EIC Monthly News October 2014 by Energy Industries Council

EIC Monthly News October 2014

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The EIC Chief Executive

The Chief Executive Welcome to the October edition of the Monthly News and I am delighted to announce that the EIC’s office in Kuala Lumpur is now officially open, and ready to support members with business development activities across Asia Pacific, Australasia, China and the Indian Sub-Continent. Recognising the importance of this region the EIC’s office in Singapore was opened in 1999 and has successfully assisted UK companies to enter and win business in the region over the last 14 years. With nearly 50% of the EIC’s members already trading in the region, we made the strategic decision to move the EIC’s Asia Pacific office from Singapore to KL aligning with the growth and increasing levels of activity as Kuala Lumpur establishes itself as an energy hub. Azman Nasir, Head of Asia Pacific, is already working with EIC members and has commenced a programme of business, training and networking events, the first being held on 24 September 2014 – An Introduction to FPSOs. This was swiftly followed by a Business Presentation with Petronas on 7 October. Azman and the region are supported by Regional Analyst, Zuraina Vermeulen who took up her post at the start of September and Dhena Doraisamy the Office & Events Manager who will be joining the team in November. EIC LaunchPad is also available in the Kuala Lumpur office with hotdesks and virtual offices providing exclusive local identity with a local address. Additionally there are two serviced offices that are a low risk and cost effective market entry solution and a spacious and well equipped meeting room. To find out more and to connect with the KL office and staff please email: azman.nasir@the-eic.com The new look Autumn 2014 edition of Energy Focus was launched at another very successful Rio Oil & Gas Show which took place in September hosting 32 companies in the UK Pavilion and proving once again that the show provides a key platform for doing business in Brazil. In the latest edition we meet Humphrey Cadoux-Hudson, EDF Energy’s Nuclear New Build Managing Director, to discuss the company’s multi-billion pound revitalisation of the UK’s nuclear industry. There is also news on oil and gas activity in the Middle East, with features on both Iraq and Afghanistan’s plans for oil and gas production in the current political climate, and a look at the growing trend for EOR projects across the Middle East. Following the completion of the Energy Bill’s passage into law in March 2014, Energy Focus also features an overview of the UK Capacity Market; investment in UK transmission and distribution capability; the liberalisation of the Russian LNG market; and the emergence of Chinese shipyards. If you have not received a copy in the post, you can pick up a copy in any one of our UK or overseas offices or view the digital edition at: http://eic.excelpublishing.co.uk Here in the UK, I am looking forward to EIC Connect Oil & Gas 2014, which returns to Manchester Central on 25-26 November where we are expecting over 1,000 delegates to attend this year. I am pleased to announce that Lord Livingston, Minister for Trade & Investment will deliver the Government’s key message, alongside Matthias Bichsel, Executive Director at Shell and Robin Watson, CEO of Wood Group PSN who will give the operator and contractor’s global 10 year outlook for SMEs in the opening plenary session. The following two day programme will feature sector based conference sessions with high level speakers from across the operator and contractor community to help shape longer term plans and will be supplemented by question time sessions on pressing issues that impact on the supply chain. A series of supply chain briefings from AMEC, Centrica, ENI, Samsung, Grupo R (Mexico) and Bechtel will take place in the exhibition hall, giving an insight into their global activities and upcoming requirements. These and other major companies will meet with suppliers in the one-2-one zone, including ConocoPhillips, Pemex, Foster Wheeler and Technip, all seeking out new solutions and technologies from UK companies. EIC Members can book their delegate place online and I look forward to seeing you all at the EIC’s flagship international supply chain event of the year! Claire Miller, Chief Executive www.the-eic.com

Contents The Chief Executive

Sector Analysis

EIC Monitor

Training Services

New Members

Member News

Events Diary

Overseas Events

National Events

UK News

Middle East News

Asia Pacific News

North America News

South America News

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October 2014

EIC Sector Analysis

Sector Analysis

Russia’s nuclear industry becomes a global power Russia, home to the first operational nuclear power plant, is now the fourth largest generator of nuclear electricity in the world. It is investing heavily in developing its state-run nuclear energy industry with fast breeder reactor technology, and improving the efficiency of existing nuclear facilities to increase nuclear power generation in the country. It has also made it a national priority to be a global leader in the export of its own nuclear technology and expertise. Today, there are 33 nuclear reactors in Russia with an installed capacity of 25.2GW, with 10 reactors currently under construction. Russia has set out plans to increase nuclear power generation in the country, with objectives to add 30.5GW of new nuclear energy capacity by the year 2020, and aims to generate 50% of the nation’s electricity from nuclear power by 2050. Domestic nuclear power is booming. Yet, an area of Russia’s nuclear industry that has seen remarkable growth in recent years, is demand for its nuclear expertise abroad. In fact, the market has become so big, the government is dedicating US$55 billion to grow its export market. Rosatom, the state nuclear corporation, has concluded a record number of transactions this year for the construction of nuclear power plants. It is responsible for building 28 out of the 68 reactors currently under construction around the globe. Sergei Kirienko, Director General, Rosatom, said in July that the corporation had increased the value of its foreign contracts by 60% to US$66.5 billion (£40.6bn) in the past two years alone. This expansion comes at a time when Germany is abandoning nuclear power completely, the US industry is struggling and Japan is contemplating its post-Fukushima nuclear intentions. Rosatom has signed agreements to build the first nuclear power plants in Bangladesh, Jordan and Vietnam, and is expanding its presence in India and China with the construction of new units. The company is also negotiating an agreement on co-operation with South Africa. Other countries which Russia has signed agreements with on nuclear power this year include Argentina, Hungary, Algeria and Kazakhstan. A crucial quality that Russian nuclear companies can offer to a potential customer is the overall package proposal. The Russians invite companies into the supply chain for new nuclear projects, but also offer the new partner a huge range of options for development of the entire spectrum of the nuclear fuel cycle. These range from the establishment of research and education centres to a reactor and an enterprise for nuclear fuel production. In addition, Russian companies can provide up to 85% financing for nuclear power plant projects through export credits. www.the-eic.com

However, many of the world’s nuclear experts are concerned that Russia is expanding too fast. They worry that Rosatom is willing to do business with any nation, which could lead to the proliferation of nuclear material or know-how. Rosatom has had discussions with countries that the West considers dictatorships, such as Myanmar (Burma) and Belarus. And this July the president of Iran – a country mired in fresh US sanctions over its nuclear ambitions – visited the Kremlin to ask Putin for more reactors beyond the one Russia has already built. Kirill Komarov, a Rosatom executive tasked with overseas expansion, told reporters at a press conference in June 2012: “There is no country in which we will not be interested to build a plant.” The growing tensions in Ukraine and the recent sanctions imposed on Russia will certainly have an impact on Russia’s ability to do business abroad, but there can be no doubt that many countries around the world, desperate for a reliable and long term energy supply, will seek Russia’s expertise in the nuclear industry.

Nuclear power is important for Russia’s own continued economic development. Keeping up with the latest technologies in the sector keeps thousands of highly qualified Russian scientists employed. It is also Russia’s best chance to develop renewable sources of energy. The country is securing its standing as a global nuclear energy leader through the development of advanced technologies and the continued export of nuclear technology including nuclear fuel. With billions of pounds allocated for future investment and an increasing number of countries around the world seeking its knowledge in the sector, Russia’s nuclear industry is undoubtedly becoming a global superpower. Oliver Barnes Sector Analyst (Power & Nuclear) Tel +44 (0)20 7091 8641 Email oliver.barnes@the-eic.com 3

October 2014

EIC Monitor

Power sector sustains healthy contracting levels Thermal, Nuclear and Biomass Awards

The latest EIC Monitor report shows a sustained and healthy level of contracting activity across power generation sectors in Q2 2014, with only a small decrease in the number of major contract awards made in the last quarter. The number of major contract awards in the power industry has remained steady during the last quarter (Q2: Apr-Jun 2014) after a marked dip in the figures in Q4 2013. In the last quarter, the number of wind turbine supply contracts in the UK has decreased a significant 64% on the Q1 2014 figures, but the number of major contracts (EPC, OEM Supply and PMC) awarded globally across thermal, nuclear and biomass developments has only dropped 1% since Q1 2014.

In Q2 2014, a total of 73 major contracts were awarded across 45 thermal, nuclear and biomass developments, decreasing just over 1% from 74 awards in Q1 2014, and over 2% from 75 contract awards in Q2 2013. A total of 55 EPC contracts, 17 OEM Supply contracts and one PMC contract were awarded.

UK Wind Turbine Contracts in Q2 2014

In Q2 2014, a total of four wind turbine supply contracts were awarded for onshore wind developments, decreasing 64% from 11 awards in Q1 2014, and decreasing 60% from 10 contracts in Q2 2013. A total of two contracts were awarded in England and two in Scotland.

EPC Activity The transmission and distribution sector dominated EPC contracting activity on global power projects in Q2 2014, accounting for almost half of the contracts awarded (26). The majority of these were in Qatar where 14 contracts were awarded on the US$4.6 billion Qatar Transmission Programme (Phase 11). ABB, Alstom, Elsewedy Cables, Energoprojekt Entel, ETA Star Intl, Galfar al Misnad, Larsen & Toubro, LS Cable, Mott MacDonald, NCC, Prysmian Cables, Siemens and Taihan Electric Wire have all secured EPC contracts for the first stage of work, which will include the commissioning of 32 substations, the laying of over 948km of cables and the removal of nearly 43km of overhead lines. In the UK, there were four EPC contracts awarded on SHE Transmission’s US$1.5 billion Scotland Transmission Line Upgrade project which involves the reinforcement and extension of the high voltage transmission system in order to allow the connection of renewable assets. AMEC, Babcock Intl, Balfour Beatty and MSVE Transmission have all secured EPC contracts for work on the project, with Balfour Beatty being allocated three schemes within the framework: the Foyers to Knocknaegal 275kV line, the Dounreay to Myster 275kV/132kV line and the Dounreay to Gills Bay 132kV. EPC contracts were also awarded on transmission and distribution projects in Argentina, Canada, Costa Rica, Germany, Slovakia and the US. The rapid rise in plans for gas-fired power generation in the US continues, as utilities rush to take advantage of the availability of cheap gas feedstock from domestic shale production. Seven out of the eight EPC contracts awarded in the US in Q2 2014 were on gas-fired power projects across the US shale corridor, which spans states from Wisconsin in the north to Louisiana in the south.

