EIC Monthly News November 2012

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EIC Monthly News November 2012

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The EIC Chief Executive

The Chief Executive Welcome to the November edition of the Monthly News. May I also extend a warm welcome to the new Chairman of the EIC Board, Paul Mitchell. Paul was appointed Chairman at the AGM in October following the retirement of Mike Rolls. A Chartered Civil Engineer, Paul has nearly 40 years’ experience in the design and construction of large scale schemes, with a particular focus on the energy sector in the UK. I very much look forward to working with Paul as the EIC continues to make steady progress in improving services to members. As Paul takes over as Chairman I would like to take this opportunity, on behalf of the EIC and its members, to thank his predecessor Mike Rolls. Mike has served on the EIC Board for nearly 19 years, the last 4 as Chairman, and his outstanding contribution has been pivotal in helping to drive the EIC to its current position as a widely respected and leading trade association within the UK energy supply chain. His invaluable service to the EIC is recognised and appreciated by everyone who has worked with Mike over so many years. On now to one of the most eagerly anticipated events in the EIC’s annual calendar... at the time of writing I am preparing to meet members and their guests at my first EIC National Dinner as CEO. I expect it to be another excellent networking opportunity for our members and I look forward to reporting back on the event in the next issue of the Monthly News. I will also soon be off to Abu Dhabi for ADIPEC, one of the largest overseas events attended by the EIC, and an important event for strengthening our members’ relations with the oil and gas industry in the Middle East. Once again the EIC will be hosting the UK Pavilion, supported by UKTI, with 49 companies demonstrating the depth and breadth of British supply chain excellence. From next year ADIPEC will become an annual event, indicating the high level of demand from the oil and gas supply chain to do business in the region. Indeed, data extracted from EICDataStream shows that total spend in developing, redeveloping and enhancing oil and gas production in the Middle East region is expected to be over $445 billion over the next decade. The MENA region as a whole continues to offer substantial new market opportunities to UK businesses. With this in mind, the EIC will host two Overseas Delegations early next year to key potential future markets for our members: Libya and Kurdistan. With multi-billion pound oil and gas projects proposed in both regions, these Overseas Delegations will offer members invaluable opportunities to access vital contacts responsible for procurement. If you are interested in either of these Overseas Delegations, you can register your interest now on the events section of the EIC website: www.the-eic.com/Events Also instrumental in putting our members in front of the right audience is our EIC Connect Oil & Gas 2012 event, now with a conference running alongside the exhibition and supply chain share fair. I am pleased to announce that the full conference programme has now been released with Paul Massih, VP for Contracting and Procurement at Shell E&P, opening proceedings with the Plenary Session. Four other conference sessions will take place over the two-day event, exploring opportunities and challenges for the supply chain in North Sea production; unconventional gas production; future investments and opportunities in the LNG boom currently underway in Australia; and understanding the challenges of operating in ultra-deepwater conditions. You can find out more about the conference and supply chain presentations on page 17. EIC Connect Oil & Gas 2012 will take place on 27 – 28 November at Manchester Central and delegate places are selling fast. I urge those who have not already booked a place to do so soon, as attendance at the conference sessions needs to be pre-booked, and the one-to-one meetings are allocated via a priority system. The EIC National Events team has also opened the stand bookings for All-Energy 2013, taking place from 22 – 23 May in Aberdeen, where the EIC will be taking an exhibitor group. With over 8,000 visitors to All-Energy 2012, this is the UK’s largest renewable energy exhibition. Space in the EIC Pavilion, which is in a prominent location at the front of the main hall, is exclusive to EIC members. Demand is high so if you would like to reserve your space, please contact: charmaine.atkinson@the-eic.com I wish you continuing success for the rest of 2012 and look forward in next month’s edition to contemplating EIC developments and the events programme for the new year ahead. Ian Stokes

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Content

November 2012

The Chief Executive

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Business Information

3

EIC Monitor

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Training Services

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New Members

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Members News

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UK & Overseas Events

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Exhibitions/National Events 15 Overseas Exhibitions

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UK News

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Middle East News

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Asia Pacific News

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China News

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North America News

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South America News

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November 2012


EIC Business Information

Business Information

Crouching tiger, hidden dragon Chinese state oil firms have been on a spending spree to buy overseas oil and gas assets to secure supply to the country, the world’s second-largest oil consumer, and maximise returns on oil produced overseas. China this summer made big strides in to the North Sea oil and gas industry as it needs to meet its growing demand for energy to ensure the exceptional growth rates of recent years can be maintained. July saw the country sign deals worth £11 billion as two state-controlled companies took stakes in North Sea operations. China National Offshore Oil Corporation (CNOOC), China’s biggest offshore producer, announced the takeover of Canadian rival Nexen. The deal was worth an estimated US$15.1 billion (£9.7 billion) and is the largest single acquisition by a Chinese energy company to date. On the same day, China Petroleum & Chemical Corporation (Sinopec) said it was paying £1.5 billion (£970 million) for a 49% stake in Canadian oil company Talisman’s UK North Sea interests. China’s top refiner is looking to expand its array of supply sources and build up its expertise in offshore development. The two deals would give the Chinese state-controlled enterprises control of more than 8% of oil and gas production in the UK North Sea. The North Sea had previously been ignored by Chinese companies, perceiving it to be too mature and about to dry up. However, in recent years the region has seen several major discoveries resulting in opportunities. As the region matured, several majors sold off assets and a number of smaller independents are now involved in operations – many struggling to access capital. Nexen said its deal with CNOOC will push its projects around the world at a much faster pace than would have been possible otherwise. The company has missed a series of production targets and had difficulties developing its Long Lake oil sands project. Talisman commented that the joint venture created would be more able to invest in improving the output of UK oil assets than it would have been able to on its own. According to research, Chinese firms have reported 1,414 overseas acquisitions, valued at a total of around $235 billion, since January 2008. The most recent acquisitions show that China is set on obtaining equity oil, owning oil fields – not just buying the oil – in order to secure its future supply. Historically China has depended on the Middle East for oil imports but is now keen to diversify its sources and move away from over-reliance of the region given its political instability. China’s early overseas investments were mainly in the developing world. The more recent deals have been in Canada, USA and Europe, notably following the global economic and financial crisis.

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If the deal is completed it gives CNOOC a significant role in new technologies including oil sands developments as well as shale gas, and giving them access to operate in North America alongside some of the majors as Nexen is a significant player in the Gulf of Mexico. It is an opportunity for the company to help it build a North American business beyond its current one as a financial backer. However, the US Committee on Foreign Investment will first examine whether CNOOC’s ownership of Nexen’s assets poses any risks to US security. The acquisition of US energy assets by Chinese state oil companies has in the past been politically problematic, as evidenced by CNOOC’s failed attempt to buy Unocal in 2005. The Nexen acquisition would help CNOOC boost production at a time when it is struggling with its existing Chinese portfolio. CNOOC recorded production declines at almost all of its domestic developments in the first quarter against a year ago. The company’s overseas oil and gas output grew, but not enough to offset the lower domestic output. CNOOC reported total output was down 6.3% in the first quarter from a year ago. The firm barely eked out a 0.7% increase in output during 2011. Figures in March showed that China’s apparent oil demand grew by 3.1% year-on-year. The acquisition of Nexen would see CNOOC’s production output increase by a fifth and substantially increase proven reserves. This is not CNOOC’s first foray into Canada. Chinese state-controlled firms already control 7% of Canada’s oil sands reserves. A year ago CNOOC agreed to buy struggling Canadian oil sands player Opti Canada in a $2.1 billion deal that gave it the 35% stake in Long Lake. CNOOC also acquired a 17% stake in oil sands operator MEG Energy in 2005. Beijing last year shuffled the top ranks at the oil companies, shifting the chairman from China National Petroleum Company (CNPC) and sending the former CNOOC head to Sinopec, highlighting the heavy involvement Beijing’s policy makers have in the companies’ affairs. China has deep pockets and through its state-owned companies it will continue looking for opportunities to keep securing its long-term natural resource supply across the globe. But what about reciprocity: should Chinese firms be allowed to acquire North American assets or companies while US and Canadian companies are unable to do the same in China? Malin Amundsson Business Information Manager Tel +44 (0)20 7091 8607 Email malin.amundsson@the-eic.com

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November 2012


EIC Monitor

EIC Monitor The latest EIC Monitor, the quarterly report from the EIC tracking new projects across the global energy industry, indicates an overall return to growth across the energy project landscape during Q3 2012. The number of new projects announced during the last quarter (Q3 July – September 2012) across the global energy supply chain is up 27% compared to Q2 2012, while the total potential investment value of US$329 billion is up 17% on last quarter, but is down 38% on Q3 2011.

Neil Golding, EIC Head of Business Information, says: “Overall, figures this quarter indicate that growth is returning to the global energy project landscape with significant increases in both project numbers and the total potential investment values in the upstream, midstream and renewables sectors. The midstream sector is particularly buoyant with many LNG export and import projects – along with the associated infrastructure – proposed in order to serve the high demand from the Asia Pacific region”.

tracks over 9700 active and proposed projects in the global energy industry and provides an industry barometer, broken down into oil and gas (upstream, midstream, downstream), renewables and the nuclear and conventional power sectors. Data is analysed by the number and value of new, active and proposed projects recorded by the EIC each quarter.

Summary of Q3 2012 new projects by number and value The graphs below show the total number and value of new projects across the global energy supply chain for Q3 2012 and the previous four quarters.

