EIC Monthly News November 2013

EIC Monthly News November 2013

Copyright 2013 iStockphoto LP

www.the-eic.com

The EIC Chief Executive

The Chief Executive Welcome to the November edition of the Monthly News. Firstly, I would like to congratulate Lloyd’s Register, the worthy winners of the first EIC Award for Supply Chain Excellence for its Blow-Out Preventer (BOP) Risk Model Programme.

The EIC’s Honorary President Lord Howell presented the award at the EIC National Dinner on 10 October, which I’m sure many of you will agree, proved to be a wonderful occasion set in the Central Hall at the Natural History Museum.

Contents The Chief Executive

2

Sector Analysis

3

EIC Monitor

4

Training Services

6

New EIC Members

8

Member News

10

Events Diary

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The National Dinner followed the EIC’s inaugural Annual Conference, which this year addressed the potential of shale in the UK. The EIC secured an impressive speaker line-up including Dan Byles MP, Chair of the APPG on Unconventional Oil & Gas, and representatives from Hess Corporation and Schlumberger who shared their global shale experience with delegates.

Overseas Exhibitions

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EIC LaunchPad

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UK News

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Taking into account the estimated potential reserves, UK shale could be a game changer for the UK energy industry. It was clear from the event that the UK Government, operators and the supply chain need to work hard to ensure early success, which could attract significant investment and make the UK a European model for shale gas development.

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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Indeed, the UK’s energy sector is looking very optimistic at the moment as the Government starts to tackle the massive challenge that is the forecasted supply-crunch mid-decade. From onshore shale exploration to the North Sea oil and gas industry; and from nuclear new build to large offshore wind farms, the opportunities for EIC members in the home market are growing by the day.

Middle East News

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Last month EDF and the Government finally struck a deal to build the first plant of the UK’s proposed ‘nuclear renaissance’, Hinkley Point C in Somerset. The investment contract signed by the two parties will act as a Contract for Difference to provide a guaranteed electricity price, and paves the way for a number of proposed nuclear plants to be built in the UK.

EIC Connect Energy 2013 18

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All three nuclear operators with plans to build new plants in the UK – EDF, Horizon and NuGen – along with AREVA, will be speaking at EIC Connect Energy at Manchester Central on 12-13 November to outline their plans to delegates and provide their supply chain requirements. Also speaking at the event is Maria McCaffery of RenewableUK, who will outline timescales and opportunities as the UK’s offshore wind industry enters a new era.

We are beginning to see developers finalise and submit their plans for Round 3 offshore wind farms, and with this new tranche that requires significant offshore expertise, now is the time for the supply chain to commit to build UK capability to grow our market share. If you would like to book your place at the event, please visit: www.eic-connect.co.uk Maximising recovery of oil and gas resources from the North Sea also remains high on the agenda, as we await the outcome of the Government’s report led by Sir Ian Wood. According to EICDataStream, there are currently 136 projects proposed or under development on the UKCS worth an estimated US$87.8 billion, but as a mature basin, the North Sea industry faces unprecedented challenges. The review was set up to consider Government stewardship and whether the current regime is as effective as it needs to be to improve recovery, and I am hopeful that it will provide even more optimism for the industry and our members.

Clearly there is plenty of opportunity out there for suppliers to the energy industry, and I encourage members to make full use of the products and services offered by the EIC to gain a competitive edge. Through access to global project information and through the many platforms we provide for suppliers to connect with buyers, the EIC is dedicated to supporting members’ success, both here in the UK and across the globe.

Finally, the latest edition of the EIC Monitor report has been released, and shows quarter on quarter growth yet again for the overall energy industry – more good news! Please visit pg.4. to read the full report.

Claire Miller, Chief Executive www.the-eic.com

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November 2013

EIC Sector Analysis

Sector Analysis Time to put our foot on the gas for shale extraction The shale gas industry in the UK offers potentially significant opportunities for those people, companies and communities wanting to get involved. Shale gas exploration is in its infancy in the UK, however it is worth pointing out that onshore exploration is nothing new in the oil and gas industry in the UK. The industry has been in existence for 150 years and has seen over 2,000 wells drilled around the country and currently see’s production of 20,000 boe/d at 120 sites.

Often referred to as an unconventional resource, shale gas production will still produce the same hydrocarbon as that held in a conventional resource, natural gas. The difference is the source rock in which the natural gas is stored. Conventional natural gas is found in porous sandstones and limestones and flows more often or not without intervention. Unconventional natural gas can be found in coal beds and shale rocks, the properties of which differ greatly with limited porosity and permeability which makes the gas difficult to extract, hence why hydraulic fracturing is undertaken which cracks the ground allowing the flow of natural gas through the rock under pressure from fluids.

Although the industry is still talking about the potential recoverable resources rather than proved reserves, initial estimates are very exciting with recent figures released

by DECC and BGS stating that the Bowland Basin has GIIP of 37.6 trillion cubic metres (Tcm) of gas, which equates to around 1.8-13 Tcm based on US recovery factors of between and 8-20%. This compares very favourably with the potentially recoverable conventional gas resources of the UK which stand at 1.46 Tcm. It is only when more exploratory wells have been drilled and production testing has started will we get a better understanding of the actual reserves held in shale rocks in the UK, and how this resource can be safely, technically and economically extracted.

While the UK remains in the very early exploration stages with only a handful of wells drilled, the sector is being seen as a potential game changer to the UK energy market with Chancellor George Osborne believing that successful exploitation of the resource could lead to cheaper gas and electricity prices for the consumer while also contributing to the UK’s energy security.

We have also heard recently how communities should benefit from any drilling of wells with funds of £100,000 for every well fractured. Based on some very rough estimates put together by Martin Blandford www.the-eic.com

of Finding Petroleum, each well drilled could produce approximately 5 billion cubic feet (Bcf) of gas and for every Tcf of gas at least 200 wells will need to be drilled.

Based on these assumptions and reserves of 1.8 Tcm, which equates to 63 Tcf, around 12,600 wells will need to be drilled in the Bowland Basin alone. This not only flags up that numerous rigs will need to be constructed and in operation at any one time, but also the communities impacted would get in the order of £1.26 billion in funds during the duration of the drilling of wells or an average of £31.5 million per annum based on drilling over a 40 year period. Add to this the 1% revenue that communities will be entitled to, which equates to £1.42 billion, the communities effected by drilling could be entitled to around £2.7 billion.

What these numbers show is that a significant drilling campaign will need to be undertaken to extract the resource. This would require significant investment in new build rigs which in turn will provide service providers with a potentially substantial market.

Also the establishment of an industry could see a growth in job opportunities – again a big positive for the UK. For example, The Institute of Directors in a report produced in May 2013 presented a scenario where UK shale gas production could attract investment of US$3.7 billion per year would support up to 74,000 jobs including many in manufacturing.

These factors should make the industry more acceptable publicly, however, public knowledge and perception of shale gas has seen more negative news making the headlines than positive news. The shale gas industry needs to ensure that it engages with the community and is open and transparent for the industry to really take off. While negativity surrounds the shale gas industry it will be difficult to see it becoming a major contributor to energy supplies in the immediate future.

However, the UK shale gas industry is likely to play an important role in helping the UK meet its energy needs medium to long term. It is time for the industry to provide some good news and talk about the opportunities that will be available to the UK supply chain and provide the public with the knowledge that this industry really can be of benefit to local communities.

Neil Golding Head of Oil & Gas Tel +44 (0)20 7091 8613 Email neil.golding@the-eic.com 3

November 2013

EIC Monitor

EIC Monitor

Claire Miller, EIC Chief Executive, commented: “Overall, figures this quarter indicate that the energy industry is performing well with a significant 33% rise in the number of new projects compared to the second quarter of 2013, along with a smaller increase in investment.

The downstream sector has fared particularly well as the shale gas boom continues to fuel a raft of petrochemical projects, and the power sector has benefitted from plans for a major US$50 billion nuclear plant in South Africa.”

The latest EIC Monitor report shows steady growth in both volume of projects and investment across the global energy project landscape in Q3 2013, with overall figures showing a significant rise in project numbers since the last quarter. The number of new projects announced during the last quarter (Q3: July-September 2013) across the global energy supply chain has thrived, increasing to 521 projects, a significant 33% increase compared to Q2 2013, and on parity with Q3 2012, while the total potential investment value of US$406 billion is up 13% on last quarter.

Summary of Q3 2013 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 2013 and the previous four quarters.

tracks nearly 10,000 projects proposed or under development in the global energy industry and provides a 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 (both active and proposed) projects recorded by the EIC each quarter.

Key highlights of Q3 2013 report 1 July-30 September • Overall this quarter, there were 521 new projects announced across the global energy supply chain with an estimated total value of US$406 billion, compared to 391 in Q2 2013 totalling US$360 billion and 522 new projects in Q3 2012 worth US$360 billion.

• The upstream sector has seen an increase of 5% in the total number of new projects this quarter, rising to 67 projects from 64 projects last quarter, with a 49% decrease in the total potential investment value of new project announcements since Q2 2013.

• In the midstream sector there has been a 54% decrease in the total potential investment value of new projects in Q3 2013, dropping to US$44 billion from US$94 billion in Q2 2013 with a 11% decrease in the number of new projects.

• In the downstream sector, the number of new projects has increased by 88% since Q2 2013, and the total potential investment value has increased 23% from US$105.5 billion in Q2 2013 to US$130 billion in Q3 2013.

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.

• The renewables sector has seen a 28% increase in the total number of new projects this quarter, rising to 148 projects from 116 projects last quarter, with a 4.5% increase in the total potential investment value of new project announcements since Q2 2013.

• In the power sector, the number of new projects has increased by 60% in the last quarter, and there has been more than three-fold growth in the total potential investment value in Q3 2013 to US$133.4 billion.

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energizing your business 4

November 2013

EIC Monitor

Analysis by Sector Upstream • There have been 67 new projects in the upstream sector totalling US$26.5 billion in Q3 2013. In comparison there were: • 64 new projects totalling US$52.1 billion in Q2 2013.

