EIC Monthly News October 2013
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www.the-eic.com
The EIC Chief Executive
The Chief Executive
Contents The Chief Executive
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Welcome to the October edition of the Monthly News. I have recently Sector Analysis 3 returned from yet another excellent Offshore Europe in Aberdeen, where the EIC Group Pavilion was once again the single biggest exhibitor, and Training Services 4 was a great platform for UK products, services and technology, with 42 New EIC Members 7 exhibiting companies taking space. I was delighted to welcome a number of Ministers at the EIC Group Pavilion, including Lord Green, Trade and Member News 8 Investment Minister, who kindly made time to meet several of our members. The EIC also hosted a large delegation from Kazakhstan, led by Dr Carolyn Events Diary 12 Browne, British Ambassador to Kazakhstan, and welcomed the Vice President Overseas Exhibitions 14 for Supplier Alliances at PEMEX who met with several member companies that are already working for or have aspirations to work with the operator. Middle East News 15 We unveiled EIC LaunchPad at the event, our improved business incubator service to support companies entering or expanding into new global markets. It EIC Connect Energy 2013 16 includes our Serviced Office and Virtual Office Facilities, available at the EIC’s Offshore Europe 2013 17 Aberdeen, Dubai, Rio de Janeiro and Houston offices, which offer members the opportunity to cost-effectively build a presence in another region, while providing UK News 18 vital support through local access to EIC services. The EIC LaunchPad service also includes Hotdesk Facilities, which are available at all of our UK and Overseas Asia Pacific News 20 offices. For more information, please visit: www.the-eic.com/EICLaunchpad China News 21 With the UK’s shale gas industry gathering momentum at the present time, I am looking forward to the EIC’s new format Annual Conference and AGM on 10 North America News 22 October. Entitled ‘What is the UK Shale Potential?’, the conference will feature confirmed speakers from Hess Corporation, Schlumberger, Government and South America News 23 the EIC, who will focus on the lessons we can learn from US developments Designed and published by and where the opportunities will lie for the UK supply chain. For further details, The EIC please visit: www.the-eic.com/shaleconference 89 Albert Embankment Activities will then move across London to the Natural History Museum where London SE1 7TP Tel +44 (0)20 7091 8600 the EIC will be hosting its 59th National Dinner at the Natural History Museum. Fax +44 (0)20 7091 8601 Here the winner of the inaugural EIC Supply Chain Award for Excellence will be Email info@the-eic.com announced. Details will be published in the next edition of the EIC Monthly News. Web www.the-eic.com Looking ahead, delegate bookings have now opened for EIC Connect Energy Follow @TheEICEnergy on Twitter 2013, taking place at Manchester Central on 12-13 November. I am pleased to announce that a first-class speaker line-up for the conference sessions has now Join the EIC LinkedIn Group been confirmed. Speakers from EDF Energy, Horizon, NuGen – the three nuclear developers with plans to operate in the UK – will come together to discuss the ‘UK Nuclear New Build Programme’, while Ali Quereshi of Iberdrola will host a session featuring Drax and InterGen on the ‘Outlook for the UK Power Industry’. A session entitled ‘Renewables: What’s in it for You?’ focusing on opportunities in renewables will be headed up by Maria McCaffery of Renewable UK, and there will be a specialist session looking at the advantages of ‘Joint Ventures for Tier 3 & 4 Companies’. For more information or to book your place, please visit: www.eic-connect.co.uk The EIC will also continue its busy calendar of international events, hosting the UK Pavilion at OTC Brasil in Rio de Janeiro on 29-31 October and at ADIPEC in Abu Dhabi on 10-13 November. I am delighted to confirm that the EIC will have the pleasure of welcoming Greg Barker MP, a member of the UK Government’s Department of Energy and Climate Change, to the UK Pavilion at ADIPEC on Sunday 10 November. Our programme of Overseas Delegations is also picking up pace with three oil and gas-focused trips taking place in November to Australia, Saudi Arabia and Qatar, and Venezuela. The EIC’s Overseas Delegations enable companies to explore new markets, seek out opportunities and strengthen existing business relationships through a comprehensive itinerary of valuable meetings and networking opportunities. They provide members with a great opportunity to speak directly with senior decision makers and procurement managers, and I recommend them as a fruitful means to do business overseas. For more information, please visit: www.the-eic.com/Events/OverseasDelegations Finally on 5-8 December, as opportunities for UK companies in Iraq continue to prosper, the EIC will be organising and managing a UK stand-share at the 4th Basra Oil & Gas International Conference & Exhibition in partnership with UKTI. With a country-wide rebuilding programme taking place in Iraq following many years of military occupation and civil unrest, the stand-share will provide UK companies with a means to introduce their sector-specific products and services to those tasked with initiating large-scale energy projects. I believe this will be another superb platform for EIC members, and we are pleased to be adding this event to our programme this year. So, with such a busy schedule of events, I hope to see many of you over the next couple of months. Claire Miller, Chief Executive www.the-eic.com
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October 2013
EIC Sector Analysis
Sector Analysis
Is Britain’s nuclear power option a viable one? Feasibility is a major issue surrounding nuclear energy, not just in the UK but around the world. Following the disaster at Fukushima, new safety measures have been imposed on new build NNPs which has dramatically increased the cost of new projects. This combined with the likely decrease in gas prices due to the shale boom in the USA and the potential for carbon capture techniques to be employed, combined cycle gas-fired power plants are emerging as a more popular choice around the world. This could soon be the case for the UK, if its own shale gas potential can be developed. Outside of the OECD, China especially is embracing nuclear power as the solution to their ever-growing energy consumption. A dependence on coal-fired power plants and a rising population has increased China’s CO2 production above that of the USA and has left them few alternatives to meet energy and emission demands. Similar trends can be seen in countries such as Jordan and South Africa. Compare this with Germany, Switzerland, Italy and Japan who have all abandoned or indefinitely postponed all of their NPP projects since the disaster at Fukushima (although, in Germany’s case, a plan to phase-out nuclear power had been agreed in 2000, delayed in 2010 and then accelerated postFukushima). The trade-off between safety and the efficiency of nuclear as a low-carbon power producer (renewable energy arguably has its place in the debate, but can only offer a small portion of the power output that is on offer with a nuclear plan) has reshaped the conventional debate around nuclear power in the UK and the wider OECD community. As nations strive to meet emissions targets, those traditionally opposed to nuclear power have shifted their position. If it can be delivered cheaply, nuclear now offers an effective means of reducing carbon emissions that does not require large scale operations such as hydraulic fracturing, adding to its appeal amongst environmentalists. However, security fears have been exasperated by the recent events at Fukushima as waste material is leaking from their waste water storage tankers, leading to costly plans such as the proposed ice barrier to freeze contaminated groundwater. Ultimately, a successful resolution of the debate over the nuclear strike price will likely see a nuclear renaissance in the UK, even as nuclear programmes continue to be abandoned elsewhere in the developed world.
While several countries of the OECD are abandoning nuclear power projects, the UK has maintained its efforts to develop its nuclear sector in a bid to meet both power demand and stringent emissions standards (nuclear power plants produce 18 times less CO2 than gas-fired power plants and 34 times less than coal-fired power plants). The long-term plan would be to replace all coal-fired plants with nuclear energy, increasing its power contribution from 13% to 35-40% of the nation’s total power generation beyond 2025. The proposed electrification of the vehicle transport sector and deployment of smartgrid network technology could also have significant implications for nuclear power. The political consensus is that use of electrical power will encompass a portion of the transport sector, with substantial numbers of electric cars predicted by 2030. If this were to be the case, a new national recharging network would be needed to enable Britain to lead the world in replacing traditional cars with electric and plug-in hybrid vehicles. Full electrification of the transport sector would perhaps double Britain’s low-carbon electricity generation demands. This suggests a tremendous increase in the need for low-carbon power generation, which could probably only realistically be met by nuclear power in the medium-term. At the moment, eight projects have been proposed around England and Wales, the most advanced of which – Hinkley Point C in Somerset – is awaiting an agreement on the strike price before it can proceed. EDF is seeking a strike price of £95-100 MW/h while the UK government is standing firm on £80-85 MW/h, and the UK has warned EDF that if it does not agree to the strike price set out, then it will consider other options including South Korean and Japanese companies. The lure of the UK as a profitable market for developers has arisen due to the number of NPPs reaching the end of their production lives and the medium-term plan to decommission them – all but one of Britain’s 10 operating nuclear power stations are scheduled to close by 2023. Britain’s existing 11 GWe of nuclear capacity is to be replaced with modern reactors. Hitachi GE Nuclear Energy is expected to provide advanced boiling water reactors for at least two of the eight NPPs that are in planning via its subsidiary, Horizon Nuclear Power, and Pressurised Water Reactors are also being considered for several other projects. Recently, Russia’s Rosatom has joined up with the Finnish company Fortum and Britain’s Rolls-Royce to seek UK approval to sell its reactors to Britain. Under the agreement, Rolls-Royce would undertake engineering and safety assessment work for Rosatom, while Fortum would bring safety and waste management expertise. Rosatom has also signed a Memorandum of Understanding with the British government to develop nuclear power in the country if it is considered feasible and if their VVER reactors gain approval. www.the-eic.com
John Bridgeman Research Analyst Tel +44 (0)20 7091 8637 Email john.bridgeman@the-eic.com
energizing your business
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October 2013
EIC Training Services
Training Services Industry Overview
Industry Overview
Management Course
Management Course
Management Course
HSE Training
Technical Workshop New Introduction to Steam Boilers 8 October 2013 Fulton Ltd, Bristol This workshop consists of a theory session followed by a practical hands-on demonstration of your boiler system. The course looks at the importance of traps (pros and cons), standardising and what is best for trap maintenance, the cost of generating steam and the reason for good quality steam.
