EIC Monthly News May 2015 by Energy Industries Council

EIC Monthly News May 2015

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The EIC Chief Executive

The Chief Executive

Welcome to the May edition of the EIC Monthly News, and the start of spring heralds some fresh industry news. The political parties are announcing their energy policies ahead of the General Election, some big oil and gas and nuclear projects have grabbed the headlines, and we have some exciting news from the EIC’s Houston office. The parties vying for a place at No 10 in the 7 May General Election are beginning to firm up their manifestos, and energy policies are proving more than usually divisive. The main parties vary wildly in their approach to renewable energy, fracking, nuclear power and industry regulation, while some of the minor parties have some rather controversial ideas. If the outcome is a new coalition, as seems likely, negotiating a satisfactory middle ground could prove a tricky prospect. Meanwhile, Royal Dutch Shell recently agreed to buy BG Group for £47 billion in the energy industry’s biggest deal for more than a decade. If the buyout goes ahead, it is set to be the most significant of 2015 and would create the world’s second largest energy company after ExxonMobil with a total value of £224 billion. The deal is considered to be a response to the global oil price crash, and could result in significant cost savings and increased production especially in the Australia LNG and Brazil deep water markets. There was also some good news from Wintershall which has announced that it is looking to fast-track its natural gas and crude oil developments in the Southern North Sea, in addition to an extensive drilling campaign in the Netherlands, the UK and Denmark. The latest Oil & Gas Monitor in this issue on page 4 has even more positive news, reporting that despite the overall number of contracts being reduced, the value of some is substantial, which bodes well for the long term. In the UK nuclear sector, decommissioning continues to offer opportunities for British companies. The Nuclear Decommissioning Authority has strengthened its relationship with Amec Foster Wheeler with a four year contract to increase the range of services it currently provides. The company will carry out site characterisation, engineering design and delivery of the UK geological disposal facility, and supply decommissioning and radioactive waste management services. The sites included are the low level waste repositories in West Cumbria and Dounreay, plus the research reactor sites at Harwell and Winfrith. Moving to Houston, renowned as the Energy Capital of the World and home to over 5,000 energy-related firms and the location of the EIC’s North and Central America regional office, I’m delighted to announce the appointment of Amanda Duhon as our Regional Manager, North & Central America. Amanda has strong knowledge of the UK and North America markets across the energy, environment and infrastructure sectors. She comes to the EIC from Trade & Investment Queensland where she was Director for Business Development, fostering bilateral trade and investment across the US, Mexico and Canada. Amanda also worked for UKTI in Houston; as Vice Consul for Energy, Environment and Infrastructure, Amanda was part of the organisation’s international energy team. Amanda says: “As the leading trade association providing dedicated services to members, I am well-placed to lead our EIC team in Houston to continue delivering expert market knowledge, connect our members to key contacts, and provide value-added support services. I have a keen interest in entrepreneurship and strategic relationships and see the EIC as the perfect home. “Engaging with the EIC membership is one of my first priorities, I am committed to understanding services provided and outcomes obtained from our support so far, and to evaluate how best to constantly improve our services to members.” Amanda will be meeting with members during OTC so please come along to the UK pavilion and introduce yourself. Claire Miller, Chief Executive PS Are you a Twitter user? Have your company news and involvement in EIC events appear on the EIC’s website homepage by including @TheEICEnergy in your Tweets. www.the-eic.com

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Contents The Chief Executive

Sector Analysis

EIC Monitor

New Members

Member News

Events Diary

Overseas Events

Training Services

National Events

UK News

Middle East News

Asia Pacific News

North America News

South America News

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May 2015

EIC Sector Analysis

Sector Analysis

Shale – the answer to our energy security? Since Cuadrilla Resources drilled their three shale exploration wells in Lancashire in 2011, there has been very little progress since in the UK shale gas sector. Cuadrilla Resources has stated that commercial production could commence in 2018, not counting undoubted protests and appeals that are likely to occur. With production in the North Sea, currently at 34 billion cubic metres a year, set to fall to 19 billion cubic metres a year by 2030, new sources of gas will be needed to meet the demand. Is hydraulic fracturing for shale gas the way forward? Shale exploration has seen restrictions put in place in the UK since the turn of the year, including a ban on fracking which was placed across the whole country in January 2015. The ban was lifted three weeks later, when ministers also announced that fracking would be allowed under National Parks. Companies will only be allowed to drill for shale in National Parks if they set up their drilling site outside of the national park, to then horizontally drill underneath to access the resource. A big advantage to fracking is that an operator can drill more than one well from a single point on the surface, known better as a drilling pad, which minimises the impact and scale of activity on the surface and takes up less space. Cuadrilla states their drilling pads are no larger than a football pitch and will be at least two miles apart. When drilling is complete, the drill pipe is removed and steel casing is inserted through the full length of the well bore, which is then cemented in place. This lessens the chances of water chemical leakage and contamination of the water table. The Bowland Basin in Lancashire will use a triple casing design between the drill pipe and the aquifer, which decreases the chance of chemical leakage into the water table significantly. If hydraulic fracturing is done correctly in this way, it can be a useful and safe way to extract shale gas. It also brings more opportunities for work throughout the supply chain. To successfully frack a well, you need around 40 trucks to pump the water mixture down the well to fracture the shale rock after the initial deliberate explosion. The mixture that is pumped at high pressure into the well is mixed with a form of proppant, normally sand, to hold the fractures open so the gas can flow out into the well and to the surface. As the DECC states on its website, it believes shale gas has the potential to provide the UK with greater energy security. The UK has a number of shale prospects covering parts of the country with estimated in place reserves of 39.87 trillion cubic metres (1,329 trillion cubic feet). One of the biggest basins in the UK is the Weald Basin located between the North and South Downs in the south east of England, which covers an area of 7,600 square miles and is said to have recoverable resources of shale oil of 4.4 billion barrels, which could increase www.the-eic.com

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following UK Oil & Gas Investments’ announcement that the Horse Hill discovery could hold substantial amounts of oil. Exploration in this region is still ongoing, as the area at ground level is very built up and locals are not keen on hydraulic fracturing occurring below their neighbourhoods. There are two shale projects in the UK with high potential to become commercial. The Bowland Basin in Lancashire and the Ince Marshes in Cheshire are both shale prospects that can be found in detail on EICDataStream. At present these discoveries are still in the exploration stage, however if commercial quantities of hydrocarbons were to be found then development could occur. It is important to develop discoveries such as these as they could bring opportunities for the supply chain. A UKOOG report released at the beginning of 2014 stated the development of shale gas in the UK could create a £33 billion investment opportunity for British business with the potential to create over 64,000 jobs. Significant investments will be seen in equipment needed for hydraulic fracturing, waste, storage and transportation, steel and rig manufacturing, and general development within the shale sector which, from this investment, could become commercial and increase the UK’s energy security. The industry has also been attempting to develop good relationships with local communities, as well as increasing the chances of development. A fracking regulator was proposed in March 2015, with the aim of giving more confidence in the governance of the sector. A regulator would involve all parties in the monitoring process and assess the integrity of wells. With communities involved, arrangements could be made to please both parties affected and developments could continue. Plans are also in place to develop training and educational schemes to support the industry and to avoid a skills gap. UKOOG announced in November 2014 that Blackpool and The Fylde College have been named as the National College for Onshore Oil and Gas. This has been set up to train companies in the industry on how to frack safely and successfully. The industry is taking measures to please communities and address problems in the sector, but does this mean the UK can use its shale gas resources to increase energy security? The future of shale activity could depend on who gets into government in the May election, and the 14th licencing round which is expected to follow. The Labour Party has pledged to stop all shale plans if they gain power. If the Conservatives are to stay in government, shale opinions are unlikely to change and exploration could continue as planned, leading to opportunities for the UK supply chain. Thomas Bacon, Oil and Gas Research Analyst Tel +44 (0)20 7091 8610 Email thomas.bacon@the-eic.com 3

May 2015

EIC Monitor

High value oil and gas contracts awarded despite decline in overall quantity

The latest EIC Monitor report once again shows a significant decline in the levels of contracting activity across global upstream, midstream and downstream sectors in Q1 2015. Overall figures show the number of major contract awards made since the last quarter contracting by 30% following a previous decline in the preceding quarter.