Senvion, formerly REpower Systems, secured two of the four contracts, both for projects in England. The turbine manufacturer will supply five MM82 2MW turbines to Bernard Matthew and Redeven Energy’s Upper Holton wind farm in Halesworth, Suffolk, and three 3.4MW turbines to Coronation Power and InfraRed Capital Partners’ Reaps Moss wind farm in Bacup, Lancashire. Both wind farms are scheduled to start generating power in 2015. Scotland will play host to the larger onshore wind contracts, with two wind turbine supply contracts awarded in Q2 2014, totalling a capacity of 58MW. The largest onshore turbine supply award this quarter was for the Dungavel wind farm near Strathaven, Lanarkshire, which will have a total capacity of 30MW. Developer John Laing has awarded a contract to Vestas to supply 13 turbines with capacities between 2MW and 2.5MW. Construction is due to start in 2014, with full operation scheduled for 2015. In Morayshire, developer Muirden Energy has awarded Enercon a contract to supply 12 2.3MW E-70 turbines for its Hill of Glaschye wind farm, located south of Forres. www.the-eic.com

October 2014

EIC Monitor The largest is Alliant Energy’s Marshalltown Generating Station in Marshall County, Iowa, where KBR has been awarded an EPC contract to build the 650MW CCGT plant. In neighbouring Wisconsin, WE Energies Power has appointed URS to convert its Valley Power coal-fired plant in Milwaukee into a natural gas-fired plant in order to comply with new federal pollution policies. To the east, CB&I has been awarded an EPC contract to build AES Corporation’s 671MW Martinsville CCGT station in Martinsville, Indiana, while Old Dominion has awarded White Oak Power Constructors an EPC contract for its 1GW Wildcat Point CCGT facility in Cecil County, Maryland. In Oklahoma, Black & Veatch has been awarded EPC work for the Grand River Dam Authority’s Chouteau CCGT plant near Chouteau. The project will feature a 328MW gas turbine and the unit will replace an old coal-fired unit at the Grand River Energy Center. In neighbouring New Mexico, PNM Resources has awarded Wellhead Construction an EPC contract to build its La Luz Energy Center; a natural gas power plant south-west of Belen. Finally, in the Gulf state of Louisiana, Robins & Morton has been awarded an EPC contract to build Louisiana Energy & Power Authority’s 64MW Morgan City CCGT plant. Elsewhere, the ‘dash for gas’ in Saudi Arabia has also fuelled significant levels of contracting activity on gas-fired power projects. In Q2 2014, five EPC contracts were awarded on Saudi Aramco’s Jizan IGCC power plant on the Red Sea coast. Shandong Electric Power Construction Corp (SEPCO) has been awarded the contract to build the plant; Tecnicas Reunidas has been awarded an EPC contract for offsites and utilities; Saipem has secured two contracts, one for the gasification unit and the other for the sulphur recovery units and associated storage facilities; and China Harbour Engineering Company has been awarded a contract for the water intake pipeline and water treatment facility. The plant is expected to come online in 2017 and power generated by the 2.4GW plant is earmarked for the Jizan refinery, as well as other industry in Jizan Economic City. A further contract was awarded by Saudi Aramco to SEPCO for EPC work on the project to convert the Shaybah power plant in Rub al-Khaki, Eastern Province, from an oil-fired plant to a 480MW two-block CCGT plant. Although gas-fired projects have dominated thermal power activity, there has been a crop of EPC contract awards on coal-fired plant in traditional coal-reliant nations. In the Philippines, two EPC contracts have been awarded on the Pagbilao coal-fired power plant expansion in Isla Grande in the Quezon Province. Mitsubishi Hitachi Power Systems and Daelim Industrial have both been awarded contracts to build the plant, which will add another 400MW to the current 735MW plant. Across the South China Sea, in Vietnam, Tae Kwang Vina Industrial Co has awarded South Korean firm, Posco E&C, a contract to build the Nam Dinh 1 IPP coalfired plant in the Hai Hau District. The 2.4GW plant will be equipped with Circulating Fluidised Bed Combustion (CFBC) and will be completed in two phases, with Phase 1 due to come online in 2017. www.the-eic.com

In Q2 2014, there were two EPC contracts awarded for nuclear projects. In the UK, Sellafield Ltd and the Nuclear Decommissioning Authority (NDA) awarded a major US$14.8 billion EPC contract to a Cavendish Nuclear and Balfour Beatty joint venture to carry out work to build a nuclear waste decommissioning facility at Sellafield. In France, Air Liquide has been awarded an EPC contract for the installation and testing of a liquid nitrogen plant at the International Thermonuclear Experimental Reactor (ITER) nuclear fusion project in Cadarache. OEM Supply Activity Original Equipment Manufacturer (OEM) Supply contracting activity on global power projects in Q2 2014 has slowed, decreasing 54% on Q1 2014 figures. There has been a broad geographical spread of activity, with contract awards made on projects in North America, South America, Eastern Europe, Asia Pacific and the Indian Sub-Continent and the Middle East. There were three OEM Supply contracts awarded in North America: two in the US and one in Canada. In the US, GE Energy has been awarded a Major Mechanical Equipment (MME) contract to supply its 7FA.05 Series gas turbines to the Martinsville CCGT power plant project in Indiana, while in Illinois, Southwire Company has been awarded a Major Electrical Equipment (MEE) contract to supply cables for Clean Line Energy Partners’ The Rock Island Clean (Transmission) Line project. Suzhou Furukawa Power Optic Cable Co has been awarded a MEE contract to supply optical ground wires for Nalcor Energy’s Labrador – Island Transmission Link from Muskrat Falls to Newfoundland in Canada. In Mexico, two MME contracts have been awarded on the state-run utility CFE’s Altamira Thermoelectric Plants Conversion project in Tamaulipas. Alstom has been awarded a MME contract to supply two CFB boilers, while Toshiba has been appointed to supply two 165MW steam turbines and generators. Alstom performed well in the thermal power sector securing a further contract to supply turbines and generators to the US$1 billion Al Anbar power plant in the Al Anbar Province in western Iraq, and a MME contract for the supply of supercritical boilers for the US$1.8 billion, 1.6GW Darlipalli coal-fired plant in India. Two MME contracts have been awarded on power projects in Saudi Arabia. GE Energy secured a contract to supply turbine equipment to the Shaybah power plant conversion project, while BHI won a contract to design and supply heat recovery steam generators for the Rabigh IPP Phase II power project in the western Makkah Province. Other OEM Supply contracting activity saw Areva awarded a MEE contract to supply and replace six stators for the Shin Kori (Units 3 & 4) nuclear power plant in Busan, South Korea. PMC Activity There was one PMC contract awarded on global power projects in Q2 2014, for the Sellafield Decommissioning project in Cumbria, UK. In April 2014, a consortium of Atkins, Areva and Mace was appointed to manage the Magnox Swaf nuclear waste storage silo on the Sellafield site in a contract valued at over US$2 billion. 5

October 2014

EIC Training Services

Training Services Technical Workshop New Course Introduction to Energy from Waste Wednesday 8 October 2014 Grundon Waste Management Ltd, Slough The half-day workshop will enable attendees to gain an appreciation of the fundamentals involved in the energy from waste industry including relevant terminology.

Technical Workshop

Management Course

Introduction to FPSOs Tuesday 28 October 2014 EIC Aberdeen This workshop is suitable for those new to the industry or non-technicals who would like an overview of floating production, storage and offtake systems (FPSOs).

Technical Report Writing Thursday 9 October 2014 Rothera Group, EIC London This course will develop and improve the technical report writing skills of attendees. A carefully structured training programme, with focused and practical writing exercises, will give delegates the skills and tools they need to produce effective documents that deliver a clear and succinct message.

Issues for UK Energy Policy and Implications for Industry Wednesday 15 October 2014 Westminster Energy Forum, EIC London This course is designed to help the transition and development of employees typically in their first three years of employment, who are either working directly within the industry or in professional services supporting it. The course centres on the political, economic, social, environmental and technological factors affecting the UK energy system, the delivery of its infrastructure and national energy security.

Management Course

Employment Law Thursday 16 October 2014 bto solicitors, EIC London Employment law is constantly changing and evolving. The time and cost for employers spent in dealing with disgruntled employees in the workplace and in defending a claim in the employment tribunal can be inordinate. This essential session will assist you in avoiding such situations and help to ensure that you are well informed to deal with the most topical issues that arise when dealing with staff.

Management Course

Introduction and Awareness to ISO 9001 Tuesday 21 October 2014 SGS Academy, EIC London This course will be of benefit to all individuals whose organisation is looking to implement ISO 9001 management system or are looking to gain an understanding of quality management principles themselves to help with continuous improvement of quality processes within their organisation or supply chain. The objective of this course is to provide delegates with an overview of the purpose and requirements of ISO 9001:2008 as a tool for business improvement.

Management Course

Understanding Engineering Contractor Procurement Wednesday 22 October 2014 EIC London This course is suitable for anyone who is responsible for or engaged in the processes of bidding and executing work for engineering contractors and operators in the oil and gas sector.

Management Course

Networking Tuesday 28 October 2014 Made to Measure Training, EIC Teesside This course is suitable for any industry professional who wants to win more work for their company. It will also suit individuals who want to become confident and effective networkers.

Management Course

Effective Appointment and Management of Overseas Sales Agents Wednesday 29 October 2014 Minster International, EIC London The session will give a comprehensive overview of the wide range of actions to be taken by a Principal during the sourcing and assessment of overseas agents, together with a highly detailed explanation of what agency agreements should cover in terms of content. The programme will also discuss agent behaviour and include techniques for monitoring performance.

Industry Overview

Fundamentals of LNG Tuesday 14 October 2014 EIC London The course provides an understanding of the scope and size of the LNG industry, the value chain elements, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project.

