on local market challenges, share solutions and consider collaboration opportunities among fellow members during the open floor session. The morning will end with a live demonstration of the new and improved EICDataStream, due for official launch at Offshore Europe 2015. These Member Updates are free to attend and will be offered on a first come, first served basis. Book now: pamela.nicholson@the-eic.com

Sector Showcase Global LNG Opportunities Tuesday 21 July 2015 EIC Conference Suite, London Over the past 50 years, the LNG liquefaction sector has grown alongside the increased demand for natural gas, leading to a fast developing global market and resulting in the increased liquidity and flexibility of delivery, and the trading of natural gas. With multiple projects under development, global LNG production capacity is expected to grow annually by 5% from 240 mtpa in 2012 to approximately 420 mtpa in 2025. Via EICDataStream, the EIC is tracking over 370 active or planned LNG and FLNG projects with a combined capex of over US$1.2 trillion; and while not all of these projects will go ahead, with a low oil price LNG is set to remain the main area of opportunity for the supply chain for some time. Join the EIC in July for a global overview of the LNG market – the challenges the sector faces with supply and demand, the opportunities for UK suppliers and the future outlook for this growing sector. Book now: jennifer.hole@the-eic.com

Corporate Entertainment Northern Region Golf Day Thursday 9 July 2015 Macdonald Portal Golf & Spa Resort, Cheshire The Northern Region Golf Day provides a relaxed atmosphere coupled with brilliant networking opportunities plus an entertaining day out for your team of four players. Designer Donald Steel has created a challenge that is characterised by unique and distinctive holes; expansive water hazards and cascading waterfalls. The signature is typical of Steel’s magnificent 7,037 yard layout – the long third tips the scales at 607 yards, with a green guarded by a beautiful lake. The day will begin with a breakfast buffet in the St Andrews Lounge. Teams of four will take on a professional at a specific tee and play the Stableford competition. The winning team will be awarded the Flexitallic Challenge Bowl Cup. On completion of your team’s round, there will be a two course dinner, along with the presentation of prizes. Gold and Silver Sponsorships have sold out, however, if you would like to take the remaining Bronze Sponsorship package please contact Jennifer Hole. Book now: jennifer.hole@the-eic.com

Export Showcase Opportunities in Post-Sanctions Iran Monday 21 September 2015 EIC Conference Suite, London 30 June will see the final draft of the Joint Comprehensive Plan of Action (JCPOA) in relation to the sanctions imposed on Iran as a result of its nuclear activities. The outcome of the JCPOA at the end of June may see the EU being able to trade more freely with Iran and becoming ‘open for business’ in early 2016. With 131 active and future projects being tracked on EICDataStream, with a combined capex of US$305.6 billion, the country offers a huge potential opportunity for suppliers who can offer advanced and reliable products and services. With the majority of equipment currently being imported from China, Russia and Turkey, it is expected that Iranian contractors will be seeking western technology in the new year. The EIC aims to make aware of the potential opportunities available to them and help them prepare for doing business with Iran. Join us in London in September to learn more about the opportunities, the practicalities and the challenges of doing business in Iran in 2016. Register your interest: jennifer.hole@the-eic.com

CCS Showcase White Rose Project Thursday 16 July 2015 Leeds United Football Club, Yorkshire Early in 2014 the EIC held the first CCS Showcase in a series, highlighting the two projects being developed in the UK. Further to its success we are now holding a second event which will focus solely on the White Rose Project. The White Rose CCS Project aims to build the world’s first oxy-fuel power plant with carbon capture and storage (CCS) at commercial scale, representing a core step towards the advancement of the CCS industry in the UK and across the globe.

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

@TheEICEnergy

July 2015

EIC UK News

www.the-eic.com

@TheEICEnergy

July 2015

EIC Middle East News

Middle East News

Our training programme is going well. After delivering a two day in-house course on behalf of Applus Velosi entitled Finance for the Non-Financial Manager, we intend to repeat this and offer it to the membership in October. Meanwhile, the successful course Understanding Terms & Conditions, which was sold out last month, will be repeated in September where there are limited places available plus we intend to offer it once more in early 2016. Lastly, we have the Fundamentals of Oil & Gas booked for October as well. Finally, it was an absolute pleasure to welcome the EIC Connect team to the office last month. Sarah, Kim and Charmaine thoroughly enjoyed their time plus it was a good opportunity to catch up with Neil Golding and Claire our CEO. Other visitors have been Wayne David and William Smith from DSV, Peter Evans from Hughes Safety Showers who has relocated here as has Phil Wood from CMP Products. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Office News