There has been significant activity on the Cape Three Points Block (OCTP) – Sankofa and Gye Name Discoveries in Ghana with four separate contracts being awarded. PetroVietnam Technical Services Company (PTSC) and Kanfa Group are each supplying four topsides modules for the FPSO, GE Oil and Gas is providing three gas turbines and four centrifugal compressors, and Yinson Holdings the FPSO, with a value of over US$2.5 billion making it one of the larger contracts in the quarter.

However, despite the overall number of contracts being awarded dropping, the value of some is substantial. But while long term investment plans and new discoveries hold promise for the long term, these could take a long time to come to fruition for industry players.

In Malaysia, state-owned oil company Petronas awarded Hyundai Heavy Industries an EPC contract for the central processing platform (CPP) on the Baram Delta Gas Gathering Project, and Hess Corporation awarded EA Technique a contract to supply a floating storage and offloading (FSO) unit for Block PM301 (North Malay Basin Development).

The number of major contract awards across the global oil and gas industry has steadily declined during the last quarter (Q1: Jan-Mar 2015), dropping to 95 contract awards, a 30% decrease compared to 136 in Q4 2014, and just 64% of the 149 contracts awarded in Q1 2014.

The North Sea off Norway has seen two EPC contracts for the Johan Sverdrup Development (Avaldsnes and Aldous Major South Oil Discoveries), both awarded by Statoil. ABB won a contract for land-based power supply for phase 1 of the development and Aibel was awarded a contract worth over US$1 billion for drilling platform topsides. In the Gina Krog oil and gas field, IKM Ocean Design was awarded an EPC contract by Statoil to supply the Zeepipe IIA Gooseneck Spool and retrofit hot tap tee. Injection gas to the field will be supplied through a 16 inch pipeline connected to the 40 inch Zeepipe IIA pipeline via a 12 inch spool. The connection will be accomplished by hot-tapping and tie-in to a 40 inch by 12 inch retrofit tee. Petrofac is leading a consortium with Greece based Consolidated Contractors Company (CCC) which has been awarded a US$4.3 billion contract by Kuwait Oil Company (KOC) for the Lower Fars Heavy Oil Field Development in Kuwait. The companies are providing EPC, start-up and operations and maintenance work for the main central processing facility (CPF) and associated infrastructure as well as the production support complex.

Upstream Contracting Activity Q1 2015 In Q1 2015, a total of 39 major contracts – EPC (Engineering, Procurement & Construction), FEED (Front End Engineering Design) and Subsea/SURF (Subsea, Umbilicals, Risers & Flowlines) – were awarded across 30 upstream developments, falling 65% from 66 awards in Q4 2014 and compared to 55 awards in Q1 2014. A total of 21 EPC contracts, 6 FEED contracts and 12 Subsea/SURF contracts were awarded.

In Kazakhstan, North Caspian Sea Operating Company (NCSOC) awarded Saipem a contract worth US$1.8 billion to build two 95km pipelines. The significant value of these contracts demonstrates that while the overall number of awards has reduced, the value of those being made is still substantial.

EPC Activity The US, Ghana, Malaysia and Norway have seen significant activity, accounting for 11 EPC contracts across 6 different upstream developments.

FEED Activity In Q1 2015, six upstream FEED contracts were awarded, of which two were in the USA, both awarded to IntecSea by Chevron for providing engineering and long-lead procurement services on subsea tiebacks for the Buckskin and Moccasin Offshore Oil Fields.

In the US, there were two EPC contracts for the Stampede Oil Field, with Kiewit securing a contract to carry out the topsides fabrication and Samsung Heavy Industries the hull fabrication. www.the-eic.com

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May 2015

EIC Monitor In Brazil, CFPS Engenharia e Projetos was awarded a contract by Parnaíba Gás Natural (PGN) for the Block BT-PN-8 Gavião Branco Gas Field. In the UK, Ramboll was awarded the detailed design contract by Maersk Oil for two jackets for a central processing facilities platform and utilities/living quarters platform in the Culzean HPHT Gas & Condensate Field. Tecnomare secured a contract with Eni for the NeneLoango Development Project in Congo, and Wood Group Kenny is to provide FEED work for the flowline system, including engineering and procurement support, for the North West Shelf Venture offshore Australia. Subsea/SURF Activity Ghana and the USA have dominated subsea/SURF contracts, accounting for three deals each across six separate projects.

North America dominates midstream activities because of its focus on LNG liquefaction and construction on a number of pipelines for export. Despite an overall global slowdown in LNG, progress in US and Canada continues.

In Ghana, a joint venture of GE Oil & Gas and Oceaneering International is supplying a subsea production system for Eni Ghana E&P in the Cape Three Points Block. DeepOcean was awarded two contracts by Tullow Ghana to provide inspection, survey and subsea construction services on the Deepwater Tano Block and Jubilee Field.

EPC Activity Out of a total of 25 midstream EPC contracts, Argentina has seen six awards totalling thousands of kilometres of trunk and branch lines for the Gasoducto del Noreste Argentino Gas Pipeline (GNEA), which looks set to be a considerable project.

Q1 2015 saw Oceaneering International awarded three subsea/SURF contracts in the USA; one to provide umbilical installation tiebacks in Marmalard North and Marmalard South, another to supply subsea production umbilicals for the Odd Job Offshore Oil Field, and a third to provide umbilicals and umbilical distribution hardware at the Stampede Oil Field.

The US has seen the greatest number of awards – a total of eight contracts for eight separate projects represents 32% of all midstream EPC contracting activity. One of these, the largest midstream EPC in the quarter, was a US$2 billion award to a consortium of CB&I, Chiyoda Corporation and Zachry Industrial for the LNG train and storage tank for the Freeport LNG Liquefaction Train 3. To be built at an existing terminal, the new liquefaction facility will provide a nominal export capacity of approximately 13.2 mtpa of LNG.

Elsewhere, Technip won two subsea/SURF contracts; one to supply 200km of flexible lines and related equipment for the Lula Alto field’s production system in Brazil, and another to carry out the fabrication and installation of pipeline and umbilicals for the UK’s Glenlivet & Laxford Gas Fields.

Other important contracts in the US include an award to a JV of KBR and SK E&C to carry out EPC of the initial two LNG production trains with provision for two additional trains for the Magnolia LNG Export Terminal; and a consortium of CICSA, Energy Transfer Partners and MasTec was awarded the contract to construct and operate the Waha-Presidio Natural Gas Pipeline.

Subsea 7 won a deal for fabrication and subsea installation on the Persephone Gas Field, part of Australia’s North West Shelf Project. Also in Australia, Ezra Holdings secured a deal for umbilicals, manifolds, flying leads and jumpers in the Julimar Gas Field. In Norway, Nexans is supplying standardised umbilical cables for the Visund Nord Oil & Gas Field, and finally in Denmark, VBMS is carrying out the installation of 18.5km of control umbilicals at the Ravn Oil Field.

In the MENA region, all three EPC contracts were for the Gasco Integrated Gas Development (IGD) Expansion in United Arab Emirates. They were awarded to National Petroleum Construction Co (NPCC), a JV of Archirodon Group and Tecnimont, and Tecnicas Reunidas.

Midstream Contracting Activity Q1 2015 Midstream Contracting Activity Q1 2015

There were two awards in Russia, to Mezhregiontruboprovodstroi OJSC (MRTS) for the Yamal LNG Plant and to Stroygazconsulting for the Zapolyarny to Purpe Oil Pipeline. Africa also saw two awards, to Taleveras Group for the construction of the Bioko Island Oil Storage Terminal and to a JV of China Harbour Engineering Company (CHEC) and Roads Contractor Company (RCC) for the Walvis Bay Storage Terminal.

In Q1 2015, a total of 33 major contracts (EPC, FEED and Pre-FEED) were awarded across 24 midstream developments, decreasing 15% from 39 in Q4 2014, and 19.5% from 41 contract awards in Q1 2014. Of these, 25 were EPC, four FEED and four pre-FEED. Notably, there were no pre-FEED contract awards at all in Q4 2014 or Q1 2014, so these new examples are significant for development as they are likely to go ahead. www.the-eic.com

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May 2015

EIC Monitor EPC Activity North America and Europe have been key focal points for downstream activity in Q1 2015, with both regions seeing four EPC contracts across four downstream developments. Among the key European contracts, SNC-Lavalin won a contract to carry out process design, basic and detailed engineering services, equipment, training and assistance during the commissioning and start-up stages of the Tirgu-Mures Ammonia and Urea Plant Modernisation in Romania. And in Hungary, ThyssenKrupp is carrying out EPC for a new nitric acid plant as part of the Petfurdo Ammonia Plant Upgrade.