Technical Workshop
Technical Workshop
Technical Workshop New Introduction to Fibre-Optic DAS 22 October 2013 OptaSense Ltd, Farnborough Attendees will learn about fibre-optic Distributed Acoustic Sensing technology and have a chance to experience and interact with live DAS systems installed on test sites around the world and see how the technology is challenging conventional thinking in terms of pipeline protection, leak detection and PIG tracking amongst other applications.
Fundamentals of Subsea 2 October 2013 Denmore Technologies Ltd, Aberdeen This course will provide an 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. The principles of subsea construction, chemical injection, the process for inspection, repair and maintenance, and subsea well intervention systems will all be included.
Fundamentals of Oil and Gas 3 October 2013 EIC Billingham The course takes the form of five modules to introduce the participants to the fundamentals of the oil and gas industry. The sessions follow the molecules through their journey from wellhead to a range of diverse applications. It will also examine where the oil and gas industry is going in terms of future developments.
Presentation Skills 7 October 2013 Made to Measure Training, London This course will use a range of different learning methods including concept presentations, group discussion and interactive exercises. The course will enable delegates to benchmark their presentations against a series of criteria for excellence and offer an opportunity to raise their own presentation standards through practice.
Introduction to Social Media 8 October 2013 The Centre, Billingham This non-technical social media training course will introduce participants to the opportunities social media provides to reach their audiences in new and cost effective ways. It is suitable for anyone who is involved in their organisation’s website and for those who want to incorporate social media into their PR strategy.
The Effective PA 29 October 2013 Inspirit Training Ltd, London Individuals working within PA and/or Office Manager roles have to influence many people. Through identification of different personality types, and how to communicate with a range of individuals, attendees will gain practical ideas that can be implemented immediately.
ATEX Directives 94/9/EC & 1999/92/EC 1 October 2013 Baseefa, Buxton This course will explain the basics of an explosion, classification of hazardous areas and electrical and mechanical protection concepts. It will provide an appreciation of the legal framework of the ATEX Directives and discuss Conformity Assessment under 94/9/EC and IECEX.
Introduction to Offshore and Subsea Valves 10 October 2013 BEL Valves, Newcastle The workshop provides attendees with a general understanding of valves supplied to work on both subsea and surface based facilities. The workshop will cover valve fundamentals, through conduit gate valves, valve materials and ball valves. The factory tour will provide an understanding of manufacturing and valve testing.
Introduction to Bolted Joint Integrity 17 October 2013 Hydratight, Walsall This workshop is designed for people who require an understanding of all aspects of bolted joints in pressurised and structural applications. The workshop is based on the ECITB Mechanical Joint Integrity programme and aims to give a practical appreciation of bolting issues. This is followed by a hands-on practical demonstration and a factory tour.
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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October 2013
New EIC Members
www.the-eic.com
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October 2013
New EIC Members
New EIC Members New Primary Member
Upgrade to Global Member
Ground Floor Ochil House Hamilton International Technology Park Blantyre G72 0HT Tel +44 (0)141 614 6826 Email maqureshi@iberdrola.com Web www.iberdrola.com
Monsal House 1 Bramble Way Alfreton Derbyshire DE55 4RH Tel +44 (0)1773 831 100 Fax +44 (0)1773 831 123 Email peterainge@transvac.co.uk Web www.transvac.co.uk
Transvac Systems Ltd
Iberdrola Engineering & Construction
The Nominated Representative is Mr Ali Qureshi, Head of Business Development. Iberdrola Engineering & Construction provides technical services, ranging from basic studies to turnkey projects, for other companies in the Iberdrola Group and third parties in the energy sector. All projects are completed with a high degree of quality and innovation, taking advantage of the experience acquired by the entire Iberdrola Group.
The Nominated Representative is Mr Pete Ainge, Marketing & IT Manager. Transvac Systems is a specialist supplier of Ejector based solutions to the oil and gas industry for production boosting of low pressure wells, flare gas recovery, subsea production and sand slurry pumping. Transvac now offers R&D test facilities including high and low pressure equipment for handling water, oil, gas, multi-phase and slurry. Test programmes are supported by CFD studies and fundamental university research.
New Primary Member
Tekmar Energy Ltd
New Global Member
Park 200 Newton Aycliff DL5 6AR Tel +44 (0)1325 379 520 Fax +44 (0)1325 379 521 Email mark@tekmar.co.uk Web www.tekmar.co.uk
XL Group Limited XL House Blackburn Business Park Woodburn Road Blackburn Aberdeen AB21 0PS Tel +44 (0)1224 798 400 Fax +44 (0)1224 498 401 Email david.morton@xlg.co.uk Web www.xlg.co.uk
The Nominated Representative is Mr Mark Henderson, Head of Sales & Marketing. With over 25 years experience, Tekmar is a market leader in the design, manufacture and supply of subsea cable, umbilical and flexible protection systems for the oil and gas and renewable energy industries. Operating from a state-ofthe-art manufacturing facility based in Newton Aycliffe, County Durham, this provides a facility in the perfect location to meet the needs of the changing oil and gas and renewables industries. With full in-house research and development capabilities, Tekmar can engineer a bespoke solution to suite client requirements and is not limited by the products in its portfolio.
EIC
Award for Supply Chain Excellence www.the-eic.com/award
2014 www.the-eic.com
The Nominated Representative is Mr David Morton, General Manager – Oil & Gas. Part of the XLGroup, Exigo XL, trading as Exigo Global Solutions, has an extensive portfolio of products, services and complete solutions. Their versatile global supply chain includes: valve solutions and services, valve supply and refurbishment through to onsite commissioning; actuators, positioners and controls; automation; metering and monitoring; tele/data communications; safety systems; storage; deoiler and desander technology. In the following industries and sectors: oil and gas; power and energy; LNG and cryogenics; subsea; chemical and petrochemical; pharmaceuticals; water; brewing and distilling; food and beverage. XL Group’s experience, knowledge and expertise enables the company to focus on supplying products and services that meet specific application requirements and offers: short lead times; low fugitive emissions; reduced total cost of ownership; minimised downtime, maximised production.
Details of the application process will be announced in January 2014. Do not miss out on your chance to be named the winner of the EIC Award for Supply Chain Excellence 2014.