Key highlights of Q3 2012 report 1 July – 30 September • Overall this quarter, there were 527 new projects announced across the global energy supply chain with an estimated total value of US$329 billion, compared to 414 in Q2 2012 totalling US$280.5 billion and 527 new projects in Q3 2011 worth US$535 billion. • The upstream sector has seen an increase of 89% in the number of new projects in Q3 2012, with a potential investment value of US$35.9 billion, up nearly 21% from US$29.8 billion in Q2 2012. • The midstream sector has seen a 94% increase in the potential investment value of new projects this quarter, rising to US$76.9 billion from US$39.5 billion last quarter, with a 42% increase in the number of new project announcements since Q2 2012. • In the downstream sector, the number of new projects has increased by 20% since Q2 2012 with a 5% decrease in the total potential investment value from US$62.7 billion in Q2 2012 to US$59.8 billion in Q3 2012. • The renewables sector has seen an increase of 27% in the number of new projects in Q3 2012, with the potential investment value rising 40% to US$79.9 billion in Q3 2012 from US$57.1 billion in Q2 2012.

In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance.

• In the power sector, the potential total investment value of new projects has decreased 20% to US$70 billion in Q3 2012 from US$87 billion last quarter, while the number of new projects remains static with a less than 1% decrease on Q2 2012.

energizing your business

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November 2012


EIC Monitor

Analysis by Sector Upstream • There have been 87 new projects in the upstream sector totalling US$35.9 billion in Q3 2012. In comparison there were: • 46 new projects totalling US$29.8 billion in Q2 2012. • 66 new projects totalling US$42 billion in Q3 2011. • Key hotspots of activity this quarter can be found in India and Canada, which together represent nearly a third of the total potential investment value in this sector. The largest single project is the proposed US$6 billion Rajasthan Block Expansion Project in India. Midstream • There have been 94 new projects in the midstream sector totalling US$76.9 billion in Q3 2012. In comparison there were: • 66 new projects totalling US$39.5 billion in Q2 2012. • 80 new projects totalling US$167 billion in Q3 2011. • The US and Canada remain hotspots of activity in the midstream sector with 43 projects and a total potential investment value of US$56 billion between them. The most significant projects are the proposed US$15 billion Main Pass Energy Hub LNG Export Terminal in the US and the planned US$10 billion Prince Rupert LNG Export Terminal in Canada. Downstream • There have been 66 new projects in the downstream sector totalling US$59.8 billion in Q3 2012. In comparison there were: • 55 new projects totalling US$62.7 billion in Q2 2012. • 80 new projects totalling US$113 billion in Q3 2011. • Russia and the US represent 44% of the total potential investment value of projects announced this quarter in this sector, with 17 projects with a combined value of US$26.5 billion. The largest projects are the proposed US$9 billion Ust-Luga Refinery in Russia and the planned US$4.5 billion Lake Charles Ethane Cracker in the US. Renewables • There have been 159 new projects in the renewables sector totalling US$79.9 billion in Q3 2012. In comparison there were: • 125 new projects totalling US$57.1 billion in Q2 2012. • 175 new projects totalling US$110.5 billion in Q3 2011. • Continuing the trend from Q2 2012, there is a wide spread of many projects around the globe, but the US leads in both the number and total potential investment value of projects this quarter with 23 projects proposed, totalling US$16.6 billion. The largest single project in this sector is a planned US$6.5 billion onshore wind farm in Ireland, which will form part of a proposed ‘energy bridge’ to the UK. Power • There have been 110 new projects in the power sector totalling US$70 billion in Q3 2012. In comparison there were: • 111 new projects totalling US$87.2 billion in Q2 2012. • 114 new projects totalling US$97.3 billion in Q3 2011. • Key hotspots of activity this quarter were in the US and China, where 11 and 6 projects respectively were announced with a combined total potential investment value of US$11.9 billion. A key project this quarter is the proposed US$3 billion Fraena CCGT Power Plant and CCS project in Norway. www.the-eic.com

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November 2012


EIC Training Services

Training Services

Technical Workshop An Introduction to FPSOs 2 November 2012 ESD Simulation Training, EIC London An Introduction to FPSOs is intended to give a comprehensive overview of the nature and purpose of floating production, storage and off take systems (FPSOs). Delegates will learn how they are built, the versatility of the design and why they have become the main choice for a host floating production system.

Technical Workshop An Introduction to Subsea Systems 1 November 2012 ESD Simulation Training, EIC London This workshop is suitable for those without a technical background and will provide a better understanding of the subsea industry and its day-to-day terminology and phraseology. The scope covers all of the main sectors of the industry from reservoir formations through drilling and well structures, to subsea flowlines, risers and umbilicals. The complexities of the industry are explained in a clear, simple and concise manner while at the same time, not understating the technological challenges. These challenges are highlighted by the discussion on how the subsea infrastructure is put together and the extreme challenges of deep water applications.

Technical Workshop

MESE

An Introduction to Centrifugal Pumps 22 November 2012 SPP Pumps, Gloucester This workshop has been designed for the engineer who is new to centrifugal pump applications, or for individuals who are involved with centrifugal pumps but have received no formal training in this area. The training will allow the engineer to gain an appreciation of centrifugal pumps from the initial selection of the pump hydraulics, and mechanical design to the manufacturing and testing of the product. The hydraulic, mechanical design, package design will be presented in formal presentations, whilst appreciation of manufacture, assembly and testing will also be provided via a works tour that will guide attendees through the manufacturing and testing facilities. The workshop will provide participants with a general understanding of the inner workings of a centrifugal pump and the key engineering principles involved in the selection and design. It is intended to provide a broad based overview of the centrifugal pump selection process.

Technical Workshop

HSE Training

An Introduction to Energy from Waste 21 November 2012 MES Environmental Ltd, Stoke MESE operates and maintains 3EfW plants in the West Midlands, thermally treating approximately 400,000 tonnes of municipal waste each year. The workshop will include a mix of presentations and discussions and attendees will learn about control technology, abatement systems, pollution control, managing environmental impact, being green and making use of waste. There will be a full site tour of the Stoke plant, pictured above.

An Introduction to the ATEX Directives 94/9/EC and 1999/92/EC 7 November 2012 SGS Baseefa, Buxton The course consists of a number of modules which build upon each other so that following a section on the basic chemistry and physics of explosions it is clear how the various protection concepts work. The continuation of the course is concerned with how the protection concepts and the related installation rules fit with the two ATEX Directives and the IECEx international certification scheme.

Industry Overview

Industry Overview

The Fundamentals of Power 6 November 2012 E.ON, Ratcliffe-on-Soar Delegates will gain an appreciation of the fundamentals involved in the power generation industry and provide an appreciation of how modern day power plant works. The workshop will also include a site tour for attendees’ understanding of the process of plant layout and design involved in a fossil fired power station.

The Fundamentals of Oil and Gas 8 November 2012 EIC London The course takes the form of five modules to introduce the participants to the fundamentals within the oil and gas industry. The sessions follow the molecules through their journey from wellhead to a range of diverse applications. This will include the search for oil and gas, its extraction, processing, transportation and refining.

For further information on any of our courses, or if you are interested in receiving ‘in-house’ training please contact: ally.leboutillier@the-eic.com www.the-eic.com

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November 2012


EIC NORWAY

Energy Report 2012 Comprehensive, cutting edge information on the Norwegian energy industry. Over 180 pages and 80 tables and graphs provide detailed insight into the upstream offshore sector. Analysis of the 22nd licensing round and full development forecast identifying future market trends and project locations. Includes information on over 170 future and active projects, over 100 offshore oil and gas fields and every discovery in Norway. Includes unique A1 map of Norway’s offshore oil and gas licencing areas, key projects and energy

Targeted, critical analysis of key issues and current events including: • Contracting activity on the Norwegian Continental Shelf • Barents Sea, Norwegian Sea and North Sea forecast and analysis • 170 proposed and under construction projects worth an estimated $215 billion

infrastructure. Price: £950+VAT (non-Members: £1,350+VAT) electronic and hardcopy of the report and map

• Working with Statoil, their supply chain and operations Worldwide • Recent discoveries and future prospects • Norwegian rig market analysis and forecast to 2014

TO ORDER tel: +44 (0)20 7091 8612 email: phil.goddard@the-eic.com 77 www.the-eic.com or visit: www.eic-consult.com

• Oil & Gas, CCS, Renewables and Power

November 2012


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November 2012


New EIC Members pipe cutting and flange facing. Full engineering support is provided including detailed calculations specific to the work undertaken with clamps and enclosures being designed and manufactured in-house. TEAM Industrial Services is the largest leak repair business globally. Within the UK, TEAM is able to benefit from this experience and technical support from the US based parent company.

New EIC Members Upgrade to Global Member

Capital Valves Ltd Wembley Point Harrow Road Wembley Middlesex HA9 6DE Tel +44 (0)20 8900 0471 Fax +44 (0)20 8900 0808 Email reena.varsani@nov.com Web www.capitalvalves.com The Nominated Representative is Ms Reena Vekaria, Project Co-ordinator. Capital Valves Ltd is a stockist and distributor of gate, globe, check and ball valves for the oil and gas industry.

New Global Member

Turner & Townsend Plc Low Hall Caverley Lane Horsforth Leeds West Yorkshire LS18 4GH Tel +44 (0)113 258 4400 Fax +44 (0)113 258 2911 Email andy.aston@turntown.com Web www.turnerandtownsend.com The Nominated Representative is Mr Andy Aston, Regional Director, Natural Resources, Asia, based in Singapore. Turner & Townsend has been working in the oil and gas upstream, midstream and downstream sectors for over 30 years. They are a leading provider of programme management, project services, contract services and consultancy support, including benchmarking. They support projects throughout the full lifecycle from pre-development, through feasibility, concept selection and definition, FEED, project execution and decommissioning. Turner & Townsend’s comprehensive industry focus and knowledge gained from working with over 50 international and national oil companies can help you face today’s challenges and deliver projects more effectively.