If you would like to arrange an â&#x20AC;&#x2DC;in-houseâ&#x20AC;&#x2122; course, or are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com

October 2014

EDT Management Course

How should we face the growing skills gap in the UK? Head on... ‘Skills gap is hampering UK businesses’ recruitment efforts’, ‘UK businesses ‘most worried’ about skills gaps’, ‘Jobs keep growing as skills gap widens’, ‘Skills gaps sees business hunt for staff’ – sound familiar? These are just some of the headlines that were circulating in the UK media in May 2014 alone. Which may make you wonder – what is actually being done about this ever increasing concern that will impact the UK in a big way? The answer to that question is that there is actually a significant amount being done to tackle this issue; however the focus of the solution is not simply at recruitment level, but in fact delves much deeper than this into the education system. With children being fed misconceptions of engineers and scientists such as dirty hands and white coats, it’s no wonder that they would question if a STEM (science, technology, engineering and maths) related career is really an exciting prospect for them. Many businesses are leading the way in youth engagement, having recognised that by changing perceptions of the industry at a young age, it will then have a huge impact on their education and career choices as they develop into a skilled workforce, as well as just making good business sense. GlaxoSmithKline is just one of these organisations. Greg Simmonds, Programme Manager at GSK who will be one of the experts talking at the exclusive EIC workshop on youth engagement this December said: “Companies such as GSK have both a strong need for highly capable young people, and the ability to engage with them about how exciting and rewarding careers in technical disciplines can be. We understand from our values and our experience that as well as it being our responsibility to proactively engage with young people about science, engineering and technology; it makes great business sense too.” But it’s not just about the big companies. SME’s need to play a part as they make up over 99.9% of businesses in the UK, and employ over 60% of the workforce. SME’s will require a good quality workforce in the future as much – if not more, than larger companies. Steve Lafferty, CEO of ALS, an SME based in Wincanton, said: “I believe the only way we can really inspire the younger generation is to remove the politics and our own company agendas and focus on inspiring the youth of today together – in whichever way we can. We need to provide the inspiration for their aspirations. ALS engages with the local schools and colleges providing just that. Companies from all over the UK need to understand that we are all in this together.” EIC members such as Balfour Beatty, Siemens and Tata Steel are just some of the companies who have been engaging with outreach programmes to unite with local schools and enthuse young people from ages 11 up to 21, to think about pursuing a career in related industries. Tata Steel has been heavily involved with the development and launch of a new industry-led initiative inspired by HRH The Prince of Wales called ‘Industrial www.the-eic.com

Cadets’, which aims to raise the standard in workplace experiences for 11-19 year olds, by accrediting related activities to ensure that they make an impact on the learning outcomes of students. By exposing young people to industry during their early education, they can make the connection between what they are learning in the classroom and how this may be applied in a rewarding career in the future. Various companies are put off by the perceived difficulties of engaging with schools and students. Some of the barriers include; DBS checking, health & safety, and the perception of a lack of interest from schools. Laura Wilson of Bohunt School said: “To give today’s young people the best chance in life needs businesses and schools to work together. Outstanding schools can create a love of learning, a firm grounding in key knowledge and a range of skills. However, on their own, this isn’t enough. What is missing is the intrinsic motivation generated by a want to succeed, an understanding of how the various subjects fit together and the professional resilience that comes from understanding how feedback is different to failure. Not only can the companies help, but they can also benefit. An engineer, Audrey Savins, from Siemens, who visited Bohunt and held a workshop for year 9 students commented that the experience has helped her own CPD and she enjoyed the event so much that she wishes to continue to support the school with further workshops and mentoring opportunities.” These types of activities may not have an immediate impact on the pending skills gap in the UK, but the future impact they will have will be significant, and more importantly if this kind of activity is not carried out – the negative impact could be devastating. The Royal Academy of Engineering ‘Jobs & Growth’ report says: “To maintain the status quo requires 100,000 STEM graduates a year with a further 60,000 individuals with level 3+ STEM qualifications for the period 2012-2020. However, only 90,000 STEM students currently graduate annually.” By changing people’s misconceptions of the industry, the UK population will become more educated about the array of opportunities that are available in STEM related sectors. EIC members including Tata Steel, Siemens and Balfour Beatty are already seeking to tackle this problem head on – what will your company choose to do? Attend a dedicated outreach workshop and hear directly from Greg Simmonds of GSK, Steve Lafferty of ALS and Laura Wilson of Bohunt School along with The EDT, Smallpiece and Young Engineers and others, about how they approach outreach, what commitment is required and what impact it is having.

Management Course

How to Engage the Future STEM Workforce Wednesday 10 December 2014 EIC London Contact: training@the-eic.com 7

October 2014

Middle East 2015 Exhibition & Conference 2 June, St Regis Saadiyat Island, Abu Dhabi, UAE

Discover the potential on the region’s leading energy projects > Meet operators and contractors > Network with senior industry executives

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EXHIBITOR/SPONSOR PACKAGE INCLUDES > Access to all Project Opportunity Briefings and Conference Sessions > Visits from buyers to your stand > 2 x delegate places > 2 x invitations to exclusive networking Gala Dinner > Presentation copies after the event > Lunch and refreshments

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New Members

Welcome to our New Members New Primary Member

New Primary Member

Unit 2 Ashway Thorp Arch Industrial Estate Wetherby West Yorkshire LS23 7FA Tel +44 (0)1937 840 460 Fax +44 (0)1937 840 461 Email stuart.alexander@ava-alms.co.uk Web www.ava-alms.co.uk

Pasture Lane Clayton Bradford BD14 6LU Tel +44 (0)1274 882 359 Email tomrobst@thermocable.com Web www.thermocable.com

Thermocable Flexible Elements

AVA-Alms Valve Agency Ltd

The Nominated Representative is Mr Tom Robst, Product Strategy Manager. Thermocable is a UK manufacturer of cable based sensing and detection technology. The family of linear detection technology products includes linear heat sensing, water leak detection, monitoring of trace heat cables and perimeter security/cable theft detection. Each technology delivers significant benefits to customers including complete integration with control systems and remote monitoring. Linear sensing offers extended area coverage of detection and protection in comparison to alternative options, maximising the chance of detecting an abnormal situation. The company offers a vertically integrated approach through design, development and manufacturing providing reassurance of a flexible and responsive approach to client’s needs.

The Nominated Representative is Mr Stuart Alexander, Operations Manager. AVA UK was formed in 2009 as a daughter company of AVA GmbH, Ratingen, Germany. The AVA Group comprises of four sales and warehousing operations based in Germany, Netherlands, Hungary and the UK. AVA UK specialises in the review and supply of industrial valve for the oil, petrochemical, pharmaceutical, HVAC and general utility industries. With additional specialist expertise in MRO, project, testing and actuation projects, AVA is able to provide a comprehensive range of products and services for the most demanding of scenarios. AVA stocks a vast range of gate, globe, check and butterfly valves, as well as strainers and sight glasses in sizes from 1/4” to 24”. AVA stocks internationally approved and recognised brands such as Bonney Forge, Kitz, Valvosider, Ritag, Ghibson ex-stock.

New Global Member

Wipro UK

West Wing Level 2 3 Sheldon Square London W2 6AY Tel +44(0)20 7432 8500 Email alastair.shakeshaft@wipro.com Web www.wipro.com

New Global Member

Colson X-Cel Ltd Park Works Park Road Elland HX5 9HN Tel +44 (0)845 094 3780 Email markburrell@colson.co.uk Web www.colson.co.uk

The Nominated Representative is Mr Alastair Shakeshaft, Director of EPC. Wipro Ltd (NYSE:WIT) is a global information technology, consulting and outsourcing company with over 145,000 employees serving clients in 175 cities across six continents. Wipro’s Engineering & Construction vertical provides end-toend solutions to global engineering and construction companies operating across various markets including civil infrastructure, oil and gas, mining, utilities, airports, ports and manufacturing. The company has over 9,000 domain staff across execution centres in every major energy hub. Wipro is globally recognised for its innovative approach towards delivering business value and its commitment to sustainability. It is a trusted partner of choice for global businesses looking to ‘differentiate at the front’ and ‘standardise at the core’ through technology interventions.

The Nominated Representative is Mr Mark Burrell, Internal Sales. Colson X-Cel Ltd is a UK manufacturer of high quality instrument ball, needle, manifold, monoflange and DBB valves using European sourced materials. The current products range from ¼” to 4” with new larger bore sizes and subsea products introduced before March 2015. All major components are machined in-house using onsite capacity of 12 CNC machines and Group access to another 40. Materials of construction include grades from low carbon, duplex grades and high nickel alloys. All valves are 100% pressure tested prior to despatch. Colson X-Cel is ISO 9001:2008 certified and complies with the PED 97/23 Cat III Module H. www.the-eic.com

October 2014

EIC Member News

Member News

These newly designed DNV 2.7-2 containers have a small footprint with in-built access ladders and stacking ability to ensure economy of critical space. With new Cummings M11 3GP engine management, the compressors also have greatly reduced emissions and maintenance time. The new equipment will meet the requirements to support new technologies used within well test operations and other segments within the oil and gas industry. These complement the existing range of 750, 900 and 1000scfm Zone II compressors available from Airpac Bukom facilities internationally. In addition to the new 1000scfm Zone II compressors, further investment is also being focused on additional Zone II products, manufactured in accordance with new DNV 2.7-2 specification. Airpac Bukom operates a large fleet of air compressors, steam generators, booster compressors, heat exchangers, dual pot sand filtration units, coflexip hoses and air treatment ancillaries. The global rental provider to the oil and gas industry operates a fleet of more than 100 steam generators and 500 compressors. Airpac Bukom has cemented its position as the preferred global supplier to key customers, confirming clear leadership in providing services to all markets across the globe. For more information please visit: www.airpacbukom.com

Hydraulic actuator engineering firm Advanced Actuators is set to achieve 40% growth this financial year and has recruited a new general manager in the Middle East to manage its growth in bespoke customer projects. The UK-based business, which supplies oil, gas and power generation industries across the globe, has announced a £2m turnover in just two months signalling it is on target to secure record breaking growth in over two decades with a £4.5m turnover for 2014/15. Attributing the boost in business to an increase in exports and new projects in the Middle East and Brazil, Managing Director Chris Woodhead said: ”Our success is not a short term blip but the result of consistent work targeting key markets with our product benefits and problem solving solutions. Advanced Actuators not only specialises in hydraulic actuator manufacture and supply but we take the time to train, educate and support our customers long after a contract has been secured.” To strengthen the company’s offering, Advanced Actuators has recently appointed General Manager Alistair Carson in its Dubai office to oversee oil and gas projects, develop new and existing partnerships and provide industry leading after sales services. The first of a series of planned appointments in the Middle East, Alistair has a key focus on developing business in the UAE, KSA and Oman. Chris Woodhead continued: “Alistair’s role will be customer facing, educating clients on the benefits of hydraulic actuators and how we can deliver bespoke solutions through our early involvement. It is essential that the industry understands the long term, cost and energy saving advantages of hydraulic engineering. The training and support we can offer through Alistair and his growing team will demonstrate our partnership approach which creates a long term working relationship to the benefit of everyone involved.” For more information on Advanced Actuators please visit: www.advanced-actuators.com