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October 2013
EIC Member News
Member News
Balmoral Group, one of Aberdeen’s largest privately owned companies, has announced the official launch of its multi-million pound business park development at the southern gateway to the city. Balmoral Business Park, spanning some 18 acres, is located three miles south of Aberdeen city centre adjacent to the Loch of Loirston, and facing the A956, with the proposed AWPR running within one mile of the development. The Park has been designed to accommodate more than 135,000 sq ft of office space and is split into two phases. Balmoral has started work on a speculative three-storey office development of 40,550 sq ft on phase 1 which it says is attracting lots of interest. Completion of the building is scheduled for summer 2014. Phase 2 of the development will offer tailored design and build office accommodation to meet occupiers’ requirements with bespoke building solutions available. The company says all accommodation will be designed and built to the highest specification ensuring the quality of space offered is in keeping with the park’s location, landscape and prominence. Generous car parking has been allowed which is complemented by cycle ways and footpaths that have been constructed as an integral part of the development. Jim Milne, Chairman and Managing Director, Balmoral, said: “Open vistas over the surrounding lochside area will provide the occupants with an outstanding working environment whilst the setting and design of the park will offer an architectural statement that is sure to make a significant and lasting contribution to Aberdeen’s cityscape. “With terrific access and views over the Loch of Loirston this is a unique business proposition which has the potential to attract inward investment to the city as well as offering consolidation possibilities for companies already based here. I believe the quality, choice, and environmental setting of this development is unprecedented in Aberdeen.” Ryden and Shepherd are acting as joint agents for Balmoral Business Park and interested parties should contact them to discuss their individual requirements. Visit: www.balmoral-group.com/balmoral-business-park/
Allied International UK Ltd has announced the opening of its new 16,000 sq ft office and warehouse facility in Teesside. With its head office and warehouses in Grangemouth and additional warehouses in Aberdeen, Allied is one of the leading stockholders and manufacturers of buttweld fittings, flanges and linepipe in carbon, stainless, alloy and duplex steels. Michael Duncan, Commercial Manager, said: “We have been supplying into the Teesside marketplace for many years now through the current distribution network of stockholders but felt the time was right to show commitment to the North East area by opening a new facility there. The Teesside marketplace insists on a local presence and we aim to ensure that we can supply not just urgent requirements from stock, but also project work to both fabricators and end users alike. Part of the Allied Group of companies, Allied UK has the support of the Group manufacturing plants in Italy (Tectubi, Raccordi Forgiati, Gieminox and OMP Mongiardino) and with our in-house machining and manufacturing capabilities in Grangemouth, this will be a new level of service not previously experienced in the North of England.” Bianca Lincoln, Teesside Branch Manager, confirmed: “These are very exciting times. In our sector, a lot of companies are trying to reduce spend, whilst Allied is growing the business and investing. Very few companies in the world can compete with the range of stocks and service that can be supplied through the Allied Group. We will also be offering a same day pipe cutting service and our machining capabilities will ensure rapid turnaround to support the high demand of our clients. Having the support of our manufacturing plants, this will also allow us to compete strongly on the larger project requirements.” Allied Teesside will initially be stocking a wide range of material up to 36’’ diameter of varying wall thickness and material grades. This initial investment will total approximately 1,000 tonnes, supported by the current 4,000 tonnes of stock at Grangemouth and 1,000 tonnes in Aberdeen. Please visit: www.alliedfittings.co.uk
Aerial view showing how the 18 acre Balmoral Business Park could look on completion
Balmoral
www.the-eic.com
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October 2013
EIC Member News Cofely Fabricom GDF SUEZ apprentice technicians attend the Skills Enhancement Centre for one year. They then transfer to facilities throughout the UK, including Immingham in the East, Teesside in the North East and Liverpool and Chester in the North West, to continue their apprenticeship. This pilot programme is currently reducing the amount of time it takes to complete apprenticeships. An important factor is that the apprentices are learning in a ‘real’ environment, partly due to the equipment donated by local oil gas and power companies. This equipment allows the apprentices to learn vital skills such as working in confined spaces, working at height (onshore and offshore), laser alignment and project shutdowns required in the engineering and construction industry. Pre project shutdown experience is not available to apprentices in the construction industry so this is vitally important. CATCH is currently the only centre to offer this. The onsite equipment is allowing apprentices to get this experience. The Skills Enhancement Centre provides a safe and structured environment and the opportunity to work with the assessors, which allows apprentices to leave with the relevant engineering qualifications to enable them to complete their technical training with a local company. Creating the right environment has been critical to ensuring the industry gets the calibre it needs. Cofely Fabricom GDF SUEZ is a leading player in the market of infrastructure, services, industry, energy, oil and gas and has a strong presence across Europe providing high value consultancy, engineering, construction and support services to the oil, gas, power and renewable sectors. For more information please visit: www.fabricom-gdfsuez.co.uk
The Bifold Group has broadened its valve line with a range of medium pressure ball and needle valves, delivering safe, reliable operation to 20,000 psi/1379 bar. Both valve types are available in ¼”, 3/8”, 9/16”, ¾” and 1” tubing sizes, comprising of a coned and threaded connection. The connection method allows for increased flow rates due to the larger bore sizes, common within this range. The valves are constructed from high tensile 316L CW stainless steel (exotic materials available). The range comprises of needle valves, ball valves, manifold valves, check valves, fittings and adaptors. The valves are designed with unique features alongside many standard features which makes the product far superior to conventional products on the market. The medium pressure ball valve range is available as a floating or trunnion style and incorporates an innovative locking device. This design allows the valve to maintain its through panel mount function and is pressure tested in accordance with API 598 and BS EN 12266-1, also proof tested to 1.5 times maximum working pressure. These valves are offered in a wide range of configurations, with an operating temperature range of -46ºC to +225ºC (-20ºC to +180ºC) as standard. The medium pressure needle valve range is designed with a unique maintenance free stem sealing system. This eliminates the loss of integrity often experienced over time with traditional packing glands. There is also a secondary metal to metal seal system which reduces potential leak paths. Further product advantages include the unique stem treatment to prevent galling, non wetted threads, fail safe open and closed system and many more features and benefits. These valves are offered in a wide range of configurations, with an operating temperature of -73°C to +315°C (-20°C to +170°C) as standard. For innovative and reliable valve solutions, visit the Bifold Group website where more information and a PDF brochure can be downloaded: www.bifold.co.uk
First Subsea Ltd has been awarded a contract by Technip to supply the subsea mooring connectors for a 23,000 ton truss spar platform moored in 1,620 metres of water in Anadarko Petroleum’s Heidelberg field development in Green Canyon Blocks 859, 860,903, 904 and 948 in the Gulf of Mexico. The Heidelberg spar will be moored by nine Series III Ballgrab ball and taper mooring connectors attached to polyester mooring lines. The connector’s male mandrels are manufactured in compliance with American Bureau of Shipping (ABS) 2009 Approval for specialist subsea mooring connectors. First Subsea is the first manufacturer of offshore mooring connectors to achieve ABS type approval for the design and manufacture of large-scale forgings over 500mm in diameter. The Heidelberg field is close to Anadarko’s 100%-owned Constitution spar, also moored using First Subsea mooring connectors in 2005. Since then over 370 Ballgrab connectors have been successfully deployed in deepwater moorings worldwide. John Shaw, Managing Director, First Subsea Ltd, said: “This is our tenth spar mooring project for Technip. The speed and ease of the Ballgrab connection is well proven in a range of industry-leading, deepwater projects.”
Six months into the employer-led Ownership of Skills Pilot, representatives from BIS (Business Innovation Skills) and the Skills Funding Agency attended a review with managing agents Humber Chemical Focus Ltd (HCF) and Cofely Fabricom GDF SUEZ (Consortium Leader) at the Competency Assessment Training Centre Humberside (CATCH) in Stallingborough. The purpose of this visit was to find out why the pilot in North East Lincolnshire has been so successful in such a short space of time and how it could influence other pilots, mainstream training and wider policies. Also, what challenges have been faced so far and understanding the pre-employment programmes (content, age of participants, accreditation etc). One of the aims of the pilot is to boost apprentice numbers and improve the work-readiness and productivity of new recruits and engineering technicians and apprentices by creating a new Skills Enhancement Centre. www.the-eic.com
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EIC Member News The Heidelberg spar will have a capacity of more than 80,000 bbl/d of oil and 2.3 million cubic metres of natural gas per day. For more information on First Subsea’s range of Ballgrab subsea mooring connectors, contact: Tel +44 (0)1524 387 777 Email info@firstsubsea.com Web www.firstsubsea.com
KAEFER C&D Ltd has announced that following a recent tendering process run by Magnox Ltd they have been successful in their bid for framework contracts potentially totalling £380 million for access and insulation services with six Site Licence Companies operating on behalf of the Nuclear Decommissioning Authority and include Sellafield Ltd, Magnox Ltd, RSRL, DSRL, NNL and Springfield Fuels. The Site Licence companies are the NDA’s management and operations contractors responsible for 16 nuclear sites in the UK; the contracts commence in August this year. Paul Hoyle, Operations Director, said: “We are obviously delighted that the quality of our work, our proposals for innovative working and the professionalism and experience of our people has been recognised by us being awarded this prestigious contract. It further enhances our reputation within the industry and reinforces our intention to continue to grow the business via the competitive tendering process. “In support of this national contract KAEFER C&D will utilise local labour and suppliers and employ innovative techniques and processes which have been proven at a number of KAEFER sites across Europe. The range of skills and expertise available to KAEFER C&D in Cumbria and the adjacent region cannot be exaggerated; however we will be encouraging the development of employment opportunities for young people residing in the local area. KAEFER C&D employee training programmes are second to none; we work hard to enable all of our staff and operatives to develop to their full potential with our organisation. By investing in first-class training and qualifications for our employees we also ensure our longterm market leadership in the industry.”