Finally, there were single awards in Australasia and the Indian sub-continent – to McConnell Dowell for the Ichthys LNG Plant in Darwin, and to the China Petroleum Pipeline Bureau (CPPB) for the Gwadar LNG Import Terminal in Pakistan. FEED Activity There were four midstream FEED contract awards in Q1 2015. In Oman, WorleyParsons has been appointed as a FEED contractor for the Duqm Liquids Terminal and Amec Foster Wheeler has been awarded a contract for the Duqm Oil Storage Terminal and Pipeline.

FEED Activity Three out of six downstream FEED contracts awarded in Q1 2015 were for projects in North America. In the US, Air Liquide E&C Solutions won a contract to provide engineering services for the Freeport Methane-toPropylene Plant, Amec Foster Wheeler was awarded work on the Syngas-to-Liquids Plant of the West Texas Renewable and Gas Monetisation Project, and Tecnicas Reunidas won a contract for the Valleyfield Titanium Dioxide Plant in Canada.

The other two were in the US where QPS Engineering has been appointed to carry out the FEED for the Maurepas Pipelines project and AECOM for Energy Transfer Partners’ ET Rover Pipeline project for the Marcellus and Utica Shale formations.

In Mexico, Pemex appointed Sener Engineering a contract to carry out detailed engineering for the modernisation of units at the Antonio Amor Refinery ULSD Project in Salamanca. There were also two significant project awards in Europe; CB&I for the Parcevo Refinery Delayed Coker Unit in Serbia and Uhde Inventa-Fischer for the Tarnow Polyamide 6 Plant.

Downstream Contracting Activity Q4 2014

PMC Activity Two of the four downstream PMC awards in Q1 2015 were for projects in the Russia and Caspian region. China Machinery Industry Construction Group won a contract to act as project co-ordinator for the Novosibirsk Refinery Modernisation project in Russia, and Fluor is working on the Garadagh Oil, Gas Processing and Petrochemical Complex in Azerbaijan.

In Q1 2015, a total of 23 major contracts (EPC, FEED and PMC – Project Management Contract) were awarded across 21 downstream developments, decreasing nearly 26% from 31 awards in Q4 2014, and 57% from 53 contract awards in Q1 2014. A total of 13 EPC contracts, 6 FEED contracts and 4 PMC contracts were awarded.

Amec Foster Wheeler was awarded the remaining two downstream PMC contracts; for the Fujairah Bio Fuel Refinery in the UAE and for the Ningxia Coal-to-Chemical Plant in China.

The US dominates the sector predominantly through petrochemical plants producing ammonia and urea for fertiliser, including Cronus Chemicals’ US$1.5 billion Tuscola Ammonia and Urea Plant. There were also two contracts for EPC and FEED for Tecnicas Reunidas at the Valleyfield Titanium Dioxide plant in Canada.

EICDataStream

Europe has seen an increase in activity during the last quarter due in part to lower feedstock prices leading to higher margins on a number of refineries and petrochemical complexes. Jacobs Engineering benefitted from this with an EPC contract for the Geel Purified Terephthalic Acid (PTA) Plant Upgrade in Belgium and a FEED contract for the Gelsenkirchen Refinery Hydrotreater Upgrade in Germany.

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Data is sourced from the EICDataStream online project database, which tracks nearly 10,000 projects proposed or under development in the global energy industry. EIC Monitor is published on a quarterly basis.

May 2015

New Members

New EIC Members

in the related energy industry. Utilising its international network the company provides its Principals with the local knowledge, sales representation and market intelligence needed to deliver increased penetration and sales of their products in specific territories. Unlike other agencies and traders GPEC is exclusively dedicated to its Principals in a territory, reflecting its core values of collaboration and long term partnership, providing clarity and sustained customer satisfaction. GPEC is an EIC Global Member in affiliation with its principal partner, AE Valves, Verviers Belgium.

New Global Member

AspenTech Ltd

Reading International Business Park Basingstoke Road Reading Berkshire RG2 6DT Tel +44 (0)1189 226 400 Fax +44 (0)1189 226 401 Email bob.lehmann@aspentech.com Web www.aspentech.com The Nominated Representative is Mr Bob Lehmann, Director. AspenTech is a leading supplier of software that optimises process manufacturing – for energy, chemicals, engineering and construction, as well as other industries that manufacture and produce products from a chemical process. With integrated aspenONE solutions, process manufacturers can implement best practices for optimising their engineering, manufacturing and supply chain operations. As a result, AspenTech customers are better able to increase capacity, improve margins, reduce costs and become more energy efficient.

New Global Member

S+C Bowers & Jones Ltd

Hilton Cross Business Park Featherstone Wolverhampton WV10 7QZ Tel +44 (0)1902 732 110 Email terry.barker@bowersjones.co.uk Web www.bowersjones.com The Nominated Representative is Mr Terry Barker, Business Development Manager. The S+C Group, with manufacturing plants in Germany, UK, Spain, Malaysia, Czech Republic and Saudi Arabia supplies high alloy tubes, pipes and components to the petrochemical, on and offshore, industrial furnace and energy industries. This includes CRA materials, duplex, super duplex, nickel based and a significant, newly developed alternative to Inconel 625 and Incolloy 825, Centralloy® G 45Mo, in addition to many heat and corrosion resistant alloys. S+C is the only approved manufacturer (API 5LC, DNV) of tubes and pipes by the centrifugal casting process which allows complete diametric dimensional flexibility thus invariably ‘satisfying’ design and process demands. An extensive R&D department, test laboratory and substantial production capacity is supported by a strong project management team to ensure the provision of quality product, on time delivery and high levels of customer service. Emergency supply situations are a speciality.

New Primary Member

ATP Medular Ltd

103 Church Road Quarndon Derby DE22 5JA Tel +44 (0)7879 636 424 Email philip@atpmedular.com Web www.atpmedular.com The Nominated Representative is Mr Philip Dawe, Executive Director. ATP Medular Ltd manages demand driven supplier communities. The access to members is a ‘cloud based hub’, delivering value by managing trade and compliance risks globally, regionally and locally through effective governance, risk management and due diligence. The company delivers comprehensive logistics and project management support to customers in Africa. ATP Medular physically deploys logistics and compliance services and solutions throughout Africa. Medular offers charter services on ocean vessels and ad-hoc capacity on aircraft. Through experts based around the world, Medular offers global On-Board Courier (OBC) services (hand carry courier services). Medular offers ships agency and husbandry services in various ports.

New Global Member

The Kildrummy Corporation Ltd

26 North Road Lerwick Shetland ZE1 0DE Tel +44 (0)1595 697 444 Email b.mercer@kildrummy.com Web www.kildrummy.com The Nominated Representative is Mr Barnaby Mercer, Sales Director. Kildrummy helps clients to utilise best practice in cost management to achieve corporate-wide capital efficiency. It counts most of the world’s greatest oil and gas companies among its long-term clients. Kildrummy’s solutions enable customers to manage cost on an individual project basis while increasing visibility and decision-making capability on projects across the entire portfolio. The company has aligned its solutions with its customers’ business processes to support key aspects of their capital programmes. Thus best practice can be leveraged for repeatable, consistent success throughout the enterprise, resulting in rising shareholder value.

New Global Member

GPEC Ltd

28-29 Bridgeman Terrace Wigan WN1 1TD Tel +44 (0)1942 356 653 Email louise.hilton@gpec-ltd.com Web www.gpec-ltd.com The Nominated Representative is Ms Louise Hilton, Operations Manager. GPEC represents manufacturers (its Principal Partners) of industrial engineered valves and static equipment for specialised and niche applications www.the-eic.com

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May 2015

There are no welds in the structural load paths offering good levels of fatigue resistance as well as eliminating the requirement for specialist welding. Apart from the Moorlink pins, which could be fitted with wear resistant bushes if required, there are no wearing parts in the system. The buoyancy modules are designed to be easily separated allowing access to the Moorlink pins while held on the central steelwork. This performance feature maintains stability and ensures safety.