AMEC has signed a Memorandum of Understanding with China National Nuclear Corporation (CNNC) to cooperate across the civil nuclear sector, both in China and the UK. The agreement will see CNNC and AMEC work together to secure global opportunities in new build, nuclear power plant operational support and lifetime extension and decommissioning and waste management. Clive White, President of AMEC’s Clean Energy Europe Business, said: “This is the first stage in what we hope will be a long-term relationship between British and Chinese companies in the field of nuclear energy. “This agreement will strengthen the co-operation between AMEC and CNNC across the nuclear sector. We will work together, for example, on new build programmes, both in the UK and internationally and also planning and strategy development for decommissioning nuclear power plants and other nuclear facilities in China under the guidance of the Chinese government.” Clive added that AMEC was pleased to be part of the UK supply chain helping to encourage important investment in the UK nuclear industry and said: “This is of course early in our relationship with CNNC but I am confident that our complementary skills and expertise will bring benefits for both parties and play a key role in the development of the nuclear industry in the UK, China and in international markets.” Visit: www.amec.com

Airpac Bukom’s equipment inventory will be enhanced with significant investment in new containerised 1000scfm Zone II air compressors, meeting the latest DNV 2.7-2 specification, which is increasingly demanded by the industry to improve safety and reliability. These purposebuilt, Zone II compressors are intended to support global operations. With a capacity of 1000scfm at 150psig (10.3bar) they deliver more air to enable higher rates of productivity allowing time critical demands of offshore fabric maintenance and well test programmes to be met.

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 3 November for the December issue. www.the-eic.com

October 2014

EIC Member News

Cofely Fabricom has announced the appointment of Mark Boden as the Business Operations Manager for the East Business Unit. Mark will be operating from the purpose built Fabricom Project Engineering Centre (CFES) based at Immingham, North East Lincolnshire. Mark’s primary responsibility will be to manage the dayto-day operational functionality, ensuring it operates safely and professionally at all levels within the organisation. He will ensure that the business understands and delivers to the client’s requirements and expectations by ‘doing it right, first time – every time’ and establishing the company values of professionalism, integrity, trust and team spirit, both internally and externally. Mark commented: “I am looking forward to working with the FPEC team and to expand into areas of not only manufacturing but working towards detailed design, engineering deliverables and work pack creation for our existing and future client base.” Mark Boden succeeds Mark Wingate who has been promoted to the position of Director of EPC & EPC(m) Delivery. Mark Wingate will be operating from the new corporate offices at Origin 3, Europarc, Great Grimsby. Mark’s new role will be to take the UK business forward by focussing on delivering a comprehensive EPC & EPC(m) capability within the Cofely Fabricom GDF SUEZ business, working with all business units. His key responsibilities will include day-to-day responsibility of operations, meeting the strategic objectives ensuring effective management and mobilising existing engineering experience and expertise in conjunction with preferred partners and suppliers to ensure that the company is their provider of choice. For more information visit: www.fabricom-gdfsuez.co.uk

Eaton’s electrical portfolio, which includes contactors, moulded case circuit breakers and air circuit breakers as well as leading edge Bussmann fuses, can reduce the size and increase the reliability of conversion systems. For hydraulic pitch control, Eaton’s performance cylinders provide fast and accurate response time and control. Eaton’s Crouse-Hinds business offers lighting designed for harsh conditions, including offshore platforms and turbines in places such as the North Sea. The solutions include fluorescent light fittings, which meet IP66 standards and have proven performance with salt water, high wind-load and constant or severe vibration. Eaton also provides new-generation LED lighting that can be used inside wind turbines. Louis Shaffer, EMEA Renewable Energy Segment Manager, Eaton, said: “Throughout the wind energy sector companies increasingly understand that to compete with traditional energy sources, they need partners with an international presence and operations in every key wind marketplace. Our global network ensures that we are where our customers need us to be, and our diverse channels ensure reliable availability and support. Eaton is one of the few companies that can offer local supply in key markets where such capability is a critical requirement for success.” As a global company with customers in more than 150 countries, Eaton is committed to providing world class customer service and support all over the world. Eaton’s experts on the ground help customise solutions based on the different regional needs and demands. Its global manufacturing capabilities in Canada, Brazil and South Africa enable Eaton to quickly respond to the needs of the wind industry including the local support required to maximise productivity and uptime. To learn more about Eaton’s power management solutions please visit: www.eaton.uk.com/electrical

With over 100 years expertise in power management, Eaton offers a broad range of solutions that help transform wind power safely and efficiently into useful, sustainable energy. One of the most important challenges faced by wind energy producers is maximising uptime and minimising the cost of maintenance. Eaton offers efficient power management solutions for some of the world’s most demanding conditions. Eaton combines the expertise of Vickers, Moeller, Cutler-Hammer, Holec, Crouse-Hinds and Bussmann under one brand to ensure a complete set of solutions.

Highview Power Storage, a British developer of large scale Liquid Air Energy Storage (LAES) systems, is sponsoring the research chair at the Cryogenic Energy Storage Centre at the University of Birmingham in the UK. The centre will be cosponsored with the Royal Academy of Engineering (RAEng) and Professor Yulong Ding has been appointed to lead the centre for the next five years, as the Highview Power Storage Royal Academy Chamberlain Chair in Energy Storage. Highview can design LAES plants that range from 5MW/20MWh to 200MW/1,000MWh. Using liquid air as the storage medium, the systems can provide solutions for utility and distributed power systems, and other applications such as waste heat to power and LNG regasification terminals. Highview has signed a global licence agreement with GE Oil & Gas to integrate LAES systems into its peaking plants. Gareth Brett, Chief Executive Officer, Highview Power Storage, explained: “The UK has a long history in the cryogenics industry and now has the opportunity to develop a solution for one of the world’s toughest problems, how to store energy at large scale.

www.the-eic.com

October 2014

EIC Member News “The oil and gas sector is very important to us, and we will continue to expand our presence through traditional projects and functional safety lifecycle support services. Similarly, we’re bringing expertise into oil and gas projects. For example, having become experts at SCADA following a number of rail projects, our specialists are currently undergoing training to work on offshore rigs. As a result of careful and strategic growth, we have the strength to take on challenging projects and see them through to completion. We now also have the benefit of stability from operating across a number of market sectors. “We will continue to adopt our philosophy which has served us well for the last 40 years; not being over cautious and spending too long deliberating, but not being overly adventurous and taking unacceptable risks either. We are an experienced safety business, brave enough to take on new challenges and seek new opportunities – while mapping out a sensible path along the way.” Visit: www.hima-sella.co.uk

Highview Power Storage

“Our system uses readily available components from mature industrial supply chains, and has no geographical constraints, meaning it can be deployed anywhere in the world. This is important as electricity networks are now focused on resolving the challenges of integrating larger levels of intermittent renewable generation, with storage playing a major role. California has already set a mandate for utilities to procure more than 1.3GW of storage by 2020.” To support the work by the Cryogenic Energy Storage Centre, Highview will relocate its 350kW/2.5MWh LAES pilot plant to Birmingham. The company is currently working on a new 5MW/15MWh LAES plant, being funded by more than £8 million from the UK Government’s Energy Storage Technology Demonstration Competition. The demonstration LAES system will be located alongside GE Jenbacher gas engines, to utilise the waste heat. For more information please visit: www.highview-power.com

Klinger UK has tackled industry demand for prepressurised leak testing with an expansion to its extensive specialist metallic gasket range. The company, a manufacturer and distributor of quality sealing products for the global oil and gas industry, has introduced the Sentry gasket, designed specifically to allow speedy and efficient leakage testing of flanged joints, prior to pressurising the pipeline. Alan Bates, Managing Director, Klinger UK, said: “Traditional leak testing carries heavy production downtime and subsequent loss of earnings. The Sentry utilises reverse integrity gasket leakage technology, to allow testing without the need to pressurise the full system. Both primary and secondary sides of the seal can be tested, validating the integrity of the joint at installation. Joints can be tested and adjusted if leakage occurs, in one visit to the flange. Significant reductions are being achieved in the volume of testing media required.” Ideal for offshore petrochemical applications, the heavy duty, high-pressure Sentry gasket can be used in both ring joint and raised face flanges. Klinger’s metallic gasket range also includes Maxiflex spiral wound, Maxiprofile coated grooved metal, Maxigraph covered, corrugated metal and Ring type joints. The company can manufacture metallic gaskets in a wide range of alloys to cover even the most chemically aggressive applications. For more information please visit: www.klinger.co.uk

As Hima-Sella celebrates its 40th anniversary, newly appointed Managing Director John Blackwell reflects on the company’s history and indicates where he sees growth opportunities. “With 100 employees, we are still an owner-managed business, and the name Hima-Sella is synonymous with uncompromising safety. We are a specialist company and our customers are some of the biggest names in their fields. The inclusion of ‘HIMA’ ties in with our appointment in the 1980s as the exclusive agent in the UK and Ireland, for Germany-based HIMA, an OEM of safety solutions for process industries. Most of what we do in the oil and gas sector involves architecting safety functions on HIMA’s products, where applications typically include Emergency Shutdown (ESD), Fire and Gas Detection (FGD), Burner Management Systems (BMS), Tank Overfill Protection Solutions (TOPS) and High Integrity Pressure Protection Systems (HIPPS). www.the-eic.com

Mirage Machines, an Acteon company, has invested a six figure sum in the expansion of its headquarters in Derby, UK, as it responds to continuously rising demand for its pipecutting and flange facing technology. Mirage Machines has acquired new 5,000 sq ft office premises adjacent to its existing engineering headquarters, to facilitate the extension of its 12

October 2014

EIC Member News manufacturing and service operations workshop to 17,000 sq ft. The site, at Enterprise Way, includes fullscale technology engineering, fabrication, maintenance and R&D departments producing machines used across the international oil and gas and petrochemical industries. Mirage employs more than 40 people and up to six new jobs are expected to be created as the company targets a trebling of its annual turnover by 2016. Mirage works in partnership with operators and service companies in oil and gas, as well as universities to develop bespoke on-site machining technology and solutions, including pipecutting and flange-facing, subsea diamond wire cutting and hot-tapping equipment. Richard Silk, Managing Director, Mirage Machines, said: “International demand is a key driver for the ongoing expansion of our UK premises, and the extension to our operational headquarters in Derby is a natural step to ensure that we have capacity to respond to consistent demand. We have ramped-up our manufacturing operations to meet that demand for our machines in E&P, maintaining our reputation for producing technology of the highest quality.”