• 86 new projects totalling US$46.5 billion in Q3 2012.

• The hotspots of activity this quarter were Canada, Brazil and Algeria, together accounting for half of the total potential investment value in this sector. In Canada, there were six projects worth a total potential investment of US$8.7 billion, of which five projects were Steam Assisted Gravity Drainage (SAGD) projects. The largest project this quarter is the proposed US$5 billion Thickwood SAGD Oil Sands Expansion project, 78km west of Fort McMurray in Alberta.

Midstream • There have been 62 new projects in the midstream sector totalling US$44 billion in Q3 2013. In comparison there were: • 70 new projects totalling US$94.4 billion in Q2 2013.

• 90 new projects totalling US$87.7 billion in Q3 2012.

• The USA and Canada remain hotspots of activity in the midstream sector, joined by Australia where the new floating LNG development plan for the US$15 billion Browse project has been proposed by Woodside and its partners.

Downstream • There have been 128 new projects in the downstream sector totalling US$130 billion in Q3 2013. In comparison there were: • 68 new projects totalling US$105.5 billion in Q2 2013.

• 70 new projects totalling US$73 billion in Q3 2012.

• The hotspots of activity this quarter were Canada, Russia and the USA, together accounting for over 50% of the total potential investment value in this sector. The highest value project this quarter is the proposed US$25 billion Kitimat Oil Refinery project, from which operator Kitimat Clean plans to process 400,000 – 500,000 bbl/d of heavy crude from Alberta’s oil sands for export to markets in the Asia Pacific region.

Renewables • There have been 148 new projects in the renewables sector totalling US$69.3 billion in Q3 2013. In comparison there were: • 116 new projects totalling US$66.3 billion in Q2 2013.

• 156 new projects totalling US$77.5 billion in Q3 2012.

• The hotspots of activity this quarter were UK, Germany and USA, where a total of 85 projects were announced with a combined total potential investment value of US$38.7 billion. The European offshore wind sector fared particularly well this quarter with two projects proposed in the UK’s Dogger Bank Round 3 Zone, worth a total potential investment value of US$12.3 billion, and three offshore wind projects proposed off the coast of Germany, worth a total potential investment of US$8 billion.

Power • There have been 109 new projects in the power sector totalling US$133.4 billion in Q3 2013. In comparison there were: • 68 new projects totalling US$38.7 billion in Q2 2013.

• 109 new projects totalling US$69.2 billion in Q3 2012.

• India, Pakistan and England were hotspots of activity this quarter, where a total of 18 projects were announced with a combined total potential investment value of US$21.6 billion. The largest project this quarter is the proposed US$50 billion Thyspunt Nuclear power plant in Eastern Cape, South Africa. www.the-eic.com

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November 2013

EIC Training Services

Training Services Industry Overview

Industry Overview

Fundamentals of LNG 5 November 2013 eMJay LNG, EIC Aberdeen The course provides an understanding of the scope and size of the LNG industry, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project and the opportunities and constraints on future developments in the LNG industry.

Fundamentals of Power 7 November 2013 E.ON UK, Nottingham 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. It will provide a definition of terms used in the industry and discuss the energy conversion process as well as the systems found in power stations.

Industry Overview

E.ON UK

Fundamentals of Subsea 25 November 2013 Denmore Technologies Ltd, EIC London This one day course will provide a basic understanding of subsea oil and gas production. It is suitable for non-technicals in the energy industry as well as those transferring to the subsea sector. Those from operating companies or supplier and service organisations may also find this course beneficial.

Technical Workshop

Introduction to Centrifugal Pump Design 14 November 2013 SPP Pumps, Gloucester The workshop will allow the engineer to gain an appreciation of centrifugal pumps from selection of the pump hydraulics and mechanical design, to the manufacturing and testing of the product and will be presented in sections: pump basics hydraulic design, mechanical design and pump seals.

Technical Workshop New Introduction to Internal Corrosion Management Solutions 14 November 2013 Belzona, EIC London This workshop has been designed to provide an overview of the latest developments in process vessel internal erosion and corrosion management solutions and application techniques utilising organic lining technologies.

Technical Workshop

Technical Workshop

HSE Training

Management Course New Key Account Management 29 November 2013 Change Creation, EIC London This course is suitable for national/key account managers, or those who aspire to a key account manager role in the near future. The course is designed to arm sales functions with the necessary knowledge, skills and behaviour to operate more effectively in order to maximise sales and profit in a competitive market.

Introduction to FPSOs 26 November 2013 Denmore Technologies Ltd, EIC London The course will give introductions to offshore oil and gas production and floating production facilities. It will also cover the offshore environment, the subsea system and the FPSO as a seagoing vessel. Design considerations for mooring systems and risers will be discussed along with integrity management.

Introduction to Compressors 27 November 2013 Siemens, Duisburg, Germany This workshop has been designed for individuals who are new or are requiring awareness of compressors in the field of engineering, operations and maintenance fundamentals. The workshop provides attendees with a general understanding of the inner workings of compressors and basics of compressor drives.

Introduction to the Pressure Equipment Directive 97/23/EC and the UK Pressure Systems Safety Regulations 2000 12 November 2013 Nuvia and RSA Engineering, EIC London The Pressure Equipment Directive focuses on an introduction to European New Approach Directives and the Pressure Systems Safety Regulations focus on an appreciation of the Pressure Systems Safety Regulations.

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

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November 2013

New EIC Members

www.the-eic.com

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November 2013

New EIC Members

New EIC Members New Primary Member

New Global Member

Beacon Innovation Centre Camelot Road Beacon Park Great Yarmouth Norfolk NR31 7RA Tel +44 (0)1493 666 266 Fax +44 (0)1493 656 389 Email jodene.barron@3sun.co.uk Web www.3sungroup.co.uk

Online House 266 Auchmill Road Aberdeen AB21 9NB Tel +44 (0)1224 714 714 Fax +44 (0)1224 710 101 Email CG@online-electronics.com Web www.online-electronics.com

Online Electronics Ltd

3sun Ltd

The Nominated Representative is Ms Jodene BarronAlcock, Strategic Assistant. 3sun Group specialises in delivering a comprehensive range of products and services to the worldwide energy sector. 3sun Group comprises: 3sun, a control and instrumentation service and product supplier which specialises in hydraulic safety shutdown systems; 3sun Inspection Services, a provider of onsite testing and inspection services for oil and gas and renewable assets; Dawson Energy, a supplier of skilled technicians for the installation and servicing of wind turbines on and offshore; 3sun Academy, a specialist provider of technical and vocational training across the UK and Europe.

The Nominated Representative is Ms Claire Gribble, Marketing Manager. Online Electronics Ltd (OEL) is the parent company of an international group of business units engaged in the pipeline sector of the global energy industry. OEL designs, manufactures and distributes a cutting edge range of products and systems employed during pipeline pig monitoring, pipeline data communication and logging operations. OEL combines acoustic, electromagnetic, magnetic and ultrasound technologies to produce innovative and flexible solutions.

The range of services enables locating and monitoring, signalling, pressure/temperature data logging, through pipe wall communications, gauge plate condition monitoring systems, subsea voltage detection, subsea leak detection and bespoke design projects.

New Global Member

New Global Member

Blue Water House Howe Moss Drive Kirkhill Industrial Estate Aberdeen AB21 0GL Tel +44 (0)1224 771 191 Fax +44 (0)1224 724 591 Email sare@bws.dk Web www.bws.dk

Seaview Road Cowes Isle of Wight PO31 7US Tel +44 (0)1983 290 525 Fax +44(0)1983 295 853 Email chris.sparrow@seaflex.co.uk Web www.seaflex.co.uk

Seaflex Limited

Blue Water Shipping

The Nominated Representative is Mr Chris Sparrow, Global Sales Manager. Unique Seaflex is a world-leading manufacturer of air lift bags and enclosed buoyancy units up to 50t in capacity, for use in lifting assets (sunken vessels, damaged pipelines etc) from the seabed to the surface or for supporting assets (pipes, cables, jackets) during their installation. Hire and sale options are available, from many thousand tons of lifting capability held in the UK and in multiple international locations. No-one has gone further than Seaflex in testing and proving the compliance of its bags to IMCA D-016 recommendations, and the company has also obtained full ABS Product Design Assessment (PDA) for these products. Seaflex also provides the patented SeaSerpent system to provide continuous support with minimum investment of time and money during cable-laying operations. Seaflex also offers a range of WaterLoad test weights and ballast bags for crane and davit proof load testing as well as for use as counterweights during offshore installation. These are all fully compliant with LEAA 051 guidelines. Seaflex also supplies turnkey lifeboat testing kits.

The Nominated Representative is Ms Sarah Reno, Bids & Proposals Manager. Blue Water Shipping is an international shipping, transport and freight forwarding company. The company was established in 1972, employs more than 1,200 people and has over 65 offices in 27 countries. The construction of industrial plants and large infrastructure projects, as well as the manufacturing of oversized equipment and modules present highly challenging and complex project logistics problems that often involve the transportation of very heavy and oversized loads. Based on their worldwide setup and many in-house resources including engineering department, port captains and super cargos as well as a dedicated IT department of 26 people, Blue Water Shipping is able to offer clients tailor-made solutions for their individual projects.

www.the-eic.com

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November 2013

New EIC Members New Primary Member

New Primary Member

TEC Group International Recruitment Ltd

Thyson Technology Ltd

Crosspoint House 28 Stafford Road Wallington SM6 9AA Tel +44 (0)20 8544 3400 Fax +44 (0)20 8544 3449 Email sean.boswell@tecgroup.net Web www.tecgroup.net

2 Burnell Road Ellesmere Port Cheshire CH65 5EX Tel +44 (0)151 355 5594 Fax +44 (0)151 355 7961 Email glenl@thyson.com Web www.thyson.com

The Nominated Representative is Mr Sean Boswell, Recruitment Manager. The company understands how important people are to the energy industry. With expertise and knowledge gained from hard work and dedication, they know what’s needed to match engineers and technical professionals to global engineering projects.