Last month’s EIC Connect Middle East was a huge success and all the feedback is being assessed to see how we can take advantage of this significant step change from when we delivered our last event back in 2013. The next major event is now the sold out ADIPEC where we are currently seeking a sponsor for our IceBreaker event that’s scheduled for the Sunday evening, 8 November. Any interested parties are welcome to contact the events team or the office here. Looking across our markets, all of them seem to be very buoyant despite the ongoing concerns that are affecting Syria, Iraq, Libya and Yemen. Certainly investment activity in the UAE is still on a roll. That was the key message that we received at EIC Connect although there was also general consensus from the ADNOC representatives that operating costs were under tight scrutiny and that each of the companies operating under their umbrella needed to be aware that a 10% reduction was expected by the end of their operating year. In Africa, we have seen a change of government in Nigeria and it remains to be seen if the new regime delivers on its promises to get corruption under control. The largest contract to be awarded for some time came from Anadarko Petroleum who awarded a multibillion dollar project to a three way consortium made of Chiyoda, CB&I plus Saipem to cover the first phase of their LNG development in Mozambique. For market visits, we attended the Moscow International Oil & Gas Exhibition last month where we took the opportunity to get ourselves more acquainted with the Russian energy sector which we know will keep us in good stead for the future. Later in the year, we intend to take two separate delegations to Angola and Ghana. Bookings could quite possibly be closed by the time this is read but they are two territories that we believe hold substantial opportunities. It is also our intention to visit Africa Oil Week once more to assess how we might be able to take advantage of this significant event. More details on this can be found on the non-EIC events page of our website. Following on from the traditional summer slowdown, we are pleased to once again offer our membership the opportunity to get back into the swing of things by inviting them to a Curry Night next month on 26 August. The venue will be at the Mint Leaf restaurant located at the Dubai International Financial Centre (DIFC) and we are very pleased to accept a kind sponsorship offer from Clyde & Co so are every much looking forward to that and then later on in September, it is our intention to host McDermott’s at our next business presentation lunch. Dates and venue can be found on the website. One final teaser will be our Christmas themed lunch in December where we will be hosting Petrofac, so watch this space.

Forthcoming Events

Corporate Entertainment Home Alone Curry Night Wednesday 26 August 2015 Mint Leaf Restaurant, Dubai

Management Course

Understanding Terms and Conditions in the Contract Wednesday 30 September 2015 Four Points by Sheraton, Dubai To register your interest or to book on the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

ABB to expand solar park substation ABB has been awarded a contract to expand the substation integrating the Mohammed bin Rashid al Maktoum Solar Park to Dubai’s grid. Scope of work includes design, engineering, supply, installation and commissioning of three bays of 400kV and eleven bays of compact 132kV gas-insulated switchgear, transformers and an automation and control system. The extension of the substation is expected to be completed in 2016. Petrofac wins US$900 million contract in Oman Petrofac has been awarded a contract worth US$900 million for the onshore Yibal Khuff field located 350 kilometres south west of Muscat, Oman. The contract comprises detailed engineering, construction and commissioning management support services as well as procurement on an incentivised pass-through basis. The contract will run for four and a half years and will extend throughout construction and start-up of the facilities at the field.

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

@TheEICEnergy

July 2015

www.the-eic.com

@TheEICEnergy

July 2015

EIC North and Central America News

North and Central America News Industry Overview

Office News

Fundamentals of LNG Thursday 22 October 2015 EIC Houston This industry overview provides an understanding of the scope and size of the LNG industry, the value chain elements, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project.

In the face of uncertainty, often it is innovation which provides for market opportunity. In the current arena of low oil prices, we find reports of US crude oil production being at its highest in over 40 years providing for industry resilience. At the same time, although drilling has decreased significantly, these market players are looking towards innovation around efficiencies for best practice and future success. The North and Central America market remains strong with many areas of opportunity. Oil and gas leads the way with opportunities around offshore exploration across Canada, the US, Mexico, Trinidad, Jamaica, Barbados and Honduras. The shale boom continues in the US, however, rig counts, drilling and completion activities are on the decline. The PNR sector continues to gain momentum as subsidies continue to drive new projects. Specific areas of opportunity are around nuclear and onshore wind in the US, moderate opportunities in Mexico across PNR broadly, and wind power in Canada. We were pleased to see Derrick Services Ltd, an oil rig inspection and offshore construction specialist, expand its presence in Houston as an EIC tenant. We currently have five offices available, and the virtual option which will help members to grow their market presence on a local scale. We have been busy hosting member companies and updating them on our regional remit, while planning for future training and business presentations. The team also attended the NOIA Annual Conference and Canada Atlantic Petroleum Exhibition in St Johnâ&#x20AC;&#x2122;s Newfoundland and Labrador, the 2015 Mexican Petroleum Congress in Jalisco, Guadalajara, and the AWEA Windpower conference and exhibition in Orlando, Florida. These conferences and exhibitions allowed us the opportunity to obtain market intelligence, connect with members in market, and grow our key contacts.