Previously split over a number of buildings in Altens, Tyco has consolidated its office staff to the Altec Centre on Minto Drive and its workshop and stores facility to one location in Hareness Park. With all teams moving to new premises on Altens Industrial Estate, this has allowed Tyco to become an integrated company, establishing closer relationships to offer integrated solutions and services to customers. The new workshop and stores facility is larger and better equipped to facilitate large-scale projects allowing Tyco to grow its life safety and asset integrity services in the North Sea market. As a result of this growth, Tyco is currently recruiting for a number of roles to help meet market demand and growth. Bryan Stewart, Region General Manager, Tyco Fire and Integrated Solutions, said: “After 25 years of successfully growing and expanding our operations from the Ocean Trade Centre we have simply outgrown it and moved to new facilities. This brings us to the start of a new era for Tyco in Aberdeen by placing us in a significantly better position from which to continue to provide the high level of service to our clients that this business demands while also demonstrating Tyco’s continued investment to the Aberdeen oil and gas market.” For more information visit: www.tycofis.co.uk

Mirage Machines Ltd

Universal Acoustic & Emission Technologies is designing and manufacturing for the power generation and oil and gas industries by adding the manufacture of a new line of tanks that hold combustible fuel in stationary applications. The UL 142 listed tanks, certified for both the US and Canada, are often placed under standby power generator enclosures and provide fuel – usually diesel – to the generator. The fuel tanks are an integral part of a complete generator set package provided by Ojibway Enclosures by Universal. Ojibway has traditionally purchased these types of tanks from vendors and fitted enclosures on top of them, but with this in-house manufacturing advance, the tanks will now be used for Universal AET’s own production as well as sold to its customer base. The tank design allows flexibility for the customer to decide between multiple lifting options and either an I-beam structural support or a flat-top design with internal support for the generator. The fuel tanks will be built at the company’s Center of Excellence in Beloit, Wisconsin. Universal AET can quote, design and manufacture tanks with optional features based on the customer’s specific requirements. Following recent approval from UL, the tanks will be manufactured to code 142 standards. They meet the variety of federal codes for combustible fuel storage, as well as various local and state codes. Tank designs are customisable for a wide range of applications, including locomotive and marine. A variety of customised options are available, including a spill box, immersion heaters and pressure relief valves. To learn more contact: enclosures@universalaet.com

Mirage Machines designs and manufactures technologies for applications including drilling and tapping, flange facing, hot tapping and line stopping, line boring, milling and gantry milling, orbital milling, and pipe and casing cutting. The business is certified to ISO 9001:2008 standard. Please visit: www.miragemachines.com

Tyco Fire and Integrated Solutions, part of Tyco, the pure play fire protection and security company, continues its 30-year association with the North Sea oil and gas industry with investment and expansion in its Aberdeen service operations. Starting in the industry as Mather+Platt providing fire suppression systems to offshore platforms in the 1970s, Tyco as a company has evolved through Mather+Platt, Wormald, Rhomax and Prestroy. Relocating its Aberdeen Altens branch to a new modern integrated workshop facility within the Altens Industrial Estate will enable Tyco to continue providing its customers with high quality life safety and asset integrity service, which the North Sea oil and gas industry demands. www.the-eic.com

October 2014

Events Diary

UK, Overseas & Training October 2014 1 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, Warrington 1 Management Course: Successful Agency Agreements International House, Dubai 2 Export Showcase: India (Power) EIC London 2 Management Course: Introduction to Social Media The Centre, EIC Aberdeen th 3 Corporate Entertainment: 5 Annual Sporting Clays Tournament American Shooting Center, Houston 6 Industry Overview: Fundamentals of Oil & Gas EIC Houston 7 Business Presentation: Opportunities with Petronas Kuala Lumpur 7 Technical Workshop: Introduction to Shale Gas EIC Houston 8 Sector Showcase: GROW:OffshoreWind EIC Teesside 8 Technical Workshop: Introduction to Energy from Waste Grundon Waste Management, Slough 8 Technical Workshop: Introduction to Gas Turbines Siemens, Yas Island Rotana, Abu Dhabi 9 Management Course: Technical Report Writing Rothera Group, EIC London 13 Business Presentation: Opportunities with Dana Gas The Palace Hotel, Downtown, Dubai 14 Industry Overview: Fundamentals of LNG EIC London 15 Management Course: Issues of UK Energy Policy Westminster Energy Forum, EIC London 15 Technical Workshop: Introduction to Naval Architecture EIC Rio 16 Management Course: Employment Law bto Solicitors, EIC London 16 Corporate Entertainment: EIC National Dinner 2014 Natural History Museum 21 Management Course: Introduction & Awareness to ISO 9001 SGS Academy, EIC London 21 Management Course: The Effective PA Inspirit Training, EIC London 21 Regional Showcase: Northern Region Contractors Update Bolton Whites Hotel 21 HSE Training: Basic First Aid HSS Health & Safety Solutions, Dubai 21 Corporate Entertainment: Engage, Interact and Connect Wheelerâ&#x20AC;&#x2122;s, Dubai 22 Management Course: Engineering Contractor Procurement EIC London 28 Management Course: Networking Made to Measure Training, EIC Teesside 28 Technical Workshop: Introduction to FPSOs EIC Aberdeen 28 Management Course: Cross Cultural Business Communication Alderley, Jebel Ali, Dubai 29 Management Course: Management of Overseas Sales Agents Minster International, EIC London 30 Regional Showcase: Scottish Region Contractors Update KMD Conference Centre, Aberdeen November 2014 3 Industry Overview: Practical Approach to the Supply Chain Kuala Lumpur 4 Sector Showcase: Transmission & Distribution AECC, Aberdeen 4 Industry Overview: Fundamentals of Refining & Petrochemicals Radisson Royal Hotel, Dubai 5 Industry Overview: Fundamentals of Power E.ON UK, Ratcliffe on Soar, Nottingham 6 Management Course: Doing Business in Russia EIC London 10 Export Showcase: Mexico London 12 Technical Workshop: Introduction to FPSOs EIC London 12 Business Presentation: Lunch with Doris Engenharia EIC Rio 13 Export Showcase: BP Iraq London 13 Technical Workshop: Introduction to Centrifugal Pump Design SPP Pumps, Gloucestershire 14 Management Course: Doing Business in Brazil EIC London 17 Industry Overview: Doing Business with Petronas Kuala Lumpur 17-18 Management Course: The Effective Manager Inspirit Training, EIC London 18 Management Course: Business Writing Skills Eton Institute, Abu Dhabi 19 Technical Workshop: Introduction to Petroleum Engineering ATU Consultancy, EIC London For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

October 2014

Events Diary

Exhibitions & Delegations 2014

14-16 October World Nuclear Exhibition Paris 13-17 October Overseas Delegation to Myanmar 10-13 November ADIPEC Abu Dhabi 12-14 November Offshore Korea Busan 24-28 November Overseas Delegation to Thailand 2-5 December Offshore South East Asia (OSEA) Singapore

Status Booking Now Sold Out Sold Out Sold Out Booking Now Sold Out

2015

19-22 January Overseas Delegation to Kuwait 16-20 February Overseas Delegation to South Africa and Mozambique TBC February Overseas Delegation to India (Power) 8-13 March Overseas Delegation to Brazil 10-12 March European Wind Energy Association (EWEA) Copenhagen 11-13 March Australasian Oil & Gas (AOG) Perth TBC March Overseas Delegation to Colombia 21-23 April WETEX Dubai 4-7 May Offshore Technology Conference (OTC) Houston TBC May Overseas Delegation to Saudi Arabia and Bahrain 2-4 June Oil & Gas Asia (OGA) Kuala Lumpur 23-26 June Offshore Brasil Macae

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

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

National Events 2014

Status

16 October EIC National Dinner 25-26 November EIC Connect Oil & Gas

Last Chance to Book Delegate Bookings Open

London Manchester

2015 2 June EIC Connect Middle East Abu Dhabi Register your Interest 8-11 September Offshore Europe Aberdeen Stand Bookings Open 24-25 November EIC Connect Energy Manchester Register your Interest For further information on National Events please contact: nationalevents@the-eic.com

CONTACT mark.gamble@the-eic.com

www.the-eic.com

October 2014

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions

The show, which saw 91,682 visitors pass though over the four days shattered the record of 60,000 in 2012. With its new design, and fantastic position the UK Pavilion was buzzing with activity throughout the exhibition, with the UK lounge acting as central meeting point for exhibitors and their clients and EIC members throughout the show. The ONS Summit Meeting on Tuesday gathered 60 top government leaders and senior corporate executives from 22 countries. In a closed doors meeting they discussed how current rapid changes affect geopolitical and business conditions for energy nations and companies. Alongside the UK National Pavilion the EIC was pleased to offer a variety of side events for our exhibitors. Members of the UK Group were able to attend the networking reception organised by Subsea UK where guests enjoyed home cooking by trained chefs, sampled Scottish drinks and were entertained by local musicians from Aberdeen. Exhibitors also attended a reception organised by the British Embassy/UK Trade & Investment Norway which took place on Wednesday at the Stavanger Rogaland Kunstmuseum. The reception was opened by HMA Sarah Gillett and was a fantastic opportunity to network with key decision makers in the energy industry. It was a fun evening, enjoyed by all who attended. To register your interest for ONS 2016, please contact the overseas events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com

Australasian Oil & Gas 2015 (AOG) 11-13 March 2015 Perth TAP funding of £2,000 for eligible SMEs Space is now booking for Australasian Oil & Gas 2015 (AOG). Australia is emerging as a hub of global energy development and has huge potential to become one of the world’s top LNG producers, with a number of basins, including Browse, Bonaparte, Canning and McArthur Basins, discovered both on and offshore. The exhibition will provide members of the UK supply chain with excellent exposure to existing and new customers resulting in a host of new business leads, and the informative events are aimed at assisting UK companies to win a larger percentage of the LNG and support services contracts in Australia. To book please contact: mark.gamble@the-eic.com Event Report Offshore Northern Seas (ONS) 25-28 August 2014 Stavanger The EIC was pleased to host the UK National Pavilion at ONS 2014 which was made up of 34 companies with a wide variety of products and services.