New Global Member

Kvaerner 30 Eastbourne Terrace London W2 GLG Tel +44 (0)20 7087 4800 Email ged.roope@kvaerner.com Web www.kvaerner.com The Nominated Representative is Mr Ged Roope, SVP Strategy & Contracts. Kvaerner is a specialised provider of engineering, procurement and construction (EPC) services for offshore platforms and onshore plants. Kvaerner ASA, through its subsidiaries and affiliates (‘Kvaerner’), is an international contractor that plans and realises some of the world’s most demanding projects as a preferred partner for upstream and downstream oil and gas operators, industrial companies and other engineering and fabrication contractors. In 2011, the Kvaerner group had aggregated annual revenues of more than NOK13 billion and the company had an order backlog at 30 June 2012 of more than NOK23 billion. Kvaerner was publicly listed with the ticker ‘KVAER’ at the Oslo Stock Exchange on 8 July 2011.

Upgrade to Global Member

Zeeco Europe Ltd The Woolfox Building Great North Road Rutland LE15 7QT Tel +44 (0)1780 765 077 Fax +44 (0)1780 757 121 Email Nigel_Palfreeman@zeeco.com Web www.zeeco.com The Nominated Representative is Mr Nigel Palfreeman, Managing Director. Launched in 1979, Zeeco is the global leader in combustion solutions providing design, engineering and installation of industrial burners, incinerators, flare systems and flare gas recovery systems worldwide. Zeeco’s experience and design expertise in the refining, onshore/offshore production, well testing, petrochemical, gas processing and LNG industries means that they understand industry challenges. Their rugged, dependable flare product line includes elevated and multipoint smokeless flares, while the flare gas recovery systems help recover maintenance costs and reduce emissions. Zeeco’s philosophy of providing customers with superior quality, on-time shipments and competitive pricing remains the cornerstone of their success. Choose the market leader. Choose Zeeco.

New Global Member

TEAM Industrial Services Unit 12 Westside Business Park Estate Road No 2 South Humberside Industrial Estate Grimsby North East Lincolnshire DN31 2TG Tel +44 (0)1472 289 062 Fax +44 (0)1472 267 004 Email gary.smith@teaminc.com Web www.teamindustrialservices.co.uk The Nominated Representative is Mr Gary Smith, Country Manager. TEAM Industrial Services specialises in online leak repairs, hot taps, line stops, bolting, machining and pipe freezing. Leak repairs, hot taps, plant start-ups, outages and turnarounds are managed safely, effectively and cost efficiently using their experienced team of technicians to carry out leak sealing, hydraulic bolt tensioning and torquing along with on-site machining for

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November 2012


EIC Members News

Members News Members News Øyvind Hagen/Statoil

Troll A inaugurated its first power from shore solution in 2005, and the new system will be operational from 2014. Both systems are based on ABB’s compact HVDC Light concept, ideal for the efficient transmission of power over vast distances. The first order for this technology was for the Troll A platform. ABB is the main supplier to all five power-from-shore installations on the Norwegian Continental Shelf. The new contract with Statoil confirms the strong position within electrification of offshore installations. The video ‘An overview of the electrical systems market in OGP’ by Asmund Maland, can be viewed at: http://bit.ly/SM9qeQ

Bifold, official sponsors of the Marussia F1 team has linked safety with performance to introduce the new Bifold Group Valve World free app. With Bifold you can submit bespoke bids faster and with greater clarity, obtain immediate 3D images and offer your clients reduced lead times. Bifold has developed interactive 3D configuration software and manufacturing systems to create instantaneous custom designs including 3D CAD models, 2D drafts, part numbers and descriptions and BOMs. Deliver 316L stainless steel products within 1 week; produce scale 3D printed prototype models in 1 day; view scale 3D augmented reality in 1 minute. Visit Bifold at Valve World Expo, Dusseldorf, 27 – 29 November 2012, stand number 3/A72, Hall 03, where you will be able to explore a range of their products through various viewing platforms, including iPad, iPhone and Android devices. Available to take away from the show will be a postcard containing a tracking image which works alongside your app. Download the free Bifold Augmented Reality App and view CLean Manufacturing at Valve World. Available for download from their app landing page on: bifold.co.uk/ Apps/ValveWorld/ from mid November 2012.

Bifold

ABB has won an order from Statoil to install high voltage subsea cables to supply power to the Troll A gas platform, above, on the western coast of Norway. The ABB contract includes pre-studies, cable laying and installation of 350kms of high voltage AC and DC cables, as well as project management and related engineering services. The AC cable will supply power to the safety and automation systems, the DC cables will supply power to two new gas compressors. With this new contract, ABB’s orders in connection with the installation of the two new compressors on the Troll A platform amount to $360 million. When completed, the Troll A platform will be equipped with two HVDC Light installations from ABB, enabling the gas compressors on-board to be powered from shore. Over time, as the oil and gas is extracted, the subsea reservoir pressure drops and production decreases unless the pressure is maintained by gas compression. The installation of two new gas compressors will improve production capacity and extend the lifespan of the world’s largest offshore natural gas platform. The compressors on the platform must have a reliable, continuous power supply to maintain their operation. ABB’s energy and cost efficient electrical drive system makes it possible to power the compressors with clean hydropower from the mainland grid, resulting in easier, more flexible operations of the compressors, compared to traditional onboard power generation. “Reliable power from shore will contribute to safe and efficient operations of the gas compressors on the platform. Statoil has already had good experience with a similar system since 2005, and we appreciate being chosen as a supplier once again,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “With this contract ABB takes responsibility for the complete electrical drive system, since the customer wanted one supplier to handle project management, engineering, installation and civil works. The Troll A contracts demonstrate our ability to take on major oil and gas projects”.

Configure your own compact valve actuator manifold system and view as a 3D image. Eliminate tubing and fittings, minimal mounting requirements, smaller envelope size, less leakage and less maintenance = reduced cost. For more information please contact Gill Bancroft: Tel +44 (0)161 345 4777 Fax +44 (0)161 345 4780 Email gbancroft@bifold.co.uk Web www.bifold.co.uk

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com. Copy deadline is the first of the month for the following month – ie by 3 December for the January issue.

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November 2012


EIC Members News beyond the majority of current trenching requirements, trenching in difficult and highly variable soil conditions, and to trench depths greater than current industry norms. DeepOcean has established a project team in the area and will perform this work in collaboration with Canadian partners in St John’s Newfoundland. With a number of industry-leading marine trenching systems within its fleet, combined with 20 years of practical experience, DeepOcean believes the knowledge and experience within the company will be extremely beneficial towards the development of an Arctic trenching system. DeepOcean will also work closely with the world’s leading manufacturer of remote intervention equipment, SMD, who are responsible for the manufacture of the majority of DeepOcean’s subsea trenching systems, including its ploughs, tractors and Remotely Operated Vehicles (ROVs). Pierre Boyde, Commercial Director at DeepOcean UK said of this conceptual study: “DeepOcean is pleased to be taking part in the first phase of this JIP, and hopeful that its in-house expertise and significant track record will help the company become a continued partner throughout this R&D programme”. For more information please visit: www.deepoceangroup.com

DAI, the Aberdeen based provider of control and data management services to the energy sector, is pleased to announce the successful conclusion of the deployment phase of projects with Ithaca Energy on their Athena development. Combined project scope involved provision of satellite voice and data communications to Ithaca’s Athena FPSO, and the utilisation of this to integrate Athena based data into Ithaca’s expanded PI Historian environment. Working closely with Ithaca engineering and IT teams, DAI successfully completed system deployment, testing, and commissioning in Aberdeen, Dubai, and the North Sea, in time for first oil in Q2 2012. The systems have since proven to be robust and effective, with retrieved data being utilised for performance monitoring, production reporting, environmental reporting and more. With a long history of deploying control and information system projects to the offshore sector, and a formal integration partnership with OSISoft, manufacturer of the industry leading PI Historian platform, DAI was ideally placed to deliver this project for Ithaca Energy. Ithaca Energy Projects Manager, James Lund, commented: “DAI really made the effort to understand Ithaca’s requirement for the satellite link and PI Historian expansion. Not just technically, but in the context of the impact on our wider project and business. They then went the extra mile to deliver a first class system deployment, with matching support levels throughout. We are already seeing the business benefits of having full access to some excellent real time data from Athena as we progress from first oil”. DAI has now been contracted to provide long term support services for Ithaca’s PI infrastructure across all assets. Like the original deployment project, this service will be delivered directly by Aberdeen based engineering staff, to ensure continuity of domain expertise and the high level of local service provision that Ithaca has come to expect. Web: http://energy.dai.co.uk/page.php?p=170

Edgen Group Inc, through its subsidiary, Edgen Murray, the leading global supplier of speciality steel products and logistics solutions for the energy and infrastructure sectors, has expanded its presence in Europe with the opening of a new office and stock facility in Sandnes, Norway. Effective from 1 September, the Norwegian operation markets Edgen Murray’s strengths in speciality steel supply and project management for the Norwegian and North Sea offshore fabrication markets. Edgen Murray has over 30 years experience supplying high yield steels for use in the harsh conditions of the North Sea. Norway and the Norwegian continental shelf make up the 4th largest offshore upstream energy market in the world with US$67bn in forecast capital expenditure over the next 5 years according to EICDataStream. The Sandnes stock facility will complement existing stock ranges in Edinburgh and Rotterdam, and combined will provide a full range of structural products, including tubular, sections and plate, with the ability to meet 24 to 48 hour delivery times into the Norwegian market. Edgen Murray’s strong global mill relationships allow complete package fulfilment and lifecycle management for complex projects, all supported by well established management and quality systems. The new office will also support Norwegian Engineering Procurement and Construction (EPC) activity globally. Edgen Murray’s Norwegian sales and management group will provide customers with access to Edgen Murray’s global steel network, which includes strategically placed stocking facilities, international supply routes from Japanese, Korean, Chinese, Indian and European mills and project management offices located worldwide. For more information please visit: www.edgenmurray.com