Statoil has, on behalf of the Johan Sverdrup partnership, awarded a contract to ABB for land-based power supply to phase 1 of the Johan Sverdrup field development. The contract value is around NOK1.1 billion, and covers delivery of electrical equipment for a converter station by the Kårstø processing complex at Haugsneset, Tysvær, and a power module on the riser platform at the Johan Sverdrup field centre. ABB will provide high-voltage direct current (HVDC) equipment that will transform the onshore grid’s alternating current (AC) to HVDC at the Haugsneset converter station before the current is transmitted in a 200 kilometre long direct current submarine cable to the Johan Sverdrup field centre. On the riser platform the power will be transformed and converted to AC for field centre operations. The equipment will be delivered during the first half of 2017. Visit www.abb.co.uk

Subsea buoyancy specialist Balmoral Offshore Engineering, was asked by Dana Petroleum to design and manufacture key components for a pioneering mooring system to be used on its Western Isles project in the challenging northern sector of the North Sea. The project involves a subsea development with at least five production and four water injection wells tied back to the Sevandesigned FPSO. The integrated buoyancy/connecting system will be incorporated into the FPSO’s moorings which comprise 12 lines in three clusters of four. The buoyancy mounting system, which uses elastomeric mountings to reduce any imposed loads, is therefore kept separate from the mooring line to avoid interference with the stress path. The mounting is also offset vertically from the mooring rope to ensure that the buoyancy remains stable in the water.

The assembly is fitted with a number of lifting pad eyes and crucifixes at each end for deployment and retrieval; simple hydraulic tooling is supplied for offshore assembly of the mooring ropes. Once complete, the entire system is completely stable when sitting on the vessel deck. In total, 12 buoyancy and connection sets were manufactured providing a net uplift of 12 tonnes per buoy at water depths of 170m. A minimum service life of 12 years is expected. Visit www.balmoraloffshore.com

Cofely Fabricom GDF SUEZ has been awarded two long term framework agreements for the Provision of Mechanical and General Electrical Services and Major Works and Repairs for the Lynn and Inner Dowsing offshore wind farms operating 5km off the Lincolnshire coast. With operations based out of Grimsby dock, the wind farm has a capacity of 194MW which includes 54 turbines generating 3.6MW each. The contracts were won despite strong competition from many of the major OEM providers and is the third contract won with Centrica Energy in recent years. This agreement secures Cofely Fabricom GDF SUEZ as a partner of choice in the offshore wind market. www.the-eic.com

MEMBER NEWS Cofely Fabricom will work collaboratively with Centrica’s day to day operations group providing the ongoing service requirements for both the Lynn and Inner Dowsing wind farms, general repairs and support on major projects. Mike McCabe will head the service at Grimsby dock supported by an onshore planning and logistics team and offshore mechanical and electrical technicians.

Nigel Carlton commented: “This is a perfect example of Cofely Fabricom GDF SUEZ providing an alternative solution to the norm, modifying our working practices, processes and skill sets to provide a unique service which is beneficial to all parties and a model for the future.” Visit www.fabricom-gdfsuez.co.uk

The requirement by GDF SUEZ E&P UK for the fabrication and commissioning of four topsides for the Cygnus gas field development on the UK Southern North Sea led to Cordell successfully securing the pipe work fabrication for the Cygnus Bravo Wellhead topside. The £2 million project started in December 2013 involving the intricate fabrication of 1,574 pipe spools including non-destructive testing, coating, lining and site delivery. With the successful delivery of this high volume project critical to the client’s overall programme, the 50 strong specialist team averaged 1,200-1,500 hours a week with a peak of 2,100 man hours.

When challenged with the move from the company’s former Middlesbrough facility to the regenerated Stockton base at Malleable Way mid-way through the Bravo Wellhead project, the team was able to seamlessly move all plant, machinery, materials and men. During this process no production was lost. Rob McBride, Managing Director, praised the team’s efforts: “The facility move was critical to the project’s success. Through teamwork and diligent planning, we are delighted with what has been accomplished. “The new Malleable Way facility is excellent. Our ability to receive and store internally large volumes of raw material has been a key contributing factor to the success of the project. We are confident that our competitive advantage evidenced through our resources, capabilities and competences will provide enhanced customer value as we strive to secure future work.” This benchmarked performance provided Cordell with further opportunities to secure additional work. The company was then awarded the package to fabricate pipe work for the Cygnus Alpha Compression module. Visit www.cordellgroup.com

Crowcon has announced that the use of its LaserMethane mini (LMm) portable methane-detection device has been rolled out to all major Italian cities following the successful completion of a trial with an Italian gas distribution system operator. The LMm portable, ATEX-rated, remote methane detector allows the gas to be detected at distances of up to 30 metres to provide improved operator safety. @TheEICEnergy

A key application for the LMm detector is remote monitoring of methane gas leaks in closed premises or confined spaces. Other monitoring applications include the monitoring of above ground riser pipes which carry gas to consumer premises, allowing them to be checked from ground level to eliminate the need for ladders or access to the building. In addition, the LMm can be used to check valves, fittings and pipes inside a pressure regulating station, providing readings which are faster and more accurate than the results from traditional methods.

Damper Technology Ltd (DTL) has announced the strengthening of its aftermarket offering with the recruitment of Glenn Bull into the new role of Product Support Manager. With over 10,000 dampers in service and the increasing requirement for routine maintenance and retrofit on this equipment, DTL has also introduced a dedicated service department to ensure a more pro-active approach to customersâ&#x20AC;&#x2122; after market needs and to cater for increased and future demand for these services. The department will offer site visits and inspections, and through extensive archive files and drawings will be able to reproduce and re-issue existing Operation & Maintenance manuals, carry out damper adjustments to improve sealing efficiency and repair damaged and split damper frames. This support extends to specialist offshore Damper equipment, actuation and controls supplied by DTL over many years.

Crowcon

The LMm uses laser absorption spectroscopy to measure methane density and presents the readings in numerical and graphical formats on a clear backlit display. The latest generation LMm Gen 2 version includes a separate LED alarm indicator and louder audible notification. Weighing just 600 grammes, the LMm is both compact and lightweight and features automatic ranging and a battery life of five hours. The LMm is now available with a green laser guide light, which is more visible under strong sunlight. The Laser Methane miniGreen (LMm-G) combines the benefit of LMm with additional data storage functions and comes with Bluetooth capability, which can be connected to any android device. Visit www.crowcon.com

DTL has also announced the further strengthening of its dedicated team of skilled service engineers with the appointment of Mark Edwards who joins DTLâ&#x20AC;&#x2122;s team of fully qualified and certified engineers to provide service inspections onshore and offshore worldwide. Visit www.dampertechnology.com

The new D2x family from E2S Warning Signals, the independent warning device manufacturer, is based on a high output 116 dB(A) SPL 64 tone 4 stage horn sounder, which can be combined with a powerful 5 or 10 Joule Xenon strobe in a compact 130mm wide, 125mm deep die-cast marine grade aluminium housing. Designed for use in Zone 2, 22 and Division 2 hazardous locations, the D2x is a truly global product range, with multiple approvals permitting use in regions covered by IECEx, ATEX, NEC and CEC regulations.

With four remotely triggered alarm stages the D2x can signal multiple safety warnings or process events. In the combined units, the Xenon strobe beacon and the alarm horn sounder can be activated individually via separate terminations or linked for simultaneous operation from a common power supply. The horns offer 64 internationally and nationally recognised alarm tones plus continuous, intermittent, sweeping and alternating tones with an effective range of up to 125m (410ft); multi-sounder systems are automatic synchronised. In combined audible/visible units the polycarbonate beacon lenses are user-changeable, with a choice of amber, blue, clear, green, magenta, red and yellow colours. The corrosion proof, marine grade aluminium die cast enclosure, available in either red or grey, is phosphated and powder coated with an ingress protection level of IP66 and NEMA Type 4/4X/3R and 13, ensuring resilience in the harshest of environments. Dual cable entries and duplicated cable termination provide the facility to loop in and out, minimising installation time and cost. For maximum compatibility, the devices can be powered from 24 or 48 VDC or 115 or 230 VAC. Visit www.e2s.com

Power management company Eaton showcased its new generation of HMI/PLCs as part of its vision for how modern manufacturers can be more profitable through next generation manufacturing at the Hannover Messe. On show were the new XV300 series units which incorporate high-resolution capacitive displays complemented by high-performance embedded processing technology. With their robust construction, intuitive operation and competitive price-performance ratio, XV300 devices give machine and system builders attractive new options for developing simpler, more compact and more affordable solutions. www.the-eic.com

The gesture control made possible by the multi-touch display technology and the high accuracy of the screen touch functions facilitate intuitive operation and faster learning, leading to more effective humanmachine interaction. High system performance and a powerful graphic processor allow user interfaces to be implemented that meet and exceed the expectations of today’s end users, with features like fast screen changes and integrated multimedia elements such as video, pdf files and web content. Eaton’s XV300 series HMI/PLCs are currently being offered with 7 inch and 10.1 inch screen diagonals. The smooth nonreflective safety glass used in the displays features a special easyto-maintain design that allows thorough cleaning. This makes the devices suitable for applications in most industry sectors. XV300 devices are equally suitable for use as HMI operator panels and as HMI/PLC units with integrated PLC functionality. To complement the devices, Eaton is offering its new Galileo 10 project design and visualisation software that supports all features of products in the XV300 range.