Overseas Delegations Overseas Delegation to Kuwait 18-20 January 2015 MAP funding confirmed With over US$96 billion worth of planned investment in oil and gas projects, supply chain opportunities are ripe within Kuwait. Kuwait holds the world’s sixth largest oil reserves with 101 billion barrels of proven reserves and also holds 63 trillion cubic feet of proven gas reserves. Kuwait GDP has been growing on an annual basis since 2011 by an average rate of 6.9% and is the fifth richest country in the world per capita. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million bbl/d by 2020. The Kuwait Petroleum Corporation (KPC) manages domestic and foreign oil investments. Kuwait Oil Company (KOC), the upstream subsidiary of KPC, manages all upstream development in the oil and gas sectors. The Kuwait National Petroleum Company (KNPC) controls the downstream sector, while the Petrochemical Industries Company (PIC) is in charge of the petrochemical sector. Export operations are overseen by both KNPC and the Kuwait Oil Tanker Company (KOTC). Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings presented by qualified speakers with in-market experience and the opportunity to meet with local companies. To book your space please contact: mark.gamble@the-eic.com www.the-eic.com

Event Report Overseas Delegation to Oman 15-17 September 2014 The delegation to Muscat, Oman consisted of 13 delegates from 11 UK companies keen to find out more about the current oil and gas opportunities in this exciting market. Meetings were arranged throughout the three days with BP, OPAL, Occidental Oman, Petroleum Development Oman (PDO), Oman Oil Refineries & Petroleum Industries (ORPIC), Takamul LLC, Khmiji Ramdas and United Engineering Services. There was also a Networking Reception at the British Embassy where Lord Astor gave a short speech to the audience of key local players and industry partners. The value of UK exports between January 2014 and May 2014 was £167 million while imports totalled £143 million. Exports from the UK to Oman have doubled over the last six years and it remains a market with massive opportunities. mark.gamble@the-eic.com 16

October 2014

FROM THE ENERGY INDUSTRIES COUNCIL

Want to learn more about the next edition of Energy Focus?

Issue 23 n Autunm

2014 FROM THE ENER GY INDUSTRIES COUN CIL

OIL & GAS:

Russian LNG heads east VIEW FROM THE TOP:

Energy Focus is the ﬂagship publication of the EIC. Produced bi-annually, the publication is the perfect promotional media for companies in the second and third tier energy supply chain promoting to operators and main contractors.

Humphrey Cadoux-Hudso n talks UK nuclear

PLUS: UK Capacity Mark et

Turkey Downstream

MIDDLE EAST:

Can Iraq become the region’s top oil producer?

Cross-Sector Engageme nt for Renewables

For advertising enquiries for Energy Focus and the Procurement Guide: Nina Conway – 0161 661 4143 nina.conway@excelpublishing.co.uk

Tim Carris – 0161 661 4174 tim.carris@excelpublishing.co.uk

Put your company in front of the right audience The EIC Procurement Guide is the deﬁnitive directory for the UK energy supply chain. The guide is published annually both in print and as a fully searchable online directory and is distributed to senior buyers in major oil companies.

procurementguide.the-eic.com www.the-eic.com

Designed and published by Excel Publishing Co Ltd, 6th Floor, Manchester One, 53 Portland Street, Manchester M1 3LD 17 www.the-eic.comT: 0161 236 2782 E: enquiries@excelpublishing.co.uk wwww.excelpublishing.co.uk October 2014

EIC National Events

UK Supply Chain gears up for flagship event Organised by the EIC, in conjunction with UK Trade & Investment, EIC Connect Oil & Gas places the UK supply chain in front of the world’s leading oil and gas operators and contractors.

Confirmed companies include AMEC, Bechtel, Centrica, ENI, Samsung and Shell with more expected to sign up in the coming weeks. Sector Analysts from the EIC’s Oil & Gas team will also attend the event to introduce delegates to EIC Insight Reports, our newly launched market intelligence reports that provide brief analysis of major energy project contracting activities in global markets.

Taking place at Manchester Central on 25-26 November 2014, the operators and contractors in attendance will lead a high-value programme of supply chain briefings, conference sessions and lively question and answer debates, while also offering a number of one-2-one appointments during the two day event.

Discover the 4 key areas of the event

One-2-one Appointments at 2012 event

2. One-2-one Appointments Many of our speakers are available for pre-arranged meetings with UK companies at the event providing a unique opportunity for you to present your products and services to procurement specialists from:

Supply Chain Briefings at 2012 event

1. Supply Chain Briefings

AMEC, Bechtel, Centrica, ConocoPhillips, ENI, Foster Wheeler, Premier Oil, Samsung, Shell, Technip and Wood Group.

Participating companies outline their global opportunities and buying policies to suppliers. Attend each briefing to discover:

UK Trade & Investment advisors will also be at the event to advise you on how to do business in several global markets including East Africa, Brazil, Czech Republic, Kazakhstan, Nigeria and Russia.

• Which global projects are coming up with a need for suppliers? • What else do these companies buy? What are their supplier strategies? • Safety expectations, cost expectations, productivity, CSI, local content requirements/local representation? • What do they need more of: solutions or products? • Do they buy in bundles? Who do they buy for? • Time scales – when is too early/too late to engage? • How do UK companies gain access to global opportunities? What will give you the advantage? www.the-eic.com

3. Conference Programme Featuring an opening plenary session, three sector based outlook sessions and two question time sessions, the conference programme is designed to help UK based SME’s to understand the global outlook for the oil and gas industry. 18

October 2014

EIC National Events

Book your place now

The Minister for UK Trade & Investment, Lord Livingston, will address the supply chain in the plenary session alongside Matthias Bichsel, Executive Director for Royal Dutch Shell, who will give Shell’s perspective on the longer term prospects for UK companies in the UKCS and beyond. Robin Watson, CEO of Wood Group PSN will conclude the session.

Every EIC member company working in the oil and gas sector should be represented at the event. Members are encouraged to send at least two delegates to allow them to maximise their attendance at the different aspects of the event. Delegate bookings are priced at just £279 +VAT and include:

Each conference session will provide a broad overview of the upstream, midstream and downstream sectors and discuss what challenges are faced that impact on the global supply chain.

• Access to all Supply Chain Briefings and Conference Sessions • Opportunity to book one-2-one meetings • Refreshments and lunches on both days • Networking Hour • Event Brochure Pack • Presentation copies after the event

The upstream session will look at how we can globalise the UK supply chain with speakers from AMEC, ConocoPhillips, Premier Oil and SNC Lavalin.

Book your place online: www.the-eic.com/EICConnect/OilGas/AbouttheEvent

The midstream session will have a strong focus on FLNG, and look at the new opportunities and potential scope for major pipeline projects across Europe and Russia. Gianluca Lufino, VP of WorleyParsons will chair the session and will be joined by speakers from Interfax and Shell.

With thanks to our event sponsors: Evening Reception

Alan Gelder, Head of Oil & Research at Wood Mackenzie, will be chairing the downstream conference session which will look at the success of the USA in this market and the upsurge in Korean contract awards in the Middle East.

One-2-one zone Registration and Lanyards

Delegates can attend additional sessions in between supply chain briefings for a brief market update in each sector and introductions to useful resources, such as UK Export Finance.

Delegate Networking Area

4. Exhibition

VIP Lounge

Over 65 companies will exhibit products and services that showcase the best in supply chain excellence. These range from safety, cabling, flow and security solutions providers to wire and cable manufacturers and industrial sensors and instrumentation producers. For a full list of exhibiting companies and to download the floor plan please visit the EIC website.

For additional information visit the website or contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com www.the-eic.com/EICConnect

A few remaining stands are available in the conference foyer to allow companies to take advantage of the footfall between the exhibition and the conference sessions. These stands are priced at just £2,400+VAT and are expected to sell out fast. www.the-eic.com

October 2014

EIC UK News

News from our UK offices Forthcoming Events

Export Showcase India (Power) Export Showcase Thursday 2 October 2014 EIC Conference Suite, London Development is taking place across the power sector in India with a focus on renewables and conventional power, not to mention its need for metering solutions, wireless technology provision and other technology to reduce distribution losses. The EIC and UKTI are working together to highlight these opportunities to our members through a comprehensive panel of speakers, who will identify the key sectors of importance and detail where planned investment will be made. With a five year plan (2012-2017), which aims to add an additional 118.5GW of generation capacity, this is a market our members should be aware of. Register your interest with Jennifer Hole.

Regional Showcase Northern Region Contractors Update Tuesday 21 October 2014 Bolton Whites Hotel This Showcase event will feature a panel of speakers from the key contractors across the Northern Region including those in fabrication, EPC and project management. It will be a great opportunity for you to learn more about these major organisations and their project activities. It will also provide a fantastic platform for networking with your fellow members from across the UK. The presentations will include the following: • Procurement policy: how to do business with them; pre-qualification processes; how to do business. • Contacts: local and global procurement contacts. • Project updates: current and future regional project activity; opportunities for the supply chain; global project portfolio managed locally; procurement requirements. • Developing new technologies: companies plans; supply chain involvement. • Challenges: what and how they are addressing them. Contact Jennifer Hole.

Sector Showcase GROW:OffshoreWind Wednesday 8 October 2014 EIC Teesside The GROW:OffshoreWind programme will deliver a national programme of focused support to deliver a step change in SME manufacturers’ ability to exploit the lucrative opportunities offered by the UK offshore wind market. By providing access to targeted specialist advice, £20m of RGF funding will have a transformative impact in enabling English manufacturers to win contracts in the offshore wind market. GROW:OffshoreWind offers expert intelligence, visibility of contract opportunities and access to funding. An objective assessment will identify a company’s market potential and entry to leading technology centres is available to allow you to develop advanced production techniques and realise high value IP. Contact Sean Gordon.

Regional Showcase Scottish Region Contractors Update Please note change of date Thursday 30 October 2014 KMD Conference Centre, Aberdeen A panel of contractors will provide an update on a variety of supplier opportunities. The panel will include contractors from subsea, fabrication and project management. There will be an opportunity for networking. Local contractors will be providing updates that focus on: • Procurement policy: how does a SME do business with the company? How do the supply chain pre-qualify? How not to do business with these companies, equally as important as how to do business? • Aberdeen/global procurement contacts. • Project updates: what projects is the company currently working on and what are the opportunities for the supply chain on these projects? What projects globally are being worked on from the Aberdeen/UK office? What items are they looking to procure? • Developing new technologies: companies plans, how do they involve the supply chain in the development of technology? • Biggest challenges for them and their supply chain: ie is staffing an issue (lots of recruiters coming to events), costs, how are they meeting the challenges? There will be an opportunity for networking and one2-one meetings. For more information please contact Sean Gordon.