DeepOcean is working to deliver a conceptual study for INTECSEA Canada with the support of SMD, as part of a programme to develop a trenching system for subsea pipelines, flowlines and umbilicals in ice scour environments. INTECSEA, on behalf of Petroleum Research Newfoundland & Labrador (PRNL), is managing a multiphased Joint Industry Project (JIP) to investigate and develop a proven, commercially-ready, pipeline trenching system for the burial of pipelines, flowlines and umbilicals in various soil and Arctic conditions to protect against the effects of ice scouring of the sea floor. DeepOcean will undertake a four month study for Phase I of the four-phase JIP, to define its proposed technology solution for Arctic trenching and establish how it will fulfil specified functional requirements. The trenching system must meet a number of stringent criteria including use in harsh marine conditions, operation in water depths www.the-eic.com

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November 2012


EIC Members News Alasdair Buchanan, Senergy’s Chief Operating Officer, said: “Due to the success and increased demand of services provided from our Edinburgh office we have been looking to expand operations in the city for some time. Senergy has successfully managed an ambitious growth programme in several key areas throughout this year and this is the latest part of our evolution. The company has already extended facilities and collaborations across the world – from joint-venture research projects with universities in Malaysia and the US, to opening a new Middle East facility in Dubai, while at the same time, bolstering our base with a new office in Aberdeen”. The sixth floor office also boasts a meeting room with views of Edinburgh Castle and a video conferencing room. Senergy is a global energy services company that applies its expertise and technology to develop and manage oil and gas fields and alternative energy projects in partnership with its clients. The company provides a suite of associated services and also develops and supports innovative software technologies for the oil and gas industry, including Interactive Petrophysics and Oilfield Data Manager. Senergy offers specialist technical training services within petrophysics, core analysis, geomechanics, reservoir seismic characterisation and geology disciplines. Established in 2005, Senergy currently employs more than 700 people worldwide across its Aberdeen headquarters and through a network of offices in the UK, Scandinavia, the Middle East, Australia, South East Asia and the Americas. For more information please visit: www.senergyworld.com

Rittal Limited’s innovative modular enclosures, power distribution and climate control systems are rapidly becoming the energy and power industry’s first choice for protecting critical equipment. Indoor and outdoor enclosures manufactured at RittalCSM in Plymouth allows Rittal to be flexible and responsive to meet customer demands. The focus on high quality and ingenuity helps optimise physical work spaces and minimise the damaging effects caused by tough operating conditions in offshore industry environments. Other areas of technical expertise are Motor Control Centres (MCC’s) based on the market leading TS 8 enclosure platform, complementing this is an extensive range of design and calculation software to aid users in the calculation of heat dissipation requirement, application and installation of enclosures and their accessories. For more information please visit: www.rittal.co.uk

Global leading energy services company Senergy is looking to more than double its Edinburgh workforce with the opening of a new city centre office. The company, which provides fully-integrated project and asset development services across the energy industry, has relocated its existing team of 16 staff based in Scotland’s capital to 102 West Port, close to the Grassmarket. Up to 40 employees can be housed in the building and Senergy anticipates creating at least 10 employment opportunities in Edinburgh over the next 24 months, creating a multi-disciplinary team of technical and support staff. Senergy has appointed 50 members of staff into new roles across the business over the past 12 months and expects to recruit around 100 new employees in the coming year. The move marks the latest phase of Senergy’s rapid global expansion. The company, which was recently ranked in the Sunday Times 2012 HSBC International Track 200 league table as well as that of its 2011 Virgin Fast Track 100 of Britain’s fastest-growing privately owned companies, also unveiled new offices in Aberdeen, Dubai and Bath earlier this year. The relocation will position Senergy closer to its growing client base in the capital and also provides access to a diverse and increasing number of technically skilled professionals. In total, the largely open plan office covers 4500 sq ft. A dedicated training room is included in the new office’s facilities as the company looks to increase the number of courses provided in the Central Belt. Senergy already offers specialist training services with an extensive training programme covering courses in petrophysics, core analysis, geomechanics (sand production and wellbore stability), reservoir seismic characterisation and geology. The training courses are delivered by Senergy specialists, many of whom are also SPE (Society of Petroleum Engineers) Distinguished Lecturers. www.the-eic.com

Sparrows, the world leader in offshore lifting and mechanical handling services, has entered into a first-of-its-kind global Master Services Agreement – Worldwide Operations Offshore with Transocean. The Aberdeen headquartered business has developed a strategic approach to the management and servicing of Transocean’s offshore cranes on all of its mobile offshore drilling units outside of Norway. The crane inspection contract commenced last month and covers condition evaluation of and potential remedial work for 432 deck cranes. Sparrows has developed a comprehensive crane condition evaluation service that meets Transocean’s global needs. Under the agreement, Sparrows will perform the planned 360 day annual crane condition evaluation on 121 of Transocean’s mobile offshore drilling units across six continents. Mark Beveridge, Sparrows’ drilling business unit leader said: “This is a major milestone agreement for us and for Transocean with whom we have been working for some time. Regular planned crane inspection is the only way to assess integrity and ensure the equipment is fit-for-purpose, safe, reliable and compliant. Thorough assessments eliminate potential failure which can lead to costly break-downs and down-time, or more importantly injury to personnel. Regular monitoring also helps when making major decisions about crane replacement, heavy lifts or modifications and upgrades”. 12

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EIC Members News

Sparrows

Ron Tucker, VerdErg Connectors Corporate Development Director said: “We are delighted with the ongoing support of Invest Wirral and are pleased to continue as a crucial part of this vibrant community”. VerdErg’s connection systems are assembled from components manufactured by a valued member of their supply chain. While forging of raw materials is sourced within the European Union, the specialised finishing operations such as machining, coating, cladding and certification testing are conducted by valued members of the British supply chain. The increase in the Assembly & Test Facility therefore also reflects significant job creation across British industry. At a time when economic woes in the country are calling for re-industrialisation, VerdErg is proud to be a British company at the vanguard of making this a reality. The production facility is currently engaged in assembly of new connection systems for new West of Shetland developments as well as new technologies for international clients within the Atlantic basin. VerdErg supplies high integrity connection systems that are regularly deployed in extreme environments. The combined precision resulting from state of the art techniques in design, manufacture and installation have earned VerdErg a reputation for delivering products that work correctly the first time. The new Assembly & Test Facility will also serve as a base of operations for training onsite support staff that integrate equipment into the subsea structures as well as support offshore installation across the globe. The competency and effectiveness of VerdErg’s personnel is a testament to the innovative spirit that continues to thrive within Britain’s subsea industry. For more information please visit: www.verderg.com

A Sparrows technician inspects the boom point sheave assembly of an offshore pedestal crane

Mr Beveridge added: “Working closely with Transocean, we designed a regime that provides a common global standard, delivered at a local level. The success of securing this agreement will inevitably pave the way for similar work with other drilling companies”. The contract will be managed globally from Aberdeen by the Sparrows drilling business unit who provide a focused delivery team to co-ordinate activities around the world, ensuring consistency and quality of service. The regional Sparrow’s teams then deal with each individual rig’s management at a local level. Established in 1973, Sparrows is one of the most well known and trusted names in the oil and gas industry, employing 1600 in 19 locations. Providing oilfield engineering services, Sparrows specialises in offshore lifting, crane engineering and services, mechanical handling, pipe and cable lay systems, fluid power engineering, equipment rentals and competence training. For more information please visit: www. sparrowsgroup.com

Voith Turbo GB Ltd, a UK subsidiary of Voith AG, is pleased to announce the successful registration of their key oil and gas portfolio of products with First Point Assessment (FPAL). The portfolio consists of variable speed drives in the power range of 1 to 50MW, parallel shaft gearboxes up to 85MW, epciyclic gearboxes up to 45MW and integral gears up to 50MW. In addition to the presence of these capital goods in oil and gas Voith also supplies a range of micro pumps and is the UK agent for the Bieri range of high pressure hydraulic components. James Grubham, Voith Turbo GB Variable Speed Product Manager commented: “Obtaining FPAL approval is all about raising our profile in the oil and gas industry with the added benefit of making it easier for our customers to do business with us”. Voith sets standards in the energy, oil and gas, paper, raw materials and transport and automotive markets. With more than 40,000 employees and locations in over 50 countries in the world, Voith is one of the largest family-owned companies in Europe. For more information please contact James Grubham, Variable Speed Drives Product Manager: Tel +44 (0)20 8667 3045 Email james.grubham@voith.com Web www.voith.com

5 September 2012 was a defining date in the diary of the British subsea industry. VerdErg Connectors Ltd hosted the grand opening of their new Assembly & Test Facility at Tebay Road, Bromborough. VerdErg’s new Assembly & Test Facility reflects a rejuvenation that VerdErg is leading in British industry. The facility represents a four-fold increase in their production capacity required to meet current demands for VerdErg’s diverless connection systems. A unique feature of VerdErg’s work process is that they source our forgings, machining, coating and cladding from an array of suppliers across mainland Europe and Great Britain. At each stage of the manufacturing process, VerdErg maintains 3 – 5 qualified suppliers. This allows throughput to expand rapidly to meet rising needs. The Assembly & Test Facility is strategically located in Bromborough, which provides access to a plentiful labour pool of qualified specialists. www.the-eic.com