Looking towards the North & Central America market? For additional information about the EIC Houston office, its upcoming events and training, or if you require any assistance in growing your presence, please contact: Amanda Duhon Regional Manager (North & Central America) Tel +1 713 425 6396 Email amanda.duhon@the-eic.com

Regional Comment

Carolinas approve permits for offshore surveys State regulators in North and South Carolina have signed off on initial federal permits allowing Spectrum GEO and GX Technology to conduct seismic testing for oil and natural gas in federal waters off the Atlantic coast. The companies would use seismic air guns, so the work will have to co-ordinate around several sensitive environmental issues and locations. More companies are expected to apply to conduct similar surveys. New oil train rules announced The rail tank cars that transport crude oil and other flammable liquids in Canada and the US will now have to be built to stronger standards in response to several recent train crashes in both countries. New tank cars must have an outer shell, a thermal lining, improved top and bottom fittings and thicker steel walls. Older tank cars will be phased out within the next several years. Most of the crude oil transports come from the Bakken region of North Dakota to the east and west coasts and the Gulf of Mexico.

Forthcoming Events Industry Overview

Fundamentals of Oil & Gas Tuesday 6 October 2015 EIC Houston This industry overview offers a knowledge of the oil and gas industry from its origin, exploration methods and production processes, to commercial trends and technical terms.

Round One continues The third phase in the Mexican inaugural lease auctions is for 26 onshore blocks in mature fields across five states in the Burgos, Tampico-Misantla and Salinas-Sureste basins. The National Hydrocarbons Commission (CNH) is requiring relatively modest investment requirements (compared to the first two phases) in order to allow domestic companies a chance to gain operator experience. It is hoped that the blocks, which contain an estimated 2 billion boe, will attract investment of US$620 million in the next five years. Bids will be announced in December.

Corporate Entertainment EIC 6th Annual Sporting Clays Tournament & BBQ Friday 9 October 2015 American Shooting Centers, Houston We are pleased to host our 6th annual sporting clays tournament that will include a 20 team format shooting 75 targets per person and ending with cold drinks and Texas barbecue. Awards to be given for first, second and third places.

EIC Newsbriefs â&#x20AC;&#x201C; 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 2015

South America News Office News

Following on from Brasil Offshore, the EIC will be hosting the UK Pavilion during OTC Brasil scheduled for late October in Rio. Let us know if you would like to book your space. I am happy to announce that we’ve appointed a new Events Co-ordinator in the Rio office, Ana Flávia Navarro. Ana will be working with the Rio team to deliver an excellent programme of events and training. She is replacing Ana Fernandes, who worked for us for over two years and is now helping UK companies in the power team at UKTI in Rio. Our next Business Presentation is on Thursday 16 July in partnership with GE Oil & Gas. In the last four years, the company has invested US$300 million in the Brazilian market in order to strengthen its presence in Latin America. The presentation will cover the supplier quality process of the company, the development of local content in Brazil and people and talent management. Mauricio Valadares, Sourcing Leader for GE Oil & Gas LATAM is the speaker.

Brasil Offshore 2015: UK Consul in Rio Matt Woods with UKTI and the EIC

Petrobras secures loans from China The Brazilian oil company is set to receive US$10 billion in financing from Chinese institutions following a visit by the Chinese premier Li Keqiang to Brasília. The financing agreements include a US$5 billion loan from the China Development Bank (CDB), a US$2 billion credit line from Export-Import Bank of China and an additional US$3 billion marine equipment agreement with the leasing unit of the Industrial and Commercial Bank of China (ICBC). Brazil and China signed 35 agreements last May worth more than US$53 billion in areas including energy, infrastructure, mining and manufacturing. President Xi Jinping said in January that Chinese companies aim to invest US$250 billion in Latin America over the next 10 years.

Forthcoming Events Industry Overview

Fundamentals of Natural Gas Thursday 23 July 2015 EIC Rio de Janeiro

Industry Overview Fundamentals of Subsea Saturday 25 July 2015 EIC Rio de Janeiro

Technical Workshop Introduction to FPSOs Saturday 15 August 2015 EIC Rio de Janeiro

Ecopetrol to save US$1 billion per year The Colombian state-owned oil company has pledged to boost annual savings to US$1 billion as part of its 201520 business plan. The company has recently come under scrutiny after revealing a US$10 billion debt, which has led to questions over capital-intensive projects such as the upgrade of the Cartagena and Barrancabermeja refineries. Ecopetrol’s plan is expected to increase production by 1-2% a year and maximise efficiency in the refining and transport segments.