Corporate Entertainment EIC National Dinner Thursday 16 October 2014 Natural History Museum, London ONLY SPONSORSHIP PLACES REMAINING With over 550 energy industry professionals joining the EIC for an evening of networking over delightful food and exceptional entertainment, tables at the event are now sold out. If your organisation would like to attend the Dinner, then there are still a limited number of opportunities available to attend by sponsoring the event. The EIC National Dinner provides a unique opportunity to promote your organisation’s capabilities to a captive audience of high-level, key industry contacts. We are delighted to announce that this year’s Headline Sponsor is LV Shipping and that the event is also supported by OilCareers.com, Promat and Boustead International Heaters. For more information, or to sponsor the event, please contact Charmaine Atkinson. Visit: www.the-eic.com/NationalDinner

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

October 2014

EIC UK News Export Showcase East Africa Export Showcase Tuesday 9 December 2014 EIC Conference Suite, London Neglected for decades in favour of Africa’s resource rich North and West Africa, interest in East Africa has increased exponentially in recent years following the discovery of significant quantities of oil in Uganda in 2006. Excitement surrounding onshore oil discoveries in Uganda has been bolstered by promising oil discoveries in Kenya. However, it is the world-class natural gas discoveries off the coast of Mozambique and Tanzania that look set to transform East Africa into a major oil and gas region. The EIC is currently tracking 147 active and future projects in the region worth over an estimated US$170 billion; the majority of new investment is in the oil and gas sector, although there are noteworthy projects within the region’s renewables and power sectors as the region aims to develop its energy industry. While more and more international companies are taking advantage of the opportunities in East Africa, it remains one of the world’s most underprivileged and under-developed regions. Join the EIC and representatives from across the East African energy market to find out about: • The Governments’ plans to harness the development of the energy sector to benefit local communities and the subsequent local content stipulations that are being put in place. • Details of where potential opportunities lie for UK suppliers. • The challenges your organisation may face and the support available to your company locally. Register your interest with Jennifer Hole.

Other dates for your diary: Export Showcase: Mexico Monday 10 November 2014, London Export Showcase: BP Iraq Thursday 13 November 2014, London Export Showcase: Latin America Wednesday 3 December 2014, London Corporate Entertainment: EIC Burns Supper Thursday 22 January 2015, Aberdeen Contact: Charlotte Hust, UK Regional Manager (Southern) Tel +44 (0)20 7091 8624 Email charlotte.hust@the-eic.com Helen Doona, UK Regional Manager (Northern) Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com Jennifer Hole, UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com Sam Begg, UK Regional Manager (Scotland) Tel +44 (0)1224 628 250 Email sam.begg@the-eic.com

Export Showcase Eastern Europe Export Showcase Tuesday 20 January 2015 EIC Conference Suite, London The EIC is tracking 398 active and future projects across Eastern Europe (excluding Russia) with a combined estimated CAPEX of US$420 billion. Power projects dominate these figures, with 11 nuclear plant developments and expansions each worth over US$5 billion alone. The region’s midstream sector is the second most prominent with a series of massive pipelines planned with the strategic aim of enhancing Europe’s energy security. Despite comparably less investment and activity, the region’s upstream sector is newsworthy, with a series of shale exploration projects; Poland and Ukraine are set to be the region’s leading shale markets in terms of the number of potential projects as well as the domestic political support, existing infrastructure and beneficial upstream experience these two countries have to offer. While opportunities are vast the practicalities of doing business in the region vary greatly depending on the stability of specific countries’ regulatory and legal environment. Join the EIC and UKTI at this Eastern European Showcase for an overview of the region’s energy sector, details of where the main opportunities lie and the support available to companies looking to do business across Europe. Register your interest with Jennifer Hole. www.the-eic.com

Sean Gordon, UK Regional Co-ordinator (Scotland) Tel +44 (0)1224 628 251 Email sean.gordon@the-eic.com

Event Report

Corporate Entertainment EIC The Glorious 15th Clay Shooting Day Friday 15 August 2014 Seal Cove Shooting Ground, Aberdeen Sponsored by Bertling, EIC members and their guests were invited to join us for a clay pigeon shoot at Seals Cove Shooting Ground on 15 August 2014. This afternoon out is an ideal way to entertain clients and reward staff. The shooting experience lasted around two hours and included instruction with qualified CPSA instructors plus a BBQ which allowed further networking opportunities. We would like to thank you all for attending, and we hope you all thoroughly enjoyed your day. Please find below our lucky winners: Best Individual: Raymond Campbell, Proserv Best Team: Raymond Campbell, Proserv; Stuart Harvey, Proserv; Murray Stuart, Proserv; Graham Wright, Siemens; Chris McComb, Siemens; Colin Taylor, DAI; Brian Sinclair, Monitor Systems. Congratulations again. Contact Sean Gordon. 21

October 2014

EIC Middle East News

Middle East News

Forthcoming Events Management Course

Successful Agency Agreements Wednesday 1 October 2014 International House, Dubai

Office News

While we work towards what is now an annual ADIPEC event, that for a change this year is preceding the Abu Dhabi Formula One Grand Prix rather than following in its footsteps, we also have EIC Connect Oil & Gas 2014 taking place once more in Manchester where we will have the opportunity to interact with the membership at first hand and provide any help and guidance that might assist you with your regional development plans. To this end, the Dubai office is hosting an ‘engaging’ event later this month. We have taken our traditional Fish & Chips night and moulded it into a members night entitled ‘Engage, Interact and Connect: Do you know the value of Membership?’ The intention is to take the opportunity to provide a quick overview of who we are, what we do and how companies can take full advantage of something that the majority can have access to if they only knew about it. The programme of training courses continues to grow and this has been helped by receiving input from members who have expressed an interest in a particular topic that perhaps is wholly relevant to this region. The Cross Cultural Communication course is a case in point. When people who are gathered together in a business environment where various parties are communicating in a language which is not their mother tongue, then interpretation can sometimes get lost in the mists of different understanding and language usage. A member mentioned this to us and hence the course that is scheduled for the end of this month. One task that is always on-going is having our contact database contents correct and up to date. It would be an enormous help if we could be advised of anybody who you believe would benefit from being added to our records as well as providing details of anybody that might have left and therefore are not entitled to receive our information. The networking event at the end of August proved to be very successful with over 20 companies represented during the evening. A special mention to our own ex EIC lady, Laura Tavernor who we were pleased to see is settling in nicely into her new role with Triplefast. Steve Lawrence from SFD took advantage of the quiet period to get himself up to speed with EIC DataStream and one of our neighbours, John Kaznowski from Rexel also popped by for a coffee and a chat. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Technical Workshop

Introduction to Gas Turbines Wednesday 8 October 2014 Siemens, Yas Island Rotana, Abu Dhabi Business Presentation Opportunities with Dana Gas Monday 13 October 2014 The Palace Hotel, Downtown, Dubai Corporate Entertainment Engage, Interact and Connect Tuesday 21 October 2014 Wheeler’s of St James’s, Dubai

HSE Training

Basic First Aid Tuesday 21 October 2014 HSS Health & Safety Solutions, Dubai

Management Course

Cross Cultural Business Communication Tuesday 28 October 2014 Alderley, Jebel Ali, Dubai To register your interest or to book on any of the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Oman begins prequalification for Liwa Plastics Project Orpic has invited international and local contractors to prequalify for one or more contracts linked to the implementation of the multi-billion dollar Liwa Plastics Project at Sohar Port. Up for grabs are four packages covering all of the key components that together constitute the Liwa Plastics Project (LPP) which, at an estimated cost of US$3.6 billion, is set to be Oman’s largest petrochemicals scheme to date. Under an Invitation for Prequalification floated by Orpic, contractors can register their interest in bidding for one or more of the EPC packages on offer. Iraq cuts output targets in revised BP, CNPC deals The Iraqi government has signed revised deals with BP and China’s CNPC for two southern oilfields that have reduced production targets and extended the life of the deals. The Iraqi government revised BP’s deal for the Rumaila oilfield, cutting the planned plateau production level to 2.1 million bbl/d from 2.85 million bbl/d. Iraq also revised CNPC’s deal for the Halfaya oilfield and cut the final output target to 400,000 bbl/d from 535,000 bbl/d.

www.globalpacificpartners.com Contact: babette@glopac.com Registration: jodee@glopac-partners.com

Cape Town 3 - 7 November 2014

The Landmark Conference and Exhibition Occasion for the Continent

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

October 2014

EIC Asia Pacific News

Asia Pacific News

Regional Comment

AWE hits significant discovery at Senecio-3 AWE has announced a ‘significant new discovery’ at the Senecio-3 well and found the potential for ‘substantially larger volume than the gas accumulation in the Dongara/ Wagina.’ Elevated gas shows were observed in the well, but data from the well section down to at least 2,670 metres is gas saturated with evidence of moderate to good quality reservoir. Contingent resources are estimated to be from 40 to 130 billion cubic feet of gas gross, based on the well data and existing 3D seismic. The well was drilled to a total depth of 3,370 metres, with operations now being undertaken to suspend the well. AWE holds a 50% interest in L1/L2, along with Origin Energy Resources, which holds a 50% interest.

Office News

UDS hands ZPMC contract to build vessel Ultra Deep Solutions (UDS) is building a multi-purpose diving support construction vessel with China-based shipbuilding company Shanghai Zhenhua Heavy Industries (ZPMC). The contract also carries an option for one additional vessel, with each vessel expected to cost US$200 million. The first vessel will be a 142-metre multipurpose subsea diving support construction vessel based on a Red Class 6027 MT design and will be capable of operating in a water depth of up to 4,000 metres. Delivery of the vessel is currently slated for early 2017.