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November 2012


EIC UK & Overseas Events

UK & Overseas Events October 2012 23 Sector-Based Forum: Gas Treatment, Processing & Storage The Thistle, Haydock 24 Management Course: Why do we need Contracts? EIC London 25 Corporate Entertainment: EIC National Dinner 2012 Royal Courts of Justice, London 25 HSE Training: Introduction to IGEM/TD/13 IGEM, EIC London 30 Technical Workshop: Introduction to Control Valves APIMEC, Rio de Janeiro November 2012 1 Technical Workshop: Introduction to Subsea Systems ESD Simulation Training, EIC London 2 Technical Workshop: Introduction to FPSOs ESD Simulation Training, EIC London 5 Business Presentation: Opportunities with KBR EIC Houston 6 Industry Overview: Fundamentals of Power E.ON UK, Nottingham 7 HSE Training: Introduction to ATEX Directives SGS Baseefa, Derbyshire 8 Industry Overview: Fundamentals of Oil and Gas EIC London 9 Corporate Entertainment: Middlesbrough v Sheffield Wednesday Middlesbrough Football Club 13 Industry Overview: Introduction to North American Petrochemicals EIC Houston 14 Business Presentation: Engineering Opportunities with Costain The Bridge, Wetherby 20 Sector-Based Forum: Carbon Capture & Storage EIC London 21 Technical Workshop: Introduction to Energy from Waste MES Environmental, Stoke 22 Business Presentation: Opportunities with Jacobs EIC London 22 Technical Workshop: Introduction to Centrifugal Pumps SPP Pumps, Gloucester 26-29 HSE Training: Managing Safely 3.1 (IOSH Accredited) EIC London December 2012 5 Technical Workshop: Introduction to Compressors 7 Technical Workshop: Introduction to Reservoir Engineering 11 HSE Training: Asbestos Awareness (IATP Approved) 11 Industry Outlook: Surety Provision in the Energy Industry 12 Business Presentation: Opportunities with Jacobs 13 Business Presentation: Opportunities with Talisman Energy 13 Management Course: Tendering for Success

Siemens, Duisburg ESD Simulation Training, EIC London EIC London EIC London Amwaj Rotana, Dubai Hilton Treetops, Aberdeen Rothera Group, EIC London

February 2013 21 Business Presentation: Opportunities with Petrofac Aberdeen 21 Corporate Entertainment: EIC Middle East Golf Tournament 2013 The Els Club, Dubai March 2013 7 Corporate Entertainment: Pembroke Supper 8 Corporate Entertainment: The Oil Barons Ball 23 Corporate Entertainment: London Wasps vs Saracens

Cleddau Bridge Hotel, Pembroke Dock Meydan Racecourse, Dubai Adams Park, Buckinghamshire

April 2013 25 Corporate Entertainment: Southern Region Executive’s Luncheon Royal Society of Chemistry, London For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com

www.the-eic.com

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November 2012


EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2012

Abu Dhabi 11 - 14 November ADIPEC 18 - 23 November Overseas Delegation to Malaysia 27 - 30 November Offshore South East Asia (OSEA) Singapore

Status Sold Out Sold Out Sold Out

2013 19 - 24 January Overseas Delegation to Libya Booking Now 2 - 7 February Overseas Delegation to Kurdistan Booking Now 17 - 22 February Overseas Delegation to Ghana Booking Now 20 - 22 February Australasian Oil & Gas (AOG) Perth Booking Now 11 - 13 March Middle East Oil & Gas Show (MEOS) Bahrain Booking Now 19 - 21 March CIPPE Beijing Booking Now 6 - 9 May Offshore Technology Conference (OTC) Houston Sold Out 5 - 7 June Oil & Gas Asia (OGA) Kuala Lumpur Booking Now 11 - 14 June Brasil Offshore Macaé Booking Now 25 - 28 June Moscow Int’l Oil & Gas Exhibition (MIOGE) Moscow Booking Now tbc July Overseas Delegation to Australia Register your Interest tbc Overseas Delegation to Indonesia Register your Interest

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

National Events

2012 27 - 28 November EIC Connect Oil & Gas Manchester

Status Book your Delegate place online

2013 22 - 23 May EIC Member Pavilion at All-Energy 2013 4 June EIC Connect Oil, Gas & Power 3 - 6 September EIC Member Group @ Offshore Europe 12 - 13 November EIC Connect Energy

Aberdeen Abu Dhabi Aberdeen Manchester

Booking Now Booking Now Sold Out Register your Interest

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

12th Moscow International Oil & Gas Exhibition (MIOGE) 25 – 28 June 2013 Booking Now Expocentre, Moscow Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com

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November 2012


EIC Overseas Exhibitions Rio Oil & Gas 2012 17 – 20 September 2012 Rio de Janeiro Event Report Rio Oil & Gas proved to be an excellent event for our members, not only for the 33 companies exhibiting, but all members active in the region, with many additional networking opportunities around the exhibition. The EIC hosted Whisky Tasting receptions in the UK Lounge, sponsored by the UKBR initiative, BP and BG; Rio Samba and Gas at the world famous Rio Scenarium; an Open House to showcase the facilities of our offices in the city and a local content training workshop given by ABS Group and sponsored by Roxtec. Petrobras held presentations about their procurement procedures and company registration and UKTI held a cocktail reception and a country briefing session with speakers from BG and BP amongst others. The opportunities in Brazil within the oil and gas sectors are vast. With commitment to the market there is no doubt that UK companies, with the notable integrity and quality of British products and services, can contribute towards the efficiency and costeffectiveness of Brazil’s oil and gas operations.

Overseas Exhibitions The EIC will again be managing the UK national pavilions at both of the below exhibitions. For more information please contact the overseas events team. UK Group at MEOS 11 – 13 March 2013 Bahrain Booking Now Bahrain’s proven oil reserves are around 125 million barrels and these reserves are located in the Awali field. The revamp of this field is on-going and planned to be completed in 2015. It also shares an offshore field called Abu Saafa with Saudi Arabia, which produces around 300,000bpd and Bahrain sells its 50% share from this field into international markets. Inaugurated in 1979, the MEOS exhibition is the most established showcase of oil and gas products and services in the Middle East, attracting NOCs, IOCs and major operating companies. Regular high profile international exhibitors include Baker Hughes, ExxonMobil, Halliburton, Schlumberger and Weatherford amongst others in addition to smaller specialist suppliers, distributors and numerous new entries to the Middle East market. MEOS is also privileged to receive the full support of all 6 GCC national oil companies: • Abu Dhabi National Oil Company (ADNOC) • Bahrain Petroleum Company (BAPCO) • Kuwait Petroleum Corporation (KPC) • Petroleum Development Oman (PDO) • Qatar Petroleum (QP) • Saudi Arabian Oil Company (Saudi Aramco) UK Group at CIPPE 19 – 21 March 2013 Beijing Booking Now Though the world sees signs of slowing down in the global economy, China continues to shine with a projected economic growth of 7.5% in 2012. Global gas demand is expected to rise by 2.7% a year. China’s gas demand is expected to double from 130 billion cubic metres in 2011 to 273 billion cubic metres in 2017. China is also speeding up its process in LNG receiving terminal projects. At CIPPE 2012 more than 1,500 exhibitors took part and in 2013 more than 50,000 professional visitors are expected to participate from 60 countries and regions around the world. There are 45 exhibitors belonging to the Top 500 Global Enterprises. With a magnificent exhibiting space of over 80,000 square metres, CIPPE Beijing has become one of the largest petroleum exhibitions in the world. Well known global enterprises such as Gazprom, Rosneft, GE, Baker Hughes, National Oil Varco, Schlumberger, Siemens, Cameron, ABB, Caterpillar, Cummins, FMC and Tyco will all take part in the exhibition.

“This show is growing in importance for all UK companies involved in the global supply chain”. Steve Gibbs, Group Public Relations Manager, Balmoral Group “The EIC has helped us to meet both new and existing clients in Brazil and were there to give full support and local knowledge at all times”. Simon Tattersall, Regional Technical Sales Manager, Koso Kent Ltd “The EIC Pavilion allowed us to bring our niche innovations to the rapidly growing market. This would not be possible for VerdErg without the EIC’s community support”. Ronald Tucker Jr, Corporate Development Director, VerdErg Connections Ltd The EIC is managing the UK National Pavilion at Brasil Offshore 2013 and Rio Oil & Gas 2014. Contact: Laura Tavernor, Overseas Events Manager Tel +44 (0)20 7091 8600 Email laura.tavernor@the-eic.com

To book please contact: Overseas Events Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com

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November 2012


EIC National Events

National Events Wednesday 28 November 2012 Morning: Conference Session 3: LNG Australia – Future Investments and Opportunities. Panellists currently included from:

Leading oil and gas companies presenting to the UK supply chain.

Afternoon: Conference Session 4: Ultra Deepwater – Understanding the Challenges. Unlocking some of the potential barriers involved to help accelerate the oil and gas supply chain’s capabilities into deeper waters. Panellists currently included from:

In addition to the main exhibition presentations, EIC Connect Oil & Gas 2012 will incorporate four exciting conference sessions on the industry’s fastest growing markets. Operators and contractors presenting will not only help to educate the UK supply chain for future requirements but encourage two way discussions on the challenges they face.

Only pre-registered delegates can secure their seat in the above sessions!

Conference programme announced

Tuesday 27 November 2012

So what’s happening in the main reception?

Morning: Opening Plenary Session hosted by Shell. Shell will outline the importance of forging JV’s with local companies and how SME’s can succeed in the international market place.

All of the below companies will be unveiling their global project plans and meeting suppliers on a One-2-One basis:

Conference Session 1: What’s left in the North Sea? Opportunities on mature discoveries and challenges for the supply chain. Panellists currently included from:

Delegate package includes: • Access to all presentations with copy.* • Exhibition showcasing 75 companies. • Light working lunch in the Networking Lounge. • Refreshments (tea, coffee, water) served throughout. • Opportunity to book at least one meeting with a speaker company (per delegate**). • Meetings available with UKTI Commercial Officers from international markets. • Stationery Pack with Event Brochure and Delegate List.