Hydrasun
Hydrasun, provider of integrated fluid transfer, power and control solutions to the global energy industry, has announced the launch of a new company and associated office and workshop facilities in the Middle East. Hydrasun FZE, based in Dubai, UAE, has been formed to support the company’s growing number of customers in the Middle East. The new 1,000 square metre facility will establish a permanent presence in the region supplying Hydrasun’s complete range of products and services as well as facilitating the pursuit of new business opportunities.
www.the-eic.com
Sellafield Ltd
Bob Drummond, Chief Executive, Hydrasun, said: “Launching Hydrasun FZE is a further significant milestone in our overall global expansion plan. We have seen strong growth in the Middle East and by having a permanent presence there, it positions the company well for future business development opportunities whilst fulfilling the needs of our customers in the region.” Recent significant contract awards in the region include a £1.5 million contract for instrument tubing and hose assemblies for the Barzan project in Qatar, a long-term supply agreement worth approximately £500,000 per annum with a leading oil services contractor in Dubai and an integrity management services contract with a major operator in Oman worth approximately £500,000 per annum. The new operation comes as part of the company’s growth strategy and will be headed up by Regional Manager Garry Kidd, who has previously worked as international business development manager for Hydrasun in Aberdeen. He said: “I am very pleased to be a part of Hydrasun FZE, and the localised support our presence can provide to new and existing Middle East customers is a key part of our strategy. I look forward to further developing our offering and to working closely with our customers in continuing to build the business in the region.” For more information please visit: www.hydrasun.com
Paul McKeown, Operations Manager, said: “The experience that KAEFER can bring to delivering this contract cannot be overstated. KAEFER provides complete insulation solutions with operations in over 50 countries and we are confident that a combination of our operational expertise will ensure that this contract is a real success. In addition the contract is expected to provide major training opportunities with added benefits to the local economy and local suppliers particularly in the Sellafield/Cumbria area.” For more information please visit: www.candgroup.co.uk 10
October 2013
STATS Group
EIC Member News
With the focus on flexibility, operation and security Rittal’s complete range of Top Therm chillers now has a reduced depth of 605mm, increasing the number of enclosures to which it may be bayed. The condenser fan, relocated to the roof of the unit, provides an optimised thermodynamic performance and an incorporated condenser protection grill minimises the risk of damage during transit and installation. The temperature of the chilled water supplied for enclosure cooling is not as critical as that used in process cooling. Spindle cooling demands the cooling medium is supplied within a tolerance of ± 0.5 K, to guarantee the necessary accuracy in processing, otherwise the thermal expansion of the components will cause inaccuracies in the machined workpiece. Please visit: www.rittal.com
TAQA Bratani required an isolation solution to facilitate pipework replacement of a 3’’ instrument air line on board the Tern Alpha platform in the North Sea, without the necessity for a platform shutdown. STATS Group proposed the use of a 3’’ BISEP™ and Tecno Plug™ assembly to provide a double block and bleed (DB&B) isolation. To allow deployment of the BISEP™, full bore access was obtained by hot tapping into the live line by using a STATS supplied mechanical tie-in clamp and ball valve. Once hot tapping operations were complete and the pipe coupon recovered into the hot tap machine, the ball valve was closed allowing the hot tap machine to be removed. The BISEP™ was then fitted to the ball valve and housed in a pressure competent launcher. Leak testing of the launcher confirmed pressure integrity allowing the ball valve to be opened and the BISEP™ deployed into the pipework towards the flow to be isolated. After performing validation tests on the BISEP™, STATS confirmed successful DB&B isolation and an isolation certificate was issued to the client. The pipework was then cut and removed from behind the BISEP™ with a clamshell cutter. In order to allow removal of the clamp and hot tap penetration from the system, STATS then installed a temporary launcher with a pre-installed 3’’ Tecno Plug™. To allow a tie-in point for the new valve and pipework, a mechanical flange was fitted to the cut pipework behind the Tecno Plug™. A valve and temporary launcher were then attached and strength pressuretested against the back of the Tecno Plug™ to confirm integrity of the new flange joints and mechanical flange. Two STATS technicians carried out the entire workscope within five days, including the cold cutting and hot tapping activities, while the system remained fully operational. STATS multi-disciplined technicians routinely perform complete workscopes including additional onsite machining services such as hot tapping, cold cutting or flange facing services, resulting in reduced costs for the operator. For more information please visit: www.statsgroup.com
Severn Glocon Group has strengthened its presence in the subsea oil and gas market with the acquisition of High Pressure High Temperature (HPHT) downhole tools company Calidus Engineering. Now renamed Severn Subsea Technologies Ltd, the company will provide research, development and test facilities to enhance Severn Glocon’s subsea valves capability. The acquisition enhances core capabilities to strengthen the Group’s global positioning in the subsea market, and builds on the acquisition of LB Bentley in 2012. It also increases the scope for new subsea systems developments based on LB Bentley’s valve technology. From its West Country technology facility, Calidus is receiving revenues from local and global clients in the oil and gas industry, as well as from the field of R&D. Severn Glocon Group is headquartered in the UK and employs 800 people worldwide. The firm won a Queen’s Award for Enterprise in International Trade in 2011 and the Group sales continue to grow at 50% in 2012 and 2013. For further information visit: www.severnglocon.co.uk www.the-eic.com
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October 2013
Events Diary
UK, Overseas & Training October 2013 1 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 2 Industry Overview: Fundamentals of Subsea Denmore Technologies, Aberdeen 3 Industry Overview: Fundamentals of Oil and Gas EIC Billingham 3 Industry Overview: Fundamentals of Subsea Systems ESD Simulation Training, EIC Houston 3 Industry Overview: Fundamentals of the Refining Process EIC Singapore 7 Management Course: Presentation Skills Made to Measure Training, EIC London 8 Business Presentation: Opportunities with RWE npower renewables Hallmark Hotel, Manchester 8 Management Course: Introduction to Social Media EIC Billingham 8 Management Course: Networking that Works British Council, EIC Singapore 10 Annual General Meeting and UK Shale Conference ReedSmith, London 10 Corporate Entertainment: EIC National Dinner Natural History Museum, London 10 Management Course: Certificate in Project Management Parallel Project Training, London 10 Technical Workshop: Introduction to Offshore & Subsea Valves BEL Valves, Newcastle 11 Corporate Entertainment: 4th Annual Sporting Clays Tournament American Shooting Center, Houston 15 Management Course: Introduction to Human Resources EIC London 16 Business Presentation: Opportunities with Engevix Rio de Janeiro 16 Management Course: Bribery Act 2010 EIC London 16 Technical Workshop: Introduction to FPSOs EIC Singapore 17 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Walsall 18 Management Course: Networking that Works EIC Singapore 22 Business Presentation: Opportunities in Canada EIC London 22 Management Course: Negotiation Skills EIC Singapore 22 Technical Workshop: Introduction to Fibre-Optic DAS OptaSense, Farnborough 23 Business Presentation: Opportunities in Canada Hallmark Hotel, Manchester 23 Business Presentation: Opportunities with ThyssenKrupp Yas Island Rotana, Abu Dhabi 23 Industry Overview: Fundamentals of Subsea Denmore Technologies, EIC Singapore 23 Sector-Based Forum: Upstream with Halliburton Aberdeen 24 Business Presentation: Opportunities in Canada Copthorne Hotel, Aberdeen 24 HSE Training: Introduction to Health and Safety RSA Engineering, Newcastle 29 Management Course: The Effective PA Inspirit Training, London 30 Corporate Entertainment: Rio Samba & Gas Rio de Janeiro 30 Industry Outlook: Understanding Local Content Roxtec, Rio de Janeiro November 2013 5 Industry Overview: Fundamentals of LNG eMJay LNG, EIC Aberdeen 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 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 Management Course: Key Account Management Change Creation, EIC London www.the-eic.com
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October 2013
Events Diary
Exhibitions & Delegations 2013
Status
7-11 October Overseas Delegation to Mexico 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
Sold Out Sold Out Sold Out Sold Out Sold Out Booking Now Booking Now Sold Out
2014 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 12-15 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 Booking Now Booking Now Booking Now Booking Now Register your Interest Sold Out Register your Interest Register your Interest 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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October 2013
EIC Overseas Exhibitions
Overseas Exhibitions The EIC will again be managing the UK National Pavilions at the exhibitions below. For more information please contact the Overseas Events team.