Eaton

For the latest news, follow Eaton on Twitter (@Eaton_EMEA) or on LinkedIn (Eaton EMEA). Visit www.eaton.com

Established in 2002 in the UAE Triplefast Middle East was formed to act as LoneStar Group’s manufacturing, stockholding and sales centre. The LoneStar Group has recently been awarded a five year global Enterprise Frame Agreement (EFA) with Shell Global Solutions International BV for the supply of stud bolts and fasteners. The contract includes an option for a five year extension. The global EFA has been signed with LoneStar Group, for all group companies including Triplefast Middle East, a manufacturer and supplier of special nuts, bolts, machined components, gaskets and seals to the energy sectors globally. As detailed in the contract, the scope of supply will focus on Shell’s activities in North America, the Middle East, Asia, Europe and Australia. This contract further strengthens the group’s long-standing relationship with Shell, its EPC contractors and supply chain companies worldwide. Triplefast Middle East offers a complete fastener and sealing supply service to the oil, gas, petrochemical, power generation, construction and heavy engineering industries for the Gulf, Middle East, Caspian, Indian subcontinent and surrounding areas. Visit www.lonestargroup.com

Siemens has awarded Ovivo a contract to provide engineering, fabrication, documentation, mechanical and electrical erection, commissioning and training of a demineralisation plant at the Plock petrochemical plant in Poland. Ovivo will be supplying a complete demineralisation system for a total capacity of 560m³/hr (2,465gpm) net in a 5 x 25% configuration. Each line will consist of; flocculation, ultrafiltration with submersed membranes, reverse osmosis, degasifier, TOC (Total Organic Carbon) reduction with hard UV and mixed bed filters. The system is part of Siemens’ combined cycle power plant at the Plock project announced last year. The 596MWe combined cycle plant will not only provide the steam and electricity needed by the refinery, but will also have the flexibility to feed electricity to the National Grid. The raw water quality from the Wisla River added some challenges in the design of the demineralisation plant concept which resulted in adding an additional polishing step with a hard UV system in order to bring the Total Organic Carbon down to ˂10ppb. It was also decided that a 5 x 140m³/hr configuration will be applied to provide the continuous availability and operational safety requirement of the boiler feedwater. Kaveh Someah, VP Global Energy Group, said: “This is Ovivo’s third contract from Siemens in the past 12 months for different water treatment projects around the world. This new contract is a testament to Ovivo’s global capabilities in providing high quality water treatment to the energy market.” Delivery of the equipment is scheduled for 2016. Visit www.ovivowater.com @TheEICEnergy

Events Diary

UK, Overseas & Training April 2015

28 Business Presentation: Opportunities with GE Oil & Gas Rio de Janeiro 28 Business Presentation: Opportunities with TH Heavy Engineering EIC Kuala Lumpur 28 Corporate Entertainment: Cheese and Wine Networking Night Vintage Wine Bar, Dubai 29 Technical Workshop: Centrifugal Pump Design and Manufacture SPP Pumps, Gloucestershire

May 2015 5 Industry Overview: Fundamentals of Oil & Gas Radisson Royal Hotel, Dubai 6 Management Course: Time Management Made To Measure Training, EIC London 6 Industry Overview: Fundamentals of Refining and Petrochemicals Radisson Royal Hotel, Dubai 6 Technical Workshop: Gas Turbine Technology EIC Kuala Lumpur 7 Management Course: Negotiation Skills Made To Measure Training, EIC London 13 Management Course: Key Account Management Change Creation, EIC Aberdeen 14 Industry Overview: Fundamentals of Oil & Gas EIC Rio de Janeiro 20 Technical Workshop: Introduction to FPSOs EIC London 20 Industry Overview: Fundamentals of Power EIC Kuala Lumpur 21 Corporate Entertainment: Northern Region Golf Day MacDonald Portal Hotel, Cheshire 21 Industry Overview: Fundamentals of Subsea EIC London 26 Business Presentation: Opportunities with SNC-Lavalin/Kentz Yas Island Rotana, Abu Dhabi 27 Industry Overview: Fundamentals of Downstream EIC Kuala Lumpur 28 Technical Workshop: Introduction to Steam Turbine Technologies Siemens, EIC Rio de Janeiro June 2015 9 Management Course: Effective Management of Overseas Agents EIC Teesside 9 Technical Workshop: Introduction to Pipe Supports Carpenter and Paterson, Welshpool 9 Management Course: Advanced Business Writing Skills Eton Institute, Dubai 10 Management Course: Understanding Contract Terms & Conditions Radisson Royal Hotel, Dubai 11 Industry Overview: Fundamentals of Oil & Gas EIC Teesside 13 Technical Workshop: Introduction to FPSOs EIC Rio de Janeiro 15-16 Management Course: The Effective Manager EIC London 18 Industry Overview: Fundamentals of LNG EIC London 23 Business Presentation: Opportunities with PETRONAS EIC Kuala Lumpur 25 Technical Workshop: Introduction to Shale Gas EIC Aberdeen July 2015 2 Technical Workshop: Introduction to Steam Turbine Technologies Dresser-Rand Co Ltd, Peterborough 9 Management Course: Developing a Business Case Neos Learning, EIC London 15 Technical Workshop: Introduction to FPSOs EIC Aberdeen 16 Management Course: Technical Report Writing Rothera Group, EIC Aberdeen 23 Industry Overview: Fundamentals of Nuclear EIC London 27 Industry Overview: Fundamentals of Downstream EIC Kuala Lumpur August 2015 4 Management Course: Presentation Skills Made To Measure Training, EIC London For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

May 2015

Events Diary

Exhibitions & Delegations 2015

4-7 May Offshore Technology Conference (OTC)

Houston

17-21 May Overseas Delegation to Saudi Arabia and Bahrain

2-4 June Oil & Gas Asia (OGA)

23-26 June Brasil Offshore

Status Fully Booked Fully Booked

Kuala Lumpur

Fully Booked

MacaĂŠ

Booking Now

6-10 July Overseas Delegation to Thailand

Booking Now

9-12 September Oil & Gas Indonesia (OGI)

Booking Now

Jakarta

21-25 September Overseas Delegation to Ghana

21-25 September Overseas Delegation to the Philippines

Booking Now

27-29 October OTC Brasil

Rio de Janeiro Booking Now

tbc October Overseas Delegation to Canada

tbc October Overseas Delegation to Mexico

tbc October Overseas Delegation to Papua New Guinea

9-12 November ADIPEC

Abu Dhabi

23-27 November Overseas Delegation to Cambodia

Fully Booked Register your Interest

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

@EICOverseas

National Events 2015

2 June EIC Connect Middle East

8-11 September Offshore Europe

15 October EIC National Dinner

24-25 November EIC Connect Energy

Status

Abu Dhabi

Delegate Bookings Now Open

Aberdeen

Stand Bookings Open

London

Booking Now

Manchester

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

BOOKING NOW 9-12 September 2015

camilla.tew@the-eic.com www.the-eic.com

@TheEICEnergy

May 2015

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Brasil Offshore 2015 Oil & Gas Exhibition and Conference 23-26 June 2015 Macaé #EICBrasilOff15 TAP funding £2,500 for eligible SMEs

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 for another year at OTC Brasil 2015. The International OTC Brasil Oil and Gas Exhibition is held every two years in Rio de Janeiro and is one of the world’s foremost events for the development of offshore resources in the fields of drilling, exploration, production, and environmental protection. The bi-annual OTC Brasil exhibition 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. OTC Brasil attracts the world’s foremost experts and companies to share knowledge, make new contacts, and explore the latest technologies of 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 please contact: deanne.lintorn@the-eic.com