Afternoon: Conference Session 2: Unconventional Gases – An Energy Revolution. The facts, concerns, responses and the global opportunities for UK companies. Panellists included from:

*Exhibition Presentations are typically repeated 3 times each to allow delegates to choose who they wish to hear from. Conference Sessions will be open to pre-book in advance of the event. **One-2-One appointments will open in early November.

Book your place online at:

www.eic-connect.co.uk www.the-eic.com

17

November 2012


EIC UK News

News from our UK offices

Forthcoming Events Business Presentation: Operations, Maintenance and Engineering Opportunities with Costain 14 November 2012 The Bridge, Wetherby Full details to follow soon. Contact: jennifer.hole@the-eic.com

Northern Region Annual General Meeting 27 September 2012 The Northern Region recently held its AGM, at which elections were held for the Northern Region Committee. Firstly, congratulations to Matthew Camp, Mech-Tool Engineering Ltd who has been elected as the new Chairman following the retirement of Bob Bianchi (Boulting Group Ltd) as Chair. I would like to extend my thanks to Bob, who gave four years’ dedicated service as Chairman, in addition to his involvement on the Committee since the Northern Region office opened in 2005. Graham O’Hare, Roxtec Ltd, has stepped down as Vice Chairman after a four year term, so a big thank you to Graham for his continued support. Given the interest in the role of Vice Chair, the Committee has voted two candidates into this role; Dave Atkinson, AMEC Group Ltd and Gary Blackburn, Hill International. I would like to take this opportunity to thank those who remain on the Committee and extend a warm welcome to those who have just been elected. The Northern Region Committee is now as follows: Matthew Camp (Chair), Mech-Tool Engineering Ltd Dave Atkinson (Vice Chair), AMEC Group Ltd Gary Blackburn (Vice Chair), Hill International Marcus Saul, Aggreko International Power Projects Nicholas Marshall, Collett & Sons Ltd Andy Cooper, Cooper-Crouse Hinds Tony Conroy, Ellis Patents Ltd Michael Griffiths, Elster-Instromet Eamon Dillon, Hilti Corporation Paul Shaw, Hima-Sella Paul Harrison, Hydratight Martin Burnham, Independent Forgings & Alloys Chris Butterworth, Jacobs E&C Ltd Mussa Mahomed, Nylacast Ltd Ian Shenton, Pepperl+Fuchs (GB) Ltd Steve Cooper, PNS (UK) Ltd John Kayes, Roxtec Ltd Tony Crinion, Tata Steel International Roger Fisher, Tyco Valves & Controls Distribution (UK) Helen Doona, Manager, Northern Region

Sector-Based Forum: Carbon Capture & Storage 20 November 2012 EIC London Earlier this year Alstom, BOC and Drax formed a project company, Capture Power Limited to develop the White Rose CCS project. The aim is to construct a new supercritical coal-fired power plant, using oxy-fuel post-combustion CCS technology. Philip Beer, Director, Clean Energy Europe at Linde AG will speak at the forum about the White Rose project. He will provide an overview including a description of the process along with detailing the technical and other challenges faced by the development team, and how the project would fit into a future UK power market. There will also be a presentation given by a representative from the EIC Business Information department which will include project news, updates and developments in the sector. Contact: jennifer.hole@the-eic.com Business Presentation: Opportunities with Jacobs 22 November 2012 EIC London Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services to the energy industry, with 2011 revenues of over $10 billion. The organisation is currently working on global projects worth around $3bn – $97m in the UK alone – as well as some of the world’s largest contracts, including the Fort Hills Sturgeon Upgrader and the Suncor Oil Sands expansion, both in Canada. This is a fantastic opportunity to find out more about Jacobs’ activities around the world and how your organisation can do business with them. Contact: sarah.slater@the-eic.com

Calling Notice for Southern Region Committee Members Southern Region Committee Annual General Meeting 5 December 2012 EIC London

Would you like to:

If you wish to nominate yourself or a colleague for a place on the EIC Southern Region Committee, please contact Charlotte Hust for more information: charlotte.hust@the-eic.com

• Help shape the direction of the EIC? • Network with your peers? • Represent the views of EIC members? • Ensure the needs of EIC members are being met? • Raise your personal profile? • Discuss market trends and industry news with colleagues from the industry?

If you would like to attend the Southern Region AGM on 5 December, please contact Sarah Slater: sarah.slater@the-eic.com

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

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November 2012


EIC UK News Industry Outlook: Surety Provision in the Energy Industry 11 December 2012 EIC London Demand for surety provision in the energy industry is increasing as the sector faces a unique set of challenges with its contractual agreements and bond requirements. EIC members are invited to find out more about the role of surety bonds, identify the needs of their organisation, understand the potential obstacles they may face in securing these bonds and how to overcome them. This seminar will be run by Gallagher London, one of the largest risk management and insurance broking companies in the world. Further details will be released shortly. Contact: sarah.slater@the-eic.com

Business Presentation: Opportunities with SNC-Lavalin January 2013 EIC London SNC-Lavalin is one of the leading engineering and construction groups in the world, and a major player in the ownership of infrastructure and in the provision of operations and maintenance services. SNCLavalin companies provide engineering, procurement, construction, project management and project financing services to a variety of industry sectors, including agrifood, pharmaceuticals and biotechnology, hydrocarbons and chemicals, environment, heavy construction, mass transit, mining and metallurgy, power and water management. SNC-Lavalin will provide EIC members with an overview of their activities and current global projects, provide details of their supplier registration requirements and discuss the project focuses of their London office. Further details of this presentation will be available shortly. Contact: sarah.slater@the-eic.com

Business Presentation: Opportunities with Talisman 13 December 2012 Hilton Treetops, Aberdeen Talisman recently revealed that it is to sell a stake in almost half of its North Sea operation to Chinese energy firm Sinopec for $1.5bn (£968m). Sinopec will acquire a 49% equity interest in Talisman’s UK North Sea business. Talisman’s Aberdeen-based operation has around 2,500 staff and contractors, and involves 11 North Sea installations. Talisman President John Manzoni revealed: “This will provide additional resources and energy to the talented team”. Strategic Sourcing Manager Russell Dandie will present an overview of Talisman Energy: which will include current work and future opportunities; how to do business with the company (including how to pre-qualify as an approved vendor) and key contacts. Contact: les.brodie@the-eic.com

Business Presentation: Opportunities with Nuvia SITA NORM February 2013 Score Europe Ltd, Peterhead Contact: les.brodie@the-eic.com For more information on any of these events please contact: Charlotte Hust, Manager, Southern Region Contact: charlotte.hust@the-eic.com Helen Doona, Manager, Northern Region Contact: helen.doona@the-eic.com Lesley-Anne Brodie, Manager, Scotland Contact: les.brodie@the-eic.com

The EIC Conference Suite, 89 Albert Embankment, London SE1 7TP The EIC Conference Suite offers convenient riverside meeting rooms with excellent views for between 1 and 110 people. Made up of five rooms and an airy, spacious breakout area, the energy themed décor of the suite offers the perfect solution for members looking for somewhere to hold a conference, meeting or reception. Exclusive Member Offer: EIC members can use the Battersea or Blyth rooms once FREE OF CHARGE Contact: Tel +44 (0)20 7091 8600 Email conference@the-eic.com www.the-eic.com

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November 2012


MEED Kuwait Energy and Infrastructure Projects

www.the-eic.com

20

November 2012


EIC Middle East News

Middle East News

The Iraq Mega Projects Conference and Exhibition took place in Dubai which proved to be an excellent venue for all parties who hold Iraq high on their radars to get together over the three working days. For our part, we have the Kurdistan Overseas Delegation scheduled for February plus we are also working on a possible event in March which we hope will be of interest. Our Overseas Delegation to Egypt finally got under way and a report on that event will appear in next month’s edition. Finally, let’s take a look at the members who we have had the pleasure to meet either here in the office or else outside whilst out and about. Nicola Scirocco, Global Marketing Director for Prysmian Cables came by to introduce himself whilst Anthony Dingle from Oil & Gas Systems called in during his latest regional tour. It was also a pleasure to welcome Ian Mackay from Senscient who was making his inaugural visit to the region and Trevor Tomkins from Vantrunk took the opportunity to introduce their new Business Development Manager, David Armatage. Finally, John Emerton was able to learn more about our local activities here during a visit to his local Addleshaw Goddard offices in Dubai. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News November 2012 for the Middle East is dominated by two major events and that’s not including the Formula One race in Abu Dhabi! The week after the Formula One sees the 15th ADIPEC Exhibition and Conference. Once again, the EIC is hosting the UK National Pavilion where 49 companies will be exhibiting with us. What has traditionally been a bi-annual event has grown so much that it is now considered to be the ‘OTC of the Middle East’ and as a result, the organisers formally announced that like its big brother, it will become an annual event from next year, with a dedicated focus on the natural gas sector thus competing with Gastech that currently hops around the world to different locations under that particular banner. To kick off this year’s event, we will be holding an ‘icebreaker’ event which will enable the UK exhibitors to meet and mingle with their peers plus invited guests from the local oil and gas community. Just like the 2010 event, this will be sponsored by Wood Group PSN who deserve special thanks for their excellent support. From an EIC perspective, our own statistics of member companies moving to set up a presence in the Middle East (see last month’s News) suggests that the aforementioned shift from a biannual to an annual event might just prove to be an astute one. Only time will tell, but whatever the outcome, the EIC will be there once again putting together another UK Pavilion. Just two weeks after ADIPEC we have EIC Connect taking place in Manchester where one might consider that the Middle East could be considered to be slightly under represented. However, this will be fully compensated by the fact that we intend to hold our own dedicated event next June, again in Abu Dhabi just as we did last year. There can be no doubt that EIC Connect represents superb value for money considering the high degree of contacts that will be present under the same roof for the full two days. The Dubai office will be present so please take the opportunity to meet and catch up on all the current Middle East trends and activity levels which continue to remain at a very high level. Looking back at what’s been going on since last month’s News, a visit was made to the Saudi Arabia International Oil & Gas Exhibition (SAOGE) which was slightly disappointing compared to last year’s show but nevertheless provided a platform for many companies to showcase their latest product developments. An update was also provided on the forthcoming Saudi-British Energy Week. Scheduled for early December, this is a superb high profile opportunity to get alongside all the key stakeholders in the Saudi oil and gas sector. The programme is slowly coming together for the participating companies to meet and touch base with Saudi Aramco, SABIC, the EPC companies who work for them under the GES+ initiative plus an excellent cross section of the local oil and gas community. For more information, please click on the following link: http://www.the-eic.com/EICEvents/ handlers/GetNonEICEventDocument.ashx?id=45