Offshore Northern Seas (ONS) 2014 Booking Now 25-28 August 2014 Stavanger, Norway TAP Funding: TBC ONS aims to serve as an international forum for communicating information on the petroleum industry in Norway. For almost 40 years, ONS has become a leading and authoritative meeting place in the world of oil and gas. ONS arranges a major international conference, exhibition and cultural festival every second year, providing a unique opportunity to combine business with networking. The first was held in 1974 which welcomed just 7,000 visitors. In August 2012 the event attracted nearly 60,000 visitors. This event provides an arena for discussing and presenting the political, economic and technological dimensions of international oil and gas at a very high level. During the past decade ONS has incorporated alternative and renewable energy into its portfolio alongside the exciting oil and gas sector. The EIC looks forward to hosting UK businesses within the UK Pavilion at ONS 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.
Rio Oil & Gas 2014 Booking Now 15-18 September 2014 Rio de Janeiro, Brazil TAP Funding: TBC The EIC is pleased to be returning to host the UK National Pavilion for another year at Rio Oil & Gas 2014. Since its launch in 1982, Rio Oil & Gas has grown to be one of the leading oil and gas exhibitions in Latin America. Rio Oil & Gas 2012 saw over 53,000 visitors from all over the world with 1,300 exhibitors filling the 39,500m2 exhibition area. The opportunities in Brazil within the oil and gas sectors are vast. With commitment to the market there is no doubt that UK companies, with the notable integrity and quality of British products and services, can contribute towards the efficiency and cost-effectiveness of Brazil’s oil and gas operations. Rio Oil & Gas is the perfect platform for UK companies to display their products and services to foreign and national companies.
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 5 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
TAP Funding The UKTI Tradeshow Access Programme (TAP) provides grant support for eligible SME firms to attend trade shows overseas. As an accredited trade association the EIC administers these grants for companies exhibiting within the UK Pavilion. For more information on how to apply and eligibility criteria please contact the overseas events team. For more information contact the overseas events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com
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October 2013
EIC Middle East News
Middle East News
Meanwhile, there continues to be a good take-up for our Overseas Delegation to Saudi Arabia and Qatar. Numbers are limited, so if you are interested in joining us where you will be able to secure a first-hand introduction to what is going on in both of these key markets, then please complete an application form that can be downloaded from our website by clicking on the events tab. Finally, we always reserve the last paragraph to acknowledge members who we have had the pleasure to meet since the last Monthly News but with 89 attendees at the Fish & Chip Supper plus the high number of contacts that we met at Offshore Europe, it is naturally difficult to mention everybody, so a collective greeting to all. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com
Office News
Once again over the last month, the world’s attention has been focussed on the Middle East region for all the wrong reasons. September’s Middle East News focussed on the troubles and unrest going on in Egypt at the time whilst for this month, everybody is speculating and second guessing the super powers as to how that situation will play out following the apparent use of chemical weapons by the Syrian regime. Consequently, everybody is on a bit of a knife edge wondering what the response might be when or if any military action is sanctioned by Western Governments. There is a whole mix of underlying themes with Russia and China still supporting the current government that also continues to receive support from its neighbour and regional ally, Iran. To predict at this stage, what sort of reaction there may be to a targeted strike, is anybody’s guess. Another element in the mix is Israel who is still technically at war with Syria. With all this going on, it can become difficult to realise that the region remains the world’s global presence for hydrocarbons through thick and thin and there is no better occasion to illustrate this point than looking at next month’s ADIPEC. The EIC is proud to be once again managing the UK Pavilion with 55 companies and organisations taking up space, which is an exceptional turn out considering that the decision to move this to an annual event which was originally received with some reticence from certain quarters within the industry at the time when it was first announced. We have confirmation of a UK minister visiting the event and we are currently in advanced discussions to host a reception for the UK Group and the local oil and gas business community at the British Embassy where a really strong sponsorship opportunity exists. Speaking of strong sponsorship opportunities, we have two for consideration. Our Golf Tournament has matured to be an excellent platform for our local members to network and meet with their peers as well as potential and existing customers within a very relaxed environment. The date is set for 20 February 2014 and we would like to hear from any interested parties to discuss all the possibilities for the day. The other concerns an event we are pleased to confirm for 10 December. Of all the events we have delivered over the last nine years, none has had the number of attendees as high as when we hosted Petrofac back in 2009. Four years on, we are pleased to host them once more when senior representatives will provide an update and overview of their current activities and given that they are consistently seen as the leading contractor in the region, this is once again, an event not to be missed so if you wish to be closely involved on this occasion, please do not hesitate to contact the office. Our event this month will take place in Abu Dhabi on 23 October when we will be hosting ThyssenKrupp (Uhde), technology and EPC contractor, who is deeply focussed on the petrochemical sector and we look forward to seeing you there.
Regional Comment
Daewoo wins US$709m order in Iraq’s Akkas gasfield Daewoo Engineering & Construction has won a US$709 million order to build a central processing facility in Iraq’s Akkas gasfield. The South Korean builder said in a regulatory filing that it plans to complete the facility by July 2017 under the deal made with a unit of South Korea’s state-run Korea Gas Corp (KOGAS). Saudi, Kuwait shelve Dorra gas field project It is understood that Saudi Arabia and Kuwait have shelved their project to develop the Dorra offshore gas field after disagreeing over how to share the gas back on land. Dorra has long been a bone of contention between Kuwait and Iran, which also lays claim to part of the field. Kuwait agreed with Riyadh in 2000 to jointly develop the field, but thirteen years on, little progress has been made and it has now been shelved indefinitely. Dewa invites bids for coal power plant Dubai Electricity and Water Authority (DEWA) has issued a request for tenders for the new clean coal power plant, as part of its efforts to diversify Dubai’s energy mix, and use new sources to generate electricity. This will produce 12% of Dubai’s total power output, according to the Dubai Integrated Energy Strategy 2030, formulated by the Dubai Supreme Council of Energy. The plant’s total production capacity will reach 1.2GW. Iraq shortlists firms to build US$18 billion oil pipeline In April, Iraq and Jordan signed an agreement to construct a 1,680km pipeline from Basra to Jordan’s Aqaba Port. It was agreed that the Iraqi government would finance the construction of the pipeline from Basra to Haditha. The Oil Ministry announced Iraq’s decision to short-list 12 international companies to build the country’s pipeline. The selected companies have been chosen from a set of 80 international companies, who submitted their credentials earlier this year. The State Company for Oil Projects (SCOPP) has asked the companies to submit their bids by the end of the year. The pipeline project will create over 10,000 jobs in Iraq and Jordan and will be operational by the end of 2017.
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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October 2013
EIC Connect Energy 2013
EIC Connect Energy 2013 12-13 November 2013 Manchester Central
The Nuclear Advanced Manufacturing Research Centre (NAMRC) will be available to advise UK SMEs about their ‘Fit for Nuclear’ programme at the event.
Delegate Bookings now open for EIC Connect Energy 2013
Delegate bookings are priced at just £275+VAT to EIC members if booked before 30 September. The price will rise to £325+VAT for bookings made after this date.
EIC Connect Energy this November encompasses a series of Supply Chain Briefings, a Conference and Exhibition covering global opportunities and updates on nuclear new build, gas and coal fired plants and renewable energy projects.
Delegate package includes: • Access to all supply chain presentations and conference; • Access to Exhibition showcasing 50 companies; • Opportunity to book at least ONE meeting with a speaker company (per delegate); • Light working lunch in the Networking Lounge; • Refreshments (tea, coffee, water) served throughout; • Event Brochure and Delegate List.
This is our key initiative where major operators and contractors showcase their international high value opportunities in the exhibition hall and help SMEs shape their business towards current and future industry needs in the conference.