A truly international business, TEC Group International has regional offices in the USA, Europe, and Asia, with project offices in several locations. With a cross-section of clients and a track record of completing assignments in over 65 countries, TEC Group International is the staffing partner of choice for companies and individuals alike.

The Nominated Representative is Mr Glen Lancaster, Sales Manager. Established in 1994, Thyson Technology is a specialist analytical instrumentation engineering business providing complex analyser systems for process industries covering energy and utilities, oil and gas, petrochemical, steel and the pharmaceutical sectors. The company, based in Cheshire, employs over 50 full-time staff including 21 professional engineers.

EIC National Dinner

10 October 2013 Natural History Museum, London The EIC National Dinner took place amongst a Diplodocus skeleton, a 1,300-year-old giant sequoia and Charles Darwin’s famous statue in London’s Natural History Museum in October.

525 guests networked, celebrated successes and hosted clients within the breath-taking surroundings of the London landmark. Following a drinks reception in Waterhouse Way, home to hundreds of fossils and skeletons from Britain’s Jurassic Coast, guests were welcomed into the Central Hall and the evening was officially opened by a speech from EIC Chairman, Paul Mitchell from Rotary Group.

Throughout dinner guests were entertained by soul singer Kyan and regaled by amusing anecdotes from ex England Rugby star, Will Greenwood.

A highlight of the evening was the announcement of the winner of the EIC Award for Supply Chain Excellence by Lord Howell of Guildford. Lord Howell gave an overview of the award and thanked all the entrants before presenting Lloyds Register with their award, pictured above.

Between speeches, fine food and the wonderful entertainment, guests took the opportunity to network with one another and ‘talk shop’ – all over a few glasses of wine!

Details of the 2014 EIC National Dinner will be announced shortly; as always there will be plenty of opportunities to promote your organisation via sponsorship packages. To register your interest in sponsoring, or for the Dinner, contact Daisy Crisp: daisy.crisp@the-eic.com. The event is fully expected to sell out again next year so we urge you to consider the event within your forecasts and plans now. www.the-eic.com

With thanks to our Headline Sponsor LV Shipping Ltd, one of the leading European project freight forwarders; Drinks Reception Sponsor Petrolic Consultants and Printing Sponsor I-PAYE.

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November 2013

EIC Member News

Member News Copyright 2013 iStockphoto LP

During her tour, the Princess Royal also presented ACE Winches with the coveted Queen’s Award for Enterprise: International Trade – the second win in this category having first received the award in 2010. ACE’s strong overseas sales have been key to its strategic growth with 75% of its turnover generated from international markets.

Staff numbers have increased significantly over the past two years as the company has expanded to meet growing demand for its range of products and services.

ACE Winches

3sun Group has been shortlisted in the Innovation category at the Energy Institute Awards 2013. The company has received recognition for its electronic 3D visually-based, handheld inspection system – the Radio Frequency Identification (RFID) tagging device – for managing legislative compliance, safety critical plant and equipment on wind turbines.

Graham Hacon, Managing Director, 3sun, said: “Our electronic 3D visually based inspection system was developed in collaboration with Scottish & Southern Energy and aims to improve legislative compliance and safety standards on wind turbines. The RFID tagging and handheld software technology delivers a solution for the identification and inspection of offshore wind turbine components. It is proving very successful for our clients.”

The winners will be announced at an awards ceremony on 14 November 2013 at Sheraton Park Lane Hotel, London. It will celebrate excellence and innovation in the energy industry, in categories including communication, community, environment, safety and individual achievement. For more information visit: www.3sun.co.uk

Since 2008, ACE Winches has spent £31 million investing in growing the business and developing the company’s hire division facility, manufacturing plant and office complex to lay the foundation for future growth and expansion. For further information please visit: www.ace-winches.com

AMEC has been awarded a three-year contract by the Nuclear Energy Company of Slovakia (JESS), for a major environmental impact assessment for a new 1GW nuclear power station at the Bohunice site in Slovakia.

Clive White, President, AMEC’s Clean Energy Europe business, said: “The contract is for the provision of a full environmental impact assessment, which is vital in ensuring the approval of neighbouring states and other key stakeholders for the development of the Jaslovske Bohunice station. It is an area in which AMEC has recognised skill and expertise and confirms us as a major player in the new build programme being developed across Central Europe.”

The Bohunice Nuclear Power Plant (NPP) is a complex of nuclear reactors in the Trnava District in western Slovakia. Bohunice NPP comprises two plants, V1 and V2. Both plants contain two reactor units. The four power reactors are pressurised water reactors of the Soviet VVER-440 design. Annual electricity generation averages 12,000GWh. Please visit: www.amec.com

ACE Winches, the deck machinery and engineering specialist, welcomed Her Royal Highness The Princess Royal to officially open its new global headquarters on 4 September and present the Queen’s Award for Enterprise: International Trade 2013.

The Princess Royal was welcomed by Alfie Cheyne, Chief Executive Officer and co-founder and business partner Valerie Cheyne, Chief Compliance Officer, before being escorted on a tour of the facilities at Towie Barclay Works, near Turriff, where the majority of the company’s 320 strong workforce is based.

Mr Cheyne said: “We are a family focussed firm, employing local people living in the local community of north east Scotland, using local services and we are committed to supporting our workforce by building a strong, sustainable business.”

To submit articles to the Member News section, please send no more than 300 words, and a good quality photograph (minimum 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com.

Copy deadline is the first of the month for the following month – ie by 2 December for the January issue. www.the-eic.com

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November 2013

EIC Member News

After almost a year in the planning, Chapman Freeborn, in partnership with Air Libya, will commence cargo operations in Libya.

Initially the operation will be based out of Matiga (MJI) – Tripoli’s main cargo airport – using a leased AN26F. One noteworthy advantage of the tie-up with Air Libya means that CF will have the right to operate intra-Libya (cabotage) as well as regionally from Libya into the EU and North Africa. Initially the aircraft will be available for ad-hoc charter with the intention of introducing internal scheduled services (including third party interline agreements) connecting the main airports MJI/BEN/TIP with the more remote airfields/ strips in the south close to the oil fields, as well as regional flights to Algeria and Malta.

Corrotherm International has opened a new office in the industrial port city of Dalian, located in Liaoning Province, North East China. According to Corrotherm, the China office will be focused on business development and will be supported by the Perth office which will oversee project contracts and logistical requirements.

In June, the company opened a new regional head office in Perth, Australia, with the aim of expanding its service within the Asia Pacific market. Corrotherm supplies nickel alloy pipe, tube, fittings, flanges, plates, bars and welding consumables to markets across the Asia Pacific region.

Martyn Nuttall, Managing Director, Corrotherm International, said: “The Asia Pacific region is our biggest growing market, and the Dalian office will enable us to offer a more comprehensive and personalised service to customers in the area. Country Manager, Rose Ding, will develop opportunities in the expanding Chinese market.”

For more information please visit: www.corrotherm.co.uk

Russian operator LUKOIL has awarded Cresent a US$1.7m Control of Work (CoW) contract for the second phase of the West Qurna field development in southern Iraq. The scope of the contract will involve Aberdeen-based Cresent delivering the WorkSafe® electronic CoW system, which will be supplied in Arabic, English and Russian.

Cresent will also deliver training for LUKOIL personnel in the run-up to the system going live, scheduled for this month, followed by a three-year support and maintenance contract. Cresent recently rolled out a similar contract at the nearby Rumaila field for a BP-led consortium.

Tracie Watson, Managing Director, Cresent, said: “Our challenge in terms of Rumaila was to successfully manage a complete change of mind set in relation to the attitude towards Control of Work and therefore to encourage a safer working environment. This contract consolidates Cresent’s position as a CoW provider in Iraq.” Please visit: www.cresent.co.uk

Chapman Freeborn

Libya is an exciting market still finding its feet after recent changes – its potential, and in particular oil and gas related business, is huge.

For additional information or pricing please email: ukcargo@chapman-freeborn.com

Craig Group has invested £70 million to build six new vessels at the Balenciaga Shipyard in northern Spain.

Four D class IMT 950 Emergency Response and Rescue Vessels (ERRVs) and two F class IMT 958 ERRVs will be delivered during 2014 and early 2016, replacing existing tonnage in the fleet.

Douglas Craig, Chairman and Managing Director, said: “This significant investment is part of our continued drive to operate the largest and most modern wholly British owned fleet engaged in the UK offshore industry. A newbuild programme of this size and scale underlines our commitment to the marine industry and means that we continue to offer our customers an unrivalled service.”

The fleet expansion comprises four D class vessels, complementing the existing four D class vessels already in service within the fleet. 50 metres in length, the vessels will be outfitted as a minimum with one daughter craft and one fast rescue craft as well as state of the art survival facilities.

Two F class vessels will also be brought into service.

Slightly larger at 58 metres long with diesel electric propulsion via twin Azimuth stern drives, they will also be equipped with daughter craft and fast rescue craft as well as being able to transfer and store limited deck cargo and provide offshore locations with fresh water and fuel if required.

Callum Bruce, Managing Director, North Star Shipping, which is operated by Craig Group, said: “We are constantly looking at ways of expanding and modernising our fleet. The new vessels will feature the most up to date technology and designs, meeting our customers’ needs in terms of safety, quality and efficiency.”

Over 160 seafarers’ jobs will be secured as part of the new-build programme which has seen over £230 million invested and 22 new vessels since 2003. At present the fleet stands at 36 vessels and includes a mix of platform supply, tanker assist, ROV support and Emergency Response and Rescue Vessels. Visit: www.craig-group.com

www.the-eic.com

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November 2013

EIC Member News

This year’s Offshore Europe was one of most successful yet for global safety expert Dräger with hundreds of delegates visiting its stand. Dräger’s focus was ‘Innovation through time; our history, your future’, to highlight its approach to innovation and problem solving and demonstrate that it doesn’t just offer products – but also solutions that protect lives and infrastructure.

The Dräger Experience looked at the innovative approach to problem solving over the decades and how Dräger has been successfully providing solutions to challenging issues for its customers for over 120 years, including: • Dräger’s first innovation and patent – the Lubeca valve in 1889. This made it possible to control the removal of carbon dioxide from a high pressure tank to create beer tap systems.