The EIC is pleased to be returning to host the UK National Pavilion in Macaé, which is the operational base for more than 80% of offshore exploration in Brazil. Brasil Offshore is the third largest offshore exhibition in the world, considered one of the most relevant trade shows within the international offshore market, attracting visitors and exhibitors from 38 countries and covering all aspects of the Brazilian offshore industry. Brasil Offshore 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 please contact Deanne Lintorn: deanne.lintorn@the-eic.com Overseas Delegation to Thailand 6-10 July 2015 #EICThailand Thailand is active in both upstream and downstream businesses. The country has about 449 million barrels of proven oil reserves and approximately 9 trillion cubic feet of natural gas. 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, Bangkot 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). One of the fastest growing and stable 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. For further information please contact Camilla Tew: Tel +44 (0)20 7091 8608 Email camilla.tew@the-eic.com www.the-eic.com

@TheEICEnergy

Oil & Gas Indonesia (OGI) 9-12 September 2015 Jakarta #EICOGI15 TAP funding £1,500 for eligible SMEs The EIC is once again proud to be organising and managing the UK Group at OGI taking place from 9-12 September 2015. Indonesia is keen to halt the decline in oil production. This will occur through investment not only in new field developments but also through the utilisation of EOR technology on currently producing fields. The upstream sector could see capex of up to US$90 billion in the coming years, with much of this investment being made by international operators including Chevron, ConocoPhillips, Eni, Inpex and Total. Investments are also being made on new LNG liquefaction facilities and the expansion of existing LNG plants, with capex on the BP lead Tangguh expansion project expected to be in the region of US$12 billion. OGI is the perfect platform for UK companies to showcase their products and services to the Indonesian market. Please contact: camilla.tew@the-eic.com

May 2015

EIC Training Services

Training Services An exciting year for LNG

Major developments are expected in the LNG business in 2015. The main drivers are the fall in oil prices, new LNG projects coming on stream and new technologies, notably Floating LNG. Taking each of these in turn: The fall in oil prices since the end of 2014 has strongly influenced trading patterns. Long term contracts for LNG have been based traditionally on oil prices. More recently, US projects have been sanctioned based on Henry Hub gas prices and as a result the huge arbitrage value for US gas exports has been reduced. Although these US projects will only come on stream next year and beyond, sustained low oil prices could have an impact on new development. A number of new LNG projects will have to take the lower oil price levels into account when taking Final Investment Decisions (FIDs). Several new projects are coming on stream in 2015 putting potential pressure on short term price levels. Most of these projects are based in Australia targeting the north east Asian market. Market conditions have changed since these projects were sanctioned at the turn of the decade and the high costs of several projects put pressure on profitability in the short term. There is no shortage of potential LNG projects, the main question is which ones are likely to make progress in the current commercial environment. Floating LNG opportunities are emerging to take advantage of potential stranded oil and gas fields which would otherwise be uneconomic. Two types of development are being pursued: large scale facilities like Shell’s Prelude capable of operating over a range of field qualities; and small bespoke type facilities tailored to an individual field. After a couple of years when LNG production has stagnated, there is expected to be a considerable increase in 2015 as new projects are coming on stream. The key questions are where will the next wave of LNG projects come from and what are the challenges they will be required to meet. The Fundamentals of LNG course will address these and many other issues affecting the industry. Malcolm Johnson, eMJay LNG Ltd

Shell’s Prelude FLNG

Industry Overview

Fundamentals of LNG Thursday 18 June 2015 EIC London The course is designed for a wide range of attendees from both technical and non-technical backgrounds. It will be suitable for suppliers to the LNG industry to give them a broad knowledge of the processes involved and the technical/commercial issues affecting the business. It is also suitable for managers with specific knowledge of parts of the LNG business to gain a broader understanding of the overall LNG value chain and new entrants to the LNG business for an understanding of scope and size of the business and the activities involved. This course would also benefit those working in sales and finance as well as non-technical staff who require an overview of the LNG business, or anyone requiring an understanding of how the LNG industry works. The course 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. The supply/demand overview provides an understanding of how the industry has developed and the opportunities and constraints on future development of the LNG industry and the challenges it faces.

Management Course

The Effective Appointment and Management of Overseas Sales Agents Tuesday 9 June 2015 EIC Teesside

The Effective Manager Monday 15 – Tuesday 16 June 2015 EIC London

Technical Workshop

Introduction to Shale Gas Thursday 25 June 2015 EIC Aberdeen

Introduction to Pipe Supports Tuesday 9 June 2015 Carpenter and Paterson, Welshpool

Industry Overview

Technical Workshop

Fundamentals of Oil & Gas Thursday 11 June 2015 EIC Teesside

Introduction to Steam Turbine Technologies Thursday 2 July 2015 Dresser-Rand, Peterborough

If you would like further information on our courses, or are interested in hosting a workshop please contact: terri.sylvester@the-eic.com www.the-eic.com

@TheEICEnergy

May 2015

EIC National Events

National Events

Networking and EIC Connect in 2015 Networking and EIC Connect in 2015

Following a successful Oil & Gas event last year, 2015 is a bumper year for any company looking for opportunities in the energy sector.

Companies are advised to send at least two delegates to allow them to share the briefings, conference sessions, meet exhibitors, network with delegates and arrange one-2-one appointments across the day.

Starting next month EIC Connect Middle East returns to the St Regis Saadiyat Island Resort, Abu Dhabi.

Delegate places are priced at just £179 per person. It’s not too late to book your place!

Encompassing a high-level conference programme, a series of contractor briefings and a packed exhibition, EIC Connect is the place to be.

With daily direct flights to Abu Dhabi from a number of UK airports and a 5* hotel rate at just £135 per night attending the event may be easier and more cost effective than you think.

The conference programme, chaired by the charismatic Eddie O’Sullivan of MEED, will be themed around a five year outlook for the oil, gas and power industries in the region.

For more information and to book your delegate place contact Charmaine Atkinson or visit: www.the-eic.com/eicconnect/middleeast

The conference and discussion sessions that follow throughout the day will explore the future opportunities and alternative markets for those involved in the oil, gas and power sectors with panellists from ADNOC, BP, Mubadala Petroleum, Masdar and many more.

But if the Middle East isn’t for you at this time fear not as on 24 and 25 November 2015, EIC Connect Energy returns to Manchester for a two day global supply chain event and exhibition for the nuclear, renewables and power generation sectors. To be part of an exclusive showcase of just 50 companies and promote your products and capabilities to buyers from around the world you need to reserve your stand today.

Between conference sessions, in an effort to guide companies looking to establish themselves in the Middle East, there will be a number of information and discussion sessions covering the high value opportunities in the region, local content, contracting models and the other requirements of working in the Middle East.

For more information and to book your delegate place visit www.the-eic.com/eicconnect/energy or contact:

Running concurrently will be the contractor briefings where Petrofac, Fluor and McDermott will unveil their forward global workload in a series of presentations.

Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com Visit www.the-eic.com/eicconnect

The plans have proven so attractive that the exhibition has sold out. 42 companies including Amec Foster Wheeler, Doosan Babcock, Mott MacDonald, Technip, Wood Group and many more will be joining the event to display a breadth of new products and services. www.the-eic.com

@TheEICEnergy

May 2015

EIC National Events

GATE DELE INGS K BOO W NO N OPE

www.the-eic.com

@TheEICEnergy BOOK NOW:

May 2015 #EICConnect

EIC UK News

News from our UK offices

Corporate Entertainment EIC National Dinner 2015 Thursday 15 October 2015 Natural History Museum, London

Forthcoming Events

EIC at All-Energy 2015 Wednesday 6 and Thursday 7 May 2015 SECC, Glasgow

Taking place on 6 and 7 May in Glasgow, All-Energy is the meeting place for decision makers from the offshore wind and operations and maintenance communities. As the only face-to-face forum of its kind in the UK, the show provides an unrivalled platform for the industry’s business professionals, academia, finance, community and government to drive innovation, business and investment opportunities across the sectors; buy and sell products and services; and engage in outstanding networking events. A number of EIC members will be exhibiting at the show including Aggreko, Bureau Veritas, Capula, James Walker, Schneider Electric and Weir Power and Industrial to name a few. A full list of exhibitors and the latest floor plan showing stand availability can be viewed at: www.all-energy.co.uk Come and visit the EIC on exhibition stand J02 where representatives from our Membership, Events and Power, Nuclear & Renewables teams will be on hand to offer advice on the many ways that we can help you with business development activities and answer any questions that you may have. Contact Pamela Nicholson.