Petronas’ Senior General Manager, Mr Adif Zulkifli, and the UK’s Conservative Party Chairman, Grant Shapps MP, officially opened the new EIC Kuala Lumpur office in a ceremony attended by executives and dignitaries from energy companies operating across the Asia Pacific region. The office will support members with business development activities across Asia Pacific, Australasia, China and the Indian Sub-Continent. Opening the office, Mr Shapps said: “It is a brilliant and fantastic move for the EIC to open an office in Kuala Lumpur at a time when Malaysia is growing at such a fast pace. Within the oil and gas industry, similarities between the UK and Malaysia include the need to drill deeper and in more remote oilfields that require complex technologies. UK companies have more than 40 years’ experience and technical expertise in North Sea operations so are well placed to share their knowledge with Malaysian energy companies.” Mr Adif Zulkifli welcomed the EIC to Malaysia, hailing the Kuala Lumpur office as an important platform for the EIC to extend its reach in the Asia Pacific region, with its strategic location between the two major Asian economies of India and China. Commenting on Petronas’ upcoming plans, he said: “Petronas is committed to sustained growth in the energy sector and has secured aggressive capital expenditure for the next five years, which will present UK companies with tremendous opportunities.” He then went on to echo Mr Shapps’ comment about similarities between the two countries, namely in terms of declining oil production, asset integrity, mature fields which require innovative solutions and advanced technology. “I hope that more collaboration will be forged between EIC members and Malaysian companies to create a more vibrant industry for the region,” he concluded. EIC members are already operational in the Asia Pacific region and staff from the Kuala Lumpur office are currently planning a programme of business and training events to meet members’ needs. To find out more, please contact Azman Nasir: azman.nasir@the-eic.com

Reliance signs MoU with Jaiprakash India-based Reliance Power (RPWR), Reliance CleanGen (RCL), a 100% subsidiary, has signed an exclusive MoU with Jaiprakash Power Ventures, a subsidiary of Jaiprakash Associates, to acquire 100% of JPVL’s hydropower portfolio comprising three run-ofthe-river operational projects. The projects have an asset base of over INR100 billion and asset life of over 50 years – Baspa-II (300MW), Vishnuprayag (400MW) and Karcham Wangtoo (1091MW). TL Offshore awarded Nam Con Son pipeline project TL Offfshore has been awarded the US$89 million subsea pipeline installation on Nam Con Son-2 while also revealing that it has landed work on the Te Giac Trang field, off Vietnam. The project comprises of the installation of 151 kilometres of pipeline on the Nam Con Son field and 19 kilometres on the Dai Hung field. Sapura Kencana said work would be carried out over two campaigns in the third quarter of 2014 and the second quarter of 2015. EC awarded 1Malaysia Development power project The Energy, Green Technology and Water Ministry has directed EC to award the job to build and operate a 2,400MW power plant to 1Malaysia Development Bhd (1MDB). The award was controversial because the lowest tariff came from a joint-venture between SIPP Energy Sdn Bhd and YTL Power International Bhd. The company has also secured a 50MW solar project on a direct award basis. Industry players said awarding a contract seven years ahead is a first in Malaysia.

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

October 2014

EIC North and Central America News

North and Central America News Office News

These new laws complete the steps to end the monopoly on energy production by Pemex since 1938, and form the infrastructure under which the energy sector will operate. The government has already seen clean energy financing ramp up this year as Mexico’s abundant wind, solar, geothermal, and hydro resources are encouraging investment. Acquiring financing for renewables can be a challenge, but many countries in the region are implementing policy changes to smooth the process. Mexico is expecting to put out US$1 billion for bids in electrical generation and natural gas pipelines as part of the opening of the new energy reform. The Federal Electricity Commission wants to build several power plants, but has not yet set a date for the opening of bidding. It is expected that bidding will open first to private and foreign firms. The government wants to build more natural gas-fired plants to reduce costs. Due to cheaper gas prices, some of the pipelines will be built in Texas. The first round of exploration and production tenders will take place in February 2015. Opportunities exist in the unconventional sectors, such as CBM (coal bed methane) and shale, in enhancing production from mature onshore fields, and in the shallow and deep waters of the Gulf of Mexico. While Pemex has retained about a third of its current assets in Round Zero, the government can auction off the rest of its remaining leases. In the selections that Pemex kept, which include the deepwater Perdido area, heavy oil shallow water fields in the Bay of Campeche, and the mature Burgos and Chicontepec onshore basins, the company will choose joint venture or farm-in partners. There will be three types of contracts to attract foreign investment: profit-sharing, production-sharing and license agreements. Most of the international oil players and NOCs, as well as major Mexican companies, have expressed interest in participating. The contracts are expected to be awarded between May and September 2015.

PJ Pipe & Valve Company is one of three companies nominated for the Small to Mid-Sized International Business Award by the British American Business Council. PJ Valves has been a prominent tenant in our Houston office for many years now and we would like to congratulate them on their success. Last month we held two very successful courses: The Fundamentals of Subsea and An Introduction to FPSOs. We hit maximum capacity for The Fundamentals of Subsea and would like to extend our gratitude to Dr John Preedy for conducting both training courses. Feedback from the courses all noted Dr Preedy as an ‘expert and professional presenter’ because of his ‘great grasp of material.’ We intend to host Dr Preedy’s courses again next year as well as an additional Introduction to Topsides. We held a handful or well received office tours last month. For those companies looking to start up their Houston presence and who need office space, please contact us to schedule a tour and meeting time.

Forthcoming Events

Corporate Entertainment EIC 5th Annual Sporting Clays Tournament Friday 3 October 2014 American Shooting Center, Houston Join us at American Shooting Center for an afternoon of skeet shooting and Texas BBQ.

Industry Overview

Fundamentals of Oil & Gas Monday 6 October 2014 EIC Houston

Technical Workshop Introduction to Shale Gas Tuesday 7 October 2014 EIC Houston

BP and Shell win new GoM leases Meanwhile on the US side of the Gulf of Mexico, the BOEM recently held a lease sale for the Western GoM that attracted particular attention due to some of the included leases being located in the transboundary area near the Perdido fold belt in Mexican waters. ConocoPhillips, BP and Shell were the big winners in Lease Sale 238.

EICDataStream Overview Wednesday 12 November 2014 EIC Houston For new members or those who need a refresher on how to use the EICDataStream database. For more information please contact: Nyree Carter, Regional Manager (North & Central America) Email nyree.carter@the-eic.com

Jacobs opens new office in West Texas Jacobs Engineering has opened a new office and central equipment yard in Odessa to provide services to customers in West Texas. The new location serves as the company’s central hub for Permian Basin field activities, including construction and maintenance of upstream facilities and pipelines. Services include civil, mechanical, electrical, piping, instrumentation, and controls services for well pads, gathering systems, compressors, pumps, separators, gas plants, stabilisers and pipelines.

Regional Comment

New energy reforms in Mexico In August Mexican President Pena Nieto signed legislation to open the former state-controlled energy industry to private investment.

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

October 2014

EIC South America News

South America News

Regional Comment

Next Brazilian round in 2015 The National Petroleum Agency (ANP) has announced plans to hold Brazil’s 13th bidding round for exploration blocks in 2015. The round is expected to be organised in the first half of the year and will include both onshore and offshore acreage located in the so-called ‘eastern margin,’ which runs from the southern state of Rio Grande do Sul to the north-eastern state of Rio Grande do Norte. The 13th round will be held under the conventional concessionbased model instead of the production-sharing scheme used for pre-salt areas.

Office News

The EIC Rio office has now been refurbished and has a new training facility that can hold 20 attendees in a classroom format or 35 guests for presentations. The room can be split into two smaller meeting rooms that can be used in parallel. Guests now have a view over Rio from the lounge area, which was created to enable networking while having tea or coffee. Members are welcome to visit the improved facilities. In August the EIC hosted Fundamentals of Downstream gathering 14 attendees. We can confirm two Business Presentations later this year on 12 November with Doris Engineering and 3 December for our year end celebration with a presentation from Odebrecht Oil & Gas.

Petrobras to invest US$37 billion in 2015 The Brazilian government’s proposed budget for Petrobras’ activities in Brazil in 2015 calls for an investment of US$37 billion. In the E&P segment, US$4.1 billion will be invested in offshore exploration projects, while US$556 million have been set aside for onshore projects. Approximately US$2.7 billion will be invested in the maintenance of oil and gas production in the Campos and Espírito Santo basins offshore Brazil. Regarding production development projects in pre-salt areas, the government has proposed spending a total of US$7.6 billion. Brazilian wind power capacity to hit 22.4GW by 2023 The installed capacity of wind farms in Brazil is expected to reach 22.4GW by 2033 from the current 3.5GW. The estimate is part of a 10-year energy expansion plan recently released by the Brazilian government. Approximately 5.4GW of new wind capacity will be installed by 2015, doubling to 10GW by 2018. According to projections by Abeeólica, a local wind power association, around 2GW of installed capacity from wind farms should be introduced in Brazil every year. The wind sector is expected to require an investment of US$22 billion by 2018, according to the association.

Also in August, I made a visit to the Argentinian market where I was kindly received by operators Pluspetrol and Andes Energia, who shared information about their business opportunities. As part of the visit I accepted an invitation to speak to 60 attendees whose target is to bring together UK companies and Argentinian operators. In November, as well as visiting Mexico and Houston, I shall be attending EIC Connect in Manchester and will be available for one-2-one meetings with companies interested in coming to the Americas.

Argentina and Chile in energy co-operation deal The governments of both countries have signed a Memorandum of Understanding aimed at the exchange of electric power and gas in times of emergency. According to the MoU, the Cabos-Atacama bi-national transmission line will be used to boost supply to Chile’s northern SING grid and Argentina’s SADI grid. The two governments have also called for studies on joint projects aimed at boosting natural gas production in both countries.

Forthcoming Events Technical Workshop

Introduction to Naval Architecture Wednesday 15 October 2014 EIC Rio de Janeiro

Technical Workshop

Introduction to FPSOs Saturday 6 December 2014 Centro de Treinamento BQ, Rio de Janeiro

Bolivia to invest US$1.95 billion in power projects The state-owned power company ENDE has announced that it will invest US$1.95 billion in power projects in the country. This amount will be partly financed by the Bolivian Central Bank and will be directed at the generation and transmission segments. Power demand in Bolivia is expected to reach 2GW by 2020 and 3GW in 2025.

If you need support in taking the next step into the South American market, please feel free to contact us. Clarisse Rocha, Head of Americas Contact: clarisse.rocha@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

October 2014

EIC LaunchPad

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

EIC Serviced Office Facilities in Dubai, Kuala Lumpur, Houston and Rio offer members the opportunity to cost-effectively build a presence in a new market, while providing 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

October 2014

www.the-eic.com

October 2014

If you would like more information or are interested in becoming an EIC member, please contact: EIC Head Office and Southern Region 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 972 Email teesside@the-eic.com EIC Scotland 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com EIC Middle East PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +6 03 2725 3600 Email kualalumpur@the-eic.com EIC North and Central America Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com EIC South America Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com Follow @TheEICEnergy on Twitter Join the EIC LinkedIn Group

www.the-eic.com

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