Regional Comment Iraqi cabinet approves 3 licence awards Iraq’s cabinet has approved three oil and gas contracts awarded to foreign firms in the 4th round energy auction in May. The Iraqi cabinet has approved an initial gas exploration contract with Pakistan Petroleum for gas Block 8, another deal led by Russia’s Lukoil along with Inpex of Japan to develop oil Block 10 and a deal with Russia’s Bashneft to develop oil Block 12. Libya aims to increase oil output Oil production in Libya has risen from 300,000 barrels per day during the crisis that ousted the Gaddafi regime to 1.6 million bpd. The country is aiming to raise production to 1.8 million barrels per day in 2013, overtaking the output before last year’s war. Libya is expected to produce 3 million barrels per day by 2015. ACWA power consortium awarded solar contract A consortium consisting of ACWA Power, TSK Grupo and Aries Ingeniería y Sistemas has been awarded the $1 billion BOO contract for the Ouarzazate solar power plant. The Ouarzazate solar power plant is one of five 500MW concentrated solar power (CSP) plants that make up the larger 2,500MW Moroccan Solar Energy Project. PTA and PET plant planned in Sohar The Oman Oil Company is planning to construct a 1 million tonnes a year (t/y) PTA and PET complex in Sohar. The plant will use feedstock from Oman Refineries and Petrochemicals Industries Company’s (Orpic) refinery in Sohar. The Oman Oil Company is expected to set up a new company that will be responsible for developing the project.

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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November 2012


EIC Asia Pacific News

Asia Pacific News

Malaysia BP to sell Malaysian PTA interests to Reliance BP has agreed to sell all of its interests in purified terephthalic acid (PTA) production in Malaysia to Reliance Global Holdings Pte Ltd. The agreement concerns BP’s 100% equity in BP Chemicals (Malaysia) Sdn Bhd (BPCM), located at Kuantan. Reliance has agreed to purchase BP’s interest in BPCM for $230 million in cash and both parties anticipate completing the transaction in 2012. All current staff of BPCM are expected to transfer to the new owners under equivalent terms and conditions. BP’s acetic acid manufacturing and marketing business in Malaysia is unaffected by the sale.

Office News

For the first time, the offshore oil and gas exhibition, Offshore Korea 2012 is being organised by the Korean government (Ministry of Knowledge Economy, Ministry of Land, Transport and Maritime Affairs). The event is cosponsored by 4 of the largest shipbuilding companies in Korea (Hyundai, Samsung, Daewoo and STX). EIC Singapore is evaluating the event for potential participation to be led by the EIC overseas events team. Looking ahead and working under the umbrella of the EIC London training department, we are working to introduce a series of one and two day training workshops. Some of the topics covered will be: • Fundamentals of Oil & Gas. • An Introduction to Oil Refineries. • Fundamentals of Subsea. • Writing Technical Reports. • Bids and Tenders. For more information about training, upcoming events, or if you need any help or advice in the region, please contact the EIC Singapore office on Temasek Avenue: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

Malaysia UOP and Petronas in LNG technology collaboration UOP LLC will collaborate with Petronas on natural gas processing technology. The joint development programme is focused on technology to overcome challenges faced by producers of LNG, as both parties seek to monetise natural gas more economically by moving gas processing from onshore facilities to ships that will moor closer to offshore gas fields. The programme will centre on advanced carbon dioxide (CO2) absorption technology to improve the reliability of equipment used to remove contaminants from natural gas before it is liquefied, while also reducing the weight and footprint of the equipment onboard ships. Technical improvements developed to better meet LNG specifications may also be deployed in the next generation of onshore and offshore gas processing equipment.

Regional Comment Japan BG signs agreement with JBIC BG Group has signed an agreement with the Japan Bank for International Co-operation (JBIC), aimed at supporting the long-term supply of LNG to Japan and creating opportunities for Japanese companies to participate in energy projects around the world. BG Group will liaise with JBIC on the Group’s natural gas developments and JBIC will consider providing financial support for these projects. The relationship is expected to help ensure Japan receives stable supplies of natural gas in the form of LNG and create opportunities for Japanese companies to participate in BG Group projects.

Myanmar Total acquires 40% interest in offshore Block M-11 Total has signed an agreement with PTTEP for the acquisition of a 40% interest in the Production Sharing Contract covering the offshore Block M-11 in Martaban Basin. PTTEP will retain the operatorship. The block covers an area of 5,373km², with a water depth of 200 to 2,300 metres. The current exploration phase contemplates a well to be drilled by Q3 2013. This transaction will need to be approved by the Union of Myanmar Authorities. South Korea OCI to construct 100MW solar power plants OCI Co Ltd has signed a Memorandum of Understanding to invest in the solar power generation business in Seoul. By 2014, OCI will complete the construction of 100MW solar power plants on public building rooftops, which will be able to supply 116.8GWh of power for approximately 35,000 houses in Seoul on an annual basis. The cooperation is based on an understanding that energy independence requires the urban infrastructures to be kept in operation even during blackouts. It is also based on an understanding that the use of environmentfriendly energies will be the key to solving problems in the future.

Japan Toshiba and GE sign new MoU Toshiba Corp has signed a Memorandum of Understanding (MoU) with GE to explore sales opportunities collectively of a new combined cycle system that integrates GE’s advanced 7F 7-series gas turbines with Toshiba’s high efficiency steam turbines and generators. Toshiba and GE have co-operated in gas turbines since 1982, including collaboration of an advanced 50Hz combined cycle system integrating GE’s 9FB gas turbine sales in Japan and other key Asian markets. Both parties have agreed to explore project collaborations for sales of an advanced 60Hz combined cycle system integrating GE’s advanced 7F 7-series gas turbine.

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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November 2012


EIC China News

China News

China sets date for second shale gas tender After a delay of more than a year, the China Ministry of Land and Resources (MLR) announced on 10 September that the tender would be held on 25 October, comprising 20 blocks across eight regions and covering 20,002 square km. The tender marks the first time Beijing will allow foreign companies to partner with local entities to table a bid. Such ventures will still have majority Chinese ownership, however. In the meantime, the National Development and Reform Commission (NDRC), along with MLR have set the 2020 production target even though development has proceeded relatively slowly to date. The ambitious target of drawing up to 100 billion cubic metres per year of gas from shale reservoirs by 2020 could cost as much as US$95 billion. Gas developers would need to drill 20,000 wells to attain such a production target. A source said that in order to achieve China’s production goal, the country should still rely on China National Petroleum Corp (CNPC), China National Offshore Oil Corp (CNOOC) and Sinopec as they control 78% of the country’s shale gas reserves, with the rest being held by smaller outfits.

Office News The China International Offshore Technology Conference (CIOTC) will be held on 14 – 16 November in Beijing. EIC members are invited, free of charge, to visit the exhibition on 15 November. Please let us know if you are interested in attending this event. China’s 18th National Congress has been scheduled for 8 November 2012. The new leaders of the CPC Central Committee will be elected at this meeting. For more information and business support in China, please contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

Regional Comment CNOOC invites bids for another 26 offshore blocks CNOOC Ltd opened up 26 offshore blocks for joint development with foreign companies in late August. The tender includes 22 blocks in the deep waters of the South China Sea, one block in Bohai Bay and three in the East China Sea. The blocks cover 73,754 square km. This time around none of the blocks appear to be in disputed waters.

Framework agreement signed for PV projects Shanghai Chaori Solar Energy Science & Technology Company Limited has signed a co-operation framework agreement with Realpart Holding GMBH. According to the agreement, the two companies will join forces to build 266MW photovoltaic (PV) power station projects in emerging markets in Europe. The contract is valid until 31 December 2013. It includes construction of a 141MW plant in Romania, a 65MW plant in Ukraine, a 10MW plant in Poland and a 50MW plant in Croatia and Moldova.

CNOOC 981 drills deepwater wells CNOOC 981, China’s first self-developed deepwater rig has drilled three wells in the South China Sea since it started operation in May, said Li Jing, Deputy Manager of China National Offshore Oil Corp. Li made the remarks recently at the 2012 China Offshore Engineering Summit in Shanghai. According to him, the rig is now located in the Liwan block, operating with a water depth of 2,450 metres. Li also said the company would put several important equipment into service around 2015. The sixth generation semi-submersible CNOOC 981, which was developed by CNOOC, becomes China’s first selfdeveloped deep-water oil rig able to operate at a water depth of 3000 metres.