Bookings for the EIC National Dinner are well underway with around 30% of the tables and all sponsorship packages now sold. We are pleased to announce that LV Shipping is returning as the Platinum sponsor of the dinner and we also have supporting sponsors which include Vantrunk, AEG Power Solutions and Roxtec Ltd who are sponsoring the Drinks Reception, Invitations & Programme and the Prize Draw respectively. The event is taking place in the Hintze Hall at the Natural History Museum which showcases some of the museum’s most famous collections including Dippy the Diplodocus. Beginning with a canapé and drinks reception, you will then move through into the Hintze Hall where a sumptuous three course dinner will be served. During dinner guests will be entertained by expedition leader, travel writer and marine biologist Monty Halls, one of the most established and thought-provoking speakers in the UK today. Alongside this there will be fantastic opportunities to network with peers from across the energy industry. The dinner is exclusively open for EIC members and their guests with tables of 10, 12 and individual places available. Contact charmaine.atkinson@the-eic.com

Corporate Entertainment Northern Region Golf Day Thursday 21 May 2015 MacDonald Portal Golf and Spa Resort, Cheshire The Championship Course opened in 1990, was named Golf Course of the Year in 1995, and is the star of Portal’s golfing complex. Designer Donald Steel has created a challenge that is characterised by unique and distinctive holes; expansive water hazards and cascading waterfalls are among the tests. 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 include a breakfast buffet, 18 holes, with teams playing the Stableford competition with added individual player contests around the course. All this will be followed by a delicious two course presentation dinner and the winning team being awarded the Flexitallic Challenge Bowl Cup. There are three levels of sponsorship available for the Northern Region Golf Day. The different levels (Gold, Silver and Bronze) give your company brand recognition throughout the various EIC mediums, sponsorship of certain holes and prizes and provide a high level of brand visibility on the day of the event. Contact Jennifer Hole.

Contact Charlotte Hust, UK Regional Manager (Southern) Tel +44 (0)20 7091 8624 Email charlotte.hust@the-eic.com Helen Doona, UK Regional Manager (Northern) Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com Jennifer Hole, UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com Pamela Nicholson, Office & Events Manager (Scotland) Tel +44 (0)1224 628 251 Email pamela.nicholson@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

May 2015

www.the-eic.com

@TheEICEnergy

May 2015

EIC Middle East News

Middle East News

Finally, we are delighted to mention some of the member’s representatives with whom we have either had the pleasure to welcome to the office or else visited their offices to offer whatever assistance we can to help with their business growth. David Lawson and his colleague Pat McNiff from Alphastrut passed by to introduce themselves while on a regional visit. Ryan McPherson from ProSep visited the office to learn more about EICDataStream. We were pleased to welcome John Lynch in his new capacity as Regional Director of AEG Power Solutions. A member from one of our incubator offices in Houston, Paul Wilson dropped in to introduce himself along with Mohammed Eshrath, his colleague who is based in Al-Khobar, Saudi Arabia. Visits to the offices of Move One and new members Randstad were undertaken where we met Neal Carley at Move One and Marlon Atreides at Randstad. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Office News

It is important to start this month’s News with the subject of Iran. The agreement on 2 April between the so called P5+1 (China, France, Russia, the United Kingdom, and the United States plus Germany), The European Union and Iran is referred to as a Joint Comprehensive Plan of Action (JCPOA) and sets out elements that will form a final text to be written and finalised by 30 June. Full details can be found on the US Government State Department’s website: http://www.state.gov/r/pa/prs/ps/2015/04/240170.htm The plan of action is quite comprehensive but does not provide any detailed timeline as to when the sanctions will be lifted. It is most definitely a step in the right direction but from discussions with key people here who continue to monitor these talks, the relaxation of the sanctions will not occur anytime soon and the advice continues to be one of cautious optimism that everything is moving in the right direction since the time when the last most pressing sanctions were implemented back in 2012, that affected the global financial community. You can be assured that the importance of this issue cannot be understated and we will continue to keep a close eye on developments and report as and when appropriate. We were pleased to host Amec Foster Wheeler who provided a clear insight into the reasons behind the merger of two prime contracting organisations and what the policies would be looking ahead, especially with regard to engagement with the supply chain. We also successfully spent a week in Atyrau, Kazakhstan where despite the challenging oil price, there were still significant opportunities for UK companies as long as they were cognisant of the local content demands which required serious consideration. For April, we were delighted to host the Chiyoda CCC JV who were keen to provide an overview of this important joint venture between two giants in the global EPC space. There was also the final meeting of the EIC Connect Advisory Group who together will ensure a splendid event on 2 June. Full details and updates can be found at the dedicated event website: http://www.the-eic. com/EICConnect/MiddleEast/AbouttheEvent.aspx In addition to this, we also hosted our first networking event with a successful Cheese & Wine night that saw a robust attendance of over 50. May will see our Saudi & Bahrain delegation along with a lunch where we will be hosting SNC-Lavalin who will provide an overview of its newly formed relationship with Kentz International. On the training front, we have our popular Fundamentals of Oil & Gas closely followed by the Fundamentals of Refining and Petrochemicals. There also continues to be an interest in us providing a number of courses in-house. One sad note for the month will be the departure of one of our Serviced Office tenants. After almost two years, JSP will be flying the nest and relocating to its newly established office in Abu Dhabi.

Forthcoming Events Industry Overview

Fundamentals of Oil & Gas Tuesday 5 May 2015 Radisson Royal Hotel, Dubai

Industry Overview

Fundamentals of Refining and Petrochemicals Wednesday 6 May 2015 Radisson Royal Hotel, Dubai Business Presentation Opportunities with SNC-Lavalin/Kentz Tuesday 26 May 2015 Yas Island Rotana, Abu Dhabi To register your interest or to book on any of the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Tacaamol packages to be awarded in 2015 Two packages at Tacaamol’s petrochemicals complex project at the Madeenat ChemaWEyaat al-Gharbia site are expected to be awarded in 2015. Technical bids for the aromatics complex package were submitted in October 2014, a deadline for commercial bids has yet to be announced. Tacaamol has received technical bids for the second package covering offsites and utilities recently. Bids were submitted by Bechtel, GS Engineering & Construction, Hyundai Engineering & Construction, Petrofac and Samsung Engineering. The deadline for commercial bids has yet to be announced. Since commercial bidding closure for both packages is not yet clear, the EPC contracts are expected to be awarded towards the end of 2015.

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

@TheEICEnergy

May 2015

EIC Asia Pacific News

Asia Pacific News

Forthcoming Events Technical Workshop Gas Turbine Technology Wednesday 6 May 2015 EIC Kuala Lumpur

Office News

In February and March we had visits from the following member companies to our offices in Menara HLA:

Business Presentation Opportunities with PETRONAS Malacca Refineries Tuesday 23 June 2015 EIC Kuala Lumpur

Amarinth Ltd We assisted Amarinth in the following areas: providing Amarinth with use of office space for them to conduct interviews; recommending three recruitment companies, two EIC members and one local company based in KL, for its consideration in its effort to hire a local sales manager; recommending two legal firms to assist Amarinth in drafting local employment contracts; securing appointments with Technip Malaysia and Genesis to obtain the latest updates on projects in Malaysia and for Amarinth to be registered as a vendor to Technip; securing appointments with three local companies as potential partners or distributors; securing an appointment with a local RSC operator, Uzma Oil. We are happy to note that Amarinth will take up one of our offices as a base office for its APAC activities, beginning in June 2015.

Industry Overview

Fundamentals of Downstream Monday 27 July 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

Regional Comment

Enel and Marubeni to co-operate on renewal projects Enel Green Power and Marubeni Corporation have signed a two year Memorandum of Understanding to co-operate in evaluating potential business opportunities in renewable projects mainly in the Asia Pacific region. Co-operation between the two companies will address geothermal, wind, solar and hydro projects located in the Philippines, Thailand, India, Indonesia, Vietnam, Malaysia and Australia as well as other areas that may be identified at a later stage.

XPD8 Solutions Murray Carne, the Financial Director of XPD8 Solutions visited EIC APAC for a discussion on business opportunities and the strategies it should employ with regards to developing business in the region. SNC-Lavalin Fabrice Etienvre, VP Government Relations and Global Operations, and Travis Smith, SNC-Lavalin’s Country Head for Malaysia, visited our offices on 13 February 2015. For Travis’s benefit, we presented a brief demonstration of the capabilities of EICDataStream and the planned events for 2015.