Interested in Exhibiting? At the time of writing we have a limited number of 9 sq m stands available. These are priced at just £2,300+VAT and include 2 x delegate places, 2 x invitations to an exclusive evening reception and the opportunity to book up to 3 x one-2-one appointments with buyers.
Supply Chain Briefings are repeated twice on the same day to allow each delegate to attend all briefings. Speakers from Day One will then participate in one-2one meetings on day two and vice-versa.
Companies wishing to launch new products and/or showcase innovative technologies are urged to take one of the last remaining stands, especially those that offer the owners/operators new solutions for increasing their plant’s efficiency or reducing shut down times.
Presenting companies include: Alstom, AMEC, Centrica, Doosan Power, EDF, Iberdrola, Jacobs, Rosatom, Siemens with many more expected to confirm in the coming weeks.
To book your delegate place please visit: www.eic-connect.co.uk
The four Conference sessions will be on a first come, first served basis (maximum 120 people) and will take place just once.
To enquire about exhibiting or to find out 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 Web www.eic-connect.co.uk
Conference Sessions include: • Nuclear New Build: An update on opportunities and timescales; • Power Projects: An update on opportunities and timescales; • Renewable Energy: What’s in it for SMEs? • Partner for New Build Delivery: Major Power Projects. Companies are advised to send at least two delegates to allow them to share the supply chain briefings, conference sessions, meet exhibitors, network with delegates and arrange one-2-one appointments across the two days. UKTI Commercial Officers will also be available for one2-one meetings from the UAE, Brazil, Czech Republic, India, Japan, South Korea and Saudi Arabia. www.the-eic.com
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October 2013
Offshore Europe 2013 Record attendance levels at SPE Offshore Europe set a new benchmark, making it the largest exhibition and conference in the event’s history. The EIC Members Pavilion, once again the single largest exhibitor at the show, brought together 42 leading companies, all with the common goal of exporting highly innovative solutions and services to the oil and gas industry. The EIC Group Pavilion was a great success, with excellent feedback from exhibiting companies. In particular, exhibitors commented on the high level of organisation; the group branding and the footfall it attracted; and the EIC lounge which offered meeting space and refreshments.
As many of our group exhibitors will be aware, space at the next Offshore Europe which will take place on 8-11 September 2015 is expected to be snapped up quickly. Reed Exhibitions give all independent exhibitors (including the EIC) until the end of this year to confirm their interest in stand space. The EIC has registered its intention to expand their existing location in Hall 3, in response to several requests from existing group exhibitors that they will require a bigger space next time.
Interest in the Group came from far and wide, including high level delegations from Mexico and Kazakhstan (pictured above) which were kindly arranged by UKTI. A number of Scottish and UK Ministers attended this year’s event including Lord Green, UK Minister for Trade & Investment and Sir Robert Smith MP – West Aberdeenshire and Kincardine who both visited the EIC Pavilion and talked to members.
Any member company wishing to register their interest to receive the stand booking pack as soon as it’s released in 2014 should please email: charmaine.atkinson@the-eic.com
The EIC was also proud to celebrate its 70th Anniversary at the show and hosted a Drinks Reception for its members in the group lounge to commemorate the occasion. Offshore Europe 2013 came at a time of growing optimism in the offshore European oil and gas sector, reflected by the 22 operating companies who took stands this year, the largest representation of operators ever to take part. Chancellor George Osborne opened the conference, leading the Plenary Session, where he set out a path for North Sea oil and gas recovery to ‘the 2050s’. In his speech, he hailed the ingenuity of the UK oil and gas industry, and stated the Government’s commitment to play its part in delivering investment. www.the-eic.com
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October 2013
EIC UK News
News from our UK offices
EIC Shale Conference and AGM What is the UK Shale Potential? 10 October 2013 ReedSmith, London Recent months have seen a number of significant activities in the shale gas industry, including increased support from the UK Government with the announcement of a new licensing round in 2014 and the unveiling of a package of reforms designed to assist exploration. The government has also pledged to issue new guidelines to streamline the planning and permitting regime for shale gas developments and is undertaking a consultation on tax incentives to encourage exploration of shale gas areas. Centrica’s US$40 million, 25% acquisition of the Bowland exploration licence in Lancashire from Cuadrilla and AJ Lucas has also bolstered confidence in the UK shale industry. To date, Caudrilla has drilled three exploration wells at its facility in Westby, confirming the shale formation thickness and a potential 200 Tcf of gas. Although the UK’s shale industry is still relatively immature, it has the potential to contribute to the UK’s energy security and increase domestic investment and growth. The EIC Shale Conference will focus on the lessons the UK can learn from US developments and where the opportunities will lie for the UK supply chain. Confirmed speakers include: Dennis Creech, Vice President, Global Supply Chain, Hess Corporation; Richard Salter, Shale Exploration and Appraisal Manager, Unconventional Resource Group, Schlumberger Ltd; Dan Byles MP, AllParty Parliamentary Group for Unconventional Oil and Gas; Bahzad Ayoub, Sector Analyst, Downstream & Unconventional, EIC. Contact: daisy.crisp@the-eic.com
Forthcoming Events
Business Presentation: Opportunities with RWE npower renewables 8 October 2013 The Hallmark Hotel, Manchester RWE npower renewables is part of RWE Innogy, one of Europe’s largest and fastest-growing renewable energy companies. The company is a leading player in the drive to generate electricity from cleaner, inexhaustible energy sources – with almost 30 operational wind farms across the UK to date. The company has a wide range of offshore, onshore, hydro and biomass activities. Currently there are 10 onshore wind farms in operation across the North of England with a further 11 either under construction or in development. RWE npower renewables takes its commitment to the regions in which it operates very seriously and has found that local firms are often best placed to secure contracts. The business community is also a significant stakeholder in the development process and the company aims to work hard to build positive sustainable relationships throughout the entire UK supply chain. Contact: jennifer.hole@the-eic.com
Northern Region Annual General Meeting 8 October 2013 The Hallmark Hotel, Manchester
Would you like to represent your company on the Northern Region Committee and help shape the future direction of the EIC within the region? If your HQ or regional branch is in the Northern Region, you qualify to nominate yourself or a colleague for a place on our regional committee. The Committee meets four times a year (which includes the AGM) at various locations across the region, with representation from a wide range of disciplines. Being part of this group provides you with the opportunity to represent the views of the EIC members both in the region and as a whole along with suggesting topics and speakers for presentations and networking events. Discussing market trends and industry news is also part of the meeting along with identifying where and how the regional programme can be enhanced to ensure the needs of all the members are being met. Being part of the Committee provides an excellent platform to raise both your personal and company profile, increasing visibility across the EIC membership and the industry as a whole.
Corporate Entertainment: EIC National Dinner 10 October 2013 Natural History Museum, London Headline Sponsor: LV Shipping Printing Sponsor: I-Paye Pre-Drinks Reception Sponsor: Petrolic Consultants Ltd We now have only 2 tables remaining. Do not miss out on the opportunity to network with key figures from the oil and gas, power and renewables markets in the UK. The winner of the EIC Award for Supply Chain Excellence will also be revealed during the course of the evening. Contact: daisy.crisp@the-eic.com EIC Roadshow: Opportunities in Canada 22 October 2013 London 23 October 2013 Manchester 24 October 2013 Aberdeen A delegation of high profile speakers from Canada’s EPC contractors and operators will join the EIC to present the opportunities available to the UK supply chain on their projects. They will detail their activities in the region and how you can become involved. One-2-one meetings will also be available to book with some of the speakers and the EIC. The oil and gas leads from UKTI in Canada and the Canadian High Commission will also be on hand to discuss how they can help UK Plc understand whether Canada is an appropriate market for you. Contact: daisy.crisp@the-eic.com
If you wish to be considered for a place on the Northern Region Committee please register your interest by contacting Helen Doona, Manager, Northern Region: Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com www.the-eic.com
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October 2013
EIC UK News Business Presentation: Opportunities with Odfjell Drilling 26 November 2013 Hilton Treetops, Aberdeen Odfjell Drilling is a privately-owned international drilling, well service and engineering company with 3,500 employees. Odfjell Drilling operates in ultra-deep water and harsh environment mobile offshore units in the UK, Norway and internationally. The speakers are Stuart Martin, VP Engineering & Projects and Gordon Noble, Procurement & Logistics Manager. Topics 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 e.g. FPAL etc) and key contacts. Contact: leeann.stewart@the-eic.com
Business Presentation: Decommissioning Opportunities with CNR – Murchison November 2013 TBC Hilton Treetops, Aberdeen Contact: leeann.stewart@the-eic.com Sector-Based Forum: Refining & Petrochemicals November 2013 TBC EIC Conference Suite, London Contact: daisy.crisp@the-eic.com Business Presentation: Opportunities with GDF SUEZ 5 December 2013 Hilton Treetops, 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. GDF SUEZ E&P UK Ltd is rapidly becoming one of the UK’s leading operators and duty-holders, with a reputation for safe, responsible exploration and production. The speakers are: Rob Buchan, Aberdeen General Manager and Martin Bruce, Manager for Supply Chain & Procurement. Topics 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 e.g. FPAL etc) and key contacts. Contact: leeann.stewart@the-eic.com
Sector-Based Forum: Carbon Capture & Storage 26 November 2013 EIC Conference Suite, London The EIC Sector-Based Forums provide a balanced picture of current sector activities and are designed to aid EIC members understand the full range of business opportunities, technical issues, technological advancements and a chance to exchange ideas with other key individuals in their sector. At this CCS Forum we will cover advances in technology and what impact this will have on CCS projects and SMEs. Also on the agenda is an international focus looking at China, considering the opportunities for the UK supply chain. Contact: jennifer.hole@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 which provides a central location which is an ideal base to reach 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 would house one person comfortably. 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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October 2013
EIC Asia Pacific News
Asia Pacific News
Management Course
Negotiation Skills 22 October 2013 EIC Singapore For those who need an introduction to professional negotiating, this one-day workshop will introduce the skills required to take part in successful negotiations. With the use of case studies, real-life experience and simulations, it also introduces a systematic approach to preparing and conducting negotiations.