If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

Regional Comment

Private energy investment in Peru to hit US$12 billion The Peruvian Central Bank estimates that the country’s hydrocarbons and power sectors will receive US$7.22 billion and US$4.62 billion, respectively, in private investment between 2015 and 2017. Total private investment will amount to US$40.1 billion, according to the Bank. Investment in the oil and gas sector is expected to drop amid low oil prices and project delays, many of them caused by socio-environmental conflicts. Highlights in the energy sector include the construction of the Sur Peruano gas pipeline, further development of gas blocks and the construction of hydro power plants and transmission lines.

Rosneft pledges to invest US$14 billion in Venezuela The state-owned company has announced plans to invest nearly US$14 billion to double oil production from the Orinoco belt as well as gas projects in Venezuela. Revealing plans during a meeting between Rosneft and PDVSA in Moscow, the Russian company said it is looking to increase production from the Petromonagas, Petromiranda and Petrovictoria joint-ventures. The announcement follows a meeting between presidents Putin and Maduro in January during the latter’s tour of OPEC countries.

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 2015

EIC Training Services

Training Services

Subsea Engineering – a mature activity, but with challenges ahead

Early Days The discipline of subsea engineering started long ago. The oil industry (drilling) reached the coast of California in the last part of the 19th century and continued out offshore with wooden piers and production platforms, from that time on offshore activities have extended to deeper depths. The first subsea xmas tree was put down in the Gulf of Mexico by Shell in 1960/61 and could be regarded as the start of subsea engineering. During the 80’s the North Sea was the main development and learning location for subsea engineering, with more than 40% of the world’s subsea trees located there. In the period 2011 to 2020, the industry is expecting to install some 800+ trees a year (a figure which may be mitigated by the 2014/5 reduction in oil prices).

Industry Overviews

Fundamentals of Refining and Petrochemicals Tuesday 4 August 2015 EIC London A comprehensive overview focusing on fundamental concepts from the technology and design of refineries and petrochemical plants, through to present and future challenges faced by the industry.

Subsea Engineering Systems The range of equipment covered by subsea engineering includes: wellheads, xmas trees, manifolds, flow and pipelines, risers, subsea controls and umbilicals. These have to be designed and installed to work as a system as part of a field development.

Fundamentals of Oil & Gas Thursday 6 August 2015 EIC London A comprehensive overview focusing on fundamental concepts from exploration and production, its structures and costs to future developments within the industry.

New Subsea Production Facilities Challenges The challenges include: 1) Ever deeper water depths The current deepest production tree is at 2,920m in Shell’s Perdido development in the Gulf of Mexico. Exploration drilling off India is presently in 3.2km water depths, any successful exploration campaigns could lead on to the possibility of production from these depths. 2) Harsher reservoir conditions Field developments can now include High Temperature/ High Pressure (HT/HP) wells which are above 200°C and pressures above 1000 bar. 3) More complicated reservoirs Field developments often combine production from different reservoirs. Total’s latest Angola Block 17 fields of Pazflor and CLOV both have production from oligocine and miocene reservoirs. The lighter oligocine oil flows direct to the FPSO via the subsea production system. The heavier miocene oil requires seabed processing to assist the movement of the liquids to the FPSO. Dr John Preedy

Business and Management Courses

Presentation Skills Tuesday 4 August 2015 EIC London An essential look at the key concepts of a presentation from professional delivery and the use of memory techniques to analysing and engaging your audience. Tendering for Success: How to Write Winning Bids Wednesday 5 August 2015 EIC London A comprehensive course focusing on significant aspects from evaluation and incorporation of customer requirements to successful management of the bid process.

If this subject is of interest, you may like to attend:

HSE Training

Industry Overview

Introduction to ATEX Directives 94/9/EC & 1999/92/EC Thursday 6 August 2015 SGS Baseefa, Buxton A comprehensive overview focusing on key concepts from explosions and protection objectives to the legal framework of the directives.

Fundamentals of Subsea Engineering Wednesday 5 August 2015 EIC London A comprehensive overview focusing on fundamental concepts of construction, installation and maintenance to continued development of subsea technology to tackle ever challenging environments. This course enables delegates new to the subsea sector or those who would like to get involved to gain a practical and commercial understanding of the industry. www.the-eic.com

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In addition to our scheduled courses we are always happy to discuss your individual needs. Contact: terri.sylvester@the-eic.com 22

July 2015

www.the-eic.com

@TheEICEnergy

July 2015

If you would like more information or are interested in becoming an EIC member, please contact: 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 EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 972 Email teesside@the-eic.com 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 EIC Middle East PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com 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 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

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