South Korea ventures into Mexico’s electricity market South Korean energy and construction firms are gearing up to make inroads into Mexico’s electricity market, which has recently been opened up to private firms. Mexico’s Federal Electricity Commission (CFE) announced that it would invest US$4.6 billion to build power utilities. Some eight major Korean energy enterprises and builders are already preparing to bid for the 786MW and 899MW Noroeste and Noreste thermal plant projects, worth more than US$1 billion and US$1.4 billion respectively. The companies preparing bids include POSCO, Samsung C&T, Hyundai E&C and Daelim Energy.

Elfab Ltd Tom Barret, the Business Development Director for APAC at Elfab Ltd, contacted our office to request training on EICDataStream for him and his staff. Our Regional Analyst performed training over the phone. Genesis Harith Abu Hassan of Genesis Oil & Gas Consultants, visited our offices on 6 February to find out more about the EIC and was given a briefing on our products and services. We are now in close contact with Harith on the latest project updates in Malaysia.

Fuji Electric selected as geothermal turbines supplier Fuji Electric has announced that it has been selected as the supplier of geothermal power equipment for a major project in Indonesia. The power electronics manufacturer will supply two units of geothermal steam turbines and generators to PT Pertamina Geothermal Energy, a subsidiary of Indonesia’s Pertamina. The production is to be completed by the end of 2016. Fuji Electric has been awarded the EPC contract through Sumitomo Corporation of Japan in consortium with PT Rekayasa Industri.

Permasense Dr Peter Collins, Chief Executive Officer, Permasense, visited our offices on 11 March to discuss its intention to rent one of our offices. He has also asked us to recommend a reputable accounting firm and a legal firm. Dr Collins intends to discuss his business expansion in Asia on his next visit.

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

@TheEICEnergy

May 2015

EIC North and Central America News

North and Central America News Office News

Venari Resources expands GoM portfolio The deepwater E&P company was the high bidder on 12 blocks in the Central Gulf of Mexico offshore lease sale held in March. The company bid with operator Chevron on nine blocks in Green Canyon close to their Anchor discovery. Venari also won three Walker Ridge blocks with operator Anadarko which contain the Coronado discovery.

The EIC North and Central America office is delighted to announce the appointment of Amanda Duhon as Regional Manager. Amanda has worked as part of UKTI’s international energy team assisting UK companies with market entry and more recently established the North American office for Trade & Investment Queensland. Her extensive network and local knowledge of the sector will undoubtedly add value to EIC members. The role of the Regional Manager is to manage the services we offer across North and Central America, including Canada, Mexico and the Caribbean, all of which continue to offer vast opportunities for members. Local EIC services include office space via EICLaunchPad, regional sector expertise, business development opportunities and local project knowledge via EICDataStream; we encourage all of our members with an interest in the region to contact the local office to ensure that they are taking advantage of the membership services available to them. Charlotte Hust has been managing the EIC office in Houston on an interim basis since November and will be returning to her role as Regional Manager in the UK later this month.

Shell likely to resume exploratory drilling in Arctic The Department of the Interior has confirmed Shell’s drilling rights in the Chukchi Sea after re-examining the environmental impact of its 2008 lease sale. This decision allows the BOEM to begin its review of Shell’s new offshore drilling plan, which includes two rigs this summer. The Noble rig, with the Transocean rig as a backup, will drill wells into the Burger prospect, 70 miles offshore Alaska’s shoreline. Ontario to see US$3.66 billion in project starts Ontario’s power industry is the driving force behind US$3.66 billion in projects expected to kick off in the Canadian province in the second quarter of 2015. More than half of that amount is attributed to projects fuelled by natural gas and wind power.

Forthcoming Event

EICDataStream Overview Wednesday 22 April 2015 EIC Houston A free session for all EIC members who are new to using EICDataStream or need refreshing. Delivered by our regional analysts who are available to answer any questions you may have regarding the database and project tracking. 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: Amanda Duhon Regional Manager (North & Central America) Tel +1 713 425 6396 Email amanda.duhon@the-eic.com

US sees growing share of electricity from wind More than 4.5% of the nation’s electricity comes from wind power, which is one of the fastest growing sources of generation capacity. Iowa currently leads the nation in wind-derived power, which makes up 29% of the state’s electricity. Iowa is followed by South Dakota at 25% and Kansas at 15%. The states with the most renewable wind projects scheduled to begin construction between April 2015 and December 2017 are Texas, with 46 wind projects valued at US$18.52 billion, Illinois, with 23 wind projects valued at US$8.57 billion, and North Dakota, with 17 wind projects valued at US$654 million.

Regional Comment

Mexico’s round one public tenders kick off The first round of tenders has closed. It includes 14 shallow water blocks; a total of 39 companies enrolled in the bidding for the exploration and production of those offshore oil and gas fields. The contracts will be awarded in July. The second round will be for five contracts spread over nine shallow-water production fields. Successful prequalifiers will be announced this month. Pemex intends to compete in both tenders; the company is deciding on which fields to bid and whether to bid with partners.

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

@TheEICEnergy

May 2015

EIC South America News

South America News

Office News

OTC presents a great opportunity to do business with Latin American companies as well as exhibit or visit the show. To bring UK companies up to speed with the business climate, key global offshore projects and learn how to access major international supply chains, UKTI is organising a Topical Breakfast Briefing: Doing Business in Brazil and Mexico on Monday 4 May. If you’re interested in attending or if you are visiting the exhibition, please let us know as it will be a pleasure to talk about opportunities in Latin America.

Ecopetrol’s US$7.8 billion 2015 business plan presentation was the first of several business meetings with several oil and gas companies across the supply chain from operators such as Amerisur, to engineers Wood Group, SNC Lavalin, Amec Foster Wheeler and Tipiel and oilfield service companies Halliburton and Schlumberger, enabling direct interaction with directors and procurement managers. The crisis generated by the sharp fall in oil prices was discussed in meetings, and many representatives were keen to share their views on how Colombia is represented in this market. Networking was encouraged during the two receptions, the first one at the house of Mr Jeff Glekin, Deputy Head of Mission at the British Embassy in Bogota who kindly opened his door for approximately 40 guests including representatives from Statoil, Shell and key decision makers from the Colombian oil and gas sector. The second opportunity took place on the roof top of a boutique hotel in Cartagena, where a group, formed by five UK based companies represented by their Latin representatives, of 30 local business leaders spent a pleasant evening engaging with the delegates. Feedback from the delegates was extremely positive and encouraging with plans already being discussed to revisit Colombia within the next 12 months. For more information on future trade delegations please contact: deanne.lintorn@the-eic.com

Forthcoming Events Industry Overview

Fundamentals of Oil & Gas Thursday 14 May 2015 EIC Rio de Janeiro

Technical Workshop

Introduction to Steam Turbine Technologies Thursday 28 May 2015 Siemens, EIC Rio de Janeiro

Technical Workshop Introduction to FPSOs Saturday 13 June 2015 EIC Rio de Janeiro

Event Report

Overseas Delegation to Colombia 16-20 March 2015 The EIC recently facilitated yet another successful market visit to Colombia. For the third time since 2011, a group of UK based suppliers visited the region to develop business. On this occasion, besides Bogotá, the itinerary also included meetings in Cartagena. With the offshore developments off the country’s Caribbean coast, and the Cartagena refinery’s expansion, this particular area, so recognised for tourism, also stands out as a business place along with Barranquilla and Santa Marta. It’s always very impressive to visit a country that has managed to multiply its GDP by four in the course of four years (2010-14) and doubled foreign investment. This has only been possible due to a very friendly business environment which made the group realise why Colombia ranks first in Latin America on the World Bank’s Doing Business list. As part of the country briefing, several well recognised institutions such as Invest in Bogota, Invest in Cartagena, Pro Export Colombia and ANDI (National Business Association) shared relevant facts about the country, highlighting not only the oil and gas sector, but also opportunities in other segments such as infrastructure for roads and bridges across the country.

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

Brazilian oil production increases Amid concerns about the strength of its economy, Brazil has reported a double-digit increase on its oil and gas output last February compared to the same month in 2014. Oil production was up 16.3% to 2.4 million barrels per day (of which 2.04 MMb/d was produced by Petrobras), while gas production was up 14.5% year on year to 95.4 million cubic metres of gas per day. Production from pre-salt areas hit 809,000b/d, down from 824,000b/d in January 2015. Total production in February reached 3.03 million barrels of oil equivalent per day.

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

@TheEICEnergy

May 2015

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