Office News
Since the installation of the video conferencing facility in our office, we have conducted two separate presentations with SapuraKencana Petroleum and PTSC Mechanical & Construction respectively. 12 members were present at the video discussion with SapuraKencana Petroleum on 22 August. The group met Mr Azmi Ismail, Senior Vice President, Corporate Supply Chain and Ms Mimi Nazila Nasharuddin, Head, Corporate Supply Chain, who shared with us their current activities and the required procedures to be on SapuraKencana’s vendors list. On 12 September, Mr Khai Le, Deputy Team Leader, Marketing Team, Business Development, PTSC Mechanical & Construction presented via video to another 12 members on the current onshore and offshore projects PTSC Mechanical & Construction is involved in. From the two sessions we have received positive feedback on the value and usefulness of the new video conferencing facility in the Singapore office.
Industry Overview
Fundamentals of Subsea 23 October 2013 Denmore Technologies Ltd, EIC Singapore This is another new training course with Denmore Technologies Ltd. It will be especially beneficial for those operating companies or supplier and service organisations who are new to the oil and gas industry and have not received any formal training or those transferring to the subsea sector. This one-day course will provide a basic understanding of subsea oil and gas production.
Forthcoming Events Industry Overview
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
Fundamentals of the Refining Process 3 October 2013 EIC Singapore The course, with KBC Advanced Technologies, will enable attendees to gain an insight into the terms, business concepts, technology and design philosophy, key processes and future technologies and challenges in the refining industry.
Regional Comment
Technical Workshop
Potential mega refinery for Vietnam Thailand’s PTT has started working on a feasibility study for a project to build a mega oil refinery in Vietnam. The proposed 660,000 bbl/d refinery, with a price tag of US$30 billion would be built in the central coastal province of Binh Dinh. Targeted to be operational from 2020, the refinery would produce 33 million tonnes per year of oil and petrochemical products, 50% of which would be sold in Vietnam with the rest for export. PTT has contracted McKinsey, Foster Wheeler and IHS as its advisors for the project.
Management Course
Petronas to procure newbuild LNG ships As part of its strategy to optimise the value of its liquefied natural gas business, Malaysia’s Petronas has decided to directly procure newbuild LNG ships. The move will allow Petronas to have direct access to LNG shipping capacity at the lowest possible cost. MISC Berhad – a subsidiary of Petronas – will be engaged to provide project management and technical consultancy services for the construction of the new LNG ships.
Introduction to FPSOs 16 October 2013 EIC Singapore This is a new course in Singapore with Denmore Technologies Ltd. It is suitable for those new to the industry or non-technicals who would like an overview of the nature and purpose of floating production, storage and offtake systems (FPSOs).
Networking that Works 18 October 2013 EIC Singapore In conjunction with the British Council, we are organising a half-day workshop on networking. This course will suit any industry professional or individuals who want to become confident and effective networkers. Through the techniques introduced, various discussions, interactive tasks and role-plays, this enriching workshop will increase confidence in a variety of networking situations and allow attendees to be able to build a mutually beneficial network of contacts.
Pertamina ties up with Chinese firms on EOR projects PT Pertamina has signed a co-operation agreement with two Chinese firms – Daqing Oilfield Limited and Geo Corporation Limited – to carry out enhanced oil recovery projects in Pertamina’s existing oil wells. The company’s production could be increased by 200,000 bbl/d if the EOR programme is implemented at its aging wells.
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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October 2013
EIC China News
China News
ExxonMobil and CNPC team up for Changdong ExxonMobil has signed a contract with China National Petroleum Corporation (CNPC) to jointly study the Changdong natural gas block in north west China’s Ordos Basin. CNPC said the contract was signed during the visit of ExxonMobil’s Senior Vice President Mark Albers to Beijing in August. The block is located in the east of Shell’s Changbei tight gas block. While there is uncertainty over the size of the Changdong block, the acreage is likely to be an unconventional gas play, be it tight gas or shale gas. Both companies will later decide whether to turn the current agreement into a production-sharing contract to go ahead with exploration, during which ExxonMobil would be responsible for all the risks. CNPC would be entitled to farm in for a 51% working interest should both sides decide to go for commercial development.
Regional Comment
CNOOC signs PSC with Shell China National Offshore Oil Corporation (CNOOC) has signed a Production Sharing Contract (PSC) with Shell China Exploration and Production Company Ltd for Block 35/10 in the Yinggehai Basin in the South China Sea. Block 35/10 covers a total area of 3,427 square kilometres with a water depth of 80-110 metres. According to the terms of the PSC, Shell will conduct a 3D seismic data survey and may drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Shell. This is the third offshore block Shell has taken on in the South China Sea in the last 12 months. In July 2012, the company signed a similar agreement with CNOOC for Blocks 62/02 and 62/17, also in the Yinggehai Basin, marking Shell’s return to offshore China after a decade. In all three blocks Shell pays 100% of the exploration costs but CNOOC can take up to 51% of equity interest if commercial discoveries are made.
Foster Wheeler forms JV with CEFOC Foster Wheeler has signed an equity purchase agreement with CEFOC (The Fourth Construction Company Ltd of China Electronics System Engineering) to purchase a 49% share of CEFOC’s subsidiary design institute called PECHDI. The co-owned design institute is now a joint venture named Foster Wheeler (Hebei) Engineering Design Company Limited, through which Foster Wheeler Global E&C Group and CEFOC will execute business in China. Foster Wheeler is fully licensed to engineer, procure and construct process facilities in China under single contracts, and it possesses Class A design licenses in the chemical, petrochemical and pharmaceutical industry. Foster Wheeler has management control of the new JV company, whose management centre is based in Foster Wheeler’s Shanghai office. The existing PECHDI offices in Shijiazhuang, Beijing, Tianjin and Suzhou have become part of the new JV company; these are wellestablished operations that have served clients in the refining, chemical, petrochemical and pharmaceutical sectors for 60 years. The new JV company also includes Foster Wheeler’s existing Shanghai operations. The combination of PECHDI resources and Foster Wheeler’s Shanghai operations immediately creates a workforce of more than 600 qualified technical personnel.