GE to supply 6FA technology for three power plants GE will supply five Frame 6FA gas turbine generators for three power plants in China’s Zhejiang Province that will help to meet the province’s power needs. Designed for high efficiency and low emissions, all three projects support the provincial government’s initiative to develop gas turbine cogeneration plants to replace less efficient coal-fired boilers in order to reduce environmental impact and increase energy efficiency in the region. GE will also provide two 6FA gas turbine generators to Harbin Electric Corporation, the main equipment contractor for a combined-cycle power plant in Jiangshan County owned by Datang International Power Generation Ltd. The plant will be a key energy supplier for the Jiangshan area. GE also will supply similar equipment for a facility in Quzhou city owned by Quzhou Puxing, a subsidiary of Wanxiang Group, which will supply power for the Quzhou Kecheng economic development zone. Each of these plants will produce up to 230MW of power with a thermal efficiency of 53.5% in combined-cycle operation and up to approximately 80% in cogeneration mode. A typical coal-fired plant of similar size operates at efficiency levels of around 30%. In addition, GE will provide one 6FA gas turbine generator for a power plant near Huzhou city owned by Amber Energy Co Ltd.

Construction of Zhanjiang refinery set for Q1 2013 The Mayor of Zhanjiang, Ruan Risheng has said construction of Kuwait’s US$9 billion refinery and petrochemical complex in the southern Chinese city will begin in the first quarter of next year. Ruan made the remarks in a statement to Kuwait News Agency (KUNA) after the visit to Zhanjiang by Kuwaiti Consul General in Guangzhou Abdulwahab Al-Sager. The National Development and Reform Commission (NDRC), China’s top economic planner, granted final approval in March for Kuwait to build a long-awaited refinery and petrochemical complex on Donghai Island, Zhanjiang in Guangdong Province. The joint venture between Kuwait Petroleum Corporation (KPC) and Sinopec entails a 15 million-ton-a year (300,000 barrels per day) refinery, a 1 million-tona-year ethylene plant and related utilities, as well as support facilities.

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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November 2012


EIC North and Central America News

North and Central America News Office News

Regional Comment

The Houston office held its 3rd Annual Sporting Clays Tournament at American Shooting Center on 5 October. We had 7 teams and several individuals who joined us for lunch. For the third year in a row OilCareers won first place and took home the prize. We’d like to thank our sponsors OilCareers and Esigns for their generous donations as well as our teams and individual participants. We look forward to you joining us next year. Mark your calendars for the first friday in October.

Alaska pipeline back in the news In October, TransCanada and the North Slope’s three major producers (BP, ConocoPhillips, and ExxonMobil) announced that they may pursue a single pipeline by merging their two separate projects. The project is in a very early stage, with no designated location for the LNG terminal, and requires significant work yet in the environmental, regulatory, engineering and commercial aspects before a decision is made by the participants. If it does go forward, the 800 mile, large-diameter pipeline project would cost in the range of $45 – 65 billion, and could take a decade to build. Offshore drilling to increase in Gulf of Mexico Both presidential candidates are pursuing policies that will increase offshore drilling in the Gulf of Mexico and offshore Alaska, and maybe on the East Coast as well. A proposed sale of leases in the central Gulf, which could contain up to 1 billion barrels of oil and natural gas, could take place in March of next year. The 7,250 leases span 38 million acres and are in waters more than 11,000 feet deep. This would be the third lease sale since Macondo. It’s been more than a couple of years since the Macondo spill, but the Gulf of Mexico oil and gas industry is beginning to slowly but steadily bounce back. Already this year, the Bureau of Safety and Environmental Enforcement has issued 105 deepwater permits, comparable to BOEMRE’s permitting before the post-Macondo moratorium. A recent report was put out by consulting firm Wood Mackenzie suggesting that Gulf production could surpass its pre-Deepwater Horizon levels of 2MMboe per day by 2019. Even with increased government regulation and a longer permitting process, operators still want to invest in the Gulf because of its good infrastructure and relatively risk-free environment.

OilCareers team members from left to right: Matthew Goldsby, Joe Jones, Jerica Zonneville, Steve Anyan and Bunker Hill

We are exploring ways to enhance our networking, events and training programmes. We are actively seeking input from our members. Please share your thoughts, impressions and suggestions with us. We look forward to receiving your input.

Forthcoming Events Business Presentation: Opportunities with KBR 5 November 2012 EIC Houston Chris Barton, Senior Vice President – Oil & Gas Business Development will be presenting at this Lunch & Learn. Industry Overview: Introduction to the North American Downstream and Petrochemical Industry 13 November 2012 EIC Houston This one day fundamentals programme will provide participants with an insight into terminology, business drivers, equipment, technologies and the future industry outlook and challenges. It is especially designed for professionals planning to do business with the downstream and petrochemical industry.

Technip awarded Dalmatian contract In the Gulf, Murphy E&P has awarded Technip a lump sum contract for the development of the Dalmatian field, in the DeSoto Canyon, at a water depth ranging from 530 to 1,800 metres. The project is a subsea tieback, linked to Chevron’s Petronius platform. Technip’s contract covers project management, engineering, fabrication, and installation of a gas riser, an oil riser, a 38km (24 mile) flowline and a 34km (21 mile) pipe-in-pine flowline with associated PLETs and jumpers, and installation of umbilicals, and pre-commissioning.

For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact us. Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

Shale gas still the big energy story The US Geological Survey has estimated that the Utica Shale in Ohio and Pennsylvania holds about 38 trillion cubic feet of recoverable natural gas, 940 million barrels of oil, and 9 million barrels of NGLs like ethane and propane. The Utica lies beneath the Marcellus Shale, which has been a big fracking target in recent years.

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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November 2012


EIC South America News

South America News Office News Petrobras CEO speaks at Economist forum Maria das Graças Foster, appointed as Petrobras’ Chief Executive Officer earlier this year, joined a forum organised by The Economist in São Paulo titled ‘Ideas Economy: Brazil – The Next Level of Competition’. Foster participated in the ‘View from the Top: New Lessons in Leadership’ panel, where she spoke of production figures and local content, among other subjects related to the Brazilian oil and gas market. According to the CEO, production will be increased with the startup of 5 production units (P-55, P-58, P-61, P-62 and P-63) over the next 16 months, adding an additional capacity of 750,000 barrels per day. The executive added that Petrobras has all the drilling rigs it needs for exploration work up to 2020. On local content, Foster said that Petrobras has been able to satisfy current requirements, which are seen by the company as flexible and convenient. Petrobras produces an average of 2 million barrels per day and has pledged to invest $236.5 billion in 2012-16 as part of its most recent business plan.

Rio Oil & Gas 2012, organised in Rio in September, was another success with 55,000 attendees and 1,300 exhibitors. For all of those who had the chance to attend, it gave a clear picture of the booming Brazilian oil and gas market with all of its challenges and opportunities. Events organised by the EIC included: • Sponsored by UKTI, the UK Pavilion Whisky Tasting was held twice, gathered around 300 people and presented a great opportunity for networking with key people from the industry. • 17 companies looking more seriously into doing business in the Brazilian market had the chance to learn about local content in the Workshop with ABS, sponsored by Roxtec. • After a very busy week, the Rio Samba & Gas event held at Rio Scenarium was a very enjoyable way to network with around 80 EIC members and guests. • A small group visited the Rio office on the last day of the week to listen to specialists about getting going in Rio. We also welcomed the visit of Ian Stokes, the EIC’s CEO, who had the opportunity to attend a meeting of the South American Committee to exchange thoughts and plans for the future in the region.

Brazilian bidding round confirmed During the week of Rio Oil & Gas in September, the Ministry of Mines and Energy announced that the country’s 11th bidding round, the first since 2008, will take place in May 2013. The round will offer 174 blocks, half of which are onshore. Offshore blocks on offer will be located in a frontier exploration area named the ‘equatorial margin’, extending from the mouth of the Amazon to the coast of Rio Grande do Norte. Although preparations for the tender were complete since last year, the round was pending final approval from President Rousseff. The government also announced that a bidding round for exploration blocks in the pre-salt area, located in the Santos and Campos Basins, is tentatively scheduled for November next year. It is understood that laws regulating the distribution of royalties between Brazilian states are still needed before pre-salt blocks can be negotiated.

Forthcoming Events Technical Workshop: An Introduction to Control Valves with Koso Kent Introl 30 October 2012 APIMEC, Rio de Janeiro Management Course: The Professional Presenter January 2013 date tbc EIC Rio On 13 December we will be holding a Business Presentation together with a Member’s Introduction, where members have the chance to share with the audience their activities in the region. More details soon. Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Petroecuador to boost production The state-run company has pledged to increase its output by 7.5% next year, from the current 165,534 barrels of oil equivalent per day to 178,000boepd. In a bid to increase production, the company is expected to mobilise 20 new drilling rigs to carry out exploration work at the Pitalala, Boa, Anura and AED prospects, which are estimated to contain approximately 31 million barrels of oil. Petroecuador is responsible for a third of Ecuador’s production, which currently stands at 513,682boepd. Petroamazonas, also owned by the state, produces another third of the country’s total output. The companies are expected to merge, with Petroamazonas eventually assuming an E&P role while Petroecuador will handle transportation and other commercial aspects.

Regional Comment Colombian bidding round attracts 53 groups A bidding round for exploration blocks in Colombia, dubbed ‘Ronda Colombia 2012’, has qualified 53 groups of operators. Selected companies include Anadarko, Chevron, ConocoPhillips, ExxonMobil, Petrobras, Shell and Statoil, among others. The round is offering 115 blocks, 102 of which are located onshore. Blocks containing unconventional resource potential are also on offer. Awards are expected in late November and contract signing will take place the following month. The bidding round is organised by ANH, the Colombian oil and gas regulator.

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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www.the-eic.com

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www.the-eic.com

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If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (China) Room 2503, Tower B, R&F Twins Tower, No 55, Dong San Huan Zhonglu, Chaoyang District, Beijing, China 100022 Tel +86 10 5876 5705 Email beijing@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

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