• When Edmund Hillary and Tenzing Norgay reached the summit of Everest in 1953, they used Dräger breathing apparatus.

Dräger also presented a schedule of seminars from guest presenters looking at important issues and topics of discussion around the future of the offshore industry including developments in procurement, safety and competency, and renewables. For more information please visit: www.draeger.com

Mexico’s state-controlled operator Pemex has awarded Fluor a US$95 million contract to develop the first phase of a project to reconfigure the Miguel Hidalgo refinery in Tula, Mexico.

This is the second contract Pemex has awarded to Fluor and its industrial engineering-construction partner, Empresas ICA. The scope of the contract includes the basic and detailed engineering for the process plants, auxiliary services and integration works required to increase the refinery’s distillate production capacity from 63% to 80%. The refinery currently has a processing capacity of 320,000 bbl/d.

This is the first phase of a mega-project announced

by Pemex to increase national production of higher value distillates through the reprocessing of products such as diesel. Pemex expects its total investment to be approximately US$3.5 billion.

Juan Carlos Santos Fernandez, Director General, Fluor, said: “This project is a major step in the modernisation of Mexico’s oil processing facilities, and we are proud to be in the position to support Pemex with Mexico-based engineering to advance the key goals set forth in their strategic plan.” For further information, visit: www.fluor.com

Fendercare Marine, supplier of marine products and services, is celebrating 25 years of trading. Established in 1988, it now has bases and agents throughout the world.

As a supplier of marine products – specifically Yokohama fenders – 1995 saw Fendercare enter the Ship-to-Ship (STS) market. Fendercare Marine’s STS operations involve transfers between vessels of any size with a variety of cargoes. Fendercare Marine has built a customer list from small independent traders to multinational oil and gas conglomerates, as well as suppliers to many of the worlds navies.

In 2005 Fendercare Marine became part of James Fisher and Sons, a service provider to the marine industry. This has allowed Fendercare Marine to access a wide range of services for customers and in 2012 the company took responsibility for the marine terminal for two oil fields in Angola as part of a £200 million deal to provide turnkey marine terminal management services.

The expansion of marine renewables saw Fendercare Marine open a wave and tidal base in Lyness, Orkney followed by an offshore wind turbine base in Great Yarmouth, Norfolk. The Yarmouth base was expanded to provide additional lifting services and now supports the oil and gas offshore sectors as well as the renewables industry.

Eric Plane, Managing Director, said: “We want to be able to take what started as a tiny company founded 25 years ago in a back bedroom and turn it into a truly global marine services provider without losing our roots, our ethos and our passion for business.” For more information please visit: www.fendercare.com

LV Shipping & Transport has opened its third Indonesian office in Balikpapan. PT LV Logistics Indonesia is a joint venture with PT Lestari Abadi Sakti Shipping Lines and has other offices in Jakarta and Surabaya.

The Balikpapan office will focus on providing project freight forwarding services to the oil and gas, mining and construction industries. The company was recently awarded a large international freight forwarding contract for a power plant in Indonesia. For more information please visit: www.lvshipping.com

www.the-eic.com

Bechtel has awarded MacLean Electrical two contracts to supply electrical equipment for the Chevron-operated Wheatstone LNG plant in Western Australia.

The scope of the contract includes the supply of medium and low voltage power, control and instrument cables, glands, electrical bulk materials and cable trays, which will be fulfilled by the JT Day Wangara facility in Perth.

The Wheatstone LNG plant will have an initial capacity of 8.9 mtpa with the potential to be expanded to 15 mtpa.

The project includes multiple liquefaction trains and associated processing facilities, as well as significant infrastructure development including camps, material offloading facilities, and jetty construction to support LNG shipping. For more information please visit: www.maclean-electrical.com 12

November 2013

EIC Member News The new ejectors (also known as jet pumps) are driven by a high-pressure liquid and entrain and compress a lowpressure gas up to a pressure where it can be reused, rather than sending to flare. In many cases injection water can be used, as this is often freely available on local facilities.

Peter Ainge, Marketing Manager, Transvac, said: “We have always been optimistic about how far we can push the technology, but I think this has exceeded all our expectations. Although this started out as a flare gas recovery project, with these compressions there is no reason why these ejectors couldn’t be used for our production boosting applications too.”

Transvac ejectors are used widely in the industry to maximise recovery from low-pressure wells by lowering the backpressure on the wellhead to promote production.

Not only can ejectors handle liquid slugs without damage, but they are an attractive low cost solution suitable for mature fields where traditional mechanical compressors are cost prohibitive to a project.

Transvac is exhibiting within the EIC UK Pavilion at ADIPEC 2013. For more information please visit: www.transvac.co.uk

EIC CONNECT EXHIBITOR Rotork flow control products have been selected for applications throughout the coal seam gas-to-LNG projects in Queensland, Australia. The company has received orders for more than 5,000 valve actuators, embracing electric, electro-hydraulic, pneumatic and gas-over-oil technologies.

The three projects, Queensland Curtis LNG, Santos GLNG and Australia Pacific LNG, are developing coal seam gas in Queensland’s Surat and Bowen Basins.

Pipelines will link the natural gas production wells on the mainland with a LNG production plant under construction on Curtis Island, which will initially produce more than 27 million tonnes of LNG for export each year.

For the upstream mainland wellheads, HART-enabled Rotork CVA modulating electric actuators have been ordered for process valve control at an eventual total of 2,000 widely distributed sites. In addition to the natural gas, CVA actuators will also control the flow on the extraction process for coal seam water.

CVA actuators deliver continuous, repeatable modulating control with a programmable fail to position option. Resolution, repeatability and hysteresis performance is quoted at less than 0.1% of full scale, offering suitability for control valve applications. CVAs are preferred because electric actuation eliminates the release of any environmentally harmful gas into the atmosphere during valve operations.

1,000 Rotork Skilmatic SI and EH range electrohydraulic actuators have been ordered for control valves, shutdown valves, wellhead skids and metering skids.

Designed to SIL3 standards for use in safety critical applications, Skilmatic actuators are also programmable for partial stroke testing, enabling valves to be tested without interrupting routine processes. The orders for Rotork electric actuators are completed with IQ actuators for various isolating valve automation duties.

The balance of Rotork orders on these projects involve fluid power actuators for the pipeline and the LNG plants on Curtis Island. The remainder are GO range gas-overoil actuators for the large mainline pipeline shutdown valves. GO actuators are designed to use the pressure of the pipeline gas as the motive power source. For more information please visit: www.rotork.com

Global contractor WorleyParsons has upgraded its Supplier Portal system to provide buyers from any of its 161 offices worldwide with a single online Global Supplier Database.

For suppliers, one of the most important stages in the buying process is the creation of the Initial Bid List, from which buyers will obtain a list of as many possible suppliers to source their required commodity. Suppliers must be visible to buyers at this point in order to be invited to the Expression of Interest (EOI) stage.

Richard Reynolds, Global Director of Procurement at WorleyParsons, said: “As with any database, the quality of the information stored is reliant on the people entering it, therefore in order to improve your prospects of being invited to the EOI stage, it is imperative that contact information is correct. WorleyParsons will send you a reminder to view your data on a yearly basis.”

Companies with offices in more than one location, either in the UK or overseas, need to register each office individually so that the local WorleyParsons offices can communicate with them directly.

WorleyParsons has also introduced a new Supply Chain Code of Conduct which is part of CSR commitment. To remain a registered supplier with WorleyParsons, you will need to log in and accept the Code of Conduct. To register or update your details, please visit: h t t p : / / w w w. w o r l e y p a r s o n s . c o m / A b o u t U s / Opportunities/Pages/default.aspx If you require any assistance please email: isupplierhelpdesk@WorleyParsons.com

Ejector solutions provider, Transvac, has developed and launched a new range of very-high-compression ejectors.

Aimed primarily at the flare gas/waste gas recovery markets, the new ejectors are capable of compressing atmospheric gas to over 150 bar in a single stage.

The compression capabilities are a result of an extensive R&D programme carried out in Transvac’s test facility in the UK. Gary Short, R&D Director, Transvac, said: “It’s an exciting achievement for us and an important one for our clients. It opens up a wealth of new opportunities for handling and reusing waste gasses, whether that be using it as a fuel gas, sending to export or even reinjection.” www.the-eic.com

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November 2013

Events Diary

UK, Overseas & Training October 2013 30 Corporate Entertainment: Rio Samba & Gas 30 Industry Outlook: Understanding Local Content

Rio Scenarium, Rio de Janeiro Roxtec, Rio de Janeiro

November 2013 5 Industry Overview: Fundamentals of LNG eMJay LNG, EIC Aberdeen 5 Industry Overview: Fundamentals of Oil and Gas EIC Singapore 7 Industry Overview: Fundamentals of Power E.ON UK, Ratcliffe on Soar, Nottingham 7 Management Course: The Professional Presenter British Council, EIC Singapore 7 Technical Workshop: Introduction to Control and Choke Valves Koso Kent Introl, Rio de Janeiro 12 HSE Training: Introduction to Pressure Equipment Directive 97/23/EC Nuvia & RSA Engineering, EIC London 12 Management Course: Technical Report Writing Rothera Group, EIC Houston 12 Technical Workshop: Introduction to FPSOs Rio de Janeiro 13 Business Presentation: Opportunities with Queiroz Galv達o Rio de Janeiro 13 Management Course: How to Write Winning Bids Rothera Group, EIC Houston 14 Business Presentation: Opportunities with CNR International Hilton Treetops Hotel, Aberdeen 14 Technical Workshop: Introduction to Centrifugal Pump Design SPP Pumps, Gloucester 14 Technical Workshop: Introduction to Corrosion Solutions Belzona, EIC London 21 Business Presentation: Opportunities with Gaia Power Ltd The Wynyard Rooms, Teeside 21 Management Course: Key Account Management Change Creation, EIC London 25 Industry Overview: Fundamentals of Subsea Denmore Technologies, EIC London 26 Business Presentation: Opportunities with Odfjell Drilling Hilton Treetops Hotel, Aberdeen 26 Sector-Based Forum: Carbon Capture & Storage EIC London 26 Technical Workshop: Introduction to FPSOs Denmore Technologies, EIC London 27 Technical Workshop: Introduction to Compressors Siemens, Duisburg, Germany 28 Sector-Based Forum: Upstream with Halliburton Hilton Treetops Hotel, Aberdeen 28 Industry Overview: Fundamentals of Subsea Rio de Janeiro 28 Industry Overview: Fundamentals of the Refining Process EIC Singapore 29 Management Course: Key Account Management Change Creation, EIC London 30 Industry Overview: Fundamentals of Subsea Rio de Janeiro December 2013 3 Business Presentation: Opportunities with Sirius Minerals Aldwark Manor Hotel, York 3 Industry Overview: Fundamentals of Refining & Petrochemicals EIC London 4 Technical Workshop: Introduction to Offshore Wind Energy GL Garrad Hassan, EIC London 4 Industry Overview: Fundamentals of Oil and Gas Rio de Janeiro 5 Business Presentation: Opportunities with GDF SUEZ Hilton Treetops Hotel, Aberdeen 5 HSE Training: ATEX Directives 94/9/EC and 1999/92/EC Baseefa, Buxton 5 Management Course: How to Write Winning Bids Rothera Group, EIC Billingham 5 Business Presentation: Opportunities with SBM Offshore Rio de Janeiro 9 Management Course: Time Management Made to Measure Training, EIC London 9 Management Course: Understanding Contracts EIC Singapore 10 Business Presentation: Opportunities with Air Products The Wynyard Rooms, Teesside 10 Industry Overview: Fundamentals of Oil and Gas EIC London 10 Business Presentation: Opportunities with Petrofac Dubai International Financial Centre 11 Management Course: Why do we need Contracts?

Costain, EIC 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 2013

Events Diary

Exhibitions & Delegations 2013

29-31 October OTC Brasil Rio de Janeiro 10-13 November ADIPEC Abu Dhabi 13-15 November Oil & Gas Indonesia (OGI) Jakarta 18-22 November Overseas Delegation to Australia 23-29 November Overseas Delegation to Saudi Arabia and Qatar 24-29 November Overseas Delegation to Venezuela 5-8 December Basra Oil & Gas Conference & Exhibition Basra

Status Sold Out Sold Out Sold Out Sold Out Sold Out Sold Out Sold Out

2014 1-6 February Overseas Delegation to Algeria 9-15 February Overseas Delegation to Mozambique and Tanzania 10-14 February Overseas Delegation to India 19-21 February Australasian Oil & Gas Exhibition (AOG) Perth 10-14 March Overseas Delegation to Azerbaijan 19-21 March CIPPE Beijing 23-28 March Overseas Delegation to Malaysia 5-8 May Offshore Technology Conference (OTC) Houston 11-15 May Overseas Delegation to Libya 18-21 May Overseas Delegation to Angola 9-13 June Overseas Delegation to Canada 25-28 August Offshore Northern Seas (ONS) Stavanger 15-18 September Rio Oil & Gas Rio de Janeiro

Register your Interest Register your Interest Booking Now Booking Now Booking Now Booking Now Register your Interest Sold Out Register your Interest Booking Now Register your Interest Booking Now Booking Now

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

National Events

2013 Status

12-13 November EIC Connect Energy Manchester Delegate Bookings Now Open

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

u

BOOKING NOW

Contact laura.tavernor@the-eic.com

harriet.fray@the-eic.com

www.the-eic.com

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November 2013

EIC Overseas Exhibitions

Overseas Exhibitions

Offshore Korea 2014 Register your Interest 12-14 November 2014 Busan, Korea TAP Funding: TBC Korea is the centre of large offshore plant construction, dominating the world’s new building market. It also plays host to the well renowned Offshore Korea Conference & Exhibition taking place in Busan from 12-14 November 2014. The exhibition in total will occupy 26,508 sq m with over 400 exhibitors from 27 countries. The EIC is currently accepting interest from those companies wishing to participate in the UK Pavilion at next year’s show.

The EIC will again be managing the UK National Pavilion at the exhibitions below.

For more information please contact the Overseas Events team.

Oil & Gas Libya 2014 Register your Interest 12-15 May 2014 Tripoli, Libya TAP Funding: TBC Following the success of Oil & Gas Libya 2013, plans are well under way for Oil & Gas Libya 2014 – set for 12-15 May 2014 at the Tripoli International Fairground under the joint patronage of the Libyan Ministry of Oil & Gas and National Oil Corporation (NOC). Over 120 exhibitors are expected from over 18 countries with over 3,000 visitors from the oil industry. Be part of Libya’s economic regeneration and join the UK National Pavilion for 2014.

Australasian Oil & Gas (AOG) 2014 Booking Now 19-21 February 2014 Perth, Australia TAP Funding: £2,000 In the past few years AOG has broken records to become Australia’s largest oil and gas exhibition, with over 500 exhibitors from 20 countries, covering the entire spectrum of the oil and gas industry from exploration and production technology including gas processing, pipelines, offshore services, engineering, design and construction.

AOG provides EIC members with an excellent platform to expand into the burgeoning oil and gas industry in Australia, giving you an opportunity to showcase your goods to oil and gas representatives from the region and make contact with potential local partners.

Event Report Overseas Delegation to Colombia 16-20 September 2013 Bogota The EIC managed a successful oil and gas delegation to Colombia, which included meetings with both national and international operators and contractors, in order to gain a better understanding of the Colombian market. Delegates enjoyed successful one-2-one sessions with Ecopetrol, OCENSA (Colombia’s largest pipeline) and SNC Lavalin as well as others. The group was met by the Presidents of three operators Shell, Amerisur and Talisman, as well as representatives from Hocol, Halliburton, Chevron, CEPSA, Bicentenario Pipeline and many more.

Colombia’s oil and gas market is steadily growing, with many operators looking into the next stages of their operations and the future of offshore in Colombia. Oil and gas represents 35% of foreign direct investment in Colombia which produces 1 Mbbl/d. A highlight was to hear from many established companies on how welcoming the country is, as well as the ease of setting up a business.

A networking reception at the British Ambassadors residence was well attended by approximately 70 of Bogota’s oil and gas representatives and included a formal welcome from the Minister of Energy. This proved to be an invaluable evening for all delegates with many industry specific introductions made and new business relationships formed. This was the EIC’s second overseas delegation to Colombia and the Minister made it clear that he would welcome many more to support development of the sector.

China International Petroleum and Petrochemical Exhibition (CIPPE) 2014 Booking Now 19-21 March 2014 Beijing, China TAP Funding: £2,500 with new to event companies receiving £3,000 CIPPE 2013 attracted more than 1,500 exhibitors and 50,000 professional visitors from around the world. China is speeding up its process in LNG receiving terminal projects. CNOOC started building the country’s first floating LNG terminal in Tianjin in March 2012 and plans for expansion are already underway.

Sinopec has pledged to spend US$12 billion to expand its upstream portfolio. Shell will also invest US$1 billion annually in the next five years to develop shale gas in China. Construction has commenced on a number of major refineries including the CNPC-PDVSA refinery and the Sinopec-Total-Kuwait Petroleum refinery, both in Guandong Province. Just a few of the plentiful opportunities for UK companies. www.the-eic.com

Overseas Events Tel +44 (0)20 7091 8600 Email events@the-eic.com

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November 2013

EIC Offices

EIC LaunchPad The EIC has an extensive network of UK and overseas offices, giving members a platform to expand their global business base. EIC LaunchPad is a business incubator service supporting companies entering or expanding into new global markets and offers: Serviced Office Facilities

The EIC’s Serviced Office Facilities, in Dubai, Houston and Rio, offer members the opportunity to cost-effectively build a presence in a new market, while providing vital support through local access to EIC services.

• Low risk and cost-effective market entry.

• Professionally manned reception and waiting area.

• Internet and telephone access.

• Postal and courier service.

• Copying and printing.

• Meeting facilities.

• Advice on legal, banking, insurance and payroll issues.

• Access to EIC services at a local level.

Virtual Office Facilities

The EIC’s Virtual Office Facilities offer members a local identity, enabling members to build bridges to new markets.

• Exclusive local identity with a local address.

• Dedicated phone line answered in company name.

• Mail forwarding.

Hotdesk Facilities

The EIC’s Hotdesk Facilities in all of our offices provide members with workplace services when in-country.

• Professional office space.

• High speed internet connection.

• Printing and scanning.

• Access to EIC services at a local level.

www.the-eic.com

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November 2013

EIC Connect

International Speaker Companies: The largest electric utility company in Spain.

The firm, a majority-owned subsidiary of the Italian utility company Enel, has 10 million customers in Spain, with domestic annual generation of over 97,600GWh from nuclear, fossil-fuelled, hydroelectric, and renewable resource power plants.

EDP – Energias de Portugal, ranks among Europe’s major electricity operators. The company acquired Horizon Wind Energy in 2007 making it the largest renewable energy deal to date making EDP the fourth largest wind power producer in the world.

EIC Connect Energy 2013 12-13 November 2013 Manchester Central

Meet the leading global Power Operators, Developers and EPC Contractors at EIC Connect Energy

Rosatom incorporates more than 250 enterprises and scientific institutions and is the largest utility in Russia, producing more than 40% of electricity in the country’s European part.

As EIC Connect returns to the power industry in just two weeks time, many of the world’s leading operators, developers and contractors will be converging on Manchester to not only brief the UK supply chain on their buying policies but also look to identify UK capability for their major nuclear new build projects, coal and gas fired power plants and onshore and offshore wind projects.

Saudi Electricity Company is a merger of all Saudi electricity companies in the central, eastern, western and southern regions into a single joint stock company providing generation, transmission and distribution of safe and reliable electric services to the customers of the Kingdom of Saudi Arabia.

What’s happening in the Exhibition?

Companies briefing the supply chain on their project opportunities and buying policies across the two days include:

Speakers from Day One will participate in one-2-one meetings on day two and vice-versa.

UKTI Commercial Officers from the UAE, Brazil, Czech Republic, India, Japan, South Korea and Saudi Arabia will also be available for one-2-one meetings.

UK-Based Speaker Companies:

The Nuclear Advanced Manufacturing Research Centre (NAMRC) will be available to advise UK SMEs about their ‘Fit for Nuclear’ programme at the event.

Visit the EIC Connect website to download the exhibition floor plan and view a list of over 50 companies promoting their capabilities in the global power sector.

Supply Chain Briefings are repeated twice on the same day to allow each delegate to attend all briefings.

Every EIC member company working in the power sector should be represented at the event. Delegate bookings are priced at just £325+VAT and include access to presentations in both the Supply Chain Event and Conference, lunch and refreshments and presentation copy.

To book your delegate place please visit: www.eic-connect.co.uk For additional information about the event please contact: Charmaine Atkinson National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com www.the-eic.com

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November 2013

EIC Connect

What’s happening in the Conference Programme?

The four conference sessions will be on a first-come, first-served basis (maximum 120) and will take place just once.

Tuesday 12 November 2013

Presenters:

SESSION 1 – NUCLEAR NEW BUILD As the UK’s Nuclear New Build programme gathers pace, all three operators active in the UK, along with AREVA, will provide delegates with the inside track on expected timescales and supply chain requirements.

Session Chair: Keith Parker, CEO, Nuclear Industry Association Keith will provide an overview of the NIA’s commitment to supporting UK companies to enter the Nuclear New Build programme, and will provide insight on the longer-term requirements for the supply chain.

SESSION 2 – PARTNERS AND SUPPORT FOR NEW BUILD DELIVERY Bringing together a major UK nuclear operator, a contractor and two leading Tier 3 suppliers to the nuclear industry, this session will look at how Tier 3 and Tier 4 suppliers could work together to win business on major nuclear power projects.

Nuclear AMRC will wrap up the session.

Wednesday 13 November 2013

and case studies from SMEs

Session Chair: Bob Bianchi, CEO, Business Development Director (Nuclear), Boulting Group There will be a keynote speech during a Networking Hour on Tuesday 12 November by Energy Minister Michael Fallon.

Presenters:

SESSION 3 – UK POWER UPDATE New build plans, combined with cleaning up the UK’s remaining fleet of operational power stations, could provide fruitful opportunities for the UK supply chain.

In this session, power operators and contractors will offer an outlook for the power industry to help to inform SMEs’ long-term strategies.

Session Chair: Ali Qureshi, UK Business Manager, Iberdrola Engineering & Construction

SESSION 4 – RENEWABLE ENERGY PROJECTS: WHAT’S IN IT FOR SMEs? With over 3GW capacity installed, the UK has already established itself as a world leader in offshore wind. This session will provide an unmissable opportunity to listen to the operators and contractors, leading the renewable charge, talk about their UK and global aspirations.

www.the-eic.com

Session Chair: Maria McCaffery, Chief Executive, RenewableUK Maria will provide an overview of the renewables industry with an update on progress in the UK across all renewable technologies.

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November 2013

EIC UK News

News from our UK offices

Forthcoming Events

Business Presentation: Decommissioning Opportunities: Learning from CNR International’s Murchison experiences 14 November 2013 Hilton Treetops Hotel, Aberdeen With the decommissioning market set to grow – so far, only 52 steel jacket platforms have been decommissioned out of a total of 556 platforms installed in the North Sea since 1967 – the supply chain has a key role to play in working with operators to develop the optimum solutions and to spotting where business opportunities lie to bring these to the market in time. This presentation offers the chance for those companies interested to understand the opportunities associated with the Murchison decommissioning to learn more about what’s involved, and to see how their expertise and approach can contribute to this and other operators’ quest for decommissioning excellence in the future.

The speaker is Roy Aspden, Decommissioning Project Manager, supported by Carol Barbone, Decommissioning Consultant. Topics will include evaluating the scope of decommissioning; CNRI contracting and project execution strategy; opportunities and routes to market.

Contact: leeann.stewart@the-eic.com

Lloyd’s Register wins EIC Award for Supply Chain Excellence

The EIC is delighted to announce that Lloyd’s Register is the winner of the inaugural EIC award for its Blow-Out Preventer (BOP) Risk Model Programme, developed as a joint industry project with drilling operators, BOP equipment manufacturers and US regulators.

The award was presented by EIC Honorary President, Lord Howell who praised the company for its groundbreaking application for industry, developed in the wake of the Deepwater Horizon disaster. The EIC Award for Supply Chain Excellence is a prestigious accolade launched by the EIC to recognise a member organisation that has demonstrated a superior level of supply chain performance. Lloyd’s Register’s BOP Risk Model allows owners and operators to model the risk of their BOP against component failure, helping to determine whether to pull the BOP to the surface for inspection and repair or not.

Congratulations to Lloyd’s Register and to all of the finalists for their excellent submissions, details of all the shortlisted entries are available on the EIC website. The 2014 EIC Award for Supply Chain Excellence will open for entries in January 2014.

Business Presentation: Opportunities with Gaia Power Limited 21 November 2013 The Wynyard Rooms, Teesside Gaia Power Group brings simple yet revolutionary, robust, sustainable and cost effective energy, water, harbour and related technology and solutions to the world. Gaia Power Ltd has received planning permission for its 50MW plant from Stockton Borough Council Planning Committee.

The 50MW biomass power plant in the Tees Valley will supply up to 80,000 homes with electricity annually. The facility will cost £200 million, which will come entirely from the private sector. The plant will utilise recycled wood chippings mostly from the construction industry and demolition waste. Contact: jennifer.hole@the-eic.com

Southern Region AGM, January 2014

Would you like to represent your organisation on the Southern Region Committee? The EIC is looking for members to help shape the future direction of the region.

The Southern Region Committee aims to assist in the development of the regional programme to equip members with an overview of the energy sector, including suggestions and ideas of areas of interest, speakers or projects; provide a cross section of feedback on EIC services and activities offered within the region, thus helping to shape and maximise our membership offering; help us consider the needs of both speaker companies and members attending regional events; promote the EIC to potential members and provide insight and feedback on projects/industry trends.

The benefits of Committee Membership include: raising the profile of your organisation among the membership and beyond; representing the views of EIC members both in the region and as a whole; helping to build a beneficial programme of events and activities; building strong relationships with other committee members; enhanced networking opportunities; priority invitations to select EIC events.

If you wish to be considered for a place on the Southern Region Committee or would like to find out more, contact: charlotte.hust@the-eic.com

www.the-eic.com

Business Presentation: Opportunities with Odfjell Drilling 26 November 2013 Hilton Treetops Hotel, Aberdeen Odfjell Drilling Group is celebrating its 40th anniversary as an international drilling contractor providing mobile offshore drilling units for harsh environment and ultra-deepwater drilling operations, platform drilling, engineering and well services. This is a unique opportunity for EIC members only to interact with an international drilling contractor, keen to build relationships with both operators and the supply chain. The speakers are Stuart Martin, VP Engineering & Projects; John Smith, VP Operations, Platform & Drilling and Dave Tansley, Operations Manager, Well Services.

Topics will include background information on Odfjell Drilling; current work and future opportunities; how to do business with the company (including how to pre-qualify as an approved vendor eg FPAL etc) and key contacts.

Contact: leeann.stewart@the-eic.com 20

November 2013

EIC UK News Business Presentation: Opportunities with GDF SUEZ 5 December 2013 Hilton Treetops Hotel, Aberdeen GDF SUEZ E&P UK Ltd discovers, develops, and produces oil and gas in the North Sea as an affiliate of the world’s largest utilities company. It is rapidly becoming one of the UK’s leading operators and duty-holders. Welcome back to Aberdeen Rob Buchan who has taken up the role of Aberdeen General Manager and will oversee the company’s developments and operations across the UK. He is also part of the firm’s Executive Team. GDF Suez and indeed Rob first spoke exclusively to the EIC in 2009. Just after presenting he moved to Head Office in Paris where his most recent role was Senior Vice President Operations for GDF SUEZ E&P International. Topics will include background information on GDF SUEZ E&P UK Ltd; current work and future opportunities; how to do business with the company (including how to pre-qualify as an approved vendor eg FPAL etc). Contact: leeann.stewart@the-eic.com

Sector-Based Forum: Upstream 28 November 2013 Hilton Treetops Hotel, Aberdeen Founded in 1919, Halliburton serves the upstream oil and gas industry throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimising production through the life of the field. Halliburton Pipeline and Process Services operates globally providing a full range of precommissioning, commissioning, maintenance and decommissioning services to the pipeline and process plant construction, commissioning and maintenance industries, both onshore and offshore. Recently, Boots & Coots joined forces with Halliburton to expand their portfolio of services. This gives them additional resources to bring their unrivalled pressure control experience to new applications, such as pipeline and process services, coiled tubing, nitrogen, and thru-tubing. Contact: leeann.stewart@the-eic.com

EIC launches Online Booking More and more EIC events are now available to book online, making it

quicker and easier for members to gain access to our services. Online booking is being introduced across all of our events over the next couple of months and in the meantime, events are still available to book via the existing routes.

Your login details are the same as your EICDataStream credentials. If you need a reminder of these please email us, we will need your full name if it’s not obvious by your email address: membership@the-eic.com In the coming weeks we will be launching My EIC, a self-service area allowing you to view and amend your mailings with us, download your receipts and update your personal details. Thank you for your patience during this period and look out for more updates coming soon. If you have any questions please don’t hesitate to contact Lisa Munro, Membership Communications Manager: lisa.munro@the-eic.com

Prestigious office space available NOW in the West End of Aberdeen The EIC Scotland office is located in a prominent position just off the Queens Cross roundabout – a central location which is ideal for reaching all parts of Aberdeen City and Shire. Considerable refurbishments have been completed since the facility first opened in 2009.

Currently there is one EIC member office available on the 1st floor. The member offices have their own entrance from the 1st floor landing adjacent to the EIC staff offices.

Office 2 is 9.38 sq m and is ideal for one person.

Cost per month is £700 plus VAT. There is a conference/meeting room on the second floor of the EIC facility which can be set up in theatre, conference or meeting room style and this is accessible to the resident companies subject to availability.

For further information please contact: Lesley-Anne Brodie Manager, Scotland Contact: les.brodie@the-eic.com Leeann Stewart Events & Communications Co-ordinator, Scotland Contact: leeann.stewart@the-eic.com www.the-eic.com

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November 2013

EIC Asia Pacific News

Asia Pacific News

Regional Comment

Japan’s largest PV plant Eurus Energy will build Japan’s largest solar photovoltaic (PV) plant to date, the 115MW Rokkasho Solar Park, across two sites at Aomori prefecture in northern Japan.

The park will utilise 510,000 panels of single-crystal silicon photovoltaic cells, manufactured by Mitsubishi Electric and SunPower and will generate enough electricity to power 38,000 average households a year, reducing annual carbon dioxide emissions by around 70,000 tonnes. The plant is expected to cost US$500 million with a completion date set for November 2015.

Office News

The EIC is leading the UK Group at the biennial Oil & Gas Indonesia (OGI), 13-15 November. On 12 November, prior to the exhibition, the EIC is organising a Business Presentation with UKTI to give a general overview of ‘Oil & Gas Development, Political and Economic Updates in Indonesia’. Another important date to note is 1822 November as the EIC is organising the Overseas Delegation to Perth and Darwin. For more information, please contact our Overseas Events team. We continue to work with various new partners to expand our training programme to introduce more specialised technical workshops, such as ‘Internal Corrosion Management Solutions’ with Belzona in January 2014. Please look out for further announcements.

2,600MW CCGT plant in Taiwan Mitsubishi Heavy Industries (MHI), together with Taiwan’s CTCI Corporation, has won the contract to build a 2,600MW combined cycle gas turbine (CCGT) power plant in Taiwan. To be located 150 kilometres south west of Taipei, the plant will consist of three islands of CCGT power systems which are slated to go onstream between September 2016 and June 2017. Each island will consist of two M501J gas turbines, one steam turbine, a heat recovery steam generator and three generators. MHI will manufacture and supply the turbines while CTCI will handle construction and installation at the plant site.

The plant will be operated by Taiwan Power Company (Taipower), a publicly-owned utility and the sole integrated power transmission and distribution company in the country.

Forthcoming Events Industry Overview

Fundamentals of Oil and Gas 5 November 2013 EIC Singapore This one-day workshop will focus on the upstream sector and aims to give participants a basic understanding of the processes of exploration and production. In addition, the course will offer an appreciation of the importance and place of the upstream sector in the broader oil and gas industry.

Petrofac signs Petronas training deal Petrofac has signed a US$120 million agreement with Malaysia’s Petronas, for the operation and management of two high-specification training facilities that Petrofac is building to support Petronas’ workforce capability enhancement programme. Two upstream plant training facilities and a live downstream facility will supplement existing facilities at the Institut Teknologi Petroleum Petronas (Instep) training academy in Terengganu, Malaysia. The two upstream facilities will be capable of training 500 delegates each year. The deal is for five years with an option to extend for a further two years.

Management Course

The Professional Presenter 7-8 November 2013 EIC Singapore This highly practical workshop will provide participants with a full understanding of how to prepare, organise and deliver presentations. It will demonstrate techniques for creating interest and impact that reflect the positive style and personality of the speaker.

Management Course

PLN targets 13,000MW plants using renewables Indonesia’s state owned electricity firm PT Perusahaan Listrik Negara (PLN) is targeting to develop a total of 13GW in power generation capacity within the next eight years using renewables such hydro energy, geothermal energy and solar energy. Around US$77.3 billion investment will be needed to develop these projects, with independent power producers expected to contribute 47%. Once all the renewable power plants have come into operation in 2021, which will account for 20% of the national installed power generation capacity, the emission factor of the Indonesian power plant sector will drop to 0.724kg CO2/kWh from 0.762kg CO2/kWh.

Understanding Contracts 9 December 2013 EIC Singapore This course will help attendees understand the function of contracts within the management of commercial risk, the correct contract strategy for achieving a successful project and the various terms and conditions of a normal contract for suppliers to the oil and gas industry.

If you need any help or advice in the region or for more information about upcoming events, please contact us: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

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

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November 2013

EIC China News

China News Regional Comment

CNPC to spend US$103 billion on gas pipelines China National Petroleum Corp plans to spend 630 billion yuan (US$103 billion) over the next decade on building four more long distance gas pipelines. The pipelines will connect 65% of the country’s cities to its network, said CNPC’s former deputy head and chief engineer of the Daqing Petroleum Administration Bureau, Wang Bingcheng. The company is building the third pipeline to meet surging annual gas demand, which has doubled over the last five years to 143 billion cubic metres in 2012 and is projected to rise to 350 bcm by 2020. News of CNPC’s pipeline spend is in line with the government’s plans, as it is the primary operator of China’s main gas pipelines, holding more than three quarters of the market share. Wang said the additional pipelines would source gas from Central Asian states such as Turkmenistan, Uzbekistan and Kazakhstan, as well as Russia and domestic fields in China. Wang Bingcheng said: “When completed, the network will span the south west, central, south east, Bohai Bay, Yangtze River Delta and Pearl River Delta regions.”

China to invest in domestic oil and gas exploration According to China’s Xinhua news agency, China will invest a total of 80 billion yuan (US$13.07 billion) on domestic oil and gas exploration during 2013. The agency recently cited official data from the Ministry of Land and Resources (MLR) where the country spent 67.3 billion yuan (US$10.99 billion) in 2011. Xinhua also added a quote from China National Petroleum Corp (CNPC) that the country relied on imports to meet 58% of oil demand and around 30% for gas in 2012. As a result, the government has pledged to cut this figure, despite extra pressure for higher demand. In a recent report, OPEC said it expected China’s economic growth to remain sluggish, but broadly positive. It said: “There are some signs that the domestic economy in China is recovering, or at least not slowing any further.”

CNOOC signs PSC with Smart Oil Investment China National Offshore Oil Corporation (CNOOC) signed a production sharing contract (PSC) this month with Smart Oil Investment for a block in the Bohai Sea off China. Block 05/31 covers a total area of 270 square kilometres and lies at the junction of Qikou Sag and Nanpu Sag to the west of Bohai. It has water depths ranging from 5 to 15 metres. Under the terms of the PSC, Smart Oil is expected to fully fund activities during the exploration period, which will consist of a 3D seismic survey and the drilling of exploration wells. CNOOC has the right to participate in up to 51% of any commercial discoveries in the block.

China finishes Maday Island oil port China National Petroleum Corp has finally finished the construction of a deep sea port on Maday Island in Arakan State, according to officials from the Myanmar Ports Authority. The port will dock 300,000 deadweight tonne (DWT) oil tankers and will form part of the Myanmar-China crude oil pipeline that is still under construction. The pipeline will carry 22 million tonnes per year (440,000 bbl/d) of oil. The port was built in a joint venture between China National Petroleum Corp and the Myanmar Ministry of Energy. The US$1.5 billion oil pipeline travels 1,100km from Maday Island to China’s Kunming City through central Myanmar. The gas pipeline runs parallel to the oil pipeline and extends even further, from Kunming to Guizhou Province and the Guangxi Zhuang Autonomous Region, spanning a total of 1,700km.

Shell, Yanchang Petroleum sign co-operation deal Royal Dutch Shell and Shaanxi Yanchang Petroleum have signed a deal to increase their co-operation in China’s oil and gas industry, without giving specifics of what it would involve. Shell and Yanchang already have a joint venture company that they formed in 2008 to operate 100 fuel stations in north west Shaanxi Province. Since then, the venture has been expanded to include over 400 stations in Shaanxi, Sichuan, Shandong and other provinces.

CNPC acquires 20% of Russian Arctic LNG project China National Petroleum Corp has acquired a 20% stake in Novatek’s major Arctic LNG project, the Moscow Times has reported. CNPC now joins France’s Total as a partner in the US$20 billion Yamal LNG project. However the amount paid is still undisclosed. Novatek is Russia’s second largest natural gas producer. Yamal LNG intends to build the plant with a production capacity of 16.5 million tonnes per year of LNG and start shipments in 2016. The project also requires construction of an airport and port on the Arctic Ocean.

Rolls-Royce wins TAGP supply contract Rolls-Royce has been awarded a US$175 million contract to supply Asia Gas Pipeline with equipment and related services to power the flow of natural gas through Kazakhstan’s Line C Gas Pipeline, part of the 1,833km long Central Asia-China Gas Pipeline network. Rolls-Royce will supply Asia Gas Pipeline, a joint venture between Kazakhstan’s KazMunaiGaz and China’s National Petroleum Corporation, with twelve RB211 gas turbine driven pipeline compressor units which will operate at four compressor stations along the 1,115km Line C Pipeline.

The contract is in addition to an award for eleven RB211 gas turbine driven pipeline compressor units secured by Rolls-Royce in 2009 for AGP’s Line A and B pipelines.

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

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

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November 2013

EIC North and Central America News

North and Central America News Office News

Wood Group Mustang to offer EPCM services Wood Group Mustang has announced that three Albertabased Wood Group companies – IMV Projects, Wood Group PSN Western Canada and Mustang Canada – are merging to create Wood Group Mustang’s new presence in Canada. Wood Group Mustang now offers expanded and enhanced engineering, procurement and construction management (EPCM) services to the Canadian and broader North American energy services markets.

EIC LaunchPad is our recently rebranded business incubator service aimed at supporting companies entering or expanding into global markets. We are pleased to be one of the EIC offices that offer this service, which includes low risk and cost-effective market entry, professionally manned reception and waiting area, internet and telephone access, copying, printing, postal and courier services, meeting facilities, advice on legal, banking, insurance and payroll issues and access to EIC services at a local level. We have several offices available to date, so please contact us directly for additional information.

We have a great programme of training and events put together, please see forthcoming events below. Please monitor our website and the regional emails for details on all of our upcoming events and future registration and booking of events online.

Wood Group increases shale support Wood Group’s activities to support oil and gas production from shale fields in the US are growing, with annualised revenue totalling US$500 million. Together, Wood Group Mustang and Wood Group PSN have around 2,500 personnel providing engineering, operations and maintenance services to US shale fields. Wood Group Mustang has supported more than 110 shale projects, and now has around 600 employees supporting shale projects, which include: gathering pipelines, compressor stations, pump stations, measuring facilities and other midstream facilities in a number of US shale plays; multi-well pad designs in the Eagle Ford, Marcellus, Utica and Bakken shales; FEED and detailed design for a 250 MMscf/d cryogenic turbo-expander gas plant in the Bakken; greenfield and brownfield engineering services for a gas plant expansion programme; and automating a chemical injection system for wells in the Eagle Ford. Wood Group Mustang’s shale-related work is performed at four locations in the US, and in Calgary, Canada and Bogota, Colombia.

Forthcoming Events Industry Overview

Fundamentals of LNG 12 December 2013 eMJay LNG Ltd, EIC Houston

Industry Overview

Fundamentals of Subsea 14 January 2014 Denmore Technologies, EIC Houston

Industry Overview

Fundamentals of FPSOs 15 January 2014 Denmore Technologies, EIC Houston

Ontario to evaluate hydroelectric power potential Hatch has been retained by the Ontario government to perform an updated analysis and evaluation of hydroelectric power potential in the Canadian province’s northern region. This will provide the framework for Ontario’s long term energy plan (LTEP). The LTEP’s initial objective in 2010 was to have 9GW of hydropower in service by 2018; the plan also realised the need for the development of new transmission in northern Ontario and the provision of services to diesel-dependent areas.

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

Regional Comment

Pemex procures drilling rigs with PEP A contract has been finalised and signed in the offices of Pemex Procurement International Inc (PPI, in Houston) for the procurement of ten drilling rigs from National Oilwell Varco LLP, in close collaboration with Pemex-Exploración y Producción (PEP). This equipment is an important part of Pemex’s drilling equipment modernisation, and will be shipped to their final destinations in the north and south regions of PEP by the end of this year. This contract is part of new directives established by the Dirección General de Petróleos Mexicanos where PPI participates in the procurement of international goods and service.

Approval of new LNG liquefaction plant The US Department of Energy has approved the Dominion Cove Point LNG facility on Chesapeake Bay in Lusby, Maryland, the fourth approved in the country, to export natural gas to non-Free Trade Agreement countries. Dominion’s proposed facilities are expected to cost US$3.6 billion. Pending receipt of regulatory approval and permits, construction is scheduled to begin in 2014, with an in-service date of 2017. The capacity of the facility is fully subscribed, with signed 20 year terminal service agreements.

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 2013

EIC South America News

South America News

Industry Overview Fundamentals of Subsea 30 November 2013 Rio de Janeiro

Office News

EIC members interested in coming to the region can use our fully furnished rooms. The Rio office now has three rooms available in different sizes: 10 sq m for one or two people and 16-19 sq m fitting up to five people. If you are interested in renting a serviced room at the EIC South America office, please reply to: rio@the-eic.com

Industry Overview

Fundamentals of Oil and Gas 4 December 2013 Rio de Janeiro Business Presentation: Opportunities with SBM Offshore 5 December 2013 Rio de Janeiro

If you need support in taking the next step into the South American market, please feel free to contact us.

Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Regional Comment

Rio state ties up with Norway for subsea cluster State authorities in Rio have signed a Memorandum of Understanding with NCE Subsea that will boost cooperation between Brazil and Norway in the subsea sector. According to the MoU, NCE Subsea will assist the Rio state government in the creation of a local subsea cluster to meet a growing demand from Petrobras and other players in the country. An industrial district is planned for the city of Duque de Caxias, located in the metropolitan area of Rio de Janeiro, in order to accommodate companies in this sector coming to Brazil.

In September the Rio office organised a very successful Business Presentation and lunch with 60 attendees.

Speakers were Mr Luiz Camargo, Commercial Manager, EBR Shipyard and Mr Rui Miguel Vieira, Director, Ghenova Brasil who delivered very interesting presentations about their projects and opportunities in the region.

We also held the first Industry Overview on the Fundamentals of Downstream. The workshop gathered 25 attendees and feedback was very positive. It was a special pleasure to be able to attend the second Overseas Delegation to Colombia which managed to introduce many new contacts to the 11 delegates. Please see the report on page 16. The Overseas Delegation to Venezuela is confirmed and we are bringing a group focused on oil and gas to Caracas and Puerto la Cruz.

If your company is interested in opportunities in this country, we will be pleased to share our knowledge.

Bolivian gas imports to continue Petrobras is expected to renew gas import contracts with Bolivia until 2030, according to the company’s president Maria das Graças Foster. The current supply agreement, which allows Brazil to import a minimum of 24 million cubic metres per day of natural gas and up to 30MMcm/d, expires in June 2019. The country currently pays around US$10 per million Btu and it is understood that Foster is keen on renewing the contracts on more favourable terms in view of increasing gas options. A third LNG terminal has been built in Brazil and the country could be a potential shale gas producer. Total natural gas production reached an average of 78.5 million cubic metres per day last July, a 10% increase compared to the same month in 2012.

Forthcoming Events Technical Workshop

Introduction to Control and Choke Valves 7 November 2013 Koso Kent Introl, Rio de Janeiro

Peruvian E&P contracts under force majeure A total of 30 exploration and production contracts were Technical Workshop under force majeure in Peru last August, according Introduction to FPSOs to the hydrocarbons promotion agency Perupetro.

12 November 2013 The suspended contracts represent an investment of Rio de Janeiro approximately US$2.5 billion on hold, according to the local think-tank Instituto Peruano de Economía (IPE).

Business Presentation: Opportunities with Queiroz It is understood that environmental approval and social Galvão Oil & Gas and Wilson Sons motives are the main reasons for the suspensions.

13 November 2013 Companies affected include BPZ, Cepsa, Gran Tierra Rio de Janeiro and Gold Oil. 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 2013

EIC Middle East News

Middle East News

Not long after returning from Basra, we are delighted to be hosting Petrofac again at one of our industry lunches.

To date, Petrofac holds the record for the number of attendees at our lunch events (164 in January 2010) and we are sure that they will again not disappoint, so early booking is recommended.

One last item of note is our newly launched serviced office offer. This is a cost effective way for companies contemplating a move to the region. A fully serviced office is provided within the EIC Dubai office suite where full residency can be provided along with a wealth of local assistance. Full details can be provided on request.

Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News

November is always very busy for the UAE and for Abu Dhabi in particular. The first week traditionally kicks off with the Formula One race meeting which receives broad worldwide attention. Following on from this, we have this year’s ADIPEC which has proved to be the number one oil and gas event for the region. While the announcement of the organisers to move this to an annual event was met with some consternation, it has proved in our case, to be perhaps a positive decision. We are proud to be hosting a UK Pavilion that has 63 companies under our umbrella in partnership with HSBC and the British Embassy; we have also been able to offer an evening reception to welcome the local oil and gas community plus ministers from the UK and Scottish governments.

Later in this busy month we expect to take an Overseas Delegation to Saudi Arabia which will coincide with the Saudi Arabia International Oil & Gas Exhibition before moving on to Qatar for the remaining part of the week.

Next month we have two landmark events. For the first time we will be hosting a modestly sized UK Pavilion at the Basra Oil & Gas Show. Southern Iraq is becoming increasingly attractive to UK companies especially when one considers the high level of investment that is currently taking place within oil and gas, and over the past couple of years this exhibition has been growing in importance.

www.the-eic.com

Regional Comment

GE signs power generation contracts with Algeria GE has signed three contracts to sell US$2.7 billion in power equipment to Algeria, as the North African country seeks to massively increase its generation capacity. The largest contract, for six combined-cycle power plants worth US$1.9 billion, will add 8GW to Algeria’s generating capacity, an increase of 70%. Energy demand in Algeria is estimated to be growing at an average annual rate of 14%, rising from 12GW to 20GW by 2017. The other two contracts comprise two fast-track projects that will add 528MW of capacity for the summer’s peak demand, and a new simple-cycle power plant to add 370MW to Algeria’s electricity grid.

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November 2013

EIC Northern Region, Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA

EIC Billingham Office

A fully flexible space available exclusively to EIC members and associated companies.

The EIC Billingham office offers meeting room facilities for up to 22 people. Now in a larger office within the DBH Business Centre, it is in a prime location for business throughout the Tees Valley and North East area.

EIC Billingham has plenty of free parking, a hot desk and two private meeting rooms: a large room which can accommodate a variety of layouts and up to 22 delegates and a smaller room which can hold 4 delegates. Both meeting rooms have Wi-Fi internet access.

Meeting Rooms

2 Meeting Rooms, 1 Hot Desk.

Capacity

Minimum 2, Maximum 22.

Location

Heart of the Tees Valley. 30 minutes from Darlington train station, 2 minutes from the A19 dual carriageway and 25 minutes from Durham Tees Valley airport.

Technology

Free Wi-Fi access.

Hot desk with phone and fax facilities.

Meeting room with large LCD screen and HDMI hook-up.

Refreshments

Fully flexible and cost effective catering options are available from our on-site caterers. Please speak to the Events Co-ordinator for details.

The EIC Billingham office is the perfect solution for members looking for somewhere to hold a small conference, meeting or interview. There is no charge for hire of the meeting rooms and we are always happy to discuss your catering requirements.

Please drop in and visit us during office hours.

If you have any queries or want to book one of the meeting rooms please contact Jennifer Hole: Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com

energizing your business

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November May 2013 2012

If you would like more information or are interested in becoming an EIC member, please contact: EIC Head Office and Southern Region 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com EIC Northern Region 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 EIC Scotland 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com EIC Middle East PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com EIC Asia Pacific 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com EIC North and Central America Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com EIC South America Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com EIC China Tel +86 139 0125 6599 Email salina.zhang@the-eic.com Follow @TheEICEnergy on Twitter

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