CNOOC signs PSC with BP CNOOC has signed a Production Sharing Contract (PSC) with BP for deepwater Block 54/11 located in the Pearl River Mouth Basin in the South China Sea. The 54/11 Block covers a total area of 4,586 square kilometres with water depths of 370-2,300 metres. It is close to BP’s existing deepwater interests in Blocks 43/11 and 42/05. According to the terms of the contract, all expenditures incurred during the exploration period will be borne by BP. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block. CNOOC will act as the operator. This contract is the 200th PSC between CNOOC and foreign partners since the company opened its offshore market in the late 1980s. CNOOC’s new discoveries in Bohai Bay CNOOC has announced that the company has made two new exploration discoveries, Bozhong 8-4 and Kenli 10-4 in Bohai. Bozhong 8-4 is located in the west slope of Bozhong Sag in Bohai Bay, with an average water depth of 28 metres. The discovery well Bozhong 8-4-4 was drilled and completed at a depth of 1,962 metres and encountered oil pay zones and gas reservoirs with a total thickness of 50 metres and 11 metres respectively. During the test period, the oil production of the well was around 660 barrels per day. Kenli 10-4 is located in the south slope of Laizhou Bay Sag in Bohai, with an average water depth of 15 metres. The discovery well Kenli 10-4-1 was drilled and completed at a depth of 2,395 metres and encountered oil pay zones with a total thickness of 45 metres. During the test period, the oil production of the well was around 2,800 barrels per day.
Sinopec completes shale well Sinopec has completed the drilling of an appraisal shale gas well in Fuling off south west China’s Chongqing. With a depth of 2,615 metres, the peripheral extension well, Jiaoye-2, would help assess the shale gas and oil reserves in Jiaoshiba block and pave the way for commercial development. Sinopec Exploration Southern Company started the drilling in June and handed over the well to Sinopec Jianhan Oilfield Company for further development. Sinopec encountered 31 layers of oil and gas indication at a depth of 182 metres. 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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October 2013
EIC North and Central America News
North and Central America News Office News
Regional Comment
BOEM lease sale attracts US$144m in bids The Bureau of Ocean Energy Management’s Lease Sale 233 was recently held for the western Gulf of Mexico. The sale attracted US$144m in bids, and generated US$102m in high bids. The sale offered more than 21 million acres off the coast of Texas, for oil and gas development. 12 companies submitted bids for 53 of the 3,860 blocks, mostly on deepwater blocks. BOEM reports that the leases could produce up to 200 million barrels of oil and 938 billion cubic feet of natural gas. The highest bidder was ConocoPhillips, offering US$30m for Alaminos Canyon Block 475.
We are pleased to announce the addition of FoundOcean to our group of member companies that have an office with us. We welcomed Amir Mirza this month and look forward to working with him as he and his company embark on new opportunities within the region. We are also pleased that one of our member companies has moved into their own facility in Houston after being with us for just under a year. We congratulate Langley Alloys on their move and wish them the best as they continue to grow and expand in the region. To date we have 6 vacant offices available, 3 external offices and 3 internal. If you are considering moving into our region and are in need of office space, please contact us directly to discuss our services in further detail. We will soon be hosting an EIC Overseas Delegation to Mexico in conjunction with UKTI this month. The 11-person delegation will be held around Energy Day 2013 in Mexico City and will host several group meetings with key local players, as well as incorporating briefing meetings, and the opportunity to meet with local companies in Mexico City, Villahermosa and Ciudad Del Carmen. We will begin planning our next delegation to Canada and have a proposed date of June 2014. We have a great programme of training events put together for the rest of the year. We are very busy planning our 2014 schedule, which is coming together nicely. Please monitor our website and the regional emails for details on all of our upcoming events.
Enhanced oil recovery programme in Cuba In Cuba, Russian oil company Zarubezhneft has launched an enhanced oil recovery programme in the onshore deposit of Boca de Jaruco. The company signed a 25 year agreement with Cubapetroleo (Cupet) in 2011 for the EOR project, and further exploration. The purpose is to recover oil from the previously-exploited field by means of secondary methods. The current drill layer E1 is the first of two four-year pilot projects; the second pilot programme consists of three planned wells in layer M. The results of the first pilot will determine the choice of EOR technology. They will first use a steam technology that was successful in Russia. Zarubezhneft also plans to resume offshore drilling in Cuba next year in a second stage. Pemex to explore for shale gas, oil and crude Mexico’s national oil company Pemex has announced that before the end of the year it will form a new company to explore and produce shale gas and shale oil, as well as deepwater crude, in the United States. The country hopes to gain much-needed experience with complicated drilling techniques that could be useful in turning around declining production within its own borders. In particular the country would like to exploit the geology that it shares with its neighbouring country. Hand in hand with this, Mexico has introduced steps to open its own oil and gas resources to foreign investment. President Peña Nieto recently announced his reform package, which would allow joint ventures between the government and international partners to aid in boosting production of Mexico’s hydrocarbon resources. The programme would allow for profit-sharing arrangements, but not necessarily production-sharing. The objective of the president’s policy includes increasing Mexican oil production from its current rate of 2.5m bbl/d to 3m bbl/d in 2018 and 3.5m bbl/d by 2025. The move first requires a constitutional amendment. On the US side, the Export-Import Bank approved US$500m in credit to Pemex to go towards the purchasing of American drilling equipment and services. Many Texan companies are expected to benefit from this financing.
Forthcoming Events Management Course
Technical Report Writing 12 November 2013 Rothera Group Ltd, EIC Houston
Management Course
How to Write Winning Bids 13 November 2013 Rothera Group Ltd, EIC Houston
Industry Overview
Fundamentals of LNG 12 December 2013 eMJay LNG Ltd, EIC Houston For additional information about the EIC Houston office, 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
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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October 2013
EIC South America News
South America News
Technical Workshop
Introduction to Control and Choke Valves 7 November 2013 Koso Kent Introl Ltd, Rio de Janeiro
Office News
EIC Rio has two offices available to rent. The fully furnished rooms are centrally located in Rio and are 16m² fitting from one to four people and 19m² fitting from one to five people. If you are interested in renting a serviced room at the EIC Rio office please contact: rio@the-eic.com
Technical Workshop Introduction to FPSOs 12 November 2013 Rio de Janeiro
Industry Overview Fundamentals of Subsea 28 November 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
Libra auction on 21 October Brazil’s National Petroleum Agency (ANP) has confirmed that the auction of the massive Libra field in the presalt area of the Santos Basin will be auctioned on 21 October. The field is estimated to contain 12 billion barrels of oil in place and is located 183km off the coast of Rio de Janeiro. According to ANP, Libra will require an investment of R$400 billion (US$170 billion) over its 35 year concession period.
On the last day of July we had the pleasure of hosting our first Business Presentation with a lunch format with speakers Mr César Gama, Schlumberger’s BRZ Manufacturing & Sourcing Manager and Mr Jason Peh, Jurong’s Procurement Manager. The event had 36 attendees.
Forthcoming Events
The EIC is organising the UK Pavilion at OTC Brasil for the first time and to engage UK companies with the local industry several events are taking place starting with a UKTI reception on Monday 28 October, followed by Understanding Local Content, a whisky tasting reception during the exhibition and a corporate networking event named Rio Samba & Gas, held at Rio Scenarium – a unique venue in town. The week before OTC, we are holding a Business Lunch with Engevix, the Brazilian EPC contractor who are building eight FPSO hulls. In November we are re-running both the Control Valves and the FPSO courses and launching the new Industry Overview: Fundamentals of Subsea. The Overseas Delegation to Venezuela is scheduled for 24-29 November. For more details please visit: www.the-eic.com/events
Brazil is a regional leader in renewables According to the latest Climatescope ranking prepared by Bloomberg New Energy Finance (BNEF) and the Multilateral Investment Fund of the Inter-American Development Bank (IDB), Brazil is the most attractive country in Latin America for investment in the renewables sector. The ranking includes 26 countries and scores their capacity to foster low-carbon alternatives in the energy sector. Aspects considered by the ranking include sector policy, market growth, price attractiveness, investments and financing and supply chain, among others. Although a full report will only be released on 3 October, BNEF has anticipated that Chile and Nicaragua make the Top 3 list alongside Brazil. According to data compiled by the report, investment in projects in the renewables sector in Brazil amounted to US$443 million in the first half of 2013.
Business Presentation: Opportunities with Engevix 16 October 2013 Rio de Janeiro
Colombia and Venezuela hold energy integration talks A bi-national power committee created by the two countries to foster energy integration held its first meeting on 3 September. Officials agreed to create conditions for the installation of interconnection points along the border and power commercialisation. The meeting was held on the same day that a massive blackout hit Venezuela, leaving Caracas and 11 states without electricity. Government authorities have said a fault in a major transmission line caused the problem.
Industry Outlook: Understanding Local Content 30 October 2013 Roxtec Ltd, Rio de Janeiro Corporate Entertainment: Rio Samba & Gas and Whiskey Reception at OTC Brasil 30 October 2013 Rio de Janeiro
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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October